Complete design and necessary engineering documents for building public wi-fi, connecting several city facilities on the city fiber, complete a resilient fiber loop for redundancy, and design for fiber to premise in three Vallejo neighborhoods.
Design and Engineering work for the following project:
1. Design/engineering work for public wi-fi in Vallejo downtown, civic plaza, MLK Park, extending to the Ferry Terminal.
2. Design/engineering work for public wi-fi on Vallejo waterfront (Barbara Kondylis Park) and the Ferry Terminal.
3. Design/engineering work for public wi-fi in Blue Rock Springs Park.
4. Design/engineering work for public wi-fi at Dan Foley cultural center.
5. Design/engineering work to connect Vallejo fiber to 1155 Capital Street VPD Crime Reduction Building (CRT).
6. Design/engineering work to connect Vallejo fiber to Firestation 26. 1335 Fulton Ave.
7. Design/engineering work to connect Vallejo fiber to Firestation 27. 1585 Ascot Court.
8. Design/engineering work to connect Vallejo fiber to Firestation 25. 595 Mini Drive.
9. Design/Engineering work to connect Vallejo fiber to Firestation 22. 700 5th Street.
10. Design/Engineering work to connect Vallejo fiber to Vallejo Marina. 42 Harbor Way.
11. Design/Engineering work to ensure Vallejo municipal fiber has redundant paths to ensure maximum uptime.
12. Design/Engineering work to extend fiber in the South Vallejo neighborhood to serve about 1755 buildings, 144 businesses, and an estimated population of 5629.
13. Design/Engineering work to extend fiber in the downtown Vallejo neighborhood to serve about 1143 buildings, 404 businesses, and an estimated population of 5432.
14. Design/Engineering work to extend fiber in the north downtown Vallejo neighborhood to serve about 1676 buildings, 169 businesses, and an estimated population of 7275.
What does the City of Vallejo plan to achieve with the broadband expansion? The following are just a few goals that can be achieved in further expansion of the city-owned municipal fiber network:
1. Public Wi-Fi in key public locations helps with foot traffic and helps our residents and folks visiting our city.
2. Fiber to Premise and Wi-Fi in various underserved communities will help solve the digital equity and digital divide in our city. Broadband for all gives people access to the internet to participate in many online activities that help them improve their lives.
3. Better internet options for our residents, small/large businesses. VallejoNet will offer yet another internet option besides Comcast and AT&T for our citizens.
4. Incentives for connecting existing businesses, new businesses, and anchor institutes to save money, which in turn will help businesses to remain and to come to Vallejo. The broadband investment is a great economic vitality and economic driver for the city of Vallejo.
5. Connecting city facilities on the fiber will eliminate several thousand dollars of annual recurring charges to Comcast and AT&T.
Date: January 24, 2023
Subject: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
DESIGN PROFESSIONAL SERVICES AGREEMENT WITH SMART FIBER NETWORKS INC. IN AN AMOUNT NOT TO EXCEED $108,000
6. Connecting several key city infrastructure applications like ALPR (automated license plate readers), Flock gunshot detection devices, smart traffic signal management network, and many other IoT (Internet of Things) devices to make the city of Vallejo a smart city.
7. Delivering low cost internet services to several low incoming housing units and non-profits operating in the City of Vallejo.
8. Preparedness for the new wave of technology.
FISCAL IMPACT
There is no fiscal impact on the general fund, as all proposed projects are funded through ARPA (American Rescue Plan Act).
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Smart Fiber Networks Inc. Design Prof_l Services Agreement_Final
2. RESO-Smart Fiber Networks_01_24_23
CONTACT
Naveed Ashraf, Chief Innovation Officer & IT Director (707) 648-5200 [email protected]
Design Professional Services Agreement – Smart Fiber Networks, Inc.
DESIGN PROFESSIONAL SERVICES AGREEMENT
SMART FIBER NETWORKS, INC.
This Design Professional Services Agreement ("Agreement") is made at Vallejo, California, dated for reference this 24th day of January, 2023, by and between the City of Vallejo, a municipal corporation ("City"), and Smart Fiber Networks, Inc., a California corporation (“Consultant”), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this A greement, Consultant shall provide the C ity professional services as specified in Exhibit A, entitled “Scope of Work.”
2. Payment. City shall pay Consultant for services rendered pursuant to this Agreement at the times and in the manner set forth in Exhibit B, entitled “Compensation.” The payments specified in Exhibit B shall be the only payments to be made to Consultant for services rendered pursuant to this Agreement.
3. Facilities and Equipment. Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement.
4. Indemnification. To the fullest extent permitted by law, Consultant shall hold harmless, defend (with independent counsel approved by City) and indemnify City and its officers, employees and volunteers from and against all claims, damages, losses, penalties, fines and judgments and expenses and defense costs, including but not limited to attorney fees , court costs, associated investigation and administrative expenses, regardless of the nature or type arising out of, or pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Consultant, or the acts or omissions of an em ployee, agent or subcontractor of the Consultant, except where caused by the active negligence, sole negligence, or willful misconduct of City. In no event shall the cost to defend charged to the Consultant exceed the Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the Consultant shall meet and confer with other parties regarding unpaid defense costs. The provisions of this section pertaining to the duty and cost to defend shall not apply to either of the following: 1) Any contract for design professional services, or amendments thereto, where a project-specific general liability policy insures all project participants for general liability exposures on a primary basis and also covers all design professionals for their legal liability
Design Professional Services Agreement – Smart Fiber Networks, Inc.
arising out of their professional services on a primary basis, 2) A des ign professional who is a party to a written design-build joint venture agreement.
The provisions of this Section are not limited by the insurance provisions of this Agreement.
The provisions of this section shall survive the completion of the services , expiration or termination of this Agreement.
5. Insurance Requirements. Consultant agrees to comply with all of the Insurance Requirements set forth in Exhibit C, entitled “Insurance Requirements for Consultant.” Failure to maintain required insurance at all times shall constitute a default and material breach.
6. Accident Reports. Consultant shall immediately report (as soon as feasible, but not more than 24 hours) to the City Risk Manager any accident or other occurrence causing injury to persons or proper ty during the performance of this Agreement. The report shall be made in writing and shall include, at a minimum: (a) the names, addresses, and telephone numbers of the persons involved, (b) the names, addresses and telephone numbers of any known witnesses, (c) the date, time and description of the accident or other occurrence.
7. Conflict of Interest. Consultant warrants and represents that to the best of its knowledge, there exists no actual or potential conflict between Consultant’s family, business, real property or financial interests and the services to be provided under this Agreement. Consultant shall comply with the City of Vallejo Conflict of Interest Code and not enter into any contract or agreement during the performance of this Agreement which will create a conflict of interest with its duties to City under this Agreement. In the event of a change in Consultant’s family, business, real property, or financial interests occurs during the term of this Agreement that creates an actual or potential conflict of interest, then Consultant shall disclose such conflict in writing to City. Every individual who performs services on behalf of Consultant pursuant to this Agreement must file a full Statement of Economic Interests (also known as Form 700) with the City Clerk if the work of the individual involves making a governmental decision whether to issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; authorize s the City to enter into, modify, or renew a contract; grants City approval of specifications for a contract; adopts or approves for the City any policy, standard or guideline; lobbies on behalf of the City, or performs the same or substantially all the sa me duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code.
8. Independent Contractor. Consultant is an independent contractor .
Neither Consultant nor any of Consultant’s o fficers, employees, agents or subcontractors, if any, is an employee of C ity by virtue of this Agreement or performance of any services pursuant to this Agreement. City shall have the right
Design Professional Services Agreement – Smart Fiber Networks, Inc.
to control Consultant only insofar as the results of Consultant’s services rendered pursuant to this A greement; however, C ity shall not have the right to control the means by which Consultant accomplishes services pursuant to this Agreement.
9. Licenses, Permits, Etc. Consultant represents and warrants to C ity that all d esign professional services shall be provided by a person or persons duly licensed by the State of California to provide the type of services to be performed under this Agreement and that Consultant has all the permits, qualifications and approvals of what soever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to City that it shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession.
10. Business License. Consultant and its subcontractors, has obtained or agrees to apply prior to performing any services under this Agreement to City’s Finance Department for a business license, pay the applicable business license tax and maintain said business license during the term of this Agreement. The failure to obtain such license shall be a material breach of this Agreement and grounds for termination by City. No payments shall be made to Consultant until such business license(s) has been obtained.
11. Standard of Performance. Consultant shall provide products and perform all services required pursuant to this A greement in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised under similar conditions by members of Consultant’s profession currently practicing in California.
Consultant is responsible for making an independent evaluation and judgment of all conditions affecting performance of the work, including without limitation site conditions, as well as all areas appurtenant to the site , existing facilities, seismic, geologic, soils , hydrologic, geographic, climatic conditions, applicable federal, state, and local laws and regulations, and all other contingencies or design considerations. Data, calculations, opinions, reports, investigations, and other similar information provided by City relating to site, local, or other conditions is not warranted or guaranteed, either expressly or implied, by City.
Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to City for acts, errors, o r omissions of Consultant’s subcontractors.
Consultant shall prepare plans, specifications, reports, and/or other work products in such a way that amendments or change orders to the agreement between City and its construction contractor will not be necess ary, except for unforeseeable circumstances. As used herein, “unforeseeable circumstances” shall mean facts or inferences from those facts that could not be ascertained by a combination of reasonable site inspection during the preparation of the plans and specifications
Design Professional Services Agreement – Smart Fiber Networks, Inc.
by Consultant and the reasonable application to such inspection of expertise consistent with the level of care and skill ordinarily exercised under similar conditions by a members of Consultant‘s profession currently practicing in California.
Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by City, it is understood that such review, approval, conditional approval or disapproval is solely for the purposes of administering this Agreement and determining whether the Consultant is entitled to payment for such work, and not be construed as a waiver of a ny breach or acceptance by the City of any responsibility, professional or otherwise, for the work, and shall not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liab ility for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Consultant.
12. Force Majeure. Neither party shall be considered in default of this Agreement to the extent performances are prevented or delayed by any cause, or circumstances beyond either party’s reasonable control, such as war, riots, strikes, lockouts, work slowdown or stoppage, acts of God, such as floods or earthquakes, and electrical blackouts or brownouts.
In the event that the Consultant is unable to meet the completion date or schedule of services, Consultant shall immediately inform the City Representative of this in writing. If additional time is required to perform the work, the City Representative may adjust the schedule.
13. Time is of the Essence. Time is of the essence in this Agreement. Any reference to days means calendar days, unless otherwise specifically stated.
14. Personnel. Consultant agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement.
The payment made to Consultant pursuant to this Agreement shall be the full and complete compensation to which Consultant and Consultant’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Consultant nor Consultant’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Consultant. The City shall not be required to pay any workers' compensation insurance on behalf of Consultant.
Design Professional Services Agreement – Smart Fiber Networks, Inc.
Consultant shall pay, when and as due, any and all taxes incurred as a result of Consultant’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.
Consultant shall comply with all provisions of California laws dealing with prevailing wages, apprentices, and hours of work. Consultant shall also comply with provisions of Labor Code section 1720 as appl icable. A copy of the prevailing wage rates is available for review upon request by Consultant to the City Representative. This provision applies only to the following portions of the scope of work:
15. Consultant Not Agent. Except as authorized under this Agreement or as City may authorize in a letter of authorization signed by the City Manager or his or her designee, Consultant shall have no authority, express or implied to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, under this Agreement, to bind City to any obligation whatsoever.
16. Term. The term of this Agreement shall commence on the date of complete execution of this Agreement and shall continue in full force and effect until December 31, 2023.
If the term of this Agreement extends into fiscal years subsequent to that in which it is approved, such continuation of the Agreement is contingent on the appropriation of funds for such purpose by the City Council of the City of Vallejo.
If funds to effect such continued payment are not appropriated, Consultant agrees to terminate any services supplied to City of Vallejo under this Agreement, and relieve City of any further obligation therefore.
17. Termination or Abandonment by City. The City has the right, at any time and in its sole discretion, to immediately terminate or abandon any portion or all of the services to be provided under this Agreement by giving notice to Consultant.
Upon receipt of a notice of termination, Consultant shall perform no further work except as specified in the notice. Before the date of termination, Consultant shall deliver to City all City records and documents, all work product s, whether completed or not, as of the date of termination and not o therwise previously delivered.
The City shall pay Consultant for services performed in accordance with this Agreement before the date of termination. If this contract provides for payment of a lump sum for all services or by task and termination occurs before completion of the work or any defined task which according to the performance schedule was commenced before the notice of termination, the fee for services performed shall be based on an amount mutually agreed to by City and Consultant for the portion of work completed in conformance with this Agreement before the date of termination. In addition, the City will reimburse Consultant for authorized expenses incurred and not previously reimbursed . The City shall not be liable for any fees
Design Professional Services Agreement – Smart Fiber Networks, Inc.
or costs associated for the termination or abandonment ex cept for the fees, and reimbursement of authorized expenses, payable pursuant to this section.
18. Products of Consulting Services . The work product, including without limitation, all writings, work sheets, reports , recordings, drawings, files, detailed calculations and other work products, whether complete or incomplete, of Consultant resulting from services rendered pursuant to this A greement, shall become the property of C ity. Consultant agrees that all copyrights which arise from creation of the work under this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of the work product is limited to the purposes contemplated by the scope of work and that the Consultant makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work.
Documents submitted to the City in electronic format shall be formatted according to specifications provided by the City, or if not otherwise specified, in Microsoft Word, Excel, PowerPoint or other Microsoft Office Suite (200 2) format as appropriate for the particular work product or, if directed by the City Representative in Adobe Acrobat PDF format.
19. Cooperation by City. City shall, to the extent reasonable and practicable, assist and cooperate with Consultant in the performance of Consultant’s services hereunder.
20. Assignment and Subcontracting. Consultant shall not subcontract, assign or transfer voluntarily or involuntarily any of its rights, duties or obligation under this Agreement without the express written consent of the City Manager or his or her designee in each instance. Any attempted or purported assignment of any right, duty or obligation under this Agreement without City’s consent shall be void and of no effect.
If subcontracting of work is permitted, Consultant shall pay its subcontractor within ten (10) days of receipt of payment by City for work performed by a subcontractor and billed by the Consultant. Use of the term subcontractor in any other provision of this contract shall not be construed to imply authorization for Consultant to use subcontractors for performance of any service under this Agreement.
The City is an intended beneficiary of any work performed by Consultant’s subcontractor for purposes of establishing a duty of care between the subcontractor and City.
21. Successors and Assigns. All terms, conditions, and provisions of this Agreement shall apply to and bind the respective heirs, executors, administrators, successors, and assigns of the parties. Nothing in this section is intended to affect the limitation on assignment.
Design Professional Services Agreement – Smart Fiber Networks, Inc.
22. Non-Discrimination/Fair Employment Practices.
(a) Consultant shall not, because of race, religious creed, color , sex, national original, ancestry , disability, medical condition, age, marital status or sexual orientation of any person, refuse to hire or employ, or to bar or discharge from employment, or to discriminate in compensation, or in terms, conditions or privileges any pers on, and every employee will receive equal opportunity for employment and shall be granted equal treatment with respect to compensation, terms, conditions or other privileges of employment, without regard to his race, religious creed, color, sex, national origin or ancestry.
Consultant warrants and represents it is an equal opportunity employer and agrees it shall not discriminate on the basis of race, religious creed, color, sex, national origin, ancestry , disability, medical condition, age, marital status or sexual orientation in the selection and retention of employees, subcontractors or procurement of materials or equipment.
In all solicitations either by competitive bidding or negotiations made by Consultant for work to be performed under any subcontrac t, including procurement of materials or equipment, each potential subcontractor or supplier shall be notified by Consultant of Consultant’s obligation under this Agreement relative to nondiscrimination and fair employment practices.
Consultant shall include the above provisions of this section in every subcontract, including procurement of materials or equipment.
(b) Consultant agrees to comply with Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, the A mericans with Disabilities Act of 1990, any other applicable federal and state laws and regulations and City ordinances and regulations hereinafter enacted.
23. Notices. All notices or instruments required to be given or delivered by law or this Agreement shall be in writing and shall be effective upon receipt thereof and shall be by personal service or delivered by depositing the same in any United States Post Office, registered or certified mail, postage prepaid, addressed to:
If to City: Naveed Ashraf
Chief Innovation Officer & IT Director
Information Technology
555 Santa Clara Street
Vallejo, CA 94590
If to Consultant: Stephen Stukas
Smart Fiber Networks, Inc.
77 Van Ness Blvd. #101
San Francisco, CA 94102
Any party may change its address for receiving notices by giving written notice of
Design Professional Services Agreement – Smart Fiber Networks, Inc.
such change to the other party in accordance with this section.
Routine administrative communications shall be made pursuant to section 1 of Exhibit A.
24. Integration Clause. This Agreement, including all Exhibits, contains the entire agreement between the parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Agreement. This Agreement shall not be amended or modifie d except by a written agreement executed by each of the parties hereto.
25. Severability Clause. Should any provision of this A greement ever be deemed to be legally void or unenforceable, all remaining provisions shall survive and be enforceable.
26. Law Governing. This Agreement shall in all respects be governed by the law of the State of California, without regard to its conflicts of law rules. Litigation arising out of or connected with this Agreement shall be instituted and maintained in the courts of Solano County in the State of California or in the United States District Court, Eastern District of California, Sacramento, California, and the parties consent to jurisdiction over their person and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.
27. Waiver. Waiver by either party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent or any other right hereunder.
28. Ambiguity. The parties acknowledge that this is a negotiated a greement, that they have had the opportunity to h ave this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof.
29. Gender. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identifications of the person or persons, firm or firms, corporation or corporations may require.
30. Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.
31. Compliance with Laws. Consultant will comply with all statutes, regulations and ordinances in the performance of all services under this Agreement.
32. Confidentiality of City Information. During the performance of services under this Agreement, Consultant may gain access to and use City information Design Professional Services Agreement – Smart Fiber Networks, Inc.
regarding, but not limited to, procedures, policies, training, operational practices, and other vital information (hereafter collectively referred to as "City Information") which are valuable, special and unique assets of the City. Consultant agrees that it will not use any information obtained as a consequence of the performance of services under this Agreement for any purpose other than fulfillment of Consultant’s scope of work , to protect all City Information and treat it as strictly confidential and proprietary to City, and that it will not at any time, either directly or indirectly, divulge, disclose or communicate in any manner any City Information to any third party, other than its own employees, agents or subcontractors who have a need for the City Information for the performance of services under this Agreement, without the prior written consent of City, or as required by law.
Consultant shall treat all records and work product prepared or maintained by Consultant in the performance of this Agreement as confidential.
A violation by Consultant of this section shall be a material violation of this Agreement and will justify legal and/or equitable relief.
Consultant’s obligations under this section shall survive the completion of services, expiration or termination of this Agreement.
33. News and Information Release. Consultant agrees that it will not issue any news releases in connection with either the award of this Agreement, or any subsequent amendment of or efforts under this Agreement, without first obtaining review and approval of said news releases from City through the City Representative.
34. City Representative. The City Representative specified in Exhibit A, or the representative's designee, shall administer this Agreement for the City.
35. Counterparts. The parties may execute this A greement in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument.
36. Facsimile Signature ; Electronic Signature . This Agreement shall be binding upon the receipt of facsimile signatures or emailed by PDF or otherwise.
Any person transmitting his or her signature by facsimile or electronically shall promptly send an original signature to the o ther part y pursuant to the notice provision of this Agreement . The failure to send an original shall not affect the binding nature of this Agreement.
37. Authority. The person signing this Agreement for Consultant hereby represents and warrants that he/she is fully authorized to sign this Agreement on behalf of Consultant.
38. Exhibits. The following exhibits are attached hereto and incorporated herein by reference:
Design Professional Services Agreement – Smart Fiber Networks, Inc.
Exhibit A, entitled “Scope of Work,” including any attachments Exhibit B, entitled “Compensation,” including any attachments Exhibit C, entitled “Insurance Requirements,” including attachments [SIGNATURES ON FOLLOWING PAGE]
Design Professional Services Agreement – Smart Fiber Networks, Inc.
IN WITNESS WHEREOF, the parties have executed this A greement on the day and year first shown above.
Smart Fiber Networks, Inc.
A California corporation
By:
Stephen Stukas
CEO
DATE:
(City Seal)
CITY OF VALLEJO,
a municipal corporation
By:
Michael Malone
City Manager
DATE:
ATTEST:
By:
Dawn Abrahamson
City Clerk
APPROVED AS TO FORM:
Veronica Nebb
City Attorney
APPROVED AS TO INSURANCE:
Armond Sarkis
Risk Manager
Design Professional Services Agreement
Exhibit A
2 EXHIBIT A
SCOPE OF WORK
1. Representatives.
The City Representative for this Agreement is:
Naveed Ashraf
Chief Innovation Officer & IT Director
Information Technology
555 Santa Clara Street
Vallejo, CA 94590
The Consultant’s Representative for this Agreement is:
Stephen Stukas
Smart Fiber Networks, Inc.
77 Van Ness Ave. #101
San Francisco, CA 94102
All routine administrative communications between the parties will be between the above named representatives and may be by personal delivery, mail, facsimile transmission or electronic mail as agreed between the Consultant Representative and City’s Representative.
2. Services to be Provided.
The services provided shall be as set forth in Attachment 1 of Exhibit A, attached hereto and incorporated herein by this reference.
3. Time for Performance. Consultant will perform the services according to the schedule below. If the schedule calls for the services to be performed in phases or discrete increments, Consultant shall not proceed from one phase or increment to the next without written authorizati on from the City’s Representative. Consultant will complete all services by January 1, 2028.
4. Key Personnel. All of the individuals identified below are necessary for the successful prosecution of the services due to their unique expertise and depth and breadth of experience. There shall be no change in the personnel listed below , without written approval of the City Representative.
Consultant recognizes that the composition of this team was instrumental in the City’s decision to award the work to Consultant and that compelling reasons for substituting these individuals must be demonstrated for the City’s consent to be granted . Any substitutes shall be persons of comparable or superior expertise and experience. Failure to comply with the provisions of this section shall constitute a material breach of Consultant’s obligations under this Agreement and shall be grounds for termination.
Key personnel are as follows: Stephen Stukas
Attachment 1 to Exhibit A
Design and Engineering Scope of Works
Smart Fiber Networks will provide complete design and engineering plans with all necessary Bills of Materials (BOMs) to complete construction work packages for the following 4 projects:
1. Public Wi -Fi (Downtown Vallejo, Waterfront Park, Bluerock Springs park, and Dan Foley Cultural Center)
2. Connecting several municipal buildings.
3. Building a resilient fiber loop.
4. Fiber to premise in Vallejo neighborhoods.
The work will include:
● all base mapping and design of the network in GIS
● gathering attribute data and online parcel research,
● determining routing and preliminary methods of
construction including aerial and underground quantities ● Complete list of all Authorities having jurisdiction (AHJs) that will be involved in the project with contact information, copies of all documents, standards, requirements, and necessary application forms to permit and construct the network within each jurisdictional boundary
● strand and conduit mapping
● field data collection for aerial and underground plant ● make ready engineering
● providing permit and construction drawings for the network All work shall be designed and engineered to meet GO95 and GO128 requirements, as applicable, and the standards and requirements of the City, pole owners, and permit authorities, including State, Federal, County, Town, City, or other authority having jurisdiction (AHJs). Deliverables are outlined below.
Project Details:
Project 1: Public Wi-Fi
The design documents to
include robust Wi-fi
coverage in downtown
Vallejo on Georgia Street,
Indian Ally, Virginia Street,
Ferry Terminal, and MLK
Park. The wireless
coverage shall be sufficient
to accommodate a
minimum of 255 users per
access points,
simultaneously supporting
2000 users in the area.
The design documents to
include robust public w -fi
coverage for Vallejo Ferry
Terminal and Barbara
Kondylis Park. The Wi-fi
coverage shall be sufficient to
support a minimum of 2000
users.
The design document to
include robust public Wi-fi
coverage at the Blue Rock
Springs Corridor Park off
by Columbus Parkway.
The public wi-fi coverage
shall be sufficient to
accommodate a minimum
of 2000 users.
The design document to
include robust public Wi-fi
coverage at the Dan Foley
Cultural and Community
Center. The public Wi-fi
coverage shall be sufficient
to accommodate a
minimum of 2000 users.
Project Planned Start Planned Finish
Public Wi-Fi 2-1-2023 2-14-2023
Deliverables for Project -1
Consultant shall perform all planning, design, and engineering work necessary to provide a complete network or project design, ready to permit, schedule, and build. The following items will be part of the public Wi-fi design deliverable:
1. Overall network fiber design in both GIS/CAD formats.
2. Backbone design.
3. Fiber schematics.
4. Splicing plans.
5. Cable plan.
6. Wireless radio design and coverage maps.
7. Final access point unit count and identification of the number of units with all addresses at each parcel.
8. Outline of buildings on each parcel added to the GIS map.
9. Bill of materials for the public Wi-fi project.
10. Construction plan packages.
a. Task based outlines of work to be performed.
b. Professional engineering requirements as needed.
c. Updated project timelines.
11. Total project budget.
12. Permitting Packages
a. Aerial pole applications
b. Permit packages
i. Pole applications
ii. Aerial construction permits
iii. Underground and LCP permits
iv. Permit tracking log
v. Permit attributes in GIS database.
Project 2: Connecting City Facilities
1155 Capitol Street - Vallejo
Police Department, Capitol
CRT (Crime Reduction Team)
The turquoise line on the map
is new proposed route to
connect the CRT building
with the city fiber.
The design shall take the
following path:
From Existing Vallejo Infrastructure at the NE corner of Alameda and Georgia, place new 2” conduit north along the east side of Alameda to the SE corner of Alameda and Capitol then east along the south side of Capitol to the nearest POE (Point of Entry) of the Police department office.
Place 4 new CAP (Cable Access Points) at each intersection and at the POE of the property. Pull a single 24FOC leaving 40’ of slack coils in each CAP location.
Estimated Footage: new conduit 1,740’ | existing 1,800’ | fiber 2,240’
1335 Fulton Ave – Vallejo
Fire Station # 26
The design shall take the
following path:
From Existing Vallejo Infrastructure at the NW corner of Oakwood and Spring use existing infrastructure along the southern side of Spring heading east to the SW corner of Rollingwood and Spring.
From the corner of Rollingwood and Spring head south along the western side of Rolling wood to the intersection of Rollingwood and Benicia where Rollingwood transitions to Glen Cove and continue south on Glen Cove until the
intersection of Glen Cove and New Bedford.
From Glen Cove and New Bedford head SW to N Fulton and
New Bedford exiting existing infrastructure and entering new conduit placed from here to the POE of Fire Station #26 Estimated length: existing 16,311’ | new 110’ | fiber ~22,000’
1585 Ascot Court –
Vallejo Fire Station
# 27
The design shall
take the following
path:
From existing Vallejo infrastructure at NE coner of admiral Callaghan and Turner Parkway head north in existing infratructure to the intersection of Admiral Callghan and Capit ol.
From Admiral Callighan and Capitol, head east along the south side of Capitol to the SE corner of N Ascot and Capitol.
From N Ascot and Capitol head North using existing infrastructure to the POE of Fire Station #27.
Estimated Length: existing 4,050 | fiber ~5,000’
595 Mini Drive -
Vallejo Fire Station
# 25
The design shall
take the following
path:
From existing infrastructure at the Fairgrounds and Redwood, north along the east side of the fairground in existing infrastructure to the NW corner of Fairgrounds Drive and Corcoran.
From the corner of Fairgrounds Drive and Corcoran head SW on Corcoran along the north side of Corcoran in new infrastructure to the NW corner of Mini Drive and Corcoran.
From the corner of Mini and Corcoran, south to the POE of Fire Station # 25.
Estimated Length: existing 12,500’ | new 3,000’ | fiber ~20,000’
700 5th Street – Vallejo
Fire Station # 22
The design shall take
the following path:
From existing infrastructure at the SE corner of Sonoma and Georgia continue south to the SE corner of Sonoma and Winchester.
From the corner of Sonoma Blvd. and Winchester NE along the south side of Winchester placing new infrastructure to the SE corner of 5th St.
From SE corner of 5th place the new infrastructure to the POE of Fire Station #22
Estimated length: existing 4,000’ | new 5,000’ | fiber ~5,600’
42 Harbor Way –
Vallejo Municipal
Marina
The design shall take
the following path:
From existing infrastructure at NE corner of Mare island Way and Tennessee, south in existing infrastructure to SW corner of Mare Island Way and Harbor Way
Continue north on Harbor Way to Marina building POE.
Estimated length: existing 1,600’ | new 420’ | fiber ~2,600’ Project Planned Start Planned Finish
Connecting City
Facilities
2-15-2023 3-21-2023
Deliverables for Project -2
Consultant shall perform all planning, design, and engineering work necessary to provide a complete network or project design, ready to permit, schedule, and build. The following items will be part of the public Wi-fi design deliverable:
1. Overall network fiber design in both GIS/CAD format.
2. Backbone design.
3. Fiber schematics.
4. Splicing plans.
5. Cable plan.
6. Wireless radio design and coverage maps.
7. Final access point unit count and identification of the number of units with all addresses at each parcel.
8. Outline of buildings on each parcel added to the GIS map.
9. Bill of materials.
10. Construction plan packages.
a. Task based outlines of work to be performed.
b. Professional engineering requirements as needed.
c. Updated project timelines.
11. Total project budget.
12. Permitting Packages.
a. Aerial pole applications.
b. Permit packages:
i. Pole applications.
ii. Aerial construction permits.
iii. Underground and LCP permits.
iv. Permit tracking log.
v. Permit attributes in GIS database.
Project 3: Design of Fiber Ring Resiliency
The design and engineering documents to be produced from the following high level project scope. The project detail is referenced here for the design purposes. No construction will begin until detailed design and engineering documents are produced.
Project 3 location and map
The green sections identified in the map below are necessary to complete a fiber loop. The project deliverables are as follows:
Deliverables for Project -3
Consultant s hall perform all planning, design, and engineering work necessary to provide a complete network or project design, ready to permit, schedule, and build. The following items will be part of the public Wi-fi design deliverable:
1. Overall network fiber design in both GIS/CAD format.
2. Backbone design.
3. Fiber schematics.
4. Splicing plans.
5. Cable plan.
6. Wireless radio design and coverage maps.
7. Final access point unit count and identification of the number of units with all addresses at each parcel.
8. Outline of buildings on each parcel added to the GIS map.
9. Bill of materials.
10. Construction plan packages.
a. Task based outlines of work to be performed.
b. Professional engineering requirements as needed.
c. Updated project timelines.
11. Total project budget
12. Permitting Packages
a. Aerial pole applications
b. Permit packages
i. Pole applications
ii. Aerial construction permits
iii. Underground and LCP permits
iv. Permit tracking log
v. Permit attributes in GIS database.
c. Design documents to include in detail the existing city conduit structure to determine cable path and the underground duct structure.
13. Report and document the sidewalk and pull box condition.
Project Planned Start Planned Finish
Redundant Fiber Loop 3-1-2023 4-11-2023
Project 4: Fiber expansion in various Vallejo neighborhoods Project Locations
(South Vallejo)
South Vallejo
-Estimated number of
buildings in region: 1755
-Estimated population: 5629
-Estimated number of
businesses: 144
The design document shall
consider the shaded area
in the map to the right to
provide highspeed
broadband coverage
sufficient to provide 100MB
symmetrical service.
Project Locations
(Downtown Vallejo)
Downtown Vallejo
-Estimated number of buildings: 1143
-Estimated Population: 5432
-Estimated number of businesses: 404
The design document shall consider the
shaded area in the map to the right to
provide highspeed broadband coverage
sufficient to provide 100MB symmetrical
service.
Project Locations
(North Downtown Vallejo)
North Downtown Vallejo
-Estimated number of buildings:
1676
-Estimated population: 7275
-Estimated number of businesses:
169
The design document shall consider
the shaded area in the map to the right
to provide highspeed broadband
coverage sufficient to provide 100MB
symmetrical service.
Project Planned Start Planned Finish
Fiber in
Neighborhoods
4-17-2023 5-26-2023
Deliverables for Project -4
Consultant shall perform all planning, design, and engineering work necessary to provide a complete network or project design, ready to permit, schedule, BOM, and build. The following items will be part of the public Wi-fi design deliverable:
1. Overall network fiber design in both GIS/CAD formats.
2. Backbone design.
3. Fiber schematics.
4. Splicing plans
5. Cable plan.
6. Wireless radio design and coverage maps.
7. Final access point unit count and identification of the number of units with all addresses at each parcel.
8. Outline of buildings on each parcel added to the GIS map.
9. Bill of materials.
10. Construction plan packages.
a. Task based outlines of work to be performed.
b. Professional engineering requirements as needed.
c. Updated project timelines.
11. Total project budget
12. Permitting Packages
a. Aerial pole applications
b. Permit packages
i. Pole applications
ii. Aerial construction permits
iii. Underground and LCP permits
iv. Permit tracking log
v. Permit attributes in GIS database.
Design Professional Services Agreement Page 1 of 2
Exhibit B
EXHIBIT B
COMPENSATION
Consultant’s Compensation.
Services: City agrees to pay Consultant, at the rate(s) specified below, for those services set forth in Exhibit A of this Agreement and for all authorized reimbursable expenses, for a total not to exceed One hundred and eight thousand dollars and zero cents $108,000. Breakdown by each project is included in Attachment 1 to Exhibit B.
Consultant shall notify City in writing no later than thirty (30) days prior to the estimated date when Consultant will have billed City the maximum payment amount permitted under this Agreement, and Consultant shall provide City with an estimate of the additional compensation required to complete the project.
Additional Services:
Additional Services are those servi ces related to the scope of Services of Consultant as set forth in Exhibit A but not anticipated at the time of execution of this Agreement. Additional Services shall be provided only when a Supplemental Agreement authorizing such Additional Services is approved by the City Manager, or his or her designee. City reserves the right to perform any Additional Services with its own staff or to retain other Consultants to perform said Additional Services.
Consultant’s compensation for Additional Services shall be based on the total number of hours spent on Additional Services multiplied by the employees' appropriate billable hourly rate as established below . City, at its option, may negotiate a fixed fee for some or all Additional Services as the need arises. Where a fixed fee for Additional Services is established by mutual A greement between City and Consultant, compensation to Consultant shall not exceed the fixed fee amount.
Consultant’s Reimbursable Expenses. Reimbursable Expenses shall be limited to actual reasonable expenditures of Consultant for expenses that are necessary for the proper completion of the Services and shall only be payable if specifically authorized in advance by City.
Payments to Consultant.
Payments to Consultant shall be made within a reasonable time after receipt of Consultant’s invoice, said payments to be made in proportion to services performed. Consultant may request payment on a monthly basis. Consultant shall be responsible for the cost of supplying all d ocumentation necessary to verify the monthly billings to the satisfaction of City.
All invoices submitted by Consultant shall contain the following information:
Design Professional Services Agreement Page 2 of 2
Exhibit B
Description of services billed under this invoice
Date of Invoice Issuance
Sequential Invoice Number
City’s Purchase Order Number (if issued)
Social Security Number or Taxpayer Identification Number Amount of this Invoice (Itemize all Reimbursable Expenses”) Total Billed to Date
Items shall be separated into Services and Reimbursable Expenses. Billings that do not conform to the format outlined above shall be returned to Consultant for correction. C ity shall not be responsible for delays in payment to Consultant resulting from Consultant’s failure to comply with the invoice for mat described above.
Request for payment shall be sent to:
Naveed Ashraf
Chief Innovation Officer & IT Director
Information Technology
555 Santa Clara Street
Vallejo, CA 94590
Accounting Records of Consultant. Consultant shall maintain for three (3) years after completion of all services hereunder, all records under this Agreement, including, but not limited to, records of Consultant’s direct salary costs for all Services and Additional Services performed under this Agreement and records of Consultant’s Reimbursable Expenses, in accordance with generally accepted accounting practices . Consultant shall keep such records available for audit, inspection and copying by representatives of the City’s Finance Department or other government agencies during regular business hours upon twenty four (24) hours notice.
The obligations of Consultant under this section shall survive this Agreement.
Taxes. Consultant shall pay, when and as due, any and all taxes incurred as a result of Consultant’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.
Taxpayer Identification Number. Consultant shall provide City with Consultant’s complete Request for Taxpayer Identification Number and Certification, Form W - 9, as issued by the Internal Revenue Service , and any other State or local tax identification number requested by City.
ATTACHMENT 1 TO EXHIBIT B
Compensation breakdown by project
Project-1 Public Wi-Fi Locations Design & Engineering Cost Vallejo Ferry Terminal and Barbara Kondylis Park $1,250.00 Blue Rock Springs Park $1,250.00
Downtown Vallejo $1,250.00
Dan Foley Park and Community Center $1,250.00
TOTAL $5,000
Project-2 City Facilities Design and Engineering
Cost
1155 Capitol Street - Vallejo Police Department, Capitol CRT $2,500.00 1335 Fulton Avenue – Vallejo Fire Station 26 $8,750.00
1585 Ascot Court – Vallejo Fire Station 27 $3,750.00
595 Mini Drive – Vallejo Fire Station 25 $8,750.00
700 5th Street – Vallejo Fire Station 22 $2,500.00
42 Harbor Way – Vallejo Municipal Marina $3,000.00
$29,250.00
Project-3 Fiber
Resilient Ring
Network Expansion
Footage
Design and
Engineering Cost
Fiber Ring Resiliency 64,800 ft $40,500.00
TOTALS 64,800 ft $40,500.00
Project-4 Fiber to Premise Potential
Passings
Design and Engineering Cost
South Vallejo 1755 units $11.250.00
Downtown Vallejo 1143 units $11.250.00
North Downtown Vallejo 1676 units $11.250.00
TOTALS 4,574 units $33,750.00
Design Professional Services Agreement Page 1 of 4
Exhibit C
EXHIBIT C
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of this Agreement, including any extensions thereto, ins urance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of services hereunder by the Consultant, their agents, representatives, or employees or subcontractors.
1. Minimum Scope of Insurance. Coverage shall be at least as broad as:
A. Insurance Services Office form number GL 0002 covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
B. Insurance Services Office form number CA 0001 covering Automobile Liability, code 1 any auto and endorsement CA 0025.
C. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
D. Professional Liability insurance appropriate to the Consultant’s profession (Errors and Omission).
2. Minimum Limits of Insuranc e. Consultant shall maintain limits no less than:
A. General Liability: $2,000,000.00 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, coverage shall be twice the per occurrence amount.
B. Automobile Liability: $1,000,000 .00 per accident for bodily injury and property damage.
C. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. If Contractor is not subject to California Workers’ Compensation requirements, Contractor shall file a completed Request for Waiver of Workers’ Compensation Insurance Form which may be obtained from the City prior to commencing any activity authorized hereunder.
Design Professional Services Agreement Page 2 of 4
Exhibit C
D. Professional Liability (Errors and Omission): Insurance appropriates to the Contractor’s profession with $ 1,000,000 combined single limit per occurrence, and annual aggregate.
3. Deductible and Self-Insured Retention. Any deductibles or self -insured retention must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self -insured retention as respects the City of Vallejo , its officers, offi cials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. All SIRs must be disclosed to the City’s Risk Manager for approval and shall not reduce the limits of liability. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.
4. Other Insurance Provisions.
A. Additional Insured Endorsements: The City of Vallejo, its officers, officials, employees, agents and volunteers are to be covered as Additional Insureds as respects; liability, including defense costs, arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased hired or borrowed by the Contractor. Additional Insured endorsements with respect to General Liability, Auto and Umbrella/Excess Insurance shall be attached to the Certificate of Insurance presented to the City.
B. 30 Days’ Notice of Cancellation Endorsements: Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
C. Waiver of Subrogation Rights Endorsement: The worker s’ compensation policy required hereunder shall be endorsed to state that the workers' compensation carrier waives its right of subrogation against City, its officers, officials, employees, agents and volunteers, which might arise by reason of payment under such policy in connection with Contractor’s performance under this Agreement. The waiver of subrogation rights endorsement in favor of the City of Vallejo shall be attached to the Certificate of Insurance.
D. The limits of Insurance required in this agree ment may be satisfied by a combination of primary and umbrella or excess Insurance. Any umbrella or excess Insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City of Vallejo before the City’s own Insurance or self-insurance shall be called upon to protect it as a named insured.
Design Professional Services Agreement Page 3 of 4
Exhibit C
E. The insurance coverage shall contain no special limitations on the scope of protection afforded to the City of Vallejo, it s officers, officials, employees, agents or volunteers . For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City of Vallejo, its officers, officials, employees, agents, and volunteers. Any insurance or self -insurance maintained by the City of Vallejo , its officers, officials, employees, agents, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
F. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
G. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents, or volunteers.
H. The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
5. Acceptability of Insurers . The insurance is to be issued by companies licensed to do business in the State of California. The insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
6. Verification of Coverage. Contractor shall furnish the City with certificates of insurance and original endorsements. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.
All endorsements are to be received and approved by the City before work commences. The City reserves the right to obtain a full certified copy of any Insurance policy and e ndorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later. All verification of coverage and other insurance documents shall be mailed to the following address:
City of Vallejo
Attn: Risk Manager
555 Santa Clara Street
Vallejo, CA 94590
7. Subcontractors. Consultant shall include all sub contractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for sub contractors shall be subject to all of the requirements stated herein.
Design Professional Services Agreement Page 4 of 4
Exhibit C
8. Payment Withhold . City will withhold payments to Consultant if the certificates of insurance and endorsements required in Paragraph F, above, are canceled or Consultant otherwise ceases to be insured as required herein.
RESOLUTION NO. 23-_____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO AUTHORIZING
THE CITY MANAGER TO EXECUTE A DESIGN PROFESSIONAL SERVICES AGREEMENT WITH SMART FIBER NETWORKS, INC. IN AN AMOUNT NOT TO EXCEED $108,000 WHEREAS, on June 24, 2022, the City of Vallejo published an RFP to solicit broadband vendors to manage, build, and expand City-owned municipal fiber network, also known as VallejoNet; and WHEREAS, Smart Fiber Networks, Inc. was the only respondent that submitted a complete response to the RFP; and
WHEREAS, on November 1, 2022, the Director of Information Technology presented the RFP results to the City Council recommending awarding the Internet Service Provider (ISP) contract to Smart Fiber Networks Inc.; and
WHEREAS, on November 1, 2022, the City Council as per staff recommendation approved the ISP contract with Smart Fiber Networks, Inc.; and
WHEREAS, the remaining work identified in the RFP requires the design professional services of an outside consultant to provide the City with complete design and engineering plans to complete construction work packages for the following 4 projects: 1) public Wi-Fi (Downtown Vallejo, Waterfront Park, Bluerock Springs Park, and Dan Foley Cultural Center); 2) connecting several municipal buildings to the broadband fiber network; 3) building a resilient fiber loop; and 4) fiber to premises in Vallejo neighborhoods; and
WHEREAS, the Director of Information Technology recommends awarding the contract for design professional services to Smart Fiber Networks, Inc. for an amount not to exceed the sum of $108,000; and
WHEREAS, there are numerous economic, digital equity, and digital divide benefits to the City of Vallejo by the expansion of its City-owned municipal fiber network.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager to execute a contract with Smart Fiber Networks, Inc. to design the four broadband fiber network projects identified in the RFP.
Adopted by the City Council of the City of Vallejo at a regular meeting held on January 24, 2023 with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
_________________________________________
DAWN G. ABRAHAMSON, CITY CLERK
ACTION ITEM 9.A.
DATE: January 24, 2023
TO: Mayor and Members of the City Council
FROM: Rekha Nayar, Finance Director
SUBJECT: RECEIVE THE PRESENTATION OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022
RECOMMENDATION
Receive the independent auditors' report addressed to the council and presentation of the City's Annual Comprehensive Financial Report (ACFR) by the auditors, for the fiscal year ended June 30, 2022.
REASONS FOR RECOMMENDATION
The City is required by Charter Section 721 to have an independent audit of its financial records performed each fiscal year. The audited financial statements (ACFR) for the fiscal year that ended June 30, 2022 have been completed.
BACKGROUND AND DISCUSSION
Each year, the City is required by Charter Section 721 to have an independent audit of its financial records.
For Fiscal Year 2021-22 the City engaged Lance, Soll & Lunghard, LLP (LSL), an independent certified public accounting firm to perform the annual audit of the City of Vallejo and its component units except, Vallejo Flood and Wastewater District.
The Annual Comprehensive Financial Report (ACFR) is a comprehensive document reflecting the financial position of the City and its related component units. The 2021-22 ACFR has been prepared in conformance with Generally Accepted Accounting Principles (GAAP) and with additional requirements for presentation as set by the Government Accounting Standards Board (GASB).
Copies of the ACFR will be available during the meeting for public inspection. An electronic copy of this report has been posted on the city website and can be accessed by using the link provided below.
https://www.cityofvallejo.net/
A good summary of the financial condition of the City is contained in the Transmittal Letter and the Management's Discussion and Analysis (MD&A) of the ACFR. Additional supporting information related to the financial statements can be found in the notes to the financial statements of the ACFR. The following represents the key financial positions and highlights of some of the City's major funds:
The General Fund reflected a total ending fund balance of $43.1 million, up by $2.7 million from the prior year.
Of the total fund balance, $23.2 million or 54% is unassigned. This balance represents 18% of the FY 2022-23 budget, which exceeds the Council's established reserve level of 15% of expenditures.
The Water Fund generated $50.1 million in total revenues during FY 2021-22 to support $40.2 million in total expenses for an overall net increase in net position of $9.9 million. This increase is mainly attributed to the water rate increases adopted in 2017 and 2019.
Date: January 24, 2023
Subject: RECEIVE THE PRESENTATION OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022
The Capital Outlay Fund's total fund balance increased by $5.7 million to $18.8 million; all is restricted and committed for current and future capital projects. During the current year, the fund received additional funding of $13.3 million from interfund transfers and fees and incurred $7.6 million in capital project spending.
