Agenda packet — Ukiah City Council, January 19, 2022 (part 5 of 7)

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Clean California LocalGrant Program
Program Guidelines
Contents
Clean California Local Grant Program Overview ..................................................... 3 Background ............................................................................................................... 3 Budget........................................................................................................................ 3 Goals........................................................................................................................... 3 Schedule .................................................................................................................... 4 Eligibility.......................................................................................................................... 4 Eligible Applicants ..................................................................................................... 4 Eligible Project Types................................................................................................. 4 Example Projects.................................................................................................... 5 Eligible Project Area .................................................................................................. 5 Eligible Activities and Expenses................................................................................ 6 Ineligible Activities and Expenses ............................................................................ 7 Selection Criteria........................................................................................................... 7 Underserved Communities....................................................................................... 8 Other Selection Considerations ............................................................................. 10 Local Match Requirement......................................................................................... 10 Calculating SOD of the Community Surrounding the Project and Local Match Requirement ............................................................................................................ 11 Local Match Sources .............................................................................................. 14 Payment Process......................................................................................................... 14 Advance Payment Process.................................................................................... 15 Conditions............................................................................................................. 16 Additional Conditions.......................................................................................... 16 Advance Payment Requests.............................................................................. 18 Project Application Process....................................................................................... 18 Conflict of Interest ................................................................................................... 19 Scoring Criteria ........................................................................................................ 19 1 Attachment 1

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1. Narrative...................................................................................................... 20

2. Project’s Population Benefit (PB) to Overall Community........................ 22

3. Project’s Relative PB to Underserved Communities................................ 23

4. Demonstrated Community Need............................................................. 23

5. Project’s Outcomes Assessment ............................................................... 24

6. Scope, Cost, and Schedule ...................................................................... 24 Appendix A.0. Example Calculations to Determine Required Local Match for a Appendix A.2. Definition of the Project’s Relative Population Benefit (PB) Appendix A.3. Forms for Calculating Population Benefit (PB) (Overall) and Appendix A.4. Example PB (Overall) and Relative PB (Underserved Communities) Other Attachments.............................................................................................. 24 Project Award Process................................................................................................ 24 Grant Agreement Processing .................................................................................... 25 Grant Project Administrative Requirements............................................................. 25 Sub-contracts .......................................................................................................... 25 Financial Requirements .......................................................................................... 25 Accounting Requirements.................................................................................. 25 Audits and Investigations .................................................................................... 26 Reporting.................................................................................................................. 26 Project Photos.......................................................................................................... 26 Project Amendments .............................................................................................. 27 Program Evaluation .................................................................................................... 27 Fictitious Project........................................................................................................... 28 Appendix A.1. Definition of the Project’s Population Benefit (Overall) ................. 32 (Underserved Communities)...................................................................................... 33 Relative PB (Underserved Community) .................................................................... 34 Calculations Performed for a Fictitious Project........................................................ 42 Appendix B1. Demonstrated Community Need Assessment Form ....................... 49 Appendix B2. Project’s Outcomes Assessment Form .............................................. 55 Appendix B3. Example of Forms B1 and B2 Completed for a Fictitious Project ... 61 2

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Clean California Local Grant Program Overview
Background
The Clean California Local Grant Program (CCLGP) is a competitive statewide program created to beautify and clean up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. Assembly Bill 149 (Sec.16) created the CCLGP of 2021 and was codified under Streets and Highway Code §91.41 et al. The Program is one part of the nearly $1.1 billion Clean California initiative that takes direct aim at the continuous trash generation that has overwhelmed California Department of Transportation (Caltrans) and its partners. Other parts of the Clean California initiative include litter abatement efforts, state beautification and safety projects, and public education campaigns. Significant investments in time and resources are needed to collect, recycle, and dispose of litter and hazardous waste.

These guidelines describe the policies, criteria, and procedures for the development, adoption, and management of the CCLGP. The guidelines were developed in consultation with representatives from Caltrans and through public workshops that included participation from local government agencies, transit agencies, and tribal governments, among other stakeholders.

Budget
The program is funded by $296 million dollars in fiscal year 2021/22 General Fund money. All projects must be completed and all funds must be expended by June 30, 2024.

Each grant award shall not exceed five million dollars ($5,000,000). There is no minimum award.

Goals
Pursuant to statute, the intent of the CCLGP is to achieve the following goals:
(1) Reduce the amount of waste and debris within public rights -of -way, pathways, parks, transit centers, and other public spaces. (2) Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect. (3) Enhance public health, cultural connections, and community placemaking by improving public spaces for walking and recreation. (4) Advance equity for underserved communities.
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Schedule
The following schedule lists the major milestones for the CCLGP. Visit https://cleancalifornia.dot.ca.gov/local-grants for the most up-to-date information, including the forthcoming final dates for application workshops #4 and #5. Also note that no action is needed from applicants at the Call for Projects Announcement. On this day, final program documents will be released for applicants to view.

Grant Program Timeline
Milestone Date
Public Workshop #1 September 1, 2021
Public Workshop #2 October 7, 2021
Application Workshop #3 November 18, 2021
Call for Projects Announcement December 1, 2021
Application Workshop #4 Mid-December 2021
Application Workshop #5 Mid-January 2022
Project Application Deadline February 1, 2022
Project Award Notification March 1, 2022
Date by when projects must be
completed and all funds expended. If
the project involves infrastructure
components, all components must be
opened to the public and all funds
expended by this date.

June 30, 2024
Date by when final invoicing and
project closeout must be complete. December 31, 2024
Eligibility
Eligible Applicants
The applicant must be a local or regional public agency, transit agency, or federally recognized tribal government. Nonprofit organizations may partner with eligible applicants, as sub-applicants.

Eligible Project Types
Eligible projects meet the goals of the CCLGP and may include, but not be limited to:
• Infrastructure related community litter abatement and beautification projects.
• Non-infrastructure related community litter abatement events and/or educational programs.
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Example Projects
• Beautification and placemaking of existing public spaces, including but not limited to:
o Community park space/public space.
o Transit centers.
o Park-and-ride facilities.
o Viaducts, underpasses, or overpasses.
• Educational campaigns or community events about litter abatement, proper waste disposal or how to get involved with doing sanctioned artwork in a community.
• A combination of project types, including beautification and educational projects.

Eligible Project Area
The location of the projects within the CCLGP are determined by the applicant.

It is recommended that projects are accessible by a multimodal transportation network. Eligible project locations may include projects located on local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces.

Projects that encroach on Caltrans right-of-way are allowed; however, the applicant must demonstrate that all necessary right-of-way clearances, encroachment permits, and other permits can be obtained, and the project completed, by June 30, 2024. For more information on Caltrans Encroachment Permits, including contact information for local District Encroachment Permit Offices, see https://dot.ca.gov/programs/traffic-operations/ep.

Art projects on Caltrans right-of-way also need to complete and abide by the Caltrans’ Transportation Art Process. This includes:
• Separate approval by the Caltrans Transportation Art program. • Artwork ownership, including copyrights, assigned to Caltrans, with rights licensed back to the artist.
• Waiver of moral rights (California Civil Code § 987). • Adhering to Transportation Art content restrictions.
• Maintenance plan/funding (i.e. graffiti abatement).

See Caltrans’ Transportation Art Guidelines for Local Agencies and the Transportation Art Proposal for details. Gateway Monuments and Community Identification projects on Caltrans right-of-way entail separate processes and requirements.
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Eligible Activities and Expenses
Eligible activities must meet CCLGP goals. Examples of eligible features within the project area include:
• Enhanced paving to address the needs of the space, using permeable pavements where possible.
• Pavement alternatives, such as wood chips.
• Inert material, such as rubberized pavement.
• Shade structures.
• Shade trees or drought-tolerant plantings.
• Irrigation systems.
• Bioretention, swales, and other green street elements. • Architectural fencing.
• Art installations, including community identification or cultural elements.

An art installation should:
o Be appropriate and safe to its proposed setting.
o Be in proper scale with its surroundings.
o Be composed of materials that are durable for the projected lifespan.
o Include graphics or sculptural artwork that express unique attributes of an area’s history, resources, or character.
o Not display symbols or icons, including but not limited to, logos or political and commercial symbols. Sponsor recognition should be unobtrusive, discreet, and not appear to be an integral part of the artwork.
o Not display text.
o Be designed to minimize ongoing maintenance needs.
• Gateway Monuments and Community Identification projects. If these are on Caltrans right-of-way, they have different requirements than art installations.
• Human-scale, energy-conserving lighting.
• Walking and/or biking facilities through the space.
• Wayfinding signage.
• Amenities related to proper waste collection or prevention (e.g., signage, bins, etc.).
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• Seating and play equipment.
• Public bathrooms and water fountains.
• Travel Expenses: Grant recipients may be eligible to claim travel expenses if they have been approved in the scope, cost, and schedule included in the grant agreement. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Personnel Administration for similar employees (i.e. non-represented employees). For more information on eligible travel expenses, visit the Caltrans Travel Guide Website.

Ineligible Activities and Expenses
Some activities or project components are not eligible for reimbursement under this grant program. If an application has any of the following elements and is seeking reimbursement for any of them, it will be disqualified.

Ineligible activities and expenses include:
• Displacing people experiencing homelessness.
• Acquisition of rights-of-way or land.
• Work performed prior to or after the execution of the grant agreement. • Acquisition of vehicles or shuttle programs.
• Other items unrelated to the project or CCLGP goals.
• Maintenance of a project improvement for this grant agreement is not a reimbursable expense (however it can be an in-kind contribution if it occurs prior to June 30, 2024).
• Other activities that extend beyond June 30, 2024.

Selection Criteria
Selection criteria focuses on demonstrated benefits and needs including, but not limited to:
• Demonstrated need of the applicant and ability to achieve the program’s goals.
• Demonstrated enhancement and beautification of a public space(s), including improved access to the space.
• Enhanced greening to provide shade, reduce the urban heat island effect, and use native, drought-tolerant plants.
• Abatement of litter and debris to improve access and use of public space(s).
• Public engagement that reflects community priorities and is consistent with local or regional plans such as General Plans, Improvement Plans, 7

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bicycle and/or pedestrian plans, and complete street plans. The project should also align with the public outreach that occurred during the preparation of these plans.
• Identification of the population benefit, including to underserved communities. Projects that demonstrate a benefit to an underserved community, either directly or indirectly, will be more competitive. For these projects, applicants must explain which underserved community is benefited, how the project benefits that community, and the percentage of the work and budget that benefits that community.
• Project deliverability, in which projects are open to public and/or all funds are expended by June 30, 2024.

Underserved Communities
No less than 50 percent of the CCLGP funds are to fund projects that benefit underserved communities. An eligible project should clearly demonstrate a benefit to an underserved community or be directly located in an underserved community.

The definition for these communities may include disadvantaged and lowincome communities, as defined in Sections 39711 and 39713 of the California Health and Safety Code, or another metric with verifiable information that identifies underserved communities. To qualify, the community served by the project must meet at least one of the following criteria:
• Option 1. Area Median Income: Is less than 80% of the statewide median based on the most current Census Tract level data from the 2019 American Community Survey 5-Year Estimates (<$60,188). Communities with a population less than 15,000 may use data at the Census Block Group level. Unincorporated communities may use data at the Census Place level. Data is available at the United States Census Bureau Website. • Option 2. CalEnviroScreen: An area identified as among the most disadvantaged 25% in the state according to the CalEPA and based on the California Communities Environmental Health Screening Tool 3.0 (CalEnviroScreen 3.01) scores (score must be greater than or equal to

39.34). The mapping tool can be found here and the list can be found under “Background: SB 535 Identification of Disadvantaged Communities (2017).”
1 During the development of these guidelines, the final CalEnviroScreen 4.0 was released. Since the SB 535 List of Disadvantaged Communities based on CalEnviroScreen 4.0 is in draft at time of writing, applicants should use CalEnviroScreen 3.0 rather than 4.0. 8

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• Option 3. National School Lunch Program: Based on pre-pandemic data2, at least 75% of public-school students in the project area are eligible to receive free or reduced-price meals under the National School Lunch Program. Data is available at the California Department of Education website.
• Option 4. Healthy Places Index: The Healthy Places Index includes a composite score for each census tract in the State. The higher the score, the healthier the community conditions, based on 25 community characteristics. The scores are then converted to a percentile to compare a census tract to other tracts in the State. A census tract must be in the 25th percentile or less to qualify as a disadvantaged community. The live map and direct data can both be found on the California Healthy Places Index website.
• Option 5. Native American Tribal Lands: The project is located within or partially within:
o Federally Recognized Tribal Lands (typically within the boundaries of a Reservation or Rancheria),
o Lands owned by or held in trust for an Indian tribe,
o Allotted lands, and/or
o Sensitive tribal areas (which might include areas in which a Native American Tribe has a significant interest, such as traditional cultural properties and sacred sites).
• Other: If the project will benefit an underserved community, but the project does not meet any of the criteria above, other means of qualifying may be submitted with the application for consideration as Attachment J in Section 3.1 of the application, “ATTACHMENTS”.

Suggested alternative assessment methods that can be submitted under this category include:
o Census data that represents a small neighborhood or
unincorporated area. Submit a quantitative assessment, such as a survey, to demonstrate that the community’s median household income is at or below 80% of the state median household income. o CalEnviroScreen data that represents a small neighborhood or unincorporated area. Submit an assessment to demonstrate that the community’s CalEnviroScreen score is at or above 39.34. 2 During the development of these guidelines, the National School Lunch Program started offering free lunches to all students. Thus, if an applicant still wants to use this option, it is recommended that pre-pandemic data be used.
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o A regional definition such as “environmental justice communities” or “communities of concern,” which must be stratified based on severity. It must also be based on a robust public outreach process that includes community stakeholder input. A regional definition of underserved communities must be used for the region’s broader planning purposes. It must be adopted as part of a regular 4-year cycle adoption of a Regional Transportation Plan (RTP)/Sustainable Communities Strategy (SCS) by a Metropolitan Planning
Organization (MPO) or Regional Transportation Planning Agency (RTPA), per obligations with Title VI of the Federal Civil Rights Act of 1964.

If you chose to define a community as underserved using a criterion other than one of the 5 options listed above, you must submit your criterion and justification for consideration as Attachment J in the application.

Other Selection Considerations
The State may consider additional factors in its selection decisions. These include, but are not limited to, the geographic distribution of awards, willingness to accept partial funding, and quality of the maintenance plan (which is not required for educational programs). The State may also consider the responsiveness and responsibility of the applicant, based on data such as previous performance on other grant programs.

Local Match Requirement
Required local match is the minimum percentage of the project’s funding the applicant commits to provide as a condition of accepting a program grant.

The required local match will range from 0% (i.e., no local match required) to 50%. The percentage is determined based on the “severity of disadvantage” (SOD) of the community surrounding the project. The community surrounding the project is defined as all census tracts within a ¼ mile radius of the project site (or sites, if there are multiple locations.) The required local match will decrease as the SOD of the surrounding community increases. The SOD of the surrounding community is defined below and the relationship of the SOD to percent required local match can be found in Table 2, Severity of Disadvantage and Corresponding Local Match Requirement. Tribal Communities that qualify per Option 5 on Table 2 require zero local match.

Applicants will be held responsible for any local commitments at or above their minimum local match requirement as part of their grant agreement with Caltrans.
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Calculating SOD of the Community Surrounding the Project and Local Match Requirement
How to calculate the SOD and the local match percentage is described below.

The calculation forms must be submitted with the application as part of Attachment I.

SOD of
surrounding = Weighted average of the SODs of the surrounding census tracts. community
= Sum [(Pop. CT 1 x metric score CT 1) + (Pop. CT 2 x metric score CT 2) + (Pop. CT N x metric score CT N…)] Sum(Pop. CT 1 + Pop. CT 2 + Pop. of CT N…)
Where:
• Pop. CT = Population of a census tract within a ¼ mile radius of the project site or sites. • Metric Score = The underserved community score of a census tract is determined using one of the allowable 5 options listed in Table 2 of the guidelines.

When calculating SOD, the metric score of all census tracts must be determined using the same option. The 5 options are detailed above in the section “Underserved Communities”. If the community surrounding the project is considered underserved using multiple options, choose the option that best supports the community’s status as underserved.
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Table 1. SOD of Community Surrounding the Project Site(s) List the Option Used to Determine SOD:
(For definitions of each of the 5 options, see the
section “Underserved Communities”.)
Location Relative to
Project Site(s)
(1)
Census Tract
Number
(2)
Census Tract
Population
(3)
Metric Score of
Census Tract
using the
chosen option
listed above.
(4)
SOD of
Tract
(3) x (4)
(5)
1 Project Site A
2 Within a ¼
mile radius.
3 Within a ¼
mile radius.
4 Within a ¼
mile radius.
5 Project Site B
6 Within a ¼
mile radius.
7 Within a ¼
mile radius.
8 Within a ¼
mile radius.

TOTALS
SOD of Community Surrounding the Total of Column 5
= = Project Total of Column 3
An example of a completed Table 1 is in Appendix A.0.

Determine Required Local Match
Use the SOD of the community surrounding the project calculated above, and Table 2 below, to determine the required local match for your project. 12

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Table 2. Severity of Disadvantage and Corresponding Local Match Requirement SOD Criteria Ranges for SOD of Community
Surrounding the Project
Required Local Match
%
Option 1: Area Median Income (AMI) compared to Statewide Median Income (SMI)* Data: Census Tract Level Data from the 2019 American Community Survey 5-year (ACS5) Estimates
If the AMI SOD of the
surrounding
community is…
> $60,188
Then local
match is…
50 $56,426 to $60,188 37.5
$52,665 to $56,425 25
$48,903 to $52,664 12.5
< $48,903 0
Option 2: CalEnviroScreen 3.0 Percentile Score
Data: SB 535 List of Disadvantaged Communities or SB 535 Disadvantaged Communities Map If the CalEnviroScreen

3.0 SOD of the
surrounding
community is…
< 39
Then local
match is…
50 39 to 42 37.5
43 to 46 25
47 to 50 12.5
> 50 0
Option 3: Percentage of Students that Receive Free or Reduced Lunches** Data: California Department of Education website
If the Free Lunch SOD
of the surrounding
community is…
< 75
Then local
match is …
50 75 to 79 37.5
80 to 84 25
85 to 89 12.5
> 90 0
Option 4: Healthy Places Index (HPI) Score (use overall HPI score only) Data: California Healthy Places Index website
If the HPI SOD of the
surrounding
community is…
> 25
Then local
match is…
50 21 to 25 37.5
16 to 20 25
10 to 15 12.5
< 10 0
Option 5: Tribal Communities
Data: List of Federally Recognized Tribal Governments in California If the project applicant or sub-applicant is a Federally Recognized Tribal Government or the project area is located within (or partially within) Federally Recognized Tribal Lands (typically within the boundaries of a Reservation or
Rancheria), lands owned by or held in trust for an Indian tribe, allotted lands, and/or sensitive tribal areas (which might include areas in which a Native American Tribe has a
significant interest such as traditional cultural properties and sacred sites).

Then the local
match is…
0 *Communities with a population less than 15,000 may use data at the Census Block Group level. Unincorporated communities may use data at the Census Place level.
**During the development of these guidelines, the National School Lunch Program started offering free lunches to all students. Thus, if an applicant still wants to use this option, it is recommended that pre-pandemic data be used. 13

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Local Match Sources
The local match can be all cash, all third-party in-kind contributions, or a combination of the two:
• Cash Match
o Revenue sources for local cash match can include local sales tax, special bond measures, private donations, or private foundation contributions, among other sources. If federal funding is a source for local cash match, the entire project must comply with all federal requirements, which may affect the project schedule. Check the federal program guidelines for details.
o Staff time from the primary applicant can be counted as cash match. However, staff time charged to a specific project that has already been funded and/or reimbursed cannot be used to meet the match requirement for a Clean CA project.
• Third-Party In-Kind Match
o Third party in-kind contributions are typically goods and services donated from outside the primary applicant’s agency. Examples include the value of donated:
 Plants/trees.
 Art resources (e.g., materials, labor, supplies).
 Equipment and materials.
 Volunteered time from stakeholders.
 Other goods and services.
o Maintenance activities related to the project if these occur prior to June 30, 2024.
o If third party in-kind contributions are used to satisfy the local match requirements, all of them must be itemized in the application. If a project is awarded funds, as part of the grant agreement, the grant recipient will be asked to provide letters of commitment from each third-party contributor detailing what services are included with the match and a commitment to reaching the project completion date of June 30, 2024.

Payment Process
For an item to be eligible for payment, the primary use or function of that item must meet the program goals and be consistent with the approved grant scope and budget as well as applicable cost principles. Payments will be made by reimbursement unless advance payment is requested and approved. 14

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The CCLGP is primarily a reimbursement program for eligible costs incurred. An implementing agency may begin incurring eligible costs upon execution of a grant agreement with Caltrans as well as receipt of notice to proceed from Caltrans.

Applicants may request advance payment. Requests must be included in the project application and include a justification to support the request, as detailed in the Advance Payment Process section.

Caltrans may provide funding directly to federally recognized Tribal governments, but only if a Tribal government is willing to grant a limited waiver of sovereign immunity for the purposes of their CCLGP project and for the duration of the project. As an alternative to waiving sovereign immunity, Tribal governments may consider applying as a sub-applicant through partnership with a public or transit agency.

If requesting reimbursement for indirect costs, grant recipients must have an approved Indirect Cost Allocation Plan/Indirect Cost Rate Proposal (ICAP/ICRP) agreement with Caltrans, or the grant recipient’s cognizant agency, to be reimbursed. A “cognizant” agency is the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals.

An approved indirect cost rate must be included in the grant agreement. If the agency does not have a current ICAP/ICRP with Caltrans or its cognizant agency, it must submit an ICAP/ICRP request in accordance with the options and submission processes found on the following webpage:
https://ig.dot.ca.gov/resources. Agencies can also e-mail ICAP[email protected]. The ICAP/ICRP documentation must be submitted with the work plan if the agency is claiming indirect costs.

For non-infrastructure projects, indirect cost rates are limited to what is approved by Caltrans or the cognizant agency. For infrastructure projects, per the Caltrans Local Assistance Procedures Manual, the total cost for Construction Engineering (CE) should not exceed 15% of the construction costs and all costs over that must be shown in the application as non-participating.

Advance Payment Process
As described in State statute, Caltrans may authorize advance payments necessary for projects funded by the CCLGP. This is consistent with the Legislature’s direction to expeditiously award and disburse grants. Specifically, the Department, in its sole discretion, may provide advance payments of grant awards in a timely manner to support program initiation and implementation, with a focus on mitigating the constraints of modest reserves and potential cash flow problems. In considering whether to apply for an advance payment, the 15

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applicant acknowledges that the Advance Payment guidelines contained herein are solely for the purposes of the CCLGP.

Conditions
Recognizing that appropriate safeguards are needed to ensure grant moneys are used responsibly, the Legislature has outlined the grant conditions described below to establish control procedures for advance payments. Accordingly, the Department may provide advance payments to grant applicants of the CCLGP only if the Department determines, pursuant to SHC Section 91.41(e), that all the following conditions are met:
a. The grant applicant for an advance payment is a public agency. b. The grant applicant requests an advance payment in its initial grant application.
c. The project or project component for which the advance payment is requested is well defined and can be delivered by an agreed upon date. d. The grant applicant has a record of good financial management and has not been sanctioned by any state or federal agency.
e. Upon request of the department, the grant applicant offers sufficient capital, as determined by the Department, as security for an advance payment.
f. Upon request of the department, the grant applicant provides a finding approved by its governing body that demonstrates a financial need for an advance payment pursuant to the program to deliver the project.

Additional Conditions
In evaluating a grant applicant’s request for advance payment, the Department has established the following additional conditions of award.

Advance Payment Amounts
A grant applicant may request one advance payment equal to the anticipated project cost for the first four months of the project, as described in the project schedule, budget, and spending plan. The advance payment may not exceed 30% of the grant award or $1,000,000, whichever is smaller.

General Conditions
a. The advance payment is necessary immediately to meet the purposes of the grant project.
b. Only one advance payment, at the beginning of the project, will be awarded.
c. The use of the advance funds is adequately regulated by project budgetary controls.
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d. The grant applicant provides a finding approved by its governing body that demonstrates the financial need for an advance payment. e. The grant applicant has no outstanding financial audit findings related to any of the moneys eligible for advance payment and is in good standing with the Franchise Tax Board and Internal Revenue Service. f. The grant applicant agrees to revert all unused moneys to the Department if they are not expended within the timeline specified in the grant agreement.
g. The grant applicant assumes legal and financial risk of the advance payment.
h. In the event of nonperformance by the grant recipient, the Department shall require full recovery of all disbursed moneys. A grant recipient shall provide a money transfer confirmation within 60 days upon the receipt of a notice from the Department.

