City Council and Concurrent Authorities
March 19, 2024

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 st atement 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 whet her 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 standard s 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 ove rride 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 t hose 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 purpo se 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
669
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 th
e United States of America require that the Management’s Discussion and Analysis, budgetary comparison inform ation, 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 appropria te 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 compar ing the information for cons istency 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 comb ining 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 othe r 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 basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y 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
670
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 repor t dated March 13, 2024, on our consideration of the City’s internal control over financia l 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
March 13, 2024

ATTACHMENT A
671

5 MANAGEMENT’S DISCUSSION AND ANALYSIS

UNAUDITED

JUNE 30, 2023

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, 2023. 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, 2023, total assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources by $1.9 billion. Of this amount, $70.0 million represen ts the unrestricted net position, $521.1 million is restricted for City's ongoing obligation related to programs with external restrictions, and $1.3 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 $478.4 million and include program revenues of $136.7 million and general revenues of $341.7 million. Governmental expenses were $379.9 million. • Business-type program revenues and investment earnings net with transfers were $170.3 million, while business-type expenses were $134.6 million.

Fund Level:
 The City’s Governmental Funds reported a combined ending fund balance of $611.0 million at the close of June 30, 2023, an increase of $41.8 million compared with the prior fiscal year. The General Fund balance in this report, as of June 30, 2023, was $212.4 million. 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 $48.3 million, partially fund known contingency reserves at $68.0 million, and maintain the risk-based reserves to $10.8 million.  The total Governmental Fund revenues decreased from the prior fiscal year by 5.0 percent. A large portion of this decrease is attributable to special federal and state grants received in Fiscal Year (FY) 2021-22 with approximately $75.5 million related to COVID-19 pandemic recovery efforts. Offsetting increases to revenues were due to growth in business license taxes, sales taxes, franchise fees, and improved investment earnings.
 The total Governmental Fund expenditures increased by 5.0 percent compared to the prior fiscal year primarily due to a $21.8 million increase in public safety expenditures. This increase is attributable to a 10 percent salary increase for sworn positions effective July 1, 2022 and employee retirement expenses. Capital oulay expenditures increased $12.9 million reflecting the use federal and state one-time grant dollars.

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 supplementary 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
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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 require 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 Nonmajor Enterprise Funds, , Internal Service Funds, Investment Trust Funds, and Custodial 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 the current year’s 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 serv ices 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 financed 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 23-26 of this report.

ATTACHMENT A
673

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 was 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 41-42 of this report.

Notes to the Basic Financial Statements
The notes on 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 45-110 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, the Special Grants Fund, and the Capital Projects 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 111-129 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, 2023, the City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1.9 billion, which is an increase of $134.1 million or 7.7 percent compared to the prior fiscal year.

ATTACHMENT A
674

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, 2023, and 2022 (amounts in thousands):

*June 30, 2022 net position is restated with prior period adjustments.

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 $1.3 billion or 68.6 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 $521.1 million or 27.7 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 $70.0 million or 3.7 percent of the total net position. Information about changes in net position for FY 2022-23 and FY 2021-22 is summarized on the following page. The ACFR discusses the reasons for the changes in the sections for governmental activities and business-type activities. 2023 2022* 2023 2022 2023 2022
Assets:

Current and other assets 985,073$ 936,598$ 253,107$ 269,527$ 1,238,180$ 1,206,125$ Capital ass ets 882,742 822,681 844,652 819,159 1,727,394 1,641,840 Total ass ets 1,867,815 1,759,279 1,097,758 1,088,686 2,965,573 2,847,965 Deferred Outflow of Resources:

Unam ortized loss on refunding of debt - - 12,736 13,645 12,736 13,645 Pension-related deferred outflows of resources 178,504 59,815 6,239 2,989 184,743 62,804 Total Deferrals-Outflows 178,504 59,815 18,975 16,634 197,479 76,449 Liabilities:

Current and other liabilities 147,551 145,400 28,685 40,483 176,236 185,883 Long-term obligations 122,994 113,328 370,352 385,126 493,346 498,454 Net Pension liability 583,215 313,515 16,642 8,391 599,857 321,906 Total liabilities 853,760 572,243 415,679 434,000 1,269,439 1,006,243 Deferred Inflow of Resources:

Pension-related deferred inflows of resources 10,025 162,705 478 6,373 10,503 169,078 Leases 1,378 1,449 32 59 1,410 1,508 Total Deferrals Inflows 11,403 164,154 510 6,432 11,913 170,586 Net position:

Net inves tment in capital as sets 817,086 764,337 473,568 438,675 1,290,654 1,203,012 R
estricted 495,695 489,870 25,367 25,394 521,062 515,264 Unrestricted (deficit) (131,625) (171,510) 201,609 200,819 69,984 29,309 Total net position 1,181,156$ 1,082,697$ 700,544$ 664,888$ 1,881,700$ 1,747,585$ Governmental Business-Type
Activities Activities Total

ATTACHMENT A
675

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):

*June 30, 2022 net position is restated with prior period adjustments. 2023 2022 2023 2022 2023 2022
Revenues
Program revenues:

Charges for services 68,006$ 72,491$ 156,442$ 156,777$ 224,448$ 229,268$ Operating grants and contributions 42,072 100,879 1,653 2,500 43,725 103,379 Capital grants and contributions 26,667 47,352 12,363 12,231 39,030 59,583 General revenues:

Property taxes 42,578 41,066 - - 42,578 41,066 In l ieu of sales tax - - - - - - Utility user taxes 42,445 38,328 - - 42,445 38,328 Sales and use taxes (City levied) 82,833 75,037 - - 82,833 75,037 Franchise tax es 22,784 21,186 - - 22,784 21,186 Busines s licenses 23,748 15,905 - - 23,748 15,905 Hotel/motel room tax es 3,433 3,620 - - 3,433 3,620 Document transfer tax es 1,029 1,626 - - 1,029 1,626 Other taxes 4,628 4,016 - - 4,628 4,016 Motor vehicle fees in lieu 29,344 27,310 - - 29,344 27,310 Sales and use tax es (State levied) 76,954 76,239 - - 76,954 76,239 Investm ent earnings 1,707 (25,552) 235 (7,018) 1,942 (32,570) Miscellaneous 9,715 10,369 - - 9,715 10,369 G ain (loss) on disposal of capital assets 44 (132) - - 44 (132) Total revenues 477,986 509,740 170,693 164,489 648,679 674,230 Expe n s e s
G eneral government 54,875 72,154 - - 54,875 72,154 Public safety 227,637 170,563 - - 227,637 170,563 Public works 50,045 43,601 - - 50,045 43,601 Library 16,275 13,107 - - 16,275 13,107 Parks and recreation 21,141 14,300 - - 21,141 14,300 Interest and fiscal charges 9,968 7,894 - - 9,968 7,894 Water utility - - 50,185 54,532 50,185 54,532 Wastewater utility - - 68,976 66,991 68,976 66,991 Stormwater utility - - 7,914 7,288 7,914 7,288 Central parking district - - 6,153 5,687 6,153 5,687 Other - - 1,395 1,375 1,395 1,375 Total expenses 379,942 321,619 134,622 135,873 514,564 457,492 Increase/(decrease) in net
position before transfers 98,044 188,121 36,071 28,616 134,115 216,738 Transfers 416 438 (416) (438) - - Change in net position 98,460 188,559 35,656 28,178 134,115 216,738 Net position, beginning - 928,608 - 636,710 - 1,565,317 Prior period adjustment - (34,470) - - - (34,470) Net position, beginning, as restated 1,082,697 894,138 664,888 636,710 1,747,585 1,530,847 Net position, end of year 1,181,156$ 1,082,697$ 700,544$ 664,888$ 1,881,700$ 1,747,585$ Business-T yp eGov ernmental
TotalActivities Activities

ATTACHMENT A
676

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

Governmental activities: The change in net position increased by $98.5 million compared to the prior fiscal year.

Below is an analysis of year over year variances:

• Total governmental activities revenues decreased by $31.8 million or 6.2 percent compared to the prior fiscal year. The decrease was mostly attributable to a reduction in operating and capital grants after an abnormally high year in FY 2021-22. General revenues from taxes were up year over year by $25.4 million and investment earnings were siginficantly better than the prior year when earnings were negative due to a fair market value adjustment.
• Total governmental activities expenses show an increase of $58.3 million. This increase is primarily attributable to a 10 percent salary increase for sworn positions effective July 1, 2022, employee retirement expenses, and in increase in special one-time expenses.

Business-type activities: The change in net position increased by $35.7 million compared to the prior fiscal year primarily due to improved investment earnings. Program revenues were down $1.1 million with a reduction in grant funding and expenses declined by $1.3 million compared to the prior year.

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 23.

Governmental Funds
As of June 30, 2023, the City’s Governmental Funds reported a combined ending balance of $ 611.0 million, an increase of $41.8 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 $4.2 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 $403.4 million that is based on restrictions imposed by external parties or enabling legislation.
 Committed fund balance of $150.8 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 $5.4 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 $47.1 million includes the working capital reserve established in the Reserve and Fund Balance Policy-General Fund to accommodate normal fluctuations in the timing of revenues and unforeseen operational costs.

ATTACHMENT A
677

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 2023 revenue categories as a percent of the total.

2023 2022
Revenue by Source Amount
Percent of
Total Amount
Percent of
Total Amount
Percent of
Change
Property taxes 42,578 $ 8.8% 41,066 $ 8.1% 1,512 $ 3.7% Utility user 42,445 8.8% 38,328 $ 7.5% 4,117 $ 10.7% Sales tax - lev ied by City 90,305 18.6% 82,951 $ 16.3% 7,355 $ 8.9% Franchise fees 22,547 4.7% 19,932 $ 3.9% 2,615 $ 13.1% Business license 23,748 4.9% 15,905 $ 3.1% 7,842 $ 49.3% Transient occupancy tax 3,433 0.7% 3,620$ 0.7% (187)$ -5.2% Document Transfer/other 5,657 1.2% 5,641$ 1.1% 16$ 0.3% License and permits 7,762 1.6% 9,129$ 1.8% (1,367)$ -15.0% Intergovernmental 188,691 38.9% 246,713$ 48.4% (58,022)$ -23.5% Charges for services 35,677 7.4% 39,532$ 7.8% (3,856)$ -9.8% Fines and forfeitures 317 0.1% 2,001$ 0.4% (1,684)$ -84.1% Use of money and property 11,704 2.4% 9,955$ 2.0% 1,749$ 17.6% Interest income (loss) (248) -0.1% (13,673)$ -2.7% 13,425$ -98.2% Refunds and reimbursements 1,029 0.2% 550$ 0.1% 479$ 87.0% Miscellaneous 8,951 1.8% 8,258$ 1.6% 693$ 8.4% Total 484,596$ 100.0% 509,910$ 100.0% (25,314)$ -5.0% Increase/(Decrease)

ATTACHMENT A
678

12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED

Governmental Funds, Continued:

Overall, governmental fund revenues were down $25.3 million compared to the prior year. Significant changes in revenues compared with the prior fiscal year are described below:
• Federal and state grant funds in the intergovernmental category were $58.0 million lower than the prior year primarily due to additional COVID relief funds received in the prior year. • Sales tax - levied by City is up $7.4 million or 8.9 percent, representing the transaction tax component of sales taxes. These tax revenues experienced growth, primarily in the first two quarters of the fiscal year, with the continued expansion of consumer spending.
• Business license tax revenues increased 49.3 percent in part due to the strong economic growth of the past few years reflected in gross receipt reporting and a clean-up of business license data resulting in more accurate and timely billing of business license accounts. The increased revenues also represent new types of cannabis businesses reporting annual sales activities for the first time. • Due to the historic low interest rate environment, interest income resulted in a deficit in the prior year when adjusting for fair market value. FY 2022-23 interest income reflects an improved rate environment.

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

Significant changes compared with the prior fiscal year include:
• General government expenditure decreased by $23.7 million including a $17.7 million reduction in expenditures funded by special grants. FY 2021-22 expenditures were at all time highs with the distribution of state and federal COVID-19 relief dollars.
• Public safety expenditures increased by 10.6 percent compared to the prior fiscal year primarily due to a 10 percent salary increase for sworn positions effective July 1, 2022, and employee retirement expenses. • Parks and recreation expenditures increased over the prior year primarily from an expansion in special event programming at large venues and community centers that was suspended or reduced in previous fiscal years due to COVID restrictions.
• Capital outlay expenses increased $12.9 million compared to the prior year with construction expenses for major projects such as the new City Hall, the Northeast Library and Recreation center, and upgrades at the Stockton Soccer Complex.
• Debt service expenses increased $4.0 million with an additional payment toward a Section 108 loan from Community Development Block Grant funds and increased payments toward the Assured Guaranty settlement agreement based on the set repayment schedule and improved core revenues.

2023 2022 I ncrease/(Decrease)
Percent of Percent of Percent of
xpenditures by Function Amount Total Am ount Total Amount Change Current:

G eneral governm ent 53,152 $ 12.4% 76,830 $ 18.8% (23,678) $ -30.8% Public safety 227,859 53.1% 206,107 50.4% 21,752 10.6% Public works 35,659 8.3% 34,263 8.4% 1,396 4.1% Library 15,643 3.6% 14,658 3.6% 985 6.7% Parks and recreation 17,601 4.1% 14,552 3.6% 3,049 21.0% Capital outlay 65,959 15.4% 53,033 13.0% 12,926 24.4% Debt service 13,326 3.1% 9,340 2.3% 3,986 42.7% Total 429,199 $ 100.0% 408,783 $ 100.0% 20,416 $ 5.0%

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13 FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED

General Fund

Below is a graph that depicts the change in General Fund balances between FY 2022-23 and FY 2021-22. The committed and unassigned balances have increased from the prior fiscal year.

Fund Balance
(in millions)

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 $335.5 million at the close of June 30, 2023, an increase of $31.5 million (10.4 percent) compared to the prior fiscal year. Significant changes in General Fund revenues compared with the previous fiscal year include:

 Business license tax revenues increased by $8.0 million in part due to the strong economic growth of the past few years reflected in gross receipt reporting and a clean-up of business license data resulting in more accurate and timely billing of business license accounts. The increased revenues also represent new types of cannabis businesses reporting annual sales activities for the first time.  Due to the historic low interest rate environment, interest income resulted in a deficit in the prior year when adjusting for fair market value. FY 2022-23 interest income reflects an improved rate environment.  Sales tax levied by the City and the State increased $5.0 million in the General Fund compared to the prior fiscal year from a combination of pandemic driven shifts in consumer spending habits, federal stimulus dollars, and price inflation.
 Utility User tax revenues improved $4.1 million because of electricity and gas usage and rate increases.

General Fund expenditures were $263.7 million, an increase of $19.5 million or 8.0 percent compared to the prior fiscal year. General government expenses decreased by $2.3 million compared to the last fiscal year. Public safety expense growth of $15.6 million was primarily the result of a 10 percent salary increase for sworn positions effective July 1, 2022, and employee retirement expenses. Parks and recreation expenses increased $2.5 million over the prior year primarily due to the resurgence of entertainment venue activities that were suspended or reduced in previous fiscal years due to COVID restrictions.

$0 $20 $40 $60 $80 $100 $120 $140 $160
Nonspendable
Restricted
Committed
Assigned
Unassigned
FY 2021-22
FY 2022-23

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14 FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED

Proprietary Funds

The City’s Proprietary Fund Financial Statements provide the same type of information found in the Government- Wide Financial Statements but in more detail. At the end of June 30, 2023, business-type activities' net position was $700.5 million, an increase of $35.7 million or 5.4 percent compared to the prior fiscal year.

The assets and deferred outflows of resources increased by a combined total of 11.4 million. Of this amount, the current cash and investments and other existing assets decreased by $16.4 million, and non-current assets, including capital assets and deferred outflows, increased by $29.1 million.

The liabilities and deferred inflows of resources decreased by $24.2 million due primarily to the principal payments made on debt and pension-related adjustments.

GENERAL FUND BUDGETARY HIGHLIGHTS

The City’s FY 2022-23 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 2022-23 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 114.

The General Fund’s original budgeted revenues totaled $303.3 million and were increased to $305.9 million during the fiscal year. The General Fund ended the fiscal year with total revenues of $335.5 million, reflecting a $29.6 million, or 9.7 percent, increase over the final budget. The most significant revenue variance was sales tax revenues at $14.6 million more than the budget. Collection of Business license taxes improved during and after the pandemic resulting in $7.6 million more revenues than anticipated in the final budget. The next largest budget variance was in Utility user taxes ($3.7 million) which occurred from electricity and gas rate increases.

The General Fund’s original expenditure budget of $278.5 million was adjusted by encumbrances and commitments carried forward from the prior year for a total final budget of $302.0 million. All General Fund departmental activities ended the fiscal year below budget. The debt service category shows an overage due to the booking of subscription related entries for the GASB 96. Actual expenditures and transfers-out were lower than the final approved budget appropriations by $72.7 million, or 19.3 percent. Of this variance, $48.4 million in appropriations rolled into FY 2023-24 for encumbrances, capital projects, and specific City Council authorized activities. General Government departments experienced budget savings of $9.9 million, Public Works activities were under budget by $1.6 million, Parks and recreation activities were under budget by $3.2 million, Library expenses were $2.5 million below budget, and $20.2 million was saved in Public Safety. A significant contributing factor to the savings was staff vacancies.

Approximately $18.9 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 2022-23 was lower than the last five fiscal years and authorized positions have increased during this period.

ATTACHMENT A
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15 GENERAL FUND BUDGETARY HIGHLIGHTS, CONTINUED

The City’s General Fund balance on June 30, 2023, was $202.1 million on a budgetary basis, which is an increase of $23.5 million from the prior year. The City Council authorized $13.8 million of this increase to be added to General Fund reserves for a total funded reserve of $127.1 million. The ACFR reporting of General Fund balance at $212.4 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 ($201.7 million) separate from ancillary services of libraries, recreation, etc. Of the $212.4 million total General Fund balance, $48.5 million is unassigned, $78.8 million is in reserves, and the remainder is restricted, committed or assigned for specific activities, projects, and commitments.

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, 2023, amounted to $1.7 billion (net of accumulated depreciation and amortization). 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 5.2 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 long-term debt was $447.4 million. The outstanding net bonded debt, including bankruptcy settlements, was $435.8 million. Of this amount, $64.5 million is related to governmental activities, and $382.9 million are debt obligations of business-type activities.

Governmental activities bonded indebtedness decreased by $198,847 because of the scheduled principal payments.

Business-type activities bonded indebtedness also decreased by $12.8 million due to the scheduled debt service payments for the enterprise debt.

Governmental outstanding net bonded debt of $52.9 million reflects the settlement liability to the bond insurer (Assured Guaranty) for 2007 bonds adjusted in bankruptcy. 2023 2022* 2023 2022* 2023 2022
Land 38,197$ 38,197$ 15,127$ 15,127$ 53,324$ 53,324$ Intangible Assets 4,355 4,355 - - 4,355 4,355 Building and Improvements 174,028 180,483 586,998 603,076 761,026 783,558 Machinery and Equipment 29,142 28,780 6,351 4,866 35,494 33,645 Infrastructure 374,060 377,710 - - 374,060 377,710 Construction in Progress 252,839 192,072 233,679 193,438 486,519 385,510 Lease & Subscription Assets 10,120 11,731 2,496 2,697 12,617 14,428 Total 882,742$ 833,326$ 844,652$ 819,205$ 1,727,393$ 1,652,531$ * due to G ASB 96 im plem entation
Governmental
Activities Total
Business-Typ e
Activities

ATTACHMENT A
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16 CAPITAL ASSETS AND DEBT ADMINISTRATION, CONTINUED

Business-type activities outstanding net bonded debt obligations of $382.9 million includes $189.0 million of revenue bonds of the Water Utility, $151.9 million in revenue bonds and EPA WIFIA loan for the Wastewater Utility, and $28.7 million in revenue bonds for the Parking Authority. Marina operations have a loan obligation of $10.9 million through the State Department of Parks and Recreation. This obligation no longer accrues interest due 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 $86.9 million is reported separately in a Private Purpose Trust Fund. The balance outstanding at June 30, 2023, includes $79.6 million of tax-exempt tax allocation bonds issued to refinance revenue bonds for various former redevelopment projects and $7.3 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:
https://www.stocktonca.gov/government/budget___financial_reports/index.php

ATTACHMENT A
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BASIC FINANCIAL STATEMENTS

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GOVERNMENT-WIDE FINANCIAL STATEMENTS

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ATTACHMENT A
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Governmental Business-Type
Activities Activities Totals
Cash and investments 656,004,858 $ 217,776,554 $ 873,781,412 $ Restricted cash and investments 83,166,239 7,771,268 90,937,507 Interest receivable 2,779,987 926,299 3,706,286 Accounts receivable, net 26,090,976 27,139,385 53,230,361 Due from other governments, net 47,242,936 2,854,434 50,097,370 Internal balances 6,368,227 (6,368,227) - Inventory of supplies 851,268 2,306,897 3,158,165 Prepaid items 6,730,456 378,739 7,109,195 Lease receivable 1,426,125 33,074 1,459,199 Advance deposits 2,319,207 98,171 2,417,378 Loans to Successor Agency, net 1,106,580 - 1,106,580 Loans to property owners, net 150,986,202 190,000 151,176,202 Capital assets:

Nondepreciable and nonamortizable 295,390,858 248,806,391 544,197,249 Depreciable and amortizable, net 587,350,839 595,845,189 1,183,196,028 Total assets 1,867,814,758 1,097,758,174 2,965,572,932 Unamortized loss on refunding of debt - 12,735,989 12,735,989 Pension-related deferred outflows of resources 178,503,759 6,238,971 184,742,730 Total deferred outflows of resources 178,503,759 18,974,960 197,478,719 Accounts payable and accrued expenses 29,468,249 6,273,915 35,742,164 Accrued payroll and benefits 3,574,689 1,404,934 4,979,623 Due to other governments/agencies 2,108,039 95,237 2,203,276 Accrued interest 1,679,168 3,512,040 5,191,208 Deposits and other liabilities 2,822,250 2,374,306 5,196,556 Retention payable 1,147,710 913,284 2,060,994 Unearned revenue 79,120,793 - 79,120,793 Long-term liabilities:

Due within one year:

Compensated absences 6,738,503 979,540 7,718,043 Claims payable 13,698,028 - 13,698,028 Long-term debt 7,193,254 13,356,713 20,549,967 Due in more than one year:

Compensated absences 5,309,112 577,282 5,886,394 Claims payable 60,369,597 - 60,369,597 Long-term debt 57,314,877 369,549,596 426,864,473 Aggregate net pension liability 583,215,119 16,641,863 599,856,982 Total liabilities 853,759,388 415,678,710 1,269,438,098 10,024,391 478,230 10,502,621
1,378,369 32,495 1,410,864
Total deferred inflows of resources 11,402,760 510,725 11,913,485 Net investment in capital assets 817,085,856 473,567,976 1,290,653,832 Restricted 495,695,091 25,366,543 521,061,634 Unrestricted (deficit) (131,624,578) 201,609,180 69,984,602 Total net position 1,181,156,369$ 700,543,699 $ 1,881,700,068 $ City of Stockton
Statement of Net Position
June 30, 2023

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
688
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT:

Governmental activities:

General government 54,871,482 $ 26,165,322 $ 33,789,364 $ 363,828 $ Public safety 227,637,434 20,469,222 7,785,463 - Public works 50,048,314 11,885,891 456,273 26,303,410 Library 16,275,308 8,293,844 40,751 - Parks and recreation 21,141,439 1,191,418 - - Interest and fiscal charges 9,967,641 - - - Total governmental activities 379,941,618 68,005,697 42,071,851 26,667,238 Business-type activities:

Water utility 50,184,760 60,821,762 - 7,467,108 Wastewater utility 68,975,880 84,392,918 - 3,605,734 Stormwater utility 7,913,660 6,159,326 - 1,290,132 Parking Authority 6,152,646 4,657,460 1,653,425 - Downtown Marina 1,215,944 391,362 - - Golf Courses 179,117 19,093 - - Total business-type activities 134,622,007 156,441,921 1,653,425 12,362,974 Total 514,563,625$ 224,447,618 $ 43,725,276 $ 39,030,212 $

Program Revenues
City of Stockton
Statement of Activities
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 18 ATTACHMENT A
689
Governmental Business-Type
Functions/Programs Activities Activities Totals
PRIMARY GOVERNMENT:

Governmental activities:

General government 5,447,032 $ - $ 5,447,032$ Public safety (199,382,749) - (199,382,749) Public works (11,402,740) - (11,402,740) Library (7,940,713) - (7,940,713) Parks and recreation (19,950,021) - (19,950,021) Interest and fiscal charges (9,967,641) - (9,967,641) Total governmental activities (243,196,832) - (243,196,832) Business-type activities:

Water utility - 18,104,110 18,104,110 Wastewater utility - 19,022,772 19,022,772 Stormwater utility - (464,202) (464,202) Parking Authority - 158,239 158,239 Downtown Marina - (824,582) (824,582) Golf Courses - (160,024) (160,024) Total business-type activities - 35,836,313 35,836,313 Total (243,196,832) 35,836,313 (207,360,519) General revenues and transfers:

General revenues:

Taxes:

Property 42,577,881 - 42,577,881 Utility user 42,445,100 - 42,445,100 Sales - levied by City 82,832,708 - 82,832,708 Franchise fees 22,783,730 - 22,783,730 Business license 23,747,768 - 23,747,768 Transient occupancy tax 3,432,978 - 3,432,978 Document transfer 1,028,481 - 1,028,481 Other 4,628,261 - 4,628,261 Shared revenue:

Vehicle license fees 29,343,468 - 29,343,468 Sales and use tax levied by state 76,954,150 - 76,954,150 Investment earnings (loss) 1,707,268 234,678 1,941,946 Miscellaneous 9,715,201 - 9,715,201 Gain (loss) on disposal of capital assets 44,165 - 44,165 Transfers 415,471 (415,471) -
Total general revenues and transfers 341,656,630 (180,793) 341,475,837 Changes in net position 98,459,798 35,655,520 134,115,318 Net position:

Beginning of year, as restated (Note 19) 1,082,696,571 664,888,179 1,747,584,750 End of year 1,181,156,369$ 700,543,699 $ 1,881,700,068 $ Change in Net Position
Net (Expense) Revenue and
City of Stockton
Statement of Activities (Continued)
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 19 ATTACHMENT A
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20 ATTACHMENT A
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FUND FINANCIAL STATEMENTS

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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 nonmajor 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 Program) Housing grants and loans, and Neighborhood Stabilization Loan Program (NSP Funds).
21 ATTACHMENT A
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22 ATTACHMENT A
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Capital Projects
Federal Other Total
General Housing Special Capital Governmental Governmental Fund Grants Grants Improvement Funds Funds
ASSETS
Cash and investments 186,840,849 $ 5,611,106 $ 73,075,843 $ 20,186,134 $ 221,575,494 $ 507,289,426 $ Cash and investments with fiscal agents - 1,622,042 - - - 1,622,042 Receivables, net:

Interest 1,112,175 8,159 - 5,433 963,957 2,089,724 Accounts and other receivables 18,074,245 - 940,943 - 2,537,176 21,552,364 Lease 1,424,126 - - - 1,999 1,426,125 Due from other governments, net 23,572,299 26,270 3,627,908 7,957,705 12,058,754 47,242,936 Inventory of supplies 788,707 - - - - 788,707 Prepaid items 76,409 - 1,166,340 - 1,646,025 2,888,774 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 - 80,162,042 - - 70,824,160 150,986,202 Total assets 233,420,821$ 87,429,619 $ 78,919,388 $ 28,149,272 $ 310,839,532 $ 738,758,632 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 7,441,280 545,716 3,826,786 7,526,468 3,875,902 23,216,152 Accrued payroll and benefits 1,170,444 40,466 281,919 123,423 1,482,513 3,098,765 Due to other governments 1,790,513 9,305 - - 308,221 2,108,039 Deposits and other liabilities 1,721,167 - - - 1,051,979 2,773,146 Retention payable - - - 1,147,710 - 1,147,710 Unearned revenue 1,593,856 - 72,526,937 5,000,000 - 79,120,793 Total liabilities 13,717,260 595,487 76,635,642 13,797,601 6,718,615 111,464,605 Deferred inflows of resources:

Unavailable revenue - other 5,963,537 - 3,627,908 3,793,002 1,574,543 14,958,990 Lease 1,376,374 - - - 1,995 1,378,369 Total deferred inflows of resources 7,339,911 - 3,627,908 3,793,002 1,576,538 16,337,359 Fund Balances:

Nonspendable 2,397,127 - - - 1,771,412 4,168,539 Restricted 5,218,261 86,834,132 - 10,558,669 300,772,967 403,384,029 Committed 150,810,799 - - - - 150,810,799 Assigned 5,447,316 - - - - 5,447,316 Unassigned (deficit) 48,490,147 - (1,344,162) - - 47,145,985 Total fund balances (deficit) 212,363,650 86,834,132 (1,344,162) 10,558,669 302,544,379 610,956,668
Total liabilities, deferred inflows
of resources and fund balances 233,420,821$ 87,429,619 $ 78,919,388$ 28,149,272$ 310,839,532$ 738,758,632 $ Special Revenue Funds
City of Stockton
Balance Sheet
Governmental Funds
June 30, 2023
Major Funds
See accompanying Notes to the Basic Financial Statements. 23 ATTACHMENT A
696
Total Fund Balances - Total Governmental Funds 610,956,668$ Amounts reported for governmental activities in the Statement of Net Position are different because:

Non-depreciable (net of $29,949,805 reported in the Internal Service Funds) 265,441,053 558,388,882
217,421,195
Compensated absences (net of $461,840 reported in Internal Service Funds) (11,585,775) (58,021,051)
(1,667,842)
(583,215,119)
178,503,759
(10,024,391)
Unavailable revenue - other 14,958,990
Net position of governmental activities 1,181,156,369$
City of Stockton
Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide Statement of Net Position
June 30, 2023
Internal Service Funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the Government-Wide Statement of Net Position.

Long-ter
m liabilities were not due and payable in the current period. Therefore, the y 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 reported in 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 capital assets $28,961,957 reported in the Internal Service Funds) Bonds payable and other long-term debt (net of $6,487,080 in leases and subscription liabilities reported in Internal Service Funds)
Accrued interest payable (net of $11,326 reported in Internal Service Funds) See accompanying Notes to the Basic Financial Statements. 24 ATTACHMENT A
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Capital Projects
Federal Total
General Housing Special Capital Othe r Governmental
Fund Grants Grants Improvemen t Governmental Funds
REVENUES:

Taxes:

Property 42,577,881 $ - $ - $ - $ - $ 42,577,881$ Utility user 42,445,100 - - - - 42,445,100 Sales - levied by City 49,703,488 - - - 40,601,949 90,305,437 Franchise fees 18,937,580 - - - 3,609,749 22,547,329 Business license 21,992,189 - - - 1,755,579 23,747,768 Hotel/motel room 3,432,978 - - - - 3,432,978 Document transfer 1,028,481 - - - - 1,028,481 Other 4,628,261 - - - - 4,628,261 Licenses and permits 467,794 - - - 7,294,252 7,762,046 Intergovernmental:

Federal grants and subsidies 107,090 2,874,895 22,672,588 9,148,605 - 34,803,178 Sales and use tax - levied by state 76,954,150 - - - - 76,954,150 Other governmental 44,427,118 1,747,243 8,423,416 1,059,358 21,276,118 76,933,253 Charges for services 11,357,788 1,575 - - 24,317,438 35,676,801 Fines and forfeitures 181,618 - - - 135,775 317,393 Use of money and property 9,653,318 1,158,232 - - 892,167 11,703,717 Interest income (loss) 451,357 47,397 - (1,350) (745,310) (247,906) Refunds and reimbursements 958,953 - - - 69,722 1,028,675 Miscellaneous 6,173,301 - 5,000 507,799 2,265,012 8,951,112 Total revenues 335,478,445 5,829,342 31,101,004 10,714,412 101,472,451 484,595,654 EXPENDITURES:

Current:

General government 17,690,153 2,474,331 23,424,127 - 9,563,497 53,152,108 Public safety 200,148,348 - 2,782,437 - 24,928,029 227,858,814 Public works 18,234,334 - 122,741 71,671 17,229,825 35,658,571 Library 11,996,043 - 733,250 - 2,913,944 15,643,237 Parks and recreation 12,769,610 - 1,585 - 4,829,685 17,600,880 Capital outlay 2,020,978 72,627 3,610,274 52,140,760 8,114,402 65,959,041 Debt service:

Principal retirement 798,168 2,454,070 47,366 - 219,460 3,519,064 Interest and fiscal charges 17,667 98,218 1,755 - 9,689,514 9,807,154 Total expenditures 263,675,301 5,099,246 30,723,535 52,212,431 77,488,356 429,198,869

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 71,803,144 730,096 377,469 (41,498,019) 23,984,095 55,396,785 OTHER FINANCING SOURCES (USES):

Transfers in - - - 32,664,965 9,950,644 42,615,609 Transfers out (39,305,080) (349,449) - (202,469) (17,752,547) (57,609,545) Issuance of debt 1,208,028 72,627 - - 63,238 1,343,893 Proceeds from sale of capital assets 44,165 - - - - 44,165 Total other financing sources (uses) (38,052,887) (276,822) - 32,462,496 (7,738,665) (13,605,878) CHANGES IN FUND BALANCES 33,750,257 453,274 377,469 (9,035,523) 16,245,430 41,790,907 FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 19) 178,613,393 86,380,858 (1,721,631) 19,594,192 286,298,949 569,165,761 End of year 212,363,650$ 86,834,132 $ (1,344,162) $ 10,558,669 $ 302,544,379 $ 610,956,668 $ 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, 2023
See accompanying Notes to the Basic Financial Statements. 25 ATTACHMENT A
698
Net change in fund balances - Total Governmental Funds: 41,790,907$ Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays (net of $10,576,255 in Internal Service Fund and net $929,844 expensed) 65,029,197 Net transfer of capital assets to the internal service fund (2,877,554) Capital contribution 471,314
(20,320,237)
Repayment of principal, net of $3,372,139 in Internal Service Fund 3,519,064 Inception of lease and subscription liabilities (1,343,893) 19,707,618
Change in compensated absences (net of $22,851 in Internal Service Fund) (69,563) (16,760)
Change in unavailable revenue - other (9,100,393)
Changes in deferred outflows, deferred inflows, and net pension liability 1,670,098 Changes in net position of governmental activities 98,459,798$ 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, 2023
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 $7,770,593 reported in Internal Service Funds)
See accompanying Notes to the Basic Financial Statements. 26 ATTACHMENT A
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Proprietary Fund Types
The City's major enterprise funds include:

Water Utility Enterprise Fund
Wastewater Utility Enterprise Fund
Individual nonmajor funds are presented in the Supplementary Information section.

PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds focus on the determinatio n 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 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. 27 ATTACHMENT A
700
Nonmajor
Water Wastewater Enterprise
Utility Utility Funds
ASSETS
Current assets:

Cash and investments 114,125,570 $ 92,988,785 $ 10,662,199 $ Receivables, net:

Interest 448,839 409,668 67,792 Accounts and other receivables 11,847,821 14,427,881 863,683 Lease - due in one year - - 26,446 Loans to other funds - current - - - Due from other governments 2,854,434 - - Inventory of supplies - 2,306,897 - Deposits and advances - - 98,171 Prepaids items 100,578 217,224 60,937 Total current assets 129,377,242 110,350,455 11,779,228 Noncurrent assets:

Restricted assets:

Cash and investments - - - Cash and investments with fiscal agents 5,862 2,950,201 4,815,205 Lease - due in more than one year 6,628
Loans to other funds - long-term - - - Loans receivable - - 190,000 Capital assets, net: -
Nondepreciable 11,955,277 229,765,006 7,086,108 Depreciable and amortizable, net 278,801,288 235,753,542 81,290,359 Total noncurrent assets 290,762,427 468,468,749 93,388,300 Total assets 420,139,669 578,819,204 105,167,528

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 11,273,593 1,052,477 409,919 Pension-related deferred outflows 1,720,815 4,097,022 421,134 Total deferred outflows of resources 12,994,408 5,149,499 831,053 City of Stockton
Statement of Net Position
Proprietary Funds
June 30, 2023
Major Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 28 ATTACHMENT A
701
Governmental
Activities
Internal Service
Totals Funds
ASSETS
Current assets:

Cash and investments 217,776,554$ 148,715,432 $
Receivables, net:

Interest 926,299 690,263
Accounts and other receivables 27, 139,385 4,538,612 Lease - due in one year 26,446 -
Loans to other funds - current - 1,075,810 Due from other governments 2,854,434 -
Inventory of supplies 2,306,897 62,561
Deposits and advances 98,171 553,455
Prepaids items 378,739 3,841,682
Total current assets 251,506,925 159,477,815
Noncurrent assets:

Restricted assets:

Cash and investments - 81,544,197 Cash and investments with fiscal agents 7,771,268 - Lease - due in more than one year 6,628 - Loans to other funds - long-term - 6,657,263 Loans receivable 190,000 -
Capital assets, net:

Nondepreciable 248,806,391 29,949,805
Depreciable and amortizable, net 595,845,189 28,961,957 Total noncurrent assets 852,619,476 147,113,222
Total assets 1,104,126,401 306,591,037

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 12,735,989 - Pension-related deferred outflows 6,238,971 - Total deferred outflows of resources 18,974,960 - Proprietary Funds
Statement of Net Position (Continued)
City of Stockton
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 29 ATTACHMENT A
702
Nonmajor
Water Wastewater Enterprise
Utility Utility Funds

LIABILITIES
Current liabilities:

Accounts payable 1,272,740 4,337,531 663,644
Accrued payroll 387,897 883,496 133,541 Loans from other funds - current - - 655,208 Due to other governments 95,237 - - Deposits and other liabilities 2,147,011 74,622 152,673 Retention payable 8,202 902,770 2,312
Accrued interest 1,987,330 1,087,751 436,959 Compensated absences - current 426,029 458,165 95,346 Lease liabilities - due in one year - 890 184,069 Subscription liability - due in one year 6,523 11,693 3,774 Self-insurance claims and judgments - current - - - Bonds payable - current 7,030,073 5,364,981 754,710 Total current liabilities 13,361,042 13,121,899 3,082,236 Noncurrent liabilities:

Compensated absences - long-term 284,123 236,466 56,693 Lease liabilities - due in more than one year - - 2,311,313 Subscription liability - due in more than one year 7,865 902 180 Self-insurance claims and judgments - long-term - - - Loans from other funds - long-term - - 5,713,019 Certificates of participation - 146,483,900 - Bonds payable 181,916,189 - 38,829,247 Net pension liability 4,572,369 10,971,524 1,097,970
Total noncurrent liabilities 186,780,546 157,692,792 48,008,422 Total liabilities 200,141,588 170,814,691 51,090,658

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 136,311 303,337 38,582 Leases - - 32,495 Total deferred inflows of resources 136,311 303,337 71,077

NET POSITION
Net investment in capital assets 113,061,306 313,805,889 46,700,781 Restricted for capital projects 5,862 7,989,504 3,089,585 Restricted for debt service - 12,555,972 1,725,620 Restricted
for pensions - - - Unrestricted 119,789,010 78,499,310 3,320,860 Total net position 232,856,178$ 412,850,675 $ 54,836,846 $ Major Enterprise Funds
June 30, 2023
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 30 ATTACHMENT A
703
Governmental
Activities
Internal Service
Totals Funds

LIABILITIES
Current liabilities:

Accounts payable 6,273,915 6,252,097
Accrued payroll 1,404,934 475,924
Loans from other funds - current 655,208 420,602 Due to other governments 95,237 -
Deposits and other liabilities 2,374,306 49,104 Retention payable 913,284 -
Accrued interest 3,512,040 11,326
Compensated absences - current 979,540 280,306 Lease liabilities - due in one year 184,959 316,680 Subscription liability - due in one year 21,990 3,436,336 Self-insurance claims and judgments - current - 13,698,028 Bonds payable - current 13,149,764 -
Total current liabilities 29,565,177 24,940,403 Noncurrent liabilities:

Compensated absences - long-term 577,282 181,534 Lease liabilities - due in more than one year 2,311,313 301,896 Subscription liability - due in more than one year 8,947 2,432,168 Self-insurance claims and judgments - long-term - 60,369,597 Loans from other funds - long-term 5,713,019 944,244 Certificates of participation 146,483,900 -
Bonds payable 220,745,436 -
Net pension liability 16,641,863 -
Total noncurrent liabilities 392,481,760 64,229,439 Total liabilities 422,046,937 89,169,842

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 478,230 - Leases 32,495 -
Total deferred
inflows of resources 510,725 -

NET POSITION
Net investment in capital assets 473,567,976 52,424,682 Restricted for capital projects 11,084,951 -
Restricted for debt service 14,281,592 -
Restricted for pensions - 81,544,197 Unrestricted 201,609,180 83,452,316
Total net position 700,543,699$ 217,421,195 $
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 31 ATTACHMENT A
704
Nonmajor
Water Wastewater Enterprise
Utility Utility Funds
OPERATING REVENUES:

Charges for services 53,367,037 $ 82,906,319 $ 10,989,750 $ Miscellaneous 7,454,725 1,486,599 237,491
Total operating revenues 60,821,762 84,392,918 11,227,241 OPERATING EXPENSES:

Operation and maintenance 15,049,339 44,084,202 8,317,858 General and administrative 4,603,616 9,248,980 2,580,961 Depreciation and amortization 8,055,262 12,901,960 3,428,411 Purchased water 14,542,273 - - Total operating expenses 42,250,490 66,235,142 14,327,230 OPERATING INCOME (LOSS) 18,571,272 18,157,776 (3,099,989) NONOPERATING REVENUES (EXPENSES):

Taxes - - 1,449,627 Grants and subsidies - - 203,798 Investment income: -
Interest income (loss) (646,887) 733,610 147,955 Interest expense and fiscal charges (7,934,270) (2,740,738) (1,134,137) Other nonoperating revenues - - - Total nonoperating revenues (expenses) (8,581,157) (2,007,128) 667,243

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 9,990,115 16,150,648 (2,432,746) CONTRIBUTIONS AND TRANSFERS:

Capital contributions 7,467,108 2,455,370 -
Developer contributions - 1,150,364 1,290,132 Transfers in - - 372,000 Transfers out (233,900) (157,371) (396,200) Total contributions and transfers 7,233,208 3,448,363 1,265,932 CHANGES IN NET POSITION 17,223,323 19,599,011 (1,166,814) NET POSITION:

Beginning of year, as restated (Note 19) 215,632,855 393,251,664 56,003,660
End of year 232,856,178$ 412,850,675 $ 54,836,846 $ Major Enterprise Funds
City of Stockton
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 32 ATTACHMENT A
705
Governmental
Activities
Internal Service
Totals Funds
OPERATING REVENUES:

Charges for services 147,263,106$ 169,360,977 $
Miscellaneous 9,178,815 278
Total operating revenues 156,441,921 169,361,255
OPERATING EXPENSES:

Operation and maintenance 67,451,399 154,138,429 General and administrative 16,433,557 7,863,055 Depreciation and amortization 24,385,633 7,770,592 Purchased water 14,542,273 -
Total operating expenses 122,812,862 169,772,076
OPERATING INCOME (LOSS) 33,629,059 (410,821)
NONOPERATING REVENUES (EXPENSES):

Taxes 1,449,627 -
Grants and subsidies 203,798 -
Investment income:

Interest income (loss) 234,678 1,948,214
Interest expense and fiscal charges (11,809,145) (143,727) Other nonoperating revenues - 223,441 Total nonoperating revenues (expenses) (9,921,042) 2,027,928

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 23,708,017 1,617,107 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 9,922,478 2,681,104
Developer contributions 2,440,496 -
Transfers in 372,000 15,409,407
Transfers out (787,471) -
Total contributions and transfers 11,947,503 18,090,511 CHANGES IN NET POSITION 35,655,520 19,707,618
NET POSITION:

Beginning of year, as restated (Note 19) 664,888,179 197,713,577 End of year 700,543,699$ 217,421,195 $
City of Stockton
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 33 ATTACHMENT A
706
Nonmajor
Water Wastewater Enterprise
Utility Utility Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 55,480,391 $ 79,506,738 $ 10,820,494 $ Receipts for interfund services provided - - - Payments to suppliers and employees (33,359,514) (67,891,955) (10,704,872) Miscellaneous receipts 7,454,725 1,486,599 237,491 Net cash provided by (used in) operating activities 29,575,602 13,101,382 353,113 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (233,900) (157,371) (24,200) Loans to and from other funds - - (643,105) Receipt of cash subsidies and federal grants (2,284,904) - 12 Other nonoperating revenues - - - Proceeds from taxes - - 1,653,425 Net cash provided by (used in) noncapital financing activities (2,518,804) (157,371) 986,132

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 1,901,914 1,782,390 188,165 Purchases of capital assets (6,003,186) (44,580,926) (3,034,058) Capital contributions received 7,467,108 3,605,734 1,290,132 Principal paid on debt (7,014,360) (5,156,025) (728,360) Unamortized loss on refunding of debt and discount 721,389 170,583 - Interest paid on debt (8,007,835) (2,814,238) (1,145,431) Net cash (used in) capital and related financing activities (10,934,970) (46,992,482) (3,429,552) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (859,666) 632,153 111,602 Net cash provided by (used in) investing activities (859,666) 632,153 111,602 15,262,162 (33,416,318) (1,978,705)
CASH AND CASH EQUIVALENTS:

Beginning of year 98,869,270 129,355,304 17,456,109 End of year 114,131,432$ 95,938,986 $ 15,477,404 $ City of Stockton
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Major Enterprise Funds

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS
See accompanying Notes to the Basic Financial Statements. 34 ATTACHMENT A
707
Governmental
Activities
Internal Service
Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 145,807,623$ -$
Receipts for interfund services provided - 165,680,214 Payments to suppliers and employees (111,956,341) (159,743,152) Miscellaneous receipts 9,178,815 8,667,392
Net cash provided by (used in) operating activities 43,030,097 14,604,454 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (415,471) 15,409,407 Due to and from other funds (643,105) 621,593 Receipt of cash subsidies and federal grants (2,284,892) - Other nonoperating revenues - 223,441 Proceeds from taxes 1,653,425 -
Net cash provided by (used in) noncapital financing activities (1,690,043) 16,254,441

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 3,872,469 - Purchases of capital assets (53,618,170) (10,576,255) Capital contributions received 12,362,974 -
Principal paid on debt (12,898,745) (3,372,139)
Unamortized loss on refunding of debt 891,972 - Interest paid on debt (11,967,504) (147,467)
Net cash (used in) capital and related financing activities (61,357,004) (14,095,861) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (115,911) 1,818,369 Net cash provided by (used in) investing activities (115,911) 1,818,369 (20,132,861) 18,581,403
CASH AND CASH EQUIVALENTS:

Beginning of year 245,680,683 211,678,226
End of yea
r 225,547,822$ 230,259,629 $
City of Stockton

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 35 ATTACHMENT A
708
Nonmajor
Water Wastewater Enterprise
Utility Utility Funds

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 114,125,570 $ 92,988,785 $ 10,662,199 $ Restricted assets:

Cash and investments - - - Cash and investments with fiscal agents 5,862 2,950,201 4,815,205 Total cash and investments 114,131,432$ 95,938,986 15,477,404 $

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

Operating income (loss) 18,571,272 $ 18,157,776 $ (3,099,989) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 8,055,262 12,901,960 3,428,411 Changes in assets and liabilities:

Accounts receivables 2,113,354 (3,399,581) (169,005) Due from other funds - - - Prepaid items 1,104,856 157,371 2,320 Lease receivable - - 26,337 Lease related deferred inflows - - (26,588) Inventory of supplies - (260,616) - Deposits and advances - - (8,650) Accounts payable (232,696) (12,810,939) 85,133 Accrued payroll 15,656 53,201 16,239 Accrued liabilities - - 24 Deposits and other liabilities 289,398 (1,175,554) 11,784 Compensated absences 47,585 (72,215) 141,546 Self-insurance - claims and judgments - - - Net pension liability 2,289,593 5,273,371 687,525 Pension-related deferred outflows (908,301) (2,065,726) (275,680) Pension-related deferred inflows (1,770,377) (3,657,666) (466,294) Net cash
provided by (used in) operating activities 29,575,602$ 13,101,382 $ 353,113 $ NONCASH TRANSACTIONS:

Amortization of loss on refunding 721,389 $ 170,583 $ - $ Capital contributions received - 1,150,364 1,290,132 Total noncash capital and related financing activities 721,389$ 1,320,947 $ 1,290,132 $ Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
City of Stockton
Major Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 36 ATTACHMENT A
709
Governmental
Activities
Internal Service
Totals Funds

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 217,776,554$ 148,715,432$
Restricted assets:

Cash and investments - 81,544,197 Cash and investments with fiscal agents 7,771,268 - Total cash and investments 225,547,822$ 230,259,629 $

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

Operating income (loss) 33,629,059$ (410,821) $
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 24,385,633 7,770,592 Changes in assets and liabilities:

Accounts receivables (1,455,232) (4,198,152)
Due from other funds - 517,111 Prepaid items 1,264,547 (626,399)
Lease receivable 26,337 -
Lease related deferred inflows (26,588) - Inventory of supplies (260,616) 117,165
Deposits and advances (8,650) (278,960) Accounts payable (12,958,502) 3,036,855
Accrued payroll 85,096 (13,180)
Due to other funds 24 -
Deposits and other liabilities (874,372) -
Compensated absences 116,916 22,851
Self-insurance - claims and judgments - 8,667,392 Net pension liability 8,250,489 -
Pension-related deferred outflows (3,249,707) - Pension-related deferred inflows (5,894,337) - Net cash
provided by (used in) operating activities 43,030,097$ 14,604,454 $ NONCASH TRANSACTIONS:

Amortization of loss on refunding 891,972$ - $ Capital contributions received 2,440,496 2,681,104 Total noncash capital and related financing activities 3,332,468$ 2,681,104 $ For the Year Ended June 30, 2023
City of Stockton
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 37 ATTACHMENT A
710
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38 ATTACHMENT A
711
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 hel d in a trustee or agenc y 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 accoun
t for land secured financing, developer area of benefit fees, pass-thru public fees on behalf of othe r 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
712
This page intentionally left blank.
40 ATTACHMENT A
713
Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS
Cash and investments 24,343,524$ 8,999,903 $
Cash and investments with fiscal agents 11,829,489 1,214 Receivables, net:

Interest 132,884 34,601
Accounts and other receivables 2, 203,123 1,133 Lease - 33,710
Capital assets:

Nondepreciable - 12,231,979
Depreciable and amortizable, net - 11,405,560 Total assets 38,509,020 32,708,100

LIABILITIES
Accounts payable 16,061 2,549
Accrued payroll - 7,255
Deposits and other liabilities 561
Due to other governments 1,712,129 -
Loans from the City - 1,106,580 Accrued interest - 1,188,613 Lease liabilities - current - 7,179 Lease liabilities - noncurrent - 5,398 Bonds payable - current - 4,455,555 Bonds payable - noncurrent - 82,442,932 Pollution remediation - 275,000 Total liabilities 1,728,190 89,491,622
Deferred Inflows of Resources
Lease - 33,324
Total deferred inflows of resources - 33,324

NET POSITION (DEFICIT)
Held in Trust - (56,816,846) Res
tricted for individual, organization, and other governments 36,780,830 - Total net position (deficit) 36,780,830$ (56,816,846) $ City of Stockton
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 41 ATTACHMENT A
714
Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:

Property tax 8,268,542$ 9,303,430 $
Use of money and property 5,473 7,020
Investment income (loss) 238,041 9,256
Debt issued 19,504,313 -
Miscellaneous - 84,409
Total additions 28,016,369 9,404,115
DEDUCTIONS:

General government 394,189 272,710
Public works 14,625,514 -
Debt obligations 8,654,088 3,050,484
Depreciation and amortization - 574,543 Miscellaneous - 2,759,589
Total deductions 23,673,791 6,657,326
CHANGE IN NET POSITION 4,342,578 2,746,789
NET POSITION (DEFICIT):

Beginning of year 32,438,252 (59,563,635)
End of year 36,780,830$ (56,816,846) $
City of Stockton
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2023
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements. 42 ATTACHMENT A
715

NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT A
716
This page intentionally left blank.

ATTACHMENT A
717
City of Stockton
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

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. Compensated Absences ........................................................................................................................ 54 Q. Long-Term Debt .................................................................................................................................. 55 R. Lease Liabilities ................................................................................................................................... 55 S. Subscription Liabilities ........................................................................................................................ 56 T. Pensions ............................................................................................................................................... 56 U. Net Position .......................................................................................................................................... 57 V. Fund Balances ...................................................................................................................................... 57 W. Property Taxes ..................................................................................................................................... 58 X. Use of Estimates................................................................................................................................... 59 Y. Implementation of New GASB Pronouncements ................................................................................ 59

Note 2 – Cash 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 ....................................................................... 63 E. Fair Value of Investments .................................................................................................................... 63 F. Risk Disclosures ................................................................................................................................... 65 G. Restricted Cash and Investments ......................................................................................................... 67

Note 3 – Interfund Transactions .......................................................................................................................... 68

A. Loans To/From Other Funds ................................................................................................................ 68 B. Transfers .............................................................................................................................................. 68

Note 4 – Lease Receivable ..................................................................................................................................... 69

Note 5 – Successor Agency – Loans from City, Net ............................................................................................ 70

Note 6 – Loans to Property Owners ..................................................................................................................... 71

ATTACHMENT A
718
City of Stockton
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023

44 Note 7 – Capital Assets .......................................................................................................................................... 72

A. Government-Wide Financial Statements ............................................................................................. 72 B. Governmental Activities ...................................................................................................................... 73 C. Business-Type Activities ..................................................................................................................... 74 D. Fiduciary Fund Activities ..................................................................................................................... 75

Note 8 – Long-Term Liabilities ............................................................................................................................ 76

A. Governmental Activities ...................................................................................................................... 76 B. Business-Type Activities ..................................................................................................................... 80 C. Fiduciary Fund Activities ..................................................................................................................... 86 D. Debt Without City Commitment ......................................................................................................... 87 E. Conduit Debt ........................................................................................................................................ 88

Note 9 – Accrued Compensated Absences ........................................................................................................... 89

Note 10 – Unamortized Loss on Refunding ......................................................................................................... 89

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 – Other Required Disclosures ................................................................................................................. 105

Note 16 – Commitments and Contingencies ........................................................................................................ 106

Note 17 – Net Invest
ment in Capital Assets and Restricted Net Position ......................................................... 108

Note 18 – Subsequent Events ................................................................................................................................ 109

Note 19 – Prior Period Adjustments .................................................................................................................... 110

ATTACHMENT A
719
City of Stockton
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

45 Note 1 – Summary of Significant Accounting Policies

The basic financial statements of the City of Stockton, Cali fornia (the “City”) have been prepared in accordance with the 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 gene ral 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 Ci ty). 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 ha s 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 si gnificance of the relationship between the City and the Successor Agency are such that it would be mislead ing 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, 2023.

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 othe r 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
720
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 on-going financial interest in nor obligation to SJAFCA. Therefore financial information for the SJAFCA is not included in the accompanying financial statements.

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.

Separate financial statements are provided for governme ntal 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 assets, 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.

ATTACHMENT A
721
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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)

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.

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.

ATTACHMENT A
722
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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)

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 H ousing grants and loans, and Neighborhood Stabilization Loan Program (NSP Funds).

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

Proprietary Fund Financial Statements

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

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

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

ATTACHMENT A
723
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

49 Note 1 – Summary of Significant Accounting Policies (Continued)

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

Proprietary Fund Financial Statements (Continued)

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 pr esented 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 Ge neral 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.

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.

ATTACHMENT A
724
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

50 Note 1 – Summary of Significant Accounting Policies (Continued)

C. Deferred Outflows/Inflows of Resources
The Statement of Net Position and Balance Sheet – Governmental Funds report separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

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

Deferred Inflows of Resources represent an acquisition of net assets 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.” Fo r 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 in vestment 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 ($35,280,860) for the fiscal year ended June 30, 2023.

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

ATTACHMENT A
725
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

51 Note 1 – Summary of Significant Accounting Policies (Continued)

F. Restricted Cash and Investments

Restricted cash and investments consist of cash and investments held by fiscal agents that are restricted due to limitations on their use by bond covenants or cash or investments with donor limitations. Fiscal agents 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.

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.

ATTACHMENT A
726
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

52 Note 1 – Summary of Significant Accounting Policies (Continued)

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 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.

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.

ATTACHMENT A
727
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

53 Note 1 – Summary of Significant Accounting Policies (Continued)

L. Lease Receivable (Continued)

 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 estimate d 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 estimate d 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.

The City established a $5,000 threshold to recognize right ‐to‐use assets, including lease assets or subscription- based information technology arrangement (“SBITA”) assets (“subscription assets”), in the government ‐wide financial statements and proprietary fund financial statements.

Right-of-Use Lease Assets

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.

ATTACHMENT A
728
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

54 Note 1 – Summary of Significant Accounting Policies (Continued)

M. Capital Assets (Continued)

Right-of-Use Subscription Assets

Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities (“subscription liabilities”) and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received from the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology assets.

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, 2023, the payroll accrual is recorded in the respective funds when the related liability is incurred.

P. 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
729
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 ne t 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 reporte d 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 Gove rnmental 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 measur es 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.

ATTACHMENT A
730
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

56 Note 1 – Summary of Significant Accounting Policies (Continued)

S. Subscription Liabilities

The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying information technology assets, or number of user seats are not included in the measurement of the subscription liability.

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

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

 The City uses the incremental borrowing rate provided by institution at July 1, 2022 by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.

 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

T. Pensions

For purposes of measuring the net pension liability and 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 paym ents (including refunds of employee contributions) are recognized when due and payable by benefit terms. Investments are reported at fair value.

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

The following time frames are used for pension reporting:

.

CALPERS
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
PARS
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

ATTACHMENT A
731
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

57 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Pensions (Continued)

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

U. 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.

V. 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 rest ricted 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.

ATTACHMENT A
732
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

58 Note 1 – Summary of Significant Accounting Policies (Continued)

V. Fund Balances (Continued)

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 – This amount is for any portion of the fund balances that do not fall into one of the above categories.

The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for spec ific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

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.

W. 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 XIIA 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 property is excluded from these limitations, and is subject to annual reappraisal.

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.

ATTACHMENT A
733
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

59 Note 1 – Summary of Significant Accounting Policies (Continued)

X. Use of Estimates

The preparation of basic financial statements in acco rdance 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.

Y. Implementation of New GASB Pronouncements

GASB Statement No. 91 In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establis hing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs).

Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 96 In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 99 - In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Stat ement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

ATTACHMENT A
734
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

60 Note 2 – Cash and Investments

The following is a summary of cash, cash equivalents, and investments, including restricted cash and investments on June 30, 2023:

A. Cash Deposits

The carrying amount of the City’s pooled cash deposits was $62,587,640 at June 30, 2023. Bank balances before reconciling items were $69,422,418 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. Th is 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 24,630 $
Demand Deposits 62,587,640
Total Deposits 62,612,270
Investments 947,280,779
Total Cash and Investments 1,009,893,049$
Presented in the government-wide statement of net position:

Cash and Investments 873,781,412 $
Restricted Cash and Investments 90,937,507
Presented in the statement of fiduciary net position:

Cash and Investments 33,343,427
Cash and investments with fiscal agents 11,830,703
Total Cash and Investments 1,009,893,049$

ATTACHMENT A
735
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

61 Note 2 – Cash 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
Maximum in Legal Investments in
Authorized Investment Type Maturity Portfolio Rating One Issuer Securities of the U.S. Government or its agencies:

U.S. Treasury Bonds, Notes and Bills No Limit No Limit N/A No limit State of California Obligations 10 Years No Limit N/A 5% 49 other States Obligations 10 Years No Limit N/A 5%
California Non Stockton Local Agency Obligations 10 Years No Limit N/A No limit U.S. Agency and U.S. Government sponsored
Enterprise Securities 10 Years** No Limit N/A No limit
City of Stockton Obligations 5 Years* None None No limit Negotiable Certificates of Deposit 5 Years* 30% AA 5%
Time Certificates of Deposit 5 Years 20% N/A No limit
Bankers' Acceptances 180 Days 40% A, A-1 5%
Commercial Paper 270 Days 25% A1, P1, F-1
5%; 10% of
outstanding CP
of any single
issuer
Medium-Term Corporate Notes 5 Years 30% A 5%
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
$75,000,000
per account
California Asset M anagement Program Upon Demand No Limit N/A*** 10% Repurchase Agreements 1 year None N/A No limit
Reverse Repurchase Agreements 92 days 20% N/A No limit
- If the City invests in Repurchase Agreements, a M aster Repurchase Agreement is required
Demand Accounts - Insured/Collateralized Medium Term Notes N/A No Limit N/A No limit Mutua l Funds
SEC registered M oney M arket 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
No limit
N/A- Not Applicable
* 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 30% of the total portfolio value.
*** Pool composition restricted by CSA 53601.

ATTACHMENT A
736
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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.

Minimum Maximum Maximum
Maximum Legal in Investment
in
Authorized Investment Type Maturity Rating Portfolio 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
Sp onsored 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
Mone y Ma rke t Mutua l Funds No L i m i t AAm 20% No L i m i t 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 Code 53601 as to % that the pool must abide by

ATTACHMENT A
737
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

63 Note 2 – Cash 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, 2023, the City had $30,073,756 invested in LAIF, which had invested 2.78% of the Pool investment funds in medium-term and short-term structured notes as well as asset-backed securities. The face value of the City’s position in the pool is the same as the value of the pool shares.

D. Investments in California Asset Management Program

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

As of June 30, 2023, the City had $112,656,911 invested in CAMP, which had invested 11.62% 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, 2023, 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, 2023. 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
738
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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) Investments are valued at an amortized cost which approximates fair value.

Inv estments subject to fair v alue measurement categorizations: June 30, 2023 L ev el 1 L ev el 2 U ncategorized (3) U. S. Agencies (1) 154,177,714$ - $ 154,177,714$ - $ U. S. Treasuries 370,960,126 370,960,126 - - Medium term notes(1) 136,786,965 - 136,786,965 - Supranationals (2) 11,557,397 - 11,557,397 - Mu ni c i pa l Bon ds (1) 15,941,249 - 15,941,249 - Federal Agency CM Os (1) 10,680,035 - 10,680,035 - Negotiable CD (1) 2,799,300 - 2,799,300 - Cmmercial Paper (1) 10,230,562 - 10,230,562 - Asset backed securities (1) 10,203,214 - 10,203,214 - Cash - PARS 115 Trust (3) 24,927 - - 24,927 Equity Mutual Fund- PARS 115 Trust 19,948,073 - 19,948,073 - Fixed Income MutuaL Fund- PARS 115 Trust (1) 44,160,035 - 44,160,035 - Idle Funds in Reserve Portfolio(3) 1,847,787 - - 1,847,787 Local Agency Investment Fund (LAIF) 30,073,756 - - 30,073,756 California Asset Management Program (CAMP) 112,656,911 - - 112,656,911 Money Market Funds (attributable to 115 Trust) 15,232,728 - - 15,232,728 Total 947,280,779$ 370,960,126$ 416,484,544$ 159,836,109$ Measurement Input

ATTACHMENT A
739
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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

F. Risk Disclosures

Interest Rate Risk

As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed ten 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 thirty percent (30%) of the total portfolio value at any given time. The maturity of investments is evaluated before purchase depending on liquidity needs.

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

Investment Maturities
Inve stme nt Type Fair Val ue 1 year or less 1-3 years 3-5 years 5 years
or more
U.S. Agencies 154,177,715 $ 47,984,339 $ 82,047,011 $ 4,244,780 $ 19,901,585 $ U.S. Treasuries 370,960,127 47,425,946 174,102,540 77,238,228 72,193,413 Medium Term (Corporate) Notes 136,786,965 27,369,040 74,017,190 35,400,735 - Supranationals 11,557,397 3,664,726 7,892,671 - - Municipal Bonds 15,941,249 4,356,367 11,584,882 - - Federal Agency CMOs 10,680,034 936,157 - 9,743,877 - Local Agency Investment Fund 30,073,756 30,073,756 - - - Capital Asset Management Program 112,656,911 112,656,911 - - - Money Market Funds (attributable to 115 Trust) 15,232,727 15,232,727 - - - Negotiable CD 2,799,300 - 2,799,300 - - Asset Backed Securities 10,203,214 - 6,054,949 4,148,265 - Commercial paper 10,230,562 10,230,562 - - - Cash - PARS 115 Trust 24,927 24,927 - - - Equity Mutual Fund- PARS 115 Trust 19,948,073 19,948,073 - - - Fixed Income Mutual Fund- PARS 115 Trust 44,160,035 44,160,035 - - - Idle Funds in Reserve Portfolio 1,847,787 1,847,787 - - - Total
947,280,779$ 365,911,353$ 358,498,543$ 130,775,885$ 92,094,998$ Allocation by percentage 100% 35% 40% 24% 1%

ATTACHMENT A
740
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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

F. Risk Disclosure (Continued)

Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

It is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the actual rating as of June 30, 2023, for each investment type as provided by Standard and Poor’s 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 16, 2023, S&P affirmed the AA+ rating with a stable outlook that is still in place today. Moody their AAA rating with negative outlook in November 2023. In May of 2023 Fitch placed its AAA rating on a negative watch ultimately downgrading the U.S. to a AA+ rating in August of 2023.

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 -$ 511,419,806$ -$ 13,183,522$ -$ 524,603,328$ Callable - 4,108,931 - - - 4,108,931 Medium term notes:

Non-callable - 23,111,458 52,562,424 - 3,683,269 79,357,151 Callable 7,477,180 5,955,571 41,402,856 - 2,594,207 57,429,814 Asset Backed Securities 8,549,721 - - - - 8,549,721 Commercial Paper - - - 10,230,562 - 10,230,562 Negariable CDs - - 2,799,300 - - 2,799,300 Supranationals 11,557,397 - - - - 11,557,397 Municipal securities 2,772,839 13,168,411 - - - 15,941,250 Total 30,357,137$ 557,764,177$ 96,764,580$ 23,414,084$ 6,277,476$ 714,577,454 Not rated or exempt from rating disclosure:

Asset Backed Securities 1,653,493
Local Agency Investment Fund 30,073,756
California Asset Managem ent Program 112,656,911
U. S. Agencies 7,105,616
Section 115 Trust Mutual Funds (not rated) 79,340,835
Cash Held in 115 Trust 24,927
Idle Funds in Reserve Portfolio 1,847,787
Total Investments 947,280,779$
Inve stme nt Type

ATTACHMENT A
741
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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

F. Risk Disclosure (Continued)

Concentration Credit Risk (Continued)

At June 30, 2023, 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 primary for the construction or acquisition of facilities, and reserves for payment of debt service as required by the bond indentures.

Cash and investments with fiscal agents are one component of the City’s restricted cash. At June 30, 2023, the restricted cash and investments with fiscal agents are as follows:

The City has a reserve policy for its Water, Wastewater, and Stormwater Funds governing the establishment of reserve funds and the procedures for Rate Stabilization accounts. The reserve policy is in place to mitigate future revenue fluctuations, where revenues are interrupted or otherwise insufficient to offset the operating expenditures and to minimize the impact of rate increases. In addition to the reserve policy, 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 in 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 balances in the Water and Wastewater Rate Stabilization Accounts at June 30, 2023, were $2,890,795 and $12,605,720, respectively.

Issue r Investme nt Type
Reported
Amount Total Holdings
Held by City: $ 947,280,779
Federal National M ortgage Association Federal Agency Securities 86,213,224$ 9.10% Governmental activities 83,166,239$
Business-t ype activities:

Water Utility 5,862
Wastewater Utility 2,950,201
Parking Authority 4,815,205
Subtotal 7,771,268
Fiduciary Funds 11,830,703
Total restricted cash and investments 102,768,210$

ATTACHMENT A
742
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 amount of $7,733,073 of interfund loan balances, broken down by short and long-term net of interest, as of June 30, 2023 is shown below.

The inter-fund transactions were as follows:

 The $6,368,227 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 $1,364,846 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.

