City Council and Concurrent Authorities
September 23, 2025

FY 2023-24
Stockton, California

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ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR
ENDED JUNE 30, 2024

CITY OF STOCKTON,CALIFORNIA
Prepared and Issued by
Administrative Services Department
Chad Reed
Deputy City Manager
Interim Chief Financial Officer

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City of Stockton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
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INTRODUCTORY SECTION (UNAUDITED)
Table of Contents ............................................................................................................................................................... i Letter of Transmittal ......................................................................................................................................................... v List of Principal Officials ................................................................................................................................................. xi Organization Chart .......................................................................................................................................................... xii

FINANCIAL SECTION
Independent Auditor’s Report on Financial Statements ............................................................................................. 1 Management’s Discussion and Analysis (Unaudited)................................................................................................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position................................................................................................................................... 17 Statement of Activities ....................................................................................................................................... 18 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ..................................................................................................................................................... 23 Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide Statement of Net Position ............................................................................................... 24 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................. 25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities ........................... 26 Proprietary Fund Financial Statements:

Statement of Net Position................................................................................................................................... 28 Statement of Revenues, Expenses and Changes in Net Position ........................................................................ 32 Statement of Cash Flows .................................................................................................................................... 34 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .................................................................................................................. 41 Statement of Changes in Fiduciary Net Position ................................................................................................ 42 Notes to the Basic Financial Statements ...................................................................................................................... 45 Required Supplementary Information (Unaudited):

Budgetary Information
Budget Process ....................................................................................................................................................... 103 Budget Basis of Accounting. .................................................................................................................................. 105 Budget Comparison Schedule
General Fund .................................................................................................................................................... 106 Federal Housing Grants Special Revenue Fund ............................................................................................... 108 Special Grants Special Revenue Fund .............................................................................................................. 109

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City of Stockton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
Required Supplementary Information (Unaudited) (Continued):

Budgetary Information (Continued)
Schedule of Changes in Net Pension Liability and Related Ratios:

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan .................................... 110 California Public Employees' Retirement System ("CalPERS") - Safety Plan ................................................. 112 PARS Enhancement Plan ................................................................................................................................. 114 Schedule of Contributions – Pensions:

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan .................................... 116 California Public Employees' Retirement System ("CalPERS") - Safety Plan ................................................. 118 PARS Enhancement Plan ................................................................................................................................. 120 Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - Capital Improvement Capital Projects Fund .................................................................. 123 Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................................................... 127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... 130 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

State Housing Grants Special Revenue Fund ................................................................................................... 133 Solid Waste and Recycling Special Revenue Fund .......................................................................................... 134 Gas Tax Special Revenue Fund ....................................................................................................................... 135 Measure K Streets Sales Tax Special Revenue Fund ....................................................................................... 136 Measure M Strong Communities Special Revenue Fund ................................................................................. 137 Measure W Public Safety Tax Special Revenue Fund ..................................................................................... 138 Special Assessment Special Revenue Fund ..................................................................................................... 139 Development Services Special Revenue Fund ................................................................................................. 140 Other Special Revenue Fund ............................................................................................................................ 141 Transportation Development Act Special Revenue Fund ................................................................................. 142 Public Facilities Impact Fees Capital Projects Fund ........................................................................................ 143 Stockton Public Financing Authority Debt Service Fund ................................................................................ 144 Nonmajor Enterprise Funds:

Combining Statement of Net Position .................................................................................................................... 146 Combining Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 150 Combining Statement of Cash Flows ..................................................................................................................... 152 Internal Service Funds:

Combining Statement of Net Position .................................................................................................................... 158 Combining Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 160 Combining Statement of Cash Flows ..................................................................................................................... 162

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City of Stockton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
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Page
Supplementary Information (Continued):

Custodial Funds:

Combining Statement of Fiduciary Net Position .................................................................................................... 169 Combining Statement of Changes in Fiduciary Net Position .................................................................................. 170 Schedule of Sources and Uses – Measures A and B .................................................................................................. 171

STATISTICAL SECTION (UNAUDITED)
Statistical Section Overview ......................................................................................................................................... 173 Financial Trend Information:

Net Position by Classification ................................................................................................................................. 174 Changes in Net Position ......................................................................................................................................... 176 Fund Balance, Governmental Funds ....................................................................................................................... 180 Changes in Fund Balance of Governmental Funds ................................................................................................. 182 Tax Revenues by Source, Governmental Funds ..................................................................................................... 186 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property ......................................................................... 188 Direct and Overlapping Property Tax Rates ........................................................................................................... 190 Principal Property Taxpayers ................................................................................................................................. 191 Secured Property Tax Levies and Collections ........................................................................................................ 192 Water Sold by Customer Type ................................................................................................................................ 193 Water and Wastewater Utility Rates ....................................................................................................................... 195 Debt Capacity Information:

Ratios of Outstanding Debt by Type ...................................................................................................................... 196 Ratios of General Bonded Debt Outstanding .......................................................................................................... 198 Direct and Overlapping Governmental Activities Debt .......................................................................................... 199 Legal Debt Margin Information .............................................................................................................................. 200 Pledged-Revenue Coverage .................................................................................................................................... 202 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................... 205 Principal Employers ............................................................................................................................................... 206 Operating Information:

Full-Time Equivalent City Government Employees By Function/Program/Department ........................................ 207 Operating Indicators by Function/Program/Department ......................................................................................... 208 Capital Asset Statistics by Function/Program/Department ..................................................................................... 211

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September 22, 2025

To the Honorable Mayor,
City Council, Audit Committee and the
Citizens of the City of Stockton, California
The Stockton City Charter, federal grant regulations, and agreements with investors require the City of Stockton, California (“City”) to publish a complete set of financial statements presented in conformance with Generally Accepted Accounting Principles (“GAAP”) and audited by a firm of licensed, certified public accountants. Under those requirements, we respectfully submit the Annual Comprehensive Financial Report (“ACFR”) of the City of Stockton for the fiscal year (“FY”) ended June 30, 2024.

Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, the data, as presented, is accurate in all material aspects; and is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds. This report contains all disclosures necessary to enable the reader to fully understand the City’s financial affairs.

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

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

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

One of the oldest cities in the State of California, Stockton was founded in 1849 and incorporated in 1850. In 1888, the voters approved Stockton's first local Charter, which was ratified by the State Legislature in 1889. The current Charter was approved by the voters in November 1922 and became effective in 1923. This Charter changed the city from a commission form of government to the current City Council -City Manager form of government. Under the Council-Manager form of government, the City Council has policy-making and legislative authority. Representatives from six districts are chosen by district elections, with the mayor being chosen by citywide election, for staggered four-year terms, with a two-term limit. The City Manager is responsible for carrying out the City Council's policies and ordinances, appointing department heads, and overseeing the City’s operations. The City Council appoints the City Manager, City Attorney, City Auditor, and City Clerk.

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

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

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

The Council is required to adopt an annual budget following a public hearing to review the proposed annual budget.

This annual budget serves as the foundation for the City's financial planning and control. The City prepares the budget by fund, function, and department, e.g., Police. Department heads may transfer budget appropriations within a department as they see fit. Transfers between General Fund departments, however, need City Council approval.

Outside the General Fund, the City Manager has the authority to transfer budget appropriations at the fund level.

THE LOCAL ECONOMY
The City encompasses nearly 65 square miles, is surrounded by the San Joaquin Valley's fertile lands and is home to the furthest inland deep-water seaport in California. The City has a well -diversified economic base that has evolved from its agricultural roots to become a regional center for commerce, including the second-largest transportation and logistics hub in the United States. In addition to the Port of Stockton, the city is equipped with a regional airport, a Burlington Northern Santa Fe intermodal facility, and interstate freeways. The University of the Pacific, California State University-Stanislaus-Stockton campus, Humphries College, and San Joaquin Delta Community College are all located in Stockton. Four school districts serve K-12 students within City limits.

In January 2024, Stockton's population was 317,204, according to the California Department of Finance, which represents an increase compared to last year's population of 319,731. The California Department of Finance also projects the San Joaquin County population will continue to increase at a rate of approximately 0.8% for the next several years. As the 11th largest city in California, Stockton is comparable in size to other cities such as Lexington, Corpus Christi, Irvine, and Orlando.

According to the California Employment Development Department, the unemployment rate in Stockton was 7.1% as of June 2024, compared to 7.2% in 2023. Per the Bureau of Labor Statistics, the national unemployment rate was

3.9% for the same period.

As of June 2024, the median price for a detached single-family home in Stockton was approximately $435,000 which is a slight decrease compared to the previous year of $435,750.

FINANCIAL CONDITION HIGHLIGHTS
Financial results for the year compare favorably with budget estimates in most areas of the City's operations. For the General Fund, financial results for the year were better than estimated. Expenditures (including encumbrances and carryovers and other uses of funds) came in under budget. Revenues (including other sources of funds) were above budget estimates. As a result, the General Fund balance on June 30, 2024, was $240.1 million. The Working Capital operating reserve of $48.0 million comprises most of the unassigned funds. City Council designated reserves in the committed balance total $148.3 million (known contingencies reserves) and risk -based reserve categories of $11.0 million.

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

The Statement of Net Position for the City is approximately $2.0 billion. The City's net position is roughly $168.7 million higher, or 8.97%, than the prior fiscal year, with most of the growth in Governmental Activities.

Governmental revenues and transfers totaled $547.7 million, while governmental expenses totaled $432.4 million.

Business-type revenues and investment earnings totaled $195.3 million, while expenses totaled $141.2 million.

Business-type activities’ net position increased by $53.3 million, or 7.62%, for an ending balance of $753.9 million.

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

A summary of the L-RFP is available in the City's Annual Budget:
https://www.stocktonca.gov/government/budget financial_reports/index.php For a more detailed analysis of the financial performance of the City, refer to the Management's Discussion and Analysis sections titled Financial Analysis of the City's Funds and General Fund Budgetary Highlights.

The City's Irrevocable Post-Employment Benefits Trust
On November 7, 2017, the City created an irrevocable post -employment benefits trust program, also known as an Internal Revenue Code Section 115 trust (Trust). This Trust is designed to pre-fund pension costs and to offset GASB 68 net pension liabilities. The ending balance in the trust as of June 30, 2024 was $80.2 million ($72.8 million General Fund). The Trust allows the City to set aside funds through a tax -exempt funding mechanism to mitigate long-term contribution rate volatility. The Trust will enable the city to control the assets and when the City utilizes them. Also, the statutory investment restrictions that apply to the City's investment portfolio do not apply to assets held in a post -employment benefits trust. The City will strive to accrue an amount in the Trust sufficient to fund annual CalPERS costs during economic downturns or other periods when annual revenues are forecast to be insufficient.

Access to the Financial Markets
The City has no long -term bonds backed by the General Fund. The last rating actions on the City's General Fund - backed debt was a Standard & Poor upgrade to "BB", with a continuing positive outlook in August 2018. In April 2019, Moody's issued an upgrade for the City's General Fund of "A3", from "Baa1". The City’s Wastewater utility-maintained ratings of "A" by Standard & Poor’s and “A+” by Fitch. In 2024, both Standard & Poor’s and Fitch re-affirmed the City’s Water debt ratings of “A” and “AA-”, respectively. The Parking Revenue Bonds are currently rated at BBB.

The City does not anticipate issuing any bonds backed by the General Fund.

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

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RESERVE POLICIES

The City's General Fund reserve policy calls for the City to maintain a 17% operating reserve (approximately two months of expenditure) and establishes additional reserves for known contingencies, unforeseen revenue changes, infrastructure failures, and catastrophic events. The known contingencies include amounts to address staff recruitment and retention, prefund future CalPERS costs, and replace aging infrastructure and systems. The City’s Governmental Funds reported a combined ending fund balance of $667.1 million at the close of June 30, 2024, an increase of $56.1 million compared with the prior fiscal year. The General Fund balance in this report, as of June 30, 2024, was $240.1 million.

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

The reserve policy is available on the City's website at:
https://www.stocktonca.gov/Documents/Government/Budget%20And%20Financial%20Reports/General_Fund_Re serve_Policy.pdf

DEBT POLICY AND ANNUAL CONTINUING DISCLOSURES

The City's debt policy is available on its website as follows:
https://www.stocktonca.gov/Documents/Government/Budget%20And%20Financial%20Reports/Financial%20Rep orts/Capital_Financing_Debt_Management_Policy.pdf

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

INVESTMENT POLICY

The City adopts an investment policy annually that provides guidelines for the prudent investment of the City's cash balances. The City contracts with Public Financial Management for the day -to -day management of the City's long-term investment portfolio. The Administrative Services Department oversees both the City's long -term investment portfolio management and liquid cash requirements.

The City's investment policy is posted on the City's website:
https://www.stocktonca.gov/Documents/Government/Budget%20And%20Financial%20Reports/Financial%20Rep orts/Investment_Policy.pdf

CASH AND INVESTMENTS

The California Government Code and the City's investment policy adopted in compliance with that Code define how the City can invest its cash. The City's policy also outlines the principles for maximizing the City's cash management operations' efficiency while meeting the daily cash flow demands of the City. The average overall return rate on funds not held by fiscal agents for the fiscal year ending June 30, 2024, was 2.77%. This amount includes both realized and unrealized gains distributed to funds. Absent unrealized Fair Market Value gains and Accrued Interest amounts distributed on June 30, 2024, distributed returns would have been 2.22%.

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GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

The GASB establishes GAAP for local and state governments in the United States and Canada. Its counterpart for private-sector entities is the Financial Accounting Standard Board. The American Institute of Certified Public Accountants and state and federal regulators require that financial reports follow GAAP to receive an unmodified audit opinion. The GFOA and the California Committee on Municipal Accounting entail additional standards that govern disclosures in the ACFR.

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

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

INDEPENDENT AUDIT

The City Charter, Article XIX, Section 1911, states: "after the close of the fiscal year, an annual audit shall be made of the City's funds. Such an audit shall be made by a firm of independent certified public accountants." The Pun Group, LLP, an independent firm of licensed, certified public accountants, has audited the City of Stockton's financial statements.

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

The independent auditors issued an unmodified opinion for the fiscal year ended June 30, 2024.

SINGLE AUDIT REPORT TO FEDERAL GRANTING AGENCIES

A broader, federally- mandated "Single Audit," designed to meet federal granting agencies' needs, is also required. The standards governing Single Audit engagements require the independent auditor to report on the fair presentation of the financial statements and the audited government's internal controls and compliance with legal requirements, emphasizing internal controls and legal requirements involving the administration of federal awards.

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

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RISK MANAGEMENT

During FY 2023 -24, the City continued its self -insurance program for General Liability, Property, and Workers' Compensation. The City is a member of the California Joint Powers Risk Management Authority for General Liability and All Risks Property Program, which is primarily underwritten by various insurance companies. The Property All Risks deductible is $250,000. The self-insured retention ("SIR") for General Liability is $1.25 million.

The City is also a member of the Public Risk Innovation, Solutions and Management insurance pool for excess Workers' Compensation coverage. The SIR is $500,000.

INTERNAL CONTROLS AND LIMITATIONS
The ACFR intends to provide the City Council and the public with an understanding of the City's financial position.

City management assumes responsibility for the completeness, accuracy, and reliability of the information presented in this report. City management established an internal control framework intended to protect the City's assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City's financial statements.

The City's comprehensive system of internal controls continues to be the subject of an ongoing review to ensure the timeliness and accuracy of the ACFR and improve management reporting and controls. The City's Finance team, is working to close out prior audit findings and continually improve the City's key controls, systems, and policies and procedures.

Budgetary control is at the department level for the General Fund and the fund level for all other funds. Transfers within funds and like categories of the same department require City Manager approval. Revisions to increase appropriation authority above a department's original adopted budget require City Council approval.

ACKNOWLEDGEMENTS

This report would not have been possible without the dedicated professionals in the Administrative Services Department and employees' cooperation from throughout the City who provided detailed information and other support and assistance.

We also want to thank the Mayor, City Council, and the Audit Committee for your interest and support in planning and conducting the City's financial operations responsibly and sustainably.

Respectfully submitted,

C REED

DEPUTY CITY MANAGER/

INTERIM CHIEF FINANCIAL

OFFICER

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CITY OF STOCKTON

CITY COUNCIL

KEVIN J. LINCOLN II
MAYOR

KIMBERLY WARMSLEY

VICE MAYOR
District 6

MICHAEL BLOWER

COUNCILMEMBER
District 3

MICHELE PADILLA

COUNCILMEMBER
District 1

SUSAN LENZ

COUNCILMEMBER
District 4

DAN WRIGHT

COUNCILMEMBER
District 2

BRANDO VILLAPUDUA

COUNCILMEMBER
District 5

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City Manager

HARRY BLACK
City Auditor

MOSS ADAMS, LLP
Community
Services
Community
Development
Deputy City Manager II Deputy City Manager I Deputy City Manager II Economic
Development
Municipal
Utilities
Public Works
Administrative
Services
Human
Resources
Information
Technology
Police
Office of
Violence
Prevention Office of
Performance
and Data
Analytics
Fire

CITIZENS OF STOCKTON

CITY COUNCIL
Mayor KEVIN LINCOLN
Vice Mayor KIMBERLY WARMSLEY, District 6
Councilmember MICHELE PADILLA, District 1
Councilmember DAN WRIGHT, District 2
Councilmember MICHAEL BLOWER, District 3
Councilmember SUSAN LENZ, District 4
Councilmember BRANDO VILLAPUDUA, District 5
City Attorney

LORI ASUNCION
Interim City Clerk

EKATHERINE ROLAND
City Manager

HARRY BLACK
City Auditor

MOSS ADAMS, LLP

Deputy City Manager I

Public Works

CITY OF STOCKTON

ORGANIZATION CHART
AS OF JUNE 30, 2024

Municipal
Utilities

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Information
Technology
Office of
Performance
and Data
Analytics

Human
Resources

Economic
Development
Office of
Violence
Prevention

Fire

Administrative
Services

Community
Development

Community
Services

Police

Deputy City Manager II

Deputy City Manager II

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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT

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

Report on the Audit of the Financial Statements

Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Stockton, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024 and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

Responsibilities of Management for the Financial Statements

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

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

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Stockton, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

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

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we
• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

• evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

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

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

Supplementary Information

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

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

Other Information

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

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 17, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
September 17, 2025

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5 MANAGEMENT’S DISCUSSION AND ANALYSIS

UNAUDITED
JUNE 30, 2024

INTRODUCTION

As management of the City of Stockton, California (“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, 2024. 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 shows that, as of June 30, 2024, total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $2.0 billion. Of this amount, $131.5 million represents the unrestricted net position, $545.0 million is restricted for City's ongoing obligation related to programs with external restrictions, and $1.37 billion represents the City's net investment in capital assets. • Governmental revenues and transfers total $547.7 million with expenses of $432.4 million. • Business-type program revenues and investment earnings were $195.3 million, while business-type expenses were $141.2 million.

Fund Level:
• The City’s Governmental Funds reported a combined ending fund balance of $667.1 million at the close of June 30, 2024, an increase of $56.1 million compared with the prior fiscal year. The General Fund balance in this report, as of June 30, 2024, was $240.1 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 to commit $25.2 million in general govermet reserves,fund known contingency reserves at $73.5 million,maintain the risk -based reserves to $10.8 millio, capital project appropriation of 25.0 million, and other commitments of $13.8 million.
• Total Governmental Fund revenues increased compared with the prior year, reflecting growth in sales taxes, business license revenues, franchise fees, and investment income. Governmental expenditures increased compared to FY23 primarily due to public safety and capital project spending. • The total Governmental Fund expenditures increased by 12.3 percent compared to the prior fiscal year, primarily due to a $23.6 million increase in public safety expenditures. This increase is attributable to a 10.3 percent salary increase for sworn positions effective July 1, 2023, and higher retirement costs. Capital outlay expenditures increased $5.4 million, reflecting the use of 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 discussion and analysis, 2) the basic financial statements, 3) required supplemental information, and 4) combining non -major fund financial statements. The basic financial statements include two kinds of statements that present different views of the City - the government-wide and the fund financial statements:
• The government -wide financial statements provide both long -term and short -term information about the City’s overall financial status.
• The fund financial statements focus on the City government's individual parts, reporting the City’s operations in more detail than the government-wide statements.

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

Government-Wide Financial Statements:

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

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

This Annual Comprehensive Financial Report (“ACFR”) includes the financial activity of the separate legal entity controlled by the City, the Stockton Public Financing Authority.

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

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

Fund Financial Statements:

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

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

The City has three types of fund financial statements: Governmental Funds, Proprietary Funds, and Fiduciary Funds.

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

The basic Governmental Fund Financial Statements can be found on pages 23-26 of this report.

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OVERVIEW OF THE FINANCIAL STATEMENTS, CONTINUED
7 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 trust beneficiaries. The city elected to serve as the Successor Agency for its former Redevelopment Agency, which was dissolved by state law. The Successor Agency activity is accounted for in a Private Purpose Trust Fund. The City is responsible for ensuring that assets reported in these funds are used for their intended purposes. All the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these resources to finance its operations.

The basic Fiduciary Fund's financial statement can be found on pages 41-42 of this report.

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

The notes to the financial statements can be found on pages 45-102 of this report.

Other information
In addition to the basic financial statements, this report presents certain required supplementary information. This information provides a budgetary comparison schedule for the General Fund, Federal Housing Grants Special Revenue Fund, and the Special Grants Fund, as well as information about the City's participation in the PERS and PARS defined benefit pension plans.

Required supplementary information can be found on pages 103-121 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, 2024, the City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $2.0 billion, which is an increase of $168.7 million, or 8.97 percent compared to the prior fiscal year.

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

The following is the condensed statement of net position for the fiscal years ended June 30, 2024, and 2023 (amounts in thousands):

Governmental
Activities
Business-Type
Activities Total

Assets:

Current and other assets
Capital assets
Total assets
Deferred Outflow of Resources:

Unamortized loss on refunding of debt
Pension-related deferred outflows of resources
Total Deferrals-Outflows
Liabilities:

Current and other liabilities
Long-term obligations
Net Pension liability
Total liabilities
Deferred Inflow of Resources:

Pension-related deferred inflows of resources
Leases
Total Deferrals Inflows
Net position:

Net investment in capital assets
Restricted
Unrestricted (deficit)
Total net position

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 $1.4 billion or 69.3 %. 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 $545.0 million or 26.5% 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 $131.5 million or 4.2% of the total net position. 2024 2023 2024 2023 2024 2023
$ 1,065,042 $ 985,073 $ 292,312 $ 253,107 $ 1,357,354 $ 1,238,180 950,951 882,742 871,373 844,652 1,822,324 1,727,394
2,015,993 1,867,815 1,163,686 1,097,759 3,179,679 2,965,573

-

-

11,827

12,736

11,827

12,736
173,468 178,504 4,987 6,239 178,455 184,743
173,468 178,504 16,814 18,975 190,282 197,479

144,817

147,551

32,304

28,685

177,121

176,236
130,980 122,994 378,601 370,352 509,581 493,346
612,404 583,215 15,533 16,642 627,937 599,857
888,201 853,760 426,438 415,679 1,314,639 1,269,439

3,452

10,025

132

478

3,584

10,503
1,323 1,378 - 32 1,323 1,410
4,775 11,403 132 510 4,907 11,913

885,458

817,086

488,472

473,568

1,373,930

1,290,654
518,951 489,870 26,030 25,367 544,981 521,062
(107,924) (171,510) 239,428 201,609 131,504 69,984
$ 1,296,485 $ 1,181,156 $ 753,930 $ 700,544 $ 2,050,415 $ 1,881,700

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

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

Governmental Business-Type
Activities Activities Total

Revenues
Program revenues:

Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:

Property taxes
In lieu of sales tax
Utility user taxes
Sales and use taxes (City levied)
Franchise taxes
Business licenses
Hotel/motel room taxes
Document transfer taxes
Other taxes
M otor vehicle fees in lieu
Sales and use taxes (State levied)
Other shared revenue
Investment earnings
Miscellaneous
Gain (loss) on disposal of capital assets
Total revenues
Expenses
General government
Public safety
Public works
Library
Parks and recreation
Interest and fiscal charges
Water utility
Wastewater utility
Stormwater utility
Central parking district
Other
Total expenses
Increase/(decrease) in net
position before transfers
Transfers
Special Item:

Change in net position
Net position, beginning
Net position, end of year
2024 2023 2024 2023 2024 2023

$ 73,884

$ 68,006

$ 162,543

$ 156,442

$ 236,427

$ 224,448
56,324 42,072 4,182 1,653 60,507 43,725
41,539 26,667 19,634 12,363 61,173 39,030
45,404 42,578 - - 45,404 42,578
- - - - - -
42,799 42,445 - - 42,799 42,445
77,028 82,833 - - 77,028 82,833
23,476 22,784 - - 23,476 22,784
20,430 23,748 - - 20,430 23,748
3,520 3,433 - - 3,520 3,433
992 1,029 - - 992 1,029
6,215 4,628 - - 6,215 4,628
31,590 29,344 - - 31,590 29,344
78,924 76,954 - - 78,924 76,954
- - - - - -
35,847 1,707 8,977 235 44,824 1,942
9,032 9,715 - - 9,032 9,715
- 44 - - - 44
547,003 477,986 195,337 170,693 742,340 648,679

73,368

54,875

-

-

73,368

54,875
262,821 227,637 - - 262,821 227,637
44,446 50,045 - - 44,446 50,045
17,205 16,275 - - 17,205 16,275
24,176 21,141 - - 24,176 21,141
10,377 9,968 - - 10,377 9,968
- - 51,109 50,185 51,109 50,185
- - 73,557 68,976 73,557 68,976
- - 8,788 7,914 8,788 7,914
- - 5,767 6,153 5,767 6,153
- - 2,012 1,395 2,012 1,395
432,393 379,942 141,233 134,622 573,625 514,564
- - - - - -
114,609 98,044 54,104 36,071 168,713 134,115
718 416 (718) (416) - -
- - - - - -
115,327 98,460 53,386 35,656 168,713 134,115
1,181,156 1,082,697 700,544 664,888 1,881,700 1,747,585 $ 1,296,485 $ 1,181,156 $ 753,930 $ 700,544 $ 2,050,414 $ 1,881,700

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

Governmental activities: The change in net position increased slightly by $115.3 million compared to the prior fiscal year. Below is an analysis of year-over-year variances:

• Total governmental activities revenues increased by $69 million or 12.62 percent compared to the prior fiscal year. The drivers were higher taxes, fees from programs, and investment income. • Total governmental activities expenses show an increase of $52.4 million. This increase is primarily attributable to continued labor cost growth, including salary increases for sworn positions, higher employee retirement contribution rates, and inflationary pressures across contractual services, utilities, fuel, and insurance. Pension and OPEB costs also contributed to the overall increase.

Business-type activities: Business-type activities: The change in net position increased by $53.4 million compared to the prior fiscal year, primarily due to improved investment earnings. Program revenues were increased by $24.6 million with additional in capital and operating grant funding, and expenses increased by $6.6 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 21.

Governmental Funds:

As of June 30, 2024, the City’s Governmental Funds reported a combined ending balance of $667.1 million, an increase of $56.1 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 $5 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 $431.7 million that is based on restrictions imposed by external parties or enabling legislation.
• Committed fund balance of $148.3 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 $31.3 million was constrained for the intent to be used for a specific purpose by a governing board or a body or official that has been delegated authority to assign amounts. The amount reported as assigned should not result in a deficit in the unassigned fund balance. • The unassigned fund balance of $50.7 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.

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

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

2024 2023 Increase/(Decrease)
Revenue by Source Amount Percent of Total Amount Percent of Total Amount Percent of Change Property taxes $ 45,400 8.5% $ 42,578 8.8% $ 2,822 6.6% Utility user 42,799 8.0% 42,445 8.8% 354 0.8%
Sales tax - levied by City 84,567 15.8% 90,305 18.6% (5,738) -6.4% Franchise fees 23,356 4.4% 22,547 4.7% 809 3.6%
Business license 20,421 3.8% 23,748 4.9% (3,327) -14.0% Transient occupancy tax 3,520 0.7% 3,433 0.7% 87 2.5%
Document Transfer/other 7,207 1.4% 5,657 1.2% 1,550 27.4% License and permits 10,060 1.9% 7,762 1.6% 2,298 29.6%
Intergovernmental 214,173 40.1% 188,691 38.9% 25,482 13.5% Charges for services 33,961 6.4% 35,677 7.4% (1,715) -4.8% Fines and forfeitures 1,166 0.2% 317 0.1% 848 267.2%
Use of money and property 16,489 3.1% 11,704 2.4% 4,786 40.9% Interest income 20,963 3.9% (248) -0.1% 21,211 -8556.1% Refunds and Reimbursements 525 0.1% 1,029 0.2% (504) -49.0% Miscellaneous 9,221 1.7% 8,951 1.8% 269 3.0%
Total $ 533,829 100.0% $ 484,596 100.0% $ 49,233 10.2%

The graph below shows 2024 revenue categories as a percent of the total.

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

Overall, governmental fund revenues were up $49.2 million compared to the prior year. Significant changes in revenues compared with the prior fiscal year are described below:
• Property tax increased $2.8 million or 6.63 percent, compared to the prior fiscal year. • Other governmental intergovernmental revenue increased $24.8 million or 32.23 percent, compared to the prior fiscal year.
• Use of money and property increased $4.8 million or 40.89 percent, compared to the prior fiscal year. • Investment income increased $21.2 million or 8555.92 percent increase, compared to the prior fiscal year.

The revenue increase was offset by the following:
• The Sales tax levied by City decreased $5.7 million or 6.4 percent, compared to the prior fiscal year, primarily due to shifts in consumer spending patterns and the impact of inflation on taxable sales. • Federal and state grant funds in the intergovernmental category were decreased $1.3 million or 3.67 percent compared to the prior fiscal year.
• Business license tax revenues decreased $3.3 million or 14 percent, due to a slowdown in economic activity and the clean-up of business license accounts, which resulted in more accurate and timely billing.

Expenditures – The following table presents expenditures (amounts in thousands) by function compared with the prior fiscal year:
2024 2023 Increase/(Decrease)

Expenditures by Function
Current:

General government
Public safety
Public works
Library
Parks and recreation
Capital outlay
Debt service
Total
The graph below shows 2024 expenditures categories as a percent of the total.

Amount
Percent of
Total

Amount
Percent of
Total

Amount
Percent of
Change

$ 69,845

14.5%

$ 53,152

12.4%

$ 16,693

31.4%
251,434 52.2% 227,859 53.1% 23,575 10.3%
37,436 7.8% 35,659 8.3% 1,777 5.0%
16,571 3.4% 15,643 3.6% 928 5.9%
20,979 4.4% 17,601 4.1% 3,378 19.2%
71,362 14.8% 65,959 15.4% 5,403 8.2%
14,275 3.0% 13,326 3.1% 949 7.1%
$ 481,902 100.0% $ 429,199 100.0% $ 52,703 12.3%

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FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
13 Significant changes compared with the prior fiscal year include:
• General government expenditures were $69.8 million at the close of June 30, 2024, an increase of $16.6 million or an increase 31.4 percent compared to the prior fiscal year. • Public Safety expenditures increased by $23.5 million due primarily to salary and benefit increases for sworn personnel and rising pension contributions.
• Parks and recreation expenditure increased $3.3 million primarily due to expanded special event programming at venues and community centers.
• Capital outlay expenses increased $5.4 million compared to the prior year with construction expenses for major projects such as new City Hall, the Northeast Library and Recreation center, and upgrades at the Stockton Soccer Complex.
• Debt service expenses increased $0.9 million with the final 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.

General Fund

Below is a graph that depicts the change in General Fund balances between FY 2022 -23 and FY 2023 -24. The committed and unassigned balances have increased from the prior fiscal year.

Fund Balance
(in millions)

NOTE: Does not include PARS 115 Trust

The City’s General Fund provides police, fire, development, public works, and administrative services to the City’s residents, other funds, businesses, and visitors. The General Fund is distinct from the City’s other funds because it is the only source of unrestricted funds that the City Council can allocate at its discretion for any municipal purpose.

General Fund revenues were $349.5 million at the close of June 30, 2024, an increase of $14.0 million (4.2 percent) compared to the prior fiscal year. Significant changes in General Fund revenues compared with the previous fiscal year include:

• Business license tax revenues decreased by $3.3 million in part due to a slowing of economic activity in the past year which reflects in gross receipt reporting and a clean -up of business license data resulting in more accurate and timely billing of business license accounts.

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FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
14 General Fund, Continued

• Due to the historic low-interest rate environment, interest income resulted in a deficit in the prior year when adjusting for fair market value. Overall investment income increased by $11.6M compared to the prior fiscal year. FY 2023-24 interest income reflects an improved rate environment. • Sales tax levied by the City and the State decreased by $1.5 million in the General Fund compared to the prior fiscal year, reflecting shifts in consumer spending and the effects of inflation on taxable sales. • Property tax revenues increased by $2.8 million due to increased construction and assessed value.

General Fund expenditure was $293.1 million, an increase of $29.5 million, or 12.2 percent, compared to the prior fiscal year. General government expenses increased by $7.9 million. Public safety expenses grew by $19.0 million, primarily due to a 10.3 percent salary increase for sworn positions effective July 1, 2023, and higher retirement costs.

Parks and recreation expenses increased by $0.5 million, largely due to expanded programming at entertainment venues and community facilities.

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, 2024, business-type activities' net position was $753.9 million, an increase of $53.4 million or 7.62 percent compared to the prior fiscal year.

The assets and deferred outflows of resources increased by a combined total of $63.8 million. Of this amount, the current cash and investments and other existing assets increased by $39.2 million, and non -current assets, including capital assets and deferred outflows, increased by $24.51 million.

The liabilities and deferred inflows of resources increased by $10.4 million primarily due to SRF loan drew during the year.

GENERAL FUND BUDGETARY HIGHLIGHTS

The City’s FY 2023 -24 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 2023 -24 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. 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 103.

The General Fund’s original budgeted revenues totaled $323.1 million and increased to $323.3 million during the fiscal year. The General Fund ended the fiscal year with total revenues of $349.5 million, reflecting a $26.2 million, or 8.1 percent, increase over the final budget. The most significant revenue variance was revenue from investment income at $9.7 million, more than the budget. Collection of Business license taxes continued to improve resulting in $3.8 million more revenue than anticipated in the final budget. Another large budget variance was in Utility user taxes $2.3 million which benefited from electricity and gas rate increases.

