Taft City Council
July 19, 2022

TAFT CITY COUNCIL/SUCCESSOR AGENCY

JOINT REGULAR MEETING AGENDA
TUESDAY, JULY 19, 2022

CITY HALL COUNCIL CHAMBER
209 E. KERN ST., TAFT, CA 93268
________________________________________________________________________________________________________________________________ City of Taft Council Meetings are being held in-person with full capacity seating and are livestreamed at https://www.youtube.com/user/CityofTaft. Public comment can be made in person and also can be received per the following:
• Written comments may be dropped off in the drop box in front of City Hall. • Comments may be emailed to the City Clerk at [email protected]. • Made by phone to the City Clerk’s office at (661) 763-1222. • Public comments will be accepted up until 5:00 PM the day of the meeting. • Any comments received will be read into the record.
________________________________________________________________________________________________________________________________ REGULAR MEETING 6:00 P.M.

Pledge of Allegiance
Invocation
Roll Call: Mayor Noerr
Mayor Pro Tem Krier
Councilmember Bryant
Councilmember Eveland
Councilmember Whiting

1. INFORMATIONAL PRESENTATION BY DOUG MCALLISTER, VICE PRESIDENT EXTERNAL

AFFAIRS FOR FRONTIER COMMUNICATIONS

2. PUBLIC HEARING - ADOPT RESOLUTIONS AUTHORIZING KERN COUNTY TAX COLLECTOR

TO COLLECT REFUSE AND STREET SWEEPING CHARGES AND STANDBY CHARGES FOR

VACANT COMMERCIAL BUILDINGS
Recommendation –

1. Conduct Public Hearing.

2. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TAFT PROVIDING FOR COLLECTION OF REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

3. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TAFT PROVIDING FOR COLLECTION OF STANDBY REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

3. PUBLIC HEARING - ADOPT RESOLUTIONS AUTHORIZING KERN COUNTY TAX COLLECTOR

TO COLLECT SEWER CHARGES AND STANDBY SEWER CHARGES FOR VACANT

COMMERCIAL BUILDINGS
Recommendation -

1. Conduct Public Hearing.

2. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TAFT PROVIDING FOR COLLECTION OF SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

3. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TAFT PROVIDING FOR COLLECTION OF STANDBY SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

City of Taft Council/Successor Agency Meeting
Agenda
July 19, 2022

4. PUBLIC HEARING - LANDSCAPE MAINTENANCE DISTRICT NO. 1 Recommendation –

1. Conduct Public Hearing.

2. Motion to approve resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT SETTING THE ASSESSMENT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1.

5. CITIZEN REQUESTS/PUBLIC COMMENTS

COMMENTS ARE TO BE RECEIVED AS STATED IN ABOVE POLICY

THIS IS THE TIME AND PLACE FOR THE GENERAL PUBLIC TO ADDRESS THE CITY COUNCIL ON MATTERS WITHIN ITS JURISDICTION. STATE LAW PROHIBITS THE COUNCIL FROM ADDRESSING ANY ISSUE NOT PREVIOUSLY INCLUDED ON THE AGENDA. COUNCIL MAY RECEIVE COMMENT AND SET THE MATTER FOR A SUBSEQUENT MEETING. PLEASE LIMIT COMMENTS TO FIVE MINUTES.

6. COUNCIL STATEMENTS (NON-ACTION)

7. PLANNING COMMISSION REPORT

8. DEPARTMENT REPORTS

9. CITY MANAGER STATEMENTS

10. CITY ATTORNEY STATEMENTS

11. FUTURE AGENDA REQUESTS
****************************************************************************************************** CONSENT CALENDAR ITEMS 12-20
All items listed on the Consent Calendar shall be considered routine and will be enacted by one roll call vote. There will be no separate discussion of these items unless a member of the City Council requests specific items to be removed from the Consent Calendar for separate action. Any item removed from the Consent Calendar will be considered after the regular business items. Are there any items on the consent calendar that any member of the public would like to comment on?

12. MINUTES
June 21, 2022 regular
Recommendation – Approve as submitted.

13. PAYMENT OF BILLS
Warrant# 6/24/22 Check No. 96456-96467 $ 7,421.24
Warrant# 6/24/22 Check No. 96468-96506 $ 484,583.06
Warrant# 6/24/22 Check No. 96507-96511 $ 14,322.91
Warrant# 7/5/22A Check No. 96512-96513 $ 8,258.50
Warrant# 7/8/22A Check No. 96514-96550 $ 118,331.69
Warrant# 7/8/22 Check No. 96551-96574 $ 78,276.96
Recommendation – Approve payment of the bills.

14. TREASURER’S REPORTS
Recommendation – Motion to receive and file Treasurer’s Reports for the Months of April and May 2022.

City of Taft Council/Successor Agency Meeting
Agenda
July 19, 2022

15. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT AUTHORIZING BANK CARD

SERVICES
Recommendation – Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT AUTHORIZING BANK CARD SERVICES.

16. 2ND READING AND ADOPTION OF ORDINANCE ADDING CHAPTER 13 TO TITLE VIII OF THE

TAFT CITY CODE ADOPTING MILITARY EQUIPMENT USE POLICY PURSUANT TO ASSEMBLY BILL 481
Recommendation – Motion to approve and amend the City of Taft Municipal Code entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TAFT, CALIFORNIA ADDING CHAPTER 13 TO TITLE VIII OF THE TAFT CITY CODE RELATING TO THE ADOPTION OF A MILITARY EQUIPMENT USE POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481.

17. PROFESSIONAL SERVICES AGREEMENT WITH RYKER DESIGNS FOR DESIGN OF DETAILED

PLANS AND SPECS FOR POLICE DEPARTMENT BUILDING RENOVATIONS Recommendation – Motion to approve an agreement with Ryker Designs in an amount not to exceed $24,500 to prepare the detailed plans and specs required to bid out Police Department building renovations and authorize the Mayor to execute said agreement.

18. DESIGNATION OF CONFLICT OF INTEREST STATEMENT FILERS AND ASSIGNMENT OF DISCLOSURE CATEGORIES PURSUANT TO THE POLITICAL REFORM ACT OF 1974 Recommendation – Motion to accept the 2022 Local Agency Biennial Notice and adopt a resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT

DESIGNATING POSITIONS REQUIRED TO FILE CONFLICT OF INTEREST STATEMENTS PURSUANT TO THE POLITICAL REFORM ACT OF 1974, ASSIGNING DISCLOSURE CATEGORIES AND REPEALING AND REPLACING RESOLUTION NO. 4035-20.

19. ANNUAL AUDITED FINANCIAL STATEMENTS FOR FY2018-2019 Recommendation – Motion to receive and file the Annual Audited Comprehensive Financial Reports for the year ended June 30, 2019.

20. ACCEPT THE WORK PERFORMED BY MARCO A. GONZALEZ ENGINEERING, INC. DBA MAG ENGINEERING, INC. AND APPROVE THE FILING OF NOTICE OF COMPLETION FOR THE DEMOLITION OF STRUCTURE AT 520 NORTH STREET
Recommendation – Motion to accept the completed work by Marco A. Gonzalez Engineering, Inc. DBA as MAG Engineering, Inc. for the demolition of building at 520 North Street and authorize the City Clerk to file the Notice of Completion with the Kern County Recorder. *********************************************************************************************************

CLOSED SESSION
A. ANNUAL PERFORMANCE EVALUATION
Government Code Section 54957 – City Manager
B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9 (a) – Case # BCV-20-100096 City of Taft Council/Successor Agency Meeting
Agenda
July 19, 2022

ADJOURNMENT

AMERICANS WITH DISABILITIES ACT
(Government Code Section 54943.2)
The City of Taft City Council Chamber is accessible to persons with disabilities. Disabled individuals who need special assistance (including transportation) to attend or participate in a meeting of the Taft City Council may request assistance at the Office of the City Clerk, City of Taft, 209 E. Kern Street, Taft, California or by calling (661) 763-1222. Every effort will be made to reasonably accommodate individuals with disabilities by making meeting material available in alternative formats. Requests for assistance should be made five (5) working days in advance of a meeting whenever possible.

AFFIDAVIT OF POSTING
I, Darnell Porter, declare as follows:

That I am the Deputy City Clerk for the City of Taft; that an agenda was posted on a public information bulletin board located near the door of the Civic Center Council Chamber on July 14, 2022 at ________ a.m. /p.m., pursuant to 1987 Brown Act Requirements.

I declare under penalty of perjury that the foregoing is true and correct.

Executed July 14, 2022, at Taft, California.

Signature _________
REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

PUBLIC HEARING - ADOPT RESOLUTIONS AUTHORIZING KERN COUNTY TAX COLLECTOR

TO COLLECT REFUSE AND STREET SWEEPING CHARGES AND STANDBY CHARGES FOR

VACANT COMMERCIAL BUILDINGS
SUMMARY STATEMENT:

Section 5473 Et. Seq. of the Health and Safety Code authorizes the collection of refuse fees by the County Tax Collector upon adoption of an appropriate resolution by the City Council.

Prior to considering such a resolution it is appropriate for council to conduct a public hearing and to receive evidence and testimony for and against the proposed action from members of the public. Following completion of the hearing, Council will then consider the adoption of the proposed resolutions.

RECOMMENDED ACTION

1. Conduct Public Hearing.

2. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF TAFT PROVIDING FOR COLLECTION OF REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

3. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF TAFT PROVIDING FOR COLLECTION OF STANDBY REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

IMPACT ON BUDGET (Y/N): Yes, Revenue for Refuse Fund
ATTACHMENT (Y/N): Yes – Resolutions
PREPARED BY: City Clerk
RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT PROVIDING FOR

COLLECTION OF REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND

SAFETY CODE
WHEREAS, on April 20, 2021, the City Council of the City of Taft duly passed and adopted Resolution No. 4089-21 and on July 6, 2021 they duly passed Resolution No. 4098-21; and WHEREAS, said Resolutions passed pursuant to sanitation and refuse collection requirements set forth in the California Health and Safety Code provides for a direct charge for the collection and disposal of refuse, including street sweeping, as follows:

Single-family residences $64.78 bi-monthly ($388.68 per year).

Multiple-family residential (per Dwelling Unit) $64.78 bi-monthly ($330.36 per year).

WHEREAS, said Resolutions provide that charges imposed thereunder upon Single-Family Dwellings, and Multi-Family Dwellings for the collection and disposal of refuse be collected by the County Tax Collector; and WHEREAS, the City Council set the bi-monthly rate for street sweeping in Ordinance No. 798-13 at $9.11 for Single-Family and Multi- Family Residential customers; and WHEREAS, Section 5473 Et. Seq. of the Health and Safety Code of the State of California permits the City Council to provide for the collection of such charges by the County Tax Collector; and WHEREAS, the City Council of the City of Taft hereby finds that all refuse collection and disposal charges comply with the applicable provisions of Article XIII D of the California Constitution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Taft transfers the function of collection of refuse and street sweeping charges for all residential dwellings to the County Tax Collector pursuant to Resolution No. 4098-21 to be billed at the time of billing for property taxes. Such charges shall be in the amount provided by Resolution No. 4098-21 adopted by the City Council of the City of Taft.

PASSED, APPROVED AND ADOPTED on this 19th day of July, 2022. _____________________________
Dave Noerr, Mayor
ATTEST:
________________________________
Yvette Mayfield, MMC
City Clerk
STATE OF CALIFORNIA }
COUNTY OF KERN } SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Taft at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
________________________________
Yvette Mayfield, MMC
City Clerk
RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT PROVIDING FOR

COLLECTION OF STANDBY REFUSE AND STREET SWEEPING CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH

AND SAFETY CODE
WHEREAS, on July 2, 2013, the City Council of the City of Taft duly passed and adopted Ordinance No. 798-13; and
WHEREAS, on July 6, 2021 the City Council duly passed and adopted Resolution No. 4098-21; and WHEREAS, said Ordinance and Resolution passed pursuant to sanitation and refuse collection requirements set forth in the California Health and Safety Code provides for a direct charge for the collection and disposal of refuse, including street sweeping, as follows:

1. Commercial Customers Standby Charge: All commercial buildings that are vacant or not conducting day to day business will be charged a rate equal to the minimum residential rates as a stand-by charge. These charges will be added to the property tax roll and shall be collected at the same time and in the same manner as ordinary City taxes are collected. It is the responsibility of the property owner to notify the City if the building becomes occupied with an operational business, removed or condemned by providing documentation to such and to request to have the charge removed from the property tax roll; any valid refund requested will be equal to the lesser of 12 months or when the building was removed or condemned.

WHEREAS, said Ordinance and Resolution provides that standby charges imposed upon Commercial buildings for the collection and disposal of refuse and street sweeping be collected by the County Tax Collector; and WHEREAS, Section 5473 Et. Seq. of the Health and Safety Code of the State of California permits the City Council to provide for the collection of such charges by the County Tax Collector; and WHEREAS, the City Council of the City of Taft hereby finds that all refuse collection and disposal charges comply with the applicable provisions of Article XIII D of the California Constitution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Taft transfers the function of collection of standby refuse charges for all vacant Commercial Buildings to the County Tax Collector pursuant to Ordinance No. 798-13 and Resolution No. 4098-21 to be billed at the time of billing for property taxes. Such charges shall be in the amount provided by Ordinance No. 798-13 and Resolution No. 4098-21 adopted by the City Council of the City of Taft.

PASSED, APPROVED AND ADOPTED on this 19th day of July, 2022. _____________________________
Dave Noerr, Mayor
ATTEST:
_____________________________
Yvette Mayfield, MMC
City Clerk
STATE OF CALIFORNIA }
COUNTY OF KERN } SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Taft at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
_____________________________
Yvette Mayfield, MMC
City Clerk
REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

PUBLIC HEARING - ADOPT RESOLUTIONS AUTHORIZING KERN COUNTY TAX COLLECTOR

TO COLLECT SEWER CHARGES AND STANDBY SEWER CHARGES FOR VACANT COMMERCIAL

BUILDINGS
SUMMARY STATEMENT:

Section 5473 Et. Seq. of the Health and Safety Code authorizes the collection of sewer fees by the County Tax Collector upon adoption of an appropriate resolution by the City Council.

Prior to considering such a resolution, it is appropriate for council to conduct a public hearing and to receive evidence and testimony for and against the proposed action from members of the public. Following the completion of the hearing, Council will then consider adoption of the proposed resolution.

RECOMMENDED ACTION

1. Conduct Public Hearing.

2. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF TAFT PROVIDING FOR COLLECTION OF SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

3. Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF TAFT PROVIDING FOR COLLECTION OF STANDBY SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE.

IMPACT ON BUDGET (Y/N): Yes, Revenue for Sewer Fund
ATTACHMENT (Y/N): Yes – Resolutions
PREPARED BY: City Clerk
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT PROVIDING

FOR COLLECTION OF SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND SAFETY CODE WHEREAS, on May 4, 2021, the City Council of the City of Taft duly passed and adopted Ordinance No. 841-21; and
WHEREAS, said Ordinance passed pursuant to sanitation and sewage system requirements set forth in the California Health and Safety Code which provides for a direct charge for the collection and treatment of sewage as follows:

Single-family units: $74.39 per home per bi-monthly period ($446.34 per year).

Multi-Family: Two, Three, and Four- Units: $55.48 per dwelling unit per bi-monthly period ($332.88 per year).

Apartment complexes $54.86 per dwelling unit per bi-monthly period ($329.16 per year).

WHEREAS, said Ordinance provides that charges for collection, removal and disposal of sewage shall be collected by the County Tax Collector; and
WHEREAS, Section 5473 Et. Seq. of the Health and Safety Code of the State of California permits the City Council to provide for the collection of such charges by the County Tax Collector; and WHEREAS, the City Council of the City of Taft hereby finds that all sewer collection and treatment charges comply with the applicable provisions of Article XIII D of the California Constitution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Taft transfers the function of collection of sewer charges for all sewer service users to the County Tax Collector pursuant to Ordinance No. 841-21, to be billed at the time of billing for property taxes. Such charges shall be in the amount provided by Ordinance No. 841-21 adopted by the City Council of the City of Taft.

PASSED, APPROVED AND ADOPTED on this 19th day of July 2022. _____________________________
Dave Noerr, Mayor
ATTEST:
____________________________
Yvette Mayfield, MMC
City Clerk
STATE OF CALIFORNIA }
COUNTY OF KERN }SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Taft at a regular meeting thereof held on the 19th day of July 2022 by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
____________________________
Yvette Mayfield, MMC
City Clerk
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT PROVIDING

FOR COLLECTION OF STANDBY SEWER CHARGES BY THE COUNTY TAX COLLECTOR PURSUANT TO SECTION 5473 ET. SEQ., OF THE HEALTH AND

SAFETY CODE
WHEREAS, on May 4, 2021, the City Council of the City of Taft duly passed and adopted Ordinance No. 841-21; and
WHEREAS, said Ordinance passed pursuant to sanitation and sewage system requirements set forth in the California Health and Safety Code provides for a direct charge for the collection and treatment of sewage as follows:

Single-family units: $74.39 per home per bi-monthly period ($446.34 per year).

Multi-Family: Two, Three, and Four- Units: $55.48 per dwelling unit per bi-monthly period ($332.88 per year).

Apartment complexes $54.86 per dwelling unit per bi-monthly period ($329.16 per year).

1. Commercial Stand-by Charge: All commercial buildings that are vacant or not conducting day to day business will be charged a rate equal to the minimum residential rates as a stand-by charge. These charges will be added to the property tax roll and shall be collected at the same time and in the same manner as ordinary City taxes are collected. It is the responsibility of the property owner to notify the City if the building becomes occupied with an operational business, removed or condemned by providing documentation to such and to request to have the charge removed from the property tax roll; any valid refund requested will be equal to the lesser of 12 months or when the building was removed or condemned.

WHEREAS, said Ordinance provides that fees for collection, removal and disposal of sewage shall be collected by the County Tax Collector; and
WHEREAS, Section 5473 Et. Seq. of the Health and Safety Code of the State of California permits the City Council to provide for the collection of such charges by the County Tax Collector; and WHEREAS, the City Council of the City of Taft hereby finds that all sewer collection and treatment charges comply with the applicable provisions of Article XIII D of the California Constitution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Taft transfers the function of collection of sewer charges for all sewer service users to the County Tax Collector pursuant to Ordinance No. 841-21, to be billed at the time of billing for property taxes. Such charges shall be in the amount provided by Ordinance No. 841-21 adopted by the City Council of the City of Taft.

PASSED, APPROVED AND ADOPTED on this 19th day of July 2022. _____________________________
Dave Noerr, Mayor
ATTEST:
_____________________________
Yvette Mayfield, MMC
City Clerk
Resolution No. ___________

STATE OF CALIFORNIA }
COUNTY OF KERN }SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Taft at a regular meeting thereof held on the 19th day of July 2022 by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
______________________________
Yvette Mayfield, MMC
City Clerk
REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

PUBLIC HEARING - LANDSCAPE MAINTENANCE DISTRICT NO. 1
SUMMARY STATEMENT:

The Public Hearing was set to allow for public comment concerning Landscape Maintenance District No. 1.

The Engineer’s Report for Landscape Maintenance District No. 1 was received at the City Council meeting on June 21, 2022. Landscape Maintenance District No. 1 consists of Tract 5574, Phase 1, Tract 5956 Phases 1-3, Tract 6114, Tract 6501 and Tract 7227, Phase 1 and 2. The parcel assessment will remain at the same level as last year ($86.00). The funds from the District will be collected by the Kern County Assessor’s Office and disbursed to the City as a special assessment.

These assessments, when collected, will go to their respective funds to pay for the maintenance and operation of the landscaping and lighting of the District.

It is recommended that the City Council adopt the resolution setting the assessments for Maintenance District No. 1 for fiscal year 2022-2023 as presented in the Engineer’s Report. If the attached resolution is adopted by City Council, the City Clerk will deliver a certified copy of the adopted resolution and a copy of the fully executed Engineer’s Report to the Kern County AuditorController, Office of Special Assessments, to complete the process.

RECOMMENDED ACTION

1. Conduct Public Hearing.

2. Motion to approve resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF TAFT SETTING THE ASSESSMENT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1.

IMPACT ON BUDGET (Y/N): Yes, Revenue for Landscape District ATTACHMENT (Y/N): Yes – Resolution
PREPARED BY: City Clerk
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT SETTING THE ASSESSMENT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1.

WHEREAS, the City of Taft is a municipal corporation duly created and existing pursuant to the Constitution and laws of the State of California; and
WHEREAS, the Landscaping and Lighting Act of 1972 requires the annual assessment of existing Districts; and
WHEREAS, the City approved Landscape Maintenance District No.1 on June 15, 1993 in accordance with the Landscape and Lighting Act of 1972 as found in the California Streets and Highways Code Section 22500 et seq. (the Act); and
WHEREAS, Landscape Maintenance District No. 1 was formed for the purpose of providing funding for the maintenance of certain landscaping located along the north side of “A” Street, beginning approximately six hundred feet (600’) west of Hillard Street and running in a westerly direction, and an area along both sides of Terrace Dr. north of “A” Street when developed; and
WHEREAS, the flat rate landscape assessment fee has been levied against all parcels in Tract 5574 Phase 1, Tract 5956 Phases 1-3, Tract 6114, Tract 6501 and Tract 7227, Phase 1 and 2; and WHEREAS, the City Council is required to adopt a resolution describing any new improvements or changes to the District; and
WHEREAS, the City Engineer has prepared and filed the Engineer’s Report with the City; and WHEREAS, the City has provided proper notice for the public hearing in accordance with Sections 22552 and 22553 of the California Streets and Highways Code; and WHEREAS, at this appointed time and place the City Council conducted a public hearing pursuant to Section 22629 of the California Streets and Highways Code; and WHEREAS, the maintenance district has been formed pursuant to the Landscaping and Lighting Act of 1972, and has been brought into compliance with Proposition 218; and NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Taft, does hereby find, resolve, determine and order as follows:

Section 1. The City Council hereby approves the Engineer’s Report.

Section 2. The City Council hereby approves the adoption of an assessment for the Fiscal Year 2022- 2023 as described in the Engineer’s Report incorporated herein by reference.

Section 3. The City hereby directs the City Clerk to immediately, and by not later than August 10, 2022, file the Engineer’s Report and this resolution, or certified copy thereof, with the County Auditor for entry in the County assessment roll.

PASSED, APPROVED, AND ADOPTED this 19th day of July 2022. ______________________________
Dave Noerr, Mayor
ATTEST:

Yvette Mayfield, MMC
City Clerk
Resolution No.

STATE OF CALIFORNIA}
COUNTY OF KERN } SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, California, do hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:

AYES: COUNCIL MEMBER:

NOES: COUNCIL MEMBER:

ABSENT: COUNCIL MEMBER:

ABSTAIN: COUNCIL MEMBER:

Yvette Mayfield, MMC
City Clerk

TAFT CITY COUNCIL/SUCCESSOR AGENCY

MINUTES
JUNE 21, 2022
__________________________________________________________________________________________________________________ REGULAR MEETING 6:00 P.M.