B. Transfers

Interfund transfers report the nonreciprocal contributions of resources from one fund to another that include program support, debt service and settlement, and othe r one-time transfers. The following is a summary of transfers for the year ended June 30, 2023:

Fund Making Loan Fund Receiving Loan Short-Term L ong-term Total Internal Service Funds -Workers' Compensation Parking Authority 655,208$ 5,713,019$ 6,368,227$ Internal Service Funds -Workers' Compensation Internal Service Funds -Vehicle Fleet Equipment 420,602 944,244 1,364,846 Total 7,733,073$
Transfers In Transfers Out Net Transfers
Gove rnme ntal Acti vi ti e s:

General Fund Program Support -$ (6,306,542)$ (6,306,542)$ General Fund Capital Improvement - (14,576,488) (14,576,488) General Fund Debt Service - (8,422,050) (8,422,050) General Fund Retirement - (10,000,000) (10,000,000) Federal Housing Grants Debt Service/ Settlement - (349,449) (349,449) Nonmajor Government Funds Program Support 976,676 (17,752,547) (16,775,871) Nonmajor Government Funds Debt Service 8,973,968 - 8,973,968 Capital Improvement Program Support 32,664,965 (202,469) 32,462,496 Internal Service Funds Program Support 5,409,407 - 5,409,407 Internal Service Funds Retirement 10,000,000 - 10,000,000 Total governmental activities 58,025,016 (57,609,545) 415,471 Business-type Activities:

Water Utility Program Support - (233,900) (233,900) Wastewater Utility Program Support - (157,371) (157,371) Stormwater Utility Program Support - (396,200) (396,200) Downtown Marina Program Support 262,000 - 262,000 Golf Courses Program Support 110,000 - 110,000 Total business-type activities 372,000 (787,471) (415,471) Total Government-Wide Statements 58,397,016$ (58,397,016)$ -$

ATTACHMENT A
743
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

69 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, 2023, the City recognized $71,038, $26,587, and $7,790 in lease revenue and $24,436, $195, and $308 in interest revenue for the Governmental Activities, the Business-Type Activities, and the Successor Agency, respectively. The outstanding receivables are in the amounts of $1,426,125, $33,074, and $33,710 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 Princi pal Interest Total Princi pal Interest Total 2024 40,230$ 47,658 $ 87,888 $ 26,446$ 86$ 26,532 $ 7,674 $ 246$ 7,920 $ 2025 41,129 48,703 89,832 6,628 5 6,633 7,737 183 7,920 2026 44,165 48,766 92,931 - - - 7,800 120 7,920 2027 47,343 48,830 96,173 - - - 7,864 56 7,920 2028 49,513 48,882 98,395 - - - 2,635 4 2,639 2029 - 2033 282,875 91,769 374,644 - - - - - - 2034 - 2038 349,725 66,295 416,020 - - - - - - 2039 - 2043 66,297 48,568 114,865 - - - - - - 2044 - 2048 72,543 42,322 114,865 - - - - - - 2049 - 2053 79,377 35,488 114,865 - - - - - - 2054 - 2058 86,855 28 ,010 114,865 - - - - - - 2059 - 2063 95,038 19,827 114,865 - - - - - - 2064 - 2068 103,991 10,874 114,865 - - - - - - 2069 - 2071 67,044 1,879 68,923 - - - - - - 1,426,125$ 587,871 $ 2,013,996$ 33,074 $ 91$ 33,165 $ 33,710 $ 609$ 34,319 $ Governmental Activities Business-Type Activities Fidicuary Funds

ATTACHMENT A
744
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

70 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, 2023, 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 lo ans 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, 2023, is $2,853,824 and has been offset by an allowance for uncollectible loan and interest in the amount of $1,747,244, 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 $512,853 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, 2023, the outstanding accrued interest balance is $1,234,391.

Fund Providing Loan Fund Receiving Loan
Outstanding
Balance
A llow ance for
Uncollectible
Loans Ne t Bal ance
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 512,853 (512,853) - Interest on Redevelopment Agency Loans 1,234,391 (1,234,391) - Total 2,853,824$ (1,747,244)$ 1,106,580$

ATTACHMENT A
745
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

71 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 on June 30, 2023 are as follows:

First Time Home Buyers Home Investment Partnership Program (HOME) The Home Investment Partnerships Loan Programs are funded through U.S. Department of Housing and Urban Development HOME funds. The programs include deferred gap financing loans for qualified first-time homebuyers, owner-occupied housing rehabilitation loans to qualifie d 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 Programs
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 First Time Home Buyer Program The Neighborhood Stabilization Progr am loans are funded through U.S. De partment 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 Program (Former Agency) 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 Ne ighborhoods 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
Allowance for
U ncollectible
Loans
Net Balance
First Time Home Buyers Program (HOME) 41,725,245$ 9,839,358$ (1,735,238)$ 49,829,365$ Community Development Block Grant Programs 16,176,412 2,580,380 (880,170) 17,876,622 Neighborhood Stabilization First Time Home Buyer Program 10,753,236 1,702,819 - 12,456,055 California Home Loans 2,797,421 367,121 (953,697) 2,210,845 Low & Moderate Income Housing Programs (former Agency) 53,768,473 14,844,842 - 68,613,315 Total 125,220,787$ 29,334,520$ (3,569,105)$ 150,986,202$ Gove rnme ntal Acti vi te s

ATTACHMENT A
746
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

72 Note 7 – Capital Assets

A. Government-Wide Financial Statements

At June 30, 2023, 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 252,839,333 233,679,173 486,518,506 Total capital assets, not being depreciated 295,390,858 248,806,391 544,197,249 Capital assets, being depreciated:

Infrastructure 623,722,939 - 623,722,939 Buildings and improvements 324,338,702 1,058,646,939 1,382,985,641 M achinery and equipment 91,924,681 20,732,210 112,656,891 Total capital assets, being depreciated 1,039,986,322 1,079,379,149 2,119,365,471 Less accumulated depreciation for:

Infrastructure (249,663,022) - (249,663,022) Buildings and improvements (150,310,618) (471,649,054) (621,959,672) M achinery and equipment (62,782,244) (14,381,154) (77,163,398) Total accumulated depreciation (462,755,884) (486,030,208) (948,786,092) Total capital assets, being depreciated, net 577,230,438 593,348,941 1,170,579,379 Intangible assets, being amortized:

Intang ible asset - rig ht to use leased assets 2,291,649 2,847,464 5,139,113 Intang ible asset - rig ht to use subscriptions 11,892,463 61,204 11,953,667 Total intangible assets, being amortized 14,184,112 2,908,668 17,092,780 Less accumulated amortization for:

Intang ible asset - rig ht to use leased assets (398,930) (384,186) (783,116) Intang ible asset - rig ht to use subscriptions (3,664,781) (28,234) (3,693,015) Total accumulated amortization (4,063,711) (412,420) (4,476,131) Total intangible assets, being amortized, net 10,120,401 2,496,248 12,616,649 Capital assets, net 882,741,697$ 844,651,580$ 1,727,393,277$

ATTACHMENT A
747
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

73 Note 7 – Capital Assets (Continued)

B. Governmental Activities

Summary of changes in governmental activities capital assets for the year ended June 30,2023, are as follows:

Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2023, are as follows:

Balance
July 1, 2022 Balance
Governmental activities: (As restated) Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:

Land 38,196,565 $ - $ -$ -$ 38,196,565$ Intangible assets - easements 4,354,960 - - - 4,354,960 Construction in progress 192,071,580 63,796,556 (3,028,803) 252,839,333 Total capital assets, not being depreciated 234,623,105 63,796,556 - (3,028,803) 295,390,858 Capital assets, being depreciated:

Infrastructure 615,830,270 7,892,669 - - 623,722,939 Buildings and improvements 324,338,702 - - - 324,338,702 Machinery and equipment 86,136,929 2,484,084 - 3,303,668 91,924,681 Total capital assets, being depreciated 1,026,305,901 10,376,753 - 3,303,668 1,039,986,322 Less accumulated depreciation for:

Infrastructure (238,120,517) (11,542,505) - - (249,663,022) Buildings and improvements (143,856,222) (6,454,396) - - (150,310,618) Machinery and equipment (57,357,324) (5,424,920) - - (62,782,244) Total accumulated depreciation (439,334,063) (23,421,821) - - (462,755,884) Total capital assets, being depreciated, net 586,971,838 (13,045,068) - 3,303,668 577,230,438 Intangible assets, being amortized:

Intangible asset - right to use leased assets 2,017,470 1,877,008 (1,602,829) - 2,291,649 Intangible asset - right to use subscriptions 10,711,087 1,181,376 - - 11,892,463 Total intangible assets, being amortized 12,728,557 3,058,384 (1,602,829) - 14,184,112 Less accumulated amortization for:

Intangible asset - right to use leased assets (997,527) (1,004,232) 1,602,829 - (398,930) Intangible asset - right to use subscriptions - (3,664,781) - - (3,664,781) Total accumulated amortization (997,527) (4,669,013) 1,602,829 - (4,063,711) Total intangible assets, being amortized, net 11,731,030 (1,610,629) - - 10,120,401 Governmental activities ca pital assets, ne t 833,325,973$ 49,140,859 $ - $ 274,865$ 882,741,697$ Governmental Activities:

General Government 1,362,853$
Public Works 13,563,538
Parks and Recreation 3,379,429
Library 469,426
Public Safety 1,544,996
Internal Service Funds 7,770,592
Total 28,090,834$

ATTACHMENT A
748
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

74 Note 7 – Capital Assets (Continued)

C. Business-Type Activities

Summary of changes in business-type activities capital assets for the year ended June 30, 2023, are as follows:

Business-type activities depreciation and amortization expenses for capital assets for the year ended June 30, 2023, are as follows:

Balance
July 1, 2022 Balance
Business-type activities: (As restated) Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:

Land 15,127,218$ -$ -$ 15,127,218$ Construction in progress 193,438,375 43,846,166 (317,066) (3,288,302) 233,679,173 Total capital assets, not be ing de pre ciate d 208,565,593 43,846,166 (317,066) (3,288,302) 248,806,391 Capital assets, being depreciated:

Buildings and improvements 1,051,872,475 3,486,163 - 3,288,302 1,058,646,940 M achinery and equipment 17,956,150 3,050,925 - (274,865) 20,732,210 Total capital assets, being depreciated 1,069,828,625 6,537,088 - 3,013,437 1,079,379,150 Le ss accumulate d de preciati on for:

Buildings and imp rovements (448,796,561) (22,852,494) - - (471,649,055) Machinery and equipment (13,090,312) (1,290,842) - - (14,381,154) Total accumulated depreciation (461,886,873) (24,143,336) - - (486,030,209) Total capital assets, being depreciated, net 607,941,752 (17,606,248) - 3,013,437 593,348,941 Intangible assets, being amortized:

Intangible asset - right to use leased assets 2,866,646 26,017 (45,199) - 2,847,464 Intangible asset - right to use subscriptions 45,850 15,354 - - 61,204 Total intangib le assets, being amortized 2,912,496 41,371 (45,199) - 2,908,668 Less accumulated amortization for:

Intangible asset - right to use leased assets (215,324) (214,061) 45,199 - (384,186) Intangible asset - right to use subscriptions - (28,234) - - (28,234) Total accumulated amortization (215,324)
(242,295) 45,199 - (412,420) Total intangib le assets, being amortized, net 2,697,172 (200,924) - - 2,496,248 Business-type activities capital assets, net 819,204,517$ 26,038,994$ (317,066)$ (274,865)$ 844,651,580$ Business-type Activities:

Water Utility 8,055,262 $
Wastewater Utility 12,901,960
Stormwater Utility 1,736,693
Parking Authority 1,050,405
Golf Courses 93,905
Marina 547,406
Total 24,385,631$

ATTACHMENT A
749
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

75 Note 7 – Capital Assets (Continued)

D. Fiduciary Fund Activities

Summary of Changes in Fiduciary Fund capital assets for the year ended June 30, 2023, are as follows:

Fiduciary fund depreciation and amortization expenses for capital assets for the year ended June 30, 2023, are as follows:

Balance Balance
Fiduciary fund activities: July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not be ing de pre ciate d:

Land 12,131,979 $ - $ - $ - $ 12,131,979$ Intangible assets - easements 100,000 - - - 100,000 Total capital assets, not being depreciated 12,231,979 - - 12,231,979 Capital assets, being depreciated:

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

Infrastructure (3,274,921) (249,654) - - (3,524,575) Buildings and improvements (6,764,175) (301,151) - (7,065,326) M achinery and equip ment (298,060) (18,677) - - (316,737) Total accumulated depreciation (10,337,156) (569,482) - - (10,906,638) Total capital assets, being depreciated, net 11,962,468 (569,482) - - 11,392,986 Intangible assets, being amortized:

Intang ible asset - rig ht to use leased assets 7,615 14,372 (7,615) - 14,372 Total intangible assets, being amortized 7,615 14,372 (7,615) - 14,372 Less accumulated amortization for:

Intang ible asset - rig ht to use leased assets (4,352) (5,061) 7,615 - (1,798) Total accumulated amortization (4,352) (5,061) 7,615 - (1,798) Total intangible assets, being amortized, net 3,263 9,311 - - 12,574 Fiduciary fund activities capital assets, net 24,197,710$ (560,171)$ -$ -$ 23,637,539$ Fiduciary Fund Activities:

Successor Agency 574,543 $

ATTACHMENT A
750
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

76 Note 8 – Long-Term Liabilities

A. Governmental Activities

Summary of changes in governmental activities long-term debt for the year ended June 30, 2023, are as follows:

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, 2023, bonds totaling $71,755,000 were due in installments of principal ranging from $3,420,000 on September 1, 2023, 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. As of June 30, 2023, bonds totaling $23,960,000 are due in installments of principal ranging from $1,140,000 on September 1, 2023, 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.

Payments/
Additions Payments/ Short-Term Long te rm
Governmental Fund Activities Debt
City Debt
Assured Guaranty Settlement
Assured Settlement Obligation 53,083,658$ -$ (198,847)$ 52,884,811$ 237,557$ 52,647,254$ Subtotal Settlement Obligation Bonds 53,083,658 - (198,847) 52,884,811 237,557 52,647,254 Other Long-Term Obligations
CDBG
USD-HUD Housing Note 4,365,000 - (2,445,000) 1,920,000 1,920,000 - Subtotal CDBG 4,365,000 - (2,445,000) 1,920,000 1,920,000 - L ease L iabilities
Leases liabilities 335,602 1,877,005 (314,908) 1,897,699 1,020,138 877,561 Subtotal Lease Liabilities 335,602 1,877,005 (314,908) 1,897,699 1,020,138 877,561 Sub scrip tion liabilities
Subscription liabilities 10,644,943 1,093,126 (3,932,448) 7,805,621 4,015,559 3,790,062 Subtotal Subscription Liabilities 10,644,943 1,093,126 (3,932,448) 7,805,621 4,015,559 3,790,062 Total 68,429,203$ 2,970,131$ (6,891,203)$ 64,508,131$ 7,193,254$ 57,314,877$ Balance
July 1, 2022
(As restated)
Balance
June 30, 2023

ATTACHMENT A
751
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

77 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)

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 $1,646,025 on July 1, 2023 to $2,009,482 due on July 1, 2053; Lease Ask Fund payments are due in in installments ranging from $2,529,125 on June 1, 2024 to $2,531,250 due on June 1, 2052; and Supplemental Payments are due in installments of $250,000 from June 1, 2024, 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, 2024, is currently anticipated to be $5,027,000.

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%.

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.

ATTACHMENT A
752
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

78 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Annual Debt Service Requirements to Maturity

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

Other Long-term Obligations

Notes Payable

The City entered into four Section 108 loan guarantee agreements with the U.S. Department of Housing and Urban Development (HUD) to complete redevelopment projects. All but one has been repaid. On February 9, 2023, the City sent a Notice of Election to Defease to the U.S. Department of Housing and Urban Development in which the final payment due was submitted and accepted in the amount of $615,000. The loan still has one remaining installment due of $1,920,000, which will be paid on August 1, 2023.

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

Year
June 30, Principal Interest Principal Interest Principal Interest 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 147,406 1,357,147 - 2,528,625 250,000 2029-2033 1,221,605 6,629,352 - 12,649,689 - 1,250,000 2034-2038 2,234,697 6,187,504 497,220 12,152,407 - 1,250,000 2039-2043 4,751,681 5,295,729 6,660,087 5,988,977 186,025 1,163,975 2044-2048 6,214,976 3,832,434 8,711,902 3,937,724 1,205,203 544,797 2049-2053 8,128,897 1,918,513 8,863,925 1,255,076 1,226,349 173,651 2054 1,904,434 105,049 - - - - 25,534,100$ 30,871,858 $ 24,733,134 $ 48,632,436 $ 2,617,577 $ 5,632,423 $ Sup p lemental P ayments2007 Lease Ask PaymentsSpecial Fund Payments Year Ending
June 30, Principal Interest
2024 1,920,000$ 41,541$
Notes Payable
U.S. Dept. of Housing & Urban Development

ATTACHMENT A
753
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

79 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Leases Liabilities

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, 2023 are as follows:

Subscription Liabilities

The City has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 14 to 72 months with implicit rates used between 1.850% to 3.651%. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest
2024 1,020,138$ 4,730 $
2025 788,380 1,516
2026 83,713 227
2027 5,468 2
Total 1,897,699$ 6,475 $
Le ase s
Year Ending
June 30, Principal Interest
2024 4,015,559$ 185,598$
2025 2,141,967 90,998
2026 1,058,539 47,271
2027 300,817 15,897
2028 288,739 7,784
Total 7,805,621$ 347,548$
S ubscriptions

ATTACHMENT A
754
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

80 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities

Summary of changes in business-type activities long-term debt for the year ended June 30, 2023, are as follows:

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, 2023, $124,285,000 of 2018A Bonds remain ou tstanding with installments of principal ranging from $5,650,000 to $12,195,000 due October 1, 2023, 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 $11,521,262.

Balance
July 1, 2022 Balance
W ater Utility Obligations (As restated) Additions Payments/ Amort/Prem/ June 30,2023 Short-Term Long-Term 2018A Water System Demand Revenue Bonds 129,930,000$ - $ (5,645,000)$ - $ 124,285,000$ 5,650,000 $ 118,635,000 $ Premium 12,331,335 - - (810,073) 11,521,262 810,073 10,711,189 53,700,000 - (560,000) - 53,140,000 570,000 52,570,000 Subs cription liabilities 13,675 15,354 (14,641) - 14,388 6,523 7,865 Subtotal Water Utility Obligations 195,975,010 15,354 (6,219,641) (810,073) 188,960,650 7,036,596 181,924,054 Wastewater Utility Obligations
2014 Wastewater Refunding Revenue Bonds 43,755,000 - (4,410,000) - 39,345,000 4,635,000 34,710,000 Premium (on 2014 refunding) 5,233,863 - - (729,982) 4,503,881 729,981 3,773,900 2020 EPA WIFIA loan 108,000,000 - - - 108,000,000 - 108,000,000 Subs cription liabilities 24,414 - (11,819) - 12,595 11,693 902 Lease liabilities 5,114 1,105 (5,329) - 890 890 - Subtotal Wastewater Utility Obligations 157,018,391 1,105 (4,427,148) (729,982) 151,862,366 5,377,564 146,484,802 Stormwater Obligations
Subs cription liabilities 7,762 - (3,808) - 3,954 3,774 180 Subtotal Stormwater Obligations 7,762 - (3,808) - 3,954 3,774 180 Central Parking District
24,110,000 - (360,000) - 23,750,000 545,000 23,205,000 Premium 5,172,846 - - (209,710) 4,963,136 209,710 4,753,426 Lease liabilities 2,642,633 24,912 (172,163) - 2,495,382 184,069 2,311,313 Subtotal Central Parking District 31,925,479 24,912 (532,163) (209,710) 31,208,518 938,779 30,269,739 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 395,797,463$ 41,371$ (11,182,760)$ (1,749,765)$ 382,906,309$ 13,356,713$ 369,549,596$ 2019A Water System Demand Taxable Revenue
2020 Parking Lease Revenue Bonds

ATTACHMENT A
755
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

81 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Water Utility (Continued)

Stockton Public Financing Authority Water Revenue Ref unding 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, 2023, $53,140,000 of 2019A Bonds remain outstanding with installments of principal ranging from $570,000 to $15,635,000 due from October 1, 2023, through October 1, 2040, with interest rates ranging from 2.274% 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.

Pledge Revenues

The City has pledged future net system revenues from the Water Fund for the repayment of all the Revenue Bonds of the Water Fund. For the year ended June 30, 2023, total principal and interest paid was $14,301,450 and net revenues were $33,814,3619. Rate stabilization Funds balances at June 30, 2023 stand at $2,890,795. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $255,839,055.

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.

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, 2023.

Unused lines of Credit

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

ATTACHMENT A
756
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

82 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Water Utility (Continued)

Subscription Liabilities

The Water Utility has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 16 to 36 months with implicit rates used between 1.8503% to 3.378%.

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, 2023, bonds totaling $39,345,000 are due in annual installments of principal ranging from $4,635,000 to $6,530,000 from September 1, 202, 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.

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, 2023, 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.

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 issu ed on parity with the 2014A bonds. The loan was issued at par value.

At 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.

Pledge Revenues

The City has pledged future net revenues from the Wastewater Fund for the repayment of the Bonds and Notes.

For the year ended June 30, 2023, the City paid total principal and interest of $7,516,625 and had net revenues of $36,266,219. Rate stabilization Funds balances at June 30, 2023 stand at $12,605,720. On June 30, 2023, the total principal and interest remaining to be paid on the Wastewater Bonds are $177,956,902.

ATTACHMENT A
757
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

83 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Wastewater Utility (Continued)

Pledge Revenues (Continued)

The bonds of the Wastewater Utility are secured by and pa yable 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, 2023, at each measurement period.

Unused lines of Credit

There is no unused lines of credit as it pertains to the operation of the wastewater utility.

Lease Liabilities

On September 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 June 30, 2022, the value of the lease liability is $5,114.

Stockton, CA is required to make monthly fixed payments of $366. 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 June 30, 2023 of $9,863 with accumulated amortization of $9,250 is included with Buildings on the Lease Class Activities.

Subscription Liabilities

The Wastewater Utility has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 16 to 31 months with implicit rates used between 1.8503% to 2.3543%.

ATTACHMENT A
758
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

84 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Stormwater

The Stormwater has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 16 to 31 months with implicit rates used between 1.8503% to 2.3543%.

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, 2023, the 2020 Parking Bonds totaling $23,750,000 are due in annual installments of principal ranging from $545,000 on March 1, 2024 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.

Stockton Public Financing Authority- Parking Revenue Bonds, Series 2020 (Continued)

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 $4,963,136.

Lease Liabilities

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.

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 30,2023, the city paid total principal and interest of $1,521,950 and had net revenues of $657,569.

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 construc tion 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, 2023 is $10,870,821.

ATTACHMENT A
759
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

85 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Downtown Marina (Continued)

Construction and Planning Loans (Continued)

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 (DBA W), 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

W ater U tility W astew ater Utility
Year Ending
June 30, Principal Interest Princip al Interest Principal Interest Principal Interest Principal Interest Principal Interest 2024 6,220,000$ 7,801,588$ 4,635,000$ 1,851,375$ -$ 1,296,000$ 545,000$ 1,143,950$ 184,959$ 36,264$ 21,990$ 471$ 2025 6,530,000 7,498,223 5,090,000 1,608,250 - 1,296,000 570,000 1,116,700 183,596 33,613 1,640 15 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 7,307 739 2027 7,215,000 6,841,793 5,620,000 1,073,250 - 1,296,000 630,000 1,058,200 179,584 28,255 - - 2028 7,585,000 6,486,724 5,910,000 785,000 - 1,296,000 660,000 1,026,700 182,319 25,521 - - 2029-2033 44,130,000 26,405,106 12,745,000 645,125 17,588,635 6,166,552 3,840,000 4,603,250 954,087 85,113 - - 2034-2038 58,615,000 14,190,136 - - 23,199,447 4,874,536 4,880,000 3,553,500 634,836 15,545 - - 2039-2043 40,270,000 2,011,853 - - 24,625,224 3,448,759 6,045,000 2,393,800 - - - - 2044-2048 - - - - 26,138,626 1,935,357 5,980,000 765,500 - - - - 2049-2052 - - - - 16,448,068 396,323 - - - - - - Total 177,425,000$ 78,414,055$ 39,345,000$ 7,310,375$ 108,000,000$ 23,301,527$ 23,750,000$ 16,749,800$ 2,496,272$ 255,260$ 30,937$ 1,225$ Subscription liabilities
Central Parking District
Le ase sRev enue Bonds Rev enue Bonds Rev enue Bond sWIFIA Loan

ATTACHMENT A
760
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

86 Note 8 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Activities

Annual Debt Service Requirements to Maturity (Continued)

Summary of changes in fiduciary fund long-term liabilities for the year ended June 30, 2023, 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, 2023, 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 $6,286,286.

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, 2023, the 2016 Series B Bonds totaling $7,340,000 are due in annual installments of principal ranging from $3,925,000 to $3,415,000 due in annual installments through on September 1, 2037, with interest rates ranging from 2.375% to 2.75%. The principal amount due is reported net of the unamortized discount of $37,796.

Balance Balance
Successor Agency to RDA of Stockton July 1, 2022 Additions Reductions June 30, 2023 Current Non-Current Revenue Bonds
73,310,000$ - $ - $ 73,310,000$ - $ 73,310,000$ Premium 6,849,237 - (562,951) 6,286,286 562,951 5,723,335 11,180,000 - (3,840,000) 7,340,000 3,925,000 3,415,000 Discount (70,195) - 32,396 (37,799) (32,396) (5,403) - 14,372 (1,795) 12,577 7,179 5,398 Total Successor Agency to RDA Liabilities 91,269,042$ 14,372 $ (4,372,350)$ 86,911,064$ 4,462,734$ 82,448,330$ 2016 Series A Successor Agency
Tax Allocation Bonds
2016 Series B Successor Agency
Tax Allocation Bonds (Taxable)
Lease liabilities

ATTACHMENT A
761
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

87 Note 8 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Activities (Continued)

Successor Redevelopment Agency (Continued)

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

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

A pledge of tax revenues received by the Successor Agency as described below is the only source of payment pledged on these bonds and no real property is pledged as collateral. Section 10.XX of the indenture lists events of default that if uncured, may, with consent of 25% of the registered owners, result in acceleration of the bonds.

Should this occur, funds held by the trustee will be immediately used to satisfy any defaulted payment.

Subsequently, the bond insurer would be required to satisfy bondholders as payments become due. Upon court order, Tax Revenues received by the Agency would be transmitted to the Trustee, or Insurer to satisfy reimbursement. The bond insurer, at its option may satisfy the accelerated payments and seek reimbursement from Tax Revenues received by the Agency.

Annual Debt Service Requirements to Maturity

D. Debt Without City Commitment

Community Facilities Districts Debts:

Land Secured Debt Financing (No City Commitment) – Th e 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.

Ye ar
Endi ng
June 30, Principal Interest Principal Interest Principal Interest 2024 - $ 3,373,800$ 3,925,000 $ 142,975 $ 7,179 $ 11 $ 2025 610,000 3,358,550 3,415,000 46,956 5,398 29 2026 4,150,000 3,239,550 - - - 7 2027 4,360,000 3,026,800 - - - - 2028 4,575,000 2,803,425 - - - - 2029-2033 26,550,000 10,313,850 - - - - 2034-2039 33,065,000 3,664,000 - - - - Total 73,310,000$ 29,779,975$ 7,340,000$ 189,931$ 12,577$ 47$ 2016 S eries A S uccessor Agency Tax
Al location Bonds
2016 S eries B S uccessor Agency Tax
Allocation Bonds (Taxable) Lease Liabilities

ATTACHMENT A
762
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

88 Note 8 – Long-Term Liabilities (Continued)

D. Debt Without City Commitment (Continued)

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, 2023, there was seven CFD special tax bonds and three revenue bonds outstanding with aggregate principal amounts payable of $48,086,000 and $54,125,000, respectively.

E. Conduit Debt

Conduit Debt (No City Commitment) – At June 30, 2023, there is no conduit debt outstanding that was issued with the City as the conduit issuer.

Amount of Issue Outstandin g
June 30, 2023
CFD Special Tax Bonds:

Cannery Park CFD 2005-1 Series 2019 9,855,000 $ 8,905,000 $ CFD 2018-12018 Arch Road/Newcastle 3,535,000 3,250,000 Westlake CFD 2006-2 SERIES 2019 ( Private Placement) 3,134,000 2,826,000 Westlake Villages II Imp Area 1A (Series 2020) 8,970,000 8,905,000 Westlake Villages II Imp Area 1A (Series 2021) 4,535,000 4,510,000 Westlake Villages II Imp Area 1A2 (Series 2022) 9,775,000 9,775,000 Cannery Park II 9,915,000 9,915,000
Subtotal CFD Special Tax Bond 48,086,000
Revenue Bonds:
2016 Combined Refunding 33,350,000 23,005,000
CFD 99-02 2018 Arch Road East 24,210,000 22,585,000 AD 2014-01 Mosher Estates 13,020,000 8,535,000 Subtotal Revenue Bond 54,125,000
Total Noncity Obligation 102,211,000$

ATTACHMENT A
763
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

89 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, 2023. The bargaining unit contracts state that all sick time accrual has no cash value upon separation from the City.

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

Note 10 – Unamortized Loss on Refunding

Summary of changes in unamortized loss on refunding for the year ended June 30, 2023:

Governmental Business-Type
Activities Activities Total
Beginning July 1, 2022 11,955,201$ 1,439,906 $ 13,395,107 $ Additions 6,523,040 979,274 7,502,314 Payments (6,430,626) (862,358) (7,292,981) Balance June 30, 2023 12,047,615$ 1,556,822$ 13,604,437$ Current Portion 6,738,503$ 979,540$ 7,718,043$ Noncurrent Portion 5,309,112$ 577,282$ 5,886,394$ Balance
July 1, 2022 Ad ditions Deletions Balance
June 30, 2023
Municipal Utility E nterprise Debt Obligations
2018 Water Refunding 5,884,651 $ - $ (386,576)$ 5,498,075 $ 2019 Water Refunding 6,110,331 - (334,813) 5,775,518 2014 Wastewater Refunding Revenue Bonds 1,223,060 - (170,583) 1,052,477 Subtotal - Municipal Utility E nterprise Debt 13,218,042 - (891,972) 12,326,070 Parking Authority
2020 Parking Revenue Bonds 427,240 - (17,321) 409,919 Total Deferred Amount on Refunding 13,645,282$ -$ (909,292)$ 12,735,989$

ATTACHMENT A
764
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

90 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, 2023, are as follows:

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

Nonspendable:

Inventories 788,707 $ - $ - $ - $ - $ 788,707$ Prepaid items 76,409 - - - 1,708,371 1,784,780 Advance deposits 1,532,011 - - - 63,041 1,595,052 Total Nonspendable 2,397,127 - - - 1,771,412 4,168,539 Restricted for:

Section 108 Loan 1,277,452 - - - - 1,277,452 Community development - - - - 58,667,863 58,667,863 Debt service reserve - - - - 423,824 423,824 General government - - - 7,889,759 7,889,759 Housing - 86,834,132 - - 78,855,778 165,689,910 Libraries and arts 2,787,959 - - - 4,785,734 7,573,693 Parks and recreation 1,138,827 - - - 40,765,588 41,904,415 Public safety 14,023 - - - 15,113,800 15,127,823 Solid waste/recycling - - - - 8,363,662 8,363,662 Streets, transit & traffic - - - 10,558,669 85,906,959 96,465,628 Tota
l Restricted 5,218,261 86,834,132 - 10,558,669 300,772,967 403,384,029 Committed for:

General government operations 150,810,799 - - - - 150,810,799 Total Committed 150,810,799 - - - - 150,810,799 Assigned for:

General government operations 5,447,316 - - - - 5,447,316 Total Assigned 5,447,316 - - - - 5,447,316 Unassigned (deficit): 48,490,147 (1,344,162) - - 47,145,985 Total Fund Balances 212,363,650$ 86,834,132 $ (1,344,162) $ 10,558,669 $ 302,544,379 $ 610,956,668 $

ATTACHMENT A
765
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 42,497,060 $ - $ 42,497,060$ Change in assumptions 33,807,868 - 33,807,868 Differences between expected and actual experience 5,738,610 - 5,738,610 Difference between projected and actual investment earnings 42,717,067 - 42,717,067 Total Safety Plan 124,760,605 - 124,760,605 Miscellaneous
Contributions made after measurement date 19,396,123 1,874,588 21,270,711 Change in assumptions 4,569,945 441,674 5,011,619 Difference between projected and actual investment earnings 29,777,086 2,877,882 32,654,968 Total Miscellaneous Plan 53,743,154 5,194,144 58,937,298 PARS
Change in assumptions - 50,256 50,256 Differences between expected and actual experience - 228,715 228,715 Difference between projected and actual investment earnings - 765,856 765,856 Total PARS Plan - 1,044,827 1,044,827 Total Pensions related Deferred Outflows of Resources 178,503,759$ 6,238,971$ 184,742,730$ Net Pension L iability:

CalPERS:

Safety 443,196,107$ -$ 443,196,107$ Miscellaneous 140,019,012 13,532,494 153,551,506 PARS - 3,109,369 3,109,369 Total Net Pension L iabilit
y 583,215,119$ 16,641,863$ 599,856,982$
Deferred Inflows of Resources:

CalPERS:

Safety
Differences between expected and actual experience 5,076,198$ -$ 5,076,198$ Total Safety Plan 5,076,198 - 5,076,198 Miscellaneous
Differences between expected and actual experience 4,948,193 478,230 5,426,423 Total Miscellaneous Plan 4,948,193 478,230 5,426,423
Total Pension Deferred Inflows of Resources 10,024,391$ 478,230$ 10,502,621$

ATTACHMENT A
766
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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.

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

Plan Description – All qualified permanent and probationary employees are eligible to participate in the City of Stockton’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent 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 sa lary for PEPRA (California Public 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, 2023, 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% and 13.5% Required Employer Contribution Rates 20.52% 20.52%
Safety Plan

ATTACHMENT A
767
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

93 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

General Information about Pension Plans (Continued)

Employees Covered – At June 30, 2022, 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, 2023, the Safety Plan employer contribution rate was

20.52% of wages. The Miscellaneous Plan was 9.86% of wages.

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, 2021, applying standard update procedures.

Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit Vesting Schedule 5 years service 5 years service Benefit Formula
Tier I: 2% @ 55 years of age
Tier II: 2% @ 60 years of age 2% @ 62 years of age
Benefit Payments monthly for life monthly for life
Required Employee Contribution Rates 7.00% 6.75%
Required Employer Contribution Rates 9.86% 9.86%
Miscellaneous Plan
Safety Plan Miscellaneous Plan
Inactive employees or beneficiaries currently receiving benefits 955 1,595 Inactive employees entitled to but not yet receiving benefits 522 1,531 Active employees 540 967
2,017 4,093

ATTACHMENT A
768
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

94 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

General Information about Pension Plans (Continued)

Net Pension Liability (Continued)

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:

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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administr ative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Safety Plan Miscellaneous Plan
Valuation Date 6/30/2021 6/30/2021
Measurement Date 6/30/2022 6/30/2022
Actuarial Cost M ethod
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase Varies (1) Varies (1)
M ortality see note (2) see note (2)
Depending on age, service and type of employment
Entry Ag e Actuarial Cost Method
based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre- retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale M P-2020 published by the S ociety of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Asset Class
Assumed Asset
Allocation
Real Re turn Ye ars
1-10
(1)(2)
Global Equity-cap weighted 30.00% 4.45%
Global Equity non-cap weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
M ortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(2)Figures are based on the 2021-22 Asset Liability Management study. (1) An Expected inflation of 2.30% used for this period.

ATTACHMENT A
769
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

95 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Net Pension Liability (Continued)

Discount rate – The discount rate used to measure the total pension liability was 6.90%. 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.

Change of Assumptions

Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

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
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2021 1,207,393,627$ $ 946,654,864 260,738,763$ Changes for the year:

Service cost 20,255,092 - 20,255,092 Interest on total pension liability 85,264,766 - 85,264,766 Changes of Assumption 44,713,632 - 44,713,632 Differences between expected and actual experience 7,388,791 - 7,388,791 Net plan to plan resource movement - - - Contributions-employer - 39,195,163 (39,195,163) Contributions-employee - 7,961,859 (7,961,859) Net investment income - (71,402,376) 71,402,376 Benefit payments, including refunds of employee (67,804,721) (67,804,721) - Administrative expense - (589,709) 589,709 Other Miscellaneous Income (Expense) - - - Net Changes 89,817,560 (92,639,784) 182,457,344 Balances at 06/30/2022 1,297,211,187$ 854,015,080$ 443,196,107$ Safety Plan
Increase (Decrease)

ATTACHMENT A
770
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 6.90 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 (5.90 percent) or 1- percentage-point higher (7.90 percent) than the current rate:

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

Total Pension Plan Fiduciary Net Pension
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2021 780,242,258$ $ 722,389,028 57,853,230$ Changes for the year:

Service cost 12,181,998 - 12,181,998 Interest on total pension liability 52,840,932 - 52,840,932 Changes of Assumption 8,143,881 - 8,143,881 Differences between expected and actual experience (6,779,583) - (6,779,583) Net plan to plan resource movement - - - Contributions-employer - 20,485,648 (20,485,648) Contributions-employee - 4,857,018 (4,857,018) Net investment income - (54,203,709) 54,203,709 Benefit payments, including refunds of employee (43,773,909) (43,773,909) - Administrative expense - (450,005) 450,005 Other Miscellaneous Income (Expense) - - - Net Changes 22,613,319 (73,084,957) 95,698,276 Balances at 06/30/2022 802,855,577$ 649,304,071$ 153,551,506$ Miscellaneous Plan
Increase (Decrease)
Safety Plan
1%
Decrease
Rate (5.90%)
Current
Discount
Rate (6.90%)
1%
Increase
Rate (7.90%)
Net pension liability 622,205,092$ 443,196,107$ 297,358,786$ Miscellaneous Plan
1%
Decrease
Rate (5.90%)
Current
Discount
Rate (6.90%)
1%
Increase
Rate (7.90%)
Net pension liability 255,399,878$ 153,551,506$ 69,160,881$

ATTACHMENT A
771
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $42,497,060 and $21,270,711 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, 2023, will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows, and deferred inflows of resources rela ted to pensions will be recognized in future pension expense.

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 42,497,060 $ - Changes of assumptions 33,807,868 - Differences between expected and actual experience 5,738,610 (5,076,198) Net differences between projected and actual
earnings on pension plan investments 42,717,067 - Total $ 124,760,605 $ (5,076,198)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 21,270,711 $ - Changes of assumptions 5,011,619 - Differences between expected and actual experience - (5,426,423) Net differences between projected and actual
earnings on pension plan investments 32,654,968 - Total $ 58,937,298 $ (5,426,423)
Safety Plan
Miscellaneous Plan
Deferred
Outflows/(inflows)
of Resources
2023 $ 16,561,497
2024 16,814,043
2025 15,351,287
2026 28,460,520
2027 -
Thereafter -
Total $ 77,187,347
Safety Plan
Measurement
periods
ended June 30:

ATTACHMENT A
772
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 (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, 2023, 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
2023 4,499,453$
2024 4,931,172
2025 2,134,948
2026 20,674,591
2027 -
Thereafter -
Total 32,240,164$
Misccellaneous Plan
Measurement
periods
end ed June 30:

PARS E nhancement Plan
Inactive employees or beneficiaries currently receiving benefits 55 Inactive employees entitled to but not yet receiving benefits 0 Active employees 27
82 ATTACHMENT A
773
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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, 2023, using an annual actuarial valuation as of June 30, 2022, using standard update procedures.

Actuarial assumptions – The total pension liability on June 30, 2023, 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.

Change of Assumptions

The non-economic actuarial assumptions that determined the total pension liability as of June 30, 2023 were based on the results of an actuarial experience study of the California Public Employees' Retirement System for the period 1997-2019 and released in November 2021.

PARS Enhancement Plan
Valuation Date 6/30/2022
Measurement Date 6/30/2023
Actuarial Cost M ethod Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase 3.34% - 9.01%
(1)
Investment Rate of Return 6.50%
M ortality see note (2)
(1) Depending on years of service.
(2)
Pre-retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

Post-Retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021

ATTACHMENT A
774
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

100
Note 12 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)

Change of Assumptions (Continued)

The target allocation and best estimates of real arithm etic 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-Te rm
Expe cte d
Arithmetic Real
Rate of Return
Long-Te rm
Expe cte d
Geometric Real
Rate of Return
US Cash 3.88% 0.51% 0.49%
US Core Fixed Income 47.94% 2.07% 1.93%
US Broad Equity Market 36.80% 5.56% 3.90%
Foreign Developed Equity 6.06% 6.89% 5.07%
Emerging Markets Equity 3.72% 9.58% 6.18%
USREITs 1.60% 6.96% 4.74%
Total 100.00%
Assumed Inflation - Mean 2.32% 2.32%
Assumed Inflation - Standard Deviation 1.42% 1.42%
Portfolio Real M ean Return 3.94% 3.49%
Portfolio Nominal Mean Return 6.26% 5.90%
Portfolio Standard Deviation 8.88%
City's Long-Term Expected Rate of Return 6.50%
PARS Enhancement Plan
Total Pension Plan Fiduciary Net Pension
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2022 12,935,662$ $ 9,620,909 3,314,753$ Changes for the year:

Service cost 114,224 - 114,224 Interest on total pension liability 826,109 - 826,109 Effect of economic/demographic gains or losses 300,141 - 300,141 Effect of assumptions changes or inputs 74,188 - 74,188 Benefit payments (691,937) (691,937) - Employer Contributions - 854,389 (854,389) Net investment income - 682,430 (682,430) Administrative expense - (16,773) 16,773 Net Changes 622,725 828,109 (205,384) Balances at 06/30/2023 13,558,387$ 10,449,018$ 3,109,369$ Increase (Decrease)
PARS E nhancement Plan

ATTACHMENT A
775
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

101
Note 12 – Retirement Plans (Continued)

B. PARS Enhancement 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 6.50 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50 percent) or 1- percentage-point higher (7.50 percent) than the current rate:

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

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

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

For the year ended June 30, 2023, $1,044,827 was reported as deferred outflows of resources related to earnings and changes of assumptions on pension plan investments and will be recognized in future pension expense as follows:

1%
Decrease
Rate (5.50%)
Current
Discount
Rate (6.50%)
1%
Increase
Rate (7.50%)
Net pension liability 4,714,537$ 3,109,369$ 1,755,989$ PARS Enhancement Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions $ 50,256 $ - Differences between expected and actual experience 228,715 - Net differences between projected and actual
earnings on pension plan investments 765,856 - Total $ 1,044,827 $ -
PARS E nhancement Plan
Deferred
Outflows/(inflows)
of Resources
2024 350,651 $
2025 271,266
2026 433,393
2027 (10,483)
2028 -
Thereafter -
Total 1,044,827$
Measurement
periods
end ed June 30:

PARS Enhancement Plan

ATTACHMENT A
776
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 2022-23, the Section 115 Plan, has $81.5 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 safety of employees; and natural disasters. The City established three internal service insurance funds (General Liability, Workers’ Compensation, and Employee Health Benefits funds) to account for and finance its self-insured retained risks. Under the City’s risk management program, the City retains risk for each general liability claim, for each workers’ compensation cl aim, and for each medical plan member under the health benefits programs. 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 Self-Insured Retention (SIR) excess claims for general liability and workers’ compensation is discussed later in this note under risk pools. The workers’ compensation and general liability programs are administered by third-party claims administrators (TPA).

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 on new and open claims, as well as changes to reserve amounts managed by the TPAs and modified for current trends and market data. For general liability and workers’ compensa tion 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, 2023 are dependent on future developments, based on information provided by the City Attorney, outs ide counsel, TPAs 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
777
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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 the California Government Code for the purpose of pooling self-insured losses, as described below.

General Liability Insurance - In 1986, the City joined with other munici palities 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 19 member entities. The City’s self-insured retention (SIR) will increase from $1.25 million to $1.50 million effective July 1, 2024. 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 general liability, ex cess 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, 2023, 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 $300 million 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.

Automobile Insurance – The City participates in CJPRMA’s Automobile Physical Damage Reinsurance Program. The Program provides $10 million per occurrence in coverage to participation members, subject to a deductible of $50,000. Premiums, which are negotiated each year, are based on fleet value and are not subject to retroactive adjustments.

General Workers’ Health
Liability Com pensation Benefits Total
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 Claims incurred 11,764,622 12,851,273 1,250,231 25,866,126 Claims paid (3,764,230) (11,788,273) (1,646,231) (17,198,734) Balance, June 30, 2023 23,504,625$ 50,563,000 $ - $ 74,067,625$

ATTACHMENT A
778
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

104
Note 13 – Claims Payable (Continued)

Workers’ Compensation Insurance – The City has been self-funded for its Worker’s Compensation Program since 1979. In July 2003, the City joined California Public Entity Insurance Authority (CPEIA), a public entity risk pool which operated an Excess Workers’ Compensation Program. CPEIA has since merged into an existing authority known as California State Association of Counties Exce ss 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). PRISM has since expa nded 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.

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, 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 obligati ng event requiring remediation action, estimable remediation costs components, and recoveries by responsible parties. Details of the liabilities as of June 30, 2023, are also discussed.

To provide clarification of the following discussion, th e 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:

ATTACHMENT A
779
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

105
Note 14 – Pollution Remediation Obligations (Continued)

Area 2A-Unocal – Soil and groundwater contamination has been id entified 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 post- remediation monitoring costs cannot be reasonably estimated. The net pollution remediation liability of this site as of June 30, 2023, 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, 2023.

Note 15 – Other Required Disclosures

Deficit Fund Balances

At June 30, 2023, the following funds had net positions or fund balance deficits:

 The Special Grants Fund has an accumulated deficit fund balance of $1,344,162 as of June 30, 2023. The deficit will be recovered as further grant revenue is recognized.

 The Parking Authority Fund has an accumulated deficit fund balance of $5,132,205 as of June 30,2023.

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 $56,816,846 as of June 30, 2023. 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.

Fund Fund Type Deficit
Special Grants Special Revenue Fund (1,344,162)$
Parking Authority Enterprise Fund (5,132,205)
Successor Agency Private Purpose Trust Fund (56,816,846)

ATTACHMENT A
780
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

106
Note 15 – Other Required Disclosures (Continued)

Expenditures in Excess of Appropriations

The following funds had expenditures in excess of appropriations:

All of the identified expenditures in excess of approved appropriations are the result of entries implementing GASB 87 and GASB 96. These entries are not of a budgetary nature.

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

Ex c e s s o f
E xpenditures ov er
Fund Appropriations Expenditures Appropriations
Major Governmental Fund:

General Fund
Debt service:

Principal 495,600$ 798,168$ 302,568$ Interest 9,912 17,667 7,755 Federal Housing Grants Special Revenue Fund
Debt service:

Principal 2,445,000 2,454,070 9,070
Debt service:

Principal - 47,366 47,366 Interest - 1,755 1,755 Nonmajor Governmental Fund:

State Housing Grants Special Revenue Fund
Debt service:

Principal - 7,898 7,898 Interest - 30 30 M easure W Public Safety Tax Special Revenue Fund
Debt service:

Principal - 10,191 10,191 Interest - 270 270 Development Services Special Revenue Fund
Debt service:

Principal - 2,524 2,524 Interest - 28 28

ATTACHMENT A
781
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

107
Note 16 – Commitments and Contingencies (Continued)

Capital Commitments

The City is undertaking some capital improvement projects, the most significant of which include the following outstanding capital commitments at June 30, 2023:

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, 2023, 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 Global) to include the Downtown Marina operations, extend the terms of the existing agreement and to include vendor performance benchmarks. ASM Global 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.

Amount
Waterfront Towers New City Hall 31,056,863$
Regional Wastewater Control Facility 22,958,359
Developer Reimbursements 7,472,946
South Stockton Well SSS8 Rehab 5,425,355
Citywide Tree Maintenance 3,796,221
Bus Rapid Transit, Phase V 1,465,147
72,174,892$
Amount
General Fund 10,213,855$
Housing Grant Fund 1,484,269
Special Grant Fund 23,065,457
Capital Improvements 55,966,156
Other Governmental Funds 14,877,504
Total Governmental Funds 105,607,241$

ATTACHMENT A
782
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

108
Note 16 – Commitments and Contingencies (Continued)

Facilities Management Agreement (Continued)

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.

Note 17 – Net Investment in Capital Assets and Restricted Net Position

Net Investment in Capital Assets

The following is the calculation of net investment in capital assets at June 30, 2023:

Governmental
Activities
Business -Type
Activities Totals
Capital assets, net 882,741,697 $ 844,651,580 $ 1,727,393,277 $ Debt related to capital assets (64,508,131) (382,906,309) (447,414,440) Unamortized loss on refunding of debt - 12,735,989 12,735,989 Retention payable (1,147,710) (913,284) (2,060,994) Net investment in capital assets 817,085,856 $ 473,567,976 $ 1,290,653,832 $

ATTACHMENT A
783
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

109
Note 17 – Net Investment in Capital Assets and Restricted Net Position (Continued)

Restricted Net Position

At June 30, 2023, restricted net position consisted of the following:

Note 18 – Subsequent Events

Refunding of Enterprise Fund Debt

Water Revenue Refunding Bonds, Series 2019A

On September 19, 2023, the City completed a cash defeasance of the Water Revenue Refunding Bonds, Series 2019A with a par amount of $11,135,000. The defeasance had a return on investment of 5.47% and will save the Water Utility Fund $3,663,125 through October 1, 2040. The total outstanding debt of $53,140,000 reported in Note 8 was reduced to $42,005,000 following this transaction.

Grant Funding Awarded

Transformative Climate Communities Program Implementation Grant (Round 4)

The City was awarded a Transformative Climate Communities Program Implementation Grant of $24,165,510 from the State of California Office of Planning and Research with an effective term of October 1, 2023 to September 30, 2028. This grant was approved by Council resolution 2023-09-12-1502.

Governmental
Activities
Business -Type
Activities Totals
Restricted:

Capital projects 14,351,671 $ 11,084,951 $ 25,436,622 $ Debt service 2,069,849 14,281,592 16,351,441 Measure A&B 14,023 - 14,023 Section 108 loan 1,277,452 - 1,277,452 Community Development 58,773,449 - 58,773,449 General government 12,175,081 - 12,175,081 Housing 165,689,911 - 165,689,911 Library and arts 7,573,693 - 7,573,693 Parks and recreation 41,906,531 - 41,906,531 Public safety 13,400,795 - 13,400,795 Solid waste/recycling 8,363,662 - 8,363,662 Streets, transit and traffic 88,554,777 - 88,554,777 Pension 81,544,197 - 81,544,197 Total restricte d 495,695,091$ 25,366,543 $ 521,061,634 $

ATTACHMENT A
784
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

110
Note 18 – Subsequent Events (Continued)

Significant Contracts Awarded

Emergency Homeless Shelter Operations

On July 31, 2023, the City declared a local emergency to protect unhoused individuals that were threatened to be displaced by the closure of the Stockton Shelter for the Homeless. On September 12, 2023, the City entered into a contract with St. Mary’s Dining Room to assume operations of a campus-wide homeless shelter that was formally Stockton Shelter for the Homeless. The City provided $5,380,000 to address the funding gap in operating expenses over a three year period.

Note 19 – Prior Period Adjustments

ATTACHMENT A
785

REQUIRED SUPPLEMENTARY INFORMATION

ATTACHMENT A
786
This page intentionally left blank.

ATTACHMENT A
787
1 Budgetary Information
Budget Process
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 Permanent funds.

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.

City of Stockton
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2023
In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. The General Fund, Federal Housing Grant Special Revenue Fund, Special Grants Special Revenue Fund, and certain nonmajor special revenue funds (Solid Waste and Recycling, Gas Tax, Measure K Streets Sales Tax, Measure W Public Safety Sales Tax, Special Assessments, Development Services, and Other Special Revenue) and certain capital projects funds (Public Facilities Impact Fees and Capital Improvement) have legally adopted annual budgets.

Prior to July 1, the original adopted budget is legally enacted through the passage of a resolution by the City Council. In the event this does not occur, the City Manager’s draft budget is in force until a budget is adopted by the City Council.
111

ATTACHMENT A
788
This page intentionally left blank.
112

ATTACHMENT A
789
Budget Basis of Accounting
City of Stockton
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule (Continued)
Certain funds of the City contain capital projects, grant projects, loan programs or other programs that are budgeted on a multi-year or project length basis. The amounts of the projects and programs budgeted on a multi-year basis are significant compared to the items budgeted on an annual basis; therefore, a comparison of budget to actual for the fund would not be meaningful. As a result, such funds are excluded from budgetary reporting.

For the Year Ended June 30, 2023
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.

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

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

The write-off uncollectable accounts receivables is not recognized as an expenditure. Under GAAP, these write-offs are recognized as expenditures when the accounts receivables are determined to be uncollectable. 113

ATTACHMENT A
790
Variance with
Original Final Actual Final Budget
REVENUES:

Taxes:

Property 41,490,000 $ 41,490,000 $ 42,577,881 $ 1,087,881 $ Utility user 38,731,176 38,731,176 42,445,100 3,713,924 Sales - levied by City 42,080,000 42,080,000 49,703,488 7,623,488 Franchise fees 17,124,630 17,124,630 18,937,580 1,812,950 Business license 14,350,000 14,350,000 21,992,189 7,642,189 Hotel/motel room 3,211,540 3,211,540 3,432,978 221,438 Document transfer 1,200,000 1,200,000 1,028,481 (171,519) Other 3,168,768 3,168,768 4,628,261 1,459,493 Licenses and permits 556,405 556,405 467,794 (88,611) Intergovernmental:

Federal grants and subsidies 116,429 142,185 107,090 (35,095) Sales and use tax - levied by state 69,933,000 69,933,000 76,954,150 7,021,150 Other governmental 44,323,593 44,340,269 44,427,118 86,849 Charges for services 9,934,163 10,201,074 11,357,788 1,156,714 Fines and forfeitures 1,239,285 1,239,285 181,618 (1,057,667) Use of money and property 7,584,486 7,584,486 9,653,318 2,068,832 Investment income:

Interest income 2,435,529 2,435,529 451,357 (1,984,172) Refunds and reimbursements 833,710 833,710 958,953 125,243 Miscellaneous 4,983,612 7,283,612 6,173,301 (1,110,311) 303,296,326 305,905,669 335,478,445 29,572,776 EXPENDITURES:

General government:

City council 1,022,320 1,124,328
977,239 147,089
City manager 2,827,103 2,873,737 2,502,467 371,270 City attorney 1,529,684 1,541,938 1,060,132 481,806 City clerk 1,191,058 1,214,562 1,075,566 138,996 City auditor 456,400 821,828 399,892 421,936 Administrative services 8,923,640 9,044,239 8,075,577 968,662 Human resources 2,636,085 4,223,219 2,383,769 1,839,450 Housing 1,607,610 4,136,309 1,414,837 2,721,472 Non-departmental 2,415,168 2,616,748 (199,326) 2,816,074 Total general government 22,609,068 27,596,908 17,690,153 9,906,755 Budget
City of Stockton
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2023
Budgetary Comparison Schedule - General Fund
114

ATTACHMENT A
791
Variance with
Original Final Actual Final Budget
EXPENDITURES (CONTINUED):

Public safety:

Police 151,177,320 158,796,117 142,568,184 16,227,933
Fire 57,200,604 61,586,797 57,580,164 4,006,633
Total public safety 208,377,924 220,382,914 200,148,348 20,234,566 Public works 19,301,423 19,854,654 18,234,334 1,620,320 Library 13,861,908 14,487,017 11,996,043 2,490,974 Parks and recreation 13,600,776 15,972,048 12,769,610 3,202,438 Capital outlay 235,050 3,158,378 2,020,978 1,137,400 Debt service:

Principal retirement 495,600 495,600 798,168 (302,568) Interest and fiscal charges 9,912 9,912 17,667 (7,755) Total expenditures 278,491,661 301,957,431 263,675,301 38,282,130

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 24,804,665 3,948,238 71,803,144 67,854,906 OTHER FINANCING SOURCES (USES):

Transfers in - 500,000 - (500,000) Transfers out (25,610,050) (73,194,377) (39,305,080) 33,889,297 Issuance of debt - - 1,208,028 1,208,028 Proceed from sale of capital assets 60,000 60,000 44,165 (15,835) Total other financing sources (uses) (25,550,050) (72,634,377) (38,052,887) 34,581,490

NET CHANGE IN FUND BALANCE
(GAAP BASIS) (745,385)$ (68,686,139)$ 33,750,257 102,436,396 $ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (10,213,855) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 23,536,402 FUND BALANCE, BEGINNING OF YEAR 178,613,393
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 202,149,795$ * 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, 2023
Budgetary Comparison Schedule - General Fund (Continued) 115

ATTACHMENT A
792
Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 5,149,396 $ 15,014,600 $ 2,874,895 $ (12,139,705) $ Other governmental - - 1,747,243 1,747,243 Charges for services - - 1,575 1,575 Use of money and property 364,000 364,000 1,158,232 794,232 Investment income:

Interest income (loss) - - 47,397 47,397 Total revenues 5,513,396 15,378,600 5,829,342 (9,549,258) EXPENDITURES:

General government 6,738,759 21,444,146 2,474,331 18,969,815 Capital outlay - 325,000 72,627 252,373 Debt service:

Principal retirement 2,445,000 2,445,000 2,454,070 (9,070) Interest and fiscal charges 106,387 106,387 98,218 8,169 Total expenditures 9,290,146 24,320,533 5,099,246 19,221,287

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (GAAP BASIS) (3,776,750) (8,941,933) 730,096 9,672,029 OTHER FINANCING USES:

Transfers in 1,747,243 1,747,243 - (1,747,243) Transfers out (349,449) (349,449) (349,449) - Proceeds from issuance of debt - - 72,627 72,627 Total other financing uses 1,397,794 1,397,794 (276,822) (1,674,616) NET CHANGE IN FUND BALANCE (GAAP BASIS) (2,378,956)$ (7,544,139) $ 453,274 9,672,029 $ BASIS ADJUSTMENT:

Encumbrances (1,484,269)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (1,030,995) FUND BALANCE, BEGINNING OF YEAR 86,380,858
FUND BALANCE (BUDGATARY BASIS), END OF YEAR 85,349,863$

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

Budget
For the Year Ended June 30, 2023
City of Stockton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Federal Housing Grants Special Revenue Fund 116

ATTACHMENT A
793
Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 979,652 $ 12,605,079 $ 22,672,588 $ 10,067,509 $ Other governmental - 17,935,836 8,423,416 (9,512,420) Miscellaneous - (19,653) 5,000 24,653 Total revenues 979,652 30,521,262 31,101,004 579,742 EXPENDITURES:

Current:

General government 292,379 66,467,028 23,424,127 43,042,901 Public safety - 8,469,159 2,782,437 5,686,722 Public works - 1,160,169 122,741 1,037,428 Library - 86,074 733,250 (647,176) Parks and recreation - 477,670 1,585 476,085 Capital outlay 687,273 24,028,062 3,610,274 20,417,788 Debt service:

Principal retirement - - 47,366 (47,366) Interest and fiscal charges - - 1,755 (1,755) Total expenditures 979,652 100,688,162 30,723,535 69,964,627

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) - (70,166,900) 377,469 70,544,369 OTHER FINANCING USES:

Transfers out - (2,551,500) - 2,551,500 Total other financing uses - (2,551,500) - 2,551,500 NET CHANGE IN FUND BALANCE (GAAP BASIS) -$ (72,718,400)$ 377,469 73,095,869 $ BASIS ADJUSTMENT:

Encumbrances (23,065,457)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (22,687,988) FUND BALANCE, BEGINNING OF YEAR (DEFICIT) (1,721,631)
FUND BALANCE (BUDGATARY BASIS), END OF YEAR (DEFICIT) (24,409,619)$

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, 2023
Budgetary Comparison Schedule - Special Grants Special Revenue Fund 117

ATTACHMENT A
794
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 22,830,016 1,350,400 14,308,278 46,362,971 8,413,795 Total pension liability - beginning 627,033,727 649,863,743 651,214,143 665,522,421 711,885,392 Total pension liability - ending (a) 649,863,743$ 651,214,143 $ 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 59,913,839 (8,167,109) (14,122,148) 38,590,108 27,413,727 Plan fiduciary net position - beginning3 465,703,750 525,617,589 517,450,480 503,328,332 541,918,440 Plan fiduciary net position - ending (b) 525,617,589$ 517,450,480 $ 503,328,332 $ 541,918,440 $ 569,332,167 $ Plan net pension liability - ending (a) - (b) 124,246,154$ 133,763,663 $ 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 payroll4
52,603,907$ 53,997,677 $ 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:

City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023
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
Fiscal Year
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 o f California’s agent OPEB p lan. 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.
4IInclud es o ne year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

Benefit Changes: Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liabilit
y impact is deemed to be material by the plan actuary
118

ATTACHMENT A
795
Measurement period 2018-19 2019-20 2020-21 2021-22
Total pension liability
Service cost 11,446,572$ 11,098,178$ 11,194,084$ 12,181,998$ Interest 50,718,177 51,801,795 53,055,641 52,840,932 Changes of benefit terms - - - - Changes of assumptions - - - 8,143,881 Differences between expected
and actual experience 2,061,288 (8,567,800) (5,435,616) (6,779,583) Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) (43,773,909) Net change in total pension liability 26,748,786 15,274,908 17,919,377 22,613,319 Total pension liability - beginning 720,299,187 747,047,973 762,322,881 780,242,258 Total pension liability - ending (a) 747,047,973$ 762,322,881 $ 780,242,258 $ 802,855,577 $ Pension fiduciary net position
Contributions - employer 17,112,542$ 19,204,043$ 20,363,651$ 20,485,648$ Contributions - employee 4,540,503 4,721,760 4,939,316 4,857,018 Net investment income 37,027,715 29,185,528 135,230,666 (54,203,709) Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) (43,773,909) Net plan to plan resource movement - - - - Administrative expense (406,288) (831,939) (602,713) (450,005) Other miscellaneous income/ (expense)2 1,325 - - - Net change in plan fiduciary net position 20,798,546 13,222,127 119,036,188 (73,084,957) Plan fiduciary net position - beginning3 569,332,167 590,130,713 603,352,840 722,389,028 Plan fiduciary net position - ending (b) 590,130,713$ 603,352,840 $ 722,389,028 $ 649,304,071 $ Plan net pension liability - ending (a) - (b) 156,917,260$ 158,970,041 $ 57,853,230 $ 153,551,506 $ Plan fiduciary net position as a percentage
of the total pension liability 79.00% 79.15% 92.59% 80.87% Covered payroll4
67,851,642$ 67,099,018 $ 69,099,285 $ 70,213,245 $ Plan net pension liability as a percentage
of covered payroll 231.27% 236.92% 83.72% 218.69%
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued) Fiscal Year
119

ATTACHMENT A
796
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 31,876,703 9,353,167 28,128,683 83,204,382 60,324,078 Total pension liability - beginning 893,336,527 925,213,230 934,566,397 962,695,080 1,045,899,462 Total pension liability - ending (a) 925,213,230$ 934,566,397 $ 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 77,669,199 (12,152,071) (22,404,018) 49,562,786 33,846,391 Plan fiduciary net position - beginning3 617,467,219 695,136,418 682,984,347 660,580,329 710,143,115 Plan fiduciary net position - ending (b) 695,136,418$ 682,984,347 $ 660,580,329 $ 710,143,115 $ 743,989,506 $ Plan net pension liability - ending (a) - (b) 230,076,812$ 251,582,050 $ 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 payroll4 45,422,701$ 46,710,538 $ 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:

City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

For the Year Ended June 30, 2023
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 o f California’s agent OPEB p lan. 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.
4IInclud es o ne year ’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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.

Benefit Changes: Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liabilit
y impact is deemed to be material by the plan actuary
Last Ten Fiscal Years
Fiscal Year
120

ATTACHMENT A
797
Measurement period 2018-19 2019-20 2020-21 2021-22
Total pension liability
Service cost 18,340,749$ 18,438,776$ 17,442,651$ 20,255,092$ Interest 77,850,318 79,970,381 82,106,386 85,264,766 Changes of benefit terms - - - - Changes of assumptions - - - 44,713,632 Differences between expected
and actual experience 2,178,151 (7,219,787) (5,649,159) 7,388,791 Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) (67,804,721) Net change in total pension liability 40,856,348 29,964,133 30,349,606 89,817,560 Total pension liability - beginning 1,106,223,540 1,147,079,888 1,177,044,021 1,207,393,627 Total pension liability - ending (a) 1,147,079,888$ 1,177,044,021 $ 1,207,393,627 $ 1,297,211,187 $ Pension fiduciary net position
Contributions - employer 29,781,351$ 33,596,802$ 37,208,895$ 39,195,163$ Contributions - employee 7,139,569 7,347,966 7,775,415 7,961,859 Net investment income 48,529,461 38,307,390 177,671,066 (71,402,376) Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) (67,804,721) Net plan to plan resource movement - - - - Administrative expense (530,927) (1,087,482) (787,501) (589,709) Other miscellaneous income/ (expense)2 1,732 - - - Net change in plan fiduciary net position 27,408,316 16,939,439 158,317,603 (92,639,784) Plan fiduciary net position - beginning3 743,989,506 771,397,822 788,337,261 946,654,864 Plan fiduciary net position - ending (b) 771,397,822$ 788,337,261 $ 946,654,864 $ 854,015,080 $ Plan net pension liability - ending (a) - (b) 375,682,066$ 388,706,760 $ 260,738,763 $ 443,196,107 $ Plan fiduciary net position as a percentage
of the total pension liability 67.25% 66.98% 78.40% 65.83% Covered payroll4 59,708,789$ 60,894,239 $ 58,297,630 $ 61,286,210 $ Plan net pension liability as a percentage
of covered payroll 629.19% 638.33% 447.25% 723.16%
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan (Continued) Fiscal Year
121

ATTACHMENT A
798
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 437,888 433,116 317,170 438,983 838,552 Total pension liability - beginning 9,321,510 9,759,398 10,192,514 10,509,684 10,948,667 Total pension liability - ending (a) 9,759,398$ 10,192,514 $ 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 516,265 273,023 704,651 907,570 753,152 Plan fiduciary net position - beginning 5,058,426 5,574,691 5,847,714 6,552,365 7,459,935 Plan fiduciar
y net position - ending (b) 5,574,691$ 5,847,714 $ 6,552,365 $ 7,459,935 $ 8,213,087 $ Plan net pension liability - ending (a) - (b) 4,184,707$ 4,344,800 $ 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 payroll4
3,610,315$ 3,454,139 $ 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% City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 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, 2023
PARS Enhancement Plan
Last Ten Fiscal Years
Fiscal Year
122

ATTACHMENT A
799
Measurement period 2019-20 2020-21 2021-22 2022-23
Total pension liability
Service cost 155,670$ 132,117$ 135,750$ 114,224$ Interest 759,727 781,943 809,517 826,109 Changes of benefit terms - - - - Changes of assumptions - - - 74,188 Economic/demographic gains or losses - 120,626 - 300,141 Benefit payments, including
refunds of employee contributions (517,711) (583,450) (645,746) (691,937) Net change in total pension liability 397,686 451,236 299,521 622,725 Total pension liability - beginning 11,787,219 12,184,905 12,636,141 12,935,662 Total pension liability - ending (a) 12,184,905$ 12,636,141 $ 12,935,662 $ 13,558,387 $ Pension fiduciary net position
Contributions - employer 803,170 $ 602,378 $ 1,055,182 $ 854,389 $ Contributions - employee - - - - Net investment income 272,545 1,923,213 (1,452,185) 682,430 Benefit payments, including
refunds of employee contributions (517,711) (583,450) (645,746) (691,937) Net plan to plan resource movement - - - - Administrative expense (15,254) (16,676) (17,644) (16,773) Net change in plan fiduciary net position 542,750 1,925,465 (1,060,393) 828,109 Plan fiduciar
y net position - beginning3 8,213,087 8,755,837 10,681,302 9,620,909 Plan fiduciary net position - ending (b) 8,755,837$ 10,681,302 $ 9,620,909 $ 10,449,018 $ Plan net pension liability - ending (a) - (b) 3,429,068$ 1,954,839 $ 3,314,753 $ 3,109,369 $ Plan fiduciary net position as a percentage
of the total pension liability 71.86% 84.53% 74.38% 77.07% Covered payroll4
2,784,812$ 2,966,110 $ 2,403,153 $ 2,560,684 $ Plan net pension liability as a percentage
of covered payroll 123.13% 65.91% 137.93% 121.43%
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
PARS Enhancement Plan (Continued)
Fiscal Year
123

ATTACHMENT A
800
2013-14 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution1 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
52,603,907$ 53,997,677 $ 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, 2019 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2019 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
1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
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 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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
Fiscal Year
For the Year Ended June 30, 2023
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
124

ATTACHMENT A
801
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution1 17,112,542$ 19,204,043 $ 20,363,651 $ 20,485,648 $ 21,270,711 $ Contributions in relation to
the actuarially determined contribution2 (17,112,542) (19,204,043) (20,363,651) (20,485,648) (21,270,711) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll3
67,851,642$ 67,099,018 $ 69,099,285 $ 70,213,245 $ 72,179,216 $ Contributions as a percentage of
covered payroll3 25.22% 28.62% 29.47% 29.18% 29.47%
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, 2019 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2019 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 (Continued)
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
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 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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.