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GENERAL FUND BUDGETARY HIGHLIGHTS, CONTINUED
15 The General Fund’s original expenditure budget of $295.2 million was adjusted by encumbrances and commitments carried forward from the prior year for a total final budget of $322.2 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 GASB 96 and GASB 87. Actual expenditures were lower than the final approved budget appropriations by $29 million, or 9 percent. Of this variance, $11.7 million in appropriations rolled into FY 2024-25 for encumbrances and specific City Council authorized activities. General Government departments experienced budget savings of $9 million, Public Works activities were under budget by $1.7 million, Parks and recreation activities were under budget by $5.6 million, Library expenses were $1.7 million below budget, and $9.2 million was saved in Public Safety. A significant contributing factor to the savings was staff vacancies. Approximately $9.5 million in savings was a result of higher -than-anticipated vacancies across all General Fund departments. Of the excess revenues over expenditures, Council appropriated $25.2 million rolled into FY 2024 -25 for additional authorized activities.

The City’s General Fund balance on June 30, 2024, was $228.8 million on a budgetary basis, which is an increase of $16.4 million from the prior year. The City Council authorized $13.2 million of this increase to be added to General Fund reserves for a total funded reserve of $139 million. The ACFR reporting of General Fund balance at $240.1 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 ($224.2 million) separate from ancillary services of libraries, recreation, etc. Of the $240.1 million total General Fund balance, $51.3 million is unassigned, $84.3 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, 2024, amounted to $1.82 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 and amortization, for the governmental and business-type activities are presented below to illustrate changes from the prior year (amounts in thousands):

Governmental
Activities
Business-Type
Activities

Total

Land
Intangible Assets
Building and Improvements
Machinery and Equipment
Infrastructure
Construction in Progress
Lease & Subscription Assets
Total

Additional information on the City’s capital assets can be found in Note 7 - Capital Assets in this report. 2024 2023 2024 2023 2024 2023
$ 38,616 $ 38,197 $ 14,767 $ 15,127 $ 53,384 $ 53,324
4,355 4,355 - - 4,355 4,355
168,326 174,028 576,374 586,998 744,700 761,026
38,578 29,142 5,130 6,351 43,707 35,494
386,005 374,060 - - 386,005 374,060
302,703 252,839 272,834 233,679 575,538 486,519
12,369 10,120 2,268 2,496 14,636 12,617
$ 950,951 $ 882,742 $ 871,373 $ 844,652 $ 1,822,325 $ 1,727,393

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ATTACHMENT A

CAPITAL ASSETS AND DEBT ADMINISTRATION, CONTINUED
16 Bond Indebtedness

At the end of the fiscal year, the City’s total long-term bonded debt was $457.2 million. The outstanding net bonded debt, including bankruptcy settlements, was $443.8 million. Of this amount, $52.6 million is related to governmental activities, and $391.2 million are debt obligations of business-type activities.

Governmental activities bonded indebtedness decreased by $237,557 because of the scheduled principal payments.

Business-type activities bonded indebtedness also increased by $10.7 million due to the scheduled debt service payments for the enterprise debt and added $35.1 million for the SRF loan.

Governmental outstanding net bonded debt of $52.6 million reflects the settlement liability to the bond insurer (Assured Guaranty) for 2007 bonds adjusted in bankruptcy.

Business-type activities outstanding net bonded debt obligations of $393.5 million include $170.7 million of revenue bonds of the Water Utility, $181.6 million in revenue bonds, EPA WIFIA loan and SRF Loan for the Wastewater Utility, and $27.9 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 $82.4 million is reported separately in a Private Purpose Trust Fund. The balance outstanding at June 30, 2024, includes $79.0 million of tax-exempt tax allocation bonds issued to refinance revenue bonds for various former redevelopment projects and $3.4 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

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City of Stockton
17 Statement of Net Position
June 30, 2024

Governmental
Activities

ASSETS
Business-Type
Activities

Totals
Cash and investments $ 739,638,020 $ 251,960,633 $ 991,598,653 Restricted cash and investments 81,941,443 8,015,460 89,956,903 Interest receivable 3,840,867 1,153,469 4,994,336
Accounts receivable 22,150,443 30,382,889 52,533,332
Due from other governments 43,600,912 569,530 44,170,442 Internal balances 5,713,019 (5,713,019) -
Inventory of supplies 1,161,457 2,724,063 3,885,520
Prepaid items 4,652,744 2,613,422 7,266,166
Lease receivable 1,392,524 - 1,392,524
Advance deposits 2,318,715 415,787 2,734,502
Loans to Successor Agency, net 1,106,580 - 1,106,580
Loans to property owners, net
Capital assets:

Nondepreciable and nonamortizable
157,525,084

345,674,537
190,000

287,601,750
157,715,084

633,276,287
Depreciable and amortizable, net 605,276,841 583,771,519 1,189,048,360 Total assets 2,015,993,186 1,163,685,503 3,179,678,689

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt

-

11,826,697

11,826,697
Pension-related deferred outflows of resources 173,467,919 4,987,328 178,455,247 Total deferred outflows of resources 173,467,919 16,814,025 190,281,944

LIABILITIES
Accounts payable and accrued expenses

31,643,538

7,637,156

39,280,694
Accrued payroll and benefits 3,821,219 1,575,533 5,396,752 Due to other governments/agencies 3,064,345 95,237 3,159,582 Accrued interest 1,634,716 3,245,909 4,880,625
Deposits and other liabilities 2,089,830 2,349,021 4,438,851 Retention payable 1,757,049 1,222,690 2,979,739
Unearned revenue
Long-term liabilities:

Due within one year:

Compensated absences
77,447,843

6,012,225
-

802,235
77,447,843

6,814,460
Claims payable 12,899,199 - 12,899,199
Long-term debt
Due in more than one year:

Compensated absences
4,446,776

4,530,225
15,376,029

471,547
19,822,805

5,001,772
Claims payable 67,160,348 - 67,160,348
Long-term debt 59,289,829 378,129,621 437,419,450
Aggregate net pension liability 612,404,122 15,532,942 627,937,064 Total liabilities 888,201,264 426,437,920 1,314,639,184

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources

3,451,886

131,966

3,583,852
Leases 1,323,214 - 1,323,214
Total deferred inflows of resources 4,775,100 131,966 4,907,066

NET POSITION
Net investment in capital assets

885,457,724

488,471,626

1,373,929,350
Restricted 518,950,891 26,030,333 544,981,224
Unrestricted (deficit) (107,923,874) 239,427,683 131,503,809 Total net position $ 1,296,484,741 $ 753,929,642 $ 2,050,414,383 See accompanying Notes to the Basic Financial Statements.

ATTACHMENT A

ATTACHMENT A
18 City of Stockton
Statement of Activities
For the Year Ended June 30, 2024

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

Governmental activities:

General government $ 73,367,881 $ 31,550,334 $ 43,283,060 $ 3,413,527 Public safety 262,820,890 19,055,368 12,767,180 -
Public works 44,445,411 14,219,815 154,014 38,125,369 Library 17,204,926 7,862,784 27,500 -
Parks and recreation 24,176,341 1,196,201 92,419 -
Interest and fiscal charges 10,377,066 - - -
Total governmental activities 432,392,515 73,884,502 56,324,173 41,538,896 Business-type activities:

Water Utility 51,108,476 63,578,685 566,213 10,047,520 Wastewater Utility 73,556,907 87,106,533 1,796,280 5,585,932 Stormwater Utility 8,788,267 5,993,392 - 4,000,581
Parking Authority 5,767,241 5,435,338 1,819,942 -
Downtown Marina 1,241,868 429,310 - -
Golf Courses 770,057 - - -
Total business-type activities 141,232,816 162,543,258 4,182,435 19,634,033 Total $ 573,625,331 $ 236,427,760 $ 60,506,608 $ 61,172,929

See accompanying Notes to the Basic Financial Statements.

ATTACHMENT A

ATTACHMENT A
City of Stockton
19 Statement of Activities (Continued)
For the Year Ended June 30, 2024

Net (Expense) Revenue and
Change in Net Position
Functions/Programs
PRIMARY GOVERNMENT:

Governmental
Activities
Business-Type
Activities

Totals
Governmental activities:

General government $ 4,879,040 $ - $ 4,879,040
Public safety (230,998,342) - (230,998,342)
Public works 8,053,787 - 8,053,787
Library (9,314,642) - (9,314,642)
Parks and recreation (22,887,721) - (22,887,721)
Interest and fiscal charges (10,377,066) - (10,377,066) Total governmental activities (260,644,944) - (260,644,944) Business-type activities:

Water Utility - 23,083,942 23,083,942
Wastewater Utility - 20,931,838 20,931,838
Stormwater Utility - 1,205,706 1,205,706
Parking Authority - 1,488,039 1,488,039
Downtown Marina - (812,558) (812,558)
Golf Courses - (770,057) (770,057)
Total business-type activities - 45,126,910 45,126,910 Total (260,644,944) 45,126,910 (215,518,034)
General revenues and transfers:

General revenues:

Taxes:

Property 45,403,732 - 45,403,732
Utility user 42,799,092 - 42,799,092
Sales - levied by City 77,027,468 - 77,027,468
Franchise fees 23,476,016 - 23,476,016
Business license 20,430,062 - 20,430,062
Transient occupancy tax 3,520,339 - 3,520,339
Document transfer 991,618 - 991,618
Other
Shared revenue:
6,215,234 - 6,215,234
Vehicle license fees 31,590,015 - 31,590,015
Sales and use tax levied by state 78,923,776 - 78,923,776 Investment earnings 35,847,022 8,976,917 44,823,939
Miscellaneous 9,031,058 - 9,031,058
Transfers 717,884 (717,884) -
Total general revenues and transfers 375,973,316 8,259,033 384,232,349

Changes in net position

115,328,372

53,385,943

168,714,315
Net position:

Beginning of year

1,181,156,369

700,543,699

1,881,700,068
End of year $ 1,296,484,741 $ 753,929,642 $ 2,050,414,383

See accompanying Notes to the Basic Financial Statements.

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21 GOVERNMENT FUND FINANCIAL STATEMENTS

Governmental Fund Types

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

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 oth er capital assets.

The City's major governmental funds include:

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 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).

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 in other special revenue funds.

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

Individual nonmajor funds are presented in the Supplementary Information section.

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City of Stockton
See accompanying Notes to the Basic Financial Statements. 23 Balance Sheet
Governmental Funds
June 30, 2024

Major Funds
Special Revenue Funds

Capital Projects

ASSETS

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

Cash and investments $216,041,379 $ 4,163,737 $ 55,131,162 $ 29,417,162 $ 253,940,225 $ 558,693,665 Cash and investments with fiscal agents - 1,702,980 - - - 1,702,980 Receivables:

Interest 1,549,835 8,156 - 6,510 1,302,558 2,867,059 Accounts and other receivables 16,201,702 - 2,905,153 - 1,975,141 21,081,996 Lease 1,392,524 - - - - 1,392,524
Due from other governments 25,078,081 - 2,492,761 5,693,547 10,336,523 43,600,912 Inventory of supplies 681,775 - - - - 681,775
Prepaid items 447,184 - 499,860 - 1,673,742 2,620,786 Advance deposits 1,532,772 - 108,354 - 125,387 1,766,513 Loans to Successor Agency - - - - 1,106,580 1,106,580 Loans to property owners, net - 85,198,860 - - 72,326,224 157,525,084 Total assets $262,925,252 $ 91,073,733 $ 61,137,290 $ 35,117,219 $ 342,786,380 $ 793,039,874

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 8,599,778 108,872 2,988,239 10,408,119 3,322,974 25,427,982 Accrued payroll and benefits 1,080,555 37,616 341,770 116,119 1,655,898 3,231,958 Due to other governments 2,685,107 - - - 379,238 3,064,345 Deposits and other liabilities 932,980 - - - 1,107,746 2,040,726 Retention payable - 22,290 - 1,734,759 - 1,757,049 Unearned revenue 1,760,998 - 55,284,425 20,402,420 - 77,447,843 Total liabilities 15,059,418 168,778 58,614,434 32,661,417 6,465,856 112,969,903

Deferred inflows of resources:

Unavailable revenue - other 6,442,914 - 2,492,762 2,211,042 499,471 11,646,189 Lease 1,323,214 - - - - 1,323,214
Total deferred inflows of resources 7,766,128

- 2,492,762 2,211,042 499,471 12,969,403

Fund Balances:

Nonspendable 2,661,731 - 608,214 - 1,799,129 5,069,074 Restricted 6,508,291 90,904,955 - 244,760 334,021,924 431,679,930 Committed 148,294,684 - - - - 148,294,684
Assigned 31,322,378 - - - - 31,322,378
Unassigned (deficit) 51,312,622 - (578,120) - - 50,734,502 Total fund balances (deficit) 240,099,706 90,904,955 30,094 244,760 335,821,053 667,100,568 Total liabilities, deferred inflows
of resources and fund balances

$262,925,252

$ 91,073,733

$ 61,137,290

$ 35,117,219

$ 342,786,380

$ 793,039,874

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City of Stockton
See accompanying Notes to the Basic Financial Statements. 24 Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide Statement of Net Position
June 30, 2024

Total Fund Balances - Total Governmental Funds $ 667,100,568

Amounts reported for governmental activities in the Statement of Net Position are different because:

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

Non-depreciable (net of $34,578,280 reported in the Internal Service Funds) 311,096,257 Depreciable and amortizable (net capital assets $35,942,646 reported in the Internal Service Funds) 569,334,195

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. 248,179,268
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Compensated absences (net of $665,635 reported in Internal Service Funds) (9,876,815) Bonds payable and other long-term debt (net of $6,756,616 in leases and subscription liabilities reported in Internal Service Funds) (56,979,989)
Accrued interest payable (net of $7,873 reported in Internal Service Funds) (1,626,843) 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.

(612,404,122)
Actuarially determined pension deferred outflows of resources are reported in the government-wide statements but are not reported in the governmental funds. 173,467,919
Actuarially determined pension deferred inflows of resources are reported in the government-wide statements but are not reported in the governmental funds.

(3,451,886)
Revenues which are unavailable on the Fund Balance Sheet, because they are not available currently, are reported in revenue in the Statement of Activities:

Unavailable revenue - other 11,646,189

Net position of governmental activities

$ 1,296,484,741

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 25 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024

Major Funds
Special Revenue Funds

Capital Projects

REVENUES:

Taxes:

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

Property $ 45,400,105 $ - $ - $ - $ - $ 45,400,105
Utility user 42,799,092 - - - - 42,799,092
Sales - levied by City 46,214,556 - - - 38,352,704 84,567,260 Franchise fees 19,351,515 - - - 4,004,711 23,356,226 Business license 18,676,259 - - - 1,745,026 20,421,285
Hotel/motel room 3,520,339 - - - - 3,520,339
Document transfer 991,618 - - - - 991,618
Other 6,215,234 - - - - 6,215,234
Licenses and permits 375,315 - - - 9,685,076 10,060,391 Intergovernmental:

Federal grants and subsidies 224,488 6,081,722 21,155,021 6,048,719 14,386 33,524,336 Sales and use tax - levied by state 78,917,161 - - - - 78,917,161 Other governmental 47,037,140 1,762,629 19,396,377 9,455,395 24,079,555 101,731,096 Charges for services 11,164,587 3,150 - - 22,793,709 33,961,446 Fines and forfeitures 933,490 - - - 232,093 1,165,583
Use of money and property 9,307,520 5,533,956 - - 1,647,775 16,489,251 Interest income 12,058,411 106,214 - 57,309 8,740,796 20,962,730 Refunds and reimbursements 316,034 - 26,670 6,822 175,349 524,875 Miscellaneous 5,990,612 77,181 306,900 501,836 2,343,991 9,220,520 Total revenues 349,493,476 13,564,852 40,884,968 16,070,081 113,815,171 533,828,548

EXPENDITURES:

Current:

General government 25,623,236 7,159,944 27,037,207 - 10,024,663 69,845,050 Public safety 219,170,971 - 4,493,446 - 27,769,948 251,434,365 Public works 19,564,987 - 334,875 118,181 17,417,629 37,435,672 Library 12,638,836 - 682,243 - 3,257,052 16,578,131 Parks and recreation 13,324,394 - 2,232,294 - 5,414,634 20,971,322 Capital outlay
Debt service:

Principal retirement
1,545,723

1,306,917
-

1,976,732
5,833,529

26,098
54,828,553

-
9,154,069

653,120
71,361,874

3,962,867
Interest and fiscal charges 15,298 4,965 1,338 - 10,290,157 10,311,758 Total expenditures 293,190,362 9,141,641 40,641,030 54,946,734 83,981,272 481,901,039

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

56,303,114

4,423,211

243,938

(38,876,653)

29,833,899

51,927,509
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,181,818 28,562,744 10,348,133 40,092,695 Transfers out (29,523,956) (352,525) (51,500) - (8,873,646) (38,801,627) Issuance of debt 953,380 137 - - 1,968,288 2,921,805 Proceeds from sale of capital assets 3,518 - - - - 3,518 Total other financing sources (uses) (28,567,058) (352,388) 1,130,318 28,562,744 3,442,775 4,216,391 CHANGES IN FUND BALANCES 27,736,056

4,070,823

1,374,256

(10,313,909)

33,276,674

56,143,900
FUND BALANCES (DEFICIT):

Beginning of year 212,363,650 86,834,132 (1,344,162) 10,558,669 302,544,379 610,956,668 End of year $ 240,099,706 $ 90,904,955 $ 30,094 $ 244,760 $ 335,821,053 $ 667,100,568

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 26 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, 2024

Net change in fund balances - Total Governmental Funds: $ 56,143,900

Amounts reported for governmental activities in the Statement of Activities are different because:

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:

Capital outlays (net of $12,798,015 in Internal Service Funds) 71,361,874 Capital contribution 7,453,079
Contribution from the Golf Enterprise Fund due to the fund closing 493,009 Net transfer of capital assets to the Internal Service Funds (1,928,694) Loss on disposal (11,547)
Depreciation and amortization expenses (net of depreciation and amortization $7,754,019 reported in Internal Service Funds)

(20,767,204)

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:

Repayment of principal, net of $3,419,315 in Internal Service Funds 3,962,867 Inception of lease and subscription liabilities (2,921,805) Internal Service Fundss 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 Fundss is reported with governmental activities. Excluding extraordinary items as a result of remeasurement of liabilities.

30,758,073
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):

Change in compensated absences (net of $203,795 in Internal Service Funds) 1,708,960 Change in accrued interest 40,999
Change in unavailable revenue - other (3,312,801)
Changes in deferred outflows, deferred inflows, and net pension liability (27,652,338)

Changes in net position of governmental activities

$ 115,328,372

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ATTACHMENT A
27 PROPRIETARY FUND FINANCIAL STATEMENTS

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

The City's major enterprise funds include:

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 collection, treatment, and disposal of wastewater, and operations related to the provision of services.

Individual nonmajor funds are presented in the Supplementary Information section.

ATTACHMENT A

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See accompanying Notes to the Basic Financial Statements. 28 City of Stockton

Statement of Net Position
Proprietary Funds
June 30, 2024

Major Enterprise Funds Nonmajor

ASSETS

Water Wastewater Enterprise
Utility Utility Funds

Current assets:

Cash and investments $ 121,203,831 $ 119,369,903 $ 11,386,899 Receivables, net:

Interest 581,489 501,476 70,504
Accounts and other receivables 13,051,075 17,111,975 219,839 Loans to other funds - current - - -
Due from other governments 569,530 - -
Inventory of supplies - 2,724,063 -
Deposits and advances 84,254 157,067 174,466
Prepaids items 2,316,678 271,038 25,706
Total current assets 137,806,857 140,135,522 11,877,414

Noncurrent assets:

Restricted assets:

Cash and investments - - -
Cash and investments with fiscal agents
Loans to other funds - long-term
Loans receivable
Capital assets, net:

Nondepreciable
21,355
-
-

17,061,030
4,217,784
-
-

263,113,693
3,776,321
-
190,000

7,427,027
Depreciable and amortizable, net 274,524,989 227,483,162 81,763,368 Total noncurrent assets 291,607,374 494,814,639 93,156,716 Total assets 429,414,231 634,950,161 105,034,130

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt

10,552,205

881,893

392,599
Pension-related deferred outflows 1,472,264 3,164,801 350,263 Total deferred outflows of resources 12,024,469 4,046,694 742,862

ATTACHMENT A

ATTACHMENT A
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal Service
Funds Total
See accompanying Notes to the Basic Financial Statements. 29 ASSETS
Current assets:

Cash and investments $ 251,960,633 $ 180,944,355
Receivables, net:

Interest 1,153,469 973,808
Accounts and other receivables 30,382,889 1,068,447
Loans to other funds - current - 1,095,577
Due from other governments 569,530 -
Inventory of supplies 2,724,063 479,682
Deposits and advances 415,787 552,202
Prepaids items 2,613,422 2,031,958
Total current assets 289,819,793 187,146,029

Noncurrent assets:

Restricted assets:

Cash and investments - 80,238,463
Cash and investments with fiscal agents 8,015,460 -
Loans to other funds - long-term
Loans receivable
Capital assets, net:

Nondepreciable
-
190,000

287,601,750
5,561,687
-

34,578,280
Depreciable and amortizable, net 583,771,519 35,942,646 Total noncurrent assets 879,578,729 156,321,076
Total assets 1,169,398,522 343,467,105

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt

11,826,697

-
Pension-related deferred outflows 4,987,328 -
Total deferred outflows of resources 16,814,025 -

ATTACHMENT A

ATTACHMENT A
See accompanying Notes to the Basic Financial Statements. 30 City of Stockton

Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024

Major Enterprise Funds Nonmajor
Water
Utility
Wastewater
Utility
Enterprise
Funds

LIABILITIES
Current liabilities:

Accounts payable

1,069,049

6,317,774

250,333
Accrued payroll 462,267 966,324 146,942
Loans from other funds - current - - 666,487
Due to other governments 95,237 - -
Deposits and other liabilities 2,171,255 6,662 171,104 Retention payable 268,917 950,961 2,812
Accrued interest 1,813,185 1,010,501 422,223
Compensated absences - current 257,830 365,773 178,632 Lease liabilities - due in one year
Subscription liabilities - due in one year
Self-insurance claims and judgments - current
Loans payable - current
-
-
-
-
-
-
-
1,252,669
183,596
-
-
-
Bonds payable - current 7,340,073 5,819,981 779,710
Total current liabilities 13,477,813 16,690,645 2,801,839

Noncurrent liabilities:

Compensated absences - long-term

173,170

203,205

95,172
Lease liabilities - due in more than one year
Subscription liability - due in more than one year
Self-insurance claims and judgments - long-term
Loans from other funds - long-term
Loans payable
-
-
-
-
-
-
-
-
-
33,847,331
2,127,717
-
-
5,046,532
-
Bonds payable 163,441,116 140,663,920 38,049,537
Net pension liability 4,524,108 9,982,023 1,026,811
Total noncurrent liabilities 168,138,394 184,696,479 46,345,769 Total liabilities 181,616,207 201,387,124 49,147,608

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows

39,503

82,622

9,841
Total deferred inflows of resources 39,503 82,622 9,841

NET POSITION
Net investment in capital assets

131,088,118

308,943,886

48,439,622
Restricted for capital projects 21,355 9,194,275 1,996,012 Restricted for debt service
Restricted for pensions
Unrestricted
-
-
128,673,517
13,038,382
-
106,350,566
1,780,309
-
4,403,600
Total net position $ 259,782,990 $ 437,527,109 $ 56,619,543

ATTACHMENT A

ATTACHMENT A
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal Service
Funds Total
See accompanying Notes to the Basic Financial Statements. 31 LIABILITIES
Current liabilities:

Accounts payable

7,637,156

6,215,556
Accrued payroll 1,575,533 589,261
Loans from other funds - current 666,487 429,089
Due to other governments 95,237 -
Deposits and other liabilities 2,349,021 49,104
Retention payable 1,222,690 -
Accrued interest 3,245,909 7,873
Compensated absences - current 802,235 412,794
Lease liabilities - due in one year 183,596 250,931
Subscription liabilities - due in one year - 2,690,589 Self-insurance claims and judgments - current - 12,899,199 Loans payable - current 1,252,669 -
Bonds payable - current 13,939,764 -
Total current liabilities 32,970,297 23,544,396

Noncurrent liabilities:

Compensated absences - long-term

471,547

252,841
Lease liabilities - due in more than one year 2,127,717 50,965 Subscription liability - due in more than one year - 3,764,131 Self-insurance claims and judgments - long-term - 67,160,348 Loans from other funds - long-term 5,046,532 515,156
Loans payable 33,847,331 -
Bonds payable 342,154,573 -
Net pension liability 15,532,942 -
Total noncurrent liabilities 399,180,642 71,743,441
Total liabilities 432,150,939 95,287,837

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows

131,966

-
Total deferred inflows of resources 131,966 -

NET POSITION
Net investment in capital assets

488,471,626

63,764,310
Restricted for capital projects 11,211,642 -
Restricted for debt service 14,818,691 -
Restricted for pensions - 80,238,463
Unrestricted 239,427,683 104,176,495
Total net position $ 753,929,642 $ 248,179,268

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 32 Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024

Major Enterprise Funds Nonmajor
Water
Utility
Wastewater
Utility
Enterprise
Funds
OPERATING REVENUES:

Charges for services $ 57,455,495 $ 85,389,789 $ 11,662,367 Miscellaneous 6,123,190 1,716,744 195,673
Total operating revenues 63,578,685 87,106,533 11,858,040

OPERATING EXPENSES:

Operation and maintenance 16,235,939 48,123,343 7,846,083 General and administrative 5,077,700 9,860,481 3,488,360 Depreciation and amortization 8,068,921 13,062,277 3,362,799 Purchased water 16,485,899 - -
Total operating expenses 45,868,459 71,046,101 14,697,242

OPERATING INCOME (LOSS)

17,710,226

16,060,432

(2,839,202)

NONOPERATING REVENUES (EXPENSES):

Taxes - - 1,574,103
Grants and subsidies 566,213 1,796,280 245,839
Interest income 4,317,769 4,046,253 612,895
Interest expense and fiscal charges
Other nonoperating revenues
Loss on disposal of lease asset
(5,240,017)
-
-
(2,510,806)
-
-
(1,100,134)
-
-
Total nonoperating revenues (expenses) (356,035) 3,331,727 1,332,703

INCOME (LOSS) BEFORE CAPITAL

CONTRIBUTIONS AND TRANSFERS

17,354,191

19,392,159

(1,506,499)
CONTRIBUTIONS AND TRANSFERS:

Capital contributions
Contribution to governmental activities
10,047,520
-
3,142,095
-
-
(770,057)
Developer contributions - 2,443,837 4,000,581
Transfers in - - 262,000
Transfers out (474,899) (301,657) (203,328)
Total contributions and transfers 9,572,621 5,284,275 3,289,196

CHANGES IN NET POSITION

26,926,812

24,676,434

1,782,697
NET POSITION:

Beginning of year 232,856,178 412,850,675 54,836,846 End of year $ 259,782,990 $ 437,527,109 $ 56,619,543

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 33 Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2024

Governmental
Activities
Internal Service
Total Funds
OPERATING REVENUES:

Charges for services $ 154,507,651 $ 179,251,493
Miscellaneous 8,035,607 212,983
Total operating revenues 162,543,258 179,464,476

OPERATING EXPENSES:

Operation and maintenance 72,205,365 149,242,776
General and administrative 18,426,541 8,953,058
Depreciation and amortization 24,493,997 7,754,019
Purchased water 16,485,899 -
Total operating expenses 131,611,802 165,949,853

OPERATING INCOME (LOSS)

30,931,456

13,514,623

NONOPERATING REVENUES (EXPENSES):

Taxes 1,574,103 -
Grants and subsidies 2,608,332 -
Interest income 8,976,917 14,856,726
Interest expense and fiscal charges (8,850,957) (106,307) Other nonoperating revenues - 321,761
Loss on disposal of lease asset - (761,285)
Total nonoperating revenues (expenses) 4,308,395 14,310,895

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 35,239,851 27,825,518

CONTRIBUTIONS AND TRANSFERS:

Capital contributions 13,189,615 3,505,739
Contribution to governmental activities (770,057) -
Developer contributions 6,444,418 -
Transfers in 262,000 801,846
Transfers out (979,884) (1,375,030)
Total contributions and transfers 18,146,092 2,932,555

CHANGES IN NET POSITION

53,385,943

30,758,073
NET POSITION:

Beginning of year

700,543,699

217,421,195
End of year $ 753,929,642 $ 248,179,268

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 34 Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024

Major Enterprise Funds Nonmajor
Water
Utility
Wastewater
Utility
Enterprise
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users
Receipts for interfund services provided
Payments to suppliers and employees
$ 56,252,242
-
(40,380,638)
$ 82,705,695
-
(57,020,408)
$ 12,306,789
-
(11,664,251)
Miscellaneous receipts 6,123,190 1,716,744 195,673
Net cash provided by operating activities 21,994,794 27,402,031 838,211

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net

(474,899)

(301,657)

58,672
Loans to and from other funds - - (655,208)
Receipt of cash subsidies and federal grants
Other nonoperating revenues
Proceeds from taxes
2,851,117
-
-
1,796,280
-
-
-
-
1,819,942
Net cash provided by noncapital financing activities 2,376,218 1,494,623 1,223,406

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets

475,214

306,261

43,192
Purchases of capital assets (9,112,876) (38,398,654) (4,989,474) Capital contributions received 10,047,520 5,585,932 4,000,581 Proceeds from issuance of debt - 35,099,112 -
Principal paid on debt (18,179,461) (5,377,577) (925,413) Unamortized loss on refunding of debt and discount 721,388 170,584 - Interest paid on debt (5,414,162) (2,588,056) (1,114,870) Net cash (used in) capital and related financing activities (21,462,377) (5,202,398) (2,985,984)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings

4,185,119

3,954,445

610,183
Net cash provided by investing activities 4,185,119 3,954,445 610,183

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS

7,093,754

27,648,701

(314,184)
CASH AND CASH EQUIVALENTS:

Beginning of year

114,131,432

95,938,986

15,477,404
End of year $ 121,225,186 $ 123,587,687 $ 15,163,220

NONCASH ITEMS:

Acquisition of subscription assets

$

-

$

-

$

-
Issuance of subscription liabilities $ - $ - $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal Service
See accompanying Notes to the Basic Financial Statements. 35 Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 151,264,726 $ -
Receipts for interfund services provided - 182,914,873 Payments to suppliers and employees (109,065,297) (156,521,388) Miscellaneous receipts 8,035,607 5,991,922
Net cash provided by operating activities 50,235,036 32,385,407

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (717,884) (573,184)
Due to and from other funds (655,208) 674,976
Receipt of cash subsidies and federal grants 4,647,397 - Other nonoperating revenues - 321,761
Proceeds from taxes 1,819,942 -
Net cash provided by noncapital financing activities 5,094,247 423,553

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 824,667 -
Purchases of capital assets (52,501,004) (12,814,512)
Capital contributions received 19,634,033 -
Proceeds from issuance of debt 35,099,112 -
Principal paid on debt (24,482,451) (3,534,681)
Unamortized loss on refunding of debt 891,972 -
Interest paid on debt (9,117,088) (109,760)
Net cash (used in) capital and related financing activities (29,650,759) (16,458,953)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 8,749,747 14,573,182
Net cash provided by investing activities 8,749,747 14,573,182

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS

34,428,271 30,923,189

CASH AND CASH EQUIVALENTS:

Beginning of year 225,547,822 230,259,629
End of year $ 259,976,093 $ 261,182,818

NONCASH ITEMS:

Acquisition of subscription assets $ - $ 4,641,647
Issuance of subscription liabilities $ - $ 4,641,647

ATTACHMENT A

ATTACHMENT A
City of Stockton
See accompanying Notes to the Basic Financial Statements. 36 Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024

Major Enterprise Funds Nonmajor
Water Wastewater Enterprise
Utility Utility Funds

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments $ 121,203,831 $ 119,369,903 $ 11,386,899 Restricted assets:

Cash and investments - - -
Cash and investments with fiscal agents 21,355 4,217,784 3,776,321 Total cash and investments $ 121,225,186 123,587,687 $ 15,163,220

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

Operating income (loss) $ 17,710,226 $ 16,060,432 $ (2,839,202) Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 8,068,921 13,062,277 3,362,799 Changes in assets and liabilities:

Accounts receivables (1,203,253) (2,684,094) 643,844
Due from other funds - - -
Prepaid items (2,216,100) (53,814) 35,231
Lease receivable - - 33,073
Lease related deferred inflows - - (32,495)
Inventory of supplies - (417,166) -
Deposits and advances (84,254) (157,067) (76,295)
Accounts payable (203,689) 1,980,243 (413,311)
Accrued payroll 74,370 82,828 13,425
Accrued liabilities - - (25)
Deposits and other liabilities 24,244 (67,960) 18,431 Compensated absences (279,152) (125,653) 121,765
Self-insurance - claims and judgments - - -
Net pension liability (48,261) (989,501) (71,159)
Pension-related deferred outflows 248,551 932,221 70,871 Pension-related deferred inflows (96,809) (220,715) (28,741) Net cash provided by operating activities $ 21,994,794 $ 27,402,031 $ 838,211

NONCASH TRANSACTIONS:

Amortization of loss on refunding $ 721,388 $ 170,584 $ - Capital contributions received - 2,443,837 4,000,581
Total noncash capital and related financing activities $ 721,388 $ 2,614,421 $ 4,000,581

ATTACHMENT A

ATTACHMENT A
City of Stockton
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal Service
See accompanying Notes to the Basic Financial Statements. 37 Totals Funds

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments $ 251,960,633 $ 180,944,355
Restricted assets:

Cash and investments - 80,238,463
Cash and investments with fiscal agents 8,015,460 -
Total cash and investments $ 259,976,093 $ 261,182,818

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

Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
$ 30,931,456 $ 13,514,623
Depreciation and amortization 24,493,997 7,754,019
Changes in assets and liabilities:

Accounts receivables (3,243,503) 3,470,165
Due from other funds - (19,768)
Prepaid items (2,234,683) 2,093,225
Lease receivable 33,073 -
Lease related deferred inflows (32,495) -
Inventory of supplies (417,166) (417,121)
Deposits and advances (317,616) (282,248)
Accounts payable 1,363,243 (36,542)
Accrued payroll 170,623 113,337
Due to other funds (25) -
Deposits and other liabilities (25,285) -
Compensated absences (283,040) 203,795
Self-insurance - claims and judgments - 5,991,922
Net pension liability (1,108,921) -
Pension-related deferred outflows 1,251,643 -
Pension-related deferred inflows (346,265) -
Net cash provided by operating activities $ 50,235,036 $ 32,385,407

NONCASH TRANSACTIONS:

Amortization of loss on refunding $ 891,972 $ -
Capital contributions received 6,444,418 3,505,739
Total noncash capital and related financing activities $ 7,336,390 $ 3,505,739

ATTACHMENT A

ATTACHMENT A
38 This page intentionally left blank.

ATTACHMENT A

ATTACHMENT A
39 FIDUCIARY FUND FINANCIAL STATEMENTS

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

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

Successor Agency to the Redevelopment Agency of the City of Stockton 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.