The June 21, 2022, regular joint meeting of the Taft City Council/Taft Successor Agency, held in the Council Chamber at Taft City Hall, 209 East Kern Street, Taft, CA 93268, was opened by Mayor Dave Noerr at 6:01 PM. The Pledge of Allegiance was led by Council Member Josh Bryant, followed by an invocation given by Council Member Ed Whiting.

PRESENT: Mayor Dave Noerr and Mayor Pro Tem Orchel Krier Council Members Josh Bryant and Ed Whiting
City Manager Craig Jones and City Attorney Jason Epperson Deputy City Clerk Darnell Porter
ABSENT: Council Member Jeff Eveland

1. PUBLIC HEARING – TO RECEIVE PUBLIC INPUT REGARDING MILITARY EQUIPMENT USE POLICY PURSUANT TO ASSEMBLY BILL 481 AND
CONSIDERATION OF ADOPTION OF ORDINANCE ADDING CHAPTER 13 TO

TITLE VIII OF THE TAFT CITY CODE
The public hearing was opened at 6:04 PM to receive input from the public, seeing none, the public hearing was closed.

Motion: Moved by Bryant, seconded by Krier to approve and amend the City of Taft Municipal Code entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TAFT, CALIFORNIA ADDING CHAPTER 13 TO TITLE VIII OF THE

TAFT CITY CODE RELATING TO THE ADOPTION OF A MILITARY
EQUIPMENT USE POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481 for first reading by title only and reading of such be waived.

AYES: Krier, Bryant, Whiting, Noerr
PASSED: 4/0

2. PRESENTATION BY TERESA BINKLEY FINANCE DIRECTOR – 2021/2022 BUDGET
Finance Director Binkley, attending via Zoom, gave a detailed presentation on the budget, mentioning that due to the closure of the MCCF the city has experienced a loss of revenue prompting funds to be borrowed from capital reserves, she also mentioned that once we start receiving revenue from Measure A, that will replace half of the loss from the MCCF.

3. APPROVAL OF FINAL BUDGET FOR FISCAL YEAR 2021-2022 AND PROPOSED BUDGET FOR FISCAL YEAR 2022-2023
Motion: Moved by Bryant, seconded by Krier to adopt a resolution entitled A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT

ADOPTING THE CITY OF TAFT FINAL BUDGET FOR FISCAL YEAR
2021-2022 AND PROPOSED BUDGET FOR THE FISCAL YEAR 2022- 2023. (Resolution No. 4151-22)
AYES: Krier, Bryant, Whiting, Noerr
PASSED: 4/0

4. CITIZEN REQUESTS/PUBLIC COMMENTS
City of Taft Council/Successor Agency Meeting
Minutes
June 21, 2022

Dr. Kathy Orrin thanked the City Council for their continued support of the Taft Chamber of Commerce and spoke about upcoming events.

5. COUNCIL STATEMENTS (NON-ACTION)
Mayor Noerr thanked Binkley and staff for their hard work on the budget and expressed his concerns on rising gas prices and inflation.

Council Member Whiting also thanked Binkley and staff for their hard work on the budget.

Council Member Bryant thanked citizens for supporting Measure A and encouraged everyone to watch the Taft Brass Band at the Oilworker Monument on Tuesday evenings.

Mayor Pro Tem Krier thanked Binkley and staff for their hard work on the budget and voiced his concerns on inflation.

6. DEPARTMENT REPORTS
There were none.

7. CITY MANAGER STATEMENTS
There were none.

8. CITY ATTORNEY STATEMENTS
There were none.

9. FUTURE AGENDA REQUESTS
There were none.
******************************************************************************************* CONSENT CALENDAR ITEMS 10-17
Motion: Moved by Whiting, seconded by Bryant to approve consent calendar items 10-

17. AYES: Krier, Bryant, Whiting, Noerr
PASSED: 4-0

10. MINUTES
June 7, 2022 regular
Recommendation – Approve as submitted.

11. PAYMENT OF BILLS
Warrant# 6/8/22 Check No. 96393-96455 $ 253,456.22
Recommendation – Approve payment of the bills.

12. APPROVE DONATION OF 501 & 511 NORTH STREET (APN’s 031-070-05, 06, 07 & 08) PROPERTIES TO OILDORADO, INC. FOR PRESERVATION OF THE PROPERTY

AND USES OF THE PROPERTY THAT PROMOTE THE HISTORICAL TRADITIONS City of Taft Council/Successor Agency Meeting
Minutes
June 21, 2022

AND HERITAGE OF THE CITY
Recommendation – Motion to adopt a resolution entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF TAFT APPROVING A PROPERTY DONATION AND

TRANSFER AGREEMENT BY AND BETWEEN THE CITY OF TAFT AND OILDORADO, INC., AUTHORIZING THE MAYOR TO IMPLEMENT SUCH PROPERTY DONATION

AND TRANSFER AGREEMENT AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. (Resolution No. 4152-22)

13. LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 1 ENGINEERS REPORT Recommendation –
Motion to: 1) receive 2022-2023 Engineer’s Report for Landscape Maintenance District No. 1; and
2) adopt a resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF TAFT DECLARING ITS INTENTION TO REVIEW THE

IMPROVEMENTS AND FEES FOR LANDSCAPE AND LIGHTING
MAINTENANCE DISTRICT NO. 1 AND SET THE PUBLIC HEARING FOR JULY 19, 2022. (Resolution No. 4153-22)

14. CANCELLATION OF JULY 5, 2022, CITY COUNCIL MEETING
Recommendation – Motion to approve the cancellation of the July 5, 2022, City Council Meeting.

15. SPECIAL EVENT PERMIT AND ENCROACHMENT PERMIT FOR THE TAFT 4TH OF

JULY FIREWORKS SPECTACULAR BY TAFT CHAMBER OF COMMERCE ON SATURDAY, JULY 2, 2022
Recommendation – Motion to approve a resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT APPROVING SPECIAL EVENT PERMIT NO. 2022-04 AND AN ENCROACHMENT PERMIT FOR THE TAFT FIREWORKS

SPECTACULAR BY TAFT CHAMBER OF COMMERCE ALONG THE RAILS TO TRAILS, AND THE CLOSURE OF SUPPLY ROW AND RAILS TO TRAILS FROM 2ND TO 4TH STREETS, AND 6TH STREET FROM SUPPLY ROW TO MAIN STREET ON SATURDAY, JULY 2, 2022. (Resolution No. 4154-22)

16. PROFESSIONAL SERVICES AGREEMENT AMENDMENT #2 WITH RICK ENGINEERING COMPANY FOR THE SB2/PGP, LEAP, AND REAP PLANNING GRANT PROJECTS – DOWNTOWN TAFT SPECIFIC PLAN AND ZONING ORDINANCE

AMENDMENT TO ACCELERATE HOUSING PRODUCTION
Recommendation – Motion to amend the Professional Services Agreement with Rick Engineering Company for the Downtown Taft Specific Plan for additional graphics work to develop 3D renderings of development scenarios, increasing the overall project budget $10,000, in an updated amount not to exceed $268,310

17. ADOPT A RESOLUTION SUPPORTING AN APPLICATION TO THE BOARD OF STATE AND COMMUNITY CORRECTIONS. (BSCC) FOR STANDARDS AND TRAINING FOR CORRECTIONS (STC) TRAINING COSTS.

Recommendation – Motion to approve resolution entitled A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF TAFT SUPPORTING AN APPLICATION TO THE CALIFORNIA

BOARD OF STATE COMMUNITY CORRECTIONS (BSCC) TO RECEIVE FUNDS FOR City of Taft Council/Successor Agency Meeting
Minutes
June 21, 2022

TRAINING UNDER THE STANDARDS FOR TRAINING FOR CORRECTIONS (STC) PROGRAM. (Resolution No. 4155-22)
********************************************************************************************* At 7:12 PM the regular meeting was recessed to closed session.

CLOSED SESSION
A. ANNUAL PERFORMANCE EVALUATION
Government Code Section 54957 – City Attorney
B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(b) – one (1) potential case C. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9 (a) – Case # BCV-20-100096 D. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Government Code Section 54956.8 – APN 220-280-16

ADJOURNMENT
 The City Council met in closed session to discuss those items agendized for closed session discussion. The City Council gave direction to staff and negotiators. No other reportable action was taken by the City Council.

ADJOURNMENT - With no further business to conduct the meeting was adjourned at 7:48 PM. __________ ____________
Darnell Porter, CMC Dave Noerr
Deputy City Clerk Mayor

REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT AUTHORIZING BANK CARD

SERVICES
SUMMARY STATEMENT:

On September 18, 2018, City Council adopted Resolution No. 3919-18 authorizing (23) credit cards to be issued. Since then, changes have occurred in positions and positions responsibility, requiring that this resolution be updated to reflect these changes and reducing the number of authorized cards to (20). In adopting the proposed resolution, it will repeal Resolution 3919-18.

Councilmember Dave Noerr has requested not to have cards issued in his name.

RECOMMENDED ACTION:

Motion to adopt resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

TAFT AUTHORIZING BANK CARD SERVICES
IMPACT ON BUDGET (Y/N): No
ATTACHMENT (Y/N): Yes, Resolution and Exhibit “A”
PREPARED BY: Teresa Binkley, Finance Director
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT

AUTHORIZING BANK CARD SERVICES
WHEREAS, the City desires to obtain eleven (11) bank cards from BANK OF AMERICA (FIA) (hereinafter called "BANK") for use by certain City's officers and employees; and WHEREAS, the City intends to authorize said officers and employees to use such bank cards for and in connection with City business; and
WHEREAS, the City desires to obtain nine (9) bank cards from BANK OF AMERICA (FIA) (hereinafter called "BANK") for use by Elected Officials and City Employees in which a card is issued in their name; and
WHEREAS, the City intends to authorize said officers and employees to use such bank cards for training and travel expenditures only in connection with City business; and WHEREAS, BANK will not issue said bank cards unless the City agrees to assume full responsibility for the use of such cards, or any of them, and to pay BANK for all indebtedness incurred through the use of such cards, whether such use or indebtedness was authorized by the City.

NOW, THEREFORE, BE IT RESOLVED that Resolution Number 3919-18 dated September 18, 2018 is hereby repealed and replaced by this resolution.

BE IT FURTHER RESOLVED that the Finance Director of this City is hereby authorized, directed and empowered, in the name of this City to apply to BANK for the issuance of twenty (20) cards, and to execute such applications and agreements as BANK may require in order to accomplish the foregoing.

BE IT FURTHER RESOLVED, that the BANK is authorized to act upon this resolution until written notice of its revocation is delivered to BANK and that authority hereby granted shall apply with equal force and effect to the successors in office of the officers named herein. (Exhibit A) PASSED, APPROVED AND ADOPTED on this 19th day of July, 2022. ________________________________
Dave Noerr, Mayor
ATTEST:
______________________________
Yvette Mayfield, MM
City Clerk
STATE OF CALIFORNIA }
COUNTY OF KERN } SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Taft at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:
______________________________
Yvette Mayfield, MMC
City Clerk
Resolution __________

EXHIBIT "A"
The following (11) eleven credit cards shown below are cards that will be authorized for and in connection with City business. All cards will be issued in the name of the employee who holds these following positions. All purchases must comply with the City’s Purchase Policy, Travel Policy, Credit Card Policy, and all other policies that may apply:

1. Craig Jones, City Manager $10,000.00

2. Teresa Binkley, Finance Director $10,000.00

3. Yvette Mayfield, Municipal Records/Grants Administrator $ 2,500.00

4. Damon McMinn, Police Chief $ 5,000.00

5. Michelle Kincaid, Admin Assistant $ 2,500.00

6. Mark Staples, Dir of Planning & Develop Services $ 5,000.00

7. Lonn Boyer, Human Resources Director $ 5,000.00

8. Amber Norris, Community Service Officer $ 1,000.00

9. Taari Morgan, Community Service Officer $ 1,000.00

10. (2) Generic Cards (City of Taft), (Council Members) $ 5,000.00 each

CREDIT CARDS FOR TRAINING AND TRAVEL PURPOSE ONLY
The following (9) nine credit cards shown below are cards that will be authorized for training and travel in connection with City business only. These cards will be kept at City Hall and when needed; the employee may request his/her card. All cards will be issue in the name of the employee/elected official who holds the following positions. All purchases must comply with the City’s Purchase Policy, Travel Policy, Credit Card Policy, and all other policies that may apply:

1. Ben Mangum, City Treasurer $ 2,500.00

2. Cody Smith, Code Enforcement Officer $ 2,500.00

3. Vacant, Building Official $ 2,500.00

4. Peter Aranda, Police Lieutenant $ 2,500.00
COUNCILMEMBERS:

5. Ed Whiting $ 2,500.00

6. Josh Bryant $ 2,500.00

7. Jeff Eveland $ 2,500.00

8. Dave Noerr, (no card issued, per request) $ 2,500.00

9. Orchel Krier $ 2,500.00
REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
*SECOND READING*
City of Taft Agenda Report
____________________________________________________________________________________________________________ DATE: JULY 19, 2021
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:
2ND READING AND ADOPTION OF ORDINANCE ADDING CHAPTER 13 TO TITLE VIII OF THE

TAFT CITY CODE ADOPTING MILITARY EQUIPMENT USE POLICY PURSUANT TO ASSEMBLY BILL 481
SUMMARY STATEMENT:

Assembly Bill 481 (“AB 481”), approved by the Governor on September 30, 2021, requires law enforcement agencies to obtain approval of their Military Equipment Use Policy from their governing body and hold a public hearing regarding such policy. The policy is required to be approved and adopted by ordinance. Per the requirements of AB 481, the department’s proposed policy was posted on the city's website at least 30 days prior to this public hearing for the first reading of the ordinance.

Once the policy is approved and the Ordinance is adopted, an annual review of the policy along with a public hearing to receive public comment will be required.

RECOMMENDATION:

Motion to approve and amend the City of Taft Municipal Code entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TAFT, CALIFORNIA ADDING CHAPTER 13 TO TITLE VIII

OF THE TAFT CITY CODE RELATING TO THE ADOPTION OF A MILITARY EQUIPMENT USE POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481.

IMPACT ON BUDGET (Y/N): No
ATTACHMENT (Y/N): Yes, Ordinance, Taft Police Department Policy 710- Military Equipment Use Policy
PREPARED BY: Chief of Police
ORDINANCE NO. 847-22

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TAFT,
CALIFORNIA ADDING CHAPTER 13 TO TITLE VIII OF THE TAFT

CITY CODE RELATING TO THE ADOPTION OF A MILITARY

EQUIPMENT USE POLICY, IN ACCORDANCE WITH ASSEMBLY
BILL 481
WHEREAS, on September 30, 2021, Governor Newsom signed into law Assembly Bill (“AB”) 481 to address the funding, acquisition, and use of military equipment, as that term is defined by Government Code Section 7070(c); and
WHEREAS, AB 481 requires adoption of a military use equipment policy (“Policy”) by the City Council before the Taft Police Department (“Department”) may take action to request military equipment; seek funds (such as grants or in-kind donations) for acquiring military equipment; actually acquire military equipment, either permanently of temporarily by owning, borrowing, or leasing; collaborate with other law enforcement agencies to deploy or use military equipment in the agency’s territorial jurisdiction; use new or existing military equipment in a manner not previously subject to AB 481’s scope; solicit or respond to a proposal for, or enter into an agreement with, any person or entity to seek funds for, apply for, acquire, use, or collaborate in using military equipment; or to acquire military equipment through any other means not specifically detailed in the statute; and
WHEREAS, in accordance with AB 481, the proposed Policy was made available on the website on the Department website at least thirty (30) days prior to the public hearing by the City Council to adopt the Policy; and
WHEREAS, in accordance with AB 481, the Policy is on the agenda as an open session item at a regular meeting of the City council, and public comment on the item will be allowed in accordance with the Brown Act; and
WHEREAS, this Ordinance will be reviewed by the City Council at least annually and based on an annual military equipment report that will be submitted to the City Council pursuant to AB 481.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TAFT DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The Recitals set forth above are incorporated herein, are made findings and determination of the City Council, and are an operative part of this Ordinance.

SECTION 2. Findings. Pursuant to Government Code Section 7071(d)(1), as may be amended or renumbered from time to time, the City Council hereby makes the following findings in support of its adoption of the Policy:

A. The military equipment identified in the Policy is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

B. The proposed Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

Ordinance No. 847-22
July 19, 2022

C. If the Department purchases military equipment pursuant to the Policy, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

D. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

E. The Military Equipment Use Policy is found within the Taft Police Department Policies and Procedures as Policy 710.

F. The Military Equipment Use Policy, set forth as Policy 710 in the Taft Police Department Policies and Procedures, was published on the Taft Police Departments internet website on May 16, 2022.

G. Policy 710 of the Taft Police Department Manual was presented to the City Council on June 21, 2022.

SECTION 3. Adoption of the Military Equipment Policy. The City Council hereby makes the following determinations:

A. The military equipment identified in Taft Police Department Policy 710 is necessary because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

B. The Military Equipment Use Policy, as set forth in Taft Police Department Policies and Procedures Policy 710, will safeguard the public’s welfare, safety, civil rights, and civil liberties.

C. The Military Equipment Use Policy, as set forth in Taft Police Department Policy and Procedures Policy 710, is approved and adopted.

D. A copy of Taft Police Department Policy 710 may be obtained on the City of Taft website at Military Equipment Policy - Taft CA (cityoftaft.org), from the Taft Police Department or from the City Clerk.

SECTION 4. CEQA Determination. The City Council finds and determines that this Ordinance is not a “project” for the purposes of the California Environmental Quality Act (CEQA), as the ordinance does not have the potential for resulting in either a direct physical change in the environment, or a reasonably indirect physical change in the environment. As such, the adoption of this ordinance is not subject to CEQA.

SECTION 5. Severability. If any section or provision of this Ordinance is for any reason held to be invalid, unconstitutional, illegal, or unenforceable by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, then such section or provision shall be severed and shall be inoperative, and the remainder of this Ordinance shall remain in full force and effect.

SECTION 6. Effective Date and Publication. This ordinance shall take effect thirty (30) days after the date of its adoption, and within fifteen (15) days after its adoption shall be published at least once in a newspaper of general circulation, published, and circulated in the City of Taft together with the names of members of the City Council voting for and against same.

Ordinance No. 847-22
July 19, 2022

PASSED AND ADOPTED on this 19th day of July, 2022.
___________________________
Dave Noerr, Mayor
Attest:
_____________________________________
Yvette Mayfield, MMC
City Clerk
Approved as to form:
_____________________________________
Jason Epperson, City Attorney
STATE OF CALIFORNIA }
COUNTY OF KERN } SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, do hereby certify that the foregoing Ordinance had its first reading on June 21, 2022, and had its second reading on July 19, 2022, and was passed by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
___________________________________
Yvette Mayfield, MMC
City Clerk

MILITARY EQUIPMENT INVENTORY

1. Specialized Firearms and Ammunition
Description, quantity, capabilities, and purchase cost:

Rifles: Guns that are fired from shoulder level, thereby have a greater accuracy over a long distance.

Colt AR-15 A2-5.56mm Patrol use, Quantity 15, Cost: $800 each.

Colt Commando R933 5.56mm Patrol use, Quantity 5, Cost $1100 each.

FN SCAR 16-5.56mm Patrol use, Quantity 2, Cost $1000 each.

Stag Arms AR15 5.56mm Patrol use, Quantity 1, Cost: Acquired from Asset Management.

DPMS Model A-15-5.56mm Patrol use, Quantity 1, Cost: $725.

Olympic Arms SGW model CAR-AR .223/5.56mm Patrol use,
Quantity 1, Cost $800.

Smith & Wesson model M&P-15 .223/5.56mm Patrol use, Quantity 1, Cost: $1500.

Olympic Arms AR15 model PCR 98 .226/5.56mm Patrol use, Quantity 2, Acquired from MCCF closure.

Colt M16A1-5.56mm Returning to Military, Quantity 3, Acquired through Military 1033 program.

GM Hydramatic M16A1 5.56mm Returning to Military, Quantity 3, Acquired through Military 1033 program.

H&R M16A1 5.56mm Returning to Military, Quantity 3,
Acquired through Military 1033 program.

Colt 9MM SMG 9mm, for tactical use only, Quantity 7, Acquired through trade with California City PD on ATF Form 10.

Ammunition:

The Winchester Q3131A1, 5.56mm 55-grain full metal jacket is the primary duty ammunition for all 5.56mm rifles deployed during potential lethal encounters. The Winchester M855

5.56mm, 62-grain full metal jacket penetrator is the primary training ammunition for the department for all 5.56mm rifles. The Winchester USA 124-grain 9mm Lugar, full metal jacket is both the primary duty and training ammunition for the 9mm SMG.

Winchester Q3131A1 5.56mm 55-grain full metal jacket, Quantity: approximately 19,800 rounds, Cost: $350 per 500 round case.

Winchester M855 5.56mm, 62-grain full metal jacket, Quantity: 5,900 rounds, Cost:
$325 per 500 round case.

Winchester USA 124-grain 9mm Lugar full metal jacket, Quantity: 5,760 rounds, Cost; $357 per 1000 round case.

Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.

Authorized Use
Only members that have successfully completed department rifle training are authorized to use a rifle. (Policy 432)
Lifespan
Rifle- 15 years
Ammunition- Until expended
Fiscal Impact
Rifle annual maintenance- Approximately $50 for each rifle.

Winchester Q3131A1 5.56mm 55-grain ammunition- Annual cost: $0-$2,000.

Winchester M855 5.56mm, 62-grain ammunition- Annual cost: $0-$3,000.

Winchester USA 124-grain 9mm Lugar ammunition- Annual cost: $0- $4,000.

Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle.

Additionally, all members that operate any rifle are required to complete/pass a range qualification every six months. (Twice yearly)
Legal and Procedural Rules
Use is established under Policy 432, of the Taft Police Department. It is the policy of the Taft Police Department to utilize rifles only for law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

2. Projectile Launch Platforms and associated munitions.

Description, quantity, capabilities and purchase cost.

37 MM Launchers and Rounds: 37MM launchers are utilized by department personnel as a less lethal tool to launch impact rounds.

Defense Technology, L8-37MM MULTI-SHOT LAUNCHER, cost: Acquired by MCCF closure, quantity: 4. The 37MM, Multi-shot launcher is a tactical Multi-shot launcher.

Defense Technology, 37MM SINGLE SHOT LAUNCHER, cost: Acquired by MCCF closure, quantity: 1. The 37MM, Single-shot launcher is a tactical Single-shot launcher.

Federal Laboratories, 37MM SINGLE SHOT LAUNCHER, cost: Acquired by MCCF closure, quantity: 1. The 37MM, Single-shot launcher is a tactical Single-shot launcher.

Defense Technology, 37MM Foam Baton, #1178, cost: Acquired by MCCF closure, quantity: 30.

A less lethal 37mm foam projectile fired from a 37mm launcher. The 37mm Foam Baton round provides accurate and effective performance when fired from the approved distance.