Fiscal Administration
a. The grant applicant shall indicate its request for advance payment on the initial application. A spending plan shall be submitted with the application.

1. The spending plan shall include project schedules, timelines, milestones, and the grant recipient’s fund balance for all state grant programs applied to the project.

2. The grant recipient will report to the Department any material changes to the spending plan within 30 days of identification of the change.
b. The grant applicant shall submit an updated spending plan along with an Advance Payment Invoice to the Department for review prior to receiving the advance payment.
c. The grant recipient shall submit requests for reimbursement packages monthly3, commencing at the conclusion of the first full calendar month of project implementation. Reimbursement packages shall include supporting documentation for all expenditures including, but not limited to, receipts, invoices, and timesheets.
d. The advance payment will be closed out at the end of the project, with final reimbursement packages satisfying all advance funds. Any funds not accounted for shall be returned to the Department.
e. The grant recipient shall place funds advanced under this section in an interest-bearing account. The grant recipient shall track interest accrued 3Note, projects that do not request Advance Payments may submit invoices no more frequently than monthly and no less frequently than quarterly. See the section Accounting Requirements for details.
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on the advance payment. Interest earned on the advance payment shall be used for eligible grant-related expenses as outlined in Eligible Activities and Expenses, or returned to the Department.
f. The grant recipient shall report to the Department the value of any unused balance of the advance payment and interest earned, and submit quarterly fiscal accounting reports consistent with the provisions in the CCLGP Grant Agreement.
g. The grant recipient shall remit to the Department any unused portion of the advance payment and interest earned at project close-out.

Advance Payment Requests
a. The Department will advance one payment from the total grant award after the grant recipient submits the following to the Department:
i. A fully executed Grant Agreement;
ii. Advance Payment Invoice (to be provided by the
Department); and
iii. Updated Spending Plan that includes project schedules, timelines, milestones, and the grant recipient’s fund balance for all fund sources applied to the project.
b. The grant recipient must email the completed Advance Payment Invoice and Spending Plan to the Department Grant Coordinator. The invoice shall include the secured digital signature of a person legally authorized to sign.
c. Advance grant payments are subject to the Department’s approval of the Advance Payment Invoice and Spending Plan.
d. Quarterly reports must substantiate grant costs incurred as discussed in the Reporting section for which the Advance Payment was utilized.

Project Application Process

1. Applications, including the supporting documentation, are submitted online:
a. Access to the application and other required templates are available on the CCLGP website,
https://cleancalifornia.dot.ca.gov/local-grants.
b. No hardcopy applications will be accepted.

2. Project Proposals are reviewed and evaluated:
a. Caltrans subject matter experts, with district representation, conduct a review of all applications for eligibility, submission of proper documentation, deliverability, and demonstrated benefits that align with the grant program goals. They then score the 18

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applications using a standardized scoring methodology, which is described in the Scoring Criteria section.
b. Incomplete or ineligible applications may be removed from the competitive process.
c. Caltrans headquarters grant program staff then verifies the scores and provides the award recommendations list, to be approved by the State.
d. Award recommendations are submitted to the Secretary of the California State Transportation Agency for concurrence.

3. Awarded projects are announced.

4. Grant Agreements between the grant recipients and Caltrans are executed.

All information contained in the application and supporting documentation is confidential until grant awards are announced.

The State reserves the right to reject an applicant who is in violation of any law or policy at another public agency. Potential violations include, but are not limited to, being in default of performance requirements for other contracts or grant agreements issued by the State, engaging in or being suspected of criminal conduct that could poorly reflect on or bring discredit to the State, or failing to have all required licenses and permits necessary to carry out the project. The State further reserves the right to reject any applicant who has a history of performance issues with past grants or other past contractual agreements with any public entity.

Conflict of Interest
All applicants and individuals who participate in the review of submitted applications are subject to state and federal conflict of interest laws. Any individual who has participated in planning or setting priorities for a specific solicitation over and above the public comment process, or who will participate in any part of the grant development and negotiation process on behalf of the public, is ineligible to receive funds or personally benefit from funds through that solicitation. Failure to comply with conflict of interest laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent grant agreement declared void. Other legal actions may also be taken. Applicable statutes include, but are not limited to, California Government Code section 1090 and Public Contract Code sections 10365.5, 10410, and 10411.

Scoring Criteria
Applications will be scored as explained in Table 3 and in the following subsections of this document. The scoring methodology is designed to support 19

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performance of the grant objectives and encourages context-sensitive proposals. The scoring is designed to prioritize quality of transformation over quantity of space transformed. For communities that may not have a lot of public space, but can still benefit from a transformative project, their application would be competitive under this scoring methodology. Other selection considerations may factor into the final project selection.

Table 3. Scoring Methodology
Component
Number
Scored Component
Possible
Score
(points)
Weight (percent
of overall score)
1 Narrative
(Qualitative)
20 10
2 Project’s Population Benefit
(Quantitative)
20 10
3 Project’s Relative Population
Benefit to Underserved
Communities
(Quantitative)
35 17.5
4 Demonstrated Community Need
(Quantitative)
50 25
5 Project’s Outcomes Assessment
Form
(Quantitative)
40 20
6 Scope, Cost, and Schedule
(Qualitative)
35 17.5
Sum 200 100

1. Narrative
The narrative scoring component will be based on the applicant's description of how well the project meets the program’s statutory goals, requirements, and guidelines. This component is worth up to 20 points and 10 percent of the total application score. The narrative component will be assessed by a committee of subject matter experts using a scoring rubric based on grant criteria.

At a minimum, the narrative shall include a discussion of:
• The project location and any project description details not included in section 1.8 of the main application form. Describe the public space or spaces to be addressed; specifying right-of-way, park, pathway, transit center, tribal land, or other space. Discuss where the space is located, including its visibility and access to the public.
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• The demonstrated community need that addresses the goals of the CCLGP program. Specifically, describe the existing conditions of the project location(s), and how the project meets one or more of the four stated program goals listed below.

1. Reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces.

2. Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect.

3. Enhance public health, cultural connections, and community placemaking by improving public spaces for walking and
recreation.

4. Advance equity for underserved communities.

Address each goal selected separately in the narrative. For each goal selected, also include the information requested in the respective paragraphs below:

Goal 1. Reduce the Amount of Waste and Debris: Describe types of existing waste and debris, work to be performed to remove it, and by whom.

Goal 2. Beautify and Improve Public Space: Describe the beautification or access improvements to be performed, including enhanced greening measures. Include any enhancements to be made, rehabilitation or restoration to be performed, and new installations placed.

Goal 3. Improving Public Spaces for Walking and Recreation: Describe improvements to be made to the public spaces for walking and recreation, and how these improvements will enhance public health, cultural connection, and/or community placemaking.

Goal 4. Advance Equity for Underserved Communities: Projects that demonstrate a benefit to an underserved community, either directly or indirectly, will be more competitive. For these projects, applicants must explain which underserved community is benefited, how it was identified, and how the project benefits that community. Applicants should also explain the percentage of grant funds that will benefit the community and how these percentages were calculated. Calculations can be based on the project’s relative population benefit to underserved communities or another methodology. If another methodology is used, provide a brief justification for using it.
• The local public engagement process that culminated in the project identification and how the project reflects community priorities.

Specifically, the Narrative should describe the stakeholder/community engagement efforts that went into identifying the proposed elements as a priority for the community. These efforts should include engagement with 21

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underserved communities and/or any community-based organizations that serve them. The applicant can reference engagement that was sponsored by Caltrans or others. The Narrative should also describe how the project is consistent with or included in existing local or regional plans such as General Plans, Improvement Plans, bicycle and/or pedestrian plans, and complete street plans, that were the products of extensive public outreach. Finally, the Narrative should discuss how exactly the engagement influenced the project proposal.
• Project deliverability, including the applicant’s certainty the project will be completed, opened to public, and all funds expended by June 30, 2024.

Identify all permits required for the project and note all that have not been approved at time of application submittal. For any permit not obtained, explain how its approval will be achieved and the project completed by June 30, 2024. For infrastructure projects, describe all preconstruction work required to deliver this project by its completion date. • If you are requesting advance payment, a justification. • How the applicant is going to market the project, through materials such as press releases, press advisories, letters to the editor, fact sheets, social media posts, website pages, or speeches. Also state whether there will be a ground-breaking or ribbon cutting ceremony for any infrastructure improvements that are part of the project.
• If applicable, how the improvement(s) will be maintained. Identify the lifespan of the improvement(s), how the improvements will be maintained throughout their lifespans, the resources to fund maintenance activities, and the commitment of those resources. This information is required for physical project improvements and litter abatement events (i.e., there needs to be an explanation of the strategy for preventing litter from accumulating again, after the abatement event). This information is also required for any artwork or vegetation that is part of the proposal.

Maintenance information is not required for educational programs.

2. Project’s Population Benefit (PB) to Overall Community For infrastructure projects, the project’s PB to the overall community is the sum of the population of all census tracts within a quarter mile radius of the project added to the average daily ridership of transit routes that have stops within a half mile radius of the project. This sum is then increased by a factor related to the hours the improved site will be open to the public.

For non-infrastructure projects, the PB is the sum of the population benefit of each non-infrastructure activity. The population benefit of each activity is calculated based on the estimated number of unique people who attend an 22

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activity or will be reached by a campaign, multiplied by the number of activities or campaigns.

Points for this scoring component will be awarded on a curve relative to all applications received. This component is worth a maximum of 20 points and up to 10 percent of the total application score. Details on how to calculate the PB and an example can be found in Appendices A1-A4.

3. Project’s Relative PB to Underserved Communities
A project’s relative population benefit to underserved communities is determined by a ratio of the project’s PB to underserved communities over the project’s PB to the overall community.

For infrastructure projects, the PB to underserved communities is the sum of the population of all underserved census tracts within a quarter mile radius of the project added to the average daily ridership of transit routes that have stops within a ½ mile radius of the project. This sum is then increased by a factor related to the hours the improved site will be open to the public. Note, the transit ridership is the same as it is for calculating the PB for the overall community in scoring component 2 described in the above section.

For non-infrastructure projects, the project’s PB to underserved communities is the same as for the overall community.

Points for this scoring component will be awarded as a percentage based on the ratio of the underserved project benefit to the overall project benefit. This component is worth up to 35 points and 17.5 percent of the total application score. Details on how to calculate the PB to underserved communities can be found in Appendices A1-A4. See the section Underserved Communities in these guidelines for definitions of underserved communities.

4. Demonstrated Community Need
The demonstrated community need scoring component measures the demonstrated need of the applicant or sub-applicant to address the program goals. Needs include those for waste and debris reduction, beautification, enhanced public health, cultural connection, increased equity, or greening. This component is worth up to 50 points and 25 percent of the total application score. The score is based on the applicant’s answers to questions about the existing public space(s) or community conditions. The questions can be found on the “Demonstrated Community Need Assessment Form.” The form has five (5) sections, each relating to a program goal. Within each section, the applicant may choose up to two questions to answer. The form can be viewed in Appendix B1, and an example of a completed form can be viewed in Appendix B3.
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5. Project’s Outcomes Assessment
This scoring component measures the proposal’s potential to accomplish the goals of the program. This component is worth up to 40 points and 20 percent of the total application score. The score is based on the applicant’s answers to questions about anticipated project outcomes. The questions can be found on the “Project’s Outcomes Assessment Form” in Appendix B2. Like the “Demonstrated Community Need Assessment Form”, the form has five (5) sections, each relating to a program goal. Within each section, the applicant may choose up to two questions to answer. A sample completed form based on a fictitious project can be viewed in Appendix B3.

6. Scope, Cost, and Schedule
The scope, cost, and schedule submittals will be reviewed by a committee of subject matter experts who will evaluate how well the documents maximize project benefits versus costs. This component is worth up to 35 points and 17.5 percent of the total application score. A standardized scoring methodology will be used to assess this component.

The scope, cost, and schedule component must include the following, which are in the templates provided:
• The scope must include detailed project plans, and/or an educational programming workplan.
• The application must include a schedule showing planned start and end dates of salient infrastructure work activities and/or non-infrastructure tasks. The schedule must show all activities completed and all funds expended by June 30, 2024. If the project contains infrastructure components, these must also be opened to the public by June 30, 2024. • The application must include a cost breakdown of all project components. Do not provide costs as lump sum expenses.

Other Attachments
Section 3.1 of the application will allow additional documents to be uploaded beyond what is listed above. Details on what these attachments should include are in the Application Instructions provided on the CCLGP website.

Project Award Process
After evaluation is complete and the list of successful applicants is approved by the State, the list of awarded projects will be posted to the Caltrans website.

Successful grant applicants will receive an award letter from Caltrans that outlines important next steps, such as executing the grant agreement, as well as program requirements the grant recipient must adhere to.

The CCLGP is limited to one cycle of funding. As a result, unsuccessful grant applicants will not receive a debrief.
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Grant Agreement Processing
A restricted grant agreement will be utilized for the distribution of funds. The agreement will specify, among other things, the amount of funds granted, local match funds required, timeline for expenditure of funds, delivery schedule, and the approved project scope. Reporting timeframes and other requirements will also be identified in the agreement. A copy of the grant agreement will be made available on the CCLGP website.

Grant Project Administrative Requirements
Sub-contracts
If a grant recipient or a sub-recipient will hire a third-party to perform work during the project, proper procurement procedures must be used. Grant recipients may use their agency’s procurement procedures. They should also comply with all applicable sections of the California Public Contract Code and Government Code, and any other applicable code. In addition, work cannot be subcontracted unless it has been stated in the grant recipient’s scope, cost, and schedule. A grant recipient is fully responsible for all work performed by its subrecipients, consultants, or sub-consultants. Caltrans solely enters contracts directly with grant recipients.

Financial Requirements
Accounting Requirements
Grant recipients and sub-recipients are required to maintain an accounting system that properly records and segregates incurred project costs and matching funds by line item. The accounting system of the grant recipient, including its sub-recipients and sub-contractors, must conform to Generally Accepted Accounting Principles that enable the determination of incurred costs at interim completion points. This accounting system must also provide support for reimbursement payment vouchers or invoices sent to or paid by Caltrans. Allowable project costs must comply with 2 Code of Federal Regulations (CFR), Part 200.

It is the grant recipient’s responsibility to monitor work and expenses to ensure the project is completed according to the contracted Scope, Cost, and Schedule. The grant recipient agrees to revert all unused grant funds to the Department if they are not expended within the timeline specified in the grant agreement. In the event of nonperformance by the grant recipient, or if project outcomes and benefits are not met, the Department shall require full recovery of all disbursed grant funds. A grant recipient shall provide a money transfer confirmation within 60 days upon the receipt of a notice from the Department that grant funds must be reimbursed. If a grant recipient does not expend funds within the timeline specified in the grant agreement or does not perform, this 25

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could also impact the grant recipient’s competitiveness in any potential future funding cycles of this program.

Grant recipients must submit invoices on a regular and timely basis. This is no more frequently than monthly and no less frequently than quarterly for projects not requesting advance payments. This is monthly for projects requesting advance payments.

Costs incurred prior to or after the end date of an executed agreement are not eligible for reimbursement and will not be counted towards local match requirements. CCLGP funds shall not supplant other committed funds and are not available to fund cost increases. Funds must be expended concurrently and proportionally with the approved local match unless an advance payment request is approved. Cost savings will be shared proportionally between all committed fund sources.

Grant recipients must communicate with the Caltrans project manager to ensure any issues are addressed early during the project period.

Audits and Investigations
Clean California Local Grant Program projects are subject to audit. Therefore, all financial records related to the project must be retrained for a minimum of three years from project closeout.

Reporting
Upon execution of a CCLGP agreement, grant recipients must submit quarterly Project Progress Reports and a Final Delivery Report to Caltrans. The reports will be required to assess whether projects are meeting their scope and are being delivered on time and within budget. They will be submitted electronically and due within 45-days of the end of a quarter.

The State may make periodic visits, including a final inspection, to project sites.

The State will determine if the work is consistent with the approved project scope. Caltrans staff will be responsible for conducting and coordinating site visits with the awarded projects.

The final invoice will be paid upon submission and acceptance of the Final Delivery Report to Caltrans. Complete final delivery reports and invoices must be submitted to Caltrans no later than November 1, 2024.

Project Photos
A before photo will be required with the application and an after photo will be required as part of the closeout reporting process for grant recipients. Caltrans must be granted the right to use photos of the completed project. 26

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Project Amendments
The CCLGP will not participate in cost increases to the project. Any cost increases must be funded from other fund sources. If there is a change in the project cost, it must be reported through the quarterly project reporting process.

Scope changes will not be considered unless the change is minor, does not reduce project benefits, and does not change the approved project schedule.

Scope changes must be requested in writing to the Caltrans project manager and may require an amendment to the restricted grant agreement.

Projects must be complete with all funds expended by June 30, 2024. If the project involves infrastructure components, these must be opened to the public by June 30, 2024. Amendments for time are not permitted.

Program Evaluation
The CCLGP will be evaluated for its effectiveness in meeting its goals. Grant recipients must collect and submit data to Caltrans as described in the Reporting section.

As part of the fiscal year 2022–23 and 2023–24 California budgets, Caltrans shall report to the Legislature on the CCLGP, including, but not limited to, cubic yards of litter collected, the locations and types of projects, and any other important program outcomes. The report will include a discussion on program effectiveness in terms of planned and achieved outcomes in litter abatement and beautification efforts, as well as timely use of funds. It will also include a summary of its activities relative to program administration, including projects awarded, projects completed to date by project type, projects completed to date by geographic distribution, and projects completed to date by benefit to underserved communities.
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Appendix A.0. Example Calculations to Determine Required Local Match for a Fictitious Project
For demonstration purposes, this appendix performs an example calculation to determine the required local match for a fictitious project. You will first determine the SOD of the surrounding community, and then use that number to determine the corresponding required local match. The required local match will decrease as the SOD of the surrounding community increases.

Fictitious Project Summary:

The sample project proposes improving the parkland at the Greenside Park in the City of Eureka, CA (M St & 12th St, Eureka, CA 95501) with beautification upgrades and litter abatement. In addition to physical improvements, the project proposes to launch a litter abatement campaign on social media that will reach 1,000 people/week for 52 weeks in total, and a ribbon cutting event/litter abatement event with 200 people invited.

Step 1. Choose a definition by which to define the community surrounding the project as underserved. See the section Underserved Communities of these guidelines for more information. If the community surrounding the project is considered underserved based on multiple options, choose the option that best supports the community’s status as underserved. Per Option 5, Tribal Communities require zero local match, and thus none of these calculations.

Step 2. Determine the SOD of the community surrounding the project:

SOD of
surrounding = Weighted average of the SODs of the surrounding census tracts. community
= Sum [(Pop. CT 1 x metric score CT 1) + (Pop. CT 2 x metric score CT 2) + (Pop. CT N x metric score CT N…)] Sum(Pop. CT 1 + Pop. CT 2 + Pop. of CT N…)
Where:
• Pop. CT = Population of a census tract within a ¼ mile radius of the project site or sites. • Metric Score = The underserved community score of a census tract determined using one of the 5 options listed in Table 2 of the guidelines.

Perform this calculation using Table 1, SOD of Community Surrounding the Project Site(s). When calculating SOD, the same definition of underserved community must be used throughout Table 1.
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Table 1. SOD of Community Surrounding the Project Site(s) List the Option Used to Determine SOD:
(For definitions of each of the five options, see the
section “Underserved Communities”.)
AMI
Location Relative to
Project Site(s)
(1)
Census Tract
Number
(2)
Census
Tract
Population
(3)
Metric Score
of Census
Tract
using the
chosen
option listed
above.
(4)
SOD of Tract
(3) x (4)
(5)
1 Project Site A 5 4450 $32,500 $144,625,000
2 Within a ¼
mile radius. 6 4998 $28,700 $143,442,600
3 Within a ¼
mile radius. 1 4242 $51,600 $218,887,200
4 Within a ¼
mile radius.
5 Project Site B
6 Within a ¼
mile radius.
7 Within a ¼
mile radius.
8 Within a ¼
mile radius.

TOTALS 13,690 $506,954,800
SOD of Community Surrounding the Total of Column 5
= Project Total of Column 3 = $37,031
Why we filled in Table 1 as we did:
• We chose option 1, Area Medium Income (AMI), to define an underserved community. Then we looked up the project address in the 2019 American Community Survey 5-yr. Estimates (ACS5) and found it is in census tract 5 with a population of 4,450 people and a median income of $32,500. We logged this information on line 1 accordingly. • We then drew a ¼ mile buffer around the project limits and determined all other census tracts that fell totally or partially within buffer limits. Two tracts met this criterion, census tracts 6 and 1. We completed lines 2 and 3 based on the populations and median incomes of those tracts. 29

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• The remaining values auto calculated. The tables provided on the CCLPG website in Attachment I are fillable and will calculate for you. (Note, all dollar values and populations shown were made up for demonstration purposes.)
Step 3. Use Table 2 below to determine the Required Local Match based off the SOD of Community Surrounding the Project. For this example, the required local match would be 0% (see highlighted values).
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I I
I I 11
Table 2. Severity of Disadvantage and Corresponding Local Match Requirement SOD Criteria Ranges for SOD of Community
Surrounding the Project
Required Local Match
%
Option 1: Area Median Income (AMI) compared to Statewide Median Income (SMI)* Data: Census Tract Level Data from the 2019 American Community Survey 5-year (ACS5) Estimates
If the AMI SOD of the
surrounding
community is…
> $60,188
Then local
match is…
50 $56,426 to $60,188 37.5
$52,665 to $56,425 25
$48,903 to $52,664 12.5
< $48,903 0
Option 2: CalEnviroScreen 3.0 Percentile Score
Data: SB 535 List of Disadvantaged Communities or SB 535 Disadvantaged Communities Map If the CalEnviroScreen

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Appendix A.1. Definition of the Project’s Population Benefit (Overall) (A) Infrastructure Work PB Overall
Project’s Population Benefit (PB) +
= Overall (B) Non-infrastructure Work PB
Where:

A. Infrastructure Work PB = (Direct PB + Indirect PB) x Dose Where:
• Direct PB = Sum of the population of all census tracts within a ¼ mile radius of the project site(s).
• Indirect PB = Sum of the average daily ridership of transit routes that have stops within a ½ mile radius of the project site(s). • Dose = Hours the site will be accessible to the public under the improved conditions. (If the project has multiple sites and hours differ, use the average number of hours.)
B. Non-infrastructure Work PB = Sum of the PB of each non-infrastructure (NI) activity.

Where:
• The PB of NI Activity = Reach x Dose
Where:
• Reach = Number of people reached at least once by an
educational campaign or eligible event.
• Dose = Number of times the campaign will run, or the event will be held.

Copies of the forms to perform the calculations are provided in Appendix A3.

Example calculations based on a fictitious project are provided in Appendix A4.

When submitting the application, complete the form in Attachment I from the CCLGP website and attach it to your application.
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Appendix A.2. Definition of the Project’s Relative Population Benefit (PB) (Underserved Communities)
Project’s Relative PB Projects PB (underserved) x100
= (underserved communities) Projects PB (overall)
Project’s PB Underserved (A) Infrastructure Work PB Underserved = Community +
(B) Non-infrastructure Work PB
Where:

A. Infrastructure Work PB
= (Direct PB Underserved + Indirect PB) x Dose Underserved Where:
• Direct PB Underserved = Sum of the population of all underserved census tracts within a ¼ mile radius of the project site(s). • Indirect PB = same as used in Appendix A.1.
• Dose = same as used in Appendix A.1.

B. Non-infrastructure PB = Same as used in Appendix A.1.

Copies of the forms to perform the calculations are provided in Appendix A3.

Example calculations based on a fictitious project are provided in Appendix A4.

When submitting the application, complete the form in Attachment I from the CCLGP website and attach it to your application.
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Appendix A.3. Forms for Calculating Population Benefit (PB) (Overall) and Relative PB (Underserved Community)
Step 1. If your project has no infrastructure work, skip to Step 3.

Step 2. If your project has infrastructure work, complete Tables 1 through 5 below. Information from tables 1 through 3 will be used to calculate the Infrastructure Work PB for both the overall and underserved community in Tables 4 and 5, respectively.

If your project is large or long, use a ¼ mile from the outer edges. If your project has multiple locations, list the census tracts for each location. Add more rows on the last page if necessary.
• For each census tract listed, provide the information requested. For columns 4 and 5, consult the CCLGP guidelines on how to define an undeserved community. If you choose “other” as your option, you must submit Attachment J with a justification of your methodology.
• Total column 3 and column 5.
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Table 1. Infrastructure Work- Direct Population Benefit Location Relative to
Project Site(s)
(1)
Census
Tract
Number
(2)
Census
Tract
Population
(Overall)
(3)
If the tract is
underserved
community,
record the option
used to make the
determination.
(ACS5, SB535,
CDEdu, HIP,
Other)
(4)
Census Tract
Population
(Underserved)
If the tract is an
underserved
community, also
record
population in
this column.
(5)
1 Project Site A
2 Within a ¼ mile
radius.
3 Within a ¼ mile
radius.
4 Within a ¼ mile
radius.
5 Project Site B
6 Within a ¼ mile
radius.
7 Within a ¼ mile
radius.
8 Within a ¼ mile
radius.

