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 3, 2025 - 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
POLICE CHIEF REPORTS
1. Promotion of Tehachapi Police Department Sergeant Ryan Hulse - PRESENTATION
COMMUNITY ENGAGEMENT DIRECTOR REPORTS
2. 2025 Tehachapi’s Extraordinary Women Recognition – PRESENTATION
CONSENT AGENDA
3. 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 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.
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 3, 2025 - 6:00 P.M. - PG. 2
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.
4. 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. 02-25
Tehachapi City Council Unassigned Ord. No. 25-01-779
Tehachapi Redevelopment Successor Agency Unassigned Res. No. 01-25 Tehachapi Public Financing Authority Unassigned Res. No. 01-25 * 5. 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 18, 2025 – APPROVE AND FILE
FINANCE DIRECTOR REPORTS
* 6. Disbursements and bills for February 12, 2025 through February 25, 2025 - AUTHORIZE PAYMENTS * 7. City of Tehachapi Treasurer’s Report through January 2025 – RECEIVE REPORT
8. Fiscal Year End 2024 Financial Reports – PRESENTATION
9. 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 – 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 3, 2025 - 6:00 P.M. - PG. 3
CITY MANAGER REPORTS
10. 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 18, 2025 – 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
City of Tehachapi, et. al v. Tehachapi-Cummings County Water District (2 cases)
4. 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 3,2025 AGENDA SECTION: COMMUNITY ENGAGEMENT CIW MANAGER:
APPROVED
DEPARTMENT
TO: HONORABLE MAYOR POGON-CORD AND COUNCIL MEMBERS
FROM: Mya Acosta, Community Engagement Specialist
DATE: February 25,2025
SUBJECT: Tehachapi's Extraordinary Women Recognition
ln honor of Women's History Month, the Community Engagement Department is eagerto introduce the six women selected to be this year's Tehachapi's Extraordinary Women. We received 115 nominations and after deliberation amongst our Extraordinary Women committee, we are proud to share the amazing work these women have done in our community and their outstanding character. 2025 Extraordinary Women :
Carrie Morgan: After 20 years in the Air Force, retiring as a Senior Master Sergeant, she now serves as Senior Vice Commander of VFW Post 5948, tirelessly supporting local veterans. She led vital VFW building upgrades, organizes monthly food and coat drives, and collaborates with 5150 Dieselz on fundraisers like Wreaths Across America and RED Friday. Committed to youth enrichment, she secures sponsorships for sports programs such as Gryphons FC and Nomad Wrestling. Her hands-on generosity is evident-she rallied a work party to repair a veteran's abandoned roof project and personally helped fix another's deteriorating steps. "Carrie is the embodiment of this generation's strong, leading American woman," said William Halverstadt. "She is the epitome of extraordinary," added Jessica Klaphake.
Gale Caldwell: Currently serving her 12th term as President of the Tehachapi Valley Arts Association (TVAA), Gale has dedicated over 20 years to supporting local art through TVAA, the Tehachapi Art Foundation, and Gallery N' Gifts. "Gale's effective communication, empathetic nature, and integrity are the reasons the store and gallery continue to succeed," said Jeanette Pauer. She spearheads the Makers Markets, coordinates vendor fairs for Tehachapi's July 4th Festival and Bear Valley Springs Holiday Bazaar, and fosters young artists through events like Chalk on the Walk, which provides scholarships and art supplies. Under her leadership, TVAA adopted the Make Art Tehachapi nonprofit to support restoration efforts. "Her love for Tehachapi and its art is limitless," Pauer added.
Chris Morales: Owner of the newly opened White Rabbit Studios, real estate agent with Platinum Realty Group, and dedicated Tehachapi Community Theatre Association (TCTA) volunteer, Chris has been deeply involved in the arts since movingto Tehachapi in 2006. Since joining TCTA in 2074, she has directed, produced, and acted in numerous plays. During the pandemic, she kept local theater alive by streaming The Late-Night Talk Show Telethon and later launched T-Town Tonight, an annual talent showcase benefiting charity. From 2020-2024, she served as TCTA's Executive Director. White Rabbit Studios offers a range of creative classes, including acting, improvisation, music, dance, puppetry, ASL, and yoga. "She puts 200% into every journey she embarks on," said one nomination. "She is a mover, motivator, and the one to make things happen!" Donna Sullivan Dieterle: A lifelong Tehachapi resident, Donna's dedication to education, history, and community service has left a lasting impact. A Tehachapi High valedictorian and Homecoming Queen, she later served as a beloved counselor, teacher, and administrator. As Vice President of the Tehachapi Heritage League, she is a driving force behind the Tehachapi Museum, preserving local history through exhibits, fundraising, and volunteer work. She also honors the past through the Fallen Warriors project and Old Timers Picnic. Beyond history, Donna serves as an election poll clerk, volunteers at the Tehachapi Visitors Center, and creates comfort quilts for those in need. Known for her kindness and tireless dedication, she embodies the heart and spirit of Tehachapi-always working behind the scenes to make a difference.
Lynn Eckert: Lynn's service includes five years in the U.S. Marines and work as a drug and alcohol counselor. As Commander of Tehachapi American Legion Post 221, she advocates for veterans and the community. Lynn is also an Outreach Specialist for Kern County Honor Flight, ensuring veterans get the chance to visit D.C. and the war memorials. She has helped organize Tehachapi's Veterans Day Event and spearheaded the Memorial Bench for Tehachapi MIA Gilbert Mitchell. She also chairs TOPS lTake off Pounds Sensibly), supports healthy living, and generously helps those in need.
Cheryl Johnson: As a longtime foster mom, she cared for countless children, including those with special needs, while raising her own. Today, she and her husband, Ted, serve as Trail Angels, welcoming and assisting Pacific Crest Trail hikers from around the world with meals, rides, and a warm place to stay-often maintaining lifelong friendships. She leads the Comfort Quilts charity, organizing workshops to create quilts for cancer patients, veterans, disaster victims, and many others in need. Always the first to help a friend, Cheryl never stopped giving-even while battling cancer. "She is the first person to step up when a friend needs help with anything they need," said Maureen Kelly.
These five women represent various aspects of the wide spectrum of involvement in our community. We commend them all for their 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 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
TUESDAY, FEBRUARY 18, 2025– 6:00 P.M.
NOTE: Sm, Da, Pa, Ch and Po are abbreviations for Council Members Smith, Davies, Pauer, Chung, and Pogon-Cord, respectively. For example, Pa/Sm denotes Mayor Pro Tem 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 Pogon-Cord at 6:00 pm
ROLL CALL
Roll call by City Clerk Tori Marsh
Present: Mayor Pogon-Cord, Mayor Pro Tem Pauer, Councilmember Smith, Councilmember Davies
Absent: Councilmember Chung
INVOCATION
Led by Pastor Mike Safford, Tehachapi Vineyard Church
PLEDGE TO THE FLAG
Led by Councilmember Davies
POLICE CHIEF REPORTS
1. Swearing in of Tehachapi Police Officers Jordan Cooper and Elizabeth Narvaez -
OATH OF OFFICE AND BADGE PINNING CEREMONY
2. Recognition of Tehachapi Police Department Employee of the Quarter Police Dispatcher Robin Mathiasen – PRESENTATION
3. CONSENT AGENDA Approved
Sm/Da Motion Carrried
Ab Ch
Tehachapi City Council Regular Meeting – February 18, 2025 Tehachapi Redevelopment Successor Agency Regular Meeting Tehachapi Public Financing Authority Regular Meeting And Tehachapi City Financing Corporation Regular Meeting ACTION TAKEN
AUDIENCE ORAL AND WRITTEN COMMUNICATIONS
4. Public comment
CITY CLERK REPORTS
* 5. Minutes for the Tehachapi City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority, and the Tehachapi City Financing Corporation regular meeting held on January 21, 2025 – APPROVED AND FILED Approved And Filed
Sm/Da Motion Carried
Ab Ch
FINANCE DIRECTOR REPORTS
* 6. Disbursements and bills for January 14, 2025 through February 11, 2025 -
AUTHORIZED PAYMENTS
Authorized Payments
Sm/Da Motion Carried
Ab Ch
* 7. City of Tehachapi Treasurer’s Report report through December 2024 – RECEIVED REPORT
Received Report
Sm/Da Motion Carried
Ab Ch
COMMUNITY ENGAGEMENT DIRECTOR REPORTS
8. Mayor to present a Proclamation to the Kern County Health Department for Safe Surrender Baby Awareness Month - PRESENTATION
9. Shop to a Tee Program – INFORMATION ONLY
DEVELOPMENT SERVICES DIRECTOR REPORTS
* 10. Adoption of CEQA Determination for 2025-2026 Measure S Pavement Rehabilitation Project – ADOPTED THE CEQA CATEGORICAL EXEMPTION AND DIRECTED STAFF TO FILE NOTICE OF EXEMPTION FOR THE 2025-2026 MEASURE
S PAVEMENT REHABILITATION PROJECT
Adopted The Ceqa Categorical
Exemption And Directed Staff To
File Notice Of Exemption For The
2025-2026 Measure S Pavement
Rehabilitation Project
Sm/Da Motion Carried
Ab Ch
* 11. Adoption of CEQA Determination for Rock Pile Communications Improvement Project – ADOPTED THE CEQA CATEGORICAL EXEMPTION AND DIRECTED STAFF
TO FILE NOTICE OF EXEMPTION FOR THE ROCK PILE COMMUNICATIONS
IMPROVEMENT PROJECT
Adopted The Ceqa Categorical
Exemption And Directed Staff To
File Notice Of Exemption For The
Rock Pile Communications
Improvement Project
Sm/Da Motion Carried
Ab Ch
12. Rodeo Grounds Entrance Fencing and Landscaping Project Award – DEVELOPMENT SERVICES DIRECTOR JAY SCHLOSSER GAVE STAFF REPORT;
AWARDED THE RODEO GROUNDS ENTRANCE FENCING AND LANDSCAPING PROJECT TO YUKON FENCE IN THE AMOUNT OF $48,998.80. AUTHORIZED THE
CITY MANAGER TO APPROVE ANY NECESSARY CHANGE ORDERS UP TO A MAXIMUM OF 20% OF THE ORIGINAL CONTRACT (OR $9,799.76)
Awarded The Rodeo Grounds
Entrance Fencing And
Landscaping Project To Yukon
Fence In The Amount Of
$48,998.80. Authorized The City
Manager To Approve Any
Necessary Change Orders Up To
A Maximum Of 20% Of The
Original Contract (Or $9,799.76)
Sm/Pa Motion Carried
Ab Ch
Tehachapi City Council Regular Meeting – February 18, 2025 Tehachapi Redevelopment Successor Agency Regular Meeting Tehachapi Public Financing Authority Regular Meeting And Tehachapi City Financing Corporation Regular Meeting ACTION TAKEN
PUBLIC WORKS DIRECTOR REPORTS
* 13. 2025 FORD Explorer purchase – APPROVED THE PURCHASE OF THE 2025 FORD
EXPLORER AND AUTHORIZED THE CITY MANAGER TO SIGN THE PURCHASE AGREEMENT WITH A TOTAL ONE-TIME COST OF $44,403.14
Approved The Purchase Of The
2025 Ford Explorer And
Authorized The City Manager To
Sign The Purchase Agreement
With A Total One-Time Cost Of
$44,403.14
Sm/Da Motion Carried
Ab Ch
CITY ATTORNEY REPORTS
* 14. The attorney’s Spring conference for the League of California Cities is scheduled for May 7-9, 2025. The registration fee is $650.00 and a hotel room for 2 nights is $229.00. If approved by the City Council, the City’s share of the registration fee and hotel room would be $554.00 – APPROVED THE CITY’S SHARE OF THE COST FOR THE CITY ATTORNEY TO ATTEND THE LEAGUE OF CALIFORNIA CITIES’
SPRING CONFERENCE
CITY MANAGER REPORTS
15. Report to Council regarding current activities and programs – VERBAL REPORT
COUNCILMEMBER REPORTS
CLOSED SESSION
1. Closed Session minutes of December 16, 2024 – APPROVE AND FILE Approved And Filed Pa/Sm Motion Carried
Ab Ch
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
City of Tehachapi, et. al v. Tehachapi-Cummings County Water District (2 cases)
4. 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
The City Council/Boards adjourned at 6:49 pm to a City Council, Tehachapi Redevelopment Successor Agency, Tehachapi Public Financing Authority and Tehachapi City Financing Corporation Regular Meeting to be held on March 3, 2025 at 6:00 pm.
Adjourned At 6:49 pm
Tehachapi City Council Regular Meeting – February 18, 2025 Tehachapi Redevelopment Successor Agency Regular Meeting Tehachapi Public Financing Authority Regular Meeting And Tehachapi City Financing Corporation Regular Meeting ACTION TAKEN
__________________________________
TORI MARSH, CMC
City Clerk, City of Tehachapi, California
Approved this 3rd day
of March 2025.
___________________________
JOAN POGON-CORD
Mayor, City of Tehachapi, California
Accounts Payable CI TY OF
Checks by Date - Detail by Vendor Number TEHACHAPI User:
Printed:
afrescas
2/25/2025 7:56 AM
Check No Vendor No
Invoice No
ACH 0017
786035
ACH 0061
0108729
AI03877
AI04155
ACH 0182
9231
9244
ACH 0300
523287087
523287088
523332086
523332087
ACH 0332
PC21925-A
PC21925-B
PC21925-C
PC21925-D
PC21925-E
PC21925-F
PC21925-G
PC21925-H
PC21925-I
Vendor Name
Description
American Business Machines
PD/Printer Toner
Check Date
Reference
C A L
Total for this ACH Check for Vendor 0017:
Total for Vendor 0017 (American Business Machines):
BSK Associates
Swr/Ground Water Monitoring
Wtr/Drinking Water Samples
Wtr/Drinking Water Samples
Total for this ACH Check for Vendor 0061:
Total for Vendor 0061 (BSKAssociates):
P&J Electric Inc.
Swt/WWTP RAS Disconnect
PW Sprinklers at Rodeo Grounds
Total for this ACH Check for Vendor 0182:
Total for Vendor 0182 (P&J Electric Inc.):
Mission Linen & Uniform Service
PW /Linen Main I/Mats
Swr/WWTP Mats
PW /Linen Maint/Mats
Swr/WWTP Mats
Total for this ACH Check for Vendor 0300;
Total for Vendor 0300 (Mission Linen & Uniform Service):
Petty Cash
UPS Store - Fingerprints
Home Depot - Special Supplies
UPS Store - Fingerprints
City Hall - American Flag
Rite Aid - Watering Cans
Home Depot - American Flag
Walgreens - Photo
UPS Store -Fingerprints
UPS Store - Fingerprints
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AM)
F O R N A
Check Amount
15.00 15.00
15.00 1,410.00
95.05 30.00
1,535.05
1,535.05
259.64
589.63
849.27
849.27
247.65
42.69 286.23
42.69 619.26
619.26
25.00 8.60
25.00 25.00
16.22 26.85
2.42 35.00
25.00
Check No !'endor No
Invoice No
Vendor Name
Deicriptiod
Check Date
Reference
Check Amount
TotaL for this ACH Check for Vendor 0332:
Total for Vendor 0332 (Petty Cash c/o Christie Copus):
Quinn Company
PWIE-217 Pilot CoDtsol Repai
Total for this ACH Check for Vendor 0347:
Total for Vendor 0347 (Quinn Company):
189.09
189.09
2,58'7.16
ACH 034?
wo08009r518
0362
04t0't76
RSI Petoleurn Products
Pwrunleaded Gas
2,587.16
ACH
2,581.t6
3,163.22
Total for this ACH Check for Vendor 0362:
Total for Vendor 0362 (RSI Petoleum Products):
Southem Califomia Edison
Smt80009?3948/113 S Mojave SiDec l9 2024
PW800 I 1 15 13 8/ I 14 S Greetr SdDec 19 2024-J,
Strts/800237 1967/ I 002 w Tehachapi Blvd A,/De
Sfts/8002386384/1002 W Tehachapi Blvd B/De
Strts/8002515179/Tehachapi-Tucker/Jan 2025
Swr/8003 8 86514/Tehachapi BLtDec 24 2024Jan
Sms/8002457897/800 S Curryran 2025
Srrts/8002748942neh Blvd-DeDrison Rd{an 20
Strts/80025 I 5750^,tulb€rry-Brcntwood/Jan 202:
Sfis/8000952476,^r'alley Bl-Mulberry SVJan 20i
Strts/800282?E01/2000 Megellan Dr/Jan 2025
LLD/80046E0470/1002 Applewwod St Pmp Sb!
LLD/80028293 11 lMa'lzanite-GrceD/Jatr 2025
Gcla'l24gomi 1420 W Valley Blvd Ped./Jan 4-I
Sfts/80027 77497 lcoodnck Dr-DsD.oisoD,Oan 20
LLD / 80028 525 n tehachapi Blvd-Bailey Ave[€
Wtr/8000641860n299 S Curry St-Minton Welyl
Sms/8002504580/DeDnison-Brctt Ave[ar 2025
Strts/8003354214/303 East Ave D/Jan 2025
Wtr/800 I I 1965l/Curry WelVIan 4-Eeb 2 2025
Wtr/8000488189/Pinon WelUJat 4-Feb 2 2025
Strts/6002 8003 E4lTucke t-V^lley/lan 2025
Strty8002826534/710 W Tebachapi Blvd/Jar 20
Stts/8002503365/Teh Bl-Dennison/Jan 2025
Stfts/80001 I 7087,4lighrvay 2O2/Ian 2025
LLD/80002933a3/1347 Clasico fh P€dtan 4-Fe
LLD/8000296695/1 I I 5 Alder Ave Ped.Oan 4-Fet
LLD/800030204E/1415 Aldcr Ave Pedoan 4-Fet
LLD / 8O0 4243204 lE T ehachapi Bl-Steuber RdJa
LLD/8002843239/Dennison-Pinon St/Jan 2025
Strs/8002489190/213 West I St an 2025
Strtv80025021o3,4lighlide & Cluaryfian 2A5
Stns/80024E6668Mi11 St Vo E SVJa! 2025
Str1V8003326795/326 Easi D Sy'Jatr 2025
strts/8000489050/TR 2995 Oakwood-Valley/Jab
Strtv800l 91691 5n 00 W Tehachapi Blvd #B/D€
3,163.22
ACH 0372
0t2t2025
012r202s-A
02032025
02032025-A
02032025-B
02032025-C
02032025-D
02032025-E
02032025-F
02032025-G
02032025-H
02032025-l
02032025-t
02032025-K
02032025-L
02032025-M
02032025-N
02032025-O
02032025-P
02o32t2s-Q
02032025-R
02032025-S
02032025-T
02032025-U
02032025-V
02032025-W
02032025-X
02032025-v
02032025-Z
0203202s-zA
02032025-ZB
02032025-ZC
02032025-ZD
02032025-ZE
02032025-ZF
02032025-ZG
3,163.22
92.80 84.44
93.39 4t.47
363.64
11.02 115.96
89.76 69.93
155.88
249.Q3
332.60
1.51 262.57
101.26
2,542.50
54.33 2t.28
5,134.03
3,024.t3
176.E9
204.16
t9.5E
71.02 39.24
15.55 63.29
1,494.77
't4.44
19.58 14.44
37.82 t53.',77
99.94 A? Checks by Date - Detail by Veador NrErber (2/25/2025 7t56 l\ND Page 2 Check No Vendor No
Invoice No
02032025-ZH
02032025-Zl
02032025-ZJ
02032025-ZK
02032025-ZL
02032025-ZM
02032025-ZN
02032025-ZO
02032025-ZP
02032025-ZQ
02032025-ZR
02032025-ZS
02032025-ZT
02032025-ZU
02032025-ZV
02032025-ZW
02042025
02052025
02052025-A
02052025-B
02052025-C
02072025
02102025
02132025
02142025
02142025-A
02142025-B
02142025-C
C-01022025
ACH 0395
ACH
ACH
GAS021425
GAS021425-A
GAS021425-B
GAS021425-C
GAS021425-D
0399
4365880 020125
4365880 020125A
4365880 020125B
0431
0125109028
Vendor Name Check Date
Description Reference
Strts/8001941899/101 West F St/Dec 4 2024-Jan
LLD/8002452549/fr 2995 Oakwood/Jan 2025
Strts/8002452549/Tr 2995 Oakwood/Jan 2025
Strts/8002817959/Tucker Rd-Hwy202/Jan 2025
Strts/8002454554/Mill & J St/Jan 2025
Strts/8003094036/H St-Green St/Jan 2025
LLD/8000679393/TR 45361 Mulberry/Jan 2025
Strts/8002485759/Mill & J St/Jan 2025
Str ts/8002738103/F St e/o Mulberry/Jan 2025
LLD/8002841917 /Pinon St-E Orchard-Curry St/.
LLD/8004033054/Mill St-D St/Jan 2025
Strts/8002844782/Valley Bl w/o Dennis on/Jan 21
PW/8000691540/800 Enterprise/Jan 2025
PW/8002992907/800 Enterprise Shop/Dec 16 2C
Swr/8003327285/800 Enterprise Facility/Dec 16
Strts/80023974881Tehachapi-Dennison/Jan 2025
Wtr/80046280731129 Brentwood Dr (Well)/Jan,
Swr/8003048390/755 Steuber Well (Borrow Pit),
Air/8002672984/415 N Dennison/Jan 7-Feb 4 2C
Wtr/8004425404/126 S Snyder Ave (Well)/Jan 7
Drain/8001115579/409 Bailey Ave (Storm Wtr)/.