Defense Technology, 37MM Rubber Baton, #1177, cost: Acquired by MCCF closure, quantity:

35. A less lethal 37mm rubber projectile fired from a 37mm launcher. The 37mm Rubber Baton round provides accurate and effective performance when fired from the approved distance.

Defense Technology, 37MM Rubber Ball, #1199, cost: Acquired by MCCF closure, quantity: 60.

A less lethal 37mm rubber projectile fired from a 37mm launcher. The 37mm Rubber Baton round provides accurate and effective performance when fired from the approved distance.

Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:

1. Self-destructive, dangerous and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

Training
Sworn members utilizing 37mm less lethal chemical agents or impact rounds are trained in their use by POST certified less lethal instructors.

Lifespan
20-25 years.

Fiscal Impact
No annual cost.

Legal and Procedural Rules
It is the policy of the Taft Police Department to utilize the 37mm for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the department’s use of force.

3. Bean Bag
Description, quantity, capabilities, and purchase cost:

Less Lethal Shotgun: Less lethal Shotgun is used to deploy the less lethal Safari land 12-guage Drag #3027 Stabilized Beanbag Round.

REMINGTON LESS-LETHAL SHOTGUN, Cost: Acquired by MCCF closure, quantity: 2. The Remington 870 Less Lethal shotgun is used to deploy the less lethal Safari land 12-guage Drag #3027 Stabilized Beanbag Round. The beanbag round can be used up to a distance of 75 feet.

The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principal of de-escalation. 12 GAUGE SAFARILAND BEANBAG ROUND, Cost; $5 each, quantity 12. Less lethal 2.4 inch 12- gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). Safari land Beanbag Rounds are discharged from a dedicated 12- gauge shotgun that is distinguishable by an orange butt stock and orange fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. Effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.

Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:

1. Self-destructive, dangerous and/or combative individuals.

2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

Lifespan
No expiration date.

Fiscal Impact
Safari land Beanbag Round-Annual cost: $300.

Training
All officers are trained in 12 gauge less lethal shotgun as a less lethal option in-service training.

Legal and Procedural Rules
It is the policy of the department to utilize the less lethal shotgun for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the department’s use of force.

REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

PROFESSIONAL SERVICES AGREEMENT WITH RYKER DESIGNS FOR DESIGN OF DETAILED

PLANS AND SPECS FOR POLICE DEPARTMENT BUILDING RENOVATIONS SUMMARY STATEMENT:

The interior of the building housing the Police Department is in poor condition and has had no real improvements or upgrades since the early 1990’s when it was built, except for the lighting that was updated just under a year ago through a grant to the City. There is significant wear and tear of all surfaces in the building due to aging and renovations are severely needed. The renovations needed are all floorings and window coverings need replacement, along with paint throughout the building and some needed bathroom and breakroom improvements. It has been the intent of the City to make said improvements, and some money has been budgeted in past years to do so. However, the Government Code requirements for bidding out such a project has left staff unable to bid out improvements due to a lack of the detailed plans and specs required for the bid package.

The renovations that the Police Department is looking to make are the replacement of all floorings and window coverings, painting of all interior wall and ceiling surfaces along with some needed improvements to the bathroom and breakroom areas to better accommodate staff.

In order to get the detailed plans and specs to meet the bidding requirements, staff reached out to Ryker Designs and obtained a proposal. His price will be based on an hourly time and material and not to exceed $24,500 for these services.

RECOMMENDED ACTION
Motion to approve an agreement with Ryker Designs in an amount not to exceed $24,500 to prepare the detailed plans and specs required to bid out Police Department building renovations and authorize the Mayor to execute said agreement.

IMPACT ON BUDGET (Y/N): Yes, Capital Reserves
ATTACHMENT (Y/N): Yes – Draft Agreement and Proposal
PREPARED BY: Damon McMinn, Chief of Police

PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT (the “Agreement”) made this 19th day of July, 2022, by and between the CITY OF TAFT (“City”) and Ryker Designs (“Consultant”),

W I T N E S SETH
WHEREAS, City wishes to hire Consultant to provide City of Taft Police Department Building Improvement Plans as described in exhibit "A" attached hereto and by this reference made a part hereof (the “Services”) and Consultant is agreeable thereto under the terms and conditions described hereinafter.

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth hereinafter, the parties agree as follows:
• The parties incorporate the foregoing recitals as if fully set forth herein verbatim; and • City hereby contracts with Consultant to perform the Services and Consultant agrees to provide the Services under the terms and conditions hereinafter described. • Consultant shall provide plans of the City of Taft Civic Center at a cost not to exceed $17,475.

Consultant’s compensation shall be based as described in Exhibit “A” attached hereto and by this reference made a part hereof. City shall pay Consultant based on invoices submitted by Consultant no more often than monthly. The invoices shall contain a description of the Services performed during the period referred to in the invoice, and the number of hours expended, provided, however, that no such invoice shall include charges for Services not yet performed. Each invoice shall contain such other information and documentation as City may reasonably require from time to time. City Manager or his designated representative, shall have the right of reasonable review of each invoice and, at the conclusion of the review, City Manager shall place the matter on the agenda for the next available City Council meeting for consideration by the City Council. Upon approval of each such invoice by the City Council, same shall be paid in the regular cycle of payments made by City for other bills and claims. • In addition to the compensation payable to Consultant, City agrees to pay certain costs that may be incurred by Consultant (the “Costs”). These Costs may include hardware, software, peripherals and procured services, provided, however, that no Costs shall be incurred without City’s prior written consent. All Costs billed in any invoice shall be itemized and describe how Costs were incurred and include copies of receipts where applicable. City shall have the right of reasonable review and approval of the Costs.
• Consultant shall complete the Services of individual Services within the time frames agreed upon by the City and Consultant from time to time during the course of this Agreement. • Consultant shall indemnify, defend and hold harmless City, its officers, Councilpersons, employees, and agents from any and all claims, liability, expenses, and damages, including attorney’s fees, arising out of or in any way connected with any act or omission by or on behalf of Consultant.

Notwithstanding the foregoing, to the extent that City provides Consultant with information, records, or other documents necessary or convenient for Consultant to complete the Services, Consultant may rely on the accuracy and completeness of same (except as otherwise advised by the City in writing) and Consultant shall have no liability for same to the extent that they are incomplete or inaccurate. • Without limiting Consultant’s obligations under Paragraph 5 of this Agreement, Consultant shall obtain and maintain during the life of this Agreement:

Comprehensive liability insurance coverage, including premises – operations, products/completed operations, broad form property damage and blanket contractual liability, in an amount not less than $1 million per occurrence, automobile liability for owned, hired, and non-owned vehicles; and Consultant shall provide City with appropriate certificates of insurance and endorsements for all of the foregoing in which City, its officers, Councilpersons, employees, and agents are named as additional insureds and specifically designating all such insurance as “primary,” excluding professional liability insurance, and providing further that same shall not be terminated nor coverage reduced without ten (10) days prior written notice to City.
• Consultant shall not assign its interest herein or any part thereof and any attempted assignment shall be void. All documents, reports, information, data, exhibits, maps, tables, charts, and all other matters generated by Consultant shall be the property of City and shall be delivered to City upon demand without additional costs or expense to City. In the event Consultant needs to access City files in the performance of its Services, Consultant shall first receive authorization from the City Manager to do so.
• Either party may terminate this Agreement at any time by giving the other party ten (10) days prior written notice, provided that in such event Consultant shall be entitled to payment for those eservices rendered through the date of termination, provided satisfactory to City. • All notices required to be given under this Agreement or by law shall be in writing and shall be deemed received by the party to whom directed if personally served or if faxed, emailed, or when deposited in the United States mail, postage prepaid, first class, faxed or emailed or addressed as follows:

If to City: If to Consultant:

City Manager Darren Ryker
209 E. Kern Street Ryker Designs
Taft, California, 93268
Fax – (661) 765-2480 (661) 932-3380
[email protected] [email protected]
Any party may change its address or fax number by giving notice to the other party in the manner herein described.
• Time is of the essence with regard to each covenant, condition and provision of this Agreement. • This Agreement shall be governed by and construed in accordance with the laws of the State of California.
• This Agreement constitutes the entire Agreement between the parties with regard to the subject matter herein and supersedes all prior oral and written agreements and understandings between the parties with respect thereto.
• This Agreement may not be altered, amended, or modified except by a writing executed by duly authorized representatives of all parties.
• In the event any action or proceeding is instituted arising out of or relating to this Agreement, the prevailing party shall be entitled to its reasonable attorneys’ fees and actual costs. • This Agreement may be executed in counterparts and the respective signature pages for each party may thereafter be attached with the body of this Agreement to constitute one integrated Agreement which is as fully effective and binding as if the entire document had been signed at one time. • Notwithstanding any provision to the contrary, this Agreement shall not become effective and shall not be binding as to any party until all of the parties have executed this Agreement. • Waiver by a party of any provision of this Agreement shall not be considered a continuing waiver or a waiver of any other provision, including the time for performance of any such provision. • If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and not be affected, impaired, or invalidated thereby. • City and Consultant each acknowledge that each party and their respective legal counsel have reviewed this Agreement and agree that this Agreement is the product of negotiations between the parties. This Agreement shall be interpreted without reference to the rule of interpretation of documents that uncertainties or ambiguities therein shall be determined against the party so drafting the Agreement.
• Consultant agrees to take all reasonable measures to protect City’s computer systems from computer viruses including, without limitation, installation and maintenance of the latest versions of anti-virus software. Any computer virus existing as of the date of this Agreement may be removed by Consultant at City’s request and at City’s sole cost and expense.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first herein above written.

CITY OF TAFT CONSULTANT
____________________________ ______________________________ Dave Noerr, Mayor Darren Ryker, Ryker Designs
ATTEST:
____________________________
Yvette Mayfield, MMC
City Clerk
APPROVED AS TO FORM:
____________________________
Jason Epperson, City Attorney

yker esign
Scope of Work for the City of Taft Police Dept.:

Ryker Design will provide plans of the City of Taft Police Dept.

Building at a cost not to exceed $24,500
Drafting for the City of Taft Police Dept.
r d
R
Darren Ryker
[email protected]
(661) 932-3380
REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

DESIGNATION OF CONFLICT OF INTEREST STATEMENT FILERS AND ASSIGNMENT OF DISCLOSURE CATEGORIES PURSUANT TO THE POLITICAL REFORM ACT OF 1974 SUMMARY STATEMENT:

The Political Reform Act requires every local government agency to review its conflict of interest code biennially, as the code tells public officials, governmental employees and consultants what financial interests they must disclose on their Statement of Economic Interests Form 700. The Act also requires the City to enumerate specific City positions, other than those specified in Government Code §87200, which involve making or participating in making decisions which have a reasonable material effect on an economic interest, and to designate for each position the specific types of investments, business positions, interests in real property and sources of income which are reportable based on the scope of the decision-making authority of the position.

Staff has reviewed current positions held within the city and designated the categories of reporting based on the duties of each position. The attached resolution is now being brought forth to the Council for review and adoption.

RECOMMENDED ACTION
Motion to accept the 2022 Local Agency Biennial Notice and adopt a resolution entitled A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT DESIGNATING POSITIONS

REQUIRED TO FILE CONFLICT OF INTEREST STATEMENTS PURSUANT TO THE POLITICAL REFORM ACT OF 1974, ASSIGNING DISCLOSURE CATEGORIES AND REPEALING AND REPLACING RESOLUTION NO. 4035-20.

IMPACT ON BUDGET (Y/N): No
ATTACHMENT (Y/N): Yes – Resolution, 2022 Local Agency Biennial Notice PREPARED BY: City Clerk
RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAFT DESIGNATING

POSITIONS REQUIRED TO FILE CONFLICT OF INTEREST STATEMENTS PURSUANT TO THE POLITICAL REFORM ACT OF 1974, ASSIGNING DISCLOSURE CATEGORIES AND REPEALING AND REPLACING RESOLUTION NO. 4035-20
WHEREAS, the Political Reform Act, Government Code §81000 et seq. requires state and local agencies to adopt and promulgate a conflict of interest code; and WHEREAS, the Taft City Council adopted Taft City Code Title 1, Chapter 16, Sections 1-2, as the Conflict of Interest Code for the City of Taft; and WHEREAS, the Political Reform Act requires certain City Officials, specified in §87200 of the California Government Code, to file economic disclosure forms (“Form 700”) and abstain from making or participating in making governmental decisions which have a reasonably foreseeable material effect on an economic interest; and
WHEREAS, the Political Reform Act also requires the City to enumerate specific City positions, other than those specified in Government Code §87200, which involve making or participating in making decisions which have a reasonable material effect on an economic interest, and to designate for each position the specific types of investments, business positions, interests in real property and sources of income which are reportable based on the scope of the decision-making authority of the position; and WHEREAS, the Political Reform Act requires every local government agency to review its conflict of interest code biennially, as the code tells public officials, governmental employees and consultants what financial interests they must disclose on their Statement of Economic Interests Form 700.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Taft does hereby find, determine and declare as follows:

1. The City of Taft adopted Taft City Code Title 1, Chapter 16, Sections 1-2, as the Conflict of Interest Code for the City of Taft.

2. Per the adopted Conflict of Interest Code, designated employees shall be established by resolution.

3. The City designates the positions detailed in attached Exhibit A as positions required by law to file a Statement of Economic Interest Form 700 and Exhibit B sets the disclosure categories.

4. Resolution No. 4035-20 is hereby repealed and replaced.

5. Designated employees shall file their Statements of Economic Interests Form 700 with the City Clerk. Statements for all designated employees will be retained by the City and be available for inspection and reproduction pursuant to Government Code §81008.

PASSED, APPROVED AND ADOPTED on the 19th day of July, 2022.

Dave Noerr, Mayor
ATTEST:

Yvette Mayfield, MMC
City Clerk
Resolution No. _________

STATE OF CALIFORNIA }
COUNTY OF KERN }SS
CITY OF TAFT }
I, Yvette Mayfield, City Clerk of the City of Taft, California, do hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:

AYES: COUNCIL MEMBER:

NOES: COUNCIL MEMBER:

ABSENT: COUNCIL MEMBER:

ABSTAIN: COUNCIL MEMBER:

Yvette Mayfield, MMC
City Clerk
Resolution No. _________

EXHIBIT A

DESIGNATED POSITIONS

POSITIONS DISCLOSURE CATEGORIES
Administrative Assistant to the City Manager 2
Administrative Assistant to the Police Chief 2
Building Official/Compliance Officer 1
City Clerk 1
City Engineer (contract) 1
Code Enforcement Officer 1
Director of Finance 1
Director of Human Resources/Assistant City Manager 1
Director of Planning and Development Services 1
Fleet Manager 2
Municipal Records Administrator/Grant Administrator 1
Police Chief 1
Police Lieutenant 1
Public Works Director 1
Public Works Supervisor 2,3,4
Wastewater Facility Manager (contract) 1
**Consultants and General Contractors 2,3,4
The Mayor, Members of the City Council, Members of the Planning Commission, the City Manager, City Treasurer and City Attorney are not subject to the City’s code, but are subject to the disclosure requirements of the Political Reform Act Code §87200 et. Seq.

CONSULTANTS
** The City Manager may determine in writing that a particular consultant, although a “designated position”, is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements. Such written determination shall include a description of the consultant’s duties, and based up that description, a statement of the extent of disclosure requirements.

The City Manager’s determination is a public record and shall be retained for public inspection as set forth in the Political Reform Act.

Resolution No. _________

EXHIBIT B

DISCLOSURE CATEGORIES
The following disclosure categories identify the types of investments, business entities, sources of income, or real property, which the Designated Positions must disclose for each disclosure category to which he or she is assigned.

Category 1
Full Disclosure - Persons in this category shall disclose all interests in real property within the City’s jurisdiction (definition of “interests in real property” as used herein can be found in the Political Reform Act) as well as investments, business positions and sources of income, including gifts, loans and travel payments. (Form 700 -All schedules A through E) Category 2
All investments, business positions and income, including gifts, loans, and travel payments, from sources that provide leased facilities, goods, equipment, vehicles machinery services, including training or consulting services, of the type utilized by the City. (Form 700- schedules A, C, D, E) Category 3
All investments, business positions and income, including gifts, loans and travel payments, from sources that are subject to the regulatory, permit, or licensing authority of, or have an application for a license or permit pending before the City. (Form 700- schedules A, C, D, E) Category 4
All investments, business positions and income, including gifts, loans and travel payments, from sources that are engaged in land development, construction or the acquisition, or sale of real property within the jurisdiction of the City. (Form 700- schedules A, C, D, E) www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)

2022 Local Agency Biennial Notice
Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
q An amendment is required. The following amendments are necessary:
(Check all that apply.)
¡ Include new positions
¡ Revise disclosure categories
¡ Revise the titles of existing positions
¡ Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
¡ Other (describe)
q The code is currently under review by the code reviewing body. q No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2022, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.

REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

ANNUAL AUDITED FINANCIAL STATEMENTS FOR FY2018-2019
SUMMARY STATEMENT:

Attached is the Annual Audited Reports for the years ended June 30, 2019, which includes the Annual Comprehensive Financial Report (ACFR), Wastewater Treatment Plant Financial Statements (WWTP). Since the City did not expend more than $750,000 in Federal monies the City was not required to prepare a Single Audit.

RECOMMENDED ACTION
Motion to receive and file the Annual Audited Comprehensive Financial Reports for the year ended June 30, 2019.

IMPACT ON BUDGET (Y/N): No
ATTACHMENT (Y/N): YES, Annual Comprehensive Financial Reports dated June 30, 2019
PREPARED BY: Teresa Binkley, Finance Director

CITY OF TAFT

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2019
i

CITY OF TAFT

ANNUAL FINANCIAL REPORT
JUNE 30, 2019

TABLE OF CONTENTS

FINANCIAL SECTION

Independent Auditor’s Report ................................................................................................................... 1 Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ................................................................................................................ 5 Statement of Activities ..................................................................................................................... 6 Governmental Funds Financial Statements
Balance Sheet ................................................................................................................................... 8 Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position ................................................................................... 11 Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 12 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities ................................................................................................. 15 Proprietary Funds Financial Statements
Statement of Net Position .............................................................................................................. 16 Statement of Revenues, Expenses, and Changes in Fund Net Position ......................................... 18 Statement of Cash Flows ............................................................................................................... 20

Fiduciary Funds Financial Statements
Statement of Net Position .............................................................................................................. 22 Statement of Changes in Net Position ........................................................................................... 23 Notes to Basic Financial Statements ................................................................................................. 25 Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ......................................................................................... 61 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – WWTP Special Revenue Fund .............................................................. 62 Schedule of Plan’s Proportionate Share of Net Pension Liability and Related Ratios as of Measurement Date – Combined Plan .................................................................................. 63 Schedule of Pension Contributions – Combined Plan ................................................................... 65 Other Supplemental Information
Major Fund Budgetary Comparison Schedule
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – WWTP Capital Projects Fund ............................................................... 68

ii

CITY OF TAFT

ANNUAL FINANCIAL REPORT
JUNE 30, 2019
TABLE OF CONTENTS (Continued)
Non-Major Governmental Funds
Combining Balance Sheet .............................................................................................................. 70 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................................ 72 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual –
Traffic Safety Special Revenue Fund ............................................................................... 74 Gas Tax Special Revenue Fund ........................................................................................ 75 Inmate Welfare Trust Special Revenue Fund ................................................................... 76 TDA Special Revenue Fund ............................................................................................. 77 Asset Forfeiture Special Revenue Fund ............................................................................ 78 Landscape Assessment District Special Revenue Fund .................................................... 79 Crime Prevention Special Revenue Fund ......................................................................... 80 Traffic Congestion Relief Special Revenue Fund ............................................................. 81 Private-Purpose Trust Funds and Agency Funds
Combining Statement of Net Position - Private-Purpose Trust Funds .......................................... 85 Combining Statement of Changes in Net Position -
Private- Purpose Trust Funds .................................................................................................. 86 Statement of Assets and Liabilities - Agency Fund ....................................................................... 87 Statement of Changes in Assets and Liabilities -
Agency Fund ........................................................................................................................... 88 1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES RONALD A LEVY, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM AVENUE, SUITE E CRAIG A HARTZHEIM, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 HADLEY Y HUI, CPA TEL: 310.273.2745 TEL: 310.670.2745
ALEXANDER C HOM, CPA FAX: 310.670.1689 FAX: 310.670.1689 ADAM V GUISE, CPA www.mlhcpas.com www.mlhcpas.com

TRAVIS J HOLE, CPA
INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Taft, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Taft, California (City) as of and for the fiscal year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Taft, California, as of June 30, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 61 and 62, the schedule of plan’s proportionate share of net pension liability on page 63 and the schedule of pension contributions on page 65, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other 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.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Taft, California’s basic financial statements. The WWTP Capital Projects budgetary comparison schedule, combining and individual non-major governmental and fiduciary funds financial statements and schedules are presented for purposes of additional analysis and are not required parts of the basic financial statements.

The WWTP Capital Projects budgetary comparison schedule, combining and individual non-major governmental and fiduciary funds financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements.

Such 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 WWTP Capital projects budgetary comparison schedule, combining and individual non-major governmental and fiduciary funds financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 1, 2022, on our consideration of the City of Taft, California’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Taft, California’s internal control over financial reporting and compliance.