Fiscal Year
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued) The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 125

ATTACHMENT A
802
2013-14 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
45,422,701$ 46,710,538 $ 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, 2019 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2019 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 For the Year Ended June 30, 2023
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 Last Ten Fiscal Years1
1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
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 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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 2021-22 were derived from the June 30, 2019 funding valuation report.

Fiscal Year
126

ATTACHMENT A
803
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution 29,781,351 $ 33,596,802 $ 37,208,895 $ 39,195,163 $ 42,497,060 $ Contributions in relation to
the actuarially determined contribution2 (29,781,351) (33,596,802) (37,208,895) (39,195,163) (42,497,060) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll3
59,708,789$ 60,894,239 $ 58,297,630 $ 61,286,210 $ 63,002,224 $ Contributions as a percentage of
covered payroll3 49.88% 55.17% 63.83% 63.95% 67.45%
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, 2019 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2019 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 City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 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 2021-22 were derived from the June 30, 2019 funding valuation report.

Fiscal Year
127

ATTACHMENT A
804
2013-14 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
3,496,673$ 3,610,315 $ 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, 5.67 years Asset Valuation Method Fair Value of Assets.

Inflation 2.30%
Salary Increases
Payroll Growth 2.80%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Withdrawal/Disability
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
Last Ten Fiscal Years
PARS Enhancement Plan
Fiscayl Year
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 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, Consistent with the rates used to value Miscellaneous Public Agency CalPERS Pension Plans for an employee 128

ATTACHMENT A
805
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution 753,296 $ 803,170 $ 803,170 $ 854,389 $ 854,389 $ Contributions in relation to
the actuarially determined contribution2 (753,296) (803,170) (602,378) (1,055,182) (854,389) Contribution deficiency (excess) - $ -$ 200,792$ (200,793)$ -$ Covered payroll3
3,446,204$ 2,784,812 $ 2,966,110 $ 2,403,153 $ 2,560,684 $ Contributions as a percentage
of covered payroll3 21.86% 28.84% 20.31% 43.91% 33.37%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level dollar, closed, 5.67 years Asset Valuation Method Fair Value of Assets.

Inflation 2.30%
Salary Increases
Payroll Growth 2.80%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Withdrawal/Disability
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
PARS Enhancement Plan (Continued)
Fiscal Year
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 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, Consistent with the rates used to value Miscellaneous Public Agency CalPERS Pension Plans for an employee 129

ATTACHMENT A
806
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130

ATTACHMENT A
807

SUPPLEMENTARY INFORMATION

ATTACHMENT A
808
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ATTACHMENT A
809
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies -$ 49,816,029$ 9,148,605$ (40,667,424)$ Other governmental - 36,732,810 1,059,358 (35,673,452) Interest income (loss) - - (1,350) (1,350)
Miscellaneous - - 507,799 507,799
Total revenues - 86,548,839 10,714,412 (75,834,427) EXPENDITURES:

Current:

Public works 4,810,668 13,698,211 71,671 13,626,540 Capital outlay - 255,150,903 52,140,760 203,010,143 Total expenditures 4,810,668 268,849,114 52,212,431 216,636,683

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (4,810,668) (182,300,275) (41,498,019) 140,802,256 OTHER FINANCING SOURCES:

Transfers in - 150,256,698 32,664,965 (117,591,733) Transfers out - (202,469) (202,469) -
Total other financing sources - 150,054,229 32,462,496 (117,591,733) NET CHANGE IN FUND BALANCE (GAAP BASIS) (4,810,668)$ (32,246,046)$ (9,035,523) 23,210,523$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (55,966,156) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (65,001,679) FUND BALANCE, BEGINNING OF YEAR 19,594,192
FUND BALANCE (BUDGETARY BASIS) (DEFICIT), END OF YEAR (45,407,487)$ * Adjusted to Budgetary Basis.

City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvement Capital Projects Fund
For the Year Ended June 30, 2023
131

ATTACHMENT A
810
This page intentionally left blank.
132

ATTACHMENT A
811

NONMAJOR GOVERNMENTAL FUNDS

ATTACHMENT A
812

ATTACHMENT A
813

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 accoun
t 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 use d to account for specific governmental revenue sources tha t are restricted, committe d 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.
133

ATTACHMENT A
814

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 use d 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 accoun
t for the accumulatio n of resources fo r the retiremen t of principal an d interest payment on long-ter m debt fo r 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. 134

ATTACHMENT A
815
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
ASSETS
Cash and investments 6,910,414$ 8,053,510$ 14,337,825$ 15,734,571$ 31,008,586$ Receivables, net:

Interest 22,819 32,023 64,980 83,548 146,896 Accounts and other - 352,341 - - - Lease - - - - - Advance deposits - - 20,836 21,883 18,097 Due from other governments, net - - 1,977,311 3,371,128 2,682,599 Prepaid items - - - - - Loans to Successor Agency, net 1,106,580 - - - - Loans to property owners, net 70,824,160 - - - - Total assets 78,863,973$ 8,437,874$ 16,400,952$ 19,211,130$ 33,856,178$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 7,916$ 16,014$ 1,059,937$ 351,529$ 247,521$ Accrued payroll and benefits 278 54,283 134,310 5,998 199,882 Due to other governments - - - - - Deposits and other liabilities - 3,915 - - - Total liabilities 8,194 74,212 1,194,247 357,527 447,403 Deferred Inflows of Resources:

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

Nonspendable - - 20,836 21,883 18,097 Restricted 78,855,779 8,363,662 15,185,869 18,831,720 33,390,678 Total fund balances 78,855,779 8,363,662 15,206,705 18,853,603 33,408,775 Total liabilities, deferred inflows of
resources and fund balances 78,863,973$ 8,437,874 $ 16,400,952 $ 19,211,130 $ 33,856,178 $ (Continued)
Special Revenue Funds
City of Stockton
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
135

ATTACHMENT A
816
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
ASSETS
Cash and investments 10,856,300$ 19,594,922$ 39,841,195$ 6,456,046$ 960,832$ Receivables, net:

Interest 39,902 84,532 156,842 20,408 - Accounts and other - 440,455 654,595 343,774 - Lease - - - 1,999 - Advance deposits - - 63,041 1,530 - Due from other governments, net 2,698,025 - 65,000 653,954 610,737 Prepaid items - - - - - Loans to Successor Agency, net - - - - - Loans to property owners, net - - - - - Total assets 13,594,227$ 20,119,909$ 40,780,673$ 7,477,711$ 1,571,569$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 152,895$ 362,004$ 274,104$ 296,782$ -$ Accrued payroll and benefits 527,289 18,566 449,516 51,217 - Due to other governments - - - - - Deposits and other liabilities - - 842,986 205,078 - Total liabilities 680,184 380,570 1,566,606 553,077 - Deferred Inflows of Resources:

Unavailable revenue - Other - - 222,503 655,885 -
Lease - - - 1,995 - Total deferred inflows of resource - - 222,503 657,880 - Fund Balances:

Nonspendable - - 63,041 1,530 - Restricted 12,914,043 19,739,339 38,928,523 6,265,224 1,571,569 Total fund balances 12,914,043 19,739,339 38,991,564 6,266,754 1,571,569 Total liabilities, deferred inflows of
resources and fund balances 13,594,227$ 20,119,909 $ 40,780,673 $ 7,477,711 $ 1,571,569 $ (Continued)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
136

ATTACHMENT A
817
Capital Debt Permanent
Projects Fund Service Fund Fund
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
ASSETS
Cash and investments 67,032,202 $ 406,717 $ 382,374 $ 221,575,494$ Receivables, net:

Interest 278,613 32,497 897 963,957 Accounts and other 746,011 - - 2,537,176 Lease - - - 1,999 Advance deposits - - - 125,387 Due from other governments, net - - - 12,058,754 Prepaid items - 1,646,025 - 1,646,025 Loans to Successor Agency, net - - - 1,106,580 Loans to property owners, net - - - 70,824,160 Total assets 68,056,826$ 2,085,239 $ 383,271 $ 310,839,532$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,107,200 $ - $ - $ 3,875,902$ Accrued payroll and benefits 25,784 15,390 - 1,482,513 Due to other governments 308,221 - - 308,221 Deposits and other liabilities - - - 1,051,979 Total liabilities 1,441,205 15,390 - 6,718,615 Deferred Inflows of Resources:

Unavailable revenue - Other 696,155 - - 1,574,543 Lease - - - 1,995 Total deferred inflows of resource 696,155 - - 1,576,538
Fund Balances:

Nonspendable - 1,646,025 - 1,771,412 Restricted 65,919,466 423,824 383,271 300,772,967 Total fund balances 65,919,466 2,069,849 383,271 302,544,379 Total liabilities, deferred inflows of
resources and fund balances 68,056,826$ 2,085,239 $ 383,271 $ 310,839,532$ (Concluded)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
137

ATTACHMENT A
818
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
REVENUES:

Taxes:

Sales - levied by City -$ -$ -$ 7,472,729$ 16,551,044$ Franchise fees - 3,609,749 - - -
Business license - - - - -
Licenses and permits - - - - -
Intergovernmental:

Federal grants and subsidies - - - - -
Sales and use tax - levied by state - - - - -
Other governmental - 186,496 15,315,587 1,821,509 - Charges for services - - - - -
Fines and forfeitures - - - - -
Use of money and property 803,755 - - - - Investment income:

Interest income (loss) (17,676) 290,106 (105,712) (27,954) (234,758) Refunds and reimbursements - - 66,403 - - Miscellaneous 1,745 4,507 - 10,750 -
787,824 4,090,858 15,276,278 9,277,034 16,316,286 EXPENDITURES:

Current:

General government 30,774 - - - -
Public safety - - - - -
Public works -
1,722,081 6,693,655 4,758,912 -
Library - - - - 2,892,739
Parks and recreation - - - - 4,821,876
Capital outlay 63,238 - 3,726,280 2,080,110 26,037 Debt service:

Principal retirement 7,898 - - - -
Interest and fiscal charges 30 - - - -
Total expenditures 101,940 1,722,081 10,419,935 6,839,022 7,740,652

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 685,884 2,368,777 4,856,343 2,438,012 8,575,634 OTHER FINANCING SOURCES (USES):

Transfers in 551,918 - 176,676 - -
Transfers out - - (2,463,845) (4,616,704) (6,695,204) Issuance of debt 63,238 - - - -
Total other financing sources (uses) 615,156 - (2,287,169) (4,616,704) (6,695,204) NET CHANGES IN FUND BALANCES 1,301,040 2,368,777 2,569,174 (2,178,692) 1,880,430 FUND BALANCES:

Beginning of year, as restated (Note 19) 77,554,739 5,994,885 12,637,531 21,032,295 31,528,345 End of year 78,855,779$ 8,363,662 $ 15,206,705 $ 18,853,603 $ 33,408,775 $ (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, 2023
138

ATTACHMENT A
819
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
REVENUES:

Taxes:

Sales - levied by City 16,578,176$ -$ -$ -$ -$ Franchise fees - - - - - Business license - 1,755,579 - - - Licenses and permits - - 7,262,892 31,360 - Intergovernmental:

Federal grants and subsidies - - - - - Sales and use tax - levied by state - - - - - Other governmental - - - 3,341,789 610,737 Charges for services - 4,453,681 14,220,718 48,335 - Fines and forfeitures - - 135,775 - - Use of money and property - - - 19,629 - Investment income:

Interest income (loss) (75,466) (67,050) (300,717) (79,807) - Refunds and reimbursements - - 3,319 - - Miscellaneous - 18,250 19,089 455,237 - 16,502,710 6,160,460 21,341,076 3,816,543 610,737 EXPENDITURES:

Current:

General government - 1,373,420 7,406,659 7,167 - Public safety 13,449,589 - 8,414,448 3,063,992 - Public works - 3,559,922 - 417,548 - Library - - - 21,205 - Parks and recreation - - - 7,809 - Capital outlay 102,295 - 25,315 283,635 - Debt service:

Principal retirement 10,191 - 2,524 - - Interest and fiscal charges 270 - 28 - - Total expenditures 13,562,345 4,933,342 15,848,974 3,801,356 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,940,365 1,227,118 5,492,102 15,187 610,737 OTHER FINANCING SOURCES (USES):

Transfers in - - 800,000 - - Transfers out - - - (50,000) (380,942) Issuance of debt - - - - - Total other financing sources (uses) - - 800,000 (50,000) (380,942) NET CHANGES IN FUND BALANCES 2,940,365 1,227,118 6,292,102 (34,813) 229,795 FUND BALANCES:

Beginning of year, as restated (Note 19) 9,973,678 18,512,221 32,699,462 6,301,567 1,341,774 End of year 12,914,043$ 19,739,339 $ 38,991,564 $ 6,266,754 $ 1,571,569 $ (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, 2023
139

ATTACHMENT A
820
Capital Projects Debt Service Permanent
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
REVENUES:

Taxes:

Sales - levied by City - $ - $ - $ 40,601,949$ Franchise fees - - - 3,609,749 Business license - - - 1,755,579 Licenses and permits - - - 7,294,252 Intergovernmental:

Federal grants and subsidies - - - - Sales and use tax - levied by state - - - - Other governmental - - - 21,276,118 Charges for services 5,594,704 - - 24,317,438 Fines and forfeitures - - - 135,775 Use of money and property 67,296 - 1,487 892,167 Investment income:

Interest income (loss) (126,216) 411 (471) (745,310) Refunds and reimbursements - - - 69,722 Miscellaneous - 1,755,434 - 2,265,012 5,535,784 1,755,845 1,016 101,472,451 EXPENDITURES:

Current:

General government 571,501 173,890 86 9,563,497 Public safety - - - 24,928,029 Public works 77,707 - - 17,229,825 Library - - - 2,913,944 Parks and recreation - - - 4,829,685 Capital outlay 1,807,492 - - 8,114,402 Debt service:

Principal retirement - 198,847 - 219,460 Interest and fiscal charges - 9,689,186 - 9,689,514 Total expenditures 2,456,700 10,061,923 86 77,488,356

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,079,084 (8,306,078) 930 23,984,095 OTHER FINANCING SOURCES (USES):

Transfers in - 8,422,050 - 9,950,644 Transfers out (3,545,852) - - (17,752,547) Issuance of debt - - - 63,238 Total other financing sources (uses) (3,545,852) 8,422,050 - (7,738,665) NET CHANGES IN FUND BALANCES (466,768) 115,972 930 16,245,430 FUND BALANCES:

Beginning of year, as restated (Note 19) 66,386,234 1,953,877 382,341 286,298,949 End of year 65,919,466$ 2,069,849 $ 383,271 $ 302,544,379$ (Concluded)
City of Stockton
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
140

ATTACHMENT A
821
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 48,800$ 48,800$ 803,755$ 754,955$ Investment income:

Interest income (loss) - - (17,676) (17,676) Miscellaneous 20,000 20,000 1,745 (18,255) Total revenues 68,800 68,800 787,824 719,024 EXPENDITURES:

Current:

General government 589,422 2,980,381 30,774 2,949,607 Debt service:

Principal retirement - - 7,898 (7,898) Interest and fiscal charges - - 30 (30) Total expenditures 589,422 2,980,381 38,702 2,941,679

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (520,622) (2,911,581) 749,122 3,660,703 OTHER FINANCING SOURCES:

Transfers in 551,918 551,918 551,918 -
Total other financing sources 551,918 551,918 551,918 - NET CHANGE IN FUND BALANCE (GAAP BASIS) 31,296$ (2,359,663)$ 1,301,040 3,660,703$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (173,999) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 1,127,041
FUND BALANCE, BEGINNING OF YEAR 77,554,739
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 78,681,780$ * Adjusted to Budgetary Basis.

City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Housing Grants Special Revenue Fund
For the Year Ended June 30, 2023
141

ATTACHMENT A
822
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Franchise fees -$ -$ 3,609,749$ 3,609,749$
Intergovernmental:

Other governmental 3,405,450 3,405,450 186,496 (3,218,954) Investment income:

Interest income (loss) - - 290,106 290,106
Miscellaneous - - 4,507 4,507
Total revenues 3,405,450 3,405,450 4,090,858 685,408 EXPENDITURES:

Current:

Public works 4,085,507 4,370,370 1,722,081 2,648,289 Total expenditures 4,085,507 4,370,370 1,722,081 2,648,289

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (680,057) (964,920) 2,368,777 3,333,697 OTHER FINANCING SOURCES:

Transfers out - (83,790) - 83,790
Total other financing sources - (83,790) - 83,790
OTHER FINANCING USES:

Transfers in - - - -
Total other financing uses - - - -
NET CHANGE IN FUND BALANCE (GAAP BASIS) (680,057)$ (1,048,710)$ 2,368,777 3,417,487$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (165,855) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 2,202,922
FUND BALANCE, BEGINNING OF YEAR 5,994,885
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 8,197,807$
* Adjusted to Budgetary Basis.

City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Solid Waste and Recycling Special Revenue Fund
For the Year Ended June 30, 2023
142

ATTACHMENT A
823
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental:

Other governmental 16,560,677$ 16,560,677$ 15,315,587$ (1,245,090)$ Investment income:

Interest income (loss) 10,000 10,000 (105,712) (115,712) Refunds and reimbursements - - 66,403 66,403
Total revenues 16,570,677 16,570,677 15,276,278 (1,294,399) EXPENDITURES:

Current:

Public works 8,157,160 8,395,420 6,693,655 1,701,765 Capital outlay - 12,483,181 3,726,280 8,756,901 Total expenditures 8,157,160 20,878,601 10,419,935 10,458,666

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 8,413,517 (4,307,924) 4,856,343 9,164,267 OTHER FINANCING SOURCES (USES):

Transfers in - 177,026 176,676 (350)
Transfers out (6,036,260) (12,584,676) (2,463,845) 10,120,831 Total other financing sources (uses) (6,036,260) (12,407,650) (2,287,169) 10,120,481 NET CHANGE IN FUND BALANCE (GAAP BASIS) 2,377,257$ (16,715,574)$ 2,569,174 19,284,748$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (1,134,789) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 1,434,385
FUND BALANCE, BEGINNING OF YEAR 12,637,531
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 14,071,916$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2023
143

ATTACHMENT A
824
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City 8,842,483$ 8,842,483$ 7,472,729$ (1,369,754)$ Intergovernmental:

Other governmental - 10,168,223 1,821,509 (8,346,714) Investment income:

Interest income (loss) - - (27,954) (27,954) Miscellaneous - - 10,750 10,750 Total revenues 8,842,483 19,010,706 9,277,034 (9,733,672) EXPENDITURES:

Current:

Public works 4,475,727 5,320,036 4,758,912 561,124 Capital outlay - 22,264,507 2,080,110 20,184,397 Total expenditures 4,475,727 27,584,543 6,839,022 20,745,521

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 4,366,756 (8,573,837) 2,438,012 11,011,849 OTHER FINANCING USES:

Transfers in - 1,466,005 - (1,466,005) Transfers out (3,326,680) (25,601,365) (4,616,704) 20,984,661 Total other financing uses (3,326,680) (24,135,360) (4,616,704) 19,518,656 NET CHANGE IN FUND BALANCE (GAAP BASIS) 1,040,076$ (32,709,197)$ (2,178,692) 30,530,505$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (1,243,965) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (3,422,657) FUND BALANCE, BEGINNING OF YEAR 21,032,295
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 17,609,638$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure K Streets Sales Tax Special Revenue Fund
For the Year Ended June 30, 2023
144

ATTACHMENT A
825
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City 14,027,000$ 14,027,000$ 16,551,044$ 2,524,044$ Investment income:

Interest income (loss) - - (234,758) (234,758) Total revenues 14,027,000 14,027,000 16,316,286 2,289,286 EXPENDITURES:

Current:

Library 4,471,381 4,466,089 2,892,739 1,573,350 Parks and recreation 6,238,267 6,699,620 4,821,876 1,877,744 Capital outlay - 26,253 26,037 216 Total expenditures 10,709,648 11,191,962 7,740,652 3,451,310

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 3,317,352 2,835,038 8,575,634 (1,162,024) OTHER FINANCING USES:

Transfers out (5,350,000) (8,574,500) (6,695,204) 1,879,296 Total other financing uses (5,350,000) (8,574,500) (6,695,204) 1,879,296 NET CHANGE IN FUND BALANCE (GAAP BASIS) (2,032,648)$ (5,739,462)$ 1,880,430 7,619,892$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (411,140) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 1,469,290
FUND BALANCE, BEGINNING OF YEAR 31,528,345
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 32,997,635$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Strong Communities Special Revenue Fund
For the Year Ended June 30, 2023
145

ATTACHMENT A
826
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City 14,000,000$ 14,000,000$ 16,578,176$ 2,578,176$ Investment income:

Interest income (loss) - - (75,466) (75,466) Total revenues 14,000,000 14,000,000 16,502,710 2,502,710 EXPENDITURES:

Current:

Public safety 12,845,623 13,917,836 13,449,589 468,247 Capital outlay - 298,283 102,295 195,988 Debt service:

Principal retirement - - 10,191 (10,191) Interest and fiscal charges - - 270 (270) Total expenditures 12,845,623 14,216,119 13,562,345 653,774 NET CHANGE IN FUND BALANCE (GAAP BASIS) 1,154,377$ (216,119)$ 2,940,365$ 3,156,484$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (226,655) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 2,713,710
FUND BALANCE, BEGINNING OF YEAR 9,973,678
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 12,687,388$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Public Safety Tax Special Revenue Fund
For the Year Ended June 30, 2023
146

ATTACHMENT A
827
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Business license 1,600,000$ 1,600,000$ 1,755,579$ 155,579$ Charges for services 4,475,774 4,475,774 4,453,681 (22,093) Investment income:

Interest income (loss) 40,000 40,000 (67,050) (107,050) Miscellaneous - - 18,250 18,250 Total revenues 6,115,774 6,115,774 6,160,460 44,686 EXPENDITURES:

Current:

General government 1,600,000 1,600,000 1,373,420 226,580 Public works 6,001,100 6,246,954 3,559,922 2,687,032 Total expenditures 7,601,100 7,846,954 4,933,342 2,913,612

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (1,485,326) (1,731,180) 1,227,118 2,958,298 OTHER FINANCING SOURCES (USES):

Transfers in 7,212 26,919 - (26,919) Transfers out (7,212) (26,919) - 26,919 Total other financing sources uses - - - - NET CHANGE IN FUND BALANCE (GAAP BASIS) (1,485,326)$ (1,731,180)$ 1,227,118$ 2,958,298$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (310,190) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 916,928
FUND BALANCE, BEGINNING OF YEAR 18,512,221
FUND BALANCE (BUDGETARY BASIS), END OF YEAR (DEFICIT) 19,429,149$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Assessment Special Revenue Fund
For the Year Ended June 30, 2023
147

ATTACHMENT A
828
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 7,317,117$ 7,317,117$ 7,262,892$ (54,225)$ Charges for services 11,682,100 11,682,100 14,220,718 2,538,618 Fines and forfeitures 105,094 105,094 135,775 30,681 Interest income (loss) 23,000 23,000 (300,717) (323,717) Refunds and reimbursements 250 250 3,319 3,069 Miscellaneous 1,100 1,100 19,089 17,989
Total revenues 19,128,661 19,128,661 21,341,076 2,212,415 EXPENDITURES:

Current:

General government 8,369,432 10,588,704 7,406,659 3,182,045 Public safety 8,931,137 9,093,346 8,414,448 678,898 Capital outlay - 26,000 25,315 685 Debt service:

Principal retirement - - 2,524 (2,524) Interest and fiscal charges - - 28 (28) Total expenditures 17,300,569 19,708,050 15,848,974 3,859,076

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 1,828,092 (579,389) 5,492,102 6,071,491 OTHER FINANCING USES:

Transfers in 800,000 800,000 800,000 - Transfers out - (5,700,000) - 5,700,000 Issuance of debt - - - - Total other financing uses 800,000 (4,900,000) 800,000 5,700,000 NET CHANGE IN FUND BALANCE (GAAP BASIS) 2,628,092$ (5,479,389)$ 6,292,102 11,771,491$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (2,254,384) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 4,037,718
FUND BALANCE, BEGINNING OF YEAR 32,699,462
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 36,737,180$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Development Services Special Revenue Fund
For the Year Ended June 30, 2023
148

ATTACHMENT A
829
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 55,500$ 55,500$ 31,360$ (24,140)$ Other governmental 1,458,000 3,172,339 3,341,789 169,450 Charges for services 100,304 100,304 48,335 (51,969) Use of money and property 12,000 12,000 19,629 7,629 Interest income (loss) 26,172 26,172 (79,807) (105,979) Miscellaneous 387,027 448,217 455,237 7,020 Total revenues 2,039,003 3,814,532 3,816,543 2,011 EXPENDITURES:

Current:

General government 521,430 521,430 7,167 514,263 Public safety 1,899,511 4,489,435 3,063,992 1,425,443 Public works 327,768 506,327 417,548 88,779 Library 52,000 74,159 21,205 52,954
Parks and recreation 10,000 10,000 7,809 2,191 Capital outlay - 1,648,113 283,635 1,364,478 Total expenditures 2,810,709 7,249,464 3,801,356 3,448,108

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (771,706) (3,434,932) 15,187 (3,446,097) OTHER FINANCING USES:

Transfers out (675,771) (884,271) (50,000) 834,271 Total other financing uses (675,771) (884,271) (50,000) 834,271 NET CHANGE IN FUND BALANCE (GAAP BASIS) (1,447,477)$ (4,319,203)$ (34,813) 4,284,390$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (748,075) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (782,888)
FUND BALANCE, BEGINNING OF YEAR (AS RESTATED) 6,301,567 FUND BALANCE (BUDGETARY BASIS), END OF YEAR 5,518,679$
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Other Special Revenue Fund
For the Year Ended June 30, 2023
149

ATTACHMENT A
830
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Other governmental 405,997$ 725,486$ 610,737$ (114,749)$ Total revenues 405,997 725,486 610,737 (114,749) EXPENDITURES:

Capital outlay - 285,610 - 285,610 Total expenditures - 285,610 - 285,610

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 405,997 439,876 610,737 170,861 OTHER FINANCING USES:

Transfers out (405,997) (1,307,735) (380,942) 926,793 Total other financing uses (405,997) (1,307,735) (380,942) 926,793 NET CHANGES IN FUND BALANCE -$ (867,859)$ 229,795 1,097,654$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* -
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 229,795
FUND BALANCE, BEGINNING OF YEAR 1,341,774
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 1,571,569$
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2023
150

ATTACHMENT A
831
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Charges for services 5,928,129$ 5,928,129$ 5,594,704$ (333,425)$ Use of money and property 51,500 51,500 67,296 15,796 Interest income (loss) 810,026 810,026 (126,216) (936,242) Refunds and reimbursements 5,000 5,000 - (5,000) Total revenues 6,794,655 6,794,655 5,535,784 (1,258,871) EXPENDITURES:

Current:

General government 481,341 1,052,329 571,501 480,828 Public works - 283,038 77,707 205,331 Capital outlay - 27,243,519 1,807,492 25,436,027 Total expenditures 481,341 28,578,886 2,456,700 26,122,186

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 6,313,314 (21,784,231) 3,079,084 (27,381,057) OTHER FINANCING USES:

Transfers in 491,935 269,905 - (269,905) Transfers out (1,021,935) (16,062,474) (3,545,852) 12,516,622 Total other financing uses (530,000) (15,792,569) (3,545,852) 12,246,717 NET CHANGE IN FUND BALANCE (GAAP BASIS) 5,783,314$ (37,576,800)$ (466,768) 37,110,032$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (8,128,669) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (8,595,437) FUND BALANCE, BEGINNING OF YEAR 66,386,234
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 57,790,797$ City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Facilities Impact Fees Capital Projects Fund
For the Year Ended June 30, 2023
151

ATTACHMENT A
832
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Interest income (loss) -$ -$ 411$ 411$
Miscellaneous 1,733,525 1,733,520 1,755,434 21,914 Total revenues 1,733,525 1,733,520 1,755,845 22,325 EXPENDITURES:

Current:

General government 289,224 294,195 173,890 120,305 Debt service:

Principal retirement 198,847 198,847 198,847 - Interest and fiscal charges 8,220,186 9,689,186 9,689,186 - Total expenditures 8,708,257 10,182,228 10,061,923 120,305

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (6,974,732) (8,448,708) (8,306,078) 142,630 OTHER FINANCING USES:

Transfers in 6,953,050 8,422,050 8,422,050 - Total other financing uses 6,953,050 8,422,050 8,422,050 - NET CHANGE IN FUND BALANCE (GAAP BASIS) (21,682)$ (26,658)$ 115,972 142,630$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (14,900) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 101,072
FUND BALANCE, BEGINNING OF YEAR 1,953,877
FUND BALANCE (BUDGETARY BASIS), END OF YEAR 2,054,949$
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stockton Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2023
152

ATTACHMENT A
833
The City’s nonmajor enterprise funds include:

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

Enterprise funds are self-supporting government funds that sells goods and services to the public for a fee.

NONMAJOR ENTERPRISE FUNDS
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, and operation and maintenance of stormwater facilities for drainage and disposal of stormwater, and operations related to the provision of services.