Wtr/8001340514/358 East D St (Mojave Well)/J:
Wtr/8004425233/NW Comer Anita-Denni son/fa
Strts /8003135063/800 S Curry St #A/Jan 14-Feb
PW/8001026848/101 ColTUllercial Way/ Jan 15-F
GG/80033546521115 S Robinson St/Jan 15-Feb
DSD/8003367862/117 S Robinson St/Jan 15-Fet
Air/8001037981/409 Bryan Ct/Ja n 15-Feb 13 20
Strts/8002485759/Mill & J St/Jan 2025 (Correcti
Total for this ACH Check for Vendor 0372:
Total for Vendor 0372 (Southern California Edison):
The Gas Company
Police Dept #12851696026 /Jan 14-Feb 12 2025
City Hall #06551704007/Jan 14-Feb 12 2025
Annex #00881702005/Jan 14-Feb 12 2025
Allport #01091699981/Jan 14-Feb 12 2025
Visit orCtr#I0561664466/Jan 14-Feb 12 2025
Total for this ACH Check for Vendor 0395:
Total for Vendor 0395 (The Gas Company):
Spark!etts
Swr/Hot/Cold Water Dispenser
Wtr/Hot/Cold Water Dispens er
PW /Hot/Cold Water Disp enser
Total for this ACH Check for Vendor 0399:
Total for Vendor 0399 (Sparkletts):
The Tehachapi News
TVRPD Appointment
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AM) Check Amount
193.37
337.59
9,441.78
208.94
90.55 175.30
72.38 110.58
314.11
398.80
141.88
534.58
65.03 215.85
1,012.59
153.87
2,568.18
104.93
55.06 94.02
36.02 1,881.53
3,105.34
81.20 68.27
1,555.44
430.43
288.07
0.03 39,136.44
39,136.44
1,040.94
416.97
244.80
215.75
20.11 1,938.57
1,938.57
31.04 31.04
31.05 93.13
93.13 97.00
Page3
Check No Vendor No
Invoice No
0125109028-A
0125109028-B
0125109028-C
ACH 0450
INV00593461
ACH 0476
354348
354348-A
354348-B
354763
358075
358080
ACH 1286
60156
60197
60293
60343
60397
60485
60486
60612
ACH 1321
149408
ACH 1507
P42554
P42554-A
P42554-B
Vendor Name
Description
Planning Comm Appointment
Rodeo Grounds Fencing
Transit Needs
Check Date
Reference
Total for this A CH Check for Vendor 0431:
Total for Vendor 0431 (The Tehachapi News):
HD Supplies Inc.
Wtr/Well Site CL2 Pumps
Total for this ACH Check for Vendor 0450:
Total for Vendor 0450 (HD Supplies Inc.):
WITTS Everything for the Office
PW /Office Supplies
Wtr/Office Supplies
Swr/Office Supplies
GG/Spine Combs/Copy Paper/ Tape/Pens/Steno
GG/Copy Paper
GG/Envelopes
Total for this ACH Check for Vendor 0476:
Total for Vendor 0476 (WITTS Everything for the Office):
M&M's Sports Uniforms & Embroidery
PD/Patrol Uniforms
PD/Patrol Uniforms
PD/Stripes
PD/Uniforms
New Artwork Fee
PDNolunteer - Polo Shirt
PD/Uniform Jackets
PD/Cherron Stripes
Total for this ACH Check for Vendor 1286:
Total for Vendor 1286 (M&M's Sports Uniforms & Embroidery):
Culligan Water Conditioning
PD/Water Delivery Jan 1 0 2025
Total for this ACH Check for Vendor 1321:
Total for Vendor 132 l (Culligan Water Conditioning):
Berchtold Equipment Company
PW/E-223 Glass
Wtr/E-223 Glass
Swr/E-223 Glass
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AM) Check Amount
137.00
501.00
76.00 811.00
811.00
474.48
474.48
474.48
95.10 95.10
95.10 424.23
34.62 45.45
789.60
789.60
447.20
447.20
52.48 709.72
428.96
58.97 175.69
69.28 2,389.50
2,389.50
206.00
206.00
206.00
113.23
113.22
113.22
Page4
Check No Vendor No l'endor Name Check Date
Reference
Check Amount
Invoice No Description
Total for this ACH Check for Vendor 1507:
Total for Vendor 1507 (Berchtold Equipment Company):
SWRCB Fees
Wh/Water System Annual Fee
Total for this ACH Check for Vendor 2592:
Total for Vendor 2592 (SWRCB Fees):
Holliday Rock Co. Inc.
StrtsPinoD Drain
Total for lhis ACH Check for Vendor 2600:
Toral for Vetrdor 2600 (Holliday Rock Co. Inc.):
Jason Dun}tam
Mgnt School - San Diego I€b 2-7 20254-{ileage
Tolal for this ACH Check for V€ador 2803:
Total for Vendor 2803 (Jason Dunham):
SymbolArts LLC
PD/Badges
Tolal for this ACH Check for Vendor 2827:
Total for Vendor 2827 (SymbolArts LLC):
Plumbers Depot I[c.
Swr,E-232 Poles/Supplies
Total for this ACH Check for Vendor 2878:
Total for Vendor 2878 (Plumbers D€pot Inc.):
339.67
ACH 2592
LW-1048424
339.67
21,274.20
27,274.20
ACH
27,274.20
6,547.77
2600
r7306s9
ACH 2803
!D020225
ACH 2827
420307
ACH 2878
PD-58012
ACH 2902
M3968
ACH 2963
22990116
22990286
229902E7
22990288
6,s4't.77
6,541.'t7
250.60
250.60
1,333.20
r,333.20
1,333.20
1,086.85
1,0E6.85
r,0E6.85
160.48
Sim Sanitation lnc
Air/Portable Toilel Rental
Total for this ACH Check for VeDdor 2902:
Total for Vetrdor 2902 (Sim Sadtation Inc):
AI&T
PD/Admin Phone Lines #939 I M0069/Jan 6-Feb
GG/Ciry Hall Line 1/#93 9tOO67l2traa 6-Feb 5 t
Swr,A/r'WTP Office/#93910067134ar 6-Feb 5 2(
RR Depov#9391006715[an 6-Feb 5 2025
160.4E
459.92
204.54
157.M
92.08 A-P Checks by Date - Detail by Vendor Nuober (2125/2025 7 36 Al,[) Page 5 Check No Vendor No
lnvoice No
Ve|ldor Name
Descriptiotr
Check Date
Reference
Cbeck Amount
22990289
22990290
22990291
22990292
22990293
22990294
23005831
3011
6104894143
6104E94r43-A
6104894143-B
6104894143-C
6r04894143-D
ACH 3066
2000982442
2000984061
2000984061-A
200098,1480
2000984480-A
Swr/f,ift Statiorl/#g3 9 10067l6fizn 6-F eb 5 2025
GG/City Ha[ Far,/f93910067l7 /lat 6-Feb 5 202
Air/AWOS/#9391006718/Jan 6-Feb 5 2025
P w DsL Fax,/F939 | 0067 t9t lan 6-f eb 5 2025
Air,fuel System/#93 9100 6'720llaa 6-Feb 5 2025
Augo Dialer 1002 Applewood Pmp Stn/#939100
PD/911 Altemative Arswer Circuit #9391055851
31.13 89.41
Total for this ACH Check lor Vendor 2963:
Total for Vendor 2963 (AT&T):
Verizon Wireless
Gc,4vlobile Broadband #24239550lrar1 2-Feb 1
PwMobile Broadband #242395501/Jan 2-Fcb I
Swr/Mobile Broadband #242395501/lan 2-Feb \
PDA4obile Broadband #2 42395501fiaa 2-F eb I
ED^{obile Broadband #242395501llan 2-F.b 1
Total for this ACH Ch€ck for Vendor 3011:
Total for Vendor 301 I (Verizon Wireless):
AECOM Technical Services lnc.
Tehachapi^layes Mixed Use
Transit Center Sidewalk
B.cntwood Ped Facilities
WWTPAnnual Reclamation Report
Tehachapi,lHayes Mixed Use
Total for this ACH Check for Ve or 3066:
Total for Vendor 3066 (AICOM Technical Services Inc.):
Sergio G. Soto
PW,^/-40 New Tires
Total for this ACH Check for Vendor 3173:
Total lor vendor 3173 (Sergio C. Soto):
Three Way Automotive Group
PW..rE-33 Pump Kir
Total for this ACH Check for V€ndor 324E:
Total for Vendor 3248 (Three Way Automotive Group):
Granite Constluction Compatry
strts,/Pothole Mix
1,193.39
ACH
1,193.39
58.03 120.03
23.88 52.t4
49.1I
303.23
1,186.00
5,898.92
71.t2
452.52
559.16
8,167.12
ACH 3173
2991
8,167.12
194.8s
't94.85
ACH 3248
'76721CVW
79328CVW
794.85
32't.14
20.87 348.01
ACH 3550
2886360
348.01
1,136.63
1,136.63
AP Checks by Date - Detail by VeDdor Numbcr (2D512025 1156 A'}y'') Tolal for this ACH Cherk for Vendor 3550:
Check No Vendor No
Invoice No
Vendor Nam€
Description
Ch€ck Date
Reference
Check Amount
Total for Vendor 3550 (Granite Construction Company):
Don's Pro Technology Auto Repair
PW/TE-I2 A,/C Rcpair
Total for this ACH Check for Vendor 3564:
Total for Vendor 3564 (Don's Pro Technology Auto Repair):
Provost & Pritchard
East Teh Lift Station
Total for tbis ACH Check for V€ndor 3568:
Total for Vendor 3568 (Prcvost & Pritchad):
PR Diarnond Products Inc.
Wtr/Bracket for Saw
Toral for this ACH Check for VeDdor 3668:
Total for Vsndor 3668 (PR Diamond Products loc.):
Vortex Industries Inc.
Air/Comm Way Gate
Total for this ACH Check lor VsDdor 1680:
Total for Vendor 3680 (Vortex Industries Inc.):
Diamond Technologies
IT,New PC for Cornmunications
IT/lr4icrosofl 365 Feb 2025 Billing
IT,rDiamond IT Agreernent Services Feb 2025 Bi
Total for this ACH Check for Vendor 380?:
Total for Vendor 3807 @iamond Technologies):
Tramc Management Incorporated
Sfis/SEeet Signs
StrbDosts for Street Signs
Strts/Street Signs
Tolal for lhis ACH Check for Vendor 3 868:
Total for Vendor 3868 (Traffic Management Incorporated):
Waxie Sanitary Supply
GG/N,lultifold Towels
1,136.63
234.33
ACH 3564
1M667
ACH 3568
t17t54 9,E0E.00
9,808.00
ACH
ACH
9,E0E.00
45.00 3668
0067349-IN
3680
46-1182504
45.00 45.00
I,135.00
I,135.00
ACH 3807
3'/442
375l3MS
31514
ACH 3868
06_l1295E
06-t l3l 14
06-1t3379
I,135.00
3,314.88
2,86,.40
28,458.18
34,635.46
34,635.46
3,023.9E
2,034.29
r,883.56
6,941.83
ACH 4036
63000278
6,941.t3
157.02
A? Check by Date - Detail by Vendor Nudb€r (r25/2O25 7:56 AM Page 7 CheckNo Vendor No
Invoice No
Vendor Name
D€scription
Check Date
Reference
Check Amourt
ACH 4063
Total for lhis ACH Check for Vendor 4036:
Total for Vendor 4036 (Waxie Sanitary Supply):
Language Line Services Inc
PD/Tra$lating Service
Total for this ACH Check for vendor 4063 :
Total for Verdor 4063 (Laoguage Lire Services Inc):
Alpha Techaologies & Alarm Systems lnc
Beekay Theate Fire Alarm
Tolal for this ACH Check for vendor 40?t;
Total for Vendor 4078 (Alpha Technologies & Alarm Systems Inc):
WM Corporate Services
R€f,/Refi$e Contract/Dec 2024 Billing
Ret{<em County Bin Disposal Fce$/Dec 2024 B
Tolat for this ACH Check for Vendor 4142:
Total forVetrdor4l42 (WM Corporate Services):
Core & Main LP
Wts/Locks for Gate Valve
Wtr/Locks for Gate Valve
Wh/Supplies for Water L€aks
Wtr/Supplies for Water L€aks
Total for this ACH Check for VeDdor 4 I 57:
Total for Vendor 4157 (Core & Main LP):
4 Creeks
SRIS Dennison Bile/Ped
Valley-Mill Gap Closure
Dennison Westside Biloryed
Ch€rry/Tucker Irnprov
Tucker,/Highline Roundabout
RSTP Valley Be€ch - Tucker
Totat for this ACH Check for Vendor 4 168:
Total for Vendor 4168 (4 Crceks):
Data Ticket lnc.
CElcitation Processitrg/Collections
CB/Pyanent Pmccssing
157.O2
35.00 35.00
r5.00
ACH 40?8
208845
ACH 4168
4C007301
4C001325
4C001332
4C00'1344
4C00t345
4C001346
ACH 4194
174170
17,1408
336.00
336.00
336.00
167,638.89
20,253.24
ACH 4142
12312024-L
123t202+B
ACH 4157
INV00131E0
INV0013362
w300394
w379982
t87,892.t7
t81,892.t7
33.14 163.73
1,125.80
88.01 l,4l1.28
l,4t 1.28
923.13
'7,4t3.7E
795.00
3,725.O0
3,386.29
3,560.39
19,804.l9
19,804.19
|,246.25
|,770.09
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AIvl) Page 8 Check No Vendor No
Invoice No
ACH 4197
KCCD21925
KCCD21925-A
KCCD2 ! 925-B
ACH 4230
0204461-4792-6
0204462-4792-4
ACH 4272
0383948-IN
0383949-IN
0383951-IN
0383952-IN
ACH 4287
129415
129793
68174
ACH 4330
1604890
1605869
1605938
ACH 4354
381892
Vendor Name
Description
Check Date
Reference
Total for thisACH Check for Vendor 4194:
Total for Vendor 4194 (Data Ticket Inc.):
Kem Community College District
Cancelled CUP 2021-01 Application/Planning F1
Cancelled CUP 2021-01 Application/Tech Surch
Cancelled CUP 2021-01 App/Long Range Plann
Total for this ACH Check for Vendor 4197:
Total for Vendor 4197 (Kem Community College District):
WM(ACH)
PW /Propane for Shop #19-17983-73000
Wtr/Propane for Water Shop #19-17983-83008
Amber Chemical Inc
Wtr/Hypochlorite - Curry Tank
Wtr/Hypochlorite - Wahlstrom Well
Wtr/Hypochlorite - Mojave Well
Wtr/Hypochlorite - Minton Well
Total for this ACH Check for Vendor 4230:
Total for Vendor 4230 (WM (ACH)):
Total for thisACH Check for Vendor 4272:
Total for Vendor 4272 (Amber Chemical Inc):
Red Wing Shoes
Safety Boots
Safety Boots
Safety Boots
Jim Burke Ford
Total for this ACH Check for Vendor 4287:
Total for Vendor 4287 (Red Wing Shoes):
PW/IE-12 Window Repair/AC Compressor
PW /TE-49 Door Panel
GGiV-29 Battery
Mead&Hunt
ALUCPUpdate
Total for this ACH Check for Vendor 4330:
Total for Vendor 4330 (Jim Burke Ford):
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AM) Check Amount
3,016.34
3,016.34
4,521.00
271.26
339.08
5,131.34
5,131.34
3,473.77
846.25
4,320.02
4,320.02
457.20
254.00
254.00
355.60
1,320.80
1,320.80
250.00
250.00
236.68
736.68
736.68
874.55
476.13
276.02
1,626.70
1,626.70
3,931.00
Page9
Check No Vendor No
Invoice No
ACH 4363
687837
ACH 4364
ABl232025
ACH 4384
FBN5256464
FBN5256464-A
FBN5256464-B
FBN5256464-C
FBN5256464-D
FBN5256464-E
FBN5256464-F
FBN5256464-G
FBN5256464-H
FBN5256464-I
FBN5256464-J
FBN5256464-K
ACH 4389
273814963
ACH 4400
INV-019775
ACH 4419
644372
Vendor Name
Description
Check Date
Reference
Total for this ACH Check for Vendor 4354:
Total for Vendor 4354 (Mead & Hunt):
Global Environmental Products
PW/E-218 Repairs/Freight Charge
Total for thisACH Check for Vendor 4363:
Total for Vendor 4363 (Global Environmental Products):
Anthony Bonelli
PD/Reimbursement: Reserve Officer Uniform Pt
Total for this ACH Check for Vendor 4364:
Total for Vendor 4364 (Anthony Bonelli):
Enterprise FM Trust
Wtrtrruck Lease/Feb 2025
PW/Truck Lease/Feb 2025
Swr/fruck Lease/Feb 2025
GG!Truck Lease/Feb 2025
PW/Truck Lease/Feb 2025
PD/Truck Lease/Feb 2025
PWtrruck Lease-Interest/Feb 2025
PW/fruck Lease-Principal/Feb 2025
Capital Lease-Principal/Feb 2025
Capital Lease-Principal/Feb 2025
Wtr/fruck Lease-Interest/Feb 2025
Wtr/Truck Lease-Principal/Feb 2025
Total for this ACH Check for Vendor 4384:
Total for Vendor 4384 (Enterprise FM Trust):
Orkin
PD/Pest Control
Total for this ACH Check for Vendor 4389:
Total for Vendor 4389 (Orkin):
Springbrook Holding Co. LLC
GG/CivicPay & PayPad Transaction Fees/Jan 20
Total for this ACH Check for Vendor 4400:
Total for Vendor 4400 (Springbrook Holding Co. LLC):
Adventist Health Tehachapi
Suspect Blood Draw
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 AM) Check Amount
3,931.00
3,931.00
4,837.94
4,837.94
4,837.94
320.81
320.81
320.81
2,164.84
4,467.95
572.51
1,082.63
724.06
1,147.96
-45.83
182.43
182.43
-182.43
-48.61
182.69
10,430.63
10,430.63
144.00
144.00
144.00
969.65
969.65
969.65
201.00
Check No Vendor No
Invoice No
ACH 4503
CS2122025
ACH 4504
T400-0028027
ACH 4565
0107753
ACH 4608
53400
ACH 4617
50030178761
ACH 4619
63094
ACH 4629
0003455-IN
0003497-IN
Vendor Name
Description
Check Date
Reference
Total for thisACH Check for Vendor 4419:
Total for Vendor 4419 (Adventist Health Tehachapi):
Carol Swets
Water Rights Lease
Industrial Shoeworks
PW /Safety Boots
Total for this ACH Check for Vendor 4503:
Total for Vendor 4503 (Carol Swets):
Total for this ACH Check for Vendor 4504;
Total for Vendor 4504 (Industrial Shoeworks):
Byrne Software Technologies Inc.
Accela Support
Total for this ACH Check for Vendor 4565:
Total for Vendor 4565 (Byrne Software Technologies Inc.):
Triple EEE
Strts/Rip Rap for Capital Hills Median
White Cap
Concrete Tools
Rincon Consultants, Inc.
Tehachapi Travel Center
Total for this ACH Check for Vendor 4608:
Total for Vendor 4608 (Triple EEE):
Total for this ACH Check for Vendor 4617:
Total for Vendor 4617 (White Cap):
Total for this ACH Check for Vendor 4619:
Total for Vendor4619 (Rincon Consultants, Inc.):
HydroPro Solutions
Wtr/Registers for Meters
Wtr/Meters
AP Checks by Date· Detail by Vendor Number (2/25/2025 7:56 AM) Check Amount
201.00
201.00
38,125.00
38,125.00
38,125.00
214.28
214.28
214.28
750.00
750.00
750.00
2,068.49
2,068.49
2,068.49
186.23
186.23
186.23
8,947.50
8,947.50
8,947.50
5,518.02
5,006.26
Check No vendor No
lnvoice No
Vendor Name
Description
Check Date
Reference
Check Amoulrt
Total for this ACH Check for Vendor 4629:
Total for Veldor 4629 (HydroPro Solutions):
Aspect Enginee.ing Group
SWr/SCADA Upgradc
SWi/SCADA Upgrade
Total for this ACH Check for Vendor 4648:
Total for Vendor 4648 (Aspect Engineering Group):
Karls Hardware
PwRepair Diaglostic L€af Blowcr
Sharye[ Chaiisaw
Total for this ACH Check for Vendor 4660:
Total for Vendor 4660 (Karls Hardware):
10,524.28
ACH 4648
12898
12932
\0,524.28
360.00
120.00
4660
345814
354714
480.00
50.00 39.00
ACH
ACH
89.00 ACH 4685
69083
SealMaster Bakersfield
Wtrn,,atcl Service Patch Back
89.00 484.87
Total for this ACH Check for Vendor 4685:
Total for Vendor 4685 (SeaMaster Bakersfield):
Sonia Dowling
PD/Dispatch Backgound
Total for this ACH Check lor vendor 4715:
Total for vendor 4715 (Sonia Dowling):
Agile Occupational Medicine
PDDispalch Physical
Total for this ACH Check for Vetrdor 4794:
Total for Vendor 4794 (Agile Occupational Medicine):
Ambulock Inc.
PD,{-ocksmith - Uniform Closet
Total for this ACH Check for Vendor 48 13:
Total for Vendor 4813 (Ambulock Inc.):
Bovee Euvironmental Mpt. Inc.
Asbestos & Lead lnspection/Sample Collectiot/,
484.87
1,000.00
47 t5
DrG]152025
ACH 4794
EMo37400
ACH 4813
INV-002r77
ACH 4888
6a7772
1,000.00
1,000.00
380.00
380.00
255.00
255.00
r,350.00
AP Checks by Date - Detail by Vendor Nunber (2/25/2025 7156 AND Pag€ 12 Ch€ck No Vendor No Veddor Name Check Date Check Amount
ACH 4898
D52242025
Total for this ACH Check for Vendor 4888:
Total for Vendor 4888 (Bovee Environmental Mgnt. Inc.):
Derdgo Studies
ED/Grocery Sales Volurne Rcport - 1st lnstallm€
Total for this ACH Check for VeDdor 4898.