Population Totals (Overall) = (Underserved) =
Table 2. Infrastructure Work – Indirect PB
• List all transits routes with at least one transit stop within a ½ mile radius of your project. If you project is large or long, use a ½ mile from the outer edges. Add more rows on the last page if necessary.
• Total all ridership numbers.
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Table 2. Infrastructure Work - Indirect Benefit Population Name of Transit Route with at least One Stop within a 1/2 Mile of Project Site(s)
(1)
Average Daily
Ridership of the
Route
(2)
1 2
3 4
5 6
7 Total of the Average Daily Ridership of Qualifying Routes Table 3. Infrastructure Work – Dose
Determine the “dose” factor for the infrastructure work, which are the hours the site will be accessible to the public under the improved conditions. • List all sites and the hours for each site. Add more rows on the last page if necessary.
• Calculate the average number of hours of all sites.

Table 3. Infrastructure Dose
Infrastructure Site
(1)
Hours Improved Site
Accessible to
Public
(2)
1 2
3 4
5 6
7 Average of Hours if Project Contains Multiple Sites
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Table 4. Infrastructure Work PB (Overall)
Use information from Tables 1-3 to complete Table 4.

Table 4. Infrastructure Work PB (Overall)
(Direct PB
(Table 1, Column 3)
(1)
+
Indirect PB)
(Table 2, Column 2)
(2)
×
Dose
(Table 3, Column 2)
(3)
=
Infrastructure Work
PB (Overall)
(4)
+ × =
Table 5. Infrastructure Work PB (Underserved Community) Use information from Tables 1-3 to complete Table 5.

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Step 3: If your application proposes educational campaigns or events about litter abatement, proper waste disposal, or how to do sanctioned artwork (as opposed to vandalism), use Table 6 to calculate PB of each non-infrastructure activity and total. If your application does not propose these activities, skip to Step 4.

Table 6. Non-Infrastructure Work PB
• Reach = Number of people reached at least once by an educational campaign or eligible event.
• Dose = Number of times the campaign will run, or the event will be held.

Table 6. Non-Infrastructure Work (NI) PB
NI
Activity
Number
NI Activity Name Activity
Reach
(1)
x
Activity
Dose
(2)
=
PB of NI
Activity
(3)
1 x =
2 x =
3 x =
4 x =
Total NI Work PB
Step 4. Calculate the Project’s Population Benefit (Overall). This score will be graded by the Department on a curve relative to all applications submitted. The number of points the applicant will be awarded for Scoring Component 2, Project Population Benefit, will be granted accordingly. The maximum number of points is 20.

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Step 5. Calculate the Project’s Population Benefit (Underserved Community).

Table 8. Project’s PB (Underserved Community)
Table 8. Project's PB (Underserved Community)
Infrastructure Work PB
(Underserved
Community)
(From Table 5, Column 4)
(1)
+
Non-Infrastructure
Work PB
(From Table 6, Column 3)
(2)
=
Project's PB
(Underserved Community)
(3)
+ =
Step 6. Calculate the Project’s Relative Population Benefit to the underserved community.

Table 9. Project's Relative PB to Underserved Communities Project's PB
(Underserved Community)
(From Table 8, column 3)
(1)
÷
Project's PB
(Overall)
(From Table 7, column 3)
(2)
=
Project's Relative PB
(Underserved
Community)
(3)
÷ =
Step 7. Calculate the number of points you, the applicant, will be awarded for Scoring Component 3, Project’s Relative Population Benefit to the Underserved Community. The maximum number of points is 35.

Table 10. Applicant’s Points for Scoring Component 3, Project’s Relative PB (Underserved Community)
Table 10. Scoring Component 3, Project’s Relative PB (Underserved Community) Project's Relative PB (Underserved
Community)
(From Table 9, column 3)
(1)
×
Maximum Possible
Points
(2)
=
Score
(Pts.)
(3)
× 35 =
Examples of completed calculation forms based on a fictitious project can be found in Appendix A.4.
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Additional rows for Tables 1 and 2. (Only use these pages if needed.) Table 1. Infrastructure Work- Direct Population Benefit (CONTINUED) Location Relative to
Project Site(s)
(1)
Census
Tract
Number
(2)
Census
Tract
Population
(Overall)
(3)
If the tract is
underserved
community,
record the option
used to make the
determination.
(ACS5, SB535,
CDEdu, HIP,
Other)
(4)
Census Tract
Population
(Underserved)
If the tract is an
underserved
community, also
record
population in
this column.
(5)
9 Project Site C
10 Within a ¼ mile
radius.
11 Within a ¼ mile
radius.
12 Within a ¼ mile
radius.
13 Project Site D
14 Within a ¼ mile
radius.
15 Within a ¼ mile
radius.
16 Within a ¼ mile
radius.

Table 2. Infrastructure Work - Indirect Benefit Population (CONTINUED) Name of Transit Route with at least One Stop within 1/2 Mile of Project Site(s)
(1)
Average Daily
Ridership of the
Route
(2)
8 9
10 11
12 13
14 15
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Additional rows for Tables 3 and 6. (Only use these pages if needed.) Table 3. Infrastructure Dose (CONTINUED)
Infrastructure Site
(1)
Hours Improved Site
Accessible to Public
(2)
8 9
10 11
12 13
14 15
Table 6. Non-Infrastructure Work (NI) PB (CONTINUED)
NI
Activity
Number
NI Activity Name Activity
Reach
(1)
x
Activity
Dose
(2)
=
PB of NI
Activity
(3)
5 x =
6 x =
7 x =
8 x =
9 x =
10 x =
11 x =
12 x =
13 x =
14 x =
15 x =
16 x =
41

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Appendix A.4. Example PB (Overall) and Relative PB (Underserved Communities) Calculations Performed for a Fictitious Project For demonstration purposes, this appendix performs sample population benefit calculations based on a fictitious project.

Fictitious Project Summary:

The sample project proposes improving the parkland at the Greenside Park in the City of Eureka, CA (M St & 12th St, Eureka, CA 95501) with beautification upgrades and litter abatement. In addition to physical improvements, the project proposes to launch a litter abatement campaign on social media that will reach 1,000 people/week for 52 weeks in total and will host a ribbon cutting and litter abatement event with 200 people invited. I have filled this form out as the applicant for the purposes of showing how this would be accomplished and the results you might see from this.

Example Population Benefit Calculations:

Step 1. If your project has no infrastructure work, skip to Step 3.

Our project has infrastructure, so we continue to Step 2.

Table 1. Infrastructure Work – Direct PB (Overall and Underserved Community) • On line 1, list the census tract in which the project is located. • On subsequent lines, list all census tracts within ¼ mile radius of your project. If your project is large or long, use a ¼ mile from the outer edges. If your project has multiple locations, list the census tracts for each location. Add more rows on the last page if necessary.
• For each census tract listed, provide the information requested. For columns 4 and 5, consult the CCLGP guidelines on how to define an undeserved community. If you choose “other” as your option, you must submit Attachment J with justification of your determination method. • Total column 3 and column 5.
42

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Table 1. Infrastructure Work- Direct Population Benefit Location Relative to
Project Site(s)
(1)
Census
Tract
Number
(2)
Census Tract
Population
(Overall)
(3)
If the tract is
underserved
community,
record the option
used to make the
determination.
(e.g. ACS5, SB535,
CDEdu, HIP,
Other)
(4)
Census Tract
Population
(Underserved)
If the tract is an
underserved
community, also
record
population in
this column.
(5)
1 Project Site A 5 4,450 ACS5 4,450
2 Within a ¼ mile
radius. 6 4,998 ACS5 4,998
3 Within a ¼ mile
radius. 1 4,242 ACS5 4,242
4 Within a ¼ mile
radius.
5 Project Site B
6 Within a ¼ mile
radius.
7 Within a ¼ mile
radius.
8 Within a ¼ mile
radius.

Population Totals (Overall) = 13,960 (Underserved) = 13,690 Why we filled in Table 1 as we did:
• We chose to use option 1 of the 5 options provided in the guidelines to determine if the community around the project is underserved. We looked up the project address in the 2019 American Community Survey 5- Year Estimates (ACS5) and found it is in census tract 5 with a population of 4,450 people and has a median income less than 80% of the State Median Income. This means the census tract qualifies as an underserved community. We logged this information on line 1 accordingly. • We drew a ¼ mile buffer around the project limits and then determined all other census tracts that fell totally or partially within the project site or buffer limits. Using the ACS5, two tracts met this criteria, census tracts 6 43

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and 1, and both also qualified as underserved. We completed lines 2 and 3 accordingly.
• Note, you are not limited to one option when making the “underserved” determination. If a tract did not qualify as underserved on the ACS5, we could have also checked another option, such as the Healthy Places Index. If it qualified under one of the options, we could have designated that tract as underserved.

Table 2. Infrastructure Work – Indirect PB
• List all transits routes with at least one transit stop within a ½ mile radius of your project. If you project is large or long, use a ½ mile from the outer edges. Add more rows on the last page if necessary.
• Total all ridership.

Table 2. Infrastructure Work - Indirect Benefit Population Name of Transit Route with at least One Stop within 1/2 Mile of Project Site(s)
(1)
Average Daily
Ridership of the
Route
(2)
1 Redwood Transit System Route 500
2 Southern Humboldt Intercity Route 500
3 4
5 6
7 Total of the Average Daily Ridership of Qualifying Routes 1,000 Why we filled out Table 2 as we did:

We drew a ½ mile buffer around the project limits and determined what transit stops existed within the project limits or the buffer zone. We found two bus routes that stopped within a ½ mile of the project and logged the route information accordingly.

Table 3. Infrastructure Work – Dose
Determine the “dose” factor for the infrastructure work, which is the hours the site will be accessible to the public under the improved conditions. • List all sites and the hours for each site. Add more rows on the last page if necessary.
44

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• Calculate the average number of hours of all sites.

Table 3. Infrastructure Dose
Infrastructure Site
(1)
Hours Improved Site
Accessible to
Public
(2)
1 Greenside Park 24
2 3
4 5
6 7
Average of Hours if Project Contains Multiple Sites 24
Why we filled in Table 3 as we did:
• The park will be accessible to the public 24 hours per day upon completion of the project. If we had multiple sites with different hours, we would have averaged the hours.

Table 4. Infrastructure Work PB (Overall)
Use information from Tables 1-3 to complete Table 4.

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Table 5. Infrastructure Work PB (Underserved Community) Use information from Tables 1-3 to complete Table 5.

Table 5. Infrastructure Work PB (Underserved Community) (Direct PB
(Table 1, Column 5)
(1)
+
Indirect PB)
(Table 2, Column 2)
(2)
×
Dose
(Table 3, Column 2)
(3)
=
Infrastructure
Work PB
(Underserved
Community)
(4)
13,960 + 1,000 × 24 = 359,040
Note, because all the tracts within a ¼ mile of the project qualified as underserved, the project’s Infrastructure Work PB (Overall) in Table 7 equals the project’s Infrastructure work PB (underserved community) in Table 8.

Table 6. Non-Infrastructure Work PB
• Reach = Number of people reached at least once by an educational campaign or eligible event.
• Dose = Number of times the campaign will run or the event will be held.

Table 6. Non-Infrastructure Work (NI) PB
NI
Activity
Number
NI Activity Name Activity
Reach
(1)
x
Activity
Dose
(2)
=
PB of NI
Activity
(3)
1 Social Media Litter Abatement
Campaign 1000 x 52 = 52,000
2 Ribbon Cutting and Litter Abatement
Event 200 x 1 = 200
3 x =
4 x =
Total NI Work PB 52,200
46

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Why we filled in Table 6 as we did:
• The project includes 2 non-infrastructure events, a media campaign that will reach 1,000 social media followers (the Activity 1 reach) once a week for 52 weeks (the Activity 1 dose) and a ribbon cutting and trash disposal education event to which 200 people (the Activity 2 reach) will be invited.

The ribbon cutting event is a one-time affair (the Activity 2 dose.) Step 4. Calculate the Project’s Population Benefit (Overall). This score will be graded by the Department on a curve relative to all applications submitted. The number of points the applicant will be awarded for Scoring Component 2, Project Population Benefit, will be granted accordingly. The maximum number of points is 20.

Table 7. Project’s PB (Overall)
Table 7. Project's PB (Overall)
Infrastructure Work PB
(Overall)
(From Table 4, Column 4)
(1)
+
Non-Infrastructure Work PB
(From Table 6, Column 3)
(2)
= Project's PB (Overall)
(3)
359,040 + 52,200 = 411,240
The number calculated here will be graded on a curve relative to other applications submitted to determine the percentage of the maximum possible 20 points to award.

Step 5. Calculate the Project’s Population Benefit (Underserved Community).

Page 572 of 856 ends

Step 6. Calculate the Project’s Relative Population Benefit to the underserved community.

Table 9. Project's Relative PB to Underserved Communities Project's PB
(Underserved Community)
(From Table 8, column 3)
(1)
÷
Project's PB
(Overall)
(From Table 7, column 3)
(2)
=
Project's Relative PB
(Underserved
Community)
(3)
411,240 ÷ 411,240 = 100%
Step 7. Calculate the number of points you, the applicant, will be awarded for Scoring Component 3, Project’s Relative Population Benefit to the Underserved Community. The maximum number of points is 35.

Table 10. Applicant’s Points for Scoring Component 3. Project’s Relative PB (Underserved Community)
Table 10. Scoring Component 3 Project’s Relative PB (Underserved Community) Project's Relative PB
(Underserved Community)
(From Table 9, column 3)
(1)
×
Maximum Possible
Points
(2)
=
Score
(Points)
(3)
100% × 35 = 35
48

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Appendix B1. Demonstrated Community Need Assessment Form This table measures the demonstrated need of the community to execute the goals of the program. Needs can be the community’s need for waste and debris reduction, beautification, enhanced public health, cultural connection, or another need. This component is worth a maximum of 50 points and up to 25 percent of the total application score. The score is based on the applicant’s answers to questions about the existing site or community conditions. The form has five (5) sections, each relating to a program goal or objective. Within each section, choose a maximum of two (2) questions to answer, for a total of 10 questions. All applicants much answer question 1-1, as one of their two questions in Section 1. 49

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Table 1: Demonstrated Community Need Assessment Form
Section 1: Answer question 1-1, and one other question of your choice.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Points Guidance Applicant Response Applicant's Self Score
To reduce the amount of
waste and debris within
public rights-of-way,
pathways, parks, transit
centers, and other public
spaces.
1 -1 5
Describe the evidence there is a
recurring litter or land misuse in the
project area under existing
conditions. Summarize trash
collection data or other empirical
data.
(Range 0-5pts.,
No evidence=
0pts.)
Use box below
1-2 5
Under existing conditions, does the No = 5 pts.,
Somewhat = 3pts.,
Yes = 0 pts.
project site have adequate signage
and amenities for proper waste
disposal or prevention?
1-3 5
Under existing conditions, does the
site have physical features to
discourage inappropriate waste
disposal or dumping?
No = 5 pts.,
Somewhat = 3pts.,
Yes = 0 pts.
1-4 3
Under existing conditions, does the
Yes = 3pts.,
Somewhat=2pts.,
No or NA = 0pts.
proposed community or project
site lack educational programs or
events about litter abatement or
proper waste disposal?
50

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Section 2: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant Response Applicant's
Self Score
To enhance, rehabilitate,
restore, or install
measures to beautify and
improve public spaces.
2-1 5
Under existing conditions
what percentage of the
project site needs
beautification?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
2-2 5
Under existing conditions,
what percentage of the
project site is not functional
and/or accessible for
community use?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
2-3 5
Based on the hours the
project site is open,
approximately what
percentage of time is it
significantly underutilized?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
2-4 5
What percentage of the
project site is negatively
affected by graffiti or other
vandalism?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
51

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Section 3: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant Response Applicant's
Self Score
To enhance public health,
cultural connection, and
community placemaking
by improving public
spaces for walking and
recreation.
3-1 5
Does the project area
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
currently prevent a critical
connection to daily life
destinations such as school,
medical care, jobs, or
groceries via
walking, biking, or transit?
3-2 5
Is the public space a barrier or
hazard on a walking or biking
route?
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
3-3 5
Is the existing public
recreation space unusable for
its intended purposes?
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
3-4 5
Under existing conditions, are
there adequate/sufficient
recreation places in the
community?
No= 5 pts.,
Somewhat=3pts.,
Yes = 0 pts.
3-5 3
Under existing conditions, are
there enough places to sit at
the project site?
No= 3 pts.,
Somewhat=2pts.,
Yes = 0 pts.
3-6 5
Does the existing project site
lack features or elements that
connect it to the culture or
history of the surrounding
community?
Yes= 5 pts.,
Somewhat=3pts.,
No = 0 pts.
52

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Section 4: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant
Response
Applicant's
Self Score
To advance equity for
underserved
communities.
4-1 5
How does the percentage of
usable public space in the
underserved community
compare to the region's
average?
Below Average =
5pts.,
Average =3pts.,
Above Average =
0pts.
4-2 5
Is the project area an
underutilized connection in an
underserved community?
Yes = 5pts.,
Somewhat=3pts.,
No or NA = 0pts.
4-3 5
Is the project site an
underutilized public space in
an underserved community?
Yes = 5pts.,
Somewhat=3pts.,
No or NA = 0pts.
4-4 5
Does the space function for
people with disabilities or
special needs?
No = 5pts.,
Somewhat=3pts.,
Yes or NA = 0pts.
53

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Section 5: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant Response Applicant's
Self Score
Greening to provide
shade, reduce urban
island effect, and use
native, low-water plants.
5-1 5
Under existing conditions
what percentage of the space
is landscaped and/or softscaped?
0-20%=5pts.,
21-40=4pts.,
41-60=3pts.,
61-80=2pts.,
81-100=1pts.
5-2 5
Under existing conditions,
what percentage of landscape
lacks native or low-water
plants?
0-20%= 5pts.,
21-40=4pts.,
41-60=3pts.,
61-80=2pts.,
81-100=1pts.
5-3 5
What percentage of the space
is unusable due to lack of
shade at midday?
0-20%=1pts.,
21-40=2pts.,
41-60=3pts.,
61-80=4pts.,
81-100=5pts.
5-4 5
What percentage of the
project site is unusable due to
excessive heat at midday?
0-20%=1pts.,
21-40=2pts.,
41-60=3pts.,
61-80=4pts.,
81-100=5pts.

Total Score from Sections 1 to 5:

Community Need Assessment
(Max Possible Points is 50)
0 54

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Appendix B2. Project’s Outcomes Assessment Form
This form measures the proposal’s potential to accomplish the goals of the program. This component is worth a maximum of 40 points and up to 20 percent of the total application score. The score is based on the applicant’s answers to questions about anticipated project results. The form has five (5) sections, each relating to a program goal or objective. Within each section, choose a maximum of two questions to answer, for a total of 10 questions.
55

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Table 2: Project’s Outcomes Assessment Form
Section 1: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
To reduce the amount of
waste and debris within
public rights-of-way,
pathways, parks, transit
centers, and other public
spaces.
1-1 4
By what percentage will the
waste and debris within the
project site be reduced?
0-25% =1 pt.,
26-50%= 2pts.,
51-75%= 3pts.,
76-100%= 4pts.
1-2 3
By what percentage will the
signage and amenities for
proper waste disposal or
prevention increase at the
project site?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
1-3 4
What is the estimated
reduction of waste or debris at
the project site because of new
physical features to discourage
inappropriate waste disposal or
dumping?
0-25% =1 pt.,
26-50%= 2pts.,
51-75%= 3pts.,
76-100%= 4pts.
1-4 3
What is the percent increase in
the number of educational
programs or events about litter
abatement and proper waste
disposal?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
1-5 3
What is the percent increase in
the number of litter pickup and
waste disposal events?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
56

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Section 2: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score
To enhance, rehabilitate,
restore, or install
measures to beautify and
improve public spaces.
2-1 4 By what percentage will the project
site be beautified or improved?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-2 4
By what percentage do the
improvements increase the number
and/or diversity of viable uses in the
project site?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-3 5
By what percentage do the
improvements increase access to
the project site?
0-20% = 1 pt.,
21-40% = 2 pts.,
41-60% = 3 pts.,
61-80% = 4 pts.,
81-100% = 5pts.
2-4 4
By what percentage will the quantity
of human scale, energy conserving
lighting be increased?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-5 4
What percentage of project site will
be improved with anti-graffiti/antivandalism solutions? 0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-6 4 Will visual art pieces be added to the
project site?
2 or more = 4pts.,
1 = 3 pts.
2-7 4
What is the percentage increase in
educational programs informing the
community how to do sanctioned
public artwork (as opposed to
vandalism/graffiti)?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
57

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Section 3: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
To enhance public health,
cultural connection, and
community placemaking
by improving public
spaces for walking and
recreation.
3-1 4
Will the project create or
enable a critical connection to
daily life destinations such as
school, medical care, jobs, or
groceries via walking, biking, or
transit?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.
3-2 4 Will the project improve a
walking or biking route?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.
3-3 4
Will the project improve or
rehabilitate an existing public
recreation space?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.
3-4 4
Will the project add new
recreation space to the
community?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.
3-5 4
By what percentage will the
project site(s) be improved for
walking or recreation?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
3-6 4
Will the improved project site
incorporate features or
elements that connect it to the
culture or history of the
surrounding community?
Definitely = 4 pts.,
Sufficiently = 3 pts.,
Somewhat = 2 pts.,
A little = 1 pt.

Not at all = 0 pts.
58

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Section 4: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
Advance equity for
underserved
communities.
4-1 4
What percentage of census
tracts within a 1/4 mile of the
project site qualify as
underserved?
> 51%=4pts,
40-50%=3pts,
20-39%=2pts
< 20% = 1pts
4-2 4
What percentage of transit
routes within a 1/2 mile of the
project site reach an
underserved community?
> 51%=4pts,
40-50%=3pts,
20-39%=2pts
< 20% = 1pts
4-3 4
Will the project create or
improve access to a key
connection across a major
physical barrier in an
underserved community?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.

Will the improved project site Yes = 4pts.,
4-4 4 function for people with Somewhat = pts.,
disabilities or special needs? No or NA = 0pts.
59

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Section 5: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Question Point Guidance Applicant
Response
Applicant's
Self Score
Greening to provide
shade, reduce urban
island effect, and use
native, low-water plants.
5-1 4
What is the anticipated
decrease in impervious surfaces
at the project site?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
5-2 4
What will be the percent
increase in native, drought
tolerant plantings?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
5-3 4
What is the anticipated percent
increase of shade measured at
the noon hour?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
5-4 4 What is the anticipated increase
of greening or tree canopy?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.

Total of Scores from Sections 1 to 5:
0 Project Outcomes
(Max Possible is 40)
60

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Appendix B3. Example of Forms B1 and B2 Completed for a Fictitious Project For demonstration purposes, this appendix contains completed Demonstrated Community Need Assessment and Project’s Outcomes Assessment forms based on a fictitious project.

Fictitious Project Summary:

One-acre public space that will include landscaping, shade trees, improved street furniture, new bins for proper waste disposal, enhanced lighting, a mural by a local artist, and upgrades to the bus stop shelter at the site. Youth volunteers will be recruited to help clean the space before improvements are made, and they will learn about litter abatement and the free dump days in the community. 61

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Table 1: Completed Demonstrated Community Need Assessment Form Section 1: Answer question 1-1, and one of your choice.

Program Goal or
Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Points Guidance Applicant
Response
Applicant's
Self Score
To reduce the amount
of waste and debris
within public rights-ofway, pathways, parks,
transit centers, and
other public spaces.
1 -1 5
Describe the evidence there is a
(Range 0-5pts., No
evidence= 0pts.) Use box below
recurring issue of trash production or
land misuse in the project area under
existing conditions. Summarize trash
collection data or other empirical
data.

Trash bins are always overflowing. The amount of trash has increased by approximately 300% 5 according to the maintenance department. Many people dump their garbage around the park.

Park walls have re-occurring graffiti. There have been citizen complaints and about garbage and broken benches. The park has seen reduced usage over the years due to safety concerns and poor lighting. Reservations for youth sports at the facility and picnic areas have reduced by 25%. 1-2 5
Under existing conditions, does the No = 5 pts.,
Somewhat = 3pts.,
Yes = 0 pts.
project site have adequate signage
and amenities for proper waste
disposal or prevention?
1-3 5
Under existing conditions, does the
site have physical features to
discourage inappropriate waste
disposal or dumping?
No = 5 pts.,
Somewhat = 3pts.,
Yes = 0 pts.