Audit Opinion: The independent auditor's report addressed to the council, has an "unmodified" opinion for 2021-22 audit. Such an opinion reflects the auditor's belief that the basic financial statements contained in the ACFR present fairly, in all material aspects, the financial position and the changes in financial position of the City of Vallejo for the year ended June 30, 2022, in accordance with GAAP and various requirements of the GASB.
Audit Findings: LSL has not identified any audit findings of material weakness or significant deficiency. See Attachment 2.
Audit Communication Letter: LSL has not reported any significant audit findings, material misstatements, difficulties encountered during the audit or disagreements with City management. See Attachment 3.
FISCAL IMPACT
The cost of preparing the ACFR and the independent audit was budgeted as part of the FY 2022-23 budget.
There is no fiscal impact of this action.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Attachment 1 - City of Vallejo ACFR
2. Attachment 2 - City of Vallejo Report on Internal Control
3. Attachment 3 - City of Vallejo Audit Communication Letter
CONTACT
Rekha Nayar, Finance Director (707-648-4592)
[email protected]
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL REPORT
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CITY OF VALLEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i Certificate of Achievement for Excellence in Financial Reporting .......................................................... x Public Officials ........................................................................................................................................ xi Organizational Chart ............................................................................................................................. xii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................................ 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................... 21 Statement of Activities .................................................................................................................... 22
Fund Financial Statements:
Balance Sheet – Governmental Funds .......................................................................................... 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................................................................... 29
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ...................................................................................................................... 30
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities .................................................................................................................... 32
Proprietary Funds:
Statement of Net Position ........................................................................................................................ 34 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................... 36 Statement of Cash Flows ..................................................................................................................... 38
Fiduciary Funds:
Statement of Fiduciary Net Position................................................................................................ 42 Statement of Changes in Fiduciary Net Position ............................................................................ 43
Notes to the Financial Statements .................................................................................................................. 45
CITY OF VALLEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Funds:
General Fund ................................................................................................................................ 117 Housing Authority Fund ................................................................................................................ 118
City’s Retiree Medical Benefits (OPEB) Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................................................................................................... 119
City’s Retiree Medical Benefits (OPEB) Schedule of Contributions ........................................................ 120
VFWD’s Schedule of Changes in the Net OPEB Liability and Related Ratios ...................................... 121
VFWD’s Schedule of Contributions .......................................................................................................... 122
VFWD’s Schedule of Investment Returns ............................................................................................. 123
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Plan) ................................................................................................................................. 124
Schedule of Contributions (Miscellaneous Plan) ................................................................................... 126
Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) .......................... 128
Schedule of Contributions (Safety Plan) ................................................................................................ 130
Schedule of the Plan’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (VFWD) ........................................................................................................................... 132
Schedule of Contributions – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (VFWD). .............................................................................................................................. 134
CITY OF VALLEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
SUPPLEMENTAL INFORMATION:
Non-major Governmental Funds:
Combining Balance Sheets .......................................................................................................... 140
Combining Statements of Revenues, Expenditures and Changes in Fund Balances .......................................................................................................................... 150
Combining Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual – Special Revenue Funds:
Solid Waste Disposal Fund #135 ............................................................................................. 160 Assets Seizure Fund #139........................................................................................................ 161 State Gas Tax Fund #133 ......................................................................................................... 162 Community Development Block Grant Fund #101 ................................................................... 163 HOME Program Fund #102 ...................................................................................................... 164 Hiddenbrooke Community Services District Fund #138 .......................................................... 165 Mare Island Base Reuse Fund #107 ........................................................................................ 166 Mare Island CFD 2002 Fund #112 ........................................................................................... 167 Mare Island CFD 2005 1A (State) Fund #113 .......................................................................... 168 Mare Island CFD 2005 1B (Local) Fund #114 ......................................................................... 169 Hazmat Revolving Fund #143 .................................................................................................. 170 Justice Assistance Grant Fund #149 ........................................................................................ 171 Supplemental Law Enforcement Grant Fund #151 .................................................................. 172 Traffic Offender/Vehicle Impound Program Fund #140 ........................................................... 173 Landscape Maintenance Districts Fund #161-188 ................................................................... 174 Emergency Disaster Fund #109 ............................................................................................... 175 Office of Traffic Safety Fund #146 ............................................................................................ 176 Outside Services Fund #129 .................................................................................................... 177 Administrative Trust Fund #601 ................................................................................................ 178 State Lands Fund #134 ............................................................................................................ 179 Neighborhood Stabilization Program Fund #103
..................................................................... 180 Navigation Center Fund #191 ................................................................................................... 181 NLP Nuisance Abatement Fund #147 ...................................................................................... 182
Schedule of Revenues, Expenditures and Changes
in Fund Balance-Budget and Actual – Debt Service Fund ........................................................... 183
Schedule of Revenues, Expenditures and Changes
in Fund Balance-Budget and Actual – Permanent Fund .............................................................. 184
Internal Service Funds:
Combining Statement of Net Position ............................................................................................. 186
CITY OF VALLEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
Combining Statements of Revenues, Expenses and
Changes in Fund Net Position ...................................................................................................... 188
Combining Statements of Cash Flows ............................................................................................ 190
Custodial Funds:
Combining Statement of Fiduciary Net Position – All Custodial Funds ........................................ 194
Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds ....................................................................................................................... 195
STATISTICAL SECTION:
Net Position by Component ................................................................................................................... 199
Changes in Net Position ........................................................................................................................ 200
Fund Balances of Governmental Funds ............................................................................................ 202
Changes in Fund Balances of Governmental Funds ......................................................................... 203
Assessed Value and Estimated Actual Value of Taxable Property ................................................... 204
Direct and Overlapping Property Taxes Rates .................................................................................. 205
Top 10 Principal Property Tax Payers ............................................................................................... 206
Property Tax Levies and Collections ..................................................................................................... 207
Taxable Sales by Category .................................................................................................................... 208
Top 25 Principal Sales Tax Payers .................................................................................................... 209
Ratios of Outstanding Debt by Type .................................................................................................. 210
Direct and Overlapping Debt .............................................................................................................. 211
Legal Debt Margin Information ........................................................................................................... 212
Pledged Revenue Coverage ................................................................................................................. 213
CITY OF VALLEJO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Number
Demographic and Economic Statistics .............................................................................................. 216
Top 10 Principal Employers ............................................................................................................... 217
Full-time and Part-time City Employees by Function ........................................................................... 218
Operating Indicators by Function ........................................................................................................... 219
Capital Asset Statistics by Function ................................................................................................... 220
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OFFICE OF THE FINANCE DIRECTOR ∙ 555 Santa Clara Street ∙ Vallejo ∙ CA ∙ 94590 ∙ 707.648.4592
December, 2022
To the Honorable Mayor, Members of the City Council
And Citizens of the City of Vallejo, California
It is our pleasure to present to you the 2022 Annual Comprehens ive Financial Report (ACFR) for the City of Vallejo, California. The Finance Department has prepared this ACFR in conformance with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB). This report presents the City of Vallejo's financial position as of June 30, 2022, the results of its operations, and the cash flows of its proprietary funds for the year then ended in accordance with Generally Accepted Accounting Principles (GAAP).
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, we believe the data, as presented, is accurate in all material aspects. It is presented in a manner designed to fairly set forth the City's financial position and changes in financial position. All disclosures necessary to ena ble the reader to gain an understanding of the City's financial affairs have been included.
Lance, Soll & Lunghard, LLP, a fully licensed public accounting firm qualified to perform audits of the state and local governments within the State of California, have audited the City's basic financial statements. The independent audit's goal was to provide reasonable assurance that the City's basic financial statements for the fiscal year ended June 30, 2022, are free of material misstatem ent. The independent auditors' report is presented as the first component of the financial section of this report.
Management's Discussion and Analysis (MD&A) provides a narrativ e introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found im mediately following the report of the independent auditors.
PROFILE OF GOVERNMENT
The City of Vallejo is a municipal corporation incorporated in March 1868, under the laws of the State of California.
A Charter City located within Solano County in Northern California, the City operates under a City Charter initially adopted in 1911 and last amended in November 2013. The Charter provides for a Council-Manager form of government in which the City Manager recommends policy, program, and budget priorities to the City Council, who in turn develops legislation and policies to direct the City.
The citizens elect the City of Vallejo's governing body in a ge neral, popular election. The Mayor, elected by the community-at-large to a four-year term, acts as the City's formal representative and presides over Council meetings. The City Council, elected on a nonpartisan basis, consists of six members elected by the six districts to four-year, staggered terms. With a population of just over 1 22,000 (estimated as of 2022), Vallejo is the largest City in Solano County and the tenth most populous City in the San Francisco Bay Area. Vallejo is the site of Mare Island Naval Shipyard, the first United States nav al base established on the Pacific Ocean.
Established in 1854, the shipyard began building ships the following year. More than 500 naval vessels were constructed, and thousands were overhauled at Mare Island before the base closure in 1996.
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The Sacramento, Napa, and San Joaquin Rivers all flow into the San Francisco Bay at Vallejo. Rolling hills surround the City, protecting it from fog and wind typical of m any coastal towns. Vallejo enjoys a mild Mediterranean climate. It is connected to the Greater Bay Area, the Pacific Rim, and the rest of the world by ship, rail, automobile, and air.
Vallejo is located in Northern California, 30 miles northeast of San Francisco, Approximately 60 miles southwest of Sacramento, 70 miles north of Silicon Valley, and 385 miles north of Los Angeles.
*Map Source: Google Maps
The City provides a wide range of municipal services, including public safety (police and fire protection), a municipal water system, street maintenance, and other public works infrastructure functions, housing assistance, golf courses, planning, building inspection, public marina, and general administration. The separate Greater Vallejo Recreation District (GVRD) provides fo r Parks and Recreation programs and services, Water Emergency Transport Agency (WETA) provides for ferry services, and Solano County Transit (SolTrans) provides bus services.
This report includes all organizations and activities for which elected City officials exercise financial accountability. The notes to the financial statements further discuss the City as a financial reporting entity.
Accordingly, the following entities, although legally separate, are component units and are incorporated in the accompanying financial statements:
Housing Authority of the Cit y of Vallejo (Blended Component Unit) Marine World Joint Powers Aut hority (Blended Component Unit) Parking Authority of the City of Vallejo (Blended Component Un it) Public Financing Authority of the City of Vallejo (Blended Component Unit) Empress Investment Fund, LLC (EIF) (Blended Component Unit) Vallejo Homeless Navigation Center JPA (Blended Component Unit ) Vallejo Flood and Wastewater Dis trict (Discrete Component Unit) Vallejo Flood and Wastewater Dis trict Financing Corporation (Discrete Component Unit)
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ECONOMIC CONDITION AND OUTLOOK
The economic impact of the pandemic, sudden shifts in the labor force and housing markets, as well as the global impacts of war, have been felt throughout the State and City. This economic disruption has affected many businesses and individuals very seriously. Solano County’ s unemployment rate was 5.2% at the end 2021 down from 9.5% for 2020. By the end of 2022 it is likely to be close to its pre-pandemic unemployment rate of 3.8%. Solano County has experienced job recovery but h ave fewer available workers from city residents. Vallejo unemployment rate was 8.9% in 2021. The Pandemic's economic impact on businesses is still being felt yet there are encouraging signs for additional recovery in the coming year. As many look to 2023, there is hope that some normalization to our citizens' lives will occur.
Even in the midst of the pandemic, and through 2022, Bay Area real estate is still trending positively, leading to continued upward movement in property value. Vallejo continues to be an affordable location and up-and-coming Bay Area city for young professionals and working-class families. A healthy housing stock, new residential development projects, and the ease of commute to Sa n Francisco via ferry put Vallejo in a prime position to offer home-seekers a unique opportunity to settle d own in a region that can otherwise be cost-prohibitive.
During the pandemic and current economic rebound, the City has seen negative impacts on revenue sources.
Even with some positive signs of development opportunities, some of the looming fiscal challenges include the rising costs of employee salaries and benefits that threaten nearly all businesses and California municipalities.
In addition, critical pieces of City infrastructure are showing their age and will require significant capital expenditures to remedy. In the next year, the City will focus on planning for future infrastructure, and updating the City's Economic Development strategic plan.
State Budget - Two years after the COVID-19 pandemic, the state faces other challenges. Global inflation coupled with disruptions in the supply chain have caused a significant increase in prices. Additional problems stem from extreme heatwaves that contribute to drought conditio ns felt around California and cause wildfires that are increasing in severity. While these events are adding strain on California’s budget overall, the state is finding success in budgeting relief and focusing on fiscal responsibility. The state has appointed $17 billion in relief funds to provide increased protection for communities impacted by extreme weather events and to ease the burden felt by rising costs. W hile California has provided a safeguard against the known budget strains, the state has continued its policy of fiscal responsibility by allocating $37.2 billion to budgetary reserves (which includes additional deposits into reserve funds and prepaying state debts). In addition to providing relief to communities affected by extreme weather patterns and global inflation, the State of California is seeking to improve the K-12 education sys tem by allotting $78 billion doll ars. The allotted amount will provide new preschool and transitional kindergarten programs and facilities statewide, ease childcare burdens that many families experience, and additional funding to provide support for the new behavioral health system that California has been implementing. California’s policy of fiscal responsibility will greatly impact Vallejo and the community at large.
Revenues and Local Sales Tax Increase - In November 2016, the Vallejo voters approved a sales tax measure, known as "Measure V," that permanently extended the Ci ty's 2011 Measure B one-cent per dollar transaction and use tax. This tax continues to provide around $21.3 million annual revenue to the City. These revenues are strategically allocated towards specific projects, targeted staffing, and the rebuilding of reserves under the direction of the City Council. Also, these revenues h ave positioned the City to restore services previously reduced during the resource challenges of the past s everal years. The following chart tracks the improvement in the total General Fund revenues and expenditures over the last ten years.
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CURRENT FINANCIAL CONDITIONS
Current Financial Conditions - The graph below illustrates the Ci ty's current financial condit ion and its improved fiscal stability since the passage of the 2011 Measure B/V tax. It presents the changes in fund balance for the General Fund for the fiscal year ended June 30, 2022, as compared with the ten prior years.
In fiscal year 2021-22 the city’s General Fund revenues had not been as drastically impacted by the pandemic as originally projected primarily due to strong sales and availability of various grants. As a result, the City was able to maintain General Fund unassigned fund balance (budget reserves) over the City Council's established level of 15% of expenditures. The City is committed to maintaining and growing these fund balance reserves to provide additional strength and assurance for ongoing City operations and future obligations.
16.93 19.02
21.56 25.75
30.38 29.86
32.16 28.32
40.38 43.13
9.80 6.94 7.98 9.93
15.68 21.24
24.51 17.98
21.68 23.20
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Fiscal Year Ended June 30
GENERAL FUND ‐ FUND BALANCE
Total Fund Balance
Unassigned
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Pension and Other Post-Employment Benefit (OPEB) Obligations – A continued concern for California cities are notable obligations for pensions and OPEB for retiree health care. The California Public Employees' Retirement System (CalPERS) continues to address pension plan r isk and funding levels by updating its actuarial demographics assumptions and phasing in contribution increases to address significant investment losses dating back to 2009. As a result, employer contribution rates are projected to continue to rise in future years.
During fiscal year 2021-22, the City contributed 21.90. % and 11.06% of employee salary towards the standard cost for its Safety and Miscella neous pension plans, respectively. In addition, in July 2021, the City made its $23.7 million required annual payment on the Unfunded Accrued L iabilities (UAL). Projections utilizing July 2022 CalPERS data show the City's FY 2028-29 standard rates for its Safety and Miscellaneous plans decreasing to 19.7% and 10.0% respectively and its total required annual payment on the UAL increasing to $25.4 million.
The City has previously taken steps to mitigate both this CalPE RS rate increase and its OPEB retiree health obligations. In 2013, the City proactively made a supplemental contribution of $6.5 million to CalPERS to begin plan stabilization. In August 2017, the City established an Internal Revenue Code (IRC) Section115 Trust with the Public Agency Retirement Services (PARS) organization to further mitigate future CalPERS increases. On June 30, 2022, the General Fund reported $12.5 million in total contributions to the PARS Pension Trust Fund, including investment earnings.
During 2013-14, the City made an initial $10 million contributi on to a dedicated and irrevocable retiree health benefits trust fund to begin to p rovide the resources necessary to ensure long-term funding for its OPEB obligation. On June 30, 2022, the City's total contributions to the California Employer' Retiree Benefit Trust (CERBT) were $25 million including investment earnings, funding 64% of the City's total OPEB liabilities of $39 million as of the June 30, 2021 measurement date.
LONG RANGE FINANCIAL FORECASTING
General Fund Long-Term Financial Forecast – The City regularly utilizes the General Fund long-term financial forecast to help the City plan for the future by prov iding an understanding of available funding while evaluating financial risks and identifying future commitments and resource demands. The table below provides the current five-year view of the City's fiscal condition and incorporates both operating and capital needs in the community.
The City operates with a balanced budget in fiscal year 2022-23 and is projecting to end up with a budget surplus in fiscal year 2022-23. This is primarily due to incre ases in property tax and sales tax. Despite the rising pension, health care and general liability costs, the Ci ty continues to look for ways to develop a more sustainable fiscal framework and implement long-term solutions that will address these ongoing budgetary challenges.
Capital Improvement Project Planning – The City's Capital Improvement Program (CIP) is planned for five years and analyzed using City-specific prioritization criteria. This is updated regularly to reflect changing needs, funding availability and removal of projects which have been completed. The CIP budget for 2021-22 is $26 million. Funding comes from multiple sources, including General fund transfers, fees, grants, and bond proceeds.
F Y 22/23 F Y 23/24 F Y 24/25 F Y 25/26 F Y 26/27
Adopted Projected Projected Projected Projected
Revenues/ Transfers In 131 $ 133 $ 136$ 139$ 144$ Expenses/ Transfers Out 130$ 131 $ 136$ 140$ 145$ (Deficit)/ Surplus for Year 1$ 2 $ -$ (1)$ (1)$ Ending Available Balance 21$ 23 $ 23$ 22$ 21$ General Fund Long-Term Forecast
through F iscal Year 26/27
(In millions)
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MAJOR INITIATIVES
Each year the City is provided with a new opportunity to identi fy, address, and resolve issues facing the community and its residents.
Small Business Support Initiatives – The City recognized that the Pandemic had significant impacts on its small businesses. This impact is felt by business owners, neig hbors and fellow citizens employed locally, as well as through the City's tax revenues. As the general economy recovers, the City has recognized the need to continue to support its small businesses and provide support materials through the on-going post-pandemic economic recovery. This includes support for Payroll Protection, access to the Solano Workforce Development Board (WDB), Small Business Development Center (SBDC) resources, Chamber resources, State support services, essential business determinations, business reopening guidelines, outdoor dining, and personal service permits, hybrid permitting options, and much more.
Small Business Grant Program – Pandemic Relief
The City implemented a successful Small Business Grant program that supported over 60 Vallejo businesses.
The City Council approved the use of American Rescue Plan Act (ARPA) funds to provide a second round of grant funds to function as direct support to small businesses in Vallejo. City staff and partners, Solano WDB, look forward to implementing a second round of grant programs f or small businesses and enhancing the program with recovery support similar to other programs in Sola no County and throughout the state. The Restaurant Resiliency Program also used ARPA funds as a grant to support restaurants in the City to prepare meals and feeding the houseless within our city.
Economic Development Strategic Plan Initiatives – The City continues to focus on economic development with a commitment to advance job growth, create sustainable revenue, and to maintain an excellent quality of life for all residents. The Economic Development Strategic Plan has kicked off this year and will be completed within the next Fiscal Year. This document will provide strategies and a road map to implement them to ensure economic development growth in the future.
Several exciting Economic and Community Improvement Projects on key pieces of property are seeing movement over the past year with a list of opportunities in the coming year. The City continues to see many business and development inquires, and staff are working diligently to expedite these projects with the vision that their success will ripple through the community and help bolster future development opportunities. Some of these projects include:
Mare Island – Proposed Mixed-Use Development
The Nimitz group took ownership of the majority of Mare Island and contracted with development partner Southern Land Company at the end of 2019. The Nimitz Group and Southern Land Company embarked on a program of hiring a development team, facilitating business in their core commercial area, assessing current buildings for upgrades, providing security and improvements, analyzing the infrastructure costs on the island, and the costs for North Mare Island. They also have added to t heir design and planning team to develop an island-wide master plan to set up Mare Island as a community of manufacturing, business, employment, housing, and recreation. Over the past year they have held monthly community meetings to keep all informed of plans and progress as well as meeting regularly with the Cit y staff to implement the North Mare Island exclusive negotiating agreement into a full Development Agreeme nt (DA). The DA was approved in the first quarter of 2022 and will guide development of the island over the next several years and includes a requirement for a new island-wide Specific Plan to guide future development . The initial transfer of the City’s 125 acres closed October 12, 2022, and the remaining 32 acres will be conveyed to Nimitz after the Navy completes the environmental cleanup and transfers the parcels to the City. P hase 1 of the DA implementation includes the Connelly Corridor development to be constructed within 60 months of closing. This proposal includes demolition of 10 buildings on NMI, approximately 29,000 sq. ft. of office, 373 multifamily units, a 200-room
hotel, 46,000 sq ft of ancillary uses, and 194,000 sq ft open space.
Cooke Property – New Costco and Housing Development in Process Vallejo Fairview Developers/Lewis Group received entitlement approval for a Master Plan to construct a new, expanded Costco, additional retail and 178 new single-family homes on the 50-acre parcel formerly known as the Cooke Property on Admiral Callahan Lane adjacent to I-80 in 2020. The long-vacant site's size and visibility make it an ideal relocation site for Costco, and it allows the City to retain this major employer and sales tax collector, as well as provides much needed housing to the community housing stock. After more than a year vi
of litigation, the agreements to i mplement this project are com plete and the developer is preparing to move forward in the coming year.
Blue Rock Springs – Proposed Golf and Housing Development Currently, under an Exclusive Negotiating Agreement with the Greg Norman Company and Lewis Group, the proposed Project Concept would transform two fiscally unsustainable City golf courses and an aging clubhouse on 225 acres of City-owned land into a new community of approxi mately 400 single-family homes designed within a single 18-hole Greg Norman golf course and state-of-the-art clubhouse. Revenue from the proposed project would cover modernization of the golf course and a new clubhouse and eliminate potential General Fund subsidies, but the golf component would remain public/City -owned. The Pandemic, neighbor concerns, and other challenges have slowed this project process, but the coming year should see increased movement as we move forward with the disposition of the land and negotia tion of the key deal terms and performance timelines.
Seka Hills
The City is finalizing negotiation of a lease of approximately 1/2 acre of waterfront property to be developed by the Yocha Dehe Tribe. The proposed development includes a cultural center, a restaurant, outdoor gathering area, and development of the 10-acre Waterfront History Park. The lease is expected to be approved prior to December 2022 and then entitlements for the project will commence in first quarter 2022.
Solano360 – Solano Fairgrounds
The overall site consists of 149.1 acres in the Vallejo City limits. The City and the County worked together on a Request for Qualifications (RFQ) process that selected two primary development groups to propose on a Request for Proposals (RFP) to amend the 2009 Specific Plan. T he City and County selected one master developer based on their proposal in October 2020. The County h as signed an agreement with the preferred developer to facilitate their vi sion for the development of the area as an iconic region-serving public entertainment destination and private-mixed use development, and an integrated "Fair of the Future". A proposed Specific Plan Amendment envisions that the site would develop with a mix of region-serving entertainment uses along with restaurant, retail and hospitalit y uses that complement the existing Solano County Fairgrounds and the adjacent Six Flags Discovery Kingdom facility. Development kickoff meetings began in 2021 and the County and developer are preparing detail ed plans to be submitted to the City in preparation of moving this project forward in the coming year.
Participatory Budgeting
– In 2012, the Vallejo City Council established the first citywid e Participatory Budgeting (PB) process in the United States, where residents have the opportunity to propose how to spend a portion of the city budget. Through the PB process, Vallejo residents and stakeholders share ideas, develop project proposals, and residents vote on projects. The approve d list of projects that receive the most votes are submitted to City Council for consideration. By Fiscal Year 2021-22, approximately 60 projects have been approved through the PB process, totaling more than $10 million in funding. Although Participatory Budgeting was placed on pause in Fiscal Year 2021-22, an additional $1,000,000 was allocated towards the program; $500,000 in FY 2021-22 and $500,000 in FY 2022-23. These funds will go towards new projects in the upcoming Fiscal Year.
Eden Supportive Housing Project – Blue Oak Landing
The City worked collaboratively with Eden Housing to create 74 units of permanently affordable housing units in a transitional supportive housing project on Sacramento Stre et called Blue Oak Landing. This project required the efforts of multiple Departments and leveraging HUD funds to make it a reality. The project construction broke ground in November of 2021 and is expected to be ready for tenants during first quarter of 2023.
Firm Foundation Housing Project – Broadway Project
The City, along with Firm Foundation, received a $12 Million gr ant from the State Housing and Community Development Commission (HCD) for the Homekey grant to build 48 units on Broadway Street to serve as permanent supportive housing for homeless people in the community. The City and Firm Foundation partnered with Factory OS to provide the units and ground broke in the fall of 2022. The project is expected to be ready for tenants in Spring 2023.
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Improving Technology – Information Technology continues to make strides in several are as of the city to improve technology and enhance communication. The following are projects that greatly enhance the City's operation and represent a considerable benefit for our citizens:
Information Technology in close partnership with Finance and H uman Resource Departments have embarked on upgrading our antiquated enterprise resource planni ng financial (ERP) system. The system in use today to manage Ci ty's financials, utility billing, payroll, and warehouse inventory was installed in 1998. This upgrade will take place in 2022 and is expected to be completed by the summer of 2023.
Information Technology’s focus for the next several years is B roadband and Digital Equity. In 2021 President Biden announced that broadband is to be made available to all. In his Infrastructure and Investment Job Act (IIJA) Congress allocated a whopping $62 bil lion dollars towards the buildout of broadband infrastructure throughout the nation. On May 17, 2022, Vallejo City Council adopted a new Broadband and Digital Equity Strategy. This policy documents clear direction to the city to continue to build and expand its municipal fiber network. The City is in th e process of selecting and installing a new ISP and fiber plant operator. The City Council has made an allocation of $2.5 million towards the buildout of fiber infrastructure for the city. In the upcoming 6 months the City of Vallejo will be implementing the following projects:
o Public Wi-Fi in Vallejo Downtown
o Public Wi-Fi in Va llejo waterfront
o Public Wi-Fi in Blue Rock Springs Park
o Connecting several municipal buildings to the city fiber. o Building a resilient redundant fiber loop.
o Exploring options for fiber to premise (FTTP) in neighborhoods to be specified.
Staffing and Collective Bargaining – The City remains focused on attracting dedicated professional s to fill critical vacant positions while developing and retaining curren t staffing in a very competitive employment market. The City now has existing agreements in place with IBEW, CAMP and IAFF and is in negotiations with VPOA.
BUDGETARY CONTROL
The City maintains budgetary controls through the City Council's adoption of an annual budget and by maintaining an encumbrance accounting system. The Vallejo Munic ipal Code requires the City Manager to present the Annual Budget to the City Council for approval 45 days prior to the start of the new fiscal year.
Expenditures for City operations and other purposes identified in the annual budget cannot legally exceed the budgeted amounts approved by the City Council. The City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office, or agency by resolution to the City Council.
Ultimate budgetary control resides at the fund level; however, the City has adopted several budgetary appropriation and transfer procedures to provide strong interna l controls while encouraging improved accountability and administrativ e responsiveness. All budgetary transfers require the Finance Director's or designee's review and approval. All transfers of appropriations affecting salaries and benefits also require the City Manager's or designee's review and approval.
Budgetary control is established at the following levels: a) Ge neral Fund – Department level; b) Other Funds – Fund level; and Capital Projects – at Department level with City Manager signature approval. The City Manager may authorize line-item budget transfers within a Gener al Fund department or within a fund other than the General Fund, consistent with the City Charter, the Vallejo Municipal Code, and budget resolution.
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Government Finance Officers Association
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Residents of Vallejo
Vallejo City Council
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& Landmarks
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Community
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Citywide Organizational Chart
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Proposed change in department title from Economic Development to Planning & Development Services in FY2019‐20 requires formal authorization of the City Council by ordinance in accordance with City Charter Section 601. *
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2151 River Plaza Dr., Suite 150
Sacramento , CA 95833 Phone: 916.503.9691 Lance, Soll & Lunghard, LLP
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Vallejo, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Vallejo, California, (the “City”) as of and for the year ended June 30, 2022, and th e related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, t he business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards ge nerally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our r esponsibilities under those standards are further described in the Auditor’s Responsibiliti es for the Audit of the Financial Statements section of our report. We are required to be independent of th e City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in the fiscal year ended June 30, 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting prin ciples generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control rel evant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
To the Honorable Mayor and Members of the City Council
City of Vallejo, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with G AAS and Government Auditing Standards will always detect a material mi sstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mi srepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skept icism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate th e overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and Housing Authority Fund, and required pension and other post-employment benefits s chedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied 2 To the Honorable Mayor and Members of the City Council City of Vallejo, California
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 informat ion 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 stat ements. We do not express an o pinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules (supplementary information) are presented for purpose s of additional analysis and are not a required part of the basic financial statements. Such informat ion is the responsibility of management and was derived from and relates directly to the underlying account ing and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional proced ures, including compar ing 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 supplementary information is fairly stated, in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our r esponsibility is to read the other information and consider whether a material i nconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated January 10, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the s cope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Sacramento, California
January 10, 2023
3 THIS PAGE INTENTIONALLY LEFT BLANK
4 OFFICE OF THE FINANCE DIRECTOR ∙ 555 Santa Clara Street ∙ Vallejo ∙ CA ∙ 94590 ∙ 707.648.4592
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2022
This narrative of the City of Vallejo’s financial performance provides an overview and analysis of the City’s financial activities for the year ended June 30, 2022. We enco urage readers to consider the information presented here in conjunction with the Transmittal Letter, the Basic Financial Statements, and the accompanying notes to the financial statements.
FINANCIAL HIGHLIGHTS
Government-wide (full accrual basis)
The City’s assets and deferred outflows exceeded its liabilities and deferred inflows at the close of the fiscal year 2022 by $338.8 million (net position). This amount improved by $50.9 million from the prior fiscal year.
The City was allocated $25.7 million through the American Rescue Plan Act (ARPA). The first tranche ($12.9 million) was received in fiscal year 2021 and earmarked for homeless programs, broadband infrastructure, fire station tonal safety alert syste m, street and safety crime reduction, economic development, community COVID recovery and reopening th e Glen Cove fire station.
The second tranche was received in June 2022 and reported as unearned revenue. These funds will be appropriated in fiscal year 2023.
The City implemented new lease accounting standards during fiscal year 2022, following guidance from the Government Accounting Standards Board (GASB) Statement No. 87. A new lease receivable of $13.0 million and a deferred inflow of resources of $12.7 million have been recorded as of June 30, 2022 along with a new lease liability and an intangible right to use lease asset in the amount of $0.3 million.
Fund level (modified accrual basis)
As of June 30, 2022, the City’s governmental funds reported com bined fund balance of $154.2 million, $10.3 million higher than the prior year balanc e. Approximately 15% of this amount, or $23.2 million, is unassigned and available for spending at the City’s discretion.
The General Fund had a total ending fund balance of $43.1 million, up by $2.7 million or 6%, from fiscal year 2021. Of the total fund balance, $23.2 million (54 %) is unassigned. This balance represents 18% of Fiscal Year 2022-23 budgeted expenditures (in cluding Measure B programs), which exceeds the City’s goal and GFOA recommended reserve level of 15%.
The Water Fund reported an unrestricted net position of $18.0 million which may be used to support the Water Fund’s operating and capital requirements.
Detailed discussion of the changes in net position and fund balances can be found in the subsequent sections.
5 OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of this report is presented in the following sections:
1) This introductory commentary, Management’s Discussion and Analysis 2) Basic Financial Statements, including:
a. Government-wide financial statements
b. Fund financial statements
c. Notes
3) Required Supplementary Information
a. Net OPEB Liability and Contribution Schedules
b. Net Pension Liability and Contribution Schedules
4) Supplemental Information:
a. Non-major governmental funds
b. Internal service funds
c. Agency funds
BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as introducti on to the City’s Basic Financial Statements, comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.
Government-wide Financial Statements
The Government-wide Financial St atements provide a long-term vi ew of the City’s activities as a whole.
The Statement of Net Position provides information about financ ial position, including capital assets and long-term liabilities on a full accrual basis, similar to that used by commercial enterprises. The Statement of Activities provides information about the City’s revenues and expenses, also on a full accrual basis, with emphasis on measuring the net revenues and expenses of City programs. Information is presented both in total and separately for governmental activities, which are generally supported by taxes and grants, and for business-type activities, which are generally supported by user fees. The City’s activities include the activities of multiple legal entities, and the Vallejo Flood an d Wastewater District (VFWD, formerly Vallejo Sanitation and Flood Control District), a discretely pr esented component unit, because the City is either financially accountable for these entities or has control of the governing board of these entities.
Fund Financial Statements
The Fund Financial Statements re port the City’s operations in m ore detail than the government-wide statements. The focus is on the individual funds that are used to report the status of restricted or otherwise segregated resources and also to demonstrate compliance with fi nance-related legal requirements. All of the funds of the City can be divided into the following three categories:
Governmental Funds – Governmental funds account for essentially the same functions reported as governmental activities in the Government-wide Financial Statem ents. However, unlike the Government-wide Financial Stat ements, governmental fund financi al statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year (Modified Acc rual Basis of Accounting). Such information may be useful in evaluating the City’s near -term financing requirements. To understand the long-term impact of the City’s near-term financing decisions, it is useful to compare the information presented for governmental funds with similar i nformation presented for governmental activities in the Government-wide Financial Statem ents. Both the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
6 Proprietary Funds – The City maintains two different types of proprietary funds: enterprise funds and internal service funds.
Enterprise Funds report the same functions presented as busines s-type activities in the Government-wide Financial Statements. The City has five enterprise funds, which are all reported as major funds.
Internal Service Funds are an accounting device used to accumul ate and allocate costs internally among the City’s various functions. The City’s internal service funds account for fleet maintenance and replacement, risk management and insurance, payroll and ret iree health benefits. Since these services predominantly benefit gove rnmental rather than business -type functions, they are consolidated within governmental activities in the Government-wide Financial Statements.
Proprietary funds provide the sam e type of information as the G overnment-wide Financial Statements, but in more detail. The proprietary funds financial statements provide separate information for each of the enterprise funds. Data for the four internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements.
Fiduciary Funds – Fiduciary funds account for resources held for the benefit o f parties outside the City. Fiduciary funds are not reflected in the Government-wide Financial Statements because the resources of those funds are not available to support the City’ s own programs. Fiduciary fund accounting is similar to proprietary fund accounting. The City has two types of fiduciary funds: the custodial funds and the private purpose trust funds.
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 th e Financial Statements follow the basic financial statements.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary informati on concerning the City’s progre ss in funding its obligation to provide pension and retiree medical benefits to its employees. Require d Supplementary Information follows the notes to the financial statements. Supplementary information o n non-major governmental funds and internal service funds are also presented immediately following the required supplementary information on pensions.
7 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Below is a summary of the City’s government-wide net position as of June 30, 2022 and 2021, as measured on a full accrual basis of accounting. Over time, increases or decreases in net position may serve as a useful indicator as to whether the City’s financial position is improving or weakening.
Governmental Business-type Government-wide
Activities Activities Totals Increase/
2022 2021 2022 2021 2022 2021 (Decrease)
Assets
Current and other assets 262.2$ 228.7$ 108.8$ 102.4$ 371.0 $ 331.1$ 39.9$ Capital assets 356.4 355.7 106.2 109.2 462.6 464.9 (2.3) Total assets 618.6 584.4 215.0 211.6 833.6 796.0 37.6
Deferred Outflows of Resources
Unamortized loss on refunding of debt - - 1.4 1.5 1.4 1.5 (0.1) Related to pensions 28.7 31.2 4.0 3.9 32.7 35.1 (2.4)
Related to OPEB 2.8 3.3 0.7 0.9 3.5 4.2 (0.7)
Total deferred outflows 31.5 34.5 6.1 6.3 37.6 40.8 (3.2) Liabilities
Current and other liabilities 66.2 61.0 14.9 14.4 81.1 75.4 5.7 Net pension liability 205.5 278.6 25.9 34.7 231.4 313.3 (81.9) Other long-term liabilities 47.3 5 3.3 93.6 100.3 140.9 153.6 (12.7) Total liabilities 319.0 392.9 134.4 149.4 453.4 542.3 (88.9) Deferred Inflows of Resources
Related to pensions 52.6 0.9 6.2 0.1 58.8 1.0 57.8
Related to OPEB 6.1 4.5 1.4 1.1 7.5 5.6 1.9
Related to leases 12.7 - - - 12.7 - 12.7 Total deferred inflows 71.4 5.4 7.6 1.2 79.0 6.6 72.4
Net position
Net investment in capital assets 339.9 336.1 61.3 59.2 401.2 395.3 5.9 Restricted 103.7 98.1 0.0 0.0 103.7 98.1 5.6
Unrestricted (183.9) (213.5) 17.8 8.0 (166.1) (205.5) 39.4 Total net position 259.7$ 220.7$ 79.1$ 67.2$ 338.8$ 287.9$ 50.9$ Statement of Net Position
as of June 30, 2022 and 2021
(In millions)
Current and other assets in 2022 increased $39.9 million or 30% over prior year, largely due to the new lease receivable recorded in compliance with GASB Statement No. 87 and the City’s receipt of the second tranche of ARPA funds.
The City reflected an $81.9 million reduction in its net pensio n liability, from $313.3 million to $231.4 million. This decrease is attributed to CALPERS strong i nvestment returns and City’s annual contributions to the Safety and Miscellaneous pension plans.
Deferred inflow of resources increased $72.4 million due to the significant increase in net difference between projected and actual earnings on pension plan investments and recording of a new deferred inflow account related to leases.
8 As noted earlier, the City’s assets and deferred outflows exceeded its liabilities and deferred inflows at the close of the fiscal year by $338.8 million (net position). This amount increased by $50.9 million, or 18%, from prior year and is comprised of the following major components:
Net investment in capital assets increased $5.9 million to $401.2 million. This represents the largest portion of the City’s net position. The City uses these capital assets to provide services to its residents and other stakeholders. Accordingly, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, as the capital assets themselves could not be used to liquidate these liabilities.
Restricted net position increased by $5.6 million to $103.7 million.
These assets are subject to
agreements with creditors, developers, grantors, or laws or reg ulations of other governments. By definition, the City cannot remove these restrictions as they are imposed by parties outside the City.
The unrestricted net deficit improved from $205.5 million in 2021 to $166.1 million in 2022. This deficit is primarily due to the net pension obligation for the Safety and Miscellaneous plans.
Additional information on the net pension liability can be foun d in Note 11 to the Financial Statements.
Governmental Activities
The following analysis focuses on the changes in net position of the City’s governmental activities for the years ended June 30, 2022 and 2021.
Governmental Activities
2022 2021 Amount %
Revenues
Program revenues
Charges for services 31.1 $ 26.1 $ 5.0 $ 19% Operating grants and contributions 36.6 45.8 (9.2) -20% Capital grants and contributions 6.7 7.1 (0.4) -6%
Total program revenues 74.4 79.0 (4.6) -6%
General revenues
Property related taxes 36.3 34.0 2.3 7%
Sales and transaction taxes 40.9 38.2 2.7 7%
Utility users tax and others 30.1 28.9 1.2 4%
Investment earnings and other (1.6) 5.4 (7.0) -130%
Total general revenues 105.7 106.5 (0.8) -1%
Total revenues 180.1 185.5 (5.4) -3%
Expenses
Administration 10.7 10.5 0.2 2%
Community development 31.3 35.5 (4.2) -12%
Planning and development services 3.1 4.0 (0.9) -23%
Fire services 27.5 34.6 (7.1) -21%
Police services 41.0 56.1 (15.1) -27%
Public works 26.0 29.5 (3.5) -12%
Interest on long-term debt 0.4 0.4 - -
Total expenses 140.0 170.6 (30.6) -18%
Excess before transfers 40.1 14.9 25.2 169%
Transfers (1.1) (0.3) (0.8) 267%
Change in net position 39.0 14.6 24.4 167%
Net position - beginning 220.7 206.1 14.6 7%
Net position - ending 259.7$ 220.7 $ 39.0 $ 18% Increase/(Decrease)
Statement of Activities
for the years ended June 30, 2022 and 2021
(In millions)
9 Governmental activities increased the City’s net position by $39.0 million, mainly due to the 18% reduction in total expenses.
Revenues
Revenues are divided into two categories: Program Revenues, which are the revenues derived directly from the functional programs or from parties outside the City’s taxp ayers or citizenry; and General Revenues, which are the revenues that do not meet the requirements of program revenue, most of which are taxes.
Program Revenues were down $4.6 million, or 6%, to $74.4 millio n. Charges for services increased by $5.0 million during the year but was offset with a $9.2 million decline in operating grants, such as Section 8 and CDBG grants, CARES grants, and donations to Navigation Center.
Total General Revenues of $105.7 million decreased by $0.8 mill ion from prior year. These revenues included general taxes, which provided the City Council with the most discretionary spending ability. The most significant factors in the year-over-year change in General Revenues were as follows:
Property tax revenues increased $2.3 million, or 7%, to $36.3 million as property values continued to rise from new construction and increased property sales prices.
Sales and transaction tax revenues increased by $2.7 million, or 7%, to $40.9 million. as a result of increased online shopping and gains in the auto and transportation industry.
Investment earnings and others decreased by $7.0 million as the rising interest rate environment during 2022 caused the fair value of the City’s investments to drop significantly compared to the book value and cash collected in investment income.
Total revenues for the City’s governmental activities reflected an improving economic base. Both tax revenues and charges for services contributed to a combined $11 .2 million increase in revenues from the prior year.
The pie chart below illustrates the distribution of the governmental activities revenues by source. The largest revenue source for governmental activities is grants an d contributions at $43.3 million (24%) followed by sales tax (22%) and property tax (20%). The City’s reliance upon grant and tax revenues is evident from the chart, which is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general taxes.
10 Expenses
Overall costs of services fo r governmental activities decreased from $170.6 million in the prior year to $140.0 million in the current fiscal year. Except Administration, every expense category decreased this year primarily due to the GASB 68 negative pension expense allocatio n attributed to CALPERS strong investment returns.
Net Revenues (Expenses)
Program revenues associated with Governmental Activities totaled $74.4 million, or 53%, of program expenses ($139.6 million). Expenses not covered by program revenues must be funded from non-program sources like general tax revenues. The table below illustrates the gap between program revenues and expenses by major activity. Public safety programs rely heavily on taxes to support operations. General government programs provide benefit to both business-type and g overnmental activities and receive some funding through internal indirect cost allocations to supplement program and general tax revenues.
Detailed analysis of the General Fund and other major governmental funds are discussed in the subsequent sections.
11 Business-type Activities
The following analysis focuses on the changes in net position of the City’s business-type activities for the years ended June 30, 2022 and 2021.
Business-type Activities Increase/(Decrease)
2022 2021 Amount %
Revenues
Program revenues
Charges for services 57.1$ 55.3 $ 1.8$ 3% Capital grants and contributions 2.4 0.4 2.0 500%
Total Program revenues 59.5 55.7 3.8 7%
General revenues
Investment earnings and other (2.5) - (2.5) - Total revenues 57.0 55.7 1.3 2%
Expenses
Water 40.2 40.6 (0.4) -1%
Marina 1.0 2.1 (1.1) -52%
Golf 4.2 4.2 - -
Vallejo Station Parking 0.5 0.8 (0.3) -38%
Fiber Optic 0.3 - 0.3 - Total expenses 46.2 47.7 (1.5) -3%
Excess before transfers 10.8 8.0 2.8 35%
Transfers 1.1 0.3 0.8 267%
Change in net position 11.9 8.3 3.6 43%
Net position - beginning 67.2 58.9 8.3 14%
Net position - ending 79.1$ 67.2$ 11.9$ 18% Statement of Activities
for the years ended June 30, 2022 and 2021
(In millions)
Business-type activities increased the City’s net position by $11.9 million, or 18%, to $79.1 million.
Charges for services were up by $1.8 million, or 3%, primarily in Water Fund and Vallejo Station Parking Fund. Water charges for services increased $1.1 million from pr ior year. This reflects a full year of the 7% rate increase that took effect July 1, 2021. The Vallejo Sta tion Parking Fund’s revenues continued to recover from $0.2 million in prior year to $0.6 million this current year as commuter traffic returned to the Vallejo Waterfront.
Capital grants and contributions increased by $2.0 million. This reflects the $1.9 million one-time financial relief for water customers through the California Water and Wastewater Arrearage Payment Program.
Investment losses is reported at $2.5 million as the rising int erest rate environment during the fiscal year resulted in lower investment valuations compared to book value.
Overall expenses of $46.2 million decreased from the previous year by $1.5 million mainly in Marina Fund.
Due to an outside management firm taking over the operations and management of the Vallejo Municipal Marina starting FY 2021-22, the three full time equivalent employees previously funded by the Marina fund and the fund’s share of the pension and OPEB liabilities were eliminated during the current fiscal year.
12 The table below provides a visual representation of the net pro gram cost information for business-type activities for the year ended June 30, 2022. In these programs, annual surpluses or deficits are retained in the programs as an increase or decrease in the program’s net position.
Net Revenue (Expense) of Business-type Activities
As of June 30, 2022
(in millions)
Net Revenue
Program (Expense)
Expenses Revenues of Activities
Water (40.2)$ 52.6$ 12.4$
Marina (1.0) 1.6 0.6
Golf (4.2) 4.7 0.5
Vallejo Station Parking (0.5) 0.6 0.1 Fiber Optic (0.3) - (0.3) (46.2)$ 59.5$ 13.3$
In total, the program revenues for these business-type operatio ns were generally intended to cover operating, debt service, and capital reinvestment requirements. For the current year, Water operations contributed $12.4 million. The other business-type activities funds combined earned $0.9 million. Although each of these programs collected user fees, the fees did not fu lly cover their annual costs. The General Fund and State Lands Fund transferred a combined $0.8 million t o cover Marina Fund’s debt service payments.
