Tulare City Council
September 17, 2024

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Client: CITY OF TULARE
Engagement: 6-30-23 Audit
Current Period: 06/30/2023
Workpaper: Attachment: Corrected Material Audit Adjustments Account Description
Workpaper
Reference Debit Credit Net Income Effect
AJE03 L205
To post opening for new finance lease.
601-9999-0000 Cash w/fiscal agent 12,982,126.00 0.00
601-9998-0000 Proceeds from issuance of debt. 0.00 12,982,126.00 Total 12,982,126.00 12,982,126.00 12,982,126.00
AJE05 RE200
To correct grant reimbursement revenue that should have been recognized in the prior period 008-3317-0200 PLHA PROGRAM GRANT 318,433.00 0.00
008-0299-0000 Prior Period Adjustment (PPC created) 0.00 318,433.00 Total 318,433.00 318,433.00 (318,433.00)
AJE07 EX675
To accrue payment to TCRTA as loan receivable.
009-4130-2017 PROFESSIONAL & TECHNICAL SERVI 0.00 1,500,000.00 009-0012-011 Loan Receivable (PPC CREATED ACCT) 1,500,000.00 0.00 Total 1,500,000.00 1,500,000.00 1,500,000.00
AJE10
To post PPA for opening interest payable accrued in the governmental funds. 017-0271-0001 PRIOR PERIOD ADJUSTMENT - PPC CREATED ACCT 0.00 250,250.00 017-4115-8318 2018 LEASE REV BONDS - INTEREST 250,250.00 0.00 Total 250,250.00 250,250.00 (250,250.00)

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council
City of Tulare, 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 Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Tulare, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated September 11, 2024.

Report on Internal Control over Financial Reporting
In 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 opinions 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. A significant deficiency is a deficiency, or a 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 significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described in the accompanying schedule of findings as item 2023-001 that we consider to be a material weakness.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

8.1 General Business Page 7 ATTACHMENT 2
The City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
September 11, 2024

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Findings
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued: Unmodified

Internal control over financial reporting:

Material weakness(es) identified: X Yes No
Significant deficiency(ies) identified-
not considered to be material weakness? Yes X None reported

Noncompliance material to financial statements noted? Yes X No SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2023-001 – Financial Close and Reporting (Material Weakness) Condition: The City’s financial balances and activity required various adjustments during the audit to reflect complete and accurate financial statements presented in accordance with generally accepted accounting standards in the United States of America (GAAP).

Criteria: As described in the California State Controller’s “2015 Internal Control Guidelines” an effective internal control system and timely financial reporting of all financial activity provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations. This includes the design and implementation of control systems that ensure accurate financial reporting in accordance with applicable standards and regulations.

Cause: The City’s year-end closing process was incomplete or improperly designed, failing to identify omissions and errors in the City’s financial data in accordance with GAAP. Contributing to this issue was a lack of sufficient resources within the finance and administration department in recent years, including staff turnover and inadequate staffing levels resulting in new personnel with significant oversight over the financial close.

Effect: Various adjustments were required to correct the City’s general ledger during our audit, including the following:

1. Fund balance - opening fund balance/net position did not reconcile to the prior year ending balance reported by the City for two (2) City financial statement funds (approximate $83k misstatement in the General Fund and $169k in the internal service funds).

2. Bank reconciliation – The City’s bank reconciliations were initially misstated by approximately $141k as a result of journal entries posted by the City but not considered on the reconciliation.

3. Omission of finance leases – the City did not record debt proceeds related to the finance lease noted during the year. In addition, the related debt balances and repayment information was not included in the City’s debt schedules (approximate misstatement of $12.9m).

4. Fiduciary activities – previously reported fiduciary activities were determined to be related to the City’s own revenue source (developer impact fees) and accordingly, reclassified as a special revenue fund (approximately $21.6m restatement of fund balance/fiduciary net position).

5. Grant revenues – Grant revenues were recorded in the current year that relate to the prior year (approximately $318k overstatement of current year revenues).

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Findings
SECTION II – FINANCIAL STATEMENT FINDINGS (Continued)
Finding 2023-001 – Financial Close and Reporting (Material Weakness) (Continued) Effect: (Continued)

6. Unrecorded loans – Unrecorded loans and interfund advances activity identified a $1.5m loan made to other organizations not recorded, in addition to interfund advances that were not repaid in accordance with City established agreements (approximate $205k misstatement).

7. Opening capital assets – Opening Capital assets balances and accumulated depreciation identified $36.7m of duplicated accumulated depreciation for various infrastructure capital assets recorded by the City, in addition to various differences in opening balances when compared to the prior year financial statements.

8. Unidentified retirement plan – Unidentified retirement plan identified a retirement plan that was not considered during the city’s calculation of liability balances under GASB68.

Recommendation: We recommend that the City reevaluate the current design of the City’s year-end close and incorporate a more rigorous review by those with appropriate skills, knowledge, and experience to identify errors and omissions of financial information in accordance with GAAP. In addition, the City should consider whether additional resources within the finance and administration department are needed to incorporate a more timely and sufficient year-end financial close process.

Management’s Response: See Corrective Action Plan.

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Prior Year Findings

FINANCIAL STATEMENT FINDINGS
Finding 2022-001 – Controls over Financial Reporting (Material Weakness) Condition: During our audit, we noted that the City’s internal controls over financial reporting were not sufficient to ensure the timely and accurate recording of transactions in accordance with Governmental Accounting Standards Board (GASB) Statements. All adjustments that were proposed during the current year’s audit were traced to their origins and presented to management, where they were approved and subsequently posted to the financial statements.

Criteria: In accordance with Government Auditing Standards, internal controls should be suitably designed over the financial reporting process to ensure ending account balances are materially correct in a timely manner. An entity should oversee the internal controls over the financial reporting process to ensure the following: (1) that the general ledger undergoes adequate procedures to ensure the proper application of fiscal year cut-off soon after the fiscal year ends, (2) that the general ledger fiscal period is closed and related financial statement supporting schedules are prepared in a timely manner allowing for a more efficient audit, and (3) that the final trial balance figures are prepared in time to be subjected to sufficient management review so that balances are presented in accordance with accounting principles generally accepted in the United States of America (GAAP).

Cause: Management and full finance year-end team turn-over, gaps in staffing and reduced staffing levels during the year-end period, and lack of staffing to properly implement the internal year-end procedures and controls established for financial reporting.

Effect: The identified weaknesses in internal controls over financial reporting could result in misstatements in the City’s financial statements, which may not be prevented or detected in a timely manner.

Recommendation: We recommend that the City undertake several measures to strengthen its internal controls over financial reporting. First, the City should develop, document, and implement formal policies and procedures related to the financial reporting process, encompassing procedures for journal entry review and approval, account reconciliations, and financial statement preparation. Second, the City should provide ongoing training and guidance to personnel involved in the financial reporting process, ensuring they understand their roles and responsibilities and are competent in performing their duties. Third, the City should review staffing levels and responsibilities to ensure an adequate segregation of duties, considering reallocating tasks or hiring additional personnel as necessary to address any identified gaps. Finally, the City should establish a periodic review process to evaluate the effectiveness of internal controls over financial reporting and make necessary improvements as needed.

Status: Not implemented in current year, See finding 2023-001.

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Corrective Action Plan

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To the City Council and Management of the
City of Tulare, California
In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Tulare, California (the City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s system of 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 opinions 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.

However, during our audit we became aware of deficiencies in internal control other than significant deficiencies or material weaknesses and other matters that are opportunities for strengthening internal controls and operating efficiency. The following points summarize our comments and suggestions regarding those matters.

Fund Type Classifications
During our audit, we identified instances whereby certain activities were reported in fund types that did not match the nature of the activities reported in this fund. The City may have activities reported in the wrong fund types, and a review should be conducted in accordance with GASB standards to make necessary adjustments. Our recommendation is to review fund classifications to ensure that all activities align with GASB definitions for governmental, proprietary, and fiduciary funds.

Correct fund classification is essential for accurate financial reporting and compliance with GASB, as misclassified activities can distort financial statements and affect budgetary decisions. Working with department heads and providing staff training on fund types can reduce errors in the future.

Internal Service Fund Allocations
During our audit, we identified that the city’s Internal Service Fund (ISF) net position is significant, raising concerns that charges may not be allocated correctly. We recommend reviewing and updating the allocation charge methodology to ensure that costs are equitably distributed based on services rendered and actual usage. Ensuring that charges are fair and aligned with the benefits received by various departments will help avoid over- or under-funding ISFs. By regularly reviewing the allocation methodology, the city can maintain a balanced ISF while supporting transparency and compliance with fullcost recovery principles.

Estimated Compensated Absences – Current Portion
During our audit, we became aware that the City does not have an established policy for estimating the current portion of compensated absences, which is the amount expected to be redeemed by employees one year from the date of the balance sheet. The City should establish an objective methodology for determining the current portion of compensated absences, particularly the expected utilization within one year. We recommend developing a methodology based on historical usage trends, employee demographics, and any relevant policy changes. This will provide a reliable estimate for financial reporting, ensuring compliance with accounting standards and providing a clear picture of liabilities in the financial statements.

Regularly updating this estimate will improve its accuracy as the workforce or leave policies change.

8.1 General Business Page 13 ATTACHMENT 3
Allowance for Doubtful Accounts - Utility Billings
During our audit, we identified that the City does not have an established allowance for doubtful accounts, which are amounts billed to customers that are not expected to be collected in cash or other consideration. The city should create an estimate for an allowance for doubtful accounts related to utility revenues not expected to be collected. We recommend analyzing historical collection rates and economic conditions to develop a formula that categorizes accounts by the likelihood of being collected, following GAAP guidelines. This estimation will ensure that financial statements accurately reflect the revenue the city can reasonably expect to collect. Regularly reviewing and updating this estimate ensures that it stays relevant in light of changing economic factors or customer behavior.

We will review the status of this comment during our next audit engagement. We have already discussed the comment with City personnel, and we will be pleased to discuss it in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

The communication is intended solely for the information and use of City management, City Council, and others within the City, and is not intended to be, and should not be used by anyone other than those specified parties.

Sincerely,
Clovis, California
September 11, 2024

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CITY OF TULARE | CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Annual Comprehensive Financial Report

TABLE OF CONTENTS
PAGE

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................................. i Principal City Officials ...........................................................................................................................................................vi Departmental Organization Chart ....................................................................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting ..................................................................................... viii

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

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................................... 22 Statement of Activities ............................................................................................................................................... 23 Fund Financial Statements:

Governmental Funds:

Balance Sheet ....................................................................................................................................................... 25 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 26 Statement of Revenues, Expenditures, and Changes in
Fund Balances .................................................................................................................................................... 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 28 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 29 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 30 Statement of Cash Flows ...................................................................................................................................... 31 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 32 Statement of Changes in Fiduciary Net Position .................................................................................................. 33 Notes to the Basic Financial Statements ............................................................................................................................ 35

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:

Pension Plans:

Agent Multiple Defined Benefit Pension Plan:

Schedule of Changes in the Net Pension Liability and Related Ratios ................................................................. 78 Schedule of Contributions .................................................................................................................................... 79 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of the Net Pension Liability ............................................................. 80 Schedule of Contributions .................................................................................................................................... 81 Retiree Healthcare Plan (OPEB):

Schedule of Changes in the Net Other Post-Employment
Benefits (OPEB) Liability and Related Ratios ...................................................................................................... 82 Schedule of Other Postemployment Benefits Contributions ............................................................................... 83 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund (GAAP Basis) ......................................................................................................................................... 84 Measure R Fund .......................................................................................................................................................... 85 American Rescue Plan Act Fund .................................................................................................................................. 86 Home Program Fund ................................................................................................................................................... 87 Financing Authority Fund ............................................................................................................................................ 88 Notes to the Required Supplementary Information .......................................................................................................... 89 Combining and Individual Fund Statements and Schedules:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................... 93 Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................................ 94 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................... 96 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Senior Services Fund ............................................................................................................................................ 98 Encampment Resolution Grant Fund ................................................................................................................... 99 Housing Redevelopment CDBG Fund ................................................................................................................. 100 Gas Tax Fund ...................................................................................................................................................... 101

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
Combining and Individual Fund Statements and Schedules: (Continued) Nonmajor Special Revenue Funds: (Continued)
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: (Continued) Traffic Safety Fund ............................................................................................................................................. 102 COPS – State Grant Fund .................................................................................................................................... 103 Landscape and Lighting Fund ............................................................................................................................. 104 OTS Grant Fund .................................................................................................................................................. 105 Vehicle Abatement Fund .................................................................................................................................... 106 Nonmajor Capital Projects Fund:

Balance Sheet ............................................................................................................................................................ 108 Statement of Revenues, Expenditures and Changes in Fund Balance ...................................................................... 109 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ....................................... 110 Internal Service Funds:

Combining Statement of Net Position....................................................................................................................... 112 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................ 113 Combining Statement of Cash Flows ......................................................................................................................... 114 Schedule of Expenditures by Department – Budgetary Level of Control – Budget and Actual (GAAP Basis) – General Fund ........................................................................................................... 116 Expenditures – Budget and Actual – Measure I Sales Tax Revenues and Related Expenditures ............................................................................................................................................... 117 Long-Term Debt Recorded in Private Purpose Trust Fund ............................................................................................... 118

STATISTICAL SECTION
Net Position by Component ............................................................................................................................................. 121 Changes in Net Position ................................................................................................................................................... 122 Fund Balances of Governmental Funds ............................................................................................................................ 124 Assessed Value and Estimated Actual Value of Taxable Property ................................................................................... 125 Direct and Overlapping Property Tax Rates ..................................................................................................................... 126 Historical Sales and Use Tax Rates ................................................................................................................................... 127 Principal Property Tax Payers ........................................................................................................................................... 128 Assessed Value and Estimated Actual Value of Taxable Property ................................................................................... 129

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Annual Comprehensive Financial Report
TABLE OF CONTENTS (Continued)
PAGE
STATISTICAL SECTION (Continued)
Assessed Value of Property by Use Code, City-Wide ....................................................................................................... 130 Property Tax Levies and Collections ................................................................................................................................. 131 Schedule of Taxable Sales by Category ............................................................................................................................ 132 Principal Producers ........................................................................................................................................................... 133 Ratios of Outstanding Debt by Type ................................................................................................................................. 134 Ratios of Outstanding Debt by Type ................................................................................................................................. 135 Ratio of General Bonded Debt Outstanding ..................................................................................................................... 136 Direct and Overlapping Debt ............................................................................................................................................ 137 Legal Debt Margin Information ........................................................................................................................................ 138 Pledged Revenue Coverage .............................................................................................................................................. 139 Demographic and Economic Statistics ............................................................................................................................. 140 Principal Employers .......................................................................................................................................................... 141 Full-Time and Part-Time City Employees by Function ...................................................................................................... 142 Operating Indicators by Function ..................................................................................................................................... 143 Capital Asset Statistics by Function .................................................................................................................................. 144

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INTRODUCTORY SECTION

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i

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ii

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iii

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iv

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v

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Principal City Officials
vi

CITY COUNCIL
Terry Sayre Mayor, District 2
Patrick Isherwood Vice Mayor, District 5
Jose Sigala Council Member, District 1
Stephen Harrell Council Member, District 3
Dennis A. Mederos Council Member, District 4

BOARD OF PUBLIC UTILITIES COMMISSIONERS
Howard Stroman President
Ray Fonseca Vice President
Thomas Griesbach Commissioner
Rene Soto Commissioner
Tony Sozinho Commissioner

ADMINISTRATIVE OFFICIALS AND DEPARTMENT HEADS
Marc Mondell City Manager
Janice Avila Human Resources Director
Jason Glick Community Services Director
Fred Ynclan Chief of Police
Joshua McDonnell Deputy City Manager
Michael Miller City Engineer
Traci Myers Community & Economic Development Executive Director Michael Ott Fire Chief
Diego Ibanez Finance Director/Treasurer
Trisha Whitfield Public Works Director
Jason Bowling Information Technology Director

8.1 General Business Page 26
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Department Organization Chart
vii
Finance
Diego Ibanez,
Director
Budget, ACFR,
Utility Billing,
Successor
Agency,
Treasury,
Business
Licenses, Payroll
Community
Development
Mario Anaya,
Director
Planning,
Building, Permit
Center, Housing
Information
Technology
Jason Bowling,
Director
Software and
Systems,
Management,
Technical
Support,
Geographic
Information,
Systems (GIS),
Grants
Coordination
Public Works
Trisha Whitfield,
Director
Solid Waste
Recycling
Water Sewer
Surface Water,
Wastewater,
Fleet, Transit
Engineering
Michael Miller,
Director
Capital
Improvements,
Traffic, Site
Permitting and
Inspections, City
Development,
Standards,
Project
Management,
Surveying
Police
Fred Ynclan,
Chief
Administraiton,
Patrol,
Investigations,
Animal Services,
Community
Outreach,
Emergency Operations
Fire
Michael Ott,
Chief
Administration,
Suppression
Prevention,
Training, Weed
Abatement,
Community
Outreach,
Emergency
Operations

CITIZENS OF TULARE

CITY COUNCIL
Office of the City Clerk
Melissa Hermann, Chief Deputy
City Clerk, City Council and Board of Public
Utilities Agendas and Minutes, Public Records
Requests, Legislative Reporting
Administration
Mario Zamora, City Attorney
Community
Services
Jason Glick,
Director
Parks and
Recreation,
Library, Senior
Services, Concert
Series, Homeless
Shelter
Human
Resources
Janice Avila,
Director
Employee
Benefits,
Contract
Management,
Personnel Rules,
Risk
Management,
Purchasing,
Payroll
Administration
Josh McDonnell, Deputy City Manager
Public Information Officer
Economic Development Secondary
Administration
Marc Mondell,
City Manager
Economic
Development,
Legislative
Coordination
Office of Safety, Compliance and Facilities
Manny Correa, Administrator Safety,
Code Enforcement, Emergency
Coordination, Facilities, Property
Management
Economic Development and
Redevelopment
Traci Myers, Executive Director Economic
Development Redevelopment

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Certificate of Achievement for Excellence in Financial Reporting viii

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FINANCIAL SECTION

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1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Tulare, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tulare, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

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.

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2 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 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 the Required Supplementary Information (RSI), as noted in the table of contents, be presented to supplement the basic financials 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 and individual nonmajor fund financial statements and other supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the other supplementary information are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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3 Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon.

Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 11, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s 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 City’s internal control over financial reporting and compliance.

Clovis, California
September 11, 2024

8.1 General Business Page 32
4 Management’s Discussion and Analysis

8.1 General Business Page 33
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
5 This discussion and analysis of the City of Tulare's (the City) financial performance provides an overview of the City's financial activities for the fiscal year ended June 30, 2023. The Government-Wide statements present a combined picture of the City on a full accrual basis of accounting, where all debts and assets are included in the presentation. Conversely, the Fund level statements present a picture that is based on a modified accrual basis of accounting, where long-term assets and debts are excluded. Thus, Government-Wide and Fund level presentations produce different results based on the type of accounting basis used. Please read this document in conjunction with the accompanying Transmittal Letter and the Basic Financial Statements.

FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $433.94 million at the close of the most recent fiscal year, which is a $93.63 million, or 27.51%, increase in comparison with the prior year. Of this amount, $171.94 million (unrestricted net position) may be used to meet the City's ongoing obligations to its citizens and creditors. The City has $261.99 million in net investment in capital assets.

The total net position includes all major infrastructure networks. • The City's total net position increased by $33.99 million over the prior fiscal year. The majority of this increase is attributable to the increase in capital assets of $5.93 million (net of accumulated depreciation). • As of the close of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $105.97 million, an increase of $51.06 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned, and unassigned fund balances. Of this amount, $41.65 million is restricted by law or externally imposed requirements and $858,956 is committed for specific purposes.

Assigned amounts of $6.48M were noted, which are those constrained by the City’s intent. • The City's total outstanding debt showed a net increase of $5.73 million due to a decrease of $7.26 million due to consistent execution of regular annual principal payments and an increase of $12.98 million attributable to the new ENGIE solar project lease-purchase agreement.

OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

THE GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statements present the financial picture of the City using the economic resources measurement focus and the accrual basis of accounting. They present governmental activities and business-type activities separately. Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards Board (GASB) statements in regard to interfund activity, payables, and receivables.

The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

These two statements report the City's net position and changes in it. Net position is the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources, which is one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net position are one indicator of

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
6 whether its financial health is improving or deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base.

In the Statement of Net Position and the Statement of Activities, we separate the City activities as follows:

Governmental Activities - Most of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Parks, Recreation, and Library. Property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants generally finance these activities.

Business-Type Activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City's Water Fund, Sewer Fund, Solid Waste Fund, Community & Economic Development Services Fund, Aviation Fund, and Transit Fund are reported in this category.

The Fund Financial Statements include statements for each of the three categories of activities - governmental, businesstype, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The business-type activities and fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the difference created by the integrated approach.

FUND FINANCIAL STATEMENTS
The City, like other state and local governments, uses fund accounting to account for a number of funding sources and activities. In general, fund accounting provides a mechanism for separately accounting for a variety of different funding sources, and enables the City to demonstrate compliance with legal and/or contractual requirements that may be associated with these funds. Thus, the accompanying fund financial statements present individual funds, organized into one of three groups based on the nature of the activities and their purpose: Governmental, Proprietary, or Fiduciary Funds. Note that the fund financial statements only present the most significant (or major) funds. In addition, the fund financial statements include a schedule that reconciles the Fund Financial Statements to the Government-Wide Financial Statements. This is designed to explain the difference created by the integrated approach.

Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences of results in the Governmental Funds Financial Statements to those in the Government-Wide Financial Statements are explained in a reconciliation schedule following each Governmental Funds Financial Statement.

Proprietary Funds - When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Fund Net Position. In fact, the City's enterprise funds are the same as the business-type activities reported in the Government-Wide Financial Statements, but provide more detail and additional information, such as cash flows, for proprietary funds. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City's other programs and activities - such as the City's self-insurance, fleet maintenance, and purchasing funds. The internal service funds are reported with governmental activities in the Government-Wide Financial Statements.

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
7 Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City's fiduciary activities are reported in a separate Statement of Net Position. The City excludes these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to Basic Financial Statements - The notes to basic financial statements provide information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements.

Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain "required supplementary information" concerning the City's progress in funding its obligation to provide pension and other postemployment benefits to its employees and budgetary comparison schedules for the General Fund and other major funds.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $433.94 million at the close of the most recent fiscal year, which is a $93.63 million, or 27.51%, increase in comparison with the prior year.

The largest portion of the City's net position (60.38%) reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure, and equipment), less any related debt used to acquire those assets that is still outstanding and cash and investments with fiscal agents which are restricted for capital assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Of the total $746.87 million in assets, approximately 31.3%, $233.50 million, consists of cash and investments. These funds are invested in accordance with State law and the City's investment policy and include funds legally and/or contractually restricted as to their use.

8.1 General Business Page 36
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
8 City of Tulare
Statement of Net Position
As of June 30, 2023 and 2022
2023 2022 2023 2022 2023 2022
ASSETS
Current and other assets $ 117,984,303 164,782,571 $ 109,263,738 $ 108,303,623 $ 274,046,309 $ 226,287,926 $ Capital assets (net of depreciation) 123,521,023 162,331,676 310,488,834 306,456,458 472,820,510 429,977,481 Total assets 241,505,326 327,114,247 419,752,572 414,760,081 746,866,819 656,265,407

DEFERRED OUTFLOWS OF RESOURCES
Pensions 11,148,568 25,286,055 5,836,395 2,204,045 31,122,450 13,352,613 Other post-employment benefits (OPEB) 338,175 378,128 150,941 168,774 489,116 546,902 Deferred charges - - 880,539 926,807 880,539 926,807
Total deferred outflows of resources 11,526,696 25,624,230 6,867,875 3,299,626 32,492,105 14,826,322

LIABILITIES
Current and other liabilities 28,638,394 23,475,512 5,299,845 7,535,790 28,775,357 36,174,184 Long-term liabilities 60,369,771 100,129,532 210,153,311 208,438,063 310,282,843 268,807,834 Total liabilities 89,008,165 123,605,044 215,453,156 215,973,853 339,058,200 304,982,018

DEFERRED INFLOWS OF RESOURCES
Pensions 4,294,615 18,285,760 574,045 5,039,089 4,868,660 23,324,849 Other post-employment benefits (OPEB) 922,891 651,953 411,923 290,994 1,334,814 942,947 Leases 9,427 28,283 151,313 375,474 160,740 403,757
Grants 1,132,760 - - - - 1,132,760
Total deferred inflows of resources 20,098,756 5,226,933 1,137,281 5,705,557 6,364,214 25,804,313

NET POSITION
Net investment in capital assets 99,554,621 139,655,205 122,335,466 112,236,168 261,990,671 211,790,789 Restricted for capital improvements 1,186,861 - - - - 1,186,861 Unrestricted 43,183,619 84,251,295 87,694,544 84,144,129 171,945,839 127,327,748 Total net position $ 143,925,101 223,906,500 $ 210,030,010 $ 196,380,297 $ 433,936,510 $ 340,305,398 $ Governmental Activities Business-Type Activities Total
Governmental Activities - Total assets for governmental activities increased by $85.61 million, with a current and other assets in governmental activities increase of $46.80 million and a capital assets increase of $38.81 million. Total liabilities increased by $34.60 million with current and other liabilities decreasing by $5.16 million and long-term liabilities increasing by $39.76 million.

Of the $79.98 million increase in governmental activities total net position, unrestricted net position increased by $40.07 million, restricted assets decreased by $1.19 million, and net investment in capital assets increased by $40.10 million.

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
9 Business-Type Activities - Total assets for business-type activities increased by $4.99 million with an increase in current and other assets of $960.12 thousand and an increase in capital assets of $4.03 million. Total liabilities decreased by $520.70 thousand with current and other liabilities decreasing by $2.24 million and long-term liabilities increasing by $1.72 million. Total net position for business-type activities increased by $13.65 million. Business-type activities unrestricted net position increased by $3.55 million.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2022 and 2023. The City's total revenues of $151.37 million exceeded transfers and expenses of $117.37 million for an increase in net position of $33.99 million.

Statement of Activities
As discussed earlier, the Statement of Net Position provides a measure of the financial health of an entity at a specific date in time (usually year-end). The Statement of Activities provides details of how net position changed from the beginning of the year to the end of the year, and whether net position increased or decreased. Thus, it indicates whether the City as a whole is better off at June 30, 2023, than it was at June 30, 2022.

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
10 City of Tulare
Statement of Activities
For the Years Ended June 30, 2023 and 2022
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022

REVENUES
Program revenues:

Charges for services $ 7,289,430 12,040,385 $ 64,966,731 $ 67,038,761 $ 77,007,116 $ 74,328,191 $ Operating grants and contributions 4,016,675 4,472,609 147,199 520,616 4,619,808 4,537,291 Capital grants and contributions - 7,031,876 942,334 - 7,974,210 - General revenues:

Taxes 53,016,245 56,977,275 - - 56,977,275 53,016,245
Rental income - 154,677 - - 154,677 -
American Rescue Plan Act - 3,176,975 - - 3,176,975 -
Gain on disposal of fixed assets - 293,000 - - 293,000 - Investment earnings (losses) (3,824,988) (563,004) (400,461) (4,361,145) (963,465) (8,186,133) Miscellaneous 9,111,514 1,478,957 648,333 2,958,688 2,127,290 12,070,202 Total revenues 69,608,876 85,062,750 66,304,136 66,156,920 151,366,886 135,765,796

EXPENDITURES
Governmental activities:

General government 15,851,263 6,713,368 - 15,851,263 - 6,713,368 Intergovernmental 10,575 - - - 10,575 -
Public safety 31,723,979 22,486,173 - 31,723,979 - 22,486,173 Public works 3,046,291 3,831,706 - 3,046,291 - 3,831,706 Community development 2,920,799 12,010,940 - 2,920,799 - 12,010,940 Community services 8,483,177 7,658,997 - 8,483,177 - 7,658,997 Library and cultural 1,756,273 4,379,160 - 1,756,273 - 4,379,160 Interest on long-term debt 914,972 878,845 - - 878,845 914,972 Business-type activities
Aviation - - 457,662 392,742 457,662 392,742
Transit - - 573,472 2,505,212 573,472 2,505,212
Community and development - - 3,821,392 2,987,161 3,821,392 2,987,161 Water - - 11,405,944 10,846,789 11,405,944 10,846,789
Solid Waste - - 11,510,574 9,637,100 11,510,574 9,637,100 Sewer - - 24,933,539 24,689,685 24,933,539 24,689,685
Total expenses 57,995,316 64,671,202 52,702,583 51,058,689 117,373,785 109,054,005 Change in net position before
transfers and special items 20,391,548 11,613,560 13,601,553 15,098,231 33,993,101 26,711,791 Transfers 270,273 224,157 (270,273) (347,685) (123,528) - Extraordinary loss on dissolution
of lawsuit settlement (59,037) - - - - (59,037)
Change in net position 20,661,821 11,778,680 13,331,280 14,750,546 33,993,101 26,529,226 Prior period adjustment (see note 14) - 59,319,578 318,433 - 59,638,011 - Net position - beginning 132,146,421 203,244,679 196,698,730 181,629,751 399,943,409 313,776,172 Net position - ending $ 143,925,101 223,906,500 $ 210,030,010 $ 196,380,297 $ 433,936,510 $ 340,305,398 $

8.1 General Business Page 39
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
11 Governmental Activities - Governmental activities increased the City's net position by $20.66 million during the year. The main increase in the City's net position is due to an increase in unrestricted net position. In the table below, the difference between the program revenues and expenses bars by activity illustrates the amount each respective activity is supported by program revenues. Public Safety programs rely heavily on taxes to support their operations. -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Expenses
Program Revenues

8.1 General Business Page 40
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
12 Revenues and expenses in the governmental activities have grown as the population has grown. The sales tax, gas tax, and Measure R category is the largest revenue source for governmental activities and amounts to $24.28 million, or

28.46% of the total revenues. Utility user's tax, motor vehicle-in-lieu tax, and property taxes are also significant revenue sources for the City's governmental activities, amounting to $23.84 million or 27.94% of total revenue, and public safety is the largest expense activity, amounting to $31.72 million or 49.05% of total expenses. 14%
5%
8%
28% 2%
8%
9%
6%
9%
11%
Charges for services
Operating grants and contributions
Capital grants and contributions
Sales tax, gas tax, and Measure R
Motel/hotel and franchise tax
Motor vehicle-in-lieu
Other taxes
Miscellaneous
Property tax
Utility tax

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
13 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Aviation Transit Community
and
Development
Water Solid Waste Sewer
Expenses
Program Revenues
Governmental Activities revenue increased $15.45 million, a 22.20% increase compared to the previous fiscal year. This increase is primarily attributable to Capital grants and contributions.

Total expenses in Governmental Activities had an increase of $6.68 million from the previous fiscal year for an 11.51% increase. The largest decrease of $9.09 million was in Community development.

Business-Type Activities - The City operates six enterprise funds that offer water, sewer services, solid waste collection, transit service, inspection services and engineering, and a municipal airport. Major revenue for the enterprise funds is charges for the services and the largest expenditure is sewer service.

8.1 General Business Page 42
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
14 Business-type activities increased the City's net position by $13.33 million. The bar chart above compares total program revenues and expenses. Program revenues exceeded program expenses in Solid Waste by $897.16 thousand, in Water by $3.03 million, and in Sewer by $10.48 million. This increase was offset by program expenses exceeding program revenues in Aviation by $345.57 thousand, in Transit by $73.28 thousand, and in Community and Economic Development by $635.88 thousand.

The pie chart illustrates the distribution of business-type revenues by category. The City's business-type activities rely heavily on charges for services to fund their operations, making up 98% of total revenues. Grants and contributions revenue represent 2 % of total revenue.
64,966,731 , 98%
147,199 , 0%
942,334 , 2%
(22,401), 0%
Charges for services
Operating grants and contributions
Capital grants and contributions
Miscellaneous
Total revenues increased by $147.22 thousand or 0.22% over the prior year with the Solid Waste Fund showing the largest increase of $866.03 thousand.

8.1 General Business Page 43
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
15 FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As previously noted, the City uses fund accounting to demonstrate compliance with legal and contractual requirements.

This section provides an analysis and discussion of individual funds and fund types presented in the financial statements.

Governmental Funds - The focus of the City's Governmental Funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.