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.
153

ATTACHMENT A
834
Stormwater Parking Downtown Golf
Utility Authority Marina Courses
ASSETS
Current assets:

Cash and investments 8,366,680$ 1,825,534$ 270,032$ 199,953$ Receivables, net:

Interest 34,421 32,236 369 766 Accounts and other receivables 830,165 - 29,467 4,051 Lease - due in one year - - - 26,446 Deposits and advances - 98,171 - - Prepaids items 52,114 - 8,062 761 Total current assets 9,283,380 1,955,941 307,930 231,977 Noncurrent assets:

Restricted assets:

Cash and investments with fiscal agents - 4,815,205 - - Lease - due in more than one year 6,628
Loans receivable - 190,000 - - Capital assets, net:

Nondepreciable 1,460,714 5,265,589 - 359,805 Depreciable and amortizable, net 40,092,882 20,552,810 20,234,416 410,251 Total noncurrent assets 41,553,596 30,823,604 20,234,416 776,684 Total assets 50,836,976 32,779,545 20,542,346 1,008,661

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt - 409,919 - - Pension-related deferred outflows 421,134 - - - Total deferred outflows of resources 421,134 409,919 - - City of Stockton
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2023
154

ATTACHMENT A
835
Totals
ASSETS
Current assets:

Cash and investments 10,662,199$
Receivables, net:

Interest 67,792
Accounts and other receivables 863,683
Lease - due in one year 26,446
Deposits and advances 98,171
Prepaids items 60,937
Total current assets 11,779,228
Noncurrent assets:

Restricted assets:

Cash and investments with fiscal agents 4,815,205
Lease - due in more than one year 6,628
Loans receivable 190,000
Capital assets, net:

Nondepreciable 7,086,108
Depreciable and amortizable, net 81,290,359
Total noncurrent assets 93,388,300
Total assets 105,167,528

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 409,919
Pension-related deferred outflows 421,134
Total deferred outflows of resources 831,053
City of Stockton
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2023
155

ATTACHMENT A
836
Stormwater Parking Downtown Golf
Utility Authority Marina Courses

LIABILITIES
Current liabilities:

Accounts payable 318,827 265,385 29,759 49,673
Accrued payroll 101,563 29,749 24 2,205
Loans from other funds - current - 655,208 - -
Deposits and other liabilities 102,331 - 48,317 2,025 Retention payable 2,312 - - -
Accrued interest - 436,959 - -
Compensated absences - current 85,809 9,537 - -
Lease liabilities - due in one year - 184,069 - -
Subscription liability - current 3,774 - - -
Bonds payable - current - 754,710 - -
Total current liabilities 614,616 2,335,617 78,100 53,903 Noncurrent liabilities:

Compensated absences - long-term 53,399 3,294 - -
Lease liabilities - due in more than one year - 2,311,313 - - Subscription liability - due in more than one year 180 - - - Loans from other funds - long-term - 5,713,019 - -
Bonds payable - 27,958,426 10,870,821 -
Net pension liability 1,097,970 - - -
Total noncurrent liabilities 1,151,549 35,986,052 10,870,821 - Total liabilities 1,766,165 38,321,669 10,948,921 53,903

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 38,582 - - -
Leases - -
32,495
Total deferred inflows of resources 38,582 - - 32,495

NET POSITION
Net investment in capital assets 41,547,330 (4,980,200) 9,363,595 770,056 Restricted for capital projects - 3,089,585 - -
Restricted for debt service - 1,725,620 - -
Unrestricted (deficit) 7,906,033 (4,967,210) 229,830 152,207 Total net position 49,453,363$ (5,132,205) $ 9,593,425 $ 922,263 $ Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2023
City of Stockton
156

ATTACHMENT A
837
Totals

LIABILITIES
Current liabilities:

Accounts payable 663,644
Accrued payroll 133,541
Loans from other funds - current 655,208
Deposits and other liabilities 152,673
Retention payable 2,312
Accrued interest 436,959
Compensated absences - current 95,346
Lease liabilities - due in one year 184,069
Subscription liability - current 3,774
Bonds payable - current 754,710
Total current liabilities 3,082,236
Noncurrent liabilities:

Compensated absences - long-term 56,693
Lease liabilities - due in more than one year 2,311,313 Subscription liability - due in more than one year 180
Loans from other funds - long-term 5,713,019
Bonds payable 38,829,247
Net pension liability 1,097,970
Total noncurrent liabilities 48,008,422
Total liabilities 51,090,658

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 38,582
Leases 32,495
Total deferred inflows of resources 71,077

NET POSITION
Net investment in capital assets 46,700,781
Restricted for capital projects 3,089,585
Restricted for debt service 1,725,620
Unrestricted (deficit) 3,320,860
Total net position 54,836,846$
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2023
City of Stockton
157

ATTACHMENT A
838
Stormwater Parking Downtown Golf
Utility Authority Marina Courses
OPERATING REVENUES:

Charges for services 5,977,783$ 4,657,460$ 354,507$ -$ Miscellaneous 181,543 - 36,855 19,093 Total operating revenues 6,159,326 4,657,460 391,362 19,093 OPERATING EXPENSES:

Operation and maintenance 4,382,482 3,273,204 662,172 - General and administrative 1,794,442 694,942 6,365 85,212 Depreciation and amortization 1,736,693 1,050,406 547,407 93,905 Total operating expenses 7,913,617 5,018,552 1,215,944 179,117 OPERATING INCOME (LOSS) (1,754,291) (361,092) (824,582) (160,024) NONOPERATING REVENUES (EXPENSES):

Taxes - 1,449,627 - - Grants and subsidies - 203,798 - - Investment income:

Interest income (loss) (465) 153,023 832 (5,435) Interest expense and fiscal charges (43) (1,134,094) - - Total nonoperating revenues (expenses) (508) 672,354 832 (5,435)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (1,754,799) 311,262 (823,750) (165,459) CONTRIBUTIONS AND TRANSFERS:

Developer contributions 1,290,132 - - - Transfers in - - 262,000 110,000 Transfers out (396,200) - - - Total contributions and transfers 893,932 - 262,000 110,000 CHANGES IN NET POSITION (860,867) 311,262
(561,750) (55,459)
NET POSITION (DEFICIT):

Beginning of year 50,314,230 (5,443,467) 10,155,175 977,722 End of year 49,453,363$ (5,132,205) $ 9,593,425 $ 922,263 $ For the Year Ended June 30, 2023
City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
158

ATTACHMENT A
839
Totals
OPERATING REVENUES:

Charges for services 10,989,750$
Miscellaneous 237,491
Total operating revenues 11,227,241
OPERATING EXPENSES:

Operation and maintenance 8,317,858
General and administrative 2,580,961
Depreciation and amortization 3,428,411
Total operating expenses 14,327,230
OPERATING INCOME (LOSS) (3,099,989)
NONOPERATING REVENUES (EXPENSES):

Taxes 1,449,627
Grants and subsidies 203,798
Investment income:

Interest income (loss) 147,955
Interest expense and fiscal charges (1,134,137)
Total nonoperating revenues (expenses) 667,243

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (2,432,746)
CONTRIBUTIONS AND TRANSFERS:

Developer contributions 1,290,132
Transfers in 372,000
Transfers out (396,200)
Total contributions and transfers 1,265,932
CHANGES IN NET POSITION (1,166,814)
NET POSITION (DEFICIT):

Beginning of year 56,003,660
End of year 54,836,846$
For the Year Ended June 30, 2023
City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Nonmajor Enterprise Funds
159

ATTACHMENT A
840
Stormwater Parking Downtown Golf
Utility Authority Marina Courses
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 5,822,283 $ 4,657,460 $ 337,290 $ 3,461 $ Payments to suppliers and employees (6,212,339) (3,721,916) (688,021) (82,596) Miscellaneous receipts 181,543 - 36,855 19,093 Net cash provided by (used in) operating activities (208,513) 935,544 (313,876) (60,042) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (396,200) - 262,000 110,000 Loans to and from other funds - (643,105) - Receipt of cash subsidies and federal grants - - 12 Proceeds from taxes - 1,653,425 - Net cash provided by (used in) noncapital financing activities (396,200) 1,010,320 262,000 110,012

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 188,165 - - - Purchases of capital assets (1,863,432) (1,170,626) - - Capital contributions received 1,290,132 - - - Proceeds from issuance of debt - - - - Principal paid on debt (3,808) (724,552) - - Interest paid on debt (43) (1,145,388) - - Net cash (used in) capital and related financing activities (388,986) (3,040,566) - - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (12,895) 129,976 704 (6,183) Net cash provided by (used in) investing activities (12,895) 129,976 704 (6,183) (1,006,594) (964,726) (51,172) 43,787 CASH AND CASH EQUIVALENTS:

Beginning of year 9,373,274 7,605,465 321,204 156,166 End of year 8,366,680$ 6,640,739 $ 270,032 $ 199,953 $

NET INCREASE (DECREASE) IN CASH AND CASH
City of Stockton
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2023
160

ATTACHMENT A
841
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 10,820,494$
Payments to suppliers and employees (10,704,872)
Miscellaneous receipts 237,491
Net cash provided by (used in) operating activities 353,113 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (24,200)
Due to and from other funds (643,105)
Receipt of cash subsidies and federal grants 12
Proceeds from taxes 1,653,425
Net cash provided by (used in) noncapital financing activities 986,132

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 188,165
Purchases of capital assets (3,034,058)
Capital contributions received 1,290,132
Proceeds from issuance of debt -
Principal paid on debt (728,360)
Interest paid on debt (1,145,431)
Net cash (used in) capital and related financing activities (3,429,552) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) 111,602
Net cash provided by (used in) investing activities 111,602 (1,978,705)
CASH AND CASH EQUIVALENTS:

Beginning of year 17,456,109
End of year 15,477,404$

NET INCREASE (DECREASE) IN CASH AND CASH
City of Stockton
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2023
161

ATTACHMENT A
842
Stormwater Parking Downtown Golf
Utility Authority Marina Courses

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 8,366,680 $ 1,825,534 $ 270,032 $ 199,953 $ Restricted assets:

Cash and investments with fiscal agents - 4,815,205 - - Total cash and investments 8,366,680$ 6,640,739 $ 270,032 $ 199,953 $

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

Operating income (loss) (1,754,291) $ (361,092) $ (824,582) $ (160,024) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 1,736,693 1,050,406 547,407 93,905 Changes in assets and liabilities:

Accounts receivables (155,500) - (17,217) 3,712 Prepaid items 9,594 - (7,274) - Lease receivable - - - 26,337 Lease related deferred inflows - - - (26,588) Deposits and advances - (8,650) - - Accounts payable (132,744) 241,551 (23,662) (12) Accrued payroll 8,702 6,934 - 603 Accrued liabilities - - 24 - Deposits and other liabilities (1,669) - 11,428 2,025 Compensated absences 135,151 6,395 - - Net pension liability 687,525 - - - Pension-related deferred outflows (275,680) - - - Pension-related deferred inflows (466,294) - - - Net cash
provided by (used in) operating activities (208,513)$ 935,544 $ (313,876) $ (60,042) $ NONCASH TRANSACTIONS:

Amortization of loss on refunding - $ (409,919)$ - $ - $ Capital contributions received 1,290,132 - - - Total noncash capital and related financing activities 1,290,132$ (409,919)$ -$ -$ For the Year Ended June 30, 2023
City of Stockton
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
162

ATTACHMENT A
843
Totals

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 10,662,199$
Restricted assets:

Cash and investments with fiscal agents 4,815,205
Total cash and investments 15,477,404$

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

Operating income (loss) (3,099,989)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 3,428,411
Changes in assets and liabilities:

Accounts receivables (169,005)
Prepaid items 2,320
Lease receivable 26,337
Lease related deferred inflows (26,588)
Deposits and advances (8,650)
Accounts payable 85,133
Accrued payroll 16,239
Accrued liabilities 24
Deposits and other liabilities 11,784
Compensated absences 141,546
Net pension liability 687,525
Pension-related deferred outflows (275,680)
Pension-related deferred inflows (466,294)
Net cash
provided by (used in) operating activities 353,113$
NONCASH TRANSACTIONS:

Amortization of loss on refunding (409,919)$
Capital contributions received 1,290,132
Total noncash capital and related financing activities 880,213$ For the Year Ended June 30, 2023
City of Stockton
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
163

ATTACHMENT A
844
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164

ATTACHMENT A
845

INTERNAL SERVICE FUNDS

ATTACHMENT A
846
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ATTACHMENT A
847
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
To accoun t for the financing, operations, servicing an d maintenance of flee t vehicles an d 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 equipmen t and related equipment provided to Cit y 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.

INTERNAL SERVICE FUNDS
Internal service funds are a type of proprietary fun d used to report an y activity that provides goods an d services on a cost- reimbursement basis to other funds, departments, or agencies of the primary government and its component units, or to other governments.

To account for premiums and claims paid and the administration of general liability insurance provided to all City departments on a cost reimbursement basis. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions.

To account for premiums and claims paid and the administration of workers’ compensation liability insurance provided to all City employees incurring injury on the job, of which health benefits and other related liability costs are funded by City department payments into the fund. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions.

To accoun
t for premiums and claims paid and the administration of health benefits insurance provided to qualifie d 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. 165

ATTACHMENT A
848
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance
ASSETS
Current assets:

Cash and investments 22,000,392$ 42,180,617$ 3,223,853$ 14,300,943$ 1,405,915$ Receivables, net:

Interest 82,661 241,373 10,191 80,531 8,627 Accounts and other receivables 522,270 3,897,749 - - - Inventories - - - - - Deposits and advances - 446 131,829 - - Prepaid items 241,984 - 1,753,961 - - Loans to other funds - short-term - 1,075,810 - - - Total current assets 22,847,307 47,395,995 5,119,834 14,381,474 1,414,542 Noncurrent assets:

Restricted assets:

Cash and investments - - - 81,544,197 - Loans to other funds - long-term - 6,657,263 - - - Capital assets, net:

Nondepreciable - - - - - Depreciable and amortizable, net - - - - - Total noncurrent assets - 6,657,263 - 81,544,197 - Total assets 22,847,307 54,053,258 5,119,834 95,925,671 1,414,542

LIABILITIES
Current liabilities:

Accounts payable 142 62,435 66,032 5,551,029 96,082 Accrued payroll 65,270
26,225 32,995 4,182 - Deposits and other liabilities - 49,104 - - - Accrued interest - - - - - Compensated absences - due in one year 21,673 943 11,629 - - Lease payable - due in one year - - - - - Subscription liability - due in one year - - - - - Claims payable, due in one year 5,019,028 8,679,000 - - - Loans from other funds- current - - - - - Total current liabilities 5,106,113 8,817,707 110,656 5,555,211 96,082 Noncurrent liabilities:

Compensated absences - due in more than one year 17,971 - 765 - - Lease payable - due in more than one year - - - - - Subscription liability - due in more than one year - - Claims payable, due in more than one year 18,485,597 41,884,000 - - - Loans from other funds- due in more than one year - - - - - Total noncurrent liabilities 18,503,568 41,884,000 765 - - Total liabilities 23,609,681 50,701,707 111,421 5,555,211 96,082

NET POSITION
Net investment in capital assets - - - - - Restricted for pensions - - - 81,544,197 - Unrestricted (762,374) 3,351,551 5,008,413 8,826,263 1,318,460 Total net position (762,374)$ 3,351,551 $ 5,008,413 $ 90,370,460 $ 1,318,460 $ City of Stockton
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
166

ATTACHMENT A
849
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
ASSETS
Current assets:

Cash and investments 19,738,976 $ 44,434,941 $ 1,429,795 $ 148,715,432 $ Receivables, net:

Interest 76,060 185,032 5,788 690,263 Accounts and other receivables 118,593 - - 4,538,612 Inventories - 62,561 - 62,561 Deposits and advances 283,055 138,125 - 553,455 Prepaid items - 1,800,739 44,998 3,841,682 Loans to other funds - short-term - - - 1,075,810 Total current assets 20,216,684 46,621,398 1,480,581 159,477,815 Noncurrent assets:

Restricted assets:

Cash and investments - - - 81,544,197 Loans to other funds - long-term - - - 6,657,263 Capital assets, net:

Nondepreciable 6,216,198 23,733,607 - 29,949,805 Depreciable and amortizable, net 17,392,315 11,414,896 154,746 28,961,957 Total noncurrent assets 23,608,513 35,148,503 154,746 147,113,222 Total assets 43,825,197 81,769,901 1,635,327 306,591,037

LIABILITIES
Current liabilities:

Accounts payable 222,954 230,672 22,751 6,252,097 Accrued payroll 116,531 222,699 8,022 475,924 Deposits and other liabilities - - - 49,104 Accrued interest 11,235 - 91 11,326 Compensated absences - due in one year 79,309
161,049 5,703 280,306
Lease payable - due in one year - 266,282 50,398 316,680 Subscription liability - due in one year 76,380 3,359,956 - 3,436,336 Claims payable, due in one year - - - 13,698,028 Loans from other funds- current 420,602 - - 420,602 Total current liabilities 927,011 4,240,658 86,965 24,940,403 Noncurrent liabilities:

Compensated absences - due in more than one year 26,520 129,712 6,566 181,534 Lease payable - due in more than one year - 200,250 101,646 301,896 Subscription liability - due in more than one year 32,323 2,399,845 - 2,432,168 Claims payable, due in more than one year - - - 60,369,597 Loans from other funds- due in more than one year 944,244 - - 944,244 Total noncurrent liabilities 1,003,087 2,729,807 108,212 64,229,439 Total liabilities 1,930,098 6,970,465 195,177 89,169,842

NET POSITION
Net investment in capital assets 23,499,810 28,922,170 2,702 52,424,682 Restricted for pensions - - - 81,544,197 Unrestricted 18,395,289 45,877,266 1,437,448 83,452,316 Total net position 41,895,099$ 74,799,436 $ 1,440,150 $ 217,421,195 $ City of Stockton
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2023
167

ATTACHMENT A
850
General Workers' Employee Other
Liability Compensation Health Retirement Benefits and
Insurance Insurance Insurance Benefits Insurance
OPERATING REVENUES:

Charges for services 12,710,642$ 18,326,078$ 21,342,780$ 82,721,368$ 2,519,510$ Miscellaneous - 45 - - - Total operating revenues 12,710,642 18,326,123 21,342,780 82,721,368 2,519,510 OPERATING EXPENSES:

Operation and maintenance 19,618,438 13,016,182 20,633,518 78,285,363 2,001,339 General and administrative 1,880,620 3,472,827 1,104,491 1,218 405 Depreciation and amortization - - - - - Total operating expenses 21,499,058 16,489,009 21,738,009 78,286,581 2,001,744 OPERATING INCOME (LOSS) (8,788,416) 1,837,114 (395,229) 4,434,787 517,766 NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) (91,568) (21,690) 80,706 2,253,279 (38,583) Interest expense and fiscal charges - - - - - Other nonoperating revenues - - 43,975 - 2,727 Total nonoperating revenues (expenses) (91,568) (21,690) 124,681 2,253,279 (35,856)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (8,879,984) 1,815,424 (270,548) 6,688,066 481,910

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions - - - - - Transfers in - - - 10,000,000 -
Total capital contributions and transfers - - - 10,000,000 - CHANGES IN NET POSITION (8,879,984) 1,815,424 (270,548) 16,688,066 481,910 NET POSITION:

Beginning of year, as restated (Note 19) 8,117,610 1,536,127 5,278,961 73,682,394 836,550 End of year (762,374)$ 3,351,551 $ 5,008,413 $ 90,370,460 $ 1,318,460 $ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2023
168

ATTACHMENT A
851
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
OPERATING REVENUES:

Charges for services 14,339,650 $ 17,038,569 $ 362,380 $ 169,360,977$ Miscellaneous 233 - - 278 Total operating revenues 14,339,883 17,038,569 362,380 169,361,255 OPERATING EXPENSES:

Operation and maintenance 8,145,927 12,091,729 345,933 154,138,429 General and administrative 1,364,674 37,883 937 7,863,055 Depreciation and amortization 3,049,501 4,662,072 59,019 7,770,592 Total operating expenses 12,560,102 16,791,684 405,889 169,772,076 OPERATING INCOME (LOSS) 1,779,781 246,885 (43,509) (410,821) NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) (138,653) (92,045) (3,232) 1,948,214 Interest expense and fiscal charges (33,280) (109,443) (1,004) (143,727) Other nonoperating revenues 176,739 - - 223,441 Total nonoperating revenues (expenses) 4,806 (201,488) (4,236) 2,027,928

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 1,784,587 45,397 (47,745) 1,617,107

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions 2,608,807 72,297 - 2,681,104 Transfers in 274,865 5,134,542 - 15,409,407 Total capital contributions and transfers 2,883,672 5,206,839 - 18,090,511 CHANGES IN NET POSITION 4,668,259 5,252,236 (47,745) 19,707,618 NET POSITION:

Beginning of year, as restated (Note 19) 37,226,840 69,547,200 1,487,895 197,713,577
End of year 41,895,099$ 74,799,436 $ 1,440,150 $ 217,421,195 $ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2023
169

ATTACHMENT A
852
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance
ACTIVITIES:

Receipts for interfund services provided 12,528,437$ 14,449,885$ 21,343,175$ 82,721,368$ 2,519,510$ Payments to suppliers and employees (21,742,218) (16,494,730) (23,437,493) (73,990,702) (1,942,365) Claims and insurance paid 8,000,392 1,063,000 (396,000) - - Net cash provided by (used in) operating
activities (1,213,389) (981,845) (2,490,318) 8,730,666 577,145

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in and out - - - 10,000,000 - Loans to and from other funds - 1,075,809 - - - Other nonoperating revenues - - 43,975 - 2,727 Net cash provided by (used in) noncapital
financing activities - 1,075,809 43,975 10,000,000 2,727

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 (125,252) (90,916) 86,736 2,335,753 (44,424) Net cash provided by investing activities (125,252) (90,916) 86,736 2,335,753 (44,424)

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (1,338,641) 3,048 (2,359,607) 21,066,419 535,448
CASH AND CASH EQUIVALENTS:

Beginning of year 23,339,033 42,177,569 5,583,460 74,778,721 870,467 End of year 22,000,392$ 42,180,617 $ 3,223,853 $ 95,845,140 $ 1,405,915 $

RECONCILIATION OF CASH

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

Cash and investments 22,000,392 $ 42,180,617 $ 3,223,853 $ 14,300,943 $ 1,405,915 $ Restricted assets:

Cash with investments fiscal agents - - - 81,544,197 - Total cash and investment
s 22,000,392$ 42,180,617 $ 3,223,853 $ 95,845,140 $ 1,405,915 $ City of Stockton
Combining Statement of Cash Flows
For the Year Ended June 30, 2023
Internal Service Funds
170

ATTACHMENT A
853
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
ACTIVITIES:

Receipts for interfund services provided 14,221,290 $ 17,534,169 $ 362,380 $ 165,680,214$ Payments to suppliers and employees (9,141,927) (12,611,425) (382,292) (159,743,152) Claims and insurance paid - - - 8,667,392 Net cash provided by (used in) operating
activities 5,079,363 4,922,744 (19,912) 14,604,454

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in and out 274,865 5,134,542 - 15,409,407 Loans to and from other funds (454,216) - - 621,593 Other nonoperating revenues 176,739 - - 223,441 Net cash provided by (used in) noncapital
financing activities (2,612) 5,134,542 - 16,254,441

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchases of capital assets (1,450,135) (9,126,120) - (10,576,255) Principal paid on debt (74,892) (3,247,131) (50,116) (3,372,139) Interest paid on debt (37,020) (109,443) (1,004) (147,467) Net cash (used in) capital and related
financing activities (1,562,047) (12,482,694) (51,120) (14,095,861) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (173,920) (164,086) (5,522) 1,818,369 Net cash provided by investing activities (173,920) (164,086) (5,522) 1,818,369

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 3,340,784 (2,589,494) (76,554) 18,581,403 CASH AND CASH EQUIVALENTS:

Beginning of year 16,398,192 47,024,435 1,506,349 211,678,226 End of yea
r 19,738,976$ 44,434,941 $ 1,429,795 $ 230,259,629 $

RECONCILIATION OF CASH

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

Cash and investments 19,738,976 $ 44,434,941 $ 1,429,795 $ 148,715,432 $ Restricted assets:

Cash with investments fiscal agents - - - 81,544,197 Total cash and investment
s 19,738,976$ 44,434,941 $ 1,429,795 $ 230,259,629 $ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
171

ATTACHMENT A
854
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) (8,788,416)$ 1,837,114$ (395,229)$ 4,434,787$ 517,766$ 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 (182,205) (3,897,749) 395 - - Due from other funds 21,511
Prepaid items (241,984) 446 (1,048,253) - - Inventory of supplies - - - - - Deposits and advances - (446) 4,541 - - Accounts payable (16,108) 1,719 (658,981) 4,295,583 59,379 Accrued payroll 17,136 (5,632) (5,108) 296 - Compensated absences (2,204) (1,808) 8,317 - - Self-insurance - claims and judgments 8,000,392 1,063,000 (396,000) - - Net cash provided by (used in) operating
activities (1,213,389)$ (981,845)$ (2,490,318)$ 8,730,666$ 577,145$ NONCASH TRANSACTIONS:

Capital contributions -$ -$ -$ -$ -$ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
172

ATTACHMENT A
855
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) 1,779,781 $ 246,885 $ (43,509) $ (410,821) $ Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization 3,049,501 4,662,072 59,019 7,770,592 Changes in assets and liabilities:

Accounts and other receivables (118,593) - - (4,198,152) Due from other funds - 495,600 - 517,111 Prepaid items 962,464 (299,072) - (626,399) Inventory of supplies - 117,165 - 117,165 Deposits and advances (283,055) - - (278,960) Accounts payable (312,626) (296,386) (35,725) 3,036,855 Accrued payroll 3,096 (23,425) 457 (13,180) Compensated absences (1,205) 19,905 (154) 22,851 Self-insurance - claims and judgments - - - 8,667,392 Net cash provided by (used in) operating
activities 5,079,363$ 4,922,744 $ (19,912) $ 14,604,454$ NONCASH TRANSACTIONS:

Capital contributions 2,608,807 $ 72,297 $ - $ 2,681,104$ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
173

ATTACHMENT A
856
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174

ATTACHMENT A
857

CUSTODIAL-FIDUCIARY FUNDS

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ATTACHMENT A
859
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 accoun t for special taxes or assessmen t collections fro m property owners tha t are authorized unde r 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.
175

ATTACHMENT A
860
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176

ATTACHMENT A
861
Land-Secured
Financing All Other Total
Assets:

Cash and investments 8,486,597 $ 15,856,927 $ 24,343,524 $ Cash and investments with fiscal agents 11,829,489 - 11,829,489 Receivables:

Interest 72,502 60,382 132,884 Accounts and other receivables - 2,203,123 2,203,123 Total assets 20,388,588 18,120,432 38,509,020 Liabilities:

Accounts payable 15,958 103 16,061
Due to other governments 31,699 1,680,430 1,712,129 Total liabilities 47,657 1,680,533 1,728,190 Net Position:

Restricted for individual, organization,
and other government 20,340,931 16,439,899 36,780,830 Total net positions 20,340,931$ 16,439,899 $ 36,780,830 $ City of Stockton
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2023
177

ATTACHMENT A
862
Land-Secured
Financing All Other Total
ADDITIONS:

Property taxes 8,268,542 $ - $ 8,268,542$
Use of money and property 5,473 - 5,473
Investment income (loss) 209,903 28,138 238,041 Debt issued 19,504,313 19,504,313
Total additions 27,988,231 28,138 28,016,369
DEDUCTIONS:

General government 394,189 - 394,189
Public works 13,311,897 1,313,617 14,625,514 Debt obligations 8,654,088 - 8,654,088
Total deductions 22,360,174 1,313,617 23,673,791 CHANGE IN NET POSITION 5,628,057 (1,285,479) 4,342,578 NET POSITION:

Beginning of year, 14,712,874 17,725,378 32,438,252 End of year 20,340,931$ 16,439,899 $ 36,780,830 $ City of Stockton
For the Year Ended June 30, 2023
Fiduciary Funds - Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 178

ATTACHMENT A
863
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax 42,080,000$ 49,703,488$ 7,623,488$ Total revenues 42,080,000 49,703,488 7,623,488 Uses/Expenditures
Police
Salary & benefits
Sworn 24,965,558 22,471,737 2,493,821
Non-Sworn 3,892,835 3,312,145 580,690 Vacancy savings (1,696,203) - (1,696,203) Other services 3,496,480 3,379,931 116,549 Materials & supplies
Fuel 346,141 414,694 (68,553) Other supplies 1,132,271 510,188 622,083 Other expenses
Training 595,000 584,222 10,778 Capital outlay 277,254 77,254 200,000 Total police 33,009,336 30,750,171 2,259,165 Office of Violence Prevention
Salary & benefits
Non-sworn 926,130 774,769 151,361 Other services 317,033 285,544 31,489 Materials & supplies
Fuel 7,750 8,078 (328) Other supplies 36,553 27,036 9,517 Office equipment 3,979 - 3,979 Other expenses 20,000 9,638 10,362 Total Office of Violence Prevention 1,311,445 1,105,065 206,380 Basis Adjustment
Encumbrances (included in final budget) - 199,163 (199,163) Total Measure B Expenditures 34,320,781 32,054,399 2,266,382

Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 82% 64%
Other City Services
General Fund available fund balance 7,759,219 17,649,089 (9,889,870) Basis adjustment
Encumbrances (included in final budget) - - - Total adjustment 7,759,219 17,649,089 (9,889,870) Total Uses/Expenditures 42,080,000$ 49,703,488 $ (7,623,488) $ Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2023
City of Stockton
179

ATTACHMENT A
864
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180

ATTACHMENT A
865

STATISTICAL SECTION

ATTACHMENT A
866
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ATTACHMENT A
867
This part of the City’s annual comprehensive financial report is not covered by the Independent Auditors' 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.

Revenue Capacity (pages 196-203)
These schedules contain information to help the reader assess the City’s most significant local revenue sources, transient occupancy tax (“TOT”) and property taxes.

STATISTICAL SECTION OVERVIEW
Financial Trends (pages 182-195)
These schedules contain trend information to help the reader understand how the City’s financial performance and well- being have changed over time.

Debt Capacity (pages 204-212)
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 213-214)
These schedules offer demographic and economic indicators to help the reader understand the environment with which the City’s financial activities take place.

Operating Information (pages 215-221)
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. 181

ATTACHMENT A
868
2023 2022 2021 2020 2019
Governmental activities:

Net investment in capital assets 817,086$ 764,271$ 732,219$ 724,164$ 346,021$ Restricted 495,695 524,467 457,693 239,339 204,114 Unrestricted (deficit) (131,625) (171,572) (262,907) (119,715) 260,748 1,181,156 1,117,167 927,005 843,787 810,883 Business-type activities:

Net investment in capital assets 473,568 438,675 365,873 301,434 381,015 Restricted 25,367 25,394 46,241 125,668 28,411 Unrestricted 201,609 200,819 224,551 177,840 155,217 700,544 664,888 636,665 604,942 564,643 Primary government:

Net investment in capital assets 1,290,654 1,202,947 1,098,093 1,025,598 727,036 Restricted 521,062 549,800 503,934 365,007 232,525 Unrestricted (deficit) 69,984 29,308 (38,356) 58,125 415,965 1,881,700$ 1,782,055$ 1,563,670$ 1,448,729$ 1,375,526$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 1
Net Position by Classification
Last Ten Fiscal Years
(Dollar amounts in thousands)
Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Total governmental activities net position
Total business-type activities net position
Total primary government net position
Fiscal Year
182

ATTACHMENT A
869
2018 2017 2016 2015 2014
Governmental activities:

Net investment in capital assets 328,284$ 330,655$ 287,078$ 326,823$ 714,595$ Restricted 170,507 148,493 153,087 130,763 96,596 Unrestricted (deficit) 238,421 229,584 196,005 160,224 (62,855) 737,211 708,732 636,170 617,810 748,336 Business-type activities:

Net investment in capital assets 367,317 362,886 369,983 379,853 413,783 Restricted 46,805 50,904 54,618 56,521 54,175 Unrestricted 133,656 82,938 44,792 28,751 42,641 547,778 496,728 469,393 465,125 510,599 Primary government:

Net investment in capital assets 695,601 693,540 657,061 706,676 1,128,378 Restricted 217,311 199,397 207,705 187,284 150,771 Unrestricted (deficit) 372,077 312,522 240,797 188,975 (20,214) 1,284,989$ 1,205,460$ 1,105,563$ 1,082,935$ 1,258,935$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 1
Net Position by Classification (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Total governmental activities net position
Total business-type activities net position
Total primary government net position
183

ATTACHMENT A
870
2023 2022 2021 2020 2019
54,871$ 72,135$ 74,314$ 37,269$ 37,821$ 227,637 170,406 217,953 217,941 199,263 50,048 41,373 55,086 44,922 37,168 16,275 13,086 12,792 14,657 13,501 21,141 14,289 11,526 27,798 27,288 9,968 7,894 4,373 5,298 5,914 379,942 319,183 376,045 347,885 320,954 Business-type activities:
50,185 54,532 54,266 47,974 46,641 68,976 66,991 61,124 63,983 58,093 7,914 7,288 6,759 6,599 7,419 6,153 5,687 4,995 5,795 5,501 1,395 1,375 1,667 2,499 3,613 Total business-type activities 134,622 135,873 128,811 126,850 121,267 Total expenses 514,564 455,056 504,856 474,736 442,221

Governmental activities:

Charges for services:

General government 26,165 31,123 12,560 9,250 13,977 Public safety 20,469 18,688 13,235 11,220 16,925 Public works 11,886 14,291 32,456 3,143 10,367 Library 8,294 7,537 7,037 278 470 Parks and recreation 1,191 852 406 4,010 11,320 Operating grants and contributions 42,072 100,879 51,329 21,509 13,446 Capital grants and contributions 26,667 53,140 39,065 30,227 45,632 Total governmental activities 136,745 226,510 156,087 79,637 112,137 Business-type activities:

Charges for services:

Water utility 60,822 66,013 64,097 57,519 49,489 Wastewater utility 84,393 78,509 73,885 71,210 67,432 Stormwater utility 6,159 6,137 6,040 6,417 6,407 Parking Authority 4,657 5,690 4,589 4,749 4,592 Other 410 428 355 1,038 1,755 Operating grants and contributions 1,653 2,500 - 7,314 3,643 Capital grants and contributions 12,363 12,231 13,263 7,258 4,626 170,458 171,508 162,229 155,504 137,944 Total program revenues 307,203 398,018 318,316 235,141 250,081 Change in Net Position
Governmental activities (243,197) (92,673) (219,957) (268,248) (208,817) Business-type activities 35,836 35,635 33,417 28,654 16,677 Total primary government (207,361) $ (57,038) $ (186,540) $ (239,594) $ (192,140) $ Fiscal Year
(Dollar amounts in thousands)
Last Ten Fiscal Years
City of Stockton
Table 2
Changes in Net Position
Total governmental activities
Stormwater utility
Parks and recreation
Interest and fiscal charges
Parking Authority
Expenses
General government
Public safety
Public works
Library
Governmental activities:

Water utility
Wastewater utility
Program Revenues
Total business-type activities
Other
184

ATTACHMENT A
871
2023 2022 2021 2020 2019
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property 42,578$ 41,066$ 38,523$ 36,692$ 35,739$ In lieu of sales tax - - - Utility user 42,445 38,328 36,414 34,537 34,252 Sales - levied by City (1) 82,833 75,037 68,639 57,077 57,911 Franchise fees 22,784 21,186 16,901 15,292 12,307 Business licenses 23,748 15,905 15,695 14,557 19,958 Hotel/motel room 3,433 3,620 2,860 2,834 3,377 Document transfer 1,028 1,626 1,222 912 1,071 Other 4,628 4,016 2,874 3,262 2,905 Shared revenue: - -
Vehicle license fees 29,343 27,310 27,757 31,839 23,599 Sales and use tax levied by state (1) 76,954 76,239 65,201 56,122 57,151 Other 18,303 -
1,707 (25,552) 14,086 21,759 18,438 44 (8,356) 147 12 (1,602) 9,715 10,369 11,105 9,469 7,810 - - - (547) 500 - - - - - - - - - - Transfers from Successor Agency, Net - - - - - 415 438 1,751 (922) 9,074 341,656 281,232 303,175 301,198 282,489 Business-type activities:
- - - 1,407 1,341 - - - - - Investment earnings 235 (7,018) 57 9,318 7,920 Gain on sale of capital assets - - - (2) - - - - - - - - - - - Transfers (415) (438) 922 (9,074) - - (1,751) - - Total business-type activities (181) (7,456) (1,694) 11,645 188 341,475 273,775 301,481 312,843 282,676 Change in Net Position
Governmental activities 98,459 188,559 83,218 32,950 73,671 Business-type activities 35,655 28,178 31,723 40,299 16,865 Total primary government 134,115 $ 216,737 $ 114,941 $ 73,249 $ 90,536 $ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Total governmental activities
Extraordinary items
Miscellaneous
Special item
Transfers
Grants and contributions not restricted to
Other taxes
Proceeds of long-term debt
Investment earnings
Gain (Loss) on sale of capital assets
Miscellaneous
(Dollar amounts in thousands)
Extraordinary items (2)
changes in net position
Total general revenues and other
(1) Measure A-Public Safety Tax, an additional .75% sales tax approved 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases Special item
(2) In fiscal year 2015 Extraordinary items for Government activities and Business-type activites relate to GASB #58 Bankruptcy, with both principal and interest debt forgiven. GASB #68 Penision obligations being restated to show on balance sheet. 185

ATTACHMENT A
872
2018 2017 2016 2015 2014
37,259$ 33,378$ 39,608$ 35,576$ 34,594$ 212,181 154,932 169,015 123,403 124,806 38,435 45,670 36,344 37,685 51,942 12,301 10,904 10,406 9,098 9,807 23,753 22,481 21,620 20,801 19,456 5,964 4,288 2,216 3,401 14,486 329,894 271,653 279,209 229,964 255,091 Business-type activities:
39,526 42,886 48,001 47,474 44,720 41,648 50,545 58,665 56,153 55,724 4,729 5,288 6,601 7,084 5,758 5,310 5,641 5,384 5,026 5,120 3,299 3,235 3,116 3,374 3,448 Total business-type activities 94,512 107,595 121,767 119,111 114,770 Total expenses 424,406 379,248 400,976 349,075 369,861

Governmental activities:

Charges for services:

General government 16,451 19,184 15,831 15,169 14,785 Public safety 15,309 9,188 13,663 16,863 21,016 Public works 14,914 3,373 8,292 6,105 5,178 Library 595 377 517 441 437 Parks and recreation 12,194 8,765 9,158 6,145 5,655 Operating grants and contributions 12,402 12,565 12,861 18,823 18,840 Capital grants and contributions 21,426 17,591 16,286 34,268 36,052 Total governmental activities 93,292 71,043 76,608 97,814 101,963 Business-type activities:

Charges for services:

Water utility 50,590 42,308 33,277 35,059 37,855 Wastewater utility 68,191 66,833 68,938 65,726 59,953 Stormwater utility 5,683 5,619 5,573 5,569 5,571 Parking Authority 4,447 5,141 4,971 4,170 2,882 Other 1,776 1,675 1,750 1,769 1,870 Operating grants and contributions 3,855 3,889 3,776 5,133 3,865 Capital grants and contributions 6,245 2,971 3,562 2,945 1,112 140,787 128,436 121,847 120,371 113,108 Total program revenues 234,078 199,479 198,455 218,185 215,071 Change in Net Position
Governmental activities (236,603) (200,610) (202,601) (132,150) (153,128) Business-type activities 46,275 20,841 80 1,260 (1,662) Total primary government (190,328) $ (179,769) $ (202,521) $ (130,890) $ (154,790) $ Fiscal Year
Total business-type activities
Last Ten Fiscal Years
Changes in Net Position (Continued)
(Dollar amounts in thousands)
City of Stockton
Table 2
Wastewater utility
Stormwater utility
Parking Authority
Other
Program Revenues
Library
Parks and recreation
Interest and fiscal charges
Total governmental activities
Water utility
Expenses
Governmental activities:

General government
Public safety
Public works
186

ATTACHMENT A
873
2018 2017 2016 2015 2014
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property 33,112$ 32,411$ 30,646$ 29,573$ 28,015$ In lieu of sales tax - 8,775 9,816 9,706 Utility user 35,415 34,455 33,379 32,921 32,370 Sales - levied by City (1) 52,788 42,506 39,070 37,208 15,536 Franchise fees 13,243 13,289 12,397 12,379 11,981 Business licenses 13,507 12,243 11,996 10,805 10,392 Hotel/motel room 3,193 2,997 2,711 2,378 2,080 Document transfer 1,078 801 857 587 564 Other 2,916 1,939 1,801 930 728 Shared revenue: -
Vehicle license fees 29,091 21,423 20,354 19,602 18,069 Sales and use tax levied by state (1) 68,467 49,910 45,097 36,904 35,111 Other 165 44 45 49 253 899 1,966 4,728 1,532 1,128 (203) 578 568 (13,214) (3,712) 4,083 2,820 7,303 16,982 3,042 6,203 - - - - 10,237 - 23,396 - - - - 250,701 - Transfers from Successor Agency, Net 734 - - - - 389 654 (297) 383 1,330 265,082 228,273 219,430 472,932 166,593 Business-type activities:
1,271 1,292 1,239 974 1,166 100 - - - Investment earnings 233 131 2,653 1,172 1,448 Gain on sale of capital assets 20 (1,156) - (3,300) - - - - - 431 3,540 - - - - Transfers (389) (654) 297 (383) (1,330) - - - 9,548 - Total business-type activities 4,774 (387) 4,189 8,011 1,715 269,857 227,886 223,619 480,943 168,308 Change in Net Position
Governmental activities 28,479 27,662 16,829 340,782 13,465 Business-type activities 51,049 20,454 4,271 9,271 53 Total primary government 79,529 $ 48,116 $ 21,100 $ 350,053 $ 13,518 $ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Grants and contributions not restricted to
(Dollar amounts in thousands)
Miscellaneous
Special item
Extraordinary items (2)
Proceeds of long-term debt
Extraordinary items
Transfers
Total governmental activities
Other taxes
Special item
Miscellaneous
Gain on sale of capital assets
Investment earnings
changes in net position
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. 187

ATTACHMENT A
874
2023 2022 2021 2020 2019
General Fund
Nonspendable 2,397$ 2,077$ 2,215$ 5,796$ 3,621$ Restricted 5,218 5,289 4,428 3,998 4,034 Committed 150,811 123,754 77,638 59,714 54,243 Assigned 5,447 4,285 4,526 4,017 4,144 Unassigned 48,490 43,208 42,049 41,085 37,990 Total General Fund 212,364 178,613 130,857 114,611 104,032 All other governmental funds
Nonspendable 1,771 151 152,462 356 356 Restricted 398,166 428,305 222,308 189,758 169,507 Committed - - - - - Assigned - - - - - Unassigned (deficit) (1,344) - - - - Total all other governmental funds 398,593 428,455 374,770 190,114 169,863 Total Fund Balance 610,957$ 607,068$ 505,627$ 304,725$ 273,895$ 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)
188

ATTACHMENT A
875
2018 2017 2016 2015 2014
General Fund
Nonspendable 1,303$ 1,539$ 2,214$ 810$ 500$ Restricted 4,730 4,603 3,549 2,949 3,551 Committed 45,957 56,439 49,088 28,930 34,008 Assigned 2,227 3,922 5,467 - 3,059 Unassigned 36,265 36,184 33,326 38,639 9,751 Total General Fund 90,482 102,687 93,644 71,328 50,869 All other governmental funds
Nonspendable 370 373 382 443 Restricted 117,387 114,254 122,084 104,785 81,435 Committed - - - - Assigned - - - - Unassigned (deficit) - 3,232 - - (20,669) Total all other governmental funds 117,757 117,486 122,457 105,167 61,209 Total Fund Balance 208,239$ 220,173$ 216,101$ 176,495$ 112,078$ 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)
189

ATTACHMENT A
876
2023 2022 2021 2020 2019
Revenues:

Taxes:

Property 42,578 $ 41,066 $ 38,523 $ 36,692 $ 35,342 $ In lieu of sales tax -
Utility user 42,445 38,328 36,414 34,537 34,252 Sales (levied by City) (1) 90,305 82,951 68,639 57,077 57,911 Franchise fees 22,547 19,932 16,901 15,292 12,307 Business license 23,748 15,906 15,695 14,557 13,215 Hotel/motel room 3,433 3,620 2,860 2,834 3,377 Document transfer 1,028 1,626 1,222 912 1,071 Other 4,628 4,016 2,874 3,262 2,905 Licenses and permits 7,762 9,129 7,670 6,847 6,744 Federal grants and subsidies 34,803 84,812 30,339 15,578 16,517 Other shared revenue (sales and use tax levied by state) (1) 76,954 76,239 65,201 56,122 51,577 Other governmental 76,933 85,662 99,161 59,367 66,594 Charges for services 35,677 39,532 31,330 26,904 27,227 Fines and forfeitures 317 2,001 379 1,101 1,277 Use of money and property 11,704 9,955 5,731 10,569 12,460 Investment income: - -
Interest income (248) (13,673)
7,785 14,075 11,758
Refunds and reimbursements 1,029 550 602 6,633 6,614 Miscellaneous 8,951 8,258 10,189 8,981 8649 Total revenues 484,596 509,910 441,514 371,340 369,795 Expenditures:

Current:

General government 53,152 76,830 72,185 30,148 30,537 Public safety 227,859 206,107 205,923 193,778 189,824 Public works 35,659 34,263 41,960 20,120 19,793 Library 15,643 14,659 12,762 14,400 13,789 Parks and recreation 17,601 14,552 8,207 25,920 26,006 Capital outlay 65,959 53,034 26,127 31,225 35,158 Debt service: - -
Principal retirement 3,519 1,943 1,806 1,699 11,477 Cost of issuance - -
Interest and fiscal charges 9,807 7,397 4,617 5,229 5,627 Total expenditures 429,199 408,785 373,587 322,521 332,211 Excess (deficiency) of revenues
over (under) expenditures 55,397$ 101,125$ 67,926$ 48,819$ 37,584$ City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)
190

ATTACHMENT A
877
2023 2022 2021 2020 2019
Other financing sources (uses):

Capital contributions - $ - $ - $ - $ - $ Transfers in 42,616 27,618 19,903 18,062 31,310 Transfers out (57,610) (27,480) (41,452) (36,445) (29,479) Transfers from successor Agency - - - - - Special item - - - - - Bond insurers proceeds - 163 - - - Operating transfers out to a component unit - - - - - Issuance of long-term debt 1,344 - - - - Proceeds of current refunding bonds - - - - - Sales of capital assets 44 17 2,419 393 52 Advances from other funds - - - - - Payment to refunded bond escrow agent - - - - - Total other financing sources (uses) (13,606) 317 (19,131) (17,990) 1,884 Special items
Net change in fund balance 41,791 101,442 48,796 30,830 39,468 Fund balance, beginning of year, original 607,069 505,627 456,831 273,895 234,427 Prior period restatement (37,903) - - - Fund balance, beginning of year, restated 569,166 505,627 456,831 273,895 234,427 Fund balance, end of year 610,957$
607,069$ 505,627$ 304,725$ 273,895$ Debt service as a percentage of noncapital expenditures 3.8% 2.7% 1.9% 2.4% 6.1% 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
191

ATTACHMENT A
878
2018 2017 2016 2015 2014
Revenues:

Taxes:

Property 33,068 $ 32,411 $ 30,646 $ 29,573 $ 28,014 $ In lieu of sales tax 44 8,775 9,816 9,706 Utility user 35,415 34,455 33,379 32,921 32,369 Sales (levied by City) (1) 52,788 42,506 39,070 37,208 15,536 Franchise fees 13,243 13,289 12,397 12,380 11,981 Business license 13,507 12,243 11,996 10,805 10,392 Hotel/motel room 3,193 2,997 2,711 2,378 2,080 Document transfer 1,126 801 856 587 565 Other 2,916 1,939 1,535 930 728 Licenses and permits 6,214 5,867 5,347 4,398 3,808 Federal grants and subsidies 13,235 12,859 10,470 21,796 22,453 Other shared revenue (sales and use tax levied by state) (1) 53,817 49,910 45,097 36,904 35,111 Other governmental 57,778 37,574 36,696 41,806 47,951 Charges for services 29,377 22,920 26,473 21,351 19,410 Fines and forfeitures 1,247 1,164 624 3,814 2,925 Use of money and property 9,528 8,197 8,172 9,318 9,536 Investment income:

Interest income 1,063 1,762 3,088 916 650 Refunds and reimbursements 7,887 6,077 5,188 12,710 2,401 Miscellaneous 8,596 6,745 11,246 16,674 7,707 Total revenues 344,044 293,716 293,766 306,285 263,323 Expenditures:

Current:

General government 26,761 29,235 27,229 34,652 25,510 Public safety 184,426 171,073 150,853 141,542 129,030 Public works 18,852 15,818 14,861 14,152 14,458 Library 12,416 10,619 10,107 9,880 9,793 Parks and recreation 22,462 20,493 19,295 19,094 17,202 Capital outlay 51,210 31,407 23,857 31,345 43,273 Debt service: -
Principal retirement 2,204 13,593 3,325 8,217 9,589 Cost of issuance - - 2,119 - - Interest and fiscal charges 5,767 2,872 - 3,229 4,661 Total expenditures 324,098 295,110 251,646 262,111 253,516 Excess (deficiency) of revenues
over (under) expenditures 19,946$ (1,394)$ 42,120$ 44,174$ 9,807$ (Dollar amounts in thousands)
City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
192

ATTACHMENT A
879
2018 2017 2016 2015 2014
Other financing sources (uses):

Capital contributions - $ - $ - $ - $ - $ Transfers in 19,077 23,347 15,916 16,860 13,497 Transfers out (37,913) (12,966) (18,810) (20,235) (13,031) Transfers from successor Agency 734 - - - - Special item 6,203 - - - - Bond insurers proceeds - - - 29,178 7,800 Operating transfers out to a component unit - - - - - Issuance of long-term debt - - - - - Proceeds of current refunding bonds - - - - - Sales of capital assets 800 492 379 521 200 Advances from other funds - - - - - Payment to refunded bond escrow agent - - - (6,080) - Total other financing sources (uses) (11,099) 10,873 (2,515) 20,244 8,466 Special items - - - Net change in fund balance 8,847 9,479 39,605 64,417 18,273 Fund balance, beginning of year, original 225,581 216,100 176,495 112,078 93,806 Prior period restatement - - - - - Fund balance, beginning of year, restated 225,581 216,100 176,495 112,078 93,806
Fund balance, end of year 234,427$ 225,579$ 216,100$ 176,495$ 112,078$ Debt service as a percentage of noncapital expenditures 3.0% 6.7% 2.4% 5.2% 7.3% Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatement. (1) Measure A-Public Safety Tax, an additional .75% sales tax approved in 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases
Fiscal Year
(Dollar amounts in thousands)
City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
193

ATTACHMENT A
880
2023 2022 2021 2020 2019
Property (1) 42,578$ 41,066$ 38,523$ 36,692$ 35,342$ In lieu of sales tax - - - - - Utility user 42,445 38,328 36,414 34,537 34,252 Sales (levied by city) (2) 90,305 82,951 68,639 57,077 57,911 Franchise fees 22,547 19,932 16,901 15,292 12,307 Business licenses 23,748 15,905 15,695 14,557 13,215 Hotel/motel room 3,433 3,620 2,860 2,834 3,377 Document transfer 1,028 1,626 1,222 912 1,071 Other 4,628 4,016 2,874 3,262 2,905 Totals 230,713$ 207,444$ 183,127$ 165,163$ 160,379$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 5
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) Property taxes decrease d beginning in 2009 due to declining residential home values and foreclosures, resulting in a devaluation o f 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.
194

ATTACHMENT A
881
2018 2017 2016 2015 2014
% Change
2014
to 2023
Property (1) 33,068 $ 32,411 $ 30,646 $ 29,573 $ 28,014 $ 52% In lieu of sales tax 44 - 8,775 9,816 9,706 -100% Utility user 35,415 34,455 33,379 32,921 32,369 31% Sales (levied by city) (2) 52,788 42,506 39,070 37,208 15,536 481% Franchise fees 13,243 13,289 12,397 12,380 11,981 88% Business licenses 13,507 12,243 11,995 10,805 10,392 129% Hotel/motel room 3,193 2,997 2,711 2,378 2,080 65% Document transfer 1,126 801 856 587 565 82% Other 2,916 1,939 1,535 930 728 536% Totals 155,301$ 140,642$ 141,364$ 136,598$ 111,371$ 107% 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 decrease d beginning in 2009 due to declining residential home values and foreclosures, resulting in a devaluation o f 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.
195

ATTACHMENT A
882
2023 2022 2021 2020 2019
Secured roll 28,140,015$ 26,379,229$ 24,952,342$ 23,628,432$ 22,488,506$ Utility roll 6,402 6,496 6,507 5,827 5,816 Unsecured roll 1,824,858 1,563,966 1,507,064 1,439,016 1,610,921 Gross assessed value 29,971,275 27,949,691 26,465,914 25,073,275 24,105,243 Less exemptions (1) 2,062,260 2,020,034 1,980,526 1,948,125 1,917,101 Net assessed value 27,909,014 25,929,657 24,485,388 23,125,150 22,188,142 Land 7,695,368 7,164,141 6,823,616 6,506,827 6,280,943 Improvements 21,012,393 19,716,382 18,716,229 17,635,057 16,582,837 Personal property 1,263,513 1,069,169 926,070 931,391 1,241,463 Gross assessed value 29,971,275 27,949,691 26,465,914 25,073,275 24,105,243 Less exemptions (1) 2,062,260 2,020,034 1,980,526 1,948,125 1,917,101 Net assessed value 27,909,014$ 25,929,657$ 24,485,388$ 23,125,150$ 22,188,142$ Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%

Source: San Joaquin County Auditor-Controller's Office City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) For FY 2023, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $212,688 and other - $1,849,572 = $2,062,260 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. 196

ATTACHMENT A
883
2018 2017 2016 2015 2014
Secured roll 21,378,475 $ 20,299,172 $ 19,473,994 $ 18,496,369 $ 16,981,109 $ Utility roll 5,863 5,833 6,199 6,209 6,228 Unsecured roll 1,629,758 1,596,101 1,651,844 1,638,161 1,557,131 Gross assessed value 23,014,096 21,901,106 21,132,037 20,140,739 18,544,468 Less exemptions (1) 1,532,852 1,786,986 1,729,742 1,717,223 1,699,348 Net assessed value 21,481,244 20,114,120 19,402,295 18,423,516 16,845,120 Land 6,081,944 5,713,082 5,420,167 4,978,511 4,597,437 Improvements 15,666,837 15,004,037 14,501,054 13,928,278 12,868,329 Personal property 1,265,315 1,183,987 1,210,816 1,233,950 1,078,702 Gross assessed value 23,014,096 21,901,106 21,132,037 20,140,739 18,544,468 Less exemptions (1) 1,532,852 1,786,986 1,729,742 1,717,223 1,699,348 Net assessed value 21,481,244$ 20,114,120$ 19,402,295$ 18,423,516$ 16,845,120$ Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%
Source: San Joaquin County Auditor-Controller's Office City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) For FY 2023, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $212,688 and other - $1,849,572 = $2,062,260 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. 197

ATTACHMENT A
884
Fiscal Year
Basic
Countywide
Levy City Total Direct
Stockton Unified
School District
San Joaquin
Delta College
District Total
2023 1.0000 - 1.0000 0.2189 0.0144 1.2333 2022 1.0000 - 1.0000 0.1922 0.0163 1.2085 2021 1.0000 - 1.0000 0.2271 0.0183 1.2454 2020 1.0000 - 1.0000 0.2455 0.0199 1.2654 2019 1.0000 - 1.0000 0.2443 0.0225 1.2668 2018 1.0000 - 1.0000 0.2054 0.0180 1.2234 2017 1.0000 - 1.0000 0.2537 0.0180 1.2717 2016 1.0000 - 1.0000 0.2710 0.0198 1.2908 2015 1.0000 - 1.0000 0.2280 0.0233 1.2513 2014 1.0000 - 1.0000 0.2105 0.0194 1.2299 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)
198

ATTACHMENT A
885

2023 2014
Taxable
Assessed Value Rank
Taxable
Assessed Value Rank
Wal Mart Real Estate Bus Trust/Sam's 207,617$ 1 0.795 % 56,763 8 0.370 % Prologis 201,251 2 0.771 % 51,012 10 0.333 % Patmon Company Inc 149,501 3 0.573 % -
Excel Stockton LLC 126,103 4 0.483 % 119,813 1 0.782 % EGMR Norcal Logistics Center LLC 108,519 5 0.416 % - Central Valley Indust core holdings LLC 96,237 6 0.369 % 54,442 9 0.355 % Wilshire Newcastle road owner LLC 96,000 7 0.368 % ARC BBSTNCA001 84,084 8 0.322 % 66,430 6 0.433 % Simpson Manufacturing Co Inc 77,020 9 0.295 % 85,055 2 0.555 % Trader Joes company 72,794 10 0.279 % -
Buzz Oates LLC - 0.000 % 72,793 3 0.475 % Diamond Walnut Growers Inc - 0.000 % 69,481 4 0.453 % Corn Products International Inc - 0.000 % 67,429 5 0.440 % A G Spanos Construction Inc - 0.000 % 65,548 7 0.428 % Fresh and Easy Neighborhood Market Inc. - 0.000 % - - % Inland Western Stockton Airport Way II LLC - 0.000 % - - % WTM Glimcher LLC - 0.000 % - - % Principal Secured Property Valuation 1,219,126 4.669 % 708,766 4.624 % Other Secured Taxpayers 26,927,290 103.117 16,272,343 106.160 Total Secured Property Valuation Before Exemptions 28,146,416 107.786 % 16,981,109 110.784 % Less Exemptions relative to secured tax roll (1) 2,033,076 7.786 1,653,022 10.784 Total Secured Property Valuation 26,113,340$ 100.000 % 15,328,087$ 100.000 % (1) Exemptions relative to secured tax roll: FY 2023 - homeowners - $211,611 and other - $1,820,465 = $2,033,076 FY 2014 - homeowners - $234,275 and other - $1,418,747 = $1,653,022 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 Nine Years Ago
(Dollar amounts in thousands)
Fiscal Year
199

ATTACHMENT A
886
Amount Amount
2023 39,453$ 39,453$ 100 % - 39,453$ 100 % 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 % Percent of
Levy
Total Collections
to Date
(1) Per agreement with San Joaquin County; the County provides the City with 100% of the amount owed for secured properties, regardless of collection status. In exchange, the County is entitled to 100% of delinquency and penalty revenues collected.

City of Stockton
Table 9
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
(Dollar amounts in thousands)
Collected Within the Fiscal Year of the
Levy
Source: San Joaquin County Auditor-Controller’s Office Collections in
Subsequent
Years
Secured Taxes
Levied for the
Fiscal YearFiscal Year
Percent of
Levy (1)
200

ATTACHMENT A
887
2023 2022 2021 2020 2019
Type of Customer
Residential 7,516,755 cf 8,204,224 cf 10,610,177 cf 7,997,883 cf 7,669,451 cf Institutional 782,656 858,661 1,105,150 827,124 789,265 Commercial/Industrial 1,567,709 1,707,532 2,018,500 1,588,605 1,645,890 Irrigation 1,291,195 1,603,842 2,025,832 1,457,258 1,294,982 Total 11,158,315 cf 12,374,259 15,759,659 cf 11,870,870 cf 11,399,588 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
201

ATTACHMENT A
888
This page intentionally left blank.
202

ATTACHMENT A
889
Wastewater
Fiscal Year Monthly Base Rate
Tier 1 Additional Per
100 cf**
Tier 2 Additional Per
100 cf** Monthly Base Rate
2023 35.30$ 2.49 $ 2.96 $ 52.53 $ 2022 33.90$ 2.47 $ 2.95 $ 49.56 $ 2021 33.90$ 2.47 $ 2.95 $ 46.75 $ 2020 32.90$ 2.39 $ 2.86 $ 44.10 $ 2019 31.95$ 2.31 $ 2.76 $ 38.36 $ 2018 31.00$ 2.23 $ 2.66 $ 38.36 $ 2017 28.00$ 2.00 $ 2.39 $ 38.36 $ 2016 22.25 $ 1.67 $ - $ 37.76 $ 2015 21.90 $ 1.64 $ - $ 37.09 $ 2014 21.51 $ 1.61 $ - $ 34.03 $ *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
203

ATTACHMENT A
890
Fiscal
Year
Revenue*
Bonds (1)
Certificates
of
Participation
Notes
Payable / Equip.

Leases
/Subscription
Settlements
Pension
Bonds*
Total
Governmental
Activities
2023 -$ - $ 11,624$ 52,884 $ 64,508 $ 2022 -$ - $ 4,700 $ 53,084 $ 57,784 $ 2021 -$ - $ 6,321 $ 53,248 $ 59,569 $ 2020 -$ - $ 8,196 $ 53,378 $ 61,574 $ 2019 -$ - $ 9,990 $ 53,478 $ 63,468 $ 2018 9,425$ - $ 15,853$ 53,547 $ 78,825 $ 2017 9,915$ - $ 18,130$ 53,589 $ 81,634 $ 2016 10,385 $ 11,500 $ 18,298 $ 53,606 $ 93,789 $ 2015 10,835 $ 11,890 $ 18,095 $ 54,530 $ 95,350 $ 2014 75,285 $ 12,265 $ 20,157 $ 121,770 $ 229,477 $ *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
City of Stockton
Table 12
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
(1) These ratios are calculated using the latest available data, personal income for fiscal year 2017 and population for fiscal year 2019.

Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements, Note 8-Long-Term Debt Governmental Activities*
204

ATTACHMENT A
891
Fiscal
Year
Revenue
Bonds
Certificates
of
Participation
Notes
Payable / Equip.

Leases
/Subscription
Total
Business-type
Activities Total
Personal
Income
(thousands
of dollars) Population
Amount
Per
Capita (2)
2023 261,508 $ -$ 121,398$ 382,906$ 447,414 $ 35,926,949$ 1.25 % 319,731 1,399 $ 2022 274,233 $ -$ 121,564$ 395,797$ 453,581 $ 35,926,949$ 1.26 % 322,489 1,407 $ 2021 261,845 $ -$ 129,381$ 391,226$ 450,795 $ 35,926,949$ 1.25 % 320,804 1,405 $ 2020 144,710 $ -$ 129,380$ 274,090$ 335,664 $ 35,926,895$ 0.93 % 318,522 1,054 $ 2019 279,039 $ -$ 10,870$ 289,909$ 353,377 $ 31,920,000$ 1.11 % 316,410 1,117 $ 2018 312,700 $ -$ 10,870$ 323,570$ 402,395 $ 21,591,742$ 1.86 % 315,103 1,277 $ 2017 326,165 $ -$ 10,870$ 337,035$ 418,669 $ 28,150,538$ 1.49 % 320,554 1,306 $ 2016 336,218 $ -$ 10,954$ 347,172$ 440,961 $ 21,591,742$ 2.04 % 315,592 1,397 $ 2015 343,926 $ -$ 11,040$ 354,966$ 450,316 $ 21,591,742$ 2.09 % 306,999 1,467 $ 2014 284,225
$ 81,270$ 11,123$ 376,618$ 606,095 $ 21,591,742$ 2.81 % 300,899 2,014 $ *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
City of Stockton
Table 12
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
Business-type Activities
Percent
of
Personal
Income (2)
Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements, Note 8-Long-Term Debt (1) These ratios are calculated using the latest available data, personal income for fiscal year 2017 and population for fiscal year 2019. 205

ATTACHMENT A
892
General Bonded Debt Outstanding*
Fiscal Year
Lease
Revenue
Bonds
Certificates
of
Participation
(2)
Pension
Obligation
Bonds (1)
Redevelopment
Agency
Bonds* Total
Amount
Per
Capita
2023 - $ -$ 52,885$ -$ 52,885 $ 0.002 % 0.17$ 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$ (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 206

ATTACHMENT A
893
Total Debt Percentage City’s share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 Applicable (1) Debt 6/30/2023 San Joaquin Delta Community College District 175,675,000 $ 26.139 % 45,919,688$ Stockton Unified School District 466,597,362 84.125 392,525,031 Lodi Unified School District 283,480,000 34.036 96,485,253 Lodi Unified School District School Facilities Improvement District No. 1 40,075,000 85.721 34,352,691 Lincoln Unified School District 62,180,787 86.494 53,782,650 Lincoln Unified School District Community Facilities District No. 1 13,526,567 79.845 10,800,287 Manteca Unified School District 211,129,885 12.541 26,477,799 Manteca Unified School District Community Facilities District No. 1989-1 11,243,715 100.000 11,243,715 Tracy Joint Unified School District and School Facilities Improvement Dist. No.3 128,079,900 0.003 & 0.006 6,820 City of Stockton Community Facilities District No. 99-02 22,585,000 100.000 22,585,000 City of Stockton Community Facilities District No. 2001-1 (Spanos Park West) 9,430,358 100.000 9,430,358 City of Stockton Community Facilities District No. 2003-1 1,447,060 100.000 1,447,060 City of Stockton Community Facilities District No. 2005-1 8,905,000 100.000 8,905,000 City of Stockton Community Facilities District No. 2006-1 2,163,162 100.000 2,163,162 City of Stockton Community Facilities District No. 2006-2 2,826,000 100.000 2,826,000 City of Stockton Community Facilities District No. 2006-3 4,313,598 100.000 4,313,598 City of Stockton Community Facilities District No. 2018-1 3,250,000 100.000 3,250,000 City of Stockton Community Facilities District No. 2018-2, I.A. 1 & 2 23,190,000 100.000 23,190,000 City of Stockton Community Facilities District No. 2019-1 9,915,000 100.000 9,915,000 City of Stockton 1915 Act Bonds 15,233,528 100.000 15,233,528 Reclamation District No. 2042 Community Facilities District No. 2001-1 3,693,924 18.211 672,700 San Joaquin Area Flood Control District Smith Assessment District 21,705,000 57.451 12,469,740 San Joaquin County Reclamation District No. 17 Assessment District 20,515,719 27.618 5,666,031 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 793,661,111
OVERLAPPING GENERAL FUND DEBT:

San Joaquin County Certificates of Participation 54,940,000 28.297 % 15,546,372 Lincoln Unified School District Certificates of Participation 7,630,000 86.494 6,599,492 Lodi Unified School District Certificates of Participation 8,590,000 34.036 2,923,692 Manteca Unified School District General Fund Obligations 13,979,000 12.541 1,753,106 Stockton Unified School District Certificates of Participation 24,160,000 84.125 20,324,600 Lathrop-Manteca Rural Fire Protection District certificates of Participation 3,410,000 0.022 750 City of Stockton Bond Insurer Settlement Agreement Liability 52,884,811 100.000 52,884,811 TOTAL OVERLAPPING GENERAL FUND DEBT 100,032,823
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
2016 Tax Allocation Revenue Bonds Series A 73,310,000 100.000 % 73,310,000 2016 Tax Allocation Revenue Bonds Series B 7,340,000 100.000 7,340,000 TOTAL OVERLAPPING TAX INCREMENT DEBT 80,650,000
TOTAL DIRECT DEBT 52,884,811
TOTAL OVERLAPPING DEBT 921,459,123
GROSS COMBINED TOTAL DEBT (2) 974,343,934
2022-23 Assessed Valuation (3): 28,121,702$
2022-23 Population
Debt Ratios Per Ca
pita Assessed Value
Total Gross Debt (2) 974,343,934$ 3,047$ 3464.74 % Ratios to 2022-23 Assessed Valuation: Total Overlapping Tax and Assessment Debt 793,661,111 2,482 2822.24 Ratios to Adjusted Assessed Valuation: Combined Direct Debt 52,884,811 165 188.06 (1) Percent of overlapping agency's assessed valuation located within boundaries of the City. (3) Represents Gross Assessed Valuation after deducting $2,062,062 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 $1,849,572 Other Exemptions Valuation ) (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease 207

ATTACHMENT A
894
2023 2022 2021 2020 2019
Assessed valuation (1) 28,121,702$ 26,144,691$ 24,701,296$ 23,343,395$ 22,407,298$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 7,030,426 6,536,173 6,175,324 5,835,849 5,601,825 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,054,564 980,426 926,299 875,377 840,274 Total net debt applicable to limit - - Legal debt margin 1,054,564$ 980,426$ 926,299$ 875,377$ 840,274$ Legal debt margin/debt limit 100% 100% 100% 100% 100%
Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office
City of Stockton
Table 15
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within the City boundaries, adjusted for subsequent legislative actions. In accordance with California Government Code Section 43605, only the City's general obligation bonds are subject to the legal limit. The City of Stockton does carry bonded debt secured by special assessments and other revenue sources, but at this time, doesn't have any outstanding general obligation bonds. The City is not at risk of exceeding its legal debt limit. (1) Reflects City assessed valuation excluding other exemptions of $1,764,618,090. Redevelopment Agency was dissolved in 2013. 208

ATTACHMENT A
895
2018 2017 2016 2015 2014
Assessed valuation (1) 21,362,446$ 20,337,129$ 19,628,594$ 18,653,199$ 17,079,491$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 5,340,612 5,084,282 4,907,149 4,663,300 4,269,873 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 801,092 762,642 736,072 699,495 640,481 Total net debt applicable to limit - - - - - Legal debt margin 801,092$ 762,642$ 736,072$ 699,495$ 640,481$ Legal debt margin/debt limit 100% 100% 100% 100% 100%
Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office
City of Stockton
Table 15
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) Reflects City assessed valuation excluding other exemptions of $1,764,618,090. Redevelopment Agency was dissolved in 2013.

Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within the City boundaries, adjusted for subsequent legislative actions. In accordance with California Government Code Section 43605, only the City's general obligation bonds are subject to the legal limit. The City of Stockton does carry bonded debt secured by special assessments and other revenue sources, but at this time, doesn't have any outstanding general obligation bonds. The City is not at risk of exceeding its legal debt limit. 209

ATTACHMENT A
896
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Water Revenue Bonds
2023 68,359$ 19,734$ 48,625$ 6,205$ 8,096$ 14,301$ 3.40 2022 74,411$ 20,755$ 53,656$ 5,910$ 8,383$ 14,293$ 3.75 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 (Continued)
* Coverage requirement is 1.15, however, it is applied in sequence, first to the senior, and then to the subordinate issues.

Done in sequence both senior and subordinate issues met the coverage requirement in both years.

Note: Net Available Revenue for the Water Bonds provides a 3.35 debt coverage ratio for the senior lien issues and a 1.16 debt coverage ratio for the subordinate lien issues.

City of Stockton
Table 16
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Dollars amounts in thousands)
210

ATTACHMENT A
897
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Wastewater Certificates of Participation
2023 88,696$ 53,132$ 35,563$ 4,410$ 3,374$ 7,784$ 4.57 2022 83,916$ 53,329$ 30,587$ 4,195$ 3,500$ 7,695$ 3.97 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 City of Stockton
Table 16
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
Source: City of Stockton Department of Administrative Services Includes all nongeneral obligation long term debt backed by pledged revenues.