Detailed analysis of each of the business-type operations are discussed in the Enterprise Funds section.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
In addition to the full accrual-basis government-wide statement s described above, the City also maintains financial records at the fund level for budgetary control. Individual funds are generally established to track the resources and operating results for specific, restricted pr ograms. The results for governmental funds below differ from the results reported above in the government- wide statements. Here, the focus is to provide information on near-term inflows, outflows, and balance s of spendable resources, which can be useful in assessing the City’s financing requirements. Specifi cally, unassigned fund balance can serve as an informative measure of a government’s net resources availabl e for discretionary use at the end of the fiscal year.
13 As of June 30, 2022, the City’s Governmental Funds reported com bined ending fund balances of $154.2 million, a $10.3 million increase in comparison with the prior year’s total ending fund balances.
The chart showing the components of City’s governmental total fund balance are presented below.
Nonspendable Fund Balance of $2. 1 million is consistent with pr ior year. These amounts are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of long-term receivables and prepaid expenses and deposits.
Restricted Fund Balance increased $4.8 million to $99.4 million . This consists of amounts with constraints put on their use by creditors, grantors, contributors, laws, regulations or enabling legislation.
Committed Fund Balance increased $5.0 million to $20.6 million. This includes amounts for specific purposes determined by the City Council, which are binding unless removed by the Council in the same manner.
Assigned Fund Balance decreased $1.0 million to $8.9 million. The City intends for these amounts to be used for a specific purpose, but they are neither restricted nor committed.
Unassigned Fund Balance increased $1.5 million to $23.2 million . This represents the residual balance of the City’s General Fund.
For more information on governmental fund balances, please refe r to Note 13 of the Basic Financial Statements.
Presented on the next pages are the major funds that either qua lified under the reporting criteria or were considered to be important to financial statement users. 14 GENERAL FUND
The City’s General Fund provides police, fire, community development, public works, and administrative services to the City’s 122,000 residents, other funds, businesses and visitors. The General Fund is distinct from other funds because it is the only source of unrestricted funds that can be allocated, at the discretion of the City Council, for any municipal purpose. For financial reporting purposes, the scope of General Fund balances and activities includes the City’s unrestricted Measure B and Contingency Reserve Funds.
During Fiscal Year 2021-22, the General Fund expended $91.2 mil lion in labor costs to provide these services, funding 507 authorized full-time equivalent positions . Labor costs comprised 73% of General Fund’s total expenditures and transfers out.
Current Year Increase in General Fund Revenues – The General Fund revenues including transfers improved substantially by $6.0 million, or 5%, from the prior f iscal year to $127.0 million. Of particular note were increases in grants from ARPA-funded projects, property tax from the strong real estate economy and sales tax specifically in the auto and transportation industry.
Current Year Increase in General Fund Expenditures
General Fund expenditures excluding transfers totaled $106.9 mi llion for FY 2021-22 compared to $103.9 million in the prior fiscal year. The increase was $3.0 million, or 3%, as a result of filling vacancies, negotiated wage increases and increased benefit costs. Transfers out to fund capital projects, debt service and city operations were $17.3 million compared to $5.1 million in the prior year.
Budgetary Highlights – During the year ended June 30, 2022, there was a $32.2 million increase in the budgeted revenues and transfers in between the FY 2021-22 origi nal budget and the final budget. The increase was generally in grant funds (ARPA) and sales tax. There was also a $25.0 million increase in the budgeted expenditures and transfers out. These amendments were mostly the ARPA appropriations and additional funding for salaries and city programs.
The fiscal year 2022 revenue collections and transfers in total ed $127.0 million , $25.0 million, or 16.5%, under the revised budget because most of the ARPA funds were un spent and therefore not recognized as revenues in the current year. On the expenditure side, all prog ram departments had operated within their approved expenditure budgets for the year. Total expenditure savings versus budget reached $11.1 million.
Half of the total expenditure savings were in Police department where savings of $5.8 million had been realized through staff vacancies. In addition, there was a $9.6 million budget savings in transfers out due to the delayed implementation of ARPA-funded projects. Overall, th e lower than expected revenues of $25.0 million and budget savings in expenditures and transfer out of $20.7 million resulted in net budget deficit of $4.3 million for the current fiscal year.
Fund balance –As of June 30, 2022, the General Fund reported a total fund b alance of $43.1 million, $2.7 million higher than prior fiscal year. Additions to the fund balance included the $ $1.6 million pension trust fund contribution reported as restricted investment rather than employer costs. Of the total fund balance, unassigned fund balan ce was $23.2 million which repres ents 18% of the subsequent year’s General Fund annual operating budget (including Measure B programs).
15 qThe chart below illustrates the changes in the components of the General Fund balance from June 30, 2021 to June 30, 2022.
OTHER MAJOR GOVERNMNENTAL FUNDS
Housing Authority Fund –The Fund received $21.3 million in federal HUD grant allocation s and other revenues during the year to support its $21.3 million Section 8 Housing Assistance Voucher Program expenditures. As of June 30, 2022, the Housing Authority Fund reported a combined fund balance of $16.6 million, consistent with prior fiscal year. Of the total fund balance, $14.5 million is restricted and committed. Most of these funds ar e invested in long-term loans and mortgages and are not anticipated to be collected within the next year.
Capital Outlay Fund – The total fund balance increased by $5.7 million to $18.8 mill ion; all is restricted and committed for current and future capital projects. During t he current fiscal year, the fund received additional funding of $13.3 million from fees and interfund transfers and incurred $7.6 million in capital project spending.
Mare Island Conversion Fund – As of June 30, 2022, this fu nd held $16.1 million of restrict ed federal funds to pay for the environmental remediation of the former Ma re Island Naval base. $2.6 million was expended during the year on this effort.
ENTERPRISE FUNDS
The City’s enterprise fund statements provide the same information found in the government-wide financial statements but in more detail.
16 As of June 30, 2022, total enterprise funds’ net position incre ased to $79.1 million, up $11.9 million from $67.2 million in the prior year. The significant changes by enterprise fund are discussed below:
Net Position by Fund
(in millions)
Increase
2022 2021 (Decrease)
Water 78.0 $ 68.1 $ 9.9 $
Marina 1.7 0.2 1.5
Golf (0.3) (0.7) 0.4
Vallejo Parking 0.0 (0.1) 0.1
Fiber (0.3) (0.3) -
Total 79.1$ 67.2$ 11.9$
Water – Total net position of the Water Fund on June 30, 2022 was up $9.9 million from the previous year to $78.0 million. The rate structures adopted in June 2017 and October 2019 continued to provide for user fee increases during the year to help generate sufficient reven ues to operate and maintain the Vallejo Municipal Water System in a fiscally sound manner.
Marina – Total net position of the Marin a Fund on June 30, 2022 increase d by $1.5 million from the previous year. This significant improvement is mainly due to the elimination of pension and OPEB liabilities and related accounts ($0.8 million) and transfer in from General Fund to cover the annual debt service payments ($0.7 million). The 3% annual CPI increases for berth rents and live aboard fees are projected to steadily improve the net position over the next se veral years. The City had also entered into a management agreement with F3 to improve both financial operations and customer service of the Vallejo Municipal Marina.
Golf – The total net position of the Golf Fund is negative $0.3 million, another improvement from the negative $0.7 million net position in previous year. The City is seeing positive results from hiring Touchstone Golf in 2018 to manage the golf operations. During t he current fiscal year, the Blue Rock Springs golf courses generated $4.7 million in user fees, which were used to cover its program costs and partially cure the fund’s negative net position. Also , t h e C i t y h a d e n t e r e d i n t o a n ENA (Exclusive Negotiating Agreement) with Greg Norman Company and the Lewis Group for the future revitalization and redevelopment of the Blue Rock Springs golf courses.
Vallejo Station Parking – The Vallejo Station Parking Fund’s revenues have slowly recovered from the COVD-19 pandemic, from $0.2 million in prior year to $0.6 milli on in total revenues this current year as commuter traffic returned to the Vallejo Waterfront. These reve nues were used to cover current year total expenses and prior year deficits.
Fiber Optic – In May 2017 in an effort to leverage City assets and promote economic development, the Fiber Optic Fund was established with a $0.8 million interfund loan from the General Fund for working capital. The initial project to construct and connect a physic al network was completed. However, infrastructure and marketing challenges have stalled the expected growth of service revenue. In November 2022, the City contracted Smart Fiber Networks Inc. to operate the City’s fiber network and service retail and residential customers within the City for a 60% Smart Fiber and 40% City revenue sharing arrangement.
17 CAPITAL ASSETS
The capital assets of the City are those assets that are used i n the performance of the City’s functions, including infrastructure assets. The following is a summary of these assets as of June 30, 2022 and 2021.
Capital Assets (net of depreciation)
(in millions)
Governmental activities Business-type activities Total Increase/ 2022 2021 2022 2021 2022 2021 (Decrease)
Land 144.9$ 145.8$ 12.4 $ 12.3$ 157.3$ 158.1$ (0.8)$ Building and improvement 68.8 73.5 27.0 27.8 95.8 101.3 (5.5) Machinery and equipment 16.7 17.9 10.4 11.8 27.1 29.7 (2.6) Infrastructure 106.0 102.5 48.5 49.1 154.5 151.6 2.9
Construction in progress 20.0 16.1 7.9 8.2 27.9 24.3 3.6 Total 356.4$ 355.8$ 106.2$ 109.2$ 462.6 $ 465.0$ (2.4)$
Governmental major capital asset events include construction in progress activities related to street improvements ($7.9million), acquisition of various vehicles ($1 .7 million) and transfer of the Empress Theater property to the City ($1.4 million). The City had also completed the Safe Routes to School (SR2S) Infrastructure and Capital Street Improvement projects during the fiscal year.
Business-type capital additions include equipment replacements and upgrades and the purchase of property adjacent to the Fleming Hill Water Treatment Plant ($0.7 millio n). The City had also put into service the FY 19-20 Water Mains Replacement Project ($1.5 million) during the fiscal year.
Overall, net capital assets decreased by $2.4 million during the year to $462.6 million on June 30, 2022 mainly due to depreciation. Further detail about the City’s cap ital assets can be found in Note 6 to the Financial Statements.
DEBT ADMINISTRATION
The following is a summary of the City’s long-term debt obligations as of June 30, 2022 and 2021.
Outstanding Debt
Long-Term Debt
(in millions)
Governmental activities Business-type activities Total Increase/ 2022 2021 2022 2021 2022 2021 (Decrease)
Certificates of Participation 2.1$ 2.3 $ -$ -$ 2.1 $ 2.3$ (0.2)$ Capital Lease Obligations - 3.2 0.5 - 3.7 (3.7) Financed Purchases 2.2 - - - 2.2 - 2.2 Revenue Bonds - - 78.9 83.5 78.9 83.5 (4.6) Lease Payables - - 0.2 - 0.2 - 0.2 Loans & Notes Payable 12.9 13.7 17.4 18.1 30.3 31.8 (1.5) Total $17.2 19.2$ 96.5$ 102.1$ 113.7$ 121.3$ (7.6)$
Annual Activity – The City’s total long-term debt obligations decreased by $7. 6 million as of June 30, 2022. The net decrease was primarily due to the sche duled debt service payments. Each of the City’s debt issues is discussed in detail in Notes 5 and 7 to the Financial Statements. 18 Bond Rating – On June 16, 2022, Standard & Poor’s raised its rating from ‘BBB’ to “A-“ for the 1999 Certificates of Participation. The City also maintains a Standard & Poor’s ‘AA’ rating for the Series of 2021A Water Revenue Refunding Bonds with a stable outlook. The credit report highlighted the City’s strong financial position during the past five fiscal years and the water system’s very strong enterprise and financial profiles respectively.
Net Debt - The percentage of net bonded debt to taxable property valuation, and the amount of bonded debt per capita, are useful indicators of the City’s net debt positi on to management, citizens, and investors. A comparison of these indicators follows. Per capita debt outstanding decreased to $923 as of June 30, 2022, from $1,030 in the prior fiscal year.
June 30, 2022 June 30, 2021
Net debt (in millions) $113.7 $121.3
Net debt per capita 923 1,030
Net debt per capita as a percentage
of per capita personal income 2.81% 3.30%
Net debt as a percentage of
net assessed value 0.95% 1.05%
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Economic Factors
Major tax revenues continue to modestly grow and have leveled out at their pre-pandemic levels with a V curve, supported by new federal and state grants. Due to surging inflation, a dramatic jump in the global price of crude oil and monetary tightening by the Federal Reserve, we are cautiously forecasting a slight increase in revenue in FY 2022-23. The economy and the City’s major initiatives for next year are discussed in detail in the accompanying Transmittal Letter.
Next Year’s Budget
The total of all funds revenue for Fiscal Year 2022-23 is budge ted at $279.0 million with General Fund revenues totaling $130.6 million. Due to strong real estate growth and positive forecast from sales tax, the City is anticipating a continuation of moderate growth for next year, supported by federal and state grants.
The City’s total expenditure budget for next year is $290.6 million of which $129.7 million is in the General Fund. The City is restoring service levels diminished during the COVID-19 pandemic, rebuilding reserves and working to implement postponed capital projects. The General Fund revenue budget provides $129.7 million to cover the expenditures; there is no shortfall forecasted for next year. The City continues to maintain General Fund reserves at least equal to 15% of Gene ral Fund expenditures to guard against a significant economic downturn, disaster or major unanticipated expense.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report (ACFR) is designed t o provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. For the convenience of the public, a copy of this report is posted on the City’s website (http://www.ci.vallejo.ca.us/city_hall/departments___divisions/finance). If you have questions about this report, separate reports of the City’s component units, or need any additional financial information, contact the Finance Department at 555 Santa Clara Street, Vallejo, California, 94590, phone 707-648-4592.
19 THIS PAGE INTENTIONALLY LEFT BLANK
20 CITY OF VALLEJO
STATEMENT OF NET POSITION
Component
Unit
Vallejo Flood and
Governmental Business-Type Wastewater
Activities Activities Total District
Assets:
Cash and investments (Note 2) 164,975,967 $ 49,256,678 $ 214,232,645 $ 45,442,426 $ Receivables:
Accounts 4,269,354 10,677,647 14,947,001 4,080,612 Notes and loans (Note 4) 30,999,647 3,535 31,003,182 265,529 Interest receivable 532,917 77,479 610,396 179,738 Grants - - - 337,973 Lease Receivable (Note 5) 13,044,830 - 13,044,830 267,988 Internal balances (Note 3b and Note 3c) 1,203,634 (1,203,634) - - Prepaids and deposits (Note 1g ) 375,997 566,870 942,867 808,795 Due from other governments 17,710,576 123,150 17,833,726 - Materials, parts and supplies (Note 1e) 218,188 741,684 959,872 377,319 Land held for redevelopment (Note 1f) 499,684 - 499,684 - Restricted assets:
Cash and investments (Note 2) 28,184,867 3,404 28,188,271 1,487,666 Cash with fiscal agent (Note 2) 263,681 48,603,093 48,866,774 - Capital assets not being depreciated (Note 6) 164,935,799 20,287,233 185,223,032 24,621,481 Capital assets, net of depreciation/ amortization (Note 6) 191,435,000 85,917,831 277,352,831 167,607,445 Total Assets 618,650,141 215,054,970 833,705,111 245,476,972 Deferred Outflows of Resources:
Related to pensions (Note 11) 28,678,559 3,994,698 32,673,257 5,466,629 Related to OPEB (Note 12) 2,782,661 690,339 3,473,000 4,321,920 Deferred charge on refunding (Note 7) - 1,361,486 1,361,486 820,379 Total Deferred Outflows
of Resources 31,461,220 6,046,523 37,507,743 10,608,928 Liabilities:
Accounts payable and accrued liabilities
10,270,958 2,412,033 12,682,991 2,800,900 Accrued interest 140,097 412,059 552,156 218,050 Unearned revenue 37,718,673 997,623 38,716,296 - Deposits payable 2,865,350 4,649,098 7,514,448 38,670 Due to other governments 109,727 - 109,727 - Employee benefits payable due within one year (Note 10) 7,346,465 1,022,956 8,369,421 821,338 Claims due within one year (Note 14) 6,072,448 - 6,072,448 - Long-term debt due within one year (Note 7) 1,585,848 5,226,979 6,812,827 2,580,596 Lease payable due within one year (Note 5) 14,948 178,690 193,638 102,064 Other current liabilities - - - 797 Noncurrent liabilities:
Employee benefits payable due in more than one year (Note 10) 4,162,084 540,680 4,702,764 1,232,007 Claims due in more than one year (Note 14) 19,136,552 - 19,136,552 - Long-term debt due in more than one year (Note 7) 15,550,583 91,101,557 106,652,140 27,237,564 Lease payable due in more than one year (Note 5) 11,463 50,311 61,774 261,774 Net pension liability due in more than one year (Note 11) 205,546,443 25,918,255 231,464,698 16,441,417 Net OPEB liability due in more than one year (Note 12) 8,458,982 1,877,018 10,336,000 11,256,411 Total Liabilities 318,990,621 134,387,259 453,377,880 62,991,588 Deferred Inflows of Resources:
Related to pensions (Note 11) 52,601,413 6,238,832 58,840,245 15,026,086 Related to OPEB (Note 12) 6,037,336 1,339,664 7,377,000 386,250 Related to leases 12,748,080 - 12,748,080 259,289 Total Deferred Inflows
of Resources 71,386,829 7,578,496 78,965,325 15,671,625 Net Position (Note 13):
Net investment in capital assets 339,879,627 61,267,522 401,147,149 162,867,307 Restricted for:
Capital projects
25,636,772 - 25,636,772 21,488,265 Debt service 263,681 27,454 291,135 1,487,666 Housing programs 26,964,448 - 26,964,448 - Mare Island programs 11,662,433 - 11,662,433 - Landscape maintenance district services 20,290,436 - 20,290,436 - Other special projects and programs 18,861,115 - 18,861,115 - Nonexpendable- McCune Endowment 64,625 - 64,625 Unrestricted (Deficit) (183,889,226) 17,840,762 (166,048,464) (8,420,551) Total Net Position 259,733,911$ 79,135,738$ 338,869,649$ 177,422,687$ JUNE 30, 2022
Primary Government
See Notes to Financial Statements.
21 CITY OF VALLEJO
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
Legislative and advisory 183,493$ 2,900$ -$ -$ Executive 5,936,409 - 109,420 - Finance 1,777,407 - 87,147 - Human resources 1,445,826 - 45,503 - Law 1,372,165 - - - Community development 31,285,761 3,549,223 29,398,581 - Planning and development services 3,155,793 3,948,302 - - Fire services 27,487,724 5,318,118 1,180,678 - Police services 40,952,101 4,179,058 506,574 - Public works 26,058,635 14,127,565 5,302,062 6,674,419 Interest on long-term debt 399,242 - - - Total Governmental Activities 140,054,556 31,125,166 36,629,965 6,674,419 Business-Type Activities:
Water Fund 40,229,658 50,302,893 1,858,177 342,192 Marina Fund 955,854 1,422,788 186,844 - Golf Fund 4,221,299 4,712,158 - - Vallejo Station Parking Fund 506,171 613,970 - - Fiber Optic Fund 314,970 24,972 - - Total Business-Type Activities 46,227,952 57,076,781 2,045,021 342,192 Total Primary Government 186,282,508$ 88,201,947$ 38,674,986$ 7,016,611$ Component Unit:
Vallejo Flood and Wastewater District 45,763,640$ 42,363,563$ -$ 2,219,516$ General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Utility users tax
Other taxes
Investment earnings
Other
Gain (loss) on sale of capital asset
Transfers (Note 3a)
Total General Revenues,
and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
22 Primary Government Component Unit
Vallejo Flood and
Governmental Business-Type Wastewater
Activities Activities Total District
(180,593)$ - $ ( 180,593)$ - $ (5,826,989) - (5, 826,989) - (1,690,260) - (1, 690,260) - (1,400,323) - (1, 400,323) - (1,372,165) - (1, 372,165) - 1,662,043 - 1, 662,043 - 792,509 - 792,509 - (20,988,928) - (20, 988,928) - (36,266,469) - (36, 266,469) - 45,411 - 45,411 - (399,242) - ( 399,242) - (65,625,006) - (65, 625,006) - - 12,273,604 12,273,604 - - 653,778 653,778 - - 490,859 490,859 - - 107,799 107,799 - - (289,998) (289,998) - - 13,236,042 13,236,042 - (65,625,006) 13,236,042 (52,388,964) - - - - (1,180,561) 36,314,741 - 36,314,741 1,363,915 2,053,577 - 2, 053,577 - 40,866,872 - 40,866,872 - 6,052,521 - 6, 052,521 - 13,322,651 - 13,322,651 - 8,796,608 - 8, 796,608 - (4,859,238) (2,504,761) (7,363,999) (624,765) 4,468,301 103,812 4,572,113 348,833 (1,232,481) - (1, 232,481) - (1,113,531) 1,113,531 - - 104,670,021 (1, 287,418) 103,382,603 1,087,983 39,045,015 11,948,624 50,993,639 (92, 578) 220,688,896 67,240,689 287,929,585 177,913,102 - (53,575) (53,575) (397,837) 259,733,911$ 79,135,738 $ 338,869,649$ 177,422,687 $ Net (Expenses) Revenues and Changes in Net Position
See Notes to Financial Statements.
23 THIS PAGE INTENTIONALLY LEFT BLANK
24 FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
The City reported four major governmental funds in fiscal year 2021-22. These major funds were presented in their respective columns and described in Note 1.d. The rema ining funds were combined into a column titled “Other Governmental Funds". Individual fund data for each of these non-major funds may be found in the Supplemental Information section.
25 CITY OF VALLEJO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue
Fund
General
Assets:
Cash and investments 46,103,704$ 5 ,078,923$ 1,300,320$ 20,099,514$ Receivables:
Accounts 3,246,185 56,102 - 65,886 Notes and loans 1,071,006 15,382,687 - - Accrued interest 474,832 117 11,900 1,533 Leases 6,639,359 - - 1,318,175 Prepaids and deposits 82,445 - - - Due from other governments 8,708,968 - - - Advances to other funds 680,000 - - - Materials, parts, and supplies 362 - - - Land held for redevelopment 499,684 - - - Restricted assets:
Cash and investments 12,468,113 428,295 15,288,459 - Cash and investments with fiscal agents - - - - Total Assets 79,974,658 $ 20,946,124$ 16,600,679$ 21,485,108$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities 5,667,751$ 140,304$ 520,858$ 1,406,321$ Unearned revenues 23,473,583 - 13,004,418 - Deposits payable 873,223 427,165 - - Due to other governments 75,760 - - - Due to other funds - - - - Total Liabilities 30,090,317 567,469 13,525,276 1,406,321 Deferred Inflows of Resources:
Unavailable revenues 272,141 3, 743,497 - - Deferred inflows for leases 6,480,754 - - 1,266,059 Total Deferred Inflows of Resources 6,752,895 3,743,497 - 1,266,059 Fund Balances (Note 13):
Nonspendable 2,063,533 - - - Restricted 12,874,568 12,506,337 3,075,403 3,800,911 Committed - 1,996,687 - 15,011,817 Assigned 5,021,176 2,132,134 - - Unassigned (Deficits) 23,172,169 - - - Total Fund Balances 43,131,446 16,635,158 3,075,403 18,812,728 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 79,974,658 $ 20,946,124$ 16,600,679$ 21,485,108$ Mare Island
Conversion #106
Capital Outlay
Fund #201
Housing
Authority
Capital Projects Funds
See Notes to Financial Statements.
26 CITY OF VALLEJO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Prepaids and deposits
Due from other governments
Advances to other funds
Materials, parts, and supplies
Land held for redevelopment
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Note 13):
Nonspendable
Restricted
Committed
Assigned
Unassigned (Deficits)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Other Total
Governmental Governmental
Funds Funds
62,477,442$ 135,059,903$
847,054 4,215,227
14,545,954 30,999,647
44,535 532,917
5,087,296 13,044,830
- 82,445
9,001,608 17,710,576
- 680,000
- 362
- 499,684
- 28,184,867
263,681 263,681
92,267,570$ 2 31,274,139$
1,958,912$ 9,694,146$
1,240,672 37,718,673
1,564,962 2,865,350
33,967 109,727
7,551,510 7,551,510
12,350,023 57,939,406
2,349,359 6,364,997
5,001,267 12,748,080
7,350,626 19,113,077
64,625 2,128,158
67,153,217 99,410,436
3,629,493 20,637,997
1,719,586 8,872,896
- 23,172,169
72,566,921 154,221,656
92,267,570$ 2 31,274,139$
See Notes to Financial Statements.
27 THIS PAGE INTENTIONALLY LEFT BLANK
28 CITY OF VALLEJO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balances of governmental funds 154,221,656$
Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 347,722,705
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Cash and investments 29,916,064$
Accounts receivable 54,127
Materials, parts, and supplies 217,826
Due from other funds 8,075,144
Prepaids 293,552
Capital assets 8,648,094
Accounts payable (576,812)
Claims payable (25,209,000)
Net pension liability and pension-related deferred outflows/inflows of resources (3,074,923) Net OPEB liability and OPEB-related deferred outflows/inflows of resources (11,713,657) Employee benefits payable (1,018,061) 5,612,354
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently 6,364,997 are taken into revenue in the Statement of Activities.
LONG-TERM LIABILITIES
The liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt (17,136,431)
Lease Payable (26,411)
Net pension liability and pension-related deferred outflows/inflows of resources (226,394,374) Interest payable (140,097)
Compensated absences (10,490,488)
Net Position of Governmental Activities 259,733,911$
See Notes to Financial Statements.
29 CITY OF VALLEJO
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special
Revenue Fund
General
Revenues:
Taxes 105,232,516$ - $ -$ -$
Licenses and permits 3,841,359 - - 276,684
Intergovernmental 7,427,920 21,274,404 2,523,288 - Charges
for services 9,569,847 - - -
Us
e of money and property (1,061,273) 28,094 (12,564) (36,920) Fines and forfeitures 991,048 - - -
C
ontributions - - - 2,347,413
Other 503,727 45,726 - 33,661
Total Revenues 126, 505,144 21,348,224 2,510,724 2,620,838 Expenditures:
Current:
Legislative and advisory 245,690 - - -
Ex
ecutive 4,345,600 - - -
Fi
nance 1,805,651 - - 16,126
Human resources 1,796,910 - - -
L
aw 1,699,110 - - -
C
ommunity development 1,207,594 21,301,752 2,634,791 - Plan
ning and development services 3,346,238 - - - Fi
re services 30,648,598 - - 100,340
Police services 47,569,422 - - -
Pu
blic works 6,998,395 - - 790,963
Non departmental 6,776,925 - - -
Capit
al outlay - - - 5,904,982
Debt service:
Principal retirement 285,041 - - 769,053
Lease payments 11,794 2,644 - 743
Interest and fiscal charges 118,451 16 - 5
Total Expenditures 106, 855,419 21,304,412 2,634,791 7,582,212 Excess (Deficiency) of Revenues
Over (Under) Expenditures 19,649,725 43,812 (124,067) (4,961,374) Other Financing Sources (Uses):
Transfers in (Note 3a) 447,104 140,000 - 10,646,133 Transfers out (Note 3a) (17,349,829) - - -
Total Other Financing Sources
(U ses) (16,902,725) 140,000 - 1 0,646,133 Net Change in Fund Balances 2, 747,000 183,812 (124,067) 5,684,759 Fund Balances, Beginning of Year 40,384,446 16,451,346 3,199,470 13,127,969 Fund Balances, End of Year 43,131,446$ 16,635,158$ 3,075,403$ 18,812,728$ Capital Projects Funds
Housing
Authority
Mare Island
Conversion
#106
Capital Outlay
Fund #201
See Notes to Financial Statements.
30 CITY OF VALLEJO
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Legislative and advisory
Executive
Finance
Human resources
Law
Community development
Planning and development services
Fire services
Police services
Public works
Non departmental
Capital outlay
Debt service:
Principal retirement
Lease payments
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in (Note 3a)
Transfers out (Note 3a)
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Other Total
Governmental Governmental
Funds Funds
4,453,578$ 109,686,094$
1,382,522 5,500,565
13,217,663 44,443,275
10,499,492 20,069,339
(923,883) (2,006,546)
34,223 1,025,271
12,221 2,359,634
413,035 996,149
29,088,851 182,073,781
- 245,690
- 4,345,600
- 1,821,777
- 1,796,910
- 1,699,110
4,253,035 29,397,172
286,097 3,632,335
2,344,591 33,093,529
1,005,414 48,574,836
9,803,683 17,593,041
- 6,776,925
9,581,401 15,486,383
947,173 2,001,267
- 15,181
222,865 341,337
28,444,259 166,821,093
644,592 15,252,688
3,898,137 15,131,374
(2,695,076) (20,044,905)
1,203,061 (4,913,531)
1,847,653 10,339,157
70,719,268 143,882,499
72,566,921$ 154,221,656$
See Notes to Financial Statements.
31 CITY OF VALLEJO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
Net change in fund balances - total governmental funds 10,339,157$ Amounts reported for governmental activities in the statement of activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
The capital outlay and other capital expenditures are therefore added back to fund balance 10,592,035 Depreciation and amortization expense is deducted from the fund balance (Depreciation expense is net of internal service fund depreciation of $1,711,524 which has already been allocated (8,701,860) to serviced funds)
Loss on disposal of capital assets (1,330,136)
LONG TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 2,001,268 Removal of finance purchase options 157,650
Loan cancellation 42,500
Interest accrued to principal is deducted from fund balance (1,343) Negative Interest is deducted from fund balance (96,673) Lease payable payments 15,180
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Interest payable 40,111
Unavailable revenue 225,629
Compensated absences 1,127,405
Net pension liability and pension-related deferred outflows/(inflows) of resources 18,937,066
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds 5,697,026 Change in Net Position of Governmental Activities 39,045,015$ See Notes to Financial Statements.
32 FUND FINANCIAL STATEMENTS
PROPRIETARY FUNDS
The City reported all enterprise funds as major funds in fiscal year 2021-22. These funds were presented in their respective columns and described in Note 1.d. All internal service funds were combined into a single, aggregated presentation. Individual fund data for each of the i nternal service funds may be found in the Supplemental Information section.
33 CITY OF VALLEJO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Assets:
Current:
Cash and investments 45,667,735$ 1,096,510 $ 2,415,006 $ -$ Receivables:
Accounts 10,613,083 35,256 2,190 27,118 Accrued interest 77,479 - - - Prepaid costs 437,218 1,514 120,138 - Due from other governments - 123,150 - - Due from other funds - - - - Materials, parts and supplies 626,746 28,807 86,131 - Total Current Assets 57,422,261 1,285,237 2,623,465 27,118 Noncurrent:
Restricted:
Cash and investments 3,404 - - - Cash with fiscal agent 48,603,093 - - - Notes and loans receivable 3,535 - - - Capital assets - net of accumulated depreciation/ amortization 89,056,284 12,089,002 4,120,576 600,457 Total Noncurrent Assets 137,666,316 12,089,002 4,120,576 600,457 Total Assets 195,088,577 13,374,239 6,744,041 627,575 Deferred Outflows of Resources:
Related to pensions 3,994,698 - - - Related to OPEB 690,339 - - - Unamortized loss on refunding of debt 1,361,486 - - - Total Deferred Outflows of Resources 6,046,523 - - - Liabilities:
Current:
Accounts payable and accrued liabilities 1,636,639 161,884 548,544 47,141 Accrued interest 378,743 22,883 10,433 - Unearned revenues 828,322 38,979 130,322 - Deposits payable 4,379,852 119,246 150,000 - Due to other funds - - - 523,634 Employee benefits payable 1,009,366 - - 13,590 Accrued claims and judgments - - - - Lease payable 4,115 - 174,575 - Bonds and notes payable 4,238,404 654,235 334,340 - Total Current Liabilities 12,475,441 997,227 1,348,214 584,365 Noncurrent:
Advances from other funds - - - - Employee benefits payable 533,354 - - 7,326 Accrued claims and judgments - - - - Net pension liability 25,918,255 - - - Net OPEB liability 1,877,018 - - - Lease payable 5,844 - 44,467 - Bonds and notes payable 74,708,573 10,724,745 5,668,239 - Total Noncurrent Liabilities 103,043,044 10,724,745 5,712,706 7,326 Total Liabilities 115,518,485 11,721,972 7,060,920 591,691 Deferred Inflows of Resources:
Related to pensions 6,238,832 - - - Related to OPEB 1,339,664 - - - Total Deferred Inflows of Resources 7,578,496 - - - Net Position (Deficits):
Net investment in capital assets 60,039,877 1,761,623 (1,473,180) 600,457 Restricted for debt service 27,454 - - - Unrestricted (Deficits) 17,970,788 (109,356) 1,156,301 (564,573) Total Net Position (Deficits) 78,038,119$ 1,652,267 $ (316,879) $ 35,884 $ Business-Type Activities - Enterprise Funds
Water Fund Marina Fund Golf Fund
Vallejo Station
Parking Fund
See Notes to Financial Statements.
34 CITY OF VALLEJO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Due from other governments
Due from other funds
Materials, parts and supplies
Total Current Assets
Noncurrent:
Restricted:
Cash and investments
Cash with fiscal agent
Notes and loans receivable
Capital assets - net of accumulated depreciation/ amortization Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Related to pensions
Related to OPEB
Unamortized loss on refunding of debt
Total Deferred Outflows of Resources
Liabilities:
Current:
Accounts payable and accrued liabilities
Accrued interest
Unearned revenues
Deposits payable
Due to other funds
Employee benefits payable
Accrued claims and judgments
Lease payable
Bonds and notes payable
Total Current Liabilities
Noncurrent:
Advances from other funds
Employee benefits payable
Accrued claims and judgments
Net pension liability
Net OPEB liability
Lease payable
Bonds and notes payable
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Related to pensions
Related to OPEB
Total Deferred Inflows of Resources
Net Position (Deficits):
Net investment in capital assets
Restricted for debt service
Unrestricted (Deficits)
Total Net Position (Deficits)
Governmental
Activities-
Internal
Totals Service Funds
77,427$ 49,256,678$ 29,916,064 $
- 10,677,647 54,127
- 77,479 -
8,000 566,870 293,552
- 123,150 -
- - 8,075,144 - 741,684 217,826 85,427 61,443,508 38,556,713
- 3,404 -
- 48,603,093 -
- 3,535 -
338,745 106,205,064 8,648,094
338,745 154,815,096 8,648,094
424,172 216,258,604 47,204,807
- 3,994,698 395,799
- 690,339 2,782,661 - 1,361,486 -
- 6,046,523 3,178,460 17,825 2,412,033 576,812
- 412,059 -
- 997,623 -
- 4,649,098 -
- 523,634 -
- 1,022,956 558,117
- - 6,072,448 - 178,690 -
- 5,226,979 -
17,825 15,423,072 7,207,377
680,000 680,000 -
- 540,680 459,944 - - 19,136,552 - 25,918,255 2,797,363 - 1,877,018 8,458,982 - 50,311 -
- 91,101,557 -
680,000 120,167,821 30,852,841
697,825 135,590,893 38,060,218
- 6,238,832 673,359
- 1,339,664 6,037,336 - 7,578,496 6,710,695 338,745 61,267,522 8,648,094
- 27,454 -
(612,398) 17,840,762 (3,035,740)
(273,653)$ 79,135,738 $ 5,612,354 $
Business-Type Activities -
Enterprise Funds
Fiber Optic
Fund
See Notes to Financial Statements.
35 CITY OF VALLEJO
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Operating Revenues:
Sales and service charges 50,302,893$ 1,394,316 $ 4,712,158 $ 613,970$ Miscellaneous 31,828 - - - Other 71,984 28,472 - - Total Operating Revenues 50,406,705 1,422,788 4,712,158 613,970 Operating Expenses:
General and administrative 10,004,089 23,311 1,804,021 148,710 Operations expenses 21,436,686 670,907 2,007,343 327,472 Insurance and claims - - - - Depreciation and amortization expense 4,830,343 58,802 293,449 29,989 Total Operating Expenses 36,271,118 753,020 4,104,813 506,171 Operating Income (Loss) 14,135,587 669,768 607,345 107,799 Nonoperating Revenues (Expenses):
Intergovernmental revenue 1,858,177 186,844 - - Intergovernmental expense (1,803,061) - - - Investment income (loss) (2,450,342) (27,168) (27,053) - Interest expense and fiscal charges (2,155,479) (202,834) (116,486) - Gain (loss) on disposal of capital assets - - - - Total Nonoperating
Revenues (Expenses) (4,550,705) (43,158) (143,539) - Income (Loss) Before Transfers and Contributions 9,584,882 626,610 463,806 107,799 Transfers in - 807,972 - - Transfers out - - - - Capital contributions 342,192 - - - Changes in Net Position 9,927,074 1,434,582 463,806 107,799 Net Position (Deficit):
Beginning of Year, as
previously reported 68,119,929 217,685 (735,994) (71,915) Restatements (8,884) - (44,691) - Beginning of Fiscal Year (Deficit), as restated 68,111,045 217,685 (780,685) (71,915) End of Fiscal Year (Deficit) 78,038,119$ 1,652,267 $ (316,879) $ 35,884 $ Business-Type Activities - Enterprise Funds
Water Fund Marina Fund Golf Fund
Vallejo Station
Parking Fund
See Notes to Financial Statements.
36 CITY OF VALLEJO
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Operating Revenues:
Sales and service charges
Miscellaneous
Other
Total Operating Revenues
Operating Expenses:
General and administrative
Operations expenses
Insurance and claims
Depreciation and amortization expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Intergovernmental revenue
Intergovernmental expense
Investment income (loss)
Interest expense and fiscal charges
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers and Contributions
Transfers in
Transfers out
Capital contributions
Changes in Net Position
Net Position (Deficit):
Beginning of Year, as
previously reported
Restatements
Beginning of Fiscal Year (Deficit), as restated
End of Fiscal Year (Deficit)
Governmental
Activities-
Internal
Totals Service Funds
24,972$ 57,048,309$ 19,292,949$
- 31,828 -
- 100,456 64,965
24,972 57,180,593 19,357,914
- 11,980,131 -
304,812 24,747,220 6,384,487
- - 8,608,705 10,158 5,222,741 1,711,524
314,970 41,950,092 16,704,716
(289,998) 15,230,501 2,653,198
- 2,045,021 -
- (1,803,061) -
(198) (2,504,761) (853,827)
- (2,474,799) -
- - 97,655 (198) (4,737,600) (756,172)
(290,196) 10,492,901 1,897,026
305,559 1,113,531 5,800,000
- - (2,000,000) - 342,192 -
15,363 11,948,624 5,697,026
(289,016) 67,240,689 (84,672)
- (53,575) -
(289,016) 67,187,114 (84,672)
(273,653)$ 79,135,738$ 5,612,354$
Business-Type Activities -
Enterprise Funds
Fiber Optic
Fund
See Notes to Financial Statements.
37 CITY OF VALLEJO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Receipts from customers 49,733,962$ 1,415,817$ 4,719,391$ 598,353$ Payments to suppliers (18,157,881) (1,624,593) (3,689,245) (651,317) Payments to or on behalf of employees (15,704,391) (23,958) - (174,149) Claims paid - - - - Net Cash Provided (Used) by Operating Activities 15,871,690 (232,734) 1,030,146 (227,113) Cash Flows from Non-Capital
Financing Activities:
Interfund receipts - 807,972 - 235,475 Interfund payments - - - - Net intergovernmental receipts 58,866 133,992 - - Net Cash Provided (Used) by
Non-Capital Financing Activities 58,866 941,964 - 235,475 Cash Flows from Capital
and Related Financing Activities:
Capital grants and contributions 342,192 - - - Acquisition of capital assets (2,185,102) (19,910) (179,882) (8,362) Principal payments on capital debt (4,088,404) (638,520) (326,184) - Principal paid on lease liability (4,104) - (169,932) - Interest paid on capital debt (2,439,939) (61,479) (37,312) - Proceeds on sale of capital assets - - - - Net Cash Provided (Used) by
Capital and Related Financing Activities (8,375,357) (719,909) (713,310) (8,362) Cash Flows from Investing Activities:
Investment income (losses) (2,527,821) (27,168) (27,053) - Net Cash Provided (Used) by
Investing Activities (2,527,821) (27,168) (27,053) - Net Increase (Decrease) in Cash
and Cash Equivalents 5,027,378 (37,847) 289,783 - Cash and Cash Equivalents at Beginning of Year 89,246,854 1,134,357 2,125,223 - Cash and Cash Equivalents at End of Year 94,274,232$ 1,096,510$ 2,415,006$ -$ Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) 14,135,587$ 669,768 $ 607,345 $ 107,799$ Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:
Depreciation and amortization 4,830,343 58,802 293,449 29,989 Changes in pension related items (1,599,616) (798,323) - (331,924) Changes in OPEB related items (595,908) (136,118) - (33,157) (Increase) decrease in accounts receivable, net (1,357,924) (10,000) 28,803 (15,617) (Increase) decrease in inventory and prepaids 114,355 (7,200) (17,045) 4,896 (364,687) (9,497) 139,164 10,686 Increase (decrease) in deposits payable 433,982 (2,084) (21,570) - Increase (decrease) in unearned revenue 251,199 5,113 - - Increase (decrease) in claims payable - - - - Increase (decrease) in employee benefits payable 24,359 (3,195) - 215 Total Adjustments 1,736,103 (902,502) 422,801 (334,912) Net Cash Provided (Used) by
Operating Activities 15,871,690$ (232,734)$ 1,030,146$ (227,113)$ Non-Cash Investing, Capital, and Financing Activities:
Accreted interest -$ 149,212$ 82,981$ -$ Amortization of bond premium 499,497 - - - Amortization of loss on refunding of debt (226,914) - - - Restatement due to GASB 87 Implementation - - (44,691) - Restatement due to removal of software lease and related asset (8,884) - - - Water Fund Marina Fund Golf Fund
Vallejo Station
Parking Fund
Increase (decrease) in accounts payable and other
accrued expenses
Business-Type Activities - Enterprise Funds
See Notes to Financial Statements.
38 CITY OF VALLEJO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Receipts from customers
Payments to suppliers
Payments to or on behalf of employees
Claims paid
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Interfund receipts
Interfund payments
Net intergovernmental receipts
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Capital grants and contributions
Acquisition of capital assets
Principal payments on capital debt
Principal paid on lease liability
Interest paid on capital debt
Proceeds on sale of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Investment income (losses)
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:
Depreciation and amortization
Changes in pension related items
Changes in OPEB related items
(Increase) decrease in accounts receivable, net
(Increase) decrease in inventory and prepaids
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in claims payable
Increase (decrease) in employee benefits payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:
Accreted interest
Amortization of bond premium
Amortization of loss on refunding of debt
Restatement due to GASB 87 Implementation
Restatement due to removal of software lease and related asset Increase (decrease) in accounts payable and other
accrued expenses
Business-Type
Activities -
Enterprise Funds
Governmental
Activities-
Internal
Totals Service Funds
24,972$ 56,492,495$ 94,771,329 $ (294,987) (24,418,023) (4,825,996) - (15,902,498) (79,910,852) - - (7,245,103) (270,015) 16,171,974 2,789,378
305,559 1,349,006 5,800,000 - - (5,182,239) - 192,858 -
305,559 1,541,864 617,761
- 342,192 -
(10,775) (2,404,031) (1,740,070) - (5,053,108) -
- (174,036) -
- (2,538,730) -
- - 104,898 (10,775) (9,827,713) (1,635,172) (198) (2,582,240) (853,827) (198) (2,582,240) (853,827) 24,571 5,303,885 918,140
52,856 92,559,290 28,997,924
77,427$ 97,863,175$ 29,916,064 $ (289,998)$ 15,230,501 $ 2,653,198$
10,158 5,222,741 1,711,524 - (2,729,863) 89,305 - (765,183) (2,445,817) - (1,354,738) (22,886) (8,000) 87,006 (72,462) 17,825 (206,509) 195,264
- 410,328 -
- 256,312 -
- - 513,000 - 21,379 168,252 19,983 941,473 136,180
(270,015)$ 16,171,974 $ 2,789,378 $
-$ 232,193$ - $
- 499,497 -
- (226,914) -
(44,691)
(8,884)
Fiber Optic Fund
See Notes to Financial Statements.
39 THIS PAGE INTENTIONALLY LEFT BLANK
40 FUND FINANCIAL STATEMENTS
FIDUCIARY FUNDS
The City has two types of fiduciary funds: the custodial funds and private purpose trust funds. The custodial funds were combined into a single column. Individual fund data of each of the custodial funds may be found in Supplemental Information section.
41 CITY OF VALLEJO
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Custodial
Funds
Assets:
Cash and investments 496,653$ 2,478,081$
Restricted cash and investments with fiscal agents 263,069 3,571,690 Capital assets:
Capital assets, not being depreciated 189,226 - Capital assets, net of accumulated depreciation 44,030 - Total Assets
992,978 6,049,771
Liabilities:
Accounts payable 1,117 4,565
Accrued interest 41,825 459,423
Long-term liabilities
Due in one year 255,000 845,000
Due in more than one year 6,216,392 11,450,000
Total Liabilities
6,514,334 12,758,988
Net Position (Deficit):
Restricted (Deficit) (5,521,356) (6,709,217)
Total Net Position (Deficit) (5,521,356)$ (6,709,217)$ Private-
Purpose Trust
Fund
Successor
Agency
See accompanying notes to financial statements.
42 CITY OF VALLEJO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2022
Additions:
Investment earnings (15,808)$ (108,637)$
Taxes 1,169,982 -
Collections for assessment districts - 2,209,972 Total Additions 1,154,174 2,101,335
Deductions:
Administrative expenses 148,751 62,844
Interest and fiscal charges 177,400 1,217,685 Depreciation expense 4,193 -
Contributions to City - 2,347,413 Total Deductions 330,344 3,627,942
Net Increase in Fiduciary Net Position 823,830 (1,526,607) Net Position (Deficit) - Beginning (6,345,186) (5,182,610) Net Position (Deficit) - Ending (5,521,356)$ (6,709,217)$ Custodial
Funds
Private-
Purpose Trust
Fund
Successor
Agency
See accompanying notes to financial statements.