Moss, Levy & Hartzheim, LLP
Culver City, California
March 1, 2022
4 This page intentionally left blank
ASSETS
Cash and investments 5,277,765 $ 11,813,025 $ 17,090,790 $ Restricted cash and investments - 4,345 4,345
Cash and investments with fiscal agents 3,894 - 3,894
Accounts receivable 415,246 2,813,309 3,228,555
Interest receivable 8,363 23,569 31,932
Notes receivable 3,670,925 - 3,670,925
Prepaid expenses 154,370 78,612 232,982
Deposits - 17,432 17,432
Capital assets, not being depreciated 2,081,686 11,850 2,093,536 Capital assets, being depreciated 26,190,777 12,787,903 38,978,680 Capital assets, accumulated depreciation (13,079,514) (7,814,287) (20,893,801) Total assets 24,723,512 19,735,758 44,459,270

DEFERRED OUTFLOWS OF RESOURCES
Pension related 1,614,765 1,290,125 2,904,890
Total deferred outflows of resources 1,614,765 1,290,125 2,904,890

LIABILITIES
Accounts payable 332,247 325,450 657,697
Accrued payroll 147,713 257,794 405,507
Accrued interest payable - 2,563 2,563
Unearned revenue 167,984 - 167,984
Deposits payable 2,279 65,113 67,392
Noncurrent liabilities:

Due within one year 158,841 58,483 217,324
Due in more than one year 3,991,523 175,453 4,166,976
Net pension liability 6,270,966 3,496,608 9,767,574
Total liabilities 11,071,553 4,381,464 15,453,017

DEFERRED INFLOWS OF RESOURCES
Pension related 389,954 354,075 744,029
Total deferred inflows of resources 389,954 354,075 744,029

NET POSITION
Net investment in capital assets 11,233,949 4,985,466 16,219,415 Restricted for:

Streets and roads 413,794 - 413,794
Public safety 259,062 - 259,062
Public works 329,404 - 329,404
Community development 3,749,035 - 3,749,035
Capital projects - WWTP 4,134,863 - 4,134,863
Unrestricted (5,243,337) 11,304,878 6,061,541
Total net position 14,876,770 $ 16,290,344 $ 31,167,114 $

See accompanying notes to financial statements
Governmental
Activities
Business-type
Activities Total

CITY OF TAFT

STATEMENT OF NET POSITION
JUNE 30, 2019
5 CITY OF TAFT

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Expenses
Governmental activities:

General government (2,411,915) $ 2,951,160 $ 1,562,092 $ - $ Public safety (3,773,473) 39,511 217,385 -
Public works (1,879,640) 156,039 195,945 838,941
Health and welfare (111,391) 66,941 6,604 -
Community development (739,988) - 257,973 -
Debt issuance costs (46,967) - - -
Interest on long-term debt (121,889) - - -
Total governmental activities (9,085,263) 3,213,651 2,239,999 838,941 Business-type activities:

Community correctional facility (CCF) (12,343,946) 13,305,970 - - Federal WWTP (760,070) 989,384 - -
Sewer (1,022,347) 1,208,087 - -
Refuse (902,898) 1,020,256 10,000 -
Transit (722,904) 360,169 194,655 138,800
Total business-type activities (15,752,165) 16,883,866 204,655 138,800 Total government $ 20,097,517 (24,837,428) $ 2,444,654 $ 977,741 $ General revenues and transfers:

Taxes:

Property taxes
Sales tax
Other taxes
Investment earnings
Miscellaneous
Total general revenues
Change in net position
Net position, beginning of fiscal year
Prior period adjustments
Net position, beginning of fiscal year, restated
Net position, end of fiscal year
See accompanying notes to financial statements
Program Revenues
Charges for
Services
Operating Grants
and Contributions
Capital
Grants and
Contributions
6 Net (Expense) Revenue and Change in Net Position
$ - 2,101,337 $ 2,101,337 $
- (3,516,577) (3,516,577)
- (688,715) (688,715)
- (37,846) (37,846)
- (482,015) (482,015)
- (46,967) (46,967)
- (121,889) (121,889)
- (2,792,672) (2,792,672)
962,024 - 962,024
229,314 - 229,314
185,740 - 185,740
127,358 - 127,358
(29,280) - (29,280)

1,475,156 - 1,475,156
1,475,156 (2,792,672) (1,317,516)
- 1,528,270 1,528,270
- 1,726,864 1,726,864
- 453,058 453,058
141,439 159,764 301,203
- 257,462 257,462
141,439 4,125,418 4,266,857
1,616,595 1,332,746 2,949,341
14,673,749 14,613,389 29,287,138
- (1,069,365) (1,069,365)
14,673,749 13,544,024 28,217,773
$ 16,290,344 14,876,770 $ 31,167,114 $
Business-type
Activities Total
Governmental
Activities
7 CITY OF TAFT

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2019
ASSETS General
Revolving Loan
Fund CDBG
Revolving Loan
Fund Home
Cash and investments $ 10,124 48,112 $ 45,395 $
Cash and investments with fiscal agents - 3,894 -
Receivables:

Accounts - 371,364 -
Interest - 320 87
Notes 1,826,110 - 1,581,116
Due from other funds - 71,408 -
Prepaid items - 149,815 -
Total assets 644,913 $ 1,836,234 $ 1,626,598 $

LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable $ 10,216 273,402 $ - $
Accrued payroll - 139,563 -
Due to other funds - - -
Deposit payable - 2,279 -
Unearned revenue - 167,984 -
Total liabilities 583,228 10,216 -

DEFERRED INFLOW OF RESOURCES
Deferred revenue - 1,581,116 1,826,110
Total deferred inflow of resources - 1,826,110 1,581,116

FUND BALANCES
Nonspendable 149,815 - -
Restricted - - 45,482
Unassigned (88,130) (92) -
Total fund balances (deficits) 61,685 (92) 45,482
Total liabilities, deferred inflow of
resources, and fund balances 644,913 $ 1,836,234 $ 1,626,598 $ See accompanying notes to financial statements
8 WWTP Special
Revenue
WWTP Capital
Projects
Total Nonmajor
Governmental
Funds Total
$ 4,127,683 356,230 $ $ 5,269,963 682,419 $
- - - 3,894
- 12,846 415,246 31,036
7,180 - 8,363 776
- - 3,670,925 263,699
- - 71,408 -
- 522 152,464 2,127
$ 4,134,863 369,598 $ 980,057 $ 9,592,263 $
$ - 37,918 $ $ 330,918 9,382 $
- 2,276 143,718 1,879
- - 71,408 71,408
- - 2,279 -
- - 167,984 -
- 40,194 82,669 716,307
- - 3,670,925 263,699
- - 263,699 3,670,925
- 522 2,127 152,464
4,134,863 328,882 703,406 5,212,633
- - (71,844) (160,066)
4,134,863 329,404 633,689 5,205,031
$ 4,134,863 369,598 $ 980,057 $ 9,592,263 $
9 10
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CITY OF TAFT

GOVERNMENTAL FUNDS

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
Fund balances of governmental funds 5,205,031 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources. Therefore, they are not reported in the governmental funds.

Total capital assets 28,272,463 $
Accumulated depreciation (13,079,514) 15,192,949
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. Long-term liabilities include certificates of participation , lease refinancing bonds, compensated absences, and net pension liability. (10,421,330) Deferred outflows and inflows of resources relating to pensions: In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported.

Deferred inflows of resources relating to pensions (389,954) $ Deferred outflows of resources relating to pensions 1,614,765 1,224,811 Internal service funds are used by management to charge the costs of certain activities such as vehicle maintenance to individual funds.

The assets and the liabilities of the internal service fund must be added to the statement of net position (not including compensated absences $4,384) 4,384
Certain revenues are deferred in the governmental funds because the availability criteria is not met. These revenues are not deferred in the statement of net position. 3,670,925
Net position of governmental activities 14,876,770 $
See accompanying notes to financial statements
11 CITY OF TAFT

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
General
Revolving Loan
Fund CDBG
Revolving Loan
Fund Home

REVENUES
Property taxes $ - 1,528,270 $ - $
Sales taxes - 1,484,068 -
Other taxes - 695,854 -
Licenses and permits, and fees - 283,141 -
Fines and forfeitures - 2,388 -
Use of money and property 139,177 231,384 365
Intergovernmental 366,847 549,676 58,854
Current services charges - 2,801,333 -
Other - 117,256 -
Total revenues 7,693,370 506,024 59,219

EXPENDITURES
Current:

General government - 1,539,177 -
Public safety - 3,256,944 -
Public works - 1,182,155 -
Health and welfare - - -
Community development 1,338 712,642 15,449
Capital outlay 1,399,006 23,967 -
Debt service:

Debt issuance costs - 46,967 -
Principal retirement - 905,000 -
Interest and fiscal charges - 80,192 -
Total expenditures 9,122,083 25,305 15,449
Excess of revenues
over (under) expenditures (1,428,713) 480,719 43,770

OTHER FINANCING SOURCES (USES)
Proceeds from issuance of debt - 532,000 -
Transfers in 13,270 22,844 -
Transfers out (12,307) - -
Total other financing sources (uses) 554,844 963 -
Net change in fund balances (873,869) 481,682 43,770
Fund balances, beginning of fiscal year 561,362 30,538 1,712 Prior period adjustments 374,192 (512,312) -
Fund balances (deficits) , beginning of fiscal year,
restated 935,554 (481,774) 1,712
Fund balances (deficits), end of fiscal year 61,685 $ (92) $ 45,482 $ See accompanying notes to financial statements
12 WWTP Special
Revenue
WWTP Capital
Projects
Total Nonmajor
Governmental
Funds Total
$ - - $ $ 1,528,270 - $
- - 1,484,068 -
- - 695,854 -
- - 283,141 -
- - 4,956 2,568
61,548 952 438,953 5,527
- 1,562,092 2,884,191 346,722
- 57,280 2,936,923 78,310
- 809 124,669 6,604
61,548 1,621,133 439,731 10,381,025
- 713,219 2,252,396 -
- - 3,388,114 131,170
- - 1,201,013 18,858
- - 66,068 66,068
- - 729,429 -
- 7,145 - 1,430,118
- - - 46,967
- 65,000 970,000 -
- 67,942 148,134 -
- 853,306 216,096 10,232,239
61,548 767,827 223,635 148,786
- - 532,000 -
131,200 - 167,314 -
- (131,200) (167,314) (23,807)
131,200 (131,200) (23,807) 532,000
192,748 636,627 199,828 680,786
3,942,115 (307,223) 433,861 4,662,365
- - - (138,120)
3,942,115 (307,223) 433,861 4,524,245
$ 4,134,863 329,404 $ 633,689 $ 5,205,031 $
13 14
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Net change in fund balances of governmental funds 680,786 $ Amounts reported for governmental activities in the statement of activities differs from the amounts reported in the statement of revenues, expenditures, and changes in fund balance because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

This activity is reconciled as follows:

Capital outlay 1,430,118 $
Less road maintenance and repairs classified as public works expense (212,867) Depreciation expense (771,764) 445,487
Certain notes receivable are reported in the governmental funds as expenditures and then offset by deferred revenue as they are not available to pay current expenditures. Likewise, when the note is collected, it is reflected in revenue.

This is the net change between notes receivable collected and issued. 63,229 In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis. This fiscal year, the difference between accrual-basis pension costs and actual employer contributions was:

Pension costs (282,188)
Issuance of debt is reported as other financing sources in the governmental funds but are reported as liabilities on the on the statement of net position. (532,000) Debt repayments are reported as expenditures in the governmental funds. The repayment is not an expense in the statement of activities as it is a reduction of a long-term liability. The balance for compensated absences reflects the difference between absences accrued and absences paid.

Principal payment bond certificates of participation 970,000 Compensated absences (12,568)
Change in net position of governmental activities $ 1,332,746 See accompanying notes to financial statements

CITY OF TAFT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019

TO THE STATEMENT OF ACTIVITIES

AND CHANGES IN FUND BALANCES

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,

GOVERNMENTAL FUNDS
15 CCF Federal WWTP Sewer
ASSETS
Current assets:

Cash and investments $ 4,665,233 2,558,479 $ 3,121,430 $ Restricted cash and investments - - -
Receivables:

Accounts 82,444 2,287,695 110,670
Interest 8,469 6,765 5,674
Due from other funds - 1,319,082 -
Prepaid items 523 70,260 572
Deposits - - 17,432
Total current assets 6,242,281 4,756,669 3,255,778
Noncurrent assets:

Capital assets, not being depreciated - 11,850 -
Capital assets, being depreciated 5,865,543 308,617 2,915,878 Capital assets, accumulated depreciation (4,023,245) (202,399) (1,824,005) Total noncurrent assets 118,068 1,842,298 1,091,873
Total assets 6,360,349 6,598,967 4,347,651

DEFERRED OUTFLOWS OF RESOURCES
Pension related 19,286 1,113,226 18,447
Total deferred outflows of resources 1,113,226 19,286 18,447

LIABILITIES
Current Liabilities:

Accounts payable 19,638 254,984 10,392
Accrued payroll 2,557 239,657 2,080
Interest payable - - -
Due to other funds - - -
Deposits payable - - 23,163
Current portion of compensated absences 2,684 48,128 2,123 Total current liabilities 542,769 24,879 37,758
Noncurrent liabilities:

Compensated absences 8,052 144,388 6,368
Net pension liability 49,319 3,013,045 47,536
Total noncurrent liabilities 3,157,433 57,371 53,904
Total liabilities 3,700,202 82,250 91,662

DEFERRED INFLOWS OF RESOURCES
Pension related 2,277 304,206 2,608
Total deferred inflows of resources 304,206 2,277 2,608

NET POSITION
Net investment in capital assets 118,068 1,842,298 1,091,873 Unrestricted 3,351,099 4,691,428 3,179,955
Total net position 3,469,167 $ 6,533,726 $ 4,271,828 $
See accompanying notes to financial statements
Enterprise Funds
Business-type Activities

CITY OF TAFT

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2019
16 Governmental
Activities
Refuse Transit
Total Enterprise
Funds
Internal Service
Fund
$ - 1,467,883 $ $ 11,813,025 $ 7,802
4,345 - 4,345 -
177,907 154,593 2,813,309 -
- 2,661 23,569 -
- - 1,319,082 -
5,570 1,687 78,612 1,906
- - 17,432 -
187,822 1,626,824 16,069,374 9,708
- - 11,850 -
3,102,822 595,043 12,787,903 -
(1,245,057) (519,581) (7,814,287) -
1,857,765 75,462 4,985,466 -
2,045,587 1,702,286 21,054,840 9,708
103,230 35,936 1,290,125 -
103,230 35,936 1,290,125 -
2,737 37,699 325,450 1,329
9,557 3,943 257,794 3,995
2,563 - 2,563 -
1,319,082 - 1,319,082 -
14,437 27,513 65,113 -
2,680 2,868 58,483 4,384
1,351,056 72,023 2,028,485 9,708
8,041 8,604 175,453 -
292,885 93,823 3,496,608 -
300,926 102,427 3,672,061 -
1,651,982 174,450 5,700,546 9,708
37,657 7,327 354,075 -
37,657 7,327 354,075 -
1,857,765 75,462 4,985,466 -
(1,398,587) 1,480,983 11,304,878 -
$ 459,178 1,556,445 $ 16,290,344 $ - $
Business-type Activities
Enterprise Funds
17 CCF Federal WWTP Sewer

OPERATING REVENUES
Charges for services $ 989,384 13,242,151 $ 1,200,935 $ Connection and installation fees - - 2,165
Other - 63,819 4,987
Total operating revenues 13,305,970 989,384 1,208,087

OPERATING EXPENSES
Salaries and wages 84,198 6,153,455 74,699
Training and development - 19,200 -
Contract and professional services 195,330 1,710,371 1,500 Maintenance and operations 24,876 204,485 521,410
Materials and supplies 16,661 287,553 735
Insurance 23,979 698,832 19,013
Utilities 55,727 424,721 269
Administrative service charges 59,044 - 176,099
Depreciation 227,826 34,102 64,512
Bad debt expense - - 6,464
Other operating expenses 72,429 2,811,227 157,646
Total operating expenses 12,343,946 760,070 1,022,347
Operating income (loss) 962,024 229,314 185,740

NONOPERATING REVENUES (EXPENSES)
Interest earnings on investments 51,841 39,671 34,097
Interest expense - - -
Intergovernmental - - -
Total nonoperating revenues (expenses) 39,671 51,841 34,097

CAPITAL CONTRIBUTION
Capital contribution - - -
Total capital contribution - - -
Changes in net position 1,001,695 281,155 219,837
Total net position, beginning of fiscal year 2,467,472 6,252,571 4,051,991 Total net position, end of fiscal year 3,469,167 $ 6,533,726 $ 4,271,828 $ See accompanying notes to financial statements
Enterprise Funds

CITY OF TAFT

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Business-type Activities
18 Governmental
Activities
Refuse Transit
Total Enterprise
Funds
Internal Service
Fund
$ 360,169 1,003,128 $ $ 16,795,767 $ 182,474
- - 2,165 -
- 17,128 85,934 -
360,169 1,020,256 16,883,866 182,474
381,235 155,330 6,848,917 137,078
1,160 - 20,360 -
4,211 349,380 2,260,792 -
106,974 186,438 1,044,183 9,348
13,970 17,211 336,130 8,216
20,615 18,811 781,250 -
4,079 - 484,796 6,321
- 57,681 292,824 10,852
136,739 22,315 485,494 -
- 3,718 10,182 -
38,139 92,014 3,171,455 10,659
707,122 902,898 15,736,383 182,474
(346,953) 117,358 1,147,483 -
- 15,830 141,439 -
(15,782) - (15,782) -
194,655 10,000 204,655 -
178,873 25,830 330,312 -
138,800 - 138,800 -
138,800 - 138,800 -
(29,280) 143,188 1,616,595 -
488,458 1,413,257 14,673,749 -
$ 459,178 1,556,445 $ 16,290,344 $ - $
Business-type Activities
Enterprise Funds
19 STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Business-type Activities
Enterprise Funds
CCF Federal WWTP Sewer
Cash Flows from Operating Activities:

Cash received from customers and users $ 906,940 12,187,282 $ 1,207,945 $ Cash paid to suppliers for goods and services (468,849) (6,098,265) (900,117) Cash paid to employees for services (80,440) (5,988,880) (71,763) Net cash provided (used) by operating activities 357,651 100,137 236,065 Cash Flows from Capital and Related Financing Activities:

Acquisition, proceeds, and construction of capital assets (14,123) (99,184) (7,145) Interest paid - - -
Capital contribution - - -
Net cash provided (used) by capital and related financing activities (14,123) (99,184) (7,145) Cash Flows from Non-Capital Financing Activities:

Intergovernmental grants received - - -
Cash received (paid) to/from other funds, including interest - (1,319,082) - Net Cash provided by Non-Capital Financing Activities: - (1,319,082) - Cash Flows from Investing Activities:

Interest received 49,579 37,261 32,525
Net Cash provided (used) by investing activities 49,579 37,261 32,525 Net increase (decrease) in cash and cash equivalents 393,107 (1,280,868) 261,445 Cash and Cash Equivalents at Beginning of Fiscal Year 4,272,126 3,839,347 2,859,985 Cash and Cash Equivalents at End of Fiscal Year $ 4,665,233 2,558,479 $ 3,121,430 $ Reconciliation to Statement of Net Position:

Cash and investments $ 4,665,233 2,558,479 $ 3,121,430 $ Restricted cash and investments - - -
Total cash and cash equivalents $ 4,665,233 2,558,479 $ 3,121,430 $ Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) $ 229,314 962,024 $ 185,740 $
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 227,826 34,102 64,512
(Increase) decrease in accounts receivable (82,444) (1,118,689) (142) (Increase) decrease in prepaid expenses (523) (26,049) (572) (Increase) decrease in deposits - - (18)
(Increase) decrease in deferred outflows of resources - pension 3,441 144,846 3,144 Increase (decrease) in deferred inflows of resources - pension 781 32,865 713 Increase (decrease) in net pension liability (1,059) (44,565) (967) Increase (decrease) in accounts payable (20,280) 84,173 (15,932) Increase (decrease) in accrued payroll 300 13,719 (172) Increase (decrease) in unearned revenue - - -
Increase (decrease) in deposits payable - - (459)
Increase (decrease) in compensated absences 295 17,711 218 Total adjustments 128,337 (861,887) 50,325
Net cash provided (used) by operating activities $ 357,651 100,137 $ 236,065 $ See accompanying notes to financial statements

CITY OF TAFT
20 Governmental
Business-type Activities Activities
Internal
Enterprise Funds Service
Refuse Transit Totals Fund
$ 559,755 1,000,062 $ 15,861,984 $ 182,474 $
(181,426) (698,964) (8,347,621) (45,238)
(370,497) (149,675) (6,661,255) (136,929)
7,832 151,423 853,108 307
(175,436) (7,145) (303,033) -
(15,417) - (15,417) -
(209,145) - (209,145) -
(399,998) (7,145) (527,595) -
194,655 10,000 204,655 -
197,512 - (1,121,570) -
392,167 10,000 (916,915) -
- 15,041 134,406 -
- 15,041 134,406 -
1 169,319 (456,996) 307
4,344 1,298,564 12,274,366 7,495
$ 4,345 1,467,883 $ 11,817,370 $ 7,802 $
$ - 1,467,883 $ 11,813,025 $ 7,802 $
4,345 - 4,345 -
$ 4,345 1,467,883 $ 11,817,370 $ 7,802 $
$ (346,953) 117,358 $ 1,147,483 $ - $
136,739 22,315 485,494 -
(130,976) (15,194) (1,347,445) -
(5,570) (1,687) (34,401) (603)
- - (18) -
12,725 5,694 169,850 -
2,887 1,292 38,538 -
(3,915) (1,752) (52,258) -
(1,145) 28,020 74,836 761
141 294 14,282 (290)
330,562 (5,000) 325,562 -
14,437 (44) 13,934 -
(1,100) 127 17,251 439
354,785 34,065 (294,375) 307
$ 7,832 151,423 $ 853,108 $ 307 $
21 Private-Purpose
Trust Funds Agency Funds
ASSETS
Cash and investments 215,586 $ 87,788 $
Interest receivable 351 -
Prepaid items 147 -
Capital assets - nondepreciable 1,698,163 -
Capital assets - being depreciated 407,116 -
Capital assets - accumulated depreciation (256,662) -
Total assets 2,064,701 87,788 $

LIABILITIES
Accounts payable 662 5,074 $
Accrued payroll 690 -
Due to inmates - 82,714
Loan payable to City of Taft 1,588,959 -
Bonds payable 1,778,000 -
Total liabilities 3,368,311 87,788 $

NET POSITION
Unrestricted (1,303,610)
Total net position (deficit) (1,303,610) $
See accompanying notes to financial statements

CITY OF TAFT

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2019
22 CITY OF TAFT

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Private Purpose
Trust Funds
Additions:

Investment revenue $ 90,775
Taxes and assessments 347,764
Total additions 438,539
Deductions:

Community development 265,344
Interest expense 90,859
Depreciation 10,178
Total deductions 366,381
Change in net position 72,158
Net Position (Deficit) - July 1, 2018 (1,932,821)
Prior period adjustment 557,053
Net Position (Deficit) , July 1, 2018, restated (1,375,768) Net Position (Deficit) - June 30, 2019 (1,303,610) $
See accompanying notes to financial statements
23 24
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25 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Taft, California (the City), which was founded on November 7, 1910, has a population of 9,052 living within an area of 15.05 square miles. It is located in Western Kern County 119 miles northwest of Los Angeles, 280 miles south of San Francisco, and 37 miles southwest of Bakersfield in the foothills of the western edge of southern San Joaquin Valley.

The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

A. Reporting Entity
In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in the U.S. GAAP. The basic—but not the only—criterion for including a potential component unit within the reporting entity is the governing body’s ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of the governing authority, the designation of management, the ability to significantly influence operations and accountability for fiscal matters. The other criteria used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the City is able to exercise oversight responsibilities. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the City’s reporting entity.

Included within the reporting entity:
 Taft Public Financing Authority. A nonprofit public benefit corporation created in 1994 through a Joint Exercise of Powers agreement between the City of Taft and the Taft Community Development Agency established for the purpose of, among other things, issuing bonds to provide financing and refinancing for public capital improvements of the City and Agency. (Separate financial statements are not prepared for this entity.)  Taft Public Improvement Corporation. A nonprofit public benefit corporation created in 1989 to provide services for the betterment of the City. These services include constructing various capital improvements for the City, assisting with the creation or expansion of the City’s facilities, the purchase and sale of real or personal property and assisting the City to finance, acquire, construct, and install such property. (Separate financial statements are not prepared for this entity.)
 Greater Taft Transportation Authority. The Greater Taft Transportation Authority (GTTA) was formed in April 2001 as a joint exercise of powers between the City of Taft and Taft Community Development Agency pursuant to the California Government Code Section 6500 et seq. (Separate financial statements are not prepared for the GTTA.)

26 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary authoritative statements of accounting principles generally accepted in the United States of America applicable to state and local governments.

C. Fund Accounting
The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflow/outflow of resources, fund equity, revenues, and expenditures/expenses. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into generic fund types and broad categories as follows:

Governmental Funds:
 General Fund. The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds.  Special Revenue Funds. The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.  Capital Projects Fund. The Capital Project Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds).

Proprietary Funds:
 Enterprise Funds. The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise – where the intent of the City Council is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.
 Internal Service Fund – Garage Fund. The Garage Fund is used to account for the cost of providing vehicle maintenance to operating funds. Costs are recovered by user charges.

Fiduciary Funds:

 Agency Funds. The Agency Funds are used to account for assets held by the City as an agent.

These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

27 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Fund Accounting (Continued)
 Private Purpose Funds. These funds are for disbursements made only for those activities to wind down the business of the former Taft Community Development Agency (TCDA). These activities include but are not limited to the payment of debt service related to the bonds issued by the TCDA as well as other contractual commitments.

D. Basis of Accounting/Measurement Focus
Government-wide Financial Statements
The City’s Government-wide Financial Statements include a Statement of Net Position and a Statement of Activities (including changes in Net Position). These statements present summaries of governmental and business-type activities of the City. Fiduciary activities of the City are not included in these statements.

These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all the City’s assets and liabilities, including capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net Position.

The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenue are reported as general revenue.

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated.

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 aggregated nonmajor funds. 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. The City has presented all major funds that met the qualifications of GASB Statement No.

34. 28

CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources’ measurement focus, only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources”. The governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Recognition of governmental fund type revenue represented by noncurrent receivables is deferred until they become current receivables or are offset by due to other governments. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. Those revenues susceptible to accrual are property taxes, sales taxes, interest revenues, charges for services, and special assessments. Licenses, fines, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on long term obligations which are recognized when due. Because of their current financial resources focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund.

The Revolving Loan Fund – CDBG was established to account for Community Development grants by using Community Development program revenue.

The Revolving Loan Fund – HOME was established to account for funds as direct loans for rehabilitation or reconstruction of dwellings owned and occupied by qualifying low- and moderateincome households.

The WWTP Special Revenue Fund is used to account for special projects related to the City’s share of the wastewater treatment plant.

The WWTP Capital Projects Fund is used to account for capital asset acquisition and construction of the wastewater treatment plant.

29 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Basis of Accounting/Measurement Focus (Continued)
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows. All proprietary fund types are accounted for using the accrual basis of accounting and the economic resources measurement focus.

Their revenues are recognized when earned, and expenses are recognized when incurred. All liabilities associated with their activity are also included in the Statement of Net Position.

Proprietary Funds include enterprise funds. The City reports the following major enterprise funds:

The CCF Fund is used to account for the operations of the Community Correctional Facility. The CCF provides housing and program services to the California Department of Corrections.

The Federal WWTP Fund is used to account for the operations related to building and maintaining a wastewater treatment plant for the federal prison.

The Sewer Fund is used to account for the operations of the City’s sewer system.

The Transit Fund is used to record the operations of the Taft Area Transit Dial-A-Ride service. The enterprise collects fares from users of the service.

The Refuse Fund is used to record the operation of the refuse removal enterprise of the City. The enterprise collects user fees for the collection of refuse from businesses and residents in the City of Taft.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s proprietary funds are charges to customers for services. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The principal operating revenue of the internal service fund is charges to other funds. Operating expenses for the internal service fund include the costs of vehicle maintenance.

Internal Service Fund Statements
The City reports one Internal service fund for the Central Garage. This fund is established to account for any activity that provides goods or services to other funds or departments of the primary government and its component units, or to other governments, on a cost-reimbursement basis. See proprietary funds above for accounting for internal service funds.

30 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Basis of Accounting/Measurement Focus (Continued)
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net of Position and a Statement of Changes in Net Position. The fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore, are not available to support City programs. Since these assets are being held for the benefit of a third party, these funds are not incorporated into the government-wide statements.

The City’s fiduciary funds are agency funds and private purpose trust funds. These funds use the accrual basis of accounting, Agency funds are used to account for amounts held for debt service related to conduit debt, and amounts held on behalf of inmates housed in the Community Correctional Facility.

The Agency funds are custodial in nature (assets equal liabilities) and therefore do not involve measurement of results of operations. The private purpose funds are used to account for the redevelopment agency successor agency by the City as trustee. Trust funds are accounted for on the economic resources measurement focus.

E. Budgetary Policy and Control
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public meetings are conducted prior to its adoption by the Council. All appropriations lapse at year-end. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to adjust the operating budget within each fund. Transfers of operating budget appropriations between funds or to or from appropriated reserve accounts, use of unappropriated fund balances, cancellation of appropriations and all changes in capital improvement project budgets require the approval of the City Council.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget is at fund level. Formal budgetary integration is employed as a management control device during the fiscal year for the Governmental Fund Types.

F. Cash/Investment Policy
In order to maintain an effective investment program, all cash, except certain trust and agency cash and restricted cash, is pooled, and amounts not required for day-to-day financial transactions are invested as approved by the City Council on a pooled basis and earnings are allocated to each fund on the basis of its average cash balance at the end of each quarter.

GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and External Pools”, requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASB Statement No. 31, the City has adjusted certain investments to fair value (when material).

31 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Capital Assets and Depreciation
Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, etc.) are reported in the government-wide financial statements as well as proprietary fund financial statements. Capital assets are defined by as long-lived assets (in excess of one year) tangible assets with an initial, individual cost of more than $5,000 and any purchases and/or construction of infrastructure that exceeds $50,000 and/or extends the useful life of the asset. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available.

Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the Statement of Net Position of the government-wide financial statements as a reduction in the book value of capital assets.

The City has assigned the useful lives listed below to capital assets:

Structures and improvements 20-40 Years
Machinery and equipment 5-20 Years
Infrastructure
Pavement 40 Years
Concrete 60 Years
H. Deferred Outflow/Inflow of Resources
In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

The City has deferred outflows of resources on pensions in the statement of net position.

In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has deferred inflows of resources-deferred revenue – loans/notes on the governmental funds’ financial statements and pensions in the statement of net position.

I. Interfund Transactions
Quasi-external transactions are accounted for as fund revenues or expenditures/expenses. Transactions, which constitute reimbursements to a fund for expenditures/expenses are recorded as expenditures/expenses in the reimbursing fund, and as reductions of the expenditures/expenses in the reimbursed fund.
32 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capitalized Interest
No interest cost relating to construction was capitalized during the fiscal year ending June 30, 2019.

K. Compensated Absences
The compensated absences accrual on June 30, 2019, amounted to $191,364 for Governmental Activities and $233,936 for Business-type Activities.
 Sick leave liability
Generally, employees earn one day of sick leave per month with a maximum accumulation of 720 hours. All employees are entitled to payment for accumulated sick leave up to the lower of 50 percent of earned days or forty-five days, upon retirement, death, or disability.  Vacation leave liability
Employees earn ten days’ vacation leave per year, for less than four years of service; from four years through nine years of service, fifteen days are earned; from ten years through nineteen years of service, twenty days are earned; and after nineteen years, twenty-five days. All employees are able to accrue an amount equal to twice the employee’s annual accrual, after which further accrual will cease. Accumulated vacation is payable upon termination.

L. Property Taxes
Property Taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments which are delinquent after December 10 and April 10. Unsecured personal property taxes become due on July 1st of each year and are delinquent, if unpaid by August 31st. Kern County bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized on the modified accrual basis of accounting method.

The County is permitted by State Law (Proposition 13) to levy taxes at 1 percent of full value (at time of purchase). The City receives a share of this basic levy proportionate to what it received in the 1976 to 1978 period.

M. Cash Flows
Proprietary fund type cash and investments are used in the preparation of the statement of cash flows as investments are pooled and are not allocated to specific funds. Each of these funds’ share of pooled cash and investments is considered cash for purposes of the statement of cash flows since these amounts are immediately available for withdrawal. For the purposes of the Proprietary Funds’ Statement of Cash Flows, the City considers all investments with a maturity of three months or less when purchased to be cash equivalents.

N. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed. Restricted resources are defined as resources received from outside agencies dedicated for specific purposes (grants for example).

33 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows or resources, liabilities, and deferred inflows of resources and disclosures of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates.

P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

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

Q. New Accounting Pronouncements
Future Accounting Standards:

GASB has issued the following statements which may impact the City’s financial reporting requirements in the future:

The provisions of Statement Number 83 "Certain Asset Retirement Obligations" are effective for fiscal years beginning after June 15, 2019.

The provisions of Statement Number 84 "Fiduciary Activities" are effective for fiscal years beginning after December 15, 2019.

The provisions of Statement Number 87 "Leases" are effective for fiscal years beginning after June 15, 2021.

The provisions of Statement Number 88 "Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements" are effective for fiscal years beginning after June 15, 2019.

The provisions for Statement Number 89 "Accounting for Interest Cost Incurred before the End of a Construction Period" are effective for fiscal years beginning after December 15, 2020.

The provisions for Statement Number 90 "Majority Equity Interests - an amendment of GASB Statements No. 14 and No. 61" are effective for fiscal years beginning after December 15, 2019.

The provisions for Statement Number 91 “Conduit Debt Obligations” are effective for fiscal years beginning after December 15, 2021.

The provisions for Statement Number 92 “Omnibus 2020” in paragraphs number 73 and 74 are effective for fiscal years beginning after June 15, 2021.
34 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. New Accounting Pronouncements (Continued)
The provisions for Statement Number 93 “Replacement of Interbank Offered Rates” are effective for reporting periods beginning after June 15, 2021 except for paragraphs 11b, 13 and 14. The provisions of paragraph 11b are effective for reporting periods ending after December 31, 2021. The requirements in paragraphs 13 and 14 are effective for fiscal years beginning after June 15, 2021.

The provisions for Statement Number 94 “Public-Private and Public-Public Partnerships and Availability Payment arrangements” are effective for fiscal years beginning after June 15, 2022.

The provisions for Statement Number 96 “ Subscription-Based Information Technology Arrangements” are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.

The provisions for Statement Number 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32” are effective for fiscal years beginning after June 15, 2021.

R. Prior Period Adjustments
The City of Taft restated beginning net position of the governmental activities and the beginning net position of the private purpose trust funds as of July 1, 2019 as follows:

Net position was decreased by $905,000 to account for the portion of the 1998 Revenue Refunding Bonds related to the lease funding of the police station principal balance of $905,000 which was previously reported as a liability of the Successor Agency Trust as of June 30, 2018. Net position was decreased for the accrued interest payable of $26,245 for the accrued interest related to the bond principal previously reported as liabilities of the Successor Agency Trust Fund as of June 30, 2018. Net position was increased as of July 1, 2018 by $374,912 for the fiscal cash held in reserve as of June 30, 2018 related to the police station lease of the 1998 Revenue Refunding Bonds. Please see Note #8 for further details.

Net position was decreased for expenses related to a CDBG project that were incurred in the fiscal year ending June 30, 2018 but not recorded until the fiscal year ending June 30, 2019.

The fund balance of the General Fund was increased by $374,192 as of July 1, 2018 for the fiscal cash held in reserve related to the 1998 Revenue Refunding Bonds as described above.

The fund balance of the Revolving Loan Fund CDBG was decreased by $512,312 for expenditures relate to a noncapitalizable CDBG project that incurred costs during the fiscal year ended June 30, 2018 but were recorded in the fiscal year ended June 30, 2019.

Activities Trust Funds
Police Station Lease Principal (905,000) $ 905,000 $
Accrued Interest Payable (26,245) 26,245
Cash with Fiscal Agents 374,192 (374,192)
Prior Year Expense (512,312) -
Prior Period Adjustment (1,069,365) $ 557,053 $
35 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. General Budget Policies

1. The budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the fiscal year. All amendments made during the fiscal year are included in the budgetary amounts reported herein. The “appropriated budget” covers all City expenditures. Actual expenditures may not exceed budgeted appropriations at the fund level, which is the legal level of budgetary control.

3. Formal budgetary integration is employed as a management control device during the fiscal year.

Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures. Appropriations which are encumbered lapse at fiscal year-end, and then are added to the following fiscal year’s budgeted appropriations.

4. Budgets for the General, Special Revenue, Capital Projects, and Debt Service Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America (U.S. GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items.

Budget comparisons are not presented for the Proprietary funds, as the City is not legally required to adopt a budget for this type of funds.

There were no budgets adopted for the following funds: RLF-CDBG (major fund), Revolving Loan Fund – Home (major fund), Cal Homes Revolving Loan, CDBG Home – 6859 and TARP Revolving Loan.

5. Capital projects are budgeted through the Capital Projects Funds. Appropriations for capital projects authorized but not constructed or completed during the fiscal year are carried forward as continuing appropriations into the following fiscal year’s budget.

6. Under Article XIII-B of the California constitution (the GANN Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset by a deficit in the following year. For the fiscal year ended June 30, 2019, based on calculations by City staff, proceeds of taxes did not exceed appropriations.

Further, section 5 of Article XIII-B allows the City to designate a portion of fund balance for general contingencies, to be used for any purpose.

36 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) B. Deficit Fund Balances/Net Position
The following funds contained deficit fund balances/net position as of June 30, 2019:

The City anticipates that future revenue will be sufficient to cover these deficits.

C. Excess of Expenditures over Appropriations
Excess of expenditures over appropriations in departments/cost centers of individual funds:

NOTE 3 – CASH AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Cash and investments on June 30, 2019, consisted of the following:

Major Governmental Fund:

Revoling Loan Fund CDBG 92 $
Nonmajor Governmental Fund:

Landscape Assessment District 71,795
Final
Expenditures Appropriations Excess
Major Governmental Funds
General Fund
Community development 712,642 $ 555,974 $ (156,668) $
Capital outlay 1,399,006 1,038,892 (360,114)
WWTP
Capital outlay 7,145 3,532 (3,613)
Interest and fiscal charges 67,942 65,944 (1,998)
Nonmajor Governmental Fund
Asset Forfeiture
Public safety 10,812 7,608 (3,204)
Statement of Net Position:

Cash and investments 17,090,790 $
Restricted cash and investments 4,345
Cash and investments with fiscal agents 3,894
Statement of Fiduciary Net Position:

Cash and investments 303,374
Total cash and investments 17,402,403 $
Cash on hand 5,580 $
Deposits held by financial institutions 4,344,847
Investments 13,051,976
Total cash and investments 17,402,403 $
37 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Investments authorized by the California Government Code and the City’s Investment policy The table on next page identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Investment Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk.

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage/
Amount of
Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations 5 Years None None
Certificates of Deposit 5 Years None None
Negotiable Certificates of Deposit 3 Years 30% None
Passbook Savings Accounts N/A None None
County Pooled Investment Funds N/A 50% None
Local Agency Investment Fund (LAIF) N/A $65,000,000 $65,000,000 U.S. Agency Securities N/A None None
Authorized Investment Type
Maximum
Investment in
One Issuer
Maximum
Percentage/
Amount of
Portfolio
Maximum
Maturity
U.S. Agency Securities None None None
Money Market Mutual Funds None None N/A
Commercial Paper None None 270 days
Certificates of Deposit None None 5 years
Repurchase Agreements None None 180 days
U.S. Treasury Obligations None None 365 days
Time Deposits None None 365 days
38 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations are provided by the table below that shows the distribution of the City’s investments by maturity:

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal yearend for each investment type:

Concentration of Credit Risk
The City is in compliance with restrictions imposed by the investment policy, which limits certain types of investments. As of June 30, 2019, the City has not invested more than 5% of its total investments in any one issuer. Investments guaranteed by the United States Government and investments in mutual funds and external investment pools are excluded from this requirement.

Remaining Maturity (in Months)
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
State Investment Pool (LAIF) 4,328,124 $ - $ - $ 4,328,124 $ PARS Investment Pool 2,523,496 - - 2,523,496
Certificates of Deposit 602,000 1,178,462 1,916,000 3,696,462 U.S. Agency Securities - - 2,500,000 2,500,000
Held by Trustees:

Money Market Funds 3,894 - - 3,894
Total 7,457,514 $ 1,178,462 $ 4,416,000 $ 13,051,976 $
S&P Rating
Minimum Exempt From
Investment Type Amount Legal Rating Disclosure AAA AA+ A Not Rated State Investment Pool (LAIF) 4,328,124 $ N/A - $ - $ - $ - $ 4,328,124 $ PARS Investment Pool 2,523,496 N/A - - - - 2,523,496
Certificates of Deposit 3,696,462 N/A - - - - 3,696,462 U.S. Agency Securities 2,500,000 N/A - - 2,500,000 - -
Held by Trustees:

Money Market Funds 3,894 N/A - 3,894 - - -
Total 13,051,976 $ - $ 3,894 $ 2,500,000 $ - $ 10,548,082 $ 39 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of a failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total fair value deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: All of the City deposits with financial institutions (including Certificates of Deposit) in excess of federal depository insurance limits were held in pledged collateral accounts as described above.

As of June 30, 2019, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts. As of June 30, 2019, the City’s investment in the following type was held by the same broker-dealer (Counterparty) that was used by the City to buy the security:

Investment Type Reported Amount
Certificates of Deposit $3,696,462
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee, comprised of California State officials and various participants, provided oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer’s office. The City is a voluntary participant in the investment pool.

40 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 – CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements:

The City pool investment categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three-tiered fair value hierarchy, as follows:

Level 1: Investments reflect prices quoted in active markets; Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and, Level 3: Investments reflect prices based upon unobservable sources.

The City pool investment has the following recurring fair value measurements as of June 30, 2019:

The City also had investments in money market mutual funds, however, these investments are not required to be measured under Level 1, 2 or 3.

NOTE 4 – NOTES RECEIVABLE
The City operates a loan program whereby funds are made available to eligible businesses and individuals for various purposes. Grant funds were originally used to start the program and repayments are required to be used for the same purpose. As of June 30, 2019, the balance of notes receivable was $3,670,925 of this amount, $3,670,925 are deferred housing notes, which are due when the properties are transferred. These notes are collateralized by the titles of the properties. The remaining balances are made up of CDBG notes made to local businesses. These notes carry interest rates between 1% to 5%. All the notes are deferred revenue offsets.

NOTE 5 – LOAN RECEIVABLE FROM SUCCESSOR AGENCY TRUST FUND The City loaned $1,588,959 to the former redevelopment agency to purchase land for redevelopment purposes. The redevelopment agency was dissolved pursuant to state law (see Note #16 for further details on the dissolution and Successor Agency Trust Fund). The loan bears no interest and is only eligible to be repaid after all third-party obligations of the Successor Agency Trust Fund are paid. The City has estimated that the Successor Agency Trust Fund will not have sufficient resources to repay this loan in the foreseeable future and has recorded an allowance for the full amount of the loan receivables. On June 30, 2019, the loan receivable balance was $1,588,959 with an allowance of $1,588,959 for a net loan receivable of $0.

Fair Value Measurements Using
Investment by Fair Value Level Fair Value
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Input
(Level 2)
Significant
Unobservable
Inputs (Level 3)
Debt securities
Certificates of deposits 3,696,462 $ 3,696,462 $ - $ - $ US Government Agency Securities 2,503,894 2,503,894 - - Total Investments Measured at Fair Value 6,200,356 6,200,356 $ - $ - $ Investments Measured at Amortized Cost
LAIF 4,328,124
PARS 2,523,496
Total Pooled Investments 13,051,976 $
41 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 – INTERFUND ACTIVITIES
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due.

In general, the effect of the interfund activity has been eliminated from the government-wide financial statements.

Interfund transfers during the fiscal year ended June 30, 2019 are as follows:

Current interfund balances arise in the normal course of business (i.e., one fund loaning funds to pay for current expenditures) and are expected to be repaid shortly after the end of the fiscal year. The following is a summary of interfund balances as of June 30, 2019.

Transfers In Transfers Out
Major Governmental Funds:

General 22,844 $ - $
Revolving Loan Fund CDBG 13,270 12,307
WWTP Special Revenue - 131,200
WWTP Capital Projects 131,200 -
Nonmajor Governmental Funds:

Gas Tax - 9,789
TARP Revolving Loan - 9,313
Asset Forfeiture - 4,705
Total interfund transfers 167,314 $ 167,314 $
Due from Due to
(Receivable) (Payable)
Major Governmental Funds:

General 71,408 $ - $
Major Proprietary Funds:

CCF 1,319,082 -
Transit - 1,319,082
Nonmajor Governmental Funds:

Landscape Assessment District - 71,408
Total 1,390,490 $ 1,390,490 $
42 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the government-wide statement of net position. The City elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructures reporting, whereby depreciation expense and accumulated depreciation have been recorded. The following table presents the capital asset activity for the fiscal year ended June 30, 2019.

Depreciation expense was charged to functions/programs of the primary government as follows:

Balance Balance
Governmental Activities July 1, 2018 Additions Deletions June 30, 2019 Capital assets not being depreciated:

Land 1,342,372 $ 14,884 $ - $ 1,357,256 $
Construction in progress 401,917 800,321 (477,808) 724,430 Total capital assets not being depreciated 1,744,289 815,205 (477,808) 2,081,686 Capital assets being depreciated:

Structures and improvements 14,401,863 93,824 - 14,495,687 Machinery and equipment 4,048,997 308,923 - 4,357,920
Infrastructure:

Roadway system 6,594,880 477,107 - 7,071,987
Bridges 265,183 - - 265,183
Total capital assets being depreciated 25,310,923 879,854 - 26,190,777 Less accumulated depreciation for:

Structures and improvements (6,134,834) (269,946) - (6,404,780) Machinery and equipment (3,371,626) (227,043) - (3,598,669) Infrastructure:

Roadway system (2,536,107) (274,775) - (2,810,882)
Bridges (265,183) - - (265,183)
Total accumulated depreciation (12,307,750) (771,764) - (13,079,514) Total capital assets, being depreciated
net of accumulated depreciation 13,003,173 108,090 - 13,111,263 Total Governmental activities capital assets,
net of accumulated depreciation 14,747,462 $ 923,295 $ (477,808) $ 15,192,949 $ General government 117,095 $
Public safety 162,815
Public works 447,100
Health and welfare 44,754
Total depreciation expense - governmental activities 771,764 $ 43 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION (CONTINUED)
Changes in business-type activities capital assets:

Depreciation for business-type activities was charged to functions/programs as follows:

NOTE 8 – GOVERNMENTAL ACTIVITIES LONG-TERM LIABILITIES
During the fiscal year ended June 30, 2019, the following changes occurred to the governmental activities long-term liabilities:

Balance Balance
Business-type activities July 1, 2018 Additions Deletions June 30, 2019 Capital assets not being depreciated:

Land 11,850 $ - $ - $ 11,850 $
Construction in progress 1,400,000 - (1,400,000) -
Total capital assets not being depreciated 1,411,850 - (1,400,000) 11,850 Capital assets being depreciated:

Structures and improvements 6,046,142 1,400,000 - 7,446,142 Machinery and equipment 2,136,247 296,780 - 2,433,027
Sewer infrastructure 2,908,734 - - 2,908,734
Total capital assets being depreciated 11,091,123 1,696,780 - 12,787,903 Less accumulated depreciation for:

Structures and improvements (4,036,696) (262,962) - (4,299,658) Machinery and equipment (1,532,604) (158,020) - (1,690,624) Sewer infrastructure (1,759,493) (64,512) - (1,824,005) Total accumulated depreciation (7,328,793) (485,494) - (7,814,287) Total capital assets, being depreciated,
net of accumulated depreciation 3,762,330 1,211,286 - 4,973,616 Total Business-type activities capital assets,
net of accumulated depreciation 5,174,180 $ 1,211,286 $ (1,400,000) $ 4,985,466 $ CCF 34,102 $
Federal WWTP 227,826
Sewer 64,512
Refuse 22,315
Transit 136,739
Total depreciation expense - business-type activities 485,494 $ Balance Prior Period Balance Due in
Governmental Activities: July 1, 2018 Adjustment Additions Deletions June 30, 2019 One Year Certificates of participation 3,492,000 $ - $ - $ (65,000) $ 3,427,000 $ 67,000 $ Compensated absences 178,796 12,568 - 191,364 47,841
1998 Revenue Refunding Bonds - 905,000 - (905,000) - -
2019 Revenue Refunding Bonds - - 532,000 - 532,000 44,000 Total Long term liabilities 3,670,796 $ 905,000 $ 544,568 $ (970,000) $ 4,150,364 $ 158,841 $ 44 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 8 – GOVERNMENTAL ACTIVITIES LONG-TERM DEBT (CONTINUED) Certificates of Participation
Certificates of Participation (COP) are long-term instruments which are tax exempt and therefore, issued at interest rates below current market levels for taxable investments.