ATTACHMENT A

ATTACHMENT A
40 This page intentionally left blank.

ATTACHMENT A

ATTACHMENT A
41 City of Stockton
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024

Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS

Cash and investments $ 26,189,467 $ 7,549,111
Cash and investments with fiscal agents 10,691,565 988
Receivables, net:

Interest 149,190 36,559
Accounts and other receivables 1,472,077 -
Lease - 26,036
Capital assets:

Nondepreciable - 12,231,979
Depreciable and amortizable, net - 10,829,739
Total assets 38,502,299 30,674,412

LIABILITIES

Accounts payable
Accrued payroll
Deposits and other liabilities
Due to other governments
Loans from the City
77,753
-
-
1,235,796
-
-
-
114
-
1,106,580
Accrued interest - 1,155,904
Lease liabilities - current - 5,398
Bonds payable - current - 4,582,548
Bonds payable - noncurrent - 77,860,384
Pollution remediation - 275,000
Total liabilities 1,313,549 84,985,928

DEFERRED INFLOWS OF RESOURCES

Lease - 25,534
Total deferred inflows of resources - 25,534

NET POSITION (DEFICIT)

Held in Trust
Restricted for individual, organization, and other governments -
37,188,750
(54,337,050)
-
Total net position (deficit) $ 37,188,750 $ (54,337,050)

See accompanying Notes to the Basic Financial Statements.

ATTACHMENT A

ATTACHMENT A
42 City of Stockton

Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024

Custodial
Successor
Agency to the
Redevelopment
Agency
Private-Purpose
Funds Trust Fund
ADDITIONS:

Property tax $ 9,562,617 $ 7,537,714
Use of money and property 148,212 6,980
Investment income 1,131,460 281,178
Debt issued 14,046,693 -
Miscellaneous 3,453,462 84,409
Total additions 28,342,444 7,910,281

DEDUCTIONS:

General government 12,056,377 138,524
Public works 7,175,511 -
Debt obligations 8,702,636 2,953,511
Depreciation and amortization - 575,821
Miscellaneous - 1,762,629
Total deductions 27,934,524 5,430,485

CHANGE IN NET POSITION

407,920

2,479,796
NET POSITION (DEFICIT):

Beginning of year 36,780,830 (56,816,846)
End of year $ 37,188,750 $ (54,337,050)

See accompanying Notes to the Basic Financial Statements.

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A
City of Stockton
43 Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2024
Page
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 .................................................................................................. 49 D. Encumbrances ............................................................................................................................................ 49 E. Cash, Cash Equivalents, and Investments .................................................................................................. 49 F. Restricted Cash and Investments ............................................................................................................... 50 G. Fair Value Measurement ........................................................................................................................... 50 H. Receivables ................................................................................................................................................ 51 I. Interfund Loans and Advances .................................................................................................................. 51 J. Inventory of Supplies................................................................................................................................. 51 K. Prepaid Items ............................................................................................................................................. 52 L. Lease Receivable ....................................................................................................................................... 52 M. Capital Assets ............................................................................................................................................ 52 N. Capital Contributions ................................................................................................................................. 53 O. Accrued Payroll and Related Liabilities .................................................................................................... 53 P. Compensated Absences ............................................................................................................................. 54 Q. Long-Term Debt ........................................................................................................................................ 54 R. Lease Liabilities ......................................................................................................................................... 54 S. Subscription Liabilities .............................................................................................................................. 55 T. Pensions ..................................................................................................................................................... 55 U. Net Position ............................................................................................................................................... 56 V. Fund Balances ........................................................................................................................................... 56 W. Property Taxes ........................................................................................................................................... 57 X. Use of Estimates. ....................................................................................................................................... 58 Y. Implementation of New GASB Pronouncements ...................................................................................... 58 Note 2 – Cash and Investments .................................................................................................................................. 58 A. Cash Deposits ............................................................................................................................................ 59 B. Authorized Investments ............................................................................................................................. 60 C. Investments in Local Agency Investment Fund ......................................................................................... 61 D. Investments in California Asset Management Program ............................................................................. 62 E. Fair Value of Investments .......................................................................................................................... 62 F. Risk Disclosures ........................................................................................................................................ 62 G. Restricted Cash and Investments ............................................................................................................... 64 Note 3 – Interfund Transactions ................................................................................................................................ 65 A. Loans To/From Other Funds ..................................................................................................................... 65 B. Transfers .................................................................................................................................................... 66 Note 4 – Lease Receivable ........................................................................................................................................... 66 Note 5 – Successor Agency – Loans from City .......................................................................................................... 67 Note 6 – Loans to Property Owners, Net ................................................................................................................... 68 Index to the Notes to the Basic Financial Statements (Continued)

ATTACHMENT A

ATTACHMENT A
City of Stockton
44 For the Year Ended June 30, 2024
Page
Note 7 – Capital Assets ............................................................................................................................................... 69 A. Government-Wide Financial Statements ................................................................................................... 69 B. Governmental Activities ............................................................................................................................ 70 C. Business-Type Activities ........................................................................................................................... 71 D. Fiduciary Fund Activities .......................................................................................................................... 72 Note 8 – Long-Term Liabilities .................................................................................................................................. 73 A. Governmental Activities ............................................................................................................................ 73 B. Business-Type Activities ........................................................................................................................... 76 C. Fiduciary Fund Activities .......................................................................................................................... 81 D. Debt Without City Commitment ................................................................................................................ 83 E. Conduit Debt ............................................................................................................................................. 83 Note 9 – Accrued Compensated Absences ................................................................................................................. 84 Note 10 – Unamortized Loss on Refunding ............................................................................................................... 84 Note 11 – Fund Balances ............................................................................................................................................. 85 Note 12 – Retirement Plans ........................................................................................................................................ 86 A. CalPERS Retirement Plan ......................................................................................................................... 87 B. PARS Enhancement Plan .......................................................................................................................... 92 C. Retirement Benefits Fund (Section 115 Trust) .......................................................................................... 96 Note 13 – Claims Payable ........................................................................................................................................... 96 Note 14 – Pollution Remediation Obligations ........................................................................................................... 98 Note 15 – Other Required Disclosures ....................................................................................................................... 99 Note 16 – Commitments and Contingencies ............................................................................................................ 100 Note 17 – Net Investment in Capital Assets and Restricted Net Position ............................................................. 101 Note 18 – Subsequent Events .................................................................................................................................... 102

ATTACHMENT A

ATTACHMENT A
City of Stockton
45 Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

Note 1 – Summary of Significant Accounting Policies

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

A. Financial Reporting Entity

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

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

Fiduciary Component Unit – Successor Agency

The Successor Agency to the Redevelopment Agency of the City of Stockton (“Successor Agency”) is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency under City Council action taken on August 23, 2011. The nature and significance of the relationship between the City and the Successor Agency are such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the City’s fiduciary funds as a private-purpose trust fund for the fiscal year ended June 30, 2024.

The Stockton Public Financing Authority (the “SPFA”)

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

Excluded Agencies

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
46 Note 1 – Summary of Significant Accounting Policies (Continued)

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. 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 governmental funds, proprietary funds, and fiduciary funds.

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

The Government-Wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, including capital 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.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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 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.

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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)
• Federal Housing Grants Special Revenue Fund
To account for federal grant programs and other resources that provide for development of a viable urban community by providing a suitable living environment, loans to non -profit housing developers to acquire and rehabilitate abandoned and foreclose homes and providing affordable housing assistance to qualified low- and moderate -income households. This fund includes the City’s annual federal funding from the Community Development Block Grant, Community Rehabilitation Loan program, federal revolving loan program, revitalization activities in the designated Urban Development Action Grant area, Housing and Urban Development (HUD) Section 108, HOME Housing grants and loans, and Neighborhood Stabilization Loan Program (NSP Funds).
• Special Grants Special 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 Statement of Net Position, a Statement of Revenues, Expenses, and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

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

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

The City reports the following major enterprise funds:
• Water Utility Enterprise Fund
To account for activities associated with the acquisition or construction of water treatment facilities, production, distribution and transmission of potable water to users, and operations related to the provision of services.
• Wastewater Utility Enterprise Fund
To account for activities associated with the acquisition or construction, and operation and maintenance of wastewater facilities for the collection, treatment, and disposal of wastewater, and operations related to the provision of services.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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)
A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government -wide financial statements. Internal service funds are a type of proprietary fund used to report the provision of goods and services to other funds, departments, or agencies of the primary government and its component units on a cost - reimbursement basis. The City’s internal service funds include eight individual funds which provide services directly to other City funds. The Internal Service Funds of the City are the General Liability Insurance, Workers’ Compensation Insurance, Employee Health Insurance, Retirement Benefits, Other Benefits and Insurance, Vehicle Fleet Equipment, Computer and Radio Equipment, and Other Equipment funds.

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

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

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

C. Deferred Outflows/Inflows of Resources

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

Deferred Outflows of Resources represent 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.” For the statement of cash flows, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents,” including restricted cash held by fiscal agents for debt service and capital projects.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 1 – Summary of Significant Accounting Policies (Continued)

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

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

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

Highly liquid market investments with maturities of one year or less at the time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City allocates the fair value adjustment for unrealized gains and losses at June 30 of each year. Interest earnings on investments are allocated to the individual pooled funds quarterly based on each fund’s average quarterly pooled cash and investments balances. The City reported its investments at fair value, and the unrealized losses on investments amounted to ($15,273,325.22) for the fiscal year ended June 30, 2024.

Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas are presented in the footnotes:
• Interest Rate Risk
• Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
• Foreign Currency Risk
F. Restricted Cash and Investments
Restricted cash and investments consist of cash and investments held by fiscal agents that are restricted due to limitations on their use by bond covenants or cash or investments with donor limitations. Fiscal agents acting on behalf of the bond investors hold investments arising from the proceeds of long-term debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested as permitted by specific State statutes or applicable City ordinance, resolution or bond indenture. Cash held in the Water and Wastewater Rate Stabilization Fund was established under the issuance of bonds in 2009 and 2014, respectively.

G. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
➢ Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
51 Note 1 – Summary of Significant Accounting Policies (Continued)

G. Fair Value Measurement (Continued)
➢ 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.

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 1 – Summary of Significant Accounting Policies (Continued)

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. ➢ The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed. ➢ The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
➢ Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

M. Capital Assets

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

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

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 1 – Summary of Significant Accounting Policies (Continued)

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

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

Donated capital assets are valued at their estimated fair market value on the date donated.

The City established a threshold to recognize a right‐to‐use lease asset (lease asset) in the government‐wide financial statements and proprietary fund financial statements for a leased asset over $5,000. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight -line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the Subscription Based Information Technology Arrangement (“SBITA”) vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

➢ Preliminary Project Stage: Outlays are expensed as incurred. ➢ Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset. ➢ Operation and Additional Implementation Stage: Outlays are expensed as incurred unless they meet specific capitalization criteria.

Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

Subscription assets are reported in capital assets and subscription liabilities are reported with long -term liabilities on the Statement of Net Position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying, information technology assets unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over 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, 2024, the payroll accrual is recorded in the respective funds when the related liability is incurred.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 1 – Summary of Significant Accounting Policies (Continued)

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.

Q. Long-Term Debt

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

Bond issuance premiums and discounts, as well as prepaid insurance, are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount except for insurance prepaid bond insurance premiums.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, in the year of issuance. The face amount of the debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. The differences between the government -wide and fund financial statements are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

R. Lease Liabilities

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

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies (Continued)

R. Lease Liabilities (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

➢ The City uses incremental borrowing rate provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed. ➢ The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
➢ Lease payments included in the measurement of the lease payable is composed of fixed payments to the lessor.

S. 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 payments (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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 1 – Summary of Significant Accounting Policies (Continued)

T. Pensions (Continued)
The following time frames are used for pension reporting:

CALPERS
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
PARS
Valuation Date June 30, 2022
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 1 – Summary of Significant Accounting Policies (Continued)

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

Committed – This amount indicates the portion of fund balances which can only be used for specific purposes under formal resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

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

Unassigned – 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 can report a deficit unassigned fund balance amount. In other governmental funds, it is not appropriate to report a deficit unassigned fund balance amount. However, in a governmental fund other than the general fund, expenditures incurred for a specific purpose might exceed the amounts in the fund that are restricted, committed, and assigned to that purpose and a negative residual balance for that purpose may result.

If that occurs, amounts assigned to other purposes in that fund should are reduced to eliminate the deficit. If the remaining deficit eliminates all other assigned amounts in the fund, or if there are no amounts assigned to other purposes, the negative residual amount is classified as unassigned fund balance.

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 1 – Summary of Significant Accounting Policies (Continued)

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

X. Use of Estimates

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

Y. Implementation of New GASB Pronouncements

GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—An Amendment of GASB Statement No. 62 . The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. There were no significant impacts on the City’s financial statements.

Note 2 – Cash and Investments

The following is a summary of cash, cash equivalents, and investments, including restricted cash and investments on June 30, 2024:

Deposits:

Cash on Hand $ 21,981
Demand Deposits 191,489,708
Total Deposits 191,511,689
Investments 934,474,998
Total Cash and Investments $ 1,125,986,687

Presented in the government-wide statement of net position:

Cash and Investments $

991,598,653
Restricted Cash and Investments 89,956,903

Presented in the statement of fiduciary net position:

Cash and Investments 33,738,578
Cash and investments with fiscal agents 10,692,553
Total Cash and Investments $ 1,125,986,687

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 2 – Cash and Investments (Continued)

A. Cash Deposits
The carrying amount of the City’s pooled cash deposits was $191,489,708 at June 30, 2024. Bank balances before reconciling items were $199,128,865 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.

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

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

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 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
Authorized Investment Type Maturity
Maximum
in
Portfolio
Minimum
Legal
Rating
Maximum
Investments in
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%
5%; 10% of

Commercial Paper

270 Days

25%

A1, P1, F-1
outstanding CP of
any single issuer
M edium-Term Corporate Notes 5 Years 30% A 5%
California Local Agency Investment Fund
- Investments made in County or other types of investment $75,000,000 $75,000,000 per pools require due diligence Upon Demand per account N/A account California Asset Management 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 Master Repurchase Agreement is required
Demand Accounts - Insured/Collateralized Medium Term Notes N/A No Limit N/A No limit Mutual Funds
SEC registered Money 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

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 2 – Cash, Cash Equivalents and Investments (Continued)

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

Authorized Investment Type

Maximum
Maturity

Minimum Legal
Rating

Maximum
in Portfolio
Maximum
Investment
In One
Issuer

Repurchase Agreements 30 days Top Four Rating
Categories

No Limit No Limit
U.S. Treasury Bonds, Notes and Bills No Limit N/A No Limit No Limit U.S. Agency and U.S. Government
Sponsored No Limit No Limit No Limit No Limit
Enterprise Securities
State Obligations No Limit Not lower than
their bond rating
No Limit No Limit
Commercial Paper 270 days A-1+ No Limit No Limit
Negotiable Certificates of Deposit No Limit N/A No Limit No Limit Time Certificates of Deposit No Limit N/A No Limit No Limit Corporate Notes and Bonds No Limit Not lower than
their bond rating
Guaranteed Investment Contracts No Limit Not lower than their bond rating
No Limit No Limit

No Limit No Limit

Shares of Beneficial Interest No Limit Top Rating
Category
No Limit No Limit
Money Market Mutual Funds No Limit AAm 20% No Limit
Bankers' Acceptances
Municipal Bonds
365 days
No Limit
A-1+
AAA
30%
No Limit
30%
No Limit
California Local Agency Investment Fund Upon N/A $75,000,000 $75,000,000 (LAIF) Demand
California Asset Management Program Upon
Demand
N/A No Limit* No Limit*
Investment Agreements No Limit AA- No Limit No Limit
*Pool is constrained by CGC 53601 as to % that the pool must abide by.

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. As of June 30, 2024, the City had $826,673 invested in LAIF.

LAIF is reported at amortized cost, which approximates fair value.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 2 – Cash and Investments (Continued)

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, 2024, the City had $61,466,097 invested in CAMP, which had invested 14.3% 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, 2024, 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, 2024. 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.

Measurement Input
Investments subject to fair value measurement categorizations: June 30, 2024 Level 1 Level 2 Uncategorized(3) U. S. Agencies (1) $ 97,702,756 $ - $97,702,756 $ -
U. S. Treasuries (4) 352,695,159 352,695,159 - -
Medium term notes (1) 150,769,588 - 150,769,588 -
Supranationals (2) 4,142,918 - 4,142,918 -
Municipal Bonds (1) 9,793,780 - 9,793,780 -
Federal Agency CMOs (1) 89,497,863 - 89,497,863 -
Negotiable CD (1) 17,563,907 - 17,563,907 -
Cmmercial Paper (1) 11,738,461 - 11,738,461 -
Asset backed securities (1) 49,937,906 - 49,937,906 -
Equity Mutual Fund- PARS 115 Trust (2) 26,481,905 - 26,481,905 - Fixed Income MutuaL Fund- PARS 115 Trust (1) 60,938,559 - 60,938,559 - Idle Funds in Reserve Portfolio (3) 905,955 - - 905,955 Local Agency Investment Fund (LAIF) (3) 826,673 - - 826,673 California Asset Management Program (CAMP) (3) 61,466,097 - - 61,466,097 Money Market Funds (attributable to 115 Trust) (3) 13,471 - - 13,471 Total $ 934,474,998 $ 352,695,159 $ 518,567,643 $ 63,212,196 (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 (cash and cash equivalents) are valued at an amortized cost which approximates fair value. (4) Inputs are unadjusted, quoted prices for identical assets in active markets at the measurement date.

F. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. The exceptions to this policy are that U.S. Treasury or U.S. Agency securities may be invested in greater than five years and investment in variable rate obligations of the City is permissible when allowed by the IRS and SEC. Investments maturing beyond a five-year horizon should not exceed fifteen percent (15%) of the total portfolio value at any given time. The maturity of investments is evaluated before purchase depending on liquidity needs.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 2 – Cash, Cash Equivalents and Investments (Continued)

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

Investment Maturities

Investment Type

Fair Value

1 year or less

1-3 years

3-5 years
5 years
or more
U.S. Agencies $ 97,702,756 $ 29,886,805 $ 38,280,419 $ 6,718,964 $ 22,816,568 U.S. Treasuries 352,695,159 27,135,853 148,643,907 80,042,411 96,872,988 Medium Term (Corporate) Notes 150,769,588 30,088,139 40,397,274 80,284,175 - Supranationals 4,142,918 4,142,918 - - -
Municipal Bonds 9,793,780 4,221,466 5,572,314 - -
Federal Agency CMOs 89,497,863 - 14,802,710 74,695,153 - Local Agency Investment Fund 826,673 826,673 - - -
Capital Asset Management Program 61,466,097 61,466,097 - - - Money Market Funds (attributable to 115 Trust) - - - - - Negotiable CD 17,563,907 13,322,369 4,241,538 - -
Asset Backed Securities 49,937,906 789,034 6,582,742 42,566,130 - Commercial paper 11,738,461 11,738,461 - - -
Cash - PARS 115 Trust 13,471 13,471 - - -
Equity Mutual Fund- PARS 115 Trust 26,481,905 26,481,905 - - - Fixed Income Mutual Fund- PARS 115 Trust 60,938,559 60,938,559 - - - Idle Funds in Reserve Portfolio 905,955 905,955 - - -
Total $ 934,474,998 $ 271,957,705 $ 258,520,904 $ 284,306,833 $ 119,689,556 Allocation by percentage 100% 35% 40% 24% 1%

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, 2024, for each investment type as provided by Standard and Poor’s investment rating system:

Investment Type
Held by the City and its Component Units:

AAA/AAAm AA / AA+ / AA- A / A+/ A- A-1+ BBB+ Total

N
U. S. Agencies:

Non-callable

$ -

$ 301,790,064

$ -

$ 10,501,155

$ - $

312,291,219
Callable
Medium term notes:

Non-callable
-

-
227,604,559

7,993,769
-

33,768,248
-

-
-

1,822,196
227,604,559

43,584,213
Callable 4,850,266 24,748,916 75,763,997 - 1,822,196 107,185,375 Asset Backed Securities 36,792,977 - - - - 36,792,977
Commercial Paper - - 11,738,461 - - 11,738,461
Negariable CDs - - 4,241,538 13,322,369 - 17,563,907
Supranationals 4,142,918 - - - - 4,142,918
Municipal securities 1,527,073 8,266,707 - - - 9,793,780 Total $ 47,313,234 $ 570,404,015 $ 125,512,244 $ 23,823,524 $ 3,644,392 770,697,409 ot rated or exempt from rating disclosure:

Asset Backed Securities

13,144,929
Local Agency Investment Fund 826,673
California Asset Management Program 61,466,097
Section 115 Trust Mutual Funds (not rated) 87,420,464
Cash Held in 115 Trust 13,471
Idle Funds in Reserve Portfolio 905,955
Total Investments $ 934,474,998

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 2 – Cash, Cash Equivalents and Investments (Continued)

F. Risk Disclosure (Continued)
The City's portfolio manager utilized ratings of S&P in compiling the previous table. In August 2011, S&P took an extraordinary stance of downgrading the debt of the United States and numerous agencies whose debt it stands behind. Moody's and Fitch only took moves to lower the outlook on U.S. debt while still maintaining the AAA ratings on these entities. In May of 2023 Fitch placed its AAA rating on a negative watch ultimately downgrading the U.S. to an AA+ rating in August of 2023. In March 2024, both S&P and Fitch affirmed the AA+ rating with a stable outlook. As of June 30, 2024, Moody was the only major credit rating agency that maintained its AAA rating with negative outlook rating for U.S. debt.

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, LAIF, and CAMP, are held by a third-party custodian, U.S. Bank.

U.S. Bank is a registered member of the Federal Reserve Bank. The securities held by U.S. bank are in the street name with a customer number assigned to the City that identifies ownership.

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

At June 30, 2024, the City’s Pooled investments that represent a concentration in the securities of any individual issuers, other than U. S. Treasury securities or mutual funds, are set forth below:

Issuer Investment Type
Reported
Amount Total Holdings

Held by City: $ 934,474,998

Federal National Mortgage Association Federal Agency Securities $ 54,562,112 5.84% Federal Home Loan Mortgage Comp any Federal Agency Securities 97,110,135 10.39% 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.

Governmental activities $ 81,941,443
Business-type activities:

Water Utility

21,355
Wastewater Utility 4,217,784
Parking Authority 3,776,321
Subtotal 8,015,460
Fiduciary Funds 10,692,553
Total restricted cash and investments $ 100,649,456

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 2 – Cash, Cash Equivalents and Investments (Continued)

G. Restricted Cash and Investments (Continued)
The City has a reserve policy governing the establishment of Rate Stabilization Fund for its Water, Wastewater, and Stormwater Funds. These reserves are to ease future revenue fluctuations, where revenues are interrupted or otherwise insufficient to offset the operating expenditures and to minimize the impact of rate increases. The City has established a Rate Stabilization Fund in the Water Fund in connection with the issuance of its 2010 Variable Rate Demand Water Revenue Bonds and the Wastewater Fund in connection with the 2014 Wastewater Refunding Bonds. The City use money on deposit in the Rate Stabilization Fund for any lawful purpose. All interest or other earnings in the Rate Stabilization Fund may be withdrawn and accounted for as revenues or used for any lawful purpose. The balance in the Water and Wastewater Rate Stabilization Accounts at June 30, 2024, were $3,004,452 and $13,467,689.

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 $6,657,264 of interfund loan balances, broken down by short and long-term net of interest, as of June 30, 2024 is shown below.

The inter-fund transactions were as follows:

Fund Making Loan Fund Receiving Loan Short-Term Long-term Total Internal Service Funds -Workers' Compensation Parking Authority $ 666,487 $ 5,046,532 $ 5,713,019 Internal Service Funds -Workers' Compensation Internal Service Funds -Vehicle Fleet Equipment 429,089 515,156 944,245 Total $ 6,657,264

• The $5,713,019 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 $944,245 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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 3 – Interfund Transactions (Continued)

B. Transfers
Interfund transfers report the nonreciprocal contributions of resources from one fund to another that include program support, debt service and settlement, and other one-time transfers. The following is a summary of transfers for the year ended June 30, 2024:

Transfers In Transfers Out Net Transfers
Governmental Activities:

General Fund Program Support $ - $ (800,000) $ (800,000) General Fund Capital Improvement - (19,662,530) (19,662,530) General Fund Debt Service - (9,061,425) (9,061,425)
Federal Housing Grant Fund Retirement - (352,526) (352,526) Special Grant Fund Program Support 1,181,818 - 1,181,818 Special Grant Fund Debt Service/ Settlement - (51,500) (51,500) Nonmajor Government Funds Program Support 934,182 (8,873,646) (7,939,464) Nonmajor Government Funds Debt Service 9,413,951 - 9,413,951 Capital Improvement Program Support 28,562,744 - 28,562,744 Internal Service Funds Retirement (193,212) (193,212)
Internal Service Funds Program Support 801,846 (1,181,818) (379,972) Total governmental activities 40,894,541 (40,176,657) 717,884 Business-type Activities:

Water Utility Program Support - (474,899) (474,899)
Wastewater Utility Program Support - (301,657) (301,657) Stormwater Utility Program Support - (51,122) (51,122)
Downtown Marina Program Support 262,000 - 262,000
Golf Courses Closing Fund - (152,206) (152,206)
Total business-type activities 262,000 (979,884) (717,884) Total Government-Wide Statements $ 41,156,541 $ (41,156,541) $ -

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 2 to 564 months. The incremental borrowing rates used were between 0.4110 to 1.8020% depending on the length of the lease term. For the year ended June 30, 2024 the City recognized $52,528, and $7,920 in lease revenue and $23,908 and $246 in interest revenue for Governmental Activities, and the Successor Agency, respectively. The outstanding receivables are in the amounts of $1,392,524 and $26,037 for the Governmental Activities, and the Successor Agency, respectively.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 4 – Lease Receivable (Continued)

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

Year Ending Governmental Activities Fidicuary Funds
June 30, Principal Interest Total Principal Interest Total 2025 $ 47,758 $ 23,186 $ 70,944 $ 7,737 $ 183 $ 7,920
2026 44,165 22,492 66,657 7,800 120 7,920
2027 47,343 21,751 69,094 7,864 56 7,920
2028 49,513 20,966 70,479 2,635 4 2,639
2029 51,759 20,145 71,904 - - -
2030-2034 295,345 87,093 382,438 - - -
2035-2039 298,283 61,013 359,296 - - -
2040-2044 67,502 47,363 114,865 - - -
2045-2049 73,861 41,004 114,865 - - -
2050-2054 80,820 34,046 114,866 - - -
2055-2059 88,434 26,432 114,866 - - -
2060-2064 96,765 18,100 114,865 - - -
2065-2069 105,881 8,984 114,865 - - -
2070-2071 45,095 851 45,946 - - -
$ 1,392,524 $ 433,426 $ 1,825,950 $ 26,036 $ 363 $ 26,399

Note 5 – Successor Agency – Loans from City

With the dissolution of the Redevelopment Agency effective January 31, 2012, the following loan is outstanding as of June 30, 2024. The Successor Agency received its Finding of Completion from the State Department of Finance on October 30, 2014. On November 4, 2015, the Oversight Board adopted a resolution finding 51 Redevelopment loans from the City were made for legitimate redevelopment purposes. Dissolution law required that the accrued interest on outstanding loans be recalculated quarterly at a simple interest of 3% from the date the loans were originally authorized by the former Redevelopment Agency. Also, the Department of Finance required approved resolutions and signed loan agreements for the loans to be approved for repayment. However, City staff was unable to locate signed loan agreements or documents and approved resolutions for all of the 51 loans. Adjustments for the write off of all loans were disallowed by the Department of Finance in the 2016 -2017 fiscal year. During fiscal year 2024, two loans were paid off and the remaining outstanding loan balance as of June 30, 2024 is $1,106,580 with no allowance set up.

Fund Providing Loan

Fund Receiving Loan
Outstanding
Balance
Allowance for
Uncollectible
Loans

Net Balance
Low - Moderate Income Housing RDA Loans Private-Purpose Trust Fund - Successor Agency of the Redevelopment Agency $ 1,106,580 $ - $ 1,106,580 Total $ 1,106,580 $ - $ 1,106,580

• 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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 6 – Loans to Property Owners, Net

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, 2024 are as follows:

Governmental Activites
Allowance for

Loan Programs
Principal
Balance
Deferred
Interest
Uncollectible
Loans Net Balance
First Time Home Buyers Program (HOME) $ 41,713,410 $ 10,841,761 $ (840,364) $ 51,714,807 Community Development Block Grant Programs 15,926,611 5,094,683 (204,180) 20,817,114 Neighborhood Stabilization First Time Home Buyer Program 10,752,837 1,922,077 (7,975) 12,666,939 California Home Loans 2,760,216 391,498 (265,685) 2,886,029 Low & Moderate Income Housing Programs (former Agency) 53,760,511 15,679,684 - 69,440,195 Total $ 124,913,585 $ 33,929,703 $ (1,318,204) $ 157,525,084

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 qualified borrowers, and multifamily loans to qualified housing developers. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans.

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

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

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

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 7 – Capital Assets

A. Government-Wide Financial Statements
At June 30, 2024, the City’s capital assets consisted of the following:

Governmental
Activities
Business -Type
Activities

Total
Capital assets, not being depreciated:

Land

$ 38,616,370

$ 14,767,413

$ 53,383,783
Intangible assets - easements 4,354,960 - 4,354,960
Construction in progress 302,703,207 272,834,337 575,537,544 Total capital assets, not being depreciated 345,674,537 287,601,750 633,276,287 Capital assets, being depreciated:

Infrastructure

647,536,895

-

647,536,895
Buildings and improvements 329,649,662 1,066,032,706 1,395,682,368 Machinery and equipment 105,491,501 20,465,572 125,957,073 Total capital assets, being depreciated 1,082,678,058 1,086,498,278 2,169,176,336 Less accumulated depreciation for:

Infrastructure

(261,531,648)

-

(261,531,648)
Buildings and improvements (161,324,170) (489,658,259) (650,982,429) Machinery and equipment (66,914,027) (15,335,989) (82,250,016) Total accumulated depreciation (489,769,845) (504,994,248) (994,764,093) Total capital assets, being depreciated, net 592,908,213 581,504,030 1,174,412,243 Intangible assets, being amortized:

Intangible asset - right to use leased assets

2,347,476

2,837,601

5,185,077
Intangible asset - right to use subscriptions 18,058,440 8,045 18,066,485 Total intangible assets, being amortized 20,405,916 2,845,646 23,251,562 Less accumulated amortization for:

Intangible asset - right to use leased assets

(1,438,540)

(573,304)

(2,011,844)
Intangible asset - right to use subscriptions (6,598,748) (4,853) (6,603,601) Total accumulated amortization (8,037,288) (578,157) (8,615,445) Total intangible assets, being amortized, net 12,368,628 2,267,489 14,636,117 Capital assets, net $ 950,951,378 $ 871,373,269 $ 1,822,324,647

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 7 – Capital Assets (Continued)

B. Governmental Activities
Summary of changes in governmental activities capital assets for the year ended June 30, 2024, are as follows:

Governmental activities:

Balance
July 1, 2023

Additions

Deletions

Transfers
Balance
June 30, 2024
Capital assets, not being depreciated:

Land

$ 38,196,565

$ -

$ -

$ 419,805

$ 38,616,370
Intangible assets - easements 4,354,960 - - - 4,354,960 Construction in progress 252,839,333 70,090,646 (761,284) (19,465,488) 302,703,207 Total capital assets, not being depreciated 295,390,858 70,090,646 (761,284) (19,045,683) 345,674,537 Capital assets, being depreciated:

Infrastructure

623,722,939

14,442,008

-

9,371,948

647,536,895
Buildings and improvements 324,338,702 - - 5,310,960 329,649,662 Machinery and equipment 91,924,681 4,505,100 (2,196,978) 11,258,698 105,491,501 Total capital assets, being depreciated 1,039,986,322 18,947,108 (2,196,978) 25,941,606 1,082,678,058 Less accumulated depreciation for:

Infrastructure

(249,663,022)

(11,868,626)

-

-

(261,531,648)
Buildings and improvements (150,310,618) (6,170,531) - (4,843,021) (161,324,170) Machinery and equipment (62,782,244) (5,847,761) 2,196,978 (481,000) (66,914,027) Total accumulated depreciation (462,755,884) (23,886,918) 2,196,978 (5,324,021) (489,769,845) Total capital assets, being depreciated, net 577,230,438 (4,939,810) - 20,617,585 592,908,213 Intangible assets, being amortized:

Intangible asset - right to use leased assets

2,291,649

55,827

-

-

2,347,476
Intangible asset - right to use subscriptions 11,892,463 7,659,186 (1,493,209) - 18,058,440 Total intangible assets, being amortized 14,184,112 7,715,013 (1,493,209) - 20,405,916 Less accumulated amortization for:

Intangible asset - right to use leased assets

(398,930)

(1,039,610)

-

-

(1,438,540)
Intangible asset - right to use subscriptions (3,664,781) (3,594,695) 660,728 - (6,598,748) Total accumulated amortization (4,063,711) (4,634,305) 660,728 - (8,037,288) Total intangible assets, being amortized, net 10,120,401 3,080,708 (832,481) - 12,368,628 Governmental activities capital assets, net $ 882,741,697 $ 68,231,544 $ (1,593,765) $ 1,571,902 $ 950,951,378

Governmental activities depreciation and amortization expense for capital assets for the year ended June 30, 2024, are as follows:

Governmental Activities:

General Government $ 1,669,400
Public Works 13,898,235
Parks and Recreation 3,140,804
Library 437,419
Public Safety 1,621,344
Internal Service Funds 7,754,021
Total $ 28,521,223

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 7 – Capital Assets (Continued)

C. Business-Type Activities
Summary of changes in business-type activities capital assets for the year ended June 30, 2024, are as follows:

Business-type activities:

Balance
July 1, 2023

Additions

Deletions

Transfers
Balance
June 30, 2024
Capital assets, not being depreciated:

Land

$ 15,127,218

$ -

$

(359,805)

$ 14,767,413
Construction in progress 233,679,173 39,306,134 - (150,970) 272,834,337 Total capital assets, not being depreciated 248,806,391 39,306,134 - (510,775) 287,601,750 Capital assets, being depreciated:

Buildings and improvements

1,058,646,940

12,636,583

-

(5,250,817)

1,066,032,706
Machinery and equipment 20,732,210 867,694 - (1,134,332) 20,465,572 Total capital assets, being depreciated 1,079,379,150 13,504,277 - (6,385,149) 1,086,498,278 Less accumulated depreciation for:

Buildings and improvements

(471,649,055)

(22,852,225)

-

4,843,021

(489,658,259)
Machinery and equipment (14,381,154) (1,435,836) - 481,001 (15,335,989) Total accumulated depreciation (486,030,209) (24,288,061) - 5,324,022 (504,994,248) Total capital assets, being depreciated, net 593,348,941 (10,783,784) - (1,061,127) 581,504,030 Intangible assets, being amortized:

Intangible asset - right to use leased assets

2,847,464

-

(9,863)

-

2,837,601
Intangible asset - right to use subscriptions 61,204 - (53,159) - 8,045 Total intangible assets, being amortized 2,908,668 - (63,022) - 2,845,646 Less accumulated amortization for:

Intangible asset - right to use leased assets (384,186) (198,981) 9,863 - (573,304) Intangible asset - right to use subscriptions (28,234) (6,955) 30,336 - (4,853) Total accumulated amortization (412,420) (205,936) 40,199 - (578,157) Total intangible assets, being amortized, net 2,496,248 (205,936) (22,823) - 2,267,489 Business-type activities capital assets, net $ 844,651,580 $ 28,316,414 $ (22,823) $ (1,571,902) $ 871,373,269

Business-type activities depreciation and amortization expense for capital assets for the year ended June 30, 2024, are as follows:

Business-type Activities:

Water Utility $ 8,068,864
Wastewater Utility 13,062,325
Stormwater Utility 1,821,567
Parking Authority 993,835
Marina 547,406
Total $ 24,493,997

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 7 – Capital Assets (Continued)

D. Fiduciary Fund Activities
Summary of Changes in Fiduciary Fund capital assets for the year ended June 30, 2024, are as follows:

Balance Balance
Fiduciary fund activities: July 1, 2023 Additions Deletions Transfers June 30, 2024

Capital assets, not being depreciated:

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 equipment 471,546 - - - 471,546
Total capital assets, being depreciated 22,299,624 - - - 22,299,624 Less accumulated depreciation for:

Infrastructure (3,524,575) (249,655) - - (3,774,230)
Buildings and improvements (7,065,326) (300,303) - - (7,365,629) Machinery and equipment (316,737) (18,677) - - (335,414) Total accumulated depreciation (10,906,638) (568,635) - - (11,475,273) Total capital assets, being depreciated, net 11,392,986 (568,635) - - 10,824,351 Intangible assets, being amortized:

Intangible asset - right to use leased assets 14,372 - - - 14,372 Total intangible assets, being amortized 14,372 - - - 14,372 Less accumulated amortization for:

Intangible asset - right to use leased assets (1,798) (7,186) - - (8,984) Total accumulated amortization (1,798) (7,186) - - (8,984) Total intangible assets, being amortized, net 12,574 (7,186) - - 5,388 Fiduciary fund activities cap ital assets, net $ 23,637,539 $ (575,821) $ - $ - $ 23,061,718

Fiduciary fund depreciation and amortization expenses for capital assets for the year ended June 30, 2024, are as follows:

Fiduciary Fund Activities:

Successor Agency $

575,821

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 8 – Long-Term Liabilities

A. Governmental Activities
Summary of changes in governmental activities long-term debt for the year ended June 30, 2024, are as follows:

Governmental Fund Activities Debt
City Debt
Balance
July 1, 2023

Additions Reductions
Balance
June 30, 2024

Short-Term Long term
Assured Guaranty Settlement
Assured Settlement Obligation $ 52,884,811 $ - $ (237,557) $ 52,647,254 $ 278,378 $ 52,368,877 Subtotal Settlement Obligation Bonds 52,884,811 - (237,557) 52,647,254 278,378 52,368,877 Other Long-Term Obligations
CDBG
USD-HUD Housing Note 1,920,000 - (1,920,000) - - -
Subtotal CDBG 1,920,000 - (1,920,000) - - -
Lease Liabilities
Leases liabilities

1,897,699

55,827

(1,038,184)

915,342

797,503

117,839
Subtotal Lease Liabilities 1,897,699 55,827 (1,038,184) 915,342 797,503 117,839 Subscription liabilities
Subscription liabilities 7,805,621 7,507,626 (5,139,239) 10,174,008 3,370,895 6,803,113 Subtotal Subscription Liabilities 7,805,621 7,507,626 (5,139,239) 10,174,008 3,370,895 6,803,113 Total $ 64,508,131 $ 7,563,453 $ (8,334,980) $ 63,736,604 $ 4,446,776 $ 59,289,829

Assured Guaranty Settlement (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, 2024, bonds totaling $68,335,000 were due in installments of principal ranging from $3,725,000 on September 1, 2024, 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, 2024, bonds totaling $22,820,000 are due in installments of principal ranging from $1,245,000 on September 1, 2024, to $2,800,000 on September 1, 2037, with interest rates ranging from 5.675% to 5.795%. The Series A and Series B for the 2007 POBs are insured by Assured Guaranty and do not have a reserve fund. The above liabilities are written down and an alternate liability is being recorded which reflects the payments required by the City under a settlement agreement reached with Assured Guaranty. This background on the original liabilities is shown in this footnote due to the bonds still trading in the secondary markets.