Total fo. Vetrdor 4898 @errigo Studies):
Report Total (68 check):
1,350.00
3,200.00
3,200.00
471,210.21
AP Checks by Date - Detail by Vendor Number (2/25/2025 7:56 /]{\ Page 13 Accounts Payable
Checks by Date - Detail by Vendor Number
CITY OF'
Usec
Printed:
afiescas
2/25/2025 lO:48 AM
Check No vendor No
Invoice No
Vetrdor Name
Description
TEHACHAPI
CAi-IFCIRNIA
Check Dete
R€feretrc€
CheckAEount
ACH 2695
A-3102700
B-5514974
c-s620938
D-4023119
E4023720
F-4510028
G-4520r't'7
H45201E4
14520206
14610194
K-4621014
L-3610880
M-2610958
N-2610959
o-8611359
P-7013002
Q-7510778
R-7510789
s-7520'115
T-6013055
v-6621593
w-5013110
x-5511013
Y-5520851
z-5tt50l
zA-6t2095
zB-95tr596
zc-95i596
m-9511608
zE-8t33547
zF-8511715
zG-85117\5
z]l-8521414
zr-E622r13
u45t2145
zK-3612647
zL-2133734
zM-2512297
zN-rsr2429
zo-1612823
zP-1612849
zQ- t622648
zR-7622954
zs-6013990
Tt-6512910
zu-6613268
7l -6613271
zw-6613272
Home Depot Credit Services
PWRefum - Tre€ Pruner
PWOffice Sup!'lies
LLD[rriSatioD Repair
Pw/T-110 Cladps
Pwoffice Upgride
Strts/Pinon Drair
Swr/Shop S4plies
Strts,?ircn Drain
Pw/Iri gation Rspair/Ashe Tmct
Pwsafety Goggles
LLD rrigation Repair
LlD[rrigation Repair
PWIools - Pliers
Pw,4nigation R@air
Strts,4inon Drainage
Pwlrri gatioa Repair Denrdson
Pw,ry-3o Bolts for Trock Bed
Pw,{rigation Repair DennisoD
Strts,4inon Drain Project
LlDManzanita Pa*
SEts,?inioD Drdin
LlD[rrigation Repair
Strts/Capiral Hills Landscaping
Strts,lEnds of Road Barricades
Pw/TIash Bags
Strts/End of Road Barricades
PWTools
Pwsafety Gloves
Strts,4inon Drain
PWFleet Shop
PwBeekay Roof Repair
Strts/Stre€t Signs
PWr€-210 Cap
PWTrce Pruner Tool
PWCar Cleatiry
PWBungees/Iools
Pw,{rrigation Repair Park N Ride
Pw,ilrigatioD Repair
PwMsitor Csnter - Irrigation Repair
Pw,ryisitor Ce €r - hrigation Repat
Pw,^/isitor Cent€r - Irrigation Repair
LLD rrigation Repair
Strts/Pinon DraiD
Swr/Flag Pole RepaL - WWTP
PWShovels
Wtr/T- I 29 Stsap
PWTence Repair Railroad
-64.93
15.54 73.97
4.27 214.24
39.90 54.17
8.10 31.89
16.21 39.44
6.47 14.O7
22.O5
24.27 7.27
t3.42
54.E8
223.99
2t.51
6r.37
17.30 75.44
rto.22
'71.94
3 r.90
23.61 1E.84
115.66
115.67
45.'72
4.06 64.93
37.81 10.80
81.l2
19.57 7.23
t2.t3
4,48
2't.05
22.99 E9.39
60.36 6.47
13.65 AP Ch€cks by Date - Detail by V€ndor Number (2n5/2025 10l.48 |\M) Page 1{ Check No Vendor No
Invoice No
Vendor Nrme
Descriptiotr
Check Date
RefereDce
Check Amount
zx-66t3283
zx-6613283
22-66\3307
PWFleet Shop
PwBeekay Roof R€pails
PwBeekay Roof Repain
1t.26
36.14 Tot l for this ACH Check for Vendor 2695:
Total for Vendor 2695 (Home Depot Credit Services):
Report Total (l checks):
2,203.E3
2,203.83
2,203.83
AP Ch€cks by Date - Detail by Vendor Numb€r (2 /25/2025 10148 l\M Page lg Accounts Payable CI TY OF
Checks by Date - Detail by Vendor Number
User:
Printed:
afrescas
2/25/2025 2:53 PM TEHACHAPI
C A L F O R N A
Check No Vendor No Check Date Check Amount
Invoice No Reference
ACH 2940
AW-A-4879 135.00
AW-B-4986 195.00
AW-C-5464 262.97
AW-D-2459 159.66
AW-E-1123
Vendor Name
Description
US Bank Corporate Payment System
IIMC Renewal Notice
IIMC Renewal Notice
Race Communications Subscription
Costco/Kitchen Supplies
Costco/Bottled Water 535.99
AW-F-0018 SWAAE/Workshop Fee Refunded -182.00
AW-G-2718 Amazon/Hot Cup Lids 35.81
AW-H-7798 Iron Mtn - Large Destruction 418.00
CC-A-2312 CREXI Intelligence Dec 26 2024-Jan 25 2025 159.00 CC-B-5979 SF Chronicle Subscription 15.96
CC-C-1412 SF Chronicle Subscription 15.96
CC-D-2121 Adobe Creative Cloud 59.99
CC-E-3097 TME Monitrfee/Monitoring Qtly BT 175.00
CC-F-9586 Lands End Shirts 154.68
CC-G-8821 TAAR Membership 300.00
CC-H-9021 Microsoft 365 69.99
CC-1-7718 VistaPrint/Business Cards 144.14
CC-J-3834 Amazon/Wireless Keyboard/Mouse JO.JO
CC-K-8906 The Wall Street Journal 49.99
CC-L-6673 Motion Array Annual Fee 249.99
CC-M-3775 Adobe Stock 29.99
CC-N-6025 Intuit Mai!Chimp 54.00
CC-0-0335 SF Chronical 15.96
DM-A-7728 PW/League of CA Cities Conference 706.25
DM-B-7728 Wtr/League of CA Cities Conference 706.25
DM-C-7728 Swr/League of CA Cities Conference 706.25
DM-D-7728 DSD/League of CA Cities Conference 706.25
GG-A-8445 Pilot - Fuel for Suburban 72.55
HJ-A-0809 GFOAACFR Award Fee 460.00
IIJ-B-1595 CSMFO Membership 150.00
JD-A-1897 75.00
JD-B-8124 77.18
JD-C-01234 149.83
JD-D-0934 14.72
JD-E-4486 368.54
JR-A-4387 89.90
JR-B-9843 707.47
JR-C-9998 40.00
JR-D-6764 19.99
JR-E-2044 994.20
JR-F-1046 1,323.28
JR-G-7041 171.50
JS-A-8091 412.73
JS-B-7076 546.93
JS-C-3913 90.08
JS-D-2773 34.59
JS-E-2977 159.90
JS-F-2932
TLO T:ransunion
Desert Lock Co/Station Key Copies
Nu Car Rental Insurance
Shell Oil Fuel
Town Place Suites-Glendale AZJ
Albertsons/Christmas Eve Breakfast
San Diego Police Equip/ Ammo
KernData.com/Code Enf Data
Adobe Subscription
511 Tactical/Cadet Uniforms - Patrol
511 Tactical/Recruit Uniforms
511 Tactical/Cooper Uniform Shirts
Ebay/Publications
ICC/Publications
4 Seasons/Caltrans-Meal
Amazon/Office Supplies
Zoom.com Computer Supplies
Zoom.com Computer Supplies 159.90
AP Checks by Date - Detail by Vendor Number (2/25/2025 2:53 PM) Page 16 Check No Vendor No
Invoice No
KB-A-9791
KB-B-2792
KB-C-9491
LA-A-2184
LA-8-8336
LA-C-2645
LA-D-3103
LA-E-7130
LA-F-7288
PD-A-7840
PD-B-8089
PD-C-9710
RS-A-8707
RS-B-1933
RS-C-3414
RS-D-6079
RS-E-4784
RS-F-9755
TN-A-6098
TN-B-7832
TN-C-1537
Vendor Name
Description
Liberated Syndication!fehachapod
P-Dubs/Presentation Luncheon
Kamenz Kafe/Coffee withe Mayor
Amazon/Capital Hills Median
Amazon/Capital Hills Median
Amazon/free Maintenance-Tehachapi Blvd
Amazon/Filter for Blowers
Amazon/Fertilizer for Trees
Amazon/E-232 Hose for Jetter
Frontier Air Fare/Investigation Background
Nu Car Rental-Background
Country Inn By Radisson/Lodging
Amazon/Evidence Boxes
Amazon/Office Supplies
Amazon/Evidence Supplies
Dues Refund
Amazon/framing Binders
Amazon/Dispatch Supplies
Pacific Conugated Pipe/Pinon Drain Cover-REF
Taginator - Graffiti Remover
Walker Lewis Rents/Snow Mach Rental
Check Date
Reference
Total for this ACH Check for Vendor 2940:
Total for Vendor 2940 (US Bank Corporate Payment System):
Report Total (I checks):
AP Checks by Date - Detail by Vendor Number (2/25/2025 2:53 PM) Check Amount
30.00 88.56
50.74 103.91
103.91
86.78 8.78
93.04 40.04
223.96
72.74 961. IO
142.40
43.95 198.07
-875.00
36.33 187.28
-782.75
99.08 l 08.35
13,049.94
13,049.94
13,049.94
CITY OF TEHACHAPI
INVESTMENT REPORT
January 31, 2025
PURCHASE MATURITY ACCOUNT/ STATED PAR PURCHASE MARKET YIELD TO
DATE DATE CUSIP INSTITUTION RATE AMOUNT AMOUNT VALUE MATURITY U.S. TREASURY SECURITIES
04-06-22 03-31-25 9128284F4 US Treasury Note 2.63 250,000.00 250,000.00 249,360.00 2.63 04-11-24 03-31-29 91282CKG5 US Treasury Note 4.13 500,000.00 496,778.00 496,290.00 4.27 TOTAL U.S. TREASURY SECURITIES $ 750,000.00 $ 746,778.00 $ 745,650.00
GOVERNMENT AGENCY ISSUES
07-14-22 c 07-14-25 3134GXZT4 Federal Home Loan Mortgage Corp 4.00 500,000.00 500,000.00 499,110.00 4.00 04-28-22 c 04-28-26 3130ARN64 Federal Home Loan Bank 3.13 250,000.00 250,000.00 246,635.00 3.13 08-10-22 08-03-26 3133END80 Federal Farm Credit Bank 3.00 500,000.00 501,864.50 490,645.00 2.90 04-06-22 04-05-27 3133ENTS9 Federal Farm Credit Bank 2.60 250,000.00 249,070.25 241,462.50 2.68 04-28-22 c 04-28-27 3130ARMP3 Federal Home Loan Bank 3.23 250,000.00 250,000.00 244,012.50 3.23 04-25-24 04-10-29 3133ERAK7 Federal Farm Credit Bank 4.38 500,000.00 495,053.00 500,565.00 4.60 08-07-24 c 04-18-29 3133ENUR9 Federal Farm Credit Bank 3.70 500,000.00 491,615.50 482,405.00 4.10 01-08-25 12-17-29 3133ERL41 Federal Farm Credit Bank 4.13 500,000.00 495,581.50 495,140.00 4.33 c = callable
TOTAL GOVERNMENT AGENCY ISSUES $ 3,250,000.00 $3,233,184.75 $3,199,975.00
CERTIFICATES OF DEPOSIT
04-07-22 04-07-25 02589AC34 American Express National Bank 2.55 246,000.00 246,000.00 245,200.50 2.55 04-08-22 04-08-25 87165HM98 Synchrony Bank 2.55 246,000.00 246,000.00 245,153.76 2.55 04-13-22 04-14-25 38149M4S9 Goldman Sachs Bank 2.55 246,000.00 246,000.00 245,116.86 2.55 12-23-22 06-23-25 920133AK1 Valley Strong Credit Union 4.80 249,000.00 249,000.00 249,455.67 4.80 08-10-22 08-11-25 795451CB7 Sallie Mae Bank 3.35 245,000.00 245,000.00 243,755.40 3.35 08-17-22 08-13-25 07371DEU7 Beal Bank USA 3.20 246,000.00 246,000.00 244,546.14 3.20 10-04-23 10-02-25 59013KXB7 Merrick Bank 5.30 248,000.00 248,000.00 249,696.32 5.30 12-29-22 12-29-25 31850LAE9 First American State Bank 4.30 249,000.00 249,000.00 249,134.46 4.30 01-06-23 01-06-26 20416TAX0 Communitywide Federal Credit Union 4.70 249,000.00 249,000.00 250,013.43 4.70 04-13-22 04-13-26 14042TFH5 Capital One Bank 2.65 246,000.00 246,000.00 241,382.58 2.65 10-17-23 10-16-26 16141BAS0 Chartway Federal Credit Union 5.40 248,000.00 248,000.00 252,523.52 5.40 12-21-22 12-21-26 01664MAA4 All In Federal Credit Union 4.45 249,000.00 249,000.00 249,674.79 4.45 12-21-22 12-21-26 25844MAL2 Dort Financial Credit Union 4.40 247,000.00 247,000.00 247,521.17 4.40 12-22-23 12-22-26 77357DAD0 Rockland Federal Credit Union 4.60 249,000.00 249,000.00 250,352.07 4.60 08-10-22 08-10-27 14042RTN1 Capital One NA 3.40 245,000.00 245,000.00 242,861.15 3.40 10-06-23 10-06-27 75102EAV0 Raiz Federal Credit Union 5.10 248,000.00 248,000.00 253,287.36 5.10 12-21-22 12-21-27 51828MAC8 Latino Community Credit Union 4.50 249,000.00 249,000.00 250,743.00 4.50 12-29-22 12-29-27 45157PAZ3 Ideal Credit Union 4.50 249,000.00 249,000.00 250,790.31 4.50 12-30-22 12-30-27 01882MAA0 Alliant Credit Union 4.85 249,000.00 249,000.00 253,213.08 4.85 02-23-24 02-23-28 01025RAL3 Alabama Credit Untion 4.15 249,000.00 249,000.00 248,389.95 4.15 08-22-24 08-22-28 07181JBH6 Baxter Credit Union 4.35 249,000.00 249,000.00 249,864.03 4.35 10-19-23 10-19-28 39573LEP9 Greenstate Credit Union 5.15 248,000.00 248,000.00 255,695.44 5.15 10-30-23 10-30-28 91739JAD7 Utah First Credit Union 5.10 248,000.00 248,000.00 255,363.12 5.10 11-01-23 10-30-28 254676BG3 Discover Bank 5.05 243,000.00 243,000.00 249,772.41 5.05 01-18-24 01-18-29 78413RAM9 SCE Credit Union 3.90 249,000.00 249,000.00 245,802.84 3.90 02-21-24 02-21-29 90355GLC8 UBS Bank 4.20 249,000.00 249,000.00 248,506.98 4.20 08-08-24 08-08-29 23204HPX0 Customers Bank 4.10 244,000.00 244,000.00 242,394.48 4.10 08-08-24 08-08-29 89235MPX3 Toyota Financial Savings Bank 4.15 244,000.00 244,000.00 242,892.24 4.15 TOTAL CERTIFICATES OF DEPOSIT $6,926,000.00 $6,926,000.00 $6,953,103.06
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
n/a n/a 98-15-914 State of California LAIF 4.37 166,905.19 $166,905.19 166,905.19 4.37 TOTAL LAIF ACCOUNTS $ 166,905.19 $166,905.19 166,905.19
CALIFORNIA ASSET MANAGEMENT PROGRAM
n/a n/a 6128-001 CAMP Investment Pool 4.55 11,805,257.53 $11,805,257.53 11,805,257.53 4.55 TOTAL CAMP ACCOUNTS $ 11,805,257.53 $11,805,257.53 11,805,257.53
JOINT POWERS AUTHORITY POOL
CHANDLER ASSET MANAGEMENT
n/a n/a 99CAMBX$1 CSJVRMA Investment Pool $2,443,568.16 $2,443,568.16 2,402,204.47 TOTAL MUTUAL FUNDS $ 2,443,568.16 $2,443,568.16 2,402,204.47 SUBTOTAL OF ALL POOLED INVESTMENTS $ 25,341,730.88 $ 25,321,693.63 $ 25,273,095.25
INVESTMENTS
1 CITY OF TEHACHAPI
INVESTMENT REPORT
January 31, 2025
BANK
STATEMENT
ACCOUNT NAME INSTITUTION BALANCE
CITY OF TEHACHAPI BANK ACCOUNTS
General Checking Bank of the Sierra 290,659.50
Police Department Bank of the Sierra 11,566.62
Water Deposit Trust Bank of the Sierra 135,221.50
Flexible Spending Account Bank of the Sierra 4,073.07
Airport Credit Card Sales Bank of the Sierra 14,199.67
Ashtown Water Escrow Bank of the West 114,001.53
TOTAL CITY OF TEHACHAPI BANK ACCOUNTS $ 569,721.89
PURCHASE MATURITY ACCOUNT INTEREST MARKET YIELD TO
DATE DATE FUND NUMBER RATE COST VALUE MATURITY
BOND PROCEEDS
$ - $ -
PURCHASE MATURITY ACCOUNT INTEREST MARKET YIELD TO
DATE DATE FUND NUMBER RATE COST VALUE MATURITY
BOND PROCEEDS
TEHACHAPI 2017 TAX ALLOCATION BONDS
Fiscal Agent: Bank of New York Mellon
n/a n/a 17AB TABS DEBT SERVICE 993546 4.00 1,140.12 1,140.12 4.00 n/a n/a 17AB TABS INTEREST 993547 4.00 58.44 58.44 4.00 n/a n/a 17A TABS RESERVE 993695 4.00 200,165.11 200,165.11 4.00 n/a n/a 17B TABS RESERVE 993734 4.00 204,810.40 204,810.40 4.00 TOTAL TEHACHAPI 2017 TAX ALLOCATION BONDS $406,174.07 $406,174.07 Cash in Bank Accounts $ 569,721.89
Pooled Cash Investments $ 25,273,095.25
City Fiscal Agent Cash $ -
Subtotal $ 25,842,817.14
Successor Agency Fiscal Agent Cash $ 406,174.07
Grand total $ 26,248,991.21 *
Investment Policy Statement
All investments are in full compliance with the City of Tehachapi Investment Policy. The City of Tehachapi will meet its expenditure obligations for the next six months.
The market values presented for pooled City investments are based on closing prices for the related investment as of the date of this report. This information was obtained from Intercontinental Exchange, Bloomberg, Refinitiv, and other reliable sources of market prices.
POOLED CASH BANK ACCOUNTS
CITY FISCAL AGENT CASH
RDA SUCCESSOR AGENCY FISCAL AGENT CASH
SUMMARY OF CASH AND INVESTMENTS
2 CITY OF
TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 3,2025 AGENDA SECTION: FINANCE DIRECTOR
APPROVED
DEPARTMENT H
CITY MANAG
TO: HONORABLE MAYOR POGON-CORD AND COUNCIL MEMBERS
HAMED JONES, F!NANCE DIRECTOR
FEBRUARY 25,2025
SUBJECT: FISCAL YEAR END 2024 FINANCIAL REPORTS
FROM:
DATE:
BACKGROUND
The City's financial transactions for fiscal year 2023-24 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. lntroductorySection
a. Letter of Transmittal
b. Directory of Officials
c. OrganizationalChart
d. Certificate of Achievement for Excellence in Financial Reporting
2. Financial Section
a. lndependent Auditor's Report
b. Management Discussion & Analysis
c. Basic Financial Statements
d. Required Supplementary lnformation
e. Supplementary lnformation
3. Statistical Section
Continued from the last several years, the City submitted its2023-24 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 2OL7-18.
lndependent Auditorls Report on lnternol Control over Finonciol Reporting ond on Compliance and Other Motters Bosed on on Audit of Finoncial Stotements tnternal Control over Financial Reporting: The auditor stated, "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."
a
a Comptiance 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 nda rds."
tndependent Accounton(s Report on Agreed-llpon Procedures Applied to Appropriations 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 2O23-24 was 577,O57,781 which was s736,576 more than 2022-23 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 o This is the Auditor's communication with the governing board for the financial reporting process.
o No significant findings are reported'
RECOMM NDATION
INFORMATION ONLY
Page2of 2
Von Lont a
Fonkhonel, LLP
---i Certiried Publrc Accountants lDecember 23,2024
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, 2024. Professional 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 June 24, 2024. Professional standards also require that we communicate to you the following information related to our audit.
Siqnificant Audit Findinqs
Qualitative Aspecfs of Accounting Practices
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 and significant accounting policies were adopted and the application of existing policies was not changed during the fiscal year ended June 30, 2024. 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.
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 Dnve. Suite 105 A
Munieta. cA 92563
s9 856 6879
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 financial statements 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.
Corrected and U ncorrected M i sstateme 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.
Di sag ree me nts with M a n age me nt
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 ag e m e nt Re pre se ntatio n s
We have requested certain representations from management that are included in the manage ment representation letter dated Dece mber 23, 2024.
Management Consultations with Other lndependent 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 priorto 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,
/,*fu ' Y*ttn"/,//f
Von Lonl a
Fonkhonel, LLP
---l Certified Publrc Accountants F--
lndependent Auditor's Report on lnternal Gontrol over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 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 Government 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, 2024, 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 23,2024.
lnternal Control Over Financial 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 internal 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 weakness 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. Asignificantdeficiency is a deficiency, ora combination of deficiencies, in internal control that is less severe than a material weakness, 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 identify all deficiencies in internal control that might be material weaknesses or, signiflcant 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 tant & Fankhanel, Llf
29970 Technology Dnve. Sulte 105 A
Mumeta. CA 92563
$9 856 6879
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's flnancial 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 re ported u nder G ove rn m e nt A u d it i ng Standards.
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. /*'/* * Y*tt*r/,//f
December 23,2024
Von Lonl a
Funkhonel, LLP
------{ Certif,ed Public Accountants }-
INDEPENDENT ACCOUNTANT'S REPORT ON AGREED.UPON PROCEDURES APPLIED TO APPROPRIAT!ONS LIMIT 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 West Covina, for the year ended June 30, 2024. These procedures, which were agreed to by the City of Tehachapi and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Apptied to the Appropriations Limitation Prescribed by Article XlllB of the Catifomia 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.
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.