43 THIS PAGE INTENTIONALLY LEFT BLANK
44 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies
a. Financial Reporting Entity
The City was incorporated in 1868 as a charter City, with a Cou ncil-Manager form of Government, and provides all municipal services, excluding garbage disposal and electricity.
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements . Each discretely presented component unit, on the other hand, is reported in a separate column in the basic financial statements to emphasize it is legally separate from the government.
The City’s component units are described below:
Housing Authority of the City of Vallejo (Blended Component Unit) Marine World Joint Powers Authority (Blended Component Unit) Parking Authority of the City of Vallejo (Blended Component Unit) Public Financing Authority of the City of Vallejo (Blended Component Unit) Empress Investment Fund, LLC (EIF) (Blended Component Unit) Vallejo Homeless Navigation Center JPA (Blended Component Unit) Vallejo Flood and Wastewater District (Discrete Component Unit) Vallejo Flood and Wastewater District Financing Corporation (Discrete Component Unit)
Additional financial information for each of these entities can be obtained from the Finance Department City of Vallejo, 555 Santa Clara Street, Vallejo, California 94590.
PRIMARY GOVERNMENT
The financial statements of the primary government of the City of Vallejo include the activities of the City as well as the Housing Autho rity of the City of Vallejo, the Marine World Joint Powers Authority, the Parking Authority of the City of Vallejo, the Public Financing Authority of the City of Vallejo, the Empress Investment Fund LLC, and the Vallejo Homeless Navigation Center JPA, all of which are controlled by and dependent on the City. While these are separate legal entities, their fin ancial activities are integral to those of the City. Their financial activities have been aggregated and merged (termed “blended”) with those of the primary government of the City in the accompanying financial statements.
Blended Component Units
The Housing Authority of the City of Vallejo -- was formed in June 1942 and is organized under the California Health and Safety Code. The obje ctives of the Housing Authority are to aid low-income families in obtaining d ecent, safe and sanitary housing through federal assistance programs and mortgage revenue bond programs. On February 1, 2012, the Housing Authority also elected to assume the responsibilities of the Housing Successor for the low/moderate income housing programs of the former Redevelopment Agency. The Housing Authority is governed by a Board of Commissioners composed of the City Council members and two tenants of the Hou sing Authority. The operations of the Housing Authority are reported in the Housing Authority Special Revenue Fund. Management of the City has operational responsibility for the Authority. 45 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Separate financial statements for the Housing Authority may be obtained by contacting the office of the Finance Director at 555 Santa Clara Street, Valle jo, California, 94590, phone 707-648-4592.
The Marine World Joint Powers Authority — was formed in October 1996, pursuant t o t h e J o i n t E x e r c i s e o f P o w e r s A c t o f t h e G o v e r n m e n t C o d e o f the State of California for the purpose of assuming ownership of the Marine World Africa USA theme park from the Marine World Foundation. The City Council is the governing body of the Marine World JPA. The City has full accountability for the Authority’s fiscal affairs. The Authority had no activity and had no assets or liabilities during the year ended June 30, 2022. The Authority does not issue separate financial statements.
The Parking Authority of the City of Vallejo — was formed in May 1975, pursuant to the provisions of California statutes. Operations of the Parking Authority began in May 1977, with the execution of a joint powers agreement with the City. The purpose of this agreement was to provide the acquisition, construction, financing and ope ration of parking facilities in the downtown area of the City. The City Council is the governing board of the Parking Authority. The City has full accountability for the Aut hority’s fiscal affairs. The Authority’s parcels of land had a carrying value of $72,800 as of June 30, 2022. The Authority is inactive and had no activity during the year ended June 30, 2022. The Authority does not issue separate financial statements.
The Public Financing Authority of the City of Vallejo — was formed in July 1990. The primary purpose of the Financing Authority is to provide financ ing for City projects. The City Council is the governing board of the Financing Authority. The City has full accountability for the Authority’s fiscal affairs. The activiti es of the Authority are blended with the Certificates of Participation Debt Service Fund, Marina Enterprise Fund, Golf Enterprise Fund and fiduciary funds. The Authority does no t issue separate financial statements.
The Empress Investment Fund, LLC (EIF) — is a limited liability corporation formed in 2007 to leverage New Market Tax Credits as a source of additional private investment in the historic Empress Theater ( Theater). After seven years, i n October 2014, the tax credit program matured and the private in vestor exercised its put option which transferred ownership of the EIF to the Successor Agency. Upon dissolution of the EIF in 2015, the Successor Agency became the holder of the EIF’s assets by operation of law. In 2017, ownership of the EIF was transferred by the Successor Agency to the City and the City assumed the EIF’s obligations under the Triad Note.
The Empress Theater is owned, leased, and operated through a se ries of limited liability corporations. Through the EIF, the City holds 100% ownership of the Empress Theater Master Tenant, LLC (ETMT), which in turn holds a 49% ownership position in Empress Theater Assoc iates, LLC, (ETA). ETA holds title to the Empress Theater property.
On December 21, 2020, the City Council approved a Master Agreement and other related agreements and documents to unwind the existing financing struc ture and transfer ownership of the Empress Theater to the City of Vallejo. As of June 30, 2022, the City had completed its acquisition of the Theater and all the entities involved in the New Market Tax financing had been dissolved.
46 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Vallejo Homeless Navigation Center Joint Powers Authority (JPA) — is a joint powers authority formed in 2020 under Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with section 6500) in order to provide the City’s homeless population with access to vital services. This center will also provide the City’s homeless population, with temporary housing at a navigation center, which will include an opportunity to be connected to permanent housing, jobs and an income so that they may become self-sufficient. The Authority does not issue separate financial statements.
DISCRETELY PRESENTED COMPONENT UNITS
Vallejo Flood and Wastewater District (VFWD) — was created by an act of the California legislature and began operations in April 1952 as the Vallejo Sanitation and Flood Control District (VSFCD). VSFCD changed its name to the Vallejo Flood a nd Wastewater District during fiscal year 2018. The purpose of the Act was to give autonomous authority to VFWD to provide for the collection, treatment and disposal of wastewater and to control and dispose of storm waters. From 1993 to 1999 VFWD was part of the City’s operations.
Commencing July 1, 1999 the VFWD became a separate district from the City. The Board now consists of the seven elected City Council members and one member appointed by the Solano County Board of Supervisors. Although the City Council exercises control over the Board of VFWD, there is no operational responsibility or financ ial benefit or burden relationship with the primary government.
Separate financial statements for VFWD may be obtained by contacting 450 Ryder Street, Vallejo, California 94590.
Vallejo Flood and Wastewater District Financing Corporation (VF WDFC) — is a non-profit public benefit corporation organized in July 1993 as the Vallejo Sanitation and Flood Control District Financing Corporation (VSFCDFC) and was renamed to the Vallejo Flood and Wastewater District Financing Corporation in March 20 18. The VFWDFC was organized under the laws of the State of California for the purpose of assisting the VFWD in funding certain projects and other matters relating to the p urpose of VFWD. Members of the Board for VFWD serve as Directors of the VFWDFC. The act ivities of the VFWDFC are blended with the VFWD and separate financial statements are not prepared for the VFWDFC.
b. Basis of Presentation
These Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America as applied t o governmental agencies. The Governmental Accounting Standards Board is the ac knowledged standard setting body for establishing accounting and financial reportin g standards followed by governmental entities in the United States of America.
The City’s financial position and results of operations are presented from two perspectives in the following two sets of financial statements:
Government-wide Statements: The government-wide financial statements, including the Statement of Net Position and the Statement of Activities, report the financial activities of the primary government (the
City) and its blended and discre tely presented component units.
47 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separatel y from business-type activities, which rely to a significant extent on fees and charges for support. Fiduciary activities of the City, which are custodial in nature, are not included in these statements and are presented separately. Eliminations have been made to minimize the double counting of internal activities. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental and business-type activities.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City. Direct expenses are tho se that are specifically associated with a program or function. Certain indirect costs are included in program expenses reported for individual functions and activities. Prog ram revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) operating grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) capital fees, grants and contr ibutions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues are presented as general revenue s.
The City may pay for its programs with a combination of cost-re imbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, follow ed by general revenues if necessary.
Fund Financial Statements: In addition to the government-wide statements described above, the City also presents Fund Financial Statements. The accounts of the City are organized on the basis of funds. A fund is a separate accounting entity with a self-balancing set of accounts. Each fund is established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations.
The City accounts for its operations in governmental, proprietary and fiduciary funds, which include the following categories:
Governmental Funds:
General Fund – To account for resources traditionally associated with general government operations of the City , including Measure B Transaction tax and the related expenditures, and pre-1990 Successor Agency loans and t he related revenues, that are not required legally or by sound financial management to be accounted for in another fund.
Special Revenue Funds – To account for the proceeds of specific revenue sources that are legally restricted to be expended for specified purposes.
Debt Service Funds – To account for the servicing of long-term debt not being financed by business-type funds.
Capital Projects Funds – To account for capital outlays includi ng the acquisition and construction of capital improvements.
Permanent Funds – To account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s progr ams — that is, for the benefit of the government or its citizenry.
48 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary Funds:
Enterprise Funds – To account for operations that are financed substantially through user fees and are operated in a manner similar to private business enterprises.
Internal Service Funds – To account for the financing of goods and services provided by one City department to other departments on a cost reimbursement basis.
Fiduciary Funds:
Custodial Funds – To report fiduciary activities that are not held in a trust or equivalent arrangement.
Private – Purpose Trust Funds – To report trust arrangements un der which principal and income benefit other governmental entities.
The financial activities of these funds are excluded from the g overnment-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
c. Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full acc rual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental Funds: Governmental funds are used to report the majority of the City’s programs. These funds are reported in the Fund Financial Statements on the modified accrual basis of accounting, with a focus on current financial resources. This basis differs from the accrual basis of accounting used to report the government-wide financial statements and proprietary and fiduciary fund financial statements.
Revenues are recognized when measurable and available. The City considers revenues reported in the governmental funds to be available if the reven ues are collected within ninety days after year-end. This period is extended to one year for grant programs.
Revenues susceptible to accrual include taxes, intergovernmenta l revenues, charges for services and interest revenue. Non-exchange transactions, i n which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirem ents have been satisfied.
Expenditures are recorded when the related fund liability is in curred, except for principal and interest on general long-term debt, compensated absences and claims payable, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leas es are reported as other financing sources.
49 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary Funds: The proprietary funds of the City are reported on the accrual basis of accounting in the Fund Financial Statements. Operating revenues in the proprietary funds are those revenues that are generated from the primary operatio ns of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the funds. All other expenses are reported as non-operating expenses.
d. Major Funds
The Fund Financial Statements focus on the individual major funds of the City, each of which is displayed in a separate column, and the aggregate of remaining funds, which are labeled as non-major funds. Major funds are defined as funds with assets and deferred outflows of resources , liabilities and deferred inflow s of resources, revenues, expenditures, or expenses equal to ten percent of their fund-type total, and five percent of the grand total, or other funds of reporting significance.
The City reports the following major governmental funds in the accompanying Fund Financial Statements:
General Fund – This 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.
Housing Authority Special Revenue Fund – is used to account for monies received and expended on housing assistance to low and moderate income families and the assets and liabilities assumed from the Housing Fund of the Former Red evelopment Agency upon the dissolution as of February 1, 2012. Funds are provided by receipts from the Federal Section 8 Housing and Urban Development (HUD) programs.
Mare Island Conversion Capital Projects Fund – accounts for monies received from federal grants which are used for activities relating to the conversion of the Mare Island Naval Shipyard to civilian use.
Capital Outlay Capital Projects Fund – accounts for all capital projects, including acquisitions and improvements of public property, public works projects, facilities, equipment and systems, except those required to be accounted for in another fund.
The City reports all its enterprise funds as major funds in the accompanying Fund Financial Statements:
Water Fund – is used to account for the production and distribution of water to residents and businesses located within the City. Water service is also p rovided to Lakes District and Travis Air Force Base custom ers outside the City limits.
Marina Fund – is used to account for the operations, improvement and manageme nt of the City marina operations.
Golf
Fund – is used to account for the capital assets of the City’s munic ipal golf course and the course operator’s pass-through revenues that service the City debt used to acquire and improve the assets of the fund.
Vallejo Station Parking Fund – is used to account for the operations, maintenance and management of the Vallejo Station Parking Structure.
50 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Fiber Optic Fund – is used to account for the operations, maintenance, and distr ibution of bandwidth and retail internet services throughout the City’s fiber optic network.
The City also reports the following fund types:
Internal Service Funds: These funds account for fleet maintenance and replacement, workers' compensation and general liability self-insurance prog rams, payroll and retiree health benefits, all of which are provided to other departments on a cost- reimbursement basis. Revenues are recognized based on cycle billings rendered to customers.
Fiduciary Funds: Trust funds account for assets held by the City as an agent for various functions. Custodial funds are used to account for asse ts held by the City as a fiduciary for the bondholders of the improvement and assessment land-based debt districts within the City. The Successor Agency to the Redevelo pment Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future.
e. Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, cash equivalents a re defined as cash and investments which are considered to be liquid assets for purposes of measuring cash flows.
Cash and investment of all funds are pooled with the City’s pooled cash and investments, and are considered cash and cash equivalents because the pool i s used essentially as a demand deposit account from the standpoint of the funds. Investments are recorded at fair value; changes in fair value are included with investment incom e in the operating statements.
f. Materials, Parts, and Supplies
City materials, parts and supplies are held for consumption and are valued at average cost. Enterprise fund supplies consist of materials and supplie s which are held for future use. General Fund supplies are recorded as an expenditur e at the time individual supply items are consumed.
VFWD supplies inventories are valued at cost and follow a first -in-first-out (FIFO) flow.
This flow approximates market be cause ending inventory consists of the most recent items purchased. Inventories are recorded as expenses when consumed rather than when purchased.
g. Land Held for Redevelopment
Land held for redevelopment is stated at the lower of historical cost or net realizable value, if estimable. Net realizable value equals the agreed-upon sales price when a disposition agreement has been reached with a developer.
h. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and f und financial statements. The cost of prepaid it ems is recorded as expenditur es/expenses when consumed rather than when purchased.
51 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
i. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate finan cial statement element, deferred outflows of resources , represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three types of items that qualify for reporting in this category. An unamortized loss on refunding of debt results from the difference in the carrying value of refunded debt and its reacquisition price . This amount is deferred and amortized over the shorter of the life of the refunded or r efunding debt. The City also has deferred outflows and inflows of resources related to pensions and OPEB as discussed in Note 11 and 12, respectively.
In addition to liabilities, the statement of net position or ba lance sheet reports a separate section for deferred inflows of resources. This separa te financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of item, which arises only und er the modified accrual basis of accounting that qualifie s for reporting in this catego ry. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from accounts receivable, inter-agency reimbursements, and interest from notes and loans receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also has three items, which arise only unde r the full-accrual basis of accounting that are reported in t his category, which are deferr ed inflows of resources related to leases, pensions and OPEB as discussed in Notes 5, 11 and 12, respectively.
j. Property Tax Revenues
Solano County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handle s all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. Property tax revenues a re recognized by the City in the fiscal year they are assessed, provided they become avai lable as defined above.
Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on January 1. It becomes delinquent after Decem ber 10 and April 10, respectively. Unsecured property tax is due on July 1, and bec omes delinquent on August 31. The term “unsecured” refers to taxes on personal pro perty other than real estate, land and buildings. These taxes are secured by liens on the property being taxed.
k. Estimates and Assumptions
The preparation of financial st atements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and ass umptions that affect the reported amounts of assets and liabilities and disclosure o f contingent assets and liabilities at the date of the financial statements and the rep orted amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
52 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
l. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The City categorizes its fair value measurements within the fai r value hierarchy established by generally accepted accounting principles. The fa ir value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair valu e are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included w ithin level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
m. Leases
Lessee: The City is a lessee for noncancellable leases of equip ment. The City recognizes a lease liability and an intangible right -to-use lease asset (lease asset) in the financial statements. The Ci ty recognizes lease liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus ce rtain initial direct costs. Subsequently, the right-to-use lease asset is amortized on a straight-line basis over the shorter of the lease term or its useful life.
Key estimates and judgments related to leases include how the C ity determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the d iscount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease . Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. 53 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Right-to-use lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor: The City is a lessor for a noncancellable leases of var ious City facilities. The City recognizes a lease receivable and a deferred inflow of resources in the financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the le ase term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of r esources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
n. New Accounting Pronouncement
For 2022, the City and VFWD implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. GASB Statement No. 87 enhances the relevance and consistency of information of the government’s leasing activities. It establishes requirements for lease accounting based on the principle that leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. These changes were incorporated in the City and VFWD 2022 financial statements and had an effect on the beginning net position, wit h VFWD implementing in fiscal year 2020-21.
The implementation of GASB Statement No. 87 had the following effect on net position as reported June 30, 2022:
City
Golf Fund
Fund Balances (Deficit), Beginning of Year (735,994) $
Capital Assets removed, net of accumulated depreciation (446,907 ) Capital Leases obligations removed 402,216
Fund Balances (Deficit), Beginning of Year, as Restated (780,685)$ VFWD
Net Position, Beginning of Year, June 30, 2021 173,207,342 $ Capital Assets added, net of amortization 1,710,333
Related party prepaid lease (1,356,159)
Lease liablity (345,896)
Net Position, Beginning of Year, as Restated, June 30, 2021 173,215,620$
See Note 13 for additional information on additional restatements of net position. 54 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
o. Budgeting Procedures
The City follows these procedur es in establishing the budgetary data reflected in the financial statements:
The City Charter requires the City Manager to submit to the Cit y Council a proposed operating budget by May 16 for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the financi ng sources for all funds.
Public hearings are conducted to obtain taxpayer comments. The budget is legally enacted through passage of a resolution. All appropriations lapse at fiscal year-end, except capital appropriations which remain in effect until the project is completed or modified.
Level of Budgetary Control - Budgetary control is established at the following levels:
a) General Fund – Department level; b) Other Funds – Fund level . The City Manager may authorize line item budget transfers within a General Fund department, or within a fund other than the General Fund.
Capital Projects Funds - The City does not adopt annual budgets for its Capital Projects Funds. Capital Project budgets and funding are approved by the City Council as a multi-year budget on a project-by-project basis to cover the to tal estimated costs of all phases of specific projects that spans over several fiscal years.
Budget Amendments - City Council au thorization is required to t ransfer appropriations between General Fund departments, or between funds. City Council authorization is also required to establish or amend capital project budgets. The Budget may be amended at such times as the City Council may deem necessary, in accord ance with the requirements and procedures contained in the City Charter and M unicipal Code.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles.
Expenditures in Excess of Budget
The following funds had fund expenditures in excess of budget as follows:
Emergency Disaster Fund $2,013,410
State Land Fund $43,788
The excess expenditures were covered by grants and leases received during the fiscal year.
Note 2: Cash and Investments
a. Administration
Investments are administered separately by the City and by its blended component unit, the Housing Authority of the City of Vallejo, and by the discrete component unit, the VFWD. The respective cash and investment positions as of June 30, 2022 for each of these legal entities is as follows:
Component
City Housing Fiduciary Funds Subtotal Unit Total
Cash on Hand 8,500 $ 450 $ - $ 8,950$ 14,050 $ 23,000 $ Deposits (Overdraft) 49,729,065 5,078,473 - 54,807,538 1,104,658 55,912,196 Investments 236,471,202 - 6,809,493 243,280,695 45,811,384 289,092,079 286,208,767$ 5,078,923 $ 6,809,493 $ 298,097,183 $ 46,930,092 345,027,275 $ Primary Government
55 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
b. Classification
Cash and investments are classified in the financial statements as shown below:
46,103,704$
163,050,018
209,153,722$
5,078,923
214,232,645
76,626,750
428,295
77,055,045
291,287,690
45,442,426
1,487,666
46,930,092
2,478,081
3,571,690
6,049,771
496,653
263,069
759,722
6,809,493
345,027,275$
1 These balances are available for operations of the City's various programs and funds subject to their respective grant, fee, assessment, contract, or other restrictions. 2 These balances are held by the City or third party fiscal agents pursuant to debt covenants or other agreements.
3 These balances are held by third party fiscal agents pursuant to debt covenants or other agreements.
Successor Agency to the Redevelopment Agency
Private-Purpose Trust Fund
Cash and Investments
Restricted Investments (held by fiscal agents)
Subtotal Fiduciary Funds Cash and Investments
Total Cash and Investments
Total, Successor Agency to the Redevelopment Agency
Private-Purpose Trust Fund
Custodial Funds
Restricted Investments (held by fiscal agents)
Total Custodial Funds
Total, City
Cash and Investments:1
Restricted Cash and Investments (held by fiscal agents):2 Subtotal Primary Government Cash and Investments
Reported on the Statement of Fiduciary Net Position
Restricted Cash and Investments (held by fiscal agents):3 Subtotal Component Unit Cash and Investments
Cash and Investments
Discrete Component Unit (VFWD):
Cash and Investments
City
Housing Authority
Reported on the Statement of Net
Primary
City
Housing Authority
General Fund, including Measure B
Other Funds
56 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
c. Policies
The City’s dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools idle cash from all sources and all funds, except Cash with Fiscal Agents, Housing Authority, and the VFWD, so that it can be invested to achieve a reasonable rate of return, consistent with safety and liquidity.
Cash receipts and disbursements, including payroll, are processed by City staff which administers activities for the following separate legal entities: the City, the Successor Agency to the Redevelopment Agency, the Housing Authority, and the Vallejo Homeless Navigation Center.
These cash transactions are recorded in the City’s main checking account with transactions allocated to each applicable general ledger fund of the City and its blended component units pending periodic reimbursement and settlement of inter-agency b alances. As of June 30, 2022, the City held balances of cash for each of the a bove entities representing their equity in the City’s checking account.
Investment income is allocated among funds on the basis of aver age month-end cash and investment balances in these funds.
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on de posit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits.
Under California Law this collateral is held in a separate inve stment pool by another institution in the City’s name and places the City ahead of gen eral creditors of the institution.
The City invests in individual investments and in investment po ols. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form.
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of i ts investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Cash and cash equivalents, includi ng restricted cash, are consi dered to be liquid assets for purpose of measuring cash flows.
d. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s Investment Policies and the California Government Co de permit the following investments, provided the credit ratings of the issuers are acc eptable and approved percentages and maturities are not exceeded. The tables below also identify certain provisions of the California Gov ernment Code, or Investment Pol icies if more restrictive, that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements, rather than the general provisio ns of the California Government Code or investment policies.
57 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
City and Housing Authority
The City’s investment policy and the California Government Code allow the City and the Housing Authority to invest in the following investments:
Maximum
Maturity
Minimum Credit
Quality
Maximum in
Portfolio
Maximum
Investment in
One Issuer
5 Years No Limit No Limit No Limit
5 Years No Limit 50% 30%
N/A No Limit 20% No Limit
180 Days A-1 40% 5%
270 Days Highest Rating 40% 5%
5 Years A 30% 5%
5 Years No Limit 20% No Limit
5 Years A 30% 5%
On Demand No Limit
Up To Statutory
Limits No Limit
5 Years A 10% 5%
4 Years Highest Rating 10% 5%
4 Years Highest Rating 10% 5%
5 Years AA 20% 5%
5 Years AA 20% 5%
On Demand No Limit No Limit No Limit
5 Years A 10% 5%
Supranationals 5 years AA 30% 10%
Mutual Funds
U.S. Government Treasury Bills, Bonds and Notes
U.S. Government Agencies and Government
Sponsored Enterprises
Authorized Investment Type
Repurchase Agreements
Bankers Acceptances
Commercial Paper
Corporate Medium Term Notes
Certificates of Deposit
Negotiable Certificates of Deposit
Local Agency Investment Fund State Pool
State of California or Local Agency Bonds
Money Market Mutual Funds
Asset Backed Securities
Mortgage Backed Securities or Collateralized
Mortgage Obligations
Local Government Investment Pools
Municipal Bonds of Other States
VFWD
VFWD’s investment policy and the California Government Code allow the VFWD to invest in the following investments:
Limits
20%
30%
None
None
20%
None
30%
40%
25%
None
30%
Asset Backed Securities 20%
Supranationals 30%
Municipal Securities
Authorized Investment Type
Government Agency Obligations (callable)
Medium Term Corporate Notes, Rate A or better
Certificates of Deposit - Non-negotiable
California Local Agency Investment Fund
Shares in Beneficial Interest Money Market Funds, two highest ratings United States Treasury Securities
Certificates of Deposit - Non-negotiable
Bankers' Acceptances
Commerical Paper of "Prime" Quality
Repurchase Agreements
58 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
e. Public Agencies Post-Employment Trust
On August 22, 2017, the City Council adopted resolution 17-094 N.C. approving the adoption of the Public Agencies Post-Employment Trust administe red by Public Agency Retirement Services (PARS). The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in m itigating the CalPERS contribution rate volatility. Investments of funds held in Trus t are governed by the Investment Guideline Document f or the investment account and by the agreement for administrative services with PARS, rather than the general prov isions of the California Government Code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to main tain oversight of the investment management, control on target yield and the portfoli o’s risk tolerance, under the Moderate HighMark PLUS Mutual Fund investment option. The a ssets in the Trust will eventually be used to fund pension plan obligations.
f. Investments Authorized by Debt Agreements
The City and VFWD must maintain required amounts of cash and in vestments with trustees or fiscal agents under the terms of certain debt issue s. These funds are unexpended bond proceeds or are pledged reserves to be used if these entities fail to meet their obligations under these debt issues. The California Government Code requires these funds to be invested in acc ordance with resolutions, bond indentures or State statutes. The table below identifies, by entity, the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements.
City Debt Agreements
Maximum Maturity
Minimum Credit
Quality Maximum in Portfolio
Maximum Inv estment
in One Issuer
No Limit No Limit No Limit No Limit
No Limit Two Highest Ratings No Limit 10%
No Limit Prime-1/AA-m No Limit No Limit
360 Days Highest Rating No Limit No Limit
No Limit No Limit No Limit No Limit
No Limit A-1 No Limit No Limit
180 Days Two Highest Ratings No Limit No Limit
270 Days A-1+ No Limit No Limit
180 Days A No Limit No Limit
No Limit Two Highest Ratings No Limit No Limit
No Limit Three Highest Ratings No Limit No Limit
No Limit Two Highest Ratings No Limit No Limit
No Limit No Limit No Limit No Limit
No Limit No Limit No Limit No Limit
No Limit A-1 No Limit No Limit
Tax-Exempt Obligations
Insured FDIC Deposits
Interest-Bearing & Time Deposits - Banks or Savings
and Loans or Mutual Savings Banks
Bankers Acceptances
Commercial Paper
Repurchase Agreements
U.S. Treasury Obligations
U.S. Government Agency Obligation
Authorized Investment Type
Money Market Funds
Government Money Market Funds
State (or Municipality) Bonds/Notes
Local Agency Investment Fund
Local Government Investment Pools
Taxable Bonds
Rated Investment Agreements and Contracts
g. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasin g a combination of shorter
59 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturit y evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of these investments (including investments held by bond trustees) to market interes t rate fluctuations is provided by the following tables that show the distribution of these investments by maturity date or earliest call date at June 30, 2022.
City and Housing Authority
Less than 1
Year 1 -3 Years 3 - 5 Years Total
1,498,586$ 18,599,326 $ 5,531,648 $ 25,629,560 $ - 5,590,407 5,298,527 10, 888,934 1,226,522 13,146,321 7,559,756 21, 932,599 - 14,246,463 14,616,866 28,863,329 72,193,482 - - 72, 193,482 2,320,176 - - 2, 320,176 994,510 - - 994,510 12,468,113 - - 12, 468,113 67,989,992 - - 67, 989,992 158,691,381$ 51,582,517 $ 33,006,797 $ 243,280,695 $ Held by the City and its Blended Component Units:
Inv estment Type
PARS Pension Trust - HighMark PLUS Mutual Fund
Money Market Mutual Funds
California Local Agency Investment Fund
U.S. Treasury Notes
Corporate Medium Term Notes
Asset Backed Securities
U.S. Government Agencies
Money Market Mutual Funds
Total Investments
Held by Fiscal Agents:
Negotiable CD
VFWD
Less than 1
Year 1 -5 Years Total
272,979$ 2,247,609 $ 2,520,588 $
US Treasury 250,123 3,765,767 4,015,890
- 842,349 842,349
- 477,651 477,651
656,034 1,491,172 2,147,206
- 99,727 99,727
34,187,958 - 34,187,958
Money Market Mutual Funds 32,349 - 32,349 1,487,666 - 1,487,666
36,887,109$ 8,924,275$ 45,811,384$ Total Investments Inv estment Type
Money Market Mutual Funds
Held by Trustee:
California Local Agency Inv estment Fund
Medium Term Corporate Notes
Supranationals
Asset Backed Securities
Government Agency Obligations
Collateralized Mortage Obligation
60 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
Local Agency Investment Fund
The City and the VFWD are participants in the Local Agency Inve stment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, whic h are recorded on an amortized cost basis, however, each account is limited to fifte en transactions per month.
Included in LAIF’s investment portfolio are collateralized mort gage obligations, mortgage-backed securities, other asset-backed securities, loan s to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations.
h. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of June 30, 2022 for the City and Housing Authority by investment type as provided by Moody’s investment rating system.
City and Housing Authority
Aaa AA1 to AA3 A1 to A3 Total
25,629,560$ -$ -$ 25,629,560$ 10,888,934 - - 10,888,934 624,689 1,856,148 19,451,762 21,932,599 2,320,176 - - 2,320,176 67,989,992 - - 67,989,992 107,453,351$ 1,856,148$ 19,451,762$ 128,761,261
28,863,329
994,510
72,193,482
PARS Pension Trust - HighMark PLUS Mutual Fund 12,468,113 243,280,695$
California Local Agency Investment Fund
Corporate Medium Term Notes
Money Market Mutual Funds
Held by Fiscal Agents:
Money Market Mutual Funds
Total Rated Investments
Total Investments
Exempt:
U.S. Treasury Notes
Non-Rated:
Negotiable CD
Held by the City and its Blended Component Units:
Investment Type
U.S. Government Agencies
Non-Callable
Asset Backed Securities
61 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
VFWD
Presented below is the actual rating as of June 30, 2022 for the VFWD by investment type as provided by Standard and Poor’s investment rating system:
AAA/AAAm AA++/AA+AA- Total
Government Agency Obligations - $ 2,520,588$ 2,520,588 $ - 4,015,890 4,015,890
499,711 - 499,711
477,651 - 477,651
- 2,147,206 2,147,206
32,349 - 32,349
1,487,666 - 1,487,666
2,497,377$ 8,683,684$ 11,181,061
342,638
99,727
California Local Agency Funds 34,187,958
45,811,384$
Medium Term Corporate Notes
Money Market Funds
Total Investments
Non-Rated:
Money Market Mutual Funds
Inv estment Type
US Treasury
Asset Backed Securities
Certificates of Deposit - Non-negotiable
Supranational
Asset Backed Securities
i. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are qu oted prices in an active market for identical assets; Level 2 inputs are significant oth er observable inputs; and Level 3 inputs are significant unobservable inputs.
City and Housing Authority
The following is a summary of the fair value hierarchy of the f air value of investments of the City and Housing Authority as of June 30, 2022:
Level 1 Level 2 Total
-$ 25,629,560$ 25,629,560$
- 10,888,934 10,888,934
- 21,932,599 21,932,599
- 28,863,329 28,863,329
- 994,510 994,510
-$ 88,308,932$ 88,308,932
2,320,176
PARS Pension Trust- HighMark PLUS Mutual Fund 12,468,113 67,989,992
72,193,482
243,280,695$
Money Market Mutual Funds
Investments Not Subject to Fair Value Hierarchy:
California Local Agency Investment Fund
Total Investments
Subtotal
Investments Measured at Amortized Cost:
Money Market Mutual Funds
Held with Fiscal Agent:
Negotiable CD
Investments by Fair Value Level:
U.S. Government Agencies
Asset Backed Securities
Corporate Medium Term Notes
U.S. Treasury Notes
62 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
U.S. Treasury Notes, classified in Level 1 of the fair value hi erarchy, are valued using IDC Institutional Bond Pricing. A sset Backed Securities, classi fied in Level 2 of the fair value hierarchy, are valued using IDC CMO pricing service. Negotiable Certificates of Deposit, classified in Level 2 of the fair value hierarchy, are valued using IDC CD Pricing.
Corporate Medium Term Notes, classified in Level 2 of the fair value hierarchy, are valued using IDC Institutional Bond Pricing. Municipal Bonds, classified in level 2 of the fair value hierarchy, are valued using JJ Kenny Municipal. These prices ar e obtained from various pricing sources by our custodian bank. Fair value is defined as the quoted market value on the last trading day of the period.
VFWD
The following is a summary of the fair value hierarchy of the f air value of investments of the VFWD as of June 30, 2022:
Level 2 Total
Investments by Fair Value Level:
Held by the District
Governmental Agency Obligations 2,520,588$ 2,520,588$ US Treasury 4,015,890 4,015,890
Asset Backed Securities 842,349 842,349
Supranational 477,651 477,651
Medium Term Corporate Notes 2,147,206 2,147,206
Collateralized Mortage Obligation 99,727 99,727 Subtotal 10,103,411$ 10,103,411
Investments Measured at Amortized Cost:
Held by the District
Money Market Funds 32,349
Held by Trustee
Money Market Mutual Funds 1,487,666
Investments Exempt from Fair Value Hierarchy
California Local Agency Investment Fund 34,187,958
Total Investments 45,811,384$
U.S. Treasury Notes, classified in Level 1 of the fair value hi erarchy, are valued using quoted prices in active markets. U.S. government agencies, corp orate notes and bonds, certificates of deposit, and money market mutual funds, classif ied in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The California Local Agency Investment Fund, exempt from the fair value hierarchy, is valued based on the fair value fac tor provided by the Treasurer of the State of California, which is calculated as th e fair value divided by the amortized cost of the investment pool. Fair value is defined as the quoted market value on the last trading day of the period.
63 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments (Continued)
j. Concentration Risk
The City and the VFWD investment policies regarding the amount that can be invested in any one issuer are stipulated by the California Government Code. However, these entities are required to disclose investments that represent a concentration of 5% or more of investments in any one issuer, held by individual Funds in the securities of issuers other than U.S. Treasury securities, mutual funds and external investment pools.
At June 30, 2022, these entities’ investments that represent a concentration of investments in the securities of any individual issuers, other than U.S. Treasury securities, mutual funds or external investment parts, are set forth below.
City Concentration Risk
Issuer Investment Type Reported Amount
None -$
VFWD Concentration Risk
Issuer Investment Type Reported Amount
None -$
k. Custodial Credit Risk
The custodial credit risk for cash deposits is the risk that, i n the event of the failure of the financial institution holding the deposits, the depositor will not be able to recover the value of its deposits.
At June 30, 2022, the VFWD deposit and investment balances were exposed to custodial risk as follow:
Deposits - uninsured and collateralized with securities held by the pledging bank’s trust department or agent not in the District’s name $1,242,971. 64 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 3: Interfund Transactions
a. Transfers Between Funds
Transfers between funds during the fiscal year ended June 30, 2022, were as follows:
(A)(C)(D)(F)
(A)(B)(C)
(C)
(B)
Fleet Maintenance/Replacement Internal Service Fund (A) General Liability Internal Service Fund (A)
(A)
(C)
(A)
(E)
(A)
(D) To Transfer Technology Surcharge Fees to Capital Projects Fund (F) To Fund Participatory Budgeting Projects
Other Governmental Funds
Internal Service Funds:
Other Governmental Funds
Marina Enterprise Fund
Workers Comp
107,972
447,104
140,000
General Fund
2,000,000
700,000 Marina Enterprise Fund
Fund Making Transfers
General Fund:
Special Revenue Funds:
Fund Receiving Transfers
Other Governmental Funds
Fiber Enterprise Fund
Amount Transferred
305,559
1,898,137
Capital Outlay Capital Projects Fund $ 10,646,13 3 800,000
3,000,000
(E) To Fund Affordable Housing
(A) To Fund City Operations
(B) To Fund Debt Service Payments
(C) To Fund Capital Program Projects
2,000,000
Housing Authority Special Revenue Fund
General Liability
Capital Projects Funds:
Other Governmental Funds
Total $ 22,044,905
b. Current Interfund Balances
As of June 30, 2022, the City’s Workers’ Compensation Insurance Internal Service Fund had provided short-term lending to the following funds with deficit cash positions. It is the City’s practice to use the City’s Workers’ Compensation Insurance Internal Service Fund to cover temporary cash shortfalls, as this fund is primarily funded by the General Fund.
Additionally, the Workers’ Compensation Insurance Internal Service Fund has built a sufficient cash reserve to be able to cover the temporary cash shortfalls in other funds.
These balances are expected to be repaid shortly after the end of the fiscal year upon receipt of grant or other reimbursements.
Due from Other
Funds
Due to
Other Funds
-$ 7,551,510$
- 523,634
8,075,144 -
8,075,144$ 8,075,144 $ Total
Internal Service Fund:
Workers' Comp
Enterprise Fund:
Vallejo Station Parking
Other Governmental
65 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 3: Interfund Transactions (Continued)
c. Long-Term Interfund Advances
At June 30, 2022 the funds below made advances that are not expected to be repaid within the next year:
Amount
680,000$
6,737,451
4,706,950
1,359,984
(12,804,385)
Net Advances 680,000 $
Marina Enterprise Fund
Golf Enterprise Fund
Vallejo Station Parking Enterprise Fund
Allowance for Collectability
(Asset)
Fund Making Advance
General Fund Fiber Optic Enterprise Fund
Funds Receiving Advance
(Liability)
Fiber Optic Fund
In Fiscal Year 2018, the General Fund advanced $830,000 to the Fiber Optic Enterprise Fund to provide a capital and operating reserve, allowing the p roject to move forward until revenues commence. Payments of $150,000 are due annually on June 30, 2021 through June 30, 2024 and one final payment of $230,000 on June 30, 2025. Due to insufficient resources, the Fiber Optic Fund did not make the r equired annual payment to the General Fund for the current fiscal year. However, with th e revamp of the City’s broadband infrastructure, the City is anticipating the fund would generate sufficient revenues over time to resume payments.
Subsidies Allowance
Cumulative to June 30, 2022, the General Fund has advanced $6,7 37,451 to the Marina Enterprise Fund, $4,706,950 to the Golf Enterprise Fund and $1,359,984 to the Vallejo Station Parking Enterprise Fund. These General Fund adv ances are offset with a 100% allowance for collectability since there are currently no repayment plans established for these loans. However, the City is anticipating that these funds would have sufficient resources to make repayments in the future with the increased u ser fees, proposed Golf and Housing development, and downtown parking improvements and enforcements.
d. Internal Balances
Internal balances are presented in the Entity-wide financial st atements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within gover nmental and business-type activities.
66 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable
a. Summary of Notes and Loans Receivable
The following notes and loans receivable were outstanding as of June 30, 2022. These loans are not anticipated to be fully collected within the year:
Amounts
1,600,000$
3,093,750
2,500,000
1,265,641
698,741
600,000
311,933
750,000
3,643,498
246,592
672,532
15,382,687
900,000
500,000
495,734
100,000
93,735
2,186,710
1,848,092
6,124,271
920,362
240,000
400,000
288,322
1,848,684
1,437,844
493,316
283,702
2,214,862
Single Family Residential
Marina Towers
Temple Arts Lofts
Vallejo Housing Collaborative
Solano-Napa Habitat for Humanity
Single Family Residential
Community Development Block Grant
Vallejo PSH, LP
Housing Programs
Reynaissance Family Center
Bay Area Community Services
Temple Art Lofts
Temple Arts Lofts
Residential Rehabilitation
HOME Program
Avian Glen
Eden Housing
Community Housing Development Program
Non-Major Governmental
Single Family Residential
Neighborhood Stabilization Program
Temple Arts Lofts
Fund Type
Major Governmental
Non-Major Governmental
Non-Major Governmental
Avian Glen
Citizen Housing/Sereno Village
Simpson/Bayv iew
Marina Towers
Simpson/Solano Vista I
Accrued Interest
Type of Loans
Primary Government and Blended Component
Housing Authority Programs
Affordable Housing (20% Set Aside)
Single Family Residential
Vallejo Housing Collaborative
67 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable (Continued)
Amounts
1,047,185
187,657
1,234,842
23,821
3,535
89,088
116,444
410,070
3,258,109
413,213
4,081,392
31,003,182
Sereno Village Apartments 248,860
16,669
265,529
31,268,711$
Empress Theater
Advances to Former Redevelopment Agency (Successor Agency) Major Governmental
Major Enterprise
Non-Major Governmental
General Fund- Temple Arts Lofts
Water Fund- Trailer City
Transportation Impact Mitigation Fund-
Temple Art Lofts
Georgia Street Extension
Bridge Construction Fund
Non-Major Governmental
Non-Major Governmental
Hiddenbrooke Overpass Fund
Arts and Convention Center Fund
Non-Major Governmental
Type of Loans
Sereno Village Apartments
Fund Type
Major Governmental
Development Programs
Non-Major Governmental
General Fund
Neighborhood Parks Fund
Other Programs
Development Program
Employee Computer Loans
Total Primary Government Notes and Loans Receivable
Total Notes and Loans Receivable
VFWD
Total Component Unit Notes and Loans Receivable
b. Affordable Housing and R esidential Rehabilitation
Under the provisions of AB 1484, the City’s Housing Authority e lected to become the Housing Successor and retain the housing assets of the former R edevelopment Agency, including the affordable housing loans.
These various residential purchase and rehabilitation loan prog rams were offered to qualifying low- to moderate- income individuals by the former R edevelopment Agency through the Affordable Housing Special Revenue Fund. These loans are secured by first or second mortgages on the residential property and are insured by private guaranty mortgage insurance. The terms vary greatly depending on the ability of the property owner to repay the loan. Interest rates on these loans range from 3.0% to 8.0% and the principal maturity dates range from 5 years to 30 years. Deferred interest loans a re offered as well as below-market-rate 30-year loans. Interest income is recorded as payments are received. In addition, the former Redevelopment Agency had entered into agreements with developers to assist in the development of affordable housing. The notes r eceivable are secured by deeds of trust and bear varying interest rates.
68 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable (Continued)
Additionally, in June 30, 2018, the Housing Authority entered into a loan agreement with Eden Housing, Inc., in the amount of $1,600,000. The proceeds o f the loan will be used to plan, develop and construct seventy-six housing units on Sac ramento Street for extremely low-income individuals and households. The loan bears simple interest of 2% and is repayable from residual receipts as defined in the agree ment. The loan will be secured by a deed of trust on the property and unpaid principal and interest is due on or before the fifty-fifth anniversary of the promissory note. As of June 30, 2022, the developer had drawn down $1,600,000 of the loan proceeds.
The residential rehabilitation loan is a single loan to Temple Art Lofts with an agreement that the principal shall be due and payable in full upon the 55th an niversary of the date of the note which is December 15, 2011. As long as no Event of Default occurs prior to the maturity date, borrower shall not be obliged to pay periodic payments of principal and or interest on the principal amount. The outstanding balance at June 30, 2022 remains at $246,592 and recorded in the Section 8 Operating Reserve Fund.
In July 2014, the Housing Authority entered into a loan agreeme nt with Vallejo Housing Collaborative, LLC, in the amount of $900,000. The proceeds of the loan will be used to acquire, rehabilitate and operate from ten to twelve properties t h a t a r e i m p r o v e d w i t h housing to provide permanent housing for extremely low-income individuals and households transitioning from homelessness. The loan bears simple interest of 3% and is repayable from residual receipts as defined in the agreement. T he loan is secured by up to two deeds of trust on the properties and unpaid principal and interest is due on or before the thirtieth anniversary of the promissory note. As of June 30 , 2022, the developer had drawn down $672,532 of the loan proceeds. This amount is record ed in the Section 8 Operating Reserve Fund.
c. HOME Program, CDBG Pr ogram, and NSP Program
Various residential purchase and rehabilitation loan programs a re offered to qualifying low- to moderate- income individuals by the City through the, H OME, CDBG and NSP Programs. These loans are secured by first or second mortgages on the residential property and are insured by private guaranty mortgage insurance. The terms vary greatly depending on the ability of the property owner to repay the loan. Interest rates on these loans range from 3.0% to 5.0% and the principal maturity dates range from 5 years to 30 years. The loan portfolio also includes loans made to affordable housing d evelopers for rental housing projects. The outstanding balances at June 30, 2022 were $6,124,272, $1,848,684, and $2,214,862 in the HOME Program, CDBG Program an d NSP Program, respectively.
In July 2014, the City also entered into a loan agreement with Vallejo Housing Collaborative, LLC, in the amount of $100,000 for the same project discussed in B. above. The loan was funded with HOME funds and is included in the balance of HOME Program loans receivable above. The loan bears simple interest of 3% and is repayable fr om residual receipts as defined in the agreement. The loan is secured by a deed of trust on the property and unpaid principal and interest is due on or before the thirtieth anniversary of the promissory note.
In July 2016, the City entered into a loan agreement with Solan o-Napa Habitat for Humanity in the amount of $93,735. Solano-Napa Habitat for Huma nity has drawn down $93,735 of the loan for the acquisition of real property f or development of owner-occupied affordable housing of a single- family home located at 760 Tregaskis
Avenue in Vallejo. This loan was funded with HOME Investment Partnerships Program Funds and is included in the balance of HOME Program loans receivable above. The loan bears simple interest of 0%, and principal payments are de ferred. This project was completed in 2018, and the house has been sold to a qualified first-time homebuyer. 69 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable (Continued)
In May 2019, the City entered into a loan agreement with Community Housing Development Corporation in the amount of $969,612. The Community Housing Development Corporation has drawn down $454,305 of the loan for the acquisi tion of real property located at 759, 747, 720, and 726 Sonoma Boulevard in Vallejo f or low-income owner-occupied housing project. The loan bears simple interest of 0% and principal payments are deferred. The loan is secured by the deed of trust on the property, and the entire loan is due and payable by no later than May 14, 2024; h owever, the lender may, at its option, extend the note for an additional five-year term(s) subject to continuing compliance with Neighborhood Stabilization Program requirements.
d. Sereno Village Apartments
In May 2003, the City entered into a $1,400,000 loan agreement with Sereno Village Associates for the development of a 125 unit very low-income re ntal housing project. The note bears 3% simple interest and will be due in full to the City in 15 years. The loan is secured by a deed of trust. To the extent there is excess cash flow from the project, the developer is required to repay all accrued interest and princip al annually. At June 30, 2022 the outstanding balance of this loan, including a ccrued interest, was $1,234,842 comprised of $1,047,185 funded by the General Fund and $187,657 funded by the Neighborhood Parks Capital Project Fund.