No 5
1-4 3
Under existing conditions, does the
Yes = 3pts.,
Somewhat=2pts.,
No or NA = 0pts.
proposed community or project site
lack educational programs or events
about litter abatement or proper
waste disposal?
62

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Section 2: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant Response Applicant's
Self Score
To enhance, rehabilitate,
restore, or install
measures to beautify and
improve public spaces.
2-1 5
Under existing conditions
what percentage of the
project site needs
beautification?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
81 5
2-2 5
Under existing conditions,
what percentage of the
project site is not functional
and/or accessible for
community use?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
2-3 5
Based on the hours the
project site is open,
approximately what
percentage of time is it
significantly underutilized?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
61 4
2-4 5
What percentage of the
project site is negatively
affected by graffiti or other
vandalism?
0-20%= 1 pt.,
21-40%= 2 pts.,
41-60%= 3 pts.,
61-80%= 4 pts.,
>80%= 5 pts.,
63

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Section 3: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need
Assessment Question Point Guidance Applicant Response Applicant's Self Score
To enhance public health,
cultural connection, and
community placemaking
by improving public
spaces for walking and
recreation.
3-1 5
Does the project area
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
currently prevent a critical
connection to daily life
destinations such as school,
medical care, jobs, or
groceries via
walking, biking, or transit?
3-2 5
Is the public space a barrier or
hazard on a walking or biking
route?
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
3-3 5
Is the existing public
recreation space unusable for
its intended purposes?
Yes = 5 pts.,
Somewhat= 3pts.,
No = 0 pts..
3-4 5
Under existing conditions, are
there adequate/sufficient
recreation places in the
community?
No= 5 pts.,
Somewhat=3pts.,
Yes = 0 pts.

Somewhat 3
3-5 3
Under existing conditions, are
there enough places to sit at
the project site?
No= 3 pts.,
Somewhat=2pts.,
Yes = 0 pts.
3-6 5
Does the existing project site
lack features or elements that
connect it to the culture or
history of the surrounding
community?
Yes= 5 pts.,
Somewhat=3pts.,
No = 0 pts.

Yes 5
64

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Section 4: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Below Average 5
4-2 5
Is the project area an
underutilized connection in an
underserved community?
Yes = 5pts.,
Somewhat=3pts.,
No or NA = 0pts.
4-3 5
Is the project site an
underutilized public space in
an underserved community?
Yes = 5pts.,
Somewhat=3pts.,
No or NA = 0pts.

Yes 5
4-4 5
Does the space function for
people with disabilities or
special needs?
No = 5pts.,
Somewhat=3pts.,
Yes or NA = 0pts.
65

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Section 5: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Community Need Assessment
Question Point Guidance Applicant Response Applicant's
Self Score
Greening to provide
shade, reduce urban
island effect, and use
native, low-water plants.
5-1 5
Under existing conditions
what percentage of the space
is landscaped and/or softscaped?
0-20%=5pts.,
21-40=4pts.,
41-60=3pts.,
61-80=2pts.,
81-100=1pts.
5-2 5
Under existing conditions,
what percentage of landscape
lacks native or low-water
plants?
0-20%= 5pts.,
21-40=4pts.,
41-60=3pts.,
61-80=2pts.,
81-100=1pts.
35 4
5-3 5
What percentage of the space
is unusable due to lack of
shade at midday?
0-20%=1pts.,
21-40=2pts.,
41-60=3pts.,
61-80=4pts.,
81-100=5pts.
75% 4
5-4 5
What percentage of the
project site is unusable due to
excessive heat at midday?
0-20%=1pts.,
21-40=2pts.,
41-60=3pts.,
61-80=4pts.,
81-100=5pts.

Total Score from Sections 1 to 5:

Community Need Assessment
(Max Possible Points is 50)
45 66

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Table 2: Completed Project’s Outcomes Assessment Form
Section 1: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
To reduce the amount of
waste and debris within
public rights-of-way,
pathways, parks, transit
centers, and other public
spaces.
1-1 4
By what percentage will the
waste and debris within the
project site be reduced.
0-25% =1 pt.,
26-50%= 2pts.,
51-75%= 3pts.,
76-100%= 4pts.
100 4
1-2 3
By what percentage will the
signage and amenities for
proper waste disposal or
prevention increase at the
project site?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
1-3 4
What is the estimated
reduction of waste or debris at
the project site because of new
physical features to discourage
inappropriate waste disposal or
dumping?
0-25% =1 pt.,
26-50%= 2pts.,
51-75%= 3pts.,
76-100%= 4pts.
80 4
1-4 3
What is the percent increase in
the number of educational
programs or events about litter
abatement and proper waste
disposal?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
1-5 3
What is the percent increase in
the number of litter pickup and
waste disposal events?
0-33% = 1 pt.,
34-66% = 2pts.,
67-100% = 3pts.
67

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Section 2: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
To enhance, rehabilitate,
restore, or install
measures to beautify and
improve public spaces.
2-1 4 By what percentage will the project
site be beautified or improved?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
80 4
2-2 4
By what percentage do the
improvements increase the number
and/or diversity of viable uses within
the project site?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-3 5
By what percentage do the
improvements increase access to the
project site?
0-20% = 1 pt.,
21-40% = 2 pts.,
41-60% = 3 pts.,
61-80% = 4 pts.,
81-100% = 5pts.
2-4 4
By what percentage will the quantity
of human scale, energy conserving
lighting will be increased?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
60 4
2-5 4
What percentage of project site will
be improved with anti-graffiti/anti
vandalism solutions?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
2-6 4 Will visual art pieces be added to the
project site?
2 or more = 4pts.,
1 = 3 pts.
2-7 4
What is the percentage increase in
educational programs informing the
community how to do sanctioned
public artwork (as opposed to
vandalism/graffiti)?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
68

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Section 3: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Yes 4
3-4 4
Will the project add new
recreation space to the
community?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.
3-5 4
By what percentage will the
project site(s) be improved for
walking or recreation?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
3-6 4
Will the improved project site
incorporate features or
elements that connect it to the
culture or history of the
surrounding community?
Definitely = 4 pts.,
Sufficiently = 3 pts.,
Somewhat = 2 pts.,
A little = 1 pt.

Not at all = 0 pts.

Definitely 4
69

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Section 4: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Questions Point Guidance Applicant
Response
Applicant's
Self Score
Advance equity for
underserved
communities.
4-1 4
What percentage of census
tracts within a 1/4 mile of the
project site qualify as
underserved?
> 51%=4pts,
40-50%=3pts,
20-39%=2pts
< 20% = 1pts
100% 4
4-2 4
What percentage of transit
routes within a 1/2 mile of the
project site reach an
underserved community?
> 51%=4pts,
40-50%=3pts,
20-39%=2pts
< 20% = 1pts
50 3
4-3 4
Will the project create or
improve access to a key
connection across a major
physical barrier in an
underserved community?
Yes = 4pts.,
Somewhat = 2pts.,
No or NA = 0pts.

Will the improved project site Yes = 4pts.,
4-4 4 function for people with Somewhat = pts.,
disabilities or special needs? No or NA = 0pts.
70

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Section 5: Answer 2 questions below.

Program Goal or Objective ID #
Max.

Poss.

Pts.

Project’s Outcomes Question Point Guidance Applicant
Response
Applicant's
Self Score
Greening to provide
shade, reduce urban
island effect, and use
native, low-water plants.
5-1 4
What is the anticipated
decrease in impervious surfaces
at the project site?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
5-2 4
What will be the percent
increase in native, drought
tolerant plantings?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
65 3
5-3 4
What is the anticipated percent
increase of shade measured at
the noon hour?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
5-4 4 What is the anticipated increase
of greening or tree canopy?
0-25% = 1 pt.,
26-50% = 2pts.,
51-75% = 3pts.,
76-100% = 4pts.
60 3
Total of Scores from Sections 1 to 5:

Project Outcomes
(Max Possible is 40)
37 71

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CCLGP Frequently Asked Questions
Application Process
Q1: Who is an eligible applicant?
A. The applicant must be a local or regional public agency, transit agency, or federally recognized tribal government. Nonprofit organizations may partner with eligible applicants, as sub-applicants.

Q2: Are school districts, special districts, or Joint Powers Authorities (JPA) eligible applicants?
A. Public agency status is determined based on the agency's enacting documents. Additionally, it must be established that the JPA or district has jurisdiction over the public space being improved.

Q3: How would you define a "project"?
A. A project can include multiple elements such as infrastructure and noninfrastructure elements, as well as multiple locations. For example, one project may include installation of lighting, litter abatement, and painting of a mural. All infrastructure and non-infrastructure project elements must be included in their respective cost proposals.

Q4: Can I submit multiple projects in one application?
A. One application can contain more than one project element and can include both infrastructure and non-infrastructure elements, but all elements must be under one project. Applications that include multiple elements may be more competitive.

Q5: Can an agency submit multiple applications?
A. Yes. There is no limit to the number of applications an applicant can submit. Also, multiple departments within one agency can submit separate applications.
1 Attachment 2

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Q6: Do I need to submit a City Council resolution for my project with my application?
A. A City Council Resolution (or similar approval document) is not required to be submitted with an application. A resolution will be required at the time a grant agreement is executed.

Q7: Can a project that has already received funding from another program apply for additional funding with this grant?
A. CCLGP funds cannot be used to supplant existing funds. If the project is adding scope and funding, that portion of the project may be eligible for CCLGP funds.

Q8: If an application includes both infrastructure and non-infrastructure components, would cost proposals need to be submitted for each? A. Yes.

Q9: Is there a limit to the number of sub-applicants that can be included? A. No.

Q10: How detailed do the engineering and/or project plans submitted with the Scope need to be?
A. Applications that more strongly support a project can be completed by the project delivery date of June 30, 2024 will be more competitive.

The level of detail needs to be sufficient to support the scope, schedule, and budget in the grant application.

Award Process and Administrative Requirements
Q11: Is it possible for the same agency to be awarded multiple grants if they submit multiple applications?
A. Yes.
2

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Q12: Are indirect costs eligible for reimbursement?
A. Awardees may only claim an indirect cost rate that is approved by the California Department of Transportation Independent Office of Audits and Investigations, or the applicant’s cognizant agency. Also, if claiming indirect costs, an approved indirect cost rate will need to be included in the grant agreement. To obtain or update an indirect cost rate with Caltrans, please visit this link for instructions:
https://ig.dot.ca.gov/resources.

Q13: Will CCLGP projects fall under our Master Agreement? A. The Master Agreement/Program Supplement process will not be used for this program. Awardees will need to execute a Restricted Grant Agreement (RGA) with Caltrans. See a sample of the RGA here:
https://cleancalifornia.dot.ca.gov/local-grants/workshops-milestones.

Public Engagement
Q14: Does public engagement need to be completed before the proposal is submitted on 2/1/22?
A. The application needs to show the need for the project was identified through a public engagement process. That process needs to be explained in the project narrative portion of the application, which is submitted as Attachment A of the application. More information can be found in the section, “1. Narrative,” (third bullet) of the Guidelines.

Q15: What is the expectation for public engagement for this program considering COVID-19?
A. In-person engagement events are not expected. Online engagement activities such as online workshops and surveys that follow locally approved community engagement polices are sufficient forms of community engagement. More information can be found in the section, “1. Narrative,” (third bullet) of the Guidelines.

Q16: How do I find volunteers for my project?
A. California Volunteers is an excellent resource for finding volunteers. Please visit the following link for more information:
https://www.californiavolunteers.ca.gov/.
3

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Competitive Projects
Q17: How can I make my application competitive?
A. Please see the "Selection Criteria" section of the grant guidelines.

Q18: Will preference be made to projects that are shovel-ready? A. Projects that can clearly be completed by the project delivery date of June 30, 2024 will be more competitive.

Q19: Are projects with multiple elements, such as infrastructure and noninfrastructure elements, more competitive? A. Projects that have more than one element may be more competitive if they meet the grant objectives.

Q20: Are projects with a higher local match requirement more competitive? A. The amount of the required local match is not an evaluation criterion.

Q21: Would it be better to submit more applications with smaller projects, or one application with one large project?
A. The scoring is designed to prioritize quality of transformation over quantity of space transformed. However, applications that include multiple types of project elements may be more competitive.

Q22: Is a project more competitive if it’s adjacent to or on Caltrans property? A. The CCLGP program is intended to beautify and improve public spaces in local communities that meet the program goals and objectives. Caltrans has separate funding for projects on the State's right-of-way. 4

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Underserved Communities
Q23: Is required local match determined by the disadvantage of the agency or the project location?
A. The local match is determined by the disadvantage of the project location. The required local match will decrease as the disadvantage of the community surrounding the project increases. This is an important change to the draft guidelines. See the section, “Local Match Requirement,” in the final guidelines for details.

Q24: Now that CalEnviroScreen 4.0 Final is available, should I use that instead of

3.0?
A. No. Since the map of SB 535 Disadvantaged Communities based on CalEnviroScreen 4.0 is still in draft form at time of writing, please use CalEnviroScreen 3.0.

Eligible Expenditures and Activities
Q25: Are renewable and clean energy technologies considered an eligible activity?
A. These may be eligible items if they meet the goals and objectives of the program.

Q26: Would the public engagement portion of the project that occurred prior to the application submittal be considered an eligible expenditure? A. Work performed prior to the execution of the grant agreement is ineligible for reimbursement.

Q27: Is maintenance an eligible activity?
A. Maintenance of a project improvement is not a reimbursable expense; however it can be an in-kind contribution if it occurs prior to June 30, 2024. 5

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Q28: Is the construction of a new landscaped median island on a local road eligible?
A. This may be an eligible item if the application demonstrates that this element meets the goals and objectives of the program and can be implemented by June 30, 2024.

Q29: Is vegetation or invasive species management an eligible activity? A. This may be an eligible item if it meets the goals and objectives of the program.

Q30: Are new transportation connections such as bike lanes, pedestrian paths, or sidewalks eligible?
A. This may be an eligible item if it meets the goals and objectives of the program and can be completed by June 30, 2024.

Q31: Is pavement rehabilitation an eligible activity?
A. Replacing impermeable pavement with permeable pavement or pavement alternatives such as wood chips are eligible activities if performance of the work accomplishes the goals of the program.

Q32: Can funds only be used towards construction or implementation, or can they also be used for project-related expenses such as administration, design, and environmental review?
A. Generally, project-related costs that meet the program guidelines, goals, and objectives, and that can be completed by June 30, 2024 are eligible expenses.

Q33: If our agency is not underserved or disadvantaged, can we still apply? A. Yes, projects that benefit underserved communities, either directly or indirectly, are competitive, regardless of the agency.

Q34: Does the project have to relate to transportation? A. Eligible projects must meet program goals and objectives to beautify and clean up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces.
6

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Q35: Is graffiti abatement considered an eligible activity? A. This may be an eligible activity if it meets the goals and objectives of the program, and the activities can be completed by June 30, 2024.

Funding
Q36: Does this program involve federal money?
A. The CCLGP is 100% state funded.

Q37: Do projects require California Transportation Commission (CTC) allocation of funds?
A. Funds for the CCLPG are not allocated through the CTC.

Q38: Will there be future rounds for this grant?
A. Currently the legislature authorized a one-time budget for the CCLGP.

Q39: Is the $5 million maximum per grant application or per Agency? A. The $5 million maximum is per grant application.

Q40: Can funding be used to support smaller components of a larger project that exceeds $5 million?
A. CCLGP funds cannot supplant other funds. However, if the proposed smaller components meet the goals and objectives of the program and are not already funded by another program, they may be eligible.

Partnering with Caltrans
Q41: Where can I get information about the Caltrans encroachment permit process?
A. Please visit the following website for information on the Caltrans encroachment permit process: https://dot.ca.gov/programs/trafficoperations/ep. 7

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Partnering with Other Agencies
Q42: If one agency will implement the project and another agency will maintain it, how should this be conveyed through the application? A. This must be explained in the Narrative portion of the application in the discussion on the maintenance plan. Also, the application must include a formal letter of commitment from the agency performing the in-kind services.

Permits
Q43: Do we need to obtain all permits/approvals for the project prior to submitting the application on 2/1/22?
A. It is recommended that you obtain all permits/approvals for the project prior to submitting the application to ensure the June 30, 2024 project delivery deadline can be met.

Q44: Will CEQA Environmental Review be required?
A. CEQA requirements are not waived for this program.

Timeline and Deadlines
Q45: Can we spend local match funds after the June 30, 2024 deadline? A. All funds must be expended by June 30, 2024.

Q46: Can the June 30, 2024 project delivery deadline be extended? A. There is no authority to extend the project delivery deadline.

Miscellaneous
Q47: Will signs notifying the public that this is a CleanCA project be required? A. There are no sign requirements for this program.

Q47: Will Right-of-Way (RW) Certification be required?
A. All infrastructure projects will need RW Certification. 8

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Page 1 of 2 ends

Agenda Item No: 13.c.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1209

AGENDA SUMMARY REPORT
SUBJECT: Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2021.

DEPARTMENT: Finance PREPARED BY:

Ginny Feth-Michel, Dan Buffalo, Finance Director,
Olga Keough, Controller, Mary Horger, Financial
Services Manager
PRESENTER: Dan Buffalo, Finance Director
ATTACHMENTS:

1. City of Ukiah ACFR, June 30, 2021

2. CAFR Presentation, 2021
Summary: Finance Management will present to the City Council the audited Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021.

Background: Pursuant to City policy and state law, the City has prepared financial statements for the year ended June 30, 2021, in accordance with generally accepted accounting principles (GAAP). Those statements were audited by an independent public accounting firm, Van Lant and Fankhanel, LLP, licensed by the State of California, and knowledgeable of governmental accounting and reporting.

Discussion: Management is pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This report is prepared by the Accounting Division of the Finance Department in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period of time following the year end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards.

Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The City’s MD&A can be found immediately following the report of the independent auditor.

Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements.

While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to external users (non-management employees), who include the citizens of the City of

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Page 2 of 2 ends

Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.

The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2021, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. There were, however, audit findings, recommendations, and subsequent management responses made to several items related to internal control, most of which were carryovers from prior fiscal years. That information is found in the ACFR beginning on page 183 (page 212 of the pdf). Management addressed several of those items from the past and is committed to addressing the remaining items in the 2021-22 fiscal year and beyond.

Management will present the 2021 ACFR (Attachment 1) to Council and highlight key elements of the report for its consideration, including how to navigate the document. Attachment 2 is the presentation Finance provides Council to accompany the ACFR. Council may use it as a primer to better understand the document.

Recommended Action: Receive and file ACFR.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A

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City of Ukiah,
California
Annual Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2021
Attachment 1

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Annual Comprehensive Financial Report
City of Ukiah, California
Fiscal Year Ended June 30, 2021
Prepared by
City of Ukiah Finance Department | Accounting Division
Team Members:

Daniel Buffalo, MPA, CPA, CGMA | Finance Director
Ginny Feth-Michel, CPA | Assistant Finance Director
Mary Horger | Financial Services Manager – Procurement, Capital, and Special Projects Olga Keough, CPA | Controller
Sarah Brown, Financial Services Manager - Disbursements Attachment 1

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This Page Intentionally Left Blank
Attachment 1

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Table of Contents
Introductory Section
Letter of Transmittal ....................................................................................................................................... i Profile of the City of Ukiah......................................................................................................................... ii The City of Ukiah Organization .................................................................................................................iii Current Economic Conditions and Outlook.............................................................................................. vi Major Initiatives ........................................................................................................................................ xi Measure P................................................................................................................................................xii Measure Y...............................................................................................................................................xiv Relevant Financial Policies ..................................................................................................................... xv Acknowledgements ................................................................................................................................. xv GFOA Certificate of Achievement..............................................................................................................xvii List of Officials........................................................................................................................................... xviii City Organizational Chart........................................................................................................................xix Financial Section
Independent Auditor’s Report ....................................................................................................................... 1 Management Discussion and Analysis (MD&A) (Required Supplementary Information).............................4 Financial Highlights ................................................................................................................................... 4 Overview of the Annual Comprehensive Financial Report ....................................................................... 4 Government-Wide Financial Analysis ....................................................................................................... 8 Capital Assets and Debt Administration..................................................................................................14 Fund Financial Analysis ..........................................................................................................................15 Governmental Funds...............................................................................................................................15 Proprietary Funds....................................................................................................................................16 Budgetary Comparison ...........................................................................................................................16 Economic Outlook ...................................................................................................................................18 Requests for Information.........................................................................................................................19 Government-Wide Financial Statements ....................................................................................................20 Statement of Net Position....................................................................................................................21 Statement of Activities.........................................................................................................................22 Fund Financial Statements .........................................................................................................................23 Governmental Funds...............................................................................................................................23 Balance Sheet .....................................................................................................................................24 Attachment 1

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Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........25 Statement of Revenues, Expenditures, and Changes in Fund Balances ...........................................26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities .................................................................................27 Proprietary Funds....................................................................................................................................28 Statement of Net Position....................................................................................................................29 Statement of Revenues, Expenses, and Changes in Net Position.....................................................30 Statement of Cash Flows ....................................................................................................................31 Fiduciary Funds.......................................................................................................................................32 Statement of Fiduciary Net Position....................................................................................................33 Statement of Changes in Fiduciary Net Position ................................................................................34 Notes to the Basic Financial Statements Index ..........................................................................................35 Note 1 - Summary of Significant Accounting Policies.............................................................................36 Note 2 - Stewardship, Compliance, and Accountability ..........................................................................46 Note 3 - Cash and Investments ..............................................................................................................47 Note 4 - Accounts Receivable.................................................................................................................51 Note 5 – Notes and Loans Receivable ...................................................................................................52 Note 6 - Capital Assets ...........................................................................................................................53 Note 7 - Long-Term Liabilities.................................................................................................................55 Note 8 – Landfill Closure and Post Closure Costs..................................................................................60 Note 9 - Interfund Transactions and Interfund Borrowing.......................................................................60 Note 10 - Risk Management ...................................................................................................................62 Note 11 - Public Employee Retirement Plan...........................................................................................64 Note 12 – Related Organizations............................................................................................................76 Note 13 - Commitments and Contingencies ...........................................................................................77 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency .........................................78 Note 15 – New Pronouncements ............................................................................................................81 Note 16 – Service Contracts ...................................................................................................................82 Required Supplementary Information (RSI)................................................................................................84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Agent Multiple Employer (Miscellaneous), Last Ten Years ........................................................................................84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years .....................................................................................................................86 General Fund Budgetary Comparison Schedule ................................................................................88 HOME Program Income Budgetary Comparison Schedule................................................................89 Notes to Required Supplemental Information .....................................................................................90 Attachment 1

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Supplementary Information.........................................................................................................................91 Streets Capital Improvement Budgetary Comparison Schedule ........................................................92 Pension Debt Service Budgetary Comparison Schedule....................................................................93 Nonmajor Governmental Funds..............................................................................................................94 Combining Balance Sheet – Special Revenue ...................................................................................99 Combining Balance Sheet – Capital Project .....................................................................................103 Combining Balance Sheet – Permanent...........................................................................................105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue ...........................................................................................................................................................107 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Capital Project ...........................................................................................................................................................111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Permanent...113 Governmental Fund Budget Comparisons............................................................................................115 Special Revenue Fund......................................................................................................................115 Prop 172............................................................................................................................................116 Museum Grant Fund .........................................................................................................................117 ARRC ................................................................................................................................................118 Downtown Business Improvement....................................................................................................119 Low-Mod Income Housing Fund (LMIHF).........................................................................................120 Winter Special Events .......................................................................................................................121 Advanced Planning ...........................................................................................................................122 Highway User Tax (Gas Tax)............................................................................................................123 Signalization ......................................................................................................................................124 1998 STIP Augmentation ..................................................................................................................125 SB 325 Reimbursement ....................................................................................................................126 S.T.P..................................................................................................................................................127 Trans-Traffic Congestion Relief ........................................................................................................128 CDBG Program Income ....................................................................................................................129 CASP Certification and Training .......................................................................................................130 Asset Seizure ....................................................................................................................................131 Sup. Law Enforcement Svc. (SLESF)...............................................................................................132 Community-Based Transitional Housing...........................................................................................133 Asset Forfeiture 11470.2 H&S ..........................................................................................................134 Special Revenue - Police ..................................................................................................................135 American Rescue Fund.....................................................................................................................136 Transfer Station................................................................................................................................. 137 Attachment 1

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Equipment Reserve...........................................................................................................................138 Special Projects Reserve ..................................................................................................................139 Park Development Fees....................................................................................................................140 Anton Stadium...................................................................................................................................141 Observatory Park ..............................................................................................................................142 Playground & Park Amenities ...........................................................................................................143 Swimming Pool..................................................................................................................................144 Riverside Park ...................................................................................................................................145 Skate Park.........................................................................................................................................146 Softball Complex ...............................................................................................................................147 Rail Trail ............................................................................................................................................148 Riparian Corridor Enhancement........................................................................................................149 Combining Nonmajor Enterprise funds ................................................................................................. 150 Combining Statement of Net Position ...............................................................................................151 Combining Statement of Revenues, expenses, and Changes in Net Position................................. 152 Combining Statement of Cash Flows................................................................................................153 Combining Internal Service Funds........................................................................................................154 Combining Statement of Net Position ...............................................................................................155 Combining Statement of Revenues, expenses, and Changes in Net Position................................. 156 Combining Statement of Cash Flows................................................................................................157 Combining Fiduciary Funds ..................................................................................................................158 Combining Fiduciary Net Position .....................................................................................................159 Combining Statement of Changes in Fiduciary Net Position ............................................................160 Statistical Section
Statistical Section Index ............................................................................................................................162 Financial Trends....................................................................................................................................164 Net Position by Component ..............................................................................................................164 Changes in Net Position....................................................................................................................165 Fund Balances, Governmental Funds...............................................................................................167 Changes in Fund Balances, Governmental Funds ...........................................................................168 Revenue Capacity................................................................................................................................. 169 Tax Revenues by Source, Governmental Funds ..............................................................................169 Property Tax Rates ...........................................................................................................................170 Electric Utility Rates ..........................................................................................................................171 Wastewater Utility Rates ...................................................................................................................172 Attachment 1

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Water Utility Rates.............................................................................................................................173 Top Ten Electric Usage Customers ..................................................................................................174 Debt Capacity........................................................................................................................................175 Ratio of Outstanding Debt by Type ...................................................................................................175 Ratio of General Bonded Outstanding Debt......................................................................................176 Computation of Direct and Overlapping Debt ...................................................................................177 Legal Debt Margin Information..........................................................................................................178 Pledged Net Revenue Debt Coverage..............................................................................................179 Demographic and Economic information ..............................................................................................180 Demographic and Economic Statistics..............................................................................................180 Principal Employers...........................................................................................................................181 Operating Information ...........................................................................................................................182 Full-time and Part-time City Employees by Function ........................................................................182 Other Compliance Reports
Independent Auditor’s Report on Internal Control ....................................................................................183 Independent Accountant’s Report on Agreed-upon Procedures Applied to Appropriations Limit............186 Attachment 1

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Introductory Section
Attachment 1

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City of Ukiah, California i
Introductory Section
Letter of Transmittal
December 30, 2021
To the Honorable Mayor, members of the City Council and citizens of the City of Ukiah:

We are pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (CAFR) for the fiscal year ended June 30, 2021. This report is prepared in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period following the year end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards.

Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor.

Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile enough, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements.

While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to external users who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.

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City of Ukiah, California ii
Introductory Section
Based upon the audit, the independent
auditors concluded that there was
reasonable basis for rendering an
unmodified opinion, which states that
the City’s financial statements for the
fiscal year ended June 30, 2021, are
presented fairly in conformity with
GAAP. The independent auditor’s
report is presented as the first
component of the financial section of
this report. This report includes all
funds of the City and its blended
component unit: The Successor
Agency to the Ukiah Redevelopment
Agency.

Profile of the City of Ukiah
The City of Ukiah is a full-service city in that it provides most typical municipal functions, including public safety (including police and fire protection), public works, community development and parks and recreation. In addition, the City provides proprietary services, including water, wastewater, electric, golf, and airport services. It operates in a council-manager form of government, whereby the council serves as the legislative body and the City Manager its executive.

Incorporated on March 8, 1876 as a general law city, Ukiah serves as the administrative seat for the County of Mendocino, and with a residential population of more than 15,5261 in a 4.7 square-mile area, Ukiah is graced with a strong business base and a well-established residential community.

Ukiah is a travel and recreation-oriented destination and fortunate to serve as a hub for Lake, Mendocino, southern Humboldt, and northern Sonoma counties. The Ukiah business environment is positive and well organized. Driven by an active chamber of commerce, local businesses are community-oriented and engaged in City-business partnerships, including economic development, job creation, tourism, and community events.

The City’s permanent retail trade area population is approximately 104,000 people with 45,000 within a 10-mile radius. Ukiah’s historic downtown area is the center of commercial activity within the community. There are also commercial areas along Orchard/Perkins corridor, Airport Park Boulevard, Perkins Street, as well as much of State Street.

The City’s total labor force is approximately 6,9602. Unemployment in Ukiah was approximately 6.4 percent in June 2021, down from 15.3 percent in 20203. Within ten miles, there is a diverse labor force specializing in such 1 2021 California Department of Finance, Demographic Research Unit, E-1 Population Estimates for Cities, Counties, and the State, May 2021
2 2021 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/interactive-labor-market-data-tools.html 3 Unemployment spike to end the fiscal year, June 30, 2020 due predominantly to the COVID-19 pandemic. Prior to March 2020, the unemployment rate in Ukiah was 5.9 percent.

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City of Ukiah, California iii
Introductory Section
occupations as sales, technical and professional services, education, medical, agriculture, and government services, and other specialties. The largest employment sectors in the Ukiah area are: government (county and city); education; healthcare; light industry; and the service and hospitality trades. The agricultural and construction sectors are important, and the transportation/public utilities, wholesale trade, finance/insurance/real estate and manufacturing sectors round out the employment picture. Some of the larger employers in the primary trade area include the Ukiah Valley Medical Center, Ukiah Unified School District, County of Mendocino, City of Ukiah, and Savings Bank of Mendocino County. Approximately 19.14 percent of all jobs in Mendocino County are located within the City of Ukiah.

The City of Ukiah Organization
The City is committed to providing high quality services in an economical manner. For fiscal year 2020-21, the City’s efforts were focused in the following areas:
• Public safety services. Demand for police and fire services continued to grow. The Police Department sustained an aggressive recruiting strategy to attract officer candidates in a highly competitive job market, working to increase staffing of skilled officers capable of serving an expanding scope of duties to meet the broadened demands on law enforcement. These include untreated mental illness, substance abuse, homelessness, more sophisticated criminal use of technology, and the effects of prison realignment and decriminalization. With the continued and steady rise of incidents, the Fire Department saw an increasing number of times where all their resources are committed and unable to respond to additional calls for service. The COVID-19 pandemic elevated considerably the need for public safety services, working with other services offered by the City and Mendocino County to ensure the Ukiah community could navigate the effects of the pandemic.
• Recreation and civic culture. The Community Services Department expanded programming to include Spanish-language swim classes, paddle boarding classes, pickleball, health and safety classes, aquatic yoga, and SCUBA certifications. Over 160 contractor classes were provided with a broad variety of offerings.

Additionally, the department improved Spanish-language accessibility by providing forms and flyers in Spanish. These additional activities enable the City to effectively serve even more of our valued community members.

Events are an important part of Ukiah’s culture, education, economic and social well-being, and City staff organized and hosted numerous events throughout the year including: PumpkinFest, Sundays in the Park, Moonlight Movie Madness, All American Picnic in the Park, Flynn Creek Circus, Community Yard Sale and Kids Triathlon.

At the Grace Hudson Museum, the City replaced incandescent gallery lighting with LED lights, thus conserving energy and utilities expenses over time. Museum staff embraced the challenge of finding new and diverse ways to engage the public in this time of pandemic. 4 2021 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/interactive-labor-market-data-tools.html Attachment 1

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City of Ukiah, California iv
Introductory Section
The Civic Center Council Chambers received a significant audio/visual overhaul and upgrade, allowing better community engagement and outreach as the Council conducts their meetings and City business.
• Community preparedness and emergency management. Unprecedented wildfires, drought, Public Safety Power Shut-offs, and the COVID-19 pandemic have led to an increased need for community outreach and emergency preparedness. The City responded to these needs by prioritizing emergency management through staff reassignments to provide a full-time Emergency Manager and a part-time analyst. The reassignments ensured that the City could provide optimal response to the pandemic and prepare for other disasters.

The City’s Emergency Management Office partnered with the Ukiah Valley Fire Authority, Mendocino College, Adventist Health Ukiah Valley, Coastal Valley EMS, North Coast Opportunities, and Mendocino County Public Health, to organize a COVID-19 testing and vaccination sites where thousands of community members were successfully tested and/or vaccinated for COVID-19.

Additional emergency preparedness efforts included the ongoing development of community partnerships, collaboration to develop fire fuel breaks, and community outreach and preparedness events.
• Housing. The City of Ukiah adopted a 2021-2027 Housing Element on October 23, 2019, and the newly updated Housing Element was certified by the State Department of Housing and Community Development (HCD) on December 5, 2019. The City continued its efforts in 2021, implementing the measures contained in the Housing Element, with deliberate focus on increasing the supply of housing and bringing in over $4.5 million in grant funding to support that effort.
• Improving our streets and infrastructure. Public Works has continued to utilize Measure Y funds for the improvement of all streets throughout the City. In this effort, the establishment of a Construction Management and Inspection Team has been implemented, as requested by Council. Altogether, $2.9 million was expended on streets from Measure Y alone (additional discussion of this provided later in this letter).

The Public Works Department, in partnership with the Electric Utility Department and City Manager’s Office, continued work on the Ukiah Streetscape Project. When completed, the Ukiah Streetscape Project will provide streetscape improvements in downtown Ukiah on State Street, Perkins Street, and Standley Street, including sidewalk widening, curb ramps and bulb outs, street lights, street furniture and tree planting. The project also includes a road diet between Henry Street and Mill Street that will transform the existing four-lane cross section to improve traffic and pedestrian safety and streamline traffic flow. This work also will comprise of pavement overlay, striping, and pavement markings.

Capital projects continued at the City of Ukiah Municipal Airport. A $3.8 million dollar grant from the Federal Aviation Administration (FAA) awarded to the City supported runway improvements.

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City of Ukiah, California v
Introductory Section
The project includes replacement of 75 feet of center runway, the installation of a new blast pad, and surface treatment for the remainder of the runway. Additionally, lighting, pavement markings, and signage were updated during this project. From daily freight operations to emergency services and so much more, the airport is itself an economic engine for the area.

Resiliency and sustainability continue to be major areas of focus for the City. In 2020-21, the Electric Utility Department completed a substantial utility undergrounding project in Oak Manor and began the Gobbi Street undergrounding project. Utilities will also be moved underground on State Street in the Streetscape Project area. The Department completed the State Fire Mitigation Plan, continues to participate in the State’s Low Carbon Fuel Standard Program, and has expanded maintenance and preventative testing. These projects significantly increase our fire resiliency as well as reduce the risks of electrical outages for all customers.

Our Water Resources Department made significant progress in the replacement of an existing 100,000-gallon water reservoir in Pressure Zone 2 South. They also replaced several water mains as part of an ongoing capital improvement program, updated the Urban Water Management Plan, and re-initiated water rights petitions to ensure that this valuable resource provides maximum benefits for our community. The Recycled Water Division completed Phases 1-3 of the recycled water project, a highly successful component of the City’s sustainability efforts, and the team will begin design of Phase 4. Phases 1-3 are currently serving about 650 acres of agriculture (vineyards, orchards, and alfalfa) 20 acres of pasture, and 15 acres of turf (3 parks and a school).

From all sources this year, the City spent over $7.3 million on streets and rights-of-way infrastructure and $22.2 million in utility and support services infrastructure, totaling $29.5 million.

The City Council establishes annual budgets for the General Fund, proprietary (enterprise and internal service) funds, and all special revenue funds, with a possible exception for certain special revenue funds for which expenditures are controlled by grant funding or by special assessments. Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June

30. The Ukiah City Council consists of five members, elected at-large to four-year overlapping terms. Council members must be residents of the City. The positions of Mayor and Vice Mayor are chosen by the Council through its own policy. The Mayor conducts the Council meetings and represents the City in ceremonial functions.

The City Council serves as the policy board for the municipality. It provides policy direction, establishes goals, and sets priorities for the City government. In addition to serving as the broad policy makers for the community, the City Council also is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, the City Attorney, and all members of advisory boards and commissions. The City also maintains an elected City Treasurer.

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City of Ukiah, California vi
Introductory Section
Current Economic Conditions and Outlook
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Understanding that property and sales taxes generate the City’s largest two sources of general revenue, it is important to look at the economy in the context of people’s wherewithal for producing General Fund tax revenues.

Like every community in the nation, Ukiah was hit hard by the COVD-19 pandemic. The local economy, however, endured (and continues to endure) through the most challenging financial impacts of it. Due in large part to its diverse, economic base and function as an economic hub to the greater Mendocino, Lake, southern Humboldt, and northern Sonoma counties, Ukiah businesses have persevered, and the City finances have remained reasonably stable. Prior to March 2021, unemployment remained low, and consumer spending (through sales tax analysis), building permits, and planning work indicates economic confidence to invest in housing and business development was strong. The housing market, while making progress toward recovering values from the highs of 2007, remained strong, albeit insufficient to meet the demands for market-based housing due to its low supply of units and high prices.

The City’s economic development efforts and development of a high-quality workforce help to promote Ukiah’s long-term fiscal stability. This will be a cornerstone in the Council’s approach to debt structuring, capital improvement planning, labor negotiations, and service delivery.

As mentioned earlier, the City’s principal General Fund revenue sources are sales tax and property taxes. Sales tax (most notably) grew significantly from the year prior to end the fiscal year. Tax revenue sources are expected continue to grow modestly in the first quarter of FY 2022. But so much of that continued growth depends on the actions of the federal government, most notably Congress, in its economic response to the pandemic, including measure to address inflationary pressures on local businesses and consumers.

Underlying property-related revenues in general are expected to increase modestly FY 2021-21 and beyond, likely to average 2-2.5 percent; however, as illustrated in Figure 1 below, revenue received from this source increased at a higher rate due to adjustments of property tax increment payments to the City from the County of Mendocino. These adjustments are related more to the effects from dissolution activities of the former Ukiah Redevelopment Agency than to underlying property values in the former redevelopment project area.

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City of Ukiah, California vii
Introductory Section
FIGURE 1
As the hub of Mendocino County, Ukiah has a strong sales tax base. This served the City well in providing sufficient revenues to maintain service levels at pre-pandemic levels with minimal interruption or disruption. The City realized positive sales tax returns beyond initial budgetary estimates for the year and exceeded amounts realized in the prior year, as Figure 2 demonstrates. We forecast continued growth and strong revenues from sales tax sources in the coming year and, short of an immediate recession, beyond for at least another. But we continue to take a cautiously optimistic view at this time and plan service delivery and budgetary estimates with conservative revenue assumptions.

FIGURE 2
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City of Ukiah, California viii
Introductory Section
Financial Condition: General Revenues - Top Ten:

FIGURE 3
The City’s top ten revenue sources account for 83.2 percent of total General Fund income. Focusing on these sources can provide a useful understanding of the City’s revenue position.

Overall, these key revenues performed better in 2021 than in 2020. The strongest performer was Redevelopment Tax Increment pass-through, due principally to changes in funding and obligation requirements for the Ukiah Redevelopment Successor Agency. Business license tax revenue was next, but increased revenues from this source reflected more on the timing of payments from businesses that were past due or late in payment from the prior year. The most informative change in terms of the underlying revenue picture for the City’s general fund is that of sales and transaction and use taxes. As the City is strongly reliant on the economic vitality of its retailers, strong returns in this revenue source signaled strong overall economic health for both the City and broader retail trade area.

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City of Ukiah, California ix
Introductory Section
TOP 10 - REVENUES
Current from Prior
Year Ended June 30, 2021 Percent of
Percent Total 2020-21
REVENUE 2020-21 2019-20 Change General Revenues
Top 10:

Bradley-Burns Sales Tax $ 7,813,891 $ 6,572,573 18.89% 29.11% 1/2% District Sales Tax (Measure Y) 3,862,145 3,368,450 14.66% 14.39% 1/2% District Sales Tax (Measure P) 3,858,985 3,372,183 14.44% 14.38% Prop Tax In Lieu Of Vlf 1,559,290 1,530,602 1.87% 5.81% Transient Occupancy Tax (TOT) 1,362,133 1,365,477 -0.24% 5.08% Redevelopment Tax Increment Pass-Through 1,007,559 763,483 31.97% 3.75% City Utility Franchise Fee 979,180 951,857 2.87% 3.65%
Secured Property Tax 710,556 743,317 -4.41% 2.65%
Refuse Disposal Franchise Fee 686,967 657,307 4.51% 2.56% Business License Tax 484,533 389,829 24.29% 1.81%
Total top 10 22,325,239 19,715,078 13.24% 83.18%
Other Revenue 4,513,875 1,620,423 178.56% 16.82%
Total current revenue $ 26,839,114 $ 21,335,501 25.80% 100.00% FIGURE 4
Sales Tax. The City collects sales tax from three sources: normal Bradley-Burns sales taxes (1 percent of taxable transactions), a ½ cent transaction and use tax, commonly referred to as Measure P, and a ½ cent transaction and use tax, commonly referred to as Measure Y. All are devoted entirely to the City and are distinct and considered separate sources of revenue. Each behave slightly differently given their tax base. BradleyBurns sales taxes are referred to as “sales and use” taxes, levied on transactions based geographically in the City. Measures P and Y are referred to as a “transaction and use” taxes and is applied to any taxable sale in the Attachment 1

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City of Ukiah, California x
Introductory Section
City as well as any sale where the use of the item is in the City. For instance, a car purchased outside the City but registered to, and therefore presumed to be used at, an address within would be levied the ½ cent on the purchase price for Measure P and the same amount for Measure Y. Both are general taxes and can be used for any regular, general governmental purpose; however, the City Council, through resolution, has assigned their use to public safety and streets, respectively.

Overall, sales taxes receipts (Bradley-Burns and Measure P) were up from a year ago due in part to growth across most of the City’s major industry groups. Driving the change was general consumer goods (up 13.9% from the prior year), which also affected the City’s share in the state and county pool allocation (up 28.9%). All sales tax due the City is administered by the California Department of Tax and Fee Administration (CDTFA).

Property Tax in Lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the state’s take of Vehicle License Fees (VLF). This revenue source typically follows regular property tax collections, discussed under “Secured Property Tax” below and is up 1.87 percent compared to last year.

Transient Occupancy Tax (TOT). Commonly referred to as a “bed,” “hotel,” or “room” tax this revenue source was performing strongly over the last two years up until March. Travel restriction brought on by the pandemic will continue to negatively affect this revenue source. However, driven by increased tourism in the greater Ukiah Valley area and a larger volume of travelers heading north, this revenue source is poised to continue its growth trend for several more years after the pandemic has abated. Visitors are stopping in Ukiah as a final layover before making the trek to Fort Bragg and Humboldt County and are exploring the wonders of what the Ukiah Valley has to offer.

The TOT rate in Ukiah currently is 10 percent; however, 1 percentage point has been committed by the Ukiah City Council to fund the Visit Ukiah Program.

City Utility Franchise Fees. This revenue source is a charge to the City’s electric utility. Franchise fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of-way and City property, such as roads, sidewalks, parklands, etc. The rents are established by the City Council and typically are correlated to gross revenues generated by the utility provider. Revenues from this source remain stable with a nominal increase from the prior year.

Redevelopment Tax Increment Pass-Through. After the dissolution of Redevelopment in California by the Legislature, the Ukiah Redevelopment Agency was sent into receivership of a successor agency. Property tax increment revenue once received by the former redevelopment agency was instead held in trust by the County Auditor-Controller in a specific fund, affectionately known as the Redevelopment Property Tax Trust Fund (RPTTF). Property tax increment collected in this fund would first pay the County Auditor-Controller’s administrative costs, then pass to the successor agency of the former RDA (City of Ukiah) to satisfy the obligations of the former agency, then to the taxing entities in the project area of the former RDA, including the Ukiah Unified School District and the County of Mendocino General Fund. The City also receives a share of these residuals which are reported in the General Fund.

This revenue source tracks like regular (secured) property tax, although it is calculated from a slightly different derivative property tax base (tax increment).

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City of Ukiah, California xi
Introductory Section
Secured Property Tax. Traditionally, revenue from property tax was viewed as a very stable source. The housing collapse of 2008 tested that assumption. However, as the housing market continued to recover modestly in Ukiah, receipts came in lower than the year prior. This was due to adjustments made by the County Auditor-Controller. Slightly less than 11 percent of property taxes paid by property owners within the City are allocated to the City. The majority is distributed to local schools and the County of Mendocino.

Depending on the final economic outcome of the pandemic to Ukiah, revenue from this source may continue to trend positively over the next few years as the county continues to process Prop 8 property value adjustments and as housing prices and home sales increase.

Refuse Disposal Franchise Fees. This revenue source is a charge to the City’s franchise solid waste hauler.

As discussed earlier, franchise fees are not taxes; rather, in the case of refuse disposal franchise fees they are rents paid by the refuse hauler for the use of rights-of-way to provide and distribute its services. Refuse hauler vehicles used to haul refuse are utilized more frequently and wear roads more significantly than other commercial or non-commercial vehicles. Revenues from this source were higher in FY 2020-21 than in the preceding year due to increased sales and rate adjustments by the hauler, Ukiah Waste Solutions.

Business License Tax. Businesses that operate within City limits are required to obtain a business license.

The fees are based on the type of business and an estimate of their gross receipts. The proceeds from the tax collected are available for unrestricted use in the General Fund. As mentioned earlier, receipts were higher in 2021 than in the prior year due to late payments. Before the onset of the pandemic in March 2021, business license activity was trending positively. That trend has slowed and likely will normalize in the 2022 fiscal year.

Major Initiatives
The Ukiah City Council, through a strategic process of discussion, observation, and education, has developed the following set of focused priorities that help guide the development and implementation of policies, activities, and programs. These three areas are in no way all-encompassing of the City’s scope of work nor are they finite; rather, the strategic planning process is considered evolutionary and vision-based. All these areas work to further promote the vibrancy and sustainability of the Ukiah community and the organization.

Strategic Plan Priorities
• Enhance Our Neighborhoods: Foster a sense of small-town life by embracing our diversity and supporting our residents with quality services and vibrant places (People, Places, & Services). • Develop Quality Infrastructure: Implement a prioritized plan for maintaining and improving public infrastructure and utilities.
• Plan for the Future: Utilize sound principles for valley-wide planning • Grow our Businesses: Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues.
• Value our Team: Ensure Council and staff work together to create a more responsive and effective workplace environment.

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City of Ukiah, California xii
Introductory Section
Measure P
Measure P, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2014, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. It continued a sun-set transaction and use tax, known as Measure S (2005), accompanied by an advisory Measure T (2005). Measure P, however, was passed with no advisory measure. The purpose of Measure P is to augment public safety expenditures to provide a higher level of police and fire service to the community. Amounts collected from the tax are to be used in addition to the commitment of the General Fund and not in replacement of. The following graph demonstrates how the past revenue measure (S) and now Measure P have been employed with relation to the General Fund.

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City of Ukiah, California xiii
Introductory Section
2014-15 2020-21 Variance with
Baseline Actual Baseline

REVENUES
Measure P $ 2,465,521 $ 3,858,985 $ 1,393,464
Public safety revenues:

Police 1,001,861 296,441 (705,420)
Fire 37,235 196,930 159,695
Prop 172 53,471 102,251 48,780
General revenues (general fund) 7,922,006 9,100,101 1,178,095 Total revenues 11,480,094 13,554,708 2,074,614

EXPENDITURES
Current:

Police 8,709,693 9,308,866 (599,173)
Fire 2,553,407 4,166,491 (1,613,084)
Total current 11,263,100 13,475,357 (2,212,257)
Capital outlay:

Police 186,594 55,999 130,595
Fire 30,400 23,352 7,048
Total capital outlay 216,994 79,351 137,643
Total expenditures 11,480,094 13,554,708 (2,074,614)
Excess (deficiency) of revenues over expenditures $ - $ - $ -

PERSONNEL
Police:

Sworn 32 27 (5)
Miscellaneous 18 17 (1)
Total police 50 44 (6)
Fire:

City 11 18 7
UVSD 6 - (6)
Total fire 17 18 1
Notes:
1) Excludes parking enforcement expenditures and associated revenue. 2) Excludes dispatch service revenue, except for general fund contributions. 3) Includes a temporary reduction in budgeted officers and an increase to the number of CSO positions, an interim measure to meet work demands due to the number of sworn officer vacancies.
4) Does not include Emergency Management services, which are included in Public Safety on the Statement of Revenues, Expenditures, and Changes in Fund Balance.

