TEHACHAPI POLICE DEPARTMENT
COMMUNITY ROOM
220 WEST C STREET
AGENDA
TEHACHAPI CITY COUNCIL REGULAR MEETING,
TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,
TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND
TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 4, 2024 - 6:00 P.M.
Persons desiring disability-related accommodations should contact the City Clerk prior to the meeting for the accommodation. A copy of any writing that is a public record relating to an open session of this meeting is available at City Hall, 115 South Robinson Street, Tehachapi, California.
Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 115 S. Robinson Street, Tehachapi, CA. Any items distributed to the City Council after posting of the Agenda Packet will be available for inspection at the Office of the City Clerk at City Hall. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at (661) 822-2200.
CALL TO ORDER
ROLL CALL
INVOCATION
Participation in the invocation is strictly voluntary. Each city councilmember, city employee, and each person in attendance may participate or not participate as he or she chooses.
PLEDGE TO FLAG
COMMUNITY ENGAGEMENT REPORTS
1. Tehachapi’s Extraordinary Women Recognition - PRESENTATION
2. Mayor to present a Certificate of Recognition to the American Association of University Women Tehachapi Mountain (AAUW) for their 40th Anniversary - PRESENTATION
POLICE CHIEF REPORTS
3. Community Partnership and Certificate of Appreciation to Maryann Paciullo – PRESENTATION
CONSENT AGENDA
4. All items listed with an asterisk (*) are considered to be routine and non-controversial by city staff.
Consent items will be considered first and may be approved by one motion if no member of the council or audience wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent agenda and will be considered in listed sequence with an
TEHACHAPI CITY COUNCIL REGULAR MEETING,
TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,
TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND
TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 4, 2024 - 6:00 P.M. - PG. 2
opportunity for any member of the public to address the city council concerning the item before action is taken. Staff recommendations are shown in caps.
AUDIENCE ORAL AND WRITTEN COMMUNICATIONS
The City Council welcomes public comments on any items within the subject matter jurisdiction of the Council. We respectfully request that this public forum be utilized in a positive and constructive manner.
Persons addressing the Council should first state their name and area of residence, the matter of City business to be discussed, and the organization or persons represented, if any. To ensure accuracy in the minutes, please fill out a speaker’s card at the podium. Comments directed to an item on the agenda should be made at the time the item is called for discussion by the Mayor. Questions on non-agenda items directed to the Council or staff should be first submitted to the City Clerk in written form no later than 12:00 p.m. on the Monday preceding the Council meeting; otherwise, response to the question may be carried over to the next City Council meeting. No action can be taken by the Council on matters not listed on the agenda except in certain specified circumstances. The Council reserves the right to limit the speaking time of individual speakers and the time allotted for public presentations.
5. Public comment
CITY CLERK REPORTS
ALL ORDINANCES SCHEDULED FOR INTRODUCTION OR ADOPTION AT THIS MEETING SHALL BE READ
BY TITLE ONLY
Tehachapi City Council Unassigned Res. No. 03-24
Tehachapi City Council Unassigned Ord. No. 24-01-777
Tehachapi Redevelopment Successor Agency Unassigned Res. No. 02-24 Tehachapi Public Financing Authority Unassigned Res. No. 01-24 * 6. Minutes for the Tehachapi City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority, and the Tehachapi City Financing Corporation regular meeting held on February 20, 2024 – APPROVE AND FILE
FINANCE DIRECTOR REPORTS
* 7. Disbursements and bills for February 14, 2024 through February 27, 2024 - AUTHORIZE PAYMENTS
8. RSI Disbursements and bills for February 14, 2024 through February 27, 2024 – AUTHORIZE PAYMENTS
9. Fiscal Year End 2023 Financial Reports - PRESENTATION
10. PUBLIC HEARING – Conduct a public hearing to receive public testimony concerning the transit needs within the city. The City of Tehachapi provides a transit service named Dial-A-Ride through Kern Regional Transit. The average cost per rider from 2022/2023 was $72.57– OPEN HEARING; NOTICE OF PUBLIC HEARING AND CORRESPONDENCE; STAFF REPORT; RECEIVE PUBLIC COMMENT; CLOSE HEARING; ADOPT A RESOLUTION FINDING THAT THERE ARE NO UNMET TRANSIT NEEDS THAT ARE
REASONABLE TO MEET WITHIN THE CITY
TEHACHAPI CITY COUNCIL REGULAR MEETING,
TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,
TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND
TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, MARCH 4, 2024 - 6:00 P.M. - PG. 3
AIRPORT MANAGER REPORTS
* 11. Aeronautical Hangar Ground Lease Agreement – Hangar 14E – APPROVE THE AERONAUTICAL HANGAR GROUND LEASE AGREEMENT FOR HANGAR 14E BETWEEN THE CITY OF TEHACHAPI AND BENITO AND
CORA GUTIERREZ AND AUTHORIZE THE MAYOR TO SIGN, SUBJECT TO CITY MANAGER AND CITY
ATTORNEY APPROVAL
DEVELOPMENT SERVICES DIRECTOR REPORTS
12. Brentwood Pedestrian Facilities Project – Bid Award – AWARD THE BRENTWOOD PEDESTRIAN
FACILITIES PROJECT (BASE BID PLUS ALL ADDITIVES) TO CEN-CAL CONSTRUCTION IN THE AMOUNT OF $223,585.00 AND AUTHORIZE THE CITY MANAGER TO APPROVE ANY NECESSARY CHANGE ORDERS UP TO A MAXIMUM OF 10% OF THE ORIGINAL CONTRACT (OR $22,358.00)
CITY MANAGER REPORTS
13. Report to Council regarding current activities and programs – VERBAL REPORT
COUNCILMEMBER REPORTS
On their own initiative, a Councilmember may ask a question for clarification, make a brief announcement, provide a reference to staff or other resources for factual information, take action to have staff place a matter of business on a future agenda, request staff to report back at a subsequent meeting concerning any matter, or make a brief report on his or her own activities. (Per Gov’t. Code §54954.2(a)) If an item is listed below the Council has the option to take action or refer the matter to staff for a later agenda.
CLOSED SESSION
1. Closed session minutes of February 20, 2024 meeting – APPROVE AND FILE
2. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (one potential case)
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Paragraph (1) of subdivision (d) of § 54956.9
Tehachapi-Cummings County Water District v. City of Tehachapi, et. al.
ADJOURNMENT
TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: March 4,2024, AGENDASECTION: COMMUNIW ENGAGEMENT TO: HONORABLE MAYOR DAVIES AND COUNCIT MEMBERS
FROM: MYA ACOSTA, COMMUNIW ENGAGEMENT SPECIALIST
DATE February 27,2024
SUBJECT: Tehachapi's Extraordinary Women Recognition
As introduced in early February, the City of Tehachapi is hosting the new Extraordinary Women Recognition and would like to honor the five recipients of the award tonight.
After considering nearly 70 nominations amongst our panel consisting of Councilmember Jeanette Pauer, Community Engagement Manager Key Budge, and myself, the nominations of these five women stuck out to us as individuals who support and contribute to keeping the City of Tehachapithriving day in and day out' Dixie Coutant: Dixie takes on the responsibility of preserving and showcasing the town's rich railroad history as the curator of the Tehachapi Train Museum. She serves as the Second Vice President of the Tehachapi Heritage League, further solidifying her commitment to preserving the town's cultural legacy. Dixie is also an active member of the Audubon Society, the Tehachapi Valley Gem and Mineral Society, volunteer with the Tehachapi Community Theatre Association, and leader of the line dance program at the Senior Center. Dayna Wells and Joan Cote add that, "her commitment to preserving local heritage, fostering community engagement, and supporting various organizations demonstrates the impact one woman can have on the collective spirit of a town."
Lindsay Villalpondo: Lindsay is a realtor at Miramar lnternational and recently was awarded "Top Listing and Selling Agent" at the Miramar Tehachapi office. Lindsay serves on committees for the Tehachapi Area Association of Realtors and supports the Tehachapi Mountain Rodeo Association and the Tehachapi Mountain Bike Team. She volunteers at the Tehachapi Visitor Center, her church, at her children's school, and various community events. Brittany, one of several people who nominated Lindsay, says: "Lindsay is an inspiration to others by putting her mind to something and achieving. She is always offering help and guidance to women aspiring to do the same. She carries herself in a professional manner always and is showing women they can be and achieve anything they set their heart to do, at any age and state in life." Teressa Ruth: Teressa is a shift supervisor at Starbucks where she serves as a mentor to many of the younger workers. Katherine McCool nominated Teressa explaining: "She is an extraordinary woman because she sees the best in everyone and pushes them to their potential, she has the best life advice, she's the hardest working woman I know she loves her job and she does her job so incredibly well she is a mother figure to so many my whole family call her "Mother Teressa" she has been a mom to me and most of my sisters she has a magnetic caring loving energy to her she's the best dressed woman I know and she makes me laugh harder than anyone I know. She constantly pushes women she works with to their potential even if they don't see their own potential. She's always so supportive to any woman going through any situation she will always offer you her shoulder to cry on."
Mary Cunningham: Throughout her life, Mary has been involved in a variety of community organizations including the Tehachapi Lions Club (past President), Cultural Arts board member, Horseman's Association advisory council, Environmental Committee member, and the Tehachapi Heritage League. Mary has volunteered as a Docent for 15 years and has had a major role in designing, developing, and donating her resources to the current Errea House Museum garden. Judy Mitchell nominated Mary and said: "Her unwavering dedication to making Tehachapi a better place, and her contributions to Tehachapi have been immeasurable. Her legacy will continue to inspire generations to come."
Ctaudia Baker: Claudia began the Loop Newspaper more than 20 years ago as the Hilltop Shopper which grew into the biweekly community paper it is today. She is currently on the Board of the Greater Tehachapi Economic Development Council and has been on the Tehachapi Tourism Commission since its inception. She served on the board of the Greater Tehachapi Chamber of Commerce and Mainstreet Tehachapi. Projects under Claudia's direction include the Experience Tehachapi Magazine, placemats for several local restaurants, and the Loop Digital Screens, all platforms for supporting and promoting local events, businesses, and organizations. Pat Doody says Claudia is an extraordinary woman because she leads by example: "Many of her columnists are women that range in age from their 20s to their 90s. Having been in the publishing business for most of her adult life, Claudia has inspired women of all ages to always be the best version of themselves." These five women represent various aspects of the wide spectrum of involvement in our community. We commend you all for your work, dedication, and strength of character.
We ask the council to recognize the five women for Tehachapi's Extraordinary Women Recognition for their contributions to our community.
TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: March 4,2024, AGENDA SECTION: COMMUNITY ENGAGEMENT
TO HONORABLE MAYOR DAVIES AND COUNCIL MEMBERS
FROM: KEY BUDGE, COMMUNIW ENGAGEMENT MANAGER
DATE: February 26,2024
SUBJECT: AAUW Tehachapi Mountain Branch 40th Anniversary Recognition We would like to bring light to the 40th anniversary of the American Association of University Women Tehachapi Mountain. The AAUW was created in 1881 when a group of female college graduates wanted to open doors to career advancement for women as well as encourage more women to pursue higher education. ln 1984, AAUW Tehachapi Mountain became the 93'd California branch with approximately 50 members.
The Branch promotes equity, personal and professional growth, community leadership and friendship.
Through their 4O-year history, its members have served as mentors, sent girls to AAUW's week-long Tech Trek camps, met monthly with inspiring messages for women, and supported many community goals.
The branch is especially proud of its Scholarship Fund for Women which has given over 575,000 to worthy Tehachapi High School graduates as well as a Continuing Education Scholarship for women seeking career education later.
We ask the counci! to recognize the AAUW Tehachapi Branch with a Certificate of Recognition for their dedication to the community for the past 40 years.
CITY OF
TE HACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 4,2024 AGENDA SECTION: CHIEF OF POLICE
TO HONORABLE MAYOR MICHAEL DAVIES AND COUNCIL MEMBERS
FROM: RICHARD STANDRIDGE, CH!EF OF POLICE
DATE: FEBRUARY 28,2024
SUBJECT: COMMUNTTY PARTNERSHIP/COMMUNIW POLICING OPPORTUNIW
BACKGROUND
Over the past few months, the Tehachapi Police Department has taken a focused and proactive stance on traffic enforcement in the city limits. This was due in part to citizen complaints as well as an increase in traffic collisions.
Despite the increase in traffic enforcement, the police department is also taking the opportunity to turn the traffic stops and contacts into positive encounters with members of our community and visitors. lt is not always about direct enforcement through citations, as our officers are also taking the time to educate citizens about traffic issues and the need to adhere to the laws as outlined in the California Code.
As part of this effort to increase positive encounters and provide education, the owner of our local McDonalds, Maryann Paciullo has partnered with the Tehachapi Police Department to assist in this effort by providing McDonalds gift cards that can be given out by the officers during these encounters. Ms. Paciullo is a wellrespected business owner in the community. She routinely hosts events for public safety at her business and supports our efforts to have a safe community for all. This project is scheduled to begin March 5,2024. I have asked Ms. Paciullo to attend the council meeting as part of the kickoff for this event and publicly recognize her for her continued support and partnership with the Tehachapi Police Department and the City of Tehachapi.
RECOMMENDATION
Staff is asking Council to support this community policing effort and join the Chief of Police in publicly thanking Ms. Paciullo.
TEHACHAPI POLICE DEPARTMENT COMMUNITY ROOM
220 WEST C STREET
MINUTES
TEHACHAPI CITY COUNCIL REGULAR MEETING,
TEHACHAPI REDEVELOPMENT SUCCESSOR AGENCY REGULAR MEETING,
TEHACHAPI PUBLIC FINANCING AUTHORITY REGULAR MEETING, AND
TEHACHAPI CITY FINANCING CORPORATION REGULAR MEETING
MONDAY, FEBRUARY 20, 2024 – 6:00 P.M.
NOTE: Sm, Da, Pa and Po are abbreviations for Council Members Smith, Davies, Pauer, and Pogon-Cord, respectively. For example, Pauer/Sm denotes Council Member Pauer made the motion and Council Member Smith seconded it. The abbreviation Ab means absent, Abd abstained, Ns noes, and NAT no action taken.
ACTION TAKEN
CALL TO ORDER
Meeting called to order by Mayor Davies at 6:02 pm
ROLL CALL
Roll call by City Clerk Tori Marsh
Present: Mayor Davies, Mayor Pro Tem Pogon-Cord, Councilmember Smith, Councilmember Pauer
Absent: None, Vacancy
INVOCATION
Led by Michelle Desmond, Pastor, Tehachapi Vineyard Church
PLEDGE TO THE FLAG
Led by Tehachapi Cub Scouts Den 135
1. Consent agenda Approved
Sm/Pa Ayes All
AUDIENCE ORAL AND WRITTEN COMMUNICATIONS
2. Public comment
CITY CLERK REPORTS
* 3. Minutes for the Tehachapi City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority, and the Tehachapi City Financing Corporation regular meeting held on February 5, 2024 – APPROVED AND FILED Approved And Filed
Sm/Pa Ayes All
Tehachapi City Council Regular Meeting –February 20, 2024 Tehachapi Redevelopment Successor Agency Regular Meeting Tehachapi Public Financing Authority Regular Meeting And Tehachapi City Financing Corporation Regular Meeting ACTION TAKEN
COMMUNITY ENGAGEMENT REPORTS
4. Honor Flight Kern County – COMMUNITY ENGAGEMENT MANAGER KEY BUDGE GAVE STAFF REPORT; APPROVED SPONSORSHIP OF FIVE LOCAL VETERANS
AND FIVE GUARDIANS FOR HONOR FLIGHT KERN COUNTY IN THE AMOUNT OF $13,500.00
Approved Sponsorship Of Five
Local Veterans And Five
Guardians For Honor Flight Kern
County In The Amount Of
$13,500.00
Sm/Po Ayes All
FINANCE DIRECTOR REPORTS
* 5. Disbursements and bills for February 1, 2024 through February 13, 2024 -
AUTHORIZED PAYMENTS
Authorized Payments
Sm/Pa Ayes All
6. RSI Disbursements and bills for February 1, 2024 through February 13, 2024 –
AUTHORIZED PAYMENTS
Mayor Davies Recused Himself
Due To A Potential Conflict. He
Is An Employee Of RSI.
Authorized Payments
Sm/Pa Motion Carried
Abd Da
* 7. City of Tehachapi Investment Report through January 2024 – RECEIVED REPORT * 8. Formal commitment of an amount of fund balance to be set aside specifically for emergency contingencies as required by Governmental Accounting Standards Board No. 54 (GASB 54) for fiscal year 2023-2024 – ADOPTED RESOLUTION NO. 02-24 APPROVING THE CITY OF TEHACHAPI EMERGENCY
CONTINGENCY COMMITMENT OF FUND BALANCE FOR THE GENERAL FUND AND REPEALING RESOLUTION NO. 06-23
Adopted Resolution No. 02-24
Approving The City Of Tehachapi
Emergency Contingency
Commitment Of Fund Balance
For The General Fund And
Repealing Resolution No. 06-23
Sm/Pa Ayes All
DEVELOPMENT SERVICES DIRECTOR REPORTS
9. Tract 6668 Final Map and Improvement Agreement – DEVELOPMENT SERVICES DIRECTOR JAY SCHLOSSER GAVE STAFF REPORT; APPROVED AND AUTHORIZED THE MAYOR TO SIGN THE REIMBURSEMENT AGREEMENT FOR TTM 6668 WITH MTN INVESTMENTS-TEHACHAPI L.L.C. AND AUTHORIZED THE CITY CLERK TO SIGN FINAL MAP 6668 ON BEHALF OF THE CITY COUNCIL AND RECORD Approved And Authorized The
Mayor To Sign The
Reimbursement Agreement For
Ttm 6668 With Mtn InvestmentsTehachapi L.L.C. And Authorized The City Clerk To Sign Final Map
6668 On Behalf Of The City
Council And Record
Sm/Po Ayes All
10. Tract 7440 Final Tract Map – DEVELOPMENT SERVICES DIRECTOR JAY SCHLOSSER GAVE STAFF REPORT; APPROVED AND AUTHORIZED THE CITY CLERK TO SIGN THE FINAL MAP 7440 ON BEHALF OF THE CITY COUNCIL AND RECORD
Approved And Authorized The
City Clerk To Sign The Final Map
7440 On Behalf Of The City
Council And Record
Da/Pa Ayes All
ASSISTANT CITY MANAGER REPORTS
11. Letter to oppose AT&T request for relief of Carrier of Last Resort Obligation – ASSISTANT CITY MANAGER COREY COSTELLOE GAVE STAFF REPORT;
AUTHORIZED THE MAYOR TO SIGN AN OPPOSITION LETTER ON BEHALF OF THE
CITY COUNCIL TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC) Authorized The Mayor To Sign
An Opposition Letter On Behalf
Of The City Council To The
California Public Utilities
Commission (Cpuc)
Po/Da Ayes All
Tehachapi City Council Regular Meeting –February 20, 2024 Tehachapi Redevelopment Successor Agency Regular Meeting Tehachapi Public Financing Authority Regular Meeting And Tehachapi City Financing Corporation Regular Meeting ACTION TAKEN
12. Recycling and Organic Material Service and authorization of new rates subject to public notice and hearing – ASSISTANT CITY MANAGER COREY COSTELLOE GAVE STAFF REPORT; TENTATIVELY APPROVED THE RATE STRUCTURE, SUBJECT TO THE PROPOSITION 218 PROCESS, AND ACCEPTED THE ENGINEER’S REPORT FROM MSW CONSULTANTS; AUTHORIZED STAFF TO NOTIFY RATE
PAYERS VIA WRITTEN NOTICE AND SET THE FINAL PUBLIC HEARING DATE FOR THE ADOPTION OF THE NEW RATES ON MONDAY, APRIL 15, 2024 AND ALLOW
STAFF TO ADJUST THE PUBLIC HEARING DATE SHOULD CIRCUMSTANCES
REQUIRE, PRIOR TO THE ISSUING OF THE NOTICES
Tentatively Approved The Rate
Structure, Subject To The
Proposition 218 Process, And
Accepted The Engineer’s Report
From Msw Consultants;
Authorized Staff To Notify Rate
Payers Via Written Notice And
Set The Final Public Hearing
Date For The Adoption Of The
New Rates On Monday, April
15, 2024 And Allow Staff To
Adjust The Public Hearing Date
Should Circumstances Require,
Prior To The Issuing Of The
Notices
Pa/Sm Ayes All
CITY MANAGER REPORTS
13. Report to Council regarding current activities and programs – VERBAL REPORT
COUNCILMEMBER REPORTS
CLOSED SESSION
1. Closed session minutes of January 16, 2024 meetings
2. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (one potential case)
3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of Case: Tehachapi-Cummings County Water District v. City of Tehachapi, et. al.
ADJOURNMENT
The City Council/Boards adjourned at 7:26 pm to a City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority and Tehachapi City Financing Corporation Regular Meeting to be held on Monday, March 4, 2024 at 6:00 pm.
Adjourned At 7:26 pm
__________________________________
TORI MARSH, CMC
City Clerk, City of Tehachapi, California
Approved this 4th day
of March 2024.
___________________________
MICHAEL DAVIES
Mayor, City of Tehachapi, California
Accounts Payable
Checks by Date - Detail by Vendor Number
Ussr:
Printed:
aftescas
2/2'7/2024 10:30 lM
CITY OF
TEHACHAPI
CALIFORNIA
Check No Vetrdor No
Invoice No
ACH 0017
726158
726960
0061
AH03238
AH03868
0300
521030968
521030969
ACH 03'72
o2012024
0201202+A
0201202+8
0201.202+C
0201202+D
o20r202+E
02012024-F
0201202+G
0201202+H
0201202+l
020t2024-J
0201202+K
02012024-L
02012024-M
02012024-N
02012024-o
02012024-P
0201202+Q
0201202+R
02012024-5
0201202+T
Vetrdor Name Check Amount
American Business Machiles
GGI[oftr
Ccden - ScaDlrer Rollers
15.00 83.20
Total for this ACH Check for vendor 0017:
Total for Vendor 0017 (Amcrican Business Machines):
BSK Associates
Wtr/Drirking Watsr Samples
Wtr/Drinking Water Samples
Tot4l for this ACH Che.k for Vetrdoi 0061:
Total for Vendor 0061 (BSK Associates):
Mission Linen & Uniform Service
PWLinen MainuMats
SI.T/WWI? Mats
Total for this ACH Check for Verdor 03001
Total for Vendor 0300 (Missiou Linen & Uniform Service):
Southem Califomia Edison
StnV80O237l967/1002 W Tehachrpi BlvdA,/De
Strw80023 838,1/1002 W Tehachapi Blvd B/Dec
Strtv80025 l5 179/Tehachapi,tTucker/Jan 2024
Srnr/8003886514/000000 Tehdchapi BlvdDec 2l
LLD/80028 I 57o4/IndBtrial Pk''y / Cl.Jlrty / I e 20t
Sttt8002457897/800 S Cwry Stnsm2024
Strts/8002?48942/Tehachapi Blvd/Dennison Rd/
Strts/80025 I 5750^4ulb€rry-Br€ntwood/J6tr 202,
Strts/8000952476/Valley Blvd-Mulb€rry SVAatr
LLD/800284191?/Pinon SnE Orchrrd{ury Sr/.
LLD/E004033054/Mill St-D Srdan 2024
StrtV8002844?82/V'alley Blvd do DemisodJan
PW800069 r 540/800 Enterprisefatr 202
PW8002992907E00 Enteprise Shop/Dec 15 20
Sd8003327285/800 EdBrprise Facility/Dec 15
StrtvE0o2397488[ehaohapi.DeDnisodJan 202.
Strts/8000489050/TR 2995 Oakwood-Valley/Ja!
Strts/8001916915/100 W Tehachapi Blvd #B/Do
StrtyS0O l94l 899/101 West F St/D€o 4 2023-Jan
LLD/tN245254911R 2995 Oakwood-Velcyrar
Strb/8002452549/TR 2995 Oakwood-VallcvAa!
9E.20
91.00 30.00
ACH
121.00
216.41
38.40 315.21
315.21
57.08 367.4r
83.96 7r.17
113.28
86.86 68.06
386.21
142,36
524.83
65.03 378.18
I,169.29
r50.36
r49.05
107.32
205.24
321,47
9,161.55
AP Cbecks by Date - Detail by Veddor Number (2/21D0U 10t30 AM) Page I CheckNo verdor No
Invoice No
Vendor Name Check Date
Ref€rence
CheckAmoutrt
02012024-u
02012024-v
020t2024-w
020t2024-x
0201202+Y
0201202+2
0201202+2A
0201202+zB
02012024-zc
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02022024
02022024-A
02022024-B
02022024-C
02022024-D
02022024-E
02022024-F
02022024-G
02052024
02052024-A
02052024-B
02052024-C
02052024-D
02062024
02062024-A
02062024-B
02062024-C
02062024-D
02062024-B
02062024-F
020620244
02062024-H
02082024
02092024
02142024
02152024
02152024-A
02152024-9
02rs2024-c
o2152024-D
o2152024-E
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Strts/80028 1 ?959/Tuck€r Rd-Hwy 202/ I ar 2024
Strts/t002454554,4vli11 and J SVJa,r 2024
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Strts/80024857594di11 and J SVJsd 2024
Strtv8002738103,ry St e/o M betry/Jar2o24
LLD/80M2432041E Teh Blvd-Sreubd RdJan 2(
LLD /8002U3239 lDeatison-Pinon SVJan 2024
Strts/8002489190/213 West I SVJatr 2024
Strts/8002502103/Higl irc & CvryIlar2w
strts/E003326795/326 East D SVJan 2024
Strts/8003354214/303 EastAve D/Jan 2024
Strts/80028003 84/Tucker -Yalley / I a 2024
Strts/8002826534/710 W Tehachapi Blvdratr 20
Strts/8002503365/Tehachapi Blvd-Dennison/Jan
Strts/8000 1 17087n{ighway 202 / I an 2024
Strts/8002??7497lcoodRick Dr e/o DennisodJa
LLD/8002852577 nehath^pi Blvd-Bailey/Jan 20
Strtt8002504580/Dennisorl-Brett Ave/Jan 2024
Stts/800282?801 /2000 Magellan Dr / J at 2024
LLD / 80028293 l7 rl,'anzanl,f-Grced/ I aa 2024
Strts/8002486668Mi11 St sto E Stltan2024
Wt/8001 I 1965 1/Cury Boost€r&WelyJan 4-Feb
Wtr/8000488189/PiDotr WelVJa +F eb I 2024
LLD18000293383/1347 Clasico Dr Ped/Jan 4-Fe
LLD/8000296695/r I 15 Alder Ave Ped.Oan 4-Fet
LLD/8000302M8/1415 AldcrAvc Ped/Jatr +Fet
Sh/8000641860/1299 S CuIIy Sttan +Feb I 201
LLDI80M681-0470/ 1002 Applewood Pump StD,
GG/8012490077/420 W Vafley Blvd P€d[an +t
LLDI8003382785/1 80 Vall eyfisdt s-Feb 4 2024
Wtr/E00462t0731129 Brefi$'ood Dr/Jatr 5-F€b 4
LLD/8001628131/311 Sutter St/Jan 5-Feb 4 202.
LLD/8001628562501 l/2 PidoD/Ja! 5-F€b 4 20:
LLD/8000259694/I1O 12 Sutter SUJan 5-Feb 4 :
LLD/8000844933/115 Manza ta Ln[an 6-Feb :
Sfttv8000850r80/209 E Highline Rd Pedran 6-i
LLD/8000191339/1 199 Catryon Dr E/Jan 6-Feb
LLD/8000192404/1200 Dennisor/Jad 6-Feb 5 2(
LLD/8000193438/1202 Dennison[an 6-Feb 5 2(
LLD/8000195859/1000 Canyo DrWJatr 6-F€b :
Swr/8003048390/755 Steuber Well,/Jan 6-Feb 5 :
Strts/80014?0568/1300 Goodrick Dr #ZJan 6-F(
Drain/8001115579/409 Bailey Avefan 6-Feb 5 2
Wtr/8001340514/358 East D St an 6-Feb 5 20?
Wlr/E004425233NW Cor Anita-Dendsor/Jat 6
StrtyE003l35063/t00 S Curry St #Aratr l6-Feb
PW8001026848/101 Commercial Way/Jad l7-F
GG/8003354652/115 S Robinson Stfan 17-Feb
DSD/800336?862117 S Robinson Sy'Jan 17-Fet
Air/800103?98 I /,r09 Bryan Ctfan 17-Feb 14 20
Air/80001,161ss/Dennison to Hwy 5EAaD 17-Fl
Ai/8000152422/314 N Hayes Sy'Jan l?-Feb 14:
Air/8000361331/314 N Hayes St Papi/Ja! l7-Fe
Air/800088003,f//314 N Hayos St ttc3lJan 17-Fe
Air/8001 1,14201//3 14 N Hayes St #BAatr 17-Feb
Air/E003312447/314 N Hayes St/Jan l?-Feb 14:
AL/8003312881/9999 I /2H^yesfiaa 17-Feb 14 ,
Airl8003326595/316 N Moiave SVJaD l7-Feb 1r
203.55
88.14 17t,23
69.99 108.29
305.81
6r.47
t,448.16
r3.96
19.10 36.99
20.75 t7r.99
198.02
19.10 7t.77
257.60
97.90 52.89
t7t.02
321.94
21.61 4,581.99
2,845.37
38.81 15.r2
t5.t2
2,123.78
231.80
t6.27
8.05 9.83
9.82 1.99
tt.23
10.41 10.10
10.10 10.48
10.91 98.30
8.73 38.86
2,127.46
98.52 78.5E
59.33 1,362.55
406.95
267.94
206.25
103.81
72.96 22.97
281.65
146,47
113.05
35.17 AP Ch€cks by Date - Detail by Vendor Nuober (2/27 D024 10i30 AND Page Z CheckNo Vendor No
Invoice No
Vendor Name
D€scription
Check Dat€
Reference
Cbeck Amount
02152024-L
02202024
02202024-A
02202024-B
02202024-C
02202024-D
02222024
02222024-A
02222024-B
02222024-C
02232024
02232024-A
02232024-B
02232024-C
02232024-D
02232024-E
02232024-F
02232024-G
Air/8003354614/West End Teb Airyory'Jan l7-F
StrtV80007?8639/1668 Tehachapi BlvdA,iJatr 19
StrtVE0007?9431/1668 Tehachapi Blvd B/Jan l9
Strtv8003489234/500 Tucker RdJan l9-Feb 19
Strtv80024?5381/2069 E Tehachapi Blvd BAan
Strtv8002489094/2069 E Tehachdpi Blvd Ar6n
Strts/8000568732213 S Curry St Arar 23-Feb i
LLD/800295147'/329 l/2 D stfieo,23-F & 21 2l
LLD18002706271 /200 W Tehachapi Blvdlan 23
PD/8002893411/220 West C SIIIsm 23-Feb 21 2
GG/800O0724721111 t est I Stfian 24-F & 22 20
S4d8001658814/866 Tehachapi Blvd/Jan 24-Fe
GG/8003326651n 09 E Tehachapi Blvdfatr 24-F
GG/8001996165/1 125 Capital HilkAan 24-Feb i
Swr/E003352493/880 Ent€ryisellaa 2+F* 22 t
Swr/8002521204/800 Enteryisefian 2+F6 22 ,
Strts/8003885019/333 l/2 E Tehacbapi Blvdran
Strts/8004951232209 l/2 E Teha.bapi Blvdran
Total for thir ACH Check for Vendor 0372:
Total for Veodor 0372 (Southem Califomia Edisor):
The Gas Company
PD #12851696026 Feb 2024
Anlex #00881?02005 Feb 2024
City Hall #06551704007 Feb 2024
Akport #01091699981 Feb 2024
Vuitor Cedter # 10561664466 teb 2024
Total foi this ACH Check foi Vetrdor 0395:
Total for Vendor 0395 CIhe Gas Company):
Spa*letts
t58.27
82.09 30.34
14.2E
3t.20
72.29 26.9t
r87.92
2,603.45
27.75 9.52
57.88 4.81
3,057.53
13,690.73
66.64 15.9E
56,876.31
ACH 0395
scc2142024
scc2142024-A
scc2142024-B
scc2142024-C
scc2r42024-D
56,876.31
1,2t4.83
478.99
409.72
233.8r
20.67 2,358.02
ACH 0399
23sa.a
49.47 49.47
49.48 4365880020124 Swr/Hot{oldWaterDispenrerRental
43658t0020124-A PW,/Hot-ColdWaterDispeoserRetrtal
4365880020124-8 Wb/Hot-ColdW.terDispenserReatal
Total for this ACH Check for Vendor 0399:
Total for Vendor 0399 (Sparkletts):
Gleater Tebachapi Chamber of Commerce
ED/Chamber Gold Sponsor
Total for this ACH Check for Vetrdor 0424:
Total for Vendor 0424 (Greater Tehachapi Chamber of Cotr|merce):
Tehachapi-Crmmings Coutrty Water Distri(
Wt/Pemzoil Quaker State #5399 lao 2024
WtlHenway t15400 Jar 2n24
Wt4lv.ste MgEt #5401 Jan 2024
Wh/Tusd #5402 Jatr 2024
t48.42
AC}f 0424
2662
r4E.42
10,000_00
10,000.00
ACH 0426
TCCWD272024
TCcv'D27202+l\
'lccwD272024-B
TCCWD27202+C
10,00o.0o
9't.89
4.50 4.50
4.50 AP Ch€cl$ by Date - Detail by Vendor Number (2/27/202410t30 AW Page 3 Check No Vendor No
Invoice No
Vendoi Name
Descriptiotr
Check Date
Refererce
CheckAmount
TCCWD21202+D
TCCWD21202+E
TCCWDI1202+F
TCCWDZ12024-G
TCCWD212024-H
TCCWD212024-l
TCCWD272024-I
TCCWD272024-K
Wtr/walrior Part #5403 Jan 2024
LLD/COT Landscaping #54M 1n2024
LLDICOT Media! #5405 Jatr 2024
Wt/TUSD-DN2 #5434 Jan 2024
Wti/TUSD-DN4 #5435 Ja! 2024
Wt/TUSDDN6 #5437 Jan 2024
WIr/TUSD-DN8 #5438 Jatr 2024
GG/TUSD-St€ubef Lands cape 45613 Js02024
Total for this ACH Check for Vstrdor 0426:
Total for Vetrdor 0426 (Tehachapi-Cumrnings Couoty Water District):
Tehachapi Flower Shop
D.C. Sympalhy Arrangement
Total for this ACH Check for vendor M28:
Total fo! Veodor 0428 (Iehachapi Flower Shop):
WITTS Everything for the Ofrce
GG/Copy Paper/Pen5/Folders
Gc/Custom Printing Lettqhead
Toial for this ACH Check for Vendor M76:
Total for Vetrdor 0476 (WITTS Everythiag for the Office):
Leaguo of Califomia Cities
Gc^4embership Due3 2024
Total for this ACH Check for V€odor 0956:
Total for Vendor 0956 (League of California Cities):
M&M's Sports Uuiforns & Embroidery
Gc/Artwork - Melr & Wom€nr Jaaket
Total for this ACH Cheok for Verrdor 1286:
Total fol Vetrdor 1286 (M&Ms Sports Uniforms & Embroidery):
Grainger
PWI{VAC
PwBeekay Liehts
PWPPE
Tolal fo! this ACH Check for Vendor l,+41 :
Total for Vendor 1441 (craioger):
Government Finance Offi cers Association
Membership Rerewal Feb 2024-Jeo 2025/Dusy
4.50 9.4s
4.50 4.50
4.50 71.62
4.50 4.50
225.46
ACH M28
cc262024
0476
3365M
336988
75.00 ACH
75.00 150.?3
107.17
251.90
257.90
16E.55
ACH 0956
8101
ACH 1286
83.35 .J.J)
ACH t44l
m0197327r
n01973211-A
900197327 t-B
122.20
E5.98
321.70
529.8E
ACH 1849
GFO42212024
529.88
150.00
AP Checks by Date - Detail by Vendor Number (227D024 10t30 ANt) Page 4 Check No Vendor No
Itrvoice No
Vendor Nrme
Descriptioo
Check Date
Reference
CheckAmount
Total for lhis ACH Check for Vendor I 849:
Total for Vendor I 849 (Govemment Finance Ofrcers Association):
Kem County Recorder-Assessor's Office
Rccordidg ofTn t Map 6668
Recording ofTract Map 7,140
Total for lhis ACH Chect for Veddor 1967:
Total for Vendor 1967 (Kem County Recorder-Assessods Ofrce):
SSD Syst€ms
Alafln Services for AtuexMarch 2024
Alarh Sewices for Public Works^4arEh 2024
AlarE Services for Public Wolks Trailer^4arch :
Alarm Servic,es for lvater Tr€atmer* Facilitynvla
Alarrd Servic4s for WWTP TreatdeDt Facility,{\4
Alart! Seric€s foi Water Stonge Facility&Iarct
Alarm Servic€6 for WWTP Storage FacilityA,Ian
Allrln Servic€s for RR D€pot/Ma&h 2024
Alan'r Serices for City HalyMarch 2024
Alam Services for Airport + State-County TaxA
Alare Servic€s for Police Dept + State-CoEty 1
Total for this ACH Check for Vetrdor 1982:
Total for Vendor 1982 (SSD Systems):
Coffee Break Service lnc.
GG/Cofree Service & Supplies
Total fo( this ACH Check for Vetr.dor 2147:
Total for Vetrdor 2147 (Coffee Break Service Lnc.):
DataPrcse Inc.
Ref/Utility Billr - Pdntiqgfan 2024
Wrrutifity Bilh - PriDtineAan 2024
Swrrutifity Bills - Prirfingfan 2024
Ref/Utilig BiIs Postage an 2024
Wtrrutilty Bills Post4g€Aan 2024
Sftrutihty Bills Postag€[an 2024
Tot l for this ACH Check for Veddor 2478:
Total for Vendor 2478 @ataProse lnc.):
150.00
ACH 1967
KCR02262U4
KCR22624
ACH 1982
R-00503r76
R-00503176-A
R-00503176-8
R-00503 176-C
R-00503 176-D
R-00503 I 76-E
R-00503 176-F
R-00503 r 76-C
R-00503 I 76-H
R-00503 I 76-I
R-00503 176-J
ACH 2147
16816
150.00
EE.OO
91.00 179.00
t?9.00
53.80 54.53
73.41 50.03
50.02 39.r2
39.t2
92.E1
49.41 76.78
232.58
8l t,5l
Ell.6l
150.50
150.50
ACH 24'78
DP240025E
DP2400258-A
DP2400258-B
DP2400258-C
DP24N258.D
DP2400258-E
150.50
192.34
192.35
192.35
513.01
513.01
5t3.02
2,116.08
2,116.08
ACH 26',16
usPs2l52024
usPs-Poc
Postage/Acct #81040?2 1,000.00
1,000.00
AP Ch€ctr by Dare - Detail by Vendor Number (2/21D024 10t30 AIi) Total for rhis ACH Check for Vendor 2676:
Check No Vendor No
Invoice No
Vetrdor Nrme
Descriptiotr
Check D.te
Reference
Check Amount
Total for Vendor 2676 ruSPS-POC): 1,000.00
1,298.57
4.30 167.87
91.80 30.73
43.27 lEt.60
39o.16
210.26
6r.64
6.98 52.26
33.51 11.92
635.62
9.t7
15.30 to2.49
30.04 100.49
18.66 27.01
29.21 129.t4
69.91 42.76
136.17
28.30 37.51
32.43 48.65
21.63 21.O4
48.29 70.32
153.54
10.r2
8.64 ACH 2695
A-96t2590
B-9624705
c-8104530
D-8132955
E-8524@6
F-7524133
G-602103E
H-6042782
L66t2427
t4624870
K-1513148
L-l513159
M-214r7
N-21434
o:2ru0
P-524592
Q-524608
R-9021496
R-9021497
R-9021498
s-9625216
T-5513638
u-5513646
v-5513646
w-5543556
x-562008?
Y402t791
24524885
244524846
zB-3t33216
zc-2133292
zl)-2133305
zE-25t3812
zI-2520007
zG-8t33430
m-8620499
2t4614t63
zt-66t4t63
Home Depot Credit Servicas
PwchihtlIlas Storage
PWN-22 Keys
PWRR Park Tai1k
Wt!,/Heat Cables
Wh/Leak Repair
PW/RR Park Ligbts
Pw/Tlash Bags
Wh/V-23 Tools
Wtr/V-23 Tools
Wtrnrash Bags
Pw/Office Supplies
Ll,D/Irrigatiotr Supplies
PWSaw Blades
PWSaw Blad€s
PWD-105 Repain
Pw/Iools
Pwsafety cloves
PWFacility Repairs
Pw/Tools
PWfacility Repain
PWIools
PWTools
Pwsenior Center Repairs
Pw/TooIs
PWD-105
Pw/D-105
PWD-105
Pw/Tools
Strtvlrrigatiotr Supplies
LLD/Platrting
LLD/Plarriug
PWIools
PWTools
Pw/Batt€ries
Wt/Tools
Air/Airport hrigation
Air[nig.tiotr Repair
Pw/Tools
Total for this ACH Check for V€ddor 2695:
Total for Vendor 2695 (Home Depot Credit Services):
CivicPlus LLC
GG/AnNal Hosting & Support RenewavJul I 2(
Total for this ACH Cbecl for Vendor 2914:
Total for Vendor 2914 (CMcPlus LLC):
AT&T
PD/Phone Lines #9391040069dan 6-Feb 5 2024
GG/CIty Ha Line I #939100611AJan6-Ee'D 5 t
4,411.97
4417.97
3,4m.96
AC}f 2914
29r659
ACH 2963
2t2192s4
2r2t9424
3,490.96
3 490.96
441.48
l93.rE
AP Checks by Dal€ - Detail by Vendor Nudb€r (2/27n024 10t30 /.}tlt) Page 6 CheckNo Vendor No
Itrvoice No
Vetrdor Name
Description
Check Date
Reference
Cbeck Amount
212L9425
2t2t9426
2t219427
2t21942E
21219429
21219430
2121943r
21219432
Srrt/trqfiP Offic€ #9391006713fatr 6-Feb 5 2C
RR Depot #9391006715 /l^D 6-F & 5 2024
Srr,{-ift Station #93910067l6fiar, 6F€b 5 2024
CC/City l{all Fax #9391 006117 /Jaa 6-F eb 5 202
AiI/AWOS #9391006?18/Iaa GF& 5 2024
PWDSL Fax #93910067lg/lan 6-F eb 5 2024
Air/Fuel System #9391006720/tan 6-F eb 5 2024
Auto DiaI 1002 Applewood Pudp Sh #9391006
Toral for lhis ACH Ch€ck for Vendor 2963:
Total for Vendor 2963 (AT&T):
Verizod Wfueless
PDA4obil€ Comput€rs #242395501/Jad 2-Feb I
Gc/Mobile Brosdband Jan 19-F€b 18 202lAccl
Pw^{obile Boadband J.lr l*F* 18 2024lAccl
Swr^lobile Broadbadd Jan 19-Feb l8 2024lAcc
PD^,lobile Brcadband Jan 19-Feb lE 2024lAcct
Fio,^/tobile Brcadbard Jan l9-Feb lE 2024lAcct
ED^,tobile Broadband Jar l9-Feb l8 2024lAcct
FM/Mobile BroadbaDd Jan l9-Feb 18 2024lAccl
Coe^{obile Broadband Jatr l9-Feb l8 202,VAc,
Total for this ACH Ch€ck for Vendor 301 l:
Total for Vendor 30ll (Verizotr Wircless):
Sergio G. Soto
PW,|TE-29 Tire Change & Balaoce
PW/TB38 Tire Cbarye
Total for this ACH Check for Vendor 3 173:
Total for Vendor 3173 (Sergio G. Soto):
Roto-Rooter Service & Plumbing Co.
Swr/Clearing Sewer Mains
Gas Tax/StorD Drain Clear Out
Total for this ACH Check fot Vqdor 3194:
Total for Vendor 3194 (Roto-Rooter Service & Plumbing Co.):
Three Way Automotive Group
PWTE-33 Hamess
Total for this AcH check for Vetrdor 3248i
Total for Vendor 3248 (Threo Way Automotive Gtoup)i
Precision Labs
Swr/Flow Metcr Calibrating
145.34
85.03 2934
29.38 29.38
29.38 29.38
29.38 |,047.31
ACH 3011
9955526r'50
99570146E8
9957014688-A
995701468E-B
9957014688-C
9957014688-D
9957014688-E
9957014688-F
9957014688-G
|,047.31
920.25
22E.08
614.16
20.10 90.15
38.03 38.01
38.01 40.01
2,026.80
ACH
2,026.80
120.00
30.00 3173
1892
1897
3t94
7E3E60l09
783861485
ACH 3248
60E3oCVW
ACH 3306
62305
150.00
ACH
150.00
5,E00.00
3,650.00
9,450.00
9,450.00
't7.34
689.00
AP Ch€cks by DatE - Detail by Vendor NuIBbe (22712024 10t30 ANI) PaEe 7 CheckNo Vendor No Vendoi Name Check Dete
Reference
Check Amoutrt
Invoice No Descripliotr
Grac€ Delgado
Wellness Craut 2023-24 EquiFbsnt
Total for this ACH Check for Vendor 3306:
Total for Vendor 3306 (Precisiotr Labs):
Total for this ACH Check for Vetrdor 352E:
Total for Vendor 3528 (Grace Delgado):
689.00
ACH 3528
GD2272U4
689.00
77.94 77.94
EPIC Aviation LLC
Air/Jet-A luel
77.94 15,103.41
ACH
ACH
3571
7781415
Total for this ACH Ch€€k for V€ndor 35?7:
Total for Vendor 3577 @PIC Aviation LLC):
Customized Custodial Services
Jadtorial Soreices for Vrsitor Center
Janitoriel Services for Public Wo*s
Jaaitorial Seiviccs for Water Dept
Janitorial Serviccs for Sewer Facility
Janitorial Services for Sewet Bathroom
Jaoitoiial Services for Ai4ort & Irung€
Jadtorial Servicd for RR Depot
Jaditodal Services for Ssnior Center
Jaditorial Services for City Hall
Ianitorial Services for Anlex
Jardlorial Services for Police Dept
Jadrorial Services for Bus Stop
Total for this ACH Check for Vendor 3708:
Total for Vedor 3708 (Customized Custodial Services):
Diamond Technologies
ITMiclocoft 365 Februaty 2024 Biling
IT/Feb 2024 Biliry for Servic€ Ag€emeDt
Total for this ACH Che€k for Vetrdor 3807:
Total for Veadol 3807 @iamond Tecbrclogies):
OReilly Autonotive Irc
Pw/V-3 1 Filteis
Swr^r'-33 Filters
PWD-105 FilteE
PWTE45 FilterVWiper Blades
PWIE-24 Filtertwiper Blades
PWTE-29 Filtervwiper Blades
PWTE-37 Fittervwiper Blades
Swr/ATV-l Filten^,lotor Oil
t5,103.41
ACH 3708
cor0324
coT032+A
coT0324-B
coToS24-c
coT0324-D
coT0324-E
co't032+F
coT032+G
coT032,t-H
coT032+r
coT0324-J
coT0324-K
15,703.41
105.00
262.00
305.50
305.50
150.00
323.00
220.00
519.00
r,026.00
622.O0
2,248.O0
160.00
6,246.00
3807
3518lMS
35182
ACH 3848
4447t27034
4447-227035
4447-221Ml
4447-221042
4447-227044
4447-227041
4447-227049
4447-227065
6,246.00
2,537.60
26,496.41
29,034.01
29,034.01
47.26 60.0E
371.86
97.7E
95.56 116.1l
118.26
76.00 AP Ch€cks by Date - Detail by Vendor Nuaber (221n024 10t30 AM) Page 8 CheckNo Verdor No Verdor Nrme Check Date
Reference
Ch€ck Amoutrt
Invoice No
4447-221237
4447"2212s3
4447-221987
4447-228001
44414t079
4447-228080
4447-228167
4447-22823r
4447-22E372
4447-228420
4447-22U42
4441-228443
444748444
4447-228527
4447-22852E
4447-229345
4447-229383
4447-229389
4447-230306
4441:230395
4447-230574
4447-230s78
4447-230617
4447-230628
t74.s4
-22.00
t9.92
4E.37
9.35 12.43
113.55
175.81
214.52
-36.79
406.45
-22.00
:21.59
314.01
26E.31
27.05 1E8.32
34.31 187.23
55.09 s61.34
tt2.u
92,12
20.66 PW r'-32 Battery
PW,/V-32 Core R€ulm
PWShop Supplies
Pw/TE-s WipcrArm
Swr/E-2lE Igtritior
PWShop Suppli€s
PWShop Swplies
PWA/-s Door S€aYwhdow Regulator
PWTE-37 Battery
PW/IE-5 Return wipeiArm
PWA/-32 Brakes
PWTE-37 Cor€ Retum
Pwirr'-24 Filt€r Rehnu
PW r'-32 Brrke Rehrm
PWV-IE Struts & Coil SpriDg/Shocks
PI9/TE-32 Sea Foam/Filter
PWDR-105 Tralsmissioa Fluid
PWDR-105 Filt€r
PW,Ar'-5 Bumper Repair
PWAy'-5 Blo*er Motor
PW,/TE-3IBrakes
PW[E-33 Wiiing
PWTE-33 Filter^{otor Oil
Pw/D-105 Fuel Cap
Total for this ACH Check for V€ddor 3E4E:
Total for Vendor 3848 (OReilly Automotive Irc):
Trafrc Mauagement Incoryoraied
Strtdstreet Sig!6/Posts
Total foi this ACH Check foi Vendor 3868:
Total for Vendor 3868 (Traffic Managemotrt Incorporated):
Susan C Wi€(
Wellmss Grant 2023-24lweight Inss
Total foi this ACH Check for Vendor 3971 :
Total for Vendor 3971 (Susan C Wier):
Labsouce Irc
Sds.fety Glov€s
Total for this ACH Check for Vendor 4017:
Total for Vendor 4017 (LabSource trc):
Waxie Sanitary Supply
Gc^tuldfold Napkils./Pac Blue Basic
3233.93
3,?:i3.93
3,987.33
3868
0G105126
ACH 3971
s:vt2152024
ACH
ACH
3,987.33
3,987.33
100.00
100.00
4017
0066'2s786 642.90
ACH ,1036
82253779
642.90
n2.26
AP Checli6 by Date - Detail by Vendor Number (27/2024 10t30 AJ{I) Total for this ACH Check for V€ndor 4036:
PaSe 9
Check No Verdor No
Invoice No
Vendor Name
Description
Check Date
Referetrce
Check Amount
ACH 4138
39858
39858-A
3985E-B
ACH
Total for vendor 4036 (Waxie Sanitlry Supply):
Kem County Public Works
Pw/Tr63h Jau 2024
Cal Tnns/Tmsh Jan 2024
Air/Trash Jan 2024
Total for lhis ACH Check for Vetrdor 4 138:
Total for Vendor 4138 (Kem County Public Works):
Core & Main LP
Wtr/SBpplies for Water L€ak Repair
Wtr/Supplies for Water I€ak Repair
Wtr/Tools
Total for this ACH Check for Vcrldor 4157:
Total for Vendor 4157 (Core & Main LP):
Waste Management (ACH)
PW40 yrd Rollofr #1 8-94373-03004/ln 2024
Swr/Street Sweeper Bins #22436264300v1ai t
PwPropane for Shop #19-17983-73000
Wt/PropaDe for Watrr Shop # l9- I 7983-83008/J
Total for lhis ACH Check for vetrdor 4230:
Total fol Vedor 4230 (Waste Man:gement (ACII)):
Sumoit Baak-Loao Operatiors
Gc/Equipment L.ase Lo6n #100020/Principal
Gc/Equipmest L€as€ t an #100020,4ntercst
Capital t €3se Loan #100020/Debit
Capital Lea6e LoaD # 100020/Credit
PD/Equipme L€{se lran #100020/Pdncipal
PD/Equipme L€ase Loan #100020/Interest
Capital Loase loaD #l00020/Credit
Capital Lease Loan #100020/D€bit
Wt/EquipneDt Lease Loatr #100020/Principal
Wtr/Equiptront L€ase Loan #100020^niercst
Total for this ACH Check for Vendor 4260:
Total fo. Vendor 4260 (Swnmit Bank-LoaD Operations):
Innovative Tlee Service
Tr€€ Maintflarce - T€h Blvd/Mill
Tre€ Maiitemnce - Teh Blvd
Total for this ACH Check for Vendor 4278:
Total for Vendor 4278 (Innovative Tree Service):
272.26
123.s7
9.27 22.86
755.70
4157
T650471
u185450
u268938
ACH 4230
0012982-4808-?
0012989-4608-2
01788024792-3
0r7aao3-4792-l
ACH 4260
sB272A4
s8272024-A
sB272U+B
s8272024-C
s827202+D
sB2'7202+E
s827202+F
sB27202+G
sB2'1202+H
s821202+r
ACH 4278
1t7
118
755.70
u2.90
461.81
116.41
69t.r2
691.12
530.41
2,969.91
1,598.21
2,360.23
7 A5E.E2
7 458.82
30,230.r2
2,739.33
-30,230.r2
30,230.r2
9,069.M
821.81
-9,069.04
9,069.04
9,069.04
821.81
52,75r.15
52,751.t5
3,?00.00
3,200.00
6,900.00
6,900.00
AP Checks by Date - Detail by Vsndor Numb€r (2127/20U 10t30 AM) Page l0 CheckNo Vetrdor No
Invoice No
Vendor Name
Descriptiotr
Check Date
Reference
Check Amount
ACH 4353
32M9760
32M9760-A
32M9760-B
3208/453
32084453-A
320U453-B
Canon Financial Services Inc
PWCanon C@ier Feb 2024
Wtr/Canon Copier Feb 2024
Swr/CaDon Copie! Feb 2024
Gc/Caaotr Copieidan 2024
DSD/Canon Copier/Jan 2024
PD/Canon Copi€r/Jan 2024
45.29 22.65
22.65 292.21
255.92
235.17
Total for $is ACH Check fot Vedor 4353 |
Total for Vendor 4353 (Canon Financial Services Inc):
814.49
ACH
ACH
4389
256397706
256397862
2563997E-4'
E74.49
t3.00
94.99 94.99
Ortin
PD /Pest Cootol
DSD /P6t Contol
GG/Pest Control
Total for lhis ACH Check for V€ddor 43 89:
Total for Vendor 4389 (Orkin):
Quadient Leasing USA loc.
L€ase Paym€nt Mar 8 - JuDe 7 202
Total for this ACH Check forVtut 4429:
Total for Vendor t1429 (Quadient Leasiq USA Inc.):
TJKM
StrtVSpeed & Traffic Survey
Total for this ACH Check for V€ndor 4620:
Total for Veador 4620 ([JKM):
SFagro West LLC
SntBiosolids Hauling
Total for this ACH Check for Veador 46391
Total for Vendor 4639 (Synagro west LLC):
Ringceotral Inc.
Cisco ATA192 Phone Adap&t
Total for this ACH Check for Vendor 4? | 4:
Total for Veudor 4714 (RitrgceDtral IDc.):
Senty Equipment Cotp
Sl{l/Clarifier Rebuild
202,9E
4429
QllE7296
4620
0055014
ACH 4639
45364
ACH 4'n4
13825468002
ACH 4729
23404
496.E6
ACH
496.86
t,297.50
|,297.50
t,297.s0
10,096.83
10,096.83
10,096.83
80.03 E0.03
E0.03
56,971.00
AP Checks by Dat€ - Detail by Vendor Nuober (2/27n0U 10t30 l\lfi) Page 1l CheckNo VetrdorNo
Itrvoic€ No
Vendor N&me
Descrlpffor
Check Dat€
R€fererce
CheckAmoqDt
Total for this ACH Check for ye\hr 4129.
Total for Vendor 4729 (Sentry Equipment Corp):
MSW Consultaots
Retu6e/Recyclitrg Rrte Study
Total for this ACH Check fot Vendot 47421
Total for Vendor 4742 (MSW Co6ultants):
Collitrs Electric
REFUND Hydrsdt Meter Deposir Balance CR *
Totol for this ACH Chccl for Vcddor 4?82:
Total for Vendor 4782 (Co[itrs Electic):
Tonics
Sign Grant hogram Reimburs€ment
Totrl for this ACH Check for V€odof 4784:
Toal for Vedor 4784 (Tonics):
Repott Total (5 I checks):
56,9?l.00
56,9?1.00
r2,Et0.00
ACH 4742
801
ACrt 4782
c82t32024
478r'.
T422624
12,810.00
12,810.00
4t.65
41.65 ACH
41.65 1,647.00
1,647.00
1,647.00
309,386.7E
AP Ch€cks by Date - D€tail by VedorNrEber (2/272024 10:30 AM) PagE 12 Accounts Payable
Checks by Date - Detail byVendorNumber
Us€n aftcscas
2t271202410|29 tM
C ITY
H CHAPI
CALIFORNIA
CheckAmolnt
TE
ChrckNo VcndorNo
I[Yolco No
Vendor Nrme Check Itste
Refcrotrce
ACI{ 0362
orvfDs
RSI Pc6oleum Prodrc-b
PW rlc.dcd Gasolin€ 4856.73
Tot l br ihir ACII Chc€k frr v.odo. 0362:
Total for Vendor 0362 (RSI P€tuolqn hodrcts):
Report Total (l checks):
4856.73
2,856.73
\856Jt
AP (}eotr! by M - Dctdil bt' V.itdo.fdDb.r (2Tm2A rc129 AM) Page I
CITY OF
TE HAC HAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 4,2024 AGENDA SECTION: FINANCE DIRECTOR TO: HONORABLE MAYOR DAVIES AND COUNCIL MEMBERS
FROM: HAMED JONES, FINANCE DIRECTOR
DATE: FEBRUARY 28,2024
SUBJECT: FISCAL YEAR END 2023 FINANCIAL REPORTS
BACKGROUND
The City's financial transactions for fiscal year 2022-23 are now audited and the financial reports are completed.
The reports included in this agenda are: Annual Comprehensive Financial Report (ACFR), lndependent Auditor's Report on lnternal Control and Compliance, Report on the City's Appropriations Limit, and Statements of Audit Standards 114 Communication Letter.
Comprehensive Annuol Financiol Report
The City's Annual Comprehensive Financial Report is comprised of:
1. lntroductory Section
a. Letter of Transmittal
b. Directory of Officials
c. Organizational Chart
d. Certificate of Achievement for Excellence in Financial Reporting
2. Financial Section
a. lndependent Auditor's Report
b. Management Discussion & Analysis
c. Basic FinancialStatements
d. Required Supplementary lnformation
e. Supplementarylnformation
3. Statistical Section
a
Continued from the last several years, the City submitted its2022-23 ACFR to the Government Finance Officers Association for the Excellence in Financial Reporting Award ("Award"). The City has received the Award every year since FY 2OL7-L8.
lndependent Auditor's Report on lnternal Control over Finonciol Reporting ond on Compliance ond Other Motters Bosed on on Audit of Financiol Stotements lnternal Control over Financia! Reporting: The auditor stated, "During our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, materialweaknesses or significant deficiencies may exist that were not identified."
o
a Compliance and Other Matters: The auditor stated, "The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under G ove rn me ntol Auditi ng Sta ndo rds."
lndependent Accounton(s Report on Agreed-Upon Procedures Applied to Appropriotions Limit Worksheets
The Appropriations Limitation imposed by Propositions 4 and 111 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The auditor performed agreed-upon procedures based on standards established by the American lnstitute of Certified Public Accountants and reported the findings. Staff calculates the annual appropriations limit as a part of the budget process. The appropriations limit for fiscal year 2022-23 was 5L6,32L,2O5 which was S1,153,353 more than 2021-22 appropriations limit.
The auditor agrees with our appropriation calculation for the audit year as well as the prior year.
Stotements of Audit Stondards (SAS) 114 Communicotion Letter This is the Auditor's communication with the governing board for the financial reporting process.
a
a No significant findings are reported.
RECOMMENDAT!ON
lnformation only
Von Lont a
Fonkhonel, LLP
-i
Certitied Publrc Accountants |-
Independent Auditor's Report on lnternal Gontro! over Financia! Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Sfandards City Council
City of Tehachapi
Tehachapi, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Sfandards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Tehachapi (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 27,2023.
!nternal Control Over Financia! Reporting
ln planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material tveakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a materialweakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identiff all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Van Lant & Fankhane!, Ll-P
29970 Technology Drive. Suite 105 A
Murrieta. CA 92563
s9 856 6879
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Gove rnment Auditing Sfandards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Sfandards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
L/t * Y*et *'/,//f
December 27,2023
Vun Lont a
Fonkhonel, LLP
---i Certitied Publ.c Accouhtants lINDEPENDENT ACCOUNTANT'S REPORT ON AGREED.UPON PROCEDURES APPLIED TO APPROPRIATIONS LIM!T WORKSHEETS
City Council
City of Tehachapi
Tehachapi, California
We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of Tehachapi, for the year ended June 30, 2023. These procedures, which were agreed to by the City of Tehachapi and the League of California Cities (as presented in the publication entitled Agrced-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XlllB of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XlllB of the California Constitution. The City's management is responsible for the Appropriations Limit worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American lnstitute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet, we added last year's limit to total adjustments and agreed the resulting amount to this year's limit.
Finding: No exceptions were noted as a result of our procedures
3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above.
Finding: No exceptions were noted as a result of our procedures Van Lant & Fankhanel, LIP
29970 Technology Drive Suite 105 A
Murrieta cA 92563
s9 856 6879
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Afticle XlllB of the California Constitution.
This report is intended solely for the use of the City Council and management of the City of Tehachapi and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
Lfu ' Y*'ll'*'/'//f
December 27,2023
CITY OF TEHACHAPI
APPROPRIATIONS LIMIT COMPUTATION
2022 -2023
2022 - 2023
Change in Per Capita Personal lncome
Population Change
County Population Growth
A. Change in Per Capita Personal lncome Converted to a Ratio B. Population Growth Converted to a Ratio
Calculation of Growth Factor (A x B)
2021 - 2022 Appropriations Limit
2022 - 2023 Appropriations Limit
($1 5, 1 67,842 x 1.07604)
7.55o/o
0.05%
1.0755
1.0005
1.07604
$ 1s, 167,842
$ 16, 321,205
Von Lonl a
Fonkhonel, LLP
--{ Certified Public Accountants FDeenmber 27,2023
City Council
City of Tehachapi
Tehachapi, CA
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Tehachapi for the year ended June 30, 2023. Protessional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Sfandards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 15, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Siqnificant Audit Findinos
Qualitative Aspecfs of Accounting Practices
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.
Van Lant & Fankhanel, LLP
29970 Technology Drive Suite 105 A
Murrieta CA 92563
ss 856 6879
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.
No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 2023. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Management's estimate of capital assets depreciation is based on historical estimates of each capitalized item's useful life. We evaluated key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financialstatements as a whole.
Management's estimate of the net pension liability is based on actuarial information provided by the California Public Employee Retirement System's (CaIPERS) actuarial office. We evaluated the key factors and assumptions to develop the net pension liability in determining that it is reasonable in relation to the financial statements as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of the fair value of investments in Note 2 A to the financial statements represents amounts susceptible to market fluctuation.
The disclosure of accumulated depreciation in Note 2 C to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosure of the net pension liability in Note 3 B to the financial statements is based on the City's proportionate share of the total pension liability of the pool and includes assumptions for discount rates, which could differ from actual discount rates. Note 3 B discloses the differences in the net pension liability assuming different discount rates.
Difficulties Encountered in Pertorming the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Co ne cted a nd U n co rrected M i s state m e nts
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. ln addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
M a n age me nt Re pre se ntation s
We have requested certain representations from management that are included in the management representation letter dated Dece mber 27, 2023.
M anageme nt Con su ltation s with Other I ndependent Accountants ln some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. lf a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or /ssues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis and the schedules listed as required supplementary information in the table of contents, which are required supplementary information (RSl) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSl.
We were engaged to report on the supplementary information as listed in the table of contents, which accompany the financial statements but are not RSl. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical section, which accompany the financial statements but are not RSl. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
/*,/* * Y*tAo*r/,//F
CITY OF TEHACHAPI, CA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ended June 30, 2023
CITY OF TEHACHAPI, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2023
Prepared by:
Finance Department
City of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS
I. INTRODUCTORY SECTION PAGE
Letter of Transmittal 1 - 5
Directory of Officials 6
Organizational Chart 7
Certificate of Achievement for Excellence in Financial Reporting 8 II. FINANCIAL SECTION
Independent Auditor’s Report 9 - 11
Management’s Discussion & Analysis 12 - 23
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 24
Statement of Activities 25 - 26
Fund Financial Statements:
Balance Sheet - Governmental Funds 27 - 28
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 29 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 30 - 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32
Statement of Net Position - Proprietary Funds 33 - 34
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 35 - 36 Statement of Cash Flows - Proprietary Funds 37 - 38
Statement of Net Position - Fiduciary Funds 39
Statement of Changes in Net Position - Fiduciary Funds 40 Notes to Financial Statements 41 - 65
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
General Fund 66
Facility Impact Fee Special Revenue Fund 67
Traffic Mitigation Special Revenue Fund 68
Schedule of the City’s Proportionate Share of the Net Pension Liability 69 Schedule of Plan Contributions 70
Notes to Required Supplementary Information 71
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Roads and Pedestrian Safety Capital Projects Fund 72
Street Projects Capital Projects Fund 73
Non-Major Governmental Funds:
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 75 Non-Major Special Revenue Funds:
Combining Balance Sheet 76 - 77
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78 - 79 City of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2023
TABLE OF CONTENTS - Continued
Supplementary Information - Continued: PAGE
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Oil Recycling Grant Special Revenue Fund 80
Beverage Container Recycling Special Revenue Fund 81
Lighting District Special Revenue Fund 82
Streets and Roads Special Revenue Fund 83
Gas Tax Special Revenue Fund 84
Non-Major Capital Project Funds:
Combining Balance Sheet 85
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 86 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Building and Planning Capital Projects Fund 87
Parks and Recreation Capital Projects Fund 88
Custodial Funds:
Combining Statement of Fiduciary Net Position 89
Combining Statement of Changes in Fiduciary Net Position 90 III. STATISTICAL SECTION
Table of Contents 91
Net Position by Component 92 - 93
Changes in Net Position 94 - 97
Fund Balances of Governmental Funds 98 - 99
Changes in Fund Balances of Governmental Funds 100 - 101 Assessed Value of Taxable Property 102 - 103
Direct and Overlapping Property Tax Rates 104 - 105
Principal Property Tax Payers 106
Property Tax Levies and Collections 107
Ratios of Outstanding Debt by Type 108 - 109
Ratios of General Bonded Debt Outstanding 110
Direct and Overlapping Governmental Activities Debt 111 Legal Debt Margin Information 112 - 113
Pledged Revenue Coverage 114
Demographic and Economic Statistics 115 - 116
Principal Employers 117
Full-time and Part-time City Employees 118
Operating Indicators 119 - 120
Capital Asset Statistics 121
THIS PAGE INTENTIONALLY LEFT BLANK
INTRODUCTORY SECTION
Letter of Transmittal
December 27, 2023
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Tehachapi:
We are pleased to submit the June 30, 2023 Annual Comprehensive Financial Report (ACFR) for the City of Tehachapi. At the close of each year, the City of Tehachapi is required by state law to issue a financial statement in conformity with generally accepted accounting principles (GAAP) that complies with the financial reporting requirements issued by the Governmental Accounting Standards Board (GASB). This financial report is audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants.
This report consists of management’s representations concerning the finances of the City of Tehachapi. Management is fully responsible for the financial operations of the City as well as the preparation and fair representation of the financial statements. Because the cost of internal control should not outweigh the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
To provide a reasonable basis for making representations and assurance that the financial statements will be free from material misstatement, the City management has established a comprehensive internal control framework designed both to protect its assets and to compile sufficient reliable information to prepare the City’s financial statement.
The City of Tehachapi’s financial statements have been audited by Van Lant and Fankhanel, LLP, an independent auditing firm licensed as certified public accountants. The goal of the audit was to provide reasonable assurance that the financial statements of the City of Tehachapi for the fiscal year ended June 30, 2023 are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements and assessing the accounting principles used and significant estimates made by management. Van Lant and Fankhanel has issued an unmodified opinion on the City of Tehachapi’s financial statements. The independent auditor’s report is located at the front of the financial section of this report.
GASB Statement 34 (GASB 34) requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management Discussion and Analysis (MD&A). This letter of transmittal serves to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor.
1 Profile of the City
Tehachapi has long bridged both east and west - tradition and innovation. The City is located in a mountain valley at the southernmost tip of the Sierra Nevada Mountains. Situated above the Mojave Desert on the east and the San Joaquin Valley on the west, the pass through the Tehachapi Valley provides the only direct route over the Sierra range south of Lake Tahoe. Due to its 4,000-foot elevation, Tehachapi has four distinct seasons unlike other neighboring regions.
In 1876, the Southern Pacific Railroad completed the Tehachapi Loop, a long continuous curve which allowed trains to climb the steep grade by bringing the track back over itself. It was the engineering feat of its day and is still in use. After the trains finished their 3,600-foot climb, the railroad needed a place to service them before heading on to Los Angeles and beyond. Thus, the town of Tehachapi was born and in August 1909, the emerging City of Tehachapi was incorporated.
Tehachapi is a general law city and employs the Council/Manager form of government. The City Council acts as the legislative and policy making body for the City and consists of five members.
The City Council selects the Mayor and Mayor Pro Tem from among its members after each Council election, every even numbered year. The Council also appoints the City Manager, City Attorney, all five members of Planning Commission, and two members of the Tehachapi Valley Recreation and Park District Board of Directors.
Services Provided
The City provides a full range of services comprised of police; construction and maintenance of streets and infrastructure; community development including planning, building, and engineering; water and sewer; and a municipal airport as well as general administrative services. The City contracts with the County of Kern for fire protection and transit services.
The City’s annually produced five-year budget serves as the foundation for financial planning and control. Budgetary control is maintained to ensure compliance with legal provisions of the annual appropriated budget as approved and modified by the City Council. The budget process begins in January and Council is required to adopt the budget no later than June 30 preceding the beginning of the fiscal year on July 1. Mid-year budget adjustments and the new five-year budget process occur concurrently.
The budget is prepared at fund level. The City Manager has the authority to transfer resources within a fund without limit; however, he may appropriate up to $50,000 per fund above the budget if there is a sufficient fund balance to cover the extra appropriation. Capital projects are not bound by the annual budget due to characteristics in timing. The annual capital projects budget is a general guideline of spending for the budget year as capital projects are monitored by the construction period rather than on an annual basis.
Economic Condition
As of October 2023, the unemployment rate in the City of Tehachapi was 7.1% which was 2.3% higher than the State of California unemployment rate, 4.8%(1). The 2023 median home sale price in Tehachapi was $369,750(2) whereas the median home sale price in the U.S. was $431,000(3).
In 2022, the 12-month average household income in the City was approximately $72,827 which was roughly 2% less than the national average household income of $74,580(4). 2 After feeling the effects of the COVID-19 outbreak, the local economy has bounced back with most key revenue sources reaching or exceeding pre-pandemic levels. The City’s General Fund revenues such as sales tax, transient occupancy tax, and passport processing have shown significant recovery from COVID-19 related decline as consumer spending and travel have increased. The total General Fund revenue in FY 2022-23 was $14,710,129, which was 25.3% higher than the prior year’s revenue ($11,735,722). Revenue was higher primarily due to a large pandemic relief grant received in the current fiscal year as well as the first quarter of a new 1% district transactions sales tax. The readers may find a detailed revenue analysis in the Management Discussion and Analysis report in the Annual Comprehensive Financial Report.
In fiscal year 2022-23, the City issued 26 new building permits (24 for new single-family homes and 2 for commercial/industrial construction). The City’s new homes built during the last twelve years are in tracts which were entitled during the last housing boom over 10 years ago.
Currently, there are several development projects under construction that will positively impact the City’s economy. Those projects are:
1. Capital Hills Gas and Retail Center has obtained their permits to construct a 3,110 square foot convenience store, 2,000 square foot drive-through Quick Serve Restaurant (QSR) and 10-pump gasoline station.
2. A new 6,000 square foot pre-engineered steel building is under construction for Ten-West Towing on Bailey Avenue.
3. Construction of the Mountain Top Storage facility on Tehachapi Boulevard is underway, boasting up to 72,000 square-feet of storage space.
4. K. Hovnanian has completed construction on 22 out the 55 new homes proposed in Tehachapi Hills with an additional 18 homes currently under construction.
5. A new RV Resort and Mini-Storage facility on a 30-acre property located south of East Tehachapi Boulevard and west of Bailey Avenue consisting of 91 RV spaces, restrooms, club house, laundry room, barbeque area, and other recreational facilities has received their permits for Phase 1 of the project that includes 65,000 square feet of mini-storage.
6. Construction has begun on a new Caltrans Maintenance Station that includes one (1) crew building, one (1) mechanics building, two (2) equipment canopies, one (1) wash rack, one (1) fuel island, one (1) brine building, material bins and PCC slabs and accessory buildings.
The project consists of three (3) parcels totaling 5.66 acres located at the eastern terminus of Industrial Parkway and northern terminus of North Curry Street.
7. Tract 6668 located south of Cherry Lane, north of Pinon Street, and east of Redwood Court is currently completing off-site improvements for 18 residential lots.
8. Tract 6248 located south of C Street, north of Valley Boulevard and west of Park Street is currently completing off-site improvements that will consist of 30 available lots for residential development.
Long-term Financial Planning
Continued financial security through long-term financial planning has been of the utmost importance to City leaders for years. As a result, the City has been producing a five-year budget annually since fiscal year 2000-01. This extended budget has provided a roadmap for educated financial planning for the City Council and management. One of the most valuable pieces of information from this document is the projection of available cash balances for each fund. This feature presents the foundation for City management to examine different scenarios for future operations.
3 One of the goals that the City would like to accomplish within the next ten years is to gradually pay off the employees’ pension unfunded accrued liability (UAL). The current UAL is approximately $6.2 million based on the current discount rate of 6.90%, which was an increase of $3.4 million or 119% after CalPERS suffered significant investment losses in FY 2021-22.
As development in town directly relates to the City’s future finances, the listed prospective projects will affect the City’s long-term financial planning.
Planning/Entitlement Projects:
1. A new 140-acre master planned community (Sage Ranch) is proposed in the center of town. The development is advocating for up to 995 new housing units along with over 9 acres of park space. Precise Development Plan Phase 1 was approved on November 13, 2023 with 144 units in this phase.
2. Development of a 24-stall Tesla Supercharger Station with six (6) supercharger cabinets on a 3.28-acre parcel south of East Tehachapi Boulevard and east of Monolith Street.
3. A new 2,500 square foot retail and restaurant building and two (2) new rowhouses with a total of seven (7) multi-family residential units totaling 13,426 square feet on two (2) parcels totaling 0.50 acres located at the southeast corner of East Tehachapi Boulevard and Hayes Street.
4. Development of 37 condominium units on 3.06 acres at the northwest and southwest corners of Curry Street and Pinon Street. Included in the design is approximately 15,000 square feet of open community space for a child play area, picnic area with grilling stations, community garden, dog walking path, and bocce court.
5. “J Street Commerce” project consisting of 5 buildings totaling 28,502 square feet that are anticipated to be used for light manufacturing or storage with integral office spaces on a
2.87-acre parcel that currently consists of two existing buildings.
Cash Management Policies and Practices
After annual review, the City updates its Investment Policy and submits it to the City Council for approval. In addition, an Investment Report which includes all bank balances and investment portfolio information is generated monthly and submitted to Council.
To maximize interest income and maintain liquidity, the City pools operating cash for its various funds and invests the monies. City and agency funds are invested pursuant to the City’s Investment Policy in compliance with Section 53601 of the California Government Code. The authorized investment types include the investment pools such as the California Asset Management Program (CAMP), Local Agency Investment Fund (State of California pool) and Central San Joaquin Valley Rick Management Authority investment pool through Chandler Asset Management, U.S. Treasury Obligations, U.S. Government Agency Issues, and Certificates of Deposit as well as mutual funds and money market funds. The investments are made based on the priorities of safety, liquidity, and yield.
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code in the City’s Investment Policy.
4 5
City of Tehachapi
Directory of Officials
Elected Officials
Mayor Michael Davies
Mayor Pro Tem Joan Pogon-Cord
Council Member Jeanette Pauer
Council Member Phil Smith
Council Member Susan Wiggins
City Clerk Tori Marsh
City Treasurer Marianna Gutierrez
Administration
City Manager Greg Garrett
Assistant City Manager Corey Costelloe
Chief of Police Richard Standridge
Community Engagement Manager Key Budge
Development Services Director Jay Schlosser
Finance Director Hamed Jones
General Services Director Ashley Whitmore
Public Works Director Don Marsh
City Attorney Thomas Schroeter
6 Elected
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City of Tehachapi
Organizational Chart
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IT
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7 Government Finance Officers Association
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in Financial
Reporting
Presented to
City of Tehachapi
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
8 FINANCIAL SECTION
Independent Auditor’s Report
The Honorable City Council
City of Tehachapi, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Tehachapi (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Tehachapi, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing 9 Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining statements and budget schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
10 Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 27, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 City’s internal control over financial reporting and compliance.
December 27, 2023
11 MANAGEMENT’S DISCUSSION AND ANALYSIS
The management of the City of Tehachapi has provided this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2023. The City encourages readers to consider the financial statements and notes presented here in conjunction with the financial statements which are included with this report.
Financial Highlights
The City’s net position increased 5.6% to $76,491,287 from $72,441,321 as a result of this year’s operations.
Total City revenues, including program and general revenues, were $27,985,626, which is $4,112,153 more than the prior year.
Total City expenses, including governmental and business-type expenses, were $23,802,372, which is $3,638,365 more than the prior year.
Net position in governmental activities increased by $3,664,068 to $57,082,608, a 7% increase. Net position in business type activities increased by $519,186 to $19,408,679, a 3% increase. Governmental revenues increased by $2,840,601 to $18,799,103, an 18% increase. Governmental expenses increased by $2,905,930 to $15,134,083, a 24% increase. Revenues from business-type activities increased by $1,271,552 to $9,186,523, a 16% increase. Expenses from business-type activities increased by $732,435 to $8,668,289 a 9% increase. General fund revenue increased by $2,974,407 to $14,710,129, a 25.3% increase. General fund expense increased by $786,715 to $11,201,824, a 7.6% increase. The fund balance of the General Fund as of June 30, 2023, was $18,456,903; an increase of $3,508,305 or 23.5% from the prior year.
Overview of Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of:
1. Government-wide Financial Statements
2. Fund Financial Statements
3. Notes to Financial Statements
This report also contains Required Supplementary Information and Supplementary Information in addition to the Basic Financial Statements.
The Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Tehachapi’s finances, in a manner similar to a private-sector business. The focus of government-wide financial statements is on the overall financial position and activities of the government as a whole. These financial statements are constructed around the concept of a primary government. The primary government is then broken down into two different activities: governmental activities and business-type activities.
Governmental activities include the following:
General Government Administration, finance and accounting, human resources, economic development, legal services, and the City Clerk’s office Public Works Maintenance and repair of roads and buildings, landscaping, lighting, drainage, and community promotions
Public Safety Police and fire services
Community Development Planning, engineering, building inspections, and development services The services under governmental activities are supported by taxes and specific program revenues. 12 Business-type activities include refuse, water, wastewater, transit, and airport services. Unlike governmental services, business-type activities are supported by charges paid by users based on the amount of services used.
The government-wide financial statements are comprised of the Statement of Net Position and Statement of Activities.
The Statement of Net Position is prepared using accounting principles that are similar to a private-sector business.
The purpose of the Statement of Net Position is to report all assets held and liabilities owed by the City. The difference between the City’s total assets and total liabilities is labeled as net position and this difference is similar to the total owners’ equity presented by a private-sector business. Although the purpose of the City is not to accumulate net position in general, increases or decreases of net position may serve as an indicator of the financial position of the City.
The Statement of Activities presents the revenues and expenses of the City. Again, the items presented on the Statement of Activities are measured in a manner similar to the approach used by a private-sector business, in that revenues are recognized when earned and expenses are recognized when incurred. The difference between revenue and expense is called change in net position in the City’s financial report whereas it is called net income in a private-sector business.
Fund Financial Statements
Unlike government-wide financial statements, the focus of fund financial statements is directed to specific activities of the City rather than the City as a whole. All of the City’s funds are composed of three categories: governmental funds, proprietary funds, and fiduciary funds.
Fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of a major fund, and the determination of which funds are major, was established by Governmental Accounting Standards Board (GASB) Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, while all non-major funds are summarized and presented in a single column.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.
The City of Tehachapi maintains 16 active individual governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances. The funds categorized under major funds are: General Fund, Facility Impact Fee Fund, Traffic Mitigation Fund, Roads and Pedestrian Safety Fund, and Street Projects Fund. Data from five governmental projects are combined into the Roads and Pedestrian Safety fund and twelve governmental projects are combined into the Street Projects fund, which are capital projects funds. Funds such as the gas tax funds, Transportation Development Act grant funds, landscape lighting district funds, and drainage basin assessment district funds are grouped into the Other Governmental Funds.
The projects included in the Pedestrian Safety Funds are Brentwood Pedestrian Facilities, Northside Neighborhood Sidewalks Ph 3, Transit Center Sidewalk Connection, Valley Recreational Park, and Antelope Run Bike Path Extension. Twelve projects are included in the Street Projects Fund. They are the Enhanced Striping, Valley Resurfacing Beech-Curry, Tehachapi Blvd Bike Lane Fence, Tree Planting and Stormwater Capture, City Traffic 13 Model/Mitigation, Snyder Ave. Gap Closure, Summit Rehabilitation, Pinon Road Extension, Dennison BicyclePedestrian Improvement, and Local City Streets Rehabilitation projects.
Proprietary funds record revenues when they are earned and record expenses at the time liabilities are incurred.
The only type of proprietary funds the City of Tehachapi maintains is enterprise funds. The Refuse, Water, Sewer, Transit, and Airport funds are enterprise funds and presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City considers Water, Sewer, Airport and Refuse Funds to be major funds whereas the Transit Fund is categorized as a non-major proprietary fund.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City’s fiduciary fund activities are reported in a separate section of this report under the Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use assets belonging to fiduciary funds to finance its operations. Financial activities included in the fiduciary statement consist of the Successor Agency to the former Tehachapi RDA (Successor Agency), Special Assessment Districts (AD), and the Community Facilities Districts (CFD).
Notes to the Financial Statements
The notes give additional information that is essential to a full understanding of the data provided in the governmentwide and fund financial statements.
Required Supplementary / Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information and Supplementary Information. The Required Supplementary Information section includes budgetary comparison schedules for major governmental funds and the Supplementary Information section includes an illustration of conditions and activities for all non-major funds as well as special district agency funds.
Government-wide Financial Analysis
Statement of Net Position Summary
The City’s overall financial position and operations for the past two years are summarized in the table above based on the information included in the government-wide financial statements. At June 30, 2023, the City’s overall net position was $76,491,287, which is the difference between assets plus deferred outflows of resources and liabilities 14 plus deferred inflows of resources. The net position that resulted from governmental activities was $57,082,608 and from business-type activities was $19,408,679. Net position may serve over time as an indicator of a government’s financial position.
The largest portion of the City’s net position is investments in capital assets. The Net Investment in Capital Assets (e.g., land, infrastructure, buildings, machineries, and equipment) was increased to $54,874,461 (72% of total net position) from $53,768,632. This increase of $1,105,829 resulted from added capital assets less removed capital projects and depreciation expense. The Net Investment in Capital Assets is calculated by deducting the accumulated depreciation amount as well as associated debts from the total capital assets booked. The capital projects still in progress at the end of the fiscal year are included in the construction in progress (CIP) balance until the projects are completed. Listed are the projects included in CIP at the end of 2022/23:
Governmental Activities:
Pinon Road Extension Dennison Bicycle & Pedestrian Improvements Brentwood Pedestrian Facilities Valley Recreational Park Tehachapi Blvd Bike Lane Fence Northside Neighborhood Sidewalk Phase 3 Transit Center Sidewalk Connection
Business-type Activities: Airport Taxiway Relocation
Upon completion, the following projects will be categorized in a specific group of fixed assets and will start being depreciated. The capital projects completed during the fiscal year 2022/23 were Tree Planting and Stormwater Capture, Cherry Water Main, Dennison Water Main, Recycled Water Pump Station Upgrade, and the Curry Booster Rebuild and Nitrate Analyzer.
The City started capturing its capital assets in governmental funds beginning in fiscal year 2002/2003. In accordance with GASB 34, the City was not required to retroactively capture its capital assets because the City fell under Implementation Phase III rules due to the size of its revenue in fiscal year 1999/2000. Although the City’s investments in capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, as the capital assets themselves cannot be used to liquidate these liabilities.
In 2012, GASB 68 was issued to improve financial reporting by state and local governments for pensions and replaced GASB 27. The City implemented GASB 68 from fiscal year 2014/15 forward as required and the pension information is recorded in the Statement of Net Position. The Deferred Outflows/Inflows of Resources are composed of deferred pension contributions, proportionate share differences, and pension actuarial amounts. The Net Pension Liability balance as of June 30, 2023 was $6,173,547.
The restricted net position was decreased by $10,345 to $6,810,649, while the unrestricted net position was increased by $2,954,482 to $14,806,177. For the most part, the increase in restricted fund balance was attributable to special revenue funded capital projects not completed by year-end. The unrestricted fund balance increase was primarily due to increased General Fund revenues. Detailed explanations will be further illustrated in the General Fund section.
Governmental Activities
Governmental activities increased the City’s net position by $3,530,780 to $57,082,608, accounting for 75% of the city-wide total net position. The net position balance is composed of $39,182,703 of net investment in capital assets, $4,400,300 of restricted fund balance, and $13,499,605 unrestricted fund balance.
The governmental capital assets include not only general fixed assets costing over $10,000 but also infrastructure constructed after the year 2004 as required by GASB Statement 34. The balance in net investment in capital assets represents 69% of the total Net Position in the Governmental Activities section. The $274,427 decrease in net investment in capital assets was due to the disposal of machinery and equipment combined with the transfer of vehicles to the Enterprise funds. Furthermore, the restricted net position decreased by $10,345 from the prior year but the unrestricted net position increased by $3,815,552. The restricted fund balance reduction was essentially 15 due to the use of the special revenue funds for capital projects whereas the unrestricted fund increase was generated from receiving the first quarter of a new 1% district sales tax and a grant received for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) under the American Rescue Plan Act (ARPA) in the General Fund.
Readers may find how the Fund Balances in Governmental Funds are derived from the Net Position of Governmental Activities from the section Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position in the body of the financial report.
Business-type Activities
The City operates five business-type activities. These activities are captured in four major funds (Water, Sewer, Airport and Refuse) and one non-major fund (Transit). The net position in business-type activities was increased by $519,186 to $19,408,679, accounting for 25% of the city-wide total net position. The enterprise funds contributing to the increase of net position were Sewer for $228,975 and Airport for $392,089, whereas the decreases of net position were Water for $34,265, Transit for $54,050, and Refuse for $13,563.
The net position balance is composed of $15,691,758 of net investment in capital assets, $2,410,349 of restricted net position, and $1,306,572 of unrestricted net position. While net investment in capital assets increased by $1,380,256, restricted net position had no change and unrestricted net position decreased by $861,070.
The net investment in capital assets increase was due to the completion of the Cherry and Dennison Water Main projects whereas the decrease in unrestricted net position was primarily due to the use of fee fund reserves used for capital projects such as Airport Taxiway Relocation project and capital project debt service payments.
Statement of Activities
16 Financial Analysis of Individual Funds
The City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
Please note that unlike the government-wide financial statements discussed previously, the fund statements are reflected on a modified accrual basis.
Governmental Funds
As of June 30, 2023, the City’s governmental funds reported a combined ending fund balance of $18,857,722. This is a $3,055,420 or approximately 19% fund balance increase from the prior year. As shown in the table below, the increase is attributed to favorable operations in the General Fund and development fee receipts in various special revenue funds. The General Fund’s increase in fund balance is primarily due to a 21% increase in sales tax from the first quarter of a new 1% district tax measure and a $1,556,254 grant received from Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) under the American Rescue Plan Act (ARPA). The negative fund balances in capital project funds mean capital project grant revenues were not received yet. Fund balance changes in the governmental funds are summarized as follows:
Governmental Funds Balance Summary
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the fund balance in the General Fund was $18,456,903, which includes $159,701 of prepaid expenses, $1,267,446 due from other funds (interfund receivables), and $2,248,059 advances from other funds. The General Fund is the only discretionary fund out of the 16 operating governmental funds and any fund shortages in other funds at the end of fiscal year are mostly covered by the General Fund. The summary of interfund receivables and advances as of June 30, 2023 are as listed:
The two-million-dollar loan to the Facility Impact Fee Fund originated in 2014 with the construction of a new police facility. The advances made to the Streets and Roads Fund and capital projects funds are because of the timing of the receipt of grant revenues. Annual fund deficits in the Airport and certain Landscape Lighting Districts funds are covered by General Fund through operating transfers, not as loans, because those funds are not capable of 17 making debt payments in the foreseeable future. To date, the General Fund has subsidized $2,345,393 and $1,228,768 to the Airport Fund and Landscape Lighting Districts respectively.
In addition to advances and prepaid expenses in the General Fund, the GASB 54 committed fund balance is not spendable without Council’s authorization and can only be used for a declared emergency situation. The committed fund amount is calculated annually based on GASB 54 requirements and approved by the City Council. The committed fund balance for fiscal year 2022/23 was $1,346,099. The spendable fund balance after the deduction of outstanding advances, prepaid expenses, and committed funds may be used to pay for future capital projects for the City’s general operations.
Among five major governmental funds, three governmental funds had negative fund balances at the end of this fiscal year. These funds are the Facility Impact Fee Fund ($2,847,915), Roads and Pedestrian Safety Projects Funds ($222,382), and Street Projects Funds ($570,544). Other than the Facility Impact Fee Fund, the negative fund balances will be eventually covered by various capital project grants.
The deficit fund balances in the Roads and Pedestrian Safety Projects Funds and Street Projects Funds are timing related. Capital projects in these funds are all grant funded projects and grants are collected on a reimbursement basis. The negative fund balance in the Facility Fee Fund will be paid by future fee collections from developers.
As mentioned earlier, this deficit originated with the construction of the new police facility and the remodeling of the City Hall Annex which is currently occupied by the Development Services Department. The Facility Fee Fund deficit was covered by the General Fund ($2,000,000) and Sewer Connection Fee Fund ($847,915).
Certain special revenue funds, miscellaneous capital project funds, landscape lighting maintenance district (LLD) funds, and drainage benefit assessment district (DBAD) funds are included in Other Governmental Funds. The special revenue funds are various development fee funds with a specific purpose for the use of the funds. The combined fund balance of Other Governmental Funds was $1,437,964. The main sources of the positive fund balance in Other Governmental Funds were from certain LLD and DBAD funds.
Proprietary Funds
The balances in net position of the proprietary funds are summarized below:
The net position in the Water Fund at the end of fiscal year 2022/23 was $7,194,105, which was a $34,265 decrease from fiscal year 2021/22. This decrease in net position in a proprietary fund is similar to the net income in a private sector business. The decrease will be accumulated in the net position and the unrestricted portion of net position will fund future water related capital projects. Compared to the prior year, both Water Fund revenues and expenses increased by $198,098 and $233,292 respectively. The revenue increase was mostly from a water fee rate increase associated with changes in the Los Angeles area CPI in January 2022. The CPI used for the water rate increase in July 2022 was 7.5%. On the expenditure side, the most notable variances are from increases in operating and maintenance costs ($125,910) and an increase in personnel costs ($119,228).
As shown in the table above, the Sewer Fund recognized a $228,975 increase in net position from the prior year which resulted in a year-end net position of $10,200,117. Compared to the prior year, Sewer Fund revenues increased by $367,885 while expenses increased by $286,145. The revenue increase was mostly from a sewer 18 fee rate increase associated with changes in the Los Angeles area CPI in November 2021. The CPI used for the sewer rate increase in January 2023 was 6%. On the expenditure side, the most notable variances are from increases in operating and maintenance costs ($277,366) and an increase in personnel costs ($13,976).
The Airport Fund’s net position at the end of the fiscal year was $1,834,718, an increase of $392,089 from the prior year. The Airport Fund’s net position increase was entirely a result of receiving a $625,490 grant reimbursement from the FAA for phase one of the Airport Taxiway Relocation project. Without the grant reimbursement, the airport fund would have suffered a deficit and needed a transfer from the General Fund for support. Total operating transfers from the GF to the Airport Fund since FY 2000/01 has been $2,345,393. During fiscal year 2022/23, both Airport Fund’s total revenues and expenses increased by $490,467 and $25,454 respectively compared to the prior fiscal year. The actual revenue increase from operations without the FAA grant reimbursement and General Fund subsidy was $12,032 and this increase was primarily from increased fuel sales. On the expense side, the airport’s personnel costs were higher mainly due to a 6% COLA increase for all employees in fiscal year 2022/23.
The Refuse Fund recognized a $13,563 net loss during the fiscal year resulting in a $123,702 ending net position.
The City contracts for refuse services with Waste Management Company and receives 10% of total refuse and recycling service revenues from the contractor for administration, billing, and accounts collection services provided by the City. In July 2022, the refuse service fees were increased by 3.75%.
General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the year ended June 30, 2023 is presented as Required Supplementary Information following the Notes to the Financial Statements. The final budget amounts differ from those shown in the original 2022/23 five-year budget. This modification is a result of changes made by mid-year budget adjustments.
General Fund
The General Fund’s fiscal year end fund balance was $18,456,903, which includes a $3,508,305 positive net change in fund balance. In comparison to the final budget, this year’s operations resulted in a $1,310,487 favorable fund balance variance. Most of this positive budget variance was due to the first quarter receipts of a new 1% district sales tax being higher than projected, development services revenue coming in higher than expected due to increased development activity, and lower personnel costs due to vacant, unfilled positions.
Compared to the prior year, total revenues increased by $2,974,407 and expenditures increased by $786,715. The detailed budget to actual numbers comparison of the General Fund is included in the Required Supplementary Information section in the Financial Report. The main reasons for the increase in revenue are due to receiving $1,556,254 in COVID-19 related grants from the American Rescue Plan Act (ARPA), an extra $1,023,023 from the first quarter receipts of a new 1% district sales tax measure, and $332,349 in increased development revenues.
The biggest increases in General Fund expenditures were from building maintenance costs, plan check/engineering costs from increased development, and personnel costs. The personnel costs were higher mainly due to a 6% COLA increase for all employees in fiscal year 2022/23. 19 The General Fund major revenue variances compared to the prior year with key reasons are listed below:
The major expenditure variances compared to the prior year with key reasons are listed below:
Capital and Debt Administration
Capital Assets
The City of Tehachapi’s investment in capital assets for both governmental and business-type activities as of June 30, 2023 amounted to $57,246,348 (net of accumulated depreciation), which was a $622,971 increase from fiscal year 2021/22 as shown in the table below. Of the total, there were decreases of $342,562 from governmental activities and increases of $965,533 from business activities. The detail of changes in the capital asset balance can be found in the Notes Section 2-C.
The main contributor to the decrease in investment in capital assets for governmental activities was from the transfer of vehicles to the Enterprise funds and the disposal of outdated machinery and equipment. The construction in progress (CIP) balance had additions of $1,076,882 from the Pinon Road Extension, $143,413 from Dennison Bicycle and Pedestrian Improvements, $151,205 from Valley Recreational Park, and $50,431 from Brentwood Pedestrian Facilities offset by the Tree Planting and Stormwater Capture assets of $1,107,757 that were completed and transferred out of CIP and reclassed to the Improvements other than Buildings category. The full list of projects in CIP are shown in the Government-wide Financial Analysis section of this report.
The largest addition to capital assets in business activity was from the following projects completed and transferred out of CIP and reclassed to the Improvements other than Buildings category:
20 Capital Assets
In FY 2022/23, certain assets were deleted from the books as shown in Notes Section 2-C. The detailed information on deleted assets is presented in the table below.
Deleted Capital Assets
Long-Term Debt
The City of Tehachapi’s total long-term debt was increased by $2,819,792 compared to the prior year. As shown in the table below, the largest increase was from the City’s net pension liability.
The increase in net pension liability (Unfunded Accrued Liability UAL) was mainly due to significant investment losses suffered by CalPERS in FY 2021/22. The reader may find detailed long-term debt and lease information in Notes Section 2-F. Furthermore, the City employees’ detailed pension information is included in Notes Section 3- B.
21 State statutes limit the amount of general obligation debt a governmental entity may issue to fifteen percent of its total assessed valuation. The City has not exceeded this limit.
Next Year’s Budget and Economic Factors
In June of 2023, the Council adopted the 2023/24 through 2027/28 five-year budget with total appropriations of $39,725,416 in fiscal year 2023/24. The following factors were taken into consideration in compiling the next fiscal year budget:
The 2023/24 budgeted General Fund revenue is $15,501,722, which is $791,593 more than the actual revenue received in 2022/23. The variance is mainly due to a full year’s worth of receipts of the City’s new 1% district sales tax measure.
The 2023/24 General Fund expenditure budget amount of $13,450,012 is projected at $2,248,188 more than the actual expenditures in 2022/23. The large variance is primarily due to a 6% COLA, the addition of a maintenance worker position in Public Works, the filling of five full-time positions in the Police Department and one full-time position in the Development Services Department, and massive Kern County fire contract cost increases.
Compared to the actual amounts in FY 2022/23, the water sales revenue was budgeted at a 9.8% increase whereas the sewer service charges were budgeted at a 5.4% increase. Both were due to rate adjustments tied to annual consumer price indexes.
Approximately 30 equivalent dwelling units (EDU) were considered in new water and sewer connection fee revenues calculation.
Budgeted new positions are one full-time employee: a maintenance worker in the Public Works Department. Capital projects and equipment purchases included in this budget are:
o Police department vehicles and equipment: $175,000
o IT Access Control / system upgrades: $210,000
o Irrigation Controller Upgrade: $150,000
o Alley Project / Parking Lot Repairs / Fleet Shop Gate: $55,000 o New radio water meters: $30,000
o Water rights lease: $45,000
o Dennison Well preventative maintenance: $100,000
o Clarifier overhaul: $150,000
o Reclamation Area purchase: $400,000
o Headworks screw and bypass replacements: $150,000
o SCADA upgrade: $90,000
o Biosolids handling study: $75,000
o Airport Taxiway relocation project: $6,775,088
o Valley Blvd Resurfacing from Beech to Curry: $524,595 o Brentwood Pedestrian Facilities: $204,000
o Tehachapi Blvd Bike Lane Fence: $344,000
o Northside Neighborhood Sidewalks: $181,500
o Transit Center Sidewalk Connect: $260,000
o Valley Blvd Recreational Park: $1,910,558
o Dennison Bicycle & Pedestrian Improvements: $2,178,828 o Pinon Road Extension: $648,537
o Grind Overlay of E, F, and Pauley Streets: $576,000
After feeling the effects during the beginning of the COVID-19 outbreak, the local economy has bounced back with most key revenue sources reaching or exceeding pre-pandemic levels. The City’s General Fund revenues such as sales tax, transient occupancy tax, and passport processing have shown significant recovery from COVID-19 related decline as consumer spending and traveling have increased. However, inflation remains high as food and merchandise prices have increased rapidly. Fuel prices are also still high, although not at peak levels seen in the prior year.
22 According to the U.S. Bureau of Labor Statistics, the 12-month Consumer Price Index for All Urban Consumers (CPI-U) was up 2.8% in November 2022 compared to being up 6.0% in November 2021 (1). As of October 2023, the unemployment rate in the City of Tehachapi was 7.1%, which was 2.3% higher than the State of California unemployment rate of 4.8% (2). More data is included in the Economic Condition section in the Transmittal Letter of this financial report. As a result, a possible recession in the next few years is being predicted by many economists. Due to this increasing likelihood of a recession, the City’s five-year budget was built with conservative revenue estimates from a potential slowdown in economic growth.
The FY 23-24 budget cycle was unique in that the City continues to face rising costs of basic contract services and high inflation but was able to overcome these adverse conditions due to our voters, who, last November, approved a 1% local sales tax increase here in the city. Unlike last year’s budget, staff was able to produce a balanced General Fund (GF) budget for the next five fiscal years without utilizing reserves. The voters’ investment in our community has moved us out of a future deficit into a positive trajectory that will keep Tehachapi healthy, safe, and well-maintained for years to come. Although the General Fund has been given a significant boost in sales tax revenue, the City continues to budget conservatively as inflation remains high and a recession in the near future is possible. The City is able to provide for continuity of local fire, police, and 911 dispatch services as well as infrastructure maintenance all while strengthening our reserves after dealing with unfunded mandates imposed by the state.
Notable in the budget is significant capital investment into the City’s infrastructure as capital outlay makes up a larger portion of the overall expenditure budget than personnel and operating expenses. Leveraging grant funds to pursue capital projects that preserve our infrastructure and secure our quality of life is a key component of our budget strategy. Enterprise funds such as Water and Wastewater are utilizing reserves as they have significant capital outlay budgeted over the next five years. These utility funds, along with Refuse, are each facing projected budget deficits and rate studies for each have been budgeted to assess what changes may be necessary to strengthen their financial sustainability.
Requests for Information
This financial report is designed to provide a general overview of the City of Tehachapi’s finances for all those interested in them. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City’s Finance Department, at 115 South Robinson Street, Tehachapi, CA 93561.
Sources: (1) U.S. Bureau of Labor Statistics
(2) California Employment Development Department
23 BASIC FINANCIAL STATEMENTS
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 18,222,884 $ 4,027,101 $ 22,249,985 $ Receivables (Net of Allowance) 3,620,337 1,039,390 4,659,727 Internal Balances (434,733) 434,733 -
Restricted Cash and Investments 13,368 241,872 255,240
Prepaids 159,701 - 159,701
Lease Receivable - 497,211 497,211
Advances to Fiduciary Funds 248,059 - 248,059
Capital Assets, Not Being Depreciated 3,026,041 4,345,309 7,371,350 Capital Assets, Depreciated, Net 36,875,957 12,999,041 49,874,998 Total Assets 61,731,614 23,584,657 85,316,271
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 2,506,738 1,058,189 3,564,927
LIABILITIES
Current Liabilities:
Accounts Payable 1,485,380 587,720 2,073,100
Accrued Liabilities 234,048 90,433 324,481
Accrued Interest Payable 6,608 1,394 8,002
Deposits Payable 13,368 133,102 146,470
Noncurrent Liabilities:
Due within One Year 233,967 468,769 702,736
Due in More Than One Year 5,050,294 3,370,966 8,421,260 Total Liabilities 7,023,665 4,652,384 11,676,049
DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable - 497,211 497,211
Deferred Inflows Related to Pensions 132,079 84,572 216,651 Total Deferred Inflows of Resources 132,079 581,783 713,862
NET POSITION
Net Investment in Capital Assets 39,182,703 15,691,758 54,874,461 Restricted for:
Construction and Expansion of Facilities 2,410,349 2,410,349 - Highways and Streets 3,759,995 - 3,759,995
Community Development 60,464 - 60,464
Parks 579,841 - 579,841
Unrestricted 13,499,605 1,306,572 14,806,177
Total Net Position $ 57,082,608 $ 19,408,679 $ 76,491,287 City of Tehachapi
Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of this statement. 24 Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:
General Government $ 1,946,834 $ 988,322 $ 1,573,218 $ - Public Works 3,807,094 1,087,031 - 2,886,137
Public Safety 5,716,890 186,552 195,609 -
Community Development 3,630,463 90 633 -
Interest 32,802 - - -
Total Governmental Activities 15,134,083 2,261,995 1,769,460 2,886,137 Business-type Activities:
Water 2,972,953 2,772,796 - -
Sewer 2,620,908 2,680,650 - -
Airport 1,085,323 793,915 677,916 -
Refuse 1,741,817 1,723,216 - -
Transit 247,288 3,617 189,294 -
Total Business-type Activities 8,668,289 7,974,194 867,210 - Total Primary Government 23,802,372 $ $ 10,236,189 $ 2,636,670 $ 2,886,137 General Revenues:
Property Taxes
Sales and Use Taxes
Property Tax in Lieu
Transient Occupancy Tax
Licenses and Permits
Franchise Tax
Other Taxes
Miscellaneous Revenues
Investment Earnings
Gain on Disposal
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year (Restated)
Net Position - End of Year
Program Revenues
City of Tehachapi
Statement of Activities
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 25 Governmental Business-type
Activities Activities Total
$ - 614,706 $ $ 614,706
166,074 - 166,074
(5,334,729) - (5,334,729)
(3,629,740) - (3,629,740)
(32,802) - (32,802)
(8,216,491) - (8,216,491)
- (200,157) (200,157)
- 59,742 59,742
- 386,508 386,508
- (18,601) (18,601)
- (54,377) (54,377)
- 173,115 173,115
(8,216,491) 173,115 (8,043,376)
2,628,604 - 2,628,604
5,254,833 - 5,254,833
1,737,124 - 1,737,124
934,880 - 934,880
244,420 - 244,420
350,465 - 350,465
320,952 - 320,952
177,289 154,294 331,583
232,944 142,659 375,603
- 48,166 48,166
(952) 952 -
11,880,559 346,071 12,226,630
3,664,068 519,186 4,183,254
53,418,540 18,889,493 72,308,033
$ 57,082,608 $ 19,408,679 $ 76,491,287
Net (Expense) Revenue and Changes in Net Position
26 Capital Projects
Roads and
General Facility Traffic Pedestrian
Fund Impact Fee Mitigation Safety
ASSETS
Cash and Investments $ 13,731,589 $ 2,603,696 - $ $ 7,225 Restricted Cash and Investments 13,368 - - -
Receivables 2,001,192 - - 225,445
Due from Other Funds 1,267,446 - - -
Prepaids 159,701 - - -
Advances to Other Funds 2,000,000 - - -
Advances to Fiduciary Funds 248,059 - - -
Total Assets $ 19,421,355 $ 2,603,696 - $ $ 232,670
LIABILITIES
Accounts Payable $ 422,602 $ - $ - $ 50,247
Accrued Liabilities 218,568 - - -
Due to Other Funds - - - 179,360
Deposits Payable 13,368 - - -
Advances from Other Funds 2,847,915 - - -
Total Liabilities 654,538 2,847,915 - 229,607
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 309,914 - - 225,445
Total Deferred Inflows of Resources 309,914 - - 225,445
FUND BALANCES
Nonspendable 2,407,760 - - -
Restricted - 2,603,696 - -
Committed 1,346,099 - - -
Unassigned 14,703,044 (2,847,915) (222,382) -
Total Fund Balances 18,456,903 (2,847,915) 2,603,696 (222,382) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 19,421,355 $ $ 2,603,696 - $ $ 232,670 City of Tehachapi
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue
The accompanying notes are an integral part of this statement. 27 Capital Projects
Other Total
Street Governmental Governmental
Projects Funds Funds
$ 416,562 $ 1,463,812 $ 18,222,884
- - 13,368
1,314,674 79,026 3,620,337
- - 1,267,446
- - 159,701
- - 2,000,000
- - 248,059
$ 1,731,236 $ 1,542,838 $ 25,531,795
$ 923,763 $ 88,768 $ 1,485,380
- 15,480 234,048
674,278 626 854,264
- - 13,368
- - 2,847,915
1,598,041 104,874 5,434,975
703,739 - 1,239,098
703,739 - 1,239,098
- - 2,407,760
- 1,437,964 4,041,660
- - 1,346,099
(570,544) - 11,062,203
(570,544) 1,437,964 18,857,722
$ 1,731,236 $ 1,542,838 $ 25,531,795
28 THIS PAGE INTENTIONALLY LEFT BLANK
Fund Balances of Governmental Funds $ 18,857,722
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds:
Capital Assets 64,197,901
Accumulated Depreciation (24,295,903)
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported in the funds:
Leases Payable (719,295)
Net Pension Liability (4,290,589)
Compensated Absences (274,377)
Accrued Interest Payable (6,608)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds.
Deferred Outflows Related to Pensions 2,506,738
Deferred Inflows Related to Pensions (132,079)
Long-term assets are not available for current use. Amounts are deferred under the modified accrual basis of accounting. 1,239,098 Net Position of Governmental Activities $ 57,082,608
City of Tehachapi
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of this statement. 29 Capital Projects
Roads and
General Facility Traffic Pedestrian
Fund Impact Fee Mitigation Safety
REVENUES
Taxes $ 10,684,995 $ - $ - $ -
Licenses, Permits, and Fines 1,005,001 - - -
Intergovernmental 1,754,726 - - -
Charges for Services 944,248 128,832 112,446 -
Investment Earnings 133,415 - 60,494 -
Miscellaneous Revenues 187,744 - - -
Total Revenues 14,710,129 128,832 172,940 -
EXPENDITURES
Current:
General Government 1,832,617 - - -
Public Works 1,699,296 - - -
Public Safety 5,444,029 - - -
Community Development 1,670,810 - - -
Capital Outlay - - - 235,526
Debt Service:
Interest 16,630 4,859 - -
Principal 165,638 - - -
Total Expenditures 10,829,020 4,859 - 235,526
Excess (Deficiency) of Revenues
Over Expenditures 3,881,109 123,973 172,940 (235,526)
OTHER FINANCING SOURCES (USES)
Debt Issuance - - - -
Transfers In - - - 19,371
Transfers Out (372,804) - (92,847) -
Total Other Financing Sources (Uses) (372,804) - (92,847) 19,371 Net Change in Fund Balances 3,508,305 123,973 80,093 (216,155) Fund Balances, Beginning of Year 14,948,598 (2,971,888) 2,523,603 (6,227) Fund Balances, End of Year $ 18,456,903 $ (2,847,915) $ 2,603,696 $ (222,382) City of Tehachapi
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Special Revenue
The accompanying notes are an integral part of this statement. 30 Capital Projects
Other Total
Street Governmental Governmental
Projects Funds Funds
$ - $ 671,907 $ 11,356,902
- 98,643 1,103,644
1,215,905 1,071,959 4,042,590
- 25,186 1,210,712
- 39,035 232,944
- 4,296 192,040
1,215,905 1,911,026 18,138,832
- 42,619 1,875,236
- 1,313,840 3,013,136
- - 5,444,029
- 64,036 1,734,846
2,544,053 - 2,779,579
- 12,722 34,211
- 35,785 201,423
2,544,053 1,469,002 15,082,460
(1,328,148) 442,024 3,056,372
- - -
1,033,644 420,090 1,473,105
- (1,008,406) (1,474,057)
1,033,644 (588,316) (952)
(294,504) (146,292) 3,055,420
(276,040) 1,584,256 15,802,302
$ (570,544) $ 1,437,964 $ 18,857,722
31 THIS PAGE INTENTIONALLY LEFT BLANK
Net Changes in Fund Balances - Total Governmental Funds $ 3,055,420 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.
Capital Outlay 2,051,440
Depreciation Expense (2,369,415)
Loss on Disposal (24,587)
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Debt Issuance -
Payments on Leases 201,423
Some revenues reported in the Statement of Activities are not considered available to finance current expenditures and therefore are not reported as revenues in the governmental funds. 660,272
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in deferred inflows and outflows related to the net pension liability.
Deferred Outflows Related to Pensions 1,053,027
Deferred Inflows Related to Pensions 1,350,169
The amounts below included in the Statement of Activites do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change):
Compensated Absences 404
Net Pension Liability (2,315,494)
Accrued Interest Payable 1,409
Change in Net Position of Governmental Activities $ 3,664,068 City of Tehachapi
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 32 Water Sewer Airport
ASSETS
Current Assets:
Cash and Investments $ 3,832,372 - $ $ 89
Accounts Receivable (Net of Allowance) 348,703 304,556 46,655 Prepaid Expenses - - -
Restricted Cash and Investments 241,872 - -
Total Current Assets 590,575 4,136,928 46,744
Noncurrent Assets:
Lease Receivable - - 497,211
Advances to Other Funds - 847,915 -
Capital Assets, Not Being Depreciated 2,525,936 613,614 1,205,759 Capital Assets, Net of Accumulated Depreciation 5,369,279 6,448,263 1,181,499 Total Capital Assets (Net of Accumulated
Depreciation) 7,895,215 7,061,877 2,387,258
Total Noncurrent Assets 7,895,215 7,909,792 2,884,469
Total Assets 8,485,790 12,046,720 2,931,213
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 483,086 460,082 115,021
LIABILITIES
Current Liabilities:
Accounts Payable 88,686 89,127 145,468
Accrued Liabilities 41,030 30,117 11,519
Accrued Interest Payable 662 732 -
Due to Other Funds 51,754 - 309,002
Customer Deposits Payable 133,102 - -
Compensated Absences - Current 24,270 17,861 5,897
Leases Payable - Current 34,559 32,949 -
Loans and Bonds Payable - Current 238,224 111,198 -
Total Current Liabilities 612,287 281,984 471,886
Noncurrent Liabilities:
Compensated Absences 111,851 86,004 28,557
Leases Payable 48,537 51,558 -
Net Pension Liability 859,611 818,678 204,669
Loans and Bonds Payable 103,876 1,031,691 -
Total Noncurrent Liabilities 1,123,875 1,987,931 233,226 Total Liabilities 1,736,162 2,269,915 705,112
DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable - - 497,211
Pension Related Items 38,609 36,770 9,193
Total Deferred Inflows of Resources 38,609 36,770 506,404
NET POSITION
Net Investment in Capital Assets 7,470,019 5,834,481 2,387,258 Restricted for Construction and Expansion of Facilities 95,106 2,315,243 - Unrestricted (371,020) 2,050,393 (552,540)
Total Net Position $ 7,194,105 $ 10,200,117 $ 1,834,718 City of Tehachapi
Statement of Net Position
Proprietary Funds
June 30, 2023
The accompanying notes are an integral part of this statement. 33 Non-Major
Refuse Transit Fund Total
$ 194,640 $ - $ 4,027,101
206,576 132,900 1,039,390
- - -
- - 241,872
401,216 132,900 5,308,363
- - 497,211
- - 847,915
- - 4,345,309
- - 12,999,041
- - 17,344,350
- - 18,689,476
401,216 132,900 23,997,839
- - 1,058,189
251,666 12,773 587,720
5,813 1,954 90,433
- - 1,394
- 52,426 413,182
- - 133,102
2,938 873 51,839
- - 67,508
- - 349,422
260,417 68,026 1,694,600
17,097 8,837 252,346
- - 100,095
- - 1,882,958
- - 1,135,567
17,097 8,837 3,370,966
277,514 76,863 5,065,566
497,211
- - 84,572
- - 581,783
- - 15,691,758
- - 2,410,349
123,702 56,037 1,306,572
$ 123,702 $ 56,037 $ 19,408,679
34 Water Sewer Airport
OPERATING REVENUES
Charges for Services $ 2,772,796 $ 793,915 2,680,650 $
Miscellaneous 120,784 32,616 244
Total Operating Revenues 2,893,580 2,713,266 794,159
OPERATING EXPENSES
Personnel Services 1,369,818 974,593 342,354
Maintenance and Operations 1,364,641 1,270,449 598,339
Depreciation 228,575 328,420 144,630
Total Operating Expenses 2,963,034 2,573,462 1,085,323
Operating Income (Loss) (69,454) 139,804 (291,164)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - 677,916
Investment Earnings 18,401 115,158 4,385
Gain/(Loss) on Disposal of Capital Assets 26,707 21,459 - Interest Expense (9,919) (47,446) -
Total Nonoperating Revenues (Expenses) 35,189 89,171 682,301 Income (Loss) Before Capital Contributions
and Operating Transfers (34,265) 228,975 391,137
Transfers In - - 952
Transfers Out - - -
Change in Net Position (34,265) 228,975 392,089
Net Position - Beginning of Year 7,228,370 9,971,142 1,442,629 Net Position - End of Year $ 7,194,105 $ 10,200,117 $ 1,834,718 City of Tehachapi
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 35 Non-Major
Refuse Transit Fund Total
$ 1,723,216 $ 3,617 $ 7,974,194
650 - 154,294
1,723,866 3,617 8,128,488
184,378 65,165 2,936,308
1,557,439 182,123 4,972,991
- - 701,625
1,741,817 247,288 8,610,924
(17,951) (243,671) (482,436)
- 189,294 867,210
4,388 327 142,659
- - 48,166
- - (57,365)
4,388 189,621 1,000,670
(13,563) (54,050) 518,234
- - 952
- - -
(13,563) (54,050) 519,186
137,265 110,087 18,889,493
$ 123,702 $ 56,037 $ 19,408,679
36 Water Sewer Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers $ 2,917,212 $ 2,673,839 $ 872,749 Payments to Employees for Services (1,394,376) (1,004,777) (345,731) Payments to Suppliers for Goods and Services (1,495,256) (1,385,131) (998,407) Net Cash Provided (Used) by Operating Activities 283,931 27,580 (471,389)
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash Received from Other Funds 51,754 123,973 309,954
Cash Paid to Other Funds - - -
Intergovernmental Revenue - - 677,916
Net Cash Provided (Used) by Noncapital and Related Financing Activities 123,973 51,754 987,870
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (1,131,983) - (577,144) Interest Paid (10,117) (47,515) -
Capital Grants - - -
Proceeds from Sale of Capital Assets 26,707 63,428 -
Proceeds from Debt Issuance - - -
Payments on Lease Obligations (32,783) (35,563) -
Payments on Long-term Debt (238,000) (108,377) -
Net Cash Provided (Used) by Capital and Related Financing Activities (128,027) (1,386,176) (577,144)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 18,401 115,158 4,385
Net Cash Provided (Used) by Investing Activities 115,158 18,401 4,385 Net Increase (Decrease) in Cash and Cash Equivalents (1,288,441) 395,035 (56,278) Cash and Cash Equivalents, Beginning of the Year 1,530,313 3,437,337 56,367 Cash and Cash Equivalents, End of the Year $ 241,872 $ 3,832,372 $ 89 Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) $ (69,454) $ 139,804 $ (291,164) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 228,575 328,420 144,630
Changes in Operating Assets and Liabilities:
Decrease (Increase) in Accounts Receivable 18,342 (39,427) 78,590 Decrease (Increase) in Prepaid Expenses - 593 10,515
Decrease (Increase) in Deferred Outflows - Pensions (232,409) (221,342) (55,336) Increase (Decrease) in Accounts Payable (134,918) (117,564) (411,938) Increase (Decrease) in Accrued Liabilities 4,303 2,289 1,355 Increase (Decrease) in Compensated Absences 33,387 25,001 10,420 Increase (Decrease) in Net Pension Liability 476,713 454,013 113,503 Increase (Decrease) in Deferred Inflows - Pensions (302,249) (287,856) (71,964) Increase (Decrease) in Deposits Payable 5,290 - -
TOTAL CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 283,931 27,580 $ (471,389) $ City of Tehachapi
Proprietary Funds
Year Ended June 30, 2023
Statement of Cash Flows
The accompanying notes are an integral part of this statement. 37 Non-Major
Refuse Transit Fund Total
$ 3,617 1,719,886 $ 8,187,303 $
(62,876) (178,787) (2,986,547)
(194,852) (1,536,267) (5,609,913)
(254,111) 4,832 (409,157)
52,426 - 538,107
- - -
150,358 - 828,274
202,784 - 1,366,381
- - (1,709,127)
- - (57,632)
- - -
- - 90,135
- - -
- - (68,346)
- - (346,377)
- - (2,091,347)
327 4,388 142,659
327 4,388 142,659
(51,000) 9,220 (991,464)
51,000 185,420 5,260,437
$ - 194,640 $ 4,268,973 $
$ (243,671) (17,951) $ (482,436) $
- - 701,625
- (3,980) 53,525
- - 11,108
- (509,087) -
21,133 (12,729) (656,016)
39 69 8,055
5,591 2,220 76,619
- 1,044,229 -
- (662,069) -
- - 5,290
$ 4,832 $ (254,111) $ (409,157)
38 Successor Agency
Custodial Private-purpose
Funds Trust Fund
ASSETS
Cash and Investments $ 87,147 $ 794,234
Cash with Fiscal Agent - 404,153
Other Assets 355,557 -
Total Assets 442,704 1,198,387
LIABILITIES
Accounts Payable 221 -
Advances from City of Tehachapi 248,059 -
Interest Payable - 24,390
Long-term Debt - 8,735,000
Total Liabilities 248,280 8,759,390
NET POSITION
Net Position Held for the Benefit of Others 194,424 -
Net Position (Deficit) Held in Trust for Successor Agency - (7,561,003) Total Net Position $ 194,424 $ (7,561,003)
City of Tehachapi
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
The accompanying notes are an integral part of this statement. 39 Successor Agency
Custodial Private-purpose
Funds Trust Fund
ADDITIONS
Contributions:
Taxes and Assessments - $ 1,464,062 $
Investment Earnings
Interest Income 2,005 25,070
Total Additions 2,005 1,489,132
DEDUCTIONS
Administrative Costs 6,416 260,042
Interest on Bonds - 299,436
Total Deductions 6,416 559,478
Change in Net Position (4,411) 929,654
Net Position - Beginning of Year 198,835 (8,490,657)
Net Position - End of Year 194,424 $ (7,561,003) $
City of Tehachapi
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2023
The accompanying notes are an integral part of this statement. 40 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity
The City of Tehachapi was incorporated August 13, 1909 under the general laws of the State of California.
The City operates under a Council/City Manager form of government and provides the following services:
public safety (police and fire); community services; public works; general administrative services; and capital improvements.
As required by accounting principles generally accepted in the United States of America, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government.
The following is a brief overview of the component units included in the accompanying financial statements of the City.
Tehachapi City Financing Corporation (TCFC) - The Tehachapi City Financing Corporation was formed on September 26, 1990, as a Nonprofit Public Benefit Corporation to render financial assistance to the City by issuing debt instruments. The members of the City Council serve in the capacity of the Board of Directors for the TCFC. The City has operational responsibility for the TCFC and has a financial benefit/burden relationship. The TCFC is included as a blended component of the City.
The TCFC does not issue separate financial statements.
B) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The fiduciary funds also use the accrual basis of accounting. 41 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Taxes, intergovernmental revenues, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and are therefore recognized as revenues of the current fiscal period.
Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.
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 Facility Impact Fee Special Revenue Fund is used to account for the restricted funds received to construct City facilities.
The Traffic Mitigation Special Revenue Fund is used to account for development impact fees restricted for traffic mitigation.
The Roads and Pedestrian Safety Capital Projects Fund is used to account for the financial resources and expenditures necessary for various road and pedestrian safety projects.
The Street Projects Capital Projects Fund is used to account for the financial resources and expenditures necessary for various street projects.
The City reports the following major proprietary funds:
The Water Utility, Sewer Utility, Airport and Refuse Funds are used to account for those 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.
Additionally, the City reports the following fund types:
The Custodial Funds are used to account for funds that are custodial in nature and use the economic resources measurement focus. The City accounts for transactions of its special assessment districts and community facilities districts as custodial funds.
The Successor Agency Private-purpose Trust Fund is issued to account for the dissolution of the former Tehachapi Redevelopment Agency.
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes and other charges between the City’s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 42 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
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 and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
C) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:
Statement No. 101, "Compensated Absences." The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.
D) Assets, Liabilities, and Net Position or Equity
Deposits and Investments
For purposes of the Statement of Cash Flows, the City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
The City follows the practice of pooling cash and investments of all funds except for funds held in separate trust agreements. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on the ending cash balances. Interest income from cash and investments of funds excluded from pooled cash is credited directly to the related fund. Investments are stated at fair value (the value at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale).
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of the interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of the interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”
43 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of allowance for uncollectibles.
Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. The County bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables. The County is permitted by State Law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year. The City receives a share of this basic levy.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed, rather than when purchased.
Restricted Assets
Amounts shown as restricted assets have been restricted by either bond indenture, by law, or contractual obligations to be used for specified purposes, such as servicing bonded debt and construction of capital assets. Included in cash and investments are restricted cash assets of $404,153 held by the various bond trustees and fiscal agents, $13,368 held for capital improvements and customer deposits, and $241,872 held for capital improvements and customer deposits in the Water Utility Fund.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received prior to the implementation of GASB 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets of the City are depreciated using the straight-line method over the following estimated useful lives:
Buildings 15 - 50 years
Machinery and Equipment 5 - 20 years
Structures and Other Improvements 20 - 40 years
Lease obligations of the Proprietary Funds are accounted for in the year of inception as a liability of the fund.
The related asset is recorded as an asset of the fund.
44 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
Employees over the age of 55 who retire from the City are paid out 50% of their accrued sick leave. All vacation pay and 50% of available sick hours for employees’ over age 55 are accrued when incurred in the government-wide and proprietary funds financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations.
Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net investment in the 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 regulation, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of net position which is not restricted to use.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City reports deferred outflows related to pensions.
In addition to liabilities, the statement of financial position 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 assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has certain items, which arise only under the modified accrual basis of accounting, which qualify for reporting in this category. Accordingly, unavailable revenue is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the City reports deferred inflows related to pensions. 45 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.
Fund Balances
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance).
In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts constrained for a specific purpose by City Council resolution. It would require the same action by City Council to remove the constraint. The City’s committed fund balance includes:
General Fund Emergency Contingency - The City’s General Fund balance committed for emergency contingencies has been set by resolution and is for specific uses listed as the declaration of a state or federal state of emergency or a local emergency.
Assigned Fund Balance - Amounts that are constrained by the City Council’s intent to use specified financial resources for specific purposes, but are neither restricted nor committed. The City’s fund balance policy delegates the authority to assign amounts to be used for specific purposes to the Finance Director for the purpose of reporting these amounts in the annual financial statements.
Unassigned Fund Balance - This classification includes the residual balances of the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report deficit balances resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
46 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Leases
Lessee: The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements and the proprietary funds. The City recognizes lease liabilities with an initial, individual value of $50,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor: The City is a lessor for a noncancellable lease of certain property for communications facilities.
The City recognizes a lease receivable and a deferred inflow of resources in the Airport enterprise fund and the government-wide financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 47 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The lease of the property for communications facilities is for 25 years and the City will receive annual payments ranging from approximately $30,000 to $55,000. The City recognized approximately $29,000 in lease revenue, including interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease payments was $497,211. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2023, the balance of the deferred inflow of resources was $497,211.
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 of Tehachapi’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 at fair value. 2) DETAILED NOTES ON ALL FUNDS
A) Cash and Investments
The City’s cash and investments consisted of the following at June 30, 2023:
The City’s deposits and investments are reflected in the basic financial statements as follows:
Deposits
Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s deposit policy requires deposits to be covered by the federal depository insurance and collateral having a market value of 110% of the uninsured deposit. 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 provision 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 amount 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.
Demand Deposits $ 1,137,899
Petty Cash 1,868
Investments 22,650,992
Total Cash and Investments 23,790,759 $
Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and Investments 18,222,884 $ 4,027,101 $ 881,381 $ 23,131,366 $ Restricted Cash and Investments 13,368 241,872 404,153 659,393 Total Cash and Investments 18,236,252 $ 4,268,973 $ 1,285,534 $ 23,790,759 $ 48 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
As of June 30, 2023, the City’s deposits (bank balances) were insured by the Federal Depository Insurance Corporation or collateralized as required under California Law.
Investments
As of June 30, 2023, the City had the following investments:
Authorized Investments
The investments listed above are managed by the City’s Finance Director and fiscal agents (bond trustees acting in accordance with bond covenants). Investments managed by the City’s Finance Director are invested in accordance with the City’s investment policy. Investments managed by bond trustees are invested in accordance with provisions of the respective bond agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The City’s Finance Director has direct oversight over the City’s pooled investment fund which covers cash and investments of the City’s governmental funds, proprietary funds, and custodial funds which are invested in accordance with the City’s investment policy. The investment policy generally complies with California Government Code Section 53601 and its primary detail is as follows:
Maximum Maximum
Authorized Maximum Percentage Investment Minimum
Investment Type Maturity of Portfolio In One Issuer Ratings
U.S. Agencies 5 years 100% 100% None
U.S. Treasury Bills, Notes and Bonds 5 years 100% 100% None Local Agency Investment Fund (LAIF) N/A None None None
Guaranteed Investment Contract N/A None None AA
Certificates of Deposit (CDs) 5 years 30% 100% A
Money Market Mutual Funds N/A 15% None None
Trust Indenture N/A None None None
Investments with fiscal agents represent investments held by the bond trustee. The City and its investment advisor select the investments under the terms of the applicable trust agreement, directs the bond trustee to acquire the investments, and the bond trustee then holds the investments on behalf of the City and/or its component units. Proceeds of bonds administered by bond trustees are also generally covered under the City Treasurer’s investment policy; however, specific provisions of each issuance are usually used in managing such investments.
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Fair Value
Local Agency Investment Fund 350,417 $ - $ - $ 350,417 $ U.S. Treasury Notes 496,035 239,970 - 736,005
U.S. Agencies 1,463,490 - 1,675,343 3,138,833
Certificates of Deposit 495,293 1,680,004 2,622,193 4,797,490 CAMP 11,410,326 - - 11,410,326
CSJVRMA Investment Pool 2,217,921 - - 2,217,921
Total $ 16,433,482 $ 1,919,974 $ 4,297,536 $ 22,650,992 Remaining Maturity (in Months)
49 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
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 and its component units’ investments to market rate fluctuations is provided in the table above that shows the distribution by maturity. The City’s investment policy generally complies with the State Government Code with respect to allowable investment instruments as a means of managing its fair value losses arising from changing interest rates. Guaranteed investment contracts are investments held by fiscal agents (bond trustees) and are restricted for construction projects and debt service.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations 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 Standard and Poor’s rating as of year-end for each investment type.
Concentration of Credit Risk
Concentration of credit risk is the increased risk of loss if the City has a significant amount of investments with a single issuer. In accordance with the Investment Policy of the City, none of the investments categories listed exceeded the maximum allowable percentage of its portfolio. The City’s investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments include Federal Farm Credit Bank at 5.3% and Federal Home Loan Bank at 6.4%.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Custodial credit risk for LAIF is not determinable.
Total Minimum Not Required
Investment Type Investments Legal Rating AAA to be Rated Unrated Local Agency Investment Fund 350,417 $ N/A $ - $ 350,417 - $ U.S. Treasury Notes 736,005 N/A 736,005 - -
U.S. Agencies 3,138,833 N/A 3,138,833 - -
Certificates of Deposit 4,797,490 N/A - 4,797,490 -
CAMP 11,410,326 N/A - 11,410,326 -
CSJVRMA Investment Pool 2,217,921 N/A - 2,217,921 -
Total $ 22,650,992 $ 3,874,838 - $ $ 18,776,154
Rating as of Year End
50 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
Fair Value
The City 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. 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 City has the following recurring fair value measurements as of June 30, 2023:
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.
Investment in CSJVRMA Investment Pool
The City is a voluntary participant in the Central San Joaquin Valley Risk Management Authority Investment Pool (CSJVRMA) that is regulated by California State Code section CGC 53601. The fair value of the City’s investment is based on the City’s pro-rata share of the fair value of the entire portfolio. The balance available for withdrawal is based on the records maintained by CSJVRMA, which is recorded on an amortized cost basis.
California Asset Management Program
The City invests in this investment trust, which is similar to a money market mutual fund. The fund invests primarily in certificates of deposit, commercial paper, and U.S. Government and Agency obligations. The City is a voluntary participant in the investment pool.
The CAMP Cash Reserve Portfolio (the Pool) is exempt from registration with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, but operates in a manner consistent with SEC Rule 2a-7, "Money Market Funds," of that Act. Accordingly, the Pool meets the definition of a "2a7- Iike pool" set forth in GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Investment Pools."
Investment Type Total Level 1 Level 2 Level 3
U.S. Treasury Notes $ 736,005 $ 736,005 $ - $ -
U.S. Agencies 3,138,833 3,138,833 - -
Certificates of Deposit 4,797,490 4,797,490 - -
Total $ 8,672,328 $ 736,005 $ 7,936,323 $ -
Fair Value Hierarchy
51 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
While the Pool itself is exempt from SEC registration, the Pool's investment advisor and administrator, PFM Asset Management, LLC, is registered with the SEC as an investment advisor under the Investment Advisors Act of 1940. PFM Asset Management, LLC has also filed a notice with the California Department of Corporations, as well as various other states, as an investment advisor under state securities laws.
In addition, the Pool also meets the definition of "Municipal Fund Security" outlined by Municipal Securities Rulemaking Board (MSRB) Rule 0-12, therefore contracts with prospective investors relating to shares of the Pool are conducted through PFM Asset Management's wholly-owned subsidiary, PFMAM, Inc., a broker-dealer which is registered with the SEC and MSRB, and is a member of the National Association of Securities Dealers (NASD). The Pool also files an income tax return annually with the Internal Revenue Service, though the net income of the Pool is generally exempt from federal income tax.
B) Receivables
Receivables as of year-end for the City’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Roads and Street Other
General Pedestrian Projects Governmental
Governmental Activities Fund Safety Fund Fund Funds Total Taxes $ 1,841,429 $ - $ 79,026 - $ $ 1,920,455
Grants 225,445 - 1,314,674 1,540,119 -
Interest 53,509 - - 53,509 -
Others 106,254 - - 106,254 -
Total $ 2,001,192 $ 225,445 $ 1,314,674 $ 79,026 $ 3,620,337 Nonmajor
Water Sewer Airport Refuse Transit
Business-type Activities Fund Fund Fund Fund Fund Total Service Fees 330,259 $ 292,256 $ - $ 206,576 $ - $ 829,091 $ Grants and Other 18,444 12,300 46,655 - 132,900 210,299 Total 348,703 $ 304,556 $ 46,655 $ 206,576 $ 132,900 $ 1,039,390 $ 52 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
C) Capital Assets Detail
The following represents the Capital Asset activity for Governmental Activities, for the 2022-23 fiscal year:
The above additions to capital assets and depreciation include $24,379 transferred from the enterprise funds. Depreciation expense of $2,369,415 was charged to the following functions/programs in the Statement of Activities of the primary government:
Beginning Ending
Governmental Activities: Balance Additions Deletions Balance Capital Assets, Not Depreciated:
Land $ 1,382,386 $ - $ 1,382,386 - $
Construction in Progress 1,257,796 1,493,616 (1,107,757) 1,643,655 Total Capital Assets, Not Depreciated 2,640,182 1,493,616 (1,107,757) 3,026,041 Capital Assets Being Depreciated:
Buildings and Improvements 8,990,343 - 8,990,343 -
Machinery and Equipment 3,530,145 570,703 (412,453) 3,688,395 Improvements other than Buildings 519,440 - 519,440 -
Infrastructure 46,323,083 1,119,257 (37,732) 47,404,608 Parks 277,862 - 277,862 -
Right-to-use Leased Infrastructure 162,756 - 162,756 -
Right-to-use Leased Vehicles 128,456 - 128,456 -
Total Capital Assets, Depreciated 59,932,085 1,689,960 (450,185) 61,171,860 Less Accumulated Depreciation:
Buildings and Improvements (4,014,031) (272,776) (4,286,807) - Machinery and Equipment (2,643,988) (286,836) 412,453 (2,518,371) Improvements other than Buildings (73,226) (28,078) (101,304) - Infrastructure (15,438,875) (1,759,120) 13,145 (17,184,850) Parks (97,243) (6,948) (104,191) -
Right-to-use Leased Infrastructure (14,153) (14,153) (28,306) - Right-to-use Leased Vehicles (46,191) (25,883) (72,074) - Total Accumulated Depreciation (22,327,707) (2,393,794) 425,598 (24,295,903) Net Capital Assets, Depreciated 37,604,378 (703,834) (24,587) 36,875,957 Governmental Activities Capital Assets $ 40,244,560 $ 789,782 $ (1,132,344) $ 39,901,998 Governmental Activities:
General Government 47,388 $
Public Works 63,974
Public Safety 326,980
Community Development 1,931,073
Total 2,369,415 $
53 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
The following represents the Capital Asset activity for Business-type Activities, for the 2022-23 fiscal year:
The above additions to capital assets and depreciation include $79,169 transferred from governmental activities. Depreciation expense of $701,625 was allocated to the enterprise funds as follows:
D) Interfund Receivables, Payables and Transfers
The composition of amounts due to/from other funds at June 30, 2023 is as follows:
Beginning Ending
Business-type Activities: Balance Additions Deletions Balance Capital Assets, Not Depreciated
Land $ 783,108 $ - $ - 783,108 $
Water Rights 2,457,774 - - 2,457,774
Construction in Progress 1,059,373 1,393,105 (1,348,051) 1,104,427 Total Capital Assets, Not Depreciated 4,300,255 1,393,105 (1,348,051) 4,345,309 Capital Assets Being Depreciated:
Buildings and Improvements 16,620,918 316,023 (9,504) 16,927,437 Machinery and Equipment 1,536,397 79,169 (152,776) 1,462,790 Improvements other than Buildings 12,833,710 1,348,050 (5,452) 14,176,308 Right-to-use Leased Vehicles 165,308 - - 165,308
Total Capital Assets, Depreciated 31,156,333 1,743,242 (167,732) 32,731,843 Less Accumulated Depreciation:
Buildings and Improvements (10,755,943) (242,401) 9,504 (10,988,840) Machinery and Equipment (1,135,703) (143,986) 110,807 (1,168,882) Improvements other than Buildings (7,121,115) (349,705) 5,452 (7,465,368) Right-to-use Leased Vehicles (65,010) (44,702) - (109,712) Total Accumulated Depreciation (19,077,771) (780,794) 125,763 (19,732,802) Net Capital Assets, Depreciated 12,078,562 962,448 (41,969) 12,999,041 Business-type Activities Capital Assets $ 16,378,817 $ 2,355,553 $ (1,390,020) $ 17,344,350 Business-type Activities:
Water 228,575 $
Sewer 328,420
Airport 144,630
Total 701,625 $
Receivable Payable
Fund Fund
General Fund 1,267,446 $ - $
Roads and Pedestrian Safety Fund 179,360 -
Street Projects Fund 674,278 -
Other Governmental Funds ‐ 626
Water Fund - 51,754
Airport Fund 309,002 -
Non-major Transit Fund ‐ 52,426
Total 1,267,446 $ 1,267,446 $
54 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
The General Fund has loaned monies to the other funds listed above to cover operating cash deficits.
These amounts are expected to be paid back in the following fiscal year.
Advances to/from consist of the following at June 30, 2023:
The General Fund and Sewer Fund have advanced $2,000,000 and $847,915, respectively, to the Facility Impact Fee fund to construct the City’s new police facility. These advances are expected to be repaid over the span of many years as the City collects future facility impact fees.
The Advances to Fiduciary Funds of $248,059 in the General Fund represents amounts due from Custodial Funds, resulting from deficits in those funds. It is the opinion of management that these advances will be not be repaid within the next fiscal year and, accordingly, are reported as long-term advances.
Interfund transfers for the year ended June 30, 2023 are as follows:
General Fund transfers include approximately $372,000 to non-major governmental funds to cover operating deficits.
Other notable transfers include $940,797 being transferred from non-major governmental funds to the Streets Projects Fund to fund various projects, and $92,847 of Traffic Mitigation Program fees being transferred to the Street Projects Fund for the Pinon Road Extension project.
E) Other Assets
Other Assets reported in Custodial Funds at June 30, 2023 consist of $355,557 in foreclosure receivables.
The City has provided infrastructure improvements to various property owners in exchange for special taxes on those properties. Non-payment of these taxes has occurred on selected properties and the City has taken steps toward foreclosure. Funds have been expended during the foreclosure process that are expected to be received at completion of the foreclosure action. The date on which the City will receive reimbursement is currently uncertain.
Receivable Payable
Fund Fund
General Fund 2,000,000 $ - $
Sewer Fund 847,915 -
Facility Impact Fee Fund 2,847,915 -
Total $ 2,847,915 $ 2,847,915
Roads and Street Other Airport
Pedestrian Projects Governmental Enterprise
Transfers Out Fund Fund Funds Fund Total
General Fund $ - $ 371,852 - $ $ 952 $ 372,804
Traffic Mitigation 92,847 - - 92,847 -
Non-major Governmental Funds 19,371 940,797 48,238 1,008,406 - Total $ 19,371 $ 1,033,644 $ 420,090 $ 1,474,057 952 $
Transfers In
55 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
F) Long-term Debt
Long-term liability activity for the year ended June 30, 2023, was as follows:
The General Fund is typically responsible for the compensated absences and net pension liability.
Leases Payable
The City, at various occasions, enters into lease agreements that qualify as lease liabilities for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The amount of lease assets reported in governmental activities, net of accumulated amortization, is $190,832, and the amount reported in business-type activities is $55,596. The following represents the future lease payments to be made:
Beginning Ending Due Within
Governmental Activities: Balance Additions Deletions Balance One Year Loans from direct borrowings:
Leases 920,718 $ - $ 201,423 $ 719,295 $ 158,465 $
Net Pension Liability 1,975,095 2,315,494 - 4,290,589 - Compensated Absences 274,781 - 404 274,377 75,502
Total Governmental Activities $ 2,315,494 3,170,594 $ 201,827 $ 5,284,261 $ 233,967 $ Business-type Activities:
1998 Sewer and Water COP 177,100 $ - $ 7,800 $ 169,300 $ 8,100 $ Loans from direct borrowings:
Water Resources Control Board Loan 1,188,266 - 105,577 1,082,689 108,322 MPUD Note Payable 375,000 - 187,500 187,500 187,500
TVHD Note Payable 91,000 - 45,500 45,500 45,500
Leases 235,949 - 68,346 167,603 67,508
Total direct 1,890,215 - 406,923 1,483,292 408,830
Net Pension Liability 838,729 1,044,229 - 1,882,958 -
Compensated Absences 227,566 76,619 - 304,185 51,839
Total Business-type Activities $ 1,120,848 3,133,610 $ 414,723 $ 3,839,735 $ 468,769 $ Fiscal Year Ending Governmental Business-type
June 30, Activities Activities Total
2024 $ 181,864 $ 87,073 $ 268,937
2025 175,746 42,175 217,921
2026 79,252 9,924 89,176
2027 68,159 9,919 78,078
2028 68,138 9,915 78,053
2029 68,117 9,911 78,028
2030 68,094 9,906 78,000
2031 68,071 9,901 77,972
2032 68,048 9,896 77,944
Totals $ 845,489 $ 198,620 $ 1,044,109
Less: Interest (126,194) (31,017) (157,211)
Present Value $ 719,295 $ 167,603 $ 886,898
56 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
1998 Sewer & Water COPs
In July 1998, the City obtained loans from the USDA Rural Development totaling $289,900. The Sewer Fund received $103,000 and Water Fund received $186,900. The loans were made by purchase of Certificates of Participation (COP), which were issued by the Tehachapi City Financing Corp. (Financing Corp.) with an interest rate of 4.5%, to finance the building of a new sewer line to connect to the recently annexed Ashe tract.
The loan is a direct borrowing from the USDA. The COPs are secured by installments payments due from the City. The annual debt service requirements to maturity for the 1998 Sewer and Water COPs are as follows:
Water Resources Control Board Loan
In September 2011, the City received a loan from the California State Water Resources Control Board for up to $2,121,030 to be used for the Wastewater Treatment Plant Expansion Project. The loan matures over 20 years with an interest rate of 2.6%.
The debt service payments are payable solely from net revenues of the Sewer Enterprise Fund. The loan is a direct borrowing from the State Water Resources Control Board. The loan includes provisions that, in the event of default, all outstanding amounts may become immediately due and payable. The annual debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 8,100 $ 7,619 $ 15,719
2025 8,500 7,254 15,754
2026 9,100 6,871 15,971
2027 9,300 6,462 15,762
2028 9,700 6,044 15,744
2029-2033 55,400 23,274 78,674
2034-2038 69,200 9,612 78,812
Totals $ 169,300 $ 67,136 $ 236,436
Fiscal Year Ending
June 30, Principal Interest Total
2024 108,322 $ 28,150 $ 136,472 $
2025 111,139 25,334 136,473
2026 114,028 22,444 136,472
2027 116,993 19,479 136,472
2028 120,035 16,437 136,472
2029 123,156 13,316 136,472
2030 126,358 10,114 136,472
2031 129,643 6,829 136,472
2032 133,015 3,458 136,473
Totals 1,082,689 $ 145,561 $ 1,228,250 $
57 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
MPUD Note Payable
During the 2021-22 fiscal year, the City financed the purchase of water rights through an installment note with the Mojave Public Utility District. The note is to be repaid in annual installments of $187,500 (without interest) over 36 months, with the initial payment being made in April 2022.
The note is secured by the water rights transferred to the City. The note is a direct borrowing from the Mojave Public Utility District. The annual debt service requirements to maturity are as follows:
TVHD Note Payable
During the 2021-22 fiscal year, the City financed the purchase of water rights through an installment note with the Tehachapi Valley Healthcare District. The note is to be repaid in three annual installments of $45,500 (without interest), with the initial payment being made in February 2022. The note is secured by the water rights transferred to the City. The note is a direct borrowing from the Tehachapi Valley Healthcare District and includes provisions that, in the event of default, all outstanding amounts may become immediately due and payable. The annual debt service requirements to maturity are as follows:
Long-term Liabilities - Fiduciary Funds
The following is a schedule of changes in long-term debt of the Successor Agency for the fiscal year ended June 30, 2023.
In June 2017, the Successor Agency to the Tehachapi Redevelopment Agency issued $5,387,000 and $5,892,000 of Tax Allocation Refunding Bonds, Series 2017A and 2017B, to refund the 2005 and 2007 Tax Allocation Bonds of the former Tehachapi Redevelopment Agency. The 2017 Series A Bonds mature in amounts ranging from $151,000 to $377,000 annually through 2036, with interest payments of 3.34%, payable semi-annually on June 1 and December 1. The 2017 Series B Bonds mature in amounts ranging from $122,000 to $386,000 annually through 2038, with interest payments of 3.36%, payable semi-annually on June 1 and December 1. The Bonds are payable as to principal and interest exclusively from the pledged tax revenues of the Successor Agency. Future debt service requirements are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 187,500 $ 187,500 - $
Totals $ 187,500 $ 187,500 - $
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 45,500 $ - $ 45,500
Totals $ 45,500 $ - $ 45,500
Beginning Ending Due Within
Successor Agency Debt: Balance Additions Deletions Balance One Year 2017 Tax Allocation Bonds $ 9,219,000 $ 484,000 - $ $ 8,735,000 $ 498,000 Total Successor Agency Debt $ 9,219,000 $ 484,000 - $ $ 8,735,000 $ 498,000 58 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
No-Commitment Debt
The City issued Assessment District limited obligation bonds to finance the construction of infrastructure improvements within the City through the use of Special Assessment Districts. The repayment of the bonds are payable from special assessments levied each year, or from foreclosure proceeds. The bonds do not constitute indebtedness of the City, and the City is in no way obligated for their repayment and is only acting on behalf of bondholders and initiating foreclosure proceedings, if necessary. Accordingly, these special assessments and special tax bonds payable have been excluded from the accompanying primary government financial statements.
Due to delinquent annual assessments, limited obligation bonds (Assessment Districts 89-2 and 89-3) amounting to $2,180,000 (principal only) are in default at June 30, 2023.
G) Fund Balances
The details of the fund balances as of June 30, 2023 are presented below:
Fiscal Year Ending
June 30, Principal Interest Total
2024 498,000 $ 284,340 $ 782,340 $
2025 521,000 267,274 788,274
2026 534,000 249,604 783,604
2027 550,000 231,448 781,448
2028 565,000 212,773 777,773
2029 587,000 193,478 780,478
2030 608,000 173,462 781,462
2031 628,000 152,761 780,761
2032 652,000 131,323 783,323
2033 675,000 109,097 784,097
2034 690,000 86,234 776,234
2035 723,000 62,568 785,568
2036 740,000 38,065 778,065
2037 378,000 19,320 397,320
2038 386,000 6,485 392,485
Totals 8,735,000 $ 2,218,232 $ 10,953,232 $
59 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
2) DETAILED NOTES ON ALL FUNDS – Continued
3) OTHER INFORMATION
A) Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which established the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The City is covered for the first $1,000,000 of each liability claim and $500,000 of each workers’ compensation claim through the CSJVRMA. The Authority pays first dollar coverage for all liability and workers’ compensation claims and collects the city’s retained limit five years after the close of the fiscal year through a retrospective adjustment process. The City’s liability and workers’ compensation retained limit is $25,000 per occurrence. The CSJVRMA participates in an excess liability pool which provides liability coverage from $1,000,000 to $29,500,000 and an excess workers’ compensation pool which provides workers’ compensation coverage from $500,000 to the statutory limits.
The CSJVRMA is a consortium of 53 cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets 3 times per year, consisting of one board member and an alternate member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA. At 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. Financial statements of CSJVRMA can be obtained from the Authority located at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.
The City is exposed to various risks of losses related to torts; thefts of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City purchases insurance as described above. There are no significant reductions in insurance coverage from prior years and also there have been no settlements exceeding the insurance coverage for each of the past three fiscal years.
Facility Traffic Roads and Street Other
General Impact Fee Mitigation Pedestrian Projects Governmental Fund Fund Fund Safety Fund Fund Funds Total
Nonspendable:
Prepaids 159,701 $ - $ - $ - $ - $ - $ 159,701 $
Advances to Other Funds 2,000,000 - - - - - 2,000,000
Advances to Fiduciary Funds 248,059 - - - - - 248,059
Restricted:
Lighting District - - - - - 356,328 356,328
Transportation - - 2,603,696 - - 797,659 3,401,355
Recycling - - - - - 17,943 17,943
Technology - - - - - 42,521 42,521
Parks and Recreation - - - - - 223,513 223,513
Committed
Emergency Contingency 1,346,099 - - - - - 1,346,099
Unassigned (2,847,915) 14,703,044 - (222,382) (570,544) - 11,062,203 Total Fund Balance 18,456,903 $ (2,847,915) $ 2,603,696 $ (222,382) $ (570,544) $ 1,437,964 $ 18,857,722 $ 60 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
3) OTHER INFORMATION – Continued
B) City Employee Retirement Plan
General Information about the Defined Benefit Pension Plan Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors seven rate plans (three miscellaneous and four safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2021 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2021 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications. The rate plan provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous Miscellaneous
Miscellaneous Tier II PEPRA
Prior to After After
Hire date November 26, 2012 November 26, 2012 January 1, 2013 Benefit formula 2% @ 55 2% @ 60 2% @ 62
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 55 60 62
Monthly benefits, as a % of eligible compensation 2% 2% 2% Required employee contribution rates 7% 7% 6.75%
Required employer contribution rates 10.32% + $321,213 8.63% + $4,416 7.47% + $8,820 Safety Police Safety Police Safety Police Safety Fire
Tier I Tier II PEPRA Tier I
Prior to After After Prior to
Hire date November 26, 2012 November 26, 2012 January 1, 2013 November 26, 2012 Benefit formula 3% @ 50 2% @ 50 2.7% @ 57 2.0% @ 55
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 50 57 50
Monthly benefits, as a % of eligible compensation 3% 2% 2.7% 2% Required employee contribution rates 9% 9% 13% 0%
Required employer contribution rates 23.75% + $143,945 18.17% + $2,167 12.78% + $10,869 0% + $7,915 61 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
3) OTHER INFORMATION – 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 1 following notice of a change in the rate.
Funding contributions for the Plan is 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 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.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $499,345 in fiscal year 2023. The City’s contributions to the plan for the year ended June 30, 2023 were $1,410,161.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows Related to Pensions As of June 30, 2023, the City reported a liability of $6,173,547 for its proportionate share of the net pension liability. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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 plan relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability as of June 30, 2022 and 2023 was as follows:
For the year ended June 30, 2023, the City recognized pension expense of $1,195,533. At June 30, 2023, the City reported deferred outflows and deferred inflows related to pensions from the following sources:
Proportion - June 30, 2022 0.05203%
Proportion - June 30, 2023 0.05345%
Change - Increase (Decrease) 0.00142%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,410,161 $ - $ Differences between actual and expected experience 168,293 77,645 Changes in assumptions 629,197 -
Change in employer's proportion 166,497 115,626
Differences between the employer's contributions and
the employer's proportionate share of contributions 112,492 23,380 Net differences between projected and actual
earnings on plan investments 1,078,287 -
Total $ 3,564,927 $ 216,651
62 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
3) OTHER INFORMATION – Continued
$1,410,161 reported 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 year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Postretirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows.
Year Ending
June 30,
2024 590,661 $
2025 455,887
2026 232,583
2027 658,984
2028 -
Thereafter -
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Payroll growth 2.75%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. 63 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
3) OTHER INFORMATION – Continued
Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Discount Rate – The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the 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
Asset Class Allocation Real Return (1,2)
Global Equity - Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management study. 1% Decrease 5.90%
Net Pension Liability 9,853,771 $
Current Discount Rate 6.90%
Net Pension Liability 6,173,547 $
1% Increase 7.90%
Net Pension Liability 3,152,433 $
64 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2023
3) OTHER INFORMATION – Continued
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Payable to the Pension Plan – At June 30, 2023, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.
C) Commitments and Contingencies
The City has received Federal and State funds for specific purposes that are subject to review by the grantor agencies. These programs are subject to audit by the grantor agencies and upon further examination by the grantors, certain costs could be disallowed. The City expects any such amounts to be immaterial.
Construction commitments at year-end were approximately $7.3 million.
D) Prior Period Adjustments
Beginning Net Position for Governmental Activities was reduced by $133,288 to remove capital assets previously reported, which are no longer considered the City’s assets. 65 REQUIRED SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 9,195,152 $ 10,319,126 $ 10,684,995 $ 365,869 $
Licenses, Permits, and Fines 506,500 866,180 1,005,001 138,821 Intergovernmental 1,649,254 1,739,225 1,754,726 15,501
Charges for Services 773,000 882,413 944,248 61,835
Investment Earnings 100,000 275,179 133,415 (141,764)
Miscellaneous Revenues 20,700 58,980 187,744 128,764
Total Revenues 12,244,606 14,141,103 14,710,129 569,026
EXPENDITURES
Current:
General Government:
General Government 986,550 1,088,677 1,010,245 78,432
Finance 333,449 516,990 319,961 197,029
IT 479,077 463,859 415,393 48,466
Council 21,684 20,990 17,679 3,311
City Clerk 96,654 104,294 67,004 37,290
Treasurer 2,799 2,289 2,335 (46)
Public Works:
Public Works 1,472,430 1,391,039 1,497,144 (106,105)
Economic Development 179,057 198,228 202,152 (3,924)
Public Safety (Police/Fire) 6,074,425 6,013,127 5,444,029 569,098 Community Development:
Development Services 1,389,269 1,603,137 1,670,810 (67,673) Debt Service:
Interest 8,328 10,028 16,630 (6,602)
Principal 128,857 128,857 165,638 (36,781)
Total Expenditures 11,172,579 11,541,515 10,829,020 712,495 Excess (Deficiency) of Revenues
over Expenditures 1,072,027 2,599,588 3,881,109 1,281,521
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (882,168) (401,770) (372,804) 28,966
Total Other Financing Sources (Uses) (882,168) (401,770) (372,804) 28,966 Net Change in Fund Balances 189,859 2,197,818 3,508,305 1,310,487 Fund Balance, Beginning of Year 14,948,598 14,948,598 14,948,598 - Fund Balance, End of Year $ 17,146,416 15,138,457 $ 18,456,903 $ 1,310,487 $ Budgeted Amounts
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2023
66 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services 152,573 $ 171,274 $ 128,832 $ (42,442) $ Total Revenues 152,573 171,274 128,832 (42,442)
EXPENDITURES
Current:
Public Works - - - -
Debt Service
Interest - 18,701 4,859 13,842
Principal 152,573 152,573 - 152,573
Total Expenditures 152,573 171,274 4,859 166,415
Excess (Deficiency) of Revenues
Over Expenditures - - 123,973 123,973
Fund Balance, Beginning of Year (2,971,888) (2,971,888) (2,971,888) - Fund Balance, End of Year $ (2,971,888) (2,971,888) $ (2,847,915) $ 123,973 $ City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Facility Impact Fee Special Revenue Fund Year Ended June 30, 2023
Budgeted Amounts
67 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 20,000 $ 20,000 $ -$ $ (20,000)
Charges for Services 118,080 118,080 112,446 (5,634)
Investment Earnings 18,000 21,495 60,494 38,999
Total Revenues 156,080 159,575 172,940 13,365
EXPENDITURES
Current:
Public Works - - - -
Capital Outlay - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 156,080 159,575 172,940 13,365
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (92,847) - (92,847) -
Total Other Financing Sources (Uses) (92,847) - (92,847) - Net Change in Fund Balance 156,080 66,728 80,093 13,365 Fund Balance, Beginning of Year 2,523,603 2,523,603 2,523,603 - Fund Balance, End of Year $ 2,590,331 2,679,683 $ 2,603,696 $ 13,365 $ City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Traffic Mitigation Special Revenue Fund Year Ended June 30, 2023
Budgeted Amounts
68 City of Tehachapi
Required Supplementary Information
Year Ended June 30, 2023
Notes to the Schedule of the City’s Proportionate Share of the Net Pension Liability Benefit Changes: none
Changes in Assumptions: In 2017, the accounting discount rate changed from 7.65% to 7.15%, and to 6.90% in 2022.
*Fiscal year 2015 was the first year of implementation; therefore, 10 years of information are not yet available.
Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Covered Pension Liability a % of the Total Measurement Date Liability Pension Liability Payroll as a % of Payroll Pension Liability 2022 0.05345% 6,173,547 $ 5,090,890 $ 121.27% 77.03%
2021 0.05203% 2,813,824 5,019,980 56.05% 88.46%
2020 0.04959% 5,395,363 4,837,713 111.53% 76.14%
2019 0.04751% 4,867,912 4,452,030 109.34% 76.93%
2018 0.04550% 4,384,873 4,353,690 100.72% 78.56%
2017 0.04470% 4,432,819 4,000,120 110.82% 76.94%
2016 0.04311% 3,729,998 3,696,441 100.91% 77.67%
2015 0.04121% 2,828,329 3,484,251 81.17% 81.73%
2014 0.04338% 2,699,104 3,667,218 73.60% 81.13%
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 Years*
69 City of Tehachapi
Required Supplementary Information
Year Ended June 30, 2023
Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/21, 6/30/20, 6/30/19, 6/30/18, 6/30/17, 6/30/16, 6/30/15, 6/30/14, 6/30/13 *Fiscal year 2015 was the first year of implementation; therefore, 10 years of information are not yet available.
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 1,060,161 $ (1,410,161) $ (350,000) $ 5,952,248 $ 17.81% 2022 977,228 (1,327,228) (350,000) 5,090,890 19.20%
2021 904,041 (904,041) - 5,019,980 18.01%
2020 799,226 (799,226) 4,837,713 - 16.52%
2019 685,806 (685,806) - 4,452,030 15.40%
2018 572,035 (572,035) 4,353,690 - 13.14%
2017 536,117 (536,117) - 4,000,120 13.40%
2016 440,933 (440,933) 3,696,441 - 11.93%
2015 636,364 (636,364) - 3,484,251 18.26%
Schedule of Pension Plan Contributions
Last 10 Years*
70 City of Tehachapi
Notes to Required Supplementary Information
Year Ended June 30, 2023
Budgetary Accounting
Budgetary comparison schedules are presented as part of the Required Supplementary Information for the General Fund and major Special Revenue Funds as provided for in GASB Statement No. 34. The City budget is adopted on a basis consistent with accounting principles generally accepted in United States of America. The City Manager is required to prepare and submit to the City Council the annual budget of the City and administer it after the adoption.
City Council approval is required for budget revisions that affect the total appropriations of the City. The City Manager is authorized to approve transfers within individual fund budgets without the approval of City Council; however, total appropriations may not be exceeded at the department level for the General Fund and the fund level for all other funds. 71 SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 315,750 $ - $ (315,750) $
Charges for Services - - -
Total Revenues 315,750 - (315,750)
EXPENDITURES
Capital Outlay 314,970 235,526 79,444
Total Expenditures 314,970 235,526 79,444
Excess (Deficiency) of Revenues
Over Expenditures 780 (235,526) (236,306)
OTHER FINANCING SOURCES (USES)
Transfers In 15,000 19,371 4,371
Transfers Out - - -
Total Other Financing Sources (Uses) 15,000 19,371 4,371 Net Change in Fund Balance 15,780 (216,155) (231,935)
Fund Balance, Beginning of Year (6,227) (6,227) -
Fund Balance, End of Year $ 9,553 $ (222,382) $ (231,935) City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Roads and Pedestrian Safety Capital Projects Fund Year Ended June 30, 2023
72 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 1,020,240 $ 1,215,905 $ 195,665 $
Charges for Services - - -
Total Revenues 1,020,240 1,215,905 195,665
EXPENDITURES
Capital Outlay 2,281,034 2,544,053 (263,019)
Total Expenditures 2,281,034 2,544,053 (263,019)
Excess (Deficiency) of Revenues
Over Expenditures (1,260,794) (1,328,148) (67,354)
OTHER FINANCING SOURCES (USES)
Transfers In 1,154,878 1,033,644 (121,234)
Transfers Out - - -
Total Other Financing Sources (Uses) 1,154,878 1,033,644 (121,234) Net Change in Fund Balance (105,916) (294,504) (188,588) Fund Balance, Beginning of Year (276,040) (276,040) -
Fund Balance, End of Year $ (381,956) $ (570,544) $ (188,588) City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Street Projects Capital Projects Fund Year Ended June 30, 2023
73 THIS PAGE INTENTIONALLY LEFT BLANK
Special Capital
Revenue Projects Total
ASSETS
Cash and Investments $ 283,989 1,179,823 $ 1,463,812 $
Receivables 79,026 - 79,026
Total Assets $ 1,258,849 $ 283,989 $ 1,542,838
LIABILITIES
Accounts Payable $ 70,813 $ 17,955 $ 88,768
Accrued Liabilities 15,480 - 15,480
Due to Other Funds 626 - 626
Total Liabilities 86,919 17,955 104,874
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Restricted 1,171,930 266,034 1,437,964
Total Fund Balances 1,171,930 266,034 1,437,964
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,258,849 $ 283,989 $ 1,542,838 City of Tehachapi
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
74 Special Capital
Revenue Projects Total
REVENUES
Taxes 671,907 $ - $ $ 671,907
Licenses, Permits, and Fines - 98,643 98,643
Intergovernmental 1,071,959 - 1,071,959
Charges for Services - 25,186 25,186
Investment Earnings 32,906 6,129 39,035
Miscellaneous Revenues 4,296 - 4,296
Total Revenues 1,781,068 129,958 1,911,026
EXPENDITURES
Current:
General Government 42,619 - 42,619
Public Works 1,313,840 - 1,313,840
Community Development - 64,036 64,036
Capital Outlay - - -
Debt Service:
Interest 12,722 - 12,722
Principal 35,785 - 35,785
Total Expenditures 1,404,966 64,036 1,469,002
Excess (Deficiency) of Revenues Over Expenditures 376,102 65,922 442,024
OTHER FINANCING SOURCES (USES)
Transfers In 420,090 - 420,090
Transfers Out (1,008,406) - (1,008,406)
Total Other Financing Sources (Uses) (588,316) - (588,316) Net Change in Fund Balances (212,214) 65,922 (146,292)
Fund Balances, Beginning of Year 1,384,144 200,112 1,584,256 Fund Balances, End of Year $ 1,171,930 $ 266,034 $ 1,437,964 City of Tehachapi
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2023
75 Beverage
Oil Recycling Container Lighting
Grant Fund Recycling District
ASSETS
Cash and Investments $ 17,943 - $ 396,756 $
Receivables - - -
Total Assets $ 17,943 - $ $ 396,756
LIABILITIES
Accounts Payable $ - $ 30,085 - $
Accrued Liabilities - - 9,717
Due to Other Funds - - 626
Advances From Other Funds - - -
Total Liabilities - 40,428 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Restricted 17,943 - 356,328
Total Fund Balances 17,943 - 356,328
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 17,943 - $ $ 396,756
June 30, 2023
Non-major Special Revenue Funds
Combining Balance Sheet
City of Tehachapi
76 Streets
and Roads Gas Tax Total
$ 554,148 210,976 $ 1,179,823 $
79,026 - 79,026
$ 633,174 210,976 $ 1,258,849 $
$ 730 $ 39,998 $ 70,813
5,763 15,480 -
- - 626
- - -
6,493 39,998 86,919
- - -
- - -
204,483 593,176 1,171,930
204,483 593,176 1,171,930
$ 210,976 $ 633,174 $ 1,258,849
77 Beverage
Oil Recycling Container Lighting
Grant Fund Recycling District
REVENUES
Taxes - $ $ 350,955
Intergovernmental - - -
Investment Earnings - 413 8,287
Miscellaneous Revenues - - -
Total Revenues - 413 359,242
EXPENDITURES
Current:
General Government - - 42,619
Public Works 277 - 675,395
Capital Outlay - - -
Debt Service:
Interest - - -
Principal - - -
Total Expenditures 277 - 718,014
Excess (Deficiency) of Revenues
Over Expenditures (277) 413 (358,772)
OTHER FINANCING SOURCES (USES)
Transfers In - - 371,852
Transfers Out - - -
Total Other Financing Sources (Uses) - - 371,852
Net Change in Fund Balances (277) 413 13,080
Fund Balances, Beginning of Year 277 17,530 343,248
Fund Balances, End of Year $ 17,943 - $ $ 356,328
City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
Year Ended June 30, 2023
78 Streets
and Roads Gas Tax Total
$ 320,952 - $ 671,907 $
291,511 780,448 1,071,959
20,511 3,695 32,906
418 3,878 4,296
633,392 788,021 1,781,068
- - 42,619
347,866 290,302 1,313,840
- - -
- 12,722 12,722
- 35,785 35,785
347,866 338,809 1,404,966
449,212 285,526 376,102
48,238 - 420,090
(530,109) (478,297) (1,008,406)
(481,871) (478,297) (588,316)
(196,345) (29,085) (212,214)
789,521 233,568 1,384,144
$ 593,176 204,483 $ 1,171,930 $
79 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Earnings - $ - $ - $
Total Revenues - - -
EXPENDITURES
Current:
Public Works - 277 (277)
Total Expenditures - 277 (277)
Excess (Deficiency) of Revenues
over Expenditures - (277) (277)
Fund Balance, Beginning of Year 277 277 -
Fund Balance, End of Year $ -$ 277 $ (277)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Oil Recycling Grant Special Revenue Fund Year Ended June 30, 2023
80 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Earnings 146 $ 413 $ 267 $
Total Revenues 146 413 267
EXPENDITURES
Current:
Public Works - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 146 413 267
Fund Balance, Beginning of Year 17,530 17,530 -
Fund Balance, End of Year $ 17,676 $ 17,943 $ 267
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Beverage Container Recycling Special Revenue Fund Year Ended June 30, 2023
81 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 346,282 $ 350,955 $ 4,673 $
Investment Earnings 2,954 8,287 5,333
Total Revenues 349,236 359,242 10,006
EXPENDITURES
Current:
General Government 40,430 42,619 (2,189)
Public Works 677,605 675,395 2,210
Total Expenditures 718,035 718,014 21
Excess (Deficiency) of Revenues
over Expenditures (368,799) (358,772) 10,027
OTHER FINANCING SOURCES (USES)
Transfers In 401,270 371,852 (29,418)
Transfers Out - - -
Total Other Financing Sources (Uses) 401,270 371,852 (29,418) Net Change in Fund Balances 32,471 13,080 (19,391)
Fund Balance, Beginning of Year 343,248 343,248 -
Fund Balance, End of Year $ 375,719 $ 356,328 $ (19,391) City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Lighting District Special Revenue Fund Year Ended June 30, 2023
82 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 780,448 $ 780,448 $ - $
Investment Earnings 1,000 3,695 2,695
Miscellaneous Revenues 1,741 3,878 2,137
Total Revenues 783,189 788,021 4,832
EXPENDITURES
Current:
Public Works 262,293 290,302 (28,009)
Capital Outlay - - -
Debt Service:
Interest 12,722 12,722 -
Principal 35,785 35,785 -
Total Expenditures 310,800 338,809 (28,009)
Excess (Deficiency) of Revenues
Over Expenditures 472,389 449,212 (23,177)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (703,215) (478,297) 224,918
Total Other Financing Sources (Uses) (703,215) (478,297) 224,918 Net Change in Fund Balance (230,826) (29,085) 201,741
Fund Balance, Beginning of Year 233,568 233,568 -
Fund Balance, End of Year $ 204,483 2,742 $ 201,741 $
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Streets and Roads Special Revenue Fund Year Ended June 30, 2023
83 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 324,994 $ 320,952 $ (4,042) $
Intergovernmental 283,292 291,511 8,219
Investment Earnings 14,560 20,511 5,951
Miscellaneous Revenues - 418 418
Total Revenues 622,846 633,392 10,546
EXPENDITURES
Current:
Public Works 305,074 347,866 (42,792)
Capital Outlay - - -
Total Expenditures 305,074 347,866 (42,792)
Excess (Deficiency) of Revenues
Over Expenditures 317,772 285,526 (32,246)
OTHER FINANCING SOURCES (USES)
Transfers In 48,238 - 48,238
Transfers Out (373,816) (530,109) (156,293)
Total Other Financing Sources (Uses) (373,816) (481,871) (108,055) Net Change in Fund Balance (56,044) (196,345) (140,301) Fund Balance, Beginning of Year 789,521 789,521 -
Fund Balance, End of Year $ 733,477 $ 593,176 $ (140,301) City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2023
84 Parks & Rec.
Building and Capital
Planning Project Total
ASSETS
Cash and Investments $ 60,476 $ 223,513 $ 283,989
Receivables - - -
Total Assets $ 60,476 $ 223,513 $ 283,989
LIABILITIES
Liabilities:
Accounts Payable $ 17,955 $ 17,955 - $
Total Liabilities 17,955 17,955 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Restricted 42,521 223,513 266,034
Total Fund Balances 42,521 223,513 266,034
Total Liabilities and Fund Balances $ 60,476 $ 223,513 $ 283,989 City of Tehachapi
Combining Balance Sheet
Non-major Capital Project Funds
June 30, 2023
85 Parks & Rec.
Building and Capital
Planning Project Total
REVENUES
Licenses, Permits, and Fines $ 98,643 - $ $ 98,643
Intergovernmental - - -
Charges for Services 25,186 25,186 -
Miscellaneous Revenue - - -
Investment Earnings 2,024 4,105 6,129
Total Revenues 27,210 102,748 129,958
EXPENDITURES
Current:
Public Works - - -
Community Development 64,036 64,036 -
Capital Outlay - - -
Total Expenditures 64,036 64,036 -
Excess (Deficiency) of Revenues
Over Expenditures (36,826) 102,748 65,922
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances (36,826) 102,748 65,922
Fund Balances, Beginning of Year 79,347 120,765 200,112 Fund Balances, End of Year $ 42,521 $ 223,513 $ 266,034 City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Capital Project Funds
Year Ended June 30, 2023
86 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for Services 15,995 $ 25,186 $ 9,191 $
Investment Earnings 747 2,024 1,277
Total Revenues 16,742 27,210 10,468
EXPENDITURES
Current:
Community Development - 64,036 (64,036)
Capital Outlay - - -
Total Expenditures - 64,036 (64,036)
Excess (Deficiency) of Revenues
over Expenditures 16,742 (36,826) (53,568)
Fund Balance, Beginning of Year 79,347 79,347 -
Fund Balance, End of Year $ 96,089 $ 42,521 $ (53,568)
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Building and Planning Capital Projects Fund Year Ended June 30, 2023
87 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses, Permits, and Fines 85,037 $ 98,643 $ 13,606 $ Investment Earnings 1,228 4,105 2,877
Total Revenues 86,265 102,748 16,483
EXPENDITURES
Current:
Public Works - - -
Capital Outlay - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 86,265 102,748 16,483
Fund Balance, Beginning of Year 120,765 120,765 -
Fund Balance, End of Year $ 207,030 $ 223,513 $ 16,483
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Parks and Recreation Capital Projects Fund Year Ended June 30, 2023
88 East Tehachapi Capital Total
Tehachapi Blvd. Summit Meadows Hills Custodial
Project 89-3 89-2 90-1 89-1 Funds
ASSETS
Cash and Investments $ - $ - $ 41,387 $ 45,760 $ 87,147 Other Assets 26,077 329,480 - 355,557 -
Total Assets $ 26,077 $ 329,480 $ 41,387 $ 45,760 $ 442,704
LIABILITIES
Accounts Payable - 221 - - 221
Advances From City of Tehachapi 37,235 210,824 - 248,059 - Total Liabilities 37,235 211,045 - 248,280 -
NET POSITION
Restricted:
Held for the Benefit of Others (11,158) 118,435 41,387 45,760 194,424 Total Net Position $ (11,158) $ 118,435 $ 41,387 $ 45,760 $ 194,424 City of Tehachapi
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
89 East Tehachapi Capital Total
Tehachapi Blvd. Summit Meadows Hills Custodial
Project 89-3 89-2 90-1 89-1 Funds
ADDITIONS
Investment Earnings:
Interest Income $ - $ - $ 952 $ 1,053 $ 2,005
Total Additions - - 952 1,053 2,005
DEDUCTIONS
General and Administrative 791 5,625 - - 6,416
Total Deductions 791 5,625 - - 6,416
Net Increase (decrease) in net position (791) (5,625) 952 1,053 (4,411) Net Position, beginning of the year (10,367) 124,060 40,435 44,707 198,835 Net Position, end of the year $ (11,158) $ 118,435 $ 41,387 $ 45,760 $ 194,424 City of Tehachapi
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended 6/30/2023
90 City of Tehachapi
Description of Statistical Section Contents
June 30, 2023
This part of the City of Tehachapi's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents: Pages
Financial Trends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time 91
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax 101 Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future 107
Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place 114
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs 117 91 CITY OF TEHACHAPI
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
Governmental Activities
Net Investment in Capital Assets 29,619,903 $ 31,447,535 $ 33,659,005 $ 35,786,732 $ Restricted 1,408,183 3,990,455 3,573,241 2,987,070
Unrestricted 3,928,546 2,372,775 2,625,919 2,027,591
Total Governmental Activities Net Position 34,956,632 37,810,765 39,858,165 40,801,393 Business-type Activities
Net Investment in Capital Assets 13,592,847 13,175,794 14,211,405 13,300,237 Restricted 3,333,432 3,333,432 1,016,832 1,016,832
Unrestricted (20,928) (1,010,853) 312,118 3,135,577
Total Business-type Activities Net Position 16,905,351 15,498,373 15,540,355 17,452,646 Primary Government
Net Investment in Capital Assets 43,212,750 44,623,329 47,870,410 49,086,969 Restricted 4,741,615 7,323,887 4,590,073 4,003,902
Unrestricted 3,907,618 1,361,922 2,938,037 5,163,168
Total Primary Government Activities Net Position 51,861,983 $ 53,309,138 $ 55,398,520 $ 58,254,039 $ Source: Audited Financial Statements
92 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 36,771,604 36,282,617 $ 37,634,315 $ 38,817,981 $ 39,457,130 $ 39,182,703 $ 2,414,590 3,168,630 4,714,742 3,895,674 4,410,645 4,400,300 2,938,892 4,308,161 3,881,590 7,254,879 9,684,053 13,499,605 41,636,099 44,248,395 46,230,647 49,968,534 53,551,828 57,082,608 13,298,672 12,865,566 13,126,463 13,897,605 14,311,502 15,691,758 1,629,927 3,040,310 3,095,393 1,286,582 2,410,349 2,410,349 2,879,006 2,341,438 2,476,233 3,579,134 2,167,642 1,306,572 17,807,605 18,247,314 18,698,089 18,763,321 18,889,493 19,408,679 49,581,289 49,637,170 50,760,778 52,715,586 53,768,632 54,874,461 4,044,517 6,208,940 7,810,135 5,182,256 6,820,994 6,810,649 5,817,898 6,649,599 6,357,823 10,834,013 11,851,695 14,806,177 $ 62,495,709 59,443,704 $ 64,928,736 $ 68,731,855 $ 72,441,321 $ 76,491,287 $ 93 CITY OF TEHACHAPI
CHANGES IN NET POSITION
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
Expenses
Governmental Activities
General Government 2,709,575 $ 2,763,073 $ 2,591,137 $ 2,960,419 $ Public Works 1,834,154 2,165,018 2,363,375 1,521,625
Public Safety 3,181,899 2,658,659 3,256,884 2,676,047
Community Development 1,521,265 776,844 742,409 1,080,050 Pass-throughs - - - -
Interest 21,721 20,843 19,937 32,756
Total Governmental Expenses 9,268,614 8,384,437 8,973,742 8,270,897 Business-type Activities
Water 2,129,184 2,130,275 2,122,629 2,047,429
Sewer 2,032,645 2,109,038 2,313,166 2,039,152
Airport 1,039,794 925,376 665,664 671,769
Refuse 1,168,082 1,248,408 1,523,881 1,321,542
Transit 183,382 197,247 203,452 224,557
Motocross Event Center - 629 - -
Total Business-type Expenses 6,553,087 6,610,973 6,828,792 6,304,449 Total Primary Government Expenses 15,821,701 14,995,410 15,802,534 14,575,346 Program Revenues
Governmental Activities
Charges for Services
General Government 598,282 726,782 592,856 555,366
Public Works 263,888 195,463 199,809 128,766
Public Safety 84,159 31,626 64,157 131,329
Community Development - - - -
Operating Grants and Contributions 606,281 864,473 697,728 933,565 Capital Grants and Contributions 1,311,289 5,156,087 3,011,463 2,632,154 Total Governmental Activities Program Revenues 2,863,899 6,974,431 4,566,013 4,381,180 Business-type Activities
Charges for Services
Water 2,374,272 1,928,714 1,852,062 2,428,198
Sewer 1,953,530 1,908,726 2,026,441 2,387,112
Airport 714,825 672,209 543,020 531,110
Refuse 1,179,008 1,255,069 1,273,557 1,304,499
Transit 4,964 5,737 4,783 5,068
Operating Grants and Contributions 440,453 362,894 222,494 181,162 Capital Grants and Contributions 33,290 533,828 - -
Total Business-type Activities Program Revenues 6,700,342 6,133,349 6,456,185 6,837,149 Total Primary Government Program Revenues 9,564,241 $ $ 11,022,198 13,107,780 $ 11,218,329 $ Net Revenues (Expenses)
Governmental Activities $ (6,404,715) $ (1,410,006) $ (4,407,729) $ (3,889,717) Business-type Activities 147,255 (477,624) (372,607) 532,700 Total Net Revenues (Expenses) (6,257,460) (1,887,630) (4,780,336) (3,357,017) 94 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 3,463,063 2,956,947 $ 3,754,511 $ 3,772,260 $ 1,102,246 $ 1,946,834 $ 1,791,044 2,025,544 2,158,019 2,212,546 2,674,815 3,807,094 3,437,651 3,252,153 3,701,640 4,934,643 5,112,873 5,716,890 1,094,456 987,520 1,286,798 1,158,064 3,300,861 3,630,463 - - - - -
51,448 39,372 46,407 40,890 37,358 32,802
9,837,662 9,261,536 10,947,375 12,118,403 12,228,153 15,134,083 2,674,527 2,263,348 2,509,423 2,882,279 2,739,661 2,972,953 2,254,391 2,108,924 2,479,478 2,469,560 2,334,763 2,620,908 827,525 798,286 902,729 926,700 1,059,869 1,085,323
1,381,515 1,320,605 1,417,141 1,456,930 1,561,496 1,741,817 273,718 262,565 260,754 305,301 240,065 247,288
608,304 - - - -
8,019,980 6,753,728 7,569,525 8,040,770 7,935,854 8,668,289 17,857,642 16,015,264 18,516,900 20,159,173 20,164,007 23,802,372 734,697 879,341 735,831 765,604 778,992 988,322
11,336 388,860 622,579 416,734 689,907 1,087,031
89,707 404,830 159,252 102,124 111,369 186,552
- 21,753 - 32,838 3,994 90
227,410 215,358 648,183 2,402,243 366,251 1,769,460
2,223,780 2,965,430 3,035,468 2,483,627 3,643,769 2,886,137 3,286,930 4,853,819 5,223,066 6,203,170 5,594,282 6,917,592 2,409,876 3,082,721 2,670,582 2,857,982 2,731,318 2,772,796 2,196,898 2,760,849 2,598,401 2,384,184 2,453,827 2,680,650 570,956 602,418 645,781 649,898 751,117 793,915
1,338,818 1,379,802 1,420,155 1,457,637 1,577,596 1,723,216 7,064 6,387 5,288 4,236 4,004 3,617
389,258 221,858 320,217 470,547 355,536 867,210
- - - - - -
6,912,870 8,054,035 7,660,424 7,824,484 7,873,398 8,841,404 $ 12,907,854 10,199,800 $ 12,883,490 $ 14,027,654 $ 13,467,680 $ 15,758,996 $ $ (5,974,606) $ (4,983,843) $ (5,724,309) $ (5,915,233) $ (6,633,871) $ (8,216,491) 159,142 34,055 90,899 (216,286) (62,456) 173,115
(5,815,464) (4,949,788) (5,633,410) (6,131,519) (6,696,327) (8,043,376) 95 CITY OF TEHACHAPI
CHANGES IN NET POSITION
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
General Revenues and Other Changes in Net Position
Governmental Activities
Property Taxes 1,187,822 1,184,100 1,209,741 1,266,903
Sales and Use Taxes 1,986,771 1,957,100 2,083,650 2,453,186 Property Tax in Lieu 622,826 672,331 429,281 1,199,959
Transient Occupancy Tax 830,251 683,826 641,191 705,197 Licenses and Permits 1,204,395 1,237,753 1,286,961 127,112 Franchise Tax 196,623 210,647 200,726 178,493
Other Taxes 234,870 190,190 259,181 222,329
Miscellaneous Revenues 238,008 45,508 23,912 153,309
Investment Earnings 37,005 34,077 76,980 29,176
Loss on Disposal (189,709) - - -
Transfers In (Out) (3,143) 4,839 (1,200) (1,502,719)
Transfer to Fiduciary Fund (1,406,525) - - -
Total Governmental Activities 4,939,194 6,220,371 6,210,423 4,832,945 Business-type Activities
Miscellaneous Revenues 118,296 106,104 405,354 432,926
Investment Earnings 19,514 15,426 9,917 37,177
Loss on Disposal - (122,722) (1,882) (593,231)
Transfers 3,143 (4,839) 1,200 1,502,719
Total Business-type Activities 140,953 (6,031) 414,589 1,379,591 Total Primary Government 5,080,147 6,214,340 6,625,012 6,212,536 Extraordinary Items
Governmental Activities - - - -
Business-type Activities - - - -
Total Primary Government - - - -
Changes in Net Position
Governmental Activities (1,465,521) 4,810,365 1,802,694 943,228 Business-type Activities 288,208 (483,655) 41,982 1,912,291 Total Primary Government $ (1,177,313) $ 4,326,710 $ 1,844,676 $ 2,855,519 Source: Audited Financial Statements
96 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
1,474,140 1,349,341 1,709,886 2,599,168 2,603,683 2,628,604 3,262,346 2,698,641 3,078,646 3,693,947 4,304,461 5,254,833 1,324,876 1,298,550 1,430,560 1,543,538 1,613,664 1,737,124 801,444 759,381 648,225 842,473 1,045,539 934,880
202,440 189,437 261,244 289,184 341,731 244,420
221,053 204,634 225,834 240,569 282,892 350,465
218,386 219,497 202,590 209,725 214,932 320,952
39,192 32,869 62,374 104,657 33,528 177,289
210,812 81,190 234,164 52,791 (76,210) 232,944
- - - - - -
(158,550) (24,228) (146,962) (173,027) (147,055) (952)
- - - - -
7,596,139 6,809,312 7,706,561 9,403,025 10,217,165 11,880,559 97,497 127,495 77,460 58,527 43,407 154,294
147,125 44,552 130,005 34,183 (1,834) 142,659
(458) 2,482 5,449 15,781 48,166 -
24,228 158,550 146,962 173,027 147,055 952
195,817 405,654 359,876 281,518 188,628 346,071
7,005,129 8,001,793 8,066,437 9,684,543 10,405,793 12,226,630 - - - - - -
- - - - - -
- - - - - -
834,706 2,612,296 1,982,252 3,487,792 3,583,294 3,664,068 354,959 439,709 450,775 65,232 126,172 519,186
$ 1,189,665 $ 3,052,005 $ 2,433,027 $ 3,553,024 $ 3,709,466 $ 4,183,254 97 CITY OF TEHACHAPI
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
General Fund
Nonspendable 5,311,956 $ 3,787,406 $ 4,568,444 $ 2,768,871 $ Restricted - - 212,068 42,463
Committed 887,757 997,993 963,561 1,009,610
Assigned - - - -
Unassigned 1,438,840 3,427,941 2,863,138 3,475,310
Total General Fund 7,638,553 8,213,340 8,607,211 7,296,254 All Other Governmental Funds
Nonspendable - - - -
Restricted 1,511,574 4,311,304 3,509,814 2,947,084
Committed - - - -
Assigned 100,859 - - -
Unassigned (4,466,245) (4,399,243) (4,116,912) (4,297,996) Total All Other Governmental Funds (2,853,812) $ (87,939) $ (607,098) $ (1,350,912) $ Source: Audited Financial Statements
98 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 2,320,850 $ 2,314,383 $ 2,236,527 $ 2,365,185 $ 2,395,992 $ 2,407,760 524,063 141,128 - - - -
927,351 951,319 1,061,215 1,158,946 1,185,070 1,346,099 - - - - - -
4,525,391 6,174,235 7,042,898 10,103,854 11,367,536 14,703,044 8,297,655 9,581,065 10,340,640 13,627,985 14,948,598 18,456,903 - - - - - -
2,764,787 3,217,526 3,399,021 3,655,590 4,107,859 4,041,660 - - - - - -
- - - - - -
(3,798,062) (3,239,148) (3,846,179) (3,631,307) (3,254,155) (3,640,841) $ (1,033,275) $ (21,622) $ (447,158) $ 24,283 $ 853,704 $ 400,819 99 CITY OF TEHACHAPI
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
Revenues
Property Taxes 1,810,648 $ 1,856,431 $ 1,639,022 $ 2,466,862 $ Sales Taxes 1,986,771 1,957,100 2,083,650 2,453,186
Other Taxes 2,667,913 2,457,485 2,464,448 1,293,138
Licenses and Permits 71,965 72,610 139,894 158,347
Grants - - - -
Charges for Services 615,637 478,874 344,800 291,853
Interest 37,005 34,077 78,117 29,175
Other Sources of Funds 1,483,326 5,792,420 3,821,298 2,877,046 Miscellaneous 320,514 874,727 385,755 446,437
Total Revenues 8,993,779 13,523,724 10,956,984 10,016,044 Expenditures
Current
General Government 1,503,377 1,407,646 1,185,451 1,236,541 Public Works 1,617,273 2,165,018 3,366,282 3,064,968
Public Safety 3,181,899 3,159,926 3,738,870 2,844,104
Community Development 1,521,265 776,844 742,409 1,080,050 Pass-throughs - - - -
Capital Outlay 5,133,596 2,629,834 2,614,335 2,113,490
Debt Service
Interest Expense 21,721 20,843 19,937 32,756
Principal 26,928 27,792 221,122 196,187
Total Expenditures 13,006,059 10,187,903 11,888,406 10,568,096 Excess of Revenues Over Expenditures (4,012,280) 3,335,821 (931,422) (552,052) Other Financing Source (Uses)
Transfers In 708,278 535,808 5,773,563 1,128,417
Transfers Out (2,117,946) (530,969) (5,774,763) (2,631,136) Bond proceeds
Discount on issuance
Capital contribution
Proceeds from Leases - 807,334 - -
Total Other Financing Sources (Uses) (1,409,668) 4,839 806,134 (1,502,719) Extraordinary Items
RDA Dissolution - - - -
Developer Settlement - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances $ (5,421,948) $ 3,340,660 $ (125,288) $ (2,054,771) Capitalized Outlay Amount $ 4,916,715 $ 3,111,820 $ 4,099,228 $ 3,656,833 Debt service as a percentage of noncapital
expenditures 0.6% 0.7% 3.1% 3.3%
Source: Audited Financial Statements
100
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 2,799,016 2,647,891 $ 3,140,446 $ 4,142,706 $ 4,217,347 $ 4,365,728 $ 3,262,346 2,698,641 3,078,646 3,693,947 4,304,461 5,254,833 1,448,320 1,396,552 1,349,364 1,573,953 1,842,072 1,736,341 424,901 286,062 609,201 409,306 801,142 1,103,644
3,086,873 3,208,395 2,430,645 5,733,425 3,669,181 4,042,590 1,149,809 581,969 1,044,044 1,012,140 939,400 1,210,712 210,810 81,188 234,162 52,792 (76,209) 232,944
- - - - - -
151,647 20,630 56,292 113,177 45,779 192,040
12,533,722 10,921,328 11,942,800 16,731,446 15,743,173 18,138,832 1,233,731 1,276,431 1,293,556 1,388,285 1,634,214 1,875,236 4,086,366 4,159,918 2,208,147 2,241,396 2,375,251 3,013,136 3,437,651 3,084,772 3,700,682 4,934,643 4,805,530 5,444,029 1,094,456 987,520 1,286,798 1,158,064 1,480,013 1,734,846 - - - - -
411,481 6,729 2,808,631 2,848,529 3,104,616 2,779,579
39,372 51,448 46,407 40,890 38,916 34,211
146,693 169,728 189,254 187,826 227,080 201,423
10,106,187 10,080,109 11,533,475 12,799,633 13,665,620 15,082,460 815,141 2,453,613 409,325 3,931,813 2,077,553 3,056,372 1,883,697 570,811 678,095 567,605 1,166,720 1,473,105
(1,907,925) (729,361) (825,057) (740,632) (1,313,775) (1,474,057) 528,125 71,676 - 219,536 -
503,897 (158,550) (75,286) (173,027) 72,481 (952)
- - - - - -
- - - - - -
- - - - - -
$ 1,319,038 $ 2,295,063 $ 334,039 $ 3,758,786 $ 2,150,034 $ 3,055,420 $ 2,545,855 $ 2,357,831 $ 2,858,759 $ 2,880,792 $ 2,876,208 $ 2,051,440
2.5% 2.9% 2.7% 2.3% 2.5% 1.8%
101
CITY OF TEHACHAPI
ASSESSED VALUE OF TAXABLE PROPERTY (Net Taxable)
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
Residential 338,902,809 $ 359,605,809 $ 380,664,403 $ 399,422,704 $ Commercial 137,475,266 139,595,833 144,701,721 153,166,923 Industrial 25,440,568 30,835,636 32,287,375 33,725,848
Dry Farm
Government Owned 26,481 26,508 8,766 7,170
Institutional 252,517 338,662 535,961 544,130
Irrigated 1,348,186 1,354,301 1,381,356 1,402,417
Recreational 1,417,952 1,422,445 1,452,435 793,833
Vacant 40,524,147 41,173,555 44,669,511 41,998,586
SBE Nonunitary 395,680 395,680 395,680 988,898
Unsecured 26,325,736 26,310,333 25,511,087 24,690,697
Total 572,109,342 $ 601,058,762 $ 631,608,295 $ 656,741,206 $ Total Direct Rate 0.16162 0.16116 0.16098 0.16098
Tax Exempt (1,508,760) $ (1,398,730) $ (3,080,187) $ (37,818,187) $ Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation date shown above represents the only date currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: Kern County Assessor 2013/14 - 2022/23 combined Tax Rolls via HdL, Coren & Cone This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone
102
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 460,071,380 428,954,661 $ 504,175,793 $ 532,035,616 $ 557,817,999 $ 601,208,346 $ 174,168,100 166,465,568 186,722,185 199,770,649 206,542,926 219,027,585 34,874,684 34,610,139 35,940,915 36,158,769 36,275,420 38,585,531 44,663 102,208 45,556
8,020 5,321 8,179 8,341 5,291 5,396
566,105 4,788,656 840,583 588,968 821,791 606,965
1,074,823 1,430,459 1,096,315 1,370,087 1,384,278 1,411,961 546,325 540,829 482,000 491,640 496,732 506,665
40,682,524 40,213,440 36,089,584 37,021,550 39,990,752 47,097,235 604,699 988,898 604,699 843,322 843,322 843,322
29,185,900 50,321,244 33,772,445 37,990,514 40,611,415 43,194,244 $ 741,782,560 728,319,215 $ 799,732,698 $ 846,381,664 $ 884,834,589 $ 952,532,806 $
0.15920 0.16019 0.16001 0.16721 0.16671 0.16702
$ (47,747,124) (47,657,485) $ (47,729,486) $ (48,033,396) $ - $ - $ 103
CITY OF TEHACHAPI
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Rate per $100 of taxable value
2013/14 2014/15 2015/16 2016/17
Agency
Basic Levy 1.00000 1.00000 1.00000 1.00000
Kern Community College 0.01264 0.01045 0.01357 0.01318
Kern County Water Agency 0.01071 0.01126 0.01357 0.01532 Tehachapi Cummings Water State Payment 0.04290 0.03875 0.03787 0.06940 Tehachapi Health Bond 0.08477 0.07348 0.07811 0.08002
Tehachapi Unified School District 0.04353 0.06396 0.04454 0.05349 Total Direct & Overlapping Tax Rates 1.19456 1.19790 1.18765 1.23140 City's Share of 1% Levy Per Prop 13 0.18729 0.18729 0.18729 0.18729 Redevelopment Rate
Total Direct Rate 0.16162 0.16116 0.16098 0.16098
Notes:
1In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00%. This 1.00% is shared by all taxing agencies within which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
2Overlapping rates are those of local and county governments that apply to property owners within the City.
Not all overlapping rates apply to all city property owners. 3The City's share of the 1.00% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.
4Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX126 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
5Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
Source: Kern County Assessor Tax Rate Tables
104
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.03625 0.03367 0.03303 0.03385 0.03861 0.03124
0.01784 0.01658 0.01895 0.01771 0.01731 0.01484
0.05665 0.05678 0.05133 0.05005 0.05356 0.05350
0.08067 0.07111 0.07990 0.06737 0.06804 0.05905
0.05000 0.04048 0.05641 0.04659 0.01250 0.00000
1.24142 1.21861 1.23961 1.21556 1.19002 1.15863
0.18729 0.18729 0.18729 0.18729 0.18729 0.18729
0.15920 0.16019 0.16001 0.16721 0.16671 0.16702
105
CITY OF TEHACHAPI
PRINCIPAL PROPERTY TAX PAYERS
Current and Nine Years Ago
Owner Value % of Net
AV Owner Value % of Net AV
Walmart $ 2.40 22,851,093 Chuck and Hyon K Yoo $ 2.05 11,715,994 Tehachapi Investment LLC 2.21 21,023,564 Home Depot USA Inc 1.78 10,199,108 Yoo Family Credit Trust 1.58 15,079,872 Loves County Stores of CA 1.59 9,076,363 Loves County Stores of CA 1.38 13,150,973 Abs California O 1.52 8,686,092 Evergreen Hospitality Inc 1.16 11,021,789 Evergreen Hospitality 1.49 8,529,065 Pilot Travel Centers LLC 1.08 10,245,035 Emster XIII LLC 1.43 8,165,745 Home Depot USA Inc 1.00 9,506,911 Benz Sanitation Inc 1.17 6,701,950 Tehachapi Tucker Road LLC 0.98 9,295,980 Mel & Beverly Rubin Trust 1.12 6,424,040 Sopus Products 0.91 8,701,533 Subhash & Hashumati Patel 1.00 5,714,648 YFP Tehachapi LLC 0.79 7,550,964 Tehachapi Orchard LLC 5,664,040 0.99 Top Ten Total 13.49 128,427,714 Top Ten Total 14.14 80,877,045 Total Taxable Year 100% 952,532,806 Total Taxable Year 100% 572,109,342 Source: Kern County Assessor Combined Tax Rolls, The SBE Non Unitary Tax Roll and The HdL Companies
FISCAL YEAR END
2023 2014
106
CITY OF TEHACHAPI
PROPERTY TAX LEVIES & COLLECTIONS
Last Ten Fiscal Years
Fiscal Year End Tax Levied Amount Percent of Levy Amount Percent of Levy 2014 824,977 $ 824,977 $ 100% 824,977 $ 100%
2015 848,056 848,056 100% 848,056 100%
2016 858,997 858,997 100% 858,997 100%
2017 911,928 911,928 100% 911,928 100%
2018 1,000,380 1,000,380 100% 1,000,380 100%
2019 1,118,556 1,118,556 100% 1,118,556 100%
2020 1,240,785 1,240,785 100% 1,240,785 100%
2021 1,392,651 1,392,651 100% 1,392,651 100%
2022 1,365,312 1,365,312 100% 1,365,312 100%
2023 1,373,494 1,373,494 100% 1,373,494 100%
Notes: Kern County utilizes the Teeter Plan for levy and distribution which means that the City receives full payment for taxes levied each year while the County retains all penalty, interest and delinquent taxes, when collected. This method guarantees distribution of 100% of the assessments levied to the taxing entity.
Source: Kern County Auditor Controller's Office
Collected within FY of Levy Total Collections to Date
107
CITY OF TEHACHAPI
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental
Activities
Fiscal Year
End Leases Leases Notes Payable Department of Transportation State Revolving
Fund
2013 $ 690,140 $ 141,354 $ - $ 51,226 $ 2,216,133
2014 663,212 135,839 - 40,818 1,942,053
2015 635,420 130,146 - 29,926 1,856,074
2016 1,221,632 124,271 - 18,550 1,767,860
2017 1,025,445 118,207 - 6,690 1,677,352
2018 1,406,877 233,824 - 1,584,491 -
2019 1,237,150 211,712 - 1,489,215 -
2020 1,119,571 246,315 - 1,391,462 -
2021 928,262 211,900 - 1,291,168 -
2022 920,718 235,949 466,000 1,188,266 -
2023 719,295 167,603 233,000 1,082,689 -
Business Type Activities
Source: City of Tehachapi
108
USDA Loan Revenue Bonds
(net of Discount)
Total Primary
Government
Percentage of
Personal Income
Per
Capita
$ 233,500 $ 2,763,399 $ 6,095,752 3.66% 458
228,200 2,632,349 5,642,471 3.89% 423
222,800 2,496,299 5,370,665 4.17% 404
217,100 2,355,249 5,704,662 4.02% 467
211,100 2,209,199 5,247,993 3.59% 427
204,900 1,718,149 5,148,241 4.12% 419
198,400 1,167,099 4,303,576 5.20% 315
191,600 605,000 3,553,948 6.78% 279
184,500 - 2,615,830 9.74% 218
177,100 - 2,988,033 9.11% 241
169,300 - 2,371,886 11.88% 198
Business Type Activities
109
CITY OF TEHACHAPI
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year
End Tax Allocation Bond
2014 No General Bonded Debt
2015 No General Bonded Debt
2016 No General Bonded Debt
2017 No General Bonded Debt
2018 No General Bonded Debt
2019 No General Bonded Debt
2020 No General Bonded Debt
2021 No General Bonded Debt
2022 No General Bonded Debt
2023 No General Bonded Debt
Source: City of Tehachapi
110
CITY OF TEHACHAPI
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES
Last Ten Fiscal Years
2022-23 Assessed Valuation: $952,532,806
Total Debt
6/30/23
Percentage
Applicable(1)
City’s Share of
Debt 6/30/23
Overlapping Tax and Assessment Debt
Kern Comm College District Safety, Repair and Imprvmt District $ 88,698,557 0.883% $ 783,208 Kern Comm College District School Facilities Imprvmt District No. 1 329,853,183 0.877% 2,892,812 Tehachapi Valley Healthcare District 58,894,979 15.170% 8,934,368 City of Tehachapi 1915 Act Bonds 2,180,000 100.000% 2,180,000 (2) Total Overlapping Tax and Assessment Debt 14,790,388
Direct and Overlapping General Fund Debt
Kern County General Fund Obligations 104,963,511 0.857% 899,537 Kern County Pension Obligation Bonds 94,617,067 0.857% 810,868 Kern County Board of Education Certificates of Participation 31,330,000 0.857% 268,498 Kern Community College District General Fund Obligations 23,000,000 0.791% 181,930 Kern Community College District Benefit Obligation 73,200,000 0.791% 579,012 Tehachapi Valley Recreation and Park District General Fund 717,582 20.434% 146,631 City of Tehachapi Lease Obligations 719,295 100.000% 719,295 Total Direct and Overlapping General Fund Debt 3,605,771 Overlapping Tax Increment Debt (Successor Agency) 8,735,000 100.000% 8,735,000 719,295
Total Overlapping Debt 26,411,864
Combined Total Debt $ 27,131,159 (3)
Ratios to 2022-23 Assessed Valuation
Total Overlapping Tax and Assessment Debt 1.55%
Total Direct Debt ($719,295) 0.08%
Combined Total Debt 2.85%
Total Overlapping Tax Increment Debt 2.69%
Total Direct Debt(3)
Ratios to Redevelopment Successor Agency Incremental Valuation ($325,182,127) Notes: (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Defaulted principal amount. (3) The City of Tehachapi does not have general obligation debts supported by property tax. Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Source: California Municipal Statistics; HdL
111
CITY OF TEHACHAPI
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2013/14 2014/15 2015/16 2016/17
Assessed Valuation 572,109,342 $ 601,058,762 $ 631,608,295 $ 656,741,206 $ Debt Limit Percentage* 15% 15% 15% 15%
Debt Limit 85,816,401 90,158,814 94,741,244 98,511,181
Total Debt Applicable to Limit
General Obligation Bonds - - - -
Legal Debt Margin 85,816,401 $ 90,158,814 $ 94,741,244 $ 98,511,181 $ Total debt applicable to limit as a
percentage of debt limit 0% 0% 0% 0%
Notes: Section 4305 of the California Government Code provides that: "A city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15% of the assessed value of all real and personal property of the city.
Within the meaning of this section 'indebtedness' means bonded indebtedness of the city payable from the proceeds of taxes upon taxable property in the city."
Source: HdL, Coren & Cone
112
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
$ 741,782,560 728,319,215 $ 799,732,698 $ 846,381,664 $ 884,834,589 $ 952,532,806 $ 15% 15% 15% 15% 15% 15%
109,247,882 111,267,384 119,959,905 126,957,250 132,725,188 142,879,921 - - - - - -
$ 109,247,882 $ 111,267,384 $ 119,959,905 $ 126,957,250 $ 132,725,188 $ 142,879,921 0% 0% 0% 0% 0% 0%
113
CITY OF TEHACHAPI
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Net
Fiscal Revenue Operating Available Debt Coverage
Year End Expenses Revenue Service Ratio
2014 4,497,279 $ 3,205,881 $ 1,291,398 $ 592,612 $ 2.18 2015 3,952,522 3,432,627 519,895 396,585 1.31
2016 4,393,052 3,629,991 763,061 396,387 1.93
2017 5,287,544 3,758,052 1,529,492 395,711 3.87
2018 4,777,736 3,627,074 1,150,662 727,741 1.58
2019 6,086,790 4,233,930 1,852,860 766,762 2.42
2020 5,460,958 4,340,538 1,120,420 758,913 1.48
2021 5,337,415 4,724,072 613,343 152,195 4.03
2022 5,222,588 4,443,021 779,567 152,175 5.12
2023 5,788,571 4,979,501 809,070 152,242 5.31
Water and Wastewater Fund Revenue Pledged Debt
Source: City of Tehachapi
114
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CITY OF TEHACHAPI
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal Year Personal Per Capita
Ended Income Personal Unemployment Median
June 30 Population (1) (in Thousands) (2) Income (3) Rate (4) Age (5) 2013 13,346 $ 16,433 219,315 $ 7.1% 35.5
2014 13,286 224,029 16,862 8.0% 34.9
2015 12,217 229,557 18,789 7.8% 35.7
2016 12,280 188,549 15,354 7.9% 37.7
2017 12,299 212,293 17,260 6.7% 37.7
2018 13,668 223,930 16,383 4.8% 38.2
2019 12,758 241,077 18,896 5.1% 37.6
2020 12,008 254,868 21,224 9.5% 37.4
2021 12,375 272,265 22,001 11.7% 37.8
2022 11,960 281,666 23,550 6.5% 38.1
(1) Population: California State Department of Finance
(2) (3) (5) (6) & (7) Income, Age and Education Data: US Census Bureau, most recent American Community Survey
(4) Unemployment Data: California Employment Development Department
Sources: HdL, Coren & Cone
115
% of Population % of Population
Age 25+ with Age 25+ with
High School Degree (6) Bachelor's Degree (7)
72.9% 9.1%
73.8% 9.2%
74.1% 9.3%
75.6% 8.8%
75.1% 9.5%
75.5% 10.1%
78.3% 12.4%
77.2% 12.8%
80.2% 14.7%
80.6% 16.9%
116
CITY OF TEHACHAPI
PRINCIPAL EMPLOYERS
Current and Nine Years Ago
Employer
Number of
Employees Rank
Percentage of
Top 10
Employment
Number of
Employees Rank
Percentage of
Top 10
Employment
California Correctional Institution 1440 1 36%
Pearce Renewables 954 2 24%
Tehachapi Unified School District 454 3 11%
Adventist Health Tehachapi Valley 260 4 6%
Walmart 240 5 6%
Home Depot 150 6 4%
Albertson's 120 7 3%
Chemtool 115 8 3%
Waste Management 89 9 2%
Savemart 85 10 2%
Total Top 10 Employers 3907
FISCAL YEAR END
2023 2014
No data is available for the year
2014
Note: The total employment number in 2013/14 is not available.
Source: City of Tehachapi
117
CITY OF TEHACHAPI
FULL AND PART-TIME CITY EMPLOYEES FUNDED BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Full-time / Function
Airport 2000000000
Comm Development 2211011111
Development Services 7767777 6.84 6.5 5.99
Fire 0000000000
General Government 11 11 11 11 11 12 11 12 11.46 12
Police 17 18 25 25 25 24 25 26.78 26 26.89
Public Works 11 11 10 10 10 13 14 10.48 13.51 14.74
Wastewater 4.5 4 3.5 3.5 3.5 3 3 3 3.07 2.69
Water 2.5 3 4.5 3.5 4.5 4444 4.83
Full-time Total 57 56 61 61 61 64 65 64.1 65.54 68.14
Part-time / Function
Airport 0 0 0.4 0000 0.92 0.93 0.84
Comm Development 0000000000
General Government 2224479 6.12 7.65 8.03
Police 2000120000
Public Works 0 0.68 2.24 4367 4.44 4.64 2.67
Wastewater 0 0.66 0.63 0000000
Water 0 0.66 0.73 0000000
Part-Time Total 4 4 6 8 8 15 16 11.48 13.22 11.54
GRAND TOTAL 61 60 67 69 69 79 81 75.58 78.76 79.68
Source: City of Tehachapi
FISCAL YEAR END
118
CITY OF TEHACHAPI
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017
Police
Calls for Service 6,711 7,026 6,445 6,321
Felony Arrests 232 173 170 302
Misdemeanor Arrests 602 524 491 441
Property Loss 466,302 $ 384,994 $ 531,857 $ 513,316 $
Property Recovered 116,570 $ 148,698 $ 184,211 $ 137,815 $ Traffic Citations 282 109 161 167
Traffic Accidents 111 94 50 102
Parking Citations 51 52 36 123
Wastewater
Max. Capacity Million Gallons per Day 1.25 1.25 1.25 1.25 Daily Avg Treated Wastewater Million Glns 0.86 0.83 0.81 0.80 Transit Dial-A-Ride
Ridership 5,663 7,057 5,243 4,637
Mileage 26,375 27,027 24,999 22,921
Days of Service 287 308 297 305
Cost per Rider 32.38 $ 27.95 $ 38.81 $ 46.72 $
Subsidized Cost per Rider 31.59 $ 27.14 $ 37.90 $ 45.62 $ Water
Water Pumping Capacity Acre-feet 2,247 1,911 1,995 1,945 Water Pumped Acre-feet 2,201 1,671 1,692 1,855
Water Sold Acre-Feet 1,724 1,495 1,264 1,568
* Due to change in reporting systems, this information is no longer available Source: City of Tehachapi
FISCAL YEAR END
119
2018 2019 2020 2021 2022 2023
6,916 7,415 8,782 7,494 8,659 8,193
181 243 221 282 170 205
439 549 413 496 314 559
$ 358,163 $ 404,772 $ 650,688 $ N/A - * N/A - * 588,101 $ 113,831 $ 178,232 $ 198,463 $ 108,287 N/A - * N/A - * 170 175 86 92 100 192
83 116 111 104 95 124
107 260 264 128 97 87
1.25 1.25 1.25 1.25 1.25 1.25
0.78 0.75 0.73 0.66 0.72 0.67
6,368 5,730 4,385 3,338 3,351 3,408
18,331 18,867 15,007 11,862 11,128 13,387
307 304 308 302 303 304
$ 41.23 $ 47.77 $ 59.47 $ 91.46 $ 71.65 $ 72.57
$ 40.13 $ 46.66 $ 58.27 $ 90.19 $ 70.46 $ 71.51
1,891 1,847 1,879 1,993 2,016 2,352
1,935 1,842 1,888 2,050 2,090 1,741
1,664 1,664 1,648 1,835 1,854 1,516
FISCAL YEAR END
120
CITY OF TEHACHAPI
CAPITAL ASSETS BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Water
Wells 7 7 7 7 7 7 7 7 7 7
Storage Tanks 5555555555
Booster Pumps 3 3 3 3 3 3 3 3 3 3
Transmission Lines (miles) 50 50 50 50 50 50 50 50 50 50 Fire Hydrants 512 512 512 512 512 512 512 512 512 512
Wastewater
Wastewater Treatment Plant 1 1 1 1 1 1 1 1 1 1
Sewer Lift Station 1 1 1 1 1 1 1 1 1 1
Recycled Water Pump Station 1 1 1 1 1 1 1
Sanitary Sewer Lines (miles) 40 40 40 40 40 40 40 40 40 40 Airport
Runway (feet) 4035 4035 4035 4035 4035 4035 4035 4035 4035 4035 Fuel Station 1 1 1 1 1 1 1 1 1 1
City-Owned Hangars 5566788999
Parks
Parks 7 7 7 7 7 7 7 7 7 7
Public Works
Streets (lane miles) 159 162 162 162 162 162 162 162 162 164 Traffic Signals 2223445555
Police
Station 1 1 1 1 1 1 1 1 1 1
General Government
City Hall 1 1 1 1 1 1 1 1 1 1
Development Services Building 1 1 1 1 1 1 1 1 1
Visitor Center 1 1 1 1 1 1 1
Source: City of Tehachapi
FISCAL YEAR END
121
CITY OF
TE HAC HAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: March 4,2024 AGENDASECTION: Finance
TO HONORABLE MAYOR DAVIES AND COUNCIL MEMBERS
FROM: HAMED JONES, FINANCE DIRECTOR
DATE: FEBRUARY 28,2024
SUBJECT: PUBLIC HEARTNG AND PROPOSED RESOLUTION DEALING WITH TRANSIT NEEDS
WITHIN THE CITY
BACKGROUND
As part of the annual Public Transit Claim for Transportation Development Act (TDA) funds, it is necessary to conduct a public hearing to receive public testimony concerning the transit needs within the City.
The City of Tehachapi provides a Dial-A-Ride transit service through Kern Regional Transit. Utilizing two buses, the current transit service operating hours are as follows:
Monday through Friday: 6:00 am to 07:00 pm
Saturday 7:30 am to 5:30 am
The Dial-A-Ride services are available within the city limits of Tehachapi as well as between the City and certain areas of the County. The current one-way fares are as listed below:
General Public
Disabled
Children 4 and under
$2.00 Seniors (62 and over)
$1 .00 Youth (5 - 15)
Free
1 1
$
$
00 00
When comparing the fiscal year (FY) 2022123 operations to FY 2021122, ridership increased 1.7o/o whereas the total costs increased 3%. Although ridership increased slightly to 3,407 in FY 2022123, it continued to be significantly impacted bythe Covid-19 pandemicdown from a pre-pandemictotal of 5,729 in FY 2018119.
TDA requires the City to meet a 10o/o farebox ratio (ratio of farebox revenue to total expense) in order for the City to receive transit funds. Attaining the 10% ratio has been a continuing issue for the City's Dial-A-Ride transit operation and FY 2022123 was no exception. However, because of Covid-19, the State of California suspended the usual farebox ratio requirements. The farebox ratio generated directly from riders in2O22t23 was 1.460/o and the Citywas ableto utilize $21,112 in Coronavirus Response E
=J
and Relief Supplemental Appropriation Act (CRRSAA) funding to meet the 10% requirement. By meeting the required ratio, the City is eligible to receive up to $845,91 1 in FY 2023124 from the Local Transportation Fund (LTF) and State Transit Assistance Fund (STAF). ln continuing attempts to improve the farebox ratio, the City has promoted the transit service by communicating through the water bill, producing brochures which are distributed throughout the City, in digital ads in The Loop and on the lobby TVs, and through social media advertising in both English and Spanish. Transit service information is also posted on the City's officialwebsite.
The City is required to adopt a resolution annually proving that "there are no areas within the City with unmet public transit needs which could be reasonably met by expansion of the existing system or estabtishment of a new system" in order to received TDA Article 4 and Article 8 funds.
This resolution also authorizes the City Manager to execute and file claims for TDA apportionment and allocations for FY 2024125. The public hearing notice was published in the Tehachapi News on January 31,2024.
FISCAL IMPACT
This resolution allows the City to file for TDA funds that are used both for transit needs and our public roads. The funding information for FY 2024125 is not available at this point.
RECOMMENDATION
Adopt the Resolution finding that there are no unmet transit needs that are reasonable to meet within the City.
Page2 of 2
Month Days of Service nE Hours Ridership Fairbox Revenue I Contract Service Cltv County Clty County Cltv County Clty CounW ctty County CltY CounW July 165.83 '165.83 311.00 311.00 1081.43 108'1.43 413.15 413.1 5 1 2,985.76 12,985.76 Auqust 1U.29 18r'.29 437.50 437.50 1314.74 1314.74 515.'10 515.10 15 543 80 15,583 80 25 '169.54 169.54 378.50 378.50 1325.82 1325.42 4$.70 4,6.70 12.88.2.14 '12.88.2.15 Octob€r 26 26 173.50 1 73.50 393.50 393 50 1054.84 1054.84 457.98 457.98 1 3,566.08 13.566.07 Novemb€r 25 25 1 69.54 '169 54 268 50 268.50 1147.O2 1't47 02 307.20 307 20 't3.220.47 13,220.46 De@mber 27 180.58 180.58 '1.00 1.00 1 120.36 1 1 20.36 1.00 1.00 13.200.20 13,200.2',1 January 26 26 '184.29 18/29 '180.50 1 80.50 1139't3 1 139.1 3 206.25 2c6'.25 '13,104.99 13,105.00 February 21 21 162.16 162 16 237.OO 237.OO 1027.67 1027 67 279.55 279.55 11.871.U 11,871 .85 March 25 25 1U.29 l8/.29 180 00 180.00 988.41 988 41 [email protected] 2@ 45 13,434.03 '13,634.03 Apnl 25 165.83 165.83 40 1.50 401.50 1 310.53 '1310.53 344.50 348.50 12 735.19 12,73514 May 26 176.91 't76.91 374.OO 374.00 1056.32 1056.32 235.25 '12.707.62 12,707.61 June 26 't76.91 176.91 244.50 244.50 820.96 820.96 205.73 205.73 12,573.43 '12 573 42 Iotal 304 304 2.O93.7 2.O93.7 3,407.5 3 407.5 13.387.2 13.387.2 $3.616.86 s3,616.86 $158,065.55 sl 58.065.54 veraqe 25.33 25.33 '174.47 174.47 284 284 1,1 15.60 'l ,115.60 $ 301.41 $ 301.41 s 13,172.13 13,',t72.13 DaYs Der Month Ooeratino Hrs oer Mo. Passenqers Der Month Miles oer Month Avo Fairbox Revenue/Mo. Avq. ExDense/ Mo.
City of Tehachapi
Tehachapi Dlal-A-Rido from July t, 2022 through June 30, 2023 RIDERSHIP: City Only
rol€l Cosl2o22l23 vs 202'1122. 103.01%
Ridership 2022123 vs 2021122:
Total Cost per Ridet 2022123 vs 2021122:
contract cost 2022123 us 2021122:
101.70.k
101.290/,
102.070/o
2u1!4
7r.65
70.46 46.39 $
45.33 $
46.22 45.03
1.46%
N/A
1.67%
N/A
Total Cost per Rider: S
Subsidized Cost per Rider: $
Conlracl Cost per Rider: S
Subsidized Contracl Cost per Rider: $
Fare Box Ratio without GF subsidy:
Fare Box Ratio with GF subsidy:
2022t23
72.57 $
71.51 $
Contract Cost
Gonoral Public SeniorrDlrbled/Youth Age 4&under Total
Cash
TicketY
Passes Cash
TicketY
Passes Non Paying Riders
July 93.5 33.0 175.0 8.0 1.5 311.0
437.5
378.5
393.5
268.5
1.0 180.5
237.0
'180.0
401.5
374.0
244.5
Auoust 74.0 58.5 260.5 42.5 2.O
Septsmber 52.O 68.5 23s.5 22.O 0.5
October 54.0 81.5 219.5 38.5
Novemb€r 34.0 41.5 172.O 't9.5 1.5
Deember 0.5 0.5
January 18.0 111.5 39.0 10.0 2.O
February 33.5 151 .5 40.5 1 1.0 0.5
March 20.0 122.5 20.0 17 .5
Apfll 71.5 't21.0 55.0 16.5 137.5
Mav 34.0 48.0 87.0 24.O 181 .0
Juns 30.0 38.5 80.0 22.5 73.5
Total 515 876 1,385 233 400 3,407.5
't,391 1 ,617 400
Perentage 41o/o 47o/o 12o/o
lLtion.l Erp lntuInca Slona F6l tLinl t{rtl Erp adm Covid-tg Oth.r DaDEctn Total
July 6,1 58.74 407.93 102.50 1,775.51 117.U 4,423.74 12,985.76 Auoust 6,844.34 453.34 't 02.50 1 .6'10.66 1 ,917.64 4,502.08 153.24 1 5,583.80 Septembsr 6.296.53 417.06 102.50 't,503.22 42.43 4,491.61 28.79 12,882.'t4
6.432.65 426.O7 102.50 1 ,416.89 232.98 4,425.62 529.37 13,566.08 November 6,296.53 4'17.06 102.50 1 .501 .1 1 344.86 4,486.43 71.98 13.220.47 Deemb€r 6,706.56 444.21 102.50 1,135.46 121 .99 4.480.52 208.96 13,200.20 January 6.844.34 453.34 '102.50 1 ,035.0s 167.68 4.502.08 13.104.99 February 6,022.62 398.91 102.50 929.'10 127.44 4,291.27 1't,87't .84 March 6,844.34 453.U 102.50 1 ,1 't 9.87 1 1 't.83 4,876.77 125.38 13,634.03 ADril 6,1 58.74 407.93 102.50 1.406.08 36.00 4,388.26 235.68 12.735.',t9 Mav 6,570.44 435.20 102.50 797.58 120.30 4,681.60 't2,707.62 Jun€ 6,570.44 435.20 102.50 777.28 6.41 4,681.60 12,573.43 Total 77,74027 5.149.59 1 ,230.00 15,007.81 3,346.90 54.231.58 0.00 0.00 1,353.40 1 58,065.55 General Fund Subsidy: 0 2O22l23fobl Expense: $ 247,287.87 tf,il
Se6lember
October
CITYOF
TEHACHAPI
LEGAL DEPARTMENT
RESOLUTION NO.
A RESOLUTION OF THE CIW COUNCIL OF THE CITY OF
TEHACHAP! FINDING THATTHERE ARE NO UNMETTRANSIT
NEEDS THAT ARE REASONABLE TO MEET WITHIN THE CIW.
WHEREAS, the City of Tehachapi City Council conducted a public hearing on Monday, March 4,2024,to consider possible unmet transit needs within the City, and; WHEREAS, the City of Tehachapi currently provides public transportation service within the City of Tehachapi, and;
WHEREAS, the objectives of providing the public transportation system are to meet the public need for limited cost transportation, to serve the mobility limited population, and to provide an alternative to private vehicle transportation.
NOW, THEREFORE, BE lT RESOLVED by the City of Tehachapi City Council that, after holding a duly advertised public hearing and receiving public testimony, it finds there are no areas within the City with unmet public transit needs which could be reasonably met by expansion of the existing system or establishment of a new system.