In particular, total fund balance less the non-spendable portion is a useful measure of the City's resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City's Governmental Funds reported a combined ending fund balance of $105.97 million, an increase of $51.06 million in comparison with the prior year. The components of total fund balance are as follows (for more information see Note 13 - Fund Balances):
• Nonspendable Fund Balance - $10.07 million consist of amounts with that are not in spendable form, such as prepaid items.
• Restricted Fund Balance - $41.65 million consist of amounts with externally imposed constraints put on their use by creditors, grantors, contributions, laws, regulations, or enabling legislation. Examples of restrictions on funds are those for 1) $5.0 million for the purpose of the fund (i.e., Gas Tax for street projects) and 2) $2.8 million for debt service.
• Committed Fund Balance - $858.96 thousand have been committed by the City Council for appropriation for next year's budget and cash basis reserve.
• Assigned Fund Balance - $6.49 million set aside by management for specific purposes. • Unassigned Fund Balance - $46.94 million deficit in residual funds that are not restricted, committed, or assigned to specific purposes.

General Fund - The General Fund is the chief operating fund of the City. At the end of the fiscal year, the General Fund's total fund balance increased by 44.51%, or $19.66 million to $63.83 million. Major factor for this overall increase is $12.98 million to cash & investments with fiscal agent for the ENGIE solar project.

Other Major Governmental Funds
In the Measure R Fund, the total fund balance increased from $4.06 million to $5.04 million. The major factor for this overall increase was the continuance of receiving monthly payments when street projects assigned to this revenue source are still in planning stages.

In the Financing Authority Fund, the total fund balance remained consistent due to receiving rental income to cover debt service. Fund balance maintains a balance to cover at least one year of debt service.

In the American Rescue Plan Act Fund there was a negative prior year fund balance of $356.28 thousand. The current year ending fund balance deficit of $356.29 thousand due to the GASB Statement No. 31 adjustment. The adjustment reflects changes in the fair value of investments held by the fund, which impacted its ending fund balance.

In the HOME Program Fund, which became a major fund om FY23, the total fund balance remained consistent. The HOME Program Fund will continue to support affordable housing initiatives and projects in the community, and future funding allocations will be used to manage the fund balance.

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
16 Other Nonmajor Governmental Funds
The combined Nonmajor Other Governmental Funds' total fund balance increased from $4.53 million to $5.79 million.

This overall increase of $1.26 million is due to an increase in grant funds.

Proprietary Funds - The City's proprietary funds are shown in their entirety in the governmental-wide financial statements. All funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.

The Transit Fund has a total net position of $9.35 million at the end of the fiscal year, a slight increase of $54.23 thousand.

The net position increase is due to a decrease in current liabilities.

The Community & Economic Development Services Fund has a total net deficit of $2.33 million at the end of the fiscal year. The fund was created in the 2018 fiscal year to track cost order information to determine the correct changes for these services. Previously these expenses were reported in the General Fund under Community Development. GASB Statement No. 68 reporting of pension liability is the main source for the annual deficit.

The Water Fund has total net position of $75.51 million at the end of the fiscal year, an increase of $3.09 million over the prior year. The increase to net position is due to investment in capital assets.

The Solid Waste Fund has total net position of $7.89 million at the end of the fiscal year, an increase of $339.09 thousand over the prior year. The net position increase is due to a decrease in current liabilities.

The Sewer Fund has total net position of $116.11 million at the end of the fiscal year, an increase of $10.05 million over the prior year. The net position increase is due to a decrease in current liabilities.

The Aviation Fund has total net position of $3.22 million at the end of the fiscal year, a decrease of $319.37 thousand over the prior year. The net position decrease is primarily due to a decrease in current assets.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City's investment in capital assets for its governmental and business-type activities as of June 30, 2022, amounts to $472.82 million (net of accumulated depreciation). This investment in capital assets includes land, rightof-way, buildings, infrastructure, structures and improvements, equipment, and construction in progress. (Please refer to Note 4 - Capital Assets.)
Infrastructure assets are included within the governmental activities, with a total investment of $82.32 million (net of accumulated depreciation). The total increase in the City’s investment in capital assets for the current fiscal year was $5.93 million (net of accumulated depreciation). Of this amount, $1.90 million was an increase to Governmental Activities and $4.03 million was an increase to Business-Type Activities. Depreciation expense of $22.86 million is netted against additions to capital assets by this amount.

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CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
17 City of Tulare
Capital Assets
As of June 30, 2023 and 2022
2023 2022 2023 2022 2023 2022
Land $ 19,303,728 $ 17,389,440 $ 8,280,895 $ 7,620,014 $ 27,584,623 $ 25,009,454 Right-of-way 1,306,651 1,306,651 - - 1,306,651 1,306,651 Construction in progress (CIP) 15,486,082 9,349,781 23,641,564 16,725,276 39,127,646 26,075,057 Infrastructure 227,349,961 224,551,077 - - 227,349,961 224,551,077 Structures and improvements 61,937,561 61,063,311 381,722,005 378,739,936 443,659,566 439,803,247 Equipment 40,285,833 37,538,348 39,632,788 36,905,096 79,918,621 74,443,444 Right-to-use SBITA asset 156,539 156,539 - - 156,539 156,539 Less: accumulated depreciation/amortization (190,922,059) (203,494,679) (142,788,418) (133,533,869) (346,283,097) (324,455,928) Total $ 160,433,088 162,331,676 $ 310,488,834 $ 306,456,453 $ 472,820,510 $ 466,889,541 $ Governmental
Activities
Business-type
Activities Total
Long-Term Debt - At the end of the fiscal year, the City had a total debt outstanding of $224,652,505, which included the following major liabilities. (Please refer to Note 6- Long-Term Debt.) City of Tulare
Outstanding Debt
As of June 30, 2023 and 2022
2023 2022 2023 2022 2023 2022
Lease revenue bonds $ 22,636,472 $ 23,966,402 $ - $ 22,636,472 - $ $ 23,966,402 Revenue bonds payable - 189,033,907 - 194,959,528 189,033,907 194,959,528 Finance leases 12,982,126 - - - 12,982,126 -
Total $ 23,966,402 35,618,598 $ 189,033,907 $ 194,959,528 $ 224,652,505 $ 218,925,930 $ Activities Total
Governmental
Activities
Business-type

8.1 General Business Page 46
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
18 With respect to the Governmental Activities, the outstanding $22,636,472 in lease revenue bonds (which includes the bond premium and discount) were issued in 2018 for $26,675,000 to refinance the 2008 lease revenue bonds and to help fund additional projects for Cartmill Corridor and the purchase and renovation of the former County Courthouse located next to City Hall of an additional $4 million. In 2023, the City entered into a lease-purchase agreement for the installation of energy cost savings infrastructure improvements. The outstanding balance for finance leases is $12,982,126.

Of the $189,033,907 outstanding debt in the Business-Type Activities, $156.32 million relates to the Sewer Fund for the expansion and upgrade of the sewer and wastewater plant. These bonds have been rated "AA" by Standard & Poor's.

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund - Original and Final Budget Comparison
The City's final General Fund budget differs from the original budget due to carry-forward appropriations for capital projects and minor supplemental appropriations approved throughout the year at Council meetings and during mid-year budget review.

Budgeted total revenues increased from original budget to final budget of $58.48 million.

Budgeted total expenditures increased by $3.26 million to a final budget of $73.98 million, mainly due to capital outlay related to infrastructure improvements.

General Fund – Final Budget and Actual Budget Comparison Total revenue was $8.12 million higher than the final budgeted amount, as detailed below:

Sales Tax – was $327.76 thousand less than budgeted due to decreased consumer spending.

Property Tax – was $363.17 thousand less than budgeted as valuation and construction increased less than anticipated.

Utility Use Tax – was $3.04 million more than budgeted due to increases in costs.

Charges for Services – was $425.72 thousand more due to increased activity in library and recreation programs.

Interest and Rentals – was $1.74 thousand less than budget due to market value being lower than the cost.

Total expenditures were $13.72 million less than budgeted. This difference is due to ongoing capital projects not completed during the current year.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The key assumptions in the General Fund forecast for fiscal year 2023-24 were:
• General fund contribution to various reserves and CIP funds. • Decrease in CalPERS unfunded liability payment by 5.28%. • Increases in employees' salaries based on previously negotiated agreements; 4.0% for fire division chiefs; 9% for fire management and 10% for fire non-management and 3.5% for all other employee groups.  County increase in property taxes of 2.25% for inflation of property tax value.

8.1 General Business Page 47
CITY OF TULARE| JUNE 30, 2023
Management’s Discussion and Analysis
19 REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to:
[email protected]. Formal written requests should be addressed to: City of Tulare, Attn: Finance Department, 411 East Kern Avenue, Tulare, California 93274.

8.1 General Business Page 48
20 Basic Financial Statements

8.1 General Business Page 49
21 Government-Wide Financial Statements

8.1 General Business Page 50
CITY OF TULARE | JUNE 30, 2023
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 22 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 87,928,199 119,438,071 $ 207,366,270 $ Cash and investments with fiscal agent 11,913,925 14,219,007 26,132,932 Receivables:

Accounts 7,372,332 1,419,799 8,792,131
Interest 122,670 853,062 975,732
Taxes - 6,225,365 6,225,365
Intergovernmental 17,217 953,179 970,396
Notes - 759,458 759,458
Leases 266,466 10,585 277,051
Inventories - 817,743 817,743
Prepaids - 30,750 30,750
Internal balances 113,538 (113,538) -
Loans receivable 29,391 10,163,369 10,192,760
Land held for resale - 35,000 35,000
Long-term receivables 1,500,000 9,970,721 11,470,721
Nondepreciable capital assets 8,280,895 36,096,461 44,377,356 Depreciable capital assets, net 302,207,939 126,235,215 428,443,154 Total assets 419,752,572 327,114,247 746,866,819

DEFERRED OUTFLOWS OF RESOURCES
Pensions 5,836,395 25,286,055 31,122,450
Other post-employment benefits (OPEB) 150,941 338,175 489,116 Deferred charges 880,539 - 880,539
Total deferred outflows of resources 6,867,875 25,624,230 32,492,105

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,438,767 4,232,011 6,670,778 Accrued interest payable 850,986 235,000 1,085,986
Deposits payable 1,293,694 2,386,244 3,679,938
Other payable 9,153 - 9,153
Unearned revenue 707,245 16,622,257 17,329,502
Long-term liabilities:

Due within one year:

Compensated absences payable 118,484 255,413 373,897
Insurance claims payable - 1,444,875 1,444,875
Revenue bonds payable 5,730,622 1,394,930 7,125,552
IT subscription liability - 39,999 39,999
Due after one year:

Compensated absences payable 1,282,031 2,763,643 4,045,674 Net pension liability 18,965,900 58,319,973 77,285,873
Net other post-employment benefits (OPEB) liability 752,989 1,687,031 2,440,020 Revenue bonds payable 183,303,285 21,241,542 204,544,827 Finance leases - 12,982,126 12,982,126
Total liabilities 215,453,156 123,605,044 339,058,200

DEFERRED INFLOWS OF RESOURCES
Pensions 574,045 4,294,615 4,868,660
Other post-employment benefits (OPEB) 411,923 922,891 1,334,814 Leases 151,313 9,427 160,740
Total deferred inflows of resources 1,137,281 5,226,933 6,364,214

NET POSITION
Net investment in capital assets 122,335,466 139,655,205 261,990,671 Unrestricted 87,694,544 84,251,295 171,945,839
Total net position $ 210,030,010 223,906,500 $ 433,936,510 $

8.1 General Business Page 51
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 23 Net (Expenses) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total Primary government:

Governmental activities:

General government 15,851,263 $ 7,347,522 $ 52,423 $ 3,628,102 $ (4,823,216) $ - $ (4,823,216) $ Intergovernmental 10,575 - 53,542 - 42,967 - 42,967
Public safety 31,723,979 1,041,334 747,574 - (29,935,071) - (29,935,071) Public works 3,046,291 74,991 - - (2,971,300) - (2,971,300) Community development 2,920,799 1,211,150 2,723,946 3,403,774 4,418,071 - 4,418,071 Community services 8,483,177 2,001,805 895,124 - (5,586,248) - (5,586,248) Library and cultural 1,756,273 363,583 - - (1,392,690) - (1,392,690) Interest on long-term debt 878,845 - - - (878,845) - (878,845) Total governmental activities 64,671,202 12,040,385 4,472,609 7,031,876 (41,126,332) - (41,126,332) Business type-activities:

Aviation 457,662 112,088 - - - (345,574) (345,574)
Transit 573,472 44,971 - 455,222 - (73,279) (73,279)
Community and development 3,821,392 3,185,514 - - - (635,878) (635,878) Water 11,405,944 14,175,049 - 264,494 - 3,033,599 3,033,599 Solid waste 11,510,574 12,260,531 147,199 - - 897,156 897,156 Sewer 24,933,539 35,188,578 - 222,618 - 10,477,657 10,477,657 Total business-type activities 52,702,583 64,966,731 147,199 942,334 - 13,353,681 13,353,681 Total primary government 117,373,785 $ 77,007,116 $ 4,619,808 $ 7,974,210 $ (41,126,332) 13,353,681 (27,772,651) General revenues:

Taxes:

Sales 24,282,444 - 24,282,444Property 7,378,064 - 7,378,064Utility 9,541,261 - 9,541,261Motor vehicle-in-lieu 6,920,240 - 6,920,240Other 7,270,764 - 7,270,764Motel/hotel and franchise 1,584,502 - 1,584,502 Rental income 154,677 - 154,677
American Rescue Plan Act 3,176,975 - 3,176,975
Gain on disposal of fixed assets 293,000 - 293,000
Investment earnings (losses) (563,004) (400,461) (963,465) Miscellaneous 1,478,957 648,333 2,127,290
Transfers 270,273 (270,273) -
Total general revenues and transfers 61,788,153 (22,401) 61,765,752 Change in net position 20,661,821 13,331,280 33,993,101Net position - beginning, restated 203,244,679 196,698,730 399,943,409 Net position - ending 223,906,500 $ 210,030,010 $ 433,936,510 $ Functions/Programs

8.1 General Business Page 52
24 Fund Financial Statements

8.1 General Business Page 53
CITY OF TULARE | JUNE 30, 2023
Governmental Funds
Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 25 Debt
Special Revenue Funds Service Fund
American HOME Developer Financing Nonmajor Total
General Measure R Rescue Plan Program Impact Authority Governmental Governmental Fund Fund Act Fund Fund Fees Fund Funds Funds
ASSETS
Cash and investments $ 5,036,627 37,615,686 $ 12,254,782 $ 288,370 $ 28,854,805 $ 1,581,439 $ 6,233,388 $ 91,865,097 $ Cash and investments with fiscal agent - 12,982,126 - - - 1,190,979 - 14,173,105 Receivables:

Accounts - 1,235,975 - - 8,631 - 160 1,244,766
Interest 6,708 60,069 - 701,003 37,404 2,050 10,334 817,568 Taxes - 5,934,150 - - - - 291,215 6,225,365
Intergovernmental - 588,658 - 21,116 - - 333,168 942,942 Loans - - - 8,033,045 - - 2,130,324 10,163,369
Notes - - - - - - 759,458 759,458
Leases - 10,585 - - - - - 10,585
Land held for resale - - - - - - 35,000 35,000
Due from other funds 3,708,293 - - - - - 3,708,293 -
Prepaid items 30,750 - - - - - - 30,750
Long-term receivables - 9,970,721 - - - - - 9,970,721
Total assets $ 5,043,335 72,137,013 $ 12,254,782 $ 9,043,534 $ 28,900,840 $ 2,774,468 $ 9,793,047 $ 139,947,019 $

DEFERRED OUTFLOWS OF RESOURCES - - - - - - - -
Total assets and deferred outflows of resources $ 5,043,335 72,137,013 $ 12,254,782 $ 9,043,534 $ 28,900,840 $ 2,774,468 $ 9,793,047 $ 139,947,019 $

LIABILITIES
Accounts payable and accrued liabilities $ 2,969,542 $ 106,641 - $ $ 2,826 $ - $ 1,935 $ 299,285 $ 3,380,229 Deposits payable 2,386,244 - - - - - 2,386,244 -
Due to other funds - - - - - 961,726 - 961,726
Unearned revenue - 2,946,482 12,504,426 307,344 - - 610,849 16,369,101 Total liabilities - 8,302,268 12,611,067 310,170 - 1,935 1,871,860 23,097,300

DEFERRED INFLOWS OF RESOURCES
Lease proceeds - 9,427 - - - - - 9,427
Deferred loans - - - 8,733,674 - - 2,132,873 10,866,547 Total deferred inflows of resources - 9,427 - 8,733,674 - - 2,132,873 10,875,974

FUND BALANCES (DEFICITS)
Nonspendable - 10,001,471 - - - - 35,000 10,036,471
Restricted 5,043,335 - - - 28,900,840 2,772,533 4,933,819 41,650,527 Committed - - - - - - 858,956 858,956
Assigned - 6,485,536 - - - - - 6,485,536
Unassigned - 47,338,311 (356,285) (310) - - (39,461) 46,942,255 Total fund balances (deficits) 5,043,335 63,825,318 (356,285) (310) 28,900,840 2,772,533 5,788,314 105,973,745 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 5,043,335 72,137,013 $ 12,254,782 $ 9,043,534 $ 28,900,840 $ 2,774,468 $ 9,793,047 $ 139,947,019 $

8.1 General Business Page 54
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 26 Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances – total governmental funds $ 105,973,745 149,125,063
10,866,547
34,669,784
(235,000)
Deferred outflows of resources from pensions 24,595,756 Deferred inflows of resources from pensions 20,369,154 (4,226,602) Deferred outflows of resources from OPEB 321,447
Deferred inflows of resources from OPEB (555,794) (877,241) Compensated absences payable (2,968,024)
Net pension liability (56,076,795)
Net other post-employment benefits (OPEB) liability (1,603,583) Bonds payable, net of premiums and discounts (35,658,597) (96,306,999) Net position of governmental activities $ 223,906,500
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

OPEB-related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

Long-term liabilities are not due and payable in the current year period and, therefore, are not reported in the governmental funds balance sheet. Long-term liabilities at year-end consist of:

Internal service funds are used by the management to charge the costs to individual funds.

These assets, deferred outflows of resources, liabilities, and deferred inflows of resources are included in the statement of net position.

Certain loans receivable are not due in the current period and, therefore, should not be reported in the governmental funds balance sheet.

Pension-related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

Interest payable on long-term debt does not require current financial resources.

Therefore, interest payable is not reported as a liability in the governmental funds balance sheet.

8.1 General Business Page 55
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 27 Debt
Special Revenue Funds Service Fund
American HOME Developer Financing Nonmajor Total
General Measure R Rescue Plan Program Impact Authority Governmental Governmental Fund Fund Act Fund Fund Fees Fund Funds Funds

REVENUES
Taxes $ 1,166,305 51,523,882 $ - $ - $ - $ - $ 3,181,325 $ 55,871,512 $ Intergovernmental - 4,278,732 3,176,975 330,514 - - 3,109,679 10,895,900 Licenses and Permits - 1,469,268 - - - - - 1,469,268
Charges for services - 7,802,594 - - 7,520,057 - 2 15,322,653 Fines and forfeitures - 225,382 - - - - 74,779 300,161
Use of money and property (43,652) (321,936) - - (233,552) 38,326 (64,740) (625,554) Interest and rentals - 154,677 - - - - - 154,677
Assessments - - - - - - 1,146,147 1,146,147
Other - 1,471,047 - - - - 142,965 1,614,012
Total revenues 1,122,653 66,603,646 3,176,975 330,514 7,286,505 38,326 7,590,157 86,148,776

EXPENDITURES
Current:

General government - 8,745,416 25,895 - - - - 8,771,311 Intergovernmental - - - - - 10,575 - 10,575
Public safety - 32,296,357 - - - - 233,384 32,529,741
Public works - 3,101,544 - - - - - 3,101,544
Community development - 217,627 - 330,515 - - 2,295,907 2,844,049 Community services - 6,991,137 - - - - 1,517,242 8,508,379 Library and cultural - 1,556,303 - - - - - 1,556,303
Capital outlay - 7,307,938 3,151,079 - - - - 10,459,017 Debit service:

Principal - 38,740 - - - 1,220,000 - 1,258,740
Interest and fiscal charges - 3,025 - - - 1,001,000 - 1,004,025 Total expenditures - 60,258,087 3,176,974 330,515 - 2,231,575 4,046,533 70,043,684 Excess (deficiency) of revenues
over (under) expenditures 1,122,653 6,345,559 1 (1) 7,286,505 (2,193,249) 3,543,624 16,105,092

OTHER FINANCING SOURCES (USES)
Transfers in - 4,495,478 - - - 2,200,000 773,695 7,469,173 Transfers out (137,683) (4,456,113) - - - - (3,057,795) (7,651,591) Proceeds on debt issuance - 12,982,126 - - - - - 12,982,126 Sale of capital assets - 293,000 - - - - - 293,000
Total other financing sources (uses) (137,683) 13,314,491 - - - 2,200,000 (2,284,100) 13,092,708 Net change in fund balance 984,970 19,660,050 1 (1) 7,286,505 6,751 1,259,524 29,197,800 Fund balances (deficits) - beginning, restated 4,058,365 44,165,268 (356,286) (309) 21,614,335 2,765,782 4,528,790 76,775,945 Fund balances (deficits) - ending $ 5,043,335 63,825,318 $ (356,285) $ (310) $ 28,900,840 $ 2,772,533 $ 5,788,314 $ 105,973,745 $

8.1 General Business Page 56
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 28 Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds 29,197,800 $ Capital outlay 13,387,712
Depreciation and amortization expense (11,773,289)
This amount represents the incurrence of new debt. (12,982,126) This amount represents long-term debt repayments. 1,258,740 This amount represents amortization of bond discounts/premiums. 109,930 This amounts represents costs of compensated absences. (341,668) 15,248
(177,682)
172,692
247,854
1,546,610
Change in net position of governmental activities 20,661,821 $ Changes to net OPEB liability and related deferred outflows and inflows of resources do not provide current financial resources or liabilities and, therefore, are not reported in the governmental funds.

The changes in net position of certain activities of the internal service funds is reported within governmental activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation or amortization expense. This is the amount by which capital outlay exceeded depreciation and amortization expense in the current period.

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to the 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 position. Also, governmental funds report the effect of prepaid insurance, premiums, original issue discounts, and deferred inflows of resources on bond refunding charge when debt is first issued, whereas these amounts are amortized to interest and expensed over the life of the debt in the government-wide statement of activities.

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Interest payable on long-term debt is reported in the government-wide statement of activities, but it does not require the use of current financial resources. Therefore, the interest expense is not reported as an expenditure in the governmental funds. The following amount represents the change in accrued interest from the prior year.

Changes to the net pension liability and related deferred outflows and inflows of resources do not provide current financial resources or liabilities and, therefore, are not reported in the governmental funds.

The distribution of housing loans and corresponding payments that were recognized in the governmental funds are not recognized in the statement of activities.

8.1 General Business Page 57
CITY OF TULARE | JUNE 30, 2023
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 29 Governmental
Business-Type Activities - Enterprise Funds Activities
Community and
Economic Total Internal
Development Enterprise Service
Transit Services Water Solid Waste Sewer Aviation Funds Funds ASSETS
Current assets:

Cash and investments $ 1,433,284 1,411,562 $ 16,465,795 $ 10,818,166 $ 57,799,392 $ - $ 87,928,199 $ 27,572,974 $ Cash and investments with fiscal agent - - 6,659,865 - 5,254,060 - 11,913,925 45,902 Receivables:

Accounts 1,652 4,285 1,925,076 1,612,518 3,825,864 2,937 7,372,332 175,033 Interest 1,854 1,830 25,463 13,711 79,812 - 122,670 35,494 Intergovernmental - 15,670 - - 1,547 - 17,217 10,237
Loans - - 21,315 - 8,076 - 29,391 -
Leases - 123,176 20,920 - - 122,370 266,466 -
Inventories - - - - - - - 817,743
Advances to other funds - - - 620,000 - - 620,000 -
Long-term receivables - 1,500,000 - - - - 1,500,000 -
Total current assets 1,436,790 3,056,523 25,118,434 13,064,395 66,968,751 125,307 109,770,200 28,657,383 Noncurrent assets:

Nondepreciable capital assets 193,261 2,559,092 - 5,249,327 - 279,215 8,280,895 75,000 Depreciable capital assets, net 2,908 6,957,388 85,230,162 23,418 206,919,751 3,074,312 302,207,939 13,131,613 Total noncurrent assets 2,908 7,150,649 87,789,254 23,418 212,169,078 3,353,527 310,488,834 13,206,613 Total assets 1,439,698 10,207,172 112,907,688 13,087,813 279,137,829 3,478,834 420,259,034 41,863,996

DEFERRED OUTFLOWS OF RESOURCES
Pensions 15,571 1,244,354 1,060,101 1,721,853 1,786,731 7,785 5,836,395 690,299 Other post-employment benefits (OPEB) 3,032 28,173 26,608 45,830 47,200 98 150,941 16,728 Deferred charges - - 104,197 - 776,342 - 880,539 -
Total deferred outflows of resources 1,272,527 18,603 1,190,906 1,767,683 2,610,273 7,883 6,867,875 707,027

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,445 278,082 909,563 377,832 866,346 5,499 2,438,767 851,782 Accrued interest payable - 104,275 - 746,711 - 850,986 - - Deposits payable - 183,909 - 1,109,785 - 1,293,694 - -
Due to other funds - - - - 169,337 - 169,337 2,577,230
Other payable - - 9,153 - - - 9,153 -
Unearned revenue - PTMISEA 642,225 - - - - 642,225 - -
Unearned revenue - Other 65,020 - - - - - 65,020 253,156 Compensated absences payable 576 32,384 24,641 40,052 20,639 192 118,484 4,318 Revenue bonds payable - - 768,660 - 4,961,962 - 5,730,622 - Total current liabilities 310,466 709,266 2,000,201 417,884 7,705,443 175,028 11,318,288 3,686,486 Noncurrent liabilities:

Compensated absences payable 350,401 6,238 266,620 433,376 223,317 2,079 1,282,031 46,714 Insurance claims payable - - - - - - - 1,444,875
Advances from other funds - - 620,000 - - - 620,000 -
Net pension liability 4,043,641 50,598 3,444,896 5,595,320 5,806,146 25,299 18,965,900 2,243,178 Net other post-employment benefits (OPEB) liability 140,545 15,127 132,737 228,630 235,462 488 752,989 83,448 Revenue bonds payable - - 31,938,084 - 151,365,201 - 183,303,285 - Total noncurrent liabilities 4,534,587 71,963 36,402,337 6,257,326 157,630,126 27,866 204,924,205 3,818,215 Total liabilities 4,845,053 781,229 38,402,538 6,675,210 165,335,569 202,894 216,242,493 7,504,701

DEFERRED INFLOWS OF RESOURCES
Pensions 1,802 122,018 104,221 169,181 176,021 802 574,045 68,013 Other post-employment benefits (OPEB) 8,275 76,885 72,614 125,072 128,810 267 411,923 45,650 Leases - 79,938 8,936 - - 62,439 151,313 -
Total deferred inflows of resources 198,903 90,015 185,771 294,253 304,831 63,508 1,137,281 113,663

NET POSITION (DEFICIT)
Net investment in capital assets 7,150,649 2,908 55,082,510 23,418 55,841,915 3,353,527 121,454,927 13,206,613 Unrestricted (2,334,639) 2,203,882 20,427,775 7,862,615 60,265,787 (133,212) 88,292,208 21,746,046 Total net position $ (2,331,731) 9,354,531 $ 75,510,285 $ 7,886,033 $ 116,107,702 $ 3,220,315 $ 209,747,135 34,952,659 $ Adjustment to report the cumulative internal balance
service funds and the enterprise funds over time 282,875 Net position of business-type activities 210,030,010 $

8.1 General Business Page 58
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 30 Governmental
Business-Type Activities - Enterprise Funds Activities
Community and
Economic Total Internal
Development Enterprise Service
Transit Services Water Solid Waste Sewer Aviation Funds Funds Operating revenues:

Charges for services $ 3,185,514 44,971 $ 14,175,049 $ 12,260,531 $ 35,188,578 $ 112,147 $ 64,966,790 $ - $ Departmental charges - - - - - - 16,001,307 -
Employee Contributions - - - - - - 1,443,563 -
Other revenues 183,505 106,305 95,771 37,122 221,830 3,741 648,274 - Total operating revenues 3,369,019 151,276 14,270,820 12,297,653 35,410,408 115,888 65,615,064 17,444,870 Operating expenses:

General administration 100 - 318,272 30,651 122,807 - 471,830 371,196 Personnel services 2,259,435 (50,345) 2,177,751 3,886,780 3,460,544 (203) 11,733,962 966,550 Contractual services - - - - - - - 429,704
Maintenance and supplies 75,560 1,554,756 5,438,575 8,088,713 9,285,479 288,532 24,731,615 - Equipment usage and operation - - - - - - - 2,450,861
Insurance - - - - - - - 10,151,869
Depreciation and amortization 1,517 542,830 2,196,077 10,093 6,350,332 153,700 9,254,549 1,829,947 Total operating expenses 3,815,808 568,045 10,130,675 12,016,237 19,219,162 442,029 46,191,956 16,200,127 Operating income (loss) (446,789) (416,769) 4,140,145 281,416 16,191,246 (326,141) 19,423,108 1,244,743 Nonoperating revenues (expenses):

Use of money and property (11,666) 15,784 48,492 (83,375) (376,469) 6,773 (400,461) (202,112) Grants - 455,222 - 147,199 - - 602,421 -
Other income - miscellaneous - - - - - - - 71,283
Interest and fiscal charges - (1,177,245) - (5,529,530) - (6,706,775) - - Other expense - miscellaneous - - (86,727) - - - (86,727) - Gain (loss) on sale of assets - - - - - - - 262,880
Total nonoperating revenues (expenses) (11,666) 471,006 (1,215,480) 63,824 (5,905,999) 6,773 (6,591,542) 132,051 Income (loss) before transfers (458,455) 54,237 2,924,665 345,240 10,285,247 (319,368) 12,831,566 1,376,794 Transfers in 300,000 - 611,337 - - - 911,337 1,452,691
Transfers out (2,020) - (711,150) (6,150) (462,290) - (1,181,610) (1,000,000) Capital Contributions - - 264,494 - 222,618 - 487,112 - Change in net position (deficit) (160,475) 54,237 3,089,346 339,090 10,045,575 (319,368) 13,048,405 1,829,485 Net position (deficit) - beginning, restated (2,171,256) 9,300,294 72,420,939 7,546,943 106,062,127 3,539,683 33,123,174 Net position (deficit) - ending $ 9,354,531 (2,331,731) $ 75,510,285 $ 7,886,033 $ 116,107,702 $ 3,220,315 $ 34,952,659 $ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds 282,875 Changes in net position of business-type activities 13,331,280 $

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 31 Governmental
Business-Type Activities - Enterprise Funds Activities
Community and
Economic Total Internal
Development Enterprise Service
Transit Services Water Solid Waste Sewer Aviation Funds Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,369,489 123,519 $ 14,325,255 $ 12,664,809 $ 37,263,506 $ 119,588 $ 67,866,166 $ - $ Cash received from interfund services provided - - - - - - - 17,530,691 Cash payments to employees (2,119,685) (27,728) (2,228,341) (3,980,916) (3,684,791) (17,374) (12,058,835) (1,182,629) Cash payments to suppliers (1,837,920) (78,605) (6,716,242) (8,328,140) (11,095,418) (298,929) (28,355,254) (739,023) Cash payments for reported claims - - - - - - - (12,602,730) Net cash provided by (used for) operating activities (588,116) 17,186 5,380,672 355,753 22,483,297 (196,715) 27,452,077 3,006,309

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash received from operating grants 318,435 - - 147,199 (9,623) - 456,011 - Cash payments to (from) other funds (short-term borrowings) - - (227,982) 206,667 - (124,107) (145,422) 1,078,064 Cash payments to (from) other organizations (loans receivable) (1,500,000) - - - - (1,500,000) - - Cash received from transfers from other funds 300,000 - 611,337 - - 911,337 - 1,452,691 Cash payments for transfers to other funds - (2,020) (711,150) (6,150) (462,290) (1,181,610) - (1,000,000) Cash received from other revenue - - - - - - - 71,283
Net cash provided by (used for) noncapital and related financing activities 616,415 (1,500,000) (327,795) 347,716 (471,913) (124,107) (1,459,684) 1,602,038