City of Ukiah
Measure P
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Baseline to Current Actual For the Year Ended June 30, 2021
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City of Ukiah, California xiv
Introductory Section
Measure Y
Measure Y, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. Measure Z, passed in conjunction with Measure Y, was a distinctly separate, advisory Measure Y, indicating the voting public's preference for the use of Measure Y proceeds. Language for the two ballot measures was as follows:

Ballot Measure “Y”:

Shall Ordinance No. 1165 be adopted to impose as a general tax an additional transaction (sales) and use tax of on-half of one percent within the city limits of the City of Ukiah to fund essential City services, including street repair and maintenance. Such tax increase is estimated to raise $2,470,000 annually at a rate of 0.5 percent.

The duration of the tax will continue unless or until the tax is repealed by majority vote in a municipal election.

Advisory Measure “Z”:

Shall street repair and maintenance and related public infrastructure improvements be the exclusive use of the revenues from an additional 0.5 percent sales tax int eh City of Ukiah and add to and not replace current spending for street maintenance and repair.
2021 2020 2019 2018 2017 Total

OPERATING REVENUES
Measure Y 1/2 % transaction and use tax $ 3,862,145 $ 3,368,450 $ 3,016,205 $ 2,729,797 $ 528,057 $ 13,504,654

OPERATING EXPENSES
General and administrative 10,251 17,733 10,150 5,444 9,134 52,712 Basic maintenance and operations 598,296 644,771 387,449 306,143 294,084 2,230,742 Enhanced capacity for maintenance and operations 158,500 154,479 60,260 1,979 - 375,217 Less: general fund maintenance of effort (see Note 1) (399,840) (385,086) (375,597) (373,870) (350,000) (1,884,393) Total operating expenditures 367,207 431,897 82,262 (60,304) (46,782) 774,279

DEBT SERVICE AND CAPITAL PROJECTS
Debt service, I-Bank 75,538 75,638 75,638 75,638 - 302,452 Projects 2,688,687 2,689,759 4,526,294 1,841,113 38,460 11,784,313 Total debt service and capital projects 2,764,225 2,765,397 4,601,932 1,916,751 38,460 12,086,765 Total expenditures, Measure Y 3,131,432 3,197,294 4,684,194 1,856,446 (8,322) 12,861,044 Change in Measure Y resources 730,714 171,156 (1,667,989) 873,351 536,379 643,610 Measure Y resources - beginning (87,103) (258,259) 1,409,729 536,379 - Measure Y resources - ending $ 643,610 $ (87,103) $ (258,259) $ 1,409,729 $ 536,379 PROJECTS IN PROCESS (see Note 2)
Reconstruction $ 243,044
Total projects in process $ 243,044
City of Ukiah
Comparative Schedule of Resources and Uses
Measure Y
For the Years Ended June 30, 2021, 2020, 2019, 2018, and 2017 Measure Y
Notes:

1. This is the amount established by the City Council, per Resolution 2016-34, committing a minimum of $350,000 per year from the general fund on street maintenance and repair. That amount is to be adjusted annually by changes to the Construction Cost Index, as reported by the Engineering News-Record.

2. Projects in process are projects and activities that are in contract (encumbered) but which have not incurred expenditures as of June 30, 2021.

3. Measure Y resources for Public Works Engineering Services were enhanced in FY 2020 to support basic maintenance and operations due to increased focus on Measure Y activities.

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City of Ukiah, California xv
Introductory Section
Relevant Financial Policies
City Management has adopted a series of financial policies meant to guide its use and reporting of revenues.

Some of the more germane policies as related to this report include the following:
• All current operating expenditures will be paid for with current revenues, unless the use of reserves is approved by the City Council.
• Revenues will be conservatively estimated.
• Intergovernmental assistance in the form of grants and loans will be used to finance only:
o Those capital improvements which can be maintained and operated over time; or o Operating programs that can either be sustained over time or have a limited horizon. • A minimum fund balance reserve in the General Fund will always be maintained. The minimal, optimal level required for this reserve will be 25 percent of the General Fund operating budget. The reserve will be drawn down as a funding source of last resort and used only after other reserve accounts have been accessed.
• The unrestricted fund balance in the General Fund will be maintained at a level enough to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including the reserves for advances to other funds, deposits and prepaid items. • In general, one-time revenues will be used only to support capital or other non-recurring expenditures. One-time revenues may be used for operating programs only after an examination determines if they are subsidizing an imbalance between operating revenues and expenditures; and then only if a long-term forecast shows that the operating deficit will not continue. • The City invests all idle cash as determined by analysis of anticipated cash flow needs. Specific emphasis will be placed on future cash requirements when selecting maturity dates to avoid forced liquidations and the potential corresponding loss of investment earnings. • When the City finances capital projects by issuing bonds or acquiring loans, it will pay back those obligations within a period that is consistent with the useful life of the project. • The City requires an annual audit of the books of account, financial records, inventories and reports of all City officers and employees involved in the handling of financial matters by a qualified independent auditor.

Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements.

Acknowledgements
The preparation of this Annual Comprehensive Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department, the City’s Management Team, and the auditing firm of Van Lant & Fankhanel, LLP. We would like to express our appreciation to Brett Van Lant, CPA; Greg Fankhanel, CPA; the staff of Van Lant & Fankhanel; and to the members of the Finance Department, City Manager’s Office, and other administrative divisions who assisted and contributed to its development.

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City of Ukiah, California xvi
Introductory Section
We also would like to thank members of the City Council and all City departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully submitted,
Sage Sangiacomo
City Manager
Daniel Buffalo, MPA, CPA, CGMA
Finance Director
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City of Ukiah, California xvii
Introductory Section
GFOA Certificate of Achievement
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City of Ukiah, California xviii
Introductory Section
City of Ukiah, California
List of Officials
June 30, 2021

CITY COUNCIL

UKIAH REDEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS Juan Orozco Mayor
Jim Brown Vice Mayor
Doug Crane Council Member
Maureen Mulheren Council Member
Steve Scalmanini Council Member

EXECUTIVE MANAGEMENT TEAM
Sage Sangiacomo City Manager
Shannon Riley Deputy City Manager
David Rapport City Attorney
Kristine Lawler City Clerk
Justin Wyatt Chief of Police
Doug Hutchison Fire Authority Chief
Daniel Buffalo Finance Director
Sheri Mannion Human Resources/Risk Management Director
Tim Eriksen Public Works Director/City Engineer
Craig Schlatter Community Development Director
Greg Owen Airport Manager
Mel Grandi Electric Utility Director
Sean White Water Resources Director
Neil Davis Community Services Director
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City of Ukiah, California xix
Introductory Section
City Organizational Chart
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Financial Section
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Independent Auditor’s Report
The Honorable City Council
City of Ukiah, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Ukiah (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

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

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

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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Ukiah, as of June 30, 2021, 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.

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

Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, the schedules listed in the supplementary Information section of the table of contents, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The schedules listed in the supplementary information section of the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules listed in the supplementary information section of the table of contents are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 30, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Murrieta, California
December 30, 2021
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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 4 Management Discussion and Analysis (MD&A) (Required Supplementary Information)
The following discussion provides readers of the City of Ukiah’s financial statements a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with the Independent Auditor’s Report, the basic financial statements, and the accompanying notes.

Financial Highlights
• City assets and deferred outflows exceeded its liabilities and deferred inflows of resources by $166.9 million (net position) as of June 30, 2021.
• Deferred inflows and outflows related to the City’s unfunded accrued pension liabilities (UAL) with CalPERS changed from the prior year due to gains and losses recognized by CalPERS, including contributions made by the City.
• The City’s net position in total increased by $7.4 million during the fiscal year 2020-21. • The net position for governmental activities ended the year at $47.9 million, while the net position of business activities was $119.0 million.
• Of the $47.9 million in total governmental activities net position, a negative $18.5 million is characterized as unrestricted.
• The governmental activities saw increased revenues from most major sources. Tax sources rose in the amount of $2.6 million driven by sales taxes.
• Business activities saw revenue for charges for services increase by $3.1 million, resulting primarily from project reimbursements and changes to the rate revenue schedule for water and sewer services.

Overview of the Annual Comprehensive Financial Report
This Annual Comprehensive Financial Report is presented in three major parts:
1) Introductory section, which includes the Transmittal Letter and general information; and 2) Financial section, which includes the Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules; and 3) Statistical section, which includes financial, demographic and economic information on the City and surrounding community such as the value of taxable property, direct and overlapping tax rates, direct and overlapping debt, population and estimated per capita income.

This Management Discussion and Analysis is intended to serve as an introduction to the financial section. The statements of this section are comprised of components including financial highlights, government-wide financial statements, fund financial statements, a General Fund budgetary comparison and an economic outlook.

The Government-Wide Financial Statements
The government-wide financial analysis provides an overview of the City’s activities and is comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 5 about the financial position of the City as a whole, including all its assets, capital assets and liabilities on the fullaccrual basis, like that used by private sector entities. The Statement of Activities provides information about all the City’s revenues and expenses, also on the full-accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s major functions, which have been categorized as follows:

Governmental Activities
• General and administrative (City Council, City manager, City Clerk) • General government (e.g., administration, finance and accounting, human resources, legal, treasurer, etc.)
• Community development (planning and building)
• Roads and infrastructure (road maintenance, city engineer and public works,) • Housing and support programs (CDBG and HOME grants, etc.) • Redevelopment/Economic development
• Public safety (Police and Fire)
• Parks, buildings, and grounds (parks, building and grounds maintenance, etc.) • Culture and recreation (museum, pool, sports, etc.)
Business-type activities
• Airport
• Ambulance
• Conference Center
• Electric
• Golf Course
• Landfill
• Parking District
• Street lighting
• Wastewater
• Water
The Statement of Activities explains in detail the change in Net Position for the year. As indicated in the Financial Highlights, the City’s net position increased $9.7 million, which includes costs associated with depreciation and other non-budgeted items that may not influence cash or current financial resources but do affect net position.

The statement presents expenses categorized by function or activity. This is done so that a direct connection can be made to the cost of providing that service or function for the year. The statement then presents how that activity was financed using funds other than those that can be used for any purpose (i.e. taxes, fines, investment earnings, etc.). This is an attempt to demonstrate how self-sufficient an activity was during the year. The remainder is the net expense covered by general revenues.

All the City’s activities are grouped into either governmental activities or business-type activities, as explained below. The amounts in the Statement of Net Position and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a clear summary of the two.

Government-wide financial statements, prepared on the accrual basis, measure the flow of all economic resources of the City.

The Statement of Net Position and the Statement of Activities present information about the following:

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 6 • Governmental activities—all the City’s basic services are governmental activities. These services are supported by general city revenues, such as taxes, and by specific program revenues such as user fees and charges.

The City’s governmental activities also include the housing activities of the (former) Ukiah Redevelopment Agency, a separate legal entity for which the City is financially responsible. As of February 1, 2012, the Ukiah Redevelopment Agency was dissolved, and a successor agency was established to handle the remaining affairs and obligations of the former agency. The City of Ukiah elected to be that successor agency. Upon dissolution, the assets and liabilities of the former agency were transferred to a private-purpose trust fund, which is not reported on the government-wide statements but is presented in the fund-based statements using the full accrual basis of accounting.
• Business-type activities—The City’s enterprise activities of electric, water, wastewater, recycled water, solid waste disposal site, parking, street lighting, airport, conference center and golf course are reported in this area. Unlike governmental activities, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
The fund financial statements report the City’s operations in more detail than the entity-wide statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts.

Because the focus of fund statements is narrower than that of the government-wide, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. Both the governmental activities Statement of Net Position and the governmental funds Statement of Revenues, Expenditures, and Changes in Net Position provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Major funds account for the largest portion of the financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with supplementary schedules presenting the detail for each. Major funds are explained below.

The fund financial statements provide detailed information about each of the City’s most significant funds, termed major funds. The concept of major funds, and the determination of which are major, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column.

Supplementary Information present the detail of these non-major funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of City’s activities.

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 7 For the fiscal year ended June 30, 2021, the City’s major funds were as follows:

GOVERNMENTAL FUNDS:
• General Fund
• Streets Capital Projects
• Pension Stabilization
• HOME Program Income
PROPRIETARY FUNDS:
• Landfill
• Electric Enterprise
• Water Enterprise
• Wastewater Enterprise
The City’s enterprise funds (electric, water, wastewater and landfill) are reported as proprietary funds. Enterprise fund financial statements are prepared on the full-accrual basis, and include all their assets and liabilities, both current and long-term.

The City adopts an annual appropriated budget for all governmental and proprietary funds. Budgetary comparison statements for the General Fund and all major governmental funds are presented as required supplementary information (RSI), as required by GASB 34. Proprietary budget comparison statements are not required or presented.

Fiduciary Statements
The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations. The City maintains two fund types in this category: custodial and private purpose trust funds.

These funds include resources held by the City on behalf of the Ukiah Valley Sanitation District, The Russian River Watershed Association, and the Ukiah Valley Fire District and the Ukiah Redevelopment Successor Agency. They provide information about the cash balances and activities of these funds. In its presentation of these statements, the City has adopted the provisions of GASB 84: Fiduciary Activities.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found following the basic financial statement presentation of this report.

Other Supplementary Information
In addition to the basic financial statements and the accompanying notes, this report also presents combined statements, which illustrate the condition and activities of all non-major funds. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found subsequent to the notes section of this report.

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 8 Government-Wide Financial Analysis
Net Position
Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed net position for both governmental and business-type activities. 2021 2020 2021 2020 2021 2020
Current and other assets $ 40,455,893 $ 23,599,020 $ 36,056,999 $ 43,378,333 $ 76,512,892 $ 66,977,353 Capital assets(net) 58,404,222 53,075,972 178,049,774 173,928,238 236,453,996 227,004,210 Total assets 98,860,115 76,674,992 214,106,773 217,306,571 312,966,888 293,981,563 Deferred outflows of resources 35,276,895 6,786,028 18,409,328 2,572,408 53,686,223 9,358,436 Total assets and deferred outflows of resources 134,137,010 83,461,020 232,516,101 219,878,979 366,653,111 303,339,999 Current and other liabilities 5,879,729 1,796,527 3,200,728 5,784,110 9,080,457 7,580,637 Long-term liabilities 79,926,642 42,761,500 110,300,288 92,450,178 190,226,930 135,211,678 Total liabilities 85,806,371 44,558,027 113,501,016 98,234,288 199,307,387 142,792,315 Deferred inflows of resources 436,336 814,656 8,893 265,550 445,229 1,080,206 Total Liability and deferred inflows of resources 86,242,707 45,372,683 113,509,909 98,499,838 199,752,616 143,872,521

NET POSITION
Net investment in capital assets 50,915,097 47,339,972 126,053,127 119,060,268 176,968,224 166,400,240 Restricted 15,484,736 10,544,419 251,126 99,829 15,735,862 10,644,248 Unrestricted (18,505,530) (19,796,054) (7,298,061) 2,219,045 (25,803,591) (17,577,009) Total net position $ 47,894,303 $ 38,088,337 $ 119,006,192 $ 121,379,142 $ 166,900,495 $ 159,467,479 Governmental Activities Business-type Activities Total
The City’s net position as of June 30, 2021, was $166.9 million, an increase of $7.4 million. The overall change in net position is due in large part to a capital contribution to increased revenues from taxes as well as a reduction in expense related to unfunded pension liabilities. The City also accrued $9.98 million in grants, most notably for housing services and streets.

Restricted net position of $15.7 million is primarily comprised of cash and cash-equivalents for use as prescribed by an outside entity, such as a grantor, bond holder, covenant, or other restricting entity or instrument, or are in the form of long-term notes receivable and are unavailable for spending. In the case for FY 2021, this is held primarily for Housing Programs in the form of loans receivable and unspent bond proceeds. A much small portion is restricted for public safety activities and streets. It is important to note that restricted cash and investments may be different than restricted net position, e.g., cash restricted by a bond indenture as part of a bond issue is offset by the corresponding liability on the statement of net position, which is part of net investment in capital assets.

Unrestricted net position of negative $25.8 million includes cash and cash equivalents and may be used to meet the City’s ongoing obligations to citizens, creditors, and City-imposed designations (e.g. reserves, pending litigations, contingencies, capital projects, special grant and revenue programs and projects, etc.). It is negative primarily due to the City’s long-term obligations related to net pension liabilities, capital-related debt, and estimated landfill closure costs. The City’s working capital to meet current and other near-term operating and capital concerns was $52.2 million.

Activities
Expenses incurred by the City for FY 2021 year totaled $65.4 million, a decrease from FY 2020 of $3.0 million.

Much of this decrease was related to reductions to pension costs of the City UAL with CalPERS. Governmental Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 9 expenses totaled nearly $24.9 million or 38.0 percent of total expenses. Public safety costs represented most of the governmental expenses, followed by public works and recreation.

Business-type activities incurred $40.6 million of expense during the fiscal year, 62.0 percent of all City expenses.
2021 2020 2021 2020 2021 2020

REVENUES
Program revenues:

Charges for services $ 3,487,098 $ 2,157,277 $ 36,024,011 $ 32,912,229 $ 39,511,109 $ 35,069,506 Operating grants and contributions 7,890,530 4,431,684 759,696 2,830,622 8,650,226 7,262,306 Capital grants and contributions 771,125 76,898 556,033 24,876,967 1,327,158 24,953,865 General revenues:

Taxes 20,822,658 18,231,528 16,714 16,815 20,839,372 18,248,343 Franchise fees 1,815,271 1,742,671 - - 1,815,271 1,742,671 Use of money and property 266,006 696,930 352,781 950,715 618,787 1,647,645 Other revenue 67,776 246,319 22,223 - 89,999 246,319
Total revenues 35,120,464 27,583,307 37,731,458 61,587,348 72,851,922 89,170,655

EXPENSES
Governmental activities:

General government 838,727 99,829 - - 838,727 99,829
Public safety 13,659,736 12,812,411 - - 13,659,736 12,812,411 Housing and community development 1,460,134 2,833,311 - - 1,460,134 2,833,311 Public works 3,426,376 4,752,062 - - 3,426,376 4,752,062 Parks, buildings, and grounds 1,560,436 248,989 - - 1,560,436 248,989 Recreation and culture 2,640,963 3,724,424 - - 2,640,963 3,724,424 Economic development and redevelopment 290,261 403,808 - - 290,261 403,808 Interest on long-term debt 992,902 165,210 - - 992,902 165,210 Business-Type activities:

Airport - - 1,857,261 1,528,285 1,857,261 1,528,285
Ambulance Services - - 55,894 11,089 55,894 11,089
Conference Center - - (336,910) 503,445 (336,910) 503,445 Electric - - 19,695,234 18,854,227 19,695,234 18,854,227 Golf - - 144,680 251,078 144,680 251,078
Landfill - - 969,800 4,165,711 969,800 4,165,711
Parking District - - 137,930 171,705 137,930 171,705
Street Lighting - - 186,765 147,861 186,765 147,861
Wastewater - - 9,659,518 11,580,850 9,659,518 11,580,850 Water - - 8,179,199 6,196,274 8,179,199 6,196,274
Total expenses 24,869,535 25,040,044 40,549,371 43,410,525 65,418,906 68,450,569 Change in net position before transfers 10,250,929 2,543,263 (2,817,913) 18,176,823 7,433,016 20,720,086 Transfers (444,963) (510,543) 444,963 510,543 - -
Change in net position 9,805,966 2,032,720 (2,372,950) 18,687,366 7,433,016 20,720,086 Net position - beginning 38,088,337 36,055,617 121,379,142 102,691,776 159,467,479 138,747,393 Net position - ending $ 47,894,303 $ 38,088,337 $ 119,006,192 $ 121,379,142 $ 166,900,495 $ 159,467,479 Governmental Activities Business-type Activities Total
Governmental Activities
Net expenses of $10.5 million for the provision of these governmental activities was funded by general revenues, primarily in the general fund, including taxes, licenses, permits, franchise fees, and rents.

Public safety (police, fire, and emergency management services) comprised the largest activity segment of governmental expenses ($13.6 million, 60.32 percent). A significant portion of this expense is related to retirement benefit costs. Maintenance of streets and rights-of-way were the next largest expense of the City’s governmental activities. The City has deployed a significant portion of its discretionary and programmatic resources toward the improvement of City streets, walkways, and trails. Costs and programmatic revenues directly associated with governmental activities were as follows:

Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 10 Functions/Programs Expenses % of Total Program Revenues % of Total Net (Expense)
Revenue
General government $ 1,117 0.00% $ 277,222 2.28% $ 276,105 Public safety 13,659,736 60.32% 1,122,946 9.24% (12,536,790) Housing and community development 1,460,134 6.45% 6,076,588 50.02% 4,616,454 Public works 2,039,558 9.01% 2,275,693 18.73% 236,135
Parks, buildings, and grounds 1,560,436 6.89% 360,184 2.96% (1,200,252) Recreation and culture 2,640,963 11.66% 1,786,120 14.70% (854,843) Economic development and redevelopment 290,261 1.28% 250,000 2.06% (40,261) Interest on long-term debt 992,902 4.38% - 0.00% (992,902) Total $ 22,645,107 100.00% $ 12,148,753 100.00% $ (10,496,354) City of Ukiah
Expenses and Program Revenues
Governmental Activities
For the Year Ended June 30, 2020
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 11 Significant revenues for the City came from taxes (59.4 percent), which included sales taxes (Bradley-Burns, Measure P and Measure Y transactions and use taxes), property taxes and transient occupancy taxes. Despite the continuation of the COVD-19 pandemic, tax revenues overall were higher than in the prior year due to increases to the sales and property tax base from a strong and diversified local economy.

From highest to lowest, revenues directly associated with governmental collections were as follows. This information is presented in greater detail than that found on the Statement of Activities or Changes in Fund Balance to allow the reader to gain a more in-depth understanding of the sources and uses of revenue.

City of Ukiah
Revenues by Source
Governmental Activities
For the Year Ended June 30, 2021
Revenues Source Revenue % of Total
Sales tax $ 15,535,021 44.23%
Operating grants and contributions 7,890,530 22.47%
Charges for services 3,487,098 9.93%
Property tax 3,408,846 9.71%
Franchises 1,815,271 5.17%
Transient occupancy 1,367,852 3.89%
Capital grants and contributions 771,125 2.20%
Business license 560,527 1.60%
Use of money and property 266,006 0.76%
Other revenue 17,052 0.05%
Other taxes 1,136 0.00%
Total $ 35,120,464 100.01%
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 12 Business-type Activities
In the fiscal year ended June 30, 2021, business-type activities decreased the City’s net position by $2.3 million.

That loss came from net revenues, which is defined as total expenses minus program revenues, which include charges for service, as well as operating and capital grants and contributions.

Funds Expenses % of Total Program Revenues % of Total
Net (Expense)
Revenue
Airport $ 1,857,261 4.58% $ 1,946,228 5.21% $ 88,967
Ambulance Services 55,894 0.14% 79,891 0.21% 23,997
Conference Center (336,910) -0.83% 212,201 0.57% 549,111 Electric 19,695,234 48.57% 18,761,775 50.25% (933,459)
Golf 144,680 0.36% 175,266 0.47% 30,586
Landfill 969,800 2.39% 716,223 1.92% (253,577)
Parking District 137,930 0.34% 100,679 0.27% (37,251)
Street Lighting 186,765 0.46% 183,278 0.49% (3,487)
Wastewater 9,659,518 23.82% 7,935,941 21.25% (1,723,577) Water 8,179,199 20.17% 7,228,258 19.36% (950,941)
Total $ 40,549,371 100.00% $ 37,339,740 100.00% $ (3,209,631) Expenses and Program Revenues
Business-Type Activities
For the Year Ended June 30, 2021
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 13 General revenues for business-type activities include rents and interest earnings as well as some property taxes collected by the City’s parking district. The general revenues were down from the prior year approximately 50 percent resulting primarily from smaller returns on the City’s investment portfolio from less cash invested. Charges for services, however, was higher than the prior year due certain reimbursable jobs in the electric utility as well as increased rate revenue from the scheduled adjustment to water and sewer rates in October.