During fiscal 2002, the Vallejo Flood and Wastewater District loaned $351,635 to Sereno Village Association. The loan is secured by deed of trus t, bearing simple interest at 3% and it is due in 15 years. The outstanding balance at June 30, 2022 was $248,860.
e. Temple Art Loft Impact Fee Loan
In December 2011, the City entered into a $112,909 loan agreement with Temple Art Lofts Associates to pay certain impact fees, permit fees, and adminis trative fees for the 707-715 Marin Street Project. The loan bears zero interest and will be due and payable in full upon the 55
th anniversary of the date of the loan which is December 15, 2066 .
The loan is recorded in the General Fund and the Transportation Impact Mitigation Fund.
f. Trailer City Water Loan
In April 2004, the City entered into a $68,080 loan agreement w ith Trailer City Sales Company for the construction of improvements allowing Trailer C ity Sales Company to be connected to the City’s water system. The loan also provides assistance for payments of water connection and facilities fees. The note bears zero interest and will be due in full to the City in 20 years. The loan is secured by a deed of trust . At June 30, 2022 the outstanding balance of this loan was $3,535. This loan is recor ded in the City’s Water Enterprise Fund.
g. Golf Cart Storage
During fiscal year 2007, the City loaned $350,000 to Vallejo Go lf Club, Inc. for the construction of a golf cart storage building. During fiscal year 2011, the City established an allowance for collectability equal to the total amount owed of $180,843. At June 30, 2022, the outstanding balance of this loan and the off setting allowance were $180,843.
70 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable (Continued)
h. Long-Term Loans – Former Redevelopment Agency
From 2003 to 2006, the City had advanced $4,296,000 to the Vallejo Central Debt Service Fund which the Agency, in turn, loaned to Empress Investment Fund, LLC, for the purpose of theater improvements, and in f iscal year 2003, the City adva nced $500,000 to the Marina Vista Debt Service Fund for the Georgia Street extension p r o j e c t . Repayment of these loans were contingent upon the Successor Agency receiving a Finding of Completion, as defined in Health and Safety Code Section 34179. 6. After the Successor Agency receives a Finding of Completion, under the pr ovisions of Health and Safety Code Section 34191.4(b)(2)(A), the loans can be repa id by the Successor Agency. However, the Successor Agency must apply for approval o f the loans by the Oversight Board including a finding that the loans were for leg itimate redevelopment purposes.
On February 12, 2015 the Oversight Board to the Successor Agenc y o f t h e f o r m e r Vallejo Redevelopment Agency approved these pre-dissolution loa ns between the City and the former Vallejo Redevelopment Agency as enforceable obli gations. The DOF approved these loans as enforceable obligations in March 2015.
During the early years of the Agency (pre-1990), the City advan ced start-up funds to the Agency. As of January 31, 2012, the date of dissolution of the former Redevelopment Agency, the balance of these advances, including accrued intere st at that date totaled $9,042,032. On February 12, 2015, the Oversight Board also appr oved these pre-1990 loans between the City and the former Vallejo Redevelopment Age ncy as enforceable obligations, but the DOF overturned the approval. However, a ch ange in Health and Safety Code Section 34191.4 during fiscal year 2016 provided for the reestablishment of these prior loans as enforceable obligations so long as they we re approved by the Oversight Board. On January 28, 201 6, the Oversight Board passe d resolution OB 16-002 to reaffirm its approval of the Pre-1990 loans.
However, the DOF continued to deny approval of the pre-1990 loa ns as enforceable obligations during the Recognized Obligation Payment Schedule (ROPS) process. Due to the uncertainty of State approval, the City reports these loans their full value of $3,372,559, with an offsetting allowance as of June 30, 2022.
The loan balances as of June 30, 2022 are as follows:
Principal
Accrued
Interest Total
202,233$ 207,837 $ 410,070 $
169,112 244,101 413,213
1,433,702 1,824,407 3,258,109
162,805 880,147 1,042,952
- 647,510 647,510
708,372 973,725 1,682,097
(871,177) (2,501,382) (3,372,559)
1,805,047$ 2,276,345$ 4,081,392$
Central
Less Allowance for Doubtful Accounts
Hiddenbrooke Overpass Capital Projects Fund
Bridge Construction Capital Projects Fund
Arts and Convention Center Capital Projects Fund
General Fund:
Waterfront
Marina Vista
The loans bear simple interest of 3%. Repayment of these loans is governed by Health and Safety Code Section 34176(e)(6) and the maximum annual repa yment is limited based on calculations in that C ode Section. Repayment installme nts were approved by the State Department of Finance starting fiscal year 2016-17 th rough the annual ROPS process.
71 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Notes & Loans Receivable (Continued)
i. Investment in Empress Theater Project through the Empress Investment Fund, LLC
In September 2016, the Successor Agency and the Oversight Board approved the transfer of the Successor Agency’s interests in the Empress Theater to t he City with the long-term objective of preserving this historic property for th e community. The Oversight Board action was approved by the State DOF in January 2017. Thr ough this action, the City acquired a loan receivable from Empress Theater Associates that was previously held by the Successor Agency.
The City holds its Empress Theater loan receivable through its 100% ownership interest in the Empress Investment Fund, LLC (EIF), a limited liability corporation formed in 2007 to leverage New Market Tax Credits as a source of additional pr ivate investment in the historic Empress Theater (Theater). The Empress Theater proper ty is owned, leased, and operated through a series of limited liability corporations . Through the EIF, the City holds 100% ownership of the Empress Theater Master Tenant, LLC (ETMT), which in turn holds a 49% ownership position in Empress Theater Associates, LLC, (ETA).
ETA holds title to the Empress Theater property.
The EIF held loan receivable assets, including accumulated inte rest, of $6,513,997 due from ETA, and carries a loan payable obligation, with accumulat ed interest payable, of $49,220 due to Triad Communities LP, the site development partn er. Cash flow from Theater development and operations have been pledged to ultimat ely settle these loans receivable and payable. The loan receivable carries an interest rate of 0.5%, with quarterly payments scheduled through 2047. The loan payable car ries an interest rate of 1.15%, with quarterly payments also scheduled through 2047. However, current Theater cash flow does not support amortization of these obligations. As of June 30, 2022, the ownership of the property has been transferred to the City. As a result, the inter-party loans related to the Theater have been cancelled.
j. VFWD Employee Computer Loans
VFWD has a Computer Literacy program that allows employees to borrow, in an amount approved by the District Manager, to purchase personal computers. The principal balance amount, with the rate of interest equal to the rate of interest being earned by VFWD that shall not exceed 9%, is to be paid off within 36 months from th e date of the loan.
Note 5: Leases
City and Housing Authority
a. Lease Receivable and Inflows of Resources
The City, as a lessor, had entered into 87 lease agreements involving land, office space and facilities. Out of these, 54 are qualified leases under GASB Statement No. 87. The related receivables of these leases were initially measured on July 1, 2021, with the City’s adoption of the new lease standards. The City also had inflows of resou rces during the fiscal year totaling $1,141,423. This total includes $997,443 of lease reve nue, $133,859 of interest revenue and $10,121 of variable and other payments excluded in the initial measurement of the lease receivables.
72 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 5: Leases (Continued)
The following is a summary of the 54 qualified leases and descr iption of the lease arrangements:
Initial Principal Balance Leas e Interes t Variable
Leas e Meas urement Payments at 6/30/2022 Revenue Revenue Payments Land 5,202,853 $ (115,556) $ 5,087,297$ 201,586$ 38,196$ 3,600$ Office and Related Space 1,533,051 (214,876) 1,318,175 266,992 19,432 - Telecommunications 7,009,619 (370,261) 6,639,358 528,865 76,231 6,521 Total 13,745,523$ (700,693)$ 13,044,830$ 997,443$ 133,859$ 10,121$ Leas e Receivable Inflows of Res ources
Land Leases - The City is the lessor for 8 ground lease agreements related to land including railroad track, certain tide and submerged lands with varied terms and the latest expiring on September 30, 2066. Interest rates vary between .90% to 2.1%. Total payments for the current year ranged from $1,200 to $67,518.
Office and Related Space Lease - On July 31, 2019, the City ass umed the existing agreement between Alsation Land Company Vallejo, LLC and Veteran’s Administration for the lease of office and related space in 400 Mare Island Way. The lease is for twenty years which includes a termination option that the City is reasonably certain will be exercised by lessee after the ten-year firm term end date in 2027. Interest rate is 1.5%. Total monthly payments received for the current year was $234,309.
Telecommunication Leases - The City entered into 45 lease agree ments with wireless providers (AT&T, Verizon, T-Mobile, Mobilitie) related to telec ommunications. These agreements are for the installation, operation, and maintenance of telecommunication sites, mounting structures and equipment associated with the transmission and reception of radio communication signals. These agreements are all qualified leases under GASB Statement No. 87 with periods covering various ranges and the latest expiring on February 28, 2047.
Interest rates range from .90% to 1.5%. Total payments for the current year varied from $400 to $53,697.
Future annual lease receivables as of June 30, 2022, are as follows:
Fis cal Year Ended
June 30 Principal Interest Total
2023 850,393$ 187,914 $ 1,038,307 $
2024 793,556 177,751 971,307
2025 842,960 166,526 1,009,486
2026 886,108 154,591 1,040,699
2027 806,719 142,408 949,127
2028-2032 2,995,223 579,094 3,574,317
2033-2037 1,844,374 406,106 2,250,480
2038-2042 1,659,965 273,534 1,933,499
2043-2047 1,250,079 159,577 1,409,656
2048-2052 563,027 77,208 640,235
2053-2057 181,738 50,596 232,334
2058-2062 204,017 30,566 234,583
2063-2068 166,671 8,413 175,084
Total 13,044,830$ 2,414,284 $ 15,459,114 $
Governmental Activities
73 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 5: Leases (Continued)
The remaining 33 agreements that are not qualified under GASB S tatement No. 87 are either short-term in nature, do not meet the City’s threshold o r outside the scope of the standard. These non-qualified lease agreements have not been recognized and measured as part of the City’s lease receivable, and the receipts relate d to these agreements are recognized as revenue as appropriate under standard GAAP revenue recognition rules.
VFWD
The District has entered into a lease agreement with New Inspir ation Broadcasting Company, Inc. for certain land on Tubbs Island, California for use as a tower site. The terms of this agreement include monthly rental payments increasing annually based on the Consumer Price Index (CPI) for all Urban Consumers for the San Francisco/Oakland/San Jose Metropolitan Area published by the United States Departmen t of Labor. This lease commenced on April 1, 2021. The lease receivable was discounted to a net present value of April 1, 2021 using a 0.5% interest rate and CPI increase of 2.2% per year. For the year ended June 30, 2022, the District received $37,364 in lease rev enue and $2,544 in lease interest revenue. Future payments due to the District under the non-cancellable agreement are as follows for the year ended June 30:
Fis cal Year Ended
June 30 Principal Interest Total
2023 49,945 $ 2,354 $ 52,299 $
2024 47,695 1,900 49,595
2025 49,257 1,432 50,689
2026 50,856 948 51,804
2027 52,495 449 52,944
2028 17,740 36 17,776
Total 267,988 $ 7,119 $ 275,107 $
Also, the District has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 2022, the balance of the deferred inflow was $259,289.
b. Lease Payable
Lease agreements are summarized as follows:
Payment Total
Terms in Months- Payment Interest Beginning Balance
Description Date Combined Amount Rate Lease Liability June 30, 2022 Equipment - Golf Carts - PNC 7/1/2021 54 180,192$ 3.00% 392,084$ 220,793$ Equipment - Copiers - Xerox 7/1/2021 247 18,030 0.25% 52,547 34,619 198,222$ 444,631$ 255,412$
The City has entered into agreements to lease certain equipment . The lease agreements qualify as other than short-term leases under GASB 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of July 1, 2021. 74 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 5: Leases (Continued)
The City of Vallejo has fully adopted and implemented GASB87 standard in which the City recognizes leased equipment lease liability and a right to use asset. Leased equipment includes two PNC agreements for Golf Carts for term of 54 combined months with a fixed 3% interest rate. Also, lease agreement with Xerox Company for seven copiers with term in months ranging from 23-41 for a combined total of 247 months wi th fixed 0.25% interest rate.
Annual requirements to amortize long-term lease obligations and related interest are as follows:
Fiscal Year Ended
June 30 Principal Interest Total
2023 14,948$ 76$ 15,024$
2024 10,399 15 10,414
2025 1,064 - 1,064
Total 26,411$ 91$ 26,502$
Governmental Activities
Fiscal Year Ended
June 30 Principal Interest Total
2023 178,690 $ 3,992 $ 182,682 $
2024 48,590 177 48,767
2025 1,721 1 1,722
Total 229,001 $ 4,170 $ 233,171 $
Business-Type Activities
Note 6: Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date contributed.
Capital assets with limited useful lives are depreciated over t heir estimated useful lives.
The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.
Depreciation is determined using the half year convention metho d, which means the cost of the asset is divided by its ex pected useful life in years and the result is charged to expense each year, but only half of the full year depreciation is charg ed in the first year, while the other half is charged in the last year of depreciation or in th e year the asset is sold or retired.
The City has assigned the useful lives and capitalization thres holds listed below to capital assets.
75 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Capital Assets (Continued)
Useful Lives
Capitalization
Threshold
Land N/A Capitalize All
Easements N/A 500,000$
Land Improvements 25 to 60 Years 50,000
Buildings and Improvements 5 to 50 Years 50,000
Machinery and Equipment 5 to 25 Years 5,000
Internally Developed Software 2 to 5 Years 500,000
Purchased Software 2 to 5 Years 50,000
shorter of the lease
term or 2-5 years 5,000
Infrastructure:
Traffic Signals 5 to 25 Years 50,000
Street Lights 15 to 50 Years 50,000
Bridges and Culverts 15 to 60 Years 50,000
Sidewalks, Curbs and Gutters 15 to 40 Years 50,000
Streets and Roads 15 to 40 Years 50,000
Right-to-use assets
Machinery and Equipment
Improvements to existing infrastructure assets in excess of $50 ,000 are capitalized if: the estimated useful life of the existing asset has been extended b y at least 25%; or the capacity of the existing asset has been subs tantially improved; or the quality of the output of the existing asset has been substantially improved.
The VFWD capitalizes applicable assets greater than $10,000 and the VFWD has assigned the useful lives listed below to capital assets:
Wastewater Treatment Plant and Facilities 5 to 40 Years Wastewater and Storm Warm Pump Stations 5 to 25 Years
Wastewater Collection and Storm Water Transmissions Systens 5 to 50 Years Buildings and Improvements 5 to 40 Years
Machinery and Equipment 5 to 25 Years
Right-of-use lease assets 3 to 10 Years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. 76 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Capital Assets (Continued)
a. Government Capital Asset Activity
Balance at
June 30, 2021 Additions Retirements Transfers
Balance at
June 30, 2022
145,797,035$ 235,977 $ 1,133,065 $ - $ 144,899,947$ 16,111,049 8,877,635 - (4,952,832) 20,035,852 161,908,084 9,113,612 1,133,065 (4,952,832) 164,935,799 130,417,302 1,234,023 - - 131,651,325 50,886,289 1,984,467 (618,851) - 52,251,905 276,782,259 - - 4,952,832 281,735,091 - 41,594 - - 41,594 458,085,850 3,260,084 (618,851) 4,952,832 465,679,915 (57,025,336) (5,862,779) - - (62,888,115) (32,960,949) (3,036,896) 414,537 - (35,583,308) (174,259,783) (1,498,434) - - (175,758,217) - (15,275) - - (15,275) (264,246,068) (10,413,384) 414,537 - (274,244,915) 193,839,782 (7,153,300) (204,314) 4,952,832 191,435,000 355,747,866$ 1,960,312 $ 928,751 $ - $ 356,370,799$ Machinery and Equipment
Right-to-use Leased Equipment
Total Accumulated Depreciation/Amortization
Net Capital Assets Being Depreciated/Amortized
Gov ernmental Activ ities Capital Assets, Net
Infrastructure
Buildings and Improvements
Governmental Activities
C
apital Assets Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets Not Being Depreciated
Capital Assets Being Depreciated/ Amortized:
Buildings and Improvements
Machinery and Equipment
Right-to-use Leased Equipment
Total Capital Assets Being Depreciated/ Amortized
Less Accumulated Depreciation/Amortization for:
Infrastructure
b. Business-Type Capital Asset Activity
Balance at
June 30, 2021 Additions Retirements Transfers
Balance at
June 30, 2022
12,298,805$ 124,102 $ - $ - $ 12,422,907$ 8,170,493 1,257,984 - (1,564,151) 7,864,326 20,469,298 1,382,086 - (1,564,151) 20,287,233 95,495,328 768,451 - - 96,263,779 25,879,943 239,431 (882,415) * - 25,236,959 164,824,613 - - 1,564,151 166,388,764 - 403,037 - - 403,037 286,199,884 1,410,919 (882,415) 1,564,151 288,292,539 (67,695,597) (1,565,517) - - (69,261,114) (14,071,610) (1,116,703) 347,877 * - (14,840,436) (115,732,637) (2,366,273) - - (118,098,910) - (174,248) - - (174,248) (197,499,844) (5,222,741) 347,877 - (202,374,708) 88,700,040 (3,811,822) (534,538) 1,564,151 85,917,831 109,169,338$ (2,429,736) $ (534,538) $ - $ 106,205,064$ Machinery and Equipment
Right-to-use Leased Equipment
Total Accumulated Depreciation
Net Capital Assets Being Depreciated
Business-Type Activ ity Capital Assets, Net
Infrastructure
Buildings and Improvements
Business-Type Activities
Capital Assets Not Being Depreciated:
La
nd
Construction in Progress
Total Capital Assets Not Being Depreciated
Capital Assets Being Depreciated:
Buildings and Improvements
Machinery and Equipment
Right-to-use Leased Equipment
Total Capital Assets Being Depreciated
Less Accumulated Depreciation for:
Infrastructure
*Related to the GASB 87 implementation.
77 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Capital Assets (Continued)
c. Vallejo Flood and Wastewater District Capital Asset Activity
Balance at
June 30, 2021 Additions Retirements Transfers
Balance at
June 30, 2022
2,810,716$ - $ - $ - $ 2,810,716$ 16,643,934 6,451,832 - (1,285,001) 21,810,765 19,454,650 6,451,832 - (1,285,001) 24,621,481 3,868,149 - - - 3,868,149 44,894,655 - - 279,552 45,174,207 138,148,787 - - 759,206 138,907,993 132,651,515 - - 135,801 132,787,316 46,144,269 - - - 46,144,269 2,165,355 - - - 2,165,355 13,773,155 - (207,790) 110,442 13,675,807 1,731,887 256,606 - - 1,988,493 383,377,772 256,606 (207,790) 1,285,001 384,711,589 (2,667,531) (103,390) - - (2,770,921) (30,409,962) (1,071,045) - - (31,481,007) (87,867,670) (3,152,329) - - (91,019,999) (44,848,661) (2,735,659) - - (47,584,320) (31,638,027) (872,218) - - (32,510,245) (1,299,215) (54,134) - - (1,353,349) (9,500,071) (793,752) 186,229 - (10,107,594) (114,996) (161,713) - - (276,709) (208,346,133) (8,944,240) 186,229 - (217,104,144) 175,031,639 (8,687,634) (21,561) 1,285,001 167,607,445 194,486,289$ (2,235,802)$ (21,561)$ -$ 192,228,926$ Collection systems
Collection systems - con cap
Plant and facilities - con cap
Machinery, equipment, v ehicles
Pump stations
Plant and facilities
Right-to-use lease assets
Total Accumulated Depreciation
Net Capital Assets Being Depreciated
Capital Assets, Net
Buildings and Improvements
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets, Not Being Depreciated
Capital Assets Being Depreciated:
Buildings and Improvements
Plant and facilities - con cap
Right-to-use lease assets
Total Capital Assets Being Depreciated
Less Accumulated Depreciation for:
Pump stations
Plant and facilities
Collection systems
Collection systems - con cap
Machinery, equipment, v ehicles
d. Depreciation and Amortization Allocation
Depreciation and amortization expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function were as follows:
Governmental Activities
Executive 59,963 $
Finance 776
Community Development 245,542
Fire Services 152,949
Police Services 969,064
Public Works 7,273,566
Capital Assets Held by the City's Internal Serv ice
Funds are charged to the various functions based
on their usage of the assets 1,711,524
10,413,384$
Busine ss-Type Activitie s
Water 4,830,343 $
Marina 58,802
Golf 293,449
Parking 29,989
Fiber 10,158
5,222,741$
VFWD:
Vallejo Flood and Wastewater District 8,944,240 $
78 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt.
For governmental fund types, bond premiums and discounts, as we ll as issuance costs, are recognized during the current period. Bond proceeds are reported as another financing source gross of the applicable premium or discount. Issuance costs, ev en if withheld from the actual net proceeds received, are reported as debt service expenditures.
For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the year incurred.
Any differences between proprietary refunded debt and the debt issued to refund it is recorded as Deferred Outflows/Inflows of Resources and amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter.
a. Current Year Transactions and Balances
The City’s long-term debt issues and transactions were as follows:
Original Issue Amount
Balance at
June 30, 2021 Additions Retirements
Balance at
June 30, 2022 Current Portion
4,815,000$ 2,336,517 $ - $ (200,000)$ 2,136,517 $ 210,000 $ 4,815,000 2,336,517 - (200,000) 2,136,517 210,000 75,860 46,658 1,343 (43,389) 4,612 - 7,813,780 2,522,129 - (584,047) 1,938,082 598,648 Loan Principal 7,906,677 7,906,677 - - 7,906,677 - Accreted Interest - 694,735 96,673 (119,738) 671,670 121,684 15,720,457 11,123,541 96,673 (703,785) 10,516,429 720,332 City Hall Security Cart Capital Lease 5,716 3,215 - (3,215) * - - Motorola Equipment Lease (Police) 3,997,967 2,999,967 - (818,094) 2,181,873 419,516 VAR Tech Equipment Lease (IT&Police) 197,685 154,435 - (154,435) * - - 4,201,368 3,157,617 - (975,744) 2,181,873 419,516 1,700,000 2,533,000 - (236,000) 2,297,000 236,000 42,500 42,500 - (42,500) - - 21,740,185 16,903,316 98,016 (2,001,418) 14,999,914 1,375,848 26,555,185$ 19,239,833$ 98,016$ (2,201,418)$ 17,136,431$ 1,585,848$ * Remov al due to GASB 87 implementation, not current year payments.
Total Financed Purchases
Loans Payable to Triad Communities LP
Total Direct Borrowings
Total Governmental Activity Debt
Housing & Urban Development Section 108 Loan
Variable, due 8-1-2026
Other Obligation:
Governmental Activity Debt:
Certificates of Participation:
(Restructured, see Note 6C)
(Restructured, see Note 6C)
Financed Purchases:
UBOC Reimbursement Obligations:
1999 COPs
Total Certificates of Participation
Governmental Activity Debt - Direct Borrowing:
1999 COPs Shortfall Indebtedness
UBOC Tranche A - General Fund
Total Loans & Note Payable
UBOC Tranche B - General Fund
79 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
Original Issue
Amount
Balance at
June 30, 2021 Additions Retirements
Balance at
June 30, 2022 Current Portion
16,750,000$ 9,995,000$ -$ (3,310,000)$ 6,685,000$ -$ - 1,770,840 - (196,759) 1,574,081 - 20,075,000 20,075,000 - - 20,075,000 3,440,000 42,600,000 42,600,000 - (775,000) 41,825,000 795,000 - 9,082,125 - (302,738) 8,779,387 - 79,425,000 83,522,965 - (4,584,497) 78,938,468 4,235,000 4,269,641 1,139,228 - (326,184) 813,044 334,340 7,916,579 2,037,870 - (610,077) 1,427,793 625,330 -
Loan Principal 4,561,670 4,561,670 - - 4,561,670 - 544,884 82,981 - 627,865 - Loan Principal 8,899,586 8,899,586 - - 8,899,586 - - 930,832 149,212 (28,443) 1,051,601 28,905 68,080 11,913 - (3,404) 8,509 3,404 715,051 402,216 - (402,216) * - - VAR Tech Equipment Lease 97,367 76,065 - (76,065) * - - 26,538,565 18,604,264 232,193 (1,446,389) 17,390,068 991,979 105,963,565$ 102,127,229$ 232,193$ (6,030,886)$ 96,328,536$ 5,226,979$ * Removal due to GASB 87 implementation, not current year payments.
Other Loans & Notes Payable:
Capital Leas e
UBOC Tranche B - Golf Course
2020A Water Rev enue Refunding Bonds, 4%, due 5/1/30
Plus: Unamortized Bond Premium
2020B Water Revenue Refunding Bonds, var. rate, due 5/1/28 2021A Water Rev enue Bonds, v ar.rate, due 5/1/51
Plus: Unamortized Bond Premium
Accreted Interest
Accreted Interest
Total Direct Borrowings
Total Bus ines s Activity Debt
State Safe Drinking Water 0%, due 1/1/25
Business-Type Activity Debt:
Revenue Bonds:
UBOC Reimbursement Obligations:
Total Revenue Bonds
Bus ines s Activity Debt - Direct Borrowing:
UBOC Tranche A - Golf Course
UBOC Tranche A - Marina
UBOC Tranche B - Marina
Golf Course Cart Capital Lease
Original Issue
Amount
Balance at
June 30, 2021 Additions Retirements
Balance at
June 30, 2022 Current Portion
34,294,966$ 26,380,300 $ - $ (1, 273,953)$ 25,106,347 $ 1,120,000 $ 3,345,000 1,165,456 - ( 272,727) 892,729 280,000 37,639,966 27,545,756 - (1, 546,680) 25,999,076 1,400,000 13,798,201 1,748,312 - ( 863,364) 884,948 884,948 4,406,072 1,197,121 - ( 288,720) 908,401 295,648 - - 2,025,735 - 2,025,735 - - 280,435 200,958 ( 117,555) 363,838 102,064 18,204,273 3,225,868 2,226,693 (1, 269,639) 4,182,922 1,282,660 55,844,239$ 30,771,624 $ 2,226,693 $ (2, 816,319)$ 30,181,998 $ 2,682,660 $ Lease liability
Total Loans & Notes Payable
Total VFWD Debt
State Clean Water (2004) 2.5%, due 2023
VFWD:
Revenue Bonds:
Other Loans & Notes Payable - Direct Borrowings:
2014 Revenue Bonds, 4-5%, due 5/1/36
Total Revenue Bonds
2011 Revenue Bonds, 2-5%, due 5/1/25
State Clean Water (2008) 2.4%, due 2025
2021 State Revolving Fund Loan
b. Debt Service Requirements
Annual debt service requirements to maturity are shown below for all long-term debt:
For the Year
Ending June 30 Principal Interest Principal (a) Interest 2023 210,000$ 101,849$ 1,375,848$ 138,156$ 2024 225,000 90,432 1,401,057 107,397 2025 235,000 78,357 1,260,896 81,605 2026 245,000 65,757 1,179,995 162,505 2027 260,000 52,501 1,231,935 143,331 2028-2032 961,517 70,088 4,638,484 530,422 2033-2037 - - 3,911,699 187,901 Total 2,136,517$ 458,984$ 14,999,914$ 1,351,317$ Governmental Activities
Direct Borrowings1999 COPs
(a) Includes accreted interest on the UBOC Retirement Obligations - Tranche Bfor ($671.670).
80 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
For the Year Ending
June 30 Principal Interest Principal (a) Interest
2023 4,235,000 $ 2,272,450 $ 991,979 $ 66,091 $ 2024 4,320,000 2,198,066 1,016,440 41,630 2025 4,405,000 2,111,961 796,110 260,258 2026 4,405,000 2,021,210 809,920 244,746 2027 4,005,000 1,923,113 823,082 231,585 2028-2032 14,880,000 7,828,763 4,320,434 952,899 2033-2037 6,330,000 5,980,200 4,683,065 590,268 2038-2042 7,700,000 4,609,400 3,949,038 197,220 2043-2047 9,370,000 2,940,800 - - 2048-2052 8,935,000 910,800 - - Total 68,585,000 32,796,763 $ 17,390,068 2,584,697 $ Plus: Unamortized Bond
Premium (discount) 10,353,468 -
Net Long-Term Debt 78,938,468$ 17,390,068 $
Business-Type Activities
Direct BorrowingsRevenue Bonds
(a) Includes accreted interest on the UBOC Retirement Obligations - Tranche B for ($1,679,466).
For the Year Ending
June 30 Principal Interest Principal Interest
2023 1,400,000$ 1,231,676$ 1,180,593$ 43,926$
2024 1,475,000 1,161,675 302,744 14,706
2025 1,550,000 1,087,925 310,010 7,440
2026 1,305,000 1,010,425 - -
2027 1,370,000 945,175 - - 2028-2032 7,975,000 3,581,300 - - 2033-2036 8,095,000 1,142,900 - - Total 23,170,000 10,161,076$ 1,793,347 66,072$
Plus: Unamortized Bond
Premium (discount) 2,829,076 -
Net Long-Term Debt 25,999,076$ 1,793,347$
VFWD
Direct Borrowings
Revenue Bonds and
Certificates of Participation
For the Year Ending
June 30 Principal Interest Total
2023 102,066 $ 11,948 $ 114,014 $
2024 98,065 8,279 106,344
2025 98,604 4,518 103,122
2026 62,854 1,168 64,022
2027 2,249 22 2,271
Total 363,838 25,935 $ 389,773
VFWD
Leas es
81 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
c. Certificates of Participation (COPs)
1999 COPs – In July 1999, the City issued $4,815,000 of Certificates of P articipation (1999 Capital Improvements Project) to finance City capital imp rovements. Principal payments are payable annually on Ju ly 15. Interest payments are due semiannually on January 15 and July 15.
Due to the failure of the City to pay the scheduled amounts due under the original agreement, on January 25, 2011, the City, National Public Finance Guarantee Corporation (National) and the Controller f or the State of California (the “Controller”) entered into a Settlement Agreement (the Settlement Agreement).
Commencing July 1, 2013, the City was to pay the Trustee the fu ll scheduled amount when due and commencing on January 15, 2014, to pay National, on January 15 and July 15 of each year, an amount equal to 100% of all MVLF to which the City would be entitled under the California Revenue and Taxation Code duri ng the previous six months, minus the amount paid to the Trustee for the same p eriod, provided that the MVLF exceed the total amounts due for that period. The City’s o bligation to pay amounts is not dependent on its receipt of MVLF in any amount.
The MVLF catch-up payment is to be applied to the shortfall indebtedness until paid in full. To the extent that the shortfall indebtedness is not paid in full by the last scheduled payment under the Lease Agreement, the City is to pay the remai ning balance of the shortfall indebtedness to National no later than January 15, 2030. During the year ended June 30, 2022, the City paid $43,389 to reduce the shortfall pr incipal balance and accrued interest of $1,343 was added to the principal balance.
Bond Rating – On June 16, 2022, Standard and Poor’s raised its long-term r ating and underlying rating (SPUR) to “A-” from “BBB” on 1999 COPS. The credit report highlighted the City’s strong financial position during the past five fiscal years.
d. UBOC Reimbursem ent Obligations
On August 2, 2011, Union Bank and the City reached a restructur ing agreement regarding series 2000, 2001, 2002, and 2003 Certificates of Par ticipation (COPs) which amended and replaced the COPs as follows:
There are two tranches: the “A” obligation and the “B” obligati on. The starting principal balance of the “A” obligation is $18,049,887 and the “B” obligation has a starting principal of $21,367,933. No interest accrued on either the “A” or the “B ” obligation from the effective date of November 1, 2011, through December 31, 2014, and interest commenced accrual on both obligat ions on January 1, 2015. The “A” obligation has a fixed annual interest rate of 2.5% and the “B” obligation has a fixed annual interest rate of 1.625%. Interest is payable annually on the first business day of each calendar year, in a single annual payment, in advance. Interest payments on the obligations commence in the calendar years 2015 and 2018 for obligations “A” and “B” , respectively, and continuing, in each case, until the principal balance of that o bligation has been paid in full.
Principal is payable annually on the first business day of each calendar year, in a single annual payment, commencing with the 2012 calendar year f or the “A” obligation and 2025 for the “B” obligation. The outstanding principal bala nce, all accrued but unpaid interest,
and all other amounts due under the New Union Bank Re imbursement 82 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
Agreement Payment Agreement with respect to the “A” obligation is due and payable on January 1, 2026; and the “B” obligation is due and payable on January 1, 2042.
e. Revenue Bonds
2020 Water Revenue Refunding Bonds – On March 31, 2020, the City issued $36,825,000 in Water Revenue Refunding Bonds to refund the outstanding 2006 and 2013 Water Revenue Bonds. The refunding resulted in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $5,583,330.
The Series 2020 A & B Bonds and the interest thereon are payable solely from a first lien on and pledge of the Net Revenues (the amount of the gross revenues less operating expenses) derived by the City from the operation of the City’s water system. Interest is payable on May 1 and November 1. Annual principal payments are due on May 1. The debt is secured and serviced by water system opera tions. The 2020 Series A&B Bonds were given an AA rating by Standard & Poor’s.
2021 Water Revenue Bonds Series A – On February 2, 2021, the City issued $42,600,000 in Water Revenue Bonds to provide funds to finance capital facilities needed to operate and improve the City’s water system. The Series 2021A Bonds are sec ured by a pledge of Net Revenues on a parity with the Series 2020A Bonds, the Series 2020B Bonds, and the 2004 SDWSRF Loan. The Series 2021A Bonds will not be secured by amounts on deposit in the Parity Reserve Fund established under the Indenture, or by any other reserve fund, and amounts on deposit in the Parity Reserve Fund are not pledged t o the payment of the Series 2021A Bonds. Interest is payable on May 1 and November 1 of each year. Annual principal payments are due on May 1. The debt is secured and se rviced by water system operations. The 2021 Series A Bonds were given an A+ rating by Standard & Poor’s.
The pledge of future net revenues ends upon repayment of the $71,401,650 in remaining debt service on the bonds and loans which is scheduled to occur in 2041. Under the terms of the indenture, net revenues are required to provide a 1.25 debt service coverage ratio.
For fiscal year 2022, operating revenues, investment income, an d capital grants and contributions amount to $48,298,555 and operating costs including operating expenses, but not interest, amounted to $31,440,778. Net Revenues available for debt service amounts to $16,857,777, which represents coverage of 2.59 over the $6,516, 504 in combined debt service for the 2020 Series A & B Water Revenue Refunding Bonds, 2021 Series A Water Revenue Bonds and State Safe Drinking Water loans debt service.
2011 Revenue Bonds – the VFWD and the Water Reuse Finance Authority issued 2011 Revenue Bonds in the principal amount of $3,345,000 at a p remium of $38,409 in a current refunding (1) to prepay the outstanding principal of 2001 Certificates of Participation, (2) to fund a reserve fund for the bonds, and (3) to pay certain costs of issuing the bonds. The bonds are fully registered with principal due annually on May 1, and interest payable semi-annually on May 1 and November 1. The bonds maturi ng on or after May 1, 2025 are subject to optional redemption on any date on or after May 1, 2024, together with accrued interest to the redemption date, without a premium.
The transaction paid scheduled principal due on the 2001 Certif icates of Participation in the amount of $145,000 and redeemed the remaining principal amounting to $3,315,000 pursuant to notice and exercise of
optional prepayment of the C ertificates for a total of 83 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
$3,460,000. The transaction resulted in a deferred amount on re funding of $53,447 and a decrease in total cash flows of $262,952. The deferred amount on refunding is carried as a deferred outflow of resources, and the premium is carried as a net reduction of the 2011 Revenue Bonds. The deferred amount on refunding and the premium are amortized on a straight-line basis over the life of the bonds as components of interest expense.
2014 Revenue Bonds – the VFWD and the Water Reuse Finance Authority issued 2014 Revenue Bonds in the principal amount of $29,825,000 at premium of $4,469,967 in an advance refunding (1) to prepay the outstanding principal of 2006 Certificates of Participation, (2) to fund a reserve fund for the Bonds, and (3 ) to pay certain costs of issuing the Bonds. The Bonds are fully registered with principa l due annually on May 1, and interest payable semi-annually on May 1 and November 1. The Bonds maturing on or after May 1, 2022 are subject to optional redemption on any date on or after May 1, 2021, together with accrued interest to the redemption d ate, without a premium.
The transaction resulted in a deferred amount on refunding of $ 1,282,720, a decrease in total cash flows of $2,024,106, and an economic gain of $323,440. The deferred amount on refunding is carried as a deferred outflow of resources, and th e premium is carried as a net reduction to the 2014 Revenue Bonds. The deferred amount on refunding and the premium are amortized on a straight-line basis over the life of the Bonds as components of interest expense.
f. Other Notes and Loans Payable
Vallejo Flood and Wastewater State Clean Water (2004) – In August 2004 the VFWD entered into a loan agreement with the Division of Financial Assistance of the State Water Resources Control Board under the Clean Water State Revolving F und loan program in the amount of $13,798,201. Payments in the amount of $907,072 w ith interest at 2.5% commencing May 1, 2005 and are due annually thereafter until ma turity in 2023.
Vallejo Flood and Wastewater State Clean Water (2008) – During the fiscal year ended June 30, 2008, the District completed a second loan agreement w ith the State Water Resources Control Board’s Division of Financial Assistance. The loan is dated January 24, 2008 and is in the principal amount of $4,406,072. Payments in the amount of $317,450 with interest at 2.4% commence January 24, 2009 and are due annually thereafter until maturity in 2025.
Vallejo Flood and Wastewater State Clean Water (2021) – During the fiscal year ended June 30, 2022, the District entered into loan agreement with th e State Water Resources Control Board’s Division of Financial Assistance. The loan is dated April 26, 2022 and is in the principal amount of up to $40,000,000. The District is drawing down on the loan as the project progresses. There has been no repayment schedule set as of June 30, 2022. Interest is to accrue at a rate of 0.8% per anum and will begin with each disbursement. Final payment date is set at December 31, 2055.
State Safe Drinking Water, Water Fund – The loan, with original amount of $68,080, from the State of California, Department of Water Resources was used to finance construction of a project which enables the City to meet safe drinking water standards. The interest rate is 0%. Semiannual principal payments are due on July 1 and January 2, through 2025.
HUD Section 108 Loan – On April 18, 2019, the City entered into a loan agreement with the U.S. Department of Housing and Urban Development (HUD) for the demolition of 84 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 7: Long-Term Debt (Continued)
vacant buildings on North Mare Island. The planned source of re payment is the General Fund and proceeds from the sale of the North Mare Island property. The loan was issued as a variable rate loan, with interest calculated daily. Annual principal payments are due on August 1 commencing 2019 through 2026. Interest is payable q uarterly on August 1, November 1, February 1 and May 1. If the City fails to make any scheduled payments, HUD will use CDBG (Community Development Block Grant) funds which are the primary security of this loan to cover the payment.
g. Finance Purchase Agreement
Radio Equipment Finance Purchase Agreement
On May 2020, City entered into a finance purchase agreement in the amount of $3,997,967 with Motorola Solutions Inc., for the purchase of radio equipment. The City agreed to make a $1.0 million down payment and annual payments of $425,000 commencing June 26, 2021 until maturity in 2027.
h. Leases
The District, as a lessee, has entered into lease agreements involving a postage machine, gas monitoring equipment, copy machines, and vehicles. The tota l of the District’s lease assets are recorded at a cost of $632,335, less accumulated amortization of $276,709.
Note 8: Debt without City Commitment
Assessment and Improvement Districts
Special Assessment and Improvement Districts in various parts o f the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debt issued by these Districts but has no direct or contingent liability for the payment of this debt. Therefore , this debt is not reported as long-term debt of the City. The outstanding balance of each of these issues as of June 30, 2022 is as follows:
7,925,000$
4,370,000
12,295,000$
Improvement Bonds
2004 Hiddenbrooke Improvement District Series A
Northeast Improvement District 2003-1
Total
Note 9: Conduit Debt
The following bonds do not constitute or create a debt or pledge of the general credit or taxing power of the City, and, accordingly, are not reported as long-term debt of the City.
Mortgage Revenue Bonds
Solano Vista II – Multifamily Housing Revenue Bonds, Series 2001A (Solano Vista II Senior Apartments) in the amount of $10,600,000. The bonds bear intere st at the rate of 5.45%.
Interest payments are due semiannually through November 1, 2034 . The bonds are dated August 1, 2001 and were issued to provide funding for a mortgage loan for the acquisition and construction of a multifamily housing project. On June 30, 2022 , $6,740,000 of these bonds remained outstanding.
85 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: Employee Benefits Payable
Employee Benefits Payable reported in the Statement of Net Posi tion includes compensated absences as discussed below.
Compensated absences consist of vested vacation leave, sick lea ve and compensatory time off. For governmental activities, the portion reported as a liability in the Internal Service Funds primarily represents balances due within 60 days of year end. The remaining governmental activities portion is reported on the Statement of Net Position. The long-term portion of governmental activities employee benefits payable is liquidated primarily by the General Fund. For proprietary activities, which are reported on the accrual basis at the fund level, all earned but unpaid benefits are recorded as an expense and liability of the fund in which it is earned.
Compensated absences have been recorded at the contractual salary rates due to employees at June 30, 2022. Com pensated absences activity for the City and VFWD for the year e nded June 30, 2022 is as follows:
Governmental
Activ ities
Business-Type
Activ ities Total VFWD
12,467,702$ 1,542,257$ 14,009,959$ 1,943,987$ 6,169,814 1,044,335 7,214,149 1,429,926 (7,128,967) (1,022,956) (8,151,923) (1,320,568) 11,508,549$ 1,563,636$ 13,072,185$ 2,053,345$ 558,117$ -$ 558,117$ -$ 6,788,348 1,022,956 7,811,304 - - - - 821,338 7,346,465 1,022,956 8,369,421 821,338 3,702,140 540,680 4,242,820 - - - - 1,232,007 3,702,140 540,680 4,242,820 1,232,007 11,048,605$ 1,563,636$ 12,612,241$ 2,053,345$ 3,702,140$ 540,680$ 4,242,820$ 1,232,007$ 459,944 - 459,944 - 4,162,084$ 540,680$ 4,702,764$ 1,232,007$ Compensated Absences Activ ity:
Current Portion
Vallejo Flood and Wastewater District
Noncurrent Portion
Classification Presentation:
Beginning Balance
Additions
Deletions
Compensated Absences
Ending Balance
Noncurrent Potion
(1.5% RHSA Contribution set aside by City)
Other Employee Benefits
Compensated Absences
Noncurrent Employee Benefits Payable:
Total
Current Portion:
Internal Serv ice Funds - City
Entity-Wide
Vallejo Flood and Wastewater District
Noncurrent Portion:
Entity-Wide
86 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan
a. General Information about the City’s Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Reti rement System (CalPERS), which acts as a common investment and administrative agent for its participating membe r employers. Benefit provisions under the Plans are e stablished by State statute and City resolution.
CalPERS issues publicly available reports that include a full d escription of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benef its are based on years of cre dited service, equal to one year of full-time employment. Members with five years of to tal service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 year s of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Opti onal Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.
87 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
The Plans’ provisions and benefits in effect as of the measurement date, are summarized as follows:
Classic Tier I PEPRA
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit Formula 2% @ 55 2.0% @ 62
Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments monthly for life monthly for life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of eligible compensation 2.0% - 2.7% 1.0% - 2.5% Required Employee Contribution Rates 8.00% 7.00%
21.795% 13.969%
Miscellaneous
$8,330,968
Required Employer Contribution Rates (Normal
Cost)
Required Unfunded Accrued Liability Contribution
(Monthly Basis)
Classic Tier I Classic Tier II PEPRA
Hire Date
Prior to
December 28, 2012
On or After
December 28, 2012
On or After
January 1, 2013
Benefit Formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 years of service 5 years of service 5 y ears of service Benefit Payments monthly for life monthly for life monthly for lif e Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a % of eligible compensation 3.00% 2.0% - 2.7% 2.0% - 2.7% Required Employee Contribution Rates 9.00% 9.00% 13.25% Required Employer Contribution Rates (Normal Cost) 30.574% 31.294% 22.959% Required Unfunded Accrued Liability Contribution (Monthly Basis) $13,993,151 Safety - Fire
Classic Tier I PEPRA
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit Formula 3% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments monthly for life monthly for life
Retirement Age 50 50 - 57
Monthly Benefits, as a % of eligible compensation 3.00% 2.0% - 2.7% Required Employee Contribution Rates 9.00% 13.25%
36.540% 27.283%
Safety - Police
Included in Fire table above
Required Employer Contribution Rates (Normal
Cost)
Required Unfunded Accrued Liability Contribution
(Monthly Basis)
88 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
Employees Covered – At the June 30, 2020 actuarial valuation date, the following employees were covered by t he benefit terms for each Plan:
Classic Tier I Classic Tier II PEPRA Plan
590 - 5
159 - 32
50 - 114
122 - 207
Total 921 - 358
Inactive employees or beneficiaries currently receiving Inactive employees eligible to, but not yet receiving benefits Inactiv e employees ineligible to, but not yet receiv ing benefits Activ e employees
Miscellaneous
Classic Tier I Classic Tier II PEPRA Plan
395 - -
37 1 11
5 - 13
112 1 63
Total 549 2 87
Inactive employees or beneficiaries currently receiving Inactive employees eligible to, but not yet receiving benefits Inactive employees ineligible to, but not yet receiving benefits Activ e employees
Safety
Contributions – Section 20814(c) of the California Public Employees’ Retireme nt Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and s hall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are de termined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by emp loyees during the year, with an additional amount to finance any unfunded accrued liabil i t y . T h e C i t y i s required to contribute the difference between the actuarially d etermined rate and the contribution rate of employees.