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

That series of payments is made up of Non -Contingent General Fund payments which are made up of three types; Special Fund, Ask, and Supplemental, which have all been determined. Special Fund payments range from $1,673,742 on July 1, 2024 to $2,009,482 due on July 1, 2053; Lease Ask Fund payments are due in in installments ranging from $2,527,750 on June 1, 2025 to $2,531,250 due on June 1, 2052; and Supplemental Payments are due in installments of $250,000 from June 1, 2025, 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, 2025, is currently anticipated to be $5,255,000.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 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) 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.

Annual Debt Service Requirements to Maturity

Assured Guarantee
Year Special Fun d Payments 2007 Lease A sk Payments Supplement al Payments June 30, Principal Interest Principal Interest Principal Interest Total Principal Total Interest 2025 $ 278,378 $ 1,395,364 $ - $ 2,527,750 $ - $ 250,000 $ 278,378 $ 4,173,114 2026 321,242 1,380,009 - 2,530,563 - 250,000 321,242 4,160,572 2027 93,227 1,362,289 - 2,532,500 - 250,000 93,227 4,144,789 2028 147,406 1,357,147 - 2,528,625 - 250,000 147,406 4,135,772 2029 177,041 1,349,016 - 2,528,938 - 250,000 177,041 4,127,954 2030-2034 1,400,349 6,561,968 - 12,652,439 - 1,250,000 1,400,349 20,464,407 2035-2039 2,730,029 6,064,237 1,689,924 10,957,578 - 1,250,000 4,419,953 18,271,815 2040-2044 5,013,786 5,033,624 7,027,085 5,621,604 401,899 1,048,101 12,442,770 11,703,329 2045-2049 6,557,796 3,489,614 9,195,015 3,457,173 1,271,683 478,317 17,024,494 7,425,104 2050-2054 8,577,289 1,470,121 6,821,110 766,141 943,995 106,005 16,342,394 2,342,267 $ 25,296,543 $ 29,463,389 $ 24,733,134 $ 46,103,311 $ 2,617,577 $ 5,382,423 $ 52,647,254 $ 80,949,123

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 8 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)
Annual Debt Service Requirements to Maturity (Continued)

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. As of June 30, 2024, all four Section 108 loan guarantee agreements have been paid in full. The final payment of $1,920,000 was paid on August 1, 2023.

Lease 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, 2024 are as follows:

Year Ending Leases
June 30, Principal Interest
2025 $ 797,503 $ 2,394
2026 93,048 892
2027 15,019 451
2028 9,772 226
Total $ 915,342 $ 3,963

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 Subscriptions
June 30, Principal Interest
2025 $ 3,370,895 $ 173,756
2026 2,656,518 182,346
2027 1,853,472 114,824
2028 674,561 65,880
2029 272,840 46,938
2030-2034 1,345,722 101,479
Total $ 10,174,008 $ 685,223

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 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, 2024, are as follows:

Balance
Water Utility Obligations July 1,2023 Additions

Reductions
Amort/Prem/
Disc/Deferred
Amounts

Balance
June 30,2024 Short-Term Long-Term
2018A Water System Demand Revenue Bonds $ 124,285,000 $ - $ (5,650,000) $ - $ 118,635,000 $ 5,950,000 $ 112,685,000 Premium 11,521,262 - - (810,073) 10,711,189 810,073 9,901,116 2019A Water System Demand Taxable Revenue 53,140,000 - (11,705,000) - 41,435,000 580,000 40,855,000 Subscription liabilities 14,388 - (14,388) - - - -
Subtotal Water Utility Obligations 188,960,650 - (17,369,388) (810,073) 170,781,189 7,340,073 163,441,116

Wastewater Utility Obligations

2014 Wastewater Refunding Revenue Bonds 39,345,000 - (4,635,000) - 34,710,000 5,090,000.00 29,620,000 Premium (on 2014 refunding) 4,503,881 - - (729,980) 3,773,901 729,981 3,043,920 2020 EPA WIFIA loan 108,000,000 - - - 108,000,000 - 108,000,000 State Water Resources Control Board Loan - 35,100,000 - - 35,100,000 1,252,669 33,847,331 Subscription liabilities 12,595 - (12,595) - - - -
Lease liabilities 890 - (890) - - - -
Subtotal Wastewater Utility Obligations 151,862,366 35,100,000 (4,648,485) (729,980) 181,583,901 7,072,650 174,511,251

Stormwater Obligations

Subscription liabilities 3,954 - (3,954) - - - -
Subtotal Stormwater Obligations 3,954 - (3,954) - - - -

Central Parking District

2020 Parking Lease Revenue Bonds 23,750,000 - (545,000) - 23,205,000 570,000 22,635,000 Premium 4,963,136 - - (209,710) 4,753,426 209,710 4,543,716 Lease liabilities 2,495,382 - (184,069) - 2,311,313 183,596 2,127,717 Subtotal Central Parking District 31,208,518 - (729,069) (209,710) 30,269,739 963,306 29,306,433

Marina Operation
CDBW Harbor Facility Construction
and Planning Loans
Subtotal Marina Operation
Total - Enterprise Fund Activities Debt

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, 2024, $118,635,000 of 2018A Bonds remain outstanding with installments of principal ranging from $5,950,000 to $12,195,000 due October 1, 2024, 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 $10,711,189. 10,870,821 - - - 10,870,821 - 10,870,821
10,870,821 - - - 10,870,821 - 10,870,821
$ 382,906,309 $ 35,100,000 $ (22,750,896) $ (1,749,763) $ 393,505,650 $ 15,376,029 $ 378,129,621

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)
Water Utility (Continued)

Stockton Public Financing Authority Water Revenue Refunding Bonds Series 2019A Federally Taxable (Green Bonds)

The 2019 Water Revenue Bonds, Series were issued in the amount of $54,785,000 by the SPFA on November 19, 2019. The SPFA issued the Bonds to refinance bonds issued in 2010 that financed the final portion of the Delta Water Supply Project. 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. As of June 30, 2024, $41,435,000 of 2019A Bonds remain outstanding with installments of principal ranging from $580,000 to $11,610,000 due from October 1, 2024, through October 1, 2040, with interest rates ranging from 2.464% to 3.61%.

The repayment of the 2019A Bonds is from a pledge of net revenues of the fund and the Bonds are issued on parity with the 2018A water bonds. The 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, 2024, total principal and interest paid was $14,021,588 and net revenues were $36,209,546. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $224,684,193.

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, 2024.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)
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, 2024, bonds totaling $34,710,000 are due in annual installments of principal ranging from $5,090,000 to $6,530,000 from September 1, 2024, 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, 2024, 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 issued 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.

Clean Water State Revolving Loan Act (SRF) Loan

In November 2021, the City and Clean Water State Revolving Fund (CWSRF) entered into loan agreement in the amount of $46,800,000 at a rate of 0.09%. The City received the first disbursement of $35,100,000 on June 12, 2024. As of June 30, 2024, the total principal & interest remaining to be paid on the SRF loan are $35,100,000. The City is expected to draw the remaining $11,700,000 in October 2024. Annual installments of principal ranging from $1,252,669 to $1,681,877 from December 31, 2024 to December 31, 2047 from December 31, 2024 to December 31, 2052.

Along with the WIFIA loan, the SRF loan also funded the Regional Wastewater Control Facility upgrades, which are necessary to maintain compliance with updated state and federal standards. Repayment of the SRF loan is from a pledge of net revenues of the Wastewater Fund and the loan is issued on parity with the 2024 & WIFIA bonds.

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, 2024, the City paid total principal and interest of $7,782,375 and had net revenues of $39,526,604. On June 30, 2024, the total principal and interest remaining to be paid on the Wastewater Bonds & Loans are $211,722,539.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 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 payable from certain revenues of the City's wastewater enterprise fund (the “Wastewater Fund”), amounts that are derived from "property related fees" collected by the City for wastewater service. Application of amounts in the enterprise fund is governed by the requirements of Article XIIID, Section 6 of the California Constitution, which provides that the enterprise fund may only be used for the wastewater enterprise and may not be used for general governmental purposes. The City is in compliance with its covenants in connection with its obligations, including covenants on the current rates and charges, and the wastewater Fund has revenues sufficient to meet the operation and maintenance costs of the wastewater utility, scheduled debt service and required debt service coverage.

Debt Covenants

The Bonds requires the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for Bonds is 115% of Adjusted Net System Revenues which are pledged toward repayment of all bonds. The DSC ratio is the measure of the Wastewater Fund’s ability to have sufficient resources to pay its debt service. The Wastewater Fund has met its DSC for the fiscal year ended June 30, 2024, 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.

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, 2024, the 2020 Parking Bonds totaling $23,205,000 are due in annual installments of principal ranging from $570,000 on March 1, 2025 to $1,605,000 on March 1, 2047, with interest rates ranging from 4.00% to 5.00%, and a final maturity date of March 1, 2047. The 2020 Parking Bonds were issued to refund the bankruptcy settlement on the 2004 Parking bonds, and along with payments from the bond insurer, to payoff the holders of the 2004 Parking bonds, and to provide $3 million in capital funding to finance repairs and upgrades to facilities. The 2004 bonds had financed the construction of the Stockton Events Center Parking Structure, the Edward S. Coy Parking Garage, and other parking facilities within the Parking Authority.

The repayment of the 2020 Bonds is from a pledge of net revenues of the fund. The principal amount due is reported net of the unamortized premium of $4,753,426.

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 2.3217% based on the term of the agreements. The total principal and interest remaining to be paid on the lease payable are $2,530,310.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)
Parking Authority (Continued)

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 30,2024, the City paid total principal and interest of $1,688,950 and had net revenues of $765,415.

Downtown Marina

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

Engineering work began in the fiscal year 2006. Construction of the facility started during the fiscal year ended June 30, 2009, and the project was completed in 2011. The principal remaining to be paid on both the planning and construction loans as of June 30, 2024 is $10,870,821.

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

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

The City’s settlement with DBAW as to the treatment of this obligation was confirmed as part of the City’s Approved Bankruptcy Plan of Adjustment. The terms of the settlement call for the outstanding principal to be paid from net operating revenues of the Marina operation, with no interest accruing on the unpaid portion. The settlement removes the General Fund backing and a reserve fund balance formerly in place in the General Fund has been removed. With operations continuing to receive an annual subsidy, it is unknown when any principal reduction payment will occur. The debt payment schedule was not included in the table listed below in the “Annual Debt Service Requirements to Maturity” table.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 8 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)
Annual Debt Service Requirements to Maturity

Water Utility Wastewater Utility
o
Central Parking District

The SFR loan payment was an estimated when the loan is fully drawn. Therefore, the principal amount does not agree with the current loan outstanding balance.

C. Fiduciary Fund Activities

Summary of changes in fiduciary fund long-term liabilities for the year ended June 30, 2024, are as follows:

Successor Agency to RDA of Stockton
Balance
July 1, 2023

Additions

Reductions
Balance
June 30, 2024

Current

Non-Current
Revenue Bonds
2016 Series A Successor Agency
Tax Allocation Bonds

$

73,310,000

$

-

$

-

$ 73,310,000

$

610,000

$ 72,700,000
Premium 6,286,286 - (562,951) 5,723,335 562,951 5,160,384 2016 Series B Successor Agency
Tax Allocation Bonds (Taxable)

7,340,000

-

(3,925,000)

3,415,000

3,415,000

-
Discount (37,799) - 32,396 (5,403) (5,403) -
Lease liabilities 12,577 - (7,179) 5,398 5,398 -
Total Successor Agency to RDA Liabilities $ 86,911,064 $ - $ (4,462,734) $ 82,448,330 $ 4,587,946 $ 77,860,384

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.

Year Ending Revenue Bonds Revenue B nds WIFIA Loan SRF L oan Revenu e Bonds Lea ses June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2025 $ 6,530,000 $ 7,498,221 $ 5,090,000 $ 1,608,250 $ - $ 1,296,000 $ 1,252,669 $ 350,649 $ 570,000 $ 1,116,700 $ 183,596 $ 33,613 2026 6,860,000 7,178,633 5,345,000 1,347,375 - 1,296,000 1,399,898 390,842 600,000 1,088,200 176,891 30,949 2027 7,215,000 6,841,793 5,620,000 1,073,250 - 1,296,000 1,393,413 397,327 630,000 1,058,200 179,585 28,255 2028 7,525,000 6,486,724 5,910,000 785,000 - 1,296,000 1,405,954 384,786 660,000 1,026,700 182,319 25,521 2029 7,955,000 6,112,584 6,215,000 481,875 - 1,296,000 1,418,607 372,133 695,000 993,700 185,095 22,745 2030-2034 46,380,000 24,210,784 6,530,000 163,250 22,118,496 5,955,488 7,286,862 1,666,837 4,030,000 4,411,250 968,613 70,587 2035-2039 58,350,000 11,458,661 - - 23,477,840 4,596,143 7,620,726 1,332,973 5,105,000 3,330,400 435,214 7,433 2040-2044 19,255,000 825,066 - - 24,920,727 3,153,256 7,969,888 983,812 6,325,000 2,114,200 - - 2045-2049 - - - - 26,452,290 1,621,694 5,351,983 618,653 4,590,000 466,500 - - 2050-54 - - - - 11,030,647 198,946 - - - - - -
Total $ 160,070,000 $ 70,612,466 $ 34,710,000 $ 5,459,000 $ 108,000,000 $ 22,005,527 $ 35,100,000 $ 6,498,012 $ 23,205,000 $ 15,605,850 $ 2,311,313 $ 219,103

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 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)

As of June 30, 2024, 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 $5,723,335.

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, 2024, the 2016 Series B Bonds totaling $3,415,000 is scheduled for final payment on September 1, 2024, with prinicipal due at an interest rate of 2.75%. The principal amount due is reported net of the unamortized discount of $5,403.

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

Year
Ending
2016 Series A Successor Agency Tax
Allocation Bonds
2016 Series B Successor Agency Tax
Allocation Bonds (Taxable) Lease Liabilities
June 30, Principal Interest Principal Interest Principal Interest 2025 $ 610,000 $ 3,358,550 $ 3,415,000 $ 46,956 $ 5,398 $ 7 2026 4,150,000 3,239,550 - - - -
2027 4,360,000 3,026,800 - - - -
2028 4,575,000 2,803,425 - - - -
2029 4,805,000 2,568,925 - - - -
2030-2034 27,760,000 9,072,800 - - - -
2035-2039 27,050,000 2,336,125 - - - -
Total $ 73,310,000 $ 26,406,175 $ 3,415,000 $ 46,956 $ 5,398 $ 7

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 8 – Long-Term Liabilities (Continued)

D. Debt Without City Commitment
Community Facilities Districts Debts:

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

The City is not liable for repayment and is only responsible for collecting the special taxes or assessments, making payment from the special taxes or assessments to bondholders, and initiating foreclosure proceedings when necessary. These bonds are payable solely from special taxes or assessments, specific reserves, and the proceeds from property foreclosures. Accordingly, the bonds are not reported as liabilities in the City’s basic financial statements. As of June 30, 2024, there were eight CFD special tax bonds and three revenue bonds outstanding with aggregate principal amounts payable of $61,460,000 and $51,075,000, respectively.

Amount of Issue Outstanding
June 30, 2024

CFD Special Tax Bonds:

Cannery Park CFD 2005-1 Series 2019 $ 9,855,000 $ 8,550,000 CFD 2018-12018 Arch Road/Newcastle 3,535,000 3,170,000
Westlake CFD 2006-2 SERIES 2019 ( Private Placement) 3,134,000 2,715,000 Westlake Villages II Imp Area 1A (Series 2020) 8,970,000 8,830,000 Westlake Villages II Imp Area 1A (Series 2021) 4,535,000 4,485,000 Westlake Villages II Imp Area 1A2 (Series 2022) 9,775,000 9,775,000 Westlake Villages IA 3 Series 2024 14,020,000 14,020,000 Cannery Park II 9,915,000 9,915,000
Subtotal CFD Special Tax Bonds 61,460,000
Revenue Bonds:
2016 Combined Refunding 33,350,000 21,035,000
CFD 99-02 2018 Arch Road East 24,210,000 22,150,000
AD 2014-01 M osher Estates 13,020,000 7,890,000
Subtotal Revenue Bonds 51,075,000
Total Noncity Obligation $ 112,535,000

E. Conduit Debt

Conduit Debt (No City Commitment) – At June 30, 2024, there is no conduit debt outstanding that was issued with the City as the conduit issuer.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 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, 2024. 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:

Governmental
Activities
Business-Type
Activities

Total
Beginning July 1, 2023 $ 12,047,615 $ 1,556,822 $ 13,604,437 Additions 7,402,803 1,213,507 8,616,310
Payments (8,907,968) (1,496,547) (10,404,514)
Balance June 30, 2024 $ 10,542,450 $ 1,273,782 $ 11,816,232 Current Portion $ 6,012,225 $ 802,235 $ 6,814,460
Noncurrent Portion $ 4,530,225 $ 471,547 $ 5,001,772

Note 10 – Unamortized Loss on Refunding

Summary of changes in unamortized loss on refunding for the year ended June 30, 2024:

Municipal Utility Enterprise Debt Obligations
Balance
July 1, 2023 Additions Deletions Balance
June 30, 2024

2018 Water Refunding $ 5,498,075 $ - $ (386,576) $ 5,111,499 2019 Water Refunding 5,775,518 - (334,813) 5,440,705
2014 Wastewater Refunding Revenue Bonds 1,052,477 - (170,583) 881,894 Subtotal - Municipal Utility Enterprise Debt 12,326,070 - (891,972) 11,434,098 Parking Authority
2020 Parking Revenue Bonds 409,919 - (17,320) 392,599 Total Deferred Amount on Refunding $ 12,735,989 $ - $ (909,292) $ 11,826,697

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 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, 2024, are as follows:

General
Fund

Federal Housing
Grants

Special
Grants

Capital
Improvement
Other
Governmental
Funds
Total
Governmental
Funds
Fund balances:

Nonspendable:

Inventories $ 681,775 $ - $ - $ - $ - $ 681,775
Prep aid items 447,184 - 499,860 - 1,736,088 2,683,132
Advance deposits 1,532,772 - 108,354 - 63,041 1,704,167 Total Nonspendable 2,661,731 - 608,214 - 1,799,129 5,069,074

Restricted for:

Community development 1,925,555

-

-

-

67,973,239

69,898,794
Debt service reserve - - - - 315,912 315,912
General government - - - 8,952,419 8,952,419
Housing 1,277,452 90,904,955 - - 80,914,262 173,096,669 Libraries and arts 1,996,991 - - - 4,984,469 6,981,460
Parks and recreation 1,294,270 - - - 48,200,982 49,495,252 Public safety 14,023 - - - 15,337,170 15,351,193
Solid waste/recy cling - - - - 11,287,337 11,287,337
Streets, transit & traffic - - - 244,760 96,056,134 96,300,894 Total Restricted 6,508,291 90,904,955 - 244,760 334,021,924 431,679,930

Committed for:

General government operations 148,294,684

-

-

-

-

148,294,684
Total Committed 148,294,684 - - - - 148,294,684

Assigned for:

General government operations 31,322,378

-

-

-

-

31,322,378
Total Assigned 31,322,378 - - - - 31,322,378
Unassigned (deficit): 51,312,622 - (578,120) - - 50,734,502 Total Fund Balances $ 240,099,706 $ 90,904,955 $ 30,094 $ 244,760 $ 335,821,053 $ 667,100,568

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 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:

S afety
Contributions made after measurement date $ 45,350,173 $ - $ 45,350,173 Change in assumptions 22,902,104 - 22,902,104
Differences between expected and actual experience 13,932,417 - 13,932,417 Difference between projected and actual investment earnings 40,381,459 - 40,381,459 Total Safety Plan 122,566,153 - 122,566,153
Miscellaneous
Contributions made after measurement date 17,300,714 1,593,747 18,894,461 Change in assumptions 1,720,833 158,524 1,879,357
Difference between projected and actual investment earnings 3,656,309 336,820 3,993,129 Total Miscellaneous Plan 50,901,766 4,689,088 55,590,854 PARS
Change in assumptions - 26,324 26,324
Differences between expected and actual experience - 106,501 106,501 Difference between projected and actual investment earnings - 165,415 165,415 Total PARS Plan - 298,240 298,240
Total Pension related Deferred Outflows of Resources $ 173,467,919 $ 4,987,328 $ 178,455,247

Net Pension Liability:

CalPERS:

Safety $ 463,456,397 $ - $ 463,456,397
Miscellaneous 148,947,725 13,721,117 162,668,842
PARS 1,811,825 1,811,825
Total Net Pension Liability $ 612,404,122 $ 15,532,942 $ 627,937,064

Deferred Inflows of Resources:

CalPERS:

S afety
Differences between expected and actual experience $ 2,019,334 $ - $ 2,019,334 Total Safety Plan 2,019,334 - 2,019,334
Miscellaneous
Differences between expected and actual experience 1,432,552 131,966 1,564,518 Total Miscellaneous Plan 1,432,552 131,966 1,564,518
Total Pension Deferred Inflows of Resources $ 3,451,886 $ 131,966 $ 3,583,852

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
87 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 salary 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, 2024, are summarized as follows:

Safety Plan
Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit Vesting Schedule 5 years service 5 years service Tier II Fire: 3% @ 55 years of age
Benefit Formula 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% 13.5% and 14.50% Required Employer Contribution Rates 22.91% 22.91%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
88 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)
General Information about Pension Plans (Continued)
Miscellaneous Plan
Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit Vesting Schedule 5 years service 5 years service Tier I: 2% @ 55 years of age
Benefit Formula 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% 7.50%
Required Employer Contribution Rates 10.52% 10.52%
Employees Covered – At June 30, 2023, the measurement date, the following employees were covered under benefit terms:

Safety Plan Miscellaneous Plan
Active employees 530 989
Transferred and terminated employees 559 1,620
Retired employees and beneficiaries 965 1,620
2,054 4,229
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, 2024, the Safety Plan employer contribution rate was 22.91% of wages . The Miscellaneous Plan was 10.52% of wages.

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, applying 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:

S afety Plan Miscellaneous Plan
Valuation Date 6/30/2022 6/30/2022
Measurement Date
Actuarial Cost Method
6/30/2023 6/30/2023
Entry Age Actuarial Cost Method
Actuarial Assump tions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected Salary Increase Varies (1) Varies (1)
Mortality see note (2) see note (2)

(1) Depending on age, service and type of employ ment. (2)
The mortality table used was developed based on CalPERS -sp ecific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorp orate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)
General Information about Pension Plans (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.

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 administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation
Real Return Years
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%
(1) An Expected inflation of 2.30% used for this period. (2)Figures are based on the 2021-22 Asset Liability Management study.

Change of Assumptions

There were no changes of assumptions for the June 30, 2023 measurement period.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:

S afety Plan
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2022 (valuation date) $ 1,297,211,187 $ 854,015,080 $ 443,196,107 Changes for the year:

Service cost 18,857,878 - 18,857,878
Interest on total pension liability 88,681,309 - 88,681,309 Changes of Benefit Terms 471,635 - 471,635
Changes of Assumption - - -
Differences between expected and actual experience 14,050,958 - 14,050,958 Net plan to plan resource movement - (27,329) 27,329
Contributions-employer - 42,540,178 (42,540,178)
Contributions-employee - 7,336,349 (7,336,349)
Net investment income - 52,580,295 (52,580,295)
Benefit payments, including refunds of employee (71,852,731) (71,852,731) - Administrative expense - (628,003) 628,003
Net Changes 50,209,049 29,948,759 20,260,290
Balances at 06/30/2023 (measurement date) $ 1,347,420,236 $ 883,963,839 $ 463,456,397

Miscellaneous Plan

Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2022 (valuation date) $ 802,855,577 $ 649,304,071 $ 153,551,506 Changes for the year:

Service cost 12,379,553 - 12,379,553
Interest on total pension liability 54,744,796 - 54,744,796 Changes of Benefit Terms 1,194,464 - 1,194,464
Differences between expected and actual experience 6,488,834 - 6,488,834 Net plan to plan resource movement - 27,329 (27,329)
Contributions-employer - 21,302,978 (21,302,978)
Contributions-employee - 5,020,603 (5,020,603)
Net investment income - 39,816,869 (39,816,869)
Benefit payments, including refunds of employee (46,651,662) (46,651,662) - Administrative expense - (477,468) 477,468
Other Miscellaneous Income (Expense) - - -
Net Changes 28,155,985 19,038,649 9,117,336
Balances at 06/30/2023 (measurement date) $ 831,011,562 $ 668,342,720 $ 162,668,842

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 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:

Safety Plan
1%
Decrease
Current
Discount
1%
Increase
Rate (5.90%) Rate (6.90%) Rate (7.90%)
Net pension liability $ 648,261,557 $ 463,456,397 $ 312,909,455 Miscellaneous Plan
1%
Decrease
Rate (5.90%)
Current
Discount
Rate (6.90%)
1%
Increase
Rate (7.90%)
Net pension liability $ 266,803,501 $ 162,668,842 $ 76,299,585 Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions As of measurement date June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Safety Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 45,350,173 $ - Changes of assumptions 22,902,104 -
Differences between expected and actual experience 13,932,417 (2,019,334) Net differences between projected and actual
earnings on pension plan investments 40,381,459 -
Total $ 122,566,153 $ (2,019,334)

Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contribution subsequent to measurement date $ 18,894,461 $ - Changes of assumptions 1,879,357 -
Differences between expected and actual experience 3,993,129 (1,564,518) Net differences between projected and actual
earnings on pension plan investments 30,823,907 -
Total $ 55,590,854 $ (1,564,518)

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 Note 12 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)
Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) The $45,350,173 and $18,894,461 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, 2024, will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows, and deferred inflows of resources related to pensions will be recognized in future pension expense.

Safety Plan
Measurement
periods
ended June 30:

Deferred
Outflows/(inflows)
of Resources

2024 $ 21,822,808
2025 20,360,052
2026 31,908,067
2027 1,105,719
2028 -
Thereafter -
Total $ 75,196,646

Miscellaneous Plan
Measurement
periods
ended June 30:

Deferred
Outflows/(inflows)
of Resources

2024 $ 8,276,386
2025 4,481,881
2026 21,524,100
2027 849,508
2028 -
Thereafter -
Total $ 35,131,875

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
93 Note 12 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)
General Information about Pension Plans (Continued)

Employees covered – At June 30, 2024, the following employees were covered by the benefit terms:

PARS Enhancement Plan
Active employees 27
Terminated vested and other inactives -
Retirees and beneficiaries 55
82 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.

Net Pension Liability

The City’s net pension liability was measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2022, using standard update procedures.

Actuarial assumptions – The total pension liability on June 30, 2024, the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

PARS Enhancement Plan

(1)

(2)

(1)

(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.

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.

Valuation Date 6/30/2022
Measurement Date 6/30/2024
Actuarial Cost Method 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%
Investment Rate of Return 6.50%
M ortality

Depending on years of service.
see note

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
94 Note 12 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)
Net Pension Liability (Continued)

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

There were no changes of assumptions in 2024.

Long-Term Expected Rate of Return

The assumption for the long-term expected rate of return was selected by the City. Below is a projection of the 30 year average return derived by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation on the Plan's current asset allocation. The capital market assumptions are per Milliman's investment consulting practice as of June 30, 2024.

PARS Enhancement Plan

Asset Class

Estimated Allocation
Long-Term
Expected
Arithmetic Real
Rate of Return
Long-Term
Expected
Geometric Real
Rate of Return
US Cash 3.03% 0.94% 0.91%
US Core Fixed Income 46.45% 2.52% 2.36%
US Broad Equity Market 38.98% 5.52% 3.82%
Foreign Developed Equity 6.47% 1.92% 5.12%
Emerging Markets Equity 3.36% 9.34% 6.21%
US REITs 1.71% 6.91% 4.72%
Total 100.00%
Assumed Inflation - Mean 2.31% 2.30%
Assumed Inflation - Standard Deviation 1.45% 1.45%
Portfolio Real Mean Return 4.23% 3.72%
Portfolio Nominal Mean Return 6.53% 6.13%
Portfolio Standard Deviation 9.44%
City's Long-Term Expected Rate of Return 6.50%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
95 Note 12 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Plan are as follows:

PARS Enhancement Plan
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2022 $ 13,558,387 $ 10,449,018 $ 3,109,369 Changes for the year:

Service cost 117,422 - 117,422
Interest on total pension liability 866,354 - 866,354
Effect of economic/demographic gains or losses - - -
Effect of assumptions changes or inputs - - -
Benefit payments (705,653) (705,653) -
Employer contributions - 1,112,705 (1,112,705)
Net investment income - 1,186,744 (1,186,744)
Administrative expense - (18,129) 18,129
Net Changes 278,123 1,575,667 (1,297,544)
Balances at 06/30/2023 $ 13,836,510 $ 12,024,685 $ 1,811,825 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:

PARS Enhancement Plan

1%
Decrease
Current
Discount
1%
Increase
Rate (5.50%) Rate (6.50%) Rate (7.50%)
Net pension liability $ 3,411,112 $ 1,811,825 $ 460,559 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, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

PARS Enhancement Plan

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions $ 26,324 $ -
Differences between expected and actual experience 106,501 - Net differences between projected and actual
earnings on pension plan investments

165,415

-
Total $ 298,240 $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
96 Note 12 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)
Amounts \ will be recognized in future pension expense as follows:

PARS Enhancement Plan
Measurement
periods
ended June 30:

Deferred
Outflows/(inflows)
of Resources

2025 $ 172,282
2026 334,409
2027 (109,467)
2028 (98,984)
2029 -
Thereafter -
Total $ 298,240

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 2023 -24, the Section 115 Plan, has $80.2 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 claim, 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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
97 Note 13 – Claims Payable (Continued)

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’ compensation for the current year, the present value of estimated outstanding losses is recognized at a 70% confidence level, using a 2.25% discount rate to reflect future investment earnings. While the ultimate amounts of losses incurred through June 30, 2024 are dependent on future developments, based on information provided by the City Attorney, outside 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.