Revenues by Source
Business-Type Activities
For the Year Ended June 30, 2021
Revenues Source Revenue % of Total
Charges for services $ 36,024,011 95.47%
Operating grants and contributions 759,696 2.01%
Capital grants and contributions 556,033 1.47%
Property tax 16,714 0.04%
Use of money and property 352,781 0.93%
Other revenue 22,223 0.06%
Total $ 37,731,458 100.00%
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 14 Capital Assets and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities at June 30, 2021 totaled $236.5 million (net of accumulated depreciation). The investment in capital assets includes land, buildings and improvements, equipment, vehicles, infrastructure, and construction in progress. Depreciation expense for the year, government-wide, totaled $7.5 million.
2021 2020 2021 2020 2021 2020
Land $ 4,092,630 $ 2,705,812 $ 7,042,727 $ 6,932,722 $ 11,135,357 $ 9,638,534 Infrastructure and network 55,602,715 55,602,715 165,703,874 157,263,611 221,306,589 212,866,326 Buildings and improvements 21,862,814 21,860,720 63,283,228 63,440,511 85,146,042 85,301,231 Construction in progress 6,971,422 1,122,971 8,470,658 7,884,420 15,442,080 9,007,391 Machinery equipment and vehicles 10,045,491 11,642,531 13,562,385 14,898,769 23,607,876 26,541,300 Intangible assets - - 180,000 90,000 180,000 90,000
98,575,072 92,934,749 258,242,872 250,510,033 356,817,944 343,444,782 Less: accumulated depreciation (40,170,850) (39,858,777) (80,193,098) (76,581,792) (120,363,948) (116,440,569) Capital assets, net $ 58,404,222 $ 53,075,972 $ 178,049,776 $ 173,928,241 $ 236,453,996 $ 227,004,213 Comparative Statement of Capital Assets
June 30, 2020 and 2021
Governmental Activities Business-type Activities Total
Additional information on the City’s capital assets can be found in Note 6, along with the City’s capitalization policies in Note 1 in the notes to the basic financial statements. Reasons for the change in capital assets were engagement in major work on several construction projects, including work on the airport runway and several streets and rights-of-way.

Long-Term Liabilities
The City’s outstanding Noncurrent liabilities, including bonds, loans payable, the net pension liability and compensated absences totaled over $135 million as of June 30, 2021. The most significant obligation added this year were additions to the landfill closure, post closure, and corrective action plan, the engineering estimates for which were updated in 2019 and adjusted for inflation. However, a more accurate estimate of total landfill closure, post-closure, and corrective action costs will not be determined until contractor bids are received. 2021 2020 2021 2020 2021 2020
2017 CalTrans Aeronautics Loan - Airport $ - $ - $ 159,635 $ 169,999 $ 159,635 $ 169,999 2016 Water Revenue Refunding Bonds - - 8,620,000 9,160,000 8,620,000 9,160,000 2016 unamortized premium - - 1,358,275 1,383,428 1,358,275 1,383,428 Lawsuit settlement liability - - 2,000,000 3,000,000 2,000,000 3,000,000 Landfill closure and post-closure - - 19,297,593 19,063,628 19,297,593 19,063,628 2017 SWRCB recycled water loan - - 18,238,738 16,778,411 18,238,738 16,778,411 Series 2020 Wastewater Refunding Bonds - - 23,620,000 25,010,000 23,620,000 25,010,000 2017 fire engine lease 763,396 869,798 - - 763,396 869,798 2017 computer equipment lease 58,280 116,418 - - 58,280 116,418 2017 I-Bank financing lease 3,751,776 3,837,218 - - 3,751,776 3,837,218 2020 fire brush truck equipment lease 207,216 227,606 - - 207,216 227,606 2020 fire self-contained breathing apparatus equipment 328,457 - - - 328,457 - Series 2020A Community Facilities Lease Revenue Bonds 2,380,000 - - - 2,380,000 - 2020A unamortized premium 351,130 - - - 351,130 -
Series 2020B CalPERS Taxable Lease Revenue Bonds 32,426,592 - 17,448,408 - 49,875,000 - Claims payable 430,458 573,944 99,166 148,749 529,624 722,693 Net pension liability 38,156,746 36,143,162 18,895,630 17,210,447 57,052,376 53,353,609 Compensated absences 1,072,592 993,354 562,843 525,516 1,635,435 1,518,870 Total $ 79,926,642 $ 42,761,500 $ 110,300,288 $ 92,450,178 $ 190,226,930 $ 135,211,678 Activities Activities Total
Long-term Obligations
Two-Year Comparison
Governmental Business-type
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 15 Additional information on the City’s outstanding long-term liabilities can be found in Note 7.

Fund Financial Analysis
The City employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As was mentioned earlier, fund financial statements present information based on current financial resources and expenditures. Essentially, they are snapshots of the condition of major funds in the nearterm; whereas, the government-wide statements present the entire picture of the reporting entity. 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. For comparison purposes, fund statements correlate well to the City’s adopted budget.

Governmental Funds
As of June 30, 2021, the City’s governmental fund balance was $30.7 million. GASB 54 established five new criteria for categorizing that balance based on its restricted and unrestricted use. The five categories are the following:
• Non-spendable fund balance
• Restricted fund balance
• Committed fund balance
• Assigned fund balance
• Unassigned fund balance.

A more detailed discussion of these fund balance categories is presented in Note 1.

General Fund Financial Condition
The City’s General Fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Ukiah and the City Council. General fund revenues were up nearly $4.6 million from the year prior, driven by stronger than anticipated sales tax growth (even with the continuation of the COVID-19 pandemic) and the receipt of grant revenues. A diverse local economic base supports this growth. Similarly, total expenditures were higher by $2.2 million due mostly to lower capital outlays. After other financing sources and uses were accounted for, fund balance increased by $1.9 million.

Other governmental funds reported a net increase in fund balance of $8.8 million, primarily influenced by an addition of $3.5 million of cash from bond proceeds refunding the City’s payment to CalPERS for its 2021 unfunded accrued liability payment. This amount was placed in a newly created fund as a reserve for future advanced prepayment of unfunded pension liabilities. These funds also include revenues from many federal, state and special district grants which vary greatly from year to year.

Governmental funds reported $5.04 million in non-spendable fund balance at the end of the fiscal year. This is comprised of long-term interfund advances held by the General Fund as well as reinstatement of a loan receivable from the Ukiah Redevelopment Successor Agency.

Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 16 The balance of $15.3 million in restricted fund balance - those financial resources can be spent only on specific activities as defined by outside entities (e.g. a grantor, state agency, statute, etc.) – is found in special revenue funds law enforcement, housing and streets, and infrastructure.

Committed fund balance of $415 thousand consists primarily of several select capital projects earmarked by the City Council through resolution. $4.9 million in assigned fund balance consists of reserve amounts designated by management for future capital acquisition and specific projects, including maintaining a reserve for the advanced payment of pension liabilities.

The remaining amount of $4.9 million of unassigned fund balance result primarily from general fund reserves and deferred revenues in several special revenue funds that have not been converted to revenues but are expected to in the following year. Additional information on deficit fund balances can be found in Note 2.

Proprietary Funds
Enterprise Fund - Landfill
The net position of the landfill closure and post-closure fund increased $223 thousand from a negative 9.4 million to $9.2 million. Surcharge amounts collected at the Ukiah Transfer Station and transferred to the Landfill fund helped to bolster it in preparation for final closure and remediation activities forthcoming.

Enterprise Fund - Electric
The net position of the electric enterprise fund decreased $817 thousand primarily due to decreased pandemic-related rate revenue in commercial accounts. Operating expenses exceeded operating revenues by $757 thousand, driven by increased personnel costs related to market-based salary adjustments.

Enterprise Fund - Water
The net position of the water enterprise fund decreased $563 thousand primarily due to decreased pandemicrelated rate revenue. Operating expenses nominally exceeded operating revenue while non-operating expenses, influenced by interest and fiscal costs, outpaced non-operating revenue.

Enterprise Fund - Wastewater
The net position of the wastewater enterprise fund decreased $1.9 million. Operating revenue was lower than operating expenses, resulting in an operating loss of $977 thousand. The change was influenced in large part by operating costs (notably insurance premium increases) that exceeded pandemic-related decreasing rate revenue. The adoption of rate adjustments in October 2020 helped to reduce the effect. Further, nonoperating expenses outpaced revenues by $1.6 million driven by interest and other fiscal charges.

Budgetary Comparison
A comparison of budget to actual for major governmental funds is presented in the fund financial statements.

These statements and the notes are presented as additional information to show that appropriations are being spent as authorized by the City Council. Budgetary control for the City rests at the fund level.

General Fund
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 17 The original budget estimated $20.2 million in revenues. It was increased to $26.6 in anticipation of grant revenues for capital projects. Revenues in the General Fund were $203 thousand higher than was budgeted primarily due to increased sales taxes. Additionally, property taxes received were higher than originally estimated due to adjustments to residual property tax increments passed to the City from the former Ukiah Redevelopment Agency.

Expenditures were $1.7 million more than budget appropriations primarily due to various increased operating costs related to overtime and part-time personnel costs. They were offset by less than expected capital expenditures, resulting in total expenditures in the fund being $573 thousand more than expected. These costs were difficult to plan for as the City responded to the COVID-19 pandemic.

Policy Resolution No. 39 (2013), passed the Ukiah City Council and incorporated in the City’s financial management policies, established an unrestricted fund balance of at least 25 percent of annual operating expenditures in the General Fund. Its purpose is to serve as a strategic reserve, ensuring liquidity of the General Fund and to make certain adequate resources are available to manage economic uncertainties. The General Fund ended the year with a fund balance (consisting of nonspendable, committed, and unassigned amounts) of $11.2 million, representing 52.5 percent of operating expenditures for the year.

Variance with
Original Final Actual Final Budget

REVENUES
Total revenues 20,207,269 26,636,208 26,839,114 202,906

EXPENDITURES
Current:

General government (235,895) (227,042) 60,132 (287,174) Public safety 11,906,160 12,125,672 12,701,313 (575,641) Housing and community development 968,815 1,142,970 1,044,627 98,343 Public works 1,246,454 1,639,473 1,487,609 151,864
Parks, buildings, and grounds 1,152,993 1,156,049 1,189,386 (33,337) Recreation and culture 1,584,385 1,582,533 2,435,717 (853,184) Economic development and redevelopment 99,923 99,923 256,392 (156,469) Total current 16,722,835 17,519,578 19,175,176 (1,655,598) Total debt service 304,780 304,780 300,874 3,906
Total capital outlay 682,000 2,956,754 1,877,910 1,078,844 Total expenditures 17,709,615 20,781,112 21,353,960 (572,848) Excess (deficiency) of revenues over expenditures 2,497,654 5,855,096 5,485,154 (369,942)

OTHER FINANCING SOURCES (USES)
Total other financing sources (uses) (2,497,653) (3,272,579) (3,558,932) (286,353) Net change in fund balances 1 2,582,517 1,926,222 (656,295) Fund balances - beginning 9,303,307 9,303,307 9,303,307 - Fund balances - ending $ 9,303,308 $ 11,885,824 $ 11,229,529 $ (656,295) Budgeted Amounts
City of Ukiah
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 18 Economic Outlook
Despite the onset of the COVID-19 pandemic in March of 2020 and its subsequent effects, the City’s financial position remained stable to end the fiscal year. A diverse economic base serving as a hub for the greater geographic region around the city and Mendocino County was largely responsible. City management took a very conservative approach to revenue estimation when preparing the City’s 2021 budget and adjusted appropriations accordingly, particularly in the general fund, which resulted in positive financial outcomes for the general fund in particular. Management continued that approach into the fiscal year 2021-22.

The following economic factors currently affect the City of Ukiah and were considered in developing the 2021-22 fiscal year budget.
• Sales tax revenue and transient occupancy taxes were estimated to increase by marginal amounts respectively from the prior year due, even in considering the larger economic recessionary effects of the COVID-19 pandemic. General fund appropriations were nonetheless adjusted to continue to generate a budgetary surplus as a hedge against unexpected revenue shortfalls.
• An increase in water and sewer rates beginning October 1, 2021 was approved by the City Council and went into effect for commercial and residential rate payers. This was in response to anticipated current and future expenditure increases in operating costs, capital outlays, and settlement payments to the Ukiah Valley Sanitation District. The adjustment to rates will continue each July 1 for the next 4 years.
• Rate revenue in electric enterprise funds was estimated to be relatively unchanged from the year prior, which anticipated marginal increases in commercial accounts as the City’s businesses continue to adjust and recover from the economic effects of the pandemic. • A property tax rate increase of 2 percent to fund increases in recurring general fund obligations. • Implementation of increased rates on the City of Ukiah’s current fee schedule. • Interest rates in municipal financial markets are expected to remain at record low levels throughout fiscal year 2021-22. The City intends to continue efforts to restructure its outstanding debt obligations to take advantage of the current municipal lending environment. • On the expenditure side, regular increases are expected in health insurance premiums, as well as pension costs.
• Departmental budgets were held to comparably amounts from 2020-21. • Contract adjustments with all City of Ukiah’s bargaining groups resulted in the advancement of the final cost of living adjustment from its previously scheduled implementation date.

Maintaining and growing revenue streams to the City remains a high priority for staff. Existing sources – predominately sales and property taxes – are stable, and our estimates for the future will continue to be conservative. Expenses related to personnel (primarily in health premium and pension costs) are increasing at a substantial, though manageable, pace. We continue to look to find cost saving measures to help offset these expenses. The challenge remains providing the highest level and quality of service that the community needs, expects and deserves.

Attachment 1

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City of Ukiah, California
Financial Section: Required Supplementary Information | MD&A Page | 19 Requests for Information
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions regarding this report, or request for additional information, should be made to the Finance Department, City of Ukiah, CA, 95482.

Attachment 1

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 20 Government-Wide Financial Statements
The Statement of Net Position reports the difference between the City’s total assets and the City’s total liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all City Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these are followed by a total column which presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. The City’s Business-Type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, the Ukiah Redevelopment Agency and the City of Ukiah Municipal Sewer District, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for their activities.

Attachment 1

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 21 City of Ukiah, California
Statement of Net Position
June 30, 2021
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments $ 15,763,095 $ 20,133,777 $ 35,896,872 Restricted cash and investments 2,864,287 - 2,864,287
Investment in NCPA reserves - 7,749,546 7,749,546
Accounts receivables (net allowance for uncollectibles) 6,252,963 7,680,913 13,933,876 Notes and loans receivable 121,175 - 121,175
Inventories and prepaids 207,097 1,430,648 1,637,745
Land held for resale 2,435,114 - 2,435,114
Internal balances 943,385 (943,385) -
Noncurrent assets:

Notes and loans receivable 11,868,777 5,500 11,874,277
Capital assets not being depreciated:

Land 4,092,630 7,042,727 11,135,357
Construction in progress 6,971,422 8,470,658 15,442,080 Intangible assets - 180,000 180,000
Capital assets, net depreciation:

Buildings and improvements 14,013,246 29,341,998 43,355,244 Infrastructure and network 29,801,312 127,499,366 157,300,678 Machinery equipment and vehicles 3,525,612 5,515,025 9,040,637 Total assets 98,860,115 214,106,773 312,966,888

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow of resources related to pension 35,276,895 18,409,328 53,686,223 Total deferred outflows of resources 35,276,895 18,409,328 53,686,223 Total assets and deferred outflows of resources 134,137,010 232,516,101 366,653,111

LIABILITIES
Accounts payable 3,998,603 2,232,794 6,231,397
Accrued payroll liabilities 1,241,136 650,835 1,891,971 Interest payable 639,990 311,375 951,365
Deposits payable - 5,724 5,724
Noncurrent liabilities:

Due within one year 1,124,841 3,914,868 5,039,709
Due in more than one year 78,801,801 106,385,420 185,187,221 Total liabilities 85,806,371 113,501,016 199,307,387

DEFERRED INFLOWS OF RESOURCES
Deferred inflow of resources related to pension 436,336 8,893 445,229 Total deferred inflows of resources 436,336 8,893 445,229 Total liabilites and deferred inflows of resources 86,242,707 113,509,909 199,752,616

NET POSITION
Net investment in capital assets 50,915,097 126,053,127 176,968,224 Restricted for:

Housing and community development 13,749,628 - 13,749,628 NCPA Projects - 251,126 251,126
Parks and recreation:

Expendable 8,460 - 8,460
Nonexpendable 137,576 - 137,576
Public safety 920,250 - 920,250
Public works 668,822 - 668,822
Unrestricted (18,505,530) (7,298,061) (25,803,591)
Total net position $ 47,894,303 $ 119,006,192 $ 166,900,495 The accompanying notes are an integral part of these financial statements.

Primary Government
Attachment 1

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 22 City of Ukiah, California
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Primary government:

Governmental activities:

General government $ 838,727 $ 78,607 $ 198,615 $ - $ (561,505) $ - $ (561,505) Public safety 13,659,736 326,986 452,197 343,763 (12,536,790) - (12,536,790) Housing and community development 1,460,134 573,410 5,503,178 - 4,616,454 - 4,616,454 Public works 3,426,376 542,554 1,604,792 128,347 (1,150,683) - (1,150,683) Parks, buildings, and grounds 1,560,436 60,400 769 299,015 (1,200,252) - (1,200,252) Recreation and culture 2,640,963 1,655,141 130,979 - (854,843) - (854,843) Economic development and redevelopment 290,261 250,000 - - (40,261) - (40,261) Interest on long-term debt 992,902 - - - (992,902) - (992,902) Total governmental activities 24,869,535 3,487,098 7,890,530 771,125 (12,720,782) - (12,720,782) Business-type activities:

Airport 1,857,261 1,390,195 - 556,033 - 88,967 88,967
Ambulance Services 55,894 79,891 - - - 23,997 23,997
Conference Center (336,910) 210,000 2,201 - - 549,111 549,111 Electric 19,695,234 18,141,046 620,729 - - (933,459) (933,459) Golf 144,680 38,500 136,766 - - 30,586 30,586
Landfill 969,800 716,223 - - - (253,577) (253,577)
Parking District 137,930 100,679 - - - (37,251) (37,251) Street Lighting 186,765 183,278 - - - (3,487) (3,487)
Wastewater 9,659,518 7,935,941 - - - (1,723,577) (1,723,577) Water 8,179,199 7,228,258 - - - (950,941) (950,941)
Total business-type activities 40,549,371 36,024,011 759,696 556,033 - (3,209,631) (3,209,631) Total primary government $ 65,418,906 $ 39,511,109 $ 8,650,226 $ 1,327,158 (12,720,782) (3,209,631) (15,930,413) 3,408,846 16,714 3,425,560
15,535,021 - 15,535,021
1,815,271 - 1,815,271
1,367,852 - 1,367,852
560,527 - 560,527
1,136 - 1,136
266,006 352,781 618,787
17,052 22,223 39,275
(444,963) 444,963 -
22,526,748 836,681 23,363,429
9,805,966 (2,372,950) 7,433,016
38,088,337 121,379,142 159,467,479
$ 47,894,303 $ 119,006,192 $ 166,900,495
Total general revenues, special items, and transfers
Change in net position
Net position - beginning
Net position - ending
The accompanying notes are an integral part of these financial statements.

Transfers
Program Revenues Primary Government
General revenues:

Property tax
Sales tax
Franchise fees
Transient occupancy
Business license
Other taxes
Use of money and property
Other revenue
Net (Expense) Revenue and Changes in Net Position
Attachment 1

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 23 Fund Financial Statements
Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Governmental Funds by the City for fiscal 2021. Individual nonmajor funds may be found in the Supplemental section.

Governmental Funds
General Fund
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures and interest income.

Expenditures are made for community development, public safety, public works, and other services.

Streets Capital Improvement
This capital project fund accounts for street and right-of-way capital projects supported primarily by Measure Y resources, committed by the City Council through resolution.

Pension Debt Service
This debt service fund was created in 2021 to account for resources accumulated, used, and reserved for the retirement of lease revenue bonds.

HOME Program Income
The HOME Program Income Fund is a special revenue fund used to account for resources accumulated and held resulting from current and prior HOME program Grant activities. .

Attachment 1

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 24 City of Ukiah, California
Balance Sheet
Governmental Funds
June 30, 2021
General Fund
Home Program
Income
Streets Capital
Improvements
Pension Debt
Service
Total Nonmajor
Funds
Total
Governmental
Funds
ASSETS
Cash and investments $ 3,596,165 $ 1,078,591 $ 508,606 $ 3,488,664 $ 5,720,644 $ 14,392,670 Restricted cash and investments - - - 5,316 8,971 14,287 Accounts receivable 1,663,429 32,874 - - 170,954 1,867,257 Taxes receivable 2,898,954 - - - - 2,898,954
Notes receivable 3,924 8,159,796 - - 1,705,057 9,868,777 Interest receivable 1,915 280 - 1,747 1,847 5,789
Grants and subventions receivable 910,106 186,375 - - 235,569 1,332,050 Inventories and prepaids 207,097 - - - - 207,097
Due from other funds 678,260 - - - - 678,260
Advances to other funds 2,013,542 - - - - 2,013,542
Land held for resale - - - - 2,435,114 2,435,114
Advance to Successor Agency 2,000,000 - - - - 2,000,000 Due from other agencies 121,175 - - - - 121,175
Total assets $ 14,094,567 $ 9,457,916 $ 508,606 $ 3,495,727 $ 10,278,156 $ 37,834,972

LIABILITIES
Accounts payable $ 1,069,402 $ 1,080,805 $ 1,057,005 $ - $ 488,874 $ 3,696,086 Accrued payroll liabilities 885,530 - 6,990 - 11,783 904,303 Due to other funds - - - - 230,760 230,760
Advance from other funds - - - - 332,611 332,611
Total liabilities 1,954,932 1,080,805 1,063,995 - 1,064,028 5,163,760

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - grants and subventions 910,106 863,907 - - 243,498 2,017,511 Total deferred inflow of resources 910,106 863,907 - - 243,498 2,017,511 Total liabilities and deferred inflows of resources 2,865,038 1,944,712 1,063,995 - 1,307,526 7,181,271

FUND BALANCES (DEFICITS)
Nonspendable:

Interfund loans 2,013,542 - - - - 2,013,542
Inventories and prepaids 207,097 - - - - 207,097
Notes receivable 2,003,924 - - - - 2,003,924
Riparian corridor management - - - - 137,576 137,576
Restricted:

CDBG activities - - - - 461,071 461,071
Certifications and training - - - - 50,371 50,371
Federal stimulus - - - - 468 468
Housing activities - 7,513,204 - - 5,724,514 13,237,718 Project reserve - - - - 14,664 14,664
Public safety - - - - 920,250 920,250
Riparian corridor management - - - - 8,460 8,460
Streets and rights-of-way - - - - 654,158 654,158
Committed:

Park development - - - - 42,204 42,204
Planning activities - - - - 296,641 296,641
Solid waste management - - - - 76,789 76,789
Assigned:

Capital projects - - - - 35,420 35,420
Economic development 186,134 - - - - 186,134
Equipment reserve - - - - 380,569 380,569
Park Development - - - - 6,033 6,033
Pension reserve - - - 3,495,727 - 3,495,727
Project reserve - - - - 888,617 888,617
Unassigned: 6,818,832 - (555,389) - (727,175) 5,536,268 Total fund balances (deficits) $ 11,229,529 $ 7,513,204 $ (555,389) $ 3,495,727 $ 8,970,630 $ 30,653,701 Total liabilities and fund balances (deficits) $ 14,094,567 $ 9,457,916 $ 508,606 $ 3,495,727 $ 10,278,156 $ 37,834,972 The accompanying notes are an integral part of these financial statements.

Attachment 1

Page 659 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 25 City of Ukiah, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position For the Fiscal Year Ended June 30, 2021
$30,653,701
95,620,194
(39,449,881)
56,170,313
(885,429)
(38,156,746)
(763,396)
(3,751,776)
(207,216)
(328,457)
(32,426,592)
(76,519,612)
35,276,895
(436,336)
34,840,559
1,348,935
1,348,935
(617,104)
(617,104)
2,017,511
2,017,511
$47,894,303
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position are different because:

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

Capital assets
Accumulated depreciation
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds:

The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.

Compensated absences
Net pension liability
2017 fire engine lease
2017 I-Bank financing lease
2020 Fire brush truck
Fire aparatus
Accrued interest on long-term debt is not due and payable in the current period and is not reported in the funds.

Long-term assets are not available for current use.

Amounts are unavailable under the modified accrual basis of accounting.

Net position of governmental activities
2020B CalPERS Taxable Lease Revenue Bonds
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds:

Deferred outflows - pension related items
Deferred inflows - pension related items
Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds.