Details regarding the City's outstanding debt can be found in the Note 8 - Long-Term Debt of these financial statements. (1) Total operating expenses exclusive of depreciation and amortization. (Dollars amounts in thousands)
211

ATTACHMENT A
898
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Parking Authority
2023 5,766$ 419$ 1,587$ 360$ 1,162$ 1,522$ 1.04 2022 5,902$ 3,651$ 2,251$ 245$ 1,174$ 1,419$ 1.59 2021 4,628$ 3,007$ 1,621$ 1,194$ 1,194$ 1.36 (2) Total operating expenses exclusive of depreciation and amortization. (1 )Includes all nongeneral obligation long term debt backed by pledged revenues. Please not that principal and interest for an internal loan subordinated to the 2020 Parking Revenue Bonds is not included. Had payments for that loan been included, coverage would have been 0.81 Details regarding the City's outstanding debt can be found in the Note 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)
212

ATTACHMENT A
899
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
2023 319,731 18,475 $ 57,783 $ 7.2 % 134,800 103,808 3.13 63,916 $ 104,877 2022 322,489 16,710 $ 51,816 $ 5.7 % 131,200 103,318 3.15 58,393 $ 105,335 2021 320,804 15,122 $ 47,139 $ 10.3 % 132,463 101,960 3.25 54,614 $ 98,646 2020 318,522 16,346 $ 51,318 $ 13.1 % 130,300 101,235 3.26 51,318 $ 101,162 2019 316,410 13,549 $ 42,822 $ 7.0 % 129,000 100,877 3.39 48,396 $ 105,705 2018 315,103 12,748 $ 40,458 $ 6.3 % 134,500 100,593 3.15 46,033 $ 99,347 2017 320,554 12,428 $ 38,770 $ 7.3 % 127,000 100,254 3.23 44,797 $ 71,491 2016 315,592 11,404 $ 36,136 $ 8.3 % 127,900 100,146 3.20 45,347 $ 71,738 2015 306,999 10,670 $ 34,755 $ 8.5 % 127,000 100,097 3.23 46,831 $ 66,037 2014 300,899 9,937 $ 33,024 $ 12.8 % 125,600 100,025 3.23 47,246 $ 69,183 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.
213

ATTACHMENT A
900
Percent Percent
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Stockton Unified School District 5,341 1 3.96% 3,366 3 2.68% Amazon 4,650 2 3.45%
St. Joseph’s Medical Center 3,200 3 2.37% 4,600 2 3.66% San Joaquin County Office of Education 2,436 4 1.81% 4,720 1 3.76% City of Stockton 2,138 5 1.59% 1,862 4 1.48% University of the Pacific 1,816 6 1.35% 900 9 0.72% Pacific Gas and Electric 1,550 7 1.15% 1,100 6 0.88% Lincoln Unified School District 1,125 8 0.83% 631 10 0.50% Kaiser Permanente 1,065 9 0.79% 1,065 7 0.85% San Joaquin Delta College 813 10 0.60% 1,000 8 0.80% Dameron Hospital 1,200 5 0.96%
O'Reilly Auto Parts
O-G Packing Company
Diamond Walnut
Total 24,134 17.90% 20,444 16.28%
Sources: San Joaquin Partnership Survey, August 2023
City of Stockton ACFR, 2014
City of Stockton
Table 18
Principal Employers
2023 2014
Current Year and Nine Years Ago
Note: Principal employers are based on best available information. 214

ATTACHMENT A
901
2023 2022 2021 2020 2019
Function/Program/Department:

Admin Services 77 73 78 74 73
City Attorney 11 9 10 12 10
City Clerk 8777 5
City Council/Mayor 4434 3
City Manager 29 32 30 26 28
Community Development 46 42 40 42 38
Community Services 105 102 101 101 98
Human Resources 29 30 22 32 25
Information Technology 32 37 39 41 40
Police:

Sworn 352 405 433 432 469
Non-sworn 173 175 189 216 193
Animal control 9 6 11 12 11
Total Police 534 586 633 660 673
Fire:

Firefighters-sworn 196 165 171 160 177
Firefighters-auxiliary 10 41 0 21 32
Non-sworn personnel 46 34 34 32 30
Total Fire 252 240 205 213 239
Public Works 142 140 135 135 141
Economic Development 23 20 20 18 17
Water Utility 41 47 48 47 47
Wastewater Utility 150 147 147 142 144
Stormwater Utility 4354 4
Total 1487 1519 1523 1558 1,585
*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
215

ATTACHMENT A
902
2023 2022 2021 2020 2019
General government:

Building permits issued 9,022 7,714 8,815 7,378 7,380 Business tax certificates:

Retail sales and service 5,345 5,109 6,434 7,805 5,707 Rental Properties - Commercial and Residential 2,495 2,495 4,267 4,491 4,165 Wholesale 2,116 319 443 393 404 Manufacturers and processors 165 121 152 149 159 Professions 1,391 1,289 1,760 1,561 1,614 Miscellaneous contractors, peddlers, delivery vehicles, etc. 4,810 5,219 5,640 4,900 4,579 Improvement district and hotel/motel room tax
Utility billing/customer service:

Utility bills issued 1,032,007 1,040,607 1,186,454 1,000,452 1,051,220 Utility accounts opened and closed 7,918 19,933 46,905 17,582 20,818 New service locations (water) added 427 411 378 283 245 Delinquency Notices Sent - Active Accounts - - - 75,687 82,303 Water Service Terminated for Non-Payment - - - 3,055 4,989 Utility customer service calls received 35,090 59,951 49,999 45,231 54,695 Utility customers using automated voice response 611,396 678,091 802,378 709,134 849,706 Utility Customers Using Online Pmt/Account Access 32,850 32,850 44,467 32,852 32,893 Miscellaneous accounts receivable bills issued 15,751 10,005 14,770 14,024 37,057 Public safety:

Police:

Major reported crimes 13,420
12,250 12,548 15,654 17,233
Total arrests 12,115 12,915 8,272 11,152 10,945 Dispatched calls for service 185,790 204,270 207,355 176,311 183,834 Fire:

Interior structure fire calls 283 332 293 398 364 Non-structural fire calls 3,365 2,616 3,895 5,719 3,254 Hazardous materials calls 368 252 301 593 331 Emergency medical calls 17,692 19,557 18,485 34,287 26,129 Total emergency calls 42,613 46,756 51,515 57,396 51,613 Total number of units dispatched 52,302 57,198 54,470 60,162 61,026 Public works:

Miles of streets resurfaced 15 26 22 28 7 Fleet job orders completed 4,786 5,725 6,617 7,764 8,765 City of Stockton
Table 20
Operating Indicators by Function/Program/Department
Last Five Fiscal Years
Fiscal Year
216

ATTACHMENT A
903
2023 2022 2021 2020 2019
Library:

Registered borrowers 143,604 145,990 155,999 152,726 175,374 Circulation of library materials 1,175,080 1,021,233 576,605 943,196 1,356,142 Reference, research and informational questions answered 95,438 61,020 43,122 70,583 104,670 Annual attendance at libraries 615,282 425,695 120,679 578,193 793,255 Number of programs offered 4,037 1,719 246 3,110 4,416 Annual attendance at programs 84,869 38,640 5,831 60,066 94,216 Parks and Recreation:

Golf rounds:

Swenson Park golf course 55,898 59,076 79,968 65,489 50,290 Van Buskirk golf course - - - 1,904 9,990 Trees planted 348 106 20 3 7 Heritage tree removal-permits issued - - - 9 5 After school program registration (number of participants) 17,285 11,558 471 16,153 21,728 Day camp participants 2,626 2,703 444 2,753 3,685 Instructional classes 1,791 2,036 - 1,781 2,986 Softball/baseball diamonds bookings 204 169 41 142 147 Showmobile (Mobile Stage) bookings - 15 1 15 17 Community center bookings 515 423 - 636 635 Picnic facility bookings 240 305 7 172 306 Adult sports (number of teams):

Softball 148 153 45 57 101 Basketball 73 63 - 16 23 Volleyball 9 9 - - - Youth sports (basketball, track, soccer, baseball, volleyball, flag football) (number of participants) 1,773 1,397 375 1,351 2,997 Table 20
Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
City of Stockton
217

ATTACHMENT A
904
Parks and Recreation (cont.): 2023 2022 2021 2020 2019
Admissions to:

Pixie Woods 58,694 14,235 973 8,995 15,480 Senior Center memberships 877 1,131 - 1,075 615 Civic Auditorium bookings 143 120 66 116 133 Parks and Recreation sponsored events 82 5 1 15 22 Weber Point Events Center bookings 23 16 1 15 15 Economic Development: (1)
Rental Housing Units - 105 - 127 51 Owner Housing (Emergency Repair or Rehabilitation) 3 1 2 2 5 Down Payment Assistance - - - - 3 Special Needs (Homes Repaired or Rehabilitated) - - - - 2 Public Facilities (Rehabilitated or Constructed) - 1 - 5 1 Façade Program (Commercial Façade Repair/Rehabilitated) 4 1 2 2 1 Public Services Provided 100,341 712 83,553 47,605 23,760 Homeless Services Provided 10,182 7,040 4,806 5,413 4,859 Meals Provided to Homeless 4,708 249,455 126,408 41,882 39,848 Jobs Created and/or Retained - - 1 2 - Business Assisted (Entrepreneur Program) 157 175 157 229 292 Water utility:

New connections (DUE's) (2) 338 473 589 105 221
Water main breaks 27 26 18 15 21
Wastewater utility:

Average daily influent (million gallons per day) 27mgd 25mgd 25mgd 27 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. 218

ATTACHMENT A
905
2023 2022 2021 2020 2019
General government:

Land use-square miles:

Residential 22 22 24 25 25
Mixed use 4444 4
Commercial 5544 4
Industrial 13 13 14 13 13
Institutional 6644 4
All other uses 4433 3
Total square miles 54 54 53 53 53
Public safety:

Police:

Facilities:

Stations and substations 1111 1
Animal control facility 1111 1
Police training facility (pistol range) 1111 1
Vehicles:

Marked patrol cars 189 153 181 212 192
Motorcycles and scooters 31 27 27 27 32
Animal control vehicles 12 12 11 9 8
VIPS vehicles 7656 7
Other automobiles 226 158 198 213 231
Other mobile units (all others) 17 24 24 15 22
Public area security cameras 416 372 356 356 345
Fire:

Fire stations 12 12 12 12 12
Training facilities 1111 1
Fire hydrants 9335 9302 9220 9177 9,218
Public works:

Miles of streets 781 781 781 769 769
Traffic signals 311 317 316 316 310
Street light fixtures 19,325 19,296 19,279 19,279 19,208 Rectangular Rapid flashing Beaconns 65 - - - - City of Stockton
Table 21
Capital Asset Statistics by Function/Program/Department Last Five Fiscal Years
Fiscal Year
219

ATTACHMENT A
906
2023 2022 2021 2020 2019
Parks and recreation:

Arena 1111 1
Ballpark 1111 1
Baseball/softball diamonds 54 54 54 54 54
Bike/jogging paths (miles) 20 20 20 20 20
Boating facilities - launch lanes 12 12 12 12 12
Children's Museum 1111 1
Civic Auditorium (2,800 capacity) 1111 1
Community centers 5555 5
Dog Areas 3333 3
Family camps 1111 1
Golf course acreage 371 371 371 371 371
Group picnic areas 31 31 31 31 31
Gymnasium 5555 5
Ice rink 1111 1
Municipal golf courses 2233 3
Park acreage 625 625 625 625 625
Parks and squares 67 67 67 67 67
Philomathean Club 1111 1
Playgrounds 63 63 63 71 71
Senior center 1111 1
Showmobile (Mobile Stage) 1111 1
Skateboard park 1111 1
Swimming pools 7777 7
Teen Center 1111 1
Tennis courts 67 67 67 67 67
Theater (Bob Hope) 1111 1
Weber Point Events Center 1111 1
Consolidated landscape maintenance districts:

Streetscaping (square feet) 3.6 million 3.6 million 3.6 million 3.6 million 3.6 million Public open spaces (acreage) 70 70 70 70 70
City of Stockton
Table 21
Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
220

ATTACHMENT A
907
2023 2022 2021 2020 2019
Library:

City branches 8 8 8 8 7
Library mobile units 1 2 2 2 2
San Joaquin County branches 7 8 8 8 8
Total items in collection 547,525 655,305 704,864 875,434 772,206 Cargo delivery van 1 2 2 2 2
Cargo van 4 1 1 1 1
Undeveloped land for branch library 2 2 2 2
Integrated library system 1 1 1 1 1
Microform readers 5 - 7 7
Microform readers/printers 6 6 6 7 7
Self check out machines 13 21 21 22 24
Water utility:

Water main lines (miles) 612 702 702 702 668
Storage capacity (thousand gallons) 26,200 26,200 26,200 26,200 26,200 Water wells (active) 12 19 20 20 20
Water reservoirs 8 8 8 8 8
Wastewater utility:

Wastewater main lines (miles) 922 921 919 887 883
Treatment capacity (million gals/day) 55 55 55 55 55
Wastewater pump stations 28 28
28 27 27
Stormwater utility:

Stormwater main drain lines (miles) 612 628 627 627 626 Stormwater pump stations 76 75 73 73 73
Parking Authority:

Parking spaces 5,179 5,179 5,440 5,440 5,440
Parking lots & garages 21 21 21 21 21
Source: City of Stockton Departments
Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
Table 21
City of Stockton
221

ATTACHMENT A
908
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222

ATTACHMENT A
909

CITY OF STOCKTON
Presentation to the City Council
For the Fiscal Year Ended June 30, 2023
City Council Meeting
March 19, 2024
Agenda Item 15.4
910
2 CONTENTS
• Scope of Work
• Required Communications (AU-C 260)
• Overview of the Financial Statements and Financial Indicators • Key Pensions Information
• Audit Results
• Thank You!
3/19/2024
911
3 SCOPE OF WORK
3/19/2024
912
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
3/19/2024
913
5 Required Communications (AU-C 260)
3/19/2024
914
6 OUR RESPONSIBITY 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
3/19/2024
915
7 Required Communications (AU-C 260)
3/19/2024
• 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. 96, Subscription-Based Information Technology Arrangements
• Significant Estimates
• Investment Fair Market Value
• Depreciation and Amortization on Capital Assets and Right-to-Use Asset • Lease receivable
• Lease liability/Subscription liability
• Net Pension Liability
916
8 Required Communications (AU-C 260)
3/19/2024
• Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies
• Note 4 – Lease Receivable
• Note 12 – Retirement Plans
• Note 15 – Other Required Disclosures
• Note 16 – Commitments and Contingencies
• Note 18 – Subsequent Events
• Note 19 – Prior Period Adjustments
917
9 Required Communications (AU-C 260)
3/19/2024
• 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. • 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.
918
10 OVERVIEW OF THE FINANCIAL STATEMENTS

AND FINANCIAL INDICATORS
3/19/2024
919
11 City of Stockton
Government-Wide Statement of Net Position
June 30, 2023
3/19/2024
Governmental Business-Type
Activities Activities Total
Assets 1,867,815,000$ 1,097,758,000$ 2,965,573,000$ Deferred Outflows of Resources 178,503,000 18,975,000 197,478,000 Liabilities 853,759,000 415,678,000 1,269,437,000 Deferred Inflows of Resources 11,403,000 511,000 11,914,000 Net Position:

Net investment in capital assets 817,086,000 473,568,000 1,290,654,000 Restricted 495,695,000 25,366,000 521,061,000 Unrestricted (deficit) (131,625,000) 201,610,000 69,985,000 Total Net Position 1,181,156,000$ 700,544,000$ 1,881,700,000$ 920
12 City of Stockton
Government-Wide Statement of Activities
For the Year Ended June 30, 2023
3/19/2024
Governmental Business-Type
Activities Activities Total
Program Revenues:

Charges for Services 68,006,000$ 156,442,000$ 224,448,000$ Operating Grants and Contributions 42,072,000 1,653,000 43,725,000 Capital Grants and Contributions 26,667,000 12,363,000 39,030,000 Total Program Revenues 136,745,000 170,458,000 307,203,000 Expenses 379,942,000 134,622,000 514,564,000
Net Cost of Services (243,197,000) 35,836,000 (207,361,000) General Revenues 341,241,000 235,000 341,476,000 Transfers 416,000 (416,000) -
Changes in Net Position 98,460,000$ 35,655,000$ 134,115,000$ 921
13 City of Stockton
General Fund Summary
Fund Balance
June 30, 2023 and 2022
3/19/2024
2023 2022 Change
Fund Balance:

Nonspendable 2,397,000$ 2,077,000$ 320,000$ Restricted 5,218,000 5,289,000 (71,000) Committed 150,811,000 123,754,000 27,057,000
Assigned 5,447,000 4,285,000 1,162,000 Unassigned 48,490,000 43,208,000 5,282,000 Total Fund Balance 212,363,000$ 178,613,000$ 33,750,000$ 922
14 City of Stockton
General Fund Summary
Revenues, Expenditures and Changes in Fund Balance
For the Years Ended June 30, 2023 and 2022
3/19/2024
2023 2022 Change
Revenues 335,478,000$ 303,970,000$ 31,508,000$
Expenditures (263,675,000) (244,157,000) (19,518,000) Revenues over Expenditures 71,803,000 59,813,000 11,990,000 Other Financing Uses (38,053,000) (12,056,000) (25,997,000) Change in Fund Balance 33,750,000$ 47,757,000$ (14,007,000)$ 923
15 City of Stockton
General Fund
Unassigned Fund Balance to Annual Expenditures
For the Years Ended June 30, 2023 and 2022
3/19/2024
2023 2022 Change
Unassigned Fund Balance 48,490,000$ 43,208,000$ 5,282,000$ Annual Expenditures 263,675,000 244,157,000 19,518,000 Ratio 18.4% 17.7% 0.7%
Committed/Assigned/Unassigned
Fund Balance 204,748,000$ 171,247,000$ 33,501,000$ Ratio 77.7% 70.1% 7.6%
924
16 FINANCIAL AUDIT RESULTS
3/19/2024
925
17 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
• 2023-001 Internal Control Over Financial Reporting
• Prior Period Adjustments
• Slate Receivable and Payable
3/19/2024
926

HQ - ORANGE COUNTY
200 E. Sandpointe Avenue
Suite 600
Santa Ana, CA 92707

SAN DIEGO
4660 La Jolla Village. Dr.

Suite 100
San Diego, CA92122

BA Y AREA
2121 North California Blvd.

Suite 290
Walnut Creek, CA 94596

LAS VEGAS
1980 Festival Plaza Drive
Suite 300
Las Vegas, NV 89135

PHOENIX
2 North Central Avenue
Suite 1800
Phoenix, AZ 85004

SACRAMENTO
1511 Corporate Way
Suite 220
Sacramento, CA95831
927
City of Stockton
Legislation Text
File #: 24-0223, Version: 1
ADOPT THE FY 2024-25 COUNCIL PRIORITY GOALS, ONE PAGE STRATEGIC PLAN, AND 2024

COUNCIL PLANNING WORKSHOP REPORT

RECOMMENDATION
It is recommended that the City Council adopt by motion the FY 2024-25 One Page Strategic Plan, outlining the City Council’s updated priority goals.

Summary
Each year the City Council holds a Strategic Planning Workshop to review the prior year’s achievements and outline their priority goals for the upcoming year. These goals provide the City Manager and staff with a framework to prioritize both large projects as well as the day-to-day activities in the City.

The FY 2024-25 City Council Priority Goals, with updated Strategies, Plans, and Metrics are included in the One Page Strategic Plan provided as Attachment A.

DISCUSSION
Background
On February 21, 2024, the City Manager facilitated the City Council’s Annual Strategic Goal Setting Workshop at the Adventist Health Arena, formerly known as the Stockton Arena. This workshop provided a review of the City’s financial outlook and updated long range financial plan, proposals for the 2023 State and Federal Legislative Programs, an update on activities related to the City’s Economic Development Strategic Actions Plan, an update on Council priority general fund projects, an overview of government performance and accountability, a summary of the 2023 accomplishments and workload statistics, and finally, a discussion to establish the FY 2024-25 City Council Priority Goals.

The presentation materials from the workshop have been included as Attachment B, with a minor edit/clarification to the accomplishments related to creating employment opportunities for residents and focusing on crime reduction in focus areas.

Present Situation
Following the workshop, the City Manager conducted follow-up meetings with City staff to update existing or identify new strategies, plans, and metrics to support the Council’s agreed upon priority goals. These updated items are outlined in the FY 2024-25 One Page Strategic Plan.

City of Stockton Printed on 3/15/2024Page 1 of 2
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928
File #: 24-0223, Version: 1
A summary report of the 2024 meeting, with 2023 Accomplishments and Workload Statistics is also provided as Attachment C.

FINANCIAL SUMMARY
There is no financial impact to the City directly related to the approval of this item.

Attachment A - FY2024-25 One Page Strategic Plan
Attachment B - Workshop Presentation Materials
Attachment C - Workshop Summary with 2023 Accomplishments & Workload Statistics City of Stockton Printed on 3/15/2024Page 2 of 2
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FY 2024-25 OBJECTIVE:

COUN
CIL PRIORITY GOALS:

FY 2024-25 PLANS: FY 2024-25 METRICS:

One Page Solutions LLC
© Co
pyright 2004-20 Format Only
STRATEGIES: (Captain)
‘How’ we will Win...

Upda
ted: 3/15/2024

5. Fiscal Sustainability (Kim Trammel)
a) C
ontinue learning from the past
b) Mitigate risk
c) Optimize resources through innovative business practices d) Optimize city workforce, recruitment, retention, training, and development
e)Continue to evolve the City’s diversity, equity, and inclusion (DEI) efforts

4. Thriving and Healthy Neighborhoods (Kris Farro)
a) Establish a City integrated team approach, e.g.cross- departmental team to optimize clean, sustainable, and safe neighborhoods
b) Increase placemaking, space activation, and community engagement
c) Optimize alignment of youth programs by prioritizing community interests and needs
d) Optimize overall community well-being with an equity lens e) Continue to evolve the City’s diversity, equity, and inclusion (DEI) efforts
f) Expand sustainability and environmental strategies
a) Reimagine Stockton Police Department (SPD)
b) Increase community partnerships, engagement, and recruitment c) Continue data driven strategies and tactics
d) Reduce violent crime
e) Further address quality of life issues by restoring previously shuttered fire companies

1. Safer Streets (Chief Stanley McFadden/Chief Richard
Edwards)

2. Growing Economy (Stephanie Ocasio/Carrie Wright)
a) Grow jobs
b) Continue to implement the Economic Development Strategic Plan c) Continue to transform the overall development process d) Increase small business development with an equity lens e) Foster and support inclusive entrepreneurship
‘What’ is Winning …
Provide an exceptional level of customer
serv
ice to the Stockton community
through accountable, innovative, efficient,
and effective management of City
resources to achieve our vision for
Stockton.

Work with partners to
impr
ove quality of life,
increase literacy, develop
the workforce, and
expand youth
programming
Focus on crime reduction
in f
ocus areas
Develop solutions to
addr
ess homelessness,
including increasing the
affordable housing
supply
Leverage city and partner
reso
urces in impacting
overall public health,
community wellbeing,
and community resiliency
Prioritize inclusive
econ
omic development to
grow the local economy
and create employment
opportunities for
residents

3. Housing Opportunities for All (Stephanie Ocasio/Carrie Wright) a) Continue to transform the overall development process b) Optimize partnerships and linkages
c) Increase investment in high impact affordable and market rate housing strategies with a focused provision for the workforce accommodation
d) Optimize performance-based, equity-informed distribution of available city funds, e.g.grants
1a) Reduce nonfatal injury shootings and identify impact of Ceasefire strategy by 5% 1b) Increase the number of overall engagements and interventions (Y/N) 1c) Establish a baseline number of calls for service diverted to CMC through mobile crisis intervention program ( CareLink) or increase the number of calls for service diverted to CMC by 5%
1d) Increase overall number of applicants to SPD  by 5% 1d) Increase the successful completion of OVP wraparound services by 5% 1e) Increase average PCI of city roads by 5%
2a) Increase social media engagement and followers across channels 5% increase 2b) Increase city website traffic and engagement 5% increase 2c) Increase the percentage of building permit projects that receive reviews completed within the published timeframe by 75%
2d) Expand meaningful linkages and partnerships with various small business partners (Y/N)
2e)  Increase the total number of visitors to City venues by 5%. 3a) Increase the percentage of housing permit projects that receive reviews completed within the published timeframe by 75%
3b) Increase overall grant acquisition rate  by 5%
3c) Increase Shelter Bed Capacity by 15%
3d) Maintain the implementation of the existing equity-informed model for allocating City funds (Y/N)
4a) Improve Stockton's livability indicators, i.e. vacant properties, abandoned cars, graffiti, weed abatement, per capita code enforcement, trash and illegal dumping (Y/N) 4b) Enhance community cohesion through increased participation in City produced and sponsored events (Y/N)
4c) Increase community center, library, and community-based organization utilization (Y/N)
4d) Emphasize education, awareness, and investment to positively impact community wellbeing (Y/N)
4e) Increase multilingual programming and services (Y/N) 4f) Expand the City’s environmental and sustainability portfolio that includes the improvement in the city's tree canopy  (Y/N)
5a) Refresh long range financial plan and increase fiscal transparency (Y/N) 5a) Clean/unmodified audit opinions (Y/N)
5b) Increase Center for Internet Security (CIS) Controls Self Assessment Tool (CSAT) overall cyber security maturity score by 10%
5c) GFOA Certificate of Achievement for Excellence in Financial Reporting for FY23- 24 ACFR and Distinguished Budget Presentation Award (Y/N) 5d) Increase workforce retention and recruitment (Y/N)
5e) Develop diversity, equity, inclusion human capital management roadmap (Y/N) Build upon Ceasefire Strategy to reduce shootings and h omicides and the city’s crime prevention strategies and tactics through partnership between SPD and OVP Emphasize use of SPD's ICAP and OVP's case management s ystems Continue case management and wrap around support for hi gh-risk population Expand Fire Investigation program and partnerships to r educe the incidence of arson fires Increase community partnerships with a special needs' r egistry focused on youth and elderly
Utilize Community and Youth Advisory Boards to empower the community Evolve the City Manager’s Review Board initiative and c alibrate the CareLink program Reopening of Truck 7
Implement the Economic Development Strategic Plan inclu ding but not limited to invigorating entrepreneur ecosystem, expanding business façade improvements, and continuing the Stockton re branding initiative
Implement workforce development programming including y outh employment and development through strengthening partnerships with local education institutions Increase space activation through closing the fiber rin g, enhanced small business support, and availability of customer self service solutions Complete Development Code (Stockton Municipal Code Titl e 16) overhaul to streamline and clarify the development process
Continue to shorten transaction/cycle process times in permit application processing
Provide ongoing support and commitment to adopted homel essness plans Increase overall program impact and effectiveness empha sizing data informed decisions
Complete Housing Action Plan to facilitate and incentiv ize increased production of market rate and below market rate housing
Complete the current pipeline of inflight homeless hous ing projects Launch an outdoor mural program through Stockton Arts C ommission Produce an annual Citywide community cohesion project
Expand access to resources for youth to enable career d evelopment Increase multilingual materials
Expand sustainability/environmental portfolio to includ e TCC Round 4 implementation, Climate Action Plan update, and equity informed sustainable transportation pilot program
Enhance efforts to support community-based organization s capacity building Expand Clean City initiative and access to related data Launch Citywide illegal dumping prevention and mitigati on efforts Launch a mobile recreation and library program
Improve parks and related infrastructure
Upgrade bond rating and enhance financial reporting
Maximize City revenue sources
Begin ERP system Phase 4 (Utility Billing) planning and preparation Enhance use of Long-Range Financial Plan in decision ma king Continue to operationalize centralized grants administr ation and coordination Expand recruitment efforts, retention plan, and workfor ce planning and development
Optimize organizational Cyber Security maturity for con tinued protection of digital assets
One Page Strategic Plan® (OGSP®) FY 2024-25
Vision: Stockton will become the best city in America to live, raise a family, and grow a business.

ATTACHMENT A
930
City Council Planning Workshop
Wednesday, February 21, 2024
9:00 am to 3:30 pm
Adventist Health Arena

ATTACHMENT B
931
Mayor’s Welcome9:00
Public Comment9:10
Comments from the City Manager9:20
Fiscal Update and Long-Range Financial Plan 9:30
State and Federal Legislative Program 10:10
Economic Development Strategic Action Plan 10:30
Update on Council Priority Projects 11:00
Government Performance and Accountability 11:30
LUNCH12:00
Review Existing Strategic Goals & Accomplishments 12:30 Discuss and Identify 2024 Priority Goals and Strategies 1:30 Wrap-up3:30
TODAY’S AGENDA

ATTACHMENT B
932
Welcome
by Mayor
Kevin J.

Lincoln II

ATTACHMENT B
933
Public Comment

ATTACHMENT B
934
Comments from
City Manager
Harry Black

ATTACHMENT B
935
Workshop
Ground Rules
• Listen to understand each
oth
er’s point of view.
• Seek consensus.
• Assume good intent.
• Speak up if course
co
rrection is needed.
• Stay focused.
• Items brought up but are
mor
e appropriate to be
discussed at another time,
will be parked in the “bike
rack” and tracked
separately for follow up.

ATTACHMENT B
936
Implement Implement voter-approved decisions on taxes and other laws fully with integrity: honor voter intent
Measure Measure successes and communicate them to the community Foster
Foster performance management, customer service, and
continuous improvement while supporting the professional development of our employees
Maintain and
expand
Maintain and expand relationships with partner agencies, private sector, and organizations to extend capacity in carrying out and funding priority projects
Understand Understand the City’s financial outlook. Follow our long-term financial plan to ensure financial stability and sustainability.

Create
Create long-term vision while focusing on meeting day-to-day challenges. Place constituent needs and interest in the forefront.

Taking care of the “small things” that matter to the community.

Transparency
Operate in a transparent and open manner to earn and keep trust of our community. Maintain a culture of collegiality and respect among Council members and staff.

Guiding
Principles
established at
prior Council
Workshops

ATTACHMENT B
937
Fiscal Update and
Long-Range Financial Plan
(L-RFP)
Kimberly Trammel, Chief Financial Officer

ATTACHMENT B
938
Fiscal Outlook & Forecast
Considerations
• State Budget Shortfall
• One-Time Grant Funds
• Economy/Global Dynamics
• Inflation
• Normalized revenue growth
• Pension costs
• Labor market pressures
• Workforce & service deficiencies
• Deferred infrastructure &
maintenance

ATTACHMENT B
939
Forecast Considerations
State Budget Shortfall & Reduction in One Time Funds
• City has benefited
fr
om State revenues
and Federal stimulus
dollars for the last
several years
• One-time dollars will
not continue at the
same level
• $58 million State
Budget Shortfall
Source: Beacon Economics,
February 2024

ATTACHMENT B
940
City of Stockton Funding
FY 2023-24 Budget =$912 Million
New
Services = 1%
Special Grants =
13%
Keep the Lights On = 39%
Restricted Funds = 47%

ATTACHMENT B
941
Forecast Considerations
Economic Indicators
• Significant Pandemic Impact
• Decline in overall labor force
• Increase in payroll since 2020
Source: Beacon Economics, February 2024

ATTACHMENT B
942
Forecast Considerations
Economic Indicators
Source: Beacon Economics, February 2024

ATTACHMENT B
943
Forecast Considerations – Economic Indicators
Sources: Chandler Asset
Management and Beacon
Economics, February 2024

ATTACHMENT B
944
Long-Range Financial Plan
• Forecasts revenue & expenses
• 20-year forecast
• Only General Fund and related funds
• Supported by General Fund – L ibrary, Recreation,
Marina, Entertainment Venues, Golf, etc.
• Measure W and Measure M sales tax
• Created during bankruptcy
• Based on a wide range of assumptions
• New assumptions = new outcome
• A tool for financial decision making

ATTACHMENT B
945
Major Areas of Forecast Volatility
Vacancy Savings
Cost Allocation Plan
Use of ARPA Funds
Economy
Sales Tax Revenue
Pension Costs
Hotel/Motel Revenue
Fees/Other Revenue
Property Tax Revenue
COLAs/Benefits
Staffing Levels
Capital Spending
← Low Control High Control →
← Low Control High Control →
← Low Impact High Impact →
← Low Impact High Impact →

ATTACHMENT B
946
($100,000)
($50,000)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
00 02 04 06 08 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 LT Trend ST Trend Forecast
Long-Range Financial Plan
Revenue Forecast – Total General Fund
First full year of Measure A
FY 2014-15 $201 million
Great Recession
FY 2012-13
$160 million
FY 2022-23
$322 million

ATTACHMENT B
947
Long-Range Financial Plan
Revenue Forecast - Sales Tax
• Abnormal growth since the pandemic
• Declines projected for the next few years
• Stockton’s tax growth differs from Statewide trends due to the tax base 18 13%
0%
2%
10%
11%
16%
-8%
-3%
-11%
-12%
6%
8%
7%
18%
49%
11%
-4%
7%
7%
5%
17%
15%
4%
-3%
-2%
1%
-3%
0%
5%
5%
5%
2%
2%
-3%-20%
0%
20%
40%
60%
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Stockton Sales Tax Percent Change
Annual % Change
Great
Recession
Addition of Measure A Pandemic
Spending

ATTACHMENT B
948
Long-Range Financial Plan
Forecast Considerations
Expense Trends
• Majority of
ex
penditures are
employee salary
and benefits
• Defined in labor
co
ntracts
• Labor costs (bl ue
bars) are increasing
• Filled positions are
dec
reasing
$0
$50
$100
$150
$200
$250
$300
$350
07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

GENERAL FUND EXPENDITURES BY TYPE
(MILLIONS)
Personnel Program Support Internal Services Other

ATTACHMENT B
949
Long-Range
Financial Plan
Forecast
Considerations
Labor Trends
• Authorized positions have been
inc
reasing
• Still below 2009 levels
• Filled positions have been declining
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Filled and Authorized Full-time Positions
Filled at Dec. 31 Authorized Positions

ATTACHMENT B
950
Long-Range Financial Plan
Pension Risks
• 56% of pension costs are funded
by
investment returns
• CalPERS approved 6.8% discount
ra
te starting FY 2023-24
• Forecast assumes decline to 6%
ov
er 10 years
$0
$20
$40
$60
$80
$100
$120
18 20 22 24 26 28 30 32 34 36 38 40 42 44
PERS Employer Estimated Payments -
Normal Cost plus Unfunded Liability
All Funds (mil.)
Misc Safety

ATTACHMENT B
951
Long-Range Financial Plan
As of January 2024

ATTACHMENT B
952
Long-Range Financial Plan
(With Fire Truck No. 7)

ATTACHMENT B
953
Fiscal
Planning
• Continue long-te rm financial planning
approach
• Post pandemic normalization with a
foc
us on a strategic and balanced
approach to growth
• Utilize the Long-Ran ge Financial Plan
• Updates to the model will continue
with budg
et development
• Balancing act - pri oritizing service
demands within available resources
• Improve the City’s ability to recruit and
re
tain employees within available funds
• Plan for future CalPERS cost increases
• Catch-u p on infrastructure and deferred
maintenance
• Maximize use of one-tim e and ongoing
federal and state funds

ATTACHMENT B
954
Questions and
Comments on the
Fiscal Update and
L-RFP

ATTACHMENT B
955
2024 State and Federal
Legislative Program
Harry Black, City Manager
Grant Kirkpatrick, Program Manager

ATTACHMENT B
956
Legislative
Advocacy
Program
Objectives
• Advocate in Sacramento and
Washington, D.C. to accurately
and persuasively present the
positions of the City of Stockton
• Establish relationships with key
Legislators and Staff
• Provide early intelligence on
emerging issues
• Share knowledge of trade-offs
impacting legislative framing
and funding
• Target funding allocations and
grant applications
• Achieve the priority State and
Federal objectives of the City