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:

General
Liability
Workers’
Compensation
Health
Benefits

Total
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 Claims incurred 8,083,175 7,365,861 1,729,370 17,178,406 Claims paid (2,641,253) (6,815,861) (1,729,370) (11,186,484) Balance, June 30, 2024 $ 28,946,547 $ 51,113,000 $ - $ 80,059,547

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 municipalities and regional municipal joint powers authorities to form the California Joint Powers Risk Management Authority (CJPRMA), a public entity risk pool currently operating as a general liability risk management and insurance program for 18 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, excess 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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
98 Note 13 – Claims Payable (Continued)

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.

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

In July 2003, the City joined California Public Entity Insurance Authority (CPEIA), a public entity risk pool which operated an Excess Workers’ Compensation Program. CPEIA has since merged into an existing authority known as California State Association of Counties Excess Insurance Authorities (CSAC -EIA). The CSAC -EIA was formed in 1979 by 29 California counties for the purpose of pooling risk and providing a viable and cost-effective solution for the counties’ insurance and risk management needs. In 2020, the EIA became Public Risk Innovation, Solutions, and Management. PRISM has since expanded to allow admittance from cities and other entities which currently includes 95% of the counties in California, nearly 70% of the cities, as well as, numerous school districts, special districts, housing authorities, fire districts, and other Joint Powers Authorities. The City’s self -insured retention is currently set at $500,000 per occurrence. Losses above the City’s SIR are pooled up to $4.5 million per occurrence by PRISM.

Statutory coverage for losses above $5 million is covered by reinsurance and excess insurance policies throughout PRISM.

Note 14 – Pollution Remediation Obligations

GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, 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 obligating event requiring remediation action, estimable remediation costs components, and recoveries by responsible parties. Details of the liabilities as of June 30, 2024, are also discussed.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
99 Note 14 – Pollution Remediation Obligations (Continued)

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

Area 2A-Unocal – Soil and groundwater contamination has been identified in Area 2A -Unocal associated with total petroleum hydrocarbons, volatile and semi-volatile organic compounds. The obligating event for this site stems from a Polanco agreement notice issued to the responsible party, currently in negotiation for settlement. Estimated costs are for a consultant, legal and City personnel costs for cleanup of the soil 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, 2024, 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, 2024.

Note 15 – Other Required Disclosures

Deficit Fund Balances
At June 30, 2024, the following funds had net positions or fund balance deficits:

Fund Fund Type Deficit
Parking Authority Enterprise Fund $ (3,400,238)
Successor Agency Private Purpose Trust Fund (54,337,050)

• The Parking Authority Fund has an accumulated deficit fund balance of $3,400,238 as of June 30,2024. 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 $54,337,050 as of June 30, 2024. 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.

Expenditures in Excess of Appropriations
The following fund had expenditures in excess of appropriations:

Major Governmental Fund:

General Fund
Non-departmental
Debt service:

Principal
Interest
$ 1,315,209 $ 1,479,033 $ 163,824
- 1,306,917 1,306,917
- 15,298 15,298

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
100

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, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, requires disclosure of pending litigation for which contingency is possible, and the amount cannot be reasonably estimated. As discussed in Note 13, the City is self-insured and has accrued a liability for estimated claims outstanding. Amounts for the claims, which cannot be reasonably estimated at this time, have not been included in the financial statements. Management, after consultation with legal counsel, is of the opinion that ultimate disposition of these matters will not have a material adverse effect on the City’s financial position or results of operations.

Capital Commitments
The City is undertaking some capital improvement projects, the most significant of which include the following outstanding capital commitments at June 30, 2024:

Amount
Waterfront Towers New City Hall

$ 17,685,524
Regional Wastewater Control Facility 10,460,983
Developer Reimbursements 8,272,003
South Stockton Well SSS8 Rehab 4,143,420
Citywide Tree Maintenance 3,414,150
Bus Rapid Transit, Phase V 2,996,429

$ 46,972,509
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, Fund Balance Reporting and Governmental Fund Type Definitions, 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, 2024, are as follows:

Amount
General Fund

$ 10,136,394
Housing Grant Fund 597,701
Special Grant Fund 23,353,236
Capital Improvements 58,666,976
Other Governmental Funds 18,701,483
Total Governmental Funds

$ 111,455,790
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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
101

Note 16 – Commitments and Contingencies (Continued)

Facilities Management Agreement
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 Global 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 Global 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, 2024:

Governmental
Activities
Business -Type
Activities

Totals
Capital assets, net $ 950,951,378 $ 871,373,269 $ 1,822,324,647 Debt related to capital assets (63,736,605) (393,505,650) (457,242,255) Unamortized loss on refunding of debt - 11,826,697 11,826,697 Retention payable (1,757,049) (1,222,690) (2,979,739)
Net investment in capital assets $ 885,457,724 $ 488,471,626 $ 1,373,929,350

ATTACHMENT A

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
102

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

Restricted Net Position

At June 30, 2024, restricted net position consisted of the following:

Governmental
Activities

Business -Type
Activities

Totals

Restricted:

Capital projects $ 2,455,802 $ 11,211,642 $ 13,667,444
Debt service 1,989,654 14,818,691 16,808,345
Community Development 69,961,834 - 69,961,834
General government 8,864,980 - 8,864,980
Housing 173,096,670 - 173,096,670
Library and arts 6,985,426 - 6,985,426
Parks and recreation 45,513,350 - 45,513,350
Public safety 17,869,257 - 17,869,257
Solid waste/recycling 11,300,167 - 11,300,167
Streets, transit and traffic 96,675,288 - 96,675,288
Pension 80,238,463 - 80,238,463
Total restricted $ 514,950,891 $ 26,030,333 $ 540,981,224

Note 18 – Subsequent Events

Issuance of Debt in Districts that have no commitment from City resources Cannery Park II CFD 2019-1

On July 17, 2024 the City of Stockton issued Special Tax Bonds, Series 2024 at a par amount of $1,525,000. The final payoff of the debt is September 1, 2054. Payment of the bonds are solely derived from special taxes on residential properties in the district and city funds are not pledged toward repayment of the bonds.

Issuance of Debt with net revenue commitment from Wastewater Utility

Stockton Public Finance Authority Wastewater Revenue Refunding Bonds, Series 2024 On September 4, 2024, the Stockton Public Financing Authority refunded revenue bonds in a par amount of $28,085,000. The refunding refinanced the Wastewater Revenue Refunding, Series 2014 bonds that were issued to complete 1998 and 2003 Wastewater Projects. The debt is issued on parity and will have a final pay off date of September 1, 2029. Payments on the debt are solely derived from the net revenues of the Wastewater system which have been pledged toward repayment of the bonds.

California Clean Water State Revolving Fund (SRF) Loan
In November 2021, City Council approved a low interest loan with the California Clean Water State Revolving Fund (SRF) in the amount of $46.8 million for planning, design and construction of the RWCF Modifications Project. As of June 30, 2024 the City had drawn $35.1 million. The remaining $11.7 million was drawn on October 23, 2024. The debt is issued on parity and will have a final pay off date of December 31, 2053. Payments on the debt are solely derived from the net revenues of the Wastewater system which have been pledged toward repayment of the bonds.

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ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
103

Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2024

1 Budgetary Information
Budget Process

In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. The General Fund, Federal Housing 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.

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.

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ATTACHMENT A
104

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ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
105

Notes to the Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2024
Budget Basis of Accounting

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

The statements of revenue, expenditures and changes in fund balances have been 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.

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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
106

Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2024

Budget Variance with
Original Final Actual Final Budget
REVENUES:

Taxes:

Property $ 43,251,000 $ 43,251,000 $ 45,400,105 $ 2,149,105 Utility user 40,503,027 40,503,027 42,799,092 2,296,065 Sales - levied by City 46,338,887 46,338,887 46,214,556 (124,331) Franchise fees 18,698,517 18,698,517 19,351,515 652,998 Business license 14,874,886 14,874,886 18,676,259 3,801,373 Hotel/motel room 3,453,342 3,453,342 3,520,339 66,997 Document transfer 972,295 972,295 991,618 19,323
Other 3,300,061 3,300,061 6,215,234 2,915,173
Licenses and permits 586,405 586,405 375,315 (211,090) Intergovernmental:

Federal grants and subsidies 116,429 263,557 224,488 (39,069) Sales and use tax - levied by state 77,451,510 77,451,510 78,917,161 1,465,651 Other governmental 45,552,504 45,552,504 47,037,140 1,484,636 Charges for services 11,021,060 11,021,060 11,164,587 143,527 Fines and forfeitures 1,128,004 1,128,004 933,490 (194,514) Use of money and property 8,366,478 8,388,572 9,307,520 918,948 Investment income:

Interest income 2,362,318 2,362,318 12,058,411 9,696,093 Refunds and reimbursements 117,264 159,378 316,034 156,656 Miscellaneous 4,991,033 4,962,739 5,990,612 1,027,873 323,085,020 323,268,062 349,493,476 26,225,414

EXPENDITURES:

General government:

City council 1,038,115 1,178,713 1,033,906 144,807 City manager 3,221,371 3,203,550 2,750,496 453,054 City attorney 1,478,000 1,591,699 1,246,853 344,846 City clerk 1,165,923 1,242,420 1,152,163 90,257
City auditor 513,147 1,095,040 669,798 425,242
Administrative services 9,067,260 9,593,559 8,230,874 1,362,685 Human resources 2,922,285 10,364,245 7,373,813 2,990,432 Housing 1,648,370 5,013,007 1,686,300 3,326,707
Non-departmental 2,686,521 1,315,209 1,479,033 (163,824) Total general government 23,740,992 34,597,442 25,623,236 8,974,206

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
107

Budgetary Comparison Schedule - General Fund (Continued) For the Year Ended June 30, 2024

Budget Variance with
Original Final Actual Final Budget

EXPENDITURES (CONTINUED):

Public safety:

Police 161,014,205 164,431,872 156,236,561 8,195,311 Fire 62,916,990 63,944,540 62,934,410 1,010,130
Total public safety 223,931,195 228,376,412 219,170,971 9,205,441

Public works

19,110,736

21,290,578

19,564,987

1,725,591
Library 13,229,564 14,327,230 12,638,836 1,688,394
Parks and recreation 15,001,857 18,934,684 13,324,394 5,610,290 Capital outlay 210,600 4,677,918 1,545,723 3,132,195 Debt service:

Principal retirement - - 1,306,917 (1,306,917)
Interest and fiscal charges - - 15,298 (15,298)
Total expenditures 295,224,944 322,204,264 293,190,362 29,013,902

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS) 27,860,076 1,063,798 56,303,114 55,239,316

OTHER FINANCING SOURCES (USES):

Transfers in - 500,000 - (500,000)
Transfers out (14,410,425) (21,106,053) (29,523,956) (8,417,903) Issuance of debt - - 953,380 953,380
Proceed from sale of capital assets 100,000 100,000 3,518 (96,482) Total other financing sources (uses) (14,310,425) (20,506,053) (28,567,058) (8,061,005)

NET CHANGE IN FUND BALANCE
(GAAP BASIS)

$ 13,549,651

$ (19,442,255)

27,736,056

$ 47,178,311

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (11,315,764)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 16,420,292

FUND BALANCE, BEGINNING OF YEAR 212,363,650
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 228,783,942

* Adjusted to Budgetary Basis.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
108

Budgetary Comparison Schedule - Federal Housing Grants Special Revenue Fund For the Year Ended June 30, 2024

Budget Variance with
Original Final Actual Final Budget

REVENUES:

Intergovernmental:

Federal grants and subsidies $ 4,981,181 $ 5,064,499 $ 6,081,722 $ 1,017,223 Other governmental - 1,747,243 1,762,629 15,386
Charges for services - - 3,150 3,150
Use of money and property
Investment income:

Interest income
334,000

-
681,639

-
5,533,956

106,214
4,852,317

106,214
Miscellaneous - - 77,181 77,181
Total revenues 5,315,181 7,493,381 13,564,852 6,071,471

EXPENDITURES:

Current:

General government

8,411,871

27,810,135

7,159,944

20,650,191
Debt service:

Principal retirement 1,920,000 1,920,000 1,976,732 (56,732) Interest and fiscal charges 41,541 41,541 4,965 36,576 Total expenditures

10,373,412 29,771,676 9,141,641 20,630,035

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (GAAP BASIS)

(5,058,231)

(22,278,295)

4,423,211

26,701,506

OTHER FINANCING USES:

Transfers in

1,747,243

1,747,243

-

(1,747,243)
Transfers out (349,449) (349,449) (352,525) (3,076)
Proceeds from sale of capital assets - - 137 -
Total other financing uses

1,397,794 1,397,794 (352,388) (1,750,319)

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (3,660,437)

$ (20,880,501)

4,070,823

$ 26,701,506

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)*

(672,146)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

3,398,677

FUND BALANCE, BEGINNING OF YEAR 86,834,132
FUND BALANCE (BUDGATARY BASIS), END OF YEAR $ 90,232,809

* Adjusted to Budgetary Basis.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
109

Budgetary Comparison Schedule - Special Grants Special Revenue Fund For the Year Ended June 30, 2024

Budget Variance with
Original Final Actual Final Budget

REVENUES:

Intergovernmental:

Federal grants and subsidies $ 4,574,768 $ 59,793,103 $ 21,155,021 $ (38,638,082) Other governmental - 44,378,657 19,396,377 (24,982,280) Refunds and reimbursements - - 26,670 26,670
Miscellaneous - (277,247) 306,900 584,147
Total revenues 4,574,768 103,894,513 40,884,968 (63,009,545)

EXPENDITURES:

Current:

General government (75,079) 88,090,259 27,037,207 61,053,052 Public safety 100,125 17,653,651 4,493,446 13,160,205 Public works - 1,511,892 334,875 1,177,017
Library - 69,901 682,243 (612,342)
Parks and recreation - 3,392,584 2,232,294 1,160,290 Capital outlay
Debt service:

Principal retirement
-

-
29,496,904

-
5,833,529

26,098
23,663,375

(26,098)
Interest and fiscal charges - - 1,338 (1,338)
Total expenditures 25,046 140,215,191 40,641,030 99,574,161

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

4,549,722

(36,320,678)

243,938

36,564,616

OTHER FINANCING SOURCES (USES):

Transfers in

-

-

1,181,818

1,181,818
Transfers out - 51,500 (51,500) (103,000)
Total other financing sources ( uses) - 51,500 1,130,318 1,078,818

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ 4,549,722

$ (36,269,178)

1,374,256

$ 37,643,434

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)*

(25,718,191)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

(24,343,935)

FUND BALANCE, BEGINNING OF YEAR (DEFICIT) (1,344,162)
FUND BALANCE (BUDGATARY BASIS), END OF YEAR (DEFICIT) $ (25,688,097)

* Adjusted to Budgetary Basis.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation 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 June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
110

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan

Fiscal Year
Measurement period 2013-14 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)1 - - - - (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 - beginning2 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 payroll3 $ 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%

1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one -time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
3 Includes one year’s payroll grow th using 2.80% payroll grow th assumption for fiscal years ended in 2022 and 2023; 2.75% payroll grow th assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

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 liability impact is deemed to be material by the plan actuary.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
111

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued)

Fiscal Year
Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost $ 11,446,572 $ 11,098,178 $ 11,194,084 $ 12,181,998 $ 12,379,553 Interest 50,718,177 51,801,795 53,055,641 52,840,932 54,744,796 Changes of benefit terms - - - - 1,194,464
Changes of assumptions - - - 8,143,881 -
Differences between expected
and actual experience 2,061,288 (8,567,800) (5,435,616) (6,779,583) 6,488,834 Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) (43,773,909) (46,651,662) Net change in total pension liability 26,748,786 15,274,908 17,919,377 22,613,319 28,155,985 Total pension liability - beginning 720,299,187 747,047,973 762,322,881 780,242,258 802,855,577 Total pension liability - ending (a) $ 747,047,973 $ 762,322,881 $ 780,242,258 $ 802,855,577 $ 831,011,562 Pension fiduciary net position
Contributions - employer $ 17,112,542 $ 19,204,043 $ 20,363,651 $ 20,485,648 $ 21,302,978 Contributions - employee 4,540,503 4,721,760 4,939,316 4,857,018 5,020,603 Net investment income 37,027,715 29,185,528 135,230,666 (54,203,709) 39,816,869 Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) (43,773,909) (46,651,662) Net plan to plan resource movement - - - - 27,329
Administrative expense (406,288) (831,939) (602,713) (450,005) (477,468) Other miscellaneous income/ (expense)1 1,325 - - - -
Net change in plan fiduciary net position 20,798,546 13,222,127 119,036,188 (73,084,957) 19,038,649 Plan fiduciary net position - beginning2 569,332,167 590,130,713 603,352,840 722,389,028 649,304,071 Plan fiduciary net position - ending (b) $ 590,130,713 $ 603,352,840 $ 722,389,028 $ 649,304,071 $ 668,342,720 Plan net pension liability - ending (a) - (b) $ 156,917,260 $ 158,970,041 $ 57,853,230 $ 153,551,506 $ 162,668,842 Plan fiduciary net position as a percentage
of the total pension liability 79.00% 79.15% 92.59% 80.87% 80.43% Covered payroll3 $ 67,851,642 $ 67,099,018 $ 69,099,285 $ 70,213,245 $ 71,932,325 Plan net pension liability as a percentage
of covered payroll 231.27% 236.92% 83.72% 218.69% 226.14%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation 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 June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
112

California Public Employees' Retirement System ("CalPERS") - Safety Plan

Fiscal Year
Measurement period 2013-14 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)1 - - - - (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 - beginning2 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 payroll3 $ 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%

1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one -time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
3 Includes one year’s payroll grow th using 2.80% payroll grow th assumption for fiscal years ended in 2022 and 2023; 2.75% payroll grow th assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

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 liability impact is deemed to be material by the plan actuary

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
113

California Public Employees' Retirement System ("CalPERS") - Safety Plan (Continued)

Fiscal Year
Measurement period 2018-19 2019-20 2020-21 2021-22 2022-23 Total pension liability
Service cost $ 18,340,749 $ 18,438,776 $ 17,442,651 $ 20,255,092 $ 18,857,878 Interest 77,850,318 79,970,381 82,106,386 85,264,766 88,681,309 Changes of benefit terms - - - - 471,635
Changes of assumptions - - - 44,713,632 -
Differences between expected
and actual experience 2,178,151 (7,219,787) (5,649,159) 7,388,791 14,050,958 Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) (67,804,721) (71,852,731) Net change in total pension liability 40,856,348 29,964,133 30,349,606 89,817,560 50,209,049 Total pension liability - beginning 1,106,223,540 1,147,079,888 1,177,044,021 1,207,393,627 1,297,211,187 Total pension liability - ending (a) $ 1,147,079,888 $ 1,177,044,021 $ 1,207,393,627 $ 1,297,211,187 $ 1,347,420,236 Pension fiduciary net position
Contributions - employer $ 29,781,351 $ 33,596,802 $ 37,208,895 $ 39,195,163 $ 42,540,178 Contributions - employee 7,139,569 7,347,966 7,775,415 7,961,859 7,336,349 Net investment income 48,529,461 38,307,390 177,671,066 (71,402,376) 52,580,295 Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) (67,804,721) (71,852,731) Net plan to plan resource movement - - - - (27,329)
Administrative expense (530,927) (1,087,482) (787,501) (589,709) (628,003) Other miscellaneous income/ (expense)1 1,732 - - - -
Net change in plan fiduciary net position 27,408,316 16,939,439 158,317,603 (92,639,784) 29,948,759 Plan fiduciary net position - beginning2 743,989,506 771,397,822 788,337,261 946,654,864 854,015,080 Plan fiduciary net position - ending (b) $ 771,397,822 $ 788,337,261 $ 946,654,864 $ 854,015,080 $ 883,963,839 Plan net pension liability - ending (a) - (b) $ 375,682,066 $ 388,706,760 $ 260,738,763 $ 443,196,107 $ 463,456,397 Plan fiduciary net position as a percentage
of the total pension liability 67.25% 66.98% 78.40% 65.83% 65.60% Covered payroll3 $ 59,708,789 $ 60,894,239 $ 58,297,630 $ 61,286,210 $ 57,058,632 Plan net pension liability as a percentage
of covered payroll 629.19% 638.33% 447.25% 723.16% 812.25%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
114

Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024

Last Ten Fiscal Years
PARS Enhancement Plan
Fiscal Year
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 fiduciary 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 payroll $ 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%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
115

Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years

PARS Enhancement Plan (Continued)

Fiscal Year
Measurement period 2019-20 2020-21 2021-22 2022-23 2023-24 Total pension liability
Service cost $ 155,670 $ 132,117 $ 135,750 $ 114,224 $ 117,422 Interest 759,727 781,943 809,517 826,109 866,354
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) (705,653) Net change in total pension liability 397,686 451,236 299,521 622,725 278,123 Total pension liability - beginning 11,787,219 12,184,905 12,636,141 12,935,662 13,558,387 Total pension liability - ending (a) $ 12,184,905 $ 12,636,141 $ 12,935,662 $ 13,558,387 $ 13,836,510 Pension fiduciary net position
Contributions - employer $ 803,170 $ 602,378 $ 1,055,182 $ 854,389 $ 1,112,705 Contributions - employee - - - - -
Net investment income 272,545 1,923,213 (1,452,185) 682,430 1,186,744 Benefit payments, including
refunds of employee contributions (517,711) (583,450) (645,746) (691,937) (705,653) Net plan to plan resource movement - - - - -
Administrative expense (15,254) (16,676) (17,644) (16,773) (18,129) Net change in plan fiduciary net position 542,750 1,925,465 (1,060,393) 828,109 1,575,667 Plan fiduciary net position - beginning 8,213,087 8,755,837 10,681,302 9,620,909 10,449,018 Plan fiduciary net position - ending (b) $ 8,755,837 $ 10,681,302 $ 9,620,909 $ 10,449,018 $ 12,024,685 Plan net pension liability - ending (a) - (b) $ 3,429,068 $ 1,954,839 $ 3,314,753 $ 3,109,369 $ 1,811,825 Plan fiduciary net position as a percentage
of the total pension liability

71.86%

84.53%

74.38%

77.07%

86.91%
Covered payroll $ 2,784,812 $ 2,966,110 $ 2,403,153 $ 2,560,684 $ 2,417,785 Plan net pension liability as a percentage
of covered payroll

123.13%

65.91%

137.93%

121.43%

74.94%

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years1
116

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan

Fiscal Year1
2014-15 2015-16 2016-17 2017-18 2018-19

Actuarially determined contribution

$ 10,783,518

$ 12,545,482

$ 13,189,681

$ 15,252,226

$ 17,112,542
Contributions in relation to
the actuarially determined contribution2

(10,783,518)

(13,879,482)

(13,189,681)

(15,252,226)

(17,112,542)

Contribution deficiency (excess)

$ -

$ (1,334,000)

$ -

$ -

$ -

Covered payroll3 $ 53,997,677 $ 56,400,439 $ 61,357,565 $ 67,079,626 $ 67,851,642 Contributions as a percentage

of covered payroll3 19.97% 24.61% 21.50% 22.74% 25.22%

1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presen ted 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. How ever, 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 years ended in 2022 and 2023; 2.75% payro ll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2020 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.

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

Mortality
to 2015.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
117

Last Ten Fiscal Years1

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued)

Fiscal Year1
2019-20 2020-21 2021-22 2022-23 2023-24

Actuarially determined contribution

$ 19,204,043

$ 20,363,651

$ 20,485,648

$ 21,302,978

$ 18,894,461
Contributions in relation to
the actuarially determined contribution2

(19,204,043)

(20,363,651)

(20,485,648)

(21,302,978)

(18,894,461)

Contribution deficiency (excess)

$ -

$ -

$ -

$ -

$ -

Covered payroll3 $ 67,099,018 $ 69,099,285 $ 70,213,245 $ 71,932,325 $ 73,946,430 Contributions as a percentage

of covered payroll3 28.62% 29.47% 29.18% 29.62% 25.55%

1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presen ted 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. How ever, 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 years ended in 2022 and 2023; 2.75% payro ll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2020 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.

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

Mortality
to 2015.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years1
118

California Public Employees' Retirement System ("CalPERS") - Safety Plan

Fiscal Year1
2014-15 2015-16 2016-17 2017-18 2018-19

Actuarially determined contribution

$ 17,178,961

$ 20,338,253

$ 23,342,334

$ 26,124,666

$ 29,781,351
Contributions in relation to
the actuarially determined contribution2

(17,178,961)

(20,338,253)

(23,342,334)

(26,124,666)

(29,781,351)

Contribution deficiency (excess)

$ -

$ -

$ -

$ -

$ -

Covered payroll3 $ 46,710,538 $ 47,115,477 $ 48,429,252 $ 56,947,904 $ 59,708,789 Contributions as a percentage

of covered payroll3 36.78% 43.17% 48.20% 45.87% 49.88%

1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presen ted 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. How ever, 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 years ended in 2022 and 2023; 2.75% payro ll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2020 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.

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

Mortality
to 2015.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
119

California Public Employees' Retirement System ("CalPERS") - Safety Plan (Continued)

Fiscal Year1
2019-20 2020-21 2021-22 2022-23 2023-24

Actuarially determined contribution

$ 33,596,802

$ 37,208,895

$ 39,195,163

$ 42,540,178

$ 45,350,173
Contributions in relation to
the actuarially determined contribution2

(33,596,802)

(37,208,895)

(39,195,163)

(42,540,178)

(45,350,173)

Contribution deficiency (excess)

$ -

$ -

$ -

$ -

$ -

Covered payroll3 $ 60,894,239 $ 58,297,630 $ 61,286,210 $ 57,058,632 $ 58,656,274 Contributions as a percentage

of covered payroll3 55.17% 63.83% 63.95% 74.56% 77.32%

1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presen ted 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. How ever, 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 years ended in 2022 and 2023; 2.75% payro ll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2020 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.

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

Mortality
to 2015.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
120

Last Ten Fiscal Years
PARS Enhancement Plan
Fiscal Year
2014-15 2015-16 2016-17 2017-18 2018-19

Actuarially determined contribution

$ 700,451

$ 705,192

$ 705,192

$ 753,296

$ 753,296
Contributions in relation to
the actuarially determined contribution

(751,157)

(705,192)

(528,894)

(941,620)

(753,296)

Contribution deficiency (excess)

$ (50,706)

$ -

$ 176,298

$ (188,324)

$ -

Covered payroll $ 3,610,315 $ 3,454,139 $ 3,327,608 $ 3,427,436

$ 3,446,204

Contributions as a percentage
of covered payroll

20.81%

20.42%

15.89%

27.47%

21.86%

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2022 funding valuation report.

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

Payroll Growth 2.80%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Consistent with the rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, Withdrawal/Disability 2021.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
121

PARS Enhancement Plan (Continued)

Fiscal Year
2019-20 2020-21 2021-22 2022-23 2023-24

Actuarially determined contribution

$ 803,170

$ 803,170

$ 854,389

$ 854,389

$ 1,112,705
Contributions in relation to
the actuarially determined contribution

(803,170)

(602,378)

(1,055,182)

(854,389)

(1,112,705)

Contribution deficiency (excess)

$ -

$ 200,792

$ (200,793)

$ -

$ -

Covered payroll $ 2,784,812 $ 2,966,110 $ 2,403,153 $ 2,560,684

$ 2,417,785

Contributions as a percentage
of covered payroll

28.84%

20.31%

43.91%

33.37%

46.02%

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2022 funding valuation report.

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

Payroll Growth 2.80%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Consistent with the rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, Withdrawal/Disability 2021.

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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, 2024

REVENUES:

Original
Budget
Final
Budget

Actual
Variance with
Final Budget
Intergovernmental:

Federal grants and subsidies

$

- $ 5,299,919

$ 6,048,719

$ 748,800
Other governmental - 36,927,583 9,455,395 (27,472,188) Interest income - - 57,309 57,309
Refunds and reimbursements - - 6,822 6,822
Miscellaneous - - 501,836 501,836
Total revenues

- 42,227,502 16,070,081 (26,157,421)

EXPENDITURES:

Current:

Public works 4,629,331 18,201,321 118,181 18,083,140 Capital outlay - 289,304,469 54,828,553 234,475,916
Total expenditures 4,629,331 307,505,860 54,946,734 252,559,126

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

(4,629,331)

(265,278,358)

(38,876,653)

226,401,705

OTHER FINANCING SOURCES:

Transfers in 1,005,000 40,057,935 28,562,744 (11,495,191) Transfers out (1,250,000) (1,800,071) - 1,800,071
Total other financing sources (245,000) 38,257,864 28,562,744 (9,695,120)

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (4,874,331)

$ (227,020,494)

(10,313,909)

$ 216,706,585

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)*

(59,729,282)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (70,043,191)

FUND BALANCE, BEGINNING OF YEAR 10,558,669
FUND BALANCE (BUDGETARY BASIS) (DEFICIT), END OF YEAR $ (59,484,522)

* Adjusted to Budgetary Basis.

123

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125

NONMAJOR GOVERNMENTAL FUNDS

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

The City’s nonmajor governmental special revenue funds include:

State Housing Grants Fund
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.

Solid Waste and Recycling Fund
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).

Gas Tax Fund
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.

Measure K Streets Sales Tax 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 M Strong Communities
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.

Measure W Public Safety Tax Fund
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.

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

ATTACHMENT A

ATTACHMENT A
126

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

SPECIAL REVENUE FUNDS (CONTINUED)
Development Services Fund
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.

Other Special Revenue Fund
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.

Transportation Development Act Fund
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.

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

The City’s nonmajor governmental capital project funds include:

Public Facilities Impact Fees Capital Projects Fund
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, F ire stations, Libraries, Police stations, Parkland, Street tree & street signs, Street light in -lieu, Air quality mitigation, and Public facilities fees – administration.

DEBT SERVICE FUNDS

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.

The City’s nonmajor governmental debt service funds include:

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

PERMANENT FUND
Permanent funds are used to account for and report resources that are restricted to the extent that only earnings, and not pr incipal, may be used for purposes that support the reporting government‘s programs—that is, for the benefit of the government or its citizenry.

Permanent funds do not include private -purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings for the benefit of individuals, private organizations, or other governments.

Miscellaneous Permanent Fund
To account for the 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.

ATTACHMENT A

ATTACHMENT A
City of Stockton
127

Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024

Special Revenue Funds
State
Housing
Solid
Waste &

Gas
Measure K
Streets
Measure M
Strong
Grants Recycling Tax Sales Tax Communities
ASSETS

Cash and investments $ 7,453,039 $ 11,287,419 $ 19,559,496 $ 19,466,403 $ 38,494,908 Receivables, net:

Interest 30,402 50,679 111,944 107,874 187,277
Accounts and other - 227,104 - - -
Lease - - - - -
Advance deposits - - 20,836 21,883 18,097
Due from other governments, net - - 2,220,604 1,752,612 2,695,829 Prepaid items - - - - -
Loans to Successor Agency, net 1,106,580 - - - -
Loans to property owners, net 72,326,224 - - - -
Total assets $ 80,916,245 $ 11,565,202 $ 21,912,880 $ 21,348,772 $ 41,396,111

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable $ - $ 212,360 $ 309,264 $ 1,016,442 $ 293,689 Accrued payroll and benefits 1,982 61,590 166,597 11,086 255,483 Due to other governments - - - - -
Deposits and other liabilities - 3,915 - - -
Total liabilities 1,982 277,865 475,861 1,027,528 549,172

Deferred Inflows of Resources:

Unavailable revenue - Other - - - - -
Total deferred inflows of resources - - - - -

Fund Balances:

Nonspendable - - 20,836 21,883 18,097
Restricted 80,914,263 11,287,337 21,416,183 20,299,361 40,828,842 Total fund balances 80,914,263 11,287,337 21,437,019 20,321,244 40,846,939 Total liabilities, deferred inflows of
resources and fund balances

$ 80,916,245

$ 11,565,202

$ 21,912,880

$ 21,348,772

$ 41,396,111

(Continued)

ATTACHMENT A

ATTACHMENT A
City of Stockton
128

Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

Special Revenue Funds
Measure W
Public

Special

Development
Other
Special
Transportation
Development
Safety Tax Assessments Services Revenue Act
ASSETS

Cash and investments $ 11,186,945 $ 21,379,691 $ 47,485,865 $ 6,219,947 $ 1,677,900 Receivables, net:

Interest 51,034 106,867 224,352 23,720 -
Accounts and other - 439,026 747,297 64,174 -
Lease - - - - -
Advance deposits - - 63,041 1,530 -
Due from other governments, net 2,688,778 - 65,000 790,331 123,369 Prepaid items - - - - -
Loans to Successor Agency, net - - - - -
Loans to property owners, net - - - - -
Total assets $ 13,926,757 $ 21,925,584 $ 48,585,555 $ 7,099,702 $ 1,801,269

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable $ 133,722 $ 182,632 $ 662,349 $ 360,632 $ - Accrued payroll and benefits 551,223 21,143 504,905 48,162 - Due to other governments - - - - -
Deposits and other liabilities - - 1,103,831 - -
Total liabilities 684,945 203,775 2,271,085 408,794 -

Deferred Inflows of Resources:

Unavailable revenue - Other - - - 1,931 -
Total deferred inflows of resources

- - - 1,931 -

Fund Balances:

Nonspendable - - 63,041 1,530 -
Restricted 13,241,812 21,721,809 46,251,429 6,687,447 1,801,269 Total fund balances 13,241,812 21,721,809 46,314,470 6,688,977 1,801,269 Total liabilities, deferred inflows of
resources and fund balances

$ 13,926,757

$ 21,925,584

$ 48,585,555

$ 7,099,702

$ 1,801,269

(Continued)

ATTACHMENT A

ATTACHMENT A
City of Stockton
129

Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

Capital Debt Permanent
Projects Fund Service Fund Fund
Public
Facilities
Impact Fees
Stockton Public
Financing
Authority

Miscellaneous Totals
ASSETS

Cash and investments
Receivables, net:

Interest
$ 68,973,646

348,171
$ 355,180

59,103
$ 399,786

1,135
$ 253,940,225

1,302,558
Accounts and other 497,540 - - 1,975,141
Lease - - - -
Advance deposits - - - 125,387
Due from other governments, net - - - 10,336,523
Prepaid items - 1,673,742 - 1,673,742
Loans to Successor Agency, net - - - 1,106,580
Loans to property owners, net - - - 72,326,224
Total assets $ 69,819,357 $ 2,088,025 $ 400,921 $ 342,786,380

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable $ 71,329 $ 80,555 $ - $ 3,322,974
Accrued payroll and benefits 15,911 17,816 - 1,655,898 Due to other governments 379,238 - - 379,238
Deposits and other liabilities - - - 1,107,746
Total liabilities 466,478 98,371 - 6,465,856

Deferred Inflows of Resources:

Unavailable revenue - Other 497,540 - - 499,471
Total deferred inflows of resources 497,540 - - 499,471

Fund Balances:

Nonspendable - 1,673,742 - 1,799,129
Restricted 68,855,339 315,912 400,921 334,021,924
Total fund balances 68,855,339 1,989,654 400,921 335,821,053 Total liabilities, deferred inflows of
resources and fund balances

$ 69,819,357

$ 2,088,025

$ 400,921

$ 342,786,380

(Concluded)

ATTACHMENT A

ATTACHMENT A
City of Stockton
130

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024

Special Revenue
State
Housing
Solid
Waste &

Gas
Measure K
Streets
Measure M
Strong
Grants Recycling Tax Sales Tax Communities
REVENUES:

Taxes:

Sales - levied by City
Franchise fees
Business license
Licenses and permits
Intergovernmental:

Federal grants and subsidies
Other governmental
Charges for services
Fines and forfeitures
Use of money and property
Investment income:

Interest income
Refunds and reimbursements
Miscellaneous

EXPENDITURES:

Current:

General government 64,386 - - - -
Public safety - - - - -
Public works - 2,236,913 6,515,241 4,333,345 -
Library - - - - 3,187,520
Parks and recreation - - - - 5,414,634
Capital outlay - - 533,396 1,232,280 202,343
Debt service:

Principal retirement 31,586 - - - 18,046
Interest and fiscal charges 132 - - - 1,955
Total expenditures 96,104 2,236,913 7,048,637 5,565,625 8,824,498

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,705,958 2,923,675 10,751,317 4,091,855 7,970,323

OTHER FINANCING SOURCES (USES):

Transfers in 352,526 - 16,000 - -
Transfers out - - (4,537,003) (2,624,214) (587,986) Issuance of debt - - - - 55,827
Total other financing sources (uses) 352,526 - (4,521,003) (2,624,214) (532,159)

NET CHANGES IN FUND BALANCES

2,058,484

2,923,675

6,230,314

1,467,641

7,438,164
FUND BALANCES:

Beginning of year 78,855,779 8,363,662 15,206,705 18,853,603 33,408,775 End of year $ 80,914,263 $ 11,287,337 $ 21,437,019 $ 20,321,244 $ 40,846,939

(Continued)
$ -
-
-
$ -
4,004,711
-
$ -
-
-
$ 7,539,791
-
-
$ 15,406,039
-
-
- - - - -
- - - - -
-
-
-
1,549,359
877,186
-
-
-
17,110,715
-
-
-
1,297,168
-
-
-
-
-
-
-
224,264 275,531 519,203 810,685 1,388,782
- - 169,720 2,529 -
28,439 3,160 316 7,307 -
1,802,062 5,160,588 17,799,954 9,657,480 16,794,821

ATTACHMENT A

ATTACHMENT A
City of Stockton
131

Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024

Special Revenue
Measure W
Public

Special

Development
Other
Special
Transportation
Development
Safety Tax Assessments Services Revenue Act
REVENUES:

Taxes:

Sales - levied by City
Franchise fees
Business license
Licenses and permits
Intergovernmental:

Federal grants and subsidies
Other governmental
Charges for services
Fines and forfeitures
Use of money and property
Investment income:

Interest income
Refunds and reimbursements
Miscellaneous

EXPENDITURES:

Current:

General government - 1,594,806 7,278,116 270,083 -
Public safety 15,275,879 - 9,155,448 3,338,621 -
Public works - 3,675,508 - 510,822 -
Library - - - 69,532 -
Parks and recreation - - - - -
Capital outlay
Debt service:
308,491 - 1,912,461 550,349 -
Principal retirement 9,986 - 355,945 - -
Interest and fiscal charges 476 - - - -
Total expenditures 15,594,832 5,270,314 18,701,970 4,739,407 -

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

209,587

1,982,470

4,610,445

422,223

493,476

OTHER FINANCING SOURCES (USES):

Transfers in 118,182 - 800,000 - -
Transfers out - - - - (263,776)
Issuance of debt - - 1,912,461 - -
Total other financing sources (uses) 118,182 - 2,712,461 - (263,776)

NET CHANGES IN FUND BALANCES

327,769

1,982,470

7,322,906

422,223

229,700
FUND BALANCES:

Beginning of year 12,914,043 19,739,339 38,991,564 6,266,754 1,571,569 End of year $ 13,241,812 $ 21,721,809 $ 46,314,470 $ 6,688,977 $ 1,801,269

(Continued)
$ 15,406,874
-
$ -
-
$ -
-
$ -
-
$ -
-
-
-
1,745,026
-
-
9,661,484
-
23,592
-
-
- - - 14,386 -
- - - 4,301,010 493,476
- 4,699,257 11,879,525 91,190 -
-
-
-
-
232,093
-
-
31,186
-
-
397,545 790,252 1,466,904 183,419 -
- - 3,100 - -
- 18,249 69,309 516,847 -
15,804,419 7,252,784 23,312,415 5,161,630 493,476

ATTACHMENT A

ATTACHMENT A
City of Stockton
132

Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024

Capital Projects Debt Service Permanent
Public
Facilities
Impact Fees
Stockton Public
Financing
Authority

Miscellaneous Totals
REVENUES:

Taxes:

Sales - levied by City
Franchise fees
Business license
Licenses and permits
Intergovernmental:

Federal grants and subsidies
Other governmental
Charges for services
Fines and forfeitures
Use of money and property
Investment income:

Interest income
Refunds and reimbursements
Miscellaneous

EXPENDITURES:

Current:

General government 613,762 203,428 82 10,024,663
Public safety - - - 27,769,948
Public works 145,800 - - 17,417,629
Library - - - 3,257,052
Parks and recreation - - - 5,414,634
Capital outlay 4,414,749 - - 9,154,069
Debt service:

Principal retirement - 237,557 - 653,120
Interest and fiscal charges - 10,287,594 - 10,290,157 Total expenditures 5,174,311 10,728,579 82 83,981,272

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,796,540 (9,141,620) 17,650 29,833,899

OTHER FINANCING SOURCES (USES):

Transfers in - 9,061,425 - 10,348,133
Transfers out (860,667) - - (8,873,646)
Issuance of debt - - - 1,968,288
Total other financing sources (uses) (860,667) 9,061,425 - 3,442,775

NET CHANGES IN FUND BALANCES

2,935,873

(80,195)

17,650

33,276,674
FUND BALANCES:

Beginning of year 65,919,466 2,069,849 383,271 302,544,379 End of year $ 68,855,339 $ 1,989,654 $ 400,921 $ 335,821,053

(Concluded)
$ - $ - $ - $ 38,352,704
- - - 4,004,711
- - - 1,745,026
- - - 9,685,076
- - - 14,386
- - - 24,079,555
6,123,737 - - 22,793,709
- - - 232,093
58,518 - 8,712 1,647,775
2,788,596 (113,405) 9,020 8,740,796
- - - 175,349
- 1,700,364 - 2,343,991
8,970,851 1,586,959 17,732 113,815,171

ATTACHMENT A

ATTACHMENT A
City of Stockton
133

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Housing Grants Special Revenue Fund
For the Year Ended June 30, 2024

Original
Budget
Final
Budget

Actual
Variance with
Final Budget
REVENUES:

Use of money and property
Investment income:

Interest income
$ 20,000

800
$ 20,000

800
$ 1,549,359

224,264
$ 1,529,359

223,464
Miscellaneous - - 28,439 28,439
Total revenues 20,800 20,800 1,802,062 1,781,262

EXPENDITURES:

Current:

General government

1,796,940

4,764,868

64,386

4,700,482
Debt service:

Principal retirement

-

-

31,586

(31,586)
Interest and fiscal charges - - 132 (132)
Total expenditures 1,796,940 4,764,868 96,104 4,668,764

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

(1,776,140)

(4,744,068)

1,705,958

6,450,026

OTHER FINANCING SOURCES:

Transfers in 349,449 349,449 352,526 3,077
Total other financing sources 349,449 349,449 352,526 3,077

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (1,426,691)

$ (4,394,619)

2,058,484

$ 6,453,103

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (173,999)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

1,884,485

FUND BALANCE, BEGINNING OF YEAR 78,855,779
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 80,740,264

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 134

Solid Waste and Recycling Special Revenue Fund
For the Year Ended June 30, 2024

REVENUES:

Original
Budget
Final
Budget Actual
Variance with
Final Budget
Taxes:

Franchise fees

$

- $

- $ 4,004,711

$ 4,004,711
Intergovernmental:

Other governmental

3,315,000

3,817,060 877,186

(2,939,874)
Investment income:

Interest income

-

- 275,531

275,531
Miscellaneous - - 3,160 3,160
Total revenues 3,315,000

3,817,060 5,160,588 1,343,528

EXPENDITURES:

Current:

Public works 3,951,358 4,699,432 2,236,913 2,462,519 Total expenditures 3,951,358 4,699,432 2,236,913 2,462,519

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

(636,358)

(882,372)

2,923,675

3,806,047

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (636,358)

$ (882,372)

2,923,675

$ 3,806,047

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (371,219)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

2,552,456

FUND BALANCE, BEGINNING OF YEAR 8,363,662
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 10,916,118

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 135

Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental:

Other governmental

$ 17,119,777

$ 17,119,777

$ 17,110,715

$ (9,062)
Investment income:

Interest income

-

-

519,203

519,203
Refunds and reimbursements - - 169,720 169,720
Miscellaneous - - 316 316
Total revenues 17,119,777 17,119,777 17,799,954 680,177

EXPENDITURES:

Current:

Public works

7,987,888

8,451,198

6,515,241

1,935,957
Capital outlay - 10,933,415 533,396 10,400,019
Total expenditures 7,987,888 19,384,613 7,048,637 12,335,976

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

9,131,889

(2,264,836)

10,751,317

13,016,153

OTHER FINANCING SOURCES (USES):

Transfers in - 4,100,000 16,000 (4,084,000)
Transfers out (6,100,000) (6,100,000) (4,537,003) 1,562,997 Total other financing sources (uses) (6,100,000) (2,000,000) (4,521,003) (2,521,003) NET CHANGE IN FUND BALANCE (GAAP BASIS) $ 3,031,889

$ (4,264,836)

6,230,314

$ 10,495,150
BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* 1,600,884

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

7,831,198

FUND BALANCE, BEGINNING OF YEAR 15,206,705
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 23,037,903

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 136

Measure K Streets Sales Tax Special Revenue Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City

$ 7,916,980

$ 7,916,980

$ 7,539,791

$ (377,189)
Intergovernmental:

Other governmental

-

469,879

1,297,168

827,289
Investment income:

Interest income

-

-

810,685

810,685
Refunds and reimbursements - - 2,529 2,529
Miscellaneous - - 7,307 7,307
Total revenues 7,916,980 8,386,859 9,657,480 1,270,621

EXPENDITURES:

Current:

Public works

5,340,000

5,870,902

4,333,345

1,537,557
Capital outlay - 21,277,455 1,232,280 20,045,175
Total expenditures 5,340,000 27,148,357 5,565,625 21,582,732

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

2,576,980

(18,761,498)

4,091,855

22,853,353

OTHER FINANCING USES:

Transfers out (2,100,000) (3,496,651) (2,624,214) 872,437 Total other financing uses (2,100,000) (3,496,651) (2,624,214) 872,437 NET CHANGE IN FUND BALANCE (GAAP BASIS) $ 476,980

$ (22,258,149)

1,467,641

$ 23,725,790
BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (1,857,810)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

(390,169)

FUND BALANCE, BEGINNING OF YEAR 18,853,603
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 18,463,434

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 137

Measure M Strong Communities Special Revenue Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City $

14,852,687

$

14,852,687

$

15,406,039

$ 553,352
Investment income:

Interest income

186,778

186,778

1,388,782

1,202,004
Total revenues 15,039,465 15,039,465 16,794,821 1,755,356

EXPENDITURES:

Current:

Library 4,172,819 4,684,611 3,187,520 1,497,091
Parks and recreation 7,040,657 7,857,877 5,414,634 2,443,243 Capital outlay
Debt service:

Principal retirement
-

-
132,760

-
202,343

18,046
(69,583)

(18,046)
Interest expense and fiscal charges - - 1,955 (1,955) Total expenditures 11,213,476 12,675,248 8,824,498 3,850,750

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

3,825,989

2,364,217

7,970,323

(2,095,394)

OTHER FINANCING SOURCES (USES):

Transfers out (14,541,000) (14,541,000) (587,986) 13,953,014 Issuance of debt - - 55,827 55,827
Total other financing (sources) uses (14,541,000) (14,541,000) (532,159) 14,008,841

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (10,715,011)

$ (12,176,783)

7,438,164

$ 19,614,947

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (850,142)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

6,588,022

FUND BALANCE, BEGINNING OF YEAR 33,408,775
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 39,996,797

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 138

Measure W Public Safety Tax Special Revenue Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Sales - levied by City $

15,328,904

$

15,328,904

$

15,406,874

$ 77,970
Investment income:

Interest income

-

-

397,545

397,545
Total revenues 15,328,904 15,328,904 15,804,419 475,515

EXPENDITURES:

Current:

Public safety 15,407,904 15,444,251 15,275,879 168,372 Capital outlay
Debt service:

Principal retirement
100,000

-
290,116

-
308,491

9,986
(18,375)

(9,986)
Interest and fiscal charges - - 476 (476)
Total expenditures 15,507,904 15,734,367 15,594,832 139,535

OTHER FINANCING SOURCES:

Transfers in - - 118,182 118,182
Total other financing sources - - 118,182 118,182

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (179,000)

$ (405,463)

$ 327,769

$ 733,232

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (151,098)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

176,671

FUND BALANCE, BEGINNING OF YEAR 12,914,043
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 13,090,714

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 139

Special Assessment Special Revenue Fund
For the Year Ended June 30, 2024

Original
Budget
Final
Budget

Actual
Variance with
Final Budget
REVENUES:

Taxes:

Business license

$ 1,720,000

$ 1,720,000

$ 1,745,026

$ 25,026
Charges for services
Investment income:

Interest income
4,784,709

-
4,784,709

-
4,699,257

790,252
(85,452)

790,252
Miscellaneous - - 18,249 18,249
Total revenues 6,504,709 6,504,709 7,252,784 748,075

EXPENDITURES:

Current:

General government

1,720,000

1,720,000

1,594,806

125,194
Public works 3,745,100 6,655,403 3,675,508 2,979,895 Total expenditures 5,465,100 8,375,403 5,270,314 3,105,089

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

1,039,609

(1,870,694)

1,982,470

3,853,164

OTHER FINANCING SOURCES (USES):

Transfers in 7,566 7,565 - (7,565)
Transfers out (7,566) (8,267) - 8,267
Total other financing sources uses - (702) - 702

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ 1,039,609

$ (1,871,396)

$ 1,982,470

$ 3,853,866

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (595,112)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

1,387,358

FUND BALANCE, BEGINNING OF YEAR 19,739,339
FUND BALANCE (BUDGETARY BASIS), END OF YEAR (DEFICIT) $ 21,126,697

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 140

Development Services Special Revenue Fund
For the Year Ended June 30, 2024

Original
Budget
Final
Budget

Actual
Variance with
Final Budget
REVENUES:

Licenses and permits $ 9,235,548 $ 9,235,548 $ 9,661,484 $ 425,936 Charges for services 13,208,875 13,208,875 11,879,525 (1,329,350) Fines and forfeitures 105,094 105,094 232,093 126,999 Interest income (137,750) (137,750) 1,466,904 1,604,654 Refunds and reimbursements 1,500 1,500 3,100 1,600
Miscellaneous 40,750 40,750 69,309 28,559
Total revenues 22,454,017 22,454,017 23,312,415 858,398

EXPENDITURES:

Current:

General government

8,968,737

11,561,440

7,278,116

4,283,324
Public safety 7,614,588 9,958,298 9,155,448 802,850
Capital outlay
Debt service:

Principal retirement
24,666

-
24,666

-
1,912,461

355,945
(1,887,795)

(355,945)
Total expenditures 16,607,991 21,544,404 18,701,970 2,842,434

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

5,846,026

909,613

4,610,445

3,700,832

OTHER FINANCING SOURCES (USES):

Transfers in 800,000 800,000 800,000 -
Transfers out - (89,220) - 89,220
Issuance of debt - - 1,912,461 1,912,461
Total other financing sources (uses) 800,000 710,780 2,712,461 2,001,681

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ 6,646,026

$ 1,620,393

7,322,906

$ 5,702,513

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (2,696,226)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

4,626,680

FUND BALANCE, BEGINNING OF YEAR 38,991,564
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 43,618,244

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 141

Other Special Revenue Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget

REVENUES:

Licenses and permits $ 55,500 $ 55,500 $ 23,592 $ (31,908) Intergovernmental:

Federal grants and subsidies

3,000

3,000

14,386

11,386
Other governmental 1,430,000 3,486,298 4,301,010 814,712 Charges for services 100,304 100,304 91,190 (9,114)
Use of money and property 9,600 9,600 31,186 21,586
Interest income 4,258 4,258 183,419 179,161
Miscellaneous 413,733 455,739 516,847 61,108
Total revenues 2,016,395 4,114,699 5,161,630 1,046,931

EXPENDITURES:

Current:

General government

1,010,715

1,010,715

270,083

740,632
Public safety 2,401,742 4,190,011 3,338,621 851,390
Public works 357,814 535,262 510,822 24,440
Library - 50,000 69,532 (19,532)
Parks and recreation 20,000 20,000 - 20,000
Capital outlay 54,313 449,032 550,349 (101,317)
Total expenditures 3,844,584 6,255,020 4,739,407 1,515,613

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ (1,828,189)

$ (2,140,321)

422,223

$ 2,562,544

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (4,674,015)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

(4,251,792)

FUND BALANCE, BEGINNING OF YEAR (AS RESTATED) 6,266,754 FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 2,014,962

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 142

Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2024

Original Final
Budget Budget

Actual
Variance with
Final Budget
REVENUES:

Other governmental $ 610,737 $ 610,737 $ 493,476 $ (117,261) Total revenues

610,737 610,737 493,476 (117,261)

EXPENDITURES:

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

- 285,610 - 285,610

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

610,737 325,127

493,476

168,349

OTHER FINANCING USES:

Transfers out (610,737) (610,737) (263,776) 346,961
Total other financing uses

(610,737) (610,737) (263,776) 346,961

NET CHANGES IN FUND BALANCE

$ - $ (285,610)

229,700

$ 515,310

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* -

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

229,700

FUND BALANCE, BEGINNING OF YEAR 1,571,569
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 1,801,269

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 143

Public Facilities Impact Fees Capital Projects Fund
For the Year Ended June 30, 2024

REVENUES:

Charges for services
Use of money and property
Interest income
Total revenues

EXPENDITURES:

Current:

Original Final Variance with
Budget Budget Actual Final Budget

$ 6,827,310 $ 6,827,310 $ 6,123,737 $ (703,573)
- - 58,518 58,518
37,250 37,250 2,788,596 2,751,346
6,864,560 6,864,560 8,970,851 2,106,291

General government 351,721 817,950 613,762 204,188
Public works - 196,886 145,800 51,086
Capital outlay - 26,576,872 4,414,749 22,162,123
Total expenditures 351,721 27,591,708 5,174,311 22,417,397

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

6,512,839

(20,727,148)

3,796,540

(20,311,106)

OTHER FINANCING SOURCES (USES):

Transfers in 378,844 503,844 - (503,844)
Transfers out (1,178,844) (2,846,092) (860,667) 1,985,425 Total other financing (sources) uses (800,000) (2,342,248) (860,667) 1,481,581

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ 5,712,839

$ (23,069,396)

2,935,873

$ 26,005,269

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (7,026,291)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

(4,090,418)

FUND BALANCE, BEGINNING OF YEAR 65,919,466
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 61,829,048

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 144

Stockton Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2024

Original Final Variance with
Budget Budget Actual Final Budget

REVENUES:

Interest income $ - $ - $ (113,405) $ (113,405)
Miscellaneous 1,737,744 1,764,364 1,700,364 (64,000)
Total revenues 1,737,744 1,764,364 1,586,959 (177,405)

EXPENDITURES:

Current:

General government

265,100

301,251

203,428

97,823
Debt service:

Principal retirement 237,557 237,557 237,557 -
Interest and fiscal charges 9,214,594 10,287,594 10,287,594 - Total expenditures 9,717,251 10,826,402 10,728,579 97,823

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENDITURES (BUDGETARY BASIS)

(7,979,507)

(9,062,038)

(9,141,620)

(79,582)

OTHER FINANCING SOURCES:

Transfers in 7,988,425 9,061,425 9,061,425 -
Total other financing sources 7,988,425 9,061,425 9,061,425 -

NET CHANGE IN FUND BALANCE (GAAP BASIS)

$ 8,918

$ (613)

(80,195)

$ (79,582)

BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (99,842)

NET CHANGE IN FUND BALANCE (BUDGETARY BASIS)

(180,037)

FUND BALANCE, BEGINNING OF YEAR 2,069,849
FUND BALANCE (BUDGETARY BASIS), END OF YEAR $ 1,889,812

* Adjusted to Budgetary Basis.

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

This page intentionally left blank.

ATTACHMENT A

ATTACHMENT A
145

NONMAJOR ENTERPRISE FUNDS

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

The City’s nonmajor enterprise funds include:

Stormwater Utility Fund
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.

Parking Authority Fund
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.

Downtown Marina Fund
To account for resources and activities associated with the operations and maintenance of the Downtown Stockton Marina facilities.

Golf Course Fund
To account for resources and activities associated with the improvement, operation and maintenance of the Swenson golf course.

The fund was closed to the City's General Fund as of July 1, 2023.

ATTACHMENT A

ATTACHMENT A
146
City of Stockton

Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2024

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

Cash and investments $ 7,822,755 $ 3,298,481 $ 265,663 $ - Receivables, net:

Interest 37,300 32,663 541 -
Accounts and other receivables 167,390 - 52,449 -
Deposits and advances 45,482 128,984 - -
Prepaids items 556 - 25,150 -
Total current assets 8,073,483 3,460,128 343,803 -
Noncurrent assets:

Restricted assets:

Cash and investments with fiscal agents - 3,776,321 - - Loans receivable
Capital assets, net:

Nondepreciable
-

1,688,867
190,000

5,738,160
-

-
-

-
Depreciable and amortizable, net 42,517,384 19,558,974 19,687,010 - Total noncurrent assets 44,206,251 29,263,455 19,687,010 - Total assets 52,279,734 32,723,583 20,030,813 -

DEFERRED OUTFLOWS OF RESOURCES

Unamortized loss on refunding of debt
Pension-related deferred outflows
-
350,263
392,599
-
- -
- -
Total deferred outflows of resources 350,263 392,599

- -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2024
Totals
147

ASSETS
Current assets:

Cash and investments $ 11,386,899
Receivables, net:

Interest 70,504
Accounts and other receivables 219,839
Deposits and advances 174,466
Prepaids items 25,706
Total current assets 11,877,414
Noncurrent assets:

Restricted assets:

Cash and investments with fiscal agents 3,776,321
Loans receivable 190,000
Capital assets, net:

Nondepreciable

7,427,027
Depreciable and amortizable, net 81,763,368
Total noncurrent assets 93,156,716
Total assets 105,034,130

DEFERRED OUTFLOWS OF RESOURCES

Unamortized loss on refunding of debt 392,599
Pension-related deferred outflows 350,263
Total deferred outflows of resources 742,862

ATTACHMENT A

ATTACHMENT A
City of Stockton
148

Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2024

Current liabilities:

LIABILITIES
Stormwater Parking Downtown Golf
Utility Authority Marina Courses

Accounts payable 161,463 43,146 45,724 -
Accrued payroll 114,886 32,056 - -
Loans from other funds - current - 666,487 - -
Deposits and other liabilities 102,009 - 69,095 -
Retention payable 2,812 - - -
Accrued interest - 422,223 - -
Compensated absences - current 156,828 21,804 - -
Lease liabilities - due in one year - 183,596 - -
Bonds payable - current - 779,710 - -
Total current liabilities 537,998 2,149,022 114,819 -

Noncurrent liabilities:

Compensated absences - long-term 80,739 14,433 - -
Lease liabilities - due in more than one year - 2,127,717 - - Loans from other funds - long-term - 5,046,532 - -
Bonds payable - 27,178,716 10,870,821 -
Net pension liability 1,026,811 - - -
Total noncurrent liabilities 1,107,550 34,367,398 10,870,821 - Total liabilities 1,645,548 36,516,420 10,985,640 -

DEFERRED INFLOWS OF RESOURCES

Pension-related deferred inflows 9,841 - - -
Total deferred inflows of resources

NET POSITION
9,841

- - -
Net investment in capital assets 44,203,439 (4,580,006) 8,816,189 - Restricted for capital projects - 1,996,012 - -
Restricted for debt service - 1,780,309 - -
Unrestricted (deficit) 6,771,169 (2,596,553) 228,984 - Total net position $ 50,974,608 $ (3,400,238) $ 9,045,173 $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Net Position (Continued)
Nonmajor Enterprise Funds
June 30, 2024
Totals
149

LIABILITIES

Current liabilities:

Accounts payable 250,333
Accrued payroll 146,942
Loans from other funds - current 666,487
Deposits and other liabilities 171,104
Retention payable 2,812
Accrued interest 422,223
Compensated absences - current 178,632
Lease liabilities - due in one year 183,596
Bonds payable - current 779,710
Total current liabilities 2,801,839

Noncurrent liabilities:

Compensated absences - long-term 95,172
Lease liabilities - due in more than one year 2,127,717 Loans from other funds - long-term 5,046,532
Bonds payable 38,049,537
Net pension liability 1,026,811
Total noncurrent liabilities 46,345,769
Total liabilities 49,147,608

DEFERRED INFLOWS OF RESOURCES

Pension-related deferred inflows 9,841
Total deferred inflows of resources 9,841

NET POSITION

Net investment in capital assets 48,439,622
Restricted for capital projects 1,996,012
Restricted for debt service 1,780,309
Unrestricted (deficit) 4,403,600
Total net position $ 56,619,543

ATTACHMENT A

ATTACHMENT A
City of Stockton
150

Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
For the Year Ended June 30, 2024

Stormwater
Utility
Parking
Authority
Downtown
Marina
Golf
Courses
OPERATING REVENUES:

Charges for services $ 5,843,883 $ 5,432,560 $ 385,924 $ - Miscellaneous 149,509 2,778 43,386 -
Total operating revenues 5,993,392 5,435,338 429,310 -

OPERATING EXPENSES:

Operation and maintenance 4,252,569 2,908,649 684,865 - General and administrative 2,714,104 764,660 9,596 - Depreciation and amortization 1,821,557 993,835 547,407 - Total operating expenses 8,788,230 4,667,144 1,241,868 -

OPERATING INCOME (LOSS)

(2,794,838)

768,194

(812,558)

-

NONOPERATING REVENUES (EXPENSES):

Taxes - 1,574,103 - -
Grants and subsidies
Investment income:

Interest income
-

366,661
245,839

243,928
-

2,306
-

-
Interest expense and fiscal charges (37) (1,100,097) - - Total nonoperating revenues (expenses) 366,624 963,773 2,306 -

INCOME (LOSS) BEFORE CAPITAL

CONTRIBUTIONS AND TRANSFERS

(2,428,214)

1,731,967

(810,252)

-
CONTRIBUTIONS AND TRANSFERS:

Developer contributions
Contribution to governmental activities
Transfers in
4,000,581
-
-
-
-
-
-
-
262,000
-
(770,057)
-
Transfers out (51,122) - - (152,206)
Total contributions and transfers 3,949,459 - 262,000 (922,263)

CHANGES IN NET POSITION

1,521,245

1,731,967

(548,252)

(922,263)
NET POSITION (DEFICIT):

Beginning of year 49,453,363 (5,132,205) 9,593,425 922,263 End of year $ 50,974,608 $ (3,400,238) $ 9,045,173 $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
151

Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Nonmajor Enterprise Funds
For the Year Ended June 30, 2024

Totals
OPERATING REVENUES:

Charges for services $ 11,662,367
Miscellaneous 195,673
Total operating revenues 11,858,040

OPERATING EXPENSES:

Operation and maintenance 7,846,083
General and administrative 3,488,360
Depreciation and amortization 3,362,799
Total operating expenses 14,697,242

OPERATING INCOME (LOSS)

(2,839,202)

NONOPERATING REVENUES (EXPENSES):

Taxes 1,574,103
Grants and subsidies 245,839
Investment income:

Interest income

612,895
Interest expense and fiscal charges (1,100,134)
Total nonoperating revenues (expenses) 1,332,703

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (1,506,499)

CONTRIBUTIONS AND TRANSFERS:

Developer contributions 4,000,581
Contribution to governmental activities (770,057)
Transfers in 262,000
Transfers out (203,328)
Total contributions and transfers 3,289,196

CHANGES IN NET POSITION

1,782,697
NET POSITION (DEFICIT):

Beginning of year

54,836,846
End of year $ 56,619,543

ATTACHMENT A

ATTACHMENT A
City of Stockton
152

Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024

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

Receipts from customers and users $ 6,506,658 $ 5,432,560 $ 362,942 $ 4,629 Payments to suppliers and employees (7,035,630) (3,900,648) (674,831) (53,142) Miscellaneous receipts 149,509 2,778 43,386 -
Net cash provided by (used in) operating activities (379,463) 1,534,690 (268,503) (48,513)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (51,122) - 262,000 (152,206) Loans to and from other funds - (655,208) -
Receipt of cash subsidies and federal grants - - -
Proceeds from taxes - 1,819,942 -
Net cash provided by (used in) noncapital financing activities (51,122) 1,164,734 262,000 (152,206)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 43,192 - - -
Purchases of capital assets (4,516,904) (472,570) - - Capital contributions received
Proceeds from issuance of debt
Principal paid on debt
4,000,581
-
(3,954)
-
-
(921,459)
- -
- -
- -
Interest paid on debt (37) (1,114,833) - -
Net cash (used in) capital and related financing activities (477,122) (2,508,862)

- -

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 363,782 243,501 2,134 766
Net cash provided by investing activities 363,782 243,501 2,134 766

NET INCREASE (DECREASE) IN CASH AND CASH

(543,925)

434,063

(4,369)

(199,953)
CASH AND CASH EQUIVALENTS:

Beginning of year

8,366,680

6,640,739

270,032

199,953
End of year $ 7,822,755 $ 7,074,802 $ 265,663 $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
153

Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 12,306,789
Payments to suppliers and employees (11,664,251)
Miscellaneous receipts 195,673
Net cash provided by (used in) operating activities 838,211

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net 58,672
Loans to and from other funds (655,208)
Receipt of cash subsidies and federal grants -
Proceeds from taxes 1,819,942
Net cash provided by (used in) noncapital financing activities 1,223,406

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 43,192
Purchases of capital assets (4,989,474)
Capital contributions received 4,000,581
Proceeds from issuance of debt -
Principal paid on debt (925,413)
Interest paid on debt (1,114,870)
Net cash (used in) capital and related financing activities (2,985,984)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings

610,183
Net cash provided by investing activities 610,183

NET INCREASE (DECREASE) IN CASH AND CASH

(314,184)
CASH AND CASH EQUIVALENTS:

Beginning of year

15,477,404
End of year $ 15,163,220

ATTACHMENT A

ATTACHMENT A
City of Stockton
154

Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2023

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 $ 7,822,755 $ 3,298,481 $ 265,663 $ - Restricted assets:

Cash and investments with fiscal agents - 3,776,321 - - Total cash and investments $ 7,822,755 $ 7,074,802 $ 265,663 $ -

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

Operating income (loss) $ (2,794,838) $ 768,194 $ (812,558) $ - Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 1,821,557 993,835 547,407 - Changes in assets and liabilities:

Accounts receivables 662,775 - (22,982) 4,051
Prepaid items 51,558 - (17,088) 761
Lease receivable - - - 33,073
Lease related deferred inflows - - - (32,495)
Deposits and advances (45,482) (30,813) - -
Accounts payable (157,364) (222,239) 15,965 (49,673) Accrued payroll 13,323 2,307 - (2,205)
Accrued liabilities - - (25) -
Deposits and other liabilities (322) - 20,778 (2,025) Compensated absences 98,359 23,406 - -
Net pension liability (71,159) - - -
Pension-related deferred outflows 70,871 - - -
Pension-related deferred inflows (28,741) - - -
Net cash provided by (used in) operating activities $ (379,463) $ 1,534,690 $ (268,503) $ (48,513)

NONCASH TRANSACTIONS:

Amortization of loss on refunding $ - $ (392,599) $ - $ - Capital contributions received 4,000,581 - - -
Capital contributions provided - - - (770,057)
Total noncash capital and related financing activities $ 4,000,581 $ (392,599)

$ - $ (770,057)

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Cash Flows (Continued)
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
155

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Totals

Cash and investments $ 11,386,899
Restricted assets:

Cash and investments with fiscal agents

3,776,321
Total cash and investments $ 15,163,220

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

Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

$ (2,839,202)
Depreciation and amortization 3,362,799
Changes in assets and liabilities:

Accounts receivables 643,844
Prepaid items 35,231
Lease receivable 33,073
Lease related deferred inflows (32,495)
Deposits and advances (76,295)
Accounts payable (413,311)
Accrued payroll 13,425
Accrued liabilities (25)
Deposits and other liabilities 18,431
Compensated absences 121,765
Net pension liability (71,159)
Pension-related deferred outflows 70,871
Pension-related deferred inflows (28,741)
Net cash provided by (used in) operating activities $ 838,211

NONCASH TRANSACTIONS:

Amortization of loss on refunding $ (392,599)
Capital contributions received 4,000,581
Capital contributions provided (770,057)
Total noncash capital and related financing activities $ 2,837,925

ATTACHMENT A

ATTACHMENT A
156

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ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

ATTACHMENT A

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ATTACHMENT A

ATTACHMENT A
157

INTERNAL SERVICE FUNDS

Internal service funds are a type of proprietary fund used to report any activity that provides goods and services on a cost - reimbursement basis to other funds, departments, or agencies of the primary government and its component units, or to other governments.

The City’s internal service funds include:

General Liability Insurance Fund
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.

Workers’ Compensation Insurance Fund
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 departme nt payments into the fund. The fund also accounts for future estimated related liabilities to the City based on independent actu arial studies utilizing insurance industry standards of applicable data, factors and assumptions.

Employee Health Insurance Fund
To account for premiums and claims paid and the administration of health benefits insurance provided to qualified active and qualified retired City employees, with City departmental payments made to the Fund sought to reimburse health related expenses incurred by the Fund. The fund also accounts for future estimated related liabilities to the City based on independent actuar ial studies utilizing insurance industry standards of applicable data, factors and assumptions.

Retirement Benefits Fund
To account for the accumulation and payout of resources for the purpose of providing defined retirement and disability benefi ts, 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 d ata, factors and assumptions, of which were pre-funded by bond proceeds from the 2007 Taxable Pension Obligations Bonds, Series A and B.

Other Benefits and Insurance Fund
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.

Vehicle Fleet Equipment Fund
To account for the financing, operations, servicing and maintenance of fleet vehicles and major equipment utilized by City departments, of which the services are rendered on a cost reimbursement basis.

Computer and Radio Equipment Fund
To account for the financing, service and maintenance of all computer, radio equipment and related equipment provided to City departments on a cost reimbursement basis.

Other Equipment Fund
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.

ATTACHMENT A

ATTACHMENT A
158
City of Stockton

Combining Statement of Net Position
Internal Service Funds
June 30, 2024

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

Cash and investments $ 24,784,240 $ 52,137,602 $ 5,326,827 $ 30,895,008 $ 2,953,669 Receivables, net:

Interest 92,716 294,111 14,278 233,185 9,847
Accounts and other receivables 536,091 524,333 - 8,023 - Inventories - - - - -
Deposits and advances - 446 130,576 - -
Prepaid items - - 1,785,082 - -
Loans to other funds - short-term - 1,095,577 - - - Total current assets 25,413,047 54,052,069 7,256,763 31,136,216 2,963,516 Noncurrent assets:

Restricted assets:

Cash and investments - - - 80,238,463 -
Loans to other funds - long-term
Capital assets, net:

Nondepreciable
-

-
5,561,687

-
- -

- -
-

-
Depreciable and amortizable, net 172,992 128,143 - - - Total noncurrent assets 172,992 5,689,830

- 80,238,463 -
Total assets 25,586,039 59,741,899

7,256,763 111,374,679 2,963,516

LIABILITIES

Current liabilities:

Accounts payable

88,895

1,183

258,138

4,691,852

36,250
Accrued payroll 62,791 29,220 44,592 4,298 -
Deposits and other liabilities - 49,104 - - -
Accrued interest - - - - -
Compensated absences - due in one year 56,852 10,072 17,530 4,619 - Lease payable - due in one year - - - - -
Subscription liability - due in one year 67,016 48,460 - - - Claims payable, due in one year 5,300,199 7,599,000 - - - Loans from other funds- current - - - - -
Total current liabilities 5,575,753 7,737,039 320,260 4,700,769 36,250 Noncurrent liabilities:

Compensated absences - due in more than one year
Lease payable - due in more than one year
Subscription liability - due in more than one year
29,483
-
83,720
11,116
-
51,217
8,147
-
- -
- -
Claims payable, due in more than one year
Loans from other funds- due in more than one year
23,646,348
-
43,514,000
-
-
-
- -
- -
Total noncurrent liabilities 23,759,551 43,576,333 8,147

- -
Total liabilities 29,335,304 51,313,372 328,407

4,700,769 36,250

NET POSITION

Net investment in capital assets 22,256 28,466 - - - Restricted for pensions - - - 80,238,463 -
Unrestricted (3,771,521) 8,400,061 6,928,356 26,435,447 2,927,266 Total net position $ (3,749,265) $ 8,428,527 $ 6,928,356 $ 106,673,910 $ 2,927,266

ATTACHMENT A

ATTACHMENT A
City of Stockton
159

Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2024

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

Cash and investments $ 16,938,535 $ 46,448,716 $ 1,459,758 $ 180,944,355 Receivables, net:

Interest 99,034 223,632 7,005 973,808
Accounts and other receivables - - - 1,068,447
Inventories - 479,682 - 479,682
Deposits and advances 283,055 138,125 - 552,202
Prepaid items - 214,150 32,726 2,031,958
Loans to other funds - short-term - - - 1,095,577
Total current assets 17,320,624 47,504,305 1,499,489 187,146,029 Noncurrent assets:

Restricted assets:

Cash and investments - - - 80,238,463
Loans to other funds - long-term
Capital assets, net:
- - - 5,561,687
Nondepreciable 8,740,669 25,837,611 - 34,578,280
Depreciable and amortizable, net 23,371,701 12,170,750 99,060 35,942,646 Total noncurrent assets 32,112,370 38,008,361 99,060 156,321,076 Total assets 49,432,994 85,512,666 1,598,549 343,467,105

LIABILITIES

Current liabilities:

Accounts payable

209,598

907,105

22,535

6,215,556
Accrued payroll 140,284 298,665 9,411 589,261
Deposits and other liabilities - - - 49,104
Accrued interest 7,782 - 91 7,873
Compensated absences - due in one year 102,809 202,702 18,210 412,794 Lease payable - due in one year - 200,250 50,681 250,931 Subscription liability - due in one year 32,323 2,542,790 - 2,690,589 Claims payable, due in one year - - - 12,899,199
Loans from other funds- current 429,089 - - 429,089
Total current liabilities 921,885 4,151,512 100,928 23,544,396 Noncurrent liabilities:

Compensated absences - due in more than one year

41,693

151,166

11,236

252,841
Lease payable - due in more than one year - - 50,965 50,965 Subscription liability - due in more than one year - 3,629,194 - 3,764,131 Claims payable, due in more than one year - - - 67,160,348 Loans from other funds- due in more than one year 515,156 - - 515,156 Total noncurrent liabilities 556,849 3,780,360 62,201 71,743,441 Total liabilities 1,478,734 7,931,872 163,129 95,287,837

NET POSITION

Net investment in capital assets 32,080,047 31,636,127 (2,586) 63,764,310 Restricted for pensions - - - 80,238,463
Unrestricted 15,874,213 45,944,667 1,438,006 104,176,495 Total net position $ 47,954,260 $ 77,580,794 $ 1,435,420 $ 248,179,268

ATTACHMENT A

ATTACHMENT A
City of Stockton
160

Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2024

General
Liability
Insurance
Workers'
Compensation
Insurance
Employee
Health
Insurance

Retirement
Benefits
Other
Benefits and
Insurance
OPERATING REVENUES:

Charges for services

$ 15,570,276

$ 14,791,386

$ 25,843,431

$ 86,593,125

$ 3,372,580
Miscellaneous 212,796 92 - - -
Total operating revenues 15,783,072 14,791,478 25,843,431 86,593,125 3,372,580

OPERATING EXPENSES:

Operation and maintenance

17,596,708

7,435,678

22,884,708

79,467,577

1,841,657
General and administrative 2,018,123 4,110,556 1,236,138 3,585 622 Depreciation and amortization 43,976 20,668 - - -
Total operating expenses 19,658,807 11,566,902 24,120,846 79,471,162 1,842,279

OPERATING INCOME (LOSS)

(3,875,735)

3,224,576

1,722,585

7,121,963

1,530,301

NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income

889,377

1,852,766

179,849

9,181,487

76,480
Interest expense and fiscal charges (533) (366) - - - Other nonoperating revenues - - 17,509 - 2,025
Loss on disposal of lease asset - - - - -
Total nonoperating revenues (expenses) 888,844 1,852,400 197,358 9,181,487 78,505

INCOME (LOSS) BEFORE CAPITAL

CONTRIBUTIONS AND TRANSFERS (2,986,891) 5,076,976 1,919,943 16,303,450 1,608,806

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions -
Transfers in -
Transfers out -

-
-
-

-
-
-

-
-
-

-
-
-
Total capital contributions and transfers - - - - -

CHANGES IN NET POSITION (2,986,891)

5,076,976

1,919,943

16,303,450

1,608,806
NET POSITION:

Beginning of year (762,374)

3,351,551

5,008,413

90,370,460

1,318,460
End of year $ (3,749,265) $ 8,428,527 $ 6,928,356 $ 106,673,910 $ 2,927,266

ATTACHMENT A

ATTACHMENT A
City of Stockton
161

Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2024

Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
OPERATING REVENUES:

Charges for services $ 14,871,069 $ 17,858,266 $ 351,360 $ 179,251,493 Miscellaneous 95 - - 212,983
Total operating revenues 14,871,164 17,858,266 351,360 179,464,476

OPERATING EXPENSES:

Operation and maintenance 8,165,270 11,500,393 350,785 149,242,776 General and administrative 1,298,288 278,322 7,424 8,953,058 Depreciation and amortization 3,248,199 4,385,491 55,685 7,754,019 Total operating expenses 12,711,757 16,164,206 413,894 165,949,853

OPERATING INCOME (LOSS)

2,159,407

1,694,060

(62,534)

13,514,623

NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income 767,335 1,850,858 58,574 14,856,726 Interest expense and fiscal charges (23,371) (81,267) (770) (106,307) Other nonoperating revenues 302,227 - - 321,761
Loss on disposal of lease asset - (761,285) - (761,285) Total nonoperating revenues (expenses) 1,046,191 1,008,306 57,804 14,310,895

INCOME (LOSS) BEFORE CAPITAL

CONTRIBUTIONS AND TRANSFERS 3,205,598 2,702,366 (4,730) 27,825,518

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions

3,351,717

154,022

-

3,505,739
Transfers in 801,846 - - 801,846
Transfers out (1,300,000) (75,030) - (1,375,030) Total capital contributions and transfers 2,853,563 78,992 - 2,932,555

CHANGES IN NET POSITION

6,059,161

2,781,358

(4,730)

30,758,073
NET POSITION:

Beginning of year 41,895,099 74,799,436 1,440,150 217,421,195 End of year $ 47,954,260 $ 77,580,794 $ 1,435,420 $ 248,179,268

ATTACHMENT A

ATTACHMENT A
City of Stockton
162

Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024

General
Liability
Insurance
Workers'
Compensation
Insurance
Employee
Health
Insurance

Retirement
Benefits
Other
Benefits &
Insurance

CASH FLOWS FROM OPERATING
Receipts for interfund services provided $ 15,769,251 $ 18,145,126 $ 25,843,431 $ 86,585,102 $ 3,372,580 Payments to suppliers and employees (19,239,882) (11,584,246) (23,933,728) (80,325,604) (1,902,111) Claims and insurance paid 5,441,922 550,000 - - -
Net cash provided by (used in) operating
activities

1,971,291

7,110,880

1,909,703

6,259,498

1,470,469

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES:

Transfers in and out - - - - -
Loans to and from other funds
Other nonoperating revenues
- 1,095,576
- -
-
17,509
- -
- 2,025
Net cash provided by (used in) noncapital
financing activities

- 1,095,576

17,509

- 2,025

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchases of capital assets - - - - -
Principal paid on debt (66,232) (49,134) - - -
Interest paid on debt (533) (366) - - -
Net cash (used in) capital and related
financing activities (66,765)

(49,500)

-

-

-

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 879,322

1,800,029

175,762

9,028,833

75,260
Net cash provided by investing activities 879,322 1,800,029 175,762 9,028,833 75,260

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,783,848

9,956,985

2,102,974

15,288,331

1,547,754
CASH AND CASH EQUIVALENTS:

Beginning of year 22,000,392

42,180,617

3,223,853

95,845,140

1,405,915
End of year $ 24,784,240 $ 52,137,602 $ 5,326,827 $ 111,133,471 $ 2,953,669

RECONCILIATION OF CASH

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

Cash and investments
Restricted assets:

Cash with investments fiscal agents
Total cash and investments

NONCASH ITEMS:

Acquisition of subscription assets
Issuance of subscription liabilities
$ 24,784,240 $ 52,137,602 $ 5,326,827 $ 30,895,008 $ 2,953,669 - - - 80,238,463 -
$ 24,784,240 $ 52,137,602 $ 5,326,827 $ 111,133,471 $ 2,953,669

$ 216,968

$ 148,811

$ -

$ -

$ -
$ 216,968 $ 148,811 $ - $ - $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024
163

Vehicle Fleet
Equipment
Computer
and Radio
Equipment
Other
Equipment

Total
ACTIVITIES:

Receipts for interfund services provided

$ 14,989,757

$ 17,858,266

$ 351,360

$ 182,914,873
Payments to suppliers and employees (9,414,489) (9,793,741) (327,587) (156,521,388) Claims and insurance paid - - - 5,991,922
Net cash provided by (used in) operating
activities

5,575,268

8,064,525

23,773

32,385,407

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in and out (498,154) (75,030) - (573,184)
Loans to and from other funds (420,600) - - 674,976
Other nonoperating revenues 302,227 - - 321,761
Net cash provided by (used in) noncapital
financing activities

(616,527)

(75,030)

-

423,553

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchases of capital assets (8,400,339) (4,414,173) - (12,814,512) Principal paid on debt (76,380) (3,292,538) (50,397) (3,534,681) Interest paid on debt (26,824) (81,267) (770) (109,760) Net cash (used in) capital and related
financing activities

(8,503,543)

(7,787,978)

(51,167)

(16,458,953)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 744,361 1,812,258 57,357 14,573,182 Net cash provided by investing activities 744,361 1,812,258 57,357 14,573,182

NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS

(2,800,441)

2,013,775

29,963

30,923,189

CASH AND CASH EQUIVALENTS:

Beginning of year 19,738,976 44,434,941 1,429,795 230,259,629 End of year $ 16,938,535 $ 46,448,716 $ 1,459,758 $ 261,182,818

RECONCILIATION OF CASH

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

Cash and investments
Restricted assets:

Cash with investments fiscal agents
Total cash and investments

NONCASH ITEMS:

Acquisition of subscription assets
Issuance of subscription liabilities
$ 16,938,535 $ 46,448,716 $ 1,459,758 $ 180,944,355 - - - 80,238,463
$ 16,938,535 $ 46,448,716 $ 1,459,758 $ 261,182,818

$ -

$ 4,275,868

$ -

$ 4,641,647
$ - $ 4,275,868 $ - $ 4,641,647

ATTACHMENT A

ATTACHMENT A
City of Stockton
164

Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024

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) $ (3,875,735) $ 3,224,576 $ 1,722,585 $ 7,121,963 $ 1,530,301 Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization 43,976 20,668 - - -
Changes in assets and liabilities:

Accounts and other receivables (13,821) 3,373,416 - (8,023) - Due from other funds (19,768)
Prepaid items 241,984 446 (31,121) - -
Inventory of supplies - - - - -
Deposits and advances - (446) 1,253 - -
Accounts payable 88,753 (61,252) 192,106 (859,177) (59,832) Accrued payroll (2,479) 2,995 11,597 116 -
Compensated absences 46,691 20,245 13,283 4,619 -
Self-insurance - claims and judgments 5,441,922 550,000 - - - Net cash provided by (used in) operating
activities

$ 1,971,291

$ 7,110,880

$ 1,909,703

$ 6,259,498

$ 1,470,469
NONCASH TRANSACTIONS:

Capital contributions $ - $ - $ - $ - $ -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2024
165

Vehicle Fleet Computer Other
Equipment Equipment Equipment Total

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

Operating income (loss) $ 2,159,407 $ 1,694,060 $ (62,534) $ 13,514,623 Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization 3,248,199 4,385,491 55,685 7,754,019 Changes in assets and liabilities:

Accounts and other receivables 118,593 - - 3,470,165 Due from other funds - - - (19,768)
Prepaid items 283,055 1,586,589 12,272 2,093,225
Inventory of supplies - (417,121) - (417,121)
Deposits and advances (283,055) - - (282,248)
Accounts payable (13,357) 676,433 (216) (36,542)
Accrued payroll 23,753 75,966 1,389 113,337
Compensated absences 38,673 63,107 17,177 203,795
Self-insurance - claims and judgments - - - 5,991,922 Net cash provided by (used in) operating
activities

$

5,575,268

$

8,064,525

$

23,773

$

32,385,407

NONCASH TRANSACTIONS:

Capital contributions $ 3,351,717 $ 154,022 $ - $ 3,505,739

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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.

The City’s custodial funds include:

Land-Secured Financing Agency Fund
To account for special taxes or assessment collections from property owners that are authorized under various public improvement acts of the State of California. The City acts only as an agent and forwards collections to bondholders and initiated foreclosure proceedings when necessary.

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.

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City of Stockton
169

Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024

A

Liabilities:

Accounts payable - 77,753 77,753
Due to other governments 31,699 1,204,097 1,235,796
Total liabilities 31,699 1,281,850 1,313,549

Net Position:

Restricted for individual, organization,
and other government 20,480,766 16,707,984 37,188,750 Total net position $ 20,480,766 $ 16,707,984 $ 37,188,750

Land-Secured
Financing

All Other

Total
ssets:

Cash and investments $ 9,752,688 $ 16,436,779 $ 26,189,467 Cash and investments with fiscal agents
Receivables:

Interest
10,691,565

68,212
-

80,978
10,691,565

149,190
Accounts and other receivables - 1,472,077 1,472,077
Total assets 20,512,465 17,989,834 38,502,299

ATTACHMENT A

ATTACHMENT A
170

City of Stockton
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024

Land-Secured
Financing All Other Total
ADDITIONS:

Property taxes $ 9,562,617 $ - $ 9,562,617
Use of money and property 148,212 - 148,212
Investment income 535,101 596,359 1,131,460
Miscellaneous income 3,417,238 36,224 3,453,462
Debt issued 14,046,693 - 14,046,693
Total additions 27,709,861 632,583 28,342,444

DEDUCTIONS:

General government 12,055,739 638 12,056,377
Public works 6,811,651 363,860 7,175,511
Debt obligations 8,702,636 - 8,702,636
Total deductions 27,570,026 364,498 27,934,524

CHANGE IN NET POSITION

139,835

268,085

407,920
NET POSITION:

Beginning of year 20,340,931 16,439,899 36,780,830
End of year $ 20,480,766 $ 16,707,984 $ 37,188,750

ATTACHMENT A

ATTACHMENT A
City of Stockton
171

Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2024

Re

Uses/Expenditures
Police
Salary & benefits
Sworn 28,034,533 22,965,412 5,069,121
Non-Sworn 3,826,458 3,478,123 348,335
Vacancy savings (2,149,267) - (2,149,267)
Recruitment, Retention, and Wellness - 3,988,998 (3,988,998) Other services 5,172,993 4,678,504 494,489
Materials & supplies
Fuel 386,396 421,178 (34,782)
Other supplies 1,712,910 822,536 890,374
Equipment
Radios 29,534 29,533 1
Technology Upgrades 45,378 45,378 -
Other expenses
Training 616,244 767,125 (150,881)
Total police 37,675,179 37,196,787 478,392

Office of Violence Prevention
Salary & benefits
Non-sworn

972,327

973,097

(770)
Other services
Materials & supplies
Fuel
321,367

30,077
320,576

13,026
791

17,051
Other supplies 45,304 44,514 790
Office equipment 3,379 3,361 18
Other expenses 20,000 20,489 (489)
Total Office of Violence Prevention 1,392,454 1,375,063 17,391

Basis Adjustment
Encumbrances (included in final budget)

-

-

-
Total Measure B Expenditures 39,067,633 38,571,850 495,783 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues

84%

83%

Other City Services

General Fund available fund balance 7,271,254 7,642,706 (371,452)

Basis adjustment
Encumbrances (included in final budget) - - -
Total adjustment 7,271,254 7,642,706 (371,452)
Total Uses/Expenditures $ 46,338,887 $ 46,214,556 $ 124,331 Final
Budget
Year End
Actual
Variance with
Final Budget
venues
Measure A Transaction and Use Tax $ 46,338,887 $ 46,214,556 $ (124,331) Total revenues 46,338,887 46,214,556 (124,331)

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STATISTICAL SECTION OVERVIEW

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.

Financial Trends (pages 174-187)
These schedules contain trend information to help the reader understand how the City’s financial performance and well- being have changed over time.

Revenue Capacity (pages 188-195)
These schedules contain information to help the reader assess the City’s most significant local revenue sources, transient occupancy tax (“TOT”) and property taxes.

Debt Capacity (pages 196-204)
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 205-206)
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 207-213)
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.

ATTACHMENT A

ATTACHMENT A
174
City of Stockton
Table 1

Net Position by Classification
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
Governmental activities:

Net investment in capital assets

$ 885,458

$ 817,086

$ 764,271

$ 732,219

$ 724,164
Restricted 518,951 495,695 524,467 457,693 239,339
Unrestricted (deficit) (107,924) (131,625) (171,572) (262,907) (119,715) Total governmental activities net position 1,296,485 1,181,156 1,117,167 927,005 843,787

Business-type activities:

Net investment in capital assets

488,472

473,568

438,675

365,873

301,434
Restricted 26,030 25,367 25,394 46,241 125,668
Unrestricted 239,428 201,609 200,819 224,551 177,840
Total business-type activities net position 753,930 700,544 664,888 636,665 604,942

Primary government:

Net investment in capital assets

1,373,929

1,290,654

1,202,947

1,098,093

1,025,598
Restricted 544,981 521,062 549,800 503,934 365,007
Unrestricted 131,504 69,984 29,308 (38,356) 58,125
Total primary government net position $ 2,050,414 $ 1,881,700 $ 1,782,055 $ 1,563,670 $ 1,448,729

Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 1
175

Net Position by Classification (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
Governmental activities:

Net investment in capital assets

$ 346,021

$ 328,284

$ 330,655

$ 287,078

$ 326,823
Restricted 204,114 170,507 148,493 153,087 130,763
Unrestricted (deficit) 260,748 238,421 229,584 196,005 160,224 Total governmental activities net position 810,883 737,211 708,732 636,170 617,810

Business-type activities:

Net investment in capital assets

381,015

367,317

362,886

369,983

379,853
Restricted 28,411 46,805 50,904 54,618 56,521
Unrestricted 155,217 133,656 82,938 44,792 28,751
Total business-type activities net position 564,643 547,778 496,728 469,393 465,125

Primary government:

Net investment in capital assets

727,036

695,601

693,540

657,061

706,676
Restricted 232,525 217,311 199,397 207,705 187,284
Unrestricted 415,965 372,077 312,522 240,797 188,975
Total primary government net position $ 1,375,526 $ 1,284,989 $ 1,205,460 $ 1,105,563 $ 1,082,935

Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
176
City of Stockton
Table 2

Changes in Net Position
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
Expenses
Governmental activities:

General government $ 73,368 $ 54,871 $ 72,135 $ 74,314 $ 37,269 Public safety 262,821 227,637 170,406 217,953 217,941
Public works 44,445 50,048 41,373 55,086 44,922
Library 17,205 16,275 13,086 12,792 14,657
Parks and recreation 24,176 21,141 14,289 11,526 27,798 Interest and fiscal charges 10,377 9,968 7,894 4,373 5,298 Total governmental activities 432,393 379,942 319,183 376,045 347,885 Business-type activities:

Water utility 51,108 50,185 54,532 54,266 47,974
Wastewater utility 73,557 68,976 66,991 61,124 63,983
Stormwater utility 8,788 7,914 7,288 6,759 6,599
Parking Authority 5,767 6,153 5,687 4,995 5,795
Other 2,012 1,395 1,375 1,667 2,499
Total business-type activities 141,233 134,622 135,873 128,811 126,850 Total expenses 573,625 514,564 455,056 504,856 474,736

Program Revenues

Governmental activities:

Charges for services:

General government

31,550

26,165

31,123

12,560

9,250
Public safety 19,055 20,469 18,688 13,235 11,220
Public works 14,220 11,886 14,291 32,456 3,143
Library 7,863 8,294 7,537 7,037 278
Parks and recreation 1,196 1,191 852 406 4,010
Operating grants and contributions 56,324 42,072 100,879 51,329 21,509 Capital grants and contributions 41,539 26,667 53,140 39,065 30,227 Total governmental activities 171,748 136,745 226,510 156,087 79,637 Business-type activities:

Charges for services:

Water utility

63,579

60,822

66,013

64,097

57,519
Wastewater utility 87,107 84,393 78,509 73,885 71,210
Stormwater utility 5,993 6,159 6,137 6,040 6,417
Parking Authority 5,435 4,657 5,690 4,589 4,749
Other 429 410 428 355 1,038
Operating grants and contributions 4,182 1,653 2,500 - 7,314 Capital grants and contributions 19,634 12,363 12,231 13,263 7,258 Total business-type activities 186,360 170,458 171,508 162,229 155,504 Total program revenues 358,107 307,203 398,018 318,316 235,141

Change in Net Position

Governmental activities (260,645) (243,197) (92,673) (219,957) (268,248) Business-type activities 45,127 35,836 35,635 33,417 28,654 Total primary government $ (215,518) $ (207,361) $ (57,038) $ (186,540) $ (239,594)

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
2022 2024 2023 2021 2020
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:
177

Property $ 45,404 $ 42,578 $ 41,066 $ 38,523 $ 36,692
In lieu of sales tax - - - - -
Utility user 42,799 42,445 38,328 36,414 34,537
Sales - levied by City (1) 77,027 82,833 75,037 68,639 57,077 Franchise fees 23,476 22,784 21,186 16,901 15,292
Business licenses 20,430 23,748 15,905 15,695 14,557
Hotel/motel room 3,520 3,433 3,620 2,860 2,834
Document transfer 992 1,028 1,626 1,222 912
Other 6,215 4,628 4,016 2,874 3,262
Shared revenue:

Vehicle license fees 31,590 29,343 27,310 27,757 31,839 Sales and use tax levied by state (1) 78,924 76,954 76,239 65,201 56,122 Other - - - - 18,303
Investment earnings 35,847 1,707 (25,552) 14,086 21,759 Gain (Loss) on sale of capital assets - 44 (8,356) 147 12 Miscellaneous 9,031 9,715 10,369 11,105 9,469
Special item - - - - (547)
Proceeds of long-term debt - - - - -
Extraordinary items - - - - -
Transfers from Successor Agency, Net - - - - -
Transfers 718 415 438 1,751 (922)
Total governmental activities 375,973 341,656 281,232 303,175 301,198 Business-type activities:

Other taxes - - - - 1,407
Grants and contributions not restricted to - - - - -
Investment earnings 8,977 235 (7,018) 57 9,318
Gain on sale of capital assets - - - - (2)
Miscellaneous - - - - -
Special item - - - - -
Transfers (718) (415) (438) - 922
Extraordinary items (2) - - - (1,751) -
Total business-type activities 8,259 (181) (7,456) (1,694) 11,645 Total general revenues and other
changes in net position 384,232 341,475 273,775 301,481 312,843 Change in Net Position

Governmental activities 115,328 98,459 188,559 83,218 32,950 Business-type activities 53,386 35,655 28,178 31,723 40,299 Total primary government $ 168,714 $ 134,115 $ 216,737 $ 114,941 $ 73,249

(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.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 2
178

Changes in Net Position (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
Expenses
Governmental activities:

General government $ 37,821 $ 37,259 $ 33,378 $ 39,608 $ 35,576 Public safety 199,263 212,181 154,932 169,015 123,403
Public works 37,168 38,435 45,670 36,344 37,685
Library 13,501 12,301 10,904 10,406 9,098
Parks and recreation 27,288 23,753 22,481 21,620 20,801 Interest and fiscal charges 5,914 5,964 4,288 2,216 3,401 Total governmental activities 320,954 329,894 271,653 279,209 229,964 Business-type activities:

Water utility 46,641 39,526 42,886 48,001 47,474
Wastewater utility 58,093 41,648 50,545 58,665 56,153
Stormwater utility 7,419 4,729 5,288 6,601 7,084
Parking Authority 5,501 5,310 5,641 5,384 5,026
Other 3,613 3,299 3,235 3,116 3,374
Total business-type activities 121,267 94,512 107,595 121,767 119,111 Total expenses 442,221 424,406 379,248 400,976 349,075

Program Revenues

Governmental activities:

Charges for services:

General government

13,977

16,451

19,184

15,831

15,169
Public safety 16,925 15,309 9,188 13,663 16,863
Public works 10,367 14,914 3,373 8,292 6,105
Library 470 595 377 517 441
Parks and recreation 11,320 12,194 8,765 9,158 6,145
Operating grants and contributions 13,446 12,402 12,565 12,861 18,823 Capital grants and contributions 45,632 21,426 17,591 16,286 34,268 Total governmental activities 112,137 93,292 71,043 76,608 97,814 Business-type activities:

Charges for services:

Water utility

49,489

50,590

42,308

33,277

35,059
Wastewater utility 67,432 68,191 66,833 68,938 65,726
Stormwater utility 6,407 5,683 5,619 5,573 5,569
Parking Authority 4,592 4,447 5,141 4,971 4,170
Other 1,755 1,776 1,675 1,750 1,769
Operating grants and contributions 3,643 3,855 3,889 3,776 5,133 Capital grants and contributions 4,626 6,245 2,971 3,562 2,945 Total business-type activities 137,944 140,787 128,436 121,847 120,371 Total program revenues 250,081 234,078 199,479 198,455 218,185

Change in Net Position

Governmental activities (208,817) (236,603) (200,610) (202,601) (132,150) Business-type activities 16,677 46,275 20,841 80 1,260
Total primary government $ (192,140) $ (190,328) $ (179,769) $ (202,521) $ (130,890)

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
2017 2019 2018 2016 2015
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:
179

Property $ 35,739 $ 33,112 $ 32,411 $ 30,646 $ 29,573
In lieu of sales tax - - - 8,775 9,816
Utility user 34,252 35,415 34,455 33,379 32,921
Sales - levied by City (1) 57,911 52,788 42,506 39,070 37,208 Franchise fees 12,307 13,243 13,289 12,397 12,379
Business licenses 19,958 13,507 12,243 11,996 10,805
Hotel/motel room 3,377 3,193 2,997 2,711 2,378
Document transfer 1,071 1,078 801 857 587
Other 2,905 2,916 1,939 1,801 930
Shared revenue:

Vehicle license fees 23,599 29,091 21,423 20,354 19,602 Sales and use tax levied by state (1) 57,151 68,467 49,910 45,097 36,904 Other - 165 44 45 49
Investment earnings 18,438 899 1,966 4,728 1,532
Gain on sale of capital assets (1,602) (203) 578 568 (13,214) Miscellaneous 7,810 4,083 2,820 7,303 16,982
Special item 500 6,203 - - -
Proceeds of long-term debt - - 10,237 - 23,396
Extraordinary items - - - - 250,701
Transfers from Successor Agency, Net - 734 - - -
Transfers 9,074 389 654 (297) 383
Total governmental activities 282,489 265,082 228,273 219,430 472,932 Business-type activities:

Other taxes 1,341 1,271 1,292 1,239 974
Grants and contributions not restricted to - 100 - - -
Investment earnings 7,920 233 131 2,653 1,172
Gain on sale of capital assets - 20 (1,156) - (3,300)
Miscellaneous - - - - -
Special item - 3,540 - - -
Transfers (9,074) (389) (654) 297 (383)
Extraordinary items (2) - - - - 9,548
Total business-type activities 188 4,774 (387) 4,189 8,011 Total general revenues and other
changes in net position 282,676 269,857 227,886 223,619 480,943 Change in Net Position

Governmental activities 73,671 28,479 27,662 16,829 340,782 Business-type activities 16,865 51,049 20,454 4,271 9,271 Total primary government $ 90,536 $ 79,529 $ 48,116 $ 21,100 $ 350,053

(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.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 3
180

Fund Balance, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
General Fund
Nonspendable $ 2,662 $ 2,397 $ 2,077 $ 2,215 $ 5,796
Restricted 6,508 5,218 5,289 4,428 3,998
Committed 148,295 150,811 123,754 77,638 59,714
Assigned 31,322 5,447 4,285 4,526 4,017
Unassigned 51,313 48,490 43,208 42,049 41,085
Total General Fund 240,100 212,364 178,613 130,857 114,611

All other governmental funds

Nonspendable 2,407 1,771 151 152,462 356
Restricted 425,172 398,166 428,305 222,308 189,758
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) (578) (1,344) - - -
Total all other governmental funds 427,001 398,593 428,455 374,770 190,114

Total Fund Balance

$ 667,101

$ 610,957

$ 607,068

$ 505,627

$ 304,725

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 3
181

Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
General Fund
Nonspendable $ 3,621 $ 1,303 $ 1,539 $ 2,214 $ 810
Restricted 4,034 4,730 4,603 3,549 2,949
Committed 54,243 45,957 56,439 49,088 28,930
Assigned 4,144 2,227 3,922 5,467 -
Unassigned 37,990 36,265 36,184 33,326 38,639
Total General Fund 104,032 90,482 102,687 93,644 71,328

All other governmental funds

Nonspendable 356 370 - 373 382
Restricted 169,507 117,387 114,254 122,084 104,785
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - 3,232 - -
Total all other governmental funds 169,863 117,757 117,486 122,457 105,167

Total Fund Balance

$ 273,895

$ 208,239 $

220,173

$ 216,101

$ 176,495

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 4
182

Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
Revenues:

Taxes:

Property $ 45,400 $ 42,578 $ 41,066 $ 38,523 $ 36,692
In lieu of sales tax - - - - -
Utility user 42,799 42,445 38,328 36,414 34,537
Sales (levied by City) (1) 84,567 90,305 82,951 68,639 57,077 Franchise fees 23,356 22,547 19,932 16,901 15,292
Business license 20,421 23,748 15,906 15,695 14,557
Hotel/motel room 3,520 3,433 3,620 2,860 2,834
Document transfer 992 1,028 1,626 1,222 912
Other 6,215 4,628 4,016 2,874 3,262
Licenses and permits 10,060 7,762 9,129 7,670 6,847
Federal grants and subsidies 33,524 34,803 84,812 30,339 15,578 Other shared revenue (sales and use tax levied by state) (1) 78,917 76,954 76,239 65,201 56,122 Other governmental 101,731 76,933 85,662 99,161 59,367
Charges for services 33,961 35,677 39,532 31,330 26,904 Fines and forfeitures 1,166 317 2,001 379 1,101
Use of money and property 16,489 11,704 9,955 5,731 10,569 Investment income:

Interest income 20,963 (248) (13,673) 7,785 14,075
Refunds and reimbursements 525 1,029 550 602 6,633
Miscellaneous 9,221 8,951 8,258 10,189 8,981
Total revenues 533,829 484,596 509,910 441,514 371,340

Expenditures:

Current:

General government 69,845 53,152 76,830 72,185 30,148
Public safety 251,434 227,859 206,107 205,923 193,778
Public works 37,436 35,659 34,263 41,960 20,120
Library 16,578 15,643 14,659 12,762 14,400
Parks and recreation 20,971 17,601 14,552 8,207 25,920
Capital outlay 71,362 65,959 53,034 26,127 31,225
Debt service:

Principal retirement 3,963 3,519 1,943 1,806 1,699
Cost of issuance - - - - -
Interest and fiscal charges 10,312 9,807 7,397 4,617 5,229 Total expenditures 481,901 429,199 408,785 373,587 322,521 Excess (deficiency) of revenues
over (under) expenditures $ 51,928 $ 55,397 $ 101,125 $ 67,926 $ 48,819

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
183

(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
Other financing sources (uses):

Capital contributions $ - $ - $ - $ - $ -
Transfers in 40,093 42,616 27,618 19,903 18,062
Transfers out (38,802) (57,610) (27,480) (41,452) (36,445) Transfers from successor Agency - - - - -
Special item - - - - -
Bond insurers proceeds - - 163 - -
Operating transfers out to a component unit - - - - -
Issuance of long-term debt 2,922 1,344 - - -
Proceeds of current refunding bonds - - - - -
Sales of capital assets 4 44 17 2,419 393
Advances from other funds - - - - -
Payment to refunded bond escrow agent - - - - -
Total other financing sources (uses) 4,216 (13,606) 317 (19,131) (17,990)

Special items

-

-

-

-

-
Net change in fund balance 56,144 41,791 101,442 48,796 30,830 Fund balance, beginning of year, original 610,957 607,069 505,627 456,831 273,895 Prior period restatement - (37,903) - - -
Fund balance, beginning of year, restated 610,957 569,166 505,627 456,831 273,895 Fund balance, end of year $ 667,101 $ 610,957 $ 607,069 $ 505,627 $ 304,725 Debt service as a percentage of noncapital expenditures

3.6%

3.8%

2.7%

1.9%

2.4%

(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.

Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatement.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 4
184

Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
Revenues:

Taxes:

Property $ 35,342 $ 33,068 $ 32,411 $ 30,646 $ 29,573
In lieu of sales tax - 44 - 8,775 9,816
Utility user 34,252 35,415 34,455 33,379 32,921
Sales (levied by City) (1) 57,911 52,788 42,506 39,070 37,208 Franchise fees 12,307 13,243 13,289 12,397 12,380
Business license 13,215 13,507 12,243 11,996 10,805
Hotel/motel room 3,377 3,193 2,997 2,711 2,378
Document transfer 1,071 1,126 801 856 587
Other 2,905 2,916 1,939 1,535 930
Licenses and permits 6,744 6,214 5,867 5,347 4,398
Federal grants and subsidies 16,517 13,235 12,859 10,470 21,796 Other shared revenue (sales and use tax levied by state) (1) 51,577 53,817 49,910 45,097 36,904 Other governmental 66,594 57,778 37,574 36,696 41,806
Charges for services 27,227 29,377 22,920 26,473 21,351 Fines and forfeitures 1,277 1,247 1,164 624 3,814
Use of money and property 12,460 9,528 8,197 8,172 9,318 Investment income:

Interest income 11,758 1,063 1,762 3,088 916
Refunds and reimbursements 6,614 7,887 6,077 5,188 12,710 Miscellaneous 8649 8,596 6,745 11,246 16,674
Total revenues 369,795 344,044 293,716 293,766 306,285

Expenditures:

Current:

General government 30,537 26,761 29,235 27,229 34,652
Public safety 189,824 184,426 171,073 150,853 141,542
Public works 19,793 18,852 15,818 14,861 14,152
Library 13,789 12,416 10,619 10,107 9,880
Parks and recreation 26,006 22,462 20,493 19,295 19,094 Capital outlay 35,158 51,210 31,407 23,857 31,345
Debt service:

Principal retirement 11,477 2,204 13,593 3,325 8,217
Cost of issuance - - - 2,119 -
Interest and fiscal charges 5,627 5,767 2,872 - 3,229
Total expenditures 332,211 324,098 295,110 251,646 262,111 Excess (deficiency) of revenues
over (under) expenditures $ 37,584 $ 19,946 $ (1,394) $ 42,120 $ 44,174

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
185

(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
Other financing sources (uses):

Capital contributions $ - $ - $ - $ - $ -
Transfers in 31,310 19,077 23,347 15,916 16,860
Transfers out (29,479) (37,913) (12,966) (18,810) (20,235) Transfers from successor Agency - 734 - - -
Special item - 6,203 - - -
Bond insurers proceeds - - - - 29,178
Operating transfers out to a component unit - - - - -
Issuance of long-term debt - - - - -
Proceeds of current refunding bonds - - - - -
Sales of capital assets 52 800 492 379 521
Advances from other funds - - - - -
Payment to refunded bond escrow agent - - - - (6,080)
Total other financing sources (uses) 1,884 (11,099) 10,873 (2,515) 20,244

Special items

-

-

-

-

-
Net change in fund balance 39,468 8,847 9,479 39,605 64,417 Fund balance, beginning of year, original 234,427 225,581 216,100 176,495 112,078 Prior period restatement - - - - -
Fund balance, beginning of year, restated 234,427 225,581 216,100 176,495 112,078 Fund balance, end of year $ 273,895 $ 234,427 $ 225,579 $ 216,100 $ 176,495 Debt service as a percentage of noncapital expenditures

6.1%

3.0%

6.7%

2.4%

5.2%

(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.

Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatement.

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 5
186

Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year

2024

2023

2022

2021

2020
Property $ 45,400 $ 42,578 $ 41,066 $ 38,523 $ 36,692
In lieu of sales tax - - - - -
Utility user 42,799 42,445 38,328 36,414 34,537
Sales (levied by city) (1) 84,567 90,305 82,951 68,639 57,077 Franchise fees 23,356 22,547 19,932 16,901 15,292
Business licenses 20,421 23,748 15,905 15,695 14,557
Hotel/motel room 3,520 3,433 3,620 2,860 2,834
Document transfer 992 1,028 1,626 1,222 912
Other 6,215 4,628 4,016 2,874 3,262
Totals $ 227,271 $ 230,713 $ 207,444 $ 183,127 $ 165,163

(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.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 5
187

Tax Revenues by Source, Governmental Funds (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year

2019

2018

2017

2016

2015
% Change
2015
to 2024
Property $ 35,342 $ 33,068 $ 32,411 $ 30,646 $ 29,573 54% In lieu of sales tax - 44 - 8,775 9,816 -100%
Utility user 34,252 35,415 34,455 33,379 32,921 30%
Sales (levied by city) (1) 57,911 52,788 42,506 39,070 37,208 127% Franchise fees 12,307 13,243 13,289 12,397 12,380 89%
Business licenses 13,215 13,507 12,243 11,995 10,805 89% Hotel/motel room 3,377 3,193 2,997 2,711 2,378 48%
Document transfer 1,071 1,126 801 856 587 69%
Other 2,905 2,916 1,939 1,535 930 568%
Totals $ 160,379 $ 155,301 $ 140,642 $ 141,364 $ 136,598 66%

(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.

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 6
188

Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020
Secured roll $ 29,987,515 $ 28,140,015 $ 26,379,229 $ 24,952,342 $ 23,628,432 Utility roll 6,337 6,402 6,496 6,507 5,827
Unsecured roll 2,203,973 1,824,858 1,563,966 1,507,064 1,439,016 Gross assessed value 32,197,825 29,971,275 27,949,691 26,465,914 25,073,275 Less exemptions (1) 2,130,009 2,062,260 2,020,034 1,980,526 1,948,125 Net assessed value 30,067,817 27,909,014 25,929,657 24,485,388 23,125,150

Land

8,087,931

7,695,368

7,164,141

6,823,616

6,506,827
Improvements 22,620,400 21,012,393 19,716,382 18,716,229 17,635,057 Personal property 1,489,494 1,263,513 1,069,169 926,070 931,391 Gross assessed value 32,197,825 29,971,275 27,949,691 26,465,914 25,073,275 Less exemptions (1) 2,130,009 2,062,260 2,020,034 1,980,526 1,948,125 Net assessed value $ 30,067,817 $ 27,909,014 $ 25,929,657 $ 24,485,388 $ 23,125,150

Total Direct Tax Rate

1.00%

1.00%

1.00%

1.00%

1.00%

(1) For FY 2024, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $213,171 and other - $1,916,837 = $2,130,008.

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 f actor" (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.

Source: San Joaquin County Auditor-Controller's Office

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 6
189

Assessed Value and Estimated Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015
Secured roll $ 22,488,506 $ 21,378,475 $ 20,299,172 $ 19,473,994 $ 18,496,369 Utility roll 5,816 5,863 5,833 6,199 6,209
Unsecured roll 1,610,921 1,629,758 1,596,101 1,651,844 1,638,161 Gross assessed value 24,105,243 23,014,096 21,901,106 21,132,037 20,140,739 Less exemptions (1) 1,917,101 1,532,852 1,786,986 1,729,742 1,717,223 Net assessed value 22,188,142 21,481,244 20,114,120 19,402,295 18,423,516

Land

6,280,943

6,081,944

5,713,082

5,420,167

4,978,511
Improvements 16,582,837 15,666,837 15,004,037 14,501,054 13,928,278 Personal property 1,241,463 1,265,315 1,183,987 1,210,816 1,233,950 Gross assessed value 24,105,243 23,014,096 21,901,106 21,132,037 20,140,739 Less exemptions (1) 1,917,101 1,532,852 1,786,986 1,729,742 1,717,223 Net assessed value $ 22,188,142 $ 21,481,244 $ 20,114,120 $ 19,402,295 $ 18,423,516

Total Direct Tax Rate

1.00%

1.00%

1.00%

1.00%

1.00%

(1) For FY 2024, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $213,171 and other - $1,916,837 = $2,130,008.

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 f actor" (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.

Source: San Joaquin County Auditor-Controller's Office

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 7
190

Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)

Fiscal Year
Basic
Countywide
Levy

City

Total Direct
Stockton Unified
School District
San Joaquin
Delta College
District

Total
2024 1.0000 - 1.0000 0.2026 0.0135 1.2161
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

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 de bt 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.

Source: San Joaquin County Tax Rate Book

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 8
191

Principal Property Taxpayers
Current Year and Nine Years Ago
(Dollar amounts in thousands)

Fiscal Year
2024 2015
Percent of Total

Percent of Total
Taxable
Assessed Value Rank
City Taxable
Assessed Value
Taxable
Assessed Value Rank
City Taxable
Assessed Value
PW Fund A/B $ 273,291 1 0.980 % - %
Prologis 240,731 2 0.863 % - %
Patmon Company Inc 167,487 3 0.601 % -
IDI Stockton Logistics III LLC 143,101 4 0.513 % $ 63,286 10 0.504 % Excel Stockton LLC 128,371 5 0.460 % 120,377 2 0.958 %
EGMR Norcal Logistics Center LLC 112,903 6 0.405 % -
Wilshire 3923 B Street 107,100 7 0.384
Central Valley Indust core holdings LLC 106,729 8 0.383 % - % Wilshire Newcastle road owner LLC 99,878 9 0.358 % -
Simpson Manufacturing Co Inc
Amazon Com Services Inc
DTE Stockton LLC
96,405 10 0.346 % 85,948

124,015
4 1

0.684
-

0.987
%

%
Buzz Oates LLC 92,920 3 0.740 %
Pacific Ethanol Stockton LLC 77,564 5 0.617 %
Diamond Walnut Growers Inc 70,579 6 0.562 %
A G Spanos Professional Office Center LLC 70,268 7 0.559 % Corn Products International Inc 69,938 8 0.557 %
Wal Mart Real Estate Bus Trust/Sam's

67,026 9 0.534 %
Principal Secured Property Valuation 1,475,997 5.293 % 841,921 6.702 % Other Secured Taxpayers 28,517,856 102.272 12,436,354 98.994 Total Secured Property Valuation Before Exemptions 29,993,853

107.566 % 13,278,275 105.696 %
Less Exemptions relative to secured tax roll (1) 2,109,659 7.566 715,515 5.696 Total Secured Property Valuation $ 27,884,194

100.000 % $ 12,562,760 100.000 %

(1) Exemptions relative to secured tax roll: FY 2024 - homeowners - $213,108 and other - $1,896,551 = $2,109,659 FY 2015 - homeowners - $171,272 and other - $1,418,747 = $1,590,019

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 f actor" (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.

Source: San Joaquin County Assessor's Office
San Joaquin County Auditor-Controller's Office

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 9
192

Secured Property Tax Levies and Collections
Last Ten Fiscal Years
(Dollar amounts in thousands)

Collected Within the Fiscal Year of the
Levy
Total Collections
to Date

Fiscal Year
Secured Taxes
Levied for the
Fiscal Year

Amount

Percent of
Levy (1)
Collections in
Subsequent
Years

Amount

Percent of
Levy
2024 $ 41,329 $ 41,329 100 % - $ 41,329 100 %
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 %

(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.

Source: San Joaquin County Auditor-Controller’s Office

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 10
193

Water Sold by Customer Type
Last Five Fiscal Years

Fiscal Year
2024 2023 2022 2021 2020

Type of Customer
Residential

7,676,088

cf

7,516,755

cf

8,204,224

cf

10,610,177

cf

7,997,883

cf
Institutional 828,397 782,656 858,661 1,105,150 827,124 Commercial/Industrial 1,774,960 1,567,709 1,707,532 2,018,500 1,588,605 Irrigation 1,437,768 1,291,195 1,603,842 2,025,832 1,457,258

Total

11,717,213

cf

11,158,315

cf

12,374,259

15,759,659

cf

11,870,870

cf

1 cubic foot (cf) = 7.481 gallons

Source: City of Stockton Department of Administrative Services

ATTACHMENT A

ATTACHMENT A
194

This page intentionally left blank.

ATTACHMENT A

ATTACHMENT A
195
City of Stockton
Table 11

Water and Wastewater Utility Rates
Last Ten Fiscal Years

Water
Tier 1 Additional Per

Tier 2 Additional Per
Wastewater

Fiscal Year Monthly Base Rate 100 cf** 100 cf** Monthly Base Rate

2024 $ 36.54 $ 2.58 $ 3.08 $ 55.68
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

*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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 12
196

Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)

Governmental Activities*

Fiscal
Year

Revenue*
Bonds (1)

Certificates
of
Participation
Notes
Payable / Equip. Leases
/Subscription
Settlements

Pension
Bonds*

Total
Governmental
Activities
2024 $ - $ - $ 11,089 $ 52,647 $ 63,737
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

*Includes settlement amounts for debts adjusted under Chapter 9 of the US Bankruptcy Code.

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 2023 and population for fiscal year 2024.

Sources: City of Stockton Department of Administrative Services US Dept. of Commerce, Bureau of Economic Analysis
State of California, Department of Finance

ATTACHMENT A

ATTACHMENT A
197
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

Fiscal
Year

Revenue
Bonds

Notes
Payable / Equip.

Leases /Subscription
Total
Business-type
Activities

Total
Percent
of
Personal
Income (1)
Amount
Per
Capita (1)
2024 $ 237,224 $ 156,282 $ 393,506 $ 457,242 0.96 % $ 1,441 2023 261,508 121,398 382,906 447,414 1.25 % 1,399
2022 274,233 121,564 395,797 453,581 1.26 % 1,407
2021 261,845 129,381 391,226 450,795 1.25 % 1,405
2020 144,710 129,380 274,090 335,664 0.93 % 1,054
2019 279,039 10,870 289,909 353,377 1.11 % 1,117
2018 312,700 10,870 323,570 402,395 1.86 % 1,277
2017 326,165 10,870 337,035 418,669 1.49 % 1,306
2016 336,218 10,954 347,172 440,961 2.04 % 1,397
2015 343,926 11,040 354,966 450,316 2.09 % 1,467

*Includes settlement amounts for debts adjusted under Chapter 9 of the US Bankruptcy Code.

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 2023 and population for fiscal year 2024.

Sources: City of Stockton Department of Administrative Services US Dept. of Commerce, Bureau of Economic Analysis
State of California, Department of Finance

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 13
198

Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)

General Bonded Debt Outstanding*

Fiscal Year

Lease
Revenue
Bonds
Certificates
of
Participation
(2)

Pension
Obligation
Bonds (1)

Redevelopment
Agency
Bonds*

Total

Percent of
Assessed
Property Value

Amount
Per
Capita
2024 $ - $ - $ 52,647 $ - $ 52,647 0.002 % $ 0.17
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

* Redevelopment Agency Bonds are no longer included in the General Bonded debt.

(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.

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.)

Source: City of Stockton Department of Administrative Services San Joaquin County Auditor-Controller’s Office
State of California, Department of Finance

ATTACHMENT A

ATTACHMENT A
199
City of Stockton
Table 14

Direct and Overlapping Governmental Activities Debt

Total Debt Percentage

City’s share of

OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 Applicable (1) Debt 6/30/2024 San Joaquin Delta Community College District $ 162,660,000 25.819 % $ 41,997,185 Stockton Unified School District 485,176,334 84.262 408,819,283 Lodi Unified School District 269,035,000 34.303 92,287,076 Lodi Unified School District School Facilities Improvement District No. 1 37,075,000 86.180 31,951,235 Lincoln Unified School District 55,833,224 86.383 48,230,414 Lincoln Unified School District Community Facilities District No. 1 11,571,567 79.832 9,237,813 Manteca Unified School District 262,234,978 11.847 31,066,978 Manteca Unified School District Community Facilities District No. 1989-1 9,877,012 100.000 9,877,012 Tracy Joint Unified School District and School Facilities Improvement Dist. No.3 121,062,900 0.004 & 0.006 6,743 City of Stockton Community Facilities District No. 99-02 22,150,000 100.000 22,150,000 City of Stockton Community Facilities District No. 2001-1 (Spanos Park West) 8,574,118 100.000 8,574,118 City of Stockton Community Facilities District No. 2003-1 1,343,772 100.000 1,343,772 City of Stockton Community Facilities District No. 2005-1 8,550,000 100.000 8,550,000 City of Stockton Community Facilities District No. 2006-1 2,045,902 100.000 2,045,902 City of Stockton Community Facilities District No. 2006-2 2,715,000 100.000 2,715,000 City of Stockton Community Facilities District No. 2006-3 4,152,646 100.000 4,152,646 City of Stockton Community Facilities District No. 2018-1 3,170,000 100.000 3,170,000 City of Stockton Community Facilities District No. 2018-2, I.A. 1 & 2 37,110,000 100.000 37,110,000 City of Stockton Community Facilities District No. 2019-1 9,915,000 100.000 9,915,000 City of Stockton 1915 Act Bonds 13,882,139 100.000 13,882,139 Reclamation District No. 2042 Community Facilities District No. 2001-1 3,297,101 18.211 600,435 San Joaquin Area Flood Control District Smith Assessment District 8,945,000 57.451 5,138,992 San Joaquin Area Flood Control District Levee Construction Assessment District 27,730,000 93.754 25,997,984 San Joaquin County Reclamation District No. 17 Assessment District 19,926,427 27.618 5,503,281 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 824,323,008 OVERLAPPING GENERAL FUND DEBT:

San Joaquin County Certificates of Participation 49,210,000 27.920 % 13,739,432 Lincoln Unified School District Certificates of Participation 6,900,000 86.383 5,960,427 Lodi Unified School District Certificates of Participation 7,060,000 34.303 2,421,792 Manteca Unified School District General Fund Obligations 11,982,000 11.847 1,419,508 Stockton Unified School District Certificates of Participation 22,750,000 84.262 19,169,605 Lathrop-Manteca Rural Fire Protection District certificates of Participation 3,330,000 0.018 599 City of Stockton Bond Insurer Settlement Agreement Liability 52,647,254 100.000 52,647,254 TOTAL OVERLAPPING GENERAL FUND DEBT 95,358,617
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 3,415,000 100.000 3,415,000 TOTAL OVERLAPPING TAX INCREMENT DEBT 76,725,000
TOTAL DIRECT DEBT 52,647,254
TOTAL OVERLAPPING DEBT 943,759,371
GROSS COMBINED TOTAL DEBT (2) 996,406,625
2023-24 Assessed Valuation (3): $ 30,067,817
(after deducting $1,916,837 Other Exemptions Valuation ) 2023-24 Population
Debt Ratios

Per Capita Ratio to
Total Gross Debt (2) $ 996,406,625 $ 3,141 3313.86 %
Ratios to 2023-24 Assessed Valuation: Total Overlapping Tax and Assessment Debt 824,323,008 2,599 2741.55 Ratios to Adjusted Assessed Valuation: Combined Direct Debt 52,647,254 166 175.10 (1) Percent of overlapping agency's assessed valuation located within boundaries of the City. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
(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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 15
200

Legal Debt Margin Information
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2024 2023 2022 2021 2020

Assessed valuation (1) $ 30,067,817

$ 28,121,702

$ 26,144,691

$ 24,701,296

$ 23,343,395

Conversion percentage

25%

25%

25%

25%

25%

Adjusted assessed valuation

7,516,954

7,030,426

6,536,173

6,175,324

5,835,849
Debt limit percentage 15% 15% 15% 15% 15%

Debt Limit

1,127,543

1,054,564

980,426

926,299

875,377
Total net debt applicable to limit - - - - -

Legal debt margin

$ 1,127,543

$ 1,054,564

$ 980,426

$ 926,299

$ 875,377

Legal debt margin/debt limit

100%

100%

100%

100%

100%

(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 w ithin 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.

Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office

ATTACHMENT A

ATTACHMENT A
201
City of Stockton
Table 15

Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)

Fiscal Year
2019 2018 2017 2016 2015

Assessed valuation (1) $ 22,407,298

$ 21,362,446

$ 20,337,129

$ 19,628,594

$ 18,653,199

Conversion percentage

25%

25%

25%

25%

25%

Adjusted assessed valuation

5,601,825

5,340,612

5,084,282

4,907,149

4,663,300
Debt limit percentage 15% 15% 15% 15% 15%

Debt Limit

840,274

801,092

762,642

736,072

699,495
Total net debt applicable to limit - - - - -

Legal debt margin

$ 840,274

$ 801,092

$ 762,642

$ 736,072

$ 699,495

Legal debt margin/debt limit

100%

100%

100%

100%

100%

(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 w ithin 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.

Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 16
202

Pledged-Revenue Coverage
Last Ten Fiscal Years
(Dollars amounts in thousands)

Water Revenue Bonds

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.
(Continued)

(1) Including operating, nonoperating revenues and capital contribution. (2) Total operating expenses exclusive of depreciation and amortization.

* 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.

Fiscal

Gross
Less:

Operating
Net
Available

Debt Service
Debt
Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio 2024 $ 78,510 $ 37,800 $ 40,711 $ 17,355 $ 8,096 $ 25,451 1.60

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

ATTACHMENT A

ATTACHMENT A
203
City of Stockton
Table 16

Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
(Dollars amounts in thousands)

Wastewater Certificates of Participation

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. (Continued)

(1) Including operating, nonoperating revenues and capital contribution. (2) Total operating expenses exclusive of depreciation and amortization.

Source: City of Stockton Department of Administrative Services

Fiscal

Gross
Less:

Operating
Net
Available

Debt Service
Debt
Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio 2024 $ 98,535 $ 57,984 $ 40,551 $ 4,635 $ 3,374 $ 8,009 5.06 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

ATTACHMENT A

ATTACHMENT A
204
City of Stockton
Table 16

Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
(Dollars amounts in thousands)

Parking Authority

(1) Includes all nongeneral obligation long term debt backed by pledged revenues. Please note that principal and interest for an internal loan subordinated to the 2020 Parking Revenue Bonds is not included. Had payments for that loan been included, coverage would have been 0.81. (2) Total operating expenses exclusive of depreciation and amortization.

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

Fiscal

Gross
Less:

Operating
Net
Available

Debt Service
Debt
Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio 2024 $ 7,499 $ 3,673 $ 3,826 $ 545 $ 1,162 $ 1,707 2.24 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
(Concluded)

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 17
205

Demographic and Economic Statistics
Last Ten Fiscal Years

Fiscal
Year

Population

Personal Income
(millions
of dollars)
Per
Capita
Personal
Income

Unemployment
Rate

Labor Force
(1)
Total
Housing
Units
Household
Average
Size
Median
Family
Income

School
Enrollment
2024 317,204 $ 17,187 $ 54,183 7.7% 137,500 104,325 3.10 $ 71,612 98,713 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

(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.

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.

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

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 18
206

Principal Employers
Current Year and Nine Years Ago

2024 2015
Percent Percent
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment

Amazon 6,040 1 4.39% 0.00%
Stockton Unified School District 5,615 2 4.08% 3,366 3 1.08% St. Joseph’s Medical Center 3,200 3 2.33% 4,600 2 1.48% City of Stockton 2,258 4 1.64% 1,862 4 0.60%
San Joaquin County Office of Education 1,964 5 1.43% 0.00% Pacific Gas and Electric 1,550 6 1.13% 600 6 0.19%
University of the Pacific 1,518 7 1.10% 900 9 0.29%
Lincoln Unified School District 1,190 8 0.87% 631 10 0.20% Kaiser Permanente 1,065 9 0.77% 1,065 7 0.34%
San Joaquin Delta College 909 10 0.66% 1,000 8 0.32%
San Joaquin County 6,000 1 1.93%
Dameron Hospital 1,200 5 0.39%
O'Reilly Auto Parts 0.00%
Diamond Walnut
Total 25,309 18.41% 21,224 6.81%

Note: Principal employers are based on best available information.

Sources: San Joaquin Partnership Survey, August 2023
City of Stockton ACFR, 2015

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 19
207

Full-Time Equivalent City Government Employees
By Function/Program/Department
Last Five Fiscal Years

Fiscal Year
2024 2023 2022 2021 2020
Function/Program/Department:

Admin Services

76 77

73 78

74 City Attorney 9 11 9 10 12
City Clerk 7 8 7 7 7
City Council/Mayor 4 4 4 3 4
City Manager 40 29 32 30 26
Community Development 46 46 42 40 42
Community Services 109 105 102 101 101
Human Resources 29 29 30 22 32
Information Technology
Police:

Sworn
42 362
32 352
37 405
39 433
41 432
Non-sworn 173 173 175 189 216
Animal control 9 9 6 11 12
Total Police 544 534 586 633 660
Fire:

Firefighters-sworn

189

196

165

171

160
Firefighters-auxiliary 8 10 41 0 21
Non-sworn personnel 45 46 34 34 32
Total Fire 242 252 240 205 213
Public Works

144

142

140

135

135
Economic Development 26 23 20 20 18
Water Utility 68 41 47 48 47
Wastewater Utility 141 150 147 147 142
Stormwater Utility 16 4 3 5 4
Total 1543 1487 1519 1523 1558

*Auxiliary fire fighter program on hold due to COVID-19 *Non-Sworn includes Police Officer Trainees
Source: City of Stockton Human Resources Department

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 20
208

Operating Indicators by Function/Program/Department
Last Five Fiscal Years

Fiscal Year
2024 2023 2022 2021 2020

General government:

Building permits issued 7,657 9,022 7,714 8,815 7,378
Business tax certificates:

Retail sales and service 5,391 5,345 5,109 6,434 7,805
Rental Properties - Commercial and Residential 2,401 2,495 2,495 4,267 4,491 Wholesale 287 2,116 319 443 393
Manufacturers and processors 131 165 121 152 149
Professions 1,327 1,391 1,289 1,760 1,561
Miscellaneous contractors, peddlers, delivery vehicles, etc. 4,987 4,810 5,219 5,640 4,900 Improvement district and hotel/motel room tax
Utility billing/customer service:

Utility bills issued 1,152,118 1,032,007 1,040,607 1,186,454 1,000,452 Utility accounts opened and closed 8,704 7,918 19,933 46,905 17,582 New service locations (water) added 470 427 411 378 283 Delinquency Notices Sent - Active Accounts - - - - 75,687 Water Service Terminated for Non-Payment - - - - 3,055
Utility customer service calls received 28,136 35,090 59,951 49,999 45,231 Utility customers using automated voice response 523,693 611,396 678,091 802,378 709,134 Utility Customers Using Online Pmt/Account Access 34,807 32,850 32,850 44,467 32,852 Miscellaneous accounts receivable bills issued 10,069 15,751 10,005 14,770 14,024 Public safety:

Police:

Pu
Major reported crimes 13,028 13,420 12,250 12,548 15,654 Total arrests 8,796 12,115 12,915 8,272 11,152
Dispatched calls for service 156,896 185,790 204,270 207,355 176,311 Fire:

Interior structure fire calls

245

283

332

293

398
Non-structural fire calls 3,259 3,365 2,616 3,895 5,719 Hazardous materials calls 359 368 252 301 593
Emergency medical calls 17,510 17,692 19,557 18,485 34,287 Total emergency calls 42,785 42,613 46,756 51,515 57,396 Total number of units dispatched 52,281 52,302 57,198 54,470 60,162 blic works:

Miles of streets resurfaced 25 15 26 22 28
Fleet job orders completed 3,519 4,786 5,725 6,617 7,764

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 20
209

Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years

Library:

Fiscal Year

2024 2023 2022 2021 2020

Registered borrowers 160,963 143,604 145,990 155,999 152,726 Circulation of library materials 1,237,320 1,175,080 1,021,233 576,605 943,196 Reference, research and informational questions answered 96,151 95,438 61,020 43,122 70,583 Annual attendance at libraries 661,182 615,282 425,695 120,679 578,193 Number of programs offered 4,397 4,037 1,719 246 3,110
Annual attendance at programs 97,228 84,869 38,640 5,831 60,066

Parks and Recreation:

Boat launches
Golf rounds:

Swenson Park golf course 53,519 55,898 59,076 79,968 65,489 Van Buskirk golf course - - - - 1,904
Trees planted 950 348 106 20 3
Heritage tree removal-permits issued 16 - - - 9
After school program registration (number of participants) 18,490 17,285 11,558 471 16,153 Day camp participants 3,821 2,626 2,703 444 2,753
Mobile recreation programs (number of participants)
Instructional classes 1,886 1,791 2,036 - 1,781
Softball/baseball diamonds bookings 2,500 204 169 41 142 Showmobile (Mobile Stage) bookings - - 15 1 15
Community center bookings 503 515 423 - 636
Picnic facility bookings 223 240 305 7 172
Adult sports (number of teams):

Softball 318 148 153 45 57
Basketball 187 73 63 - 16
Volleyball - 9 9 - -
Youth sports (basketball, track, soccer, baseball, volleyball, flag football) (number of participants) 5,715 1,773 1,397 375 1,351

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 20
210

Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years

Fiscal Year
Parks and Recreation (cont.): 2024 2023 2022 2021 2020
Admissions to:

Pixie Woods

16,379

58,694

14,235

973

8,995
Oak Park Tennis
Senior Center memberships

1,231

877

1,131

-

1,075
Civic Auditorium bookings 56 143 120 66 116
Parks and Recreation sponsored events 27 82 5 1 15
Philomathean Club bookings
Weber Point Events Center bookings

20 23

16 1

15 Economic Development: (1)

Rental Housing Units (3) - - 105 - 127
Owner Housing (Emergency Repair or Rehabilitation) 3 3 1 2 2 Down Payment Assistance - - - - -
Special Needs (Homes Repaired or Rehabilitated) - - - - - Public Facilities (Rehabilitated or Constructed) (3) - - 1 - 5 Façade Program (Commercial Façade Repair/Rehabilitated) 4 4 1 2 2 Public Services Provided 307,916 100,341 712 83,553 47,605 Homeless Services Provided 502 10,182 7,040 4,806 5,413 Meals Provided to Homeless (3) - 4,708 249,455 126,408 41,882 Jobs Created and/or Retained (3) - - - 1 2
Business Assisted (Entrepreneur Program) (3) - 157 175 157 229

Water utility:

New connections (DUE's) (2)

479

338

473

589

105
Water main breaks 20.196 27 26 18 15
Wastewater utility:

Average daily influent (million gallons per day)

27mgd

27mgd

25mgd

25mgd

27 mgd

(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.

(3) Public Services Provided includes, rental housing unit, public facilities, meals provided to homeless, jobs created /retained and business assisted services.

Source: City of Stockton Departments

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 21
211

Capital Asset Statistics by Function/Program/Department Last Five Fiscal Years

Fiscal Year
2024 2023 2022 2021 2020
General government:

Land use-square miles:

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

Police:

Facilities:

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

Marked patrol cars
1 183
1 189
1 153
1 181
1 212
Motorcycles and scooters 27 31 27 27 27
Animal control vehicles 11 12 12 11 9
VIPS vehicles 4 7 6 5 6
Other automobiles 221 226 158 198 213
Other mobile units (all others) 16 17 24 24 15
Public area security cameras 386 416 372 356 356
Fire:

Fire stations

13 12

12 12

12 Training facilities 1 1 1 1 1
Fire hydrants 9354 9335 9302 9220 9,177
blic works:

Miles of streets 781 781 781 781 769
Traffic signals 319 311 317 316 316
Street light fixtures 19,805 19,325 19,296 19,279 19,279 Rectangular Rapid flashing Beaconns 65 65 - - -

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 21
212

Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years

Parks and recreation:

Fiscal Year

2024 2023 2022 2021 2020

Arena 1 1 1 1 1
Ballpark 1 1 1 1 1
Baseball/softball diamonds 54 54 54 54 54
Bike/jogging paths (miles) 20 20 20 20 20
Boating facilities - launch lanes 12 12 12 12 12
Children's Museum 1 1 1 1 1
Civic Auditorium (2,800 capacity) 1 1 1 1 1
Community centers 5 5 5 5 5
Dog Areas 3 3 3 3 3
Family camps 1 1 1 1 1
Golf course acreage 371 371 371 371 371
Group picnic areas 31 31 31 31 31
Gymnasium 5 5 5 5 5
Ice rink 1 1 1 1 1
Municipal golf courses 1 2 2 3 3
Park acreage 625 625 625 625 625
Parks and squares 67 67 67 67 67
Philomathean Club 1 1 1 1 1
Playgrounds 63 63 63 63 71
Senior center 1 1 1 1 1
Showmobile (Mobile Stage) 1 1 1 1 1
Skateboard park 1 1 1 1 1
Swimming pools 7 7 7 7 7
Teen Center - 1 1 1 1
Tennis courts 67 67 67 67 67
Theater (Bob Hope) 1 1 1 1 1
Weber Point Events Center 1 1 1 1 1
Consolidated landscape maintenance districts:

Streetscaping (square feet) 3.6 million 3.6 million 3.6 million 3.6 million 3.6 million Public open spaces (acreage) 70 70 70 70 70

ATTACHMENT A

ATTACHMENT A
City of Stockton
Table 21
213

Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years

Fiscal Year

2024 2023 2022 2021 2020

Library:

City branches

8 8

8 8

8 Library mobile units 2 1 2 2 2
San Joaquin County branches 8 7 8 8 8
Total items in collection 396,659 547,525 655,305 704,864 875,434 Cargo delivery van - 1 2 2 2
Cargo van 4 4 1 1 1
Undeveloped land for branch library 1 2 2 2
Integrated library system 1 1 1 1 1
Microform readers 5 5 - - 7
Microform readers/printers 4 6 6 6 7
Self check out machines 13 13 21 21 22
Water utility:

Water main lines (miles)

619

612

702

702

702
Storage capacity (thousand gallons) 26,200 26,200 26,200 26,200 26,200 Water wells (active) 9 12 19 20 20
Water reservoirs 7 8 8 8 8
Wastewater utility:

Wastewater main lines (miles)

929

922

921

919

887
Treatment capacity (million gals/day) 55 55 55 55 55
Wastewater pump stations
Stormwater utility:

Stormwater main drain lines (miles)
28 627
28 612
28 628
28 627
27 627
Stormwater pump stations 76 76 75 73 73
Parking Authority:

Parking spaces

5,179

5,179

5,179

5,440

5,440
Parking lots & garages 21 21 21 21 21

Source: City of Stockton Departments

ATTACHMENT A

ATTACHMENT A
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ATTACHMENT A

ATTACHMENT A