Beginning in fiscal year 2016, CalPERS collects employer contributions for each Plan as a percentage of payroll for the normal cost portion and as a doll ar amount for contributions toward the unfunded liability (UAL). The dollar amounts are either billed on a monthly basis, or may be paid in a lump sum at discount. During the measuremen t period, the City’s required UAL contributions were made under the lump sum option.
b. Net Pension Liability
For purposes of measuring the net pension liability and deferre d outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plan s’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds o f employee contributions) are recognized when currently due and payable in accordance wit h the benefit terms.
Investments are reported at fair value. The net pension liabili ty and related deferred outflows/inflows of resources are liquidated by the fund that h as recorded the liability.
The long-term portion of governmental activities net pension liability is liquidated primarily by the General Fund.
The City’s net pension liability for each Plan is measured as t he total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuaria l valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard up date procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
89 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liabilities were determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:
All other actuarial assumptions used in the June 30, 2020 valua tion were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015, including updates to salary increase, mortality and retir ement rates. Further details of the Experience Study can be f ound on the CalPERS website und er Forms and Publications.
Discount Rate – The discount rate used to measure the total pension liability was 7.15%.
The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers w ill be made at statutorily requir ed rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of c urrent plan members.
Therefore, the long-term expected rate of return on plan invest ments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expe cted rate of return, CalPERS t ook into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both
Miscellaneous 1 Safety 1
June 30, 2020 June 30, 2020
June 30, 2021 June 30, 2021
Entry-Age Normal Cost Method
Entry-Age Normal Cost Method
7.15% 7.15%
2.50% 2.50%
Varies by entry age and service
Varies by entry age and service
Varies by entry age and service
Varies by entry age and service
7.00% 2 7.00% 2
Post Retirement Benefit Increase
Derived using CalPERS Membership Data for all Funds 3
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter 3 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
Inflation
1 Actuarial assumptions are the same for all benefit tiers (Classic Tier I, Classic Tier II, and PEPRA) 2 Net of pension plan investment and administration expenses, including inflation Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
90 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded sing le equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:
Assumed Asset
Allocation
Real Return
Years 1 - 10 2
Real Return
Years 11+ 3
50.00% 4.80% 5.98%
28.00% 1.00% 2.62%
0.00% 0.77% 1.81%
8.00% 6.30% 7.23%
13.00% 3.75% 4.93%
1.00% 0.00% -0.92%
100.00%
2 An Expected Inflation of 2.0% used for this period.
3 An Expected Inflation of 2.92% used for this period.
1 In the System's ACFR, Fixed Income is included in Global Debt Securities;Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Liquidity
Total
Real Assets
Asset Class 1
Global Equity
Fixed Income
Inflation Assets
Priv ate Equity
Subsequent Events
On November 15, 2021, the CalPERS Board of Administration selected a new asset allocation mix that will guide the fund's investment portfolio for the next four years, while at the same time retaining the reduction of discount rate from
7.0% to 6.8%. Notable changes
for employers include a decrease in median total employer contribution rates, from less than 1% in miscellaneous plans to a decrease of more than 2% in some safety plans.
Contribution changes will take effect in fiscal year 2023-24 for public agencies.
c. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follow:
Miscellaneous Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
298,368,045$ 185,457,938 $ 112,910,107 $
4,651,311 - 4,651,311
20,921,652 - 20,921,652
1,213,833 - 1,213,833
- 11,062,044 (11,062,044)
2,145,220 (2,145,220)
- 41,389,429 (41,389,429)
- (185,261) 185,261
(18,594,010) (18,594,010) -
8,192,786 35,817,422 (27,624,636)
306,560,831$ 221,275,360$ 85,285,471$
Serv ice Cost
Changes in the Year:
Balance at June 30, 2020
Increase (Decrease)
Contribution - Employee
Contribution - Employer
Differences Between Actual and Expected Experience
Interest on the Total Pension Liability
Net Inv estment Income
Benefit Payments, Including Refunds of Employee Contributions Net Changes
Balance at June 30, 2021 (Measurement Date)
Administrativ e Expenses
91 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
Safety Plan:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
519,868,877$ 319,477,767 $ 200,391,110 $
6,840,081 - 6,840,081
36,031,428 - 36,031,428
(4,341,410) - (4,341,410)
- 18,763,982 (18,763,982)
- 2,880,179 (2,880,179)
- 71,416,960 (71,416,960)
- (319,139) 319,139
(30,022,902) (30,022,902) -
8,507,197 62,719,080 (54,211,883)
528,376,074$ 382,196,847 $ 146,179,227 $
834,936,905$ 603,472,207 $ 231,464,698 $ (Miscellaneous and Safety Plan) Grand Total Balance at June 30, 2021 (Measurement Date) Serv ice Cost
Changes in the Year:
Balance at June 30, 2020
Net Inv estment Income
Benefit Payments, Including Refunds of Employee Contributions Net Changes
Balance at June 30, 2021 (Measurement Date)
Administrative Expenses
Increas e (Decreas e)
Contribution - Employee
Contribution - Employer
Differences Between Actual and Expected Experience
Interest on the Total Pension Liability
Sensitivity of the Net Pension Liabilit y to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pen sion liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety Total
6.15% 6.15% 6.15%
121,460,911$ 213,399,546$ 334,860,457$
7.15% 7.15% 7.15%
85,285,471$ 146,179,227$ 231,464,698$
8.15% 8.15% 8.15%
55,107,488$ 90,712,705$ 145,820,193$ Net Pension Liability 1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 92 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension e xpense of $4,237,021, $5,675,034 for the Miscellaneous and Safety Plans, respectively, for total pension expense of $9,912,055. At June 30, 2022, the City reported deferred out flows of resources and deferred inflows of resources related to pensions from the foll owing sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
11,568,843$ - $
780,321 (1,935)
- (20,527,293)
Total 12,349,164$ (20,529,228)$
Safety Plan:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
19,484,048$ -$
840,045 (3,025,831)
- (35,285,186)
Total 20,324,093$ (38,311,017)$
Total Miscellaneous and Safety Plans 32,673,257$ (58,840,245)$ Differences Between Actual and Expected Experience
Net Differences Between Projected and Actual Earnings
on Plan Investments
Miscellaneous Plan:
Pension Contributions Subsequent to Measurement Date
Differences Between Actual and Expected Experience
Net Differences Between Projected and Actual Earnings
on Plan Investments
Pension Contributions Subsequent to Measurement Date
$31,052,891 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts report ed as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Periods
Ended June 30 Miscellaneous Safety Total
2022 (4,776,922)$ (9,593,870)$ (14,370,792)$
2023 (4,379,710) (9,238,624) (13,618,334)
2024 (4,918,677) (8,851,821) (13,770,498)
2025 (5,673,598) (9,786,657) (15,460,255)$
2026 - - -
Total (19,748,907)$ (37,470,972)$ (57,219,879)$
Annual Amortization
93 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
e. Vallejo Flood and Wastew ater District Pension Plan
i. General Information about t he District’s Pension Plan
Plan Descriptions – Eligible employees of the District are provided with pensions through the District’s Miscellan eous Plan, a cost-sharing multiple-employer defined benefit pension plans administer ed by the California Public Emp loyees’ Retirement System (CalPERS), which acts as a common investment and adminis trative agent for its participating member employers. The District’s Miscellaneous Plan is part of the public agency cost-sharing multiple-employer defined benefit pe nsion plan (PERF C), which is administered by CalPERS. PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), whic h are comprised of individual employer miscellaneous and safety rate plans, respec tively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. T he District sponsors two rate plans within the miscellaneous risk pool. Benefit provisions under the Plan are established by State statute and District resolution. CalPERS issues publicly available reports that include a full description of the pension plan reg arding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan me mbers, who must be public employees and beneficiaries. Benefits are based on ye ars of credited service, equal to one year of full-time employment. Members wit h five years of total service are eligible to retire at age 50 with statutorily reduc ed benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the Plan are applied as specified by the Public Employees’ Retireme nt Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.
The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:
Classic Tier I PEPRA
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 62
Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments monthly for life monthly for life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of eligible compensation 2.0% - 2.7% 1.0 % - 2.5% Required Employee Contribution Rates 8.00% 6.25%
Required Employer Contribution Rates* 39.740% 7.960%
Miscellaneous
*The required employer contribution rate includes the normal cost rate plus the employer unfunded accrued liability contribution amount.
94 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
Required Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates fo r all public employers be determined on an annual basis by the actuary and shall be ef fective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance th e costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Dist rict is required to contrib ute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2022, the District’s contributions to the Plan were $3,307,047.
ii. Pension Liabilities, Pension Expenses, and Deferred Outflow s/Inflows of Resources Related to Pensions
For purposes of measuring the net pension liability and deferre d outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the P lan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (i ncluding refunds of employee contributions) are reco gnized when currently due and p ayable in accordance with the benefit term s. Investments are reported at fair value.
As of June 30, 2022, the District reported its proportionate sh are of the net pension liability of the Plan of $16,441,417.
The District’s net pension liab ility is measured as the proport ionate share of the net pension liability. The net pension liability of the Plan is mea sured as of June 30, 2021, and the total pension liability for the Plan use d to calculate the net pension liability was determined by an actuarial valuation as o f June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The District’s proportion of the net pension liability was based on a projecti on of the District’s long-term share of contributions to the pension plans relative to the projected contributions of all participati ng employers, actuarially deter mined. The District’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2021 was as follows:
0.61886%
0.86588%
0.24702%
Proportion - June 30, 2021
Proportion - June 30, 2022
Change - Increase (Decrease)
95 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
For the year ended June 30, 2022, the District recognized pensi on expense of $8,066,478. At June 30, 2022, the District reported deferred ou tflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
3,307,047$ - $
315,854 267,650
Difference between expected and actual experience 1,843,728 - - -
- 405,947
- 14, 352,489
Total 5,466,629$ 15, 026,086$
Net Differences between projected and actual earnings on plan investments
Miscellaneous Plan - VFWD
Pension Contributions Subsequent to Measurement Date
Change in employer's proportion
Changes in assumptions
Difference between employer contributions and the employer's proportional share of the risk pool's contribution
$3,307,047 reported as deferred outflows of resources related t o contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30 Annual Amortization
2023 (2,718,077)$
2024 (2,908,939)
2025 (3,273,199)
2026 (3,966,289)
Total (12,866,504)$
Changes in assumptions – For measurement period June 30, 2021, there were no changes of assumptions.
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 7.15%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in th e Public Employees Retirement Fund (PERF) will be made at the current member contr ibution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future bene fit payments of current plan members for all plans in the PERF. Therefore, the long-ter m expected rate of return on plan investments was applied to all periods of projec ted benefits payments to determine the total pension liability for the Plan.
The long-term expected rate of return on pension plan investmen ts was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
96 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building -block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of ret urn was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using bo th short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for th e assumed administrative expenses.
The expected real rates of return by asset class are as follows:
New Strategic
Allocation
Real Return
Years 1 - 10 2
Real Return
Years 11+ 3
50.00% 4.80% 5.98%
28.00% 1.00% 2.62%
0.00% 0.77% 1.81%
8.00% 6.30% 7.23%
13.00% 3.75% 4.93%
1.00% 0.00% -0.92%
100.00%
Real Assets
Asset Class 1
Global Equity
Fixed Income
Inflation Assets
Private Equity
2 An Expected Inflation of 2.0% used for this period.
3 An Expected Inflation of 2.92% used for this period.
1 In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Liquidity
Total
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the District’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the District’s proportionate share of the net pens ion liability would be if it were calculated using a discount rate that is 1-percentage poin t lower or 1-percentage point higher than the current rate:
Miscellaneous
6.15%
29,389,434$
7.15%
16,441,417$
8.15%
5,737,476$ Net Pension Liability
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
97 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Pension Plan (Continued)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately is sued CalPERS financial reports.
iii. Temporary and Seasonal Employees
Federal law requires that employees not covered by an employer retirement system be covered by Social Security or an alternative plan. The Distr ict hires temporary employees whose positions are exe mpt from PERS membership and u tilizes Social Security for these positions.
Note 12: Post-Employment Benefits
a. Post Retirement Health Benefits - City
i. Plan Description
The City’s Post- Employment Benef it Plan is an Agent Multiple-Em ployer Plan.
Employees and their dependents are eligible for the CalPERS pos t-retirement health benefits if they retire directly from the City retaining the Pu blic Employees Medical and Hospital Care Act (PEMHCA) health benefits. The City pays the retiree and eligible dependent premiums up to benefit level established in the collective bargaining agreement for each employee organization.
98 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
The following is a summary of benefits by employee group as of June 30, 2022:
The PEMHCA minimum in 2022 is $149 per month.
Vallejo Police Officers Association (VPOA) (imposed)
Employee Group Contractual Benefit at June 30, 2022
Hired on or after 1/1/14 - PEMHCA minimum plus 1.5% of
employee's base monthly salary Retiree Health Savings
Account (RHSA) contribution
Retired on or after 7/1/2000 and hired before 1/1/2014 - up to $300 per month, but not less than PEMHCA minimum
Retired prior to 7/1/2000 - up to 75% of Kaiser Bay Area non-Medicare Premium
International Association of Fire Fighters (IAFF) Retired prior to 7/1/2000 - up to 75% of Kaiser Bay Area non-Medicare Premium
Retired on or after 7/1/2000 - up to $300 per month, but not less than PEMHCA minimum
Council and Unrepresented Up to $300 per month, not not less tha n PEMHCA minimum Hired on or after 7/1/2013 - PEMHCA minimum plus 1.5% of employee's base monthly salary RHSA contribution
Hired before 7/1/2013 - up to $300 per month, but not less than PEMHCA minimum (with the option of electing, no later than 7/1/2016, the RHSA benefit available to CAMP employees hired on or after 7/1/2013)
International Brotherhood of Electrical Workers (IBEW) Hired befo re 7/1/2014 - up to $300 per month, but not less than PEMHCA minimum (with the option of electing, no later than 10/31/2016, the RHSA benefit available to CAMP employees hired on or after 7/1/2014)
Hired on or after 7/1/2014 - PEMHCA minimum plus 1.5% of employee's base monthly salary RHSA contribution
Confidential, Administrative, Management, and Professional Employees Association (CAMP)
ii. Funding Policy
In 2013, the City has established an irrevocable trust with California Employer's Retiree Benefit Trust (CERBT), an agent mul tiple-employer plan administered by CALPERS.
CERBT is funded by employer cont ributions for the purpose of pr efunding the City's OPEB obligations. CERBT provides an annual financial report tha t may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, California 94229-2703.
99 CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
For the year ended June 30, 2022, the City’s contributions to the Plan were $2,860,000.
iii. General Information About City’s OPEB Plan
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2021:
519
471
178
Total 1,168
Active Employees
Inactive Employees or beneficiaries currently receiving benefit payments
Inactive Employees entitled to but not yet receiving
benefit payments
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calcul ate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:
The actuarially determined contribution (ADC) was determined as part of a June 30, 2020 actuarial valuation using the entry age normal actuarial cost method.
This is a projected benefit cost method, which takes into accou nt those benefits that are expected to be earned in the future as well as those alread y accrued. The actuarial assumptions included (a ) 6.75% investment rate of ret urn, (b) 2.75% general inflation rate, and (c) 7.00% (non-Medicare) and 6.10% (Medicare) in 2022, decreasing to an ultimate rate of 4.0% in 2076 medical trend. The actuarial methods and assumptions used include techniques that smooth the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions abou t the probability of events far into the future. Actuarially determined amounts are subject to revision at least biannually as results are compared to past expectations and new estimates are made about the future. The actuarial accrued liability (AAL) re presenting the present value of future benefits, is being amortized as a level percent age of projected payroll using a 30- year amortization period.
The underlying mortality assumptions were based on the CalPERS 1997-2015 experience study and all other actuarial assumptions used in th e June 30, 2020 valuation were based on the results of the actuarial experience study for the period.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rat es of return (expected returns, net of OPEB plan investment expense and infl ation) are developed for each major asset class. These ranges are combined to produc e the long-term expected rate of return by weighting the expected future real r ates of return by the target asset allocation percentage and by adding expected inflation.
100
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target Allocation*
CERBT - Strategy 1
Expected Real
Rate of Return
59.0% 4.82%
25.0% 1.47%
TIPS 5.0% 1.29%
3.0% 0.84%
REITs 8.0% 3.76%
0.0% 2.75%
0.0% 6.75%
* Policy target effective October 1, 2018
Expected Long-Term Net Rate of Return
Asset Class
Global Equity
Fixed Income
Commodities
Assumed Long-Term Rate of Inflation
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%.
The projection of cash flows used to determine the discount rat e assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficia ries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of p rojected benefit payments to determine the total OPEB liability.
iv. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB
Liability (a)
Plan Fiduciary
Net Position (b)
Net OPEB
Liability (a)-(b)
38,698,000$ 22,724,000 $ 15,974,000$
919,000 - 919,000
Interest 2,576,000 - 2,576,000 - 2,919,000 (2,919,000)
- 6,249,000 (6,249,000)
- (35,000) 35,000
(2,893,000) (2,893,000) -
602,000 6,240,000 (5,638,000)
39,300,000$ 28,964,000$ 10,336,000$
Net Investment Income
Administrative Expenses
Benefit Payments
Net Changes
Balance at 6/30/22 (Measurement Date)
Contributions from the Employer
Increase (Decrease)
Changes Recognized for the Measurement Period:
Service Cost
Balance at 6/30/21 (Measurement Date)
Detailed information about the OPEB plan’s fiduciary net positi on is available in the separately issued plan financial report that may be obtained from CERBT. The benefit payments and refunds noted above include implied subsidy benefit payments in the amount of $953,000. The net OPEB liability and related deferre d outflows/inflows of resources are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities net OPEB liability is liquidated primarily by the General Fund. 101
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
v. Sensitivity of the Net OPEB Liability to Changes in the Disc ount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a disco unt rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
Discount Rate -1%
(5.75%)
Discount Rate
(6.75%)
Discount Rate +1%
(7.75%)
14,465,000$ 10,336,000 $ 6,855,000 $
Net OPEB Liabilty
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthc are cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease
Current Trend
(7.5% to 4.0%) 1% Increase
7,463,000$ 10,336,000 $ 14,190,000 $
Net OPEB Liabilty
Healthcare Trend Rate
vi. OPEB Expense and Deferred Outfl ows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB income of $351,000. At June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
2,860,000$ -$
- (3,686,000)
613,000 (338,000)
- (3,353,000)
Total 3,473,000$ (7,377,000)$
Net Differences Between Projected and Actual Earnings on Plan Investments
Employer Contributions made Subsequent to the Measurement Date Differences Between Expected and Actual Experience
Changes in Assumptions
102
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
$2,860,000 reported as deferred outflows of resources related t o contributions subsequent to the measurement date will be recognized as a redu ction of the OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Ended
June 30
Annual
Amortization
2023 (2,239,000)$
2024 (2,081,000)
2025 (1,135,000)
2026 (1,277,000)
2027 (32,000)
Thereafter -
Total (6,764,000)$
b. Post-Retirement Health Benefits – VFWD
i. Plan Description
The District’s defined benefit post-employment healthcare plan, Public Agency Post- Retirement Health Care Plan (the Plan), provides medical benefits to eligible retired employees and their beneficiarie s. The California Employers’ Re tiree Benefit Trust (CERBT) Fund administers the Plan, an agent multiple-employer trust arrangement established to provide economies of scale and efficiency of adm inistration to public agencies that hold assets used to fund OPEB obligations. Plan benefits were established in accordance with Board policy and Memorandums of Understanding for respective employee groups, and may be amended by the Board of Trustees. CERBT provides an annual financial report that can be found on the CalPERS website.
ii. Funding Policy
The Plan is funded by employer contributions plus a retirement for employee matching in the amount of 2% of gross salary for all employees. As the p lan’s sponsor, the District establishes and may am end employee and employer contri bution requirements.
103
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
iii. Benefits Provided
The following is a summary of Plan benefits by employee group as of June 30, 2022:
Eligibility Attained age 50
Hired prior to 11/1/2013
Completed 5 years of District service (if hired after 11/1/13) Retire concurrently from both District and CalPERS after leaving District employment
Benefit The District will pay the retired employee's entire monthly medical premium which may include his/her spouse and/or dependents, up to the highest costs local HMO.
Each additional year, add: 5%
20+ years: 100%
Hired on or after 11/1/2013 Follows State of California Vesting Schedule, employer pays:
10 years (PERS covered service): 50%
Membership in the plan consisted of the following at the measurement date of June 30, 2022:
Active plan member electing coverage 70
22 84
176
Activ e plan members waiv ing cov erage
Retiree electing coverage
iv. Net OPEB Liability
Actuarial Assumptions – The District’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate th e net OPEB liability was determined by an actuarial valuation dated January 1, 2022 that was rolled forward using standard update procedures to determine the total OPEB liability as of June 30, 2022 based on the following actuarial methods and assumptions:
Inflation
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
2.25%
5.75%
Based on assumptions for Public Agency
Miscellaneous members published in December 2017
CalPERS Experience Study. These tables include
15 years of static mortality improvement using 90% of
scale MP-2016.
6.70% initially, gradually decreasing over several
decades to an ultimate rate of 3.8% in FY 2076 and
later years
Mortality Rate
Healthcare Trend Rate
Investment Rate of Return
Actuarial Assumptions
June 30, 2020
June 30, 2022
Entry Age Method
5.75%
104
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in w hich best-estimates of expected future real rates of return (expected returns, net of OPEB plan investment expense a nd inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and be adding expecte d inflation. The assumed asset weighting is based on target allocations published by CERBT.
Expected future asset class returns were published in the 2021 Survey of Capital Market Assumptions produced by Horizon Actuarial Services. The expected returns, along with expected asset c lass standard deviations and correlation coeff icients, are based on Horizon’s annual survey of investment advisory firms. The expected inflation assumption was developed based on an analysis the historical experience bl ended with forward-looking expectations available in market data.
Estimated geometric real and nominal rates of return for each major asset class included in the OPEB Plan’s asset allocation as of the measurement date are summarized in the following table:
Target Allocation at
Measurement Date
Expected Rate of
Return
Long-Term Expected
Nominal Rate of
Return 1
59.00% 4.42% 6.67%
25.00% 1.00% 3.25%
5.00% 0.15% 2.40%
3.00% 1.73% 3.98%
8.00% 3.98% 6.23%
100.00% 5.84%
Reductions for assumed investment expense 3 -0.10%
Net long-term expected inv estment return (rounded to 1/4%) 5.74% 1 Nominal rates of return are equal to real rates of return plus the assumed inflation rate. 3 Assumed investment expenses include investment management fees. 2 Portfolio total expected return is weighted average of arithmetic asset class returns, with adjustment to reflect geometric av erages. It is not equal to the weighted av erage of the asset class geometric returns Asset Class (CERBT Strategy 1)
Equity
Fixed Income
Inflation Assets
Commodities
REITs
Total 2
Discount Rate – The discount rate used to measure the total OPEB liability was 5.75% as of the June 30, 2020 valuation. The projection of cash flows used to determine the discount rate assumed that District contributions will be made at the current contribution rate (2% of base pay) until 2023, and that Distric t contributions will be made equal to $500,000 per year in addition to the benefits pai d. Based on those assumptions, the OPEB plan's fiduciary net position was project ed to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB Trust investments was a p p l i e d t o a l l periods of projected benefit payments to determine the total OPEB liability.
Investment Rate of Return – For the year ended June 30, 2022, the annual money-weighted rate of return on investments, net of investment expense, was - 13.58%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 105
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
Changes in Net OPEB Liability – The changes in the net OPEB liability were as follows:
Total OPEB
Liability (a)
Plan Fiduciary
Net Position (b)
NetOPEB
Liability/(Asset)
(a)-(b)
Balance at June 30, 2021 (Measurement Date) 23,981,726$ 14,964,995 $ 9,016,731 $ Changes Recognized for the Measurement Period:
916,059 - 916,059
Interest on the total OPEB Liability 1,388,866 - 1,388,866 Differences between expected and actual experience 73,206 - 73,206 Contributions from the Employer - 1,987,182 (1,987,182) Contributions from the Employee - 210,111 (210, 111) - (2,056,062) 2,056,062
- (2,780) 2,780
(1,487,182) (1,487,182) -
890,949 (1,348,731) 2,239,680
Balance at June 30, 2022 (Measurement Date) 24,872,675$ 13,616,264 $ 11,256,411 $ Administrative Expenses
Benefit Payments
Net Changes
Net Inv estment Income
Increase (Decrease)
Serv ice Cost
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The following presents the net OPEB liability of the District, as w ell as what the District’s net OPEB liability would be if it were calculated using a disco unt rate that is 1-percentage-point lower or 1-percentage point higher than the current discount rate:
Discount Rate -1%
(4.75%)
Discount Rate
(5.75%)
Discount Rate +1%
(6.75%)
14,266,825$ 11,256,411 $ 8,747,188 $
Plan's Net OPEB Liabilty/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate - The following presents the net OPEB liability of the District , as well as what the District’s net OPEB liability would be if it were calculate d using healthcare cost trend rates that are 1-percent age-point lower or 1-percentage- point higher than the current healthcare cost trend rates:
Discount Rate -1%
Healthcare Cost
Trend Rate
(6.70% to 3.80%) Discount Rate +1%
8,042,070$ 11,256,411$ 15,197,378$
Plan's Net OPEB Liability/(Asset)
106
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Post-Employment Benefits (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources related to OPEB - For the year ended June 30, 2022, the District recognized OPEB expense of $2,306,671. At June 30, 2022, the Di strict reported deferred ou tflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
920,869$ 386,250$
2,350,004 -
1,051,047 -
Total 4,321,920$ 386,250$
Net Differences Between Projected and Actual Earnings on OPEB Plan Investments
Differences Between Expected and Actual Experience
Changes in Actual Assumptions
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Ended
June 30
Net Deferred
Outflows of Resources
2023 979,893$
2024 1,067,992
2025 987,245
2026 893,524
2027 7,016
Total 3,935,670 $
Note 13: Net Position and Fund Balances
a. Net Position – Stat ement of Net Position
Net Position is the excess of all assets and deferred outflows of resources over all liabilities and deferred inflows of resources. Net Position is divided into three captions. These captions apply only to Net Posit ion, which is determined only a t the Government-wide level, proprietary fund level, and fiduciary fund level and are described below:
Net investment in capital assets, describes the portion of Net Position which is represented by the current net book value of capital assets, less the outstanding balance of any debt issued to finance these assets.
At June 30, 2022, the City’s net investment in capital assets is calculated as follows:
Total
Governmental Water Marina Golf Vallejo Station Fiber Optic Business-Type Internal Activities Fund Fund Fund Parking Fund Fund Activities Service Funds Capital assets, net of
accumulated depreciation 356,370,799$ 89,056,284 $ 12,089,002 $ 4,120,576 $ 600,457 $ 338,745 $ 106,205,064$ 8,648,094 $ Less:
Bonds, notes and finance
purchase agreements (A) (17,136,431) (78,946,977) (11,378,980) (6,002,579) - - (96,328,536) - Leases payable (26,411) (9,959) - (219,042) - - (229,001) - Add:
Deferred charges - 1,361,486 - - - - 1,361,486 - Negative accreted interest (A) 671,670 - 1,051,601 627,865 - - 1,679,466 - Unspent Bond Proceeds - 48,579,043 - - - - 48,579,043 - Net investment in capital assets 339,879,627$ 60,039,877 $ 1,761,623 $ (1,473,180) $ 600,457 $ 338,745 $ 61,267,522$ 8,648,094 $ Business-Type Activities
(A) Bonds, notes and finance purchase agreements include accreted interest. Since interest on long-term debt is excluded in the calculation of the net investment in capital assets, the accreted interest portion of the debt is added back . 107
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 13: Net Position and Fund Balances (Continued)
Restricted describes the portion of Net Position which is restr icted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the Ci ty cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
b. Fund Balance – Governmental Funds Balance Sheet
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.
The City’s fund balances are classified based on spending const raints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, As signed, and Unassigned.
Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, an d land held for redevelopment are included. However, if proceeds realized from the sale or collection of non-spendable assets are restricted, committed or assigned, then non-spendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Encumbrances and non-spendabl e amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constr aints imposed by formal acti on of the City Council which may be altered only by resolution of the City Council. En cumbrances and non-spendable amounts subject to council commitments are includ ed along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. Inte nt is expressed by the City Council or its designee and may be changed at the discreti on of the City Council or its designee. This category includes encumbrances; non-spend ables, when it is the City’s intent to use proceeds o r collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been res tricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of o ther governmental funds.
108
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 13: Net Position and Fund Balances (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are below:
General Fund
Housing
Authority Fund
Mare Island
Conversion
Fund
Capital Outlay
Fund
Non Major
Governmental
Funds Total
82,445$ -$ -$ -$ -$ 82,445$ 801,042 - - - - 801,042 680,000 - - - - 680,000 499,684 - - - - 499,684 362 - - - - 362 Subtotal 2,063,533 - - - - 2,063,533 - - - - 64,625 64,625 2,063,533 - - - 64,625 2,128,158 - - - - 263,681 263,681 - - - - 31,723,397 31,723,397 - 12, 506,336 3,075,403 - 10,690,864 26,272,603 12,468,113 - - - - 12, 468,113 406,455 - - - 579,181 985,636 - - - 3,800,911 16,149,734 19,950,645 - - - - 7,746,360 7,746,360 12,874,568 12,506,336 3,075,403 3,800,911 67,153,217 99,410,435 - - - - 466,923 466,923 - - - 15, 011,817 629,387 15,641,204 Community Development and
Housing - 1,996,687 - - - 1,996,687 -
- - - - 2,533,183 2,533,183 - 1,996,687 - 15, 011,817 3,629,493 20,637,997 - - - - 1,719,586 1,719,586 1,421,176 - - - - 1,421,176 1,
000,000 - - - - 1,000,000 1,000,000 - - - - 1,000,000 1,600,000 - - - - 1,600,000 Community Development and
Housing - 2,132,135 - - - 2,132,135 5,021,176 2,132,135 - - 1,719,586 8,872,897 23,172,169 - - - - 23, 172,169 - - - - - - 23,172,169 - - - - 23, 172,169 43,131,446$ 16,635,158$ 3,075,403$ 18,812,728$ 72,566,921$ 154,221,656$ Items not in spendable form:
Public Safety Programs
Fund Balance Classifications
Amounts required to be maintained intact:
Materials, Parts and Supplies
Land Held for Redevelopment
Advance to other funds
Notes Receivable
Prepaids and deposits
Community Development and Housing
Streets and Highways
Bond indentures
Total Nonspendable Fund Balances
Permanent Funds
Nonspendable:
Restricted for:
Total Fund Balances
Total Unassigned Fund Balances
Empress Theater Fund
General Fund
Total Assigned Fund Balances
Assigned to:
Unas s igned:
Public Facilities Mainte nance
Subsequent Year budget
Staffing support and retention
P
ension contribution
Other Contracts
Pension Benefits
Total Committed Fund Balances
(funded by other funds)
Public Facilities Projects
(funded by General Fund)
Public Facilities Projects
Mare Island Development
Total Restricted Fund Balances
Hiddenbrooke Overpass
Public Facilities Projects
Committed to:
c. Minimum Fund Balances
The City’s Budget and Fiscal Policy requires the City to strive to maintain 15% of annual appropriations in the General Fund’s Unassigned Fund Balance. A s of June 30, 2022, the Unassigned Fund Balance reached $23,172,169, which is 18% o f 2022-23 annual appropriations of $130 million, including Measure B.
109
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 13: Net Position and Fund Balances (Continued)
d. Deficits
The funds below had fund balance or net position deficits at June 30, 2022:
Enterprise Funds
Golf Fund (A) 316,879 $
Fiber Optic Fund (A) 273,653
Retiree Health Benefits (B) 11,349,677
Fiduciary Funds
Hiddenbrooke Improvement District (C) 3,216,797
NE Quadrant Improvement District (C) 3,492,420
Successor Agency (C) 5,521,356
Internal Service Funds:
(A) The net position of Golf and Fiber Optic Funds are anticipated to gradually improve over time with the future revitalization of Blue Rock Springs Golf Course and revamp of the City's broadband infrastructure, respectively.
(B) The Retiree Health Benefits Internal Service Fund had a net position deficit of $11,349,677 due to recognition of the net OPEB liability. The C ity had established an irrevocable trust plan to prefund the liability and reduce the deficit. (C) The net position deficits in fiduciary funds are mainly due to the recognition of the long-term of Assessment Districts and Successor Agency. The special assessments and Redevelopment Property Tax Trust Fund (RPTTF) received by the City on behalf of the bondholders continued to provide sufficient resources fo r these funds to cover the required annual debt service.
e. Restatement of Net Position
The City’s beginning net position of the following funds was restated in fiscal year 2021-22 for a combined total of $53,575. Adjustment to the Water Fund i s due to the removal of a software lease and related asset. Adjustment to the Golf Fund i s due to GASB 87 implementation, per Note 1.
Water Fund Golf Fund
Busine ss Type
Activities
Net Position (Deficit), Beginning of Year 68,119,929$ (735,994)$ 67,240,689$ Restatements (8,884) (44,691) (53,575) Net Position (Deficit), Beginning of Year, as Restated 68,111,045$ (780,685)$ 67,187,114$
VFWD’s beginning net position was restated in fiscal year 2021-22 for a combined total of $397,837. Adjustment was due to a newly adopted inventory polic y and the write-off of inventory items that no longer me t policy threshold, which is r eported as a change in estimate.
VFWD
Net Position, Beginning of Year, as restated for GASB 87 implementation (Note 1) 177,913,102$
Inventory write-off (397,837)
Net Position, Beginning of Year, as Restated 177,515,265$
110
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 14: Self-Insurance Program
The City manages risk by participating in the public entity ris k pools described below and by retaining certain risks.
Public entity risk pools are formally organized and separate en tities established under the Joint Exercise of Powers Act of the State of California. As sep arate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipali ties. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influence by members beyond their representation on that board. Obligations and liabilities of these risk pools are not the City’s responsibility.
a. Risk Coverage
City – The City of Vallejo has operated a self-insured liability progr am for many years.
Its self-insured retention (SIR) for 2021-22 was $1,000,000, with an additional $1,000,000 corridor deductible. Public Risk Innovation, Solutions and Management (PRISM), formerly known as the California State A ssociation of Counties Excess In surance Authority (CSAC-EIA) provides coverage in excess of the City’s SIR. During the fiscal year ended June 30, 2022, the City contributed $1,824,192 for general liab ility coverage during the current year.
PRISM also covers the City’s workers' compensation claims up to statutory limits. The City has an SIR of $500,000 per claim. During the fiscal year ended June 30, 2022, the City contributed $518,098 for current year coverage.
The contributions made to each risk pool equal the ratio of their respective payrolls to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
The City has also purchased a Difference in Conditions insuranc e policy that includes earthquake coverage and provides coverage up to $25,000,000 per occurrence with a general deductible of $25,000 for claims other than flood and earthquake. Flood claims are subject to a minimum of $100,000 and earthquake claims have a d eductible of 5% of the insured value with a minimum deductible of $100,000. The City also has ancillary insurance policies , including Cyber Liability.
Vallejo Flood and Wastewater District—VFWD is a member of the California Sanitation Risk Management Authority which provides coverage up to $500,00 0 for general liability claims, subject to a deductible of $2,500. Excess public entity general liability insurance is obtained for coverage up to $15,000,000 associated with eith er sanitary sewer or storm drain operations. Auto liability is subject to a deductible of $1,000 with coverage up to $3,563,285.
California Sanitation Risk Management Authority also provides c overage up to $750,000 for workers’ compensation. Excess workers compensation insurance provides coverage up to $1,000,000. Pollution remediation insurance provides cove rage up to $1,000,000 and $5,000,000 in the a ggregate, with a deductible of $25,000. Property insurance provides coverage up to $187,777,466 with a deductible of $10,0 00. 111
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 14: Self-Insurance Program (Continued)
b. Liability for Uninsured Claims
The following is a summary of changes in the City’s recorded claims liabilities during the years ended June 30:
2022 2021
24,696,000$ 19,016,000$
5,527,464 10,466,820
(5,014,464) (4,786,820)
25,209,000$ 24,696,000$
6,072,448$ 6,136,888$ Current Portion
Beginning Balance
Current year claims and increase (decrease)
in prior estimates
Claims paid
Ending Balance
The claims payable are reported at their present value using ex pected future investment yield assumption of 3%. The undiscounted claims totaled $29,117,000 at June 30, 2022.
The City and VFWD have not significantly reduced insurance coverage from the prior year.
Furthermore, settlements have not exceeded insurance coverage for the past three fiscal years.
Note 15: Commitments and Contingencies
a. Litigation
The City is involved in various claims and litigation resulting from its normal operations.
The ultimate outcome of these matters is not presently determinable. In City management’s opinion these matters will not have significant adverse effect of the City’s financial position.
b. Federal and State Grant Programs
The City participates in several federal and State grant progra ms. These programs are subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be dete rmined at this time.
The City expects such amounts, if any, to be immaterial.
c. Encumbrances
The City uses an encumbrance system as an extension of normal b udgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year end are recorded as restricted, committed or assigned fund balance, depending on th e classification of the resources to be used to liquidate the encumbrance, since they d o not constitute expenditures or liabilities. Out standing encumbrances at year-e nd are automatically reappropriated for the following year. Unencumbered and unexpen ded appropriations lapse at year-end. Encumbrances outstanding by fund as of June 30, 2022 were as follows:
1,421,176$
84,977
91,826
3,095,406
1,115,625
Major Governmental Funds:
Non-Major Governmental Funds
General Fund
Housing Authority
Mare Island Conversion
Capital Outlay
112
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 15: Commitments and Contingencies (Continued)
d. Long Term Construction Contracts
In addition to the encumbrances discussed above, the City and V allejo Flood and Wastewater District have variou s ongoing capital projects that involve long-term construction contract s with progress payments billed and paid on a percentage-of-completion basis. Material outstanding construction commitments related to these contracts, excluding grant-funded projects, at June 30 , 2022 of City and VFWD amounted to approximately $7.3 million and $8.5 million, respectively.
e. American Rescue Plan Act (ARPA)
On March 11, 2021, President Biden signed into law the ARPA, which includes $350 billion in additional funding for state and local governments to provide economic relief in the wake of the COVID-19 pandemic and financial slowdown that resulted from it. The City was awarded $25.7 million of ARPA funds, and had received full payment of grant monies as of the fiscal year ended June 30, 2022. The funds are subject to g uidance specified in U.S. Department of Treasury's ARPA Interim Final Rule.
Note 16: Redevelopment Agency Dissolution and Successor Agency Activities
The City Council assumed the duties of the Successor Agency to the Former Vallejo Redevelopment Agency (Successor Agency) upon State redevelopmen t dissolution on February 1, 2012. Amendments to the State Health and Safety Code, enacted through ABx1 26 on June 28, 2011, AB1484 on June 27, 2012, and SB107 on September 11, 2015 suspended most redevelopment activities and charged successor agencies to retire redevelopment obligations and dispose of assets.
The activities of the Successor Agency are subject to review an d approval of an Oversight Board, which is comprised of seven members, including one member representing the City Council, one representi ng the former Redevelopment Agency (RDA) employees, and five members representing other taxing agencies within the Coun ty. Oversight Board actions are further subject to review and approval by the State Department of Finance (DOF).
The activities of the Successor Agency are reported in the Succ essor Agency to the Former Redevelopment Agency Privat e-Purpose Trust Fund, because activities are under the control of the Oversight Boar d. The City provides administrative services to the Successor Agency.
Cash and investments of the Successor Agency as of June 30, 2022 are discussed in Note 2. Information about other assets and liabilities of the S uccessor Agency as of June 30, 2022 is presented on the following pages.
a. Notes and Loans Receivable
Meyer Cookware Industries, Inc.
Pursuant to a Disposition and Development Agreement between the RDA and Meyer Cookware Industries, Inc., the former RDA paid certain development fees on behalf of Meyer totaling $1,500,000. Meyer agreed to repay $500,000 of these fees to the RDA over a 24-year period commencing in 1998. This loan to Meyer is secured by a corporate guarantee and is non-interest bearing. The final payment was ma de in the fiscal year ending June 30, 2018.
113
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 16: Redevelopment Agency Dissolution and Successor Agency Activities (Continued)
The obligation of Meyer to repa y the remaining $1,000,000 is co ntingent upon either on the sale of the property or the refinancing of the existing deb t. As a result, the $1,000,000 is not included as a receivable in the accompanying basic financial statements. Meyer has agreed to pay the RDA either 9% of the net sale proceeds upon a ny sale of the property as satisfaction in full of the d evelopment contribution, or net refinancing proceeds if such a refinancing should occur. Ten years following the issuance of the Certificate of Occupancy (1995), the participation in proceeds from the sale of property or refinancing has been reduced from 9% to 5%.
b. Capital Assets
The Successor Agency assumed the capital assets of the RDA as o f February 2012. All capital assets are valued at historical cost or estimated histo rical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.
Capital assets at June 30, 2022 were comprised of land of $189, 226 and Building and Improvements, net of accumulated depreciation, of $44,030. Curr ent year additions to accumulated depreciation were $4,193.
c. Long-Term Obligations
The Successor Agency assumed the long-term obligations of the f ormer RDA as of February 2012.
i. Current Year Transactions and Balances
Original Issue
Amount
Balance
June 30, 2021
Retirements/
Adjustments
Balance
June 30, 2022
Current
Portion
5,410,000$ 2,630,000 $ 240,000 $ 2,390,000 $ 255,000 $ 5,410,000 2,630,000 240,000 2,390,000 255,000 4,436,351 4,716,741 635,349 4,081,392 - 4,436,351 4,716,741 635,349 4,081,392 - 9,846,351$ 7,346,741$ 875,349$ 6,471,392$ 255,000$ Tax Allocation Bonds:
Total Other Obligations
Total Successor Agency Debt
Housing Set Aside
7.0%, due 10/1/31
Total Tax Allocation Bonds
Other Obligations
Adv ances from the City of Vallejo
ii. Tax Allocation Bonds
Vallejo Housing Set Aside – In August 2001, the RDA issued Tax Allocation Bonds in the amount of $5,410,000 to finance housing activities of the RDA and to repay a loan from the PFA. Semi-annual interest payments are due on April 1 and October 1 and annual principal payments are due October 1. The bonds are subj ect to mandatory sinking fund redemption and payment is made solely from, and secured by, housing set-aside tax increment revenues generated within the redevelopment project areas. 114
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 16: Redevelopment Agency Dissolution and Successor Agency Activities (Continued)
Pledge of Tax Revenues – As discussed above, the RDA has pledged all future tax increment revenues, less amounts required to be set aside in th e RDA’s Low and Moderate Income Housing Fund, for the repayment of the Tax Allocation Bonds. The pledge of all future tax increment revenues ends upon repayment of $3,286,350 debt service on the Bonds above, which is scheduled to occur in 2032. With the dissolution of the RDA discussed above, Tax Increment is no longer distributed and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. In fiscal year 2022, the Successor Agency received suffici ent RPTTF distributions to mee t all bond obligations for the year.
iii. Advances from the City
The loan balances as of June 30, 2022 are as follows:
Principal Accrued Interest Total
202,233$ 207,837$ 410,070$
169,112 244,101 413,213
1,433,702 1,824,407 3,258,109
162,805 880,147 1,042,952
- 647,510 647,510
Central 708,372 973,725 1,682,097
(871,177) (2,501,382) (3,372,559)
1,805,047$ 2,276,345$ 4,081,392$
Less Allowance for Doubtful Accounts
Hiddenbrooke Overpass Capital Project Fund
Bridge Construction Capital Projects Fund
Arts and Convention Center Capital Projects
General Fund:
Waterfront
Marina Vista
The loans bear simple interest of 3.00%. Repayment of these loans is governed by Health and Safety Code Section 34176(e)(6) and the maximum annual repa yment is limited based on calculations in that C ode Section. Repayment installme nts were approved by the State Department of Finance starting fiscal year 2016-17 th rough the annual ROPS process. Additional information about these advances can be found in Note 4h.
iv. Debt Service Requirements
Debt service requirements to maturity are shown below for all long-term debt, except the advances from the City, because the ultimate repayment term s cannot be determined at this time, as discussed above:
Ending June 30 Principal Interest
2023 255,000$ 158,375 $
2024 180,000 143,150
2025 190,000 130,200
2026 205,000 116,375
2027 220,000 101,500
2028-2032 1,340,000 246,750
Total 2,390,000$ 896,350 $
115
CITY OF VALLEJO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 16: Redevelopment Agency Dissolution and Successor Agency Activities (Continued)
d. Commitments and Contingencies
i. Oversight Board and State Approval of Enforceable Obligation s
The Successor Agency prepares an annual Recognized Obligation Payment Schedule (ROPS) that contains proposed expenditures for the upcoming fis cal year. All payment obligations are subject to annual review and re-approva l by the Oversight Board and the State DOF. The City expects future adjustments by the Oversight Board and State DOF, if any, to be immaterial. 116
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 97,207,243$ 102,622,222$ 105,232,516$ 2,610,294$ Licenses, permits and fees 3,857,717 3,964,064 3,841,359 (122,705) Intergovernmental 5,388,156 32,344,349 7,427,920 (24,916,429) Charges for services 9,148,715 9,547,301 9,569,847 22,546 Use of money and property 1,804,917 1,784,974 (1,061,273) (2,846,247) Fines and forfeitures 1,645,000 994,403 991,048 (3,355) Other 386,128 386,128 503,727 117,599
Total Revenues 119,437,876 151,643,441 126,505,144 (25,138,297) EXPENDITURES:
Current:
Legislative and advisory 297,554 317,395 245,690 71,705 Executive 4,218,692 4,682,605 4,345,600 337,005
Finance 2,142,255 1,994,107 1,805,651 188,456
Human resources 2,393,281 2,379,694 1,796,910 582,784
Law 1,858,188 1,722,041 1,699,110 22,931
Community development 1,639,824 1,777,678 1,207,594 570,084 Planning and development services 4,174,912 3,982,814 3,346,238 636,576 Fire services 31,207,511 31,996,992 30,648,598 1,348,394 Police services 53,917,120 53,329,406 47,569,422 5,759,984 Public works 9,239,133 8,238,779 6,998,395 1,240,384
Non departmental 1,356,509 6,711,063 6,776,925 (65,862) Debt service:
Principal 286,660 792,964 285,041 507,923
Lease payments - - 11,794 (11,794)
Interest and fiscal charges - - 118,451 (118,451)
Total Expenditures 112,731,639 117,925,538 106,855,419 11,070,119 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 6,706,237 33,717,903 19,649,725 (14,068,178)
OTHER FINANCING SOURCES (USES)
Transfers in 512,487 512,487 447,104 (65,383)
Transfers (out) (7,189,354) (26,964,656) (17,349,829) 9,614,827 Total Other Financing Sources (Uses) (6,676,867) (26,452,169) (16,902,725) 9,549,444 NET CHANGE IN FUND BALANCES 29,370$ 7,265,734$ 2,747,000 (4,518,734)$ Fund Balance, July 1 40,384,446
Fund Balance, June 30 43,131,446$
117
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 23,713,098$ 24,370,040$ 21,274,404$ (3,095,636)$ Use of money and property 12,690 12,690 28,094 15,404 Other 36,000 36,000 45,726 9,726 Total Revenues 23,761,788 24,418,730 21,348,224 (3,070,506) EXPENDITURES:
Current:
Community development 24,146,162 25,053,059 21,301,752 3,751,307 Debt service:
Principal retirement - - 2,644 (2,644) Interest and fiscal charges - - 16 (16) Total Expenditures 24,146,162 25,053,059 21,304,412 3,748,647 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (384,374) (634,329) 43,812 678,141
OTHER FINANCING SOURCES (USES)
Transfers in 140,000 140,000 140,000 - Total Other Financing Sources (Uses) 140,000 140,000 140,000 - NET CHANGE IN FUND BALANCES * (244,374)$ (494,329)$ 183,812 678,141$ Fund Balance, July 1 16,451,346
Fund Balance, June 30 16,635,158$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance.