Van Lant & Fankhanel, LLP
29970 Technology Drive. Sune 105 A
Munreta. CA 92563
s9 855 687S
4 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. /*,/* " Y*tt */,//f
December 23,2024
2 CITY OF TEHACHAPI
APPROPRIATIONS LIMIT COMPUTATION
2023 -2024
$ 16,321,205
$ 17,057,781
2023 - 2024
Change in Per Capita Personal lrrome
Population Change
Courily Population Growth
A. Change in Per Capita Personal lncome Converted to a Ratio B. Population GroMh Converted to a Ratio
Calculation of Growth Factor (A x B)
2022 - 2023 Appropriations Limit
2023 - 2024 Appropriations Limit
($16,321 ,205 x 1.04s13)
4.44o/o
0.07o/o
1.0444
't.0007
1.04513
3 CITY OF TEHACHAPI, CA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ended June 30, 2024
CITY OF TEHACHAPI, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2024
Prepared by:
Finance Department
City of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2024
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 - 64
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
General Fund 65
Facility Impact Fee Special Revenue Fund 66
Traffic Mitigation Special Revenue Fund 67
Schedule of the City’s Proportionate Share of the Net Pension Liability 68 Schedule of Plan Contributions 69
Notes to Required Supplementary Information 70
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Roads and Pedestrian Safety Capital Projects Fund 71
Street Projects Capital Projects Fund 72
Non-Major Governmental Funds:
Combining Balance Sheet 73
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 Non-Major Special Revenue Funds:
Combining Balance Sheet 75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 76 City of Tehachapi
Annual Comprehensive Financial Report
Year Ended June 30, 2024
TABLE OF CONTENTS - Continued
Supplementary Information - Continued: PAGE
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Beverage Container Recycling Special Revenue Fund 77
Lighting District Special Revenue Fund 78
Streets and Roads Special Revenue Fund 79
Gas Tax Special Revenue Fund 80
Non-Major Capital Project Funds:
Combining Balance Sheet 81
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 82 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Building and Planning Capital Projects Fund 83
Parks and Recreation Capital Projects Fund 84
Custodial Funds:
Combining Statement of Fiduciary Net Position 85
Combining Statement of Changes in Fiduciary Net Position 86 III. STATISTICAL SECTION
Table of Contents 87
Net Position by Component 88 - 89
Changes in Net Position 90 - 93
Fund Balances of Governmental Funds 94 - 95
Changes in Fund Balances of Governmental Funds 96 - 97
Assessed Value of Taxable Property 98 - 99
Direct and Overlapping Property Tax Rates 100 - 101
Principal Property Tax Payers 102
Property Tax Levies and Collections 103
Ratios of Outstanding Debt by Type 104 - 105
Ratios of General Bonded Debt Outstanding 106
Direct and Overlapping Governmental Activities Debt 107 Legal Debt Margin Information 108 - 109
Pledged Revenue Coverage 110
Demographic and Economic Statistics 111 - 112
Principal Employers 113
Full-time and Part-time City Employees 114
Operating Indicators 115 - 116
Capital Asset Statistics 117
THIS PAGE INTENTIONALLY LEFT BLANK
INTRODUCTORY SECTION
Letter of Transmittal
December 23, 2024
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Tehachapi:
We are pleased to submit the June 30, 2024 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, 2024 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 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 2024, the unemployment rate in the City of Tehachapi was 7.3% which was 1.9% higher than the State of California unemployment rate, 5.4%(1). The 2024 median home sale price in Tehachapi was $399,000(2) whereas the median home sale price in the U.S. was $420,400(3).
In 2023, the 12-month average household income in the City was approximately $83,926 which was roughly 4% more than the national average household income of $80,610(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 2023/24 was $18,603,154, which was 26.5% higher than the prior year’s revenue ($14,710,129). Revenue was higher primarily due to the first full year 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 2023/24, the City issued 33 new building permits (30 for new single-family homes and 3 for commercial/industrial construction). The City’s new homes built during the last thirteen 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. K. Hovnanian has completed construction on 52 out of the 55 new homes proposed in Tehachapi Hills at Tract 6216 with an additional 18 homes currently under construction at Tract 6668 located south of Cherry Lane, north of Pinon Street, and east of Fig Drive.
3. 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.
4. Construction continues 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.
5. Tract 6248 located south of C Street, north of Valley Boulevard and west of Park Street has almost completed off-site improvements and will consist of 30 available lots for residential development.
6. Pinon South Condominiums has received their building permits for the development of 19 condominium units on 1.6 acres at the southwest corner of Curry Street and Pinon Street.
Included in the design is open community space for a child play area, picnic area with grilling stations, community garden, dog walking path, and bocce court.
7. A new 11,000 square foot pre-engineered steel building is under construction for Hydrochrome on Bailey Avenue.
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 $6.5 million based on the current discount rate of 6.90%, which was an increase of $281,655 or 4.6% mainly due to the difference between the expected and actual changes in the pension plan's liabilities.
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 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.
2. “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.
3. Development of a 16,886 square foot Truck Service and Wash located on a 3.28‐acre parcel south of East Tehachapi Boulevard and east of Monolith Street is proposed. This facility would include two maintenance/service stalls and two wash stalls.
4. A new multi-tenant commercial center on a 0.73-acre parcel southwest of the intersection of Valley Boulevard and Aspen Drive is proposed. The 7,246 square foot retail center is designed to contain five tenant spaces, each measuring 1,375 square feet.
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 Hannah Chung
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 Director 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
Function
Contract Service
City of Tehachapi
Organizational Chart
Department
City Residents
City Council
City Manager
Development
Services
Department
Public Works
Department
Administration
Department
Police
Department
Finance
Department
Engineering
Planning
Public Safety
Code Enforcmnt
Public Works Finance/ Acctg
Risk Mgmt
Water Personnel HR
Wastewater
City Clerk
Airport
City
Attorney
Fire Service
IT
Animal Ctrl
Transit
Building
Gen Admin
Communications
Department
Assistant City
Manager & Economic
Development
Department
Refuse
City Clerk City Treasurer
7 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tehachapi
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the 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, 2024, 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 23, 2024, 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 23, 2024
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, 2024. 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 11.3% to $85,151,069 from $76,491,287 as a result of this year’s operations.
Total City revenues, including program and general revenues, were $35,950,227, which is $7,964,601 more than the prior year.
Total City expenses, including governmental and business-type expenses, were $27,839,597, which is $4,037,225 more than the prior year.
Net position in governmental activities increased by $6,346,457 to $63,429,065, an 11% increase. Net position in business type activities increased by $2,313,325 to $21,722,004, a 12% increase. Governmental revenues increased by $5,665,736 to $24,464,839, a 30% increase. Governmental expenses increased by $2,981,196 to $18,115,279, a 20% increase. Revenues from business-type activities increased by $2,298,865 to $11,485,388, a 25% increase. Expenses from business-type activities increased by $1,056,029 to $9,724,318 a 12% increase. General fund revenue increased by $3,893,025 to $18,603,154, a 26.5% increase. General fund expense increased by $2,950,843 to $14,152,667, a 26.3% increase. The fund balance of the General Fund as of June 30, 2024, was $22,907,390; an increase of $4,450,487 or 24.1% 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 11 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 six governmental projects are combined into the Roads and Pedestrian Safety fund and seventeen 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, Dennison Westside Bike/Pedestrian Improvements, and Valley Resurfacing Beech to Tucker. The projects are included in the Street Projects Fund are the Enhanced Striping, Valley Resurfacing Beech-Curry, Tehachapi Blvd Bike Lane Fence, Tree Planting and Stormwater Capture, City Traffic Model/Mitigation, Snyder Ave. Gap Closure, Pinon Road Extension, 13 Dennison Bicycle-Pedestrian Improvement, City Funded Street Rehab Phase 2, SB1 Surface Treatment II 22/23, Grind Overlay E F & Pauley, Valley & Mill Gap Closure, Capital Hills Area Resurfacing, City Streets Pavement Rehab, Tucker & Highline Round-a-Bout, Measure S Pavement Rehab, and Beekay Theatre Expansion 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, 2024, the City’s overall net 14 position was $85,151,069, which is the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. The net position that resulted from governmental activities was $63,429,065 and from business-type activities was $21,722,004. 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 $59,645,421 (70% of total net position) from $54,874,461. This increase of $4,770,960 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 2023/24:
Governmental Activities:
Access Control Upgrade Dennison Bicycle & Pedestrian Improvements Brentwood Pedestrian Facilities Valley Recreational Park Tehachapi Blvd Bike Lane Fence Northside Neighborhood Sidewalk Phase 3 Transit Center Sidewalk Connection Beekay Theatre Expansion Valley & Mill Gap Closure Tucker & Highline Round-a-Bout Dennison Westside Bike & Pedestrian
Business-type Activities:
Airport Taxiway Relocation Highline Reclamation Area
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 2023/24 were Pinon Road Extension.
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, 2024 was $6,455,202.
The restricted net position was increased by $348,486 to $7,159,135, while the unrestricted net position was increased by $3,540,336 to $18,346,513. 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 $6,346,457 to $63,429,065, accounting for 74% of the city-wide total net position. The net position balance is composed of $41,192,832 of net investment in capital assets, $3,924,920 of restricted fund balance, and $18,311,313 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 65% of the total Net Position in the Governmental Activities section. The $2,010,129 increase in net investment in capital assets was primarily from grant funded capital projects. Furthermore, the restricted net 15 position decreased by $475,380 from the prior year but the unrestricted net position increased by $4,811,708. The restricted fund balance reduction was essentially due to the use of the special revenue funds for capital projects whereas the unrestricted fund increase was generated from receiving the first full year of a new 1% district sales tax 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 $2,313,325 to $21,722,004, accounting for 26% of the city-wide total net position. The enterprise funds contributing to the increase of net position were Water for $644,747, Refuse for $8,575 and Airport for $1,804,447, whereas the decreases of net position were Sewer for $58,968 and Transit for $85,476.
The net position balance is composed of $18,452,589 of net investment in capital assets, $3,234,215 of restricted net position, and $35,200 of unrestricted net position. While net investment in capital assets and restricted net position increased by $2,760,831 and $823,866 respectively, unrestricted net position decreased by $1,271,372.
The net investment in capital assets increase was due to the Airport Taxiway Relocation project. The increase in restricted net position was caused mainly by the acquisition of water rights whereas the decrease in unrestricted net position was primarily due to the use of fee fund reserves used for capital projects such as the purchase of water rights, 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, 2024, the City’s governmental funds reported a combined ending fund balance of $23,164,249. This is a $4,306,527 or approximately 23% 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 an 82% increase in sales tax from the first full year of a new 1% district tax measure. 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 $22,907,390, which includes $182,926 of prepaid expenses, $2,652,402 due from other funds (interfund receivables), and $2,000,000 advances from other funds. The General Fund is the only discretionary fund out of the 11 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, 2024 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 making debt payments in the foreseeable future. To date, the General Fund has subsidized $2,345,393 and $1,679,751 to the Airport Fund and Landscape Lighting Districts respectively. 17 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 2023/24 was $1,588,629. 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 ($2,593,426), Roads and Pedestrian Safety Projects Funds ($1,051,913), and Street Projects Funds ($30,010). 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 ($593,426).
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 $1,085,729. 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 2023/24 was $7,838,852, which was a $644,747 increase from fiscal year 2022/23. This increase in net position in a proprietary fund is similar to the net income in a private sector business. The increase 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 $233,556 and $103,696 respectively. The revenue increase was mostly from a water fee rate increase associated with changes in the Los Angeles area CPI in January 2023. The CPI used for the water rate increase in July 2023 was 5.8%. On the expenditure side, the most notable variances are an increase in personnel costs ($208,451) and decreases in operating and maintenance costs ($128,450).
As shown in the table above, the Sewer Fund recognized a $58,968 decrease in net position from the prior year which resulted in a year-end net position of $10,141,149. Compared to the prior year, Sewer Fund revenues increased by $348,198 while expenses increased by $636,141. The revenue increase was mostly from a sewer fee rate increase associated with changes in the Los Angeles area CPI in November 2023. The CPI used for the sewer rate increase in January 2024 was 2.8%. On the expenditure side, the most notable variances are from increases in operating and maintenance costs ($469,767) and an increase in personnel costs ($174,179). 18 The Airport Fund’s net position at the end of the fiscal year was $3,639,165, an increase of $1,804,447 from the prior year. The Airport Fund’s net position increase was entirely a result of receiving $2,002,892 in grant reimbursements from the FAA for phase two 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 2023/24, both Airport Fund’s total revenues and expenses increased by $1,546,624 and $134,266 respectively compared to the prior fiscal year. The actual revenue increase from operations without the FAA grant reimbursement and General Fund subsidy was $74,291 and this increase was primarily from increased fuel sales.
On the expense side, the airport’s personnel costs were higher mainly due to a 2.8% COLA increase for all employees in fiscal year 2023/24.
The Refuse Fund recognized a $8,575 net gain during the fiscal year resulting in a $132,277 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 2023, the refuse service fees were increased by 4.87%.
General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the year ended June 30, 2024 is presented as Required Supplementary Information following the Notes to the Financial Statements. The final budget amounts differ from those shown in the original 2023/24 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 $22,907,390, which includes a $4,450,487 positive net change in fund balance. In comparison to the final budget, this year’s operations resulted in a $2,266,766 favorable fund balance variance. Most of this positive budget variance was due to the first full year of 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 $3,893,025 and expenditures increased by $2,950,843.
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 an extra $4,257,096 from the first full year receipts of a new 1% district sales tax measure and $746,903 in increased interest income from more active investing with higher interest rates, offset by a decrease of $1,556,254 in COVID19 related grants from the American Rescue Plan Act (ARPA) received in the prior year.
The biggest increases in General Fund expenditures were from personnel costs, fire service contract increases, transfers to various capital projects, and seven police vehicles purchased. The personnel costs were higher mainly due to a 2.8% COLA increase for all employees as well as vacant positions being filled in fiscal year 2023/24. 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, 2024 amounted to $61,488,380 (net of accumulated depreciation), which was a $4,242,032 increase from fiscal year 2022/23 as shown in the table below. Of the total, increases of $1,898,123 and $2,343,909 were from governmental activities and business activities respectively. The detail of changes in the capital asset balance can be found in the Notes Section 2-C.
The main contributor to the increase in investment in capital assets for governmental activities was from grant funded infrastructure projects which are still in construction in progress (CIP). The construction in progress (CIP) balance had additions of $2,380,017 from Valley Recreational Park, $126,123 from Dennison Bicycle and Pedestrian Improvements, $282,611 from Brentwood Pedestrian Facilities, $293,310 from Tehachapi Blvd. Bike Lane Fence, $141,459 from Northside Neighborhood Sidewalk Phase 3, and $6,121 from Transit Center Sidewalk Connection offset by the Pinon Road Extension assets of $1,209,495 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 activities was from grant funded infrastructure projects which are still in construction in progress (CIP). The construction in progress (CIP) balance had additions of $2,340,274 from the Airport Taxiway Relocation Construction Phase 2 project. 20 Capital Assets
In FY 2023/24, 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 decreased by $111,777 compared to the prior year. As shown in the table below, the largest decrease was from the reduction in notes payable principal as the final installment of $233,000 for a water rights purchase was completed. The largest increase was from the City’s net pension liability. 21 The increase in net pension liability (Unfunded Accrued Liability UAL) was mainly due to the difference between the expected and actual changes in the pension plan's liabilities. 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.
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 2024, the Council adopted the 2024/25 through 2028/29 five-year budget with total appropriations of $39,777,452 in fiscal year 2024/25. The following factors were taken into consideration in compiling the next fiscal year budget:
The 2024/25 budgeted General Fund revenue is $17,214,589, which is $1,388,565 less than the actual revenue received in 2023/24. The variance is mainly due to revenues being conservatively budgeted and a full year’s worth of receipts of the City’s new 1% district sales tax measure being higher than expected. The 2024/25 General Fund expenditure budget amount of $18,522,075 is projected at $4,369,408 more than the actual expenditures in 2023/24. The large variance is primarily due to a 2.8% COLA, five full-time positions in the Public Works Department, a full-time position in the Development Services Department, and a full-time position in the Communications Department. Additionally, the City is filling vacant budgeted positions consisting of six full-time positions in the Police Department, a full-time position in the Development Services department, and two full-time positions in the Public Works department. Operating expense increases include Kern County fire contract cost increases and transfers of over $2 million to street rehabilitation capital project funds.
Compared to the actual amounts in FY 2023/24, the water sales revenue was budgeted at a 3.4% increase whereas the sewer service charges were budgeted at a 1.1% 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 seven full-time employees: five full-time positions in the Public Works Department, a full-time position in the Development Services Department, and a full-time position in the Communications Department.
Capital projects and equipment purchases included in this budget are:
o Police department vehicles and equipment: $200,000
o Radio System upgrades: $250,000
o Bucket Truck: $125,000
o Street Sweeper: $261,000
o Beekay Theatre Expansion: $128,100
o ALUCP update: $150,000
o New radio water meters: $30,000
o Water rights lease: $45,000
o Banked Water purchase: $238,500
o Reestablishing Pressure Zone Boundaries: $50,000
o Clarifier overhaul: $150,000
o Reclamation Area purchase: $1,200,000
o Sewer Facility Improvements: $82,000
o Biosolids handling study: $75,000
o Airport Fuel Facility: $178,000
o Dennison Bicycle & Pedestrian Improvements: $2,155,965 o City Streets Pavement Rehabilitation: $2,081,352
o Transit Center Sidewalk Connect: $760,000
o Tucker & Highline Round-a-Bout: $673,316
o Capital Hills Area Resurfacing: $345,000
o Valley & Mill Gap Closure: $315,000
22 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. 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 prior years.
According to the U.S. Bureau of Labor Statistics, the 12-month Consumer Price Index for All Urban Consumers (CPI-U) was up 3.3% in May 2024. As of October 2024, the unemployment rate in the City of Tehachapi was 7.3%, which was 1.9% higher than the State of California unemployment rate of 5.4% (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 some 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 24-24 budget cycle was unique in that the City continues to face rising costs of basic contract services and high inflation but is able to overcome these adverse conditions due to our voters, who, in November 2022, approved a 1% local sales tax increase here in the city. The City is using the additional Measure S revenue and built-up reserves to fund significant road rehabilitation projects and produce a five-year balanced budget in the General Fund. 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 this year’s budget was significant capital investment into the City’s infrastructure as capital outlay makes up 23.5% of the overall expenditure budget. 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 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. The Refuse Fund, after facing deficits in last year’s budget, is now projected to have healthy reserves upon completing a rate study and Proposition 218 process to increase rates, comply with SB 1383, and implement curbside organics recycling.