Attachment 1

Page 660 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 26 City of Ukiah, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2021
General Fund
Home
Program
Income
Streets
Capital
Improvements
Pension Debt
Service
Total
Nonmajor
Funds
Total
Governmental
Funds

REVENUES
Property tax $ 3,408,846 $ - $ - $ - $ - $ 3,408,846
Sales tax 15,535,021 - - - - 15,535,021
Transient occupancy 1,362,134 - - - - 1,362,134
Business license tax 484,533 - - - 25,270 509,803
Other taxes 1,136 - - - - 1,136
Franchise fees 1,815,271 - - - - 1,815,271
Charges for service 2,434,204 - - - 70,934 2,505,138
Licenses and permits 276,752 - - - - 276,752
Grants contributions and donations 1,226,237 - 96,284 - 370,990 1,693,511 Use of money and property 52,427 147,587 270 (9,588) 732,114 922,810 Intergovernmental 77,668 4,783,983 - - 1,174,603 6,036,254 Fines penalties and forfeitures 25,933 - - - - 25,933
Interest, rent, and concessions - 28,216 - - (372) 27,844 Miscellaneous 138,952 - - - 20,004 158,956
Total revenues 26,839,114 4,959,786 96,554 (9,588) 2,393,543 34,279,409

EXPENDITURES
Current:

General government 60,132 - - 28,366,430 2,483 28,429,045 Public safety 12,701,313 - - - 785,114 13,486,427
Housing and community development 1,044,627 218,723 - - 196,784 1,460,134 Public works 1,487,609 - 168,999 - 75,843 1,732,451
Parks, buildings, and grounds 1,189,386 - - - 880 1,190,266 Recreation and culture 2,435,717 - - - 81,656 2,517,373 Economic development and redevelopment 256,392 - - - 33,869 290,261 Debt service:

Interest 90,242 - 46,488 - 2,340 139,070
Cost of issuance - - - 554,846 - 554,846
Principal 56,392 - 29,050 - - 85,442
Capital lease principal 127,291 - - - - 127,291
Capital lease interest 26,949 - - - - 26,949
Capital outlay:

Public safety 65,051 - - - 14,300 79,351
Public works 1,812,859 - 2,687,602 - 1,133,087 5,633,548 Recreation and culture - - - - 63,302 63,302
Total expenditures 21,353,960 218,723 2,932,139 28,921,276 2,389,658 55,815,756 Excess (deficiency) of revenues over expenditures 5,485,154 4,741,063 (2,835,585) (28,930,864) 3,885 (21,536,347)

OTHER FINANCING SOURCES (USES)
Transfers in 129,001 - 3,662,605 - 478,156 4,269,762
Transfers out (3,687,933) - (478,156) - (548,635) (4,714,724) Issuance of debt - - - 32,426,591 343,763 32,770,354
Total other financing sources (uses) (3,558,932) - 3,184,449 32,426,591 273,284 32,325,392 Net change in fund balances 1,926,222 4,741,063 348,864 3,495,727 277,169 10,789,045 Fund balances - beginning 9,303,307 2,772,141 (904,253) - 8,693,461 19,864,656 Fund balances - ending $11,229,529 $ 7,513,204 $ (555,389) $ 3,495,727 $ 8,970,630 $30,653,701 The accompanying notes are an integral part of these financial statements.

Attachment 1

Page 661 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 27 City of Ukiah, California
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
For the Fiscal Year Ended June 30, 2021
$10,789,045
5,776,202
(2,041,122)
899,161
4,634,241
(2,013,584)
(80,994)
(2,094,578)
28,490,867
378,320
28,869,187
227,540
(32,426,591)
(343,763)
(32,542,814)
497,291
(548,690)
202,284
$9,805,966
Changes to deferred inflows: pension-related items
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.

Capital outlay
Depreciation expense
Gain on disposal of assets
The amounts below included in the Statement of Activities do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change):

Change to net pension liability
Compensated absence expense
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in deferred inflows and deferred outflows related to the net pension liability:

Changes to deferred outflows: pension-related items
Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds. The net revenue (expense) of the internal services funds is reported with governmental activities.

Change in net position of governmental activities
The accompanying notes are an integral part of these financial statements.

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmnetal funds.

Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows:

Principal paid on loans and capital leases
Issuance of loan
Issuance of capital lease
Some revenues reported in the Statement of Activities are not considered available to finance current expenditures and, therefore, are not reported as revenues in the governmental funds.

Accrued interest for long-term debt. This is the net change in accrued interest for the current period.

Attachment 1

Page 662 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 28 Proprietary Funds
Proprietary funds account for City operations financed and operated in a manner like 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 maintains four primary enterprise funds: electric, water, sewer, and landfill.

Landfill
This is the fund used to account for activities related to the closure, post-closure, and corrective action plan of the City of Ukiah landfill.

Electric Enterprise Fund
The Electric Utility provides electrical services to the citizens of Ukiah, including 24-hour, 365-day response to emergency service calls for customer power problems, and outages. Additionally, the enterprise is responsible for making high voltage power lines safe for Fire & Police personnel at structure fires, automobile accidents and to make other situations where electric lines are near emergency crews.

Water Enterprise Fund
Chapter 13.04 of the Ukiah Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received.

Sewer Enterprise Fund
Chapter 13.20 of the Ukiah Municipal Code provides the authority for the City to operate sewer system.

Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm damage reimbursement, and insurance rebates have been credited to this fund.

The City also employs the use of internal service funds.

Internal Service Funds
Established to account for the costs of activities primarily serving multiple department and funds. Such funds may also provide services to external users, such as other governmental entities.

Attachment 1

Page 663 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 29 City of Ukiah, California
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Activities
Landfill Electric Water Wastewater
Total Nonmajor
Funds
Total Enterprise
Funds
Internal Service
Funds
ASSETS
Current assets:

Cash and investments $ 9,650,782 $ 305,884 $ 5,560,508 $ 3,620,429 $ 158,008 $ 19,295,611 $ 2,208,590 Investment in NCPA Reserves - 7,749,546 - - - 7,749,546 - Restricted cash and investments - - - - - - 2,850,000
Accounts receivable 106,075 3,672,638 1,647,070 1,525,769 62,400 7,013,952 148,911 Interest receivable 2,409 1,185 2,210 1,970 (91) 7,683 - Grants and subventions receivable - - - - 659,279 659,279 - Inventories and prepaids - 1,310,112 102,516 18,020 - 1,430,648 - Total current assets 9,759,266 13,039,365 7,312,304 5,166,188 879,596 36,156,719 5,207,501 Noncurrent assets:

Notes receivable - - - - 5,500 5,500 -
Advances to other funds - 186,270 - - 716,578 902,848 545,045 Intangible assets - - 180,000 - - 180,000 -
Land 699,654 1,963,436 1,915,344 670,431 1,793,862 7,042,727 762,562 Construction in progress 139,776 1,618,104 3,677,462 2,206,555 828,761 8,470,658 676,013 Infrastructure and network - 25,582,658 45,571,415 87,712,780 6,837,023 165,703,876 - Buildings and improvements 26,700 26,270,859 22,271,536 10,328,621 4,385,511 63,283,227 516,596 Machinery equipment and vehicles 504,796 5,272,186 3,069,291 3,817,431 762,013 13,425,717 1,136,373 Less accumulated depreciation (415,351) (31,327,811) (15,188,256) (28,544,751) (4,580,262) (80,056,431) (857,634) Total noncurrent assets 955,575 29,565,702 61,496,792 76,191,067 10,748,986 178,958,122 2,778,955 Total assets 10,714,841 42,605,067 68,809,096 81,357,255 11,628,582 215,114,841 7,986,456

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow of resources related to pension 551,351 7,225,603 4,257,012 4,680,682 1,694,680 18,409,328 - Total deferred outflows of resources 551,351 7,225,603 4,257,012 4,680,682 1,694,680 18,409,328 - Total assets and deferred outflows of resources $ 11,266,192 $ 49,830,670 $ 73,066,108 $ 86,037,937 $ 13,323,262 $ 233,524,169 $ 7,986,456

LIABILITIES
Current liabilities:

Accounts payable 22,231 458,581 899,003 449,453 355,215 2,184,483 350,829 Accrued payroll liabilities 10,564 152,524 259,407 95,348 26,124 543,967 443,701 Due to other funds - - - - 447,500 447,500 -
Deposits payable - - - - 5,724 5,724 -
Interest payable - - 124,209 185,771 1,395 311,375 22,886 Compensated absences - current 1,602 23,021 11,502 11,433 3,979 51,537 23,457 Long-term obligations - current 7,289 93,448 1,174,913 2,503,068 30,287 3,809,005 341,349 Total current liabilities 41,686 727,574 2,469,034 3,245,073 870,224 7,353,591 1,182,222 Noncurrent liabilities:

Claims payable - - - - - - 336,555
Advance from other funds - - 716,578 - 1,227,201 1,943,779 1,185,045 Installment obligations 508,399 6,517,492 31,230,319 26,861,670 1,518,171 66,636,051 - Settlement liability - - - 1,000,000 - 1,000,000 -
Landfill closure/post-closure 19,297,593 - - - - 19,297,593 - Net pension liability 565,916 7,416,475 4,369,465 4,804,327 1,739,447 18,895,630 - Compensated absences 14,423 207,193 103,535 102,902 35,821 463,874 211,138 Due in more than one year - - - - - - 2,641,128
Total noncurrent liabilities 20,386,331 14,141,160 36,419,897 32,768,899 4,520,640 108,236,927 4,373,866 Total liabilities 20,428,017 14,868,734 38,888,931 36,013,972 5,390,864 115,590,518 5,556,088

DEFERRED INFLOWS OF RESOURCES
Deferred inflow of resources related to pension 266 3,491 2,057 2,261 818 8,893 - Total deferred inflows of resources 266 3,491 2,057 2,261 818 8,893 - Total liabilities and deferred inflows of resources 20,428,283 14,872,225 38,890,988 36,016,233 5,391,682 115,599,411 5,556,088

NET POSITION
Net investment in capital assets 955,575 29,379,433 33,279,779 52,571,067 9,867,273 126,053,127 2,233,910 Restricted for:

NCPA Projects - 251,126 - - - 251,126 -
Unrestricted (10,117,666) 5,327,886 895,341 (2,549,363) (1,935,693) (8,379,495) 196,458 Total net position $ (9,162,091) $ 34,958,445 $ 34,175,120 $ 50,021,704 $ 7,931,580 117,924,758 $ 2,430,368 1,081,435
$ 119,006,193
Business-type Activities
Difference between business-type adjustments to assets and liabilities.

Net position of business-type activities
The accompanying notes are an integral part of these financial statements.

Attachment 1

Page 664 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 30 City of Ukiah, California
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Governmental
Activities
Landfill Electric Water Wastewater
Total Nonmajor
Funds
Total
Enterprise
Funds
Internal Service
Funds

OPERATING REVENUES
Charges for service $ 707,689 $ 18,141,046 $ 7,223,708 $ 7,303,080 $ 330,217 $ 33,705,740 $ 13,571,439 Licenses and permits - - - - 26,748 26,748 -
Cap and trade - 618,246 - - - 618,246 -
Fines penalties and forfeitures - - - - 39,717 39,717 - Facility rental 8,534 - - - 626,993 635,527 -
Fuel sales - - - - 975,786 975,786 -
Miscellaneous - - 26,523 - 3,082 29,605 145
Connection fees - - - 617,861 - 617,861 -
Total operating revenues 716,223 18,759,292 7,250,231 7,920,941 2,002,543 36,649,230 13,571,584

OPERATING EXPENSES
General and administrative 178,832 2,566,491 1,056,635 1,380,025 328,621 5,510,604 1,865,520 Maintenance and operations 768,889 15,641,579 4,597,956 5,354,833 993,121 27,356,378 11,750,775 Fuel - - - - 522,388 522,388 -
Depreciation 13,271 1,308,285 1,668,204 2,163,462 175,104 5,328,326 109,873 Total operating expenses 960,992 19,516,355 7,322,795 8,898,320 2,019,234 38,717,696 13,726,168 Operating income (loss) (244,769) (757,063) (72,564) (977,379) (16,691) (2,068,466) (154,584)

NONOPERATING REVENUES (EXPENSES)
Property tax - - - - 16,714 16,714 -
Intergovernmental - 2,483 - - 138,967 141,450 72,961
Interest, rent, and concessions 48,358 123,643 24,474 23,172 117,738 337,385 6,909 Miscellaneous - - 250 15,000 - 15,250 -
Interest expense and fiscal charges - - (789,286) (679,640) (3,830) (1,472,756) (81,923) Gain on sale of property - 13,655 870 870 - 15,395 -
Total nonoperating revenues (expenses) 48,358 139,781 (763,692) (640,598) 269,589 (946,562) (2,053) Income (loss) before contributions and transfers (196,411) (617,282) (836,256) (1,617,977) 252,898 (3,015,028) (156,637) Capital contributions - - - - 556,033 556,033 -
Transfers in 419,635 - 273,375 - 225,328 918,338 -
Transfers out - (200,000) - (273,375) - (473,375) -
Change in net position 223,224 (817,282) (562,881) (1,891,352) 1,034,259 (2,014,032) (156,637) Total net position - beginning (9,385,315) 35,775,727 34,738,001 51,913,056 6,897,321 119,938,790 2,587,005 Total net position - ending $ (9,162,091) $ 34,958,445 $ 34,175,120 $ 50,021,704 $ 7,931,580 $ 117,924,758 $ 2,430,368 (358,919)
$ (2,372,951)
Business-type Activities
Adjustment to reflect the consolidation of internal service fund activities related to enterprise Changes in net position of business-type activities
The accompanying notes are an integral part of these financial statements.

Attachment 1

Page 665 of 856 ends

City of Ukiah, California
Financial Section: Basic Financial Statements Page | 31 City of Ukiah, California
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Governmental
Activities
Landfill Electric Water Wastewater
Total Nonmajor
Enterprises
Funds
Total Enterprise
Funds
Internal Service
Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers $ 715,060 $ 18,242,276 $ 6,925,691 $ 7,649,922 $ 1,996,523 $ 35,529,472 $ 164,458 Receipts from interfund services provided - - - - - - 8,572,913 Payments to employees (720,972) (10,168,768) (6,260,579) (6,909,197) (1,952,809) (26,012,325) (6,564,145) Payments to suppliers (251,529) (11,656,710) (1,260,486) (1,947,694) (3,429,121) (18,545,540) (4,940,838) Payments for interfund services used (178,832) (2,566,491) (1,056,635) (1,380,025) (328,621) (5,510,604) 2,835,495 Other operating cash receipts (payments) - (147,302) - - - (147,302) 1,370 Net cash provided (used) by operating activities (436,273) (6,296,995) (1,652,009) (2,586,994) (3,714,028) (14,686,299) 69,253

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Principal payments received on loans receivable - - - - 6,500 6,500 - Cash received (paid) to other funds 419,635 10,378 (445,751) (273,375) 783,749 494,636 2,027,886 Property taxes received - - - - 16,714 16,714 -
Lawsuit settlement payments - - - (1,090,000) - (1,090,000) - Grants and contributions - 2,483 - - 2,201 4,684 72,961 Proceeds from pension bonds 515,688 6,610,940 4,188,219 4,744,738 1,388,824 17,448,409 - Net cash provided (used) by noncapital financing activities 935,323 6,623,801 3,742,468 3,381,363 2,197,988 16,880,943 2,100,847

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital grants and contributions - - 924,899 - 2,494,718 3,419,617 - Proceeds from capital loans - - 1,460,327 - - 1,460,327 2,791,128 Interest paid - - (662,926) (608,222) (3,962) (1,275,110) (63,257) Principal paid on capital and related debt - - (540,000) (1,390,000) (10,410) (1,940,410) (117,025) Acquisition and construction of capital assets (139,776) (3,795,772) (3,175,076) (1,344,371) (1,231,971) (9,686,966) (774,210) Proceeds from sale of property - 13,655 1,120 15,870 - 30,645 - Net cash provided (used) by capital and related financing activities (139,776) (3,782,117) (1,991,656) (3,326,723) 1,248,375 (7,991,897) 1,836,636

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 60,527 131,428 31,514 33,590 2,015 259,074 10,686 Net cash provided (used) by investing activities 60,527 131,428 31,514 33,590 2,015 259,074 10,686 Net increase (decrease) in cash and cash equivalents 419,801 (3,323,883) 130,317 (2,498,764) (265,650) (5,538,179) 4,017,422 Balances - beginning of year 9,230,981 11,379,313 5,430,191 6,119,193 423,658 32,583,336 1,041,168 Balances - end of the year $ 9,650,782 $ 8,055,430 $ 5,560,508 $ 3,620,429 $ 158,008 $ 27,045,157 $ 5,058,590 Reconciliation of operating income (loss) to net cash provided (used) by operating activities:

Operating Income $ (244,769) $ (757,063) $ (72,564) $ (977,379) $ (16,691) $ (2,068,466) $ (154,584) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 13,271 1,308,285 1,668,204 2,163,462 175,104 5,328,326 109,873 Changes in assets and liabilities:

Decrease (increase) in accounts receivable (1,163) (517,016) (302,723) (243,170) (6,019) (1,070,091) (131,827) Decrease (increase) in prepaids - (1) 3,730 (1) - 3,728 - Decrease (increase) in inventory - 19,339 (7,815) 453 - 11,977 - Decrease (increase) in deferred outflows (473,107) (6,174,488) (3,688,939) (4,080,453) (1,419,933) (15,836,920) - Increase (decrease) in accounts payable (1,595) (484,521) 218,786 (176,259) (2,307,683) (2,751,272) 274,111 Increase (decrease) in accrued salaries and benefits 2,355 2,096 4,189 (6,983) (6,901) (5,244) 168,350 Increase (decrease) in compensated absences 149 27,294 12,884 4,482 (5,637) 39,172 (3,601) Increase (decrease) in deferrred inflows (7,811) (105,015) (56,585) (59,702) (27,544) (256,657) - Increase (decrease) in net pension liability 42,432 384,095 568,824 788,556 (98,724) 1,685,183 - Increase (decrease) in landfill liability 233,965 - - - - 233,965 - Increase (decrease) in claims payable - - - - - - (193,069) Net cash provided (used) by operating activities $ (436,273) $ (6,296,995) $ (1,652,009) $ (2,586,994) $ (3,714,028) $ (14,686,299) $ 69,253 Noncash investing, capital and financing activities
Amortization related to long-term debt $ - $ - $ 25,153 $ - $ - $ 25,153 $ - Acquistion of capital assets on account - - (20,634) - - (20,634) - Total noncash investing, capital and financing activities $ - $ - $ 4,519 $ - $ - $ 4,519 $ - Business-type Activities - Enterprise Funds
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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 32 Fiduciary Funds
These funds account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in the separate Fiduciary Fund financial statements.

PRIVATE PURPOSE TRUST FUND
Redevelopment Non-Housing Housing Successor Private Purpose Trust Fund Resources held for the benefit of the state from the dissolution of the Ukiah Redevelopment Agency’s nonhousing functions.

CUSTODIAL FUNDS
The City accounts for activities on behalf of external entities, including other governments.

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 33 City of Ukiah, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Private-Purpose Trust
Funds Custodial Funds
ASSETS
Cash and investments $ 6,698,578 $ 1,895,559
Restricted cash and investments 23 -
Accounts receivable - 321,383
Interest receivable 1,595 208
Land held for resale 5,443 -
Total assets 6,705,639 2,217,150

LIABILITIES
Accounts payable $ - $ 316,518
Accrued payroll liabilities 440 69,244
Deposits payable - 1,042,249
Interest payable 9,845 -
Due to other agencies - 315,810
Intergovernmental payable - 34,904
Due to City of Ukiah - 551,425
Advances from City of Ukiah 2,000,000 -
Due in more than one year 4,863,469 -
Total liabilities 6,873,754 2,330,150

DEFERRED INFLOWS OF RESOURCES
Total deferred inflows of resources - -
Total liabilities and deferred inflows of resources 6,873,754 2,330,150

NET POSITION
Restricted for:

Held for the benefit of the state (168,115) -
Individuals, Organizations and Other Governments - (112,998) Total net position $ (168,115) $ (112,998)
The accompanying notes are an integral part of these financial statements.

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City of Ukiah, California
Financial Section: Basic Financial Statements Page | 34 City of Ukiah, California
Statement of Changes in Fiduciary Net Position
Fiduciary Activities
For the Fiscal Year Ended June 30, 2021
Private-Purpose Trust
Funds Custodial Funds

ADDITIONS
Contributions:

Grants contributions and donations $ - $ 395,189
Taxes and assessments collected for other
governments 1,523,119 1,169,487
Service charges collected for other governments - 304,300 Service charges collected for other agencies - 1,471,242 Intergovernmental - 60,390
Miscellaneous - 6,892
Members - 537,958
Total contributions 1,523,119 3,945,458
Investment earnings:

Interest, rent, and concessions 25,104 8,991
Total investment earnings 25,104 8,991
Net investment earnings 25,104 8,991
Revenues
Total revenues - -
Total additions 1,548,223 3,954,449

DEDUCTIONS
General and administrative 250,000 312,329
Maintenance and operations 23,421 104,855
Interest expense and fiscal charges 211,130 75,212
Distributions to other governments - 3,173,654
Payments to other agencies for service charges
collected - 668,368
Payments to City for services provided - 2,530,120
Total deductions 484,551 6,864,538
Net increase (decrease) in fiduciary net position 1,063,672 (2,910,089) Net Position -- beginning of the year (1,231,787) 2,797,091 Net Position -- end of the year $ (168,115) $ (112,998) The accompanying notes are an integral part of these financial statements.

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Notes to the Basic Financial Statements
City of Ukiah, California
Notes to the Basic Financial Statements Index
June 30, 2021
The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the City as follows:

Note 1 - Summary of Significant Accounting Policies.............................................................................36 Note 2 - Stewardship, Compliance, and Accountability ..........................................................................46 Note 3 - Cash and Investments ..............................................................................................................47 Note 4 - Accounts Receivable.................................................................................................................51 Note 5 – Notes and Loans Receivable ...................................................................................................52 Note 6 - Capital Assets ...........................................................................................................................53 Note 7 - Long-Term Liabilities.................................................................................................................55 Note 8 – Landfill Closure and Post Closure Costs..................................................................................60 Note 9 - Interfund Transactions and Interfund Borrowing.......................................................................60 Note 10 - Risk Management ...................................................................................................................62 Note 11 - Public Employee Retirement Plan...........................................................................................64 Note 12 – Related Organizations............................................................................................................76 Note 13 - Commitments and Contingencies ...........................................................................................77 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency .........................................78 Note 15 – New Pronouncements ............................................................................................................81 Note 16 – Service Contracts ...................................................................................................................82 Attachment 1

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Notes to the Basic Financial Statements
City of Ukiah, California
Financial Section: Other Required Supplementary Information Page | 36 Note 1 - Summary of Significant Accounting Policies
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applied to government agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below:

A. Defining the reporting entity
The City of Ukiah was incorporated March 8, 1876 under the laws of the State of California. Ukiah operates under a Council-Manager form of government. The City Manager serves as the chief executive for day-to-day operations and long-term planning, including executing the policies and directives of the City Council. Department heads report directly to the City Manager and serve at his or her pleasure.

The City provides a range of municipal services to its citizens including public safety (fire and police), public works; planning and building regulation; recreation and parks; airport, golf; and water, sewer, and electric utilities.

The Redevelopment Agency of the City of Ukiah (the Agency) was established by the City as a separate legal entity in accordance with state law. The purpose of the Agency was to encourage new investment and reinvestment within legally designated redevelopment areas in partnership with property owners.

The Agency was dissolved on February 1, 2012 by the State Legislature and California Governor, Jerry Brown.

B. Government-wide and Fund Financial Statement
The government-wide financial statements report information on all the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grant and contributors that are restricted to meeting the operational or capital requirements of a function. Taxes, and other items not properly included among program revenues are reported instead as general revenues.

The accounts of the City are organized based on funds. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

In the fund financial statement in the report, the various funds are grouped into generic funds within three broad fund types. They are as follows:

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Notes to the Basic Financial Statements
City of Ukiah, California
Financial Section: Other Required Supplementary Information Page | 37 Note 1 - Summary of Significant Accounting Policies (Continued) The City reports four major governmental funds:

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

The Streets Capital Improvements fund accounts for resources and activities related to streets and rights-of-way improvements, funded primarily with resources derived from Measure Y, a halfcent district transaction and use tax.

The Pension Debt Service fund is used to account for the accumulation of financial resources to meet the City’s lease revenue bonds. The reserve accumulated is to be used to ensure the City has resources to meet debt service in future periods.

The HOME Program Income fund is used to account for activities related to the City’s federal HOME program activities and is considered part of the City’s overall housing trust fund.

The City reports the following major proprietary funds:

The Landfill Fund accounts for the activities of the City’s solid waste landfill operations.

The Electric Fund accounts for the activities of the City’s electric generation and distribution operations.

The Water Fund accounts for the activities of the City’s water treatment and distribution operations.

The Sewer Fund accounts for the activities of the City’s sewage collection and treatment operations.

Additionally, the City reports the following fund types:

Internal Service Funds - account for garage (vehicle maintenance), stores (purchasing), public safety dispatch, utility billing, workers’ compensation and liability insurance services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis.

Private-Purpose Trust Funds - account for resources legally held in trust for use by other organizations. All resources of the fund, including any earnings on the invested resources, may be used to support the organization’s or department’s activities. There is no requirement that any portion of these resources be preserved as capital.

Custodial Funds - used by the City to report resources held by the City in a custodial capacity for the Ukiah Valley Sanitation District, Ukiah Waste Solutions, and Russian River Watershed. These funds are used to record receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments.

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Ukiah City CouncilJanuary 19, 2022

Ukiah City Council
January 19, 2022