BE !T FURTHER RESOLVED, that a copy of this resolution be transmitted to the Kern County Council of Governments in conjunction with the filing of claims for Transportation Development Act Funds for Fiscal Year 2024-25 and that the City Manager is authorized to execute said claims. pASSED AND ADOPTED by the City Council of the City of Tehachapi this 4th day of March, 2024.
CITYOF
TEHACTIAPI
LEGAL DEPARTMENT
AYES:
NOES:
ABSENT
ABSTAIN:
MICHAEL DAVIES, MAYOR
City of Tehachapi, California
ATTEST:
TORI MARSH, CITY CLERK
City of Tehachapi, California
I hereby certify that the foregoing resolution was duly and regularly adopted by the City Council of the City of Tehachapi at a regular meeting thereof held on March 4, 2024.
TORI MARSH, CITY CLERK
City of Tehachapi, California
CITY OF
TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 4,2024 AGENDASECTION: AIRPORT
TO: HONORABLE MAYOR DAVIES AND COUNCIL MEMBERS
FROM: ASHLEY WHITMORE, AIRPORT MANAGER
DATE: FEBRUARY 27,2024
SUBJECT: AERONAUTICAL HANGAR GROUND LEASE AGREEMENT. HANGAR 14E
BACKGROUND
Benito and Cora Gutierrez recently purchased hangar 14E located at the Tehachapi Municipal Airport. The attached Aeronautical Ground Lease Agreement has a term starting on March !,2024.
FISCAL IMPACT
Rental Payment:
s103.53/ month
5l,2q236lyear
RECOMMENDATION
APPROVE THE AERONAUTICAL HANGAR GROUND LEASE AGREEMENT FOR HANGAR 14E BETWEEN THE CITY
OF TEHACHAPI AND BENITO AND CORA GUTIERREZ
AERONAUTICAL GROUND LEASE AGREEMENT
(Tehachapi Airport) 14E
THIS LEASE AGREEMENT, hereinafter referred to as this "Lease", is made and entered into this 4th day of March, 2024, by and between the CITY OF TEHACHAPI, hereinafter referred to as "LESSOR", and Benito & Cora Gutierrez, hereinafter referred to as "LESSEE'.
IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS:
1. PREMISES:
LESSOR does hereby demise and lease to LESSEE, and LESSEE hereby hires from LESSOR, those certain premises situated in the City of Tehachapi, County of Kem, State of California, hereinafter referred to as the "premises" or "demised premises", and more particularly delineated on Exhibit A, attached hereto and by this reference made a part hereof.
2. TERM:
The term of this Lease shall be for20 years, commencing on March 1,2024, and terminating on February 29,2044 (the "lnitial Term"). LESSEE is hereby granted option to renew the LEASE for an additionalterm of five years from the expiration of the lnitial Term, and for a second additional term of five years, provided LESSEE gives LESSOR written notice of LESSEE'S exercise of its option to do so no more than 180 days and no less than 30 days prior to the expiration of the lnitial Term or the first additional term whichever applies. ln the event LESSEE exercises its option to renew the Lease, the renewal shall be such terms and conditions as determined by the LESSOR.
As to the rentalto be charged, same shall be calculated based on the rental rate or rentalformula then in effect by the LESSOR for new aeronautical hangar ground leases. ln addition, the rental terms for the renewal period shall include requirements for such increases as is then required by the LESSOR fornew aeronautical hangar ground leases.
3. HOLDING OVER:
ln the event LESSEE shall hold over after the term herein granted with the expressed or implied consent of LESSOR, such holding over shall be a tenancy only from month to month at twice the rental rate then charged for noncommercial hangar ground leases,' provided, however, that if LESSEE is otherwise in default under this Lease at the time of holding over, nothing herein shallexpressly or impliedly cure the default and LESSOR shall have all rights to remedy the default 1of15
in addition to all rights to the increased monthly rental provided for herein.
4. RENTALCONSIDERATION:
As and for rental, LESSEE agrees to pay to LESSOR, the sum of $103.53 per month payable in advance on the first day of each month commencing March 1,2024. On January 't of each calendar year thereafter, the monthly rental shall increase or decrease for said calendar year by the percentage increase or decrease between the Consumer Price lndex (All Urban Consumers) (Base Years 1982-1984=100) for Los Angeles-Anaheim-Riverside CMSA published by the United States Department of Labor, Bureau of Labor Statistics ("lndex") which is published immediately preceding the commencement of the prior calendar year and the lndex published immediately preceding the commencement of the new calendar year. LESSOR shall notifi7 LESSEE in writing of said rental increase/decrease prior to January 1. LESSOR shall bill LESSEE monthly for the rental and rental shall be due on the date set forth on the billing and shall be deemed delinquent if not received by that date. Notwithstanding the foregoing, rental may also be increased as described in Paragraphs 15 and24.
5. INTEREST:
lf the payments required herein are not paid after they become due, then, in addition to such sums, LESSEE shall also pay interest at the rate of ten percent (10%) per month on the unpaid balance or portion thereof, until paid infull.
6. PURPOSE: NUISANGE:
(a) The demised premises shall only be used by the LESSEE for aeronautical purposes permitted by the Federal Aviation Administration's (FAA) Hangar Use Policy, or locally adopted Hangar Use Policy, which may be updated from time to time. These usesinclude:
o storing active aircraft;
o maintenance, repair, or refurbishment of aircraft, but not indefinitely storing nonoperational aircraft; . constructing amateur-built or kit-built aircraft provided that activities are conducted safely;
. storing aircraft handling equipment, e.g., tow bar, glider tow equipment, workbenches, and tools and materials used to service, maintain, repair or outfit aircraft; items related to ancillary or incidental uses that do not affect the hangars' primary use;
2of15
a storing materials related to an aeronautical activity, e.9., balloon and skydiving equipment, office equipment, teaching tools, and materials related to ancillary or incidental uses that do not affect the hangars' primaryuse; storing non-aeronautical items that do not interfere with the primary aeronautical purpose of the hangar, e.9., televisions and furniture;or parking a vehicle at the hangarwhile the aircraft usually stored in that hangar is flying, subject to local airport rules and regulations.
(b) LESSEE shall not do or permit any act or thing to be done upon the premises which is in conflict with the Federal Aviation Administration's Hangar Use Policy which is incorporated herein by this reference and as amended from time-to-time, or locally adopted hangar use policy, if any, and as adopted or amended from time-to-time hereafter, which is incorporated herein by this reference. ln the event any of LESSEE'S uses are for commercial activities as determined by LESSOR in its sole discretion, LESSEE shallfirst obtain a business license from LESSOR prior to conducting any such commercial activity. Additionally, LESSEE shall not permit any act or thing to be done upon the premises which constitutes a nuisance or which may disturb the quiet enjoyment of LESSOR or any tenant of LESSOR on adjacent or neighboring property. LESSEE shall abate or cure any non-permitted use or nuisance on the demised premises or for which LESSEE is responsible within ten (10) days after written notice thereof from LESSOR. In the event LESSEE has not taken corrective action within ten (10) days, LESSOR may take any action necessary to abate or cure such condition at LESSEE'S sole cost and expense, without further written notice and LESSOR will use its reasonable best efforts to limit the physical damage incurred to hangar or property to cure such condition. LESSOR shall have no liability to LESSEE therefore nor for any damages to the premises or to the hangar or to propefi therein or thereon. (c) Notwithstanding the foregoing, if any such nuisance creates, in LESSOR'S reasonable determination, a condition immediately hazardous to health or safety, LESSOR may immediately, without written notice to LESSEE, enter the premises to abate or cure the condition at LESSEE'S sole cost and expense and LESSOR will use its reasonable best efforts to limit the physical damage incurred to hangar or proper$ to cure suchcondition.
(d) The demised premises shall not be used for residential purposes and neither LESSEE nor any principal, employee, or representative of LESSEE shall live or reside on the demised premises or any structure or hangarthereon nor shall LESSEE allow the demised premises or any 3of15
structure or hangar thereon to be used for living or residential purposes. The determination of weather someone is living or resided on the demised premesis or structure thereon shall be made by the LESSOR in its sole and absolute discretion.
7. CONDITION OF PREMISES:
LESSEE has inspected the demised premises and knows the extent and condition thereto and accepts same in its present condition, as is, subject to and including all defects, latent and/or patent.
8. SAFETY:
Any area that is within the control of the LESSEE at the airport shall be kept clear of accumulation of oil, grease, fuel, trash and debris which are potential fire, environmental, or safety hazards, and LESSEE shall comply with all local, state and federal laws, statutes, rules and regulations with regard thereto. LESSOR shall maintain undeveloped grounds adjacent to demised property in a condition consistent with current city and county firecode.
9. ALTERATIONS:
LESSEE shall not construct any improvements or make any alterations of any kind (whether permanent or otherwise) on the demised premises without the written consent of the City Manager or designated representative first being obtained. Additionally, all federal, state, and local building regulations must be complied with for any improvement or alteration to buildings or structures on the premises.
10. SIGNS:
LESSEE shall not construct or place or permit to be constructed or placed, signs, awnings, marquees, or other structures projecting from the exterior of the premises without LESSOR'S prior written consent thereof. LESSEE further agrees to remove signs, displays, advertisements, or decorations it has placed or permitted to be placed on the premises, which, in LESSOR'S opinion are offensive or otherwise objectionable. lf LESSEE fails to remove such signs, disptays, advertisements or decorations within ten (10) days after having received written notice to remove same from LESSOR, LESSOR reserves the right to re-enter the premises and remove them at LESSEE'S expense.
11. UTILITY EXTENSION OR MODIFICATION:
LESSEE shall pay any and all expenses that may beincurred in obtaining the extension of public utility services to the demised premises from existing facilities or any modification of same. 4 of 15
12. UTILITIES:
LESSEE agrees to pay during the term of this Lease, or any holding over, all utilities used by LESSEE. The term "utilities" as used herein shall include, but is not limited to, gas, electricity, water, sewer, telephone, and trash and refuse disposal service.
13. MAINTENANCE:
LESSEE agrees to provide maintenance, repair, and upkeep on any structures situated on the demised premises and grounds around the structures in a good, clean, sanitary and safe condition.
14. FAILURE TO REPAIR:
In the event LESSEE shall fail, neglect, or refuse to commence the repair or maintenance work required herein within thirty (30) days after receipt of a written notice service by LESSOR, or in the event that LESSEE fails, neglects or refuses to pursue said repair or maintenance work with reasonable diligence to completion, LESSOR may perform or cause to be performed such repair or maintenance work and add the cost thereof to the installments of rent due for this Lease as a charge to LESSEE. !f such repair is determined by the LESSEE to be economically unfeasible, either party shall have the option of terminating the agreement with LESSEE, and at LESSES'S cost, returning the demised property to its original pre-agreementcondition.
15. SALE OR REMOVAL OF IMPROVEMENTS:
14 Unless otherwise agreed upon by the parties hereto, if LESSEE desires to sell or otherwise transfer any or all buildings, hangars and other improvements (the "lmprovements") made to or constructed and placed on the premises during or prior to the term of this Lease, or any extensions thereof, LESSOR shall have a right of first refusal (the "Right of First Refusal") to purchase the improvements and the LESSEE shall give LESSOR a notice in writing at least thirty (30) days before such sale or transfer of the terms of same (the "Lessee Notice"). Any sale or transfer or agreement to sell or transfer the lmprovements without LESSEE first complying with the requirements of LESSOR'S Right of First Refusal shall be void and, in addition thereto, shall constitute a breach and materialdefault of this Lease. lf LESSEE has received an offerto purchase the lmprovements that LESSEE is prepared to accept, the Lessee Notice shall contain a complete copy of the offer (the "Offe/'), or if LESSEE does not have any such Offer but nevertheless wishes to sell ortransferthe lmprovements to a third party, the Lessee Notice shall include all of LESSEE'S terms and conditions for such sale or transfer. Lessor's Right of First Refusal to purchase the lmprovements shall be under the same terms and conditions as described in the Lessee Notice. 5of15
The Lessee Notice shall be personally delivered or mailed to LESSOR by registered mail, return receipt requested. LESSOR shall have thirty (30) days from receipt of the Lessee Notice in which to exercise its Right of First Refusal (the "Exercise Period"). !f LESSOR wishes to exercise its Right of First Refusal, LESSOR shalldo so in writing to LESSEE priorto expiration of the Exercise Period, provided however that if the Exercise Period terminates on a weekend or holiday, the Exercise Period shall be extended to 11:59 PM (California time) on the next business day thereafter. ln the event LESSOR exercises its Right of First Refusal, LESSOR shall complete the purchase of the lmprovements within reasonable amount of time. lf LESSOR does not exercise its Right of First Refusal, LESSEE shall have the right, only for the next sixty (60) days, to complete the sale or transfer of the improvements to the offer or of the offer, or, if none, to any other third party under the same terms and conditions as described in the Lessee Notice, provided howeverthat if the sale or transfer is not completed within sixty (60) days of the expiration of the Exercise Period or if the terms and conditions of the sale or transfer are modified, then LESSOR'S Right of First Refusal shall be revived and LESSEE shall once again give LESSOR the Lessee Notice containing the terms and conditions or, if applicable, the revised terms and conditions of the sale or transfer and LESSOR shall have all rights with regard thereto previously described herein. LESSEE shall not place a lien or othenryise encumber the lmprovements as part of any sale or transfer without LESSOR'S prior written consent, which consent may be denied or conditioned in LESSOR'S sole and absolute discretion. lf a sale is completed during the term of this Lease, no assignment or subletting of this Lease or of the premises shall occur without compliance with Parag raph 24 and, additionally, LESSOR shall have the right to increase the rental to the rentalthen being charged by LESSOR for new aeronauticalground leases as then determined by LESSOR. Notwithstanding the foregoing, if the purchaser of the lmprovements requests a new Lease, LESSOR may, in LESSOR'S sole and absolute discretion, enter into a new Lease with thepurchaser. (b) lf at the termination of this Lease a new Lease has not been entered into by the parties or their successors, then LESSEE shall remove the lmprovements and all fixtures and contents therein no later than 30 days after the expiration of the Lease Term without unnecessary damage to the premises and during the 30 day period after expiration of the Lease Term LESSEE shall pay rental to Lessor as a holdover tenant pursuant to Paragraph 3 of this Lease. lf LESSEE does not effect such removal, LESSOR shall have the right to do so and LESSEE shall be obligated to LESSOR for the costs thereof; provided, however, that all right, title and interest in and to the 6of15
lmprovements without their removal may be acquired by LESSOR upon terms and conditions mutually agreeable to both LESSOR and LESSEE. Notwithstanding the foregoing, if LESSEE has failed to effect the removal as required herein and LESSOR and LESSEE have not agreed upon the terms by which LESSOR would acquire the lmprovements, LESSEE shall be in breach of this Agreement and LESSOR shall have all rights described in Paragraph 28 of this Lease with regard thereto.
16. COMPLIANCE WITH LAW:
LESSEE shall, at its expense, promptly comply with any and all laws, ordinanoes, rules, regulations, requirements and orders whatsoever, present or future, of the national, state, county, or city governments which may in any way apply to the use, maintenanoe, or occupation of, or operations on the demised property.
17. RIGHT OF INSPECTION:
LESSOR shall have the right to enter upon the demised premises at all reasonable times to inspect the premises and LESSEE'S operations thereon. LESSOR reserves all rights in and with respect to the premises, not inconsistent with LESSEE'S use of the premises as in the Lease provided, including (without limiting the generality of the foregoing) the right of LESSOR to enter upon the premises for the purpose of installing, using, maintaining, renewing, and replacing such underground oil, gas, water, sewer, and other pipelines, and such underground or aboveground telephone, telegraph, and electric power conduits or lines as LESSOR may deem desirable in connection with the development or use of the demised premises or any other property on the airport or in the neighborhood of the premises. LESSOR shall compensate LESSEE for any and all damage to LESSEE'S improvements and personal property caused by the exercise of the rights reserved in this paragraph.
18. INDEMNIFICATION:
LESSEE agrees to indemniff, defend (upon request by the LESSOR) and save harmless the LESSOR, its Council persons, agents, officers and employees, and each of them, from any and all losses, costs, expenses, claims, liabilities, actions, and damages, including liability for injuries to person or persons, or damage to property of third persons arising out of or in any way connected with (a) the LESSEE'S use, occupancy and/or operation of the demised premises during the term of this Lease or any holding over, and (b) the construction or the removal of any facilities or improvements on the demised premises during the term of thisLease or any holding over. The I of l-5
foregoing obligations of Lessee shall survive the expiration or earlier termination of this Lease.
19. WORKERS COMPENSATION:
LESSEE agrees to observe and obey the Workers' Compensation Act of the State of California as from time to time amended and will indemnify and save and hold harmless LESSOR from any and all liability hereunder.
20. LIABILITYINSURANCE:
LESSEE, in order to protect LESSOR, its agents, officers and employees, against all claims and liability for death, injury, loss, and damage as a result of LESSEE'S use, occupancy and/or operation of the demised premises or in a connection therewith, shall secure and maintain in force during the entire term of this Lease and covering all LESSEE'S operations and activities on the airport, a Comprehensive General Liability insurance policy in the amount of $1,000,000 with a reliable insurance carrier approved by the City and authorized to do such public liability and property damage insurance business in the State of California. Said policies of insurance:
(a) shallexpressly name LESSOR, Councilpersons, agents, officers, and employees as additional insured; and
(b) shall be primary insurance as regards any other valid and collectible insurance LESSOR possesses, and any other insurance that LESSOR may possess shall be considered excess insurance only: and
(c) shall contain a Severability of lnterest or cross liability clause, which is to say, such policy shall act as though a separate policy were written for each insured and additional named insured in the policy; and
(d) shall not be subject to cancellation and/or coverage reduction withoutthirty (30) day's priorwritten notice to LESSOR.
Within ten (10) days from the date of the Lease, LESSEE shall file with the City Manager a duly certified Certificate of lnsurance evidencing that the hereinabove mentioned public liability and property damage (and hangar-keeper liability, where applicable) provisions have been complied with, and setting forth that LESSOR, its councilpersons, agents, officers, and employees are named as additional insured. ln the event that LESSEE shall fail to obtain or thereafter maintain such policies or to furnish evidence thereof to LESSOR, LESSOR may, in LESSOR'S sole discretion, (1) procure the same, pay the premium therefore, and collect same with the next payment of rental due from LESSEE, or (2) tenninate this Lease pursuant to Paragraph 28 hereof. 8of15
21. TAXES AND ASSESSMENTS:
LESSEE agrees to pay all taxes and/or assessments levied by any governmental agency upon any interest acquired by LESSEE under the terms of this Lease. Providing further, that LESSEE is aware that certain possessory interests may be created by entering into this Lease and that LESSEE will be subject to the payment of property taxes levied on such interests.
22. LEASE SUBORDINATE TO AGREEMENTS WITH UNITED STATES
GOVERNMENT:
This Lease shall be subordinate to the provisions and requirements of any existing or future agreements between the LESSOR and the United States relative to the development, operation or maintenance of the Airport.
23. AERONAUTICALRESTRIGTIONS:
(a) There is hereby reserved to LESSOR for the use and benefit of the public a right of flight forthe passage of aircraft in the air space above the surface of the demised premises.
This public right of flight shall include the right to cause in said air space any noise inherent in the lawful operation of any aircraft used for navigation or flight through the said air space or landing at, taking off from, or operation on the TehachapiAirport.
(b) LESSEE shall not erect or permit the erection of any structure, building, or object of natural growth or other obstructions on the demised premises above the maximum elevation permitted by the Federal Aviation Administration. ln the event the aforesaid covenant is breached, same shall be deemed a nuisance and a material breach of this Agreement and City shal! have all rights described under Paragraph 6 (b) to abate the nuisance and City shall have all other rights and remedies available at law or inequity. (c) LESSEE shall not make use of the demised premises in any manner, which might interfere with lawful air navigation and communication, the landing or taking off of aircraft from Tehachapi Airport, or otherwise constitute an airport hazard. ln the event the aforesaid covenant is breached, LESSOR reserves the right to enter on the demised premises and cause the abatement of such interference at the expense of LESSEE. (d) LESSOR reserves the right to further develop or improve the landing area at the Tehachapi Airport as it sees fit regardless of the desires or views of LESSEE, and without interference or hind rance.
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(e) LESSOR reserves the right, but shall not be obligated to LESSEE, to maintain and keep in repair the landing area at the TehachapiAirport and all publicly owned facilities at the airport, together with the right to direct and control all activities of the LESSEE in this regard.
Provided, however, that in the event of the taxiways or runways at the airport are determined to be unfit for aeronautical use by the FAA or by LESSOR or by the Aeronautical Division of the California Department of Transportation, or the airport ceases to be operated as an airport, then this Lease may be terminated by LESSEE, at its option, by its giving of at least thirty (30) days written notice thereof LESSOR.
0 Nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the FederalAviation Act.
24. SUBLETTING:
(a) LESSEE shall not assign this Lease or sublet the premises, or any part thereof, without the prior written consent of the LESSOR, which consent shall not be unreasonably withheld but may be reasonably conditioned to include but not be limited to the following:
(D Any assignment or sublease shall be in writing and shall provide thatthe assignee or sublessee shall agree to and be bound by all of the terms and conditions of the Lease; (iD The assignee or sublessee shall secure and maintain in force during the entire term of such sublease or assignment a liability insurance policy or policies in conformity with the requirements of Paragraph 20, liability lnsurance, with respect to any aircraft hangered on the premises that are owned by sublessee or assignee or other third party; and (iiD A rental adjustment, which shall be, based on the rentalthen in effect by LESSOR for new aeronautical ground leases.
(b) ln the event of an attempted assignment or subletting in violation of the foregoing provisions, then in addition to any and all other rights and remedies available to it, the LESSOR may, at its option, by written notice to the LESSEE, either (1) declare such sublease, assignment, transfer, mortgage, or other conveyance void, or (2) terminate this Lease and all rights and interest of LESSEE and all other persons hereunder pursuant to Paragraph 28. Any consent by the LESSOR to any assignment or sublease, shall not be deemed or construed as a consent to any different or subsequent assignment or sublease. The remedies available herein are cumulative with all other remedies available under this Lease or at law or in equity and the exercise of any 10 of 15
remedy herein or under this Lease or at law or in equity shall not prevent the exercise of any other remedy provided herein or in this Lease or at law or in equity.
25. RIGHT OF INGRESS AND EGRESS:
LESSEE shall have the reasonable right-of-way over property owned andcontrolled by LESSOR for ingress thereto and egress there from for pedestrian, vehicular, and air travel, togetherwith the right to use in common with other LESSEE'S or licenses or LESSOR the airplane landing field adjacent to the demised premises. None of these rights are exclusive but shall be exercised in common with and subject to possible similar rights of other users of the airport. All the forgoing is subject to such reasonable rules and regulations as the LESSOR or its authorized agents may make from time to time. Such rules and regulations, however, shall be reasonable and shall not conflict in any way with simihr rules and regulations adopted from time to time by the Federal Aviation Ad m in istration or its successor.
26. BANKRUPTCY:
ln the event that (a) LESSEE shall file a voluntary petition in bankruptcy or shall be adjudged a bankrupt in any voluntary bankruptcy proceeding; (b) any voluntary or involuntary proceeding for the reorganization of LESSEE shall be instituted by anyone other than LESSEE under any of the provisions of the bankruptcy laws of the United States; or (c) a receiver or judicial trustee or custodian shall be appointed for LESSEE, or any lien or any writ of attachment, garnishment, execution or distrait shall be levied upon any LESSEE'S rights or interest under this Lease; or (d) there shall be any other assignment of any LESSEE'S rights or interests under this Lease by operation of law, then in addition to any and all other rights and remedies available to it, LESSOR may, at its option by written notice to LESSEE, terminate this Lease and all rights and interest of LESSEE and all other persons under this Lease. The term "LESSEE", as used in this paragraph, includes any individual, partnership, or corporation who is a LESSEE hereunder, even though several individuals, partnership, or corporations are such, and includes each partner of any partnership, which is LESSEE hereunder.
27. WAIVER OF BREACH:
The waiver by LESSOR of any breach by LESSEE of any provision contained herein shal! not be deemed to be a continuing waiver of such provision, or a waiver of any other prior of subsequent breach thereof, or a waiver or any breach ofany other provisions contained herein. 11 of l-5
28. BREAGH:
(a) In the event of a breach by LESSEE of any term, condition, or agreement herein contained, LESSEE shall have 30 days to cure the breach after written notice has been given to LESSEE by LESSOR, provided however that if any such breach cannot be reasonably cured within 30 days of such notice, then LESSEE sha!! have commenced reasonable efforts to cure same within said period. ln the event of LESSEE'S failure to cure or commence the cure of any such breach within 30 days this Lease and all privileges herein granted shall be terminated and be of no further force or effect, and LESSEE shall immediately surrender to LESSOR possession of the premises, and in addition to all other remedies available to LESSOR hereunder or at law or equity, LESSOR shall have the remedies either to remove the lmprovements on the premises at the expense of LESSEE or to retain the lmprovements and to thereafter be the sole and exclusive owner of same. Notwithstanding the foregoing, in the event LESSEE allows a nuisance to exist on the premises as described in Paragraph 6 of this Lease, LESSEE shall abate the nuisance as required therein and nothing herein shall be deemed to waive or modiff the requirements and remedies described in Paragraph 6. Providing further, that in the event LESSEE breaches this Lease and abandons the property before the end of the term, if LESSEE'S right to possession is terminated by LESSOR because of breach of this Lease, LESSOR shall have the right to recover damages from LESSEE as provided in the State of California Civil Code Section 1951.2.
(b) ln the event of a breach by LESSOR of any term, condition, or agreement herein contained, that deprives LESSEE in any manner, in whole or part, of its quiet enjoyment of the demised premises or its right to utilize them fully as described in Paragraph 6 hereof, or of its rights of ingress and egress described in Paragraph 25 hereof, LESSEE shall not be obligated to LESSOR for any rental payments otherwise due and payable for the period of such breach.
29. NEGATION OF PARTNERSHIP:
LESSOR shall not become or be deemed a partner or joint venture with LESSEE or in any other relationship with LESSEE other than that of landlord and tenant by reason of the provisions of this Lease nor shall LESSEE for any purpose be considered an agent, officer, or employee of LESSOR.
30. SURRENDER OF PREMISES:
On the last day of the term, or extension thereof, or sooner termination of this Lease, and subject to the rights and remedies of LESSOR and LESSEE described in Paragraph 15 hereof, 12 of 15
LESSEE shall peaceably and quietly leave, surrender and yield up to the LESSOR the demised premises in as good condition and repair as at the commencement of LESSEE'S occupancy, reasonable wear and tear thereof excepted.
31. ENTIRE AGREEMENT:
This Lease contains all agreements of the parties with respect to the subject matter described herein. No prior agreements or understandings whether oral or in writing pertaining to any such matter shall be effective or of any force or effect.
32. VENUE AND GOVERNING LAW:
This agreement is made, entered into and is to be performed in Kern County, California. This Lease shall be governed by and construed in accordance with the laws of the State of California.
33. COVENANTS AND GONDITIONS:
Each provision of this Lease performable by LESSEE shall be deemed both a covenant and a condition.
34. TIME OF THE ESSENCE:
Time is hereby expressly declared to be the essence of this Lease and of each and every provision thereof, and each such provision is hereby made and declared to be a material, necessary and essential part of this Lease.
35. SEVERABILITY:
lf any provision of this Lease is determined by a Court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall in no way be affected thereby and same shall remain in full force and effect.
36. AUTHORIZED AGENT OF LESSOR:
The City Manager of the City of Tehachapi is the duly authorized agent of LESSOR for purposes of this Lease, and as to any obligations assumed herein by LESSEE, they shall be performed to the satisfaction of the City Manager.
37. NOTICES:
All notices required or permitted under this Agreement or at law shall be deemed to be given when personally served on the party to be noticed or when deposited in the United States mail, Registered or Certified, postage prepaid and addressed asfollows:
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TO LESSOR: City Manager
City of Tehachapi
1 15 South Robinson Street
Tehachapi, CA 93561
TO LESSEE Benito & Cora Gutierrez
17800 Tejon Dr
Tehachapi, CA 93561
661-282-0157 (Benny)
661-282-0153 (Cora)
g [email protected]
[email protected]
Any pafi may change its or their address by providing notice of same in the manner herein prescribed.
38. BINDING:
This Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors, and assigns.
39. CAPTIONS:
The captions appearing in this Lease are for convenience only, are not part of this Lease and shall not be considered in interpreting this Lease.
40. AMENDMENTS:
This Lease may not be altered, amended, or modified except by a writing executed by duly authorized representatives of all parties.
41. ATTORNEY'S FEES:
ln the event any action or proceeding is instituted arising out of or relating to this Lease or for the purpose of enforcing this Lease, the prevailing party shall be entitled to its reasonable attorney's fees and actual costs.
42. RECORDATION:
LESSEE acknowledges its understanding that the law of the State of California authorizes LESSOR to record this Lease or a memorandum of same. ln that regard, LESSEE agrees to execute a memorandum of this Lease forthe purposes of recordation in such reasonable form and content as may be proposed byLessor.
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43. COUNTERPARTS:
This Lease may be executed in counterparts and the respective signature pages for each party may thereafter be attached to the body of this Lease to constitute one integrated agreement which is as fully effective and binding as if the entire Lease had been signed at one time.
lN WTNESS WHEREOF, the parties have hereunto set their hands the day and year first above written.
LESSOR: LESSEE:
CITY OF TEHACHAPI Benito or Cora Gutierrez
By
Michael Davies
Mayor
City of Tehachapi, California
Aircraft lnformation
N12745 Cessna 172
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TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 4,2024 AGENDASECTION: DEVELOPMENTSERVICES TO: HONORABLE MAYOR DAVIES AND COUNCIL MEMBERS
FROM: JOHN (JAY) SCHLOSSER, P.E., DEVELOPMENT SERVICES DIRECTOR DATE: FEBRUARY 27,2024
SUBJECT: BRENTWOOD PEDESTRIAN FACILITIES PROJECT. AWARD BACKGROUND:
The City of Tehachapi successfully pursued and received funding through the Transportation Development Act, Article 3 Program for the TDA Brentwood Sidewalks Project, with no required match from the City.
After an initial bid attempt in September 2023, which was unsuccessful, the Council instructed staffto rescope the project. Advertising for a second bid began on January 26,2024. Staff opened bids for this project on February 27 ,2024. The results of the bid opening are listed in the table below:
Contractor Name Bid Amount
CEN-CAL CONSTRUCTION s223,585.00
RC BECKER & SON s285,335.55
DOD CONSTRUCTION s331,156.00
GRANITE CONSTRUCTION S4o9,72o.oo
RESPONSIVE NESS REVIEW:
ln compliance with the Public Contract Code, City Staff undertook a review of the bids received to confirm that the apparent low bidder provided a responsive bid. The bid provided by Cen-Cal Construction has been deemed to be responsive.
CITY OF
FISCAL IMPACT:
This project is budgeted in FY 202312024 using TDA article 3 funds. The grant funds available for this project (including design, environmental, construction and construction administration)total 5284,750.lncluding contingency, staff expects to complete the entire project with a budget of 5360,000 requiring approximately 575,000 in Measure S funds.
RECOMMENDATION:
AWARD THE BRENTWOOD PEDESTRTAN FACTLTTIES PROJECT (BASE BID PIUS AtL ADDTTIVES) TO CEN-CAL CoNSTRUCTION !N THE AMOUNT OF $223,585.00. AUTHORIZE THE CrTY MANAGER TO APPROVE ANY NECESSARY CHANGE ORDERS Up TO A MAXTMUM OF LO% OF THE ORIGINAI CONTRACT (OR $ 22,358.001.
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Legend
Pro]ect locatron
Brentwood Drive Pedestrlan Facilities ProJect
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