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 20,884,841 $ 1,112,585 $ 21,997,426 $ Receivables (Net of Allowance) 3,705,994 3,019,737 6,725,731 Internal Balances 1,426,873 (1,426,873) -
Restricted Cash and Investments 523,908 3,774,012 4,297,920 Prepaids 182,926 861,230 1,044,156
Lease Receivable - 471,697 471,697
Capital Assets, Not Being Depreciated 5,242,558 7,080,619 12,323,177 Capital Assets, Depreciated, Net 36,557,563 12,607,640 49,165,203 Total Assets 68,524,663 27,500,647 96,025,310
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 2,653,100 1,107,930 3,761,030
LIABILITIES
Current Liabilities:
Accounts Payable 1,372,468 2,533,820 3,906,288
Accrued Liabilities 246,200 104,938 351,138
Accrued Interest Payable 5,354 1,117 6,471
Deposits Payable 523,908 142,902 666,810
Noncurrent Liabilities:
Due within One Year 287,635 235,255 522,890
Due in More Than One Year 5,159,606 3,329,723 8,489,329 Total Liabilities 7,595,171 6,347,755 13,942,926
DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable - 471,697 471,697
Deferred Inflows Related to Pensions 153,527 67,121 220,648 Total Deferred Inflows of Resources 153,527 538,818 692,345
NET POSITION
Net Investment in Capital Assets 41,192,832 18,452,589 59,645,421 Restricted for:
Construction and Expansion of Facilities 3,234,215 - 3,234,215 Highways and Streets 3,122,767 3,122,767 -
Community Development 43,206 - 43,206
Parks 758,947 - 758,947
Unrestricted 18,311,313 35,200 18,346,513
Total Net Position $ 63,429,065 $ 21,722,004 $ 85,151,069 City of Tehachapi
Statement of Net Position
June 30, 2024
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 2,544,982 $ 1,087,376 $ 92,896 $ - $ Public Works 4,727,541 992,274 - 4,245,776
Public Safety 7,254,640 321,672 208,846 -
Community Development 3,559,229 18,569 121,150 -
Interest 28,887 - - -
Total Governmental Activities 18,115,279 2,419,891 422,892 4,245,776 Business-type Activities:
Water 3,076,649 3,154,727 - -
Sewer 3,257,049 2,975,209 - -
Airport 1,219,589 868,370 - 2,162,093
Refuse 1,896,058 1,823,849 75,000 -
Transit 274,973 1,485 188,012 -
Total Business-type Activities 9,724,318 8,823,640 263,012 2,162,093 Total Primary Government 27,839,597 $ 11,243,531 $ 685,904 $ 6,407,869 $ 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 (Loss) on Disposal
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning, as Previously Reported
Restatement for Correction of an Error
Net Position - Beginning, as Restated
Net Position - End of Year
Program Revenues
City of Tehachapi
Statement of Activities
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 25 Governmental Business-type
Activities Activities Total
$ - (1,364,710) $ (1,364,710) $
- 510,509 510,509
- (6,724,122) (6,724,122)
- (3,419,510) (3,419,510)
- (28,887) (28,887)
- (11,026,720) (11,026,720)
78,078 - 78,078
(281,840) - (281,840)
1,810,874 - 1,810,874
2,791 - 2,791
(85,476) - (85,476)
1,524,427 - 1,524,427
1,524,427 (11,026,720) (9,502,293)
- 3,042,445 3,042,445
- 9,381,335 9,381,335
- 1,871,998 1,871,998
- 1,025,699 1,025,699
- 284,494 284,494
- 323,449 323,449
- 345,838 345,838
92,331 72,634 164,965
197,748 1,028,388 1,226,136
(53,436) - (53,436)
(3,103) 3,103 -
17,373,177 239,746 17,612,923
6,346,457 1,764,173 8,110,630
57,082,608 19,408,679 76,491,287
- 549,152 549,152
57,082,608 19,957,831 77,040,439
$ 63,429,065 $ 21,722,004 $ 85,151,069
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 $ 16,618,947 $ 2,846,479 - $ $ -
Restricted Cash and Investments 523,908 - - -
Receivables 2,523,905 - 1,067,828 -
Due from Other Funds 2,652,402 - - -
Prepaids 182,926 - - -
Advances to Other Funds 2,000,000 - - -
Total Assets $ 24,502,088 $ 2,846,479 - $ $ 1,067,828
LIABILITIES
Accounts Payable $ 498,575 $ - $ - $ 462,592
Accrued Liabilities 229,133 - - -
Due to Other Funds - - - 589,321
Deposits Payable 523,908 - - -
Advances from Other Funds 2,593,426 - - -
Total Liabilities 1,251,616 2,593,426 1,051,913 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 343,082 - 1,067,828 -
Total Deferred Inflows of Resources 343,082 - 1,067,828 -
FUND BALANCES
Nonspendable 2,182,926 - - -
Restricted - 2,846,479 - -
Committed 1,588,629 - - -
Unassigned 19,135,835 (2,593,426) (1,051,913) -
Total Fund Balances 22,907,390 (2,593,426) 2,846,479 (1,051,913) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 24,502,088 $ $ 2,846,479 - $ $ 1,067,828 City of Tehachapi
Balance Sheet
Governmental Funds
June 30, 2024
Special Revenue
The accompanying notes are an integral part of this statement. 27 Capital Projects
Other Total
Street Governmental Governmental
Projects Funds Funds
$ 332,692 $ 1,086,723 $ 20,884,841
- - 523,908
12,634 101,627 3,705,994
- 2,652,402 -
- - 182,926
- 2,000,000 -
$ 345,326 $ 1,188,350 $ 29,950,071
$ 333,443 $ 77,858 $ 1,372,468
- 17,067 246,200
41,893 889 632,103
- - 523,908
- 2,593,426 -
375,336 95,814 5,368,105
- 6,807 1,417,717
- 6,807 1,417,717
- 2,182,926 -
1,085,729 - 3,932,208
- 1,588,629 -
(30,010) 15,460,486 -
(30,010) 1,085,729 23,164,249
$ 345,326 $ 1,188,350 $ 29,950,071
28 THIS PAGE INTENTIONALLY LEFT BLANK
Fund Balances of Governmental Funds $ 23,164,249
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 68,046,110
Accumulated Depreciation (26,245,989)
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 (607,289)
Net Pension Liability (4,476,293)
Compensated Absences (363,659)
Accrued Interest Payable (5,354)
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 2,653,100
Deferred Inflows Related to Pensions (153,527)
Long-term assets are not available for current use. Amounts are deferred under the modified accrual basis of accounting. 1,417,717 Net Position of Governmental Activities $ 63,429,065
City of Tehachapi
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
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 $ 15,521,622 $ - $ - $ -
Licenses, Permits, and Fines 744,434 - - -
Intergovernmental 268,259 - 1,455,007 -
Charges for Services 1,028,916 260,559 305,050 -
Investment Earnings 880,970 - 97,688 -
Miscellaneous Revenues 76,546 - - -
Total Revenues 18,520,747 260,559 402,738 1,455,007
EXPENDITURES
Current:
General Government 2,310,341 - - -
Public Works 2,056,438 1,830 1,830 -
Public Safety 6,929,956 - - -
Community Development 1,645,370 - - -
Capital Outlay 68,519 - 2,823,819 -
Debt Service:
Interest 14,346 4,240 - -
Principal 143,591 - - -
Total Expenditures 13,168,561 6,070 1,830 2,823,819
Excess (Deficiency) of Revenues
Over Expenditures 5,352,186 254,489 400,908 (1,368,812)
OTHER FINANCING SOURCES (USES)
Debt Issuance 68,519 - - -
Transfers In 13,888 - 36,015 539,281
Transfers Out (984,106) - (194,140) -
Total Other Financing Sources (Uses) (901,699) - (158,125) 539,281 Net Change in Fund Balances 4,450,487 254,489 242,783 (829,531) Fund Balances, Beginning of Year 18,456,903 (2,847,915) 2,603,696 (222,382) Fund Balances, End of Year $ 22,907,390 $ (2,593,426) $ 2,846,479 $ (1,051,913) City of Tehachapi
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2024
Special Revenue
The accompanying notes are an integral part of this statement. 30 Capital Projects
Other Total
Street Governmental Governmental
Projects Funds Funds
$ - $ 728,371 $ 16,249,993
- 121,707 866,141
1,146,636 1,571,848 4,441,750
- 26,107 1,620,632
- 48,670 1,027,328
- 3,830 80,376
1,146,636 2,500,533 24,286,220
- 45,552 2,355,893
1,511,995 - 3,572,093
- 6,929,956 -
- 118,018 1,763,388
2,320,775 5,213,113 -
- 11,555 30,141
- 36,934 180,525
2,320,775 1,724,054 20,045,109
(1,174,139) 776,479 4,241,111
- - 68,519
1,782,327 516,479 2,887,990
(67,654) (1,645,193) (2,891,093)
1,714,673 (1,128,714) 65,416
540,534 (352,235) 4,306,527
(570,544) 1,437,964 18,857,722
$ (30,010) $ 1,085,729 $ 23,164,249
31 THIS PAGE INTENTIONALLY LEFT BLANK
Net Changes in Fund Balances - Total Governmental Funds $ 4,306,527 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 4,158,093
Depreciation Expense (2,244,650)
Loss on Disposal (15,320)
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 (68,519)
Payments on Leases 180,525
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. 178,619
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 146,362
Deferred Inflows Related to Pensions (21,448)
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 (89,282)
Net Pension Liability (185,704)
Accrued Interest Payable 1,254
Change in Net Position of Governmental Activities $ 6,346,457 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, 2024
The accompanying notes are an integral part of this statement. 32 Water Sewer Airport
ASSETS
Current Assets:
Cash and Investments $ 1,036,697 - $ $ -
Accounts Receivable (Net of Allowance) 434,181 327,958 1,884,525 Water Inventory 861,230 - -
Restricted Cash and Investments 249,172 3,399,453 -
Total Current Assets 1,544,583 4,764,108 1,884,525
Noncurrent Assets:
Lease Receivable - - 471,697
Advances to Other Funds - 593,426 -
Capital Assets, Not Being Depreciated 2,920,184 614,402 3,546,033 Capital Assets, Net of Accumulated Depreciation 5,221,282 6,162,852 1,223,506 Total Capital Assets (Net of Accumulated
Depreciation) 8,141,466 6,777,254 4,769,539
Total Noncurrent Assets 8,141,466 7,370,680 5,241,236
Total Assets 9,686,049 12,134,788 7,125,761
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 505,794 481,709 120,427
LIABILITIES
Current Liabilities:
Accounts Payable 105,462 338,457 1,796,034
Accrued Liabilities 4,761 44,278 4,082
Accrued Interest Payable 457 660 -
Due to Other Funds 848,846 - 1,082,804
Customer Deposits Payable 142,902 - -
Compensated Absences - Current 39,545 26,428 6,146
Leases Payable - Current 18,399 19,565 -
Loans and Bonds Payable - Current 5,474 114,165 -
Total Current Liabilities 1,165,846 543,553 2,889,066
Noncurrent Liabilities:
Compensated Absences 124,515 92,723 23,865
Leases Payable 30,146 31,993 -
Net Pension Liability 903,415 860,395 215,099
Loans and Bonds Payable 98,427 917,501 -
Total Noncurrent Liabilities 1,156,503 1,902,612 238,964 Total Liabilities 2,322,349 2,446,165 3,128,030
DEFERRED INFLOWS OF RESOURCES
Related to Lease Receivable - - 471,697
Pension Related Items 30,642 29,183 7,296
Total Deferred Inflows of Resources 30,642 29,183 478,993
NET POSITION
Net Investment in Capital Assets 7,989,020 5,694,030 4,769,539 Restricted for Construction and Expansion of Facilities 113,771 3,007,211 - Unrestricted (263,939) 1,439,908 (1,130,374)
Total Net Position $ 7,838,852 $ 10,141,149 $ 3,639,165 City of Tehachapi
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of this statement. 33 Non-Major
Refuse Transit Fund Total
$ 75,888 $ - $ 1,112,585
238,515 134,558 3,019,737
- - 861,230
125,387 - 3,774,012
439,790 134,558 8,767,564
- - 471,697
- - 593,426
- - 7,080,619
- 12,607,640 -
- 19,688,259 -
- 20,753,382 -
439,790 134,558 29,520,946
- - 1,107,930
266,674 27,193 2,533,820
16,680 35,137 104,938
- - 1,117
- 88,649 2,020,299
- - 142,902
3,954 1,579 77,652
- - 37,964
- - 119,639
287,308 152,558 5,038,331
20,205 11,439 272,747
- - 62,139
- - 1,978,909
- - 1,015,928
20,205 11,439 3,329,723
307,513 163,997 8,368,054
- - 471,697
- - 67,121
- - 538,818
- 18,452,589 -
113,233 - 3,234,215
19,044 (29,439) 35,200
$ 132,277 $ (29,439) $ 21,722,004
34 Water Sewer Airport
OPERATING REVENUES
Charges for Services $ 3,154,727 $ 868,370 2,975,209 $
Miscellaneous 30,472 61,423 80
Total Operating Revenues 3,185,199 3,036,632 868,450
OPERATING EXPENSES
Personnel Services 1,578,269 1,148,772 347,119
Maintenance and Operations 1,236,191 1,740,216 762,378
Depreciation 254,169 320,876 105,986
Total Operating Expenses 3,068,629 3,209,864 1,215,483
Operating Income (Loss) 116,570 (173,232) (347,033)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - -
Investment Earnings 8,259 178,665 5,396
Gain/(Loss) on Disposal of Capital Assets (21,214) (17,216) (15,006) Interest Expense (8,020) (47,185) (4,106)
Total Nonoperating Revenues (Expenses) (20,975) 114,264 (13,716) Income (Loss) Before Capital Contributions
and Operating Transfers 95,595 (58,968) (360,749)
Capital Contributions - 2,162,093 -
Transfers In - - 3,103
Transfers Out - - -
Change in Net Position 95,595 (58,968) 1,804,447
Net Position - Beginning, as Previously Reported 7,194,105 10,200,117 1,834,718 Restatement for Correction of an Error 549,152 - -
Net Position - Beginning of Year, as Restated 7,743,257 10,200,117 1,834,718 Net Position - End of Year $ 7,838,852 $ 10,141,149 $ 3,639,165 City of Tehachapi
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 35 Non-Major
Refuse Transit Fund Total
$ 1,823,849 $ 1,485 $ 8,823,640
356 - 92,331
1,824,205 1,485 8,915,971
186,371 78,086 3,338,617
1,709,687 196,887 5,645,359
- - 681,031
1,896,058 274,973 9,665,007
(71,853) (273,488) (749,036)
75,000 188,012 263,012
5,428 - 197,748
- - (53,436)
- - (59,311)
80,428 188,012 348,013
8,575 (85,476) (401,023)
- - 2,162,093
- - 3,103
- - -
8,575 (85,476) 1,764,173
123,702 56,037 19,408,679
- - 549,152
123,702 56,037 19,957,831
$ 132,277 $ (29,439) $ 21,722,004
36 Water Sewer Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers $ 3,109,521 $ 3,013,230 $ 793,991 Payments to Employees for Services (1,537,201) (1,120,983) (348,435) Payments to Suppliers for Goods and Services (1,567,762) (1,476,725) (809,721) Net Cash Provided (Used) by Operating Activities 415,522 4,558 (364,165)
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash Received from Other Funds 797,092 254,489 776,905
Cash Paid to Other Funds - - -
Intergovernmental Revenue - - -
Net Cash Provided (Used) by Noncapital and Related Financing Activities 254,489 797,092 776,905
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (53,469) (521,634) (812,801) Interest Paid (8,225) (47,257) (4,106)
Capital Grants - - 398,682
Payments on Lease Obligations (34,551) (32,949) -
Payments on Long-term Debt (238,199) (111,223) -
Net Cash Provided (Used) by Capital and Related Financing Activities (802,609) (244,898) (418,225)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 8,259 178,665 5,396
Net Cash Provided (Used) by Investing Activities 178,665 8,259 5,396 Net Increase (Decrease) in Cash and Cash Equivalents 7,300 603,778 (89) Cash and Cash Equivalents, Beginning of the Year 241,872 3,832,372 89 Cash and Cash Equivalents, End of the Year $ 249,172 $ 4,436,150 $ - Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) $ 116,570 $ (173,232) $ (347,033) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 254,169 320,876 105,986
Changes in Operating Assets and Liabilities:
Decrease (Increase) in Accounts Receivable (85,478) (23,402) (74,459) Decrease (Increase) in Water Inventory (312,078) - -
Decrease (Increase) in Deferred Outflows - Pensions (22,708) (21,627) (5,406) Increase (Decrease) in Accounts Payable and Accrued Liabilities (19,493) 263,491 (47,343) Increase (Decrease) in Compensated Absences 27,939 15,286 (4,443) Increase (Decrease) in Net Pension Liability 43,804 41,717 10,430 Increase (Decrease) in Deferred Inflows - Pensions (7,967) (7,587) (1,897) Increase (Decrease) in Deposits Payable 9,800 - -
TOTAL CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 415,522 4,558 $ (364,165) $ City of Tehachapi
Proprietary Funds
Year Ended June 30, 2024
Statement of Cash Flows
The accompanying notes are an integral part of this statement. 37 Non-Major
Refuse Transit Fund Total
$ 1,485 1,792,266 $ 8,710,493 $
(74,778) (182,247) (3,263,644)
(149,284) (1,683,812) (5,687,304)
(222,577) (73,793) (240,455)
36,223 - 1,864,709
- - -
186,354 75,000 261,354
222,577 75,000 2,126,063
- - (1,387,904)
- - (59,588)
- - 398,682
- - (67,500)
- - (349,422)
- - (1,465,732)
- 5,428 197,748
- 5,428 197,748
- 6,635 617,624
- 194,640 4,268,973
$ - 201,275 $ 4,886,597 $
$ (273,488) (71,853) $ (749,036) $
- - 681,031
- (31,939) (215,278)
- - (312,078)
- - (49,741)
47,603 25,875 270,133
4,124 3,308 46,214
- - 95,951
- - (17,451)
- - 9,800
$ (73,793) $ (222,577) $ (240,455)
38 Successor Agency
Custodial Private-purpose
Funds Trust Fund
ASSETS
Cash and Investments $ 341,112 $ 860,557
Cash with Fiscal Agent - 404,575
Other Assets 355,557 -
Total Assets 696,669 1,265,132
LIABILITIES
Accounts Payable 16,685 -
Interest Payable - 23,000
Long-term Debt - 8,237,000
Total Liabilities 16,685 8,260,000
NET POSITION
Net Position Held for the Benefit of Others 679,984 -
Net Position (Deficit) Held in Trust for Successor Agency - (6,994,868) Total Net Position $ 679,984 $ (6,994,868)
City of Tehachapi
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of this statement. 39 Successor Agency
Custodial Private-purpose
Funds Trust Fund
ADDITIONS
Contributions:
Taxes and Assessments - $ 1,053,358 $
Miscellaneous 513,578 -
Investment Earnings
Interest Income 5,301 51,896
Total Additions 518,879 1,105,254
DEDUCTIONS
Administrative Costs 33,319 256,169
Interest on Bonds - 282,950
Total Deductions 33,319 539,119
Change in Net Position 485,560 566,135
Net Position - Beginning of Year 194,424 (7,561,003)
Net Position - End of Year 679,984 $ (6,994,868) $
City of Tehachapi
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 40 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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 and fiduciary funds financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
41 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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, 2024
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. 102, "Certain Risk Disclosures." The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2025.
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, 2024
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 $404,575 held by the various bond trustees and fiscal agents, $523,908 held for customer deposits, $249,172 and $3,399,453 held for capital improvements and customer deposits in the Water and Sewer Funds, respectively, and $125,387 held for litter mitigation in the Refuse 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, 2024
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, 2024
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, 2024
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, 2024
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 $35,000. The City recognized approximately $31,000 in lease revenue, including interest revenue during the current fiscal year related to this lease. As of June 30, 2024, the City’s receivable for lease payments was $471,697. 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, 2024, the balance of the deferred inflow of resources was $471,697.
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, 2024:
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 $ 1,128,426
Petty Cash 1,868
Investments 26,771,296
Total Cash and Investments 27,901,590 $
Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and Investments $ 20,884,841 $ 1,112,585 $ 1,201,669 $ 23,199,095 Restricted Cash and Investments 523,908 3,774,012 404,575 4,702,495 Total Cash and Investments 21,408,749 $ $ 4,886,597 $ 1,606,244 $ 27,901,590 48 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
As of June 30, 2024, 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, 2024, 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 161,234 $ - $ - $ 161,234 $ U.S. Treasury Notes 245,293 - 494,905 740,198
U.S. Agencies - 736,005 1,459,977 2,195,982
Certificates of Deposit 1,711,361 1,459,977 3,705,635 6,876,973 CAMP 14,482,385 - - 14,482,385
CSJVRMA Investment Pool 2,314,524 - - 2,314,524
Total $ 18,914,797 $ 2,195,982 $ 5,660,517 $ 26,771,296 Remaining Maturity (in Months)
49 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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. There are no 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.
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 AA+ to be Rated Unrated Local Agency Investment Fund 161,234 $ N/A $ - $ 161,234 - $ U.S. Treasury Notes 740,198 N/A 740,198 - -
U.S. Agencies 2,195,982 N/A 2,195,982 - -
Certificates of Deposit 6,876,973 N/A - 6,876,973 -
CAMP 14,482,385 N/A - 14,482,385 -
CSJVRMA Investment Pool 2,314,524 N/A - 2,314,524 -
Total $ 26,771,296 $ 2,195,982 $ 740,198 $ 23,835,116
Rating as of Year End
50 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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, 2024:
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 $ 740,198 $ 740,198 $ - $ -
U.S. Agencies 2,195,982 2,195,982 - -
Certificates of Deposit 6,876,973 6,876,973 - -
Total $ 9,813,153 $ 740,198 $ 9,072,955 $ -
Fair Value Hierarchy
51 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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 $ 2,070,844 $ - $ 101,627 - $ $ 2,172,471
Grants 1,067,828 - 12,634 1,080,462 -
Interest 71,256 - - 71,256 -
Others 381,805 - - 381,805 -
Total $ 2,523,905 $ 1,067,828 $ 12,634 $ 101,627 $ 3,705,994 Nonmajor
Water Sewer Airport Refuse Transit
Business-type Activities Fund Fund Fund Fund Fund Total Service Fees 390,983 $ 327,547 $ - $ 238,389 $ - $ 956,919 $ Grants and Other 43,198 411 1,884,525 126 134,558 2,062,818 Total 434,181 $ 327,958 $ 1,884,525 $ 238,515 $ 134,558 $ 3,019,737 $ 52 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
C) Capital Assets Detail
The following represents the Capital Asset activity for the 2023-24 fiscal year:
The above additions to capital assets and depreciation include $20,213 in fully depreciated capital assets transferred from the enterprise funds. The above deletions include $29,729 in fully depreciated capital assets transferred to the enterprise funds. Depreciation expense of $2,244,650 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 1,643,655 3,426,012 (1,209,495) 3,860,172 Total Capital Assets, Not Depreciated 3,026,041 3,426,012 (1,209,495) 5,242,558 Capital Assets Being Depreciated:
Buildings and Improvements 8,990,343 - 8,990,343 -
Machinery and Equipment 3,688,395 545,031 (292,787) 3,940,639 Improvements other than Buildings 519,440 142,752 662,192 - Infrastructure 47,404,608 1,209,495 (37,310) 48,576,793 Parks 277,862 - 277,862 -
Right-to-use Leased Infrastructure 162,756 - 162,756 -
Right-to-use Leased Vehicles 128,456 64,511 192,967 -
Total Capital Assets, Depreciated 61,171,860 1,961,789 (330,097) 62,803,552 Less Accumulated Depreciation:
Buildings and Improvements (4,286,807) (272,776) (4,559,583) - Machinery and Equipment (2,518,371) (265,227) 280,973 (2,502,625) Improvements other than Buildings (101,304) (28,860) (130,164) - Infrastructure (17,184,850) (1,642,415) 33,804 (18,793,461) Parks (104,191) (6,947) (111,138) -
Right-to-use Leased Infrastructure (28,306) (14,335) (42,641) - Right-to-use Leased Vehicles (72,074) (34,303) (106,377) - Total Accumulated Depreciation (24,295,903) (2,264,863) 314,777 (26,245,989) Net Capital Assets, Depreciated 36,875,957 (303,074) (15,320) 36,557,563 Governmental Activities Capital Assets $ 39,901,998 $ 3,122,938 $ (1,224,815) $ 41,800,121 Governmental Activities:
General Government 83,222 $
Public Works 75,222
Public Safety 295,845
Community Development 1,790,361
Total 2,244,650 $
53 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
The above additions to capital assets and depreciation include $29,729 fully depreciated capital assets transferred from governmental activities. The above deletions include $20,213 in fully depreciated capital assets transferred to Governmental Activities. Depreciation expense of $681,031 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, 2024 is as follows:
Beginning Ending
Business-type Activities: Balance Additions Deletions Balance Capital Assets, Not Depreciated
Land $ 783,108 $ (27,065) - $ $ 756,043
Water Rights 2,457,774 412,500 (4,800) 2,865,474
Construction in Progress 1,104,427 2,354,675 3,459,102 - Total Capital Assets, Not Depreciated 4,345,309 2,767,175 (31,865) 7,080,619 Capital Assets Being Depreciated:
Buildings and Improvements 16,927,437 163,000 (20,320) 17,070,117 Machinery and Equipment 1,462,790 68,794 (93,252) 1,438,332 Improvements other than Buildings 14,176,308 109,134 (76,158) 14,209,284 Right-to-use Leased Vehicles 165,308 - 165,308 -
Total Capital Assets, Depreciated 32,731,843 340,928 (189,730) 32,883,041 Less Accumulated Depreciation:
Buildings and Improvements (10,988,840) (247,677) 20,321 (11,216,196) Machinery and Equipment (1,168,882) (75,632) 86,689 (1,157,825) Improvements other than Buildings (7,465,368) (342,748) 61,151 (7,746,965) Right-to-use Leased Vehicles (109,712) (44,703) (154,415) - Total Accumulated Depreciation (19,732,802) (710,760) 168,161 (20,275,401) Net Capital Assets, Depreciated 12,999,041 (369,832) (21,569) 12,607,640 Business-type Activities Capital Assets $ 17,344,350 $ 2,397,343 $ (53,434) $ 19,688,259 Business-type Activities:
Water $ 254,169
Sewer 320,876
Airport 105,986
Total $ 681,031
Receivable Payable
Fund Fund
General Fund 2,652,402 $ - $
Roads and Pedestrian Safety Fund 589,321 -
Street Projects Fund 41,893 -
Other Governmental Funds ‐ 889
Water Fund - 848,846
Airport Fund 1,082,804 -
Non-major Transit Fund ‐ 88,649 Total 2,652,402 $ 2,652,402 $
54 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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, 2024:
The General Fund and Sewer Fund have advanced $2,000,000 and $593,426, 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.
Interfund transfers for the year ended June 30, 2024 are as follows:
General Fund transfers include approximately $459,000 to non-major governmental funds to cover operating deficits, $297,183 and $224,879 to the Roads and Pedestrian Fund and Street Projects Fund, respectively, to fund various street projects.
Other notable transfers include $1,345,557 being transferred from non-major governmental funds to the Streets Projects Fund to fund various projects, and $242,098 to the Roads and Pedestrian Fund for various projects, and $194,140 of Traffic Mitigation Program fees being transferred to the Street Projects Fund for allowable costs.
E) Other Assets
Other Assets reported in Custodial Funds at June 30, 2024 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 593,426 -
Facility Impact Fee Fund 2,593,426 -
Total $ 2,593,426 $ 2,593,426
Traffic Roads and Street Other Airport
General Mitigation Pedestrian Projects Governmental Enterprise Transfers Out Fund Fund Fund Fund Funds Fund Total
General Fund - $ - $ 297,183 $ 224,879 $ 458,941 $ 3,103 $ 984,106 $ Traffic Mitigation - - - 194,140 - - 194,140
Streets Projects Fund 13,888 36,015 - 17,751 - - 67,654 Non-major Governmental Funds - - 242,098 1,345,557 57,538 - 1,645,193 Total 13,888 $ 36,015 $ 539,281 $ 1,782,327 $ 516,479 $ 3,103 $ 2,891,093 $ Transfers In
55 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
F) Long-term Debt
Long-term liability activity for the year ended June 30, 2024, 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 $206,705, and the amount reported in business-type activities is $10,893. 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 $ 719,295 $ 68,519 $ 180,525 $ 607,289 $ 169,040 Net Pension Liability 4,290,589 185,704 4,476,293 - - Compensated Absences 274,377 89,282 363,659 - 118,595 Total Governmental Activities $ 5,284,261 $ 343,505 $ 180,525 $ 5,447,241 $ 287,635 Business-type Activities:
1998 Sewer and Water COP $ 169,300 $ 8,100 - $ $ 161,200 $ 8,500 Loans from direct borrowings:
Water Resources Control Board Loan 1,082,689 108,322 - 974,367 111,139 MPUD Note Payable 187,500 187,500 - - - TVHD Note Payable 45,500 45,500 - - - Leases 167,603 67,500 - 100,103 37,964 Total direct 1,483,292 408,822 - 1,074,470 149,103
Net Pension Liability 1,882,958 95,951 1,978,909 - - Compensated Absences 304,185 46,214 350,399 - 77,652 Total Business-type Activities $ 3,839,735 $ 142,165 $ 416,922 $ 3,564,978 $ 235,255 Fiscal Year Ending Governmental Business-type
June 30, Activities Activities Total
2025 $ 189,595 $ 42,175 $ 231,770
2026 93,101 9,924 103,025
2027 82,008 9,919 91,927
2028 81,987 9,915 91,902
2029 70,853 9,911 80,764
2030 68,094 9,906 78,000
2031 68,072 9,901 77,973
2032 68,048 9,896 77,944
Totals $ 721,758 $ 111,547 $ 833,305
Less: Interest (114,469) (11,444) (125,913)
Present Value $ 607,289 $ 100,103 $ 707,392
56 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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 $2,123,696 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
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 10,100 5,607 15,707
2030-2034 58,000 20,781 78,781
2035-2038 56,500 6,498 62,998
Totals $ 161,200 $ 59,517 $ 220,717
Fiscal Year Ending
June 30, Principal Interest Total
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 $ 974,367 $ 117,411 $ 1,091,778
57 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
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, 2024.
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:
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 is 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.
Beginning Ending Due Within
Successor Agency Debt: Balance Additions Deletions Balance One Year 2017 Tax Allocation Bonds $ 8,735,000 $ 498,000 - $ $ 8,237,000 $ 521,000 Total Successor Agency Debt $ 8,735,000 $ 498,000 - $ $ 8,237,000 $ 521,000 Fiscal Year Ending
June 30, Principal Interest Total
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 $ 8,237,000 $ 1,933,892 $ 10,170,892
58 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
2) DETAILED NOTES ON ALL FUNDS – Continued
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, 2024.
G) Fund Balances
The details of the fund balances as of June 30, 2024 are presented below:
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 $34,500,000 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.
Facility Traffic Roads and Street Other
General Impact Fee Mitigation Pedestrian Projects Governmental Fund Fund Fund Safety Fund Fund Funds Total
Nonspendable:
Prepaids $ 182,926 $ - $ - $ - $ - $ 182,926 - $
Advances to Other Funds 2,000,000 - - - - 2,000,000 -
Restricted:
Lighting District - - - - 399,188 - 399,188
Transportation - 2,846,479 - - 290,383 - 3,136,862
Recycling - - - - 18,575 - 18,575
Technology - - - - 24,631 - 24,631
Parks and Recreation - - - - 352,952 - 352,952
Committed
Emergency Contingency 1,588,629 - - - - 1,588,629 -
Unassigned 19,135,835 (2,593,426) (1,051,913) - (30,010) 15,460,486 - Total Fund Balance $ (2,593,426) 22,907,390 $ $ 2,846,479 $ (1,051,913) $ (30,010) $ 1,085,729 $ 23,164,249 59 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
3) OTHER INFORMATION – Continued
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.
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, 2022 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2022 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, 2024, 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% 7.75%
Required employer contribution rates 11.84% + $284,032 10.10% 7.68% 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% 13.75% 0%
Required employer contribution rates 27.11% + $128,671 19.95% 13.54% 0% + $6,930 60 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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 $419,633 in fiscal year 2024. The City’s contributions to the plan for the year ended June 30, 2024 were $1,519,308.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows Related to Pensions As of June 30, 2024, the City reported a liability of $6,455,202 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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2023 and 2024 was as follows:
For the year ended June 30, 2024, the City recognized pension expense of $1,608,857. At June 30, 2024, the City reported deferred outflows and deferred inflows related to pensions from the following sources:
Proportion - June 30, 2023 0.05345%
Proportion - June 30, 2024 0.05174%
Change - Increase (Decrease) -0.00171%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,519,308 $ - $ Differences between actual and expected experience 377,855 47,625 Changes in assumptions 385,395 -
Change in employer's proportion 55,927 165,233
Differences between the employer's contributions and
the employer's proportionate share of contributions 431,348 7,790 Net differences between projected and actual
earnings on plan investments 991,197 -
Total 3,761,030 $ 220,648 $
61 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
3) OTHER INFORMATION – Continued
$1,519,308 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, 2025. 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, 2022 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,
2025 685,379 $
2026 467,387
2027 840,096
2028 28,212
2029 -
Thereafter -
Valuation date June 30, 2022
Measurement date June 30, 2023
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. 62 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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 10,374,921 $
Current Discount Rate 6.90%
Net Pension Liability 6,455,202 $
1% Increase 7.90%
Net Pension Liability 3,235,949 $
63 City of Tehachapi
Notes to Financial Statements
Year Ended June 30, 2024
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, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.
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 $4.7 million.
D) Error Corrections
Beginning Net Position for the Water Enterprise Fund and Business-type Activities was increased by $549,152 for water inventory purchased in previous years, which was expensed. This error correction is as follows:
Water Business-type
Fund Activities
Beginning Net Position 7,194,105 $ $ 19,408,679
Error Correction 549,152 549,152
Restated Net Position 7,743,257 $ $ 19,957,831
64 REQUIRED SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 13,544,302 $ 14,192,572 $ 15,521,622 $ 1,329,050 $ Licenses, Permits, and Fines 737,100 872,885 744,434 (128,451) Intergovernmental 142,000 244,318 268,259 23,941
Charges for Services 657,000 1,053,715 1,028,916 (24,799) Investment Earnings 400,300 555,453 880,970 325,517
Miscellaneous Revenues 21,020 50,549 76,546 25,997
Total Revenues 15,501,722 16,969,492 18,520,747 1,551,255
EXPENDITURES
Current:
General Government:
General Government 1,103,802 1,072,669 1,177,549 (104,880) Finance 367,078 541,765 352,470 189,295
Communications 86,819 133,774 106,450 27,324
IT 460,945 564,559 553,190 11,369
Council 27,670 29,194 33,141 (3,947)
City Clerk 87,008 90,908 84,815 6,093
Treasurer 2,683 2,649 2,726 (77)
Public Works:
Public Works 1,656,211 1,723,223 1,814,291 (91,068)
Economic Development 219,105 281,565 242,147 39,418
Public Safety (Police/Fire) 6,674,429 7,229,271 6,929,956 299,315 Community Development:
Development Services 1,663,477 1,742,619 1,645,370 97,249 Capital Outlay - - 68,519 (68,519)
Debt Service:
Interest 5,047 7,429 14,346 (6,917)
Principal 92,674 92,674 143,591 (50,917)
Total Expenditures 12,446,948 13,512,299 13,168,561 343,738 Excess (Deficiency) of Revenues
over Expenditures 3,054,774 3,457,193 5,352,186 1,894,993
OTHER FINANCING SOURCES (USES)
Debt Issuance - 68,519 - 68,519
Transfers In 13,887 - 13,888 1
Transfers Out (1,003,064) (1,287,359) (984,106) 303,253 Total Other Financing Sources (Uses) (1,003,064) (1,273,472) (901,699) 371,773 Net Change in Fund Balances 2,051,710 2,183,721 4,450,487 2,266,766 Fund Balance, Beginning of Year 18,456,903 18,456,903 18,456,903 - Fund Balance, End of Year $ 20,640,624 20,508,613 $ 22,907,390 $ 2,266,766 $ Budgeted Amounts
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2024
65 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services 128,580 $ 264,963 $ 260,559 $ (4,404) $ Total Revenues 128,580 264,963 260,559 (4,404)
EXPENDITURES
Current:
Public Works 2,875 2,875 1,830 1,045
Debt Service
Interest - 121,290 4,240 117,050
Principal 128,580 143,673 - 143,673
Total Expenditures 131,455 267,838 6,070 261,768
Excess (Deficiency) of Revenues
Over Expenditures (2,875) (2,875) 254,489 257,364
Fund Balance, Beginning of Year (2,847,915) (2,847,915) (2,847,915) - Fund Balance, End of Year $ (2,850,790) (2,850,790) $ (2,593,426) $ 257,364 $ 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, 2024
Budgeted Amounts
66 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ - $ -$ -$
Charges for Services 88,560 321,162 305,050 (16,112)
Investment Earnings 35,000 64,307 97,688 33,381
Total Revenues 123,560 385,469 402,738 17,269
EXPENDITURES
Current:
Public Works 5,750 2,875 1,830 1,045
Capital Outlay - - - -
Total Expenditures 5,750 2,875 1,830 1,045
Excess (Deficiency) of Revenues
Over Expenditures 117,810 382,594 400,908 18,314
OTHER FINANCING SOURCES (USES)
Transfers In 36,456 - 36,015 441
Transfers Out (250,000) (205,248) (194,140) 11,108
Total Other Financing Sources (Uses) (250,000) (168,792) (158,125) 11,108 Net Change in Fund Balance (132,190) 213,802 242,783 28,981 Fund Balance, Beginning of Year 2,603,696 2,603,696 2,603,696 - Fund Balance, End of Year $ 2,817,498 2,471,506 $ 2,846,479 $ 28,981 $ City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Traffic Mitigation Special Revenue Fund Year Ended June 30, 2024
Budgeted Amounts
67 City of Tehachapi
Required Supplementary Information
Year Ended June 30, 2024
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.
.
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 2023 0.05174% 6,455,202 $ 5,952,248 $ 108.45% 77.62%
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
68 City of Tehachapi
Required Supplementary Information
Year Ended June 30, 2024
Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/22, 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 Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 $ 1,169,308 $ (1,519,308) $ (350,000) $ 6,902,832 16.94% 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
69 City of Tehachapi
Notes to Required Supplementary Information
Year Ended June 30, 2024
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. 70 SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 2,540,558 $ 1,455,007 $ (1,085,551) $ Charges for Services - - -
Total Revenues 2,540,558 1,455,007 (1,085,551)
EXPENDITURES
Capital Outlay 2,783,964 2,823,819 (39,855)
Total Expenditures 2,783,964 2,823,819 (39,855)
Excess (Deficiency) of Revenues
Over Expenditures (243,406) (1,368,812) (1,125,406)
OTHER FINANCING SOURCES (USES)
Transfers In 487,544 539,281 51,737
Transfers Out - - -
Total Other Financing Sources (Uses) 487,544 539,281 51,737 Net Change in Fund Balance 244,138 (829,531) (1,073,669) Fund Balance, Beginning of Year (222,382) (222,382) -
Fund Balance, End of Year $ 21,756 $ (1,073,669) (1,051,913) $ 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, 2024
71 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 1,117,656 $ 1,146,636 $ 28,980 $
Charges for Services - - -
Total Revenues 1,117,656 1,146,636 28,980
EXPENDITURES
Capital Outlay 2,428,659 2,320,775 107,884
Total Expenditures 2,428,659 2,320,775 107,884
Excess (Deficiency) of Revenues
Over Expenditures (1,311,003) (1,174,139) 136,864
OTHER FINANCING SOURCES (USES)
Transfers In 1,862,729 1,782,327 (80,402)
Transfers Out (68,095) (67,654) 441
Total Other Financing Sources (Uses) 1,794,634 1,714,673 (79,961) Net Change in Fund Balance 483,631 540,534 56,903
Fund Balance, Beginning of Year (570,544) (570,544) -
Fund Balance, End of Year $ (86,913) $ (30,010) $ 56,903 City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Street Projects Capital Projects Fund Year Ended June 30, 2024
72 Special Capital
Revenue Projects Total
ASSETS
Cash and Investments $ 374,607 712,116 $ 1,086,723 $
Receivables 95,327 6,300 101,627
Total Assets $ 807,443 $ 380,907 $ 1,188,350
LIABILITIES
Accounts Payable $ 74,534 $ 3,324 $ 77,858
Accrued Liabilities 17,067 - 17,067
Due to Other Funds 889 - 889
Total Liabilities 92,490 3,324 95,814
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants 6,807 - 6,807
Total Deferred Inflows of Resources 6,807 - 6,807
FUND BALANCES
Restricted 708,146 377,583 1,085,729
Total Fund Balances 708,146 377,583 1,085,729
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 807,443 $ 380,907 $ 1,188,350 City of Tehachapi
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
73 Special Capital
Revenue Projects Total
REVENUES
Taxes 728,371 $ - $ 728,371 $
Licenses, Permits, and Fines - 121,707 121,707
Intergovernmental 1,498,682 73,166 1,571,848
Charges for Services - 26,107 26,107
Investment Earnings 38,253 10,417 48,670
Miscellaneous Revenues 3,830 - 3,830
Total Revenues 2,269,136 231,397 2,500,533
EXPENDITURES
Current:
General Government 45,552 - 45,552
Public Works 1,510,165 1,830 1,511,995
Community Development - 118,018 118,018
Capital Outlay - - -
Debt Service:
Interest 11,555 - 11,555
Principal 36,934 - 36,934
Total Expenditures 1,604,206 119,848 1,724,054
Excess (Deficiency) of Revenues Over Expenditures 664,930 111,549 776,479
OTHER FINANCING SOURCES (USES)
Transfers In 516,479 516,479 -
Transfers Out (1,645,193) (1,645,193) -
Total Other Financing Sources (Uses) (1,128,714) (1,128,714) - Net Change in Fund Balances (463,784) 111,549 (352,235) Fund Balances, Beginning of Year 1,171,930 266,034 1,437,964 Fund Balances, End of Year $ 708,146 $ 377,583 $ 1,085,729 City of Tehachapi
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
74 Beverage
Container Lighting Streets
Recycling District and Roads Gas Tax Total
ASSETS
Cash and Investments $ 18,575 $ 448,031 $ 15,859 $ 229,651 $ 712,116 Receivables - 6,807 - 88,520 95,327
Total Assets $ 18,575 $ 454,838 $ 15,859 $ 318,171 $ 807,443
LIABILITIES
Accounts Payable $ - $ 38,113 $ 555 $ 35,866 $ 74,534
Accrued Liabilities - 9,841 7,226 - 17,067
Due to Other Funds - 889 - - 889
Advances From Other Funds - - - - -
Total Liabilities - 48,843 7,781 35,866 92,490
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - 6,807 - - 6,807
Total Deferred Inflows of Resources - 6,807 - - 6,807
FUND BALANCES
Restricted 18,575 399,188 8,078 282,305 708,146
Total Fund Balances 18,575 399,188 8,078 282,305 708,146 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 18,575 $ 454,838 $ 15,859 $ 318,171 $ 807,443 City of Tehachapi
Combining Balance Sheet
Non-major Special Revenue Funds
June 30, 2024
75 Beverage
Container Lighting Streets
Recycling District and Roads Gas Tax Total
REVENUES
Taxes $ 382,533 $ 345,838 - $ $ 728,371
Intergovernmental - 1,161,603 - 337,079 1,498,682
Investment Earnings 632 13,351 1,344 22,926 38,253
Miscellaneous Revenues - 3,830 - - 3,830
Total Revenues 632 395,884 1,166,777 705,843 2,269,136
EXPENDITURES
Current:
General Government 45,552 - - 45,552 -
Public Works 766,413 - 340,130 403,622 1,510,165
Capital Outlay - - - - -
Debt Service:
Interest - 11,555 - 11,555 -
Principal - 36,934 - 36,934 -
Total Expenditures 811,965 - 388,619 403,622 1,604,206
Excess (Deficiency) of Revenues
Over Expenditures 632 (416,081) 778,158 302,221 664,930
OTHER FINANCING SOURCES (USES)
Transfers In 458,941 - 57,538 - 516,479
Transfers Out - (974,563) - (670,630) (1,645,193)
Total Other Financing Sources (Uses) 458,941 - (974,563) (613,092) (1,128,714) Net Change in Fund Balances 632 42,860 (196,405) (310,871) (463,784) Fund Balances, Beginning of Year 17,943 356,328 204,483 593,176 1,171,930 Fund Balances, End of Year $ 18,575 $ 399,188 $ 8,078 $ 282,305 $ 708,146 City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
Year Ended June 30, 2024
76 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Earnings 243 $ 632 $ 389 $
Total Revenues 243 632 389
EXPENDITURES
Current:
Public Works - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 243 632 389
Fund Balance, Beginning of Year 17,943 17,943 -
Fund Balance, End of Year $ 18,186 $ 18,575 $ 389
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, 2024
77 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 391,156 $ 382,533 $ (8,623) $
Investment Earnings 8,923 13,351 4,428
Total Revenues 400,079 395,884 (4,195)
EXPENDITURES
Current:
General Government 53,400 45,552 7,848
Public Works 820,738 766,413 54,325
Total Expenditures 874,138 811,965 62,173
Excess (Deficiency) of Revenues
over Expenditures (474,059) (416,081) 57,978
OTHER FINANCING SOURCES (USES)
Transfers In 510,224 458,941 (51,283)
Transfers Out - - -
Total Other Financing Sources (Uses) 510,224 458,941 (51,283) Net Change in Fund Balances 36,165 42,860 6,695
Fund Balance, Beginning of Year 356,328 356,328 -
Fund Balance, End of Year $ 392,493 $ 399,188 $ 6,695
City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Lighting District Special Revenue Fund Year Ended June 30, 2024
78 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 1,156,570 $ 1,161,603 $ 5,033 $
Investment Earnings 1,450 1,344 (106)
Miscellaneous Revenues 3,000 3,830 830
Total Revenues 1,161,020 1,166,777 5,757
EXPENDITURES
Current:
Public Works 349,429 340,130 9,299
Capital Outlay - - -
Debt Service:
Interest 11,555 11,555 -
Principal 36,934 36,934 -
Total Expenditures 397,918 388,619 9,299
Excess (Deficiency) of Revenues
Over Expenditures 763,102 778,158 15,056
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (968,169) (974,563) (6,394)
Total Other Financing Sources (Uses) (968,169) (974,563) (6,394) Net Change in Fund Balance (205,067) (196,405) 8,662
Fund Balance, Beginning of Year 204,483 204,483 -
Fund Balance, End of Year $ 8,078 (584) $ 8,662 $
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, 2024
79 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 338,742 $ 345,838 $ 7,096 $
Intergovernmental 312,726 337,079 24,353
Investment Earnings 18,632 22,926 4,294
Miscellaneous Revenues 236 - (236)
Total Revenues 670,336 705,843 35,507
EXPENDITURES
Current:
Public Works 390,836 403,622 (12,786)
Capital Outlay - - -
Total Expenditures 390,836 403,622 (12,786)
Excess (Deficiency) of Revenues
Over Expenditures 279,500 302,221 22,721
OTHER FINANCING SOURCES (USES)
Transfers In 49,315 57,538 8,223
Transfers Out (777,637) (670,630) 107,007
Total Other Financing Sources (Uses) (728,322) (613,092) 115,230 Net Change in Fund Balance (448,822) (310,871) 137,951
Fund Balance, Beginning of Year 593,176 593,176 -
Fund Balance, End of Year $ 282,305 144,354 $ 137,951 $ City of Tehachapi
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2024
80 Parks & Rec.
Building and Capital
Planning Project Total
ASSETS
Cash and Investments $ 21,655 $ 352,952 $ 374,607
Receivables 6,300 - 6,300
Total Assets $ 27,955 $ 352,952 $ 380,907
LIABILITIES
Liabilities:
Accounts Payable $ 3,324 $ - $ 3,324
Total Liabilities 3,324 - 3,324
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Restricted 24,631 352,952 377,583
Total Fund Balances 24,631 352,952 377,583
Total Liabilities and Fund Balances $ 27,955 $ 352,952 $ 380,907 City of Tehachapi
Combining Balance Sheet
Non-major Capital Project Funds
June 30, 2024
81 Parks & Rec.
Building and Capital
Planning Project Total
REVENUES
Licenses, Permits, and Fines $ 121,707 - $ $ 121,707
Intergovernmental 73,166 73,166 -
Charges for Services 26,107 26,107 -
Miscellaneous Revenue - - -
Investment Earnings 855 9,562 10,417
Total Revenues 100,128 131,269 231,397
EXPENDITURES
Current:
Public Works - 1,830 1,830
Community Development 118,018 118,018 -
Capital Outlay - - -
Total Expenditures 118,018 1,830 119,848
Excess (Deficiency) of Revenues
Over Expenditures (17,890) 129,439 111,549
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing Sources (Uses) - - -
Net Change in Fund Balances (17,890) 129,439 111,549
Fund Balances, Beginning of Year 42,521 223,513 266,034 Fund Balances, End of Year $ 24,631 $ 352,952 $ 377,583 City of Tehachapi
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Capital Project Funds
Year Ended June 30, 2024
82 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental 73,166 $ 73,166 $ - $
Charges for Services 25,045 26,107 1,062
Investment Earnings 418 855 437
Total Revenues 98,629 100,128 1,499
EXPENDITURES
Current:
Community Development 132,000 118,018 13,982
Capital Outlay - - -
Total Expenditures 132,000 118,018 13,982
Excess (Deficiency) of Revenues
over Expenditures (33,371) (17,890) 15,481
Fund Balance, Beginning of Year 42,521 42,521 -
Fund Balance, End of Year $ 9,150 $ 24,631 $ 15,481
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, 2024
83 Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses, Permits, and Fines 218,473 $ 121,707 $ (96,766) $ Investment Earnings 5,254 9,562 4,308
Total Revenues 223,727 131,269 (92,458)
EXPENDITURES
Current:
Public Works 2,875 1,830 1,045
Capital Outlay - - -
Total Expenditures 2,875 1,830 1,045
Excess (Deficiency) of Revenues
over Expenditures 220,852 129,439 (91,413)
Fund Balance, Beginning of Year 223,513 223,513 -
Fund Balance, End of Year $ 444,365 $ 352,952 $ (91,413) 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, 2024
84 East Tehachapi Capital Total
Tehachapi Blvd. Summit Meadows Hills Custodial
Project 89-3 89-2 90-1 89-1 Funds
ASSETS
Cash and Investments $ 39,985 $ 210,914 $ 42,843 $ 47,370 $ 341,112 Other Assets 26,077 329,480 - 355,557 -
Total Assets $ 66,062 $ 540,394 $ 42,843 $ 47,370 $ 696,669
LIABILITIES
Accounts Payable 1,736 14,949 - - 16,685
Advances From City of Tehachapi - - - - -
Total Liabilities 1,736 14,949 - - 16,685
NET POSITION
Restricted:
Held for the Benefit of Others 64,326 525,445 42,843 47,370 679,984 Total Net Position $ 64,326 $ 525,445 $ 42,843 $ 47,370 $ 679,984 City of Tehachapi
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
85 East Tehachapi Capital Total
Tehachapi Blvd. Summit Meadows Hills Custodial
Project 89-3 89-2 90-1 89-1 Funds
ADDITIONS
Miscellaneous $ 79,907 $ 433,671 $ - $ 513,578 - $
Investment Earnings:
Interest Income 663 1,572 1,456 1,610 5,301
Total Additions 80,570 435,243 1,456 1,610 518,879
DEDUCTIONS
General and Administrative 5,086 28,233 - - 33,319
Total Deductions 5,086 28,233 - - 33,319
Net Increase (decrease) in net position 75,484 407,010 1,456 1,610 485,560 Net Position, beginning of the year (11,158) 118,435 41,387 45,760 194,424 Net Position, end of the year $ 525,445 64,326 $ 42,843 $ 47,370 $ 679,984 $ City of Tehachapi
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended 6/30/2024
86 THIS PAGE INTENTIONALLY LEFT BLANK
City of Tehachapi
Description of Statistical Section Contents
June 30, 2024
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 88
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax 98 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 104
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 111
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 115 87 CITY OF TEHACHAPI
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
Governmental Activities
Net Investment in Capital Assets 31,447,535 $ 33,659,005 $ 35,786,732 $ 36,282,617 $ Restricted 3,990,455 3,573,241 2,987,070 2,414,590
Unrestricted 2,372,775 2,625,919 2,027,591 2,938,892
Total Governmental Activities Net Position 37,810,765 39,858,165 40,801,393 41,636,099 Business-type Activities
Net Investment in Capital Assets 13,175,794 14,211,405 13,300,237 13,298,672 Restricted 3,333,432 1,016,832 1,016,832 1,629,927
Unrestricted (1,010,853) 312,118 3,135,577 2,879,006
Total Business-type Activities Net Position 15,498,373 15,540,355 17,452,646 17,807,605 Primary Government
Net Investment in Capital Assets 44,623,329 47,870,410 49,086,969 49,581,289 Restricted 7,323,887 4,590,073 4,003,902 4,044,517
Unrestricted 1,361,922 2,938,037 5,163,168 5,817,898
Total Primary Government Activities Net Position 53,309,138 $ 55,398,520 $ 58,254,039 $ 59,443,704 $ Source: Audited Financial Statements
88 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 37,634,315 36,771,604 $ 38,817,981 $ 39,457,130 $ 39,182,703 $ 41,192,832 $ 4,714,742 3,168,630 3,895,674 4,410,645 4,400,300 3,924,920 3,881,590 4,308,161 7,254,879 9,684,053 13,499,605 18,311,313 46,230,647 44,248,395 49,968,534 53,551,828 57,082,608 63,429,065 13,126,463 12,865,566 13,897,605 14,311,502 15,691,758 18,452,589 3,095,393 3,040,310 1,286,582 2,410,349 2,410,349 3,234,215 2,476,233 2,341,438 3,579,134 2,167,642 1,306,572 35,200 18,698,089 18,247,314 18,763,321 18,889,493 19,408,679 21,722,004 50,760,778 49,637,170 52,715,586 53,768,632 54,874,461 59,645,421 7,810,135 6,208,940 5,182,256 6,820,994 6,810,649 7,159,135 6,357,823 6,649,599 10,834,013 11,851,695 14,806,177 18,346,513 $ 64,928,736 62,495,709 $ 68,731,855 $ 72,441,321 $ 76,491,287 $ 85,151,069 $ 89 CITY OF TEHACHAPI
CHANGES IN NET POSITION
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
Expenses
Governmental Activities
General Government 2,763,073 $ 2,591,137 $ 2,960,419 $ 2,956,947 $ Public Works 2,165,018 2,363,375 1,521,625 2,025,544
Public Safety 2,658,659 3,256,884 2,676,047 3,252,153
Community Development 776,844 742,409 1,080,050 987,520 Pass-throughs - - - -
Interest 20,843 19,937 32,756 39,372
Total Governmental Expenses 8,384,437 8,973,742 8,270,897 9,261,536 Business-type Activities
Water 2,130,275 2,122,629 2,047,429 2,263,348
Sewer 2,109,038 2,313,166 2,039,152 2,108,924
Airport 925,376 665,664 671,769 798,286
Refuse 1,248,408 1,523,881 1,321,542 1,320,605
Transit 197,247 203,452 224,557 262,565
Motocross Event Center 629 - - -
Total Business-type Expenses 6,610,973 6,828,792 6,304,449 6,753,728 Total Primary Government Expenses 14,995,410 15,802,534 14,575,346 16,015,264 Program Revenues
Governmental Activities
Charges for Services
General Government 726,782 592,856 555,366 734,697
Public Works 195,463 199,809 128,766 11,336
Public Safety 31,626 64,157 131,329 89,707
Community Development - - - -
Operating Grants and Contributions 864,473 697,728 933,565 227,410 Capital Grants and Contributions 5,156,087 3,011,463 2,632,154 2,223,780 Total Governmental Activities Program Revenues 6,974,431 4,566,013 4,381,180 3,286,930 Business-type Activities
Charges for Services
Water 1,928,714 1,852,062 2,428,198 2,409,876
Sewer 1,908,726 2,026,441 2,387,112 2,196,898
Airport 672,209 543,020 531,110 570,956
Refuse 1,255,069 1,273,557 1,304,499 1,338,818
Transit 5,737 4,783 5,068 7,064
Operating Grants and Contributions 362,894 222,494 181,162 389,258 Capital Grants and Contributions - 533,828 - -
Total Business-type Activities Program Revenues 6,133,349 6,456,185 6,837,149 6,912,870 Total Primary Government Program Revenues 13,107,780 $ 11,022,198 $ 11,218,329 $ 10,199,800 $ Net Revenues (Expenses)
Governmental Activities $ (1,410,006) $ (4,407,729) $ (3,889,717) $ (5,974,606) Business-type Activities (477,624) (372,607) 532,700 159,142 Total Net Revenues (Expenses) (1,887,630) (4,780,336) (3,357,017) (5,815,464) 90 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 3,754,511 3,463,063 $ 3,772,260 $ 1,102,246 $ 1,946,834 $ 2,544,982 $ 2,158,019 1,791,044 2,212,546 2,674,815 3,807,094 4,727,541 3,701,640 3,437,651 4,934,643 5,112,873 5,716,890 7,254,640 1,286,798 1,094,456 1,158,064 3,300,861 3,630,463 3,559,229 - - - - - -
51,448 46,407 40,890 37,358 32,802 28,887
9,837,662 10,947,375 12,118,403 12,228,153 15,134,083 18,115,279 2,674,527 2,509,423 2,882,279 2,739,661 2,972,953 3,076,649 2,254,391 2,479,478 2,469,560 2,334,763 2,620,908 3,257,049 827,525 902,729 926,700 1,059,869 1,085,323 1,219,589
1,381,515 1,417,141 1,456,930 1,561,496 1,741,817 1,896,058 273,718 260,754 305,301 240,065 247,288 274,973
608,304 - - - - -
8,019,980 7,569,525 8,040,770 7,935,854 8,668,289 9,724,318 17,857,642 18,516,900 20,159,173 20,164,007 23,802,372 27,839,597 879,341 735,831 765,604 778,992 988,322 1,087,376
388,860 622,579 416,734 689,907 1,087,031 992,274
404,830 159,252 102,124 111,369 186,552 321,672
- 21,753 32,838 3,994 90 18,569
215,358 648,183 2,402,243 366,251 1,769,460 422,892
2,965,430 3,035,468 2,483,627 3,643,769 2,886,137 4,245,776 4,853,819 5,223,066 6,203,170 5,594,282 6,917,592 7,088,559 3,082,721 2,670,582 2,857,982 2,731,318 2,772,796 3,154,727 2,760,849 2,598,401 2,384,184 2,453,827 2,680,650 2,975,209 602,418 645,781 649,898 751,117 793,915 868,370
1,379,802 1,420,155 1,457,637 1,577,596 1,723,216 1,823,849 6,387 5,288 4,236 4,004 3,617 1,485
221,858 320,217 470,547 355,536 867,210 263,012
- - - - 2,162,093 -
8,054,035 7,660,424 7,824,484 7,873,398 8,841,404 11,248,745 $ 12,883,490 12,907,854 $ 14,027,654 $ 13,467,680 $ 15,758,996 $ $ 18,337,304 $ (4,983,843) $ (5,724,309) $ (5,915,233) $ (6,633,871) $ (8,216,491) $ (11,026,720) 34,055 90,899 (216,286) (62,456) 173,115 1,524,427
(4,949,788) (5,633,410) (6,131,519) (6,696,327) (8,043,376) (9,502,293) 91 CITY OF TEHACHAPI
CHANGES IN NET POSITION
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
General Revenues and Other Changes in Net Position
Governmental Activities
Property Taxes 1,184,100 1,209,741 1,266,903 1,349,341
Sales and Use Taxes 1,957,100 2,083,650 2,453,186 2,698,641 Property Tax in Lieu 672,331 429,281 1,199,959 1,298,550 Transient Occupancy Tax 683,826 641,191 705,197 759,381 Licenses and Permits 1,237,753 1,286,961 127,112 189,437 Franchise Tax 210,647 200,726 178,493 204,634
Other Taxes 190,190 259,181 222,329 219,497
Miscellaneous Revenues 45,508 23,912 153,309 32,869
Investment Earnings 34,077 76,980 29,176 81,190
Loss on Disposal - - - -
Transfers In (Out) 4,839 (1,200) (1,502,719) (24,228)
Transfer to Fiduciary Fund - - - -
Total Governmental Activities 6,220,371 6,210,423 4,832,945 6,809,312 Business-type Activities
Miscellaneous Revenues 106,104 405,354 432,926 127,495
Investment Earnings 15,426 9,917 37,177 44,552
Loss on Disposal (122,722) (1,882) (593,231) (458)
Transfers (4,839) 1,200 1,502,719 24,228
Total Business-type Activities (6,031) 414,589 1,379,591 195,817 Total Primary Government 6,214,340 6,625,012 6,212,536 7,005,129 Extraordinary Items
Governmental Activities - - - -
Business-type Activities - - - -
Total Primary Government - - - -
Changes in Net Position
Governmental Activities 4,810,365 1,802,694 943,228 834,706 Business-type Activities (483,655) 41,982 1,912,291 354,959 Total Primary Government $ 4,326,710 $ 1,844,676 $ 2,855,519 $ 1,189,665 Source: Audited Financial Statements
92 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
1,709,886 1,474,140 2,599,168 2,603,683 2,628,604 3,042,445 3,078,646 3,262,346 3,693,947 4,304,461 5,254,833 9,381,335 1,430,560 1,324,876 1,543,538 1,613,664 1,737,124 1,871,998 648,225 801,444 842,473 1,045,539 934,880 1,025,699
261,244 202,440 289,184 341,731 244,420 284,494
225,834 221,053 240,569 282,892 350,465 323,449
202,590 218,386 209,725 214,932 320,952 345,838
62,374 39,192 104,657 33,528 177,289 72,634
234,164 210,812 52,791 (76,210) 232,944 1,028,388
- - - - - -
(158,550) (146,962) (173,027) (147,055) (952) (3,103)
- - - - - -
7,596,139 7,706,561 9,403,025 10,217,165 11,880,559 17,373,177 97,497 77,460 58,527 43,407 154,294 92,331
147,125 130,005 34,183 (1,834) 142,659 197,748
2,482 5,449 15,781 - 48,166 (53,436)
158,550 146,962 173,027 147,055 952 3,103
405,654 359,876 281,518 188,628 346,071 239,746
8,001,793 8,066,437 9,684,543 10,405,793 12,226,630 17,612,923 - - - - - -
- - - - - -
- - - - - -
2,612,296 1,982,252 3,487,792 3,583,294 3,664,068 6,346,457 439,709 450,775 65,232 126,172 519,186 1,764,173
$ 3,052,005 $ 2,433,027 $ 3,553,024 $ 3,709,466 $ 4,183,254 $ 8,110,630 93 CITY OF TEHACHAPI
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
General Fund
Nonspendable 3,787,406 $ 4,568,444 $ 2,768,871 $ 2,320,850 $ Restricted - 212,068 42,463 524,063
Committed 997,993 963,561 1,009,610 927,351
Assigned - - - -
Unassigned 3,427,941 2,863,138 3,475,310 4,525,391
Total General Fund 8,213,340 8,607,211 7,296,254 8,297,655 All Other Governmental Funds
Nonspendable - - - -
Restricted 4,311,304 3,509,814 2,947,084 2,764,787
Committed - - - -
Assigned - - - -
Unassigned (4,399,243) (4,116,912) (4,297,996) (3,798,062) Total All Other Governmental Funds $ (87,939) $ (607,098) $ (1,350,912) $ (1,033,275) Source: Audited Financial Statements
94 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 2,314,383 $ 2,236,527 $ 2,365,185 $ 2,395,992 $ 2,407,760 $ 2,182,926 141,128 - - - - -
951,319 1,061,215 1,158,946 1,185,070 1,346,099 1,588,629 - - - - - -
6,174,235 7,042,898 10,103,854 11,367,536 14,703,044 19,135,835 9,581,065 10,340,640 13,627,985 14,948,598 18,456,903 22,907,390 - - - - - -
3,217,526 3,399,021 3,655,590 4,107,859 4,041,660 3,932,208 - - - - - -
- - - - - -
(3,239,148) (3,846,179) (3,631,307) (3,254,155) (3,640,841) (3,675,349) $ (21,622) $ (447,158) $ 24,283 $ 853,704 $ 400,819 $ 256,859 95 CITY OF TEHACHAPI
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
Revenues
Property Taxes 1,856,431 $ 1,639,022 $ 2,466,862 $ 2,647,891 $ Sales Taxes 1,957,100 2,083,650 2,453,186 2,698,641
Other Taxes 2,457,485 2,464,448 1,293,138 1,396,552
Licenses and Permits 72,610 139,894 158,347 286,062
Grants - - - 3,208,395
Charges for Services 478,874 344,800 291,853 581,969
Interest 34,077 78,117 29,175 81,188
Other Sources of Funds 5,792,420 3,821,298 2,877,046 -
Miscellaneous 874,727 385,755 446,437 20,630
Total Revenues 13,523,724 10,956,984 10,016,044 10,921,328 Expenditures
Current
General Government 1,407,646 1,185,451 1,236,541 1,276,431 Public Works 2,165,018 3,366,282 3,064,968 4,159,918
Public Safety 3,159,926 3,738,870 2,844,104 3,084,772
Community Development 776,844 742,409 1,080,050 987,520 Pass-throughs - - - -
Capital Outlay 2,629,834 2,614,335 2,113,490 411,481
Debt Service
Interest Expense 20,843 19,937 32,756 39,372
Principal 27,792 221,122 196,187 146,693
Total Expenditures 10,187,903 11,888,406 10,568,096 10,106,187 Excess of Revenues Over Expenditures 3,335,821 (931,422) (552,052) 815,141 Other Financing Source (Uses)
Transfers In 535,808 5,773,563 1,128,417 1,883,697
Transfers Out (530,969) (5,774,763) (2,631,136) (1,907,925) Debt Issuance
Proceeds from Leases - 807,334 - 528,125
Total Other Financing Sources (Uses) 4,839 806,134 (1,502,719) 503,897 Extraordinary Items
RDA Dissolution - - - -
Developer Settlement - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances $ 3,340,660 $ (125,288) $ (2,054,771) $ 1,319,038 Capitalized Outlay Amount $ 3,111,820 $ 4,099,228 $ 3,656,833 $ 2,545,855 Debt service as a percentage of noncapital
expenditures 0.7% 3.1% 3.3% 2.5%
Source: Audited Financial Statements
96 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 3,140,446 2,799,016 $ 4,142,706 $ 4,217,347 $ 4,365,728 $ 4,914,443 $ 3,078,646 3,262,346 3,693,947 4,304,461 5,254,833 9,381,335 1,349,364 1,448,320 1,573,953 1,842,072 1,736,341 1,954,215 609,201 424,901 409,306 801,142 1,103,644 866,141
2,430,645 3,086,873 5,733,425 3,669,181 4,042,590 4,441,750 1,044,044 1,149,809 1,012,140 939,400 1,210,712 1,620,632 234,162 210,810 52,792 (76,209) 232,944 1,027,328
- - - - - -
151,647 56,292 113,177 45,779 192,040 80,376
12,533,722 11,942,800 16,731,446 15,743,173 18,138,832 24,286,220 1,233,731 1,293,556 1,388,285 1,634,214 1,875,236 2,355,893 4,086,366 2,208,147 2,241,396 2,375,251 3,013,136 3,572,093 3,437,651 3,700,682 4,934,643 4,805,530 5,444,029 6,929,956 1,094,456 1,286,798 1,158,064 1,480,013 1,734,846 1,763,388 - - - - - -
6,729 2,808,631 2,848,529 3,104,616 2,779,579 5,213,113 51,448 46,407 40,890 38,916 34,211 30,141
169,728 189,254 187,826 227,080 201,423 180,525
10,080,109 11,533,475 12,799,633 13,665,620 15,082,460 20,045,109 2,453,613 409,325 3,931,813 2,077,553 3,056,372 4,241,111 570,811 678,095 567,605 1,166,720 1,473,105 2,887,990
(729,361) (825,057) (740,632) (1,313,775) (1,474,057) (2,891,093) 68,519
- 71,676 - 219,536 - -
(158,550) (75,286) (173,027) 72,481 (952) 65,416
- - - - - -
- - - - - -
- - - - - -
$ 2,295,063 $ 334,039 $ 3,758,786 $ 2,150,034 $ 3,055,420 $ 4,306,527 $ 2,357,831 $ 2,858,759 $ 2,880,792 $ 2,876,208 $ 2,051,440 $ 4,158,093
2.9% 2.7% 2.3% 2.5% 1.8% 1.3%
97 CITY OF TEHACHAPI
ASSESSED VALUE OF TAXABLE PROPERTY (Net Taxable)
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
Residential 359,605,809 $ 380,664,403 $ 399,422,704 $ 428,954,661 $ Commercial 139,595,833 144,701,721 153,166,923 166,465,568 Industrial 30,835,636 32,287,375 33,725,848 34,610,139
Dry Farm - - - -
Government Owned 26,508 8,766 7,170 5,321
Institutional 338,662 535,961 544,130 4,788,656
Irrigated 1,354,301 1,381,356 1,402,417 1,430,459
Recreational 1,422,445 1,452,435 793,833 540,829
Vacant 41,173,555 44,669,511 41,998,586 40,213,440
SBE Nonunitary 395,680 395,680 988,898 988,898
Unsecured 26,310,333 25,511,087 24,690,697 50,321,244
Total $ 601,058,762 $ 631,608,295 $ 656,741,206 $ 728,319,215 Total Direct Rate 0.16116 0.16098 0.16098 0.15920
Tax Exempt $ (1,398,730) $ (3,080,187) $ (37,818,187) $ (47,657,485) 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 2014/15 - 2023/24 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
98 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 460,071,380 $ 504,175,793 $ 532,035,616 $ 557,817,999 $ 601,208,346 $ 641,870,339 174,168,100 186,722,185 199,770,649 206,542,926 219,027,585 239,478,626 34,874,684 35,940,915 36,158,769 36,275,420 38,585,531 42,308,669 - - 102,208 44,663 45,556 46,467
8,020 8,179 8,341 5,291 5,396 820
566,105 840,583 588,968 821,791 606,965 3,456,716
1,074,823 1,096,315 1,370,087 1,384,278 1,411,961 1,364,709 546,325 482,000 491,640 496,732 506,665 1,295,509
40,682,524 36,089,584 37,021,550 39,990,752 47,097,235 50,310,469 604,699 604,699 843,322 843,322 843,322 843,322
29,185,900 33,772,445 37,990,514 40,611,415 43,194,244 45,513,577 $ 741,782,560 $ 799,732,698 $ 846,381,664 $ 884,834,589 $ 952,532,806 $ 1,026,489,223
0.16019 0.16001 0.16721 0.16671 0.16702 0.16689
$ (47,747,124) $ (47,729,486) $ (48,033,396) $ - $ - $ - 99 CITY OF TEHACHAPI
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Rate per $100 of taxable value
2014/15 2015/16 2016/17 2017/18
Agency
Basic Levy 1.00000 1.00000 1.00000 1.00000
Kern Community College 0.01045 0.01357 0.01318 0.03625
Kern County Water Agency 0.01126 0.01357 0.01532 0.01784 Tehachapi Cummings Water State Payment 0.03875 0.03787 0.06940 0.05665 Tehachapi Health Bond 0.07348 0.07811 0.08002 0.08067
Tehachapi Unified School District 0.06396 0.04454 0.05349 0.05000 Total Direct & Overlapping Tax Rates 1.19790 1.18765 1.23140 1.24142 City's Share of 1% Levy Per Prop 13 0.18729 0.18729 0.18729 0.18729 Redevelopment Rate
Total Direct Rate 0.16116 0.16098 0.16098 0.15920
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
100
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.03367 0.03303 0.03385 0.03861 0.03124 0.03426
0.01658 0.01895 0.01771 0.01731 0.01484 0.01315
0.05678 0.05133 0.05005 0.05356 0.05350 0.05373
0.07111 0.07990 0.06737 0.06804 0.05905 0.04268
0.04048 0.05641 0.04659 0.01250 0.00000 0.00000
1.21861 1.23961 1.21556 1.19002 1.15863 1.14382
0.18729 0.18729 0.18729 0.18729 0.18729 0.18729
0.16019 0.16001 0.16721 0.16671 0.16702 0.16689
101
CITY OF TEHACHAPI
PRINCIPAL PROPERTY TAX PAYERS
Current and Nine Years Ago
Owner Value % of Net
AV Owner Value % of Net AV
Walmart $ 2.26 23,239,135 Chuck and Hyon K Yoo $ 2.12 12,744,178 Tehachapi Investment LLC 2.09 21,444,031 Home Depot USA Inc 1.68 10,124,083 Home Depot USA Inc 1.54 15,828,605 Loves County Stores of CA 1.52 9,129,602 Yoo Family Credit Trust 1.50 15,381,464 Chemtool Inc 1.50 9,041,070 Loves County Stores of CA 1.31 13,472,517 Evergreen Hospitality 1.42 8,526,571 Evergreen Hospitality Inc 1.22 12,478,567 Emster XIII LLC 1.36 8,202,816 Pennzoil Quaker State 1.06 10,913,350 Abs California O 1.18 7,121,437 Tehachapi Lodging 1.02 10,430,682 Benz Sanitation Inc 1.11 6,658,754 Pilot Travel Centers LLC 1.01 10,335,127 Mel & Beverly Rubin Trust 1.07 6,453,014 YFP Tehachapi LLC 0.84 8,619,659 Subhash & Hashumati Patel 5,739,862 0.95 Top Ten Total 13.85 142,143,137 Top Ten Total 13.91 83,741,387 Total Taxable Year 100% 1,026,489,223 Total Taxable Year 100% 601,058,762 Source: Kern County Assessor Combined Tax Rolls, The SBE Non Unitary Tax Roll and The HdL Companies
FISCAL YEAR END
2024 2015
102
CITY OF TEHACHAPI
PROPERTY TAX LEVIES & COLLECTIONS
Last Ten Fiscal Years
Fiscal Year End Tax Levied Amount Percent of Levy Amount Percent of Levy 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%
2024 1,605,507 1,605,507 100% 1,605,507 100%
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
103
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
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
2024 607,289 100,103 - - 974,367
Business Type Activities
Source: City of Tehachapi
104
USDA Loan Revenue Bonds
(net of Discount)
Total Primary
Government
Percentage of
Personal Income
Per
Capita
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
161,200 - 1,842,959 16.16% 166
Business Type Activities
105
CITY OF TEHACHAPI
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year
End Tax Allocation Bond
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
2024 No General Bonded Debt
Source: City of Tehachapi
106
CITY OF TEHACHAPI
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES
Last Ten Fiscal Years
2023-24 Assessed Valuation: $1,026,489,223
Total Debt
6/30/24
Percentage
Applicable(1)
City’s Share of
Debt 6/30/24
Overlapping Tax and Assessment Debt
Kern Comm College District Safety, Repair and Imprvmt District $ 82,855,810 0.886% $ 734,102 Kern Comm College District School Facilities Imprvmt District No. 1 377,870,000 0.881% 3,329,035 Tehachapi Valley Healthcare District 56,784,979 15.455% 8,776,119 City of Tehachapi 1915 Act Bonds 2,180,000 100.000% 2,180,000 (2) Total Overlapping Tax and Assessment Debt 15,019,256
Direct and Overlapping General Fund Debt
Kern County General Fund Obligations 97,928,487 0.863% 845,123 Kern County Pension Obligation Bonds 76,148,636 0.863% 657,163 Kern County Board of Education Certificates of Participation 29,985,000 0.863% 258,771 Kern Community College District General Fund Obligations 21,263,000 0.794% 168,828 Kern Community College District Benefit Obligation 71,870,000 0.794% 570,648 Tehachapi Valley Recreation and Park District General Fund 642,860 20.789% 133,644 City of Tehachapi Lease Obligations 607,289 100.000% 607,289 Total Direct and Overlapping General Fund Debt 3,241,466 Overlapping Tax Increment Debt (Successor Agency) 8,237,000 100.000% 8,237,000 607,289
Total Overlapping Debt 25,890,433
Combined Total Debt $ 26,497,722 (3)
Ratios to 2023-24 Assessed Valuation
Total Overlapping Tax and Assessment Debt 1.46%
Total Direct Debt ($607,289) 0.06%
Combined Total Debt 2.58%
Total Overlapping Tax Increment Debt 2.22%
Total Direct Debt(3)
Ratios to Redevelopment Successor Agency Incremental Valuation ($371,495,460) 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
107
CITY OF TEHACHAPI
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2014/15 2015/16 2016/17 2017/18
Assessed Valuation 601,058,762 $ 631,608,295 $ 656,741,206 $ 728,319,215 $ Debt Limit Percentage* 15% 15% 15% 15%
Debt Limit 90,158,814 94,741,244 98,511,181 109,247,882 Total Debt Applicable to Limit
General Obligation Bonds - - - -
Legal Debt Margin $ 90,158,814 $ 94,741,244 $ 98,511,181 $ 109,247,882 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
108
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
$ 741,782,560 $ 799,732,698 $ 846,381,664 $ 884,834,589 $ 952,532,806 $ 1,026,489,223 15% 15% 15% 15% 15% 15%
111,267,384 119,959,905 126,957,250 132,725,188 142,879,921 153,973,383 - - - - - -
$ 111,267,384 $ 119,959,905 $ 126,957,250 $ 132,725,188 $ 142,879,921 $ 153,973,383 0% 0% 0% 0% 0% 0%
109
CITY OF TEHACHAPI
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Net
Fiscal Revenue Operating Available Debt Coverage
Year End Expenses Revenue Service Ratio
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
2024 6,370,325 5,703,448 666,877 152,191 4.38
Water and Wastewater Fund Revenue Pledged Debt
Source: City of Tehachapi
110
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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) 2014 13,286 $ 16,862 224,029 $ 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
2023 11,092 297,763 26,844 7.8% 38.3
(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
111
% of Population % of Population
Age 25+ with Age 25+ with
High School Degree (6) Bachelor's Degree (7)
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%
80.6% 14.3%
112
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
Pearce Renewables 1214 1 30%
California Correctional Institution 1127 2 28%
Tehachapi Unified School District 600 3 15%
Adventist Health Tehachapi Valley 350 4 9%
Walmart 240 5 6%
Home Depot 150 6 4%
Albertson's 120 7 3%
Savemart 85 8 2%
City of Tehachapi 85 9 2%
Waste Management 32 10 1%
Total Top 10 Employers 4003
FISCAL YEAR END
2024 2015
No data is available for the year
2015
Note: The total employment number in 2014/15 is not available.
Source: City of Tehachapi
113
CITY OF TEHACHAPI
FULL AND PART-TIME CITY EMPLOYEES FUNDED BY FUNCTION
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Full-time / Function
Airport 0000000000
Comm Development 2110111111
Development Services 767777 6.84 6.5 5.99 7.75
Fire 0000000000
General Government 11 11 11 11 12 11 12 11.46 12 12.65
Police 18 25 25 25 24 25 26.78 26 26.89 29.07
Public Works 11 10 10 10 13 14 10.48 13.51 14.74 16.68
Wastewater 4 3.5 3.5 3.5 3 3 3 3.07 2.69 2.88
Water 3 4.5 3.5 4.5 4444 4.83 5
Full-time Total 56 61 61 61 64 65 64.1 65.54 68.14 75.03 Part-time / Function
Airport 0 0.4 0000 0.92 0.93 0.84 1
Comm Development 0000000000
General Government 224479 6.12 7.65 8.03 8.11
Police 0001200000
Public Works 0.68 2.24 4367 4.44 4.64 2.67 1.17
Wastewater 0.66 0.63 00000000
Water 0.66 0.73 00000000
Part-Time Total 4 6 8 8 15 16 11.48 13.22 11.54 10.28
GRAND TOTAL 60 67 69 69 79 81 75.58 78.76 79.68 85.31
Source: City of Tehachapi
FISCAL YEAR END
114
CITY OF TEHACHAPI
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
2015 2016 2017 2018
Police
Calls for Service 7,026 6,445 6,321 6,916
Felony Arrests 173 170 302 181
Misdemeanor Arrests 524 491 441 439
Property Loss 384,994 $ 531,857 $ 513,316 $ 358,163 $
Property Recovered 148,698 $ 184,211 $ 137,815 $ 113,831 $ Traffic Citations 109 161 167 170
Traffic Accidents 94 50 102 83
Parking Citations 52 36 123 107
Wastewater
Max. Capacity Million Gallons per Day 1.25 1.25 1.25 1.25 Daily Avg Treated Wastewater Million Glns 0.83 0.81 0.80 0.78 Transit Dial-A-Ride
Ridership 7,057 5,243 4,637 6,368
Mileage 27,027 24,999 22,921 18,331
Days of Service 308 297 305 307
Cost per Rider 27.95 $ 38.81 $ 46.72 $ 41.23 $
Subsidized Cost per Rider 27.14 $ 37.90 $ 45.62 $ 40.13 $ Water
Water Pumping Capacity Acre-feet 1,911 1,995 1,945 1,891 Water Pumped Acre-feet 1,671 1,692 1,855 1,935
Water Sold Acre-Feet 1,495 1,264 1,568 1,664
* Due to change in reporting systems, this information is no longer available Source: City of Tehachapi
FISCAL YEAR END
115
2019 2020 2021 2022 2023 2024
7,415 8,782 7,494 8,659 8,193 7,849
243 221 282 170 205 203
549 413 496 314 559 520
$ 404,772 $ 650,688 $ 588,101 N/A - * N/A - * N/A - *
$ 178,232 $ 198,463 $ 108,287 N/A - * N/A - * N/A - *
175 86 92 100 192 255
116 111 104 95 124 112
260 264 128 97 87 142
1.25 1.25 1.25 1.25 1.25 1.25
0.75 0.73 0.66 0.72 0.67 0.66
5,730 4,385 3,338 3,351 3,408 3,155
18,867 15,007 11,862 11,128 13,387 12,117
304 308 302 303 304 307
$ 47.77 $ 59.47 $ 91.46 $ 71.65 $ 72.57 $ 87.15
$ 46.66 $ 58.27 $ 90.19 $ 70.46 $ 71.51 $ 86.68
1,847 1,879 1,993 2,016 2,352 2,982
1,842 1,888 2,050 2,090 1,741 1,732
1,664 1,648 1,835 1,854 1,516 1,550
FISCAL YEAR END
116
CITY OF TEHACHAPI
CAPITAL ASSETS BY FUNCTION
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Water
Wells 7777777777
Storage Tanks 5555555555
Booster Pumps 3333333333
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 1111111111
Sewer Lift Station 1111111111
Recycled Water Pump Station 11111111
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 1111111111
City-Owned Hangars 5 6 6 7 8 8 9 9 9 12
Parks
Parks 5555555556
Public Works
Streets (lane miles) 162 162 162 162 162 162 162 162 164 164 Traffic Signals 2234455555
Police
Station 1111111111
General Government
City Hall 1111111111
Development Services Building 1111111111
Visitor Center 11111111
Source: City of Tehachapi
FISCAL YEAR END
117
CITY OF
TEHACHAPI
CALIFORNIA
COUNCIL REPORTS
MEETING DATE: MARCH 3,2025 AGENDA SECTION: FINANCE
DEPARTMENT H
CITY MANAG
APPROVED
TO: HONORABLE MAYOR POGON.CORD AND COUNCIL MEMBERS
FROM HAMED JONES, FINANCE DIRECTOR
FEBRUARY 27,2025
PUBLIC HEARING AND PROPOSED RESOLUTION DEALING WITH TRANSIT NEEDS
WITHIN THE CITY
DATE:
SUBJECT:
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:
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:
Monday through Friday:
Saturday:
General Public
Disabled
Children 4 and under Free
6:00 am to 7:00 pm
7:30 am to 5:30 am
s2.00
Sr.oo
Seniors (62 and over) 51.00
Youth (s - ls) 51.00
When comparing the fiscal year (FY) 2023124 operations to FY 2022/23, ridership decreased 7.4o/o whereas the total costs increased LL.Zo/o. Ridership decreased to 3,155 in FY 2023/24 and continued to be significantly impacted by the Covid-19 pandemic down from a pre-pandemic total of 5,729 in FY 2018/19.
TDA requires the City to meet a LO% 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 2023/24 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 in 2O23/2a was O.54% and the City was able to utilize 526,OL2 in Coronavirus Response and Relief Supplemental Appropriation Act a
(CRRSAA) funding to meet the 10% requirement. By meeting the required ratio, the City is eligible to receive up to 5835,678 in FY 2024125 from the LocalTransportation 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, reusable informational banners, brochures, digital ads in The Loop and on lobby TVs, and social media advertising in both English and Spanish. More recent expanded efforts include a locally produced Public Service Announcement (PSA) and an advertising panel at Valley Park. Transit service information, including the PSA, is also posted on the City's official website.
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 establishment of a new system" in order to received TDA Article 4 and Article 8 funds. This resolution also authorizes the City Managerto execute and file claims forTDA apportionment and allocations for FY 2025/26. The public hearing notice was published in the Tehachapi News on January 29,2025.
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 2025126 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.
City of Tehachapi
Tehachapi Dial-A-Ride from July 1,2023 through Juno 30,2024 RIDERSHIP: City Only
Total Cost 2023/24 us 2022123: 1'l.1 .2OoA
Ridership 2023124 vs 2022123:
Total Cost per Ridet 2023124 w 2022123:
Contract Cost 2023124 w 2022123:
Total Cost per Rider: $
Subsidized Cost per Rider: $
Contracl Cost per Rider: $
Subsidized Conlract Cost per Rider: $
Fare Box Ratio without Subsidy:
Fare Box Ratio with Subsidy:
Contract Cost
National Ero lnsuranco Stodqe F@l Mrid N.tl ExD Adm Covad-19 Olher Dapecln Total
July 6,569.13 435.1 1 102.50 905.26 48.18 4.662.64 13.93 't2,736.75 August 8.100.95 523.O1 102.50
102.50
975.70 25.92 5.355.38 252 55 15.376.01
September 7.287 .25 470.49 1.124.34 271.39 4.817.46 14.40 14,087.83 October 7.776.50 502 08 102.50 940.26 't02.77 5.140.89 236.52 14,801 .82 November 7.436.60 480 13 102.50 577.35 268.27 4.509.40 244.72 1 3,6'18.97 De@mber 7.247.25 470.49 '102.50 58.06 52.45 4.418.84 306.48 12,696.07 January 7,776.50 502.O7 '102.50 296.44 320.74 4.796.03 3,640.55 17I34.87 February 7,452.O5 481 .13 102.50 37.58 66.34 4.743.42 74.46 12.997.48 March 7.61 1 .70 491 44 102 50 167 .79 67.70 4.77'1.54 '1 '13.08 13,325.75 April 7.776.50 502.O7 102.50 't '10.55 56.90 4,796.03 331 .09 13,675.64 Mav 7,776.50 502.07 102.50 603.78 14't.32 4.796 27 52.16 13,974.60 June 7,287.25 470.49 102.50 3'18.30 226.42 4,710.50 59.28 13,180.74 Total 90.1 38.1 8 5.830.58 1.230.00 6.1 15.41 1.644.44 57.564.40 0.00 0.00 5.379.52 '167,906.53 $ 274.973.69
$ 26,01 1.68
General Fund Subsidy:
CRRSSA,/ARPA Subsidy
92.59%
1 20.09%
106.230k
2023t21
87.1 5 $
86.68 $
2022123
72.57 71.51
53.22 $
52.75 $
46.39 45.33
0.54%
10%
1.46%
N/A
Month ng Hours Ridership Mileage Fairbox Revenue $ Contract Service Cltv Countv Citv County Citv County Citv County Citv County Cltv County July 25 '176.88 17688 241.50 241 50 741.40 741.40 0.00 000 12,7 .75 12,736.75 Auqusl 27 19663 196 63 243.50 243 50 820.96 820 96 0.00 000 1 5,376 01 15.376.01 September 25 176.88 1 76.88 343.50 343 50 1'12'1.68 '1121 68 23a.',t5 238 15 14 087 83 14 047 A2 October 26 188.75 1 88.75 379.50 379 50 1 078.35 '1078 35 221.48 221.48 14,80'1.82 14,801.8'l November 26 180.50 180 50 310.50 31 0.50 1237.59 1237.59 246.35 246 35 13 618 37 13,618 98 December 26 17688 176 88 1 56.50 156 50 1 049.81 1049 8'l 0.50 050 '12,696.07 12 696 07 Januarv 26 188 75 188 75 281 00 281 00 908.00 908.00 200.00 200 00 17 434 a7 17 434 A7 February 24 24 180.88 180 88 272.50 272 50 938 00 938 00 191.93 191 93 243 5A
143 20
12.997 4A 12.997 48
March 26 26 1U.75 l8/.75 307.50 307 50 '1110.00 1 1 '10.00 243.54 13 325 75 13,325 75 Apnl 188 75 '188 75 242 00 242 00 810.40 810 40 143.20 '13.675.64 '13 675 65 May 26 188 75 188 75 190.00 190.00 1 198.50 1 198 50 0.00 000 '13,974.60 I 3,974 60 June 25 176 88 176 88 '187.00 187 00 1m2 30 1062 30 0.50 0.50 13,'180.74 13.180 73 Total 307 307 2.205.3 2.205.3 3.155.0 3.155.0 '12.117.O 12.117.O $1.485.69 $'r.485.69 $167.906.53 $ 167,906.52 Averaoe 25.58 25.58 143.77 183.77 loJ 263 1,O09.75 1 .009.75 $ 123.81 $ 123.81 $ 13,992.21 't3,992.21 Davs Der Month ODeratino Hrs Der Mo. Passenoers oer Month l\riles per Month Avo Fairbox Revenue/Mo Avq. ExDense/ Mo.
General Public Senlor/Di3abled/Youth Age 4tunder Total
Cash
Tickets/
Passes Cash
Tickets/
Passes Non Payino Riders
Julv 241.5
Auoust 243.5
September 42.O 35.0 101 .5 7.O 158.0
October 33.0 24.5 95.5 91.5 135.0
November 37.O 25.5 110.5 41.0 96.5
0.5 'r Deember 56.0
January 39.0 '18.0 84.0 22.O 1 18.0
February 31.0 35.0 70.0 19.0 1',17.5
March 37.0 42.O 95.5 27.O 106.0
April 25.5 15.0 67.5 6.5 127.5
Mav '190.0
June 0.5 '186.5
241.5
243.5
343.5
379.5
310.5
156.5
281.0
272.5
307.5
242.O
't 90.0
187.0
Total 245 196 625 215 1.876 3,155.0
440 839 1 ,876
)ercentage 'l4Vo 27o/o 59% I
2023124 fo!€l Expense:
Davs c 56ruice
CITY OF
TEHACHAPI
LEGAL DEPARTMENT
2025
PASSED AND ADOPTED by the City Council of the City of Tehachapi this 3rd day of March, RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIT OF THE CITY OF
TEHACHAPI FINDING THAT THERE ARE NO UNMET TRANSIT
NEEDS THAT ARE REASONABLE TO MEET WITHIN THE CITY.
WHEREAS, the City of Tehachapi City Council conducted a public hearing on Monday, March 3,2025, 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 lT 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 2025-26 and that the City Manager is authorized to execute said claims.
CITYOF
TE}IACHAPI
LEGAL DEPARTMENT
AYES:
NOES:
ABSENT:
ABSTAIN:
JOAN POGON-CORD, 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 3, 202s
TORI MARSH, CITY CLERK
City of Tehachapi, California