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital grants 450,933 - - - - 450,933 - 153,848 Cash payments for the acquisition of capital assets (2,472,944) (5,506,258) - (4,787,582) - (33,031) (12,799,815) (2,152,024) Cash received from the sale of capital assets - - - - - - 262,880 - Cash payments for principal paid on capital debt - (1,148,660) - (4,776,961) - (5,925,621) - - Cash payments for interest on capital debt - - (1,177,044) - (5,508,347) - (6,685,391) - Net cash provided by (used for) capital and related financing activities - (2,022,011) (7,831,962) - (15,072,890) (33,031) (24,959,894) (1,735,296)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (13,520) 15,572 23,029 (97,086) (456,281) 6,773 (521,513) (236,084) Rental property - 35,815 190,517 - - 8,466 234,798 -
Net cash provided by (used for) investing activities (13,520) 51,387 213,546 (97,086) (456,281) 15,239 (286,715) (236,084) Net increase (decrease) in cash and cash equivalents 14,779 (3,453,438) (2,565,539) 606,383 6,482,213 (338,614) 745,784 2,636,967 Cash and cash equivalents - beginning 1,418,505 4,865,000 25,691,199 10,211,783 56,571,239 338,614 99,096,340 24,981,909 Cash and cash equivalents - ending $ 1,433,284 1,411,562 $ 23,125,660 $ 10,818,166 $ 63,053,452 $ - $ 99,842,124 $ 27,618,876 $ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) (416,769) $ (446,789) $ 4,140,145 $ 281,416 $ 16,191,246 $ (326,141) $ 19,423,108 $ 1,244,743 $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 542,830 1,517 2,196,077 10,093 6,350,332 153,700 9,254,549 1,829,947 Changes in assets and liabilities:
(Increase) decrease in consumer receivables 456 470 243,284 367,156 912,339 3,700 1,527,405 85,821 (Increase) decrease in prepaids 359 3,329 3,143 5,415 5,576 11 17,833 1,975 (Increase) decrease in pension related deferred outflows 2,977 (790,992) (662,082) (1,078,858) (1,100,171) (3,224) (3,632,350) (745,313) of resources
Increase (decrease) accounts payable (3,045) (283,064) (959,395) (208,776) (746,373) (10,408) (2,211,061) 507,209 Increase (decrease) unearned revenue - - - - - - - (243,237) Increase (decrease) in compensated absences 1,492 135,445 24,908 876 8,210 497 171,428 (6,244) Increase (decrease) in net pension liability (45,958) 1,683,638 1,368,463 2,241,429 2,220,065 1,804 7,469,441 858,064 Increase (decrease) in pension related deferred inflows of resources (65,156) (891,670) (973,871) (1,262,998) (1,357,927) (16,654) (4,568,276) (526,656) Net cash provided by (used for) operating activities $ (588,116) 17,186 $ 5,380,672 $ 355,753 $ 22,483,297 $ (196,715) $ 27,452,077 $ 3,006,309 $ Reconciliation of cash and cash equivalents per statement of cash flows to the statement of net position:

Cash and investments 1,411,562 $ 1,433,284 $ 16,465,795 $ 10,818,166 $ 57,799,392 $ - $ 87,928,199 $ 27,572,974 $ Cash and investments with fiscal agents - - 6,659,865 - 5,254,060 - 11,913,925 45,902 Cash and cash equivalents per statement of cash flows $ 1,433,284 1,411,562 $ 23,125,660 $ 10,818,166 $ 63,053,452 $ - $ 99,842,124 $ 27,618,876 $

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CITY OF TULARE | JUNE 30, 2023
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 32 Private Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments $ 564,815 3,433,672 $
Cash and investments with fiscal agent 3 3
Accounts receivable - 250
Interest receivable - 931,053
Note receivable - 9,600,541
Land held for sale - 91,321
Total assets 564,818 14,056,840

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from deferred loans - 220,235
Total deferred outflows of resources - 220,235

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 18,922 2,401
Interest payable - 275,859
Compensated absences payable, current portion - 249
Unearned revenue - 1,374,616
Deposits payable - 20,250
Long-term liabilities:

Compensated absences payable - 2,692
Bonds and advances - 31,135,491
Total liabilities 18,922 32,811,558

NET POSITION
$ 545,896 (18,534,483) $
Restricted for individuals, organizaations, and other
governments

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 33 Private Purpose Custodial
Trust Fund Funds

ADDITIONS
Contributions and fundraising $ 58,521 $ -
Use of money and property (27,466) -
Collections on behalf of other governments:

Property taxes - 2,022,462
Total additions - 2,053,517

DEDUCTIONS
Community development 974,541 -
Debt service - (5,679)
Total deductions - 968,862
Change in fiduciary net position (deficit) 1,084,655 -
Fiduciary net position (deficit) - beginning, restated 545,896 (19,619,138) Fiduciary net position (deficit) - ending $ 545,896 (18,534,483) $

8.1 General Business Page 62
34 Notes to the Basic Financial Statements

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the City of Tulare (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB).

The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds.

The financial statements are presented as of June 30, 2023, and for the year then ended.

A. Description of the Reporting Entity
The City was incorporated on April 5, 1888, as a municipal corporation under the General Laws of the State of California.

The City operates as a self-governing local government unit within the State of California. A five-member City Council appoints a City Administrator who administers the daily affairs under the policy guidance of the City Council. The City has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. Voters elect a City Council that passes laws and determines broad policies. The City Council also oversees the operations of the City and approves all budgets, fund transfers, and fund balance reserves. Services provided by the City include public safety, streets and roads, water, sanitation, public improvements, culture and recreation, parks, building inspections, planning and zoning, redevelopment, and general administration.

Blended Component Unit
The Tulare Public Financing Authority (the Authority) is a joint exercise of powers authority duly organized and existing under a Joint Exercise of Powers Agreement dated as of August 15, 1997, by and between the City and the former Tulare Redevelopment Agency. The Authority was formed to assist the City in the financing and refinancing of public capital improvements. The Authority is governed by a five-member board whose members are the same as the City Council. The Authority's financial data and transactions are included in the City's Financing Authority Major Fund.

B. Basis of Presentation
Government-Wide Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information of all of the nonfiduciary activities of the primary government and its blended component unit. Eliminations have been made to minimize the double counting on internal activities. lnterfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. 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 charged to external parties.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Certain indirect costs are included as part of the program expense reported for individual functions and activities. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program, and 3) interfund services provided and used. lnterfund services provided and used are not eliminated in the process of consolidation. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

The funds described below were determined to be major funds by the City in fiscal year 2023. Individual nonmajor funds may be found in the Combining Financial Statements and Schedules.

The City reports the following major governmental funds:

General Fund – The General Fund is the principal operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds.

Measure R Fund – The Measure R Fund accounts for the City’s share of the county-wide ½ cent sales tax for various street projects.

American Rescue Plan Act Fund (ARPA) – The American Rescue Plan Act (ARPA) Fund accounts for receipts and expenditures of money appropriated be the ARPA, a federal relief package established in response to the COVID-19 pandemic, which was enacted in 2021. The fund tracks both the inflow and allocation of resources provided by the stimulus program.

HOME Investment Partnerships Program Fund – The HOME Investment Partnerships (HOME) Program Fund manages the financial activities associated with the HOME Program, a grant program administered by the U.S. Department of Housing and Urban Development (HUD). The program is designed to support state and local governments in their efforts to expand the availability of affordable housing for low-income households. The fund documents the receipt and distribution of HOME grant funds to facilitate the development, acquisition, and rehabilitation of affordable housing projects within the community.

Developer Impact Fees Fund – This fund accounts for fees collected from developers to cover the anticipated costs of improvements that will be necessary as a result of the impact the development has on the City.

Financing Authority Fund – The Financing Authority Fund accounts for the annual debt service on the 2018 Lease Revenue Bonds. Lease revenues are derived from lease payments made by the City’s General Fund.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
Proprietary funds account for the City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City reports the following major enterprise funds:

Transit Fund – The Transit Fund accounts for the financial activity of the City's transit system which offers fixed route and dial-a-ride transportation services.

Community and Economic Development Services Fund – The Community and Economic Development Services Fund is a cost center that accounts for inspection, permits, and engineering services.

Water Fund – The Water Fund is used to account for the financial activities of the water utility of the City.

Solid Waste Fund – The Solid Waste Fund is used to account for the financial activities of the collection of solid waste and disposal utility of the City.

Sewer Fund – The Sewer Fund is used to account for financial activities of the sewage collection and wastewater treatment utility of the City.

Aviation Fund – The Aviation Fund accounts for the financial activity of the City’s municipal airport.

The City also reports the following fund types:

Internal Service Funds - Accounts for financial transactions related to the City’s fleet management, insurance, surface water management, and purchase services. These services are provided to other departments or agencies of the City on a cost-reimbursement basis.

Fiduciary Funds – A Private Purpose Trust Fund is used to record the assets, liabilities, and the activities of the Successor Agency. Custodial funds are used to account for assets held by the City as a custodian for resources collected for the benefit of other individuals and organizations. The financial activities of these funds are excluded from the entity-wide financial statements but are presented in separate Fiduciary Fund financial statements.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting
The government-wide financial statements, proprietary fund financial statements, and the fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. Unbilled water utility receivables are not recorded at year-end. However, the amount of unbilled receivables is not material to the financial statements.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under the accrual basis of accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

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. Revenues and expenses not meeting this definition are reported as nonoperating.

D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents.

Cash and Investments
The City maintains a cash and investment pool that is available for all funds. Each fund-type balance in the pool is reflected on the combined balance sheet as cash and investments. The City apportions interest earnings to all funds based on their quarterly cash balances.

The City pools cash and investments with the City Treasurer except for investments managed by fiscal agents under bonded debt agreements. Interest from bank accounts and investments are allocated quarterly to the various funds based on the fund’s contribution to the pool. The City has stated investments at fair value in the statement of net position and balance sheet. The fair value of investments is based on published market prices and quotations from major investment brokers.

Cash and investments with fiscal agent represent funds held by various trustees from proceeds of the issuance of bonds in order to establish required reserve funds and to pay bond issuance costs per the respective trust agreements.

Credit Risk – The City’s investment policy limits certain types of investments to various ratings.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Custodial Credit Risk—Deposits – 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 has a deposit policy for custodial risk that requires collateralization on certificates of deposit and repurchase (and reverse) agreements. In addition, the City maintains custodial agreements with certain independent third parties.

Concentration of Credit Risk – The City places no additional limit on the amount the City may invest in any one issuer beyond that established by the California Government Code.

Interest Rate Risk – Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments are made to coincide as closely as practicable with the expected use of the funds.

Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation, and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the 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 fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided and used, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Interfund transfers are generally recorded as transfers except for the following types of transactions:
 Charges for services are recorded as revenues of the performing fund and expenditures of the requesting fund.

Unbilled costs are recognized as unbilled receivables at the end of the fiscal year.  Reimbursements for costs of services performed are recorded as a reduction of expenditure in the performing fund and an expenditure of the requesting fund.

Receivables
In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received.

Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include intergovernmental and taxes receivable.

Business-type activities report trade and intergovernmental as their major receivables.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Loans & Notes Receivable
The City engages in programs designed to encourage construction or improvement of housing for persons with low to moderate income and to encourage business development. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. For financial statement purposes, the City has established an estimated allowance for potentially uncollectible loans. The balance of notes receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.

Inventory
Inventories of materials and supplies in the proprietary and internal service funds are valued at cost, carried on a first-in, first-out (FIFO) basis. The City follows the consumption method of accounting for inventories.

Land Held for Resale
Land held for resale is recorded at the lower of cost or estimated realizable value. Fund balances are reserved in amounts equal to the carrying value of the land held for resale because such assets are not available to finance the City's current operations.

Capital Assets
The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Government-Wide Financial Statements
In the government-wide financial statements, land, buildings, improvements, equipment, and construction in progress are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation.

The City's capitalization threshold, including intangible assets, is $5,000. In other words, capital assets are capitalized only if they have a cost in excess of $5,000 and have an expected useful life of three years or more. Capital assets that have a cost below $5,000 are expensed during the fiscal year they are acquired.

Depreciation and amortization of all exhaustible capital assets are recorded as an allocated expense in the Statement of Activities, with accumulated depreciation and amortization reflected in the Statement of Net Position. Depreciation and amortization are provided over the assets' estimated useful lives using the straight-line method of depreciation and amortization. The range of estimated useful lives by type of asset is as follows:

Infrastructure 20-50 years
Buildings 20-50 years
Improvements other than buildings 20-50 years
Machinery and equipment 5-20 years
Intangible assets 2-10 years

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Capital Assets (Continued)
Government-Wide Financial Statements (Continued)
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. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation and amortization are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for in the same manner as in the government-wide financial statements.

Software Subscription Arrangements
The City has subscriptions for various information technology applications. The City recognizes subscription-based information technology arrangement (SBITA) liabilities and intangible right-to-use software arrangement assets in the government-wide financial statements as required by Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). At the commencement of a subscription arrangement, the City initially measures the SBITA liability at the present value of payments expected to be made during the SBITA term. Subsequently, the SBITA liability is reduced by the principal portion of the payments made. The Intangible Right-to-Use Software Arrangement asset is initially measured as the initial amount of the SBITA liability, adjusted for payments made at or before the commencement of the subscription term. Subsequently, the intangible right-to-use software arrangement asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to SBITAs include how the City determines (1) the rate it uses to discount the expected SBITA payments to present value, (2) the SBITA term, and (3) the SBITA payments.  The City uses the interest rate charged by the SBITA vendors as the discount rate. When the interest rate charged by the SBITA vendors is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
 The subscription term includes the non-cancellable period of the arrangement. SBITA payments included in the measurement of the SBITA liability are composed of fixed payments made during the subscription term.

The city monitors changes in circumstances that would require a remeasurement of its SBITA liability and related asset and will remeasure the SBITA asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the Statement of Net Position. Payments made on the SBITA liability are reported as debt service expenditures within the Statement of Revenues, Expenditures and Changes in Fund Balances.

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Notes to the Basic Financial Statements
42 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Leases
Lessee: The City is a lessee for a noncancellable lease of a building. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 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, which it has determined is the prime rate at the inception of the lease.  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.

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 recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund 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 the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.  The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are 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.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
43 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation, sick pay benefits, and compensatory time. All vacation, sick, and compensatory pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund 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 and retirements. For additional information regarding compensated absences, see Note 6.

D.

Long-Term Obligations
In the government-wide financial statements and proprietary fund type 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. Debt principal payments of both governmental and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums, discounts, and deferred gains and losses at refunding 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. Bond issuance costs are expensed in the year incurred.

In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid. Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, 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/Fund Balances
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and amortization and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.

Restricted – This category presents amounts with external restrictions on its use imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted – This category represents net position of the City, not restricted for any project or other purpose.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources as they are needed.

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Notes to the Basic Financial Statements
44 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Net Position/Fund Balances (Continued)
The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable – includes net resources that cannot be spent because of their form or because of legal or contractual limitations; resources must remain intact.

Restricted – includes net resources that have externally enforceable limitations on their use. These limitations can be established by creditors, grantors, or by laws and regulations.

Committed – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year.

Commitments are set forth by the formal action of the City's highest level of decision-making authority, the City Council, and the limitations require that same level of authority to be removed.

Assigned – includes amounts for which the intended use results in limitations but do not meet the requirements for either the "Restricted" or "Committed" classifications. Intended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority. The City's Finance Director has been designated to make assignments, through the budget, which is approved by the City Council.

Unassigned – is the residual balance of the General Fund not included in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.

The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, followed by the committed, assigned and unassigned resources as they are needed.

Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the tax rate be limited to 1% of market value, levied only by the County of Tulare (the County) and shared with all other jurisdictions. Such limitation on the rate may only be increased through voter approval. The County collects property taxes and distributes them to taxing jurisdictions on the basis of the taxing jurisdiction's assessed valuations and on the tax rate for voter-approved debt. In the fund financial statements, property tax is recorded as revenue in the period levied to the extent it is collected within 60 days of year-end.

The property tax calendar for the City is as follows:

Lien date January 1
Levy dates July 1 through June 30
Due dates November 1 – 1st installment
February 1 – 2nd installment
Collection dates December 10 – 1st installment
April 10 – 2nd installment

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
45 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Net Position or Fund Balance, and Other Financial Statement Items (Continued) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

E. Reclassifications and Eliminations
lnterfund balances must generally be eliminated in the government-wide financial statements, except for the net residual amounts due between governmental activities and business-type activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once—in the function in which they are allocated.

G. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) pension plans (the 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.

H. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Accounting principles generally accepted in the United States of America require that the reported results must pertain to liability and asset information within certain defined timeframes.

I. Deferred Outflows and Inflows of Resources
As required by GASB Statements No. 63 and No. 65, the City recognized applicable deferred outflows and inflows of resources in the government-wide and fund financial statements.

The Statements of Net Position and Balance Sheet will sometimes report separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources are defined as a consumption of net assets by the City that applies to future periods, while deferred inflows of resources represent an acquisition of net assets by the City that applies to future periods. The City has items that qualify for reporting in these categories, which are detailed in a separate note disclosure.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
46 NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 207,366,270
Cash and investments with fiscal agent 26,132,932
Statement of fiduciary net position:

Cash and investments 3,998,487
Cash and investments with fiscal agent 6
Total cash and investments $ 237,497,695
Cash and investments as of June 30, 2023, consist of the following:

Cash on hand $ 5,153
Deposits with financial institutions 46,281,570
Investments 191,210,972
Total cash and investments $ 237,497,695
A. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum
Parentage/ Maximum
Maximum Amount Investment in
Authorized Investment Type Maturity of Portfolio Other Issuer Time Certificates of Deposit N/A 30% N/A
Local Agency Investment Fund (LAIF) N/A $50 million N/A Bankers Acceptances 180 days 40% 30%
Treasury Bonds and Notes 10 years N/A N/A
Treasury Bills (T-Bills) 1 year N/A N/A
Federally Sponsored Agency Securities N/A N/A N/A
Repurchase Agreements (3) 90 days N/A N/A
Medium-Term Notes/Corporate Bonds (1) 5 years 30% N/A
Money Market Mutual Funds (4) N/A 15% N/A
Commercial Paper (6) N/A 25% N/A
Zero Coupon Bonds (2) N/A N/A N/A
Passbook Savings Account Demand Deposits (5) N/A N/A N/A surplus funds.
(2) May only be purchased for purposes of bond defeasance or future capital improvement projects. a qualified safekeeping institution.
(4) Purchases may not exceed 15% of the City's surplus funds. (5) Requires investing only in Federal Deposit Insurance Corporation (FDIC) savings and loan institutions. (6) Purchases may not exceed 25% of the City's surplus funds. (1) Must be rated A or better by a nationally recognized rating service and may not exceed 30% of the City's (3) Requires physical delivery of the securities backing the repurchase agreements or safekeeping documentation to

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Notes to the Basic Financial Statements
47 NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by the provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum
Parentage/ Maximum
Maximum Amount Investment in
Authorized Investment Type Maturity of Portfolio Other Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Bankers' Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 years None None
C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. None of the City's investments, as shown below, are adversely affected by changes in interest rates.

Amount 12 months or less 13 to 24 months 25 to 60 months Federal Agency Securities $ 142,454,635 $ 1,907,040 $ 10,008,045 $ 130,539,550 Local Agency Investment fund (LAIF) 35,605,548 35,605,548 - - Held by Bond Trustees:

Money Market Mutual Funds 8,034,047 8,034,047 - -
Investment Contracts 5,082,256 5,082,256 - -
Held by Insurance Administrator: -
Pooled Insurance Investments 34,486 34,486 - -
Total 191,210,972 $ 50,663,377 $ 10,008,045 $ 130,539,550 $ Investment Type
Remaining Maturity (in months)

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Notes to the Basic Financial Statements
48 NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type:

Amount 12 months or less 13 to 24 months 25 to 60 months Federal Agency Securities $ 142,454,635 $ 1,907,040 $ 10,008,045 $ 130,539,550 Local Agency Investment fund (LAIF) 35,605,548 35,605,548 - - Held by Bond Trustees:

Money Market Mutual Funds 8,034,047 8,034,047 - -
Investment Contracts 5,082,256 5,082,256 - -
Held by Insurance Administrator: -
Pooled Insurance Investments 34,486 34,486 - -
Total 191,210,972 $ 50,663,377 $ 10,008,045 $ 130,539,550 $ Investment Type
Remaining Maturity (in months)
E. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City's investments are as follows:

Reported
Investment Type Amount
Federal National Mortgage Association Federal Agency Securities $ 11,863,460 Federal Home Loan Mortgage Corp Federal Agency Securities 46,648,320 Federal Home Loan Banks Federal Agency Securities 75,252,665 Total Federal Agency Securities 133,764,445 $
Investment Type
F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following 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). Collateral for cash deposits is considered to be held in the City's name. 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. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the FDIC. The City, however, has not waived the collateralization requirements.

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Notes to the Basic Financial Statements
49 NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Custodial Credit Risk (Continued)
The carrying amounts of the City's cash deposits were $46,281,570 at June 30, 2023. Bank balances before reconciling items were $48,576,186 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City's name as discussed above.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

G. Investments in State Investment Pool
The City is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The State Treasurer's Office reports its investments at fair value. The fair value of securities in the State Treasurer's pooled investment program, including LAIF, generally is based on quoted market prices. The State Treasurer's Office performs a quarterly fair market valuation of the pooled investment program portfolio. In addition, the State Treasurer's Office performs a monthly fair valuation of all securities held against carrying cost. These valuations and financial statements are posted to the State Treasurer's Office website at www.treasurer.ca.gov. 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.

H. Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted in active markets; • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active;  Level 3: Investments reflect prices based upon unobservable sources.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
50 NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2023:

Quoted Prices Significant
Active Markets Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
Totals (Level 1) (Level 2) (Level 3)
Debt Securities: $ 142,454,635 142,454,635 $ - $ - $
Federal Agency Security
142,454,635 142,454,635 $ - $ - $
Total investments measured at fair value
Investments measured at amortized cost:

LAIF 35,605,548
Pooled Insurance Investments 34,486
Money Market Mutual Funds 8,034,047
Investment Contracts 5,082,256
Total investments measured at amortized cost 48,756,337 Total pooled and direct investments 191,210,972 $
Investment types by Fair Value Level
Fair Value Measurements Using
NOTE 3 – NOTES, LOANS, AND LONG-TERM RECEIVABLES
Notes receivable for the primary government consist of:

Primary government:

Total notes receivable $ 759,458
Five secured notes receivable for various amounts from Kaweah Management for properties at 145 No B St, 445 So I St, 361 Beechwood, 484 Beechwood, and 524 Aspenwood. These loans are 55 year notes with affordability agreements. If these notes stay in compliance for the full term, then the notes are forgiven. If not, then the notes are due and payable and any funds returned to the City will be forwarded to Tulare County as program income per Federal funding rules for the Neighborhood Stabilization Program (NSP).

Loans receivable consist of:

Primary government:

HOME Program (Housing Successor Agency (HSA)) $ 8,033,045 Housing Community Development Block Grant (CDBG) loans 1,032,098 Rehabilitation loans 1,098,226
Others 29,391
Total loans receivable $ 10,192,760

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
51 NOTE 3 – NOTES, LOANS, AND LONG-TERM RECEIVABLES (Continued) On January 5, 2017, the Department of Finance (DOF) approved a loan between the City and Successor Agency for the amount of $10,588,362. Annual City loan payments cannot exceed 50% of the incremental growth of residual Redevelopment Property Tax Trust Fund (RPTTF) revenues between the previous fiscal year and fiscal year 2012-13. The Successor Agency intends to repay the loan as soon as possible. The balance of this long-term receivable as of June 30, 2023, was $9,970,721.

NOTE 4 – CAPITAL ASSETS
Capital assets activities for the year ended June 30, 2023, were as follows:

Balance Prior Period Restated Balance Transfers/ Balance June 30, 2022 Adjustments July 1, 2022 Additions Deletions Adjustments June 30, 2023 Governmental Activities:

Capital assets not being depreciated:

Land 17,389,440 $ - $ 17,389,440 $ 1,914,288 $ - $ - $ 19,303,728 $ Right-of-way 1,306,651 - 1,306,651 - - - 1,306,651
Construction in progress (CIP) - 9,349,781 9,349,781 6,136,301 - - 15,486,082 Total capital assets not being depreciated - 28,045,872 28,045,872 8,050,589 - - 36,096,461 Capital assets being depreciated/amortized:

Infrastructure - 224,551,077 224,551,077 2,798,884 - - 227,349,961 Structures and improvements - 61,063,311 61,063,311 874,250 - - 61,937,561 Equipment - 37,538,348 37,538,348 4,147,470 (1,399,985) - 40,285,833 Right-to-use SBITA asset 156,539 - 156,539 - - - 156,539 Total capital assets being depreciated 156,539 323,152,736 323,309,275 7,820,604 (1,399,985) - 329,729,894 Less accumulated depreciation/amortization for:

Infrastructure (171,593,508) 36,697,207 (134,896,301) (10,129,527) - - (145,025,828) Structures and improvements (29,907,044) 27,086 (29,879,958) (1,398,238) - - (31,278,196) Equipment (26,177,033) 69,843 (26,107,190) (2,028,986) 1,032,019 (1,403) (27,105,560) Right-to-use SBITA asset (38,610) - (38,610) (46,485) - - (85,095) Total accumulated depreciation/amortization 36,755,526 (227,677,585) (190,922,059) (13,603,236) 1,032,019 (1,403) (203,494,679) Total capital assets being depreciated/amortized, net 36,912,065 95,475,151 132,387,216 (5,782,632) (367,966) (1,403) 126,235,215 Governmental activities capital assets, net $ 36,912,065 123,521,023 $ 160,433,088 $ 2,267,957 $ (367,966) $ (1,403) $ 162,331,676 $ Balance Transfers/ Balance
July 1, 2022 Additions Deletions Adjustments June 30, 2023 Business-Type Activities
Capital assets not being depreciated:

Land 7,620,014 $ $ 660,881 $ - $ 8,280,895 - $
Construction in progress (CIP) 8,772,163 16,725,276 - (1,855,875) 23,641,564 Total capital assets not being depreciated 9,433,044 24,345,290 - (1,855,875) 31,922,459 Capital assets being depreciated:

Buildings 7,501,788 26,000 - 7,527,788 -
Improvements other than buildings 371,238,148 1,270,790 1,685,279 - 374,194,217 Equipment 2,557,096 36,905,096 - 170,596 39,632,788
Total capital assets being depreciated 3,853,886 415,645,032 - 1,855,875 421,354,793 Less accumulated depreciation for:

Buildings (2,309,899) (167,304) - (2,477,203) -
Improvements other than buildings (119,678,207) (8,001,120) - 58,350 (127,620,977) Equipment (1,086,125) (11,545,763) - (58,350) (12,690,238) Total accumulated depreciation (9,254,549) (133,533,869) - - (142,788,418) Total capital assets being depreciated, net (5,400,663) 282,111,163 - 1,855,875 278,566,375 Business-type activities capital assets, net $ 4,032,381 306,456,453 $ - $ - $ 310,488,834 $

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Notes to the Basic Financial Statements
52 NOTE 4 – CAPITAL ASSETS (Continued)
Depreciation and amortization expense is charged to functions and programs based on their usage of the related assets.

Depreciation and amortization expense for the year ended June 30, 2023, was charged to the following activities:

Governmental activities:

General government $ 311,174
Public safety 259,405
Community development 10,227,399
Community services 1,928
Library and cultural 973,383
Internal service fund 1,829,947
Total governmental activities $ 13,603,236
Business-type activities:

Transit $ 542,830
Community and development 1,517
Water 2,196,077
Solid waste 10,093
Sewer 6,350,332
Aviation 153,700
Total governmental activities $ 9,254,549
NOTE 5 – INTERFUND TRANSACTIONS
Interfund transactions are reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

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Notes to the Basic Financial Statements
53 NOTE 5 – INTERFUND TRANSACTIONS (Continued)
lnterfund transactions due from/to other funds at June 30, 2023, were as follows:

Due From Due To
Governmental Funds:

Major Funds:

General 3,708,293 $ - $
Nonmajor Funds:

Senior Services - 522,253
Housing Redevelopment CDBG - 385,185
Traffic Safety - 14,810
Local Law Enforcement Block Grant - 30,125
OTS Grant - 14
Auto Theft Deterrance - 9,339
Proprietary Major Funds:

Aviation - 169,337
Internal Service Funds:

Employee Welfare 11,419 -
General Insurance 2,190,458 -
Unemployment Insurance 13,522 -
Purchasing 361,831 -
$ 3,708,293 3,708,293 $

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Notes to the Basic Financial Statements
54 NOTE 5 – INTERFUND TRANSACTIONS (Continued)
lnterfund transfers consist of transfers from funds receiving resources to funds through which the resources are to be expended. lnterfund transfers for the 2022-23 fiscal year are as follows:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General 4,495,478 $ 4,456,113 $
Measure R - 137,683
Financing Authority 2,200,000 -
Nonmajor Funds:

Senior Services 445,885 -
Gas Tax - 2,912,715
Traffic Safety - 134,343
OTS Grant - 10,737
Technology CIP - 327,810
Proprietary Major Funds:

Community and Economic Development Services 2,020 300,000 Water 611,337 711,150
Solid Waste - 6,150
Sewer - 462,290
Internal Service Funds:

Unemployment Insurance - 26,891
Surface Water Management 1,425,800 1,000,000
Total transfers $ 9,833,201 9,833,201 $
Transfers noted during the year are for funding of capital projects, reimbursements of costs, and debt service related payments.

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Notes to the Basic Financial Statements
55 NOTE 6 – LONG-TERM DEBT
The following is a summary of the long-term debt activity for the year ended June 30, 2023:

Amounts Due
Balance Balance Within
July 1, 2022 Additions Deletions June 30, 2023 One Year Governmental activities:

Lease revenue bonds payable $ 22,235,000 $ (1,220,000) - $ $ 21,015,000 $ 1,285,000 Bond premium 1,731,402 (109,930) - 1,621,472 109,930
Finance leases 12,982,126 - - 12,982,126 -
Compensated absences payable 2,683,632 519,104 (183,680) 3,019,056 255,413 Insurance claim payable 1,444,875 - 1,444,875 - 1,444,875 Net pension liability 30,095,260 37,894,450 (9,669,737) 58,319,973 - Net OPEB liability 45,213 2,179,602 (537,784) - 1,687,031 Total governmental activities $ 51,440,893 60,369,771 $ (11,721,131) $ 100,089,533 $ 3,095,218 $ Business-type activities:

Revenue bonds payable $ 180,225,000 $ (5,289,999) - $ $ 174,935,001 $ 5,095,000 Bond premium 14,734,528 (635,622) - 14,098,906 635,622
Compensated absences payable 1,229,087 284,730 (113,302) 1,400,515 118,484 Net pension liability 11,276,604 10,363,406 (2,674,110) 18,965,900 - Net OPEB liability 20,180 972,844 (240,035) - 752,989
Total business-type activities $ 10,668,316 208,438,063 $ (8,953,068) $ 210,153,311 $ 5,849,106 $ Type of Debt
Amounts Due
Balance Balance Within
July 1, 2023 Additions Deletions June 30, 2023 One Year Primary government:

Revenue bonds payable $ - 202,460,000 $ (6,509,999) $ 195,950,001 $ 6,380,000 $ Bond premium - 16,465,930 (745,552) 15,720,378 745,552
Finance leases 12,982,126 - - 12,982,126 -
Compensated absences payable 3,912,719 803,834 (296,982) 4,419,571 373,897 Insurance claim payable 1,444,875 - - 1,444,875 1,444,875 Net pension liability 41,371,864 48,257,856 (12,343,847) 77,285,873 - Net OPEB liability 65,393 3,152,446 (777,819) 2,440,020 - Total governmental activities $ 62,109,209 268,807,834 $ (20,674,199) $ 310,242,844 $ 8,944,324 $ Type of Debt
The liability for pension related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred. The pension related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
56 NOTE 6 – LONG-TERM DEBT (Continued)
A. Governmental Activities
Lease revenue bonds (the Authority)
On March 27, 2018, the City issued $26,675,000 in Lease Revenue Bonds to refund the City's 2008 Lease Revenue Bond with an outstanding balance of $26,670,000. The reacquisition price exceeded the net carry amount of the old debt by $5,000. The transaction resulted in an economic gain of $4,478,415. Due to the advance refunding of the 2008 Lease Revenue Bond, a deferred outflow of resources (refunding of debt) of $175,898 was calculated and will be amortized over the life of the debt. The bonds are payable in amounts ranging from $1,040,000 to $1,700,000 per year on April 1 each year, commencing April 1, 2019, through April 1, 2038, and bear interest at rates ranging from 3.00% to 5.00% depending upon the date of maturity. At June 30, 2023, the outstanding balance, including the related unamortized bond premium and discount, was: $ 22,636,472
On June 29, 2023, the City entered into a financing lease with Banc of America Public Capital Corp. a Kansas corporation for an amount not to exceed $12,982,126 (for lease and acquire from Lessor certain equipment. The proceeds form this obligation will help finance the cost and acquisition and installation of various equipment for the City. The payments commence in fiscal year 2024 and run through fiscal year 2043. The financing lease has a contract rate of 3.850% per annum.

As of June 30, 2023, the City has received the full proceeds from Banc of America Public Capital Corp., and has not drawn down any of the $12,982,126 loan proceeds for equipment related purchases. $ 12,982,126
Compensated absences:

The City accounts for compensated absences (unpaid vacation, sick leave, and compensatory time) in accordance with the City's policy. In governmental funds, compensated absences are recorded as expenditures in the year paid, as it is the City's intention to liquidate any unpaid compensated absences at June 30 from future resources, rather than current available financial resources. Accordingly, the unpaid liability for governmental funds is recorded in the government-wide Statement of Net Position. $ 3,019,056
B. Business-Type Activities
2015 Sewer Revenue Refunding Bonds
In November 2015, the City issued $84,555,000 in Sewer Revenue Refunding Bonds to refund the City's 2006 Sewer Revenue Bonds with an outstanding principal of $76,800,000. The reacquisition price exceeded the net carry amount of the old debt by $7,755,000. This amount is being netted against the new debt and amortized over the new debt's life. The transaction resulted in an economic gain of $7,433,828. Principal and interest payments are due semi-annually commencing on November 15, 2015, through November 15, 2045, and bear interest at a rate of 5%. In October 2020, the City paid off a portion of the remaining balance by using the Sewer Revenue Refunding Bonds, Series 2020A and 2020B. At June 30, 2023, the outstanding balance, including the related unamortized bond premium, was $60,469,627.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
57 NOTE 6 – LONG-TERM DEBT (Continued)
B. Business-Type Activities (Continued)
2016 Sewer Revenue Refunding Bonds
On July 20, 2016, the City issued $58,265,000 in Sewer Revenue Refunding Bonds to refund the City's 2010 Sewer Revenue Bonds with an outstanding principal of $8,375,000, and the City's 2009 Sewer Revenue Bonds with an outstanding principal of $54,775,000. Due to the advance refunding of the 2010 Sewer Revenue Bonds, a deferred outflow of resources (refunding of debt) of $387,453 was calculated and will be amortized over the life of the debt. The transaction resulted in a reduction of $1,951,172 in future debt service payments. The economic gain was $906,004.

Principal and interest payments are due semi-annually commencing November 15, 2019, through November 15, 2044, and bear interest at rates from 3% to 5%. At June 30, 2023, the outstanding balance, including unamortized bond premium, was $59,969,325.
2017 Water Revenue Refunding Bonds
In 2018, the City issued $18,155,000 in Water Revenue Refunding Bonds. The bond principal is payable in amounts ranging from $330,000 to $1,080,000 per year on December 1 each year, commencing December 1, 2018, through December 1, 2047, and bears interest at rates from 2.00% to 5.00%. The bond interest is payable twice a year, on June 1 and December 1 each year. At June 30, 2023, the outstanding balance, including the related unamortized bond premium, was $18,220,066.
2020 Water Revenue Refunding Bonds
In 2020, the City issued $15,735,000 in Water Revenue Refunding Bonds. The bond principal is payable in amounts ranging from $260,000 to $1,050,000 per year on December 1 each year, commencing December 1, 2020, through December 1, 2049, and bears interest at rates from 4.00% to 5.00%. The bond interest is payable twice a year, on June 1 and December 1 each year. At June 30, 2023, the outstanding balance, including the related unamortized bond premium, was $14,486,680.
2020A and 2020B Sewer Revenue Refunding Bonds
In 2021, the City issued $20,170,000 and $17,210,000 in Series A and Series B Revenue Refunding Bonds, respectively, to refund the City's 2012 Sewer Revenue Refunding Bond with an outstanding principal of $5,364,005, 2013 Sewer Revenue Refunding Bonds with an outstanding principal of $20,060,000, and $20,000,000 of the 2015 Sewer Revenue Refunding Bonds. Due to the advance refunding of each Sewer Revenue Bonds, a deferred outflow of resources (refunding debt) of $332,418 was calculated and will be amortized over the life of the debt. The transaction resulted in a reduction of $10,279,742 in future debt service payments. The economic gain was $6,927,470.

The 2020A bond principal is payable in amounts ranging from $305,000 to $2,955,000 per year on November 15 each year, commencing November 15, 2021, through November 15, 2041, and bears interest at rates from 4% to 5%. The bond interest is payable twice a year, on May 15 and November 15 each year. At June 30, 2023, the outstanding balance, including the related unamortized premium, was $21,208,211.

The 2020B bond principal is payable in amounts ranging from $805,000 to $2,020,000 per year on November 15 each year, commencing November 15, 2021, through November 15, 2033, and bears interest at rates from 0.809% to 2.794%.

The bond interest is payable twice a year, on May 15 and November 15 each year. At June 30, 2023, the outstanding balance, including the related unamortized premium, was $14,680,000.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
58 NOTE 6 – LONG-TERM DEBT (Continued)
The annual requirements to amortize bonded debt and notes payable, including interest, are as follows:

Governmental
Activities
2018 Lease 2015 Sewer 2016 Sewer 2017 Water
Year Ending Revenue Revenue Revenue Revenue
June 30 Bonds Refunding Bonds Refunding Bonds Refunding Bonds 2024 $ 2,225,000 $ 5,014,125 $ 2,771,650 $ 1,103,300
2025 2,225,750 5,007,625 2,773,250 1,102,800
2026 2,223,250 4,951,750 2,772,800 1,106,600
2027 2,222,500 4,843,875 2,771,950 1,104,700
2028 1,768,250 4,827,875 2,748,175 1,107,100
2029-2033 8,854,250 23,962,875 13,763,900 5,522,000
2034-2038 8,846,501 18,404,000 19,243,900 5,526,250
2039-2043 8,290,875 - 26,310,475 5,521,375
2044-2048 12,037,500 - 19,252,675 5,520,625
87,340,500 28,365,501 92,408,775 27,614,750
Less interest 7,350,500 31,420,500 36,433,775 11,189,750 Plus unamortized premium 1,621,471 4,549,627 3,994,325 1,795,065 Total 22,636,472 $ 60,469,627 $ 59,969,325 $ 18,220,065 $ Business-Type Activities
Primary Government
2020 Water 2020A Sewer 2020B Sewer
Year Ending Revenue Revenue Revenue
June 30, Refunding Bonds Refunding Bonds Refunding Bonds 2024 $ 773,900 $ 1,430,300 $ 1,124,027
2025 770,650 1,434,275 1,129,236
2026 771,775 1,433,150 1,122,762
2027 772,150 972,025 1,124,025
2028 771,775 659,400 2,093,570
2029-2033 3,861,400 3,297,000 9,250,654
2034-2038 3,860,700 8,233,200 877,084
2039-2043 3,867,350 12,269,700 -
2044-2048 3,863,500 - -
2049-2053 - 1,544,900 -
29,729,050 20,858,100 16,721,358
Less interest 7,828,100 10,824,050 2,041,358
Plus unamortized premium 1,456,679 2,303,211 -
Total 14,486,679 $ 21,208,211 $ 14,680,000 $
Business-Type Activities
Primary Government

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
59 NOTE 6 – LONG-TERM DEBT (Continued)
Compensated Absences:

The City accounts for compensated absences (unpaid vacation, sick leave, and compensatory time) in accordance with the City's policy. At June 30, 2023, the compensated absences payable totaled $1,400,515 for business-type activities.

NOTE 7 – PENSION PLANS
The City participates in the Miscellaneous Plan, an agent multiple employer defined benefit pension plan of the City of Tulare, and the Safety Fire Plan and Safety Police Plan, cost-sharing multiple employer defined benefit pension plans of the City of Tulare, which are included in the Public Agency portion of CalPERS.

A. Miscellaneous Plan
General Information
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost of living adjustments for Miscellaneous Plan are applied as specified by the Public Employees' Retirement Law.

The Public Employees' Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. Pursuant to PEPRA, the Miscellaneous 2nd Tier Plan is closed to new entrants as of January 1, 2013.

The rate plan provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous Miscellaneous Miscellaneous
1st Tier 1st Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2011 December 31, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.5% @ 55 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 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 8.000% 8.000% 7.000% Required employer contribution rates 10.570% 10.570% 10.570%

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
60 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
General Information (Continued)
Benefits Provided (Continued)
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 and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $3,828,963 for the year ended June 30, 2023.

Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms for the Plan:

Inactive employees or beneficiaries currently receiving benefits 352 Inactive employees entitled to but not yet receiving benefits 154 Active employees 238
Total 744
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. 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. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City's contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2023, were $5,007,336.

Net Pension Liability
As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $42,165,185.

The City's net pension liability for its Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
61 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
June 30, 2021
June 30, 2022

6.90%

2.500%

2.750%
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS specific data.

The table includes 15 years of mortality improvements using Society of Actuaries Scale BB.

Derived using CalPERS' Membership
Data for all Funds(2)
Entry- Age Normal Cost Method
Varies by Entry Age and Service

7.00%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the Cal PERS website.

Changes of Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

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

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
62 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Net Pension Liability (Continued)
Actuarial Assumptions (Continued)
Discount Rate
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted for assumed administrative expenses of 10 Basis points.

The expected real rates of return by asset class are as follows:

Asset Class (a)
Assumed Asset Allocation Real Return Years 1-10(b)
Global equity - cap-weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Invetment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021-22 Asset Liability Management Study

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
63 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Changes in Net Pension Liability
The changes in the net pension liability for the Plan follow:

Increase
(Decrease) in Net Pension
Total Pension Plan Fiduciary Liability (Asset)
Liability (1) Net Position (2) (3)=(1)-(2)
Balance at June 30, 2021 $ 141,227,055 $ 116,510,330 $ 24,716,725 Changes recognized for the measurement period:

Service cost - 2,817,366 2,817,366
Interest on the total pension liability - 9,748,281 9,748,281 Changes of assumptions - 4,158,654 4,158,654
Differences between expected and actual experience - (1,814,905) (1,814,905) Contributions from the employer 4,700,557 - (4,700,557) Contributions from the employees 1,572,986 - (1,572,986) Net investment income (8,740,028) - 8,740,028
Benefits payment, including refunds of
employee contributions (7,400,125) (7,400,125) -
Administrative expenses (72,579) - 72,579
Net Changes (9,939,189) 7,509,271 17,448,460
Balance at June 30, 2022 148,736,326 106,571,141 42,165,185 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate for the Miscellaneous Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
$ 42,165,185 61,179,811 $ 26,403,695 $
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

8.1 General Business Page 92
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
64 NOTE 7 – PENSION PLANS (Continued)
A. Miscellaneous Plan (Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $4,543,588. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ - 5,007,336 $ Changes of assumptions 2,673,420 -
Differences between actual and expected experience 1,274,681 - Net differences between projected and actual earnings on plan investments 5,294,780 - Total $ 1,274,681 12,975,536 $
$5,007,336 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended June 30
2024 $ 1,567,645
2025 1,416,702
2026 366,093
2027 3,343,079
2028 -
Total 6,693,519 $
Payable to the Pension Plan
The City did not have any outstanding contributions payable to the pension plan for the year ended June 30, 2023.

B. Safety Police and Safety Fire Plans
General Information
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing MultipleEmployer Plan (the 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 (all other).

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 six safety rate plans (three police and three fire). 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 Cal PERS website.

8.1 General Business Page 93
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
65 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
General Information (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost of living adjustments for the Plan are applied as specified by the Public Employees' Retirement Law.

The Plan's provisions and benefits in effect at June 30, 2023, are summarized as follows:

Safety - Police Safety - Police Safety - Police
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.75% 20.64% 12.78% Safety - Fire Safety - Fire Safety - Fire
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.00% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.75% 21.84% 12.78% 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 and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $2,457,611 for the year ended June 30, 2023.

8.1 General Business Page 94
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
66 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
General Information (Continued)
Contributions
Section 20814(c) of the California Public Employees' Retirement Law mandates that the employer rates for all public employers must be determined annually by the actuary and will be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. 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. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City's contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2023, were $3,844,348.

Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $35,120,688.

The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2021 and 2022, was as follows:

Proportion - June 30, 2021 0.4746%
Proportion - June 30, 2022 0.5111%
Change - Increase (Decrease) 0.0365%
For the year ended June 30, 2023, the City recognized pension expense of $4,446,302. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ - 4,294,568 $ Changes in assumptions 3,541,229 -
Differences between actual and expected experience 381,383 1,453,518 Net differences between projected and actual earnings on plan investments - 5,546,047 Changes in City's proportion - 3,311,549
Differences between the employer's actual contributions and the employer's proportionate share of contributions 3,212,596 -
Total $ 3,593,979 18,146,911 $

8.1 General Business Page 95
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
67 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) $4,294,568 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended June 30
2024 $ 3,035,458
2025 2,469,356
2026 1,370,390
2027 3,383,160
2028 -
Thereafter -
Total 10,258,364 $
Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
June 30, 2021
June 30, 2022
Entry- Age Normal Cost Method

6.90%

2.30%
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS specific data.

The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020.

2.80%
Varies by Entry Age and Service

6.90%(1)
Derived using CalPERS'
Membership Data for all Funds(2)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experiences Study can be found on the CalPERS website.

8.1 General Business Page 96
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
68 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Actuarial Assumptions
Changes of Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

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

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all 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 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 equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
69 NOTE 7 – PENSION PLANS (Continued)
B. Safety Police and Safety Fire Plans (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Discount Rate (Continued)
The expected real rates of return by asset class are as follows:

Asset Class (a) Assumed Asset Allocation Real Return Years 1-10(b) Global equity - cap-weighted 30.0% 4.45%
Global equity non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Invetment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021-22 Asset Liability Management Study 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 the 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:

Discount Rate -1% Current Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
$ 35,120,688 53,500,462 $ 20,099,375 $
Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
The City did not have any outstanding contributions payable to the pension plan for the year ended June 30, 2023.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
70 NOTE 8 – RISK MANAGEMENT
The City is a member of the Central San Joaquin Valley Risk Management Authority (CSJVRMA). CSJVRMA is a consortium of fifty-four (54) cities in the San Joaquin Valley, California, established under the provisions of California Government Code Section 6500, et seq. CSJVRMA provides risk coverage for its members through the pooling of risks and purchased insurance. This coverage extends to workers' compensation and general liability. CSJVRMA is governed by a board consisting of one board member appointed by each member agency and meets three to four times a year. The board has contracted with a management group to supervise and conduct CSJVRMA affairs.

In the event of termination and after all claims have been settled, any excess or deficit will be divided among the agencies in accordance with an approved formula.

A. General Liability Insurance
Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city self-insures through the CSJVRMA for the first $100,000 of each loss. However, this self-insurance retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits as described herein. Participating cities then share in the next $100,000 to $1,000,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, errors and omissions, and certain other coverage.

Separate deposits are collected from the member cities to cover claims between $1,000,000 and $15,000,000. These deposits are also subject to retrospective adjustment.

B. Workers’ Compensation
The workers' compensation program includes pooling of retained losses plus excess insurance. Annual deposits are paid by member cities and are adjusted retrospectively on an annual basis to cover costs and reflect claims experience of both the individual member and the pool. The annual retrospective computation of the deposit is based on the member's own losses up to its retention level plus a pro-rata share of general/administrative expenses and losses between $100,000 and $500,000. The City has a retention level of $100,000, and all claims up to that level are paid by the City. However, this selfinsured retention is funded through annual contributions; therefore, the City effectively has no exposure except for specific limits described herein. Benefits from $100,000 to $500,000 are covered by the pool. Excess insurance covers claims from $500,000 up to the statutory benefits schedule under California Workers’ Compensation Law.

There have been no significant changes in insurance coverage as compared to last year, and settlements have not exceeded coverage in each of the past three fiscal years. The insurance claims payable at June 30, 2023, was $1,444,875.

NOTE 9 – OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
Plan Administration
The City provides a single-employer OPEB Plan to cover eligible retirees’ health care insurance and life insurance costs in accordance with a resolution approved by the City Council.

Benefits Provided
The benefits are provided in the form of:
• An explicit subsidy where the City contributes towards health contributions of those active employees and retirees hired before June 23, 1984.
• An explicit subsidy for OPEB life insurance benefits.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
71 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (Continued)
A. Plan Description (Continued)
Benefits Provided (Continued)
For employees hired before June 24, 1984, the City operates under an agreement to continue to provide health care insurance benefits to all employees who retire after the age of 50 and who have 10 years of service to the City. The retirees are required to pay the employee insurance contribution being charged at the time of their retirement and the City pays the excess of the cost over the amount of the contribution.

The employees' contribution rate is frozen for them; they will never have to pay a larger amount regardless of changes in the City's cost to provide the insurance. At July 1, 2021, members affected by this provision are as follows:

Active employees -
Retired employees 22
Total 22
In June 1984, in the City's annual memorandum of understanding with employee bargaining units, this agreement was amended for those hired after June 23, 1984: Employees hired after June 23, 1984, must be 55 years old and work 10 years to qualify for the benefits. In addition, for those employees who are hired after June 23, 1984, any increases in contributions after retirement must be borne by the retirees (their rates are not frozen); the City still pays the excess of the cost over the amount of the employees cost of the contribution. The City's obligation under the agreements continues until the death of the employee unless the employee chooses to discontinue the insurance.

Effective August 1, 2006, management employees with more than 20 years of service with the City and attaining age 50 are eligible to continue of the City's health insurance at the same rate as if they were 55.

Plan Membership
At July 1, 2021, Plan membership consisted of the following:

Inactive plan members or beneficiaries currently
receiving benefits payments 32
Active plan members 309
Total 341
Contributions
The contribution requirements of OPEB Plan members and the City are established and amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements. No assets are accumulated in a trust that meets the criteria in Paragraph 4 of GASB Statement No. 75.

B. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2021. Standard actuarial update procedures were used to project/discount from valuation to measurement dates.

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
72 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Discount rate 3.69%
Inflation rate 3.00%
Salary increases 3.50%
Healthcare cost trend rate 5.75% for 2022; 5.50% for 2023; 5.20% for 2024-2069 and

4.50% for 2070 and later years; Medicare ages: 4.50% for all years.

Pre-retirement/post-retirement
Mortality Pre-retirement Mortality Rates from CalPERS Experience Study (2000-2019); Post-retirement Mortality Rates for
Healthy Recipients from CalPERS Experience Study (2000- 2019)
Actuarial assumptions used in the July 1, 2021 valuation were based on a review of plan experience during the period July 1, 2019 to June 30, 2021.

Discount Rate
GASB Statement No. 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB Plan investments - to the extent that the OPEB Plan's fiduciary net position (if any) is projected to be enough to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return.
b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher - to the extent that the conditions in (a) are not met.

To determine a resulting single (blended) rate, the amount of the OPEB Plan's projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. The discount rate used to measure the City's total OPEB liability is based on these requirements and the following information:

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
73 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
Changes in the Net OPEB liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability(Asset)
Balance at June 30, 2021 $ - 3,152,446 $ 3,152,446 $
Changes in the year:

Service cost 6,230 - $ 6,230
Interest 59,163 - 59,163
Contributions - employer 155,295 - (155,295)
Difference between expected
and actual experience - - -
Change of assumptions (622,524) (622,524) -
Benefit payments (155,295) (155,295) -
Net Changes (712,426) - (712,426)
Balance at June 30, 2022 2,440,020 $ - $ 2,440,020 $
Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (2.69 percent) or 1-percentage-point higher (4.69 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase

2.69% 3.69% 4.69%
Net OPEB Liability $ 2,440,020 2,763,264 $ 2,174,979 $
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (4.75 percent) or 1-percentage-point higher (6.75 percent) than the current healthcare cost trend rates:
1% Decrease Discount Rate 1% Increase

4.75% 5.75% 6.75%
Net OPEB Liability $ 2,440,020 2,057,373 $ 2,910,392 $

8.1 General Business Page 102
CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
74 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB Plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense (credit) of $(108,549). As of fiscal year ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB Contributions subsequent to measurement date $ 154,222 $ - Difference between expected and actual experience 168 690,053 Changes in assumptions or other inputs 644,761 334,726
Total 489,116 $ 1,334,814 $
The $154,222 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024.

Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:

Year Ending June 30:
2024 (173,943) $
2025 (173,943)
2026 (173,943)
2027 (149,226)
2028 (122,455)
Thereafter (206,410)
Total $ (999,920)

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
75 NOTE 10 – LEASES
City as Lessor
The City leases its facilities to private and corporate entities and various users for office space, municipal facilities, and land leases. The lease terms range from five to thirty-five years, including the noncancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. Each contract either provides for an annual increase of 3% to the lease payments on the anniversary of the agreement or an increase in the line with the CPI.

During the fiscal year, the City recognized $42,551 as lease revenue which is the reduction in deferred inflows of resources, and $36,811 as interest income. At June 30, 2023, the balance of lease receivables was $277,051, and the balance of deferred inflows of resources was $160,740.

NOTE 11 – COMMITMENTS AND CONTINGENCIES
General Liability
Several claims and suits have been filed against the City in the normal course of business. In the opinion of management and the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial statements of the City. Also, the City has certain commitments under long-term construction projects which will be funded out of future revenues.

NOTE 12 – FUND BALANCES
Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2023, is as follows:

American HOME Developer Financing Nonmajor Total
General Measure R Rescue Plan Program Impact Fees Authority Governmental Governmental Fund Balances Fund Fund Act Fund Fund Fund Fund Fund Fund Nonspendable $ - 10,001,471 $ - $ - $ - $ - $ 35,000 $ 10,036,471 $ Total nonspendable 10,001,471 - - - - - 35,000 10,036,471 Restricted:

Public safety - police - - - - - - 10,288 10,288
Public safety - fire - - - - - 115,223 - 115,223
Public works - street 5,043,335 - - - - 2,687,882 - 7,731,217 Debt service - - - - 2,772,533 - 2,772,533 -
Development services - - - - 28,900,840 - 2,120,426 31,021,266 Total restricted 5,043,335 - - - 28,900,840 2,772,533 4,933,819 41,650,527 Committed:

Capital projects - - - - - - 858,956 858,956
Appropriation for next year's budget 6,485,536 - - - - - - 6,485,536 Total committed 6,485,536 - - - - - 858,956 7,344,492
Unassigned - 47,338,311 (356,285) (310) - - (39,461) 46,942,255 Total unassigned 47,338,311 - (356,285) (310) - - (39,461) 46,942,255 Total fund balances $ 5,043,335 63,825,318 $ (356,285) $ (310) $ 28,900,840 $ 2,772,533 $ 5,788,314 $ 105,973,745 $

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CITY OF TULARE | JUNE 30, 2023
Notes to the Basic Financial Statements
76 NOTE 13 – DEFICIT FUND BALANCES/NET POSITION
The following funds contained a deficit fund balance as of June 30, 2023. Future revenues or transfers from other funds are expected to offset these deficits.

Governmental Funds:

Major Funds:

American Rescue Plan Act 356,285
HOME Program 310
Nonmajor Funds:

Local Law Enforcement Block Grant 30,125
Auto Theft Deterrance 9,339
Proprietary Major Funds:

Community and Economic Development Services 2,331,731
Internal Service Funds:

General Insurance 2,259,089
Total $ 4,986,879
NOTE 14 – RESTATEMENT OF BEGINNING FUND BALANCES/NET POSITION During the year ended June 30, 2023, various adjustments to opening fund balances/net positions were identified and corrected. A summary of the prior period adjustments are noted below.

Governmental
Activities
Business-type
Activities
Developer Impact
Fees
Financing
Authority Fund
Community and
Economic
Development
Services Custodial Funds
$ 196,380,297 143,925,101 $ - $ 2,515,532 $ (2,489,689) $ - $ Prior period adjustments:

Understatement of capital assets - 36,794,136 - - - -
Overstatement of accounts payable - 250,250 - 250,250 - - Understatement of unearned revenues - (473,190) - - - - Understatement of revenue 318,433 22,747,095 21,614,335 - 318,433 545,896 Total prior period adjustments 318,433 59,318,291 21,614,335 250,250 318,433 545,896 Change in accounting principle:

Record the adjustments of subscripition based
information technology arrangement (right to use
assets and related liability) for implementation of
GASBS96. - 1,287 - - - -
Total change in accounting principle - 1,287 - - - -
$ 196,698,730 203,244,679 $ 21,614,335 $ 2,765,782 $ (2,171,256) $ 545,896 $ Governmental Funds
Fund balance/net position, June 30, 2022, as previously reported
Fund balance/net position, July 1, 2022, as restated
Proprietary Funds Fiduciary Funds

8.1 General Business Page 105
77 REQUIRED SUPPLEMENTARY INFORMATION

8.1 General Business Page 106
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Pension Plans – Agent Multiple Defined Benefit Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios 78 Report Date - Fiscal Year Ended June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Pension LiabilityService cost $ 2,557,674 2,817,366 $ 2,509,174 $ 2,285,059 $ 2,285,059 $ 2,302,467 $ 1,881,617 $ 1,895,137 $ 2,020,696 $ Interest on total pension liability 9,565,778 9,748,281 9,221,043 8,338,921 8,338,921 8,001,199 7,819,665 7,433,900 7,176,661 Changes in benefit terms - - - - - - - - -
Change of assumptions 4,158,654 - (886,564) - (886,564) 6,473,120 (1,775,482) - - Differences - expected/actual experience (1,814,905) (347,865) 465,723 729,871 729,871 (1,583,358) 562,943 (1,397,005) - Benefit payments, including refunds of employee contributions (6,809,319) (7,400,125) (6,360,937) (6,209,260) (5,624,680) (5,205,114) (5,023,725) (4,661,365) (4,290,119) Net change in total pension liability 4,966,268 7,509,271 5,835,003 7,128,419 4,842,607 9,988,314 5,240,500 1,495,185 4,907,238 Total pension liability - beginning 141,227,055 136,260,787 130,425,784 123,297,365 118,454,758 108,466,444 103,225,944 101,730,759 96,823,521 Total pension liability - ending (a) $ 148,736,326 141,227,055 $ 136,260,787 $ 130,425,784 $ 123,297,365 $ 118,454,758 $ 108,466,444 $ 103,225,944 $ 101,730,759 $ Plan Fiduciary Net PositionPlan to plan resource movement $ - - $ - $ - $ (203) $ - $ - $ - $ - $ Contributions - employer 4,313,159 4,700,557 3,910,427 3,408,537 3,026,404 2,953,750 2,660,488 2,433,522 2,318,875 Contributions - employee 1,516,692 1,572,986 1,621,617 1,431,732 1,314,215 1,173,897 938,085 1,680,617 905,841 Net investment income 21,676,108 (8,740,028) 4,626,622 5,746,746 6,978,602 8,340,246 417,640 (86,194) 11,296,380Administration expenses (72,579) (95,808) (130,038) (62,543) (128,722) (111,403) (46,628) - - Other miscellaneous income/(expense) - - - (244,445) - - - - - Benefit payments, including refunds of employee contributions (6,809,319) (7,400,125) (6,360,937) (6,209,260) (5,624,680) (5,205,114) (5,023,725) (4,661,365) (4,290,119) Net change in plan fiduciary net position (9,939,189) 20,600,832 3,667,691 4,315,212 5,321,171 7,151,376 (1,054,140) 258,837 10,230,977 Plan fiduciary net position - beginning 95,909,498 116,510,330 92,241,807 87,926,595 82,605,424 75,454,048 76,508,188 76,249,351 66,018,374 Plan fiduciary net position - ending (b) $ 106,571,141 116,510,330 $ 95,909,498 $ 92,241,807 $ 87,926,595 $ 82,605,424 $ 75,454,048 $ 76,508,188 $ 76,249,351 $ Net pension liability - ending (a) - (b) $ 24,716,725 42,165,185 $ 40,351,289 $ 38,183,977 $ 35,370,770 $ 35,849,334 $ 33,012,396 $ 26,717,756 $ 25,481,408 $ Plan fiduciary net position as a percentage of the total pension liability 71.65% 82.50% 70.39% 70.72% 71.31% 69.74% 69.56% 74.12% 74.95%Covered employee payroll $ 10,448,740 10,736,617 $ 10,134,999 $ 9,287,900 $ 9,499,135 $ $ 11,261,890 $ 785,106 $ 10,614,682 $ 10,372,469 Net pension liability (asset) as percentage of covered employee payroll 392.72% 236.55% 398.14% 411.12% 372.36% 318.32% 4204.83% 251.71% 245.66%Notes to the ScheduleChanges in Benefit Terms None.*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.

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

8.1 General Business Page 107
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Pension Plans – Agent Multiple Defined Benefit Pension Plan Schedule of Contributions
79 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined employer contributions $ 4,700,556 5,007,336 $ 3,103,795 $ 3,908,531 $ 3,374,661 $ 3,007,436 $ 2,950,052 $ 2,663,687 $ 2,416,465 $ 2,229,666 $ Actual employer contributions 4,700,556 5,007,336 3,103,795 3,908,531 3,374,661 3,007,436 2,950,052 2,663,687 2,416,465 2,229,666 Contribution excess (deficiency) $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 10,736,617 11,148,282 $ 10,448,740 $ 10,134,999 $ 9,287,900 $ 9,499,135 $ 11,261,890 $ 10,756,983 $ 10,614,682 $ 10,372,469 $ Contributions as a percentage of
covered-employee payroll 44.92% 43.78% 29.70% 38.56% 36.33% 31.66% 26.19% 24.76% 22.77% 21.50%*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.

8.1 General Business Page 108
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Pension Plans – Cost Sharing Multiple Employer Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability 80 Measurement Date - Fiscal Year Ended June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015
Proportion of the net pension liability 0.5111% 0.4746% 0.4432% 0.4249% 0.4125% 0.4168% 0.4316% 0.4443% 0.4487%Proportionate share of the net pension liability $ 35,120,688 $ 16,655,139 $ 29,527,370 $ 26,521,847 $ 24,205,123 $ 24,905,736 $ 22,352,131 $ 18,307,442 $ 16,966,410Covered payroll $ 8,633,379 $ 8,637,146 $ 8,384,958 $ 8,017,645 $ 8,887,143 $ 9,255,346 $ 8,848,988 $ 9,091,762 $ 8,626,208Proportionate share of the net pension liability as a percentage of covered payroll 406.80% 192.83% 352.15% 330.79% 272.36% 269.10% 252.60% 201.36% 196.68%Plan fiduciary net pension as a percentage of the total pension liability 73.61% 86.37% 74.61% 75.79% 75.93% 73.62% 73.74% 77.09% 77.86%Notes to the ScheduleChanges in Benefit TermsNone.*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.Changes in Assumptions - Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

8.1 General Business Page 109
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Pension Plans – Cost Sharing Multiple Employer Defined Benefit Pension Plan Schedule of Contributions
81 Report Date - Fiscal Year Ended June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially required contribution (actuarially determined) 4,294,568 $ 3,844,348 $ 3,537,773 $ 3,151,438 $ 2,701,815 $ 2,549,074 $ 3,368,410 $ 3,071,894 $ 3,136,890 $ 2,917,669 $ Contributions in relation to the actuarially determined contributions 4,294,568 3,844,348 3,537,773 3,151,438 2,701,815 2,549,074 3,368,410 3,071,894 3,136,890 2,917,669 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll 9,526,970 $ 8,633,379 $ 8,637,146 $ 8,384,958 $ 8,017,645 $ 8,887,143 $ 9,255,346 $ 8,848,988 $ 9,091,762 $ 8,626,208 $ Contributions as a percentage of covered payroll 45.08% 44.53% 40.96% 37.58% 33.70% 28.68% 36.39% 34.71% 34.50% 33.82%*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.

8.1 General Business Page 110
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Retiree Healthcare Plan (OPEB)
Schedule of Changes in the Net Other Post Employment Benefits (OPEB) Liability and Related Ratios 82 2023 2022 2021 2020 2019 2018
2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 18,574 6,230 $ 615 $ 572 $ 524 $ 508 $
Interest 81,505 59,163 97,955 139,688 130,720 134,199
Change of benefit terms - - - - - -
Differences - expected/actual experience (423,590) - (677,736) - 443 - Change of assumptions (622,524) 243,916 232,088 (18,841) (222,884) - Benefit payments (151,322) (155,295) (151,322) (194,036) (259,572) (259,568) Net change in total OPEB liability (230,917) (712,426) 179,336 (750,353) (350,769) (124,861) Total OPEB liability - beginning (a) 3,383,363 3,152,446 3,204,027 3,954,380 4,305,149 4,430,010 Total OPEB liability - ending (b) $ 3,152,446 2,440,020 $ 3,383,363 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ Plan Fiduciary New Position
Contributions - employer $ 155,295 $ 151,322 $ 194,036 $ 194,036 $ 259,572 $ 259,568 Net investment income - - - - - -
Benefit payments (155,295) (151,322) (194,036) (194,036) (259,572) (259,568) Trustee fees - - - - - -
Administration expense - - - - - -
Net change in plan fiduciary net position - - - - - -
Plan fiduciary net position - beginning (c) - - - - - - Plan fiduciary net position - ending (d) $ - - $ - $ - $ - $ - $ Net OPEB liability - beginning (a) - (c) $ 3,383,363 3,152,446 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ 4,430,010 $ Net OPEB liability - ending (b) - (d) $ 3,152,446 2,440,020 $ 3,383,363 $ 3,204,027 $ 3,954,380 $ 4,305,149 $ Covered employee payroll 30,575,472 $ 27,781,007 $ 26,850,953 $ 26,066,514 $ 25,391,445 $ 23,580,458 $ Net OPEB liability as percentage of
covered employee payroll 7.98% 11.35% 12.60% 12.29% 15.57% 18.26% Plan fiduciary net position as a percentage
of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% *Fiscal year 2017-2018 was the first year of implementation, therefore, only six fiscal years are shown.

Notes to the Schedule
The OPEB schedule presented relates solely to the City. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions.

For Reporting at Fiscal Year Ended June 30:

Measurement Date -- Fiscal Year Ended June 30:

8.1 General Business Page 111
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Retiree Healthcare Plan (OPEB)
Schedule of Other Postemployment Benefits Contributions 83 2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution (ADC) $ 155,295 $ 151,322 $ 194,036 $ 194,036 $ 259,572 $ 259,568 Contributions in relation to the ADC 151,322 155,295 194,036 194,036 259,572 259,568 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ Covered-employee payroll 30,575,472 $ 27,781,007 $ 26,850,953 $ 26,066,514 $ 25,391,445 $ 23,580,458 $ Contributions as a percentage of covered-employee payroll 0.51% 0.54% 0.72% 0.74% 1.02% 1.10% *Fiscal year 2017-2018 was the first year of implementation, therefore, only six fiscal years are shown.

For Reporting at Fiscal Year Ended June 30:

8.1 General Business Page 112
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund (GAAP Basis)
84 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 47,466,100 46,918,600 $ 51,523,882 $ 4,057,782 $ Intergovernmental 455,000 455,000 4,278,732 3,823,732
Licenses and permits 1,380,350 1,380,350 1,469,268 88,918 Charges for services 7,376,870 7,376,870 7,802,594 425,724 Fines and forfeitures 112,800 112,800 225,382 112,582
Use of money and property 150,000 150,000 (321,936) (471,936) Interest and rentals 156,420 156,420 154,677 (1,743)
Grants - - - -
Other 1,384,380 1,376,380 1,471,047 86,667
Total revenues 58,481,920 57,926,420 66,603,646 8,121,726

EXPENDITURES
Current:

General government 8,193,453 7,976,580 8,745,416 (551,963) Public safety 31,827,189 31,686,210 32,296,357 (469,168) Public works 2,721,490 2,714,490 3,101,544 (380,054)
Community development 236,990 236,990 217,627 19,363
Community services 7,001,430 6,647,430 6,991,137 10,293 Library and cultural 1,656,120 1,656,120 1,556,303 99,817 Capital outlay 22,285,436 19,744,530 7,307,938 14,977,498 Debt service:

Principal 54,320 54,320 38,740 15,580
Interest and fiscal charges - - 3,025 (3,025)
Total expenditures 73,976,428 70,716,670 60,258,087 13,718,341 Excess (deficiency) of revenues
over (under) expenditures (15,494,508) (12,790,250) 6,345,559 21,840,067

OTHER FINANCING SOURCES (USES)
Transfers in 7,057,300 6,977,300 4,495,478 (2,561,822)
Transfers out (5,451,590) (5,371,590) (4,456,113) 995,477 Proceeds on debt issuance - - 12,982,126 12,982,126
Sale of capital assets - - 293,000 293,000
Total other financing sources (uses) 1,605,710 1,605,710 13,314,491 11,708,781 Net change in fund balance $ (13,888,798) (11,184,540) $ 19,660,050 33,548,848 $ Fund balance - beginning 44,165,268
Fund balance - ending 63,825,318 $

8.1 General Business Page 113
CITY OF TULARE| FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Measure R Fund
85 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ - - $ 1,166,305 $ 1,166,305 $
Use of money and property - - (43,652) (43,652)
Total revenues - - 1,122,653 1,122,653

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures - - 1,122,653 1,122,653

OTHER FINANCING SOURCES (USES)
Transfers out (2,281,910) - (137,683) 2,144,227
Total other financing sources (uses) (2,281,910) - (137,683) 2,144,227 Net change in fund balance $ (2,281,910) - $ 984,970 3,266,880 $ Fund balance - beginning 4,058,365
Fund balance - ending 5,043,335 $

8.1 General Business Page 114
CITY OF TULARE| FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual American Rescue Plan Act Fund
86 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 3,176,975 $ 3,176,975 $
Total revenues - - 3,176,975 3,176,975

EXPENDITURES
Current:

General government - - 25,895 (25,895)
Capital outlay - - 3,151,079 (3,151,079)
Total expenditures - - 3,176,974 (3,176,974)
Excess (deficiency) of revenues
over (under) expenditures - - 1 1

OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) - - - -
Net change in fund balance $ - - $ 1 1 $
Fund balance - beginning (356,286)
Fund balance - ending $ (356,285)

8.1 General Business Page 115
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual HOME Program Fund
87 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ - - $ 330,514 $ 330,514 $
Total revenues - - 330,514 330,514

EXPENDITURES
Current:

Community development - - 330,515 (330,515)
Total expenditures - - 330,515 (330,515)
Excess (deficiency) of revenues
over (under) expenditures - - (1) 661,029

OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) - - - -
Net change in fund balance $ - - $ (1) 661,029 $
Fund balance - beginning (309)
Fund balance - ending $ (310)

8.1 General Business Page 116
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Financing Authority Fund
88 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ 8,000 (8,000) $ 38,326 $ 30,326 $ Total revenues 8,000 (8,000) 38,326 30,326

EXPENDITURES
Current:

Intergovernmental 5,390 5,390 10,575 (5,185)
Principal 1,220,000 1,220,000 1,220,000 -
Interest and fiscal charges 985,750 985,750 1,001,000 (15,250) Total expenditures 2,211,140 2,211,140 2,231,575 (20,435) Excess (deficiency) of revenues
over (under) expenditures (2,203,140) (2,219,140) (2,193,249) 9,891

OTHER FINANCING SOURCES (USES)
Transfers in - - 2,200,000 2,200,000
Total other financing sources (uses) - - 2,200,000 2,200,000 Net change in fund balance $ (2,203,140) (2,219,140) $ 6,751 2,209,891 $ Fund balance - beginning, restated 2,765,782
Fund balance - ending $ 2,772,533

8.1 General Business Page 117
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Notes to the Required Supplementary Information
89 NOTE 1 – BUDGETARY DATA
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:

On or before the second meeting in May, the City Manager submits to the City Council a proposed operating and capital projects budget for the fiscal year commencing the following July 1st. Following publication and public hearings, the budget is legally enacted by resolution.

The City Manager is authorized to transfer funds appropriated with respect to all classifications within the same department. The City Manager may transfer appropriated funds from any classification within other expenditure categories to existing capital outlay and capital projects classifications within the same department only; however, any revisions that alter the total expenditures of any department or create additional projects must be approved by the City Council.

Supplemental budgetary appropriations were negligible for the year ended June 30, 2023. All unencumbered appropriations lapse at year-end.

For budgeting purposes, the General Fund is composed of several departments while all other budgeted funds are considered a single department. Revenues are budgeted on a line-item basis. A comparison of budgeted and actual revenues by line item would be too voluminous for this report.

Budgets for the General, Special Revenue, and Debt Service Funds are presented on a basis consistent with accounting principles generally accepted in the United States of America. No budgets are adopted for the Proprietary and Fiduciary Fund types. Budgetary comparison schedules are presented for all required funds with legally adopted budgets.

Budgeted amounts are as originally adopted or as amended by the City Council.

NOTE 2 – EXCESS EXPENDITURES OVER APPROPRIATIONS
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2023:

Appropriations Category Budget Actual Variance
General Fund:

Current:

General government $ 8,193,453 $ 8,745,416 $ (551,963)
Public safety 31,827,189 32,296,357 (469,168)
Public works 2,721,490 3,101,544 (380,054)
Debt service:

Interest and fiscal charges - 3,025 (3,025)
American Rescue Plan Act Fund:

Current:

General government - 25,895 (25,895)
Capital outlay - 3,151,079 (3,151,079)
HOME Program Fund:

Current:

Community development 330,515 - (330,515)
Finance Authority Fund (Debt Service):

Current:

Intergovernmental 10,575 5,390 (5,185)
Debt service:

Interest and fiscal charges 1,001,000 985,750 (15,250)

8.1 General Business Page 118
90 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

8.1 General Business Page 119
91 SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

The Senior Services Fund accounts for receipts of funds from various sources and expenditures to provide meals to senior citizens.

The Encampment Resolution Grant Fund accounts for receipts of funds from various sources and expenditures aimed at addressing and resolving issues related to homeless encampments.

The Housing Redevelopment CDBG Fund accounts for capital projects relating to the low and moderate income housing program.

The Gas Tax Fund accounts for receipts and expenditures of money apportioned under Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5 of the State of California.

The Traffic Safety Fund accounts for vehicle code fund revenues and expenditures for traffic safety purposes.

The Citizens Option for Public Safety (COPS) - State Grant Fund accounts for the City's allocation of the State of California COPS program established by Assembly Bill (AB) 3229.

Local Law Enforcement Block Grant Fund accounts for Federal funds received from the U.S. Department of Justice for the purpose of reducing crime and improving public safety.

The Landscape and Lighting Fund accounts for revenues from assessments collected under the 1972 Landscape and Lighting Act and expenditures for maintenance of landscaping in the special assessment districts.

The Office of Traffic and Safety (OTS) Grant Fund accounts for Federal revenues for the comprehensive traffic safety program.

The Auto Theft Deterrence Fund accounts for State revenues for the suppression of auto theft.

The Police Forfeiture Fund accounts for State and Federal revenues for narcotic suppression activities.

The Vehicle Abatement Fund accounts for State and Federal revenues for the abatement of abandoned vehicles.

The Public Mitigation Grant Fund accounts for receipts of funds from various sources, including federal, state, and local grants, and expenditures focused on enhancing public services and infrastructure.

Rental Rehabilitation Fund accounts for financial assistance to pay for mandatory repairs to self-contained units occupied by low-income tenants.

8.1 General Business Page 120
CITY OF TULARE | JUNE 30, 2023
Nonmajor Governmental Funds
Combining Balance Sheet
92 Total Nonmajor
Special Capital Governmental
Revenue Funds Projects Fund Funds
ASSETS
Cash and investments $ 858,956 5,374,432 $ 6,233,388 $
Receivables:

Accounts - 160 160
Interest - 10,334 10,334
Taxes - 291,215 291,215
Intergovernmental - 333,168 333,168
Loans - 2,130,324 2,130,324
Notes - 759,458 759,458
Land held for resale - 35,000 35,000
Total assets $ 858,956 8,934,091 $ 9,793,047 $

LIABILITIES
Accounts payable and accrued liabilities $ - 299,285 $ 299,285 $ Due to other funds - 961,726 961,726
Unearned revenue - other - 610,849 610,849
Total liabilities - 1,871,860 1,871,860

DEFERRED INFLOWS OF RESOURCES
Deferred loans - 2,132,873 2,132,873
Total deferred inflows of resources - 2,132,873 2,132,873

FUND BALANCES (DEFICITS)
Nonspendable 35,000 - 35,000
Restricted 4,933,819 4,933,819 -
Committed 858,956 - 858,956
Unassigned - (39,461) (39,461)
Total fund balances (deficits) 858,956 4,929,358 5,788,314 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 858,956 8,934,091 $ 9,793,047 $

8.1 General Business Page 121
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 93 Total Nonmajor
Special Capital Governmental
Revenue Funds Projects Fund Funds

REVENUES
Taxes $ - 3,181,325 $ 3,181,325 $
Intergovernmental - 3,109,679 3,109,679
Charges for services - 2 2
Fines and forfeitures - 74,779 74,779
Use of money and property - (64,740) (64,740)
Assessments - 1,146,147 1,146,147
Other - 142,965 142,965
Total revenues - 7,590,157 7,590,157

EXPENDITURES
Current:

Public safety - 233,384 233,384
Community development 24,905 2,271,002 2,295,907
Community services - 1,517,242 1,517,242
Total expenditures 24,905 4,021,628 4,046,533
Excess (deficiency) of revenues
over (under) expenditures (24,905) 3,568,529 3,543,624
Other financing sources (uses):

Transfers in 327,810 445,885 773,695
Transfers out - (3,057,795) (3,057,795)
Total other financing sources (uses) 327,810 (2,611,910) (2,284,100) Net change in fund balance 302,905 956,619 1,259,524
Fund balances (deficits) - beginning 556,051 3,972,739 4,528,790 Fund balances (deficits) - ending $ 858,956 4,929,358 $ 5,788,314 $

8.1 General Business Page 122
CITY OF TULARE | JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Balance Sheet
94 Housing Local Law
Senior Encampment Redevelopment Gas Traffic COPS - Enforcement Services Resolution Grant CDBG Tax Safety State Grant Block Grant ASSETS
Cash and investments $ 584,765 445,885 $ - $ 2,389,793 $ 1 $ 164,223 $ - $ Receivables:

Accounts - - - - - - -
Interest 758 - - 6,874 155 213 -
Taxes - - - 291,215 - - -
Intergovernmental - 90,845 214,721 - 14,655 - -
Loans - - 1,032,098 - - - -
Notes - - 759,458 - - - -
Land held for resale - - 35,000 - - - -
Total assets $ 536,730 585,523 $ 2,041,277 $ 2,687,882 $ 14,811 $ 164,436 $ - $

LIABILITIES
Accounts payable and accrued liabilities $ 14,474 $ 171,756 $ 77,455 $ - $ - $ 3,541 $ - Due to other funds 522,253 385,185 - - 14,810 - 30,125
Unearned revenue - other 413,767 - - - - 160,843 -
Total liabilities 585,523 536,727 462,640 - 14,810 164,384 30,125

DEFERRED INFLOWS OF RESOURCES
Deferred Loans - - 1,034,647 - - - -
Total deffered inflows of resources - - 1,034,647 - - - -

FUND BALANCES (DEFICITS)
Nonspendable - - 35,000 - - - -
Restricted - 508,990 - 2,687,882 1 52 -
Unassigned - 3 - - - - (30,125)
Total fund balances (deficits) - 3 543,990 2,687,882 1 52 (30,125) Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 536,730 585,523 $ 2,041,277 $ 2,687,882 $ 14,811 $ 164,436 $ - $

8.1 General Business Page 123
CITY OF TULARE | JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Balance Sheet (Continued)
95 Landscape Auto Public
and OTS Theft Police Vehicle Mitigation Rental
Lighting Grant Deterrance Forfeiture Abatement Grant Rehabilitation Total ASSETS
Cash and investments $ - 1,627,086 $ - $ 46,408 $ 116,104 $ 6 $ 161 $ 5,374,432 $ Receivables:

Accounts - - - - - - 160 160
Interest 14 2,109 - 60 151 - - 10,334
Taxes - - - - - - - 291,215
Intergovernmental - 12,598 - - - - 349 333,168
Loans - - - - - - 1,098,226 2,130,324
Notes - - - - - - - 759,458
Land held for resale - - - - - - - 35,000
Total assets $ 14 1,641,793 $ - $ 46,468 $ 116,255 $ 6 $ 1,098,896 $ 8,934,091 $

LIABILITIES
Accounts payable and accrued liabilities $ - 30,357 $ - $ - $ 1,032 $ - $ 670 $ 299,285 $ Due to other funds 14 - 9,339 - - - - 961,726
Unearned revenue - other - - - 36,239 - - - 610,849
Total liabilities 14 30,357 9,339 36,239 1,032 - 670 1,871,860

DEFERRED INFLOWS OF RESOURCES
Deferred Loans - - - - - - 1,098,226 2,132,873
Total deffered inflows of resources - - - - - - 1,098,226 2,132,873

FUND BALANCES (DEFICITS)
Nonspendable - - - - - - - 35,000
Restricted - 1,611,436 - 10,229 115,223 6 - 4,933,819
Unassigned - - (9,339) - - - - (39,461)
Total fund balances (deficits) - 1,611,436 (9,339) 10,229 115,223 6 - 4,929,358 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 14 1,641,793 $ - $ 46,468 $ 116,255 $ 6 $ 1,098,896 $ 8,934,091 $

8.1 General Business Page 124
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 96 Housing Local Law
Senior Encampment Redevelopment Gas Traffic COPS - Enforcement Services Resolution Grant CDBG Tax Safety State Grant Block Grant

REVENUES
Taxes $ - $ - $ 3,152,441 - $ $ - $ - $ -
Intergovernmental 438,165 1,151,814 1,354,580 - 165,120 - - Charges for services 2 - - - - - -
Fines and forfeitures - - - - 68,919 - -
Use of money and property - 1,028 - (49,149) (1,065) (1,173) - Grants - - - - - - -
Meals - - - - - - -
Assessments - - - - - - -
Other - 37,743 - - - - -
Total revenues 1,152,842 475,910 1,354,580 3,103,292 67,854 163,947 -

EXPENDITURES
Current:

Public safety - - - - 163,946 - 22,359
Community development 1,152,842 - 1,012,203 - - - -
Community services - 724,759 - - - - -
Total expenditures 1,152,842 724,759 1,012,203 - - 163,946 22,359 Excess (deficiency) of revenues
over (under) expenditures - (248,849) 342,377 3,103,292 67,854 1 (22,359) Other financing (uses):

Transfers in 445,885 - - - - - -
Transfers out - - - (2,912,715) (134,343) - -
Total other financing sources - 445,885 - (2,912,715) (134,343) - - Net change in fund balance - 197,036 342,377 190,577 (66,489) 1 (22,359) Fund balances (deficits) - beginning (197,033) 201,613 - 2,497,305 66,490 51 (7,766) Fund balances (deficits) - ending $ - 3 $ 543,990 $ 2,687,882 $ 1 $ 52 $ (30,125) $

8.1 General Business Page 125
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 97 Landscape Auto Public
and OTS Theft Police Vehicle Mitigation Rental
Lighting Grant Deterrance Forfeiture Abatement Grant Rehabilitation Total

REVENUES
Taxes $ - $ - $ - $ - $ 28,884 $ - $ 3,181,325 - $
Intergovernmental - - - - - - 3,109,679 -
Charges for services - - - - - - - 2
Fines and forfeitures - 5,860 - - - - - 74,779
Use of money and property (13,937) (102) - (340) (731) - 729 (64,740) Grants - - - - - - - -
Meals - - - - - - - -
Assessments 1,146,147 - - - - - 1,146,147 -
Other - - - - - - 105,222 142,965
Total revenues 5,758 1,132,210 - (340) 28,153 - 105,951 7,590,157

EXPENDITURES
Current:

Public safety - - - - 47,079 - 233,384 -
Community development - - - - - 105,957 - 2,271,002
Community services 1,630 790,853 - - - - - 1,517,242
Total expenditures 1,630 790,853 - - 47,079 - 105,957 4,021,628 Excess (deficiency) of revenues
over (under) expenditures 4,128 341,357 - (340) (18,926) - (6) 3,568,529 Other financing (uses):

Transfers in - - - - - - - 445,885
Transfers out (10,737) - - - - - - (3,057,795)
Total other financing sources (10,737) - - - - - - (2,611,910) Net change in fund balance (6,609) 341,357 - (340) (18,926) - (6) 956,619 Fund balances (deficits) - beginning 1,270,079 6,609 (9,339) 10,569 134,149 6 3,972,739 6 Fund balances (deficits) - ending $ - 1,611,436 $ (9,339) $ 10,229 $ 115,223 $ 6 $ - $ 4,929,358 $

8.1 General Business Page 126
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Senior Services Fund
98 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 404,570 225,000 $ 438,165 $ 33,595 $ Charges for services - - 2 2
Other 25,000 25,000 37,743 12,743
Total revenues 429,570 250,000 475,910 46,340

EXPENDITURES
Current:

Community services 796,410 611,840 724,759 71,651
Total expenditures 796,410 611,840 724,759 71,651
Excess (deficiency) of revenues
over (under) expenditures (366,840) (361,840) (248,849) 117,991

OTHER FINANCING SOURCES (USES)
Transfers in 338,360 338,360 445,885 (107,525)
Total other financing sources 338,360 338,360 445,885 (107,525) Net change in fund balance $ (28,480) (23,480) $ 197,036 10,466 $ Fund balance (deficit) - beginning (197,033)
Fund balance (deficit) - ending 3 $

8.1 General Business Page 127
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Encampment Resolution Grant Fund
99 Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 1,566,640 - $ 1,151,814 $ (414,826) $ Use of money and property - - 1,028 1,028
Total revenues 1,566,640 - 1,152,842 (413,798)

EXPENDITURES
Current:

Community development 1,566,640 - 1,152,842 413,798
Total expenditures 1,566,640 - 1,152,842 413,798
Excess (deficiency) of revenues
over (under) expenditures - - - -

OTHER FINANCING SOURCES (USES)
Total other financing sources - - - -
Net change in fund balance $ - - $ - - $
Fund balance (deficit) - beginning -
Fund balance (deficit) - ending - $

8.1 General Business Page 128
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Housing Redevelopment CDBG Fund
100
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 787,280 - $ 1,354,580 $ 567,300 $
Total revenues 787,280 - 1,354,580 567,300

EXPENDITURES
Current:

Community development 787,280 - 1,012,203 (224,923)
Total expenditures 787,280 - 1,012,203 (224,923)
Excess (deficiency) of revenues
over (under) expenditures - - 342,377 342,377

OTHER FINANCING SOURCES (USES)
Total other financing sources - - - -
Net change in fund balance $ - - $ 342,377 342,377 $
Fund balance (deficit) - beginning 201,613
Fund balance (deficit) - ending 543,990 $

8.1 General Business Page 129
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Gas Tax Fund
101
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ - - $ 3,152,441 $ 3,152,441 $
Use of money and property - - (49,149) (49,149)
Total revenues - - 3,103,292 3,103,292

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures - - 3,103,292 3,103,292

OTHER FINANCING SOURCES (USES)
Transfers out (2,281,910) (2,281,910) (2,912,715) (630,805) Total other financing sources (2,281,910) (2,281,910) (2,912,715) (630,805) Net change in fund balance $ (2,281,910) (2,281,910) $ 190,577 2,472,487 $ Fund balance (deficit) - beginning 2,497,305
Fund balance (deficit) - ending 2,687,882 $

8.1 General Business Page 130
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Traffic Safety Fund
102
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and forfeitures $ 50,000 50,000 $ 68,919 $ 18,919 $ Use of money and property - - (1,065) (1,065)
Total revenues 50,000 50,000 67,854 17,854

EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures 50,000 50,000 67,854 17,854

OTHER FINANCING SOURCES (USES)
Transfers out (50,000) (50,000) (134,343) (84,343)
Total other financing sources (50,000) (50,000) (134,343) (84,343) Net change in fund balance $ - - $ (66,489) (66,489) $
Fund balance (deficit) - beginning 66,490
Fund balance (deficit) - ending $ 1

8.1 General Business Page 131
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual COPS – State Grant Fund
103
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 157,710 157,710 $ 165,120 $ (7,410) $ Use of money and property - - (1,173) (1,173)
Total revenues 157,710 157,710 163,947 (8,583)

EXPENDITURES
Current:

Public safety 152,600 152,600 163,946 (11,346)
Total expenditures 152,600 152,600 163,946 (11,346)
Excess (deficiency) of revenues
over (under) expenditures 5,110 5,110 1 (19,929)

OTHER FINANCING SOURCES (USES)
Total other financing sources - - - -
Net change in fund balance $ 5,110 5,110 $ 1 (19,929) $ Fund balance (deficit) - beginning 51
Fund balance (deficit) - ending 52 $

8.1 General Business Page 132
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Landscape and Lighting Fund
104
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Use of money and property $ - - $ (13,937) $ (13,937) $ Assessments 900,410 900,410 1,146,147 245,737
Total revenues 900,410 900,410 1,132,210 231,800

EXPENDITURES
Current:

Community services 937,900 879,170 790,853 147,047
Total expenditures 937,900 879,170 790,853 147,047
Excess (deficiency) of revenues
over (under) expenditures (37,490) 21,240 341,357 378,847

OTHER FINANCING SOURCES (USES)
Total other financing sources - - - -
Net change in fund balance $ (37,490) 21,240 $ 341,357 $ 378,847 Fund balance (deficit) - beginning 1,270,079
Fund balance (deficit) - ending 1,611,436 $

8.1 General Business Page 133
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual OTS Grant Fund
105
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Fines and forfeitures $ 10,000 10,000 $ 5,860 $ (4,140) $ Use of money and property - - (102) (102)
Total revenues 10,000 10,000 5,758 (4,242)

EXPENDITURES
Current:

Community services 1,630 1,630 1,630 -
Total expenditures 1,630 1,630 1,630 -
Excess (deficiency) of revenues
over (under) expenditures 8,370 8,370 4,128 (4,242)

OTHER FINANCING SOURCES (USES)
Transfers out (8,370) (8,370) (10,737) (2,367)
Total other financing sources (8,370) (8,370) (10,737) (2,367) Net change in fund balance $ - - $ (6,609) (6,609) $
Fund balance (deficit) - beginning 6,609
Fund balance (deficit) - ending - $

8.1 General Business Page 134
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Vehicle Abatement Fund
106
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes $ 45,220 45,220 $ 28,884 $ (16,336) $
Use of money and property - - (731) (731)
Total revenues 45,220 45,220 28,153 (17,067)

EXPENDITURES
Current:

Public safety 45,220 45,220 47,079 (1,859)
Total expenditures 45,220 45,220 47,079 (1,859)
Excess (deficiency) of revenues
over (under) expenditures - - (18,926) (18,926)

OTHER FINANCING SOURCES (USES)
Total other financing sources - - - -
Net change in fund balance $ - - $ (18,926) (18,926) $
Fund balance (deficit) - beginning 134,149
Fund balance (deficit) - ending 115,223 $

8.1 General Business Page 135
107

CAPITAL PROJECTS FUND
The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds.

The Technology Construction in Progress (CIP) Fund accounts for the capital projects expenditures related to technology.

8.1 General Business Page 136
CITY OF TULARE | JUNE 30, 2023
Nonmajor Capital Projects Fund
Balance Sheet
108
Technology
CIP
ASSETS
Current assets:

Cash and investments $ 858,956
Total assets $ 858,956

LIABILITIES
Liabilities:

Accounts payable and accrued liabilities $ -
Total liabilities -

FUND BALANCE (DEFICIT)
Committed 858,956
Total fund balance (deficit) 858,956
Total liabilities and fund balance 858,956 $

8.1 General Business Page 137
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance 109
Technology
CIP

REVENUES
Other $ -
Total revenues -

EXPENDITURES
Current:

Community development 24,905
Total expenditures 24,905
Excess (deficiency) of revenues
over (under) expenditures (24,905)
Other financing sources:

Transfers in 327,810
Transfers out -
Total other financing sources 327,810
Net change in fund balance 302,905
Fund balance (deficis) - beginning, restated 556,051
Fund balance (deficit) - ending $ 858,956

8.1 General Business Page 138
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 110
Technology CIP
Variance with
Budget Actual Final Budget

REVENUES
Total revenues $ - - $ - $

EXPENDITURES
Current:

Community development 24,905 70,000 45,095
Total expenditures 24,905 70,000 45,095
Excess (deficiency) of revenues
over (under) expenditures (70,000) (24,905) (45,095)
Other financing sources:

Transfers in 327,810 327,810 -
Transfers out - - -
Total other financing sources 327,810 327,810 -
Net change in fund balance $ 302,905 257,810 (45,095) $ Net position (deficit) - beginning 556,051
Net position (deficit) - ending $ 858,956

8.1 General Business Page 139
111

INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department of the City to another on a cost-reimbursement basis.

The Fleet Maintenance Fund accounts for the costs of maintaining and replacing City vehicles and equipment. Costs are funded by charges to using departments based upon actual usage and rental rates.

The Employee Welfare Fund accounts for the cost of the City's health insurance program. Costs are funded by charges to departments based upon the number of employees and by employee contributions for department coverage.

The Workers' Compensation Fund accounts for the cost of the City's self-insured workers' compensation program. Costs are funded by charges to departments based upon standard workers' compensation rates.

The General Insurance Fund accounts for the cost of the City's self-insured liability and fire insurance program. Costs are funded by charges to departments based upon a combination of number of employees and square footage of buildings factors.

The Unemployment Insurance Fund accounts for the cost of unemployment claims paid and is funded by the General Fund.

The Purchasing Fund accounts for the cost of purchases of inventory items and the department charges for issuance of those items.

The Surface Water Management Fund accounts for the cost of flood control, water recharge, capacity enhancement, and pollution control. Costs are funded by the General Fund, Water Fund, and Sewer Fund contributions.

8.1 General Business Page 140
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds Combining Statement of Net Position 112
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total ASSETSCurrent assets:

Cash and investments $ 6,176,133 8,026,561 $ 8,789,609 $ - $ 26,891 $ - $ 4,553,780 $ 27,572,974 $ Cash and investments with fiscal agent 1,377 - - 44,525 - - - 45,902 Receivables:

Accounts 20,966 78,333 - - - 75,734 - 175,033
Interest 8,005 10,192 11,394 - - - 5,903 35,494
Intergovernmental - 6,110 - - - 4,127 - 10,237
Inventory - - - - - 817,743 - 817,743
Total current assets 6,206,481 8,121,196 8,801,003 44,525 26,891 897,604 4,559,683 28,657,383 Noncurrent assets:

Capital assets:

Nondepreciable:

Land - 75,000 - - - - - 75,000
Depreciable:

Buildings - 6,187,770 - - - - - 6,187,770
Improvements other than buildings - 1,682,749 - - - - - 1,682,749 Machinery and equipment - 28,179,805 - - - 13,419 9,821 28,203,045 Accumulated depreciation and amortization - (22,923,271) - - - (13,419) (5,261) (22,941,951) Total noncurrent assets - 13,202,053 - - - - 4,560 13,206,613 Total assets 6,206,481 21,323,249 8,801,003 44,525 26,891 897,604 4,564,243 41,863,996

DEFERRED OUTFLOWS OF RESOURCES
Pensions 29,844 495,666 50,605 42,819 - - 71,365 690,299 Other post-employment benefits (OPEB) 587 13,109 929 734 - - 1,369 16,728 Total deferred outflows of resources 30,431 508,775 51,534 43,553 - - 72,734 707,027 LIABILITIESCurrent liabilities:

Accounts payable and accrued liabilities 268,785 426,883 2,485 2,469 13,369 119,351 18,440 851,782 Due to other funds 11,419 - - 2,190,458 13,522 361,831 - 2,577,230 Compensated absences - current 224 3,214 440 440 - - - 4,318 Unearned revenue - other 253,156 - - - - - - 253,156
Total current liabilities 533,584 430,097 2,925 2,193,367 26,891 481,182 18,440 3,686,486 Noncurrent liabilities:

Compensated absences payable 2,419 34,771 4,762 4,762 - - - 46,714 Insurance claims payable - - 1,444,875 - - - - 1,444,875 Net OPEB liability 2,929 65,392 4,636 3,660 - - 6,831 83,448 Net pension liability 96,980 1,610,710 164,444 139,145 - - 231,899 2,243,178 Total noncurrent liabilities 1,710,873 102,328 1,618,717 147,567 - 238,730 - 3,818,215 Total liabilities 635,912 2,140,970 1,621,642 2,340,934 26,891 481,182 257,170 7,504,701

DEFERRED INFLOWS OF RESOURCES
Pensions 2,959 48,949 4,966 4,231 - - 6,908 68,013
Other post-employment benefits (OPEB) 1,602 35,773 2,536 2,002 - - 3,737 45,650 Total deferred inflows of resources 4,561 84,722 7,502 6,233 - - 10,645 113,663 NET POSITION (DEFICIT)Net investments in capital assets - 13,202,053 - - - - 4,560 13,206,613 Unrestricted 5,596,439 6,404,279 7,223,393 (2,259,089) - 416,422 4,364,602 21,746,046 Total net position (deficit) $ 5,596,439 19,606,332 $ 7,223,393 $ (2,259,089) $ - $ 416,422 $ 4,369,162 $ 34,952,659 $

8.1 General Business Page 141
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position 113
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total Operating revenues:

Departmental charges $ 3,563,035 4,216,007 $ 4,259,982 $ 1,744,091 $ - $ 2,218,192 $ - $ 16,001,307 $ Employee contributions 1,443,563 - - - - - - 1,443,563
Total operating revenues 5,006,598 4,216,007 4,259,982 1,744,091 - 2,218,192 - 17,444,870 Operating expenses:

General administration 68,118 236 5,018 26,492 1,290 - 270,042 371,196 Personnel services 54,949 585,394 83,408 66,076 - - 176,723 966,550 Contractual services - 429,704 - - - - - 429,704
Equipment usage and operation - 324,569 - - - 2,126,292 - 2,450,861 Insurance 4,914,953 367,174 2,229,841 2,622,516 17,385 - - 10,151,869 Depreciation and amortization - 1,828,544 - - - - 1,403 1,829,947 Total operating expenses 5,038,020 3,535,621 2,318,267 2,715,084 18,675 2,126,292 448,168 16,200,127 Operating income (loss) (31,422) 680,386 1,941,715 (970,993) (18,675) 91,900 (448,168) 1,244,743 Nonoperating revenues (expenses):

Use of money and property (46,956) (50,730) (73,908) - - - (30,518) (202,112) Other income (expense) - miscellaneous 3,300 67,983 - - - - - 71,283 Gain (loss) on sale of assets - 262,880 - - - - - 262,880 Total nonoperating revenues (expenses) (43,656) 280,133 (73,908) - - - (30,518) 132,051 Income (loss) before transfers (75,078) 960,519 1,867,807 (970,993) (18,675) 91,900 (478,686) 1,376,794 Transfers in - - - - 26,891 - 1,425,800 1,452,691
Transfers out - - - - - - (1,000,000) (1,000,000)
Change in net position (deficit) (75,078) 960,519 1,867,807 (970,993) 8,216 91,900 (52,886) 1,829,485 Net position (deficit) - beginning 5,671,517 18,645,813 5,355,586 (1,288,096) (8,216) 324,522 4,422,048 33,123,174 Net position (deficit) - ending $ 5,596,439 19,606,332 $ 7,223,393 $ (2,259,089) $ - $ 416,422 $ 4,369,162 $ 34,952,659 $

8.1 General Business Page 142
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds Combining Statement of Cash Flows 114
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund services provided $ 5,167,547 4,138,573 $ 4,262,288 $ 1,744,091 $ - $ 2,218,192 $ - $ 17,530,691 $ Cash payments to employees (184,146) (687,578) (84,901) (75,569) - - (150,435) (1,182,629)Cash payments to suppliers 161,065 (163,667) (6,953) (28,552) 8,618 (445,332) (264,202) (739,023)Cash payments for reported claims (4,914,953) (691,743) (2,229,841) (2,622,516) (17,385) (2,126,292) - (12,602,730) Net cash provided by (used for) operating activities 229,513 2,595,585 1,940,593 (982,546) (8,767) (353,432) (414,637) 3,006,309

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash payments to (from) other funds (short-term borrowings) 11,419 (137,849) - 982,546 8,767 213,181 - 1,078,064Cash received from transfers from other funds - - - - 26,891 - 1,425,800 1,452,691Cash payments for transfers to other funds - - - - - - (1,000,000) (1,000,000)Cash received from other revenue 3,300 67,983 - - - - - 71,283 Net cash provided by (used for) noncapital and related financing activities 14,719 (69,866) - 982,546 35,658 213,181 425,800 1,602,038

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital grants - 13,597 - - - 140,251 - 153,848 Cash payments for the acquisition of capital assets - (2,152,024) - - - - - (2,152,024) Cash received from the sale of capital assets - 262,880 - - - - - 262,880 Net cash provided by (used for) capital and related financing activities - (1,875,547) - - - 140,251 - (1,735,296)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (54,961) (60,922) (85,302) - - - (34,899) (236,084) Net cash provided by (used for) investing activities (54,961) (60,922) (85,302) - - - (34,899) (236,084)Net increase (decrease) in cash and cash equivalents 189,271 589,250 1,855,291 - 26,891 - (23,736) 2,636,967Cash and cash equivalents - beginning 5,988,239 7,437,311 6,934,318 44,525 - - 4,577,516 24,981,909 Cash and cash equivalents - ending $ 6,177,510 8,026,561 $ 8,789,609 $ 44,525 $ 26,891 $ - $ 4,553,780 $ 27,618,876 $

8.1 General Business Page 143
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds Combining Statement of Cash Flows (Continued) 115
Fleet Employee Workers' General Unemployment Surface Water Maintenance Welfare Compensation Insurance Insurance Purchasing Management Total Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) 680,386 $ (31,422) $ 1,941,715 $ (970,993) $ (18,675) $ 91,900 $ (448,168) $ 1,244,743 $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 1,828,544 - - - - - 1,403 1,829,947 Changes in assets and liabilities:
(Increase) decrease in consumer receivables (77,434) 160,949 2,306 - - - - 85,821 (Increase) decrease in pension related deferred outflows (299,487) (17,500) (32,019) (25,768) - (321,344) (49,195) (745,313) of resources(Increase) decrease in prepaid 1,548 69 110 86 - - 162 1,975 Increase (decrease) accounts payable 266,273 229,183 (1,935) (2,060) 9,908 - 5,840 507,209 Increase (decrease) unearned revenue - (119,249) - - - (123,988) - (243,237) Increase (decrease) in compensated absences (4,494) (694) (528) (528) - - - (6,244) Increase (decrease) in net pension liability 588,882 32,969 67,811 50,868 - - 117,534 858,064 Increase (decrease) in pension related deferred inflows of resources (388,633) (24,792) (36,867) (34,151) - - (42,213) (526,656) Net cash provided by (used for) operating activities $ 229,513 2,595,585 $ 1,940,593 $ (982,546) $ (8,767) $ (353,432) $ (414,637) $ 3,006,309 $ Reconciliation of cash and cash equivalents per statement of cash flows to the statement of net position:

Cash and investments 8,026,561 $ 6,176,133 $ 8,789,609 $ - $ 26,891 $ - $ 4,553,780 $ 27,572,974 $ Cash and investments with fiscal agents - 1,377 - 44,525 - - - 45,902 Cash and cash equivalents per statement of cash flows $ 6,177,510 8,026,561 $ 8,789,609 $ 44,525 $ 26,891 $ - $ 4,553,780 $ 27,618,876 $

8.1 General Business Page 144
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Expenditures by Department
Budgetary Level of Control – Budget and Actual (GAAP Basis) General Fund
116
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

EXPENDITURES
General government:

City council $ 138,770 126,270 $ 102,008 $ 36,762 $
City manager 704,880 704,880 656,357 48,523
Finance 1,658,980 1,658,980 1,635,190 23,790
Economic development 228,000 228,000 267,815 (39,815)
CIP administrative 1,774,460 1,730,460 2,774,951 (1,000,491) IT division 739,904 757,630 624,849 115,055
Personnel 574,830 574,830 640,417 (65,587)
Non-departmental 1,196,740 1,021,740 941,098 255,642
Animal control 1,176,889 1,173,790 1,102,731 74,158
Total general government 8,193,453 7,976,580 8,745,416 (551,963) Public safety:

Police 15,886,329 15,870,350 16,031,822 (145,493)
Fire code enforcement 8,391,250 8,269,750 8,345,324 45,926 Total public safety 24,277,579 24,140,100 24,377,146 (99,567) Public works:

Streets 2,963,000 2,970,000 2,525,791 444,209
Storm drains 56,490 56,490 575,753 (519,263)
Total public works 3,026,490 3,019,490 3,101,544 (75,054) Community development:

Parking and business improvement 88,000 88,000 88,095 (95) Downtown parking 117,530 117,530 102,778 14,752
Dangerous building abatement 31,460 31,460 26,754 4,706 Total community development 236,990 236,990 217,627 19,363 Community services:

Parks 3,366,310 3,269,310 3,407,585 (41,275)
Community services 3,635,120 3,378,120 3,583,552 51,568 Total community services 7,001,430 6,647,430 6,991,137 10,293 Library and cultural 1,656,120 1,656,120 1,556,303 99,817 Capital outlay 19,744,530 22,285,436 7,307,938 14,977,498 Debt service:

Principal 54,320 54,320 38,740 15,580
Interest and fiscal charges - - 3,025 (3,025)
Total debt service 54,320 54,320 41,765 12,555
Transfers out 5,451,590 5,371,590 4,456,113 995,477
Total General Fund expenditures $ 72,183,408 68,847,150 $ 56,794,989 $ 15,388,419 $

8.1 General Business Page 145
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Expenditures – Budget and Actual
Measure I Sales Tax Revenues and Related Expenditures
117
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Measure I sales tax $ 8,486,000 8,486,000 $ 8,342,072 $ (143,928) $

EXPENDITURES
Measure I - police 5,256,780 5,256,780 5,834,001 (577,221) Measure I - fire 2,160,810 2,160,810 1,948,258 212,552
Measure I - code enforcement 132,020 132,020 136,952 (4,932) Measure I - streets 200,000 200,000 - 200,000
Total expenditures 7,749,610 7,749,610 7,919,211 (169,601) Excess (deficiency) of revenues
over (under) expenditures $ 736,390 736,390 $ 422,861 $ (313,529) $ Note: Amounts reported here are included in the City's general fund.

8.1 General Business Page 146
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Long-Term Debt Recorded in Private Purpose Trust Fund
118
On February 16, 2017, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A (Tax-Exempt). Series A bonds totaling $7,915,000 are payable in amounts ranging from $13,400 to $752,900 semiannually on August 1 and February 1 commencing August 1, 2017, through August 1, 2040, and bear interest at rates from 2.00% to 5.00%. The transaction resulted in a reduction of $2,218,010 in future debt service payments. The economic gain was $646,754. At June 30, 2023, the outstanding balance, including the related unamortized bond premium and discount was: $ 7,737,021 On February 16, 2017, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series B (Tax-Exempt). Series A bonds totaling $14,015,000 are payable in amounts ranging from $14,130 to $1,268,902 semiannually on August 1 and February 1 commencing August 1, 2017, through August 1, 2040, and bear interest at rates from 2.00% to 4.71%. The transaction resulted in a reduction of $6,397,531 in future debt service payments. The economic gain was $1,292,184. At June 30, 2023, the outstanding balance, including the related unamortized bond premium and discount, was: $ 8,025,000 On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series A (Tax-Exempt). Series A bonds totaling $8,605,000 were payable in amounts ranging from $45,562 to $955,156 semiannually on August 1 and February 1, commencing August 1, 2010, through August 1, 2040, and bore interest at rates from 6.00% to 6.25%. Term Bonds of $2,245,000 were due August 1, 2030, at interest rate 6.00%. Term Bonds of $2,470,000 were due August 1, 2035, at interest rate 6.125%. Term Bonds of $3,890,000 were due August 1, 2040, at interest rate 6.25%. The former Redevelopment Agency paid off the remaining balance by issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (TaxExempt).

On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series B (Taxable). Series B bonds totaling $4,915,000 were payable in amounts ranging from $29,622 to $640,035 semiannually on August 1, 2023, and bore interest at rates from 4.125% to 7.70%.

Term Bonds of $350,000 were due August 1, 2023, at interest rate 4.125%. Term Bonds of $365,000 were due August 1, 2014, at interest rate 4.50%. Term Bonds of $380,000 were due August 1, 2015, at interest rate 5.00%. Term Bonds of $3,820,000 were due August 1, 2023, at interest rate 7.70%. The former Redevelopment Agency paid off the remaining balance by issuing Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (Tax-Exempt).

On June 30, 2010, the former Redevelopment Agency participated in issuing its Merged Tulare Redevelopment Projects Serial Tax Allocation Bonds Series C (Taxable). Series C bonds totaling $9,830,000 were payable in amounts ranging from $68,853 to $734,963 semiannually on August 1 and February 1, commencing August 1, 2010, through August 1, 2040, and bore interest at rates from 5.25% to 8.50%. Term Bonds of $445,000 were due August 1, 2015, at interest rate 5.25%. Term Bonds of $1,390,000 were due August 1, 2020, at interest rate 7.50%. Term Bonds of $3,040,000 were due August 1, 2030, at interest rate 8.25%. Term Bonds of $4,955,000 were due August 1, 2040, at interest rate 8.50%. The former Redevelopment Agency paid off the remaining balance by issuing its Merged Tulare Redevelopment Serial Tax Allocation Bonds Series A and B (Tax-Exempt).

8.1 General Business Page 147
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Long-Term Debt Recorded in Private Purpose Trust Fund
(Continued)
119
The City advanced funds to the former Redevelopment Agency for operations. These advances date back since inception, and were payable upon demand, with interest accruing at 8% per annum on the unpaid balance. As of June 30, 2009, the remaining balance was approximately $66 million. On June 29, 2010, the former Redevelopment Agency and the City reached an amended repayment agreement. The City forgave $44,258,915 to reduce the outstanding principal balance to the City to $22,052,848. In addition, the former Redevelopment Agency repaid $6,000,000 and reduced the balance to the amount of $3,302,059 as of June 30, 2011. The former Redevelopment Agency would make annual payments to the City with the annual interest rate at 3%. Beginning in fiscal year 2010-11, the former Redevelopment Agency was required to make annual payments of interest only to the City. This agreement was to continue through fiscal year 2024-25 and commencing in fiscal year 2025-26, payments of principal and interest were to be due until all amounts due were paid in full. However, in 2013, after the dissolution of the former Redevelopment Agency and when the State took control, the State Controller's Office issued a written finding in regards to an accelerated loan payment made by the City in December 3011, after the effective AB 1X 26 and ordered the City to return $1,634,962 in property taxes to the Successor Agency which increased the advance to $4,937,021. Included in the $15,991,111 ending balance as of June 30, 2023, is also $465,736 in property to be sold to the County Superintendent of Schools. At June 30, 2023, the outstanding balance was: $ 15,373,470 The annual requirements to amortize debt payable are as follows in the Private-Purpose Trust Fund:

Year Ending
June 30
Allocation Bonds
Series A
Allocation Bonds
Series B
From the
Primary Govt.
2024 613,200 $ 1,123,716 $ 15,373,470 $
2025 889,900 903,847 -
2026 434,500 562,888 -
2027 442,600 567,393 -
2028 458,875 571,033 -
2029-2033 2,627,000 2,905,669 -
2034-2038 3,276,300 3,035,196 -
2039-2041 2,168,500 1,859,933 -
11,529,675 10,910,875 15,373,470
Less Interest (3,270,875) (3,504,675) -
Plus Unamortized Premium 97,021 - -
Total 7,737,021 $ 8,025,000 $ 15,373,470 $
Fiduciary Fund - Private Purpose Trust Fund

8.1 General Business Page 148
120

STATISTICAL SECTION

8.1 General Business Page 149
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Net Position by Component Last Ten Fiscal Years
121
2014 2015 2016 2017 2018 2019 2020 2021 (Restated) 2022 2023 Governmental Activities:

Net Investment in Capital Assets $ 177,172,689 $ 207,289,716 $ 211,461,105 $ 211,265,222 $ 208,315,732 $ 217,579,213 $ 233,031,562 $ 98,357,048 $ 99,554,621 $ 139,655,205 Restricted 1,283,898 1,164,494 1,198,432 1,168,992 4,006,738 4,109,899 1,753,750 1,750,803 1,186,861 - Unrestricted 47,137,211 11,560,174 44,306,438 47,705,937 50,782,588 46,588,528 29,301,183 32,038,570 43,183,619 84,251,295 Total Business-Type ActivitiesNet Position $ 225,593,798 $ 220,014,384 $ 256,965,975 $ 260,140,151 $ 263,105,058 $ 268,277,640 $ 264,086,495 $ 132,146,421 $ 143,925,101 $ 223,906,500 Business-Type Activities:

Net Investment in Capital Assets $ 85,354,787 $ 86,153,865 $ 80,626,706 $ 79,725,820 $ 66,846,189 $ 90,621,714 $ 88,766,270 $ 104,023,400 $ 112,236,168 $ 122,335,466 Restricted 12,828,344 8,572,997 8,572,997 7,675,730 13,006,601 13,006,601 - - - - Unrestricted (7,120,889) (6,566,796) 4,481,990 11,706,869 24,722,430 20,856,181 70,265,299 77,388,968 84,144,129 87,694,544 Total Business-Type ActivitiesNet Position $ 91,062,242 $ 88,160,066 $ 93,681,693 $ 99,108,419 $ 104,575,220 $ 124,484,496 $ 159,031,569 $ 181,412,368 $ 196,380,297 $ 210,030,010 Primary Government:

Net Investment in Capital Assets $ 262,527,476 $ 293,443,581 $ 292,087,811 $ 290,991,042 $ 275,161,921 $ 308,200,927 $ 321,797,832 $ 202,380,448 $ 211,790,789 $ 261,990,671 Restricted 14,112,242 9,737,491 9,771,429 8,844,722 17,013,339 17,116,500 1,753,750 1,750,803 1,186,861 - Unrestricted 40,016,322 4,993,378 48,788,428 59,412,806 75,505,018 67,444,709 99,566,482 109,427,538 127,327,748 171,945,839 Total Primary GovernmentNet Position $ 316,656,040 $ 308,174,450 $ 350,647,668 $ 359,248,570 $ 367,680,278 $ 392,762,136 $ 423,118,064 $ 313,558,789 $ 340,305,398 $ 433,936,510 Source: Annual Comprehensive Financial ReportSource: Statement of Net Position

8.1 General Business Page 150
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Changes in Net Position Last Ten Fiscal Years
122
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General Government 4,862,056 $ 5,972,924 $ 4,975,254 $ 2,475,077 $ 5,805,716 $ 4,703,423 $ 5,829,647 $ 6,365,027 $ 6,713,368 $ 15,851,263 $ Intergovernmental 148,790 2,001 2,400 - - - - - - 10,575 Public Safety 19,915,983 20,543,299 18,978,334 22,434,933 27,123,518 27,945,951 30,094,565 31,438,950 22,486,173 31,723,979 Public Works 2,287,781 2,987,540 10,078,440 2,275,960 2,452,434 2,425,727 2,672,177 2,687,512 3,831,706 3,046,291 Community Development 5,968,778 4,217,078 10,236,915 5,682,852 8,126,574 5,905,476 2,847,502 10,585,221 12,010,940 2,920,799 Community Services 4,981,447 5,106,177 5,749,780 5,927,569 6,834,186 6,510,435 6,687,290 6,484,755 7,658,997 8,483,177 Library and Cultural 4,438,440 3,210,010 5,952,134 3,128,200 3,083,550 2,956,417 1,885,453 3,918,457 4,379,160 1,756,273 Interest on Long-Term Debt 1,548,628 1,555,034 1,488,132 1,450,221 598,884 1,088,411 1,472,373 1,311,580 914,972 878,845 Total Governmental Activities Expenses 44,151,903 43,594,063 57,461,389 43,374,812 54,024,862 51,535,840 51,489,007 62,791,502 57,995,316 64,671,202 Business-Type Activities:

Aviation 351,636 251,520 410,647 303,045 421,384 360,020 378,379 408,388 392,742 457,662 Transit 2,948,977 3,111,671 3,123,964 3,526,009 3,664,540 3,935,325 3,970,662 4,087,217 2,505,212 573,472 Community and Development 2,203,021 1,956,087 1,573,507 2,275,967 3,329,780 3,266,224 2,508,214 2,829,135 2,987,161 3,821,392 Water 6,497,620 5,926,633 6,784,595 8,148,054 8,587,085 9,126,304 10,630,882 10,492,761 10,846,789 11,405,944 Solid Waste 6,346,567 6,685,681 7,283,313 7,355,336 8,288,359 9,021,964 9,382,570 10,035,760 9,637,100 11,510,574 Sewer 27,656,817 25,267,201 29,281,564 30,471,856 28,290,003 28,648,005 28,308,670 25,308,216 24,689,685 24,933,539 Total Business-Type Activities Expenses 46,004,638 43,198,793 48,457,590 52,080,267 52,581,151 54,357,842 55,179,377 53,161,477 51,058,689 52,702,583 Total Primary Government Expenses 90,156,541 86,792,856 105,918,979 95,455,079 106,606,013 105,893,682 106,668,384 115,952,979 109,054,005 117,373,785 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 274,788 463,179 455,588 264,526 670,136 820,542 1,105,565 614,639 856,211 7,347,522 Intergovernmental 103,241 321,569 220 - 56,396 2,428 191 724 1,118 - Public Safety 1,330,307 1,775,665 1,737,861 2,397,756 3,302,341 4,953,595 5,708,283 3,039,476 2,871,591 1,041,334 Public Works 129,298 231,673 922,891 243,245 298,589 429,975 506,854 259,825 489,327 74,991 Community Development 1,161,062 1,114,835 937,402 607,361 989,426 1,046,783 540,067 1,023,365 1,533,854 1,211,150 Community Services 281,516 395,966 526,512 633,515 832,075 1,154,015 1,268,433 626,938 978,090 2,001,805 Library and Cultural 250,847 248,925 545,042 334,330 375,428 524,044 357,629 378,831 559,239 363,583 Operating Grants and Contributions 1033917 1,240,627 1,782,930 959,415 3,189,647 1,155,276 3,328,130 2,252,847 4,016,675 4,472,609 Capital Grants and Contributions 8,919,700 12,424,332 7,918,523 - - - - - - 7,031,876 Total Governmental Activities Program Revenues 13,484,676 18,216,771 14,826,969 5,440,148 9,714,038 10,086,658 12,815,152 8,196,645 11,306,105 23,544,870 Business-Type Activities:

Charges for Services:

Aviation 115,405 118,564 121,172 121,108 125,042 112,361 111,510 112,193 103,975 112,088 Transit 2,370,665 2,338,653 1,615,709 1,684,809 1,546,582 1,739,886 1,840,650 113,645 (400) 44,971 Community and Development 1,370,618 1,924,910 1,963,243 2,173,788 2,257,858 2,148,526 2,222,616 2,445,132 2,992,396 3,185,514 Water 6,635,639 8,112,880 8,014,181 10,611,372 12,295,297 14,770,030 14,150,290 15,188,361 14,865,402 14,175,049 Solid Waste 8,206,431 8,315,243 8,723,653 8,700,096 8,990,099 9,606,652 10,381,634 10,876,931 11,541,701 12,260,531 Sewer 26,207,894 27,054,457 29,436,905 30,349,080 32,200,444 33,864,373 35,442,110 37,434,359 37,535,687 35,188,578 Operating Grants and Contributions 2,031,384 1,157,482 837,623 3,721,134 1,697,847 2,636,741 5,119,938 3,996,986 520,616 147,199 Capital Grants and Contributions 2,221,961 - - - - - - - 942,334 - Total Business-Type Activities Program Revenues 46,938,036 51,244,150 50,712,486 57,361,387 59,113,169 64,878,569 69,268,748 70,167,607 67,559,377 66,056,264 Total Primary Government Program Revenues 60,422,712 69,460,921 65,539,455 62,801,535 68,827,207 74,965,227 82,083,900 78,364,252 78,865,482 89,601,134 Net Revenues (Expenses):

Governmental Activities (30,667,227) (25,377,292) (42,634,420) (37,934,664) (44,310,824) (41,449,182) (38,673,855) (54,594,857) (46,689,211) (41,126,332) Business-Type Activities 933,398 8,045,357 2,254,896 5,281,120 6,532,018 10,520,727 14,089,371 17,006,130 16,500,688 13,353,681 Total Net Revenues (Expenses) $ (29,733,829) $ (17,331,935) $ (40,379,524) $ (32,653,544) $ (37,778,806) $ (30,928,455) $ (24,584,484) $ (37,588,727) $ (30,188,523) $ (27,772,651) Source: Annual Comprehensive Financial ReportSource: Statement of Net Position

8.1 General Business Page 151
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Changes in Net Position Last Ten Fiscal Years (Continued) 123
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Revenue and Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales Tax/Gas Tax/Measure R Taxes 23,393,201 $ 31,070,736 $ 26,818,588 $ 18,074,636 $ 19,519,868 $ 20,118,217 $ 21,619,073 $ 24,252,291 $ 28,854,256 $ 24,282,444 $ Property Tax 4,705,679 4,688,189 4,780,267 5,181,172 5,553,078 5,884,742 6,194,371 6,664,504 6,914,707 7,378,064 Utility Tax 5,592,318 5,869,634 5,622,124 5,568,461 5,961,321 5,882,716 5,737,809 6,272,932 6,597,024 9,541,261 Motel/Hotel and Franchise Tax 2,101,367 22,157,176 2,219,734 2,326,641 2,465,042 2,594,469 2,544,058 2,708,877 3,178,939 6,920,240 Motor-Vehicle-in-Lieu Tax 7,270,764 (Intergovernmental, Unrestricted) 4,326,227 4,629,563 4,882,755 5,107,399 5,349,628 5,572,329 5,895,136 6,186,789 6,523,262 1,584,502 Other Taxes 660,950 695,971 726,940 740,839 799,940 788,765 842,249 873,710 948,057 154,677 Investment Income (Losses) - Unrestricted 736,701 567,673 711,185 140,642 454,925 3,155,785 1,850,871 (6,098) (3,824,988) 3,176,975 Miscellaneous Revenues 1,708,873 8,499,838 28,876,448 4,213,419 4,585,416 5,444,536 4,446,620 8,455,405 9,111,514 293,000 Grants and Contributions Not Restricted to (563,004) Specific Programs - - - - - - - - 1,478,957 - Transfers (728,438) (746,270) (1,328,598) 570,630 4,334,254 (2,306,639) (14,647,477) 653,093 224,157 270,273 Total Governmental Activities 42,496,878 77,432,510 73,309,443 41,923,839 49,023,472 47,134,920 34,482,710 56,061,503 58,526,928 61,788,153 Business-Type Activities:

Investment Income (Loss) 692,776 636,054 588,133 820,923 1,444,614 2,600,791 1,846,765 (172,985) (4,361,145) (400,461) Gain (Loss) on Sale of Capital Assets - - (71,322) - - - (173,046) - - - Miscellaneous - - - - 4,481,519 - 3,963,460 6,386,130 2,958,688 648,333 Transfers 728,438 746,270 2,678,598 (570,630) (662,772) 2,306,239 14,647,477 (665,430) (347,685) (270,273) Total Business-Type Activities 1,421,214 1,382,324 3,266,731 178,971 781,842 9,388,549 20,457,702 5,374,669 (1,750,142) (22,401) Total Primary Government 43,918,092 78,814,834 76,576,174 42,102,810 49,805,314 56,523,469 54,940,412 61,436,172 56,776,786 61,765,752 Special Items:

Extraordinary Loss on Dissolution of Redevelopment Agency - - - - - - - - - - Other - - - - - (513,556) - (138,047) - -
Extraordinary Gain (Loss) on Dissolution of Lawsuit Settlement - - 6,276,568 - - - - - (59,037) - Total Special Items - - 6,276,568 - - (513,556) - (138,047) (59,037) - Changes in Net Position:

Governmental Activities 11,829,651 32,113,218 36,951,591 3,989,175 4,712,648 5,172,182 (4,191,145) 1,328,599 11,778,680 20,661,821 Business-Type Activities 2,354,612 9,427,681 5,521,627 5,460,091 7,313,860 19,909,276 34,547,073 22,380,799 14,750,546 13,331,280 Total Primary Government $ 14,184,263 $ 41,540,899 $ 42,473,218 $ 9,449,266 $ 12,026,508 $ 25,081,458 $ 30,355,928 $ 23,709,398 $ 26,529,226 $ 33,993,101 Source: Annual Comprehensive Financial ReportSource: Statement of Net Position

8.1 General Business Page 152
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Fund Balances of Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years
124
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund:

Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ 10,001,471 - $ Restricted 29,077 1,431,320 5,268,406 3,210,570 8,255,722 - - - - - Committed 22,004,228 21,840,982 46,394,799 47,275,064 47,558,487 53,360,296 36,993,740 42,493,097 44,165,268 6,485,536Unassigned - - - - - - - - 47,338,311 - Total General Fund $ 22,033,305 $ 23,272,302 $ 51,663,205 $ 50,485,634 $ 55,814,209 $ 53,360,296 $ 36,993,740 $ 42,493,097 $ 44,165,268 $ 63,825,318 All Other Governmental Funds:

Nonspendable $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ - $ - $ 35,000 $ 35,000 $ 35,000 $ 35,000 Restricted 12,594,663 11,034,408 9,989,692 9,544,309 14,276,293 14,081,580 12,569,286 10,517,062 10,725,774 41,650,527 Committed 722,545 744,557 461,054 312,130 281,719 424,962 342,738 253,813 556,051 (5,626,580) Assigned - 22,951 - - - - - - - -
Unassigned (1,082) (624,325) - - - - - (570,733) - (396,056) Total All Other Governmental Funds $ 13,351,126 $ 11,212,591 $ 10,485,746 $ 9,891,439 $ 14,558,012 $ 14,506,542 $ 12,947,024 $ 10,805,875 $ 10,746,092 $ 35,662,891 Source: Annual Comprehensive Financial ReportSource: Balance Sheet - Governmental Funds

8.1 General Business Page 153
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Assessed Value of Estimated Actual Value of Taxable Property Last Ten Fiscal Years
125
Fiscal Year Secured Utility Unsecured
Taxable Assessed
Value (1)
Total Direct
Tax Rate (2)
2014 3,344,992,202 $ 2,859,722 $ 136,958,939 $ 3,484,810,863 $ 0.14% 2015 3,593,640,822 2,859,722 134,753,531 3,731,254,075 0.14% 2016 3,789,718,353 2,859,722 143,801,821 3,936,379,896 0.14% 2017 3,962,134,430 2,589,722 151,219,467 4,115,943,619 0.14% 2018 4,096,151,430 3,323,768 208,318,421 4,307,793,619 0.14% 2019 4,275,737,413 3,323,768 209,716,581 4,488,777,762 0.14% 2020 4,517,255,501 3,323,768 214,038,086 4,734,617,355 0.14% 2021 4,758,154,693 3,323,768 214,030,845 4,975,509,306 0.14% 2022 4,959,482,006 3,484,168 229,920,063 5,192,886,237 0.14% 2023 5,273,050,799 3,484,168 249,864,366 5,526,399,333 0.14% (1) Assessed valuations are net of exemptions.
(2) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 5-000.

Source: County of Tulare, Office of the Auditor-Controller.

Note: In 1978, the voters of the state of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the proeprty being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual value of taxable property and is subject to the limitations described above

8.1 General Business Page 154
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Direct and Overlapping Property Tax Rates (Rate Per $100 of Assessed Value) Current Year and Nine Years Ago 126
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Direct Rate:

City of Tulare 0.143000 0.143000 0.142000 0.142000 0.141000 0.141000 0.141000 0.141000 0.141000 0.141000County of Tulare 0.857000 0.857000 0.858000 0.858000 0.859000 0.859000 0.863767 0.859000 0.859000 0.859000 Total - 1% Breakout 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Overlapping Rate:

College of Sequoias Tulare SFID 2008 0.023200 0.025000 0.020000 0.017200 0.024300 0.021600 0.020000 0.020000 0.010000 0.012500Tulare Joint Union High School District 200 0.069100 0.063200 0.064500 0.066200 0.073800 0.064000 0.061500 0.060000 0.060000 0.060000 Kaweah Delta Water District 0.000400 0.000500 0.000400 0.000300 0.000400 0.000400 0.000300 0.000400 0.000400 0.000300 Tulare Health Care 2005 0.081500 0.081500 0.081500 0.085600 0.100300 0.100300 0.100300 0.050000 0.030000 0.020000 Total - Overlapping Rate 0.174200 0.170200 0.166400 0.169300 0.198800 0.186300 0.182100 0.130400 0.100400 0.092800 Total Tax Rate 1.174200 1.170200 1.166400 1.169300 1.198800 1.186300 1.182100 1.130400 1.100400 1.092800 Table has been reinstated. Rates are not adjusted for ERAF.Tax Rate as represented by TRA 005-000.Source: MuniServices / Avenu Insights & Analytics CompanySource: County Auditor-Controller Data

8.1 General Business Page 155
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Historical Sales and Use Tax Rates
127
Effective
Date
End
Date
State
Jurisdiction
Local
Transportation
Fund
City
Rate
County
Rate
Combined
Rate
8/1/1933 6/30/1935 2.50% 2.50%
7/1/1935 6/30/1943 3.00% 3.00%
7/1/1943 6/30/1949 2.50% 2.50%
7/1/1949 12/31/1961 3.00% 1.00% 4.00%
1/1/1962 (1) 7/31/1967 4.00% 1.00% 5.00%
8/1/1967 6/30/1972 3.75% 0.25% 1.00% 5.00%
7/1/1972 6/30/1973 4.75% 0.25% 1.00% 6.00%
7/1/1973 6/30/1973 3.75% 0.25% 1.00% 5.00%
10/1/1973 3/31/1974 5.00% 0.25% 1.00% 1.30%
4/1/1974 11/30/1989 5.00% 0.25% 1.00% 6.25%
12/1/1989 12/31/1990 4.75% 0.25% 1.00% 6.00%
1/1/1991 7/14/1991 6.00% 0.25% 1.00% 7.25%
7/15/1991 12/31/2000 5.75% 0.25% 1.00% 7.00%
1/1/2001 12/31/2001 6.00% 0.25% 1.00% 7.25%
1/1/2002 6/30/2004 6.25% 0.25% 1.00% 7.25%
7/1/2004 (2) 3/31/2007 6.25% 0.25% 1.00% 7.25%
4/1/2006 (3) 7.25% 0.25% 1.00% 8.75%
4/1/2007 (4) 7.25% 0.25% 1.00% 0.50% 9.25%
7/1/2010 6.25% 0.25% 1.00% 0.50% 8.25%
1/1/2017 6.00% 0.25% 1.00% 0.50% 8.25%
(4) In November 2006, voters in the County of Tulare approved a countywide sales tax measure giving the County a ½% rate increase which became effective April 1, 2007. The sales tax measure has a sunset period of 30 years.

The revenue is earmarked for transportation projects (i.e., streets, transit, etc.). The allocation is as follows: 50% - regional projects, 35% - goes to the cities for their street programs, 14% - transportation enhancement programs, and 1 % -administration.

State Mandated Purposes
Source: State Board of Equalization, State of California Notes:
(1) Sales tax only. The use tax was enacted effective July 1, 1955. (2) In March 2004,a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004, by repealing 25% of the local 1 % sales tax and then adopting a new ¼-cent sales tax dedicated to repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property allocations via reduced contributions to Education Revenue Augmentation Fund (ERAF). This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.
(3) In November 2005, voters in the City of Tulare approved a local sales tax measure increasing the City rate by ½% which became effective April 1, 2006. The sales tax measure does not have a sunset period.

8.1 General Business Page 156
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Principal Property Tax Payers
Current Year and Nine Years Ago
128
Taxpayer Taxable Value
Percent of
Total City
Taxable Value Taxable Value
Percent of
Total City
Taxable
Value
Saputo Cheese and Protein LLC $ 205,038,571 3.71% 247,514,194 $ 7.19% Land O Lakes Inc 164,126,924 2.97% 161,476,672 4.69%
Lactalis Heritage Dairy Inc 88,718,457 1.61%
Dreyers Grand Ice Cream Inc 78,709,685 1.42% 61,894,805 1.80% United States Cold Storage of California 67,527,520 1.22% Craig Realty Group Tulare LLC 42,456,634 0.77%
Target Corporation 29,447,557 0.53% 23,467,088 0.68%
SuLPhur Springs Cultured Specialties LLC 27,631,385 0.50% 13,867,436 0.40% Hillman Tulare Investors LLC 24,743,405 0.45%
International Agri-Center Inc 19,105,186 0.35% 13,503,233 0.39% Loves Country Stores of California 16,472,209 0.30% 10,917,590 0.32% Oak Valley Tulare LLC 15,981,200 0.29%
Crestmark Equipment Finance 13,017,860 0.24%
BDC Prosperity LP 12,890,619 0.23% 10,085,906 0.29%
Tulare Village LLC 12,345,561 0.22% 10,618,218 0.31%
Wal-Mart Real Estate Business Trust 12,163,889 0.22% 13,140,780 0.38% Lowes HIW Inc 11,867,660 0.21% 12,229,810 0.36%
HD Development of Maryland Inc 11,017,210 0.20% 9,854,680 0.29% Monterey Dynasty LLC 10,742,448 0.19%
Cherry Hospitality LLC 10,362,600 0.19%
Pilot Travel Centers LLC 10,255,824 0.19%
Kloeckner Metals Corporation 9,959,544 0.18% 8,797,912 0.26% Store Master Funding Ix LLC 9,683,590 0.18%
Quinn Rental Services 9,346,880 0.17%
Central CA Fuel Cell 1 LLC 9,298,680 0.17%
Oscar Mayer Foods Corp 80,109,612 2.33%
U S Cold Storage of California 66,387,030 1.93%
1407 Retherford Street Holding 33,863,295 0.98%
Daley Enterprise Inc. 14,627,621 0.43%
Moyles Central Valley Health C 13,133,601 0.38%
Paul Vickie Daley Ltd. Ptnrs 12,661,787 0.37%
Blain Construction Co Inc. 12,264,436 0.36%
Pre Tulare Holdings LLC 10,046,428 0.29%
Rutherford Investment Properti 10,028,321 0.29%
Cinemas Tulare LP 9,716,720 0.28%
Pimentel Lino A Betty T 9,268,508 0.27%
CH Bethel Assembly of God 8,779,569 0.26%
Total Top 25 Taxpayers 922,911,098 16.70% 878,255,252 25.52% Total Taxable Value 5,526,399,333 100.00% 3,440,777,539 100.00% Source: County Assessor Data
Source: MuniServices / Avenu Insights & Analytics Company 2023 2014

8.1 General Business Page 157
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 129
Fiscal Year
Residential
Property
Commercial
Property
Industrial
Property Other Property*
Unsecured
Property
Less
Tax-Exempt
Property
Taxable Assessed
Value
Total Direct
Tax Rate (1)
Estimated Actual
Taxable Value (2)
Factor of
Taxable
Assessed
Value (2)
2014 $ - $ - $ 3,347,851,924 - $ $ 136,958,939 $ 3,484,810,863 - $ 0.14% - -2015 - - 3,596,500,544 - 134,753,531 3,731,254,075 - 0.14% - - 2016 - - 3,792,578,075 - 143,801,821 3,936,379,896 - 0.14% - - 2017 - - 3,964,724,152 - 151,219,467 4,115,943,619 - 0.14% - - 2018 - - 4,099,475,198 - 208,318,421 4,307,793,619 - 0.14% - - 2019 - - 4,279,061,181 - 209,716,581 4,488,777,762 - 0.14% - - 2020 - - 4,520,579,269 - 214,038,086 4,734,617,355 - 0.14% - - 2021 - - 4,761,478,461 - 214,030,845 4,975,509,306 - 0.14% - - 2022 3,587,346,382 801,662,908 651,528,395 138,170,046 243,440,607 229,262,101 5,192,886,237 0.14% 7,631,205,970 1.469550 2023 3,818,249,466 834,343,720 697,975,380 147,553,758 266,079,961 237,802,952 5,526,399,333 0.14% 8,997,459,386 1.628087 Source: 2021 and Prior years: Prior published ACFR. Other Property represents Secured and Utility values. ( - ) data unavailable Table has been reformatted to comply with GASB No. 44 and include estimated actual value.Prior Year values are net of all exemptions.*Other Property includes State Unitary value of $3,484,168.(1) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 5-000. (2) EsƟmated Actual Value is derived from a series of calculaƟons comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a multiplier value was extrapolated and applied to current assessed values.Source: County Assessor data, MuniServices / Avenu Insights & Analytics Company

8.1 General Business Page 158
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Assessed Value of Property by Use Code, City-Wide
Current Year
130
Category 2022 2023
Residential 3,587,346,382 $ 3,818,249,466 $
Commercial 801,662,908 834,343,720
Industrial 651,528,395 697,975,380
Institution 85,168,886 92,299,554
Agriculture 21,963,021 21,992,889
Unknown 13,143,135 13,137,171
Miscellaneous 10,361,748 14,122,188
Unitary 3,484,168 3,484,168
Government 2,385,984 2,411,786
Misc 1,562,701 -
Recreation 100,403 106,002
Gross Secured Value 5,178,707,731 5,498,122,324
Unsecured 243,440,607 266,079,961
Exemptions 229,262,101 237,802,952
Net Taxable Value 5,192,886,237 $ 5,526,399,333 $
Source: MuniServices / Avenu Insights & Analytics Company Source: County Assessor Data;

8.1 General Business Page 159
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Property Tax Levies and Collections
Last Ten Fiscal Years
131
Fiscal Year
Ended June 30
Taxes Levied for
the Fiscal
Year (1) Amount (2)
Percent of
Levy
Collections in
Subsequent Years Amount Percent of Levy
2014 (3) $ 3,832,575 4,331,367 $ 88.48% 115,770 $ 3,948,345 $ 91.16% 2015 (4) 3,880,262 4,454,173 87.12% 133,290 4,013,552 90.11% 2016 (5) 4,237,324 4,715,361 89.86% 146,721 4,384,045 92.97% 2017 (6) 4,459,365 4,887,339 91.24% 103,452 4,562,817 93.36% 2018 (7) 4,778,139 5,246,283 91.08% 106,867 4,885,006 93.11% 2019 (8) 5,034,816 5,527,262 91.09% 108,602 5,143,418 93.06% 2020 (9) 5,295,495 5,800,055 91.30% 115,956 5,411,451 93.30% 2021 (10) 5,666,998 6,119,608 92.60% 139,323 5,806,321 94.88% 2022 (11) 5,905,609 6,463,561 91.37% 136,932 6,042,541 93.49% 2023 (12) 6,294,243 6,646,500 94.70% 130,925 6,425,168 96.67% Sources:

Collected within the
Fiscal Year of Levy
(11) Reduced approximately $2,430,970 for the property tax shift to education. (12) Reduced approximately $2,684,793 for the property tax shift to education. (7) Reduced approximately $1,747,188 for the property tax shift to education. (8) Reduced approximately $1,861,417 for the property tax shift to education.

Total Collections to Date
(9) Reduced approximately $1,980,278 for the property tax shift to education. (10) Reduced approximately $2,313,482 for the property tax shift to education. (2) City of Tulare Finance Department
(3) Reduced approximately $1,675,639 for the property tax shift to education. (4) Reduced approximately $1,698,640 for the property tax shift to education. (5) Reduced approximately $1,626,244 for the property tax shift to education. (6) Reduced approximately $1,639,505 for the property tax shift to education. (1) County of Tulare, Office of Auditor-Controller

8.1 General Business Page 160
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Schedule of Taxable Sales by Category (In Thousands) Last Ten Fiscal Years 132
CDTFA NAICS SECTOR 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 2015Q1 2014Q1 Accommodation and Food Services $ 1,336,159 $ 1,289,288 $ 966,275 $ 948,195 $ 933,691 $ 877,606 $ 879,248 $ 838,959 $ 767,017 $ 712,717 Agriculture, Forestry, Fishing and Hunting 81,725 484,913 57,067 75,563 78,054 43,819 60,971 63,671 34,286 101,239 Arts, Entertainment, and Recreation 5,376 5,036 1,876 5,719 5,054 4,681 8,157 4,975 3,957 5,126 Construction 29,470 31,206 33,266 26,627 22,800 16,525 13,537 15,471 13,503 9,945 Educational Services 7,295 5,427 5,101 20,188 15,771 13,939 17,552 14,086 13,502 13,996 Information 40,195 38,537 10,692 33,459 32,666 29,568 29,732 26,073 23,683 20,339 Manufacturing 258,447 220,512 188,859 228,124 279,696 212,572 177,436 179,498 239,550 190,604Mining, Quarrying, and Oil and Gas Extraction 1,988,645 1,883,624 1,595,379 1,549,030 1,447,845 1,428,628 1,229,168 1,269,492 1,316,672 1,270,946Other Services (except Public Administration) 174,007 162,779 129,501 109,232 98,325 86,559 75,870 75,840 75,416 71,498Professional, Scientific, and Technical Services 11,609 10,403 9,835 11,038 9,015 9,127 6,891 6,763 9,217 9,478Real Estate and Rental and Leasing 121,651 88,794 67,984 69,222 44,551 71,227 70,395 60,414 63,016 56,689 Retail Trade 8,624,442 8,374,803 6,992,879 6,664,386 6,407,181 6,241,630 5,997,898 5,979,158 6,036,193 6,022,671 Utilities 399,244 418,161 379,601 330,285 309,494 286,110 271,709 284,036 261,980 235,519Undefined 16,605 30,821 12,635 889 66 78 726 0 0 0 TOTAL $ 13,094,871 $ 13,044,303 $ 10,450,950 $ 10,071,959 $ 9,684,207 $ 9,322,070 $ 8,839,291 $ 8,818,437 $ 8,857,993 $ 8,720,769 Source: MuniServices / Avenu Insights & Analytics Company

8.1 General Business Page 161
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Principal Producers
Current Year and Nine Years Ago
133
Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations Chevron Service Stations Service Stations Exxon Service Stations Service Stations Circle K Service Stations Service Stations Firestone Tire & Service Ctrs. Auto Parts/Repair Garton Tractor Heavy Industry Garton Ford Tractor Bldg.Matls-Whsle Gary V. Burrows Energy Sales Gas N Save Service Stations High Sierra Lumber & Supply Bldg.Matls-Whsle Gea Farm Technologies Bldg.Matls-Whsle Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail Linder Equipment Co. Heavy Industry K Mart Stores Department Stores Love's Travel Stop Service Stations Linder Equipment Company Bldg.Matls-Whsle Lowe's Home Centers Bldg.Matls-Retail Love's Country Stores Service Stations Mcdonald's Restaurants Restaurants Lowe's Home Improvement Bldg.Matls-Retail Merle Stone Chevrolet Auto Sales - New Mcdonald's Restaurants Restaurants Mid-Valley Pipe & Supply Heavy Industry Merle Stone Chevrolet Auto Sales - New Nike Factory Store Apparel Stores Mid-Valley Pipe & Supply Bldg.Matls-Whsle Paige Truck Stop Service Stations Mobil Service Stations Service Stations Pilot Travel Center Service Stations Nike Factory Store Apparel Stores Quinn Rental Services Heavy Industry Orchard Machinery Bldg.Matls-Whsle Roche Oil Energy Sales Ralph's Grocery Company Food Markets Ross Stores Apparel Stores Roche Oil Energy Sales
San Joaquin Valley Dairy Equipment Heavy Industry Sierra Service Stations Service Stations Shell Service Stations Service Stations Sturgeon & Beck Buick/Olds Auto Sales - New Target Stores Department Stores Target Stores Department Stores Valero Service Stations Service Stations Tesoro Service Stations Service Stations Wal Mart Stores Department Stores Wal Mart Stores Department Stores Will Tiesiera Ford Auto Sales - New Will Tiesiera Ford Mercury Auto Sales - New Source: MuniServices / Avenu Insights & Analytics Company 2022-23 2013-14

8.1 General Business Page 162
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
134
Fiscal Year
Ended June 30
Lease Revenue
Bonds (1) Leases Payable Notes Payable
Advances from
Other Fund
General Obligation
Bond
Total Governmental
Activities
2014 29,773,588 $ 1,035,583 $ - $ - $ - $ 30,809,171 $
2015 28,951,872 933,039 - - - 29,884,911
2016 28,095,156 825,839 - - - 28,920,995
2017 27,203,440 713,771 - - - 27,917,211
2018 29,005,402 597,202 - - - 29,602,604
2019 27,696,192 474,727 - - - 28,170,919
2020 26,501,262 - - - - 26,501,262
2021 25,256,332 - - - - 25,256,332
2022 23,966,402 - - - - 23,966,402
2023 22,636,472 - - - - 22,636,472
(1) The City issued over $29 million of new revenue bonds in 2003 and 2004. The City issued $79 million of new revenue bonds in 2007. The City issued $55 million of new revenue bonds in 2009.
(2) Ratio calculated using population for the prior calendar year. (3) See the schedule of Demographic and Economic Statistics for personal income and per capital data.

Governmental Activities
Notes:

8.1 General Business Page 163
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
135
Revenue Bonds
Payable (1) Leases Payable Notes Payable
Total Business-Type
Activities
Total Primary
Government
Debt per
Capita (2)
Percentage of Gross
Assessed Valuation
Percentage of
Personal
Income (3)
$ 9,882,269 192,163,518 $ 1,530,000 $ 203,575,787 $ 234,384,958 $ 3,911 $ 6.73% 20.75% 8,657,524 189,179,833 1,031,886 198,869,243 228,754,154 3,817 6.13% 20.17% 7,382,888 192,182,638 521,793 200,087,319 229,008,314 3,627 5.90% 22.92% 6,519,902 243,697,903 - 250,217,805 278,135,016 4,301 6.76% 23.66% 5,612,978 260,258,512 - 265,871,490 295,474,094 4,478 6.86% 24.74% 4,660,072 256,006,225 - 260,666,297 288,837,216 4,480 6.43% 23.19% 1,474,943 213,702,484 - 215,177,427 241,678,689 3,626 5.20% 17.96% - 201,170,151 - 201,170,151 226,426,483 3,380 4.62% 16.68% - 194,596,530 - 194,596,530 218,562,932 3,147 4.21% 13.52% - 189,033,907 - 189,033,907 211,670,379 3,038 3.83% 11.19% Business-Type Activities

8.1 General Business Page 164
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Ratios of General Bonded Debt Outstanding (In Thousands, Except Per Capita) Last Ten Fiscal Years
136
Fiscal Year
Ended June 30
General
Obligation
Bonds
Tax Allocation
Bonds Total
Percentage of
Assessed
Value (1) Per Capita
2014 - $ 29,774 $ 29,774 $ 0.66% 369.32 $
2015 - 28,952 28,952 0.60% 359.42
2016 - 28,095 28,095 0.53% 350.00
2017 - 27,203 27,203 65.00% 404.20
2018 - 28,846 28,846 0.62% 437.18
2019 - 27,696 27,696 0.62% 432.75
2020 - 26,501 26,501 0.59% 389.72
2021 - 25,256 25,256 0.51% 371.41
2022 - 23,966 23,966 0.46% 345.03
2023 - 22,636 22,636 0.41% 324.88
General bonded debt is payable with governmental fund resource and general obligation bonds recorded in enterprise funds (of which the City has none.
(1) Assessed value has been used because the actual value of taxable property is not readily available from the State of California.

Notes:

8.1 General Business Page 165
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Direct and Overlapping Debt
137
Total Debt
6/30/23
Applicable
Percentage (1)
City's Share of
Debt 6/30/23
Overlapping Tax and Assessment Debt:

College of the Sequoias Tulare School
Facilities Improvement District 55,589,109 $ 48.684% 27,063,002 $ Tulare Union High School District 13,226,877 63.012% 8,334,520 Liberty School District 331,002 31.813% 105,302
Tulare Local Health Care District 144,540,000 61.535% 88,943,123 Total Overlapping Tax and Assessment Debt $ 124,445,946 Direct and Overlapping General Fund Debt:

Tulare County General Fund Obligations 40,995,926 12.798% $ 5,246,659 Tulare County Pension Obligation Bonds 201,020,000 12.798% 25,726,540 Tulare County Board of Education Certificates of Participation 34,365,000 12.798% 4,398,033 College of the Sequoias General Fund Obligations 210,830 63.012% 132,848 Tulare School District General Fund Obligations 5,470,000 94.845% 5,188,022 Liberty School District General Fund Obligations 2,065,000 31.813% 656,938 City of Tulare General Fund Obligations 21,015,000 100.000% 21,015,000 Total Direct and Overlapping General Fund Debt 100.000% 62,364,039 Overlapping Tax Increment Debt (Successor Agency) 100.000% 15,665,000 15,665,000 $ Total Direct Debt (3) 21,015,000 $ 22,636,472 $
Total Overlapping Debt 181,459,985
Combined Total Debt $ (2) 204,096,457
Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.24%
Total Direct Debt ($21,015,000) 0.38%
Combined Total Debt 3.64%
Ratios to Redevelopment Successor Agency Incremental Valuation ($760,357,456):

Total Overlapping Tax Increment Debt 2.06%
Notes:

Source: Avenu Insights & Analytics. California Municipal Statistics, Inc. (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) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations.
(3) Includes any applicable bond premium and/or bond discounts.

Overlapping governments are those that coincide, at least in part,with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City"s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident. and therefore responsible for repaying the debt, of each overlapping government.

8.1 General Business Page 166
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Legal Debt Margin Information Last Ten Fiscal Years
138
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Assessed Valuation $ 3,484,810,863 $ 3,731,254,075 $ 3,936,379,896 $ 4,116,213,619 $ 4,307,793,619 $ 4,488,777,762 $ 4,734,617,355 $ 4,758,154,693 $ 4,959,482,006 $ 5,561,184,238Debt Margin Ratio 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%Debt Margin 130,680,407 139,922,028 147,614,246 154,358,011 161,542,261 168,329,166 177,548,151 178,430,801 185,980,575 208,544,409 Less Outstanding General Obligations - - - - - - - - - - Net Debt Margin $ 130,680,407 $ 139,922,028 $ 147,614,246 $ 154,358,011 $ 161,542,261 $ 168,329,166 $ 177,548,151 $ 178,430,801 $ 185,980,575 $ 208,544,409 Notes:The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based on 15% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuationperspective to the 25% level that was in effect at the time that the ldegal debt margin was enacted by the State of California for local governments located within the State.

Fiscal Year

8.1 General Business Page 167
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Pledged Revenue Coverage Last Ten Fiscal Years
139
Fiscal Year
Ended June
30 Total Sewer
Revenue
Less
Operating
Expenses
Net
Revenues
2001 Senior
Bonds
Senior Debt
Coverage
Remaining
Net
Revenues
Parity
(Subordinate)
Debt
Parity Debt
Coverage
Fiscal Year
Ended June 30
Total Water
Revenue
Less
Operating
Expenses
Net
Revenues
Debt
Service
Debt
Coverage
2014 25,225 $ 10,981 $ (1) 14,244 $ 923 $ 15.43 13,321 $ 11,263 $ 1.18 2014 - $ -$ -$ $ - - 2015 26,023 9,615 16,408 17.77 923 15,485 11,221 2015 1.38 - - - - - 2016 28,308 (2) 17,749 10,559 19.22 923 16,826 10,858 2016 1.55 - - - - - 2017 29,556 9,787 19,769 21.41 923 18,846 10,617 2017 1.78 - - - - - 2018 31,650 (3) 20,981 10,669 22.72 923 20,058 10,673 2018 12,658 1.88 6,795 5,863 15.47 379 2019 37,071 11,071 26,000 28.16 923 25,077 10,633 2019 15,639 2.36 6,924 8,715 1,107 7.88 2020 38,398 11,561 26,837 29.06 923 25,914 10,456 2020 14,662 2.48 7,296 7,367 1,353 5.45 2021 38,643 10,916 27,727 60.06 462 27,266 9,859 2021 15,219 2.77 7,015 8,205 2,737 3.00 2022 39,084 12,349 26,735 - - 26,735 10,354 2022 15,073 2.58 7,358 7,715 2,735 2.82 2023 35,339 12,869 22,470 - - 22,470 10,327 2023 14,256 2.18 7,935 6,321 2,295 2.75 Source: Prepared by Bartle Wells Associated based on audited financial information and outstanding debt service schedules.

Operating Expenses exclude interest expenses and depreciation. For purposes of calculating debt service coverage, Federal Reimbursable Credits for Build America Bonds are treated as reductions in debtservice and are excluded from Sewer Revenues. Debt service shown on the table is based on total debt payments due and payable each fiscal year and excludes a) payments made from escrow funds, and b) adjustments due to accounting accruals or interest earnings on debt service reserve funds or other bond funds. Details regarding the City’s outstanding debt can be found in the notes to the financial statements.(1) Operating Expenses is Fiscal Year Ended June 30, 2014, included a number of extraordinary expenses for: a) sludge disposal of approximately 8 years of sludge accumulation, b) roadwork funded from the Capital Improvement Fund but written off as an expense, and c) higher-than-normal natural gas purchases incurred during removal of the Bulk Volume Fermenter cover for repair and during sludge removal.(2) Operating Expenses shown for Fiscal Year Ended June 30, 2016, exclude $1,543,438.74 of bond-funded expenses related to the Series 2015 Bonds and the unamortized portions of the Series 2006 Bonds and Series 2010 Bonds.
(3) Operating Expenses shown for Fiscal Year Ended June 30, 2018, exclude $3,163,328.48 of bond funded expenses related to the Series 2016 Bonds and unamortized portion of the Series 2010 Bonds.

Operating Expenses exclude interest expenses and depreciation. For purposes of calculating debt service coverage, Federal Reimbursable Credits for Build America Bonds are treated as reductions in debtservice and are excluded from Sewer Revenues. Debt service shown on the table is based on total debt payments due and payable each fiscal year and excludes a) payments made from escrow funds, and b) adjustments due to accounting accruals or interest earnings on debt service reserve funds or other bond funds. Details regarding the City's outstanding debt can be found in the notes to the financialstatements.Notes:

Sewer Revenue Bonds Water Revenue Bonds

8.1 General Business Page 168
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Demographic and Economic Statistics
Last Ten Calendar Years
140
Fiscal Year
City Population
(1) Personal Income (2)
Personal Income (in
thousands) (2)
Per Capita Personal
Income (2)
Assessed Valuation
(in thousands)
City
Unemployment
Rate (3)
County
Unemployment
Rate (3)
2014 61,857 1,129,508,820 1,129,509 18,260 3,484,811 9.80% 11.60% 2015 62,363 1,134,393,312 1,134,393 18,336 3,731,254 9.20% 10.90% 2016 63,515 1,004,957,149 1,004,957 15,872 3,936,380 9.10% 10.60% 2017 64,661 1,175,483,033 1,175,483 18,179 4,116,214 8.90% 10.60% 2018 65,982 1,194,535,485 1,194,535 18,707 4,307,794 6.40% 9.60% 2019 66,967 1,245,463,575 1,245,464 19,317 4,488,778 7.00% 10.00% 2020 67,834 1,369,297,124 1,369,297 20,186 4,734,617 14.60% 16.20% 2021 67,940 1,376,600,280 1,376,600 20,262 4,975,509 7.40% 9.30% 2022 69,462 1,616,614,827 1,616,615 23,273 5,192,886 3.40% 6.50% 2023 69,677 1,891,424,668 1,891,425 27,146 5,526,399 5.70% 10.00% MuniServices / Avenu Insights & Analytics Company
Source: 2022 and prior years: City of Tulare Comprehensive Annual Financial Report For the Year Ended June 30th, 2022 (1) State of California Department of Finance;
(2) U.S. Census Bureau, adjusted for inflation;
(3) State of California Employment Development Department;

8.1 General Business Page 169
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Principal Employers
Current Year and Nine Years Ago
141
Employer
Number of
Employees
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
Saputo Cheese USA, Inc. (4 locations) 1,125 3.71% 854 3.92% Tulare City School District 1,100 3.63%
Tulare Joint Union High School District 667 2.20%
Land O'Lakes, Inc. (formerly Dairyman's Cooperative Creamery)* 486 1.60% 537 2.46% City of Tulare 381 1.26%
Adventist Health Hospital 355 1.17%
Dryer's Grand Ice Cream (formerly Haagen-Dazs) 350 1.16% 354 1.62% Lactalis Heritage Dairy (formerly Kraft Foods USA Tulare) 250 0.83% 250 1.15% Walmart 212 0.70% 250 1.15%
Twin Oaks Rehabilitation and Nursing Center 189 0.62%
U.S. Cold Storage of California (2 locations) 200 0.92% J.D. Heiskell Company 360 1.46%
Ruan, Inc. 174 0.80%
Morris Levin & Sons Hardware 170 0.78%
Southern Ca Edison Company 125 0.57%
Total Top Employers 5,115 16.88% 3,274 14.83%
Total Labor Force (1) 30,300
Source: 2014, City of Tulare Comprehensive Annual Financial Report For the Year Ended June 30th, 2014 * No response received from business, previous year count applied. (1) State of California Employment Development Department Note: School Districts include Administrators, Certificated, and Classified employees for schools within the city limits only. 2023
Source: MuniServices / Avenu Insights & Analytics Company 2014

8.1 General Business Page 170
CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
142
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 48 46 38 40 37 38 37 39 32 35
Public Safety 156 160 159 124 161 161 161 161 160 162
Public Works 86 88 95 92 103 112 112 114 120 120
Community Development 16 17 15 17 21 21 21 20 25 29
Community Services 22 22 22 26 26 21 20 19 21 22
Library and Cultural 10 10 11 16 12 12 12 12 10 10
Total 338 343 340 315 360 365 363 365 368 378
Source: City of Tulare Human Resources and Finance Department Full-Time and Part-Time Employees as of June 30

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Operating Indicators by Function
Last Ten Fiscal Years
143
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Arrests 3,824 4,429 3,577 3,345 3,294 3,118 3,354 2,853 2,219 2,063 Parking Citations Issued 346 246 182 255 35 123 135 94 218 N/A Fire:

Number of Emergency Calls 4,754 5,762 5,392 5,496 5,350 5,350 5,704 7,096 8,516 7,687 Inspections 1,993 2,205 1,978 1,447 1,439 1,439 1,290 647 895 1,023 Parks and Recreation:

Number of Recreation Classes 116 320 340 721 989 973 215 243 618 636 Number of Facility Rentals 1,338 2,428 2,885 2,469 2,977 2,967 1,998 648 2,386 2,565 Water:

New Connections 179 211 701 (1) 378 339 382 394 354 342 362 Average Daily Consumption 13
(millions of gallons) 17 14 12 13 14 14 14 15 15 0
Sewer:

New Connections 166 239 280 380 340 382 394 354 216 333 Source: City of Tulare Human Resources and Finance Department Note: Parking citation information not available as of the time of publishing this report.

Fiscal Year

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CITY OF TULARE | FOR THE YEAR ENDED JUNE 30, 2023
Capital Asset Statistics by Function
Last Ten Fiscal Years
144
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Fire:

Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works:

Streets (miles) 211.00 215.32 220.00 221.72 223.32 223.39 224.78 227.66 227.66 229.24 Traffic Signals 47 47 47 47 46 47 47 51 54 54
Parks and Recreation:

Parks 18 18 18 18 18 18 18 18 20 20
Park Acreage 363.00 363.00 363.00 363.00 367.52 368.66 368.66 370.45 371.12 371.12 Water:

Water Mains (miles) 227.00 231.68 232.16 234.19 235.75 236.63 238.18 241.49 242.72 244.20 Average Daily Consumption
(millions of gallons) 16.99 14.43 12.46 13.31 13.55 14.16 13.99 15.46 15.00 13.45 Sewer:

Sanitary Sewers (miles) 242.40 243.31 243.76 245.89 247.35 248.53 249.81 252.92 254.17 255.35 Average Daily Wastewater Flow
(millions of gallons) 11.79 11.37 11.08 11.24 11.54 11.68 11.65 11.74 11.54 11.46 Source: Various City of Tulare Departments as appropriate Fiscal Year

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Staff Report
Meeting: City Council
Date: September 17, 2024
Department: Information Technology Services
Submitted by: Jason Bowling, Chief Technology Officer
Agenda Title: GIS Presentation

RECOMMENDED ACTION
Receive a presentation on the status of the Geographic Information System (GIS) for the City of Tulare.

SUMMARY
The purpose of this item is to present the progress of the different components of the City of Tulare GIS system. GIS work has been organized into 3 areas of focus: 1) Land use information for Planning, Building, and Economic Development, 2) Public Safety information for Computer Automated Dispatch (CAD) and Records Management System (RMS) including Next generation 911 (NG911), and 3) Underground utilities including water, wastewater and storm drain infrastructure. Significant progress has been made on each focus area. Staff will also share upcoming projects that will use GIS data.

FISCAL IMPACT & FUNDING SOURCE(S)
There is no fiscal impact.

LEGAL REVIEW
This item does not require legal review.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
This item is informational only; no action necessary.

ATTACHMENTS
None
Reviewed/Approved:

Item #: 8.2
General Business
Staff Report
Meeting: City Council
Date: September 17, 2024
Department: Engineering Services - Project Management
Submitted by: City Engineer, Michael Miller
Agenda Title: Award of Construction Contracts for Project FM0048 Homeless Shelter

RECOMMENDED ACTION
Award and authorize the City Manager to sign contracts related to construction of City Project FM0048 Homeless Shelter; and authorize the City Manager or designee to approve contract change orders in an amount not to exceed 10% of each contract amount.

Task Description Contractor Amount
Construction Contractor Superior Construction, Bakersfield, Ca $8,940,000 Construction Management CCME, Fresno, Ca $347,600
Materials Inspection Krazan, & Associates, Clovis, Ca $48,745 Construction Surveying Guida, Fresno, Ca $56,700
Labor Compliance Labor Consultants, Hanford, Ca $30,600

SUMMARY
Project FM0048 will construct an emergency homeless shelter facility consisting of a 20,000 square foot steel building, three modular buildings that will serve as office, food pantry, laundry room and classroom space, restroom and shower facilities, a modular unit village, dog kennels, storage containers, a parking lot, exterior lighting, roadway frontage improvements, utility extensions, and perimeter fencing. This project was included and approved as part of the City’s 2023-2028 CIP budget.

Various contracts are required for construction and construction support services to successfully deliver the project. The following bids and proposals have been received and are recommended for award:

Task Description Contractor Amount

1. Construction Contractor Superior Construction, Bakersfield, Ca $8,940,000

2. Construction Management CCME, Fresno, Ca $347,600

3. Materials Inspection Krazan, & Associates, Clovis, Ca $48,745

4. Construction Surveying Guida, Fresno, Ca $56,700

5. Labor Compliance Labor Consultants, Hanford, Ca $30,600 A detailed breakdown of the construction contracts required for the subject project is as follows:

Item #: 8.3
General Business

8.3 General Business Page 1

1. Construction Contract: Superior Construction
On August 29, 2024, three bids were opened from the Request for Bids #24-803, Emergency Homeless Shelter Project. The bid opening results are attached. The project sheet for the Emergency Homeless Shelter was approved in the 2023 – 2028 City of Tulare Capital Improvement Program (CIP) budget. Once the plans and specifications were finalized, the Architect provided an estimated construction cost of $6,100,000. Bids ranged from $8,940,000 - $11,731,000. The bids were evaluated and determined to be responsive to the requirements and instructions contained in the bid documents. While the combination of bids received are higher than the construction estimate, this appears to be consistent with current construction costs trends being observed throughout the state and nation. Inflation, labor shortages, and significant supply chain issues in the building industry are driving higher than expected costs.

2. Construction Management: CCME
Emergency Homeless Shelter being the construction of a facility or buildings and infrastructure City of Tulare building inspectors will have an active part in the construction process inspections. Due to the volume of projects citywide, both private and public, The City does not have sufficient in-house staff capacity to perform the necessary construction management required by Emergency Homeless Shelter Project. The construction management of CCME will be an extension of the City’s Engineering Department, Project Management.

CCME of Fresno, CA is included on the list of pre-qualified On-Call Construction Management, Resident Engineer, Inspection Consultants and has demonstrated in their proposal that they have the skills, expertise, and resources available to meet the City’s needs and time frame to complete the work on this project. CCME has reviewed the scope of this project and has proposed to perform construction management services on a time and materials basis, not to exceed $347,600 in accordance with the provisions on their on-call contract. This amount is in line with industry standards and with what the City has experience on projects with similar scopes of work.

3. Materials Testing: Krazan
During construction, it will be necessary to perform materials testing to ensure compliance with City standards. Materials testing services including laboratory testing are outside the capabilities of the City.

Krazan of Clovis, CA is included on the list of pre-qualified On-Call Geotechnical and Materials Testing consultants and has demonstrated in their proposal that they have the skills, expertise, and resources available to meet the City’s needs and timeframe to complete the work on this project. Krazan has reviewed the scope of this project and has proposed to perform the necessary services on a time and material basis, not to exceed $48,745, in accordance with the provisions of their on-call contract. This amount is in line with industry standards.

4. Construction Survey: Guida
During construction, it will be necessary to provide construction staking so the Contractor has the necessary locations and elevations to properly construct the site improvements.

Guida of Fresno, CA is included on the list of On-Call Construction Surveying consultants and demonstrated in their bid proposal that they have the skills, expertise, and resources available to meet the City’s needs and timeframe to complete the work on this project.

Guida has reviewed the scope of the Emergency Homeless Shelter Project and has

8.3 General Business Page 2
proposed to perform the necessary services on a time and materials basis, not to exceed $56,700. This amount is in line with industry standards.

5. Labor Compliance Monitoring: Labor Consultants of California This project is subject to Prevailing Wage requirements. To ensure proper wages are paid and accounted for in accordance with the ever-changing requirements under state and federal law, it will be necessary to perform labor monitoring of those contractors and consultants subject to these requirements. Due to the complexities involved, the City does not have the expertise or resources available to perform this work.

Labor Consultants of California, Hanford, CA, is included on the list of pre-qualified OnCall Labor Compliance Monitoring consultants and has demonstrated in their proposal that they have the skills, expertise, and resources available to meet the City’s needs and timeframe to complete the work on this project. Labor Consultants has reviewed the scope of this project and has proposed to perform the necessary services on a time and material basis, not to exceed $30,600, in accordance with the provisions of their on-call contract. This amount is in line with industry standards.

FISCAL IMPACT & FUNDING SOURCE(S)
The construction bid amount came in above the preliminary cost estimates used to develop the project budget and project sheet in the adopted 2023-2028 CIP budget, so revisions are necessary. Please refer to the revised Project Sheet attached to this staff transmittal for a breakdown of project costs and proposed funding sources.

LEGAL REVIEW
Subsequent contract approval to be reviewed by the City Attorney.

ALTERNATIVE ACTION

1. Approve with changes – Changes to the project scope following the construction contract bid opening could invalidate the entire bid process and are therefore not recommended.

2. Deny – Council could elect to reject all bids, direct staff to reduce the scope of the project, revise the design accordingly, and re-bid the project. A reduced scope might result in lower bids, but additional design costs associated with revising the project plans would be incurred.

3. Table – Council could elect to reject all bids and direct staff to reprogram the project to a future date in the hope that additional funding becomes available.

ATTACHMENTS

1. Exhibit A - Project FM0048 Emergency Homeless Shelter

2. Bid Opening Summary

3. Construction Bid Proposal- Superior Construction

4. Construction Management Proposal – CCME

5. Materials Testing Proposal – Krazan

6. Construction Survey Proposal- Guida

7. Labor Compliance Proposal – Labor Consultants of California

8. Updated Project Sheet – FM0048 Emergency Homeless Shelter Reviewed/Approved:

8.3 General Business Page 3
JOB NO.: FILE NAME: SCALE: PLOT DATE: DRW BY: CHK BY:

DATE SUBMITTAL WEB: 4-Creeks.com VISALIA, CA 93292 324 S SANTA FE SUITE A JF 01/04/23 AS NOTED 22306 APPROVED BY: DATE TEL: 559.802.3052

TULARE HOMELESS SHELTER
CITY OF TULARE THESE DRAWINGS ARE INSTRUMENTS OF SERVICE AND ARE THE PROPERTY OF 4CREEKS. THE DESIGN AND INFORMATION REPRESENTED ON THESE DRAWINGS ARE EXCLUSIVELY FOR THE PROJECT INDICATED AND SHALL NOT BE TRANSFERRED OR OTHERWISE REPRODUCED WITHOUT EXPRESS WRITTEN PERMISSION FROM 4CREEKS. SIGNATURE WR 240410 ISSUE FOR BID WILLIAM D. RUOFF III C-36886 2.28.2025 RENEWAL

L I C E N S E D A R C H I T E C T

S T A T E O F A L I F O R N I A C
240626 PLAN CHECK SUBMITTAL TWO TITLE SHEET T1.0 TULARE HOMELESS SHELTER DRAWING SYMBOLS VICINITY MAP THIS PROJECT SHALL COMPLY WITH CURRENT APPLICABLE CODES & ORDINANCES 2022 CALIFORNIA BUILDING STANDARDS ADMINISTRATIVE CODE 2022 CALIFORNIA BUILDING CODE 2022 CALIFORNIA RESIDENTIAL BUILDING CODE 2022 CALIFORNIA ELECTRICAL CODE 2022 CALIFORNIA MECHANICAL CODE 2022 CALIFORNIA PLUMBING CODE 2022 CALIFORNIA ENERGY CODE 2022 CALIFORNIA HISTORICAL BUILDING CODE 2022 CALIFORNIA FIRE CODE 2022 CALIFORNIA EXISTING BUILDING CODE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE 2022 CALIFORNIA REFERENCE STANDARDS CODE CODE REFERENCES CITY OF TULARE - PLANNING & BUILDING DIVISION 411 E KERN AVE, TULARE, CA 93274 PH: 559.685.2300 CITY OF TULARE - FIRE DEPARTMENT 800 S BLACKSTONE ST. TULARE, CA 93274 PH: 559.684.4360 CITY OF TULARE - PUBLIC WORKS 3981 SOUTH K ST. TULARE, CA 93274 PH: 559.684.4320 SOUTHERN CALIFORNIA EDISON 2425 S BLACKSTONE ST. TULARE, CA 93274 PH: 800.990.7788 SOCALGAS 404 N TIPTON ST. VISALIA, CA 93292 PH: 800.427.2200 AGENCIES & UTILITIES PROJECT DESCRIPTION THE PROJECT IS A NEW HOMELESS SHELTER FACILITY FOR THE CITY OF TULARE AND COMPRISES A NEW PRE-ENGINEERED METAL BUILDING AS THE PRIMARY SHELTER AND MULTIPLE PRE-FABRICATED MODULAR BUILDINGS OF VARYING USES, INCLUDING ADDITIONAL SMALLER HOUSING AREAS, ADMINISTRATIVE OFFICES, RESTROOMS AND SHOWERS, A FOOD PANTRY AND LAUNDRY FACILITY, A WORKFORCE TRAINING CLASSROOM, DOG KENNELS, AND STORAGE. PROJECT ADDRESS E. O'NEAL STREET TULARE, CA 93274 APN 181-040-022 ZONING PUBLIC LANDS (PL) CURRENT USE UNOCCUPIED LOT SIZE 2.86 ACRES BUILDING TYPE: VB OCCUPANCY R-2 (HOMELESS SHELTER) AND B (OFFICE) OCCUPANT LOAD ON MAIN BUILDING: 400 OCCUPANT LOAD OF OFFICE SPACE: 7 OCCUPANT LOAD OF MODULAR VILLAGE: 64 TOTAL SITE OCCUPANT LOAD: 474 BUILDING AREA OF MAIN BUILDING): 21,815 SQ FT BUILDING AREA OF OFFICE SPACE: 960 SQ FT (7 OCCUPANTS) BUILDING AREA OF CLASSROOM: 960 SQ FT (30 OCCUPANTS) BUILDING AREA OF LAUNDRY/FOOD PANTY: 1440 SQ FT (7 OCCUPANTS) NUMBER OF STORIES: 1 SPRINKLERS: REQUIRED: YES PROPOSED: YES PROJECT DATA OWNER: CITY OF TULARE CONTACT: MICHAEL MILLER 411 E KERN AVE PHONE: 559.684.4207 TULARE, CA 93274 EMAIL: [email protected] ARCHITECT: 4CREEKS CONTACT: WILL RUOFF 324 S SANTA FE STREET PHONE: 805.235.5333 VISALIA, CA 93292 EMAIL: [email protected] CIVIL ENGINEER: 4CREEKS CONTACT: ELSA MEJIA 324 S SANTA FE STREET PHONE: 559.802.3052 VISALIA, CA 93292 EMAIL: [email protected] ELECTRICAL: EASTHAM ELECTRICAL CONTACT: STEVE EASTHAM 1736 S CENTRAL STREET, SUITE C PHONE: 559.372.8918 VISALIA, CA 93277 EMAIL: [email protected] MECHANICAL / PLUMBING: CALIBER MECHANICAL DESIGN CONTACT: SCOTT BOYLE 3128 W BUENA VISTA AVE PHONE: 559.972.3299 VISALIA, CA 93291 EMAIL: [email protected] LANDSCAPE: WOOD ARCHITECTURE CONTACT: GREG MENDONSA 1440 DRAPER STREET, SUITE C PHONE: 805.798.1585 KINGSBURG, CA 93631 EMAIL: [email protected] FIRE SUPPRESSION: JOHNSON FIRE PROTECTION CONTACT: JOSH JOHNSON 732 ELKO STREET PHONE: 559.736.0563 VISALIA, CA 93291 EMAIL: [email protected] PROJECT DIRECTORY TITLE / CODE T1.0 TITLE SHEET T1.1 GENERAL NOTES CIVIL G1 GENERAL NOTES, LEGEND, & ABBREV. K1 KEY MAP D1 DEMOLITION PLAN HCP1 HORIZONTAL CONTROL PLAN L1 E. ONEAL AVE. GRADING PLAN L2 E. ONEAL AVE. GRADING PLAN GP1 GRADING AND DRAINAGE PLAN GP2 GRADING AND DRAINAGE PLAN U1 E. ONEAL AVE. SANITARY SEWER AND WATER PLAN U2 E. ONEAL AVE. SANITARY SEWER AND WATER PLAN U3 SANITARY SEWER AND WATER PLAN U4 SANITARY SEWER AND WATER PLAN S1 SIGNING, STRIPING, AND MARKING PLAN C1 CONSTRUCTION DETAILS C2 CONSTRUCTION DETAILS CD1 CIVIL DETAILS CD2 CIVIL DETAILS CD3 CIVIL DETAILS CD4 CIVIL DETAILS CD5 CIVIL DETAILS CD6 CIVIL DETAILS LANDSCAPE T-1 TITLE SHEET L-1 CONSTRUCTION PLAN L-2 CONSTRUCTION PLAN L-3 PLANTING SOILS PLAN L-4 PLANTING SOILS PLAN L-5 IRRIGATION PLAN L-6 IRRIGATION PLAN L-7 IRRIGATION DETAILS L-8 IRRIGATION DETAILS L-9 IRRIGATION DETAILS L-10 IRRIGATION DETAILS L-11 TREE AND GROUNDCOVER PLAN L-12 TREE AND GROUNDCOVER PLAN L-13 PLANTING PLAN L-14 PLANTING PLAN L-15 PLANTING DETAILS L-16 SPECIFICATIONS L-17 SPECIFICATIONS L-18 SPECIFICATIONS L-19 SPECIFICATIONS L-20 SPECIFICATIONS L-21 SPECIFICATIONS ARCHITECTURAL A1.0 SITE PLAN A1.1 ENLARGED SITE PLAN - DOG KENNELS A1.2 ENLARGED SITE PLAN - ADA PARKING A1.3 SITE DETAILS A2.0 PRIMARY SHELTER - FLOOR PLAN A2.1 PRIMARY SHELTER - CLERESTORY PLAN A2.2 PRIMARY SHELTER - RCP A2.3 PRIMARY SHELTER - ROOF PLAN A2.4 PRIMARY SHELTER - ENLARGED FLOOR PLAN A2.5 RESTROOM FLOOR PLAN A2.6 MODULAR UNIT FLOOR PLANS A2.7 MODULAR LIVING UNIT FLOOR PLAN & RCP - FOR REFERENCE ONLY SHEET INDEX INTERIOR ELEVATION MARKER KEYNOTE DETAIL TARGET DETAIL REFERENCE: DETAIL NUMBER SHEET NUMBER DOOR NUMBER WINDOW NUMBER ELEV NUMBER SHEET NUMBER ELEVATION MARKER ELEV NUMBER SHEET NUMBER SECTION MARKER SECTION NUMBER SHEET NUMBER ROOF / GROUND SLOPE: INDICATES SLOPE AND DIRECTION OF SLOPE & DIRECTION OF VIEW HEIGHT / ELEVATION MARKER NORTH ARROW & DIRECTION OF VIEW & DIRECTION OF VIEW REVISION MARKER ROOM TAG SLOPE X:XX XXX XXX ROOM NAME 100X AX.XX X AX.XXXAX.X
1 2
3 4 X AX.XX
X AX.XX
X
X
1 XXXXX
N ARCHITECTURAL (CONTINUED) A3.0 PRIMARY SHELTER ELEVATIONS A3.1 PRIMARY SHELTER ELEVATIONS A3.2 DOG SHELTER ELEVATIONS A3.3 MODULAR LIVING UNIT ELEVATIONS - FOR REFERENCE ONLY A4.0 PRIMARY SHELTER SECTION A4.1 MODULAR LIVING UNIT SECTIONS - FOR REFERENCE ONLY A5.0 RESTROOM INTERIOR ELEVATIONS A7.0 DOOR SCHEDULES A7.1 WINDOW SCHEDULES A7.2 ASSEMBLY SCHEDULES A7.3 DOOR HARDWARE SPECIFICATIONS A7.4 DOOR HARDWARE SPECIFICATIONS A7.5 DOOR HARDWARE SPECIFICATIONS A8.0 DETAILS A8.1 DETAILS A8.2 DETAILS STRUCTURAL S1.0 GENERAL NOTES S2.0 PRIMARY SHELTER FOUNDATION PLAN S2.1 MODULAR BUILDINGS FOUNDATION PLAN S2.2 MODULAR RESTROOM AND SHOWER FOUNDATION PLAN S2.3 MODULAR LIVING FOUNDATION PLAN S2.4 MODULAR LIVING FLOOR FRAMING PLAN S3.0 MODULAR LIVING WALL FRAMING AND ROOF PLAN - FOR REFERENCE ONLY S5.0 FOUNDATION DETAILS S5.1 FOUNDATION DETAILS S7.0 ROOF FRAMING DETAILS S8.0 WALL FRAMING DETAILS PRE-ENGINEERED METAL BUILDING 1 OF 18 COVER PAGE 2 OF 18 ANCHOR BOLT PLAN & BASE DETAILS 3 OF 18 RIGID FRAME ELEVATIONS 4 OF 18 RIGID FRAME ELEVATIONS 5 OF 18 ROOF FRAMING & SHEETING 6 OF 18 ROOF FRAMING & SHEETING 7 OF 18 ROOF FRAMING & SHEETING 8 OF 18 WALL FRAMING & SHEETING 9 OF 18 WALL FRAMING & SHEETING 10 OF 18 WALL FRAMING & SHEETING 11 OF 18 WALL LINER PANELS 12 OF 18 ROOF AND WALL INSULATION 13 OF 18 ROOF AND WALL INSULATION 14 OF 18 BUILDING DETAILS 15 OF 18 BUILDING DETAILS 16 OF 18 BUILDING DETAILS 17 OF 18 BUILDING DETAILS 18 OF 18 BUILDING DETAILS MECHANICAL M0.0 MECHANICAL LEGEND, SCHEDULES, & NOTES M2.3 MECHANICAL PLAN - MAIN FLOOR PLAN M3.0 MECHANICAL DETAILS M4.0 TITLE 24 DOCUMENTATION M4.1 TITLE 24 DOCUMENTATION PLUMBING P0.0 PLUMBING LEGEND, SCHEDULES, & INDEX P1.0 PLUMBING PARTIAL SITE PLAN - GAS P2.3 PLUMBING PLAN - MAIN FLOOR PLAN P3.0 PLUMBING DETAILS P4.0 PLUMBING DETAILS P4.1 PLUMBING DETAILS ELECTRICAL E0.1 CODES, NOTES & SYMBOLS E0.2 LIGHTING COMPLIANCE E0.3 LIGHTING COMPLIANCE E0.4 POWER COMPLIANCE ES1.1 SITE ELEC. PLAN ES1.2 SITE ELEC. PLAN ES1.3 SITE SIGNALS PLAN ES1.4 ELECTRICAL PLAN E1.1 LIGHTING PLAN E1.2 LIGHTING PLAN E2.1 POWER PLAN E2.2 SIGNALS PLAN E2.3 FIRE ALARM PLAN E2.4 FIRE ALARM PLAN E2.5 FIRE ALARM PLANS E2.6 FIRE ALARM PLANS E2.7 F.A. SYSTEM SPECS E2.8 F.A. RISER DIAGRAM E2.9 FIRE ALARM DETAILS E3.1 ONE LINE DIAGRAM E3.2 DETAILS E3.3 DETAILS E3.4 DETAILS E4.1 PANEL SCHEDULES E5.1 SPECIFICATIONS E5.2 SPECIFICATIONS E5.3 SPECIFICATIONS E5.4 SPECIFICATIONS E5.5 SPECIFICATIONS FIRE FS-1 COVER SHEET W/ DETAILS FS-2 SITE HYDRAULIC PLAN FS-3 FIRE SPRINKLER PIPING PLAN SHEET INDEX CONTINUED

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July 17, 2024
Mr. Bryan Cahill
Project Manager
City of Tulare
411 E. Kern
Tulare CA 93274
Subject: Proposal for CM Services for the Emergency Homeless Shelter Project Mr. Cahill,
CCME is pleased to propose the following services for the Emergency Homeless Shelter Project.

Project Description
Provide construction manager services including construction observation, and contract administration for the Emergency Homeless Shelter Project.

CCME, Inc. (CCME) will provide a Construction Manager during the contract period.

CCME will oversee the construction observations and major contract items such as construction change orders and claims on behalf of the City.

The Construction Manager shall be responsible for coordination with the City of Tulare and shall act as the key point of contact with the City. The Construction Manager shall also be responsible for coordination with the Contractor and any other third Parties.

CCME’s tasks and deliverable in performance with this task order will be as follows:

A. Preconstruction Services
A.1 Preconstruction Documentation
CCME will photograph, measure, document and identify any potential issues with the project.

Deliverables:

1. Preconstruction Documentation
A.2 Pre-construction Meeting
CCME will schedule and lead a pre-construction meeting with the contractor and the City as well as the designer and any third parties deemed necessary by the City. This meeting will be used to establish managerial and administrative procedures with the contractor to ensure efficient startup and execution of the project.

Deliverables:

1. Pre-construction Meeting Agenda

2. Pre-construction Meeting Minutes
B. During Construction Services
B.1 Project Documentation and Administration
CCME will document, review, log and provide construction contract administration for all correspondence and communication with the contractor during the construction contract.

This includes; Document control consistent with Caltrans requirements, assisting the city in schedule review, submittal and request for information (RFI) management, issuing weekly statement of working

8.3 General Business Page 20 ATTACHMENT 4
days, change order management, monthly payment review and estimates, and potential claim management.

Deliverables:

1. Project files

2. Submittal log and submittal reviews if appropriate

3. RFI log and RFI responses if appropriate

4. Weekly Statement of Working Days

5. Change order log and change order drafts

6. Monthly pay estimate summary and quantity backup sheets

7. Potential claim log and potential claim responses if appropriate B.2 Progress Meetings
CCME will attend and lead weekly (or as frequent as necessary) construction progress meetings with the Contractor, the City and any third parties deemed necessary by the City. The intent of these meetings is to keep the project on schedule by identifying, discussing, and solving potential issues before or as they arise.

Deliverables:

1. Weekly Meeting Agenda

2. Updated CCO, RFI and Submittal logs for discussion

3. Meeting Minutes
B.3 Communication and Integration with City Staff
CCME will be the focal point of all communications for the project coordinating all aspects of the work.

CCME will act as a liaison between all members of the project and report directly to the City project manager and any other City staff assigned to the project.

B.4 Construction Observation and Field Inspection
CCME will monitor the construction quality for the project. We assure this quality through observation, inspection, and documentation of the contractor’s work.

Deliverables:

1. Daily inspection reports

2. Nonconformance notifications to the contractor

3. Records of measurement of performed work

4. Progress Photos
B.5 Materials Testing
CCME will coordinate with and schedule the City’s materials testing lab. CCME will review all test results.

C. Post Construction Services
C.1 Punchlist and Acceptance
CCME will prepare a punch list of any unfinished or item work that needs to be addressed by the contractor. CCME will communicate these items to the contractor and once they are complete CCME will recommend to the City that they accept the project. Once the City accepts the project and the contractor submits their warranty letter CCME will assist the City in issuing a notice of completion to the contractor.

C.2 Final Payment Request
CCME will prepare the proposed final pay estimate after the project has been accepted. After the Contractor reviews and accepts the final estimate CCME will prepare and issue the final payment documentation. If the Contractor objects to the final estimate, we will assist the City in negotiating final settlement with the Contractor and process the final estimate.

C.3 As-Builts

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CCME will mark any as-built documentation on a final set of contract documents as well as collect any as built documentation from the Contractor. CCME will compile all as-built information into one complete set of documents for the City to preserve for future use.

C.4 Final Reports
CCME will assist the City with completing the necessary final reports.

COMPLETION SCHEDULE
CCME shall be bound by this agreement from the start of preconstruction services until completion of the project which is expected by Spring of 2026.

If the City Project Manager requires additional Construction Management services above the value established in the attached fee estimate; or the Construction Contract exceed those allowed for in the attached fee estimate, CCME can remain onsite to provide continuous Construction Management services. However, these services shall be considered as additional services, are above and beyond the scope and fee estimate of this agreement and shall be paid on a cost-plus fixed fee basis as set forth by the appropriate hourly rates shown in the attached fee estimate.

FEE SCHEDULE
Compensation to provide Construction Management services required for the construction observation and administration for the subject construction project as detailed in this agreement, for the time periods discussed in the previous section throughout the duration of the contract, shall be on a time and materials basis for the necessary personnel and reimbursables at the rates included herein for a not to exceed amount of $347,600.

Classification Name Estimated Hrs. Hourly Rate Subtotal Resident Engineer Bryan Kroeger 80 $250 $20,000
Construction Manager Edward Rangel 1560 $210 $327,600
Total= $347,600
Sincerely,
Bryan Kroeger, PE
President

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PROJECT MANAGER(s):

PROJECT DESCRIPTION & PURPOSE:

KEY POINTS:

PROJECT STATUS:

PROJECTED START DATE:

PROJECTED END DATE:

CRITERIA (1-8):

To Date Remaining Year 2024/2025 2025/2026 2026/2027 2027/2028 010 - Conceptual $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 020 - Temporary Encampment $706,583.14 $479,962.14 $0.00 $510,000.00 $0.00 $0.00 $0.00 $1,696,545.28 0600 - Construction/Labor & Materials $349,025.22 $479,962.14 $0.00 $510,000.00 $0.00 $0.00 $0.00 $1,338,987.36 0610 - Property Acquisition $355,814.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $355,814.00 0996 - Project Management Time $326.65 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $326.65 0998 - Dev Srvcs Time $1,417.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,417.27 030 - Environmental $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0200 - Development Services Time $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 040 - Final Design $311,136.51 $189,406.63 $0.00 $926.42 $0.00 $0.00 $0.00 $501,469.56 0200 - Professional Services/Consultant $303,106.00 $179,554.95 $0.00 $0.00 $0.00 $0.00 $0.00 $482,660.95 0996 - Project Management Time $3,750.82 $5,849.24 $0.00 $0.00 $0.00 $0.00 $0.00 $9,600.06 0998 - Development Services Time $4,279.69 $4,002.44 $0.00 $926.42 $0.00 $0.00 $0.00 $9,208.55 050 - Construct/Impliment $91.30 $1,128,496.43 $0.00 $11,115,628.70 $0.00 $0.00 $0.00 $12,244,216.43 0203 - Construction Management $0.00 $0.00 $0.00 $347,600.00 $0.00 $0.00 $0.00 $347,600.00 0204 - Materials Testing $0.00 $0.00 $0.00 $48,745.00 $0.00 $0.00 $0.00 $48,745.00 0205 - Labor Compliance $0.00 $0.00 $0.00 $30,600.00 $0.00 $0.00 $0.00 $30,600.00 0210 - Attorney $0.00 $0.00 $0.00 $4,000.00 $0.00 $0.00 $0.00 $4,000.00 0224 - Surveyor $0.00 $0.00 $0.00 $56,700.00 $0.00 $0.00 $0.00 $56,700.00 0600 - Construction/Labor & Materials $0.00 $0.00 $0.00 $9,440,000.00 $0.00 $0.00 $0.00 $9,440,000.00 0601 - Construction Costs Modular Building $0.00 $1,112,582.48 $0.00 $0.00 $0.00 $0.00 $0.00 $1,112,582.48 0996 - Project Management Time $91.30 $12,546.79 $0.00 $169,920.00 $0.00 $0.00 $0.00 $182,558.09 0998 - Development Services Time $0.00 $0.00 $0.00 $7,552.00 $0.00 $0.00 $0.00 $7,552.00 0999 - Contingency $0.00 $3,367.16 $0.00 $1,010,511.70 $0.00 $0.00 $0.00 $1,013,878.86 060 - Close Out $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Costs: $1,017,810.95 $1,797,865.20 $0.00 $11,626,555.12 $0.00 $0.00 $0.00 $14,442,231.27 $0.00 Costs Description Prior Fiscal Years
Fiscal Year 2023/2024 Future Fiscal Years
Total Unfunded
Underway
7/1/2022
9/30/2025
FUTURE M & O:
(Additional Cost & Department Responsibility)
Additional funds will be required to operate the shelter.

Criteria 2: Project addresses regulatory, safety, or environmental requirements that more likely than not threatens in whole or in part the City's ability to operate a core program or function within the next fiscal year if not replace or repaired.
(Capital)
District(s): 1, 2, 3, 4, 5
Marc Mondell, Michael Miller, Bryan Cahill
Construct an emergency homeless shelter facility consisting of perimeter fencing, parking, exterior lighting, modular office building, restroom and shower facilities (trailers), modular classrooms, food pantry, laundry, modular housing units, storage containers, dog kennels, and 20,000 SF steel building primary shelter structure.

ARPA -"Category 2" Eligable - Addresses negative economic impacts caused by the public health emergency.
2023 - 2028 CIP Administrative
PROJECT #: FM0048
Homeless Shelter
(Capital)
17 8.3 General Business Page 35 ATTACHMENT 8
To Date Remaining Year 2024/2025 2025/2026 2026/2027 2027/2028 Fund 028 - ARPA Federal Grant $0.00 $685,282.72 $0.00 $1,314,717.28 $0.00 $0.00 $0.00 $2,000,000.00 $0.00 Fund 601 - Other General Fund CIP $1,017,810.95 $0.00 $0.00 $6,135,220.32 $0.00 $0.00 $0.00 $7,153,031.27 $0.00 Fund XXX - County Contribution (ARPA) $0.00 $0.00 $0.00 $500,000.00 $0.00 $0.00 $0.00 $500,000.00 $0.00 Fund XXX - FY23 CPF Federal Earmark $0.00 $0.00 $0.00 $1,500,000.00 $0.00 $0.00 $0.00 $1,500,000.00 $0.00 Fund XXX - ERF Round 2 Grant $0.00 $1,112,582.48 $0.00 $176,617.52 $0.00 $0.00 $0.00 $1,289,200.00 $0.00 Fund XXX - FY25 CPF Federal Earmark $0.00 $0.00 $0.00 $2,000,000.00 $0.00 $0.00 $0.00 $2,000,000.00 $0.00 Total Funding: $1,017,810.95 $1,797,865.20 $0.00 $11,626,555.12 $0.00 $0.00 $0.00 $14,442,231.27 $0.00 G/L #'s:

Notes:
028-4145-6213, 601-4601-7301
09/17/24 - Construction Contract award update. 050-0600 includes $500k County ARPA purchases. 050-0601 includes modular village unit purchase.

Funding Sources Prior Fiscal Years
Fiscal Year 2023/2024 Future Fiscal Years
Total Unfunded
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