On June 15, 2015, the WWTP entered into a loan financing program with the United States Department of Agriculture, acting through its agency the USDA Rural Development, to finance a portion of the cost and expense of the acquisition and construction of certain improvements to the wastewater treatment system of the City of Taft via the execution and delivery of certificates of participation.

The City entered into a financing program with the Taft Public Improvement Corporation, a California nonprofit public benefit corporation duly organized and existing under and by virtue of the laws of the State of California (the "Corporation"), for the purchase by the Corporation of the real property on which the wastewater system is situated (the "Site"), together with the existing wastewater treatment system improvements (the "Existing Facilities") situated thereon, and the purchase by the City from the Corporation of the completed Project.

The City is in receipt of a Letter of Conditions, originally dated November 8, 2012 and extended through April 10, 2017 (the "Letter of Conditions"), from USDA Rural Development, setting forth certain conditions to be satisfied by the City with respect to receipt from USDA Rural Development of funding for the project, comprised of a loan in the amount of not-to-exceed $3,619,000 to be represented by the Certificates of Participation. The Installment payments shall be payable during a period of not more than 40 years and the interest rate shall not exceed 1.75% per annum. During the fiscal year 2016-17, the City spent $3,251,654 for the project which was completed in May 2017. The City received loan funds of $1,895,222 during the fiscal year 2016-17 with the remaining certificates of participation issued of $1,356,432 disbursed to the City during FY 2017-18. The certificates of participation had an outstanding principal balance of $3,427,000 as of June 30, 2019.

Certificates of Participation maturity schedule:

PRINCIPAL INTEREST TOTAL
2020 67,000 $ 59,973 $ 126,973 $
2021 68,000 58,800 126,800
2022 69,000 57,610 126,610
2023 70,000 56,402 126,402
2024 71,000 55,178 126,178
2025-2029 377,000 256,707 633,707
2030-2034 410,000 222,583 632,583
2035-2039 447,000 185,465 632,465
2040-2044 488,000 144,917 632,917
2045-2049 532,000 100,678 632,678
2050-2054 580,000 52,500 632,500
2055-2056 248,000 6,545 254,545
Total 3,427,000 $ 1,257,358 $ 4,684,358 $
45 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 8 – GOVERNMENTAL ACTIVITIES LONG-TERM DEBT (CONTINUED) Compensated Absences
The short-term portion of the liability is determined to be the amount due to employees for future absences, which is attributable to services already rendered, and which is expected to be paid during the next fiscal year. The general fund is expected to liquidate approximately 75 percent of the liability, the WWTP special revenue fund approximately 10 percent, and other funds, the remaining 15 percent. 1998 Revenue Refunding Bonds and 2019 Revenue Refunding Bonds The former Redevelopment Agency and the Taft Financing Authority entered into a loan agreement dated November 1, 1998 pursuant to which the former Redevelopment Agency borrowed proceeds of the 1998 Revenue Refunding bonds and agreed to make loan payments to the Taft Financing Authority. On December 1, 1998, the Taft Financing Authority issued $5,060,800 of 1998 Revenue Refunding Bonds for the purpose of refinancing the 1993 Revenue Bonds and certain loans from the City of Taft. The 1998 Revenue Bonds interest rates range from 4.25 to 5.80%. Interest is payable semiannually each January 1 and July 1 and principal is paid annually each January 1 through 2028. Tax increment revenue is pledged as collateral for the repayment of the bonds. In addition, the City of Taft agreed to lease the police station and the lease payments were pledged to the payment of the 1998 Revenue Bonds. After dissolution of the Redevelopment Agency, these bonds were paid from the Successor Agency Trust Fund with the City of Taft’s General Fund paying to the Successor Agency Trust Fund the lease payment each year.

The lease portion of the debt of the 1998 Revenue Refunding Bonds should have been recorded as longterm debt of the governmental activities and not as a liability of the Successor Agency Trust Fund. On July 1, 2018, the City of Taft recorded an opening balance adjustment for the remaining principal balance of the lease portion of the 1998 Revenue Refunding Bonds of $905,000.

The City, the Taft Public Financing Authority, and the Successor Agency Trust Fund desired to refinance the 1998 Revenue bonds. On June 1, 2019, the Taft Public Financing Authority issued $2,310,000 Revenue Refunding Bonds to refinance the 1998 Revenue bonds to pay off the remaining outstanding debt of the 1998 Revenue bonds for both the City of Taft and the Successor Agency. The City of Taft paid the outstanding principal of $905,000 on the 1998 Revenue Refunding Bonds to reduce the outstanding principal to $0 as of June 30, 2019. The present value of the savings on the prior debt is $196,462.Principal and interest are due beginning August 1, 2019 and are due semiannually on August 1st and February 1st through February 2025. The City’s principal outstanding for the 2019 Revenue Refunding Bonds was $532,000 as of June 30, 2019.
2019 Revenue Refunding Bonds Lease Portion maturity schedule

PRINCIPAL INTEREST TOTAL
2020 87,000 $ 10,260 $ 97,260 $
2021 85,000 13,298 98,298
2022 83,000 10,644 93,644
2023 86,000 8,023 94,023
2024 88,000 5,307 93,307
2025 103,000 2,418 105,418
Total $ 49,950 532,000 $ 581,950 $
46 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 9 – BUSINESS-TYPE ACTIVITIES LONG-TERM DEBT
During the fiscal year ended June 30, 2019, the following changes occurred to the business-type activities long-term liabilities:

Compensated Absences
The liability is recorded in the various funds and is determined to be the amount due to employees for future absences, which is attributable to services already rendered. The amount estimated to be paid during the next fiscal year is classified with current liabilities, with the remainder classified with noncurrent liabilities.

NOTE 10 – PENSION PLAN
A. General Information about the Pension Plan
Plan Descriptions - All qualified employees are eligible to participate in the City’s separate Safety (fire and police) and Miscellaneous (all other) plans, cost-sharing multiple employers defined benefit pension plans administered by the California Public Employees' Retirement System (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 Local Government 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.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The costof-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plans’ provisions and benefits in effect on June 30, 2019, are summarized as follows:

Balance Balance Due in
Business type activities July 1, 2018 Additions Deletions June 30, 2019 One Year Compensated absences 216,685 $ 17,251 $ - $ 233,936 $ 58,483 $ Total business-type activities 216,685 $ 17,251 $ - $ 233,936 $ 58,483 $ Tier I Tier II Pepra
Hire date Prior to October 3, 1996 On or after October 3, 1996 On or after January 1, 2013 Benefit formula 2.0%@50 2.0%@55 2.0%@57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.4% to 2.0% 1.426% to 2.0% Required employee contribution rates 8.936% 6.92% 9.500% Required employer contribution rates 15.719% 12.848% 10.020% City Safety Plan
47 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 – PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) The Plans’ provisions and benefits in effect on June 30, 2019, are summarized as follows (Continued):

Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the fiscal 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 fiscal year ended June 30, 2019, the contributions recognized as part of pension expense were as follows:

Contributions – employer (Safety Plan) $124,164
Contributions – employer (Miscellaneous Plan) $597,139
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2019, the City reported net pension liability for its proportionate share of the net pension liability in the amount of $9,767,574.

The City’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2017 and 2018 was as follows:

Tier I PEPRA
Hire date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.0%@55 2.0%@62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 1.4% to 2.4% 1.0% to 2.5% Required employee contribution rates 7.00% 6.25%
Required employer contribution rates 8.892% 6.842%
City Miscellaneous Plan
Safety Miscellaneous Combined Total
Proportion - June 30, 2017 0.08017% 0.12635% 0.20652%
Proportion - June 30, 2018 0.08288% 0.13014% 0.21302%
Change - Increase 0.00271% 0.00379% 0.00650%
48 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 – PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the fiscal year ended June 30, 2019, the City recognized pension expense of $438,318. On June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The City reported $1,093,954 as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual
experience 292,671 $ (64,433) $
Changes of assumptions 1,036,283 (201,410)
Changes of employer's proportions 424,810 (219,855)
Net difference between projected and actual
earnings on pension plan investments 57,172
Changes in proportion and differences
between City contributions and
proportionate share of contributions (258,331)
City contributions subsequent to the
measurement date 1,093,954
$ (744,029) 2,904,890 $
Fiscal Year Ended
June 30
2020 857,707 $
2021 542,346
2022 (255,350)
2023 (77,796)
49 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 – PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions - The total pension liabilities in the June 30, 2017 actuarial valuations were determined using the following actuarial assumptions:

All other actuarial assumptions used in the June 30, 2017 valuation use the results of CalPERS Experience Study and Review of Actuarial Assumptions – December 2017, including updates to salary increase, mortality, and retirement rates, as a basis. The experience study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate - The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed 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 Plans 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 pension plan investments was applied to all periods of projected benefits payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

Safety Miscellaneous
Valuation Date June 30, 2017 June 30, 2017
Measurement Date June 30, 2018 June 30, 2018
Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary increases** Varies by entry Age and Service Varies by entry Age and Service Investment Rate of Return 7.15% 7.15%
Mortality* Derived using CalPERS' Derived using CalPERS' Membership Data for all Membership Data for all
Funds Funds
* The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale MP-2016. For more details on this table, please refer to the 2017 experience report. 50 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 – PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11 plus years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table on the next page reflects the long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate -The following presents the net pension liability of the Local Government for each Plan, calculated using the discount rate for each Plan, 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 or 1 percentage point higher than the current rate:

New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (a) Years 11+ (b)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 77.00% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.

Safety Miscellaneous Combined Total
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability 7,375,080 $ 7,927,553 $ 15,302,633 $ Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability 4,862,926 $ 4,904,648 $ 9,767,574 $ 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability 2,804,666 $ 2,409,290 $ 5,213,956 $ 51 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 – PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 11 – NET POSITION AND FUND BALANCES
Governmental and Business -Type Activities
Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. In the Government-wide financial statements, proprietary fund financial statements, and private-purpose trust fund financial statements, net position is classified as either net investment in capital assets, restricted, or unrestricted.
 Net Investment in Capital Assets describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
 Restricted describes the portion of net position, which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements, capital projects, and deferred improvement funds restricted to low and moderate income housing purposes.
 Unrestricted describes the portion of net position which is not restricted as to use.

When both restricted and unrestricted net position are available, restricted resources are depleted first before the unrestricted resources are used.

Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the government funds.

NOTE 12 – RISK MANAGEMENT
The City is exposed to various risks of loss related to theft of, damage to, and destruction of assets including low value vehicle coverage; errors and omissions; injuries to employees and natural disasters. The City participates with other public entities in a joint venture under a joint powers agreement, which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA) as a common risk management and insurance program. The relationship between the City and CSJVRMA is such that CSJVRMA is not a component of the City for financial reporting purposes.

52 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 12 – RISK MANAGEMENT (CONTINUED)
CSJVRMA maintains separate records for each year of participation. The records track cash paid to the RMA through deposit premium assessments, the City’s self-insurance retention portion of claims paid, and the City’s allocation of shared risks. Three years after the close of the workers’ compensation coverage year and five years after the close of the general liability coverage year, CSJVRMA assesses the status of all members for that year and issues a refund to a member if it has a positive balance (i.e., payout and reserve experience is less than premium paid) or collects any deficit.

Worker’s Compensation
The City is self-insured for the first $50,000 of each claim. The City participates in a risk sharing pool through CSJVRMA for claims between $50,000 and $500,000. The CSJVRMA participates in another excess pool, which provides workers’ compensation coverage from $500,000 to $4,500,000 and purchases excess reinsurance above $5,000,000 to the statutory limit through the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX).

General Liability
The City is self-insured for the first $25,000 of each claim. The City participates in a risk sharing pool through CSJVRMA for claims between $25,000 and $1,000,000. The CSJVRMA is a member of the California Affiliated Risk Management Authorities (CARMA) program for the purpose of obtaining excess coverage in a risk sharing pool. The CARMA program provides coverage from $1,000,000 to $29,000,000.

The CARMA program has 54 members participating in the pooled liability program during the 2018/2019 fiscal year. CSJVRMA was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets three to four times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

The financial position and results of operations for the CSJVRMA as of June 30, 2019, is presented below:

At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be divided among the cities in accordance with its governing documents. Audited financial statements are available from the Central San Joaquin Risk Management Authority at 6371 Auburn Boulevard, Citrus Heights, CA 95621.

During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior fiscal year.

Total Assets 128,442,162 $
Total Liabilities 109,661,346 $
Total Retained Earnings 18,780,816
Total Liabilities and Retained Earnings 128,442,162 $
Revenues for Fiscal Year 53,699,356 $
Expenses for Fiscal Year 52,943,942
Change in Net Position 755,414 $
53 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 13 – COMMITMENTS AND CONTINGENCIES
The City has received State and Federal funds for specific purposes that are subject to review by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.

From time to time, the City is involved in various litigation matters incidental to operations, which in the opinion of the City, the ultimate outcome will not a material effect on operations.

The City is being sued by the Taft Union High School District and it is not possible to accurately estimate the amount of potential loss of this case. If the City is found liable in some capacity, then liability might range between $500,000 and $4,000,000.

The City is a lessor in certain month – to – month leases. In addition, the City leases properties under noncancelable operating leases. Minimum rents due under these leases are as follows:

NOTE 14 – FUND EQUITY
Fund Balance – Governmental Funds
As of June 30, 2019, fund balances of the governmental funds are classified as follows:
 Nonspendable – amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.  Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.  Committed – amounts that can be used only for specific purposes determined by a formal action of the governing board as the highest level of decision-making authority for the City.

Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the governing board.
 Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the City’s adopted policy, only the governing board or director may assign amounts for specific purposes.  Unassigned – all other spendable amounts.

Fiscal Year
Ending
June 30, Amount
2020 36,000 $
2021 36,000
2022 36,000
2023 36,000
2024 36,000
Thereafter 162,000
Total 342,000 $
54 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 14 – FUND EQUITY (CONTINUED)
Fund Balance – Governmental Funds
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally, unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions.

NOTE 15 – AGREEMENTS
Under agreements between the City of Taft, the Taft Heights Sanitation District, and the Ford City Sanitation District dated May 29, 1950, amended on March 7, 1966, restated April 24, 1972, and restated August 21, 1991, covering the “Joint Sewage Project – 1972,” the City operates and maintains the Wastewater Treatment Plant (WWTP) serving the City and the two Sanitation Districts. The City includes the activities of the WWTP within its fund structure since the Agreement specifies that the City shall act on its own behalf and on behalf of the other Districts in operating and maintaining the WWTP. The City maintains the accounting records for the WWTP and has physical custody of its assets. The Agreement specifies that the City shall contribute 52 percent of the revenue required to operate and maintain the WWTP, with the other Districts providing a combined 48 percent of the operating revenue. Since the WWTP is not a separate legal entity, it is not considered a component unit.

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Taft that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

General
Revolving
Loan Fund
CDBG
Revolving
Loan Fund
Home
WWTP
Special
Revenue
WWTP
Capital
Projects
Total Non-major
Governmental
Funds Total
Nonspendable:

Prepaid items $ 149,815 $ - $ - $ 522 $ - $ 2,127 152,464 $ Total Nonspendable 149,815 - - 522 - 2,127 152,464

Restricted for:

Streets and roads - - - - - 413,794 4 13,794
Public safety - - - - - 256,984 256,9 84
Public works - - - 328,882 - - 328,88 2
Community development - - 45,482 - - 32,628 78,110
Capital Projects - WWTP - - - - 4,134,863 - 4,134,863
Total Restricted - - 45,482 328,882 4,134,863 703,406 5,212,633

Unassigned (88,130) (92) - - - (71,844) (160,066)

Total Fund Balances $ 61,685 $ (92) $ 45,482 $ 329,404 $ 4,134,863 $ 633,689 $ 5,205,031

55 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Taft that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the City or other unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence as the date of the dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the state Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

Prior to that date, the final seven months of activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

56 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Capital Asset activity for the fiscal year ended June 30, 2019 was as follows:

Loans payable to the City of Taft totaling $1,588,959 were made to the former Redevelopment Agency by the City for the purchase of land for redevelopment purposes. These loans were approved to be repaid by the California Department of Finance and are listed on the Recognized Obligation Payment Schedule (ROPS) of the Successor Agency Trust Fund. There is no scheduled date of repayment as all taxes and assessments collected each year are currently being used to satisfy other obligations of the Successor Agency Trust Fund that are due and payable.

The following is a schedule of long-term liabilities for the fiscal year ended June 30, 2019:

The former Redevelopment Agency and the Taft Financing Authority entered into a loan agreement dated November 1, 1998 pursuant to which the former Redevelopment Agency borrowed proceeds of the 1998 Revenue Refunding bonds and agreed to make loan payments to the Taft Financing Authority. On December 1, 1998, the Taft Financing Authority issued $5,060,800 of 1998 Revenue Refunding Bonds for the purpose of refinancing the 1993 Revenue Bonds and certain loans from the City of Taft. The 1998 Revenue Bonds interest rates range from 4.25 to 5.80%. Interest is payable semiannually each January 1 and July 1 and principal is paid annually each January 1 through 2028. Tax increment revenue is pledged as collateral for the repayment of the bonds. In addition, the City of Taft agreed to lease the police station and the lease payments were pledged to the payment of the 1998 Revenue Bonds. After dissolution of the Redevelopment Agency, these bonds were paid from the Successor Agency Trust Fund.

Balance Balance
July 1, 2018 Additions Deletions June 30, 2019
Capital assets not being depreciated:

Land 1,698,163 $ - $ - $ 1,698,163 $
Total capital assets not being depreciated 1,698,163 - - 1,698,163 Capital assets being depreciated:

Structures and improvements 407,116 - - 407,116
Total capital assets being depreciated 407,116 - - 407,116 Less accumulated depreciation for:

Structures and improvements (246,484) (10,178) - (256,662) Total accumulated depreciation (246,484) (10,178) - (256,662) Total capital assets, being depreciated
net of accumulated depreciation 160,632 (10,178) - 150,454 Total Governmental activities capital assets,
net of accumulated depreciation 1,858,795 $ (10,178) $ - $ 1,848,617 $ Balance Prior Period Balance Due in
July 1, 2018 Adjustment Additions Deletions June 30, 2019 One Year 1998 Revenue Refunding Bonds 2,680,000 $ (905,000) $ - $ (1,775,000) $ - $ - $ 2019 Revenue Refunding Bonds - - 1,778,000 - 1,778,000 191,000 Total long-term liabilities 2,680,000 $ (905,000) $ 1,778,000 $ (1,775,000) $ 1,778,000 $ 191,000 $ 57 CITY OF TAFT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
The portion of the 1998 Revenue Bonds related to the lease of the police station should have been reported as a long-term liability of the governmental activities of the City. Accordingly, the Successor Agency Trust reduced the opening net deficit by $557,053 as of July 1, 2018. The restatement consisted of an increase in net position of $905,000 for the principal balance related to the lease of the police statement as of June 30, 2018, an increase of $26,245 for the interest payable as of June 30, 2018 and a decrease in net position for the cash with fiscal agents of $374,192.

The City, the Taft Public Financing Authority, and the Successor Agency Trust Fund desired to refinance the 1998 Revenue bonds. On June 1, 2019, the Taft Public Financing Authority issued $2,310,000 Revenue Refunding Bonds and entered into a loan agreement with the Successor Agency Trust Fund to acquire the aggregate principal of $1,778,000. The Taft Financing Authority assigned these payments to the former Redevelopment Agency
Taft Public Financing Authority issued the 2019 Revenue Refunding Bonds for $2,310,000 of which $1,778,000 was recorded as a long-term liability of the Successor Agency Trust. The first payment of principal and interest is due on August 1, 2019. Principal and interest are due semiannually on August 1st and February 1 with the last payment due on February 1, 2028. The bonds have an interest rate of 3.14%.

The maturity schedule of the bonds is as follows:

NOTE 17 - OTHER MATTERS
Pursuant to City Resolution No. 3392-12 dated January 11, 2012, which was in part the result of the California Supreme Court’s ruling in California Redevelopment Association vs. Matosantos Case No.

S194861 which upheld AB26x1 that dissolved all of the redevelopment agencies in California, the City determined that it is in the best interests to serve as Successor Agency.

Further, pursuant to the above Resolution, the City had the Taft Housing Authority assumed all rights, powers, assets, liabilities, duties, and obligations associated with housing activities of the Taft Community Development Agency. City Resolution 3284, dated March 15, 2011, created a Housing Authority and designated City Council members as the Housing Authority Commissioners. Presently, any Taft Housing Authority expenditure actions need approval of the Successor Agency.

PRINCIPAL INTEREST TOTAL
2020 191,000 $ 35,108 $ 226,108 $
2021 179,000 48,435 227,435
2022 181,000 42,798 223,798
2023 188,000 37,052 225,052
2024 194,000 31,101 225,101
2025-2029 845,000 60,900 905,900
Total $ 255,394 1,778,000 $ 2,033,394 $
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59 CITY OF TAFT

MAJOR FUND BUDGETARY COMPARISON SCHEDULES
JUNE 30, 2019
Budgetary comparison schedules are presented as Required Supplementary Information for the General Fund and WTTP Special Revenue Fund as provided for by GASB Statement No. 34. The budgetary comparison schedules for the remaining major funds are presented to aid in additional analysis and is not a required part of the basic financial statements or Required Supplementary Information.

Budgets were not adopted for the Revolving Loan Fund CDBG and Revolving Loan Fund Home. 60 This page intentionally left blank

CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Original Budget Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Property taxes $ 1,506,920 1,383,120 $ $ 21,350 1,528,270 $ Sales taxes 1,209,610 1,208,687 274,458 1,484,068
Other taxes 531,599 479,013 164,255 695,854
Licenses and permits, and fees 259,893 240,294 23,248 283,141 Fines and forfeitures 2,104 2,300 284 2,388
Use of money and property 215,548 114,147 15,836 231,384 Intergovernmental 562,049 49,100 (12,373) 549,676
Current services charges 2,846,009 2,847,858 (44,676) 2,801,333 Other 69,641 13,240 47,615 117,256
Total revenues 6,337,759 7,203,373 7,693,370 489,997

EXPENDITURES
Current:

General government 1,613,583 1,547,363 74,406 1,539,177 Public safety 3,394,694 3,332,358 3,256,944 75,414
Public works 1,275,863 1,306,647 93,708 1,182,155
Community development 555,974 686,972 (156,668) 712,642 Capital outlay 1,038,892 1,021,000 (360,114) 1,399,006
Debt service :

Debt issuance cost 46,967 46,967
Principal 905,000 70,000 905,000
Interest 80,192 52,490 80,192
Total expenditures 8,079,166 8,848,829 9,122,083 (273,254) Excess (deficiency) of revenues
over expenditures (1,741,407) (1,645,456) (1,428,713) 216,743

OTHER FINANCING SOURCES (USES)
Proceeds from issuance of debt 532,000 532,000 532,000
Transfers in 756,220 1,741,407 (733,376) 22,844
Total other financing sources (uses) 2,273,407 1,288,220 554,844 (733,376) Net change in fund balance 532,000 (357,236) (873,869) (516,633) Fund balance, beginning of fiscal year 935,554 935,554 935,554 - Fund balance, end of fiscal year $ 578,318 1,467,554 $ 61,685 $ (516,633) $ 61 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

WWTP SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Original
Budget Final Budget
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)

REVENUES
Use of money and property - $ - $ 952 $ 952 $
Intergovernmental 1,002,711 1,002,711 1,562,092 559,381 Current service charges 46,845 38,620 57,280 10,435
Other 809 - 809 -
Total revenues 1,041,331 1,050,365 1,621,133 570,768

EXPENDITURES
Current:

General government 772,166 752,745 713,219 58,947
Capital outlay 10,000 3,532 7,145 (3,613)
Debt service:

Principal retirement 65,000 65,000 65,000 -
Interest and fiscal charges 65,944 56,331 67,942 (1,998) Total Expenditures 884,076 906,642 853,306 53,336
Excess (Deficiency) of Revenues
Over Expenditures 157,255 143,723 767,827 624,104

OTHER FINANCING SOURCES (USES)
Transfers in 10,000 3,532 - (3,532)
Transfers out (167,255) (147,255) (131,200) 16,055
Total other financing sources (uses) (157,255) (143,723) (131,200) 12,523 Net change in fund balance - - 636,627 636,627
Fund balance (deficit), beginning of fiscal year (307,223) (307,223) (307,223) - Fund balance (deficit), end of the fiscal year (307,223) $ (307,223) $ 329,404 $ $ 636,627 62 6/30/18 6/30/17 6/30/16 6/30/15 6/30/14
FY 18-19 FY 17-18 FY 16-17 FY 15-16 FY 14-15
Plan's proportion of the Net
Pension Liability (Asset) 0.10136% 0.09853% 0.09660% 0.09264% 0.09815% Plan's proportionate share
of the Net Pension Liability
(Asset) 9,767,574 $ 9,771,417 $ 8,359,216 $ 6,358,590 $ 6,107,304 $ Covered employee payroll*** $ 6,967,796 6,721,235 $ 6,380,226 $ 6,246,307 $ 3,097,235 $ Plan's proportionate share of the
of the Net Pension Liability
(Asset) as a percentage of its
covered employee payroll
employee payroll. 145.32% 140.24% 131.02% 101.80% 197.19% Plan's fiduciary net position
(in thousands) 29,308,589 $ 27,244,095 $ 24,705,532 $ 27,141,897 $ 26,493,201 $ Plan's fiduciary net position as a
percentage of the Plan's Total
Pension Liability 75.26% 73.31% 74.06% 81.02% 81.92%
*Historical information is required only for measurement periods for which GASB 68 is applicable. **Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown. ***Covered-Employee Payroll is based on pensionable earnings provided by the employer. However, GASB 68 defined covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different from total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Measurement Date*
Schedule of Plan's Proportionate Share of the Net Pension Liability and Related Ratios

CITY OF TAFT

REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
Cost Sharing Defined Benefit Pension Plan
Last 10 Fiscal Years**
63 64
This page intentionally left blank
FY 18-19 FY 17-18 FY 16-17 FY 15-16 FY 14-15
Actuarially Determined Contribution** 721,303 $ 883,568 $ 576,929 $ 667,884 $ 553,481 $ Contributions in Relation to the
Actuarially Determined Contribution ** 721,303 883,603 776,336 1,221,754 553,481 Contribution Deficiency (Excess) - $ (35) $ (199,407) $ (553,870) $ - $ Covered Employee Payroll**** 6,721,235 $ 6,967,796 $ 6,380,226 $ 6,246,307 $ 3,097,235 $ Contributions as a Percentage of
Covered Employee Payroll**** 10.73% 12.68% 12.17% 19.56% 17.87% * Historical information is required only for measurement periods for which GASB 68 is applicable. **Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed liabilities.
*** Fiscal year 2015 was the 1st year of implementation, therefore only five years are shown. ****Covered-Employee Payroll is based on pensionable earnings provided by the employer. GASB 68 defines coveredemployee payroll as the total of employees that are provided pensions through the pension plan. If pensionable earnings are different from total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2017-18 were from the June 30, 2017 funding valuation reports.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details see the June 30, 2017 public funding valuations.

Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2017 funding valuation report.

Inflation 2.50%
Salary Increases 3.00%
Investment Rate of Return 7.15%
Retirement Age Based on the December 2017 CALPERS Experience Study.

Mortality Based on the mortality table used based on CalPERS' specific data, The table includes 15 years of mortality improvements using Society of Actuaries Scale MP-2016.

For more details on this table, please refer to the 2017 experience study report.

Schedule of Contributions *

CITY OF TAFT

REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
Cost Sharing Defined Benefit Pension Plan
Last 10 Fiscal Years***
65 66
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67 CITY OF TAFT

MAJOR CAPITAL PROJECT FUND
JUNE 30, 2019
WWTP Capital Projects Fund
The WWTP Capital Projects Fund is used to account for capital asset acquisition and construction of the wastewater treatment plant.

CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

WWTP CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Original
Budget Final Budget
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 20,000 $ 38,055 $ 61,548 $ 23,493 $ Total revenues 20,000 38,055 61,548 23,493

OTHER FINANCING SOURCES (USES)
Transfers in 147,255 147,255 131,200 (16,055)
Transfers out (167,255) (185,310) - 185,310
Total other financing sources (uses) (20,000) (38,055) 131,200 169,255 Net change in fund balance - - 192,748 192,748
Fund balance, beginning of fiscal year 3,942,115 3,942,115 3,942,115 - Fund balance, end of the fiscal year 3,942,115 $ 3,942,115 $ 4,134,863 $ $ 192,748 68 69

CITY OF TAFT

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019

SPECIAL REVENUE FUNDS
Traffic Safety
This Fund was established to receive the City’s share of traffic fines and reimburse the General Fund for police activities related to traffic safety and traffic control devices.

Gas Tax
This fund was established to receive a share of the revenues derived from the State taxes on gasoline.

Inmate Welfare Trust
The inmate welfare trust fund account is established and maintained pursuant to Penal Code Sections 5005, 5006.1, 5007, and 5008 and the Business Administration Manual, Chapter 4200. All entries to the inmate welfare trust fund are supported by source documentation.

Transportation and Development Act (TDA)
This fund was established to receive and expend the City’s allocation of sales tax under SB 325. This bill reduced the State’s percentage of sales tax by 1.4 percent and allowed the counties within the State of California to increase their sales tax percentage by ¼ percent. The funds generated by this ¼ percent are allocated to the counties and a portion of this is then allocated to the cities within each county and restricted to street purposes.

Cal Home Revolving Loan
This fund was established to account for all CalHome grant received by the City.

Tarp Revolving Loan
This fund was established to account for funds received from the State of California CDBG program whose intent is to provide financing to new and existing businesses for a healthy economic environment.

Asset Forfeiture
This fund was established to receive funds that are seized from narcotics dealers or following the sale of dealer assets.

Landscape Assessment District
This fund was established in connection with a single-family housing development project (Tract No. 5574) and will be used to record expenditures and revenues relative to formation and operation of a Landscape Maintenance District in that tract.

Crime Prevention
This fund was established to account for receipts from the State COPS grant program and related expenditures.

Traffic Congestion Relief
This Fund was established to utilize grant funds for road improvements and projects designed to relieve traffic congestion.

Inmate
Traffic Gas Welfare
Safety Tax Trust TDA
ASSETS
Cash and investments $ 239,942 21,326 $ 58,990 $ 110,400 $ Receivables:

Accounts 31,033 - - -
Interest 418 - - -
Notes - - - -
Prepaid items - - 144 -
Total assets 21,326 $ 271,393 $ 59,134 $ 110,400 $

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable $ - - $ 8,283 $ 18 $
Accrued payroll - - 354 -
Due to other funds - - - -
Total liabilities - - 8,637 18

DEFERRED INFLOW OF RESOURCES
Deferred revenue - - - -

FUND BALANCES
Nonspendable - - 144 -
Restricted 21,326 271,393 50,353 110,382
Unassigned - - - -
Total fund balances (deficits) 21,326 271,393 50,497 110,382 Total liabilities, deferred inflow
of resources, and fund balances 21,326 $ 271,393 $ 59,134 $ 110,400 $

NON-MAJOR GOVERNMENTAL FUNDS

CITY OF TAFT
Special Revenue Funds
June 30, 2019

COMBINING BALANCE SHEET
70 Total
Cal Home TARP Landscape Traffic Non-Major
Revolving Revolving Asset Assessment Crime Congestion Governmental Loan Loan Forfeiture District Prevention Relief Funds
$ 842 32,569 $ 39,057 $ - $ 168,600 $ 10,693 $ $ 682,419 - - - 3 - - 31,036
- 59 81 - 218 - 776
- 263,699 - - - - 263,699
- - - 49 1,934 - 2,127
$ 842 296,327 $ 39,138 $ 52 $ 170,752 $ 10,693 $ 980,057 $ $ 842 - $ - $ 239 $ - $ - $ $ 9,382
- - - 200 1,325 - 1,879
- - - 71,408 - - 71,408
842 - - 71,847 1,325 - 82,669
- 263,699 - - - - 263,699
- - - 49 1,934 - 2,127
- 32,628 39,138 - 167,493 10,693 703,406
- - - (71,844) - - (71,844)
- 32,628 39,138 (71,795) 169,427 10,693 633,689
$ 842 296,327 $ 39,138 $ 52 $ 170,752 $ 10,693 $ 980,057 $ Special Revenue Funds
71 Inmate
Traffic Gas Welfare
Safety Tax Trust TDA

REVENUES
Fines and forfeitures $ - 2,568 $ - $ - $
Use of money and property 2,186 - 63 -
Intergovernmental 173,883 - - -
Current service charges - - 66,941 -
Other - - 6,604 -
Total revenues 2,568 176,069 73,608 -

EXPENDITURES
Current:

Public safety - - - -
Public works - - - -
Health and welfare - - 66,068 -
Total expenditures - - 66,068 -
Excess of revenues
over (under) expenditures 2,568 176,069 7,540 -

OTHER FINANCING SOURCES (USES)
Transfers out (9,789) - - -
Total other financing sources (uses) - (9,789) - -
Net change in fund balances 2,568 166,280 7,540 -
Fund balances (deficits), beginning of fiscal year 18,758 105,113 42,957 110,382 Fund balances (deficits), end of fiscal year $ 271,393 21,326 $ 50,497 $ 110,382 $ Special Revenue Funds

CITY OF TAFT

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
72 Total
Cal Home TARP Landscape Traffic Non-Major
Revolving Revolving Asset Assessment Crime Congestion Governmental Loan Loan Forfeiture District Prevention Relief Funds
$ - - $ - $ - $ - $ - $ $ 2,568
- 424 523 3 2,328 - 5,527
9,313 - 4,086 - 148,747 10,693 346,722
- - - 11,369 - - 78,310
- - - - - - 6,604
9,313 424 4,609 11,372 151,075 10,693 439,731
- - 10,812 - 120,358 - 131,170
- - - 18,858 - - 18,858
- - - - - - 66,068
- - 10,812 18,858 120,358 - 216,096
9,313 424 (6,203) (7,486) 30,717 10,693 223,635
(9,313) - (4,705) - - - (23,807)
(9,313) - (4,705) - - - (23,807)
- 424 (10,908) (7,486) 30,717 10,693 199,828
- 32,204 50,046 (64,309) 138,710 - 433,861
$ - 32,628 $ 39,138 $ (71,795) $ 169,427 $ 10,693 $ 633,689 $ Special Revenue Funds
73 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

TRAFFIC SAFETY SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Fines and forfeitures 2,500 $ 2,568 $ 68 $
Total revenues 2,500 2,568 68

OTHER FINANCING SOURCES (USES)
Transfers out (2,500) - 2,500
Total other financing sources (uses) (2,500) - 2,500
Net change in fund balance - 2,568 2,568
Fund balance, beginning of fiscal year 18,758 18,758 -
Fund balance, end of fiscal year $ 21,326 18,758 $ 2,568 $ 74 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 800 $ 2,186 $ 1,386 $
Intergovernmental 344,292 173,883 (170,409)
Total revenues 345,092 176,069 (169,023)

OTHER FINANCING SOURCES (USES)
Transfers out (345,092) (9,789) 335,303
Total other financing sources (uses) (345,092) (9,789) 335,303 Net change in fund balance - 166,280 166,280
Fund balance, beginning of fiscal year 105,113 105,113 - Fund balance, end of fiscal year $ 271,393 105,113 $ 166,280 $ 75 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

INMATE WELFARE TRUST SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 50 $ 63 $ 13 $
Current service charges 68,000 66,941 (1,059)
Other 6,325 6,604 279
Total revenues 74,375 73,608 (767)

EXPENDITURES
Current:

Health and welfare 74,375 66,068 8,307
Total expenditures 74,375 66,068 8,307
Net change in fund balance - 7,540 7,540
Fund balance, beginning of fiscal year 42,957 42,957 -
Fund balance, end of fiscal year $ 50,497 42,957 $ 7,540 $ 76 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

TDA SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental 308,448 $ - $ (308,448) $
Total revenues 308,448 - (308,448)

OTHER FINANCING SOURCES (USES)
Transfers out (308,448) - 308,448
Total other financing sources (uses) (308,448) - 308,448 Net change in fund balance - - -
Fund balance, beginning of fiscal year 110,382 110,382 - Fund balance, end of fiscal year $ 110,382 110,382 $ - $ 77 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

ASSET FORFEITURE SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 240 $ 523 $ 283 $
Intergovernmental - 4,086 4,086
Total revenues 240 4,609 4,369

EXPENDITURES
Current:

Public safety 7,608 10,812 (3,204)
Total expenditures 7,608 10,812 (3,204)
Excess (deficiency) of revenues
over expenditures (7,368) (6,203) 1,165

OTHER FINANCING SOURCES (USES)
Transfers out 7,368 (4,705) (12,073)
Total other financing sources (uses) 7,368 (4,705) (12,073) Net change in fund balance - (10,908) (10,908)
Fund balance, beginning of fiscal year 50,046 50,046 -
Fund balance, end of fiscal year $ 39,138 50,046 $ (10,908) $ 78 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

LANDSCAPE ASSESSMENT SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 2 $ 3 $ 1 $
Current service charges 11,289 11,369 80
Total revenues 11,291 11,372 81

EXPENDITURES
Current:

Public works 19,471 18,858 613
Total expenditures 19,471 18,858 613
Net change in fund balance (8,180) (7,486) 694
Fund balance (deficit), beginning of fiscal year (64,309) (64,309) - Fund balance (deficit), end of fiscal year (72,489) $ (71,795) $ 694 $ 79 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

CRIME PREVENTION SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of money and property 1,119 $ 2,328 $ 1,209 $
Intergovernmental 148,747 148,747 -
Total revenues 149,866 151,075 1,209

EXPENDITURES
Current:

Public safety 137,275 120,358 16,917
Total expenditures 137,275 120,358 16,917
Excess (deficiency) of revenues
over expenditures 12,591 30,717 18,126

OTHER FINANCING SOURCES (USES)
Transfers out (12,591) - 12,591
Total other financing sources (uses) (12,591) - 12,591
Net change in fund balance - 30,717 30,717
Fund balance, beginning of fiscal year 138,710 138,710 - Fund balance, end of fiscal year $ 169,427 138,710 $ 30,717 $ 80 CITY OF TAFT

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Final Budget Actual Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental 10,693 $ 10,693 $ - $
Total revenues 10,693 10,693 -

OTHER FINANCING SOURCES (USES)
Transfers out (10,693) - 10,693
Total other financing sources (uses) (10,693) - 10,693
Net change in fund balance - 10,693 10,693
Fund balance, beginning of fiscal year - - -
Fund balance, end of fiscal year $ 10,693 - $ 10,693 $
81 82
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83 CITY OF TAFT

PRIVATE-PURPOSE TRUST FUNDS AND AGENCY FUNDS
JUNE 30, 2019
Private-Purpose Trust Funds are used to account for assets and liabilities held by the City of Taft in a trustee capacity.

Capital Projects Fund
This fund is used to account for capital assets and other activities of the former redevelopment agency.

Post RDA Debt Retirement Fund
This fund is used to account for administration and debt retirement activities related to the former redevelopment agency.

AGENCY FUNDS DESCRIPTION
Trust and agency funds were established to control money held by the City as agent or trustee. The collections reflected in these funds are not revenues to the City and disbursements do not represent expenditures of the City. Accordingly, these funds do not employ the budgetary accounting procedures used for the other funds.

Inmate Trust Fund
The Inmate Trust Account maintains those accounting records necessary to provide for the recording of all transactions affecting the inmate trust accounts. It also provides accurate and current information relative to each individual inmate trust account.
1997-A Lease Revenue Bond Fund
This fund is used to account for resources held related to nonobligatory conduit debt. The City acts as an agent by collecting payments and forwarding them to a trustee on behalf of the bondholders. 84 This page intentionally left blank

CITY OF TAFT

COMBINING STATEMENT OF NET POSITION

PRIVATE PURPOSE TRUST FUNDS
JUNE 30, 2019
Capital Projects
Fund
Post RDA Debt
Retirement Fund Total
ASSETS
Cash and investments $ 215,586 - $ $ 215,586
Interest receivable 351 - 351
Prepaid items 147 - 147
Capital assets - nondepreciable - 407,116 407,116
Capital assets - being depreciated - 1,698,163 1,698,163 Capital assets - accumulated depreciation - (256,662) (256,662) Total assets 1,848,617 216,084 2,064,701

LIABILITIES
Accounts payable 662 - 662
Accrued payroll 690 - 690
Advance due to City of Taft 1,588,959 - 1,588,959
Bonds payable 1,778,000 - 1,778,000
Total liabilities - 3,368,311 3,368,311

NET POSITION (DEFICIT)
Unrestricted 1,848,617 (3,152,227) (1,303,610)
Total Net Position (Deficit) 1,848,617 $ (3,152,227) $ (1,303,610) $ 85 Capital Projects
Fund
Post RDA Debt
Retirement Fund Total
Additions:

Investment revenue $ 90,775 - $ $ 90,775
Taxes and assessments 347,764 - 347,764
Total additions - 438,539 438,539
Deductions:

Community development 265,344 - 265,344
Interest expense 90,859 - 90,859
Depreciation - 10,178 10,178
Total deductions 10,178 356,203 366,381
Change in net position (10,178) 82,336 72,158
Net Position (Deficit) - July 1, 2018 1,858,795 (3,791,616) (1,932,821) Prior period adjustmentS - 557,053 557,053
Net Position (Deficit) , beginning of fiscal year, restated 1,858,795 (3,234,563) (1,375,768) Net Position (Deficit) - June 30, 2019 1,848,617 $ (3,152,227) $ (1,303,610) $

CITY OF TAFT

PRIVATE PURPOSE TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
86 CITY OF TAFT

STATEMENT OF ASSETS AND LIABILITIES

AGENCY FUND
JUNE 30, 2019
Inmate Trust
Fund
ASSETS
Cash and investments $ 87,788
Total assets 87,788 $

LIABILITIES
Accounts payable $ 5,074
Due to inmates 82,714
Total liabilities 87,788 $

87 CITY OF TAFT

AGENCY FUND

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
July 1, 2018
Balance Additions Reductions
June 30, 2019
Balance
ASSETS
Cash and investments 117,244 $ 633,511 $ (662,967) $ 87,788 $ Total assets 117,244 $ 633,511 $ (662,967) $ 87,788 $

LIABILITIES
Accounts payable 17,454 $ 453,447 $ (465,827) $ 5,074 $ Due to inmates 99,790 630,612 (647,688) 82,714
Total liabilities 117,244 $ 1,084,059 $ (1,113,515) $ 87,788 $ Inmate Trust Fund
88 WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY-TAFT HEIGHTS

SANITATION DISTRICT

FINANCIAL STATEMENTS
JUNE 30, 2019

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY-TAFT HEIGHTS

SANITATION DISTRICT

FINANCIAL STATEMENTS
JUNE 30, 2019
Table of Contents
INDEPENDENT AUDITOR’S REPORT 1
BASIC FINANCIAL STATEMENTS:

Government-wide Financial Statements
Statement of Net Position 3
Statement of Activities 4
Fund Financial Statements
Balance Sheet – Governmental Funds 5
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 6
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 7
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 8 Notes to the Basic Financial Statements 9

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Special Revenue Fund 17

OTHER SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Capital Projects Fund 18
1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA MEMBER AMERICAN INSTITUTE OF C.P.A.’s • CALIFORNIA SOCIETY OF C.P.A.’s • CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS • CALIFORNIA ASSOCIATION OF SCHOOL

BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES RONALD A LEVY, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM AVENUE, SUITE E CRAIG A HARTZHEIM, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 HADLEY Y HUI, CPA TEL: 310.273.2745 TEL: 310.670.2745
ALEXANDER C HOM, CPA FAX: 310.670.1689 FAX: 310.670.1689 ADAM V GUISE, CPA www.mlhcpas.com www.mlhcpas.com

TRAVIS J HOLE, CPA
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
City of Taft/Ford City-Taft Heights
Sanitation District
Taft, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Wastewater Treatment Plant of the City of Taft / Ford City-Taft Heights Sanitation District (the WWTP), as of and for the fiscal year ended June 30, 2019, which collectively comprise the WWTP’s basic financial statements, as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Wastewater Treatment Plant of the City of Taft / Ford City-Taft Heights Sanitation District, California, as of June 30, 2019, and the respective changes in financial position, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 17 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the WWTP’s basic financial statements. The Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual – Capital Projects Fund is presented for the purpose of additional analysis and is not a required part of the basic financial statements. The Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual – Capital Projects Fund is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 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 information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 1, 2022, on our consideration of the WWTP’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 WWTP’s internal control over financial reporting and compliance.

Moss, Levy & Hartzheim, LLP
Culver City, California
March 1, 2022
2 GOVERNMENT-WIDE FINANCIAL STATEMENTS

THIS PAGE INTENTIONALLY LEFT BLANK
ASSETS
Current Assets:

Cash and investments $ 4,483,913
Accounts receivable 12,846
Interest receivable 7,180
Prepaids 522
Total Current Assets 4,504,461
Noncurrent Assets:

Capital assets:

Non-depreciable:

Land 32,519
Depreciable, net of accumulated depreciation:

Structures and improvements 4,534,555
Total Noncurrent Assets 4,567,074
Total Assets 9,071,535

LIABILITIES
Current Liabilities:

Accounts payable 37,918
Accrued payroll 2,276
Compensated absences 2,684
Certificates of participation (COP) payable 67,000
Total Current Liabilities 109,878
Noncurrent Liabilities:

Compensated absences 8,052
Certificates of participation (COP) payable 3,360,000
Total Noncurrent Liabilities 3,368,052
Total Liabilities 3,477,930

NET POSITION
Net investment in capital assets 1,140,074
Restricted 4,453,531
Total Net Position 5,593,605 $

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

STATEMENT OF NET POSITION
JUNE 30, 2019
Governmental
Activities
The notes to the basic financial statements are an integral part of this statement. 3 Net
(Expense)/Revenue
and Changes in
Net Position
Governmental
Expenses Activities
Governmental Activities:

General government $ 57,280 758,387 $ 1,562,092 $ - $ 860,985 $ Interest and fiscal charges 67,942 - - - (67,942)
Total Governmental Activities 826,329 $ 57,280 $ 1,562,092 $ - $ 793,043 General Revenues:

Investment earnings 62,500
Miscellaneous 809
Total General Revenues 63,309
Change in Net Position 856,352
Net Position, Beginning of Fiscal Year 4,737,253
Net Position, End of Fiscal Year $ 5,593,605
Function/Program
Program Revenues

WASTEWATER TREATMENT PLANT
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
The notes to the basic financial statements are an integral part of this statement. 4 FUND FINANCIAL STATEMENTS
ASSETS
Cash and investments $ 356,230 4,127,683 $ 4,483,913 $
Accounts receivable 12,846 - 12,846
Interest receivable - 7,180 7,180
Prepaid items 522 - 522
Total Assets $ 369,598 4,134,863 $ 4,504,461 $

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts payable $ 37,918 - $ 37,918 $
Accrued payroll 2,276 - 2,276
Total Liabilities 40,194 - 40,194

FUND BALANCES
Nonspendable 522 - 522
Restricted 328,882 4,134,863 4,463,745
Unassigned - - -
Total Fund Balances 329,404 4,134,863 4,464,267
Total Liabilities and Fund Balances $ 369,598 4,134,863 $ 4,504,461 $ WWTP
Capital
Projects
WWTP
Special
Revenue
Total
Governmental
Funds

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2019
The notes to the basic financial statements are an integral part of this statement. 5 Fund Balances of Governmental Funds 4,464,267 $
Amounts reported for governmental activities in the statement of net position are different because:

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. This balance reflects the accrued compensated absences. (10,736) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. This balances reflects the certificates of participation (COP) payable. (3,427,000)
Capital assets, net of accumulated depreciation, used in governmental funds are not current financial resources and, therefore, are not reported in the governmental funds. 4,567,074 Net Position of Governmental Activities 5,593,605 $

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
The notes to the basic financial statements are an integral part of this statement. 6 REVENUES
Intergovernmental $ 1,562,092 - $ 1,562,092 $
Use of money and property 952 61,548 62,500
Charges for services - 57,280 57,280
Other 809 - 809
Total Revenues 1,621,133 61,548 1,682,681

EXPENDITURES
Current:

General government 713,219 - 713,219
Capital outlay 7,145 - 7,145
Debt Service:

Principal retirement - 65,000 65,000
Interest and fiscal charges - 67,942 67,942
Total Expenditures 853,306 - 853,306
Excess (Deficiency) of
Revenues Over Expenditures 767,827 61,548 829,375

OTHER FINANCING SOURCES (USES)
Transfers in - 131,200 131,200
Transfers out (131,200) - (131,200)
Total Other Financing Sources (Uses) (131,200) 131,200 - Net Change in Fund Balances 636,627 192,748 829,375
Fund Balances (Deficit), Beginning of Fiscal Year (307,223) 3,942,115 3,634,892 Fund Balances (Deficit), End of Fiscal Year $ 329,404 4,134,863 $ 4,464,267 $ WWTP
Capital
Projects
WWTP
Special
Revenue
Total
Governmental
Funds

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
The notes to the basic financial statements are an integral part of this statement. 7 Net Change in Fund Balances of Governmental Funds $ 829,375 Amounts reported for governmental activities in the Statement of Activities differs from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This activity is reconciled as follows:

Cost of assets capitalized 7,145 $
Depreciation expense (44,873) (37,728)
Debt repayments are reported as expenditures in the governmental funds. The repayment is not an expense in the statement of activities, as it is a reduction of a long-term liability. The balance for compensated absences reflects the difference between absences accrued and absences paid
Prinpal payment bond certificates of participation 65,000 Compensated absences (295)
Change in Net Position of Governmental Activities $ 856,352

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2019
The notes to the basic financial statements are an integral part of this statement. 8 NOTES TO THE BASIC FINANCIAL STATEMENTS

WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The primary function of this organization is the operation and maintenance of the sewer treatment facility serving the City of Taft (the City) and the Ford City-Taft Heights Sanitation District. In accordance with the terms of the “Joint Exercise of Powers Agreements” between the City of Taft, Taft Heights, and Ford City Sanitation District dated May 29, 1950, amended March 7, 1966, restated April 24, 1972, and restated August 21, 1991, covering the “Joint Sewage Project – 1972,” the City of Taft was designated to act on its own behalf and on behalf of each of the other agencies, to operate and maintain the Wastewater Treatment Plant (WWTP). All costs to operate and maintain the facilities shall be paid by the City of Taft and the other agencies in the following cost share ratios:
52 percent shall be paid by the City of Taft
19 percent shall be paid by the Taft Heights Sanitation District 29 percent shall be paid by the Ford City Sanitation District The WWTP has access to the services and facilities of the City and the City’s staff. The City assists the WWTP in the planning, financing, acquisition, construction, and maintenance or operation of the activities undertaken by the WWTP in accordance with the agreements and the applicable state and federal law. The costs incurred and paid by the City on behalf of the WWTP may include a part of the salaries and benefits of the City officers and employees who performed services for the WWTP and are reimbursed by the WWTP.

The financial statements of the WWTP have been prepared in accordance with accounting principles generally accepted in the United States of America (USGAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The more significant of the accounting principles are described below:

A. Reporting Entity
The City of Taft operates the WWTP pursuant to the Joint Exercise of Powers Agreement noted above.

The WWTP is not a separate legal entity and therefore is not included as a component unit of the City.

Because of the City’s oversight responsibilities, the funds of the WWTP are included within the fund structure of the City. The financial statements of the WWTP do not purport to, and do not, present fairly the financial position of the City of Taft as a whole or the Ford City or Taft Heights Sanitation Districts as a whole.

B. Fund Accounting
The accounts of the Wastewater Treatment Plant are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

The WWTP uses two funds as follows:

Capital Projects Fund – the Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities.

Special Revenue Fund – the Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. 9 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting/Measurement Focus
Consistent with the City’s implementation of GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis – for State and Local Governments, the WWTP financial statements report information on both the accrual and modified accrual basis of accounting. The differences between the two presentations are discussed below.

Statement of Net Position and the Statement of Activities The Statement of Net Position and the Statement of Activities are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all the WWTP’s assets and liabilities, including capital assets, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, and expenses are recognized when the liability is incurred. Interfund activities (such as transfers) are eliminated from these statements.

Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balance for each fund. A separate statement is presented to report the differences in fund balance as presented in these statements to the net position presented in the Statement of Net Position. All governmental funds are accounted for on a “spending” or “financial flow” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available resources. Governmental fund operating statements present a summary of sources and uses of available resources during a period by presenting increases and decreases in net position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after fiscal year end) are recognized when due.

Revenues susceptible to accrual are investment earnings and assessments from member governments.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on long term obligations which are recognized when due. Because of their current financial resources focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities.

D. Budgetary Policy and Control

1. General Budget Policies
The Taft City Council approves each fiscal year’s budget for the WWTP as part of the overall City budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. All appropriations lapse at year-end. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to adjust the operating budget within program areas. Transfers of operating budget appropriations between program areas or to or from appropriated reserve accounts, use of unappropriated fund balances, cancellation of appropriations and all changes in capital improvement project budgets require the approval of the City Council. 10 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Budgetary Policy and Control (Continued)

2. General Budget Policies
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget that is the program area – total for all funds. Formal budgetary integration is employed as a management control device during the fiscal year for the Governmental Funds.

3. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Encumbrances do not constitute expenditures or liabilities.

E. Cash/Investment Policy
In order to maintain an effective investment program, all cash is pooled with the cash and investments of the City of Taft and amounts not required for day-to-day financial transactions are invested as approved by the Taft City Council on a pooled basis and earnings are allocated to each fund on the basis of its average cash balance at the end of each quarter. Investments are carried at fair value.

F. Capital Assets and Depreciation
Capital assets, which include land, buildings, infrastructure, machinery, and equipment, are reported in the Statement of Net Position. Capital assets are defined as assets with an initial individual cost of more than $5,000. Sensitive items with costs below $5,000 are also included. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date donated.

Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful lives of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro-rata share of the cost of capital assets.

Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is a reduction in the book value of the capital assets. The WWTP has assigned the useful lives listed below to capital assets.

Structures and improvements 20-40 years
Machinery and equipment 5-20 years
11 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

H. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the WWTP’s policy to use restricted resources first, and then unrestricted resources as they are needed. Restricted resources are defined as resources received from outside agencies dedicated for specific projects or purposes.

I. Due from the City of Taft
Current interfund balances arise in the normal course of business (i.e. one fund loaning funds to pay for current expenditures) and are expected to be repaid shortly after the end of the fiscal year. Amounts due from other funds of the City of Taft are reported separately from interfund balances which comprise only entities reported in these financial statements.

NOTE 2 – CASH AND INVESTMENTS
The WWTP’s cash and investments are pooled with the funds of the City for deposit and investment purposes. Interest on pooled cash and investments is credited to the funds based on each prospective fund’s average cash balance at each quarter end. Detailed information concerning the City of Taft’s pooled cash and investments can be found in the City’s Annual Financial Report for the fiscal year ended June 30, 2019. The WWTP’s cash and investments balance at June 30, 2019 is $4,483,913.

The WWTP’s cash and investments are held within the City of Taft’s investment pool. As the WWTP does not hold specific investments or deposits in its name, the cash and investments are not evidenced by deposits or securities that exist in physical or book entry form.

The WWTP categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. These principles recognize a three-tiered fair value hierarchy. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The WWTP had investments in the City of Taft’s investment pool (amortized cost), however, the external pool is not measured under Level 1, 2 or 3. 12 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 – CAPITAL ASSETS
During the fiscal year ended June 30, 2019, the following changes in capital assets occurred:

Balance Balance
Governmental Activities July 1, 2018 Additions Deletions June 30, 2019 Capital assets not being depreciated:

Land 32,519 $ - $ - $ 32,519 $
Total capital assets not being depreciated 32,519 - - 32,519 Capital assets being depreciated:

Machinery and equipment 284,425 7,145 - 291,570
Structures and improvements 6,687,207 - - 6,687,207
Total capital assets being depreciated 6,971,632 7,145 - 6,978,777 Less accumulated depreciation for:

Machinery and equipment (284,425) (119) - (284,544)
Structures and improvements (2,114,924) (44,754) - (2,159,678) Total accumulated depreciation (2,399,349) (44,873) - (2,444,222) Total capital assets, being depreciated
net of accumulated depreciation 4,572,283 (37,728) - 4,534,555 Total Governmental activities capital assets,
net of accumulated depreciation 4,604,802 $ (37,728) $ - $ 4,567,074 $ Depreciation expense of $44,873 was charged to general government on the Statement of Activities for the fiscal year ended June 30, 2019.

NOTE 4 – INTERFUND TRANSFERS
Interfund transfers as of June 30, 2019 were as follows:

Transfers Transfers
Fund In Out
WWTP Capital Projects 131,200 $ - $
WWTP Special Revenue - (131,200)
Total 131,200 $ (131,200) $
The transfer into the Capital Project Fund is for building a reserve that will be used at a future date for large maintenance projects and/or reconstruction of the facility. This is an agreed upon amount between all District members.
13 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 5 – COMPENSATED ABSENCES
During the fiscal year ended June 30, 2019, the following changes occurred in the governmental activities compensated absences:

Governmental Activities
Balance July
1, 2018 Additions Deletions
Balance
June 30, 2019
Due in
One Year
Compensated Absences 10,441 $ 295 $ - $ 10,736 $ 2,684 $ Total governmental activities
long-term debt $ 295 10,441 $ - $ 10,736 $ 2,684 $
Compensated absences are determined to be the amount due to employees for future absences, which are attributable to services already rendered. The amount estimated to be paid during the next fiscal year is classified with current liabilities, with the remainder classified with noncurrent liabilities.

NOTE 6 – CERTIFICATES OF PARTICIPATION PAYABLE
Certificates of Participation (COP) are long-term instruments which are tax exempt and therefore, issued at interest rates below current market levels for taxable investments.

On June 15, 2015, the WWTP has entered into a loan financing program with the United States Department of Agriculture, acting through its agency the USDA Rural Development, to finance a portion of the cost and expense of the acquisition and construction of certain improvements to the wastewater treatment system of the City of Taft, and in connection with the loan financing program, the City intends to cause the execution and delivery to USDA Rural Development of certificates of participation.

In support of the proposed Certificates of Participation, the WWTP proposes to enter into a financing program with the Taft Public Improvement Corporation, a California nonprofit public benefit corporation duly organized and existing under and by virtue of the laws of the State of California (the "Corporation"), for the purchase by the Corporation of the real property on which the wastewater system is situated (the "Site"), together with the existing wastewater treatment system improvements (the "Existing Facilities") situated thereon, and the purchase by the City from the Corporation of the completed Project.

The WWTP is in receipt of a Letter of Conditions, originally dated November 8, 2012 and extended through April 10, 2017 (the "Letter of Conditions"), from USDA Rural Development, setting forth certain conditions to be satisfied by the WWTP with respect to receipt from USDA Rural Development of funding for the Project, comprised of a loan in the amount of not-to-exceed $3,619,000 to be represented by the Certificates of Participation. The Installment payments shall be payable during a period of not more than 40 years and the interest rate shall not exceed 1.75% per annum.

During the fiscal year 2016-17, the WWTP spent $3,251,654 for the project which was completed in May 2017. The WWTP received loan funds of $1,895,222 during the fiscal year 2016-17 with the remaining certificates of participation issued of $1,356,432 disbursed to the WWTP during FY 2017-18. 14 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 – CERTIFICATES OF PARTICIPATION PAYABLE (Continued) During the fiscal year ended June 30, 2019, the following changes occurred in the governmental activities Certificates of Participation Payable (direct placement and direct borrowings consists of) :

Governmental Activities
Balance
July 1, 2018 Additions Deletions
Balance
June 30, 2019
Due in
One Year
Certificates of Participation Payable 3,492,000 $ - $ (65,000) $ 3,427,000 $ 67,000 $ Total governmental activities
long-term debt $ - 3,492,000 $ (65,000) $ 3,427,000 $ 67,000 $

Certificates of Participation maturity schedule:

Fiscal year ending
June 30, Principal Interest Total
2020 $ 67,000 $ 59,973 $ 126,973
2021 68,000 58,800 126,800
2022 69,000 57,610 126,610
2023 70,000 56,402 126,402
2024 71,000 55,178 126,178
2025-2029 377,000 256,707 633,707
2030-2034 410,000 222,583 632,583
2035-2039 447,000 185,465 632,465
2040-2044 488,000 144,917 632,917
2045-2049 532,000 100,678 632,678
2050-2054 580,000 52,500 632,500
2055-2056 248,000 6,545 254,545
Totals $ 3,427,000 $ 1,257,358 $ 4,684,358
Certificates of Participation
NOTE 7 – NET POSITION/FUND BALANCES
Net position is divided into three captions. These captions apply to net position as determined at the government-wide level and are described below:

Net Investment in Capital Asset describes the portion of net position which is represented by the current net book value of the District’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the District cannot unilaterally alter. These principally include debt service requirements.

Unrestricted describes the portion of net position which is not restricted as to use. 15 WASTEWATER TREATMENT PLANT
CITY OF TAFT / FORD CITY – TAFT HEIGHTS SANITATION DISTRICT

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 – NET POSITION/FUND BALANCES (Continued)
Fund balances are divided into five classifications based primarily on the extent to which the WWTP is bound to observe constraints imposed upon the use if the resources in the governmental funds. The classifications are as follows:

1. Nonspendable Fund Balance
That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in a spendable form, such as prepaid items, inventories of supplies, or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment.

2. Restricted Fund Balance
That portion of a fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

3. Committed Fund Balance
That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority and remain binding unless removed in the same manner.

4. Assigned Fund Balance
That portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose.

Enabling legislation authorizes the WWTP to assess, levy, charge, or otherwise mandate payment of resources (from external resource providers) and includes legally enforceable requirements that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the WWTP can be compelled by an external party, such as citizens, public interest groups, or the judiciary to use resources created by enabling legislation only for the purposes specified by the legislation.

5. Unassigned Fund Balance
That portion of a fund balance that includes amounts that do not fall into one of the above categories.

A General Fund is the only fund that should report this category of fund balance. 16 REQUIRED SUPPLEMENTARY INFORMATION
Original Final

REVENUES
Intergovernmental $ 1,002,711 1,002,711 $ 1,562,092 $ 559,381 $ Use of money and property - - 952 952
Charges for services 38,620 46,845 57,280 10,435
Other 809 - 809 -
Total Revenues 1,041,331 1,050,365 1,621,133 570,768

EXPENDITURES
Current:

General government 772,166 752,745 713,219 58,947
Capital outlay 3,532 10,000 7,145 (3,613)
Debt service:

Principal retirement 65,000 65,000 65,000 -
Interest and fiscal charges 56,331 65,944 67,942 (1,998) Total Expenditures 884,076 906,642 853,306 53,336
Excess (Deficiency) of Revenues
Over Expenditures 157,255 143,723 767,827 624,104

OTHER FINANCING SOURCES (USES)
Transfers in 10,000 3,532 - (3,532)
Transfers out (167,255) (147,255) (131,200) 16,055
Total other financing sources (uses) (157,255) (143,723) (131,200) 12,523 Net Change in Fund Balance - - 636,627 636,627
-
Fund Balance (Deficit), Beginning of Fiscal year (307,223) (307,223) (307,223) - Fund Balance (Deficit), End of the Fiscal Year (307,223) $ (307,223) $ 329,404 $ 636,627 $

WASTEWATER TREATMENT PLANT
Variance with
Final Budget
Positive
(Negative)
Budgeted Amounts Actual
Amounts

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL - SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019
17 OTHER SUPPLEMENTARY INFORMATION
Original Final

REVENUES
Use of money and property $ 38,065 20,000 $ 61,548 $ 23,483 $ Total Revenues 20,000 38,065 61,548 23,483
Excess (Deficiency) of Revenues
Over Expenditures 20,000 38,065 61,548 23,483

OTHER FINANCING SOURCES (USES)
Transfers in 147,255 147,255 131,200 (16,055)
Transfers out (185,310) (167,255) - 185,310
Total other financing sources (uses) (20,000) (38,055) 131,200 169,255 Net Change in Fund Balance - 10 192,748 192,738
Fund Balance, Beginning of Fiscal Year 3,942,115 3,942,115 3,942,115 - Fund Balance, End of the Fiscal Year 3,942,115 $ 3,942,125 $ 4,134,863 $ 192,738 $ Variance with
Final Budget
Positive
(Negative)
Actual
Amounts

WASTEWATER TREATMENT PLANT

CITY OF TAFT / FORD CITY - TAFT HEIGHTS SANITATION DISTRICT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE - BUDGET AND ACTUAL - CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Budgeted Amounts
18 REVIEWED BY:

CITY CLERK FINANCE DIRECTOR CITY MANAGER
City of Taft Agenda Report
DATE: JULY 19, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
AGENDA MATTER:

ACCEPT THE WORK PERFORMED BY MARCO A. GONZALEZ ENGINEERING, INC. DBA MAG ENGINEERING, INC. AND APPROVE THE FILING OF NOTICE OF COMPLETION FOR THE DEMOLITION OF STRUCTURE AT 520 NORTH STREET
SUMMARY STATEMENT:

The City Council awarded a contract to Marco A. Gonzales Engineering, Inc. DBA as MAG Engineering, Inc. on June 7, 2022 in the amount of $28,100.00 for the demolition of the old medical building at 520 North Street. The demolition has now been completed and a Notice of Completion now needs to be filed.

RECOMMENDED ACTION
Motion to accept the completed work by Marco A. Gonzalez Engineering, Inc. DBA as MAG Engineering, Inc. for the demolition of building at 520 North Street and authorize the City Clerk to file the Notice of Completion with the Kern County Recorder.

IMPACT ON BUDGET (Y/N): No
ATTACHMENT (Y/N): Yes – (Notice of Completion)
PREPARED BY: City Clerk
Recording Requested By:

FBO

CITY OF TAFT
When Recorded Mail to:

City of Taft
209 E. Kern St.

Taft, CA 93268

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or Agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is City of Taft

3. The FULL ADDRESS of the OWNER is 209 E. Kern Street Taft, CA 93268

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In Fee. (if other than fee, Strike "In Fee" and insert, for example, "Purchaser under contract of purchase," or "Lessee.")

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED June 29, 2022

8. The work of improvement completed is described as follows: Removal of asbestos containing material according to survey

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Marco A. Gonzalez Engineering, Inc.

10. The street address of said property is: 520 North Street Taft, CA 93268 APN: 031-080-12

11. The property on which said work of improvement was completed is in the City of Taft, County of Kern, State of California, and is described as follows:

Demolition of structure and required grading
July 19, 2022 (Mayor)
Date Dave Noerr – City Mayor
Verification for INDIVIDUAL owner
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Signature of Owner named in paragraph 2
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the Mayor of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

July 19, 2022 - City of Taft (Mayor)
Date and Place Dave Noerr – City Mayor
SUBSCRIBED AND SWORN TO before me on
Yvette Mayfield, MMC, City Clerk
City of Taft