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2022
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 118
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2022 2021 2020 2019 2018
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 3 0, 2018 June 30, 2017 Total OPEB Liability
Service cost 919,000$ 912,000 $ 889,000 $ 988,000 $ 965,000 $ Interest on the total OPEB liability 2,576,000 2,668,000 2,624,000 2,886,000 2,831,000 Differences between expected and actual experiences - (2, 947,000) - (5,289,000) - Changes in assumptions - 911,000 - (1,054,000) - Benefit payments (2,893,000) (2,886,000) (2,909,000) (2,997,000) (2,957,000) Net change in total OPEB liability 602,000 (1,342,000) 604,000 (5,466,000) 839,000 Total OPEB liability - beginning 38,698,000 40,040,000 39,436,000 44,902,000 44,063,000 Total OPEB liability - ending (a) 39,300,000 38,698,000 40,040,000 39,436,000 44,902,000 Plan Fiduciary Net Position
Contribution - employer 2,919,000 2,914,000 2,941,000 4,340,000 6,468,000 Net investment income 6,249,000 776,000 1,277,000 1,437,000 1,479,000 Benefit payments (2,893,000) (2,886,000) (2,909,000) (2,997,000) (2,957,000) Administrative expense (35,000) (39,000) (36,000) (76,000) (42,000) Net change in plan fiduciary net position 6,240,000 765,000 1,273,000 2,704,000 4,948,000 Plan fiduciary net position - beginning 22,724,000 21,959,000 20,686,000 17,982,000 13,034,000 Plan fiduciary net position - ending (b) 28,964,000 22,724,000 21,959,000 20,686,000 17,982,000 Net OPEB Liability/(Assets) - ending (a) - (b) 10,336,000$ 15,974,000$ 18,081,000$ 18,750,000$ 26,920,000$ Plan fiduciary net position as a percentage of the total OPEB liability 73.70% 58.72% 54.84% 52.45% 40.05% Covered-employee payroll 64,879,000$ 61,630,000 $ 58,767,558 $ 55,348,748 $ 54,537,858 $ Net OPEB liability as a percentage of covered-employee payroll 15.93% 25.92% 30.77% 33.88% 49.36% (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
Schedule of Changes in the Net OPEB Liability and Related Ratios City's Retiree Medical Benefits (OPEB)
Agent Multiple-Employer Plan
119
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2022 2021 2020 2019 2018
2,114,000$ 2,442,000 $ 2,382,000 $ 2, 321,000$ 2,994,000 $ (2,860,000) (2, 919,000) (2,914,000) (2,941, 000) (4, 340,000) (746,000)$ (477,000) $ (532,000) $ (620,000) $ (1, 346,000)$ 64,940,000$ 64,879,000 $ 61,630,000 $ 58,767,558 $ 55,348,748 $
4.40% 4.50% 4.73% 5.00% 7.84%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount rate
Inflation
Medical Trend
Mortality
Mortality Improvement
All Other Assumptions
City's Retiree Medical Benefits (OPEB)
Agent Multiple-Employer Plan
18-year fixed period on average for FY2021/22
Level percent of pay
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Schedule of Contributions
Actuarially Determined Contribution
Same as those used to determine the total OPEB liability Post-retirement mortality projected fully generational with Scale MP-2020 (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2022 were from the June 30, 2020 actuarial valuation.
Entry Age Normal, level percent of payroll
Investment gains and losses spread over 5 year rolling period Medicare (Non-Kaiser) - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 CalPERS 1997-2015 experience study
Non-Medicare -7% for 2022, decreasing to an ultimate rate of 4.0% in 2076
6.75%
2.75%
Medicare (Kaiser) - 5% for 2022, decreasing to an ultimate rate of 4.0% in 2076 120
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2022 2021 2020 2019 2018 2017
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Total OPEB Liability
Service cost 916,059$ 352,376$ 362,299$ 351,747$ 341,502$ 323,479$ Interest on the total OPEB liability 1,388,866 1,456,214 1,296,524 1,252,722 1,209,603 1,166,959 Differences between expected and actual experiences 73,206 (603,460) 1,721,805 - (6,230) - Changes in assumptions - 3,681,452 - - - -
Benefit payments (1,487,182) (1,276,392) (1,041,544) (981,223) (940,234) (836,221) Net change in total OPEB liability 890,949 3,610,190 2,339,084 623,246 604,641 654,217 Total OPEB liability - beginning 23,981,726 20,371,536 18,032,452 17,409,206 16,804,565 16,150,348 Total OPEB liability - ending (a) 24,872,675 23,981,726 20,371,536 18,032,452 17,409,206 16,804,565 Plan Fiduciary Net Position
Contribution - employer 1,987,182 1,776,392 1,541,544 1,481,223 1,440,234 1,336,221 Contribution - member 210,111 214,047 191,439 173,100 156,902 171,665 Net investment income (2,056,062) 3,091,825 352,141 1,070,440 83,311 794,510 Benefit payments (1,487,182) (1,276,392) (1,041,544) (981,223) (940,234) (836,221)
Administrative expense (2,780) (2,635) (2,780) (2,348) (3,094) (36,633) Other changes in net position - (589) (84,912) - - -
Net change in plan fiduciary net position (1,348,731) 3,802,648 955,888 1,741,192 737,119 1,429,542 Plan fiduciary net position - beginning 14,964,995 11,162,347 10,206,459 8,465,267 7,728,148 6,298,606 Plan fiduciary net position - ending (b) 13,616,264 14,964,995 11,162,347 10,206,459 8,465,267 7,728,148 Net OPEB Liability/(Assets) - ending (a) - (b) 11,256,411$ 9,016,731$ 9,209,189$ 7,825,993$ 8,943,939$ 9,076,417$ Plan fiduciary net position as a percentage of the total OPEB liability 54.74% 62.40% 54.79% 56.60% 48.63% 45.99% Covered-employee payroll 10,603,644$ 10,393,617$ 9,670,727$ 10,102,073$ 8,334,837$ 8,022,329$ Net OPEB liability as a percentage of covered-employee payroll 106.16% 86.75% 95.23% 77.47% 107.31% 113.14% Notes to Schedule:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2017 was the first year of implementation. Future years' information will be displayed upto 10 years as information becomes available.
Schedule of Changes in the Net OPEB Liability and Related Ratios Vallejo Flood and Wastewater District
Agent Multiple-Employer Plan
Changes of assumptions: For the measurement period ended June 30, 2022, there were no changes in assumptions. For measurement period endedJune 30,2021, the discount rate was changed from 7.25 percent (net of administrative expenses) to 5.75 percent and the inflation rate changed from 2.75 percent to 2.25 percent. The discount rate was changed from 5.09 percent (net of administrative expense)to
5.52 percent for the measurement period ended June 30, 2018. To maintain consistency with CalPERS demographic rates, rates of retirement, termination disability, andmortality were updated for the measurement period ended June 30, 2020.
121
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2022 2021 2020 2019 2018 2017
1,740,303$ 1,143,845$ 1,110,529$ 1,082,230$ 1,050,709$ 1,092,974$ (1,987,182) (1,776,392) (1,541,544) (1,481,223) (1,440,234) (1,336,221) (246,879)$ (632,547)$ (431,015)$ (398,993)$ (389,525)$ (243,247)$ 10,603,644$ 10,393,617$ 9,670,727$ 10,102,073$ 8,334,837$ 8,022,329$
18.74% 17.09% 15.94% 14.66% 17.28% 16.66%
Vallejo Flood and Wastewater District
Schedule of Contributions
Agent Multiple-Employer Plan
(1) Schedule is intended to show information for ten years. Fiscal year 2017 was the first year of implementation, therefore only six years are shown. Additional years' information will be displayed as itbecomes available.
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Actuarially Determined Contribution
122
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
For the Fiscal Year Ended June 30 2022 2021 2020 2019 2018 2017 Annual money-weighted rate of return, net of investment expense -13.58% 27.42% 3.40% 12.40% 5.70% 12.20% Notes to Schedule:
**Fiscal year 2017 was the first year of implementation Schedule of Investment Returns
Vallejo Flood and Wastewater District
Last 10 Years**
123
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 2020 2019
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability
4,651,311$ 4,388,206 $ 4,029,310 $ 4,397,962$ 20,921,652 20,357,309 1 9,881,349 19,468,568 1,213,833 (7,463) (1,474,483) (1,082,338) - - - (1,680,478) (18,594,010) (17,801,978) (17,049,717) (15,819,384) Net change in total pension liability 8,192,786 6,936,074 5,386,459 5,284,330 Total Pension Liability-beginning 298,368,045 291,431,971 286,045,512 280,761,182 Total Pension Liability-ending (a) 306,560,831$ 298,368,045 $ 291,431,971$ 286,045,512$ Plan Fiduciary Net Position
11,062,044$ 10,258,622$ 9,173,697$ 7,923,395$ 2,145,220 2,184,791 1,863,321 1,839,196 41,389,429 8,999,002 11,419,992 14,227,594 (18,594,010) (17,801,978) (17,049,717) (15,819,384) - - (150,117) (413) - - 413 (501,696) (185,261) (256,680) (126,270) (264,187) Net change in plan fiduciary net position 35,817,422 3,383,757 5,131,319 7,404,505 Plan Fiduciary Net Position-beginning 185,457,938 182,074,181 176,942,862 169,538,357 Plan Fiduciary Net Position-ending (b) 221,275,360$ 185,457,938$ 182,074,181$ 176,942,862$ Net pension liability-ending (a) - (b) 85,285,471$ 112,910,107$ 109,357,790$ 109,102,650$ Plan fiduciary net position as a percentage of the total pension liability 72.18% 62.16% 62.48% 61.86% Covered payroll 27,081,533$ 26,137,221$ 22,605,141$ 22,403,043$ Net pension liability as a percentage of covered payroll 314.92% 431.99% 483.77% 487.00% Notes to Schedule:
Net investment income
Benefit payments
Plan to plan resource movement
Administrative expense
Other miscellaneous expense
Agent Multiple-Employer Defined Benefit Pension Plan
Miscellaneous Plan
**Historical information is required only for measurement periods for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.
Changes of Assumptions: In 2019, 2020 and 2021, there were no changes. In 2018, demographic assumptions and inflation rates were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amount reported were based on the 7.5 percent discount Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2021. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Service Cost
Interest on total pension liability
During the Measurement Period
Schedule of Changes in the Net Pension Liability and Related Ratios Last 10 Years**
Differences between expected and actual experience
Changes in assumptions
Benefit payments, including refunds of employee contributions Contributions-employer
Contributions-employee
124
2018 2017 2016 2015
June 30, 2017 June 30 , 2016 June 30, 2015 June 30, 2014 4,404,558$ 3,796,340$ 3,687,869$ 3,707,801$ 19,104,676 18,913,669 18,270,528 17,746,245 (2,220,738) 1,132,193 (1,151,730) - 14,463,351 - (4,077,633) - (15,488,076) (15,103,869) (14,371,625) (13,630,142) 20,263,771 8,738,333 2,357,409 7,823,904 260,497,411 251,759,078 249,401,669 241,577,765 280,761,182$ 260,497,411$ 251,759,078$ 249,401,669$ 7,619,965$ 6,951,327$ 5,947,979$ 5,801,786$ 1,922,977 1,920,952 1,825,329 1,849,941 17,221,783 810,323 3,661,248 24,872,487 (15,488,076) (15,103,869) (14,371,625) (13,630,142) - (576) - - - - - - (230,440) (99,958) (184,697) - 11,046,209 (5,521,801) (3,121,766) 18,894,072 158,492,148 164,013,949 167,135,715 148,241,643 169,538,357$ 158,492,148 $ 164,013,949$ 167,135,715 $ 111,222,825$ 102,005,263 $ 87,745,129 $ 82,265,954$
60.39% 60.84% 65.15% 67.01%
20,887,797$ 21,778,435$ 20,358,941$ 19,462,126$ 532.48% 468.38% 430.99% 422.70%
125
126
127
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 2020 2019
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability
6,840,081$ 6,916,858$ 6,733,397$ 6,785,852$ 36,031,428 35,436,006 3 4,420,847 33,457,665 (4,341,410) 1,732,575 1,076,363 (2,324,275) - - - (2,031,814) (30,022,902) (29,268,078) (28,292,968) (27,352,200) Net change in total pension liability 8,507,197 14,817,361 13,937,639 8,535,228 Total Pension Liability-beginning 519,868,877 505,051,516 491,113,877 482,578,649 Total Pension Liability-ending (a) 528,376,074$ 519,868,877 $ 505,051,516 $ 491,113,877$ Plan Fiduciary Net Position
18,763,982$ 16,867,013$ 15,651,082$ 13,510,984$ 2,880,179 2,495,800 2,495,658 2,402,540 71,416,960 15,405,724 19,716,865 24,365,266 (30,022,902) (29,268,078) (28,292,968) (27,352,200) - - 150,117 (712) - - 712 (867,978) (319,139) (443,256) (217,595) (457,067) Net change in plan fiduciary net position 62,719,080 5,057,203 9,503,871 11,600,833 Plan Fiduciary Net Position-beginning 319,477,767 314,420,564 304,916,693 293,315,860 Plan Fiduciary Net Position-ending (b) 382,196,847 $ 319,477,767 $ 314,420,564 $ 304,916,693 $ Net pension liability-ending (a) - (b) 146,179,227 $ 200,391,110 $ 190,630,952 $ 186,197,184 $ Plan fiduciary net position as a percentage of the total pension liability 72.33% 61.45% 62.26% 62.09% Covered payroll 23,926,199 $ 21,941,307$ 21,152,620$ 20,349,393 $ Net pension liability as a percentage of covered payroll 610.96% 913.31% 901.22% 915.00% Notes to Schedule:
Last 10 Years**
Agent Multiple-Employer Defined Benefit Pension Plan
Safety Plan
Service Cost
Interest on total pension liability
**Historical information is required only for measurement periods for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.
Changes of Assumptions: In 2019, 2020 and 2021, there were no changes. In 2018, demographic assumptions and inflation rates were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amount reported were based on the 7.5 percent discount rate.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2021. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
During the Measurement Period
Schedule of Changes in the Net Pension Liability and Related Ratios Differences between expected and actual experience
Changes in assumptions
Benefit payments, including refunds of employee contributions Contributions-employer
Contributions-employee
Net investment income
Benefit payments
Plan to plan resource movement
Administrative expense
Other miscellaneous expense
128
2018 2017 2016 2015
June 30, 2017 June 30 , 2016 June 30, 2015 June 30, 2014 7,141,768$ 6,037,920$ 5,665,531$ 5,410,714$ 32,842,161 32,721,025 31,830,406 30,833,294 (8,355,331) (675,259) 463,336 - 26,697,946 - (7,623,305) - (26,330,644) (25,766,118) (24,963,470) (23,513,099) 31,995,900 12,317,568 5,372,498 12,730,909 450,582,749 438,265,181 432,892,683 420,161,774 482,578,649$ 450,582,749$ 438,265,181$ 432,892,683$ 12,539,589$ 12,077,355$ 10,188,345$ 9,034,348$ 2,468,689 2,498,407 2,574,737 2,517,611 29,790,194 1,329,651 6,292,622 43,593,695 (26,330,644) (25,766,118) (24,963,470) (23,513,099) - - (115) - - - - - (400,264) (173,865) (320,958) - 18,067,564 (10,034,570) (6,228,839) 31,632,555 275,248,296 285,282,866 291,511,705 259,879,150 293,315,860$ 275,248,296 $ 285,282,866$ 291,511,705 $ 189,262,789$ 175,334,453 $ 152,982,315$ 141,380,978 $
60.78% 61.09% 65.09% 67.34%
19,733,377$ 21,563,045$ 20,922,604 $ 19,082,521$ 959.10% 813.12% 731.18% 740.89%
129
130
131
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 2020 2019
Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Plan Proportion of the Net Pension Liability 0.86588% 0.61886% 0.60568% 0.59373% Plan Proportionate Share of the Net Pension Liability 16,441,417$ 26,104,014$ 24,254,485$ 22,376,039$ Plan Covered Payroll 10,393,617$ 8,773,461$ 10,102,073$ 8,773,484$ Plan Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 158.19% 297.53% 240.09% 255.04% The Pension Plan's (PERF-C) Fiduciary Net Position as a Percentage of the Total Pension Liability 90.49% 75.10% 75.30% 73.69% Notes to Schedule:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown.
Changes of Assumptions
: In 2021, 2020 and 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amount reported were based on the 7.5 percent discount rate.
Vallejo Flood and Wastewater District
of the Net Pension Liability and Related Ratios
Schedule of the Plan's Proportionate Share
Last 10 Years**
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Benefit Changes: There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the measurement dates. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 132
2018 2017 2016 2015
June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
0.57650% 0.56725% 0.14712% 0.18915%
22,725,984$ 19,705,443$ 15,432,136$ 11,769,980$ 8,334,837$ 8,022,329$ 7,940,275$ 7,602,013$ 272.66% 245.63% 194.35% 154.83%
73.31% 74.06% 78.40% 79.82%
133
CITY OF VALLEJO
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 2020 2019
Actuarially Determined Contribution 3,307,047$ 3,026,216$ 2,668,281$ 984,716$ Contribution in Relation to the Actuarially Determined Contribution (3,307,047) (3,026,216) (2,668,281) (984,716) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll 10,603,644$ 10,393,617$ 9,670,727$ 8,773,484$ Contributions as a Percentage of Covered Payroll 31.19% 29.12% 27.59% 11.22% (2) The District is required to contribute to the Safety Rate Plan even though there is no Covered Payroll.
Note to Schedule:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below:
Asset valuation method
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return
Retirement Age
Mortality The mortality table used was developed based on specific data. The table includes 15 yearsof mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details onthis table, please refer to the 2017 experience study report.
All other actuarial assumptions used in the June 30, 2017 valuation were based on the resultsof an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS websiteat www.calpers.ca.gov under Forms and Publications.
Schedule of Plan Contributions
Varies by Entry Age and Service
2.50%
2.50%
June 30, 2019
Direct rate smoothing
Vallejo Flood and Wastewater District
Last 10 Years**
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
7.15% (net of pension plan investment and administrative expenses, includes inflation) Entry Age Normal Cost Method
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year ofimplementation, therefore only eight years are shown.
134
2018 2017 2016 2015
911,598$ 899,758$ 1,064,678$ 1,274,837$ (911,598) (899,758) (1,064,678) (1,274,837)
-$ -$ -$ -$ 8,334,837$ 8,022,329$ 7,924,588$ 7,693,775$
10.94% 11.22% 13.44% 16.57%
135
THIS PAGE INTENTIONALLY LEFT BLANK
136
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Solid Waste Disposal Fund #135 accounts for monies received from garbage collection fines and expended on enforcing major portions of the mandatory garbage subscription ordinance. This fund is also used for the mandatory city-wide recycling program and related recycling program grants.
Assets Seizure Fund #139 accounts for monies received from police confiscated drug money and property. Funds are held until final court disposition is recei ved. The funds are then restricted for police related activities only.
State Gas Tax Fund #133 accounts for monies received from the state gas tax allocation and expended on construction, improvement and maintenance of public streets and related infrastructure.
Community Development Block Grant Fund #101 accounts for monies received and expended by the City as a participant in the Federal Community Development Block Grant program.
HOME Program Fund #102 accounts for monies received and expended by the City as a part icipant in the Federal HOME Grant program.
Hiddenbrooke Community Services District Fund #138 accounts for monies collected as the result of special taxes which are used to fund a variety of municipal services provided to the residents of the Hiddenbrooke development.
Mare Island Base Reuse Fund #107 accounts for monies received from tenants placed on the former Mare Island Naval Shipyard during the conversion process. It al so accounts for operating costs to support ongoing development programs on the island. Funds are r estricted for use on the island.
Mare Island CFD 2002 Fund #112 accounts for monies received from general taxes and from property owner assessments for maintenance and repair of infrastructure and facilities on the former Mare Island Naval Shipyard.
Mare Island CFD 2005 1A (State) Fund #113 accounts for transactions of this district formed under state statute to provide municipal services within the district.
Mare Island CFD 2005 1B (Local) Fund #114 accounts for transactions o f this district formed under local statute to provide municipal services within the district.
Hazmat Revolving Fund #143 accounts for monies received and expended for hazardous materia l removal.
Justice Assistance Grant Fund #149 accounts for revenues received from the Justice Assistance Grant.
Supplemental Law Enforcement Grant Fund #151 accounts for revenues received from the Supplemental Law Enforcement Services Grant.
Traffic Offender/Vehicle Impound Program Fund #140 accounts for monies received and expended from vehicle impound fees.
137
NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED)
Landscape Maintenance Districts Fund #161-188 accounts for special assessments on property within district boundaries for the restricted purpose of providing landscape services within the specified districts.
Emergency Disaster Fund #109 accounts for monies received and expended for activities relate d to damages from the 2014 South Napa earthquake and other emergency disaster funds, including federal and State grant revenues.
Office of Traffic Safety Fund #146 accounts for the award and expenditure of grants from the California Office of Traffic Safety.
Outside Services Fund #129 accounts for one-time billings to third parties and the related expenditures of these funds. The primary activity is development review.
Administrative Trust Fund #601 accounts for funds held for special programs, including perform ance bonds for construction projects.
State Lands Fund #134 accounts for lease rentals generated from City-owned waterfront property subject to State Lands Commission restrictions.
Neighborhood Stabilization Program Fund #103 accounts for monies received and expended by the City as a participant in the Federal NSP Grant.
Navigation Center Fund #191 accounts for monies received and administration of the Vallejo Homeless Navigation Center.
NLP Nuisance Abatement Fund #147 accounts for monies received and used to demolish dangerous buildings or prevent escalating nuisance conditions.
CAPITAL PROJECTS FUNDS
Transportation Impact Mitigation Fund #203 accounts for monies received from the Transportation Impact fee imposed on commercial and residential development an d expended on transportation improvements necessitated by such development.
Hiddenbrooke Overpass Fund #211 accounts for monies received from the Hiddenbrooke Overpass fee imposed on commercial and residential development within the Hiddenbrooke development area.
These funds will be used to renovate the existing Hiddenbrooke overpass.
Bridge Construction Fund #204 accounts for monies received from the Bridge Construction Development Tax Ordinance.
Northgate Fee & Benefit District #94-1 Fund #208 accounts for monies received from the development of the Northgate District #94-1 and expended for pu blic improvements within that development area.
138
NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED)
A r t s a n d C o n v e n t i o n C e n t e r F u n d # 2 0 6 accounts for the Empress Theatre advances to the former Redevelopment Agency.
Mare Island CFD 2005 1A Facilities Fund #213 accounts for transactions of this district formed under state statute to provide municipal facilities within the district.
Traffic Congestion Relief Fund #219 accounts for street maintenance and capital expenditures to be paid from State Proposition 42 allocations.
Capital Grants & Contributions Fund #221 accounts for capital project expenditures to be reimbursed from by granting agenc ies, developers, or other third parties.
Neighborhood Parks (GVRD) Fund #137 accounts for park development impact fee revenue and for contributions to the Greater Vallejo Recreation District for park improvements.
Vallejo Station Capital Projects Fund #222 accounts for grants received to support construction of a new Transit Center and related parking structure in downtown Vallejo.
Long-Term Maintenance Fund #223 accounts for revenues received from cell tower leases for use on long term repairs and maintenance expenditures.
Columbus Parkway Improvements Fund #224 accounts for monies received from a developer for the Columbus Parkway widening project.
Empress Theater Fund #225 accounts for the maintenance of Empress Theater.
Road Maintenance and Rehabilitation Act Fund #226 accounts for street maintenance and capital projects to be paid from Senate Bill (SB) 1 allocation.
Waterfront History Park Capital Project Fund #227 accounts for the administration of funds allocated by City Council and donations made to the Waterfront History Park Project.
DEBT SERVICE FUND
Certificates of Participation Fund #-Various accounts for the accumulation of lease revenue and the payments of annual General Fund debt service requirements. Debt issues include the 1999, 2000, 2002, and 2003 certificates of participation, which were restru ctured in 2011 into UBOC Reimbursement Loan Obligations A and B.
PERMANENT FUND
McCune Collection Fund #603 accounts for monies held for the Library which consists of donations and sales of rare books to maintain the McCune book collection. The principal is invested and interest earnings are available to support the McCune Fund Activities.
139
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments 353,225$ 332,978$ 38,562$ -$ Receivables:
Accounts 37,381 - 617,836 663 Notes and loans - - - 1,848,684 Accrued interest - - - - Leases - - - - Due from other governments - - 35,362 656,947 Restricted assets:
Cash and investments with fiscal agents - - - - Total Assets 390,606$ 332,978$ 691,760$ 2,506,294$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities 36,037$ - $ 220,875$ 55,727$ Unearned revenues 354,569 - - - Deposits payable - 260,294 - - Due to other governments - 7,353 - - Due to other funds - - 288,953 601,883 Total Liabilities 390,606 267,647 509,828 657,610 Deferred Inflows of Resources:
Unavailable revenues - - - - Deferred inflows for leases - - - - Total Deferred Inflows of Resources - - - - Fund Balances (Deficits):
Nonspendable - - - - Restricted - 65,331 181,932 1,848,684 Committed - - - - Assigned - - - - Total Fund Balances (Deficits) - 65,331 181,932 1,848,684 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 390,606$ 332,978$ 691,760$ 2,506,294$ Special Revenue Funds
Solid Waste
Disposal Fund
#135
Asset Seizure
Fund #139
State Gas Tax
Fund #133
Community
Development
Block Grant
Fund #101
140
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
532,856$ 3,832,615 $ 480,712 $ 5,235,212 $ 27,477 - - 114,202 6,124,271 - - - - - 98 - - - 136,903 - - - - - - - - - 6,684,604$ 3,832,615 $ 617,713 $ 5,349,414 $ 1,000$ 60,830 $ 1,379 $ 37,735$ - 306,370 - 12,685 - - 7,785 - 26,614 - - - - - - - 27,614 367,200 9,164 50,420 23,750 - - - - - 141,626 - 23,750 - 141,626 - - - - - 6,633,240 3,465,415 - 5,298,994 - - 466,923 - - - - - 6,633,240 3,465,415 466,923 5,298,994 6,684,604$ 3,832,615 $ 617,713 $ 5,349,414 $ HOME Program
Fund #102
Hiddenbrooke
Community
Services
District Fund
#138
Mare Island
Base Reuse
Fund #107
Mare Island
CFD 2002 Fund
#112
Special Revenue Funds
141
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
373,161$ 1,255,893 $ 53,195 $ - $ - - 11,425 - - - - - - - - - - - - - - - - 172,077 - - - - 373,161$ 1,255,893 $ 64,620 $ 172,077 $ 36,430$ 26,357 $ 6,842 $ 30,455$ - - - - - - - - - - - - - - - 141,622 36,430 26,357 6,842 172,077 - - - - - - - - - - - - - - - - 336,731 1,229,536 57,778 - - - - - - - - - 336,731 1,229,536 57,778 - 373,161$ 1,255,893 $ 64,620 $ 172,077 $ Special Revenue Funds
Mare Island
CFD 2005 1A
(State) Fund
#113
Mare Island
CFD 2005 1B
(Local) Fund
#114
Hazmat
Revolving Fund
#143
Justice
Assistance
Grant Fund
#149
142
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
453,498$ 99,425 $ 17,198,669$ 828,587 $ - - - 2,482 - - - - - - - - - - - - - - - 2,301,492 - - - - 453,498$ 99,425 $ 17,198,669$ 3,132,561 $ 96,851$ - $ 373,648$ 188,499$ - - - 392,230 - - - - - - - - - - - 1,922,445 96,851 - 373,648 2,503,174 - - - - - - - - - - - - - - - - 356,647 99,425 16,825,021 - - - - 629,387 - - - - 356,647 99,425 16,825,021 629,387 453,498$ 99,425 $ 17,198,669$ 3,132,561 $ Special Revenue Funds
Supplemental
Law
Enforcement
Grant Fund
#151
Traffic Offender /
Vehicle Impound
Program Fund
#140
Landscape
Maintenance
Districts Fund
#161-188
Emergency
Disaster Fund
#109
143
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
-$ 943,340$ 334,079 $ 21,244 $ - 34,627 - - - - - - - - - 44,437 - - - 4,950,393 3,230 - - - - - - - 3,230$ 977,967 $ 334,079 $ 5,016,074 $ 345$ 13,983 $ 2,567 $ 19,857$ - - - - - 963,984 331,512 1,387 - - - - 2,885 - - - 3,230 977,967 334,079 21,244 - - - - - - - 4,859,641 - - - 4,859,641 - - - - - - - 135,189 - - - - - - - - - - - 135,189 3,230$ 977,967 $ 334,079 $ 5,016,074 $ Special Revenue Funds
Office of Traffic
Safety Fund
#146
Outside
Services Fund
#129
Administrative
Trust Fund #601
State Lands
Fund #134
144
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Capital Projects
Funds
-$ 5,050,290$ 281,639 $ 3,603,202 $ 961 - - - 2,214,862 - - 89,088 - - - - - - - - - - - - - - - - 2,215,823$ 5,050,290 $ 281,639 $ 3,692,290 $ -$ - $ - $ 4,480$ - - - - - - - - - - - - 6,883 - - - 6,883 - - 4,480 - - - - - - - - - - - - - - - - 2,208,940 5,050,290 - 3,687,810 - - 281,639 - - - - - 2,208,940 5,050,290 281,639 3,687,810 2,215,823$ 5,050,290 $ 281,639 $ 3,692,290 $ Special Revenue Funds
Neighborhood
Stabilization
Program Fund
#103
Navigation
Center #191
NLP Nuisance
Abatement
Fund #147
Transportation
Impact
Mitigation Fund
#203
145
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
7,557,755$ 201,668 $ 238,213 $ 78,100 $ - - - - 410,070 413,213 - 3,258,109 - - - - - - - - - - - - - - - - 7,967,825$ 614,881 $ 238,213 $ 3,336,209 $ 13,628$ - $ - $ -$ - - - - - - - - - - - - - - - - 13,628 - - - 207,837 244,101 - 1,824,407 - - - - 207,837 244,101 - 1,824,407 - - - - 7,746,360 370,780 238,213 - - - - - - - - 1,511,802 7,746,360 370,780 238,213 1,511,802 7,967,825$ 614,881 $ 238,213 $ 3,336,209 $ Capital Projects Funds
Hiddenbrooke
Overpass Fund
#211
Bridge
Construction
Fund #204
Arts and
Convention
Center Fund
#206
Northgate Fee
& Benefit
District #94-1
Fund #208
146
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
1,725,338$ 2,809,299 $ 174,818 $ 1,092,121 $ - - - - - - - 187,657 - - - - - - - - - - 5,394,745 - - - - - 1,725,338$ 2,809,299 $ 5,569,563 $ 1,279,778 $ 3,569$ 2,182 $ 709,917 $ -$ - - 174,818 - - - - - - - - - - - 4,586,839 - 3,569 2,182 5,471,574 - - - - 49,264 - - - - - - - 49,264 - - - - 1,721,769 2,807,117 97,989 1,230,514 - - - - - - - - 1,721,769 2,807,117 97,989 1,230,514 1,725,338$ 2,809,299 $ 5,569,563 $ 1,279,778 $ Capital Projects Funds
Mare Island
CFD 2005 1A
Facilities Fund
#213
Traffic
Congestion
Relief Fund
#219
Capital Grant &
Contribution
Fund #221
Neighborhood
Park-Dev Fee
Fund #137
147
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
362,540$ 2,009,774 $ 17,586 $ 4,718,121 $ - - - - - - - - - - - - - - - - - - - 437,755 - - - - 362,540$ 2,009,774 $ 17,586 $ 5,155,876 $ 9,886$ - $ 5,833$ -$ - - - - - - - - - - - - - - - - 9,886 - 5,833 - - - - - - - - - - - - - - - - - - - - 5,155,876 156,623 2,009,774 - - 196,031 - 11,753 - 352,654 2,009,774 11,753 5,155,876 362,540$ 2,009,774 $ 17,586 $ 5,155,876 $ Capital Projects Funds
Road
Maint/Rehab
Act Fund #226
Empress
Theater Fund
#225
Longterm
Maintenance
Fund #223
Columbus
Parkway
Improvement
Fund #224
148
CITY OF VALLEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Deferred inflows for leases
Total Deferred Inflows of Resources
Fund Balances (Deficits):
Nonspendable
Restricted
Committed
Assigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Capital
Projects Funds
Debt Service
Fund
Permanent
Fund
Total
Governmental
Funds
85,147$ - $ 104,580$ 62,477,442 $ - - - 847,054 - - - 14,545,954 - - - 44,535 - - - 5,087,296 - - - 9,001,608 - 263,681 - 263,681 85,147$ 263,681 $ 104,580 $ 92,267,570 $ -$ - $ - $ 1,958,912$ - - - 1,240,672 - - - 1,564,962 - - - 33,967 - - - 7,551,510 - - - 12,350,023 - - - 2,349,359 - - - 5,001,267 - - - 7,350,626 - - 64,625 64,625 - 263,681 39,955 67,153,217 85,147 - - 3,629,493 - - - 1,719,586 85,147 263,681 104,580 72,566,921 85,147$ 263,681 $ 104,580 $ 92,267,570 $ McCune
Collection Fund
#603
Waterfront
History Park
Fund #227
Certificates of
Participation
Fund #-Various
149
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes -$ - $ - $ -$ Licenses, permits, and fees 15,464 - - - Intergovernmental 28,162 - 2,829,385 989,612 Charges for services 1,287,121 - 1,563,033 - Use of money and property (12,645) (10,102) - 3,130 Fines and forfeitures 21,707 9,616 - - Contributions - - - - Other - - 16,776 - Total Revenues 1,339,809 (486) 4,409,194 992,742 Expenditures:
Current:
Community development - - - 1,033,407 Planning and development services - - - - Fire services - - - - Police services - 6,315 - - Public works 1,369,082 - 3,511,666 - Capital outlay - - - - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,369,082 6,315 3,511,666 1,033,407 Excess (Deficiency) of Revenues
Over (Under) Expenditures (29,273) (6,801) 897,528 (40,665) Other Financing Sources (Uses):
Transfers in - - - - Transfers out - - (2,000, 000) - Total Other Financing Sour ces (Uses) - - (2,000, 000) - Net Change in Fund Balances (29,273) (6,801) (1,102, 472) (40,665) Fund Balances, Beginning of Year 29,273 72,132 1,284,404 1,889,349 Fund Balances (Deficit), End of Year -$ 65,331$ 181,932$ 1,848,684$ Asset Seizure
Fund #139
State Gas Tax
Fund #133
Community
Development
Block Grant
Fund #101
Special Revenue Funds
Solid Waste
Disposal Fund
#135
150
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
(CONTINUED)
-$ - $ - $ 2,038,312$ - - - - 187,840 - - - - 791,663 - 1,800,266 45,004 ( 107,831) 49,950 (117,744) - - - - - - - - - - - - 232,844 683,832 49,950 3,720,834 73,555 - 194,141 - - - - - - - - 2,344,591 - - - 680,000 - 604,791 - 961,177 - 129,101 - 3,372 - - - - - - - - 73,555 733,892 194,141 3,989,140 159,289 (50,060) (144,191) (268,306) - - 175,000 - - - - - - - 175,000 - 159,289 (50,060) 30,809 (268,306) 6,473,951 3,515,475 436,114 5,567,300 6,633,240$ 3,465,415 $ 466,923 $ 5,298,994 $ Mare Island
CFD 2002 Fund
#112
HOME Program
Fund #102
Hiddenbrooke
Community
Services
District Fund
#138
Mare Island
Base Reuse
Fund #107
Special Revenue Funds
151
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
-$ - $ - $ -$ - - - - - - - 60,027 281,574 - 45,206 - (8,450) (38,822) (1, 135) - - - - - - - - - - - - - 273,124 (38,822) 44,071 60,027 - - - - - - - - - - - - - - - 60,027 200,069 175,605 18,595 - - - - - - - - - - - - - 200,069 175,605 18,595 60,027 73,055 (214,427) 25,476 - - - - - - - - - - - - - 73,055 (214,427) 25,476 - 263,676 1,443,963 32,302 - 336,731$ 1,229,536 $ 57,778 $ - $ Mare Island
CFD 2005 1A
(State) Fund
#113
Mare Island
CFD 2005 1B
(Local) Fund
#114
Hazmat
Revolving Fund
#143
Justice
Assistance
Grant Fund
#149
Special Revenue Funds
152
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
(CONTINUED)
-$ - $ - $ -$ - 21,036 - - 291,379 - - 2,076,024 - - 4,089,008 - - (2,802) (466,155) - - - - - - - - - - - - - 291,379 18,234 3,622,853 2,076,024 - - - 2,513,410 - - - - - - - - 151,361 14,675 - - - - 2,886,085 - 62,564 - 207,280 - - - - - - - - - 213,925 14,675 3,093,365 2,513,410 77,454 3,559 529,488 (437,386) - - - 500,000 - - - - - - - 500,000 77,454 3,559 529,488 62,614 279,193 95,866 16,295,533 566,773 356,647$ 99,425 $ 16,825,021$ 629,387$ Traffic
Offender /
Vehicle
Impound
Program Fund
#140
Landscape
Maintenance
Districts Fund
#161-188
Emergency
Disaster Fund
#109
Supplemental
Law
Enforcement
Grant Fund
#151
Special Revenue Funds
153
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
-$ - $ - $ -$ - - - - 80,815 - - - - 541,616 - - - - - 360,303 - - - - - - 12,221 - - - - 50,000 80,815 541,616 12,221 410,303 - 255,714 - 167,142 - 285,902 - - - - - - 80,815 - 12,221 - - - - - - - - - - - - - - - - - 80,815 541,616 12,221 167,142 - - - 243,161 - - - - - - - (107,972) - - - (107,972) - - - 135,189 - - - - -$ - $ - $ 135,189$ Administrative
Trust Fund
#601
State Lands
Fund #134
Office of Traffic
Safety Fund
#146
Outside
Services Fund
#129
Special Revenue Funds
154
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
(CONTINUED)
Capital Projects
Funds
-$ - $ - $ -$ - - - 533,246 - - - - - - - - 7,046 (143,419) (5,024) (99,084) - - 2,900 - - - - - - - 115,726 - 7,046 (143,419) 113,602 434,162 1,179 - - - - - - - - - - - - - - - - - - 4,500 - - - 179,050 - - - - - - - - 1,179 - - 183,550 5,867 (143,419) 113,602 250,612 - - - - - - - - - - - - 5,867 (143,419) 113,602 250,612 2,203,073 5,193,709 168,037 3,437,198 2,208,940$ 5,050,290 $ 281,639 $ 3,687,810 $ Transportation
Impact
Mitigation Fund
#203
Neighborhood
Stabilization
Program Fund
#103
Navigation
Center #191
NLP Nuisance
Abatement
Fund #147
Special Revenue Funds
155
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
-$ - $ - $ -$ - - - - - - - - - - - - (214,173) (5,329) (6,834) (2,218) - - - - - - - - - - - - (214,173) (5,329) (6,834) (2,218) - - - - - - - - - - - - - - - - 4,500 4,500 4,500 - 71,921 91,935 - - - - - - - - - - 76,421 96,435 4,500 - (290,594) (101,764) (11,334) (2,218) - - - - (14,042) (14,182) - (558,880) (14,042) (14,182) - (558,880) (304,636) (115,946) (11,334) (561,098) 8,050,996 486,726 249,547 2,072,900 7,746,360$ 370,780$ 238,213 $ 1, 511,802$ Arts and
Convention
Center Fund
#206
Hiddenbrooke
Overpass Fund
#211
Bridge
Construction
Fund #204
Northgate Fee
& Benefit
District #94-1
Fund #208
Capital Projects Funds
156
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
(CONTINUED)
-$ - $ - $ -$ - - - 812,776 - - 6,674,419 - 100,005 - - - (47,203) - - (22,084) - - - - - - - - - - 230,531 - 52,802 - 6,904,950 790,692 - - 14,487 - - - - - - - - - - - - - 10,733 - - - - 150,087 6,890,463 - - - - - - - - - 10,733 150,087 6,904,950 - 42,069 ( 150,087) - 790,692 - 2,000,000 - - - - - - - 2,000,000 - - 42,069 1,849,913 - 790,692 1,679,700 957,204 97,989 439,822 1,721,769$ 2,807,117 $ 97,989 $ 1,230,514 $ Mare Island
CFD 2005 1A
Facilities Fund
#213
Traffic
Congestion
Relief Fund
#219
Capital Grant &
Contribution
Fund #221
Neighborhood
Park-Dev Fee
Fund #137
Capital Projects Funds
157
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
-$ - $ - $ 2,415,266$ - - - - - - - - - - - - (13,419) (57,143) (1,994) - - - - - - - - - - - - 2 (13,419) (57,143) (1,994) 2,415,268 - - - - - - - - - - - - - - - - - 4,500 25,380 4,500 240,115 - 52,635 1,488,202 - - - - - - - - 240,115 4,500 78,015 1, 492,702 (253,534) (61,643) (80,009) 922,566 - - 41,000 - - - - - - - 41,000 - (253,534) (61,643) (39,009) 922,566 606,188 2,071,417 50,762 4,233,310 352,654$ 2,009,774 $ 11,753 $ 5, 155,876$ Road
Maint/Rehab
Act Fund #226
Longterm
Maintenance
Fund #223
Columbus
Parkway
Improvement
Fund #224
Empress
Theater Fund
#225
Capital Projects Funds
158
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Revenues:
Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Total Revenues
Expenditures:
Current:
Community development
Planning and development services
Fire services
Police services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sour ces (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances (Deficit), End of Year
Capital
Projects Funds
Debt Service
Fund
Permanent
Fund
Total
Governmental
Funds
-$ - $ - $ 4,453,578$ - - - 1,382,522 - - - 13,217,663 - - - 10,499,492 (2,802) 68 (2,972) (923,883) - - - 34,223 - - - 12,221 - - - 413,035 (2,802) 68 (2,972) 29,088,851 - - - 4,253,035 - - 195 286,097 - - - 2,344,591 - - - 1,005,414 4,500 9,000 - 9,803,683 14,676 - - 9,581,401 - 947,173 - 947,173 - 222,865 - 222,865 19,176 1,179,038 195 28,444,259 (21,978) (1,178,970) (3,167) 644,592 - 1,182,137 - 3,898,137 - - - (2,695,076) - 1,182,137 - 1,203,061 (21,978) 3,167 (3,167) 1,847,653 107,125 260,514 107,747 70,719,268 85,147$ 263,681 $ 104,580 $ 72,566,921 $ McCune
Collection Fund
#603
Waterfront
History Park
Fund #227
Certificates of
Participation
Fund #-Various
159
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SOLID WASTE DISPOSAL FUND #135
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees 11,900$ 11,900$ 15,464$ 3,564$ Intergovernmental 42,789 42,789 28,162 (14,627) Charges for services 1,481,494 1,481,494 1,287,121 (194,373) Use of money and property - - (12,645) (12,645) Fines and forfeitures - - 21,707 21,707 Total Revenues 1,536,183 1,536,183 1,339,809 (196,374) EXPENDITURES:
Current:
Public works 1,547,775 1,547,775 1,369,082 178,693 Total Expenditures 1,547,775 1,547,775 1,369,082 178,693 NET CHANGE IN FUND BALANCES * (11,592)$ (11,592)$ (29,273) (17,681)$ Fund Balance, July 1 29,273
Fund Balance (Deficit), June 30 -$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 160
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ASSET SEIZURE FUND #139
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property -$ -$ (10,102)$ (10,102)$ Fines and forfeitures 20,000 20,000 9,616 (10,384) Total Revenues 20,000 20,000 (486) (20,486) EXPENDITURES:
Current:
Police services 10,000 10,000 6,315 3,685 Total Expenditures 10,000 10,000 6,315 3,685 NET CHANGE IN FUND BALANCES 10,000$ 10,000$ (6,801) (16,801)$ Fund Balance, July 1 72,132
Fund Balance, June 30 65,331$
161
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE GAS TAX FUND #133
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 2,824,655$ 2,824,655$ 2,829,385$ 4,730$ Charges for services 1,513,381 1,513,381 1,563,033 49,652 Use of money and property - - - - Other 24,500 24,500 16,776 (7,724) Total Revenues 4,362,536 4,362,536 4,409,194 46,658 EXPENDITURES:
Current:
Public works 3,613,960 3,683,305 3,511,666 171,639 Total Expenditures 3,613,960 3,683,305 3,511,666 171,639 EXCESS REVENUES OVER EXPENDITURES 748,576 679,231 897,528 218,297
OTHER FINANCING SOURCES (USES)
Transfers out (1,250,000) (2,000,000) (2,000,000) - Total Other Financing Sources (Uses) (1,250,000) (2,000,000) (2,000,000) - NET CHANGE IN FUND BALANCES * (501,424)$ (1,320,769)$ (1,102,472) 218,297$ Fund Balance, July 1 1,284,404
Fund Balance, June 30 181,932$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 162
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND #101
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 1,035,455$ 1,788,943$ 989,612$ (799,331)$ Use of money and property 15,000 50,000 3,130 (46,870) Total Revenues 1,050,455 1,838,943 992,742 (846,201) EXPENDITURES:
Current:
Community development 1,050,455 1,838,943 1,033,407 805,536 Total Expenditures 1,050,455 1,838,943 1,033,407 805,536 NET CHANGE IN FUND BALANCES -$ -$ (40,665) (40,665)$ Fund Balance, July 1 1,889,349
Fund Balance, June 30 1,848,684$
163
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HOME PROGRAM FUND #102
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 610,866$ 2,868,399$ 187,840$ (2,680,559)$ Use of money and property 150,000 150,000 45,004 (104,996) Total Revenues 760,866 3,018,399 232,844 (2,785,555) EXPENDITURES:
Current:
Community development 760,866 3,018,399 73,555 2,944,844 Total Expenditures 760,866 3,018,399 73,555 2,944,844 NET CHANGE IN FUND BALANCES -$ -$ 159,289 159,289$ Fund Balance, July 1 6,473,951
Fund Balance, June 30 6,633,240$
164
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HIDDENBROOKE COMMUNITY SERVICES DISTRICT FUND #138
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 823,820$ 823,820$ 791,663$ (32,157)$ Use of money and property 31,821 31,821 (107,831) (139,652) Total Revenues 855,641 855,641 683,832 (171,809) EXPENDITURES:
Current:
Public works 688,372 712,447 604,791 107,656 Capital outlay - 352,389 129,101 223,288 Total Expenditures 688,372 1,064,836 733,892 330,944 NET CHANGE IN FUND BALANCES * 167,269$ (209,195)$ (50,060) 159,135$ Fund Balance, July 1 3,515,475
Fund Balance, June 30 3,465,415$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 165
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MARE ISLAND BASE REUSE FUND #107
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 35,000$ 35,000$ 49,950$ 14,950$ Total Revenues 35,000 35,000 49,950 14,950 EXPENDITURES:
Current:
Community development 414,420 453,550 194,141 259,409 Capital outlay 125,000 125,000 - 125,000 Total Expenditures 539,420 578,550 194,141 384,409 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (504,420) ( 543,550) ( 144,191) 399,359
OTHER FINANCING SOURCES (USES)
Transfers in 175,000 175,000 175,000 - Total Other Financing Sources (Uses) 175,000 175,000 175,000 - NET CHANGE IN FUND BALANCES * (329,420)$ (368,550)$ 30,809 399,359$ Fund Balance, July 1 436,114
Fund Balance, June 30 466,923$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 166
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MARE ISLAND CFD 2002 FUND #112
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 1,833,371$ 1,833,371 $ 2,038,312$ 204,941$ Charges for services 1,805,597 1,805,597 1,800,266 (5,331) Use of money and property 50,000 50,000 (117,744) (167,744) Total Revenues 3,688,968 3,688,968 3,720,834 31,866 EXPENDITURES:
Current:
Fire services 2,320,000 2,320,000 2,344,591 (24,591) Police services 769,000 769,000 680,000 89,000 Public works 1,159,157 1,217,748 961,177 256,571 Capital outlay - - 3,372 (3,372) Total Expenditures 4,248,157 4,306,748 3,989,140 317,608 NET CHANGE IN FUND BALANCES * (559,189)$ (617,780)$ (268,306) 349,474$ Fund Balance, July 1 5,567,300
Fund Balance, June 30 5,298,994$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 167
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MARE ISLAND CFD 2005 1A (STATE) FUND #113
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 281,569$ 281,569$ 281,574$ 5$ Use of money and property - - (8,450) (8,450) Total Revenues 281,569 281,569 273,124 (8,445) EXPENDITURES:
Current:
Public works 229,440 241,840 200,069 41,771 Total Expenditures 229,440 241,840 200,069 41,771 NET CHANGE IN FUND BALANCES 52,129$ 39,729$ 73,055 33,326$ Fund Balance, July 1 263,676
Fund Balance, June 30 336,731$
168
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MARE ISLAND CFD 2005 1B (LOCAL) FUND #114
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property -$ -$ (38,822)$ (38,822)$ Total Revenues - - (38,822) (38,822) EXPENDITURES:
Current:
Public works 345,603 384,822 175,605 209,217 Total Expenditures 345,603 384,822 175,605 209,217 NET CHANGE IN FUND BALANCES * (345,603)$ (384,822)$ (214,427) 170,395$ Fund Balance, July 1 1,443,963
Fund Balance, June 30 1,229,536$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 169
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HAZMAT REVOLVING FUND #143
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 45,229$ 45,229$ 45,206$ (23)$ Use of money and property - - (1,135) (1,135) Total Revenues 45,229 45,229 44,071 (1,158) EXPENDITURES:
Current:
Public works 45,229 52,404 18,595 33,809 Total Expenditures 45,229 52,404 18,595 33,809 NET CHANGE IN FUND BALANCES * -$ (7,175)$ 25,476 32,651$ Fund Balance, July 1 32,302
Fund Balance, June 30 57,778$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 170
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL JUSTICE ASSISTANCE GRANT FUND #149
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 250,000$ 1,383,973$ 60,027$ (1,323,946)$ Total Revenues 250,000 1,383,973 60,027 (1,323,946) EXPENDITURES:
Current:
Police services 250,000 1,383,973 60,027 1,323,946 Total Expenditures 250,000 1,383,973 60,027 1,323,946 NET CHANGE IN FUND BALANCES -$ -$ - -$ Fund Balance, July 1 -
Fund Balance, June 30 -$
171
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SUPPLEMENTAL LAW ENFORCEMENT GRANT FUND #151
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 180,000$ 180,000$ 291,379$ 111,379$ Total Revenues 180,000 180,000 291,379 111,379 EXPENDITURES:
Current:
Police services 200,000 366,975 151,361 215,614 Capital outlay - - 62,564 (62,564) Total Expenditures 200,000 366,975 213,925 153,050 NET CHANGE IN FUND BALANCES * (20,000)$ (186,975)$ 77,454 264,429$ Fund Balance, July 1 279,193
Fund Balance, June 30 356,647$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 172
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC OFFENDER / VEHICLE IMPOUND PROGRAM FUND #140
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses, permits and fees 50,000$ 50,000$ 21,036$ (28,964)$ Use of money and property - - (2,802) (2,802) Total Revenues 50,000 50,000 18,234 (31,766) EXPENDITURES:
Current:
Police services 50,000 50,000 14,675 35,325 Total Expenditures 50,000 50,000 14,675 35,325 NET CHANGE IN FUND BALANCES -$ -$ 3,559 3,559$ Fund Balance, July 1 95,866
Fund Balance, June 30 99,425$
173
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL LANDSCAPE MAINTENANCE DISTRICTS FUND #161-188
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 3,956,450$ 3,956,450$ 4,089,008$ 132,558$ Use of money and property 136,602 136,602 (466,155) (602,757) Total Revenues 4,093,052 4,093,052 3,622,853 (470,199) EXPENDITURES:
Current:
Public works 3,172,977 3,264,951 2,886,085 378,866 Capital outlay - - 207,280 (207,280) Total Expenditures 3,172,977 3,264,951 3,093,365 171,586 NET CHANGE IN FUND BALANCES 920,075$ 828,101$ 529,488 (298,613)$ Fund Balance, July 1 16,295,533
Fund Balance, June 30 16,825,021$
174
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL EMERGENCY DISASTER FUND #109
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ -$ 2,076,024$ 2,076,024$ Total Revenues - - 2,076,024 2,076,024 EXPENDITURES:
Current:
Community development - 500,000 2,513,410 (2,013,410) Total Expenditures - 500,000 2,513,410 (2,013,410) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES -$ (500,000)$ (437,386) 62,614$
OTHER FINANCING SOURCES (USES)
Transfers in - 500,000 500,000 - Total Other Financing Sources (Uses) - 500,000 500,000 - NET CHANGE IN FUND BALANCES -$ -$ 62,614 62,614$ Fund Balance, July 1 566,773
Fund Balance (Deficit), June 30 629,387$
175
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OFFICE OF TRAFFIC SAFETY FUND #146
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 80,000$ 182,000$ 80,815$ (101,185)$ Total Revenues 80,000 182,000 80,815 (101,185) EXPENDITURES:
Current:
Police services 80,000 182,000 80,815 101,185 Total Expenditures 80,000 182,000 80,815 101,185 NET CHANGE IN FUND BALANCES -$ -$ - -$ Fund Balance, July 1 -
Fund Balance, June 30 -$
176
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OUTSIDE SERVICES FUND #129
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 1,020,000$ 1,020,000$ 541,616$ (478,384)$ Use of money and property 40,383 40,383 - (40,383) Total Revenues 1,060,383 1,060,383 541,616 (518,767) EXPENDITURES:
Current:
Law 100,000 100,000 - 100,000 Community development 320,000 320,000 255,714 64,286 Planning and development services 500,000 500,000 285,902 214,098 Public works 100,000 100,000 - 100,000 Total Expenditures 1,020,000 1,020,000 541,616 478,384 EXCESS REVENUES OVER EXPENDITURES 40,383 40,383 - (40,383)
OTHER FINANCING SOURCES (USES)
Transfers out (40,383) (40,383) - 40,383 Total Other Financing Sources (Uses) (40,383) (40,383) - 40,383 NET CHANGE IN FUND BALANCES -$ -$ - -$ Fund Balance, July 1 -
Fund Balance, June 30 -$
177
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ADMINISTRATIVE TRUST FUND #601
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 25,000$ 25,000$ -$ (25,000)$ Contributions 20,000 20,000 12,221 (7,779) Total Revenues 45,000 45,000 12,221 (32,779) EXPENDITURES:
Current:
Police services 20,000 20,000 12,221 7,779 Total Expenditures 20,000 20,000 12,221 7,779 EXCESS REVENUES OVER EXPENDITURES 25,000 25,000 - (25,000)
OTHER FINANCING SOURCES (USES)
Transfers out (25,000) (25,000) - 25,000 Total Other Financing Sources (Uses) (25,000) (25,000) - 25,000 NET CHANGE IN FUND BALANCES -$ -$ - -$ Fund Balance, July 1 -
Fund Balance, June 30 -$
178
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE LANDS FUND #134
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 311,171$ 311,171$ 360,303$ 49,132$ Other - - 50,000 50,000 Total Revenues 311,171 311,171 410,303 99,132 EXPENDITURES:
Current:
Community development 123,354 123,354 167,142 (43,788) Total Expenditures 123,354 123,354 167,142 (43,788) EXCESS REVENUES OVER EXPENDITURES 187,817 187,817 243,161 55,344
OTHER FINANCING SOURCES (USES)
Transfers out (187,817) (187,817) (107,972) 79,845 Total Other Financing Sources (Uses) (187,817) (187,817) (107,972) 79,845 NET CHANGE IN FUND BALANCES -$ -$ 135,189 135,189$ Fund Balance, July 1 -
Fund Balance, June 30 135,189$
179
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NEIGHBORHOOD STABILIZATION PROGRAM FUND #103
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 14,000$ 14,000$ 7,046$ (6,954)$ Total Revenues 14,000 14,000 7,046 (6,954) EXPENDITURES:
Current:
Community development 14,000 572,024 1,179 570,845 Total Expenditures 14,000 572,024 1,179 570,845 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - (558, 024) 5,867 563,891 NET CHANGE IN FUND BALANCES * -$ (558, 024)$ 5,867 563,891$ Fund Balance, July 1, as Restated 2,203,073
Fund Balance, June 30 2,208,940$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 180
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NAVIGATION CENTER #191
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 50,000$ 50,000$ (143,419)$ (193,419)$ Contributions 1,050,000 1,050,000 - (1,050,000) Total Revenues 1,100,000 1,100,000 (143,419) (1,243,419) EXPENDITURES:
Non departmental 1,145,708 1,145,708 - 1,145,708 Total Expenditures 1,145,708 1,145,708 - 1,145,708 NET CHANGE IN FUND BALANCES * (45,708)$ (45,708)$ (143,419) (97,711)$ Fund Balance, July 1 5,193,709
Fund Balance, June 30 5,050,290$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 181
CITY OF VALLEJO
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NLP NUISANCE ABATEMENT FUND #147
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 7,000$ 7,000$ (5,024)$ (12,024)$ Fines and forfeitures - - 2,900 2,900 Other 100,000 100,000 115,726 15,726 Total Revenues 107,000 107,000 113,602 6,602 EXPENDITURES:
Current:
Law 100,000 150,000 - 150,000 Total Expenditures 100,000 150,000 - 150,000 NET CHANGE IN FUND BALANCES * 7,000$ (43,000)$ 113,602 156,602$ Fund Balance, July 1 168,037
Fund Balance, June 30 281,639$
* The net change in fund balance was included in the budget as an appropriation (i.e. spendown) of fund balance. 182
183
184
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis. 185
CITY OF VALLEJO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
Assets:
Current:
Cash and investments 5,139,822$ 472,754$ 512,330$ Receivables:
Accounts 14,383 39,744 -
Prepaid costs - 24,997 - Due from other funds - - - Materials, parts and supplies 217,826 - - Total Current Assets 5,372,031 537,495 512,330 Noncurrent:
Capital assets - net of accumulated depreciation 8,648,094 - - Total Noncurrent Assets 8,648,094 - - Total Assets 14,020,125$ 537,495$ 512,330$
Deferred Outflows of Resources:
Related to pensions 207,935$ - $ -$ Related to OPEB 44,593 - 2,716,966 Total Deferred Outflows of Resources 252,528 - 2,716,966 Liabilities:
Current:
Accounts payable and accrued liabilities 358,614 69,946 - Employee benefits payable 67,202 467,549 - Accrued claims and judgments - - - Total Current Liabilities 425,816 537,495 - Noncurrent:
Employee benefits payable - - 459,944 Accrued claims and judgments - - - Net pension liability 1,483,967 - - Net OPEB liability 160,209 - 8,238,823 Total Noncurrent Liabilities 1,644,176 - 8,698,767 Total Liabilities 2,069,992 537,495 8,698,767 Deferred Inflows of Resources:
Related to pensions 357,209 - - Related to OPEB 114,344 - 5,880,206 Total Deferred Inflows of Resources 471,553 - 5,880,206 Net Position (Deficit):
Invested in capital assets 8,648,094 - - Unrestricted (Deficit) 3,083,014 - (11,349,677) Total Net Position (Deficit) 11,731,108$ -$ (11, 349,677)$ Fleet
Maintenance/
Replacement
Fund
Payroll
Benefits
Retiree Health
Benefits
(OPEB)
Governmental Activities - Internal Service Funds
186
CITY OF VALLEJO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
Assets:
Current:
Cash and investments
Receivables:
Accounts
Prepaid costs
Due from other funds
Materials, parts and supplies
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Related to pensions
Related to OPEB
Total Deferred Outflows of Resources
Liabilities:
Current:
Accounts payable and accrued liabilities
Employee benefits payable
Accrued claims and judgments
Total Current Liabilities
Noncurrent:
Employee benefits payable
Accrued claims and judgments
Net pension liability
Net OPEB liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Related to pensions
Related to OPEB
Total Deferred Inflows of Resources
Net Position (Deficit):
Invested in capital assets
Unrestricted (Deficit)
Total Net Position (Deficit)
Totals
12,606,232$ 11,184,926 $ 29,916,064$
- - 54,127
268,555 - 293,552
- 8,075,144 8,075,144
- - 217,826
12,874,787 19,260,070 38,556,713
- - 8,648,094 - - 8,648,094 12,874,787$ 19,260,070 $ 47,204,807 $
93,932$ 93,932 $ 395,799$
10,551 10,551 2,782,661
104,483 104,483 3,178,460
138,159 10,093 576,812
11,683 11,683 558,117
3,154,916 2,917,532 6,072,448
3,304,758 2,939,308 7,207,377
- - 459,944
6,755,084 12,381,468 19,136,552
656,698 656,698 2,797,363
29,975 29,975 8,458,982
7,441,757 13,068,141 30,852,841
10,746,515 16,007,449 38,060,218
158,075 158,075 673,359
21,393 21,393 6,037,336
179,468 179,468 6,710,695
- - 8,648,094 2,053,287 3,177,636 (3,035,740)
2,053,287$ 3,177,636 $ 5,612,354 $
General
Liability
Workers'
Comp
Governmental Activities -
Internal Service Funds
187
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Operating Revenues:
Sales and service charges 4,725,700$ - $ 3,125,117$ Other 22,181 - -
Total Operating Revenues 4,747,881 - 3,125,117 Operating Expenses:
Operations expenses 3,086,695 - 710,274 Insurance and claims - - - Depreciation expense 1,711,524 - - Total Operating Expenses 4,798,219 - 710,274 Operating Income (Loss) (50,338) - 2,414,843 Nonoperating Revenues:
Investment income (123,653) - (14,574) Gain on disposal of capital assets 97,655 - - Total Nonoperating
Revenues (25,998) - (14,574) Income (Loss) Before Transfers (76,336) - 2,400,269 Transfers in 800,000 - - Transfers out - - - Changes in Net Position 723,664 - 2,400,269 Net Position (Deficit):
Beginning of Year (Deficit) 11,007,444 - (13,749,946) End of Fiscal Year (Deficit) 11,731,108$ -$ (11,349, 677)$ Fleet
Maintenance/
Replacement
Fund
Payroll
Benefits
Retiree Health
Benefits
(OPEB)
Governmental Activities - Internal Service Funds
188
CITY OF VALLEJO
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Operating Revenues:
Sales and service charges
Other
Total Operating Revenues
Operating Expenses:
Operations expenses
Insurance and claims
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues:
Investment income
Gain on disposal of capital assets
Total Nonoperating
Revenues
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position (Deficit):
Beginning of Year (Deficit)
End of Fiscal Year (Deficit)
Totals
6,147,000$ 5,295,132 $ 19,292,949$
42,784 - 64,965
6,189,784 5,295,132 19, 357,914
1,644,023 943,495 6,384,487
5,335,691 3,273,014 8,608,705
- - 1,711,524 6,979,714 4,216,509 16, 704,716
(789,930) 1,078,623 2,653,198
(209,429) (506,171) (853,827)
- - 97,655
(209,429) (506,171) (756,172)
(999,359) 572,452 1,897,026
5,000,000 - 5,800,000
- (2,000,000) (2,000,000)
4,000,641 (1,427,548) 5,697,026
(1,947,354) 4,605,184 (84,672)
2,053,287$ 3,177,636 $ 5,612,354 $
General
Liability
Workers'
Comp
Governmental Activities -
Internal Service Funds
189
CITY OF VALLEJO
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Receipts from customers 4,752,979$ 75,408,317 $ 3,125,117$ Payments to suppliers (2,140,820) - - Payments to or on behalf of employees (975,686) (75, 307,598) (3,046,169) Claims paid - - - Net Cash Provided (Used) by Operating Activities 1,636,473 100,719 78,948 Cash Flows from Non-Capital
Financing Activities:
Interfund receipts 800,000 - - Interfund payments - - - Net Cash Provided (Used) by
Non-Capital Financing Activities 800,000 - - Cash Flows from Capital
and Related Financing Activities:
Acquisition of capital assets (1,740,070) - - Proceeds on sale of capital assets 104,898 - - Net Cash Used by
Capital and Related Financing Activities (1,635,172) - - Cash Flows from Investing Activities:
Investment income (losses) (123,653) - (14,574) Net Cash Provided by
Investing Activities (123,653) - (14,574) Net Increase (Decrease) in Cash
and Cash Equivalents 677,648 100,719 64,374 Cash and Cash Equivalents at Beginning of Year 4,462,174 372,035 447,956 Cash and Cash Equivalents at End of Year 5,139,822$ 472,754$ 512,330$ Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) (50,338)$ - $ 2,414,843$ Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:
Depreciation and amortization 1,711,524 - - Changes in pension related items (145,051) - - Changes in OPEB related items (1,827) - (2,424,408) (Increase) decrease in accounts receivable, net 5,098 (27,984) - (Increase) decrease in inventory and prepaids (14,616) (3, 916) - 135,098 51,061 -
Increase (decrease) in claims payable - - - Increase (decrease) in employee benefits payable (3,415) 81,558 88,513 Total Adjustments 1,686,811 100,719 (2,335,895) Net Cash Provided (Used) by
Operating Activities 1,636,473$ 100,719$ 78,948$ Increase (decrease) in accounts payable and other accrued expenses Fleet
Maintenance/
Replacement
Fund
Payroll
Benefits
Retiree Health
Benefits
(OPEB)
Governmental Activities - Internal Service Funds
190
CITY OF VALLEJO
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
Cash Flows from Operating Activities:
Receipts from customers
Payments to suppliers
Payments to or on behalf of employees
Claims paid
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Interfund receipts
Interfund payments
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition of capital assets
Proceeds on sale of capital assets
Net Cash Used by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Investment income (losses)
Net Cash Provided by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:
Depreciation and amortization
Changes in pension related items
Changes in OPEB related items
(Increase) decrease in accounts receivable, net
(Increase) decrease in inventory and prepaids
Increase (decrease) in claims payable
Increase (decrease) in employee benefits payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Increase (decrease) in accounts payable and other accrued expenses Totals
6,189,784$ 5,295,132 $ 94,771,329$
(1,606,651) (1, 078,525) (4,825,996)
(291,608) (289,791) (79,910,852)
(4,850,464) (2, 394,639) (7,245,103)
(558,939) 1,532,177 2,789,378
5,000,000 - 5,800,000
- (5, 182,239) (5,182,239)
5,000,000 (5, 182,239) 617,761
- - (1,740,070) - - 104,898
- - (1,635,172) (209,429) (506,171) (853,827)
(209,429) (506,171) (853,827)
4,231,632 (4, 156,233) 918,140
8,374,600 15,341,159 28,997,924
12,606,232$ 11,184,926 $ 29,916,064 $
(789,930)$ 1,078,623 $ 2,653,198$
- - 1,711,524 117,178 117,178 89,305
(9,791) (9, 791) (2,445,817)
- - (22,886)
(53,930) - (72,462)
12,736 (3, 631) 195,264
164,000 349,000 513,000
798 798 168,252
230,991 453,554 136,180
(558,939)$ 1,532,177 $ 2,789,378 $
General
Liability
Workers'
Comp
Governmental Activities -
Internal Service Funds
191
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192
CUSTODIAL FUNDS
Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement.
The City’s Custodial Funds include the Improvement Districts and Assessment Districts Funds. These funds account for the collection of assessment and the disbursement to district bond holders for debt without City commitment.
193
CITY OF VALLEJO
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30, 2022
Totals
Assets:
Cash and investments 1,929,494$ 548,587 $ 2,478,081$ Restricted cash and investments with fiscal agents 3,067,011 504,679 3,571,690 Total Assets 4,996,505 1,053,266 6,049,771 Liabilities:
Accounts payable 1,525 3,040 4,565 Accrued interest 286,777 172,646 459,423 Bonds payable:
Due within one year 610,000 235,000 845,000 Due in more than one year 7,315,000 4,135,000 11,450,000 Total Liabilities 8,213,302 4,545,686 12,758,988 Net Position (Deficit):
Restricted (Deficit) (3,216,797) (3,492,420) (6,709,217) Total Net Position (Deficit) (3,216,797)$ (3,492,420)$ (6,709,217)$ Hiddenbrooke
Improvement
District
NE Quadrant
Improvement
District 2003-01
194
CITY OF VALLEJO
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
Totals
Additions:
Investment earnings (98,777)$ (9,860) $ (108,637)$ Collections for assessment districts 1,684,607 525,365 2,209,972 Total Additions 1,585,830 515,505 2,101,335 Deductions:
Administrative expenses 40,448 22,396 62,844 Interest and fiscal charges 770,170 447,515 1,217,685 Contributions to City 2,347,413 - 2,347,413 Total Deductions 3,158,031 469,911 3,627,942 Net Increase in Fiduciary Net Position (1,572,201) 45,594 (1,526,607) Net Position (Deficit) - Beginning (1,644,596) (3,538,014) (5,182,610) Net Position (Deficit) - Ending (3,216,797)$ (3,492,420)$ (6,709,217)$ Hiddenbrooke
Improvement
District
NE Quadrant
Improvement
District 2003-01
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STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report p resents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader un derstand how the City’s financial performance and wellbeing have changed over time:
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess t he City’s most significant local revenue sources, the property tax and sales tax:
Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Taxes Rates
Top 10 Principal Property Tax Payers
Property Tax Levies and Collections
Taxable Sales by Category
Top 25 Principal Sales Tax Payers
Debt Capacity
These schedules present information to help the reader assess t he affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
Ratios of Outstanding Debt by Type
Direct and Overlapping Debt
Legal Debt Margin Information
Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to he lp the reader understand the environment within which the City’s financial activities take place:
Demographic and Economic Statistics
Top 10 Principal Employers
Full-time and Part-time City Employees by Function
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:
Operating Indicators by Function
Capital Asset Statistics by Function
Sources
Unless otherwise noted, the information in these schedules is d erived from the Annual Comprehensive Financial Reports for the relevant year.
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198
CITY OF VALLEJO ANNUAL COMPREHENSIVE FINANCIAL REPORTCIAL REPORT Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities:
Net Investment in Capital Assets 317,984,723$ 318,630,233$ 313,312,203$ 314,654,942$ 318,636,371$ 316,622,007$ 315,888,276$ 331,744,314$ 336,111,810$ 339,879,627$ Restricted 65,402,869 70,125,586 65,421,676 68,373,151 70,545,240 69,927,367 75,368,245 91,815,092 98,105,543 103,743,509 Unrestricted 356,086 9,621,946 (191,225,009) (177,003,436) (174,091, 484) (187,401,484) (182,328,859) (217,444,163) (213,528,457) (183,889,225) Total governmental activities net position 383,743,678$ 398,377,765$ 187,508,870$ 206,024,657$ 215,090,127$ 199,147,890$ 208,927,662$ 206,115,243$ 220,688,896$ 259,733,911$ Business-type activities:
Net Investment in Capital Assets 39,076,148$ 40,466,687$ 38,170,671$ 40,191,379$ 40,778,629$ 44,251,622$ 53,757,390$ 59,614,105$ 59,196,628$ 61,267,522$ Restricted 4,306,908 5,253,775 5,253,774 5,253,836 5,258,610 5,274,585 5,533,393 510,833 27,358 27,454 Unrestricted 20,942,101 23,707,740 1,294,897 (75,800) 1,842,145 (4,74 9,417) (7,477,516) (1,240,554) 8,016,703 17,840,762 Total business-type activities net position 64,325,157$ 69,428,202$ 44,719,342$ 45,369,415$ 47,879,384$ 44,776,790$ 51,813,267$ 58,884,384$ 67,240,689$ 79,135,738$ Primary government:
Net Investment in Capital Assets 357,060,871$ 359,096,920$ 351,482,874$ 354,846,321$ 359,415,000$ 360,873,629$ 369,645,666$ 391,358,419$ 395,308,438$ 401,147,149$ Restricted 69,709,777 75,379,361 70,675,450 73,626,987 75,803,850 75,201,952 80,901,638 92,325,925 98,132,901 103,770,963 Unrestricted 21,298,187 33,329,686 (189,930,112) (177,079,236) (172,249,339) (192,150,901) (189,806,375) (218,684,717) (205,511,754) (166,048,463) Total primary government net position 448,068,835$ 467,805,967$ 232,228,212$ 251,394,072$ 262,969,511$ 243,924,680$ 260,740,929$ 264,999,627$ 287,929,585$ 338,869,649$ Notes: 1 Effective fiscal year 2013 and beyond, the presentation of some financial data has changed to reflect the effects of the implementation of GASB 61 which eliminated the inclusion of the Vallejo Sanitation and Flood Control District as part of the primary government. This results in the financial activities of the Vallejo Sanitation and Flood Control District being discretely presented in the Component Unit column of the Statement of Net Position and the Statement of Activities.
The City did not retroactively restate the amounts prior to FY 2013 for the Net Position related to the implementation of GASB 61.
2 The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position". 3 The City implemented the provisions of GASB Statement 68 in fiscal year 2015.
Prior amounts have not been restated.
4 The City implemented the provisions of GASB Statement 75 in fiscal year 2018.
Prior amounts have not been restated.
Fiscal Year Ended June 30
199
CITY OF VALLEJO COMPREHENSIVE ANNUAL FINANCIAL REPORT CIAL REPORT CIAL REPORT Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:
Legislative and Advisory 304,333$ 213,736$ 268,785$ 257,208$ 244,300$ 342,413$ 321,914$ 275,873$ 260,517$ 183,493$ Executive 3,012,974 3, 844,344 3,817,882 2, 386,112 2, 795,092 3, 217,242 5, 346,942 5,213,762 5, 155,236 5,936,409 Finance 1,382,283 1, 770,592 1,654,071 2, 009,568 2, 046,341 2, 296,973 2, 019,164 1,778,234 1, 718,818 1,777,407 Human Resources 1,026,415 930,294 1,034,655 1, 390,288 988,831 1, 382,503 1, 936,821 1,918,967 2, 106,513 1,445,826 Law 1,158,594 1, 079,614 694,447 976,895 1, 289,690 1, 678,985 1, 737,644 1,451,392 1, 268,519 1,372,165 Development Services 2,180,055 2, 504,558 2,701,130 2, 954,366 2, 925,237 3, 572,495 - - - - Community Development 33,586,418 32,366,219 26,801,601 27,801,563 27,348,207 29,503,111 34,843,093 31,626,149 35,519,702 31,285,761 Planning and Development Services - - - - - - 5, 641,584 4,636,674 3, 966,578 3,155,793 Fire services 23,480,073 23,628,510 24,689,484 24,573,111 27,384,860 31,978,352 30,169,197 34,879,494 34,564,660 27,487,724 Police services 37,952,439 31,968,288 36,412,375 38,994,284 42,345,792 50,291,924 47,724,576 54,926,532 56,088,783 40,952,101 Public Works 23,495,632 24,633,518 35,650,143 29,491,475 29,016,544 30,289,374 28,195,131 31,891,067 29,512,952 26,058,635 Interest on long-term debt 209,054 196,404 541,370 462,398 438,450 414,286 388,381 429,730 413,217 399,242 Total governmental activities expenses 127,788,270 123,136,077 134,265,943 131,297,268 136,823,344 154,967,658 158,324,447 169,027,874 170,575,495 140,054,556 Business-type activities:
Water 33,770,385 34,534,260 35,075,642 34,856,203 35,523,887 37,447,808 37,733,752 38,645,529 40,603,545 40,229,658 Local Transportation 2,612,944 - - - - - - - - - Other proprietary funds 5,351,278 5,230,382 6,447,594 5,622,800 6,135,549 6,734,578 6,738,082 8,046,603 7,179,748 5,998,294 Total business-type activities expenses 41,734,607 39,764,642 41,523,236 40,479,003 41,659,436 44,182,386 44,471,834 46,692,132 47,783,293 46,227,952 Total primary government expenses 169,522,877$ 162,900,719$ 175,789,179$ 171,776,271$ 178,482,780$ 199,150,044$ 202,796,281$ 215,720,006$ 218,358,788$ 186,282,508$ Program Revenues
Governmental activities:
Charges for services 15,462,878$ 18,819,481$ 24,461,121$ 24,632,362$ 24,510,980$ 25,711,785$ 27,555,650$ 24,139,578$ 26,076,321$ 31,125,166$ Operating grants and contributions 35,971,107 38,596,729 26,535,944 26,731,559 27,598,297 30,006,058 38,057,450 38,858,209 45,830,666 36,629,965 Capital grants and contributions 6,925,849 5, 661,868 3,476,887 8, 851,629 5, 362,544 2, 138,551 3, 052,819 2,830,049 7, 133,919 6,674,419 Total governmental activities program revenues 58,359,834 63,078,078 54,473,952 60,215,550 57,471,821 57,856,394 68,665,919 65,827,836 79,040,906 74,429,550 Business-type activities:
Charges for services 39,543,209 42,589,807 39,476,107 37,578,399 37,952,387 45,037,505 47,293,239 50,257,187 55,330,836 57,076,781 Operating grants and contributions 350,876 - 22,479 25,847 123,279 - 36,642 38,585 59,791 2,045,021 Capital grants and contributions 2,116,548 331,315 1,197,727 1, 383,466 3, 374,785 1, 018,049 998,762 198,979 389,891 342,192 Total business-type activities program revenues 42,010,633 42,921,122 40,696,313 38,987,712 41,450,451 46,055,554 48,328,643 50,494,751 55,780,518 59,463,994 Total primary government program revenues 100,370,467$ 105,999,200$ 95,170,265$ 99,203,262$ 98,922,272$ 103,911,948$ 116,994,562$ 116,322,587$ 134,821,424$ 133,893,544$ Net revenue/(expense)
Governmental activities (69,428,436)$ ( 60,057,999)$ ( 79,791,991)$ ( 71,081,718)$ ( 79,351,523)$ ( 97,111,264)$ ( 89,658,528)$ ( 103,200,038)$ (91,534,589) $ (65,625,006)$ Business-type activities 276,026 3, 156,480 ( 826,923) (1,491,291) (208,985) 1,873,168 3,856,809 3,802,619 7,997,225 13,236,042 Total primary government net expense (69,152,410)$ (56,901,519)$ (80,618,914)$ (72,573,009)$ (79,560,508)$ (95,238,096)$ (85,801,719)$ (99,397,419)$ (83,537,364)$ (52,388,964)$ Note: Planning and Development Services were previously reported under Development Services.
Fiscal Year Ended June 30
200
CITY OF VALLEJO COMPREHENSIVE ANNUAL FINANCIAL REPORT CIAL REPORT CIAL REPORT Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Ended June 30
(Continued)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 14,484,918 $ 14,346,058$ 15,694,198$ 16,956,367$ 18,234,843$ 19,379,799$ 20,822,536$ 21,837,203$ 22,475,271$ 24,355,060$ Sales taxes 24,685,817 25,583,330 26,857,325 27,767,194 29,276,208 29,626,711 32,641,720 32,457,314 38,189,547 40,866,872 Utility user taxes 12, 521,558 12,610,733 12,627,342 12,994,432 13,339,264 13,107,158 12,338,425 12,329,103 13,005,333 13,322,651 Motor vehicles / In lieu property tax 7,156,707 7, 640,132 8,365,437 8, 526,690 9, 085,386 9, 685,054 10,334,622 10,941,183 11,480,266 11,959,681 Other taxes 9,212,120 9, 948,063 10,654,921 12,979,029 14,888,721 15,255,443 15,082,269 15,302,220 15,864,149 16,902,706 Investment earnings 419,817 679,347 1,376,228 1, 765,281 849,111 902,408 4, 622,647 5,042,701 1, 878,276 (4,859,238) Gain on sale of capital assets - 102,447 21,700 173,859 89,852 134,785 69,983 42,934 11,600 (1,232,481) Insurance recoveries - - 913,838 - - - - - - - Miscellaneous 3,874,022 3,837,952 5,364,701 4,868,998 5,604,775 5,241,492 5,562,802 4,113,263 3,546,379 4,468,301 Assets transferred to/liabilities assumed by Successor Agency - 1, 535,778 2,458,682 5, 293,678 (425,935) - - - - - Transfers (4,401,612) (1,591,754) (2,685,186) (1,728,023) (2,654,217) (2,152,823) (2,036,704) (1,678,302) (342,579) (1,113,531) Total governmental activities 67,953,347 74,692,086 81,649,186 89,597,505 88,288,008 91,180,027 99,438,300 100,387,619 106,108,242 104,670,021 Business-type activities:
Investment earnings 106,369 354,811 251,358 413,341 64,737 203,147 1,142,964 1,341,509 (18,397) (2,504,761) Miscellaneous 87,023 - - - - - - 248,687 42,841 103,812 Gain or (Loss) on sales or transfer of assets (40,393,415) - - - - - - - (7 ,943) - Insurance recoveries - - 69,208 - - - - - - - Transfers 4,401,612 1,591,754 2,685,186 1,728,023 2,654,217 2,152,823 2,036,704 1,678,302 342,579 1,113,531 Special Item(s) - see notes - - - - - (2, 832,157) - - - - Total business-type activities (35,798,411) 1, 946,565 3,005,752 2, 141,364 2, 718,954 (476,187) 3, 179,668 3,268,498 359,080 (1,287,418) Total primary government 32,154,936$ 76,638,651$ 84,654,938$ 91,738,869$ 91,006,962$ 90,703,840$ 102,617,968$ 103,656,117$ 106,467,322$ 103,382,603$ Change in Net Position
Governmental activities (1,475,089)$ 14,634,087$ 1 ,857,195$ 18,515,787$ 8 ,936,485$ ( 5,931,237)$ 9 ,779,772$ ( 2,812,419)$ 14,573,653$ 39,045,015$ Business-type activities (35,522,385) 5, 103,045 2,178,829 650,073 2, 509,969 1, 396,981 7, 036,477 7,071,117 8, 356,305 11,948,624 Total primary government (36,997,474)$ 19,737,132$ 4,036,024$ 19,165,860$ 11,446,454$ (4,534,256)$ 16,816,249$ 4,258,698$ 22,929,958$ 50,993,639$ Notes:
1 Effective fiscal year 2013 and beyond, the presentation of some financial data has changed to reflect the effects of the implementation of GASB 61 which eliminated the inclusion of the Vallejo Sanitation and Flood Control District as part of the primary government. This results in the financial activities of the Vallejo Sanitation and Flood Control District being discretely presented in the Component Unit column of the Statement of Net Position and the Statement of Activities.
The City did not retroactively restate the amounts prior to FY 2013 for the Net Position related to the implementation of GASB 61.
2 The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position". 3 The City implemented the provisions of GASB Statement 68 in fiscal year 2015.
Prior amounts have not been restated.
4 In fiscal year 2018, the City of American Canyon rescinded its decision to exercise an option to purchase additional water capacity rights from the City of Vallejo. A loan in the amount of $2,832,157 (representing prior year revenue) was written off and presented as a special item. 201
CITY OF VALLEJO ANNUAL COMPREHENSIVE FINANCIAL REPORT CIAL REPORT Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable 1,303,621$ 1,294,967$ 1,315,114$ 2,192,050$ 2,152,578$ 2,141,630$ 2,217,139$ 2,212,889$ 2,063,422$ 2,063,533$ Restricted 241,179 249,697 271,572 272,885 320,738 2,269,039 4,550,387 7,137,110 11,272,510 12,874,568 Committed 356,245 2,617,267 2,691,002 2,251,472 1,235,078 6,810 6,332 45,321 - - Assigned 5,233,259 7,910,909 9,302,184 11,102,326 10,993,484 4,208,034 876,025 943,125 5,365,698 5,021,176 Unassigned 9,797,270 6,944,336 7,976,200 9,929,786 15,679,786 21,235,769 24,508,900 17,982,247 21,682,816 23,172,169 Total General Fund 16,931,574$ 19,017,176$ 21,556,072$ 25,748,519$ 30,381,664$ 29,861,282$ 32,158,783$ 28,320,692$ 40,384,446$ 43,131,446$ All Other Governmental Funds
Nonspendable 102,072$ 240,832$ 102,072$ 71,236$ 78,324$ 67,625$ 567,625$ 81,473$ 64,625$ 64,625$ Restricted 52,151,109 55,992,171 55,838,343 58,248,081 60,205,695 61,118,236 66,768,664 72,615,022 83,291,818 86,535,867 Committed 9,799,861 9,045,767 6,028,419 6,806,813 8,924,377 16,777,334 25,300,037 17,885,776 15,588,495 20,637,997 Assigned 3,088 196,806 5,938,342 5,961,263 4,414,547 4,987,289 4,274,260 2,510,269 4,553,115 3,851,721 Unassigned - - - - - (9,438) (24,825) (595,122) - - Total all other governmental funds 62,056,130$ 65,475,576 $ 67,907,176 $ 71,087,393 $ 73,622,943 $ 82,941,046 $ 96,885,761 $ 92,497,418 $ 103,498,053 $ 111,090,210 $ Note: 1 The change in total fund balance for the
General Fund and other governmental funds is
explained in Management's Discussion and Analysis.
2 The City implemented the provisions of GASB Statement No. 54 in fiscal year 2011, and years prior to 2011 have not been restated to conform with the new presentation.
Fiscal Year Ended June 30
202
CITY OF VALLEJO ANNUAL COMPREHENSIVE FINANCIAL REPORTCIAL REPORT Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues:
Taxes 61,132,188$ 62,488,184$ 65,751,608$ 70,410,583$ 75,422,419$ 77,629,274$ 83,042,168$ 94,720,423$ 103,134,495$ 109,686,094$ Licenses and permits 1,814,364 2,457,440 3,741,906 4,026,167 4,034,816 3,985,042 4,662,555 3,181,487 3,817,064 5,500,565 Fines and forfeitures 1,249,687 2,337,703 1,876,686 1,878,579 1,605,515 1,706,754 1,580,309 1,132,232 965,979 1,025,271 Intergovernmental 47,132,738 50,356,902 41,097,037 45,197,746 43,606,471 42,460,083 50,635,285 39,336,033 50,451,756 44,443,275 Use of money and property 2,363,471 2,962,200 4,556,124 3,696,181 3,378,893 3,090,518 6,401,600 6,591,402 3,764,151 (2,006,546) Charges for services 16,182,809 16,714,747 18,866,133 19,429,149 20,257,999 21,270,315 21,595,852 18,785,099 19,036,318 20,069,339 *Other 1,295,826 505,843 1,320,781 1,426,715 1,004,441 861,713 1,192,467 2,875,861 4,061,972 3,355,783 Total revenues 131,171,083 137,823,019 137,210,275 146,065,120 149,310,554 151,003,699 169,110,236 166,622,537 185,231,735 182,073,781 Expenditures
Current:
Legislative and Advisory 275,664 207,903 264,854 294,088 298,748 296,548 327,843 282,191 223,806 245,690 Executive 2,747,243 3,600,970 3,794,952 2,641,913 2,758,675 2,689,380 4,944,170 4,949,359 4,958,483 4,345,600 Finance 1,183,251 1,636,027 1,636,916 2,102,912 2,047,751 1,806,258 1,706,608 1,559,129 1,593,385 1,821,777 Human resources 993,835 868,575 1,017,017 1,431,434 1,023,566 1,200,631 1,800,940 1,767,689 1,991,104 1,796,910 Law 1,027,329 1,116,788 692,338 1,133,882 1,272,898 1,272,770 1,464,430 1,240,867 1,203,752 1,699,110 Planning and Development services 1,878,237 2,604,498 2,755,399 3,047,840 2,955,960 3,191,261 3,919,849 4,201,831 3,887,618 3,632,335 Community Development 32,516,830 31,197,117 26,476,837 26,457,500 26,505,452 28,619,020 34,259,733 30,404,751 33,370,821 29,397,172 Fire services 20,917,691 23,462,547 24,645,684 25,569,791 26,514,402 27,557,155 27,962,324 30,053,612 31,157,788 33,093,529 Police services 34,681,714 34,139,510 36,807,817 39,698,362 41,240,618 42,639,055 43,602,177 47,183,454 50,667,071 48,574,836 Public works 13,210,589 14,543,079 16,976,530 15,123,636 14,870,274 16,658,784 17,050,014 20,944,860 16,057,504 17,593,041 Nondepartmental 12,171,647 7,516,587 4,118,675 4,552,327 5,879,195 6,170,178 5,329,057 5,169,323 5,873,876 6,776,925 Capital Outlay 9,716,431 8,826,479 12,543,661 14,073,942 11,326,920 5,930,613 10,692,669 24,823,151 20,473,183 15,486,383 Debt service:
Principal 275,131 397,268 746,689 927,301 963,929 988,971 1,014,954 1,232,812 2,303,276 2,001,267 Lease Payments - - - - - - - - - 15,181 Interest 204,899 186,276 358,575 343,902 307,273 282,531 256,548 318,356 261,924 341,337 Total expenditures 131,800,491 130,303,624 132,835,944 137,398,830 137,965,661 139,303,155 154,331,316 174,131,385 174,023,591 166,821,093 Excess (deficiency) of
revenues over (under)
expenditures (629,408) 7,519,395 4,374,331 8,666,290 11,344,893 11,700,544 14,778,920 (7,508,848) 11,208,144 15,252,688 Other financing sources (uses):
Issuance of Debt - - - - - - 1,700,000 1,305,000 - - Gain (loss) on sale of assets - 44,352 - 71,185 - - - - - - Transfers in 10,277,326 7,321,809 6,363,953 6,021,537 7,296,515 12,306,875 14,715,342 12,153,050 5,557,591 15,131,374 Transfers out (11,293,235) (9,380,508) (9,549,139) (8,249,560) (10,730,521) (15,209,698) (14,952,046) (14,181,352) (6,150,170) (20,044,905) Proceeds from long-term debt issuance 79,692 - - - - - - - - - Capital Leases** - - - - - - - 5,716 4,197,652 - Total other financing
sources (uses) (936,217) (2,014,347) (3,185,186) (2,156,838) (3,434,006) (2,902,823) 1,463,296 (717,586) 3,605,073 (4,913,531) Extraordinary/Special Item: