Visalia City Council
January 18, 2022

City Council Chambers
707 W. Acequia Ave.

Visalia, CA
City of Visalia
City Council
Meeting Agenda - Final
Mayor Steve Nelsen
Vice Mayor Brian Poochigian
Council Member Greg Collins
Council Member Brett Taylor
Council Member Liz Wynn
Tuesday, January 18, 2022 7:00 PM City Council Chambers

ROLL CALL

CALL TO ORDER WORK SESSION

PUBLIC COMMENTS
Citizens are now invited to comment on issues within the jurisdiction of the Visalia City Council. The Council asks that you keep your comments concise and positive. Creative criticism, presented with appropriate courtesy, is welcome.

Each speaker will be allowed three minutes and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

WORK SESSION AND ACTION ITEMS (as described)

1. Receive presentation from Nielsen, Merksamer, Parrinello, Gross & Leoni (NMPGL) on 2021 state legislative activity and approve 2022 State Legislative Platform for the City of Visalia.
21-0593

2. Receive the Annual Comprehensive Financial Report (ACFR) for the City of Visalia for the 2020-21 fiscal year.
21-0657

3. Review of Annual Measure T Compliance Audit for fiscal year ending 6/30/21.
21-0658

4. Review of Annual Measure N Compliance Audit for fiscal year ending 6/30/21.
21-0659

5. Consideration and direction regarding an update to the Caltrans Lovers Lane Roadway Rehabilitation and Operational
Improvements Project at State Route 198.
21-0670

1 City Council Meeting Agenda - Final January 18, 2022

6. Presentation by representatives from the California Department of Transportation (Caltrans) for consideration and direction regarding Caltrans State Route 198 east bound offramp modification project at Watson Street/Noble Avenue.
21-0677

ADJOURN TO CLOSED SESSION

CALL TO ORDER REGULAR SESSION

PLEDGE OF ALLEGIANCE

INVOCATION

ITEMS OF INTEREST

PUBLIC COMMENTS
This is the time for citizens to comment on subject matters that are not on the agenda and within the jurisdiction of the Visalia City Council. The Council asks that you keep your comments brief and positive. Creative criticism, presented with appropriate courtesy, is welcome.

This is also the time for citizens to request an item from the Consent Calendar be pulled for discussion purposes. Public comments related to all pulled Consent Calendar items and Regular or Public Hearing items listed on the agenda will be heard at the time that item is discussed or when the Public Hearing is opened.

Each speaker will be allowed three minutes, and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

CONSENT CALENDAR
Consent Calendar items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Authorization to read ordinances by title only. 21-0496

2. Authorize the City Manager to award RFP #20-21-49 Annual Community Forest Maintenance Contract to West Coast Arborist, Inc. of Fresno, CA in an amount not to exceed $1,000,000 per year to perform tree maintenance services per specifications of RFP #20-21-49. 21-0582

3. Authorization for the City Manager to enter into a contract with Shape, Inc. of Pleasanton, Ca as a sole source vendor to purchase four (4) 25HP, 480volt 3-phase submersible pump and motors for the Airport lift station in the amount of $200,351.40, and appropriate the funds for payment from the Wastewater Treatment Plant fund (431).
21-0652

2 City Council Meeting Agenda - Final January 18, 2022

4. Authorization for the City Manager to enter into a sole source contract with Telstar Instruments for upgrades to the Water Reclamation Facility (WRF) and Sewer Collections Supervisory Control and Data Acquisition (SCADA) system in the amount of $243,329.00 and an appropriation from the Wastewater Treatment Plant fund (431).
21-0660

5. Authorize City Manager to execute Operations and Management Agreement of the Plaza Park Raceway with Morse Racing
Promotion LLC for one (1) year.
21-0663

6. Annual fee waiver request from Visalia Gadabouts to utilize the Visalia Senior Center for the purpose of providing programs and services for senior citizens.
21-0672

7. Authorize the City Manager to award a contract for RFB 21-22-07 Annual contract supply & delivery of mulch for a not to exceed the annual amount of $275,100.00 to Sierra Materials and Trucking Company of Merced, CA.
21-0673

8. Authorize the City Manager to award the construction contract for FY 18-19 SB1 Street Rehabilitation - Walnut & Murray (RFB 21-22-11), to Don Berry Construction, Inc. of Kingsburg, CA in the amount of $2,668,774.30 (CIP 3010-72000/CP0289-999 &
2370-72000/CP0402-999 ).
21-0676

9. Authorize the annexation and amendment of Landscape and Lighting Assessment District (L&LD) No. 20-04, “Walnut Park Estates”; and ordering the improvements and levying the annual assessments for Landscape and Lighting Assessment District (L&LD) No. 20-04 “Walnut Park Estates”, a subdivision located on the north and south sides of West Hillsdale Avenue between North Marcin and North Preston Streets (Resolution Nos. 2022-01, 2022-02 required).
21-0681

10. Authorize the City Manager to submit a grant application to the California Department of Transportation (Caltrans) for the Clean California Local Grant Program (CCLGP) Call for Projects.
21-0682

11. Authorize the purchase of 11 LifePak 15 cardiac monitors and required accessories from Stryker Corporation for the amount of $331,944.99 as approved in the American Rescue Plan Act (ARPA) project fund (6420-72000/EQ0191-999).
21-0686

12. Introduction and first reading of Ordinance No. 2022-02, authorizing four (4) individual four (4) year leases for hangar space in the newly completed four (4) unit Corporate Hangar at the Visalia Municipal Airport to Robin Martella, Rick Bissat, Juan Rodriquez, and Joe Dawkins for the purposes aircraft storage, at the rate of Twenty-One Thousand Dollars ($21,000) annually each.
22-0001

3 City Council Meeting Agenda - Final January 18, 2022

13. Second reading and adoption of Ordinance No. 2021-11, authorizing the conditional 35-year lease of a parcel of approximately 65,000 sq feet of unimproved property at the Visalia Municipal Airport to Aircraft Mechanical Services (AMS) Inc for the purposes of a new aircraft maintenance facility, at the rate of Twenty-Eight Thousand and Eighty Dollars ($28,080) annually.
22-0002

REGULAR ITEMS AND PUBLIC HEARINGS
Comments related to regular Items and Public Hearing Items are limited to three minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Presentation of the proposed 2022 Citizens Advisory Committee (CAC) Annual Public Opinion Survey
21-0690

2. Consider the extension of Ordinance No. 2021-10, an interim zoning ordinance adopted as an urgency measure to regulate the location of smoke shops and tobacco shops, Citywide. (4/5’s approval of the Council required for passage.)
21-0685

3. A Public Hearing to consider an appeal of the Planning Commission’s approval of Conditional Use Permit No. 2021-28, a request by Caldwell-Mooney Partners II, L.P. to allow a medical use within a portion of an existing 10,200 square foot multi-tenant commercial building. The new medical clinic will be approximately 6,526 square feet in area and will be located within the C-R (Regional Commercial) zone district. The project is located at 3221 South Mooney Boulevard (APN: 121-100-054).
21-0687

4. A Public Hearing to consider an amendment to Conditional Zoning Agreement No. 2021-11: A request by CenterPoint Integrated Solutions to amend Conditional Zoning Agreement No. 2003-01, removing provisions that prohibit the establishment of a “stand-alone” used automobile sales use, and adding development standards for “stand-alone” used automobile sales uses for the Visalia Auto Plaza located within the C-S (Service Commercial) Zone. The Visalia Auto Plaza is located west of North Neeley Street, north of West Camp Drive, and south of the Mill Creek Ditch (APN: 081-020-085).
21-0692

CLOSED SESSION REPORT

4 City Council Meeting Agenda - Final January 18, 2022

1. For the purposes of reporting out, for the record, transactions that occurred as a result of Closed Session Real Property Negotiations:

Buyer: City of Visalia
Seller: Lone Oak Ranch, Inc., a California corporation
APN: 077-840-002 (portion) & 077-840-003 (portion)
Brief Description: Riggin Widening Project - Kelsey to Shirk Price: $475,000.00
Closing Date: 12/28/21
Project Manager: Diego Corvera
For the purposes of reporting out, for the record, transactions that occurred as a result of Closed Session Real Property Negotiations:

Buyer: City of Visalia
Seller: Joseph C. Martin III and Debra K. Martin, husband and wife as joint tenants
APN: 119-340-005 (portion) & 119-340-006 (portion)
Brief Description: Caldwell Widening Project - Akers to Shady Price: $8,800.00
Closing Date: 12/30/2021
Project Manager: Fred Lampe
21-0689

ADJOURNMENT

1. Upcoming Visalia City Council Meetings:

Friday, January 28, 2022 @ 8:30 AM - Special Meeting - Strategic Planning Session
Monday, February 7, 2022 @ 7:00 PM
Tuesday, February 22, 2022 @ 7:00 PM (2/21/22 - Monday
Holiday)
22-0024

5 City of Visalia
Staff Report
City Council Chambers
707 W. Acequia Ave.

Visalia, CA
File #: 21-0593 Agenda Date: 1/18/2022 Agenda #: 1.

Agenda Item Wording:

Receive presentation from Nielsen, Merksamer, Parrinello, Gross & Leoni (NMPGL) on 2021 state legislative activity and approve 2022 State Legislative Platform for the City of Visalia.

Deadline for Action: 1/18/2022
Submitting Department: Administration
Contact Name and Phone Number: Devon Jones, 4190
Department Recommendation:

1. Receive presentation from Nielsen, Merksamer, Parrinello, Gross & Leoni (NMPGL) on 2021 state legislative activity and provide input to NMPGL and city staff on any state advocacy priorities for 2022, and

2. Approve 2022 State Legislative Platform for the City of Visalia authorizing the Mayor to sign letters in support or opposition based on the positions stated in the platform.

Background Discussion:

Nielsen, Merksamer, Parrinello, Gross & Leoni LLP (NMPGL) is the current service provider for state lobbying services. The lead lobbyist for the City of Visalia is John Moffatt, a Partner in the firm, as well as Senior Counsel Michelle Rubalcava and Manager of Research for Legislation and Public Policy, Andrew Langley. In the previous 5 years that the firm has represented the city in state legislative issues, Mr. Moffatt and his support staff have been consistently responsive to city issues, up to date on legislation as it moves through various committees to the Assembly and Senate, have scheduled meetings with appropriate legislative representatives and agency staff, and testified on the city’s behalf on issues the City Council has identified as its priorities for the legislative session. Mr.

Moffatt has also served as the city’s representative in Sacramento on numerous issues with State agencies.

NMPGL is presenting on the prior legislative year to give an overview of state legislative activity and will discuss the coming year and issues that will be areas of focus. NMPGL and city staff will also be seeking any input the Council may have for priority areas of focus, or any other comments/insight for the year ahead.

Additionally, based on previous stances on legislation and direction from City Council and city staff, NMPGL has developed a draft comprehensive state legislative agenda for the city outlining proposed positions on a broad array of state legislative items. The platform identifies positions of support, opposition, and continued monitoring on a
variety of issues of importance to city leaders and staff. Upon approval of the platform, the mayor may sign letters to legislators or appropriate agencies advocating the city’s position as stated in the platform, and Council Members and/or staff may use the platform to discuss the city’s position with interested parties. If there is legislation or new information that could lead to a change in the city’s City of Visalia Page 1 of 2 Printed on 1/14/2022
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File #: 21-0593 Agenda Date: 1/18/2022 Agenda #: 1.
position, recommendations on that change will be brought back to the Council for formal consideration. Copies of letters that are sent on behalf of the city that are consistent with the platform will be
provided to the Council for informational purposes. The Council may choose to revise the platform to incorporate any changes proposed and agreed upon by Council.

Fiscal Impact: None
Prior Council Action: 11.15.21 - authorized new service contract with NMPGL for state legislative advocacy services, 11.16.20 - authorized 4th and final annual extension of current state legislative advocacy service contract with NMPGL, originally approved by Council on 11.7.16.

Other: N/A
Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):

I move to receive presentation from Nielsen, Merksamer, Parrinello, Gross & Leoni and approve the 2022 State Legislative Platform for the City of Visalia.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: NMPGL City of Visalia - 2021 session review, and Draft 2022 State Legislative Platform for the City of Visalia
City of Visalia Page 2 of 2 Printed on 1/14/2022
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CITY OF VISALIA
2022 STATE LEGISLATIVE PLATFORM
The Legislative Platform sets forth the City’s goals and priorities for the 2022 State Legislative Year. It includes policy statements that provide direction to staff and the City’s Legislative Advocates during the year and sets forth recommendations on positions the City may take on a variety of issues that could be addressed in the upcoming legislative session. Guided by the Platform, staff can effectively respond to new legislation in a timely manner. It allows the Mayor, City Council or the City Manager to send letters to the Legislature with positions consistent with the Platform. The Platform also provides a vehicle for summarizing the City Council’s position on priority issues without precluding the consideration of additional legislative and budget issues that arise during the legislative session.

GENERAL PRINCIPLES
Support legislation that provides governmental decision making at the local level where it provides the most effective, efficient results.

Support reforms in the State-local fiscal relationship that will improve the City’s ability to finance and efficiently administer both mandated and discretionary services while opposing legislation that creates mandates without State funding sources to carry them out.

Support legislation to preserve and build the City’s job base and to improve the regulatory climate for private enterprise and infrastructure development.

Support State investment in local infrastructure; tax and financial incentives that will encourage the sustainability and growth of new and existing businesses in the City.

Support public safety measures, including funding programs, designed to enhance the City’s efforts to protect its citizenry.

LOCAL CONTROL
Support legislation that promotes local land use authority and that authorizes and incentivizes, but does not mandate, the formation of regional alliances.

Oppose legislation that withholds local transportation funds, or funds of any kind, in lieu of complying with any State mandates.

Support a flexible approach to addressing climate change that uses fiscal and other incentives to meet technically achievable and practical goals in reducing emissions.

Support reforms that simplify, consolidate, standardize, reduce or eliminate data-gathering and reporting requirements imposed on cities.

Oppose legislation that proposes restrictions on the city’s ability to address the issue of homelessness within our community.

Support legislation that provides additional state funding and other resources for the city to address the issue of homelessness within our community.

Oppose legislation that would require prevailing wage on additional projects not already subject to prevailing wage.
8 PUBLIC WORKS & TRANSPORTATION
Support legislation pertaining to the Americans’ with Disabilities Act (ADA) in California, particularly as it relates to requirements for ADA improvements and provides an “opportunity to cure” before litigation may be initiated.

Support legislation that provides distribution of necessary State funding for road, highway and public transit projects at the city’s discretion.

Support legislation that provides additional new funding for both road maintenance and capacity increasing projects and is funded by a variety of state funding sources including, but not limited to, the state General Fund and funds from the Greenhouse Gas Emissions Reduction Fund.

Oppose legislation that shifts taxation from fuel sales taxes, constitutionally guaranteed for local transportation, to excise taxes, which are not similarly protected.

Support the maintenance of the State Public Transportation Account and Proposition 1B allocations specifically intended for Transit.

Monitor legislation and other proposals that could impact the planning, funding and development of the High Speed Rail in California, and specifically a Kings-Tulare station conveniently accessible to Visalia residents.

Support full funding for the State Aeronautics Division of the California Department of Transportation to ensure that there is the aeronautical infrastructure statewide to support economic development, especially in jurisdictions where general aviation access can be an economic stimulus.

Support State appropriations or bond measures that develop alternative fuel infrastructure on Highways 5 and 99 through the Central Valley such as LNG for heavy trucks, CNG, and BEV charging stations.

Support State appropriations to fund programs to expand facilities for storing, banking, replenishing, conveying, distributing, conserving, and reclaiming water, and for flood control and storm water management.

Monitor and oppose legislation and/or regulations that create undue burdens or costs on groundwater recharge with recycled wastewater.

Support legislation that improves efficiencies in the California Public Utilities Commission’s processes.

Support legislation that allows the sharing of water use information between public and private entities in an effort to comply with the State Water Resources Control Board’s mandatory conservation target for the City of Visalia.

PUBLIC SAFETY
Support programs, funding and legislation designed to enhance local and regional efforts to maintain public safety, including gang prevention and suppression.

Support State funding for staff training and equipment in Fire Safety.

Support funding for regional coverage by the City’s Type 1 Regional Haz-Mat team. 9 Support additional funding for Central Valley counties for AB 109 prison realignment purposes.

Monitor legislation regarding police use of force and mandated body cameras for police officers.

Monitor legislation that amends or attempts to remedy increasing crime rates that have resulted from the passage and implementation of Proposition 47.

Monitor the ongoing implementation of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016.

FINANCE
Support legislation that would stabilize funding for the State’s pension programs.

Support State legislation which facilitates the local collective bargaining process and the City’s ability to fairly manage and compensate its employees.

Support legislation to provide greater authority to generate local revenues for discretionary services and to protect local revenue streams against State budgetary incursions.

Monitorthe enactment of Workers’ Compensation reforms to ensure lower costs and increased effectiveness for employers and equitable benefits to employees.

Monitor legislation that would broaden the sales tax base, eliminate sales tax exemptions or reconfigure the sales tax system with the intent to consider the comprehensive impacts before taking a position.

Oppose legislation that would result in the reduction of local share of taxes with the primary focus of the legislation being a state issue or statewide program.

COMMUNITY DEVELOPMENT
Support funding and incentives that promote smart growth and sustainable development at the discretion of the City.

Support legislation that creates clear, fair and equitable emission reduction goals that can be realistically achieved and do not infringe on local government land use authority.

Oppose legislation that eliminates local decision making authority on the use and disposition of carbon credits earned by the city.

Monitor legislation that requires carbon credit offsets for future development within cities like Visalia.

Support legislation that clarifies and simplifies state requirements for local General Plans.

Support legislation and grants that promote the development and funding of affordable, sustainable, and accessible housing within the City.

Support legislative efforts to establish an affordable housing program exclusively for cities, housing authorities and non-profit organizations to acquire existing multi-family dwellings to rehabilitate and create affordable units for qualifying families.

Support legislative efforts to increase the amount of state funding available for local affordable housing 10 projects.

Support legislation that establishes new neighborhood revitalization programs, appropriately focused on affordable housing, and the elimination of urban blight.

Oppose legislation that reduces or dilutes local government controls over land use decision making.

Oppose legislation to impose State regulations on federal programs such as CDBG, HOME, and NSP.

ENVIRONMENTAL QUALITY
Supportstreamlining of environmental regulations and permitting in order to reduce costs and unnecessary delays.

Water:

Support the retention of the City’s ability to manage programs efficiently, cost-effectively, and without excessive permitting requirements in carrying out State mandates for environmental protection and waste disposal.

Support State appropriationsto fund programs and projects to expand facilities for storing, banking, conveying, distributing, conserving, and reclaiming water, groundwater recharge, and for flood control and storm water management.

Monitor legislation that makes any changes to the Sustainable Groundwater Management Act of 2014. Any legislation should continue to support local control in the implementation of groundwater regulation.

Monitor legislation that aims to address long term groundwater sustainability.

Storm Water:

Monitor and engage in rule-making for legislation regarding the ability to treat storm drain systems as a utility.

Solid Waste:

Monitor and engage in legislation regarding landfill diversion and mandatory commercial recycling mandates.

Monitor and engage in rule-making for SB 1016, adopted in 2007, for changes to methods of calculating landfill diversion compliance from tonnages diverted from landfills to Pounds-Per-Person-Per-Day taken to landfills.

Monitor all recycling legislation, including but not limited to bills that impact household hazardous waste diversion, alternative daily cover and bottle and can recycling.

Monitor and engage in rule-making for SB 1383, which requires increasing organics recycling over the next several years.

Energy:

Support legislation that provides more local control and flexibility for use of rate-payer subsidized Public Goods Funds for energy efficiency and alternative energy projects.

Support increased funding of the California Solar Initiative and the California Energy Commission 1% interest loans for Energy Efficiency and Energy Generation Projects using Proposition 39 or other sources. 11 Support legislation that would compensate local government, businesses, and residents at market rates for alternative energy generation, including solar through feed-in tariffs.

Department of Toxic Substances Control:

Support legislation that places appropriate limits on the ability of the California Department of Toxic Substances Control to seek reimbursement from municipalities for exploratory PCE searches and activities.

Support a State allocation of bond funding for PCE groundwater management and clean-up.

ECONOMIC DEVELOPMENT
Support legislation that reforms the California Environmental Quality Act (CEQA) in a manner that reduces litigation and eliminates CEQA as a tool to stifle economic development in California.

Support legislation that is designed to provide local governments with the tools necessary to bolster economic development and efforts to streamline initiatives that would enhance the City’s ability to attract and retain businesses, as well as, encourage business expansion and job retention.

Support legislation that increases local access to post-high school education and other workforce development opportunities, including the promotion and creation of apprenticeship programs.

Support legislation that requires the UC and CSU system to study the need for a new campus in the southern Central Valley between Fresno and Bakersfield.

QUALITY OF LIFE
Parks and Recreation:

Support legislation and funding for parks, recreation and capital improvements, and programs which increase the quality of life for the community and improve the public health and well-being of its citizens.

Support grants and legislation that provide for appropriate construction, rehabilitation and maintenance of public recreational facilities.

Animal Care:

Support legislation and funding that provide for quality care and shelter for impounded animals, including laws that allow local discretion for reasonable and cost-effective holding time of animals.

Support measures that facilitate responsible pet ownership and licensing.

Oppose animal services or care measures which impose state-mandated costs with no guarantee of local funding.

Arts & Culture and Tourism:

Support legislation and funding for programs and facilities which serve to enhance arts and culture development and provide opportunities for tourism.
12 City of Visalia
2021 Legislative &
Executive Branch Review
2022 Overview
1 13
Representing the City
• Michelle Rubalcava
• Two Main Areas
– Legislative Branch
– Executive Branch/Regulatory
• Political Law Compliance and Reporting
2 14
2021 Legislative Summary
• 2,203 bills introduced in 2021
– 1,527 Assembly Bills
– 676 Senate Bills
• 836 bills sent to Governor’s desk (38%)
• Total Bills Signed into Law: 770
(92%)
• Total Bills Vetoed: 66 (7.9%)
3 15
2021 Legislative Efforts
• 146 bills tracked for the City of Visalia
• 59 bills watched
– 25 died in the legislature
• Subject Matter
– Housing
– Homelessness
– Economy
– COVID-19
4 16
Bills with Positions
• SB 9 (Housing Development) – Oppose unless
Amended/Neutral - Signed
• SB 106 (Mental Health Services) – Watch – Held
in Legislature
• SB 387 (Pupil Health) – Support – Held in
Legislature
• AB 377 (Water Quality) – Oppose – Held in
Legislature
• AB 1434 (Indoor water use) – Oppose – Held in
Legislature
5 17
Executive Branch/Regulatory Issues
• COVID-19/State Orders
• Water
– Sustainable Groundwater Management
– Outdoor water use
• Recycling
• Homeless shelters/funding
• Industrial Park/Energy Needs
6 18
2022 Process
• Capitol access remains limited
• Calls/Video meetings
• Remote Hearings
• Remote voting by legislators
7 19
Redistricting
• City of Visalia split across two districts
• Senate
– SD 12 – Anna Caballero
– SD 16 – Shannon Grove
• Assembly
– Current – AD 26 – Devon Mathis
– AD 32 – Rudy Salas
– AD 33 – Thurston Smith
8 20
Governor’s Budget Proposal
• Unveiled Monday Jan 10
• $286 billion spending plan
– $45.7 billion surplus
• Major investments areas
 COVID-19, including increased vaccines, testing, and medical personnel.
 Homelessness, including mental health housing and encampments.  Climate Change, including forest management and drought response.  Affordability, including healthcare coverage, child care, housing, and small business relief.
 Safer Streets, including local law enforcement grants and gun buybacks.
9 21
Housing
• $500 million one-time General Fund over two years ($225 million in 2022-23, and $275 million in 2023-24) for the Infill Infrastructure Grant program.
• $300 million one-time General Fund over two years ($75 million in 2022-23, and $225 million in 2023- 24) for the Affordable Housing and Sustainable Communities Program • $100 million one-time General Fund over two years ($25 million in 2022-23, and $75 million in 2023- 24) to expand affordable housing development on state excess land sites • $100 million one-time General Fund over two years ($50 million in 2022-23, and $50 million in 2023- 24) for adaptive reuse incentive grants.
• $500 million one-time General Fund for the Low-Income Housing Tax Credit Program to help spur housing construction.
• $200 million one-time General Fund over two years ($50 million in 2022-23, and $150 million in 2023- 24) for the California Housing Finance Agency to provide loans to developers for mixed-income rental housing
• $200 million one-time General Fund over two years ($50 million in 2022-23, and $150 million in 2023- 24) for the Portfolio Reinvestment Program to further preserve targeted units in downtown-oriented areas
• $100 million one-time General Fund over two years ($25 million in 2022-23, and $75 million in 2023- 24) for HCD’s Mobile home Park Rehabilitation and Resident Ownership Program. 10 22
Drought
• $750 million to support drought resilience and
response.
– $145 million for local emergency drought assistance
and grants to local water agencies facing a loss of
water supplies.
– $30 million for groundwater recharge projects.
– $250 million for drought contingency planning.
• $3.725 billion in federal dollars over the next five
years to improve local water infrastructure.
11 23
Revenue and Taxation
• Eliminates the usage limits of net operating losses.
• New tax credit to incentivize climate change adaptation companies to headquarter or maintain headquarters in California.
• Improves the Shuttered Venue Operators Grant by conforming California’s tax handling of these grants to the federal treatment
• Maintains the State and Local Tax deduction workaround through a passthrough entity tax and makes statutory changes to improve access by various entities.
• Pauses the annual gas tax inflation adjustment. This pause is expected to decrease fuel tax revenues by $523 million in 2022-23 based on an estimated 5.6 % inflation rate. The Administration intends to hold local revenues harmless. • Tax years 2019, 2020, and 2021, families with less than $150,000 in adjusted gross income ($75,000 for individuals) will have until Sept. 30, 2023, to pay any personal income tax liability for those years and will be relieved of any penalties and interest related to delayed filing or delayed payment. 12 24 Transportation
• $9.1 billion of one-time General Fund and bond funds over two years for transportation programs
– $4.2 billion to complete the construction of high-speed rail in the Central Valley
– $2 billion for high-priority transit and rail infrastructure projects – $750 million for active transportation networks
– $500 million for high-priority grade separation projects – $400 million for state and local climate adaptation projects • $4.5 billion two-year increase of base federal funding from the federal Infrastructure Investment and Jobs Act for highways, roads, transit, safety, research, and other transportation activities.
• $2.3 billion for supply chain investments, including $1.2 billion for port, freight, and goods movement infrastructure and $1.1 billion for other related areas, such as workforce training, zero-emission port equipment, and infrastructure related to the supply chain.
13 25
Pandemic Response
• $1.4 billion in early action to maintain and expand
COVID-19 mitigation efforts, including efforts to
increase vaccination rates and testing.
– $214 million to maintain and expand testing operations. – $399 million for vaccine distribution and administration. • $1.3 billion for 2022-23 to continue COVID-19
mitigation efforts.
– $362 million for testing.
– $182 million for vaccine distribution and administration. • Ongoing legislative discussions to modify the previous COVID-19 Supplemental Paid Sick Leave policy.
14 26
Homelessness
• $2 billion increase over the next two years to expand access to housing for vulnerable populations with complex behavioral health conditions and people living in encampments.
• $1.5 billion increase for Department of Health Care Services Behavioral Health Continuum Infrastructure Program to purchase and install tiny homes and provide operational supports. • $500 million increase for jurisdictions to invest in rehousing strategies for people experiencing homelessness in encampments around the state.
• $10.6 million annually for three years to continue the Returning Home Well Program to provide transitional housing to parolees at risk of housing insecurity or homelessness.
15 27
2022 Legislative Platform
• Purpose is to provide guidance to city staff
and NM to allow more nimble response as
bills move through the legislative process.
• Minor updates to previously approved
platform
16 28
Thank you!
17 29
City of Visalia
Staff Report
City Council Chambers
707 W. Acequia Ave.

Visalia, CA
File #: 21-0657 Agenda Date: 1/18/2022 Agenda #: 2.

Agenda Item Wording:

Receive the Annual Comprehensive Financial Report (ACFR) for the City of Visalia for the 2020-21 fiscal year.

Deadline for Action: 1/18/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Kari Williams 713-4298
Department Recommendation:

It is recommended that the City Council acknowledges receipt of the ACFR for the year ended June 30, 2021 and provide comments as appropriate.

Background Discussion:

The attached Fiscal Year (FY) 2020-21 ACFR represents the City’s financial, operational, and current economic condition for the fiscal year ending June 30, 2021. The City’s financial statements for this period have been audited by The PUN Group, Certified Public Accountants, the City’s independent auditing firm.

Their Independent Auditors Report has been incorporated into the ACFR document. This item is presented to the City Council each year for review and acknowledgement.

State law requires the City of Visalia to prepare a complete set of audited financial statements. The attached 2020-21 ACFR fulfills this requirement.

The City’s Independent Auditors, The PUN Group, have audited the City’s financial statements prepared by Finance staff for the fiscal year ended June 30, 2021 and have provided an unqualified (clean) opinion. An unqualified opinion concludes that the ACFR presents fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City; and the respective changes in financial position.

The ACFR is prepared annually in accordance with generally accepted accounting principles (GAAP) and reporting standards established by the national Governmental Accounting Standards Board (GASB), as verified during the independent auditor’s examination. The June 30, 2021 ACFR continues to comply with the GASB reporting standards.

The financial statement information and audit opinion, as well as additional narrative and statistical information, is presented within the ACFR. Below is a listing of the different sections in the report:
• Transmittal Letter by the City Manager and Finance Director • Independent Auditor’s Report
• Management’s Discussion and Analysis
• Government-wide Financial Statements
• Fund Financial Statements
• Notes to Basic Financial Statements
• Required Supplementary Information
• Supplementary Information: Combining Statements and Budgetary Comparison Schedules City of Visalia Page 1 of 11 Printed on 1/14/2022
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• Statistical Section
• Compliance Section
The City issues copies of its ACFR to financial institutions and credit rating agencies for use in evaluating the City’s financial position, as well as to the City Council, City Management, and interested citizens. The City’s ACFR will also be available on the City’s web site.

The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting which is only valid for a period of one year. The City recently received this award for the prior fiscal year (2019-20) and has now received the award for excellence in financial reporting for 35 consecutive years. The current report has been submitted and is under consideration for award. City staff believes the current report continues to exceed financial reporting standards.

New Reporting Requirements
The following Governmental Accounting Standards Board (GASB) Statements have been implemented in the current financial statements:

GASB Statement No. 84, Fiduciary Activities.

The objective of the Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has implemented this statement for the June 30, 2021 year end.

GASB Statement No. 90, Majority Equity Interests.

The primary objectives of this statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The provisions of this statement are effective for fiscal year 2020-21. There was no effect on the financial statements as a result of implementing this statement.

GASB Statement No. 93, Replacement of Interbank Offered Rates (IBOR) objective of this statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The provisions of this statement are effective for fiscal year 2020-21.

There was no effect on the financial statements as a result of implementing this statement.

GASB Statement No. 98, The Annual Comprehensive Financial Report This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021.

Financial Statements
The financial statements are separated into Governmental and Enterprise (Business) type funds.

Governmental Funds and Enterprise funds have different methods of accounting. Table 1 - Governmental and Enterprise Funds shows these differences.

Table 1- Governmental and Enterprise Funds
Governmental
Funds
Enterprise
Funds
Capital Assets Not Included Included
Debt Not Included Included
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Governmental
Funds
Enterprise
Funds
Capital Assets Not Included Included
Debt Not Included Included
Depreciation Not Included Included
Net Pension
Liability (GASB 68) Not Included Included
Governmental Funds
Governmental funds are prepared on the modified accrual basis of accounting, which means they measure only current financial resources and uses. This basis focuses on (1) how cash and other financial assets can be readily converted to available resources and (2) the balances left at year-end that are available for spending. Capital assets and other long-lived assets along with long-term liabilities are not presented in the Governmental Fund Financial Statements. The City uses governmental funds to account for the General Fund (which includes the Emergency Reserve Fund), Measure N, Housing and Community Grants, Housing Successor, American Rescue Plan, as well as many other special revenue and capital project funds such as Measure T and Measure R. 2020-21 ACFR Summary
Surprisingly, fiscal year 2020-21 saw significant growth in all revenue categories for Visalia despite the restrictions and impact on the economy from the continuation of the COVID-19 pandemic. We can only surmise that the record breaking stimulus packages issued by the Federal and State government, combined with the gradual reopening in the early part of 2021 from the historic lockdowns, contributed to this growth. Nationally, for June 2021, Gross Domestic Product (GDP) came in at 6.7% reflecting the continued economic recovery, reopening of establishments, and continued government stimulus support. GDP refers to a country’s economic growth rate. A 2-3% GDP is generally considered a healthy GDP. The national unemployment rate as of June 2021 was at 5.9%, a very good improvement compared to the 14.7% we saw in April 2020. The Federal Reserve likes to see a natural unemployment rate of 4%.

Fiscal year 2020-21 ended the year with an overall increase of $7.6 million in the total economic-sensitive revenue category for the General Fund as shown in Table 2 - Economic Sensitive Revenues.

Table 2 - GF Economic Sensitive Revenues
Description FY 19/20 FY 20/21
Increase Over
Prior Year % Increase
Sales Tax $ 34,213,847 $ 38,986,517 $ 4,772,670 14%
Property Tax 26,281,706 27,884,766 1,603,060 6%
Transient Occupancy Tax 2,727,385 3,323,538 596,153 22% Franchise Fees 2,669,467 2,795,357 125,890 5%
Business License 2,538,135 3,088,633 550,498 22%
Total $ 68,430,540 $ 76,078,811 $ 7,648,271 11%
Sales Tax grew at 14% for fiscal year 2020-21, partially due to the Federal stimulus money issued which allowed consumers to continue to spend as well as the reopening of establishments. The main areas of the growth in Sales Tax for Visalia were in General Retail (department stores, apparel stores) which grew $1.5 million; Business to Business (office equipment, industry) which grew $1.4 million; and Transportation (auto sales, service stations) which grew $.8 million. Property Tax maintained its growth trend increasing 6% as existing houses sales, new development, and property values increased in Visalia. The ending of the shelter in place and reopening of things City of Visalia Page 3 of 11 Printed on 1/14/2022
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development, and property values increased in Visalia. The ending of the shelter in place and reopening of things in California really was evident in Transient Occupancy Tax (TOT) revenue as fiscal year 2020-21 had an increase of 22% as compared to last year. Fiscal year 2019-20 had a large decrease in revenue due to the COVID-19 travel restrictions and historic shutdowns imposed by the State of California. If fiscal year 2019-20 would have had normal growth levels, this year’s growth in TOT would be an estimated 5%. Franchise Fee revenue had an increase of 5% in fiscal year 2020-21 mainly due to increases in gas and electric revenue. Business License revenue increased 22% as compared to last fiscal year as several businesses remitted current and prior year delinquencies in order to bring their accounts current in fiscal year 2020-21. Businesses had to have a current business license which meant delinquencies had to be paid in order to qualify for various COVID-19 relief programs.

Visalia has 12,505 licensed businesses operating in the City, an increase of 190 as compared to last year. These businesses include private manufacturing, technology research, retail and service businesses, educational services, healthcare and social assistance, consulting, arts and entertainment, hospitality services, along with non -profit institutions.

Fiscal year 2020-21 ended with strong growth in the main General Fund revenue categories of Sales Tax, Property Tax, and Other Taxes, which consists of Transient Occupancy Tax and Franchise Fee revenue. The COVID-19 pandemic continued to affect the economy across the state and nation for most of the fiscal year, however, with continued stimulus support from the Federal and State government and the gradual reopening from the historic lockdowns, consumers continued to spend the extra funds available to them and returned to a fraction of their normal life with travel, retail, and restaurant patronage. For most of the fiscal year, staffing levels were reduced where needed and staff continued to monitor expenses. With careful management, the City was able to continue to provide limited-service enhancements, infrastructure improvements, and increases in employee compensation. As shown in Table 3 - General Fund Statement of Revenues & Expenditures, the General Fund ended the year with a change in fund balance and surplus of $13.02 million. The City received Coronavirus Relief Funds (CARES Act) of $1.7 million which helped offset expenses and contributed to the General Fund surplus.

The large surplus is also due to vacancies throughout the City, especially in Public Safety, where a large number of vacancies for fiscal year 2020-21 were actively being recruited for.

Table 3 - General Fund & Emergency Reserve Summary
(in millions)
General
Fund
Emergency
Reserve Total
FY 20/21 FY 20/21 FY 20/21
Revenues $ 84.20 $ 0.06 $ 84.26
Expenditures $ 67.26 $ - $ 67.26
Over/(Under) Expenditures $ 16.94 $ 0.06 $ 17.00
Other Financing Sources (Uses) $ (3.92) $ - $ (3.92)
Net Change in Fund Balance $ 13.02 $ 0.06 $ 13.08
Surplus $ 13.02 $ 0.06 $ 13.08
Transfer surplus to Emergency Reserve Fund* $ (0.39) $ (0.39) Transfer surplus to Civic Center Fund* $ (12.24) $ (12.24) *Note - Per the March 19, 2018 Emergency Reserve Policy, all surpluses will be deposited into the General Fund Emergency Reserve until it reaches 25% of operating expenditures. Any remaining surplus is to be transferred into the Civic Center Fund.

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General
Fund
Emergency
Reserve Total
FY 20/21 FY 20/21 FY 20/21
Revenues $ 84.20 $ 0.06 $ 84.26
Expenditures $ 67.26 $ - $ 67.26
Over/(Under) Expenditures $ 16.94 $ 0.06 $ 17.00
Other Financing Sources (Uses) $ (3.92) $ - $ (3.92)
Net Change in Fund Balance $ 13.02 $ 0.06 $ 13.08
Surplus $ 13.02 $ 0.06 $ 13.08
Transfer surplus to Emergency Reserve Fund* $ (0.39) $ (0.39) Transfer surplus to Civic Center Fund* $ (12.24) $ (12.24) *Note - Per the March 19, 2018 Emergency Reserve Policy, all surpluses will be deposited into the General Fund Emergency Reserve until it reaches 25% of operating expenditures. Any remaining surplus is to be transferred into the Civic Center Fund.

The General Fund revenues came in over expenditures by $16.9 million. The Expenditures category included capital projects which totaled $1.6 million. The category Other Financing Sources and Uses of $3.9 million includes transfers out for debt payments of $2.4 million (Convention Center $1.1 million, Animal Control $0.6 million, 2015 COP $0.6 million and VPFA 2014 Refunding COP $0.1 million) and subsidies for Enterprise Funds operations of $1.9 million (Animal Control $0.9 million, Convention Center $0.7 million, and Baseball $0.3 million).

Once you take Revenues minus Expenditures less Other Financing Uses, the General Fund had a change in fund balance/surplus of $12.6 million. Of the surplus, $0.4 million was transferred to the Emergency Reserve Fund and $12.2 million was transferred to the Civic Center Reserve Fund as per the current Council Policy on surpluses.

The current General Fund emergency reserves replenishment policy states that any revenues in excess of actual expenditures would continue to be deposited in the emergency reserve to maintain the reserve at 25% of operating expenditures and then all remaining surplus is to be deposited into the Civic Center Reserve Fund.

This is the eighth consecutive year that the General Fund has ended the year with a surplus. However, history has shown that the balance between revenues and expenditures in the General Fund can be volatile from year to year. The City must continue to monitor increasing operating costs (i.e. rising pension costs, health, technology), the economy for a possible downturn (recession) due to the ending of COVID-19 stimulus packages and rising inflation, and continue to seek new opportunities to increase tax base revenues to maintain fiscal sustainability.

The General Fund’s fund balance (including the emergency reserve) is $53.1 million at fiscal year-end. It is important to remember that fund balance is not cash. Fund balance is the amount left after liabilities are subtracted from assets. A positive fund balance means that there are more assets than liabilities; a negative fund balance means just the opposite. The General Fund’s fund balance is split into the following categories (2020-21 ACFR pg 82):

Ø Nonspendable Fund Balance - $3.5 million for items such prepaids, deposits, supplies, long term receivables and advances to other funds.

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Ø Restricted Fund Balance - There are currently no restricted fund balances.

Ø Committed Fund Balance - $16.6 million for Council authorized encumbrances (contracts awarded that are not paid out) and specific purposes such as the Emergency Reserve (currently at $16.4 million, 25% of the General Fund’s operating costs).

Ø Assigned Fund Balance - $27.6 million for advances to custodial funds, capital projects that have been budgeted but not started, CalPERS unfunded liability payment for FY 2021-22 and the Successor Agency Note.

Ø Unassigned Fund Balance - $5.4 million is primarily used for three reasons:

1. Grants - To temporarily advance one time expenditures which are awaiting grant funds. The City receives many grants, and typically, funds that have grants will need a cash advance due to the timing of the grant reimbursements and the crossing of fiscal years. Grant advances are typically paid back within 1-2 years.

2. Impact Fees - To advance money in order to keep moving forward on large projects. When advances happen, the amount of the advance is transferred out of unassigned fund balance to assigned fund balance. When the advances are paid back to the general fund those amounts are transferred back to the unassigned fund balance. If the money is not available to advance from the unassigned funds then the money would need to come from the committed funds that have been set aside for emergency reserves or capital projects. This is not ideal because this could postpone projects or cause there to not be enough in reserves for when it is needed. Advances for capital projects are typically paid back over larger periods of time (5-10 years). For example, the fire impact fees assisted with the construction of stations 55 and received an advance that was recently paid back. Also, the police impact fees are projected to need an advance of $1.5 million to make the VECC debt payments for the life of the debt which will be fully paid off in 2029.

3. Prior Year Adjustments - The City financial statements are a summary of the year and are comprised of many numbers, categories, funds, objects and task numbers. As staff continues to audit numbers and compare to prior years, accounting errors are found and need to be adjusted. For example, expenditures for FY 2020-21 may have been coded to FY 2021-22 and are found when reviewing FY 2021-22. In addition, the Financials include receivables that may be written off due to bad debt or fees waived once they have complied with City regulations. If the Unassigned Fund Balance category did not exist, these adjustments would need to come from the committed funds that have been set aside for emergency reserves or capital projects.

4. However, these funds may be considered a part of the Emergency Reserves and at the end of the fiscal year, at Council’s discretion, can be added to the Emergency Reserves or any other designation. Staff does not recommend depleting this category because, in the end, using committed funds that have been set aside for emergency reserves or capital projects is not ideal for advancing for grant reimbursements, capital projects, and prior year adjustments. This would cause the Emergency Reserves or any other fund to increase and decrease as accounting adjustments are made and money is borrowed leaving uncertainty in the amount available at any given time.

Emergency Reserves for FY 2020-21 meets the policy level of 25% or $16.4 million as shown in Table 4 - General Fund Emergency Reserves. A General Fund surplus transfer of $0.4 million and interest earnings of $65K increased the Emergency Reserves to $16.4 million (25% of operating expenditures).

Table 4 - General Fund Emergency Reserves
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Other Governmental Funds
· The Measure N (FY 2020-21 ACFR: page 30 & 34) fund is used to account for the half-cent sales tax override approved by the citizens of Visalia in November 2016 which funds increased City essential services such as Police, Fire, Streets and Parks. Measure N saw an overall increase in revenues of $2.6 million. The increase includes sales tax of $3.0 million offset by a decrease in investment related activity of $0.5 million due to the annual adjustment for fair market value allocation and investment gain or loss. The Measure N Fund’s fund balance increased $6.4 million to $29.7 million as a result of revenues exceeding expenditures for the year. Measure N Fund’s fund balance increased $6.4 million from $23.3 to $29.7 million as a result of revenues exceeding expenditures for the year. · The Housing & Community Grants (FY 2020-21 ACFR: page 30 & 34) This fund accounts for the Community Development Block Grants (CDBG), Home Investment Partnership Program (HOME) and Neighborhood Stabilization Program (NSP) Grant funds. Also included are the Substandard Housing and Vehicle Abatement funds. The fund’s assets include $12.7 million in notes and loans receivable. The notes and loans receivable are for housing assistance through the various grant programs as well as past rental rehabilitation loans. Expenditures exceeded revenues by $0.1 million for the year. The net change in fund balance increased $1.0 million from last fiscal year to $15.3 million. · The Housing Successor (FY 2020-21 ACFR: page 31 & 35) was part of the former Redevelopment Agency. The principal assets of the housing successor are notes from past loans from the City to receiving parties for affordable housing projects. The majority of these notes will be forgiven if the receiving party maintains the projects built with those monies at affordable levels for 45 years for single family units and 55 years for multi-family units. Revenues of $0.5 million included residual payments and regular scheduled note payments. This money is used for programs as intended or used for future programs or projects.

The Housing Successor will receive two types of limited payments in the future. One of the payments will be for a loan given from the Low/Mod funds to Redevelopment from past State take-aways of $1.2 million to be paid back based on availability of residual receipts. There were $320K in residual receipts for FY City of Visalia Page 7 of 11 Printed on 1/14/2022
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to be paid back based on availability of residual receipts. There were $320K in residual receipts for FY 20/21. The other limited revenue source will be 20% of any loan repayments the City receives for past advances made to the former Redevelopment Agency by the General Fund until those advances are paid off. Otherwise, the Housing Successor has no significant ongoing revenues. · The American Rescue Plan fund (FY 2020-21 ACFR: page 31 & 35) is used to account for the American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines. In June of 2021 this fund received $14.7 million in grant funding and earned $3K in interest. · All Other Governmental Funds (FY 2020-21 ACFR: page 31 & 35), (referred to as Non-Major Funds, such as Special Revenue Funds and Capital Project Funds) are not presented separately in the Basic Financial Statements but are individually presented in the Supplemental Information Section. Combined they received $46.4 million in revenue and have a combined Fund Balance at year-end of $125.4 million.

The larger funds in this category include Special Service Districts at $10.8 million, Measure T Fire at $5.9 million, Measure R local at $5.5 million, Highway Users at $8.1 million, Government Facilities Impact Fee at $7.0 million, Transportation $15.5 million and Civic Center Fund at $32.7 million. These are restricted funds that will be used for future capital projects.

Business Type Funds
Enterprise Funds are used to report the same functions presented as business-type activities in the governmentwide financial statements. The City uses enterprise funds to account for the Water Reclamation Facility, Storm Sewer Maintenance, Solid Waste, Transit, which are considered to be Major Funds of the City and Convention Center, Airport, Building Safety, Animal Control and Baseball which are considered to be Non-Major Funds of the City.

Enterprise funds also recognize the net pension liability as required by GASB 68. As a result, annual adjustments are required to adjust to the net pension liability being reported by CalPers for our employee retirement plans.

Changes in the net pension liability occur as a result of annual actuarial valuations performed by CalPers on our plans, investment earnings for the year, and changes to pension formula assumptions made by CalPers. These annual GASB 68 adjustments to the net pension liability affect the Salaries, Wages and Employee Benefits line item reported under Operating Expenses (pages 42 and 43). Below is a brief summary of changes for each Enterprise Fund's revenues and expenditures. These summaries are comparing each Fund to last fiscal year. · Water Reclamation Facility (FY 2020-21 ACFR: page 40 & 42) Operating revenues increased $0.3 million due to a combination of increases in industrial fees of $0.4 million, front footage fees of $0.2 million, user charges of $0.3 million, treatment connection fees of $0.2 million and septage receiving fees of $0.1 million. These increases were offset by decreases in commercial fees of $0.1 million and residential fees of $0.9 million which are mainly due to a change in utility bill due dates for all accounts to the 30th of the month which took place in FY19/20.

Operating expenses increased by $0.7 million mainly due to increases in utilities of $0.1 million, chemical expenses of $0.2 million, capital related activity of $1.1 million. These increases were offset by decreases in maintenance and operating costs of in equipment supply and maintenance repair of $0.4 million, instrumentrepair/replacement of $0.1 million, allocated expenses and services provided of $0.1 million and salaries and benefits of $0.2 million due to vacancies
· Storm Sewer Maintenance (FY 2020-21 ACFR: page 40 & 42) Operating revenues had a slight increase of $39K.

Operating expenses increased by $0.6 million due to increases in salaries and benefits of $47K due to City of Visalia Page 8 of 11 Printed on 1/14/2022
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wage and benefit increases, deprecation of $61K and capital related activity of $0.5 million. · Solid Waste (FY 2020-21 ACFR: page 40 & 42) Operating revenues increased $1.2 million mainly due to increases in single family fee revenue of $0.3 million, multifamily fee revenue of $0.1 million, commercial recycling fee revenue of $0.1 million and commercial fee revenue of $0.8 million. These increases were offset by a decrease in CNG fuel rebates of $0.2 million due to the timing of receiving the fuel rebate.

Operating expenses increased by $0.8 million mainly due to an increase in salaries and benefits of $0.1 million due to wage and benefit increases and capital related activity of $1.2 million. These increases were offset by decreases in maintenance and operations costs for allocated expenses and services provided of $0.4 million
· Transit (FY 2020-21 ACFR: page 41 & 43) Operating revenues decreased $2.2 million from last year.

Charges for services decreased $1.5 million as ridership fees were suspended due to the COVID-19 pandemic resulting in decreases in Sequoia shuttle ticket sales of $0.6 million, farebox sales of $0.3 million, ticket sales of $0.5 million and CNG sales of $0.3 million due to a timing issue of federal reimbursements. Operating grant revenue decreased $0.8 million due to a decrease in the current years operating expenses. The decreases were offset by an increase in carbon credits of $0.2 million.

Operating expenses decreased by $0.4 million mainly due to a decrease in maintenance and operations for allocated expenses and services provided of $0.3 million, contract bus services including cancellation of Sequoia shuttle bus service of $0.3 million, depreciation of $0.3 million and salaries and benefits $47K due to vacancies. These decreases were offset by an increase in capital related activity of $0.5 million. · Convention Center(FY 2020-21 ACFR: page 40 & 42) Operating revenues decreased by $1.4 million and operating expenses decreased by $1.9 million mainly as a result of the facility shutdown due to the COVID -19 pandemic. These decreases were in salaries and benefits and operations. The state guidelines allowed for reopening of the Convention Center June 15, 2021. · Airport (FY 2020-21 ACFR: page 40 & 42) Operating revenues increased by $0.2 million mainly due to increases in fuel sales of $111K, fuel flowage fees of $12K, FOB revenues of $24K, and hanger rentals of $36K. These increases were offset by decreases for “into plane” fuel sales of $34K and terminal rent of $8K.

Operating expenses decreased by $0.1 million mainly due to decreases in allocated expenses and services provided of $0.1 million and a decrease in salaries and benefits of $23K due to vacancies. · Building Safety (FY 2020-21 ACFR: page 41 & 43) Operating revenues increased by $0.4 million mainly due to an increase in single family dwellings permits compared to prior years activity.

Operating expenses decreased by $0.1 million due to a decrease of salaries and benefits of $0.1 million due to vacancies and decreases in credit card usage fees of $25K and allocated expenses and services provided of $70K. These decreases are offset by an increase in capital related activity of $0.1 million. · Animal Control (FY 2020-21 ACFR: page 41 & 43) Operating revenues increased by $0.1 million as a result of increased activity in services for Dinuba of $55K due to the timing of the revenue collected in the prior year, adding new services for Tulare of $29K, and administration and other fines of $47K. These increases were offset by lower kennel fees of $15K, facility shelter fees of $22K, and license fees of $10K.

Operating expenses decreased by $46K due to a decrease in salaries and benefits of $26K due to vacancies and a decrease in allocated expenses and services provided of $49K. These decreases were City of Visalia Page 9 of 11 Printed on 1/14/2022
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offset by an increase in bad debt expense of $21K and capital related activity of $10K. · Baseball Fund (FY 2020-21 ACFR: page 41 & 43) There are no operating revenues for the Baseball fund due to the current contract with Fast Pitch Entertainment, LLC, the organization that runs the Rawhide Baseball team. Operating expenses had an increase of $0.1 million mainly due to the 1st year of the depreciation for the video scoreboard.
· Internal Service Funds (FY 2020-21 ACFR: pages 142-145) There are several funds designed to set aside resources to pay for replacement of vehicles and computers as well as insurance costs. Fiscal Year 2020-21 revenues exceeded expenditures by $1.5 million which leaves fund balances of $35.1 million. A majority of the change in net position was due to the Information Technology (IT) Fund and Vehicle Replacement Fund receiving assets from other funds to be replaced in future years. The IT Fund holds assets for the General Fund and charges depreciation to the General Fund divisions for the assets being used forfuture replacement.Asset contributions totaled $0.3 million for FiscalYear 2020-21 which included vehicle replacements, computer replacements, equipment, and software.

There are three business funds that have Council authorized subsidies, the Convention Center ($0.7 million operations + $0.2 million capital set-aside + $1.1 million debt), Animal Control ($0.9 million operations + $0.6 million debt), and Baseball ($0.3 million) which are shown on the financial statements and notes as transfers.

Subsidies are not paid back. All other funds receive an advance when revenues don’t cover operations.

Advances are made from the General Fund which requires reimbursement and charges the investment rate plus 1%. All advances are shown in the ACFR on page 82.

Summary
The City’s finances continue to grow even with the continuing COVID-19 pandemic. Governmental Funds had a change in fund balance of $42.5 million, Emergency Reserves continue to be at the policy level of 25% of operating expenditures with a balance of $16.4 million, and the Business Type Funds (excluding the Internal Service Funds) had an overall change in net position of $20.8 million. In addition, fiscal year 2020/21 met the City Council budget goals of gradually rebuilding the organization by restoring resources, increasing funding levels for Capital Improvement Projects, increasing resources directed at maintaining City facilities, maintaining Emergency Reserves, and handling increasing pension costs.

Overall, the City is in a good financial condition that will help us withstand a future recession.

Fiscal Impact:

N/A
Prior Council Action: N/A
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):

I move to accept the Fiscal Year 2020-21 Annual Comprehensive Financial Report (ACFR).

Environmental Assessment Status: N/A
CEQA Review: N/A
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Attachments: Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2021.

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State of California
City of Visalia

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
41 42

CITY OF VISALIA

STATE OF CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Year Ended June 30, 2021
Prepared by the Finance Department
707 W. Acequia Ave.

Visalia, California 93291
(559) 713-4298

VISALIA
43 44
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 Table of Contents

TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:

Letter of Transmittal.......................................................................................................................................... i Organizational Chart.......................................................................................................................................... xii GFOA Certificate of Achievement...................................................................................................................... xiii FINANCIAL SECTION:

Independent Auditor’s Report........................................................................................................................... 1 Management’s Discussion and Analysis............................................................................................................ 3 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position........................................................................................................................ 26 Statement of Activities............................................................................................................................. 27 Fund Financial Statements:

Governmental Funds:

Balance Sheet...................................................................................................................................... 30 Reconciliation of Governmental Funds - Fund Balance with Governmental Net Position................. 33 Statement of Revenues, Expenditures, and Changes in Fund Balances.............................................. 34 Reconciliation of the Net Changes in Fund Balances – Governmental Funds with the Change in Net Position of Governmental Activities ......................................................................... 37 Proprietary Funds:

Statement of Net Position........................................................................................................................ 40 Statement of Revenues, Expenses, and Changes in Fund Net Position ................................................... 42 Statement of Cash Flows.......................................................................................................................... 44 Fiduciary Funds:

Statement of Fiduciary Net Position ........................................................................................................ 49 Statement of Changes in Fiduciary Net Position – Fiduciary Funds......................................................... 50 Notes to Basic Financial Statements................................................................................................................ 51 Required Supplementary Information:

Budgetary Comparison Schedule -
General Fund............................................................................................................................................ 98 Measure N................................................................................................................................................ 100 Housing & Community Grants ................................................................................................................. 101 Housing Successor Agency Fund .............................................................................................................. 102 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan .............................. 103 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan ........................................... 104 Schedule of Contributions ............................................................................................................................ 105 Supplementary Information:

Non-major Governmental Funds:

Combining Balance Sheets....................................................................................................................... 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances................................ 118 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual .................................................................................................................................. 122 45 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 Table of Contents
FINANCIAL SECTION: (Continued) .................................................................................................................... Page Internal Service Funds:

Combining Statement of Net Position ..................................................................................................... 142 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position................................. 144 Combining Statement of Cash Flows ....................................................................................................... 146 Custodial Funds:

Combining Statements of Fiduciary Net Position – Custodial Funds....................................................... 152 Combining Statements of Changes in Fiduciary Net Position – Custodial Funds..................................... 153 STATISTICAL SECTION:

Net Position by Component – Last Ten Fiscal Years ..................................................................................... 158 Changes in Net Position – Last Ten Fiscal Years............................................................................................ 160 Fund Balances of Governmental Funds – Last Ten Fiscal Years.................................................................... 164 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................. 166 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................. 168 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years............................ 170 Principal Property Tax Payers – Current Year and Nine Years Ago............................................................... 171 Property Tax Levies and Collections – Last Ten Fiscal Years......................................................................... 172 Historical Sales and Use Tax Rates................................................................................................................ 173 Taxable Sales Transactions By Type – Last Five Calendar Years ................................................................... 174 Top 25 Sales Tax Contributors – 2019 Calendar Year................................................................................... 175 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years......................................................................... 176 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years............................................................. 178 Direct and Overlapping Debt ........................................................................................................................ 179 Legal Debt Margin Information – Last Ten Fiscal Years................................................................................ 180 Pledged Revenue Coverage – Last Ten Fiscal Years...................................................................................... 182 Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................................... 183 Principal Employers – Current Year and Two Years Ago............................................................................... 184 Full-Time City Employees by Function – Last Ten Fiscal Years...................................................................... 185 Operating Indicators by Function – Last Ten Fiscal Years............................................................................. 186 Capital Asset Statistics by Function – Last Ten Fiscal Years.......................................................................... 188 Insurance in Force......................................................................................................................................... 190 COMPLIANCE SECTION:

Measure T:

Independent Accountant’s Report:

Report on Applying Agreed-Upon Procedures......................................................................................... 193 Measure N:

Independent Accountant’s Report:

Report on Applying Agreed-Upon Procedures......................................................................................... 197 Bond Disclosure Requirements ........................................................................................................................ 201 46 Introductory
Section
47 48
i

December 29, 2021
To the Honorable Mayor, City Council, and Citizens of the City of Visalia:

We are pleased to submit the City of Visalia’s (the City) Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 2020 through June 30, 2021. The City Charter (Article VI - Section 17) requires that a licensed certified public accountant conduct an annual audit at the end of each fiscal year and issue a complete set of financial statements to be submitted to City Council. The ACFR is also intended to provide relevant financial information to the residents of Visalia, taxpayers, creditors, investors, and other interested parties. Like many financial reports, the ACFR is a “snapshot in time”. It reflects the financial condition of the organization at a specific point in time. The complex financial operations of a city are extremely dynamic and constantly undergoing change. This is not a document requiring decision-making or adjustment, it is a merely a reflection of a financial point in our history that provides an open and transparent review of our operations.

This letter of transmittal provides a non-technical summary of City finances, services, and achievements, and economic prospects. We ask that readers who wish a more detailed discussion of the City's financial results refer to Management's Discussion & Analysis ("MD&A") contained in the Financial Section of the ACFR.

The City Finance Department is responsible for establishing and maintaining internal controls designated to ensure that the assets of the city are protected from loss, theft or misuse, and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. Internal controls are designated to provide reasonable, but not absolute, assurance that these objectives are met.

The concept of reasonable assurance recognizes that: the cost of a control should not exceed the benefits likely to be derived; and the evaluation of costs and benefits requires estimates and judgements by management. All internal control evaluations occur within the stated framework. City management believes the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

The City contracted with The Pun Group, LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit. The auditors expressed an opinion that the City's financial statements for fiscal year 2020-2021 are fairly stated in conformity with generally accepted accounting principles (GAAP). This is the most favorable conclusion and is commonly known as an "unmodified" or "clean" opinion. The independent auditor's report is included in front of the Financial Section of this report.

City of Visalia City Manager’s Office
49 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 ii
Letter of Transmittal
The ACFR is organized into four sections:
• The Introductory Section provides this transmittal letter which includes information about the governmental structure, economic activities of the community, and notable financial activities. • The Financial Section includes the financial statements, notes, and supplemental information. It has management’s discussion and analysis (MD&A) which immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the Basic Financial Statements including notes and the Required Supplementary Information. · The Statistical Section includes tables containing historical financial data, debt statistics, and miscellaneous social and economic data of potential interest to readers of financial documents. The data also includes ten-year revenue and expenditure data. • The Compliance Section which includes the Measure T Agreed Upon Procedures Audit, the Measure N Agreed Upon Procedures Audit, and Bond Disclosure Requirements. The citizens of the City of Visalia, in 2004, passed a sales tax ballot measure for public safety operations and in 2016, passed a sales tax ballot measure for essential City services. An annual compliance audit was required as part of the measures and is included in this document.

CITY PROFILE
Basic Information
Visalia is located in the central San Joaquin Valley in California, approximately 185 miles north of Los Angeles and 220 miles south of San Francisco. Visalia is the county seat and principal trading center for Tulare County, which is currently one of the most productive agricultural counties in the United States.

Currently, the City has a land area of approximately 38 square miles with an estimated population of 139,254 as of May 2021, making it the 43rd largest city in California (Department of Finance, State of California).

The City was founded in 1852, incorporated in 1874, and became a charter city in 1923. The charter was amended in 1974 and the City operates under a Council-Manager form of government. The City Council is comprised of five members who are elected to alternating four-year terms staggered every two years.

Beginning in November 2016, the Council elections moved from at-large elections to district-based elections. The Council selects two of its members to serve as Mayor and Vice Mayor for a two-year term.

City Council is responsible for making policy, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and the City Attorney. The City Manager is responsible for carrying out the ordinances and polices of the City Council, overseeing operations, and appointing, with Council approval, the City’s department heads.

Types of Services
The City provides a full range of municipal services including those required by statute or charter. These services include Police, Fire, Planning, Building Safety, Successor Agencies to Redevelopment, Housing and 50 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 iii
Letter of Transmittal
Economic Development, Wastewater Treatment and Collection, Storm Water Collection, Ground Water Recharge, Solid Waste, Streets, Parks, Traffic Safety, Transit, Airport, Recreation, Convention Center, Senior Center, Baseball Park, and General Administrative Services.

BUDGET
The City Council is required to adopt a budget by no later than the close of the prior fiscal year. This budget is prepared on a two-year basis and serves as the foundation for the City’s fiscal planning and financial control. The budget is organized by departments (e.g., Community Development), by funds (e.g., Transportation), and by divisions (e.g., Planning). The City Manager may transfer appropriations within a fund, provided that the total appropriation is not increased.

The City's Capital Budget is considered as part of the City's Five-Year Capital Improvement Plan. The capital expenditures approved are the two years adopted in the budget.

ECONOMIC CONDITION
Surprisingly, fiscal year 2020-21 saw significant growth in all revenue categories for Visalia despite the restrictions and impact on the economy from the continuation of the COVID-19 pandemic. We can only surmise that the record breaking stimulus packages issued by the Federal and State government combined with the gradual reopening in the early part of 2021 from the historic lockdowns, contributed to this growth. Nationally, for June 2021, Gross Domestic Product (GDP) came in at 6.7% reflecting the continued economic recovery, reopening of establishments, and continued government stimulus support. GDP refers to a country’s economic growth rate. A 2-3% GDP is generally considered a healthy GDP. The national unemployment rate as of June 2021 was at 5.9%, a very good improvement compared to the

14.7% we saw in April 2020. The Federal Reserve likes to see a natural unemployment rate of 4%.

Fiscal year 2020-21 ended the year with an overall increase of $7.6 million in the total economic-sensitive revenue category for the General Fund as shown in Table 1 – Economic Sensitive Revenues.

Table 1 - Economic Sensitive Revenues
(as shown in the Financial Statements)
Description FY 19/20 FY 20/21
Increase Over
Prior Year % Increase
Sales Tax $ 34,213,847 $ 38,986,517 $ 4,772,670 14%
Property Tax 26,281,706 27,884,766 1,603,060 6%
Transient Occupancy Tax 2,727,385 3,323,538 596,153 22% Franchise Fees 2,669,467 2,795,357 125,890 5%
Business License 2,538,135 3,088,633 550,498 22%
Total $ 68,430,540 $ 76,078,811 $ 7,648,271 11%
51 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 iv
Letter of Transmittal
Sales Tax grew at 14% for fiscal year 2020-21, partially due to the Federal stimulus money issued which allowed consumers to continue to spend as well as the reopening of establishments. The main areas of the growth in Sales Tax for Visalia were in General Retail (department stores, apparel stores) which grew $1.5 million; Business to Business (office equipment, industry) which grew $1.4 million; and Transportation (auto sales, service stations) which grew $.8 million. Property Tax maintained its growth trend increasing 6% as existing houses sales, new development, and property values increased in Visalia.

The ending of the shelter in place and reopening of things in California really was evident in Transient Occupancy Tax (TOT) revenue as fiscal year 2020-21 had an increase of 22% as compared to last year.

Fiscal year 2019-20 had a large decrease in revenue due to the COVID-19 travel restrictions and historic shutdowns imposed by the State of California. If fiscal year 2019-20 would have had normal growth levels, this year’s growth in TOT would be an estimated 5%. Franchise Fee revenue had an increase of 5% in fiscal year 2020-21 mainly due to increases in gas and electric revenue. Business License revenue increased 22% as compared to last fiscal year as several businesses remitted current and prior year delinquencies in order to bring their accounts current in fiscal year 2020-21. Businesses had to have a current business license which meant delinquencies had to be paid in order to qualify for various COVID-19 relief programs.

Visalia has 12,505 licensed businesses operating in the City, an increase of 190 as compared to last year.

These businesses include private manufacturing, technology research, retail and service businesses, educational services, healthcare and social assistance, consulting, arts and entertainment, hospitality services, along with non-profit institutions.

Construction activity in the City increased 13% (based on number of all permits issued) in fiscal year 2020-

21. The total valuation for all permits issued was $473 million, a 39% increase from the prior year as the City added 1.9 million square feet of new commercial property and 3.6 million square feet of space overall.

In terms of single-family dwelling permits, fiscal year 2020-21 had an increase in construction activity compared to the prior year as can be seen in Table 2 – New Single-Family Dwelling Permits Comparison.

The new single-family dwelling permits issued were up from the prior year by 36%. The construction value for 749 new single-family dwelling permits came in at $197 million, which was up 40% from the prior year valuation level.
52 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 v
Letter of Transmittal
Table 2 – New Single-Family Dwelling Permits Comparison Overall, this construction activity drives the revenue collection in several categories and is an indicator of future activity for several other categories, such as property taxes, impact fees, and storm and sanitary sewer system fees.

DEVELOPMENT
The City of Visalia continued to see steady growth industrially, commercially, and in other developments throughout the community in fiscal year 2020-21.

Industrial Park Highlights
Caprock Partners has completed a 1.3 million square foot building at Plaza Drive and Riggin Avenue adjacent to the UPS building. The facility is the largest in the Industrial Park and now houses an Amazon Warehouse Distribution Center.

Caprock Partners will soon be constructing its second Visalia facility. The 1.1 million square foot building will be located just north of the newly constructed Amazon building near Plaza Drive and Riggin Avenue.

Seefried Industrial Properties will be constructing a facility that will house an Ace Hardware Distribution Center. The facility will be over 1 million square feet and be located at the southwest corner of Plaza Drive and Ferguson Avenue.

YS Holdings Inc. LLC will be constructing a 300,000 square foot building along Riggin Avenue and the future Clancy Street east of their two other existing facilities. 0 150
300
450
600
750
900
1050
1200
1350
1500
1650
04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Fiscal Year
Single-Family Dwelling Permits
53 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 vi
Letter of Transmittal
A new master planned site is being proposed just east of the Amazon facility north of Riggin Avenue. The 280 acre site will feature a mix of different sized buildings, both industrial and light industrial zoned, along with several potential fast food options and a gas station.

Other projects in the Industrial Park include:
o Sorma USA has purchased the former Josten’s building. o MWI is expanding in their existing building now that co-tenant Mor Furniture has relocated. o Refrigeration Supplies Distributor is currently constructing a 56,000 square foot expansion to their current facility.

Business Research Park
The Business Research Park is in northwest Visalia adjacent to the Industrial Park and continues to add amenities.

Kaweah Delta Healthcare will be constructing a new health clinic just south of Goshen Avenue along Plaza Drive.

Mooney Boulevard
A new retailer will be coming to Visalia. US Foods Chef Store will be moving into the former Best Buy building east of Mooney Boulevard. Chef Store serves both professional chefs and home chefs alike offering great food at wholesale prices as well as equipment and supplies.

Raising Cane’s is now open at the corner of Caldwell Avenue and Mooney Boulevard near the Sequoia Mall.

LL Flooring Lumber Liquidators is moving into the former DSW space at Caldwell Avenue and Mooney Boulevard next to Staples. Lumber Liquidators offers a variety of flooring options including hardwood flooring, laminate flooring, vinyl plank flooring, and tile flooring.

Permits for a new Texas Roadhouse are currently pending. Texas Roadhouse is an American steakhouse that specializes in steaks in a Texan and Southwestern cuisine style. Texas Roadhouse plans to occupy a space in the new proposed shopping center located south of Visalia Parkway and west of Mooney Boulevard.

A United Health Center site is looking to locate in the former Cost Plus Market space located east of Mooney Boulevard near Outback Steakhouse. United Health Center facilities strive to improve the health and quality of life for the communities that they serve.

An established retail developer has recently acquired the former Cask-N-Cleaver restaurant site and plans to redevelop the site for a new restaurant user. This building is at the corner of Caldwell Avenue and Mooney Boulevard near Dicks Sporting Goods.
54 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 vii
Letter of Transmittal
Downtown Developments
Historic Downtown:

Family Healthcare Network is constructing a new two-story, 23,500 square foot facility at the corner of Bridge Street and School Avenue. Family Healthcare Network provides high quality health care to all with dignity and respect regardless of a persons ability to pay.

Soccer City will soon be starting construction at the former Johnson Pipe Supply building located at Goshen Avenue and Johnson Street. The indoor soccer facility will also feature a new Visalia Microbrewery and will be a welcome new entertainment venue for downtown Visalia.

Lake Bottom Brewery and Distillery is now open at 105 East Main Street. The restaurant offers local made craft beer, cocktails, and fine food.

North Visalia
Phase 1 of the Orchard Walk West located at North Dinuba Boulevard and Riggin Avenue has partially been completed with the opening of Visalia’s second In-N-Out Burger location. Phase 2 of the project has been submitted and looks to have 34,000 square feet of new retail space, a gas station and convenience store, and an additional drive thru restaurant.

Plans have been submitted for the remainder of the Country Club Shopping Center located at Demaree Street and Goshen Avenue next to the Walmart Neighborhood Market. The new center will feature eight new retail pads including a new anchor space.

ONGOING CAPITAL PROJECTS
The City’s Capital Improvement Program has a number of significant projects currently underway that will continue into fiscal year 2022 and beyond.

Caldwell Improvements - Akers to Shady Street
• The $9 million project will widen Caldwell Avenue between Akers Street and Shady Street creating new transit pullouts and enhancing traffic flow.

Downtown Street Light Project
• The $6.8 million project will replace the downtown street light system to meet current standards as the existing street light system was installed in the 1930’s.

Fire Station 56 Relocation
• This project will construct a new Fire Station 56 north of the current temporary station located at Lovers Lane and Walnut Avenue. Current station is leased from CAL FIRE through an agreement that will expire December 2023 and will not renewed by CAL FIRE. 55 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 viii
Letter of Transmittal
Santa Fe/Tulare Avenue Roundabout
• The $4.2 million project to construct a new roundabout at the intersection of Santa Fe Street and Tulare Avenue was recently completed in fiscal year 2022. This project enhances the traffic flow and corrects the geometric offset of 35’ that existed at the intersection.

Aircraft Hangars Project
• The $4.5 million project to construct new aircraft hangars and T-hangars was recently completed in fiscal year 2022. This project meets the airports growing demands and will increase revenues in hangar leases

FINANCIAL CONDITION
Fiscal year 2020-21 ended with strong growth in the main General Fund revenue categories of Sales Tax, Property Tax, and Other Taxes, which consists of Transient Occupancy Tax and Franchise Fee revenue.

The COVID-19 pandemic continued to affect the economy across the state and nation for most of the fiscal year, however, with continued stimulus support from the Federal and State government and the gradual reopening from the historic lockdowns, consumers continued to spend the extra funds available to them and returned to a fraction of their normal life with travel, retail, and restaurant patronage. For most of the fiscal year, staffing levels were reduced where needed and staff continued to monitor expenses. With careful management, the City was able to continue to provide limited service enhancements, infrastructure improvements, and increases in employee compensation. As shown in Table 3 – General Fund Statement of Revenues & Expenditures, the General Fund ended the year with a change in fund balance and surplus of $13.02 million. The City received Coronavirus Relief Funds (CARES Act) of $1.7 million which helped offset expenses and contributed to the General Fund surplus. The large surplus is also due to vacancies throughout the City, especially in Public Safety, where a large number of vacancies for fiscal year 2020-21 were actively being recruited for. 56 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 ix
Letter of Transmittal
Table 3 – General Fund Statement of Revenues & Expenditures (in millions)
This is the eighth consecutive year that the General Fund has ended the year with a surplus. However, history has shown that the balance between revenues and expenditures in the General Fund can be volatile from year to year. The City must continue to monitor increasing operating costs (i.e. rising pension costs, health, technology), the economy for a possible downturn (recession) due to the ending of COVID19 stimulus packages and rising inflation, and continue to seek new opportunities to increase tax base revenues to maintain fiscal sustainability.

In June 2020, the City Council adopted a balanced biennial budget for fiscal years 2020-2021 and 2021- 2022. The biennial budget focused on the following goals:
· Maintain quality of life for Citizens;
· Maintain financial stability by continuing to be conservative with revenues and expenditures; · Continue to improve infrastructure and replace capital; · Enhance City services by efficiently adding staff, programs, and technology; and · Facilitate and promote economic development.

Both fiscal years budgets projected a deficit for the General Fund due to the uncertainty of the COVID-19 pandemic. However, any surplus that may occur will be transferred to the Emergency Reserve which will be consistent with the City Council's goal of maintaining the Emergency Reserve balance at 25% of General Fund operating expenditures. Table 4 - General Fund Emergency Reserves shows the usage of the reserves during the great recession and the efforts to replenish and maintain the reserves.

General
Fund
Emergency
Reserve Total
FY 20/21 FY 20/21 FY 20/21
Revenues $ 84.20 $ 0.06 $ 84.26
Expenditures $ 67.26 $ - $ 67.26
Over/(Under) Expenditures $ 16.94 $ 0.06 $ 17.00
Other Financing Sources (Uses) $ (3.92) $ - $ (3.92)
Net Change in Fund Balance $ 13.02 $ 0.06 $ 13.08
Surplus $ 13.02 $ 0.06 $ 13.08
Transfer surplus to Emergency Reserve Fund* $ (0.39) $ (0.39) Transfer surplus to Civic Center Fund* $ (12.24) $ (12.24) *Note - Per the March 19, 2018 Emergency Reserve Policy, all surpluses will be deposited into the General Fund Emergency Reserve until it reaches 25% of operating expenditures. Any remaining surplus is to be transferred into the Civic Center Fund. 57 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 x
Letter of Transmittal
Table 4 – General Fund Emergency Reserves
The City has met City Council’s goal of funding the Emergency Reserves with a balance of 25% of General Fund operating expenditures for fiscal year 2020-21. For this fiscal year, interest earnings of $61,074 plus a transfer from the General Fund’s surplus of $392,894 was needed to continue to meet Council’s 25% Emergency Reserve Policy. This is the fifth year in a row that this policy has been met.

MEASURE N
Fiscal year 2020-21 was the fourth full year of operation of Measure N, the City of Visalia’s half-cent Essential City Services Measure which provides additional funding for public safety, maintenance for streets, parks, trail ways, and City facilities. Sales Tax proceeds received for the year totaled $16.9 million; $5.3 million more than budgeted for the year. As of June 30, 2021, Measure N had enabled the City to fund 23 police officers, 2 community service officers, 2 police technicians, 1 police records specialist, 1 information technology analyst, 1 urban forest employee, 2 park maintenance employees, 1 recreation coordinator, 1 Battalion Chief, 1 Fire Captain, 1 EMS coordinator, and 3 paramedics. Major purchases in this fiscal year include roof replacements at the Airport, Anthony Center, and Fairview Center; the purchase of land for Fire Station 56; and 1 EMS vehicle. In addition, the City was also able to complete $2.4 million in road rehabilitation due to Measure N funding.

13.6 13.1

11.1 5.1

1.4 1.3

5.7 9.1

11.7 14.4

14.7 15.2

16.0 16.4 16.4
-

2.0 4.0

6.0 8.0

10.0 12.0

14.0 16.0

18.0 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Policy Level
(25%)
Emergency Reserves
(In Millions)
58 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 xi
Letter of Transmittal

BOND RATING
The City’s current general obligation credit ratings are A+ from Standard & Poor's (“S&P”). The ratings continue to reflect the diversity of the local economy anchored by a strong business presence, sound financial management and prudent budgetary practices.

AWARDS
The Government Finance Officers Association (“GFOA”) awarded its Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2020. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized ACFR, the contents of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United States of America, as well as all applicable legal requirements.

The Certificate of Achievement is valid for only one year. The City believes this ACFR continues to conform to the Certificate of Achievement Program requirements and will be submitting it to GFOA for consideration of the annual award.

ACKNOWLEDGMENTS
The preparation of this ACFR represents a team effort by the entire staff of the Finance Department.

Sincere appreciation goes to Finance Manager Jason Montgomery and Financial Analyst Kari Williams.

They demonstrated personal determination and dedicated many long days of focused attention to produce this document. The City also recognizes the contributions and positive working relationship with The Pun Group, LLP.

Finally, we wish to express our sincere appreciation to the Mayor and City Council for providing policy direction and a firm foundation of support for the pursuit of excellence in all realms of professional endeavors, especially their role in guiding the City to a secure financial condition that assures resources are available to provide core services to the community.

Respectfully submitted,

Leslie B. Caviglia Renee Nagel
City Manager Finance Director
59 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 xii
Organizational Chart
As of June 30, 2021
60 City of Visalia – Comprehensive Annual Financial Report For Year Ended June 30, 2021 xiii
Certificate of Achievement
61 xiv
62 Financial
Section
63 64
1 65
2 66
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 3 Management Discussion and Analysis

CITY OF VISALIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
FISCAL YEAR ENDING JUNE 30, 2021
The Governmental Accounting Standards Board (GASB) Statement No. 34 Government-wide statements present a combined picture of the City of Visalia (the City) on a full accrual basis of accounting, where all debt and assets are included in the presentation. Conversely, the Fund level statements present a picture that is based on a modified accrual basis of accounting, where long-term assets and debt are excluded. Thus, Government-wide and Fund level presentations produce different results based on the type of accounting basis used. Please read this document in conjunction with the accompanying Transmittal Letter and the Basic Financial Statements.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements which have three components:

1. Government–wide financial statements

2. Fund financial statements

3. Notes to the financial statements
This Annual Comprehensive Financial Report also contains Supplemental Information which includes combining statements for Non-major Governmental, Internal Service and Fiduciary Funds, Measure T Agreed Upon Procedures Audit, Measure N Agreed Upon Procedures Audit, Bond Disclosure Requirements, as well as a Statistical Section.

Government-wide Financial Statements
The Government-wide Financial Statements are designed to provide a broad overview of all of the City’s finances taken as a whole, using a long-term view, in a manner similar to private-sector businesses.

The Statement of Net Position presents financial information on all the City’s assets, including capital assets and liabilities, and long-term debt, with the difference between the two reported as net position. The full accrual basis of accounting is used, thus the flow of all economic resources are measured.

The Statement of Activities presents financial information reporting how the City’s net position changed during the fiscal year by listing the revenues and expenses of each of the City’s major activities. The full accrual basis of accounting is also used, thereby all changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period.

All of the City’s activities are grouped into either Governmental Activities (those functions that are principally supported by taxes or by specific governmental program revenues such as developer fees) or into Business-type Activities (whose services are supported by charges paid by direct users of the service such as Solid Waste collection). All of the amounts in both of the Statement of Net Position and the Statement of Activities are segregated into Governmental Activities and Business-type Activities to provide a summary of these City activities.

The City’s Governmental Activities include general government, community development, police, fire, public works, housing & community grants and community services. The City’s Business-type Activities include the convention center, airport, water reclamation facility, storm sewer maintenance, solid waste, transit, building safety, animal control, and baseball.
67 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 4 Management Discussion and Analysis
The City’s Government-wide Financial Statements include not only the City itself (referred to as the primary government) but also the Visalia Public Finance Authority, which is financially accountable to the City and is blended into these financial statements.

Fund Financial Statements
The fund financial statements are designed to report information about related accounts that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the City’s funds are divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.

The Fund Financial Statements provide detailed information about each of the City’s most significant funds called Major Funds which include the General Fund, Measure N Fund, Housing & Community Grants Fund, Housing Successor Agency Fund and the American Rescue Plan Fund (detail on page 27). Major funds account for the major financial activities of the City and are presented individually, while the activities of the Non-major funds are presented in summary as Other Governmental Funds. Non-major funds include Special Revenue Funds such as Measure T, Measure R and Transportation Grants; Debt Service Funds such as VPFA 2014 Refunding COP and 2015 COP; and Capital Projects Funds such as Government Facilities Impact Fee, Facility Improvements and the Civic Center Fund (detail on pages 114-137). Subordinate schedules of the Non-major funds present detailed financial information for the City’s smaller funds.

Governmental Funds: Governmental funds are prepared on the modified accrual basis of accounting, which means they measure only current financial resources and uses. This basis focuses on (1) how cash and other financial assets can be readily converted to available resources and (2) the balances left at year-end that are available for spending. Capital assets and other long-lived assets along with long-term liabilities are not presented in the Governmental Fund Financial Statements. Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs.

Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with the similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City follows Governmental Accounting Standards Board (GASB) Statement No. 54. In the Fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned. Each of these components of fund balance is classified based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

1. Nonspendable Fund Balance – amounts that are inherently nonspendable such as long-term receivables.

2. Restricted Fund Balance – amounts that have externally enforceable limitations on use that are either imposed by law or constrained by grantors, contributors, or laws and regulations of other governments.

3. Committed Fund Balance – amounts that can only be used for specific purposes determined by resolution of the City’s highest level of decision-making authority, the City Council. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through a resolution. The resolution must occur prior to the end of the reporting period; however, the amount can be determined subsequently.
68 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 5 Management Discussion and Analysis

4. Assigned Fund Balance - amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The intent can be expressed by the City Council itself or by an official to which the governing body has delegated the authority.

5. Unassigned Fund Balance - the residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. This amount is reported only in the General Fund except in cases of negative fund balance. Negative fund balances in other governmental funds are reported as Unassigned Fund Balance.

The City Council establishes, modifies or rescinds fund balance commitments by passage of an ordinance or resolution. This is done through the adoption of the budget and subsequent budget amendments that occur throughout the year. Assignments may be established and modified by the City Council, City Manager, or Finance Director.

The accounting policies of the City consider restricted fund balance to have been spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

This Fund Balance policy was established by the City Council on June 20, 2011.

Proprietary Funds: Proprietary funds are generally used to account for services for which the City charges customers – either citizens (e.g., Enterprise funds) or departments of the City (e.g., Internal Service funds).

Proprietary funds provide the same type of information as shown in the government-wide financial statements only in more detail. Proprietary funds are prepared on the full accrual basis of accounting and include all of their assets and liabilities, current and long-term.
· Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the Water Reclamation Facility, Storm Sewer Maintenance, Solid Waste, and Transit which are considered to be major funds of the City and Convention Center, Airport, Building Safety, Animal Control, and Baseball which are considered to be non-major Funds of the City. · Internal Service Funds are used to report activities that provide certain supplies and services only to City programs and activities. The internal service funds are combined into a single, aggregated total presented in the Fund Level proprietary fund financial statements. Subordinate Internal Service fund schedules that provide individual fund financial data in the form of combining statements are also contained in this report. Internal service's revenues are eliminated in the City-wide financial statements and any related profits or losses are returned to the activities which created them. Because these services predominantly benefit governmental rather than business-type functions, the residual net position of these funds has been included within governmental activities in the government-wide financial statements. The City uses internal service funds to account for Fleet Services, Vehicle Replacement, Information Services, Risk Management, Health Benefits, Compensated Absences and Building Maintenance.

Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the City.

The City’s fiduciary activities are reported in the Statement of Fiduciary Net Position included in the Basic Financial Statements. For the City of Visalia, seven fiduciary funds are maintained: the Property and Business Improvement District #5 (for Downtown Visalians & Alliance), the Village West Improvement District, the Orchard Walk 69 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 6 Management Discussion and Analysis
Underground Utilities District, the Atwood Assessment District, the Laura Assessment District, Visalia Tourism & Marketing District, and the Visalia Redevelopment Successor Agency.

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

FINANCIAL HIGHLIGHTS
Visalia’s population increased to 139,254 an increase of 0.4% this past fiscal year. The California Consumer Price Index for All Urban Consumers for the same period increased by 1.67%. The major factors driving the City’s financial results this fiscal year are the following:
· Increased Sales Tax Revenues of $10.6 million, up 18% from last year which includes growth in general sales tax of $4.8 (14%) million in the General Fund, an increase of $3.0 (22%) million in Measure N and an increase in Measure T sales tax of $1.5 (21%) million. Measure R sales tax revenues had an increase of $1.3 (25%) million as funding for projects in those funds were received. · Increased property taxes, up 6% from last year.
· Vacancies in the General Fund of $2.3 million as compared to the budget. · Increased in government wide Charges for Services, up 3% from last year with the majority of the increases in impact fee revenue from residential, industrial, and commercial fees.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
(FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE)
Government-wide Statements
Table 1, Government-wide City Totals, summarizes the Government-wide financial activity for this past year.

FY 20-21 FY 19-20
$ %
Assets $ 1,210.1 $ 1,128.6 $ 81.5 7%
Deferred Outflows of Resources 25.3 27.0 (1.7) -6%
Liabilities 297.3 284.1 13.2 5%
Deferred Inflows of Resources 3.5 6.0 (2.5) -42%
Net Position 934.6 865.5 69.1 8%
Revenues 244.3 234.2 10.1 4%
Expenses 173.5 182.8 (9.3) -5%
Table 1
Government-wide City Totals
(in millions)
Increase (Decrease)
70 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 7 Management Discussion and Analysis
· The City’s Total Assets increased by $81.5 million (7%) during the current fiscal year mainly due to increases in cash and investments of $72.0 million, accounts receivable of $3.3 million, and taxes receivable of $3.1 million. Decreases in Total Assets included, notes and loans receivable of $1.2 million, and due from other governmental units of $4.0 million. The increase in capital asset changes of $8.2 million include additions, deletions, and depreciation comprised of increases of $4.9 million in vehicles and equipment, $11.6 million in infrastructure, and $1.0 million in construction in progress as well as decreases of $0.4 million in land, $2.5 million in buildings and $6.4 million in improvements. · The City’s Deferred Outflows of Resources decreased by $1.7 million (6%) due to annual adjustments for GASB 68 recording of deferred pensions.
· The City’s Liabilities increased by $13.2 million (5%) during the current fiscal year. This was mainly due to increases in unearned revenue of $15.4 million of which $14.7 million are American Rescue Plan funds received in FY 20-21, net pension liability of $5.1 million, and self-Insurance claims of $1.6 million in combination with decreases for scheduled debt service payments of $4.3 million, liability for payables of $3.0 million, and advances from Grantors and third parties of $1.3 million. · The City’s Deferred Inflows of Resources decreased by $2.5 million due to annual adjustments by CalPERS for GASB 68 recording of deferred pensions.
· The City’s Total Net Position (assets and deferred outflows of resources exceeding its liabilities and deferred inflows of resources) were $934.6 million as of June 30, 2021. · The City’s Total Revenues, including program and general revenues, were $244.3 million for fiscal year 2020-21, an increase of $10.1 million (4%) from last year, while total City expenses were $173.5 million, a decrease of $9.3 million (5%) from last year. The revenue increase is due to a combination of increases in tax revenue of $13.5 million, grants and contributions of $5.1 million, and charges for services of $0.1 million in combination with decreases for investment earnings of $7.0 million (mainly due to a decrease in the fair market value of the investments held at June 30, 2021), miscellaneous revenue of $1.1 million and transfers of $0.5 million.
· Revenues can be divided between Program Revenues related to work activities and General or Tax Revenues. For fiscal year 2020-21, Program Revenues were $131.4 million (revenues derived from specific activities) and General Revenues (e.g., taxes and investment earnings) were $112.9 million. These same revenues can be classified as either Governmental activity revenues or Business-type activity revenues. For fiscal year 2020-21, Governmental activity revenues and Business-type activity revenues were $150.5 million (61.6%) and $93.8 million (38.4%), respectively. · Expenses for governmental activities and for business-type activities were $100.4 million (a 7.5% decrease from last year) and $73.1 million (a 1.5% decrease from last year), respectively.

Analysis of Governmental Net Position
The City’s governmental assets are shown in Table 2, Governmental Net Position. These assets exceeded its liabilities by $517.5 million. The largest portion of the net position, $360.7 million (69.7%), is Net Investment in Capital Assets (net of debt to acquire those assets). The remaining portions of the City’s net position are: $130.7 million (25.2%) represents resources that are subject to restrictions and the remaining $26.2 million (5.1%) being unrestricted.
71 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 8 Management Discussion and Analysis
· Cash and Investments of $230.9 million increased $58.1 million from last year mainly due to an increase in tax and grant revenues, receipt of American Rescue Plan funds, and revenues exceeding expenses for the year.
· Capital Assets, Net of Accumulated Depreciation totaling $351.2 million are categorized in Table 8, Capital Assets, Net of Accumulated Depreciation.
· Long-Term Obligations totaling $122.6 million is comprised of Net Pension Liability, Certificates of Participation, government loans, and compensated absences. There were $0.9 million in long term debt payments made by the City during the year. Net pension liability adjustments increased by $3.9 million.

See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt and Note 10 – Employee Benefits for further detail.
· Net Position–Net Investment in Capital Assets of $360.6 million represents the City’s capital assets less accumulated depreciation and any debt used to finance its construction or purchase. · Restricted Net Position of $130.7 million is primarily found in Capital Projects funds which have been restricted for related capital projects.
· Unrestricted Net Position of $26.2 million is the remaining part of the assets. Of this amount, $53.1 million is the General Fund’s net position. Of the General Fund’s portion, all but $5.4 million is either nonspendable ($3.5 million), committed ($16.6 million) or assigned as budgeted projects ($27.6 million).

Additional information on the General Fund’s Fund Balance can be found in the Statistical Section (pages 164-165)
FY 20-21 FY 19-20
$ %
Assets
Cash and Investments $ 230.9 $ 172.8 $ 58.1 34%
Current and Other Assets 69.0 65.0 4.0 6%
Adv. To Other Funds & Internal Balances 3.0 2.5 0.5 20% Capital Assets, Net of Accum. Deprec. 351.2 346.2 5.0 1% Total Assets 654.1 586.5 67.6 12%
Deferred Outflows of Resources
Deferred Pensions 20.9 22.3 (1.4) -6%
Total Deferred Outflows of Resources 20.9 22.3 (1.4) -6% Liabilities
Other Liabilities 31.9 15.5 16.4 106%
Long-Term Obligations 122.6 119.2 3.4 3%
Total Liabilities 154.5 134.7 19.8 15%
Deferred Inflows of Resources
Deferred Pensions 3.0 4.9 (1.9) -39%
Total Deferred Inflows of Resources 3.0 4.9 (1.9) -39%
Net Position
Net Investment in Capital Assets 360.6 335.9 24.7 7%
Restricted 130.7 94.9 35.8 38%
Unrestricted 26.2 38.4 (12.2) -32%
Total Net Position $ 517.5 $ 469.2 $ 48.3 10%
Table 2
Governmental Net Position
(in millions)
Increase (Decrease)
72 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 9 Management Discussion and Analysis
Analysis of Changes in Governmental Net Position
Governmental activities are summarized on Table 3, Changes in Governmental Net Position, showing that during fiscal year 2020-21 the City’s net position increased by $50.1 million.

Total revenues of $154.5 million, increased by $11.8 million (8%) and total governmental expenses of $100.4 million, decreased by $8.2 million (8%) when compared to last year. The most significant revenue changes were the increases in sales taxes of $10.6 million (18%), property tax of $1.6 million (6%), operating grants & contributions of $1.0 million, charges for services of $0.7 million and a decrease in investment earnings of $3.3 million due to a decrease in the fair market value of the investments held at June 30, 2021. Expenditures had decreases seen in General Government of $0.5 million (7%), Police of $0.6 million (1%) (Measure N, and GASB68 pension adjustments), Public Works of $8.2 million (40%) (capital related projects and activity) and Community Services of $0.8 million (7%) with increases in Community Development of $0.2 million (8%), Housing & Community Grants of $1.1 million (65%), and Fire of $0.7 million (4%).

FY 20-21 FY 19-20
$ %

REVENUES
Program Revenues:

Charges for Services $ 25.9 $ 25.2 $ 0.7 3%
Operating Grants & Contributions 6.1 5.1 1.0 20%
Capital Grants & Contributions 12.1 11.8 0.3 3%
General Revenues:

Taxes
Sales 70.9 60.3 10.6 18%
Property 27.9 26.3 1.6 6%
Other 9.3 8.0 1.3 16%
Investment Earnings 1.3 4.6 (3.3) -72%
Miscellaneous 1.0 1.4 (0.4) -29%
Total Revenues 154.5 142.7 11.8 8%

EXPENSES
General Government 6.9 7.4 (0.5) -7%
Community Development 2.7 2.5 0.2 8%
Housing & Community Grants 2.8 1.7 1.1 65%
Police 44.4 45.0 (0.6) -1%
Fire 19.7 19.0 0.7 4%
Public Works 12.2 20.4 (8.2) -40%
Community Services 11.3 12.1 (0.8) -7%
Interest on Long-Term Debt 0.4 0.5 (0.1) -20%
Total Expenses 100.4 108.6 (8.2) -8%
Increase (Decrease) in Net Position
Before Transfers 54.1 34.1 20.0 59%
Transfers (4.0) (4.5) (0.5) -11%
Total Transfers (4.0) (4.5) (0.5) -11%
Increase (Decrease) in Net Position 50.1 29.6 20.5 69%
Net Position at Beg. of Year, as Restated 467.4 437.8 29.6 7% Net Position at End of Year $ 517.5 $ 467.4 $ 50.1 11%
Table 3
Changes in Governmental Net Position
(in millions)
Increase (Decrease)
73 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 10 Management Discussion and Analysis

PROGRAM REVENUES
Charges for Services
These charges increased $0.7 million or 3% as compared to the prior year. The increase was mainly due to increased impact fee revenue for residential, industrial and commercial fees.

Grants (Operating & Capital) & Contributions
The combined income from operating and capital grants and contributions increased this year, up from last year by $1.3 million, for a total of $18.2 million.

GENERAL REVENUES
· Sales Tax - Sales tax increased $10.6 million from last year with increases in the general fund of $4.8 million, Measure N of $3.0 million, Measure T of $1.5 million, Measure R Regional sales tax revenues of $0.7 million, and Measure R Local sales tax revenues of $0.6 million as funding for projects in those funds were received. Measure N, Measure T, and Measure R are voter approved sales tax overrides whereas Measure N helps fund essential City services, Measure T public safety, and Measure R regional, local transit, bike, and pedestrian projects. The current year overall sales tax total is $70.9 million. · Property Taxes - Property tax revenues increased $1.6 million (6%) over last year currently totaling $27.9 million.
· Investment Earnings - Investment earnings decreased $3.3 million over last year mainly due to a decrease in interest rates on allowable investments for the year and a decrease in the fair market value of the investments held at June 30, 2021.

EXPENSES
· General Government - There were $6.9 million in expenses, a decrease of $0.5 million (7%) as compared to last year which was mainly due to a decrease in the annual GASB 68 pension adjustments of $0.5 million and increases in services provided of $0.3 million, salaries and benefits of $0.3 million and depreciation expense of $0.2 million.
· Community Development - There were $2.7 million in expenses, an increase of $0.2 million (8%) as compared to last year mainly due to decreases to the annual GASB 68 pension adjustment of $0.2 million and services provided of $0.1 million and increases in salaries and benefits of $0.5 million · Housing & Community Grants – There were $2.8 million in expenses, an increase of $1.1 million (65%) compared to last year which was mainly due to increases in program activity. · Police - There were $44.4 million in expenses, a decrease of $0.6 million (1%) as compared to last year which was mainly due to a decrease in the annual GASB 68 pension adjustment of $0.8 million and capital expenses of $0.2 million and increases in salaries and benefits of $0.8 million as a result of wage increases.
· Fire - There were $19.7 million in expenses, an increase of $0.7 million (4%) as compared to last year which was mainly due to an increase in salaries and benefits of $1.3 million as a result of wage increases and an increase in the annual GASB 68 pension adjustment of $0.3 million. 74 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 11 Management Discussion and Analysis
· Public Works - There were $12.2 million in expenses, a decrease of $8.2 million (40%) as compared to last year which was mainly due to due to a decrease in capital related activity and projects of $7.5 million, the annual GASB 68 pension adjustments of $0.6 million, services provided of $0.4 million and depreciation of $0.5 million with increases in salaries and benefits of $0.5 million as a result of wage increases.
· Community Services - There were $11.3 million in expenses, a decrease of $0.8 million (7%) as compared to last year which was mainly due to decreases in the annual GASB 68 pension adjustments of $0.4 million, services provided of $0.1 million and salaries and benefits of $0.3 million as a result of wage increases.
· Interest on Long-Term Debt - There was $0.4 million in interest expense for fiscal year 2020-21.

Scheduled principal payments were made on Certificates of Participation and bank notes. The 2014 COP has a maturity date of 2025 and the 2015 COP has a maturity date of 2029. As the City approaches the maturity, the annual debt payment goes towards interest less and more towards the principal.

Analysis of Business-Type Net Position
The City’s business-type net position, shown in Table 4, Business-Type Net Position, exceeded liabilities by $417.0 million. The largest portion of the net position, Net Investment in Capital Assets, is $277.9 million (67%).

Resources that are subject to restrictions total $12.9 million (3%). The remaining balance of $126.2 million (30%) represents unrestricted net position.

FY 20-21 FY 19-20
$ %
Assets
Cash and Investments $ 163.5 $ 149.5 $ 14.0 9%
Current and Other Assets 18.5 21.2 (2.7) -13%
Internal Balances (3.0) (2.5) (0.5) 20%
Capital Assets 377.0 373.8 3.2 1%
Total Assets 556.0 542.0 14.0 3%
Deferred Outflows of Resources
Deferred Pensions 4.4 4.7 (0.3) -6%
Total Deferred Outflows of Resources 4.4 4.7 (0.3) -6%
Liabilities
Other Liabilities 9.8 13.8 (4.0) -29%
Long-Term Debt Outstanding 133.0 135.7 (2.7) -2%
Total Liabilities 142.8 149.5 (6.7) -4%
Deferred Inflows of Resources
Deferred Pensions 0.6 0.9 (0.3) -33%
Total Deferred Inflows of Resources 0.6 0.9 (0.3) -33%
Net Position
Net Investment in Capital Assets 277.9 271.0 6.9 3%
Restricted 12.8 20.3 (7.5) -37%
Unrestricted 126.3 105.0 21.3 20%
Total Net Position $ 417.0 $ 396.3 $ 20.7 5%
Table 4
Business-Type Net Position
(in millions)
Increase (Decrease)
75 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 12 Management Discussion and Analysis
· Cash and Investments increased $14.0 million (9%), as these funds are accumulating cash for capital projects and scheduled debt payments. Increases included funds in Water Reclamation Facility of $7.7 million, Transit of $7.4 million, Building Safety of $1.7 million with decreases occurring in Solid Waste of $2.5 million and Storm Sewer Maintenance of $0.5 million. · Capital Assets totaled $377.0 million for the fiscal year, an increase of $3.2 million (1%). Construction in progress had an increase of $2.6 million as projects were capitalized and current projects are in progress.

Machinery, Equipment and Vehicles increased by $6.4 million mainly due to the additions of twenty-one new refuse trucks in Solid Waste of $6.9 million, one backhoe, one crawler dozer and one excavator in Storm Sewer Maintenance of $0.6 million, one camera van, one truck and equipment in Wastewater of $0.3 million and one utility tractor, a 4 in 1 bucket and equipment in Airport for $0.1 million. Retirements included one buss in Transit of $0.5 million, four refuse trucks, a crane and a Ford truck in Solid Waste of $1.0 million and one backhoe, one crawler dozer in Wastewater of $0.2 million. Infrastructure increased by $3.4 million which includes Storm Sewer lines and Sanitary Sewer lines. Accumulated depreciation increased by $9.8 million as assets were depreciated for the year. See Table 8, Capital Assets, Net of Accumulated Depreciation below for additional detail.
· Long-Term Debt totaling $133.0 million is composed of Net Pension Liability, Certificates of Participation, Capital Lease, Clean Water State Revolving Fund Loan, and Compensated absences. Regularly scheduled payments of $3.7 million and adjustments to the Net Pension Liability of $1.2 million resulted in a net decrease in long term debt of $2.5 million. See the accompanying Notes to Basic Financial Statements, Note 7- Long-Term Debt, and Note 10 Employee Benefits for further detail. · Net Position – Net Investment in Capital Assets totaling $277.9 million represents capital assets less accumulated depreciation and net of any debt used to finance its construction or purchase. This is a $6.9 million increase as compared to last year.
· Restricted Net Position of $12.8 million is primarily found in Capital Projects funds which have been restricted for related capital projects and debt service reserves. · Unrestricted Net Position of $126.3 million experienced an increase of $21.2 million. Unrestricted Net Position is normally the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements.

Analysis of Changes in Business-Type Net Position
Table 5, Changes in Business-Type Net Position shows the results of the City’s businesses for the last two fiscal years. The City’s Business-type activities increased the City’s net position by $20.7 million (5%) during fiscal year 2020-21. Total Business-type revenues of $89.8 million decreased by $1.7 million (2%) when compared to last year. Total Business-type expenses totaled $73.1 million, a decrease of $1.1 million (1%) as compared to last year. 76 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 13 Management Discussion and Analysis
Revenues
· Charges for Services – These revenues were down collectively by $0.8 million mainly as a result of decreased revenue at the Convention Center of $1.4 million due to the significant decreased event activity throughout the year and the effects of the COVID-19 pandemic restrictions issued by the State of California.
· Operating and Capital Grants and Contributions – The combined revenue from operating and capital grants & contributions increased this year $3.9 million due to increases in Storm Sewer Maintenance of $1.8 million, Water Reclamation Facility of $0.5 million, Airport of $0.9 million, and Solid Waste of $1.4 million and a decrease in Transit of $0.8 million.

Expenses
· Convention Center – There were $2.4 million in expenses, a decrease of $1.9 million (44%) mainly as a result of the shutdown due to the COVID-19 pandemic. Decreases were seen in Salaries and benefits of $1.5 million due to annual pension adjustments and reduced staffing levels related to COVID-19 and operations and maintenance of $0.4 million due to the reduction in events as a direct result of the FY 20-21 FY 19-20
$ %

REVENUES
Program Revenues:

Charges for Services $ 59.8 $ 60.6 $ (0.8) -1%
Operating Grants & Contributions 15.4 16.0 (0.6) -4%
Capital Grants & Contributions 12.1 7.6 4.5 59%
Investment Earnings 0.7 4.4 (3.7) -84%
Miscellaneous 1.8 2.9 (1.1) -38%
Total Revenues 89.8 91.5 (1.7) -2%

EXPENSES
Convention Center 2.4 4.3 (1.9) -44%
Airport 3.1 2.1 1.0 48%
Water Reclamation Facility 22.7 22.8 (0.1) 0%
Storm Sewer Maintenance 2.9 2.5 0.4 16%
Solid Waste 19.2 19.0 0.2 1%
Transit 17.3 17.8 (0.5) -3%
Baseball 0.2 0.2 - 0%
Animal Control 1.9 2.0 (0.1) -5%
Building Safety 3.4 3.5 (0.1) -3%
Total Expenses 73.1 74.2 (1.1) -1%
Increase in Net Position
Before Transfers 16.7 17.3 (0.6) -3%
Transfers 4.0 4.5 (0.5) -11%
Increase in Net Position 20.7 21.8 (1.1) -5%
Net Position at Beg. Year 396.3 374.5 21.8 6%
Net Position at End of Year $ 417.0 $ 396.3 $ 20.7 5%
Table 5
Changes in Business-Type Net Position
(in millions)
Increase (Decrease)
77 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 14 Management Discussion and Analysis
COVID-19 pandemic shutdown. The state guidelines allowed for reopening of the Convention Center June 15, 2021.
· Airport – There were $3.1 million in expenses, an increase of $1.0 million (48%) mainly due increased capital expenses of $1.1 million and decreases to maintenance and operations expenses of $0.1 million consisting of decreases in allocated expenses and services provided of $0.1 million and a decrease in salaries and benefits of $23K due to the annual pension adjustments being less than the previous year · Water Reclamation Facility – There were $22.7 million in expenses, a decrease of $0.1 million (0.4%) due to decreases in equipment supply and maintenance repair of $0.4 million, instrument repair/replacement of $0.1 million and allocated expenses and services provided of $0.1 million, with increases in utilities of $0.1 million, and chemical expenses of $0.2 million. Decreases occurred in salaries and benefits of $0.2 million due to annual pension adjustments being less than the previous year and capital expenses of $0.4 million.
· Storm Sewer Maintenance – There were $2.9 million in expenses, an increase of $0.4 million (16%) mainly due to an increase in capital expenses of $0.4 million. · Solid Waste – There were $19.2 million in expenses, an increase of $0.2 million (1%) mainly due to increases in capital expenses of $0.6 million and salaries and benefits of $0.1 million due to wage and benefit increases and annual pension adjustments offset by a decrease in allocated expenses and services provided of $0.4 million.
· Transit – There were $17.3 million in expenses, a decrease of $0.5 million (3%) mainly due to decreases in allocated expenses and services provided of $0.3 million, contract bus services including cancellation of Sequoia shuttle bus service of $0.3 million resulting from a shutdown due to the COVID-19 pandemic, and a depreciation of $0.3 million, offset by wage and benefit increases and annual pension adjustments and an increase in capital expenses of $0.3 million.
· Building Safety – There were $3.4 million in expenses, a decrease of $0.1 million (3%) mainly due to decrease to salaries and benefits of $0.1 million due to the annual pension adjustments. · Animal Control – There were $1.9 million in expenses, a decrease of $0.1 million (5%) mainly due to a decrease in salaries and benefits of $26K due to the annual pension adjustments and decreases in maintenance and operations expenses of $30K consisting of an increase in bad debt expense of $21K offset by a decrease in allocated expenses and services provided of $49K. · Baseball – There were $0.2 million in expenses consistent with the prior year.

FUND FINANCIAL ANALYSIS
Governmental Funds are reported on a modified accrual basis of accounting in the fund statements, essentially eliminating the effects of capital assets and related debt. Table 6, Balance Sheet – Governmental Funds shows the last two fiscal years’ results.
78 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 15 Management Discussion and Analysis
Assets – The composition of assets changed by $55.2 million (26%) during the year with increases in cash, other assets, and intergovernmental balances. Cash and investments increased $53.2 million (37%) mainly due to revenues exceeding expenditures and other sources & (uses) by $42.5 million. Other assets increased $4.3 million (7%) mainly as the result of increases in accounts receivable of $2.6 million (mainly due to an increase in Transportation Impact fee receivable of $1.0 million) and taxes receivable of $3.1 million. Intergovernmental balances decreased $2.3 million (27%) as a result of a decrease in advances to other funds of $1.8 million and a decrease in amounts due from other governmental agencies of $0.5 million.

Liabilities – Liabilities have increased $12.4 million (105%) mainly due to an increase in other liabilities of $15.3 million (207%) due the unearned revenue for the American Rescue Plan fund offset by decreases in advances from other funds of $2.2 million and accounts payable of $0.2 million.

Deferred Inflows of Resources – Deferred Inflows of Resources increased $1.2 million (21%) mainly due to an increase in impact fees receivable.

Fund Balance - By June 30, 2021, the City’s Governmental Funds had a total fund balance of $234.2 million, an increase of $41.6 million (22%) from the prior fiscal year, which was a combination of increases and decreases in various funds which are discussed later. Table 7, Statement of Revenues & Expenditures – Governmental Funds shows the results of the last two fiscal years’ activities.

FY 20-21 FY 19-20
$ %
Assets
Cash and Investments $ 195.5 $ 142.3 $ 53.2 37%
Other Assets 63.7 59.4 4.3 7%
Intergovernmental Balances 6.1 8.4 (2.3) -27%
Total Assets 265.3 210.1 55.2 26%
Liabilities
Advances From Grantors and Third Parties - 0.6 (0.6) -100% Advances From Other Funds 1.5 3.8 (2.3) -61%
Other Liabilities 22.7 7.4 15.3 207%
Total Liabilities 24.2 11.8 12.4 105%
Deferred Inflows of Resources
Unavailable Revenue 6.9 5.7 1.2 21%
Total Deferred Inflows of Resources 6.9 5.7 1.2 21%
Fund Balances
Nonspendable 3.5 0.7 2.8 400%
Restricted 144.0 113.0 31.0 27%
Committed 52.8 46.5 6.3 14%
Assigned 28.5 31.4 (2.9) -9%
Unassigned 5.4 1.0 4.4 440%
Total Fund Balances $ 234.2 $ 192.6 $ 41.6 22%
Table 6
Balance Sheet - Governmental Funds
(in millions)
Increase (Decrease)
79 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 16 Management Discussion and Analysis
Revenues increased $12.7 million from the prior year. Sales tax increased $10.6 million which includes growth in general sales tax of or $4.8 million (14%), Measure N sales tax of $3.0 million (22%) and Measure T sales tax of $1.5 million (21%). Measure R sales tax revenues had an increase of $1.3 million (25%) as funding for projects in those funds were received. Property tax revenue saw an increase of $1.6 million (6%). Other increases in revenues included subventions and grants of $3.0 million as funds were obtained for projects; fees and fines of $0.3 million as impact fee revenue was up; and other taxes of $1.3 million which include transient occupancy tax, franchise fees and business licenses. Decreases were seen in uses of money and property of $3.4 million as interest earnings were down due to lower earnings rates and a decrease in the fair market value of the investments held at June 30, 2021; charges for current services of $0.2 million; and miscellaneous of $0.4 million. Expenditures decreased by $6.8 million mainly due to decreases in capital related projects compared to the prior year of $10.6 million and Community Services of $0.8 million, with increases in Police of $0.8 million, Fire of $1.3 million, Housing & Community Grants of $1.5 million, General Government of $0.7 million and Community Development of $0.4 million.

Other Financing Sources & Uses in the governmental funds had a decrease of $1.3 million compared to the prior year mainly due to the sale of land of $1.0 million in the current year. Transfers out exceeded transfers in for the year.

ANALYSIS OF MAJOR GOVERNMENTAL FUNDS
General Fund - The General Fund saw a change in fund balance with an increase of $0.5 million. The General Fund saw an overall increase in revenues of $6.9 million (9%) as compared to last year. The increases included sales tax of $4.8 million (14%), property taxes of $1.6 million (6%), other taxes of $1.3 million (16%), subventions and grants of $1.4 million (181%), and decreases in fees and fines of $0.3 million (24%), uses of money and property of $0.8 million (51%), charges for current services of $0.5 million (16%) and miscellaneous revenue of $0.5 million (26.1%).

If there is a General Fund surplus at year end, the surplus is first to be distributed to fund the Emergency Reserve to meet Council’s goal of 25% of operating expenditures and then any remaining surplus is to be transferred to the Civic Center Fund. This fiscal year, the largest transfer out from the General Fund is to the Civic Center Fund totaling $12.2 million.

Measure N – The Measure N fund is used to account for the half-cent sales tax override approved by the citizens of Visalia in November 2016 which funds increased City essential services of Police, Fire, Streets and Parks. Measure N saw an overall increase in revenues of $2.6 million. The increase includes sales tax of $3.0 million offset by a decrease in uses of money and property of $0.5 million. The Measure N Fund’s fund balance increased $6.4 million to $29.7 million as a result of revenues exceeding expenditures for the year.

FY 20-21 FY 19-20
$ %
Revenues $ 151.6 $ 138.9 $ 12.7 9%
Expenditures 106.1 112.9 (6.8) -6%
Excess (Deficiency) of Revenues
Over (Under) Expenditures 45.5 26.0 19.5 75%
Other Sources & (Uses) (3.0) (4.3) 1.3 -30%
Net Change $ 42.5 $ 21.7 $ 20.8 96%
Table 7
Statement of Revenues & Expenditures - Governmental Funds (in millions)
Increase (Decrease)
80 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 17 Management Discussion and Analysis
Housing & Community Grants - This fund accounts for the Community Development Block Grants (CDBG), Home Investment Partnership Program (HOME) and Neighborhood Stabilization Program (NSP) Grant funds. Also included are the Substandard Housing and Vehicle Abatement funds. The fund’s assets include $12.7 million in notes and loans receivable. The notes and loans receivable are for housing assistance through the various grant programs as well as past rental rehabilitation loans. Revenues exceeded expenditures by $0.9 million for the year resulting in an ending fund balance of $15.3 million.

Housing Successor Agency - The Housing Successor Agency Fund is used to retain the housing assets and functions previously performed by the dissolved Redevelopment Agency of the City of Visalia. Revenues exceeded expenditures by $0.4 million resulting in an ending fund balance of $10.7 million.

American Rescue Plan – The American Rescue Plan Fund is used to account for the tracking of these special revenue funds. Funding is provided by the American Rescue Plan Act resulting from the COVID pandemic. The funds’ assets include $14.7 million in unearned revenue. The American Rescue Plan Fund’s balance is $3K.

All Other Governmental Funds - These funds (referred to as Non-Major Funds) are not presented separately in the Basic Financial Statements but are individually presented in Supplementary Information. Combined they received $46.4 million in revenue and have a combined Fund Balance at year-end of $125.4 million.

ANALYSIS OF MAJOR PROPRIETARY FUNDS
Business-Type Funds
By June 30, 2021, the City’s Proprietary Funds combined net position totaled $418.7 million, an increase of $20.8 million from the prior fiscal year, which was a combination of increases and decreases in various funds.

Enterprise operating revenues, including charges for services and grants and contributions, were $75.2 million this year, a decrease of $1.3 million from last year. Grants and contributions had a decrease of $0.5 million and are mainly due to Transit grant revenue being lower. The decrease in charges for services of $0.8 million is mainly due to a decrease in the Convention Center of $1.4 million as a result of the facility shutdown due to the COVID-19 pandemic. Decreases also included Transit of $1.5 million also due to the COVID-19 pandemic as fee’s for ridership were suspended, offset by increased activity in Water Reclamation facility of $0.3 million, Airport of $0.2 million (Fuel Sales), Solid Waste of $1.1 million, Building Safety of $0.4 million (Residential Construction Permits), and Animal Control fees of $0.1 million.

Operating expenses were $70.6 million this year, an increase of $1.0 million from last year mainly due to Convention Center having a decrease of $1.9 million due to reduced staffing levels related to COVID-19 as the facility was closed and Transit having a decrease of $0.9 million mainly due to cancelled bus services also related to the COVID-19 pandemic.

Convention Center - Operating revenues decreased by $1.4 million and operating expenses decreased by $1.9 million mainly as a result of the facility shutdown due to the COVID-19 pandemic. Decreases were seen in Salaries and benefits of $1.5 million due to annual pension adjustments and reduced staffing levels related to COVID-19 and operations and maintenance of $0.4 million due to the reduction in events as a direct result of the COVID-19 pandemic shutdown. The state guidelines allowed for reopening of the Convention Center June 15, 2021.

Airport - Operating revenues increased by $0.2 million mainly due to increases in fuel sales of $111K, fuel flowage fees of $12K, FOB revenues of $24K, and hanger rentals of $36K, offset by decreases for “into plane” fuel sales of $34K and terminal rent of $8K. Operating expenses decreased by $0.1 million mainly due to decreases in allocated expenses and services provided of $0.1 million and a decrease in salaries and benefits of $23K due to the annual pension adjustments being less than the previous year.
81 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 18 Management Discussion and Analysis
Water Reclamation Facility - Operating revenues increased $0.3 million due to a combination of increases in industrial fees of $0.4 million, front footage fees of $0.2 million, user charges of $0.3 million, treatment connection fees of $0.2 million and septage receiving fees of $0.1 million offset by decreases in commercial fees of $0.1 million, and residential fees of $0.9 million which are mainly due to a change in utility bill due dates for all accounts to the 30th of the month. Operating expenses increased by $0.7 million mainly due to decreases in maintenance and operating costs of $0.3 million consisting of decreases in equipment supply and maintenance repair of $0.4 million, instrument repair/replacement of $0.1 million and allocated expenses and services provided of $0.1 million, offset by increases in utilities of $0.1 million, chemical expenses of $0.2 million, and capital related activity of $1.1 million. Salaries and benefits decreased $0.2 million due to the annual pension adjustments being less than the previous year.

Storm Sewer Maintenance - Operating revenues had a slight increase of $39K. Operating expenses increased by $0.6 million due to increases in salaries and benefits of $47K due to the wage and benefit increases and the annual pension adjustment being less than the previous year in addition to increases in deprecation of $61K and capital related activity of $0.5 million.

Solid Waste - Operating revenues increased $1.2 million mainly due to increases in single family fee revenue of $0.3 million, multifamily fee revenue of $0.1 million, commercial recycling fee revenue of $0.1 million and commercial fee revenue of $0.8 million offset by a decrease in CNG fuel rebates of $0.2 million due to the timing of receiving the fuel rebate. Operating expenses increased by $0.8 million mainly due to a decrease in maintenance and operations costs for allocated expenses and services provided of $0.4 million offset by an increase in salaries and benefits of $0.1 million due to wage and benefit increases and the annual pension adjustments and capital related activity of $1.2 million.

Transit – Operating revenues decreased $2.2 million from last year. Charges for services decreased $1.5 million as ridership fees were suspended due to the COVID-19 pandemic resulting in decreases in Sequoia shuttle ticket sales of $0.6 million, farebox sales of $0.3 million, ticket sales of $0.5 million and CNG sales of $0.3 million due to a timing issue of federal reimbursements offset by an increase in carbon credits of $0.2 million. Operating grant revenue decreased $0.8 million due to reduced funding available as the max grant funding allowable limit was reached. Operating expenses decreased by $0.4 million mainly due to a decrease in maintenance and operations for allocated expenses and services provided of $0.3 million, contract bus services including cancellation of Sequoia shuttle bus service of $0.3 million, depreciation of $0.3 million, salaries and benefits decreased $47K due to the annual pension adjustments being less than the previous year offset by capital related activity of $0.5 million.

Building Safety – Operating revenues increased by $0.4 million mainly due to an increase in single family dwellings permits compared to prior years activity. Operating expenses increased by $0.1 million including decreases in salaries and benefits of $0.1 million due to the annual pension adjustments being less than the previous year, and maintenance and operations costs of $0.1 million mainly due to decreases in credit card usage fees of $25K and allocated expenses and services provided of $70K offset by an increase in capital related activity of $0.1 million.

Animal Control – Operating revenues increased by $0.1 million as a result of increased activity in services for Dinuba of $55K due to the timing of the revenue collected in the prior year, adding new services for Tulare of $29K, administration and other fines of $47K, offset by lower kennel fees of $15K, facility shelter fees of $22K, and license fees of $10K. Operating expenses decreased by $46K due to a decrease in salaries and benefits of $26K due to the annual pension adjustments being less than the previous year, and maintenance and operations expenses of $20K mainly consisting of an increase in bad debt expense of $21K and capital related activity of $10K, offset by a decrease in allocated expenses and services provided of $49K. 82 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 19 Management Discussion and Analysis
Baseball – There are no operating revenues for the Baseball fund due to the current contract with Fast Pitch Entertainment, LLC, the organization that runs the Rawhide Baseball team. Operating expenses had an increase of $0.1 million mainly due to the 1st year of the depreciation for the video scoreboard.

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

Budgeted total revenues increased by $0.4 million, to a final budgeted amount of $71.9 million, mainly due to additional federal, state and county grant funding secured by the City.

Budgeted total expenditures increased by $1.1 million to a final budgeted amount of $68.6 million, mainly due to an increase of $1.3 million in Capital Outlay (Projects).

General Fund - Final Budget and Actual Comparison
Total revenues were $12.4 million higher than the final budgeted amount, as detailed below. The fiscal year 2020- 21 budget was adopted during the initial stages of the COVID-19 pandemic. These were very uncertain times as historic shutdowns were occurring making economic forecasting very difficult. Because of this, staff budgeted with worst case scenarios in mind. To counter the COVID-19 pandemic, the federal government issued several distributions of stimulus money which helped to prevent an economic downturn. · Sales Tax – was $8.3 million more than budgeted as the economy had growth aided heavily by several distributions of Federal stimulus money put into consumers’ pockets due to the COVID-19 pandemic. · Property Tax – was $1.9 million more than budgeted as valuation increased more than anticipated. · Transient Occupancy Tax – was $1.1 million more than budgeted as the budget was conservative due to the COVID-19 pandemic and the effects it initially had on the travel and hospitality industry. · Business License – was $0.6 million more than budgeted as business license activity was higher than anticipated for the year.
· Subventions and Grants – was $1.2 million more than budgeted due to the City receiving grant funding of $1.4 million for COVID-19.
· Local Ordinance Violations, Vehicle Code and Parking Violations – was $0.1 million less than budgeted as violations were less than projected.
· Interest Earned – was $0.1 million more than budgeted due to higher interest earnings rates than projected.
· Engineering and Subdivision Services – was $0.5 million more than budgeted as these specialized services were higher than anticipated for the year as building growth continued in the City. 83 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 20 Management Discussion and Analysis
· Recreation Programs – was $1.3 million less than budgeted as these programs were highly impacted by the shutdown due to the COVID-19 pandemic and were not being offered due to the restrictions imposed by the State of California.

Total expenditures were $1.4 million less than budget. This difference was due to $0.1 million in higher capital outlay and $2.3 million in vacancies offset by higher salaries and benefits for the year as compared to the budget.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its Governmental and Business-Type activities as of June 30, 2021 totaled $728.2 million (net of accumulated depreciation), as shown in Table 8, Capital Assets, Net of Accumulated Depreciation.

For Government-wide Financial Statements, capital asset purchases for governmental activities are capitalized and depreciated. In contrast, in the Fund Financial Statements capital asset purchases for governmental activities are recorded as expenditures. Additional information about the City’s capital assets can be found in the Notes to Financial Statements, Note 6 – Capital Assets.

Major capital asset events during the current fiscal year included the following:

Governmental
· Signal at Demaree and Goshen project completed
· Santa Fe and Tulare Ave roundabout project in progress · Modoc Trail - Giddings to Demaree completed
· Caldwell improvements Akers to Shady and Santa Fe to Lovers Lane in progress · Downtown street light project in progress
FY 20-21 FY 19-20
$ %
Governmental Activities
Land $ 41.6 $ 42.0 $ (0.4) -1%
Buildings 46.6 47.9 (1.3) -3%
Improvements 61.5 63.7 (2.2) -3%
Equipment 18.9 18.5 0.4 2%
Infrastructure 161.2 151.1 10.1 7%
Construction in Progress 21.4 23.0 (1.6) -7%
Total $ 351.2 $ 346.2 $ 5.0 1%
Business-Type Activities
Land $ 26.1 $ 26.1 $ - 0%
Buildings 33.1 34.3 (1.2) -3%
Improvements 164.1 168.3 (4.2) -2%
Equipment 27.3 22.8 4.5 20%
Infrastructure 117.8 116.3 1.5 1%
Construction in Progress 8.6 6.0 2.6 43%
Total $ 377.0 $ 373.8 $ 3.2 1%
Total City-Wide $ 728.2 $ 720.0 $ 8.2 1%
Table 8
Capital Assets, Net of Accumulated Depreciation
(in millions)
Increase (Decrease)
84 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 21 Management Discussion and Analysis
· Shirk widening project in progress
· Riggin widening project in progress
· East Side Regional Park & Basin in progress
· Purchase of HazMat truck
· Purchase of a van for Police Department Community Outreach · Purchase of spray truck and equipment for Parks
Business-type
· New Aircraft Hangar construction project in progress
· Addition of storm drain infrastructure
· Airport roof replacement project completed
· Purchase of van equipped with CCTV technology for Wastewater Collections · Purchase of 14 residential side-load Solid Waste trucks · Purchase of 4 commercial front-load Solid Waste trucks · Purchase of 2 commercial roll-off Solid Waste trucks
· Purchase of John Deere Crawler Dozer for Storm Sewer Maintenance · Purchase of John Deere Excavator for Storm Sewer Maintenance Debt Administration
The City’s total long-term debt decreased by $4.3 million (4%) during the fiscal year, as shown in Table 9, Outstanding Debt. This was due to the City’s regularly scheduled debt service payments and adjustments to Compensated Absences. See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt for further detail. The following summarizes the City’s outstanding debt.

REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, customers, investors and creditors, with a general overview of the City’s finances, and to demonstrate the City’s accountability for the money it receives and expends. If you have questions about this report, or need any additional financial information, contact the City of Visalia’s Finance Department at 707 W. Acequia Ave., Visalia, CA 93291.

FY 20-21 FY 19-20
$ %
Governmental Activities
Certificates of Participation $ 9.4 $ 10.3 $ (0.9) -9%
Compensated Absences 5.8 5.5 0.3 5%
Total 15.2 15.8 (0.6) -4%
Business-Type Activities
Certificates of Participation 6.3 7.2 (0.9) -13%
Lease 3.5 3.9 (0.4) -10%
Notes - Direct Borrowings 89.3 91.7 (2.4) -3%
Compensated Absences 1.1 1.1 - 0%
Total $ 100.2 $ 103.9 $ (3.7) -4%
Total City-Wide $ 115.4 $ 119.7 $ (4.3) -4%
Table 9
Outstanding Debt
(in millions)
Increase (Decrease)
85 22
86 23

BASIC FINANCIAL

STATEMENTS
87 24
88 City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2021 25 Statement of Net Position and Statement of Activities

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities are required by Governmental Accounting Standards Board (GASB) Statement No. 34. Their purpose is to summarize the entire City’s financial activities and financial position. They are prepared on the same basis of accounting as is used by most businesses, which means they include all the City’s assets and all its liabilities, deferred inflows and outflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis of accounting - the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and deferred inflows of resources and the City’s total liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position presents information similar to the old balance sheet format, but presents it in a way that focuses the reader on the composition of the City’s net position, by subtracting total liabilities from total assets.

The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.

The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating interfund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis of accounting, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the modified accrual basis of accounting used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

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

Both these statements include the financial activities of the City and the Visalia Public Finance Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of this entity.

These financial statements, along with the fund financial statements and footnotes, are called Basic Financial Statements; the term General Purpose Financial Statements is no longer used. 89 26
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments (Note 3) $ 230,846,532 $ 158,843,577 $ 389,690,109 Restricted Cash and Investments (Note 3) 8,670 4,615,230 4,623,900 Accounts Receivable 5,679,739 6,084,327 11,764,066
Interest Receivable 1,290,429 - 1,290,429
Taxes Receivable 20,187,016 299,201 20,486,217
Notes and Loans Receivable (Note 5) 36,214,327 159,496 36,373,823 Supplies 1,158,039 43,317 1,201,356
Inventory (Note 1I) 221,595 40,819 262,414
Internal Balances (Note 4D) 2,998,623 (2,998,623) -
Due from Other Governmental Units 3,204,251 11,914,510 15,118,761 Land Held for Redevelopment (Note 1G) 34,359 - 34,359
Prepaids and Deposits 1,024,997 13,416 1,038,413
Capital Assets, Net of Accumulated Depreciation (Note 6):

Capital Assets Not Being Depreciated 63,025,167 34,685,217 97,710,384 Capital Assets Being Depreciated 288,198,984 342,264,415 630,463,399 Total Assets 654,092,728 555,964,902 1,210,057,630

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 20,919,896 4,429,555 25,349,451 Total Deferred Outflows of Resources 20,919,896 4,429,555 25,349,451

LIABILITIES
Accounts, Interest, and Contracts Payable 6,649,442 6,213,690 12,863,132 Advances from Grantors and Third Parties - 2,506,020 2,506,020 Customer Deposits 770,300 722,086 1,492,386
Unearned Revenue 15,640,187 228,984 15,869,171
Accrued Personnel Costs 40,981 - 40,981
Long-Term Obligations (Note 7):

Due Within One Year 2,157,879 3,958,047 6,115,926
Due in More Than One Year 13,088,635 96,190,157 109,278,792 Liability for Self-Insurance Claims (Note 11):

Due Within One Year 1,614,142 - 1,614,142
Due in More Than One Year 7,214,758 - 7,214,758
Net Pension Liability Due in More Than One Year (Note10) 107,322,788 32,973,179 140,295,967 Total Liabilities 154,499,112 142,792,163 297,291,275

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 2,977,966 575,259 3,553,225
Total Deferred Inflows of Resources 2,977,966 575,259 3,553,225

NET POSITION
Net Investment in Capital Assets 360,652,057 277,874,011 638,526,068 Restricted for:

Capital Projects 108,234,926 8,521,718 116,756,644
Debt Service 8,670 4,365,230 4,373,900
Waterways/Groundwater Projects 1,897,196 - 1,897,196
Landscape & Lighting Districts 2,619,212 - 2,619,212
Public Safety 9,621,240 - 9,621,240
Roadway Projects 7,641,329 - 7,641,329
Golf Course Maintence Projects & Misc 703,262 - 703,262 Total Restricted Net Position 130,725,835 12,886,948 143,612,783 Unrestricted 26,157,654 126,266,076 152,423,730

Total Net Position $ 517,535,546 $ 417,027,035 $ 934,562,581

CITY OF VISALIA

STATEMENT OF NET POSITION
JUNE 30, 2021
90 27
The accompanying notes are an integral part of these financial statements.

Operating Capital BusinessCharges for Grants and Grants and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
General Government $ 6,883,122 $ 1,109,576 $ 2,036,330 $ 400,348 $ (3,336,868) $ - $ (3,336,868) Community Development 2,740,856 870,864 25,708 7,871 (1,836,413) - (1,836,413) Housing & Community Grants 2,750,870 21,877 3,192,164 35,287 498,458 - 498,458 Public Safety
Police 44,431,235 2,953,225 808,845 34,127 (40,635,038) - (40,635,038) Fire 19,744,870 1,654,159 20 50,468 (18,040,223) - (18,040,223) Public Works 12,224,546 11,303,312 - 11,616,319 10,695,085 - 10,695,085 Community Services 11,271,179 7,956,824 701 3,544 (3,310,110) - (3,310,110) Interest on Long-Term Debt 400,497 - - - (400,497) - (400,497) Total Governmental Activities 100,447,175 25,869,837 6,063,768 12,147,964 (56,365,606) - (56,365,606) Business-Type Activities
Convention Center 2,360,006 504,756 15,024 - - (1,840,226) (1,840,226) Airport 3,118,827 1,775,224 9,120 2,182,755 - 848,272 848,272 Water Reclamation Facility 22,680,911 26,428,859 112,741 1,403,790 - 5,264,479 5,264,479 Storm Sew er Maintenance 2,859,886 1,314,967 5,374 3,224,892 - 1,685,347 1,685,347 Solid Waste 19,211,851 20,564,277 100,575 1,979,070 - 3,432,071 3,432,071 Transit 17,263,714 3,622,684 15,130,689 3,302,344 - 4,792,003 4,792,003 Baseball 243,018 - - - - (243,018) (243,018)
Animal Control 1,927,271 646,574 55,659 - - (1,225,038) (1,225,038) Building Safety 3,410,955 4,934,104 25,863 - - 1,549,012 1,549,012 Total Business-Type Activities 73,076,439 59,791,445 15,455,045 12,092,851 - 14,262,902 14,262,902 Total $ 173,523,614 $ 85,661,282 $ 21,518,813 $ 24,240,815 (56,365,606) 14,262,902 (42,102,704) General Revenues
Taxes:

Sales Taxes 70,926,201 - 70,926,201
Property Taxes 27,875,307 - 27,875,307
Transient Occupancy Taxes 3,323,538 - 3,323,538
Franchise Taxes 2,795,357 - 2,795,357
Business License Taxes 3,156,139 - 3,156,139
Investment Earnings 1,311,040 673,450 1,984,490
Miscellaneous 1,056,470 1,810,395 2,866,865
Transfers (4,018,407) 4,018,407 -
Total General Revenues and Transfers 106,425,645 6,502,252 112,927,897 Change in Net Position 50,060,039 20,765,154 70,825,193 Net Position - Beginning of Year, As Restated (Note 14) 467,475,507 396,261,881 863,737,388 Net Position - End of Year $ 517,535,546 $417,027,035 $934,562,581

CITY OF VISALIA

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net (Expense) Revenue
Program Revenues and Changes in Net Position
91 28
92 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 29 Major Governmental Funds

FUND FINANCIAL STATEMENTS
GASB Statement No. 34 revised the format of the Fund Financial Statements so that only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year. No distinction is made between fund types.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2020-21.

Individual non-major funds are presented in the Supplementary Information section.

GENERAL FUND
The General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds and their related expenditures. The General Fund accounts for all financial resources of the City which are not accounted for in another fund. The General Fund includes the Emergency Reserve Fund.

MEASURE N
Measure N is used to account for increased Police, Fire, Streets, and Parks essential services. Financing is provided by the ½ cent sales tax ballot measure (N) approved by voters during the November 8, 2016 election.

HOUSING & COMMUNITY GRANTS FUND
The Housing & Community Grants Fund is used to account for the affordable housing and public service needs of the City’s low and moderate income households. Financing is provided by Community Development Block Grants (CDBG), the Home Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP), Permanent Local Housing Allocation and fines charged for substandard housing and abandoned vehicle abatement. Also, within the CDBG, HOME and NSP programs, when money that was previously loaned out is paid back, it again becomes available for use in the rehabilitation and development programs.

HOUSING SUCCESSOR AGENCY FUND
The Housing Successor Agency Fund is used to retain the housing assets and functions previously performed by the dissolved Redevelopment Agency of the City of Visalia.

AMERICAN RESCUE PLAN ACT FUND
Established to track and account for American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines.
93 30
The accompanying notes are an integral part of these financial statements.

General
Fund
Measure N -
Special Revenue
Fund
Housing &
Community
Grants - Special
Revenue Fund
ASSETS
Cash and Investments (Note 3) $ 28,365,293 $ 26,377,418 $ 1,780,257 Restricted Cash and Investments (Note 3) - - -
Accounts Receivable 1,469,163 - 103
Interest Receivable 1,290,429 - -
Taxes Receivable 11,132,478 3,348,921 6,119
Notes and Loans Receivable (Note 5) 12,957,333 - 12,697,529 Supplies 19,272 - -
Inventory (Note 1I) 136,564 - -
Due from Other Funds (Note 4C) 4,980 - -
Advances to Other Funds (Note 4B) 2,912,062 - -
Due from Other Governmental Units 147,585 - 1,024,818
Land Held for Redevelopment (Note 1G) - - -
Prepaids and Deposits 21,701 - -
Total Assets $ 58,456,860 $ 29,726,339 $ 15,508,826

LIABILITIES
Accounts, Interest & Contracts Payable $ 1,417,252 $ 52,725 $ 208,838 Due to Other Funds (Note 4C) - - 4,980
Advances from Other Funds (Note 4B) - -
Customer Deposits 392,480 - -
Unearned Revenue 762,450 - -
Accrued Personnel Costs (Note 10 G) 8,123 - -
Total Liabilities 2,580,305 52,725 213,818

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax 1,012,214 - -
Unavailable Revenue - Business Tax 858,267 - -
Unavailable Revenue - Impact Fees 318,488 - -
Unavailable Revenue - Misc 480,733 - -
Unavailable Revenue - Notes 61,156 - -
Unavailable Revenue - Asset Forfeiture - - -
Total Deferred Inflows of Resources 2,730,858 - -
FUND BALANCES (Note 9)
Nonspendable 3,479,720 - -
Restricted - 28,467,942 15,167,025
Committed 16,609,498 1,205,672 127,983
Assigned 27,628,688 - -
Unassigned 5,427,791 - -
Total Fund Balances 53,145,697 29,673,614 15,295,008
$ 58,456,860 $ 29,726,339 $ 15,508,826
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Major Funds

CITY OF VISALIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
94 31
The accompanying notes are an integral part of these financial statements.

Non-Major Funds
Housing
Successor
Agency - Special
Revenue Fund
American
Rescue Plan -
Special
Revenue Fund
All Other
Governmental
Funds Total
ASSETS
Cash and Investments (Note 3) $ 1,134,903 $ 14,684,994 $ 123,209,813 $ 195,552,678 Restricted Cash and Investments (Note 3) - - 8,670 8,670 Accounts Receivable 413,831 - 3,787,313 5,670,410
Interest Receivable - - - 1,290,429
Taxes Receivable - - 5,699,498 20,187,016
Notes and Loans Receivable (Note 5) 9,125,168 - 1,434,297 36,214,327 Supplies - - - 19,272
Inventory (Note 1I) - - 85,031 221,595
Due from Other Funds (Note 4C) - - - 4,980
Advances to Other Funds (Note 4B) - - - 2,912,062
Due from Other Governmental Units - - 2,031,848 3,204,251 Land Held for Redevelopment (Note 1G) 34,359 - - 34,359 Prepaids and Deposits - - - 21,701
Total Assets $ 10,708,261 $ 14,684,994 $ 136,256,470 $ 265,341,750

LIABILITIES
Accounts, Interest & Contracts Payable $ 5,781 $ - $ 4,567,437 $ 6,252,033 Due to Other Funds (Note 4C) - - - 4,980
Advances from Other Funds (Note 4B) - - 1,544,778 1,544,778 Customer Deposits - - 377,820 770,300
Unearned Revenue - 14,682,227 195,510 15,640,187
Accrued Personnel Costs (Note 10 G) - - - 8,123
Total Liabilities 5,781 14,682,227 6,685,545 24,220,401

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax - - - 1,012,214
Unavailable Revenue - Business Tax - - - 858,267
Unavailable Revenue - Impact Fees - - 2,388,954 2,707,442 Unavailable Revenue - Misc - - - 480,733
Unavailable Revenue - Notes - - 1,306,885 1,368,041
Unavailable Revenue - Asset Forfeiture - - 448,828 448,828 Total Deferred Inflows of Resources - - 4,144,667 6,875,525 FUND BALANCES (Note 9)
Nonspendable - - - 3,479,720
Restricted 9,853,914 2,767 90,510,849 144,002,497
Committed - - 34,946,498 52,889,651
Assigned 848,566 - - 28,477,254
Unassigned - - (31,089) 5,396,702
Total Fund Balances 10,702,480 2,767 125,426,258 234,245,824 $ 10,708,261 $ 14,684,994 $ 136,256,470 $ 265,341,750
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Major Funds
95 32
96 33
The accompanying notes are an integral part of these financial statements.

Total Fund Balances - Governmental Funds $234,245,824
CAPITAL ASSET TRANSACTIONS:

Capital Assets: In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital Assets at Historical Cost $484,041,495
Accumulated Depreciation (145,557,748) 338,483,747

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet services, compensated absences, and information services, to individual governmental and proprietary funds. The net current assets and current liabilities of the internal service funds are included in governmental activities in the statement of net position. 36,739,214

LONG-TERM LIABILITIES
Long-term Liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported.

Long-term liabilities relating to governmental activities consist of:

Certificates of Participation (9,427,906)

DEFERRED INFLOWS / (OUTFLOWS) OF RESOURCES
Deferred Inflows of Resources: In governmental funds, future payments for notes receivable are treated as deferred inflows of resources. In government-wide statements, future payments of notes receivable are recorded as an offset of notes receivable. 6,875,525 GASB 68 Pension Items (89,380,858)
Total Net Position - Governmental Activities $517,535,546

CITY OF VISALIA

RECONCILIATION OF GOVERNMENTAL FUNDS - FUND BALANCE

WITH GOVERNMENTAL NET POSITION
JUNE 30, 2021
97 34
The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
General
Fund
Measure N -
Special Revenue
Fund
Housing &
Community
Grants - Special
Revenue Fund

REVENUES
Sales Taxes $ 38,986,517 $ 16,880,055 $ -
Property Taxes 27,884,766 - -
Other Taxes 9,207,528 - -
Subventions and Grants 2,206,694 29,556 3,217,871
License and Permits 52,650 - -
Fees and Fines 1,004,615 - 13,426
Uses of Money and Property 802,238 93,272 70,549
Charges for Current Services 2,774,284 58,369 5,000
Miscellaneous 1,343,028 50,952 5,720
Total Revenues 84,262,320 17,112,204 3,312,566

EXPENDITURES
Current:

General Government 4,224,686 219,236 -
Community Development 2,459,045 - 75,606
Housing & Community Grants - - 2,268,707
Public Safety:

Fire 14,939,536 978,595 -
Police 34,129,014 4,293,747 -
Public Works 3,861,360 - -
Community Services 6,018,543 461,573 -
Capital Outlay 1,624,975 4,806,242 36,615
Debt Service (Note 7):

Principal - - -
Interest and Fiscal Charges - - -
Total Expenditures 67,257,159 10,759,393 2,380,928
Excess (Deficiency) of
Revenues over (Under) Expenditures 17,005,161 6,352,811 931,638 Other Financing Sources (Uses)
Sale of Land - - -
Proceeds From Sale of Capital Assets 3,450 - -
Transfers In (Note 4A) 148,524 - 23,966
Transfers Out (Note 4A) (16,703,167) - -
Total Other Financing Sources (Uses) (16,551,193) - 23,966 Net Change in Fund Balances 453,968 6,352,811 955,604
Fund Balances - Beginning of Year 52,691,729 23,320,803 1,641,875 Prior Period Adjustment (Note 14) - - 12,697,529
Fund Balances - Beginning of Year, as Restated 52,691,729 23,320,803 14,339,404 Fund Balances - End of Year $ 53,145,697 $ 29,673,614 $ 15,295,008 Major Funds
98 35
The accompanying notes are an integral part of these financial statements.

Non-Major Funds
Housing
Successor
Agency - Special
Revenue Fund
American
Rescue Plan -
Special Revenue
Fund
All Other
Governmental
Funds Total

REVENUES
Sales Taxes $ - $ - $ 15,059,629 $ 70,926,201
Property Taxes - - - 27,884,766
Other Taxes - - 82,252 9,289,780
Subventions and Grants 424,130 - 11,987,031 17,865,282
License and Permits - - 20,382 73,032
Fees and Fines - - 13,246,361 14,264,402
Uses of Money and Property 110,504 2,767 399,722 1,479,052 Charges for Current Services - - 5,278,788 8,116,441
Miscellaneous 195 - 354,388 1,754,283
Total Revenues 534,829 2,767 46,428,553 151,653,239

EXPENDITURES
Current:

General Government 141,469 - 24,611 4,610,002
Community Development - - 17,499 2,552,150
Housing & Community Grants - - - 2,268,707
Public Safety:

Fire - - 2,759,398 18,677,529
Police - - 3,997,494 42,420,255
Public Works - - 1,443,604 5,304,964
Community Services - - 3,256,145 9,736,261
Capital Outlay - - 12,829,740 19,297,572
Debt Service (Note 7):

Principal - - 882,304 882,304
Interest and Fiscal Charges - - 397,328 397,328
Total Expenditures 141,469 - 25,608,123 106,147,072
Excess (Deficiency) of
Revenues over (Under) Expenditures 393,360 2,767 20,820,430 45,506,167 Other Financing Sources (Uses)
Sale of Land - - 1,027,945 1,027,945
Proceeds From Sale of Capital Assets - - - 3,450
Transfers In (Note 4A) - - 13,527,438 13,699,928
Transfers Out (Note 4A) - - (994,189) (17,697,356)
Total Other Financing Sources (Uses) - - 13,561,194 (2,966,033) Net Change in Fund Balances 393,360 2,767 34,381,624 42,540,134 Fund Balances - Beginning of Year 2,032,519 - 91,044,634 170,731,560 Prior Period Adjustment (Note 14) 8,276,601 - - 20,974,130 Fund Balances - Beginning of Year, as Restated 10,309,120 - 91,044,634 191,705,690 Fund Balances - End of Year $ 10,702,480 $ 2,767 $ 125,426,258 $ 234,245,824 Major Funds
99 36
100
37 The accompanying notes are an integral part of these financial statements.

Total Net Changes in Fund Balances - Governmental Funds $ 42,540,134 CAPITAL OUTLAY: In governmental funds, the cost of capital assets are reported as expenditures. In the statement of activities, costs of those assets are allocated over their estimated useful lives as depreciation expense. The difference between capital outlay expenditures and depreciation expense for the period is:

Expenditures for Capital Outlay $ 18,801,118
Net Retirements of Capital Assets (894,469)
Depreciation Expense (9,618,595) 8,288,054
DEBT SERVICE: In governmental funds, repayments of long-term debt are reported as expenditures. In the government-wide statements, repayments of long-term debt are reported as reduction of liabilities. Expenditures for repayment of the principal portion of the long-term debt were:

Principal Payment of Long-Term Debt 882,304
In governmental funds, principal repayments for notes and loans receivable are recognized as revenue. In government-wide statements, principal repayments of notes and loans receivable are recorded as reduction of notes receivable. Change in unavailable revenue relating to notes and loans receivable: 225,944 Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet services, compensated absences, and information services, to individual governmental and proprietary funds. The portion of the net revenue (expense) of these internal allocations to governmental activities was: 1,523,066 Pension Related Expenses (3,399,463)
Total Change in Net Position - Governmental Activities $ 50,060,039

CITY OF VISALIA

RECONCILIATION OF THE NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

WITH THE CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2021
101
38 102
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 39 Major Proprietary Funds

MAJOR AND NON-MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to private business enterprises. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City has identified the funds below as major proprietary funds in fiscal year 2020-21.

WATER RECLAMATION FACILITY
Established to account for the collection and treatment of wastewater. Revenue is provided by user charges and impact fees as well as limited grant funding. Formerly known as Wastewater Fund.

STORM SEWER MAINTENANCE
Established to account for the operations of the City’s storm and sewer drain activity. Revenue is provided by user charges and impact fees as well as limited grant funding.

SOLID WASTE
Established to account for the operations of collecting and disposing of solid waste and street sweeping activities. Revenues are provided by user charges and limited grant funding.

TRANSIT
Established to account for the operations of the City’s transit activities. Revenue is provided by state transportation funds, federal grants, and passenger fares.

The City has identified the funds below as non-major proprietary funds in fiscal year 2020-21.

CONVENTION CENTER
Established to account for operations of the Convention Center. Revenues are provided by fees charged for the Convention Center and by operating transfers from the General Fund.

AIRPORT
Established to account for the operations of the Visalia Municipal Airport. Revenue is provided by the fees charged to the airport users for the aviation fuel, hangar rentals, and leases of land and buildings, as well as from federal grants for capital assets and projects.

BUILDING SAFETY
Established to account for the operations of the City’s reviewing and checking of building plans from developers, contractors and/or property owners, permitting, and inspection of buildings. Revenue is provided by permit fees.

ANIMAL CONTROL
Established to account for the operations of the City’s animal control services. Revenue is provided by users through fees for licensing, adoptions, vaccinations and shelter related fees.

BASEBALL
Established to account for the operations of a professional baseball team that operates in the City. 103
40 The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021
Non-Major Fund
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
Convention
Center
ASSETS
Current Assets
Cash and Investments (Note 3) $ 82,717,682 $ 869,748 $ 28,274,501 $ 35,141,450 $ 457 Accounts Receivable 3,023,026 154,939 2,201,612 294,588 54,729 Taxes Receivable 110,011 63,963 125,227 - -
Note and Loans Receivable (Note 5) 159,496 - - - -
Supplies - - - - -
Inventory (Note 1I) 20,053 20,766 - - -
Due from Other Governmental Units - - 1,638,243 10,276,267 - Prepaid Expenses - - - - -
Total Current Assets 86,030,268 1,109,416 32,239,583 45,712,305 55,186 Non-Current Assets
Restricted Cash and Investments (Note 3) 4,365,228 - - - 250,002 Capital Assets (Note 6)
Land 6,952,363 9,437,692 1,567,372 4,361,902 829,047
Construction in Progress 1,554,176 1,198,298 1,168,101 350,952 52,661 Buildings 2,937,862 - 197,130 19,589,783 22,428,375
Improvements Other Than Buildings 206,212,352 2,546,130 981,520 2,602,376 5,435,369 Machinery, Equipment and Vehicles 9,547,544 1,136,411 25,554,082 35,653,901 1,844,596 Infrastructure 92,140,717 60,219,746 - - -
Accumulated Depreciation (78,656,570) (14,720,404) (15,610,250) (30,040,029) (18,779,688) Total Non-Current Assets 245,053,672 59,817,873 13,857,955 32,518,885 12,060,362 Total Assets 331,083,940 60,927,289 46,097,538 78,231,190 12,115,548

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 1,093,111 137,983 1,355,290 308,589 573,090 Total Deferred Outflows of Resources 1,093,111 137,983 1,355,290 308,589 573,090

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 2,429,188 49,518 572,510 1,720,193 187,512 Advances from Grantors and Third Parties - - - 2,506,020 - Accrued Personnel Costs - - - - -
Customer Deposits 578,088 - - - 5,650
Current Portion of Long-Term Obligations (Note 7):

Compensated Absences 84,173 - 42,817 - 23,533
Certificates of Participation and Loans 2,490,645 - - - 838,402 Liability for Self-insured Claims (Note 11) - - - - -
Total Current Liabilities 5,582,094 49,518 615,327 4,226,213 1,055,097 Non-Current Liabilities
Advance from Other Funds (Note 4B) - - - - -
Unearned Revenue 179,549 20,766 - - -
Non-current Portion of Long-term Obligations (Note 7):

Compensated Absences 181,503 20,946 406,525 46,393 35,863 Certificates of Participation and Loans 86,775,191 - - - 5,469,869 Liability for Self-insured Claims (Note 11) - - - - -
Net Pension Liability (Note 10) 8,232,349 1,033,762 10,269,551 2,245,631 3,898,633 Total Non-Current Liabilities 95,368,592 1,075,474 10,676,076 2,292,024 9,404,365 Total Liabilities 100,950,686 1,124,992 11,291,403 6,518,237 10,459,462

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 135,906 16,562 160,800 42,541 103,787 Total Deferred Inflows of Resources 135,906 16,562 160,800 42,541 103,787 NET POSITION (Note 9)
Net Investment in Capital Assets 151,422,608 59,817,873 13,857,955 32,518,885 5,502,089 Restricted for:

Debt Service 4,365,228 - - - 2
Capital Projects 822,805 90,107 3,373,217 3,815,525 250,000 Unrestricted 74,479,818 15,738 18,769,453 35,644,591 (3,626,702) Total Net Position $ 231,090,459 $ 59,923,718 $ 36,000,625 $ 71,979,001 $ 2,125,389 Adjustments to Reflect the Consolidation of Internal Service Business-Type Activities - Enterprise Funds
Major Funds
104
41 The accompanying notes are an integral part of these financial statements.

Airport
Building
Safety
Animal
Control Baseball Total
Governmental
Activities
Internal
Service Funds
ASSETS
Current Assets
Cash and Investments (Note 3) $ 350 $ 11,363,392 $ 475,997 $ - $ 158,843,577 $ 35,293,854 Accounts Receivable 54,302 368 300,763 - 6,084,327 9,329 Taxes Receivable - - - - 299,201 -
Note and Loans Receivable (Note 5) - - - - 159,496 -
Supplies 43,317 - - - 43,317 1,138,767
Inventory (Note 1I) - - - - 40,819 -
Due from Other Governmental Units - - - - 11,914,510 -
Prepaid Expenses 13,416 - - - 13,416 1,003,296
Total Current Assets 111,385 11,363,760 776,760 - 177,398,663 37,445,246 Non-Current Assets
Restricted Cash and Investments (Note 3) - - - - 4,615,230 - Capital Assets (Note 6)
Land 3,000,590 - - - 26,148,966 -
Construction in Progress 4,212,063 - - - 8,536,251 -
Buildings 2,163,061 - 6,750,891 - 54,067,102 654,910
Improvements Other Than Buildings 13,511,504 - - 151,472 231,440,723 218,785 Machinery, Equipment and Vehicles 1,093,596 296,067 33,750 613,053 75,773,000 34,181,939 Infrastructure - - - - 152,360,463 -
Accumulated Depreciation (12,266,660) (128,879) (1,021,774) (152,619) (171,376,873) (22,315,230) Total Non-Current Assets 11,714,154 167,188 5,762,867 611,906 381,564,862 12,740,404 Total Assets 11,825,539 11,530,948 6,539,627 611,906 558,963,525 50,185,650

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 127,714 602,921 230,857 - 4,429,555 - Total Deferred Outflows of Resources 127,714 602,921 230,857 - 4,429,555 -

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 167,840 1,007,612 38,312 41,005 6,213,690 397,409 Advances from Grantors and Third Parties - - - - 2,506,020 - Accrued Personnel Costs - - - - - 32,858
Customer Deposits - 137,868 480 - 722,086 -
Current Portion of Long-Term Obligations (Note 7):

Compensated Absences 18,642 440 9,018 - 178,623 1,231,281 Certificates of Participation and Loans - - 450,377 - 3,779,424 - Liability for Self-insured Claims (Note 11) - - - - - 1,614,142 Total Current Liabilities 186,482 1,145,920 498,187 41,005 13,399,843 3,275,690 Non-Current Liabilities
Advance from Other Funds (Note 4B) 1,367,284 - - - 1,367,284 - Unearned Revenue - 28,669 - - 228,984 -
Non-current Portion of Long-term Obligations (Note 7):

Compensated Absences 30,402 136,801 35,527 - 893,960 4,587,327 Certificates of Participation and Loans - - 3,051,137 - 95,296,197 - Liability for Self-insured Claims (Note 11) - - - - - 7,214,758 Net Pension Liability (Note 10) 950,457 4,568,950 1,773,846 - 32,973,179 - Total Non-Current Liabilities 2,348,143 4,734,420 4,860,510 - 130,759,604 11,802,085 Total Liabilities 2,534,625 5,880,340 5,358,697 41,005 144,159,447 15,077,775

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 16,387 72,976 26,300 - 575,259 - Total Deferred Inflows of Resources 16,387 72,976 26,300 - 575,259 - NET POSITION (Note 9)
Net Investment in Capital Assets 11,714,154 167,188 2,261,353 611,906 277,874,011 12,740,404 Restricted for:

Debt Service - - - - 4,365,230 -
Capital Projects 170,064 - - - 8,521,718 1,089,279
Unrestricted (2,481,977) 6,013,365 (875,866) (41,005) 127,897,415 21,278,192 Total Net Position $ 9,402,241 $ 6,180,553 $ 1,385,487 $ 570,901 418,658,374 $ 35,107,875 Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (1,631,339) Net Position of Business-Type Activities $ 417,027,035
Business-Type Activities - Enterprise Funds
Non-Major Funds
105
42 The accompanying notes are an integral part of these financial statements.

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

CITY OF VISALIA

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Non-Major Fund
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
Convention
Center

OPERATING REVENUES
Charges for Services $ 26,428,859 $ 1,314,967 $ 20,564,277 $ 3,622,684 $ 504,756 Operating Grants and Contributions 112,741 5,374 100,575 15,130,689 15,024 Total Operating Revenues 26,541,600 1,320,341 20,664,852 18,753,373 519,780

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 4,325,270 641,778 6,356,588 991,232 680,739 Maintenance and Operations 11,022,665 1,405,629 11,733,025 13,527,305 642,954 Insurance Premiums and Loss Provisions - - - - -
Depreciation and Amortization 5,484,508 811,401 933,376 2,720,394 748,728 Total Operating Expenses 20,832,443 2,858,808 19,022,989 17,238,931 2,072,421 Operating Income (Loss) 5,709,157 (1,538,467) 1,641,863 1,514,442 (1,552,641)

NONOPERATING REVENUES (EXPENSES)
Interest Income 344,850 3,755 139,310 142,875 8
Interest Expense (1,883,284) - - - (285,608)
Other Income 904,143 62,636 486,717 12,379 109,537
Other Expenses - - (165,317) (22,267) -
Total Nonoperating Revenues (Expenses) (634,291) 66,391 460,710 132,987 (176,063) Income (Loss) Before Contributions and Transfers 5,074,866 (1,472,076) 2,102,573 1,647,429 (1,728,704) Capital Grants and Contributions 1,403,790 3,224,892 1,979,070 3,302,344 - Transfers In (Note 4A) - 300,000 - - 2,030,537
Transfers Out (Note 4A) - - - - -
Net Contributions and Transfers 1,403,790 3,524,892 1,979,070 3,302,344 2,030,537 Change in Net Position 6,478,656 2,052,816 4,081,643 4,949,773 301,833 Net Position - Beginning 224,611,803 57,870,902 31,918,982 67,029,228 1,823,556 Net Position - Ending $ 231,090,459 $ 59,923,718 $ 36,000,625 $ 71,979,001 $ 2,125,389 Major Funds
Business-Type Activities - Enterprise Funds
106
43 The accompanying notes are an integral part of these financial statements.

Airport
Building
Safety
Animal
Control Baseball Total
Governmental
Activities
Internal
Service Funds

OPERATING REVENUES
Charges for Services $ 1,775,224 $ 4,934,104 $ 646,574 $ - $ 59,791,445 $ 29,165,164 Operating Grants and Contributions 9,120 25,863 55,659 - 15,455,045 - Total Operating Revenues 1,784,344 4,959,967 702,233 - 75,246,490 29,165,164

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 497,232 2,300,569 1,055,511 - 16,848,919 3,135,623 Maintenance and Operations 2,265,641 1,091,874 565,166 153,503 42,407,762 5,994,641 Insurance Premiums and Loss Provisions - - - - - 18,162,990 Depreciation and Amortization 324,488 16,562 171,982 89,515 11,300,954 2,179,513 Total Operating Expenses 3,087,361 3,409,005 1,792,659 243,018 70,557,635 29,472,767 Operating Income (Loss) (1,303,017) 1,550,962 (1,090,426) (243,018) 4,688,855 (307,603)

NONOPERATING REVENUES (EXPENSES)
Interest Income 1 40,740 1,905 6 673,450 120,857
Interest Expense (40,355) - (132,096) - (2,341,343) (3,169) Other Income 285,756 3,614 455 - 1,865,237 1,368,896
Other Expenses (283) (223) - - (188,090) (25,598)
Total Nonoperating Revenues (Expenses) 245,119 44,131 (129,736) 6 9,254 1,460,986 Income (Loss) Before Contributions and Transfers (1,057,898) 1,595,093 (1,220,162) (243,012) 4,698,109 1,153,383 Capital Grants and Contributions 2,182,755 - - - 12,092,851 346,449 Transfers In (Note 4A) - - 1,426,899 260,971 4,018,407 - Transfers Out (Note 4A) - - - - - (20,979)
Net Contributions and Transfers 2,182,755 - 1,426,899 260,971 16,111,258 325,470 Change in Net Position 1,124,857 1,595,093 206,737 17,959 20,809,367 1,478,853 Net Position - Beginning 8,277,384 4,585,460 1,178,750 552,942 33,629,022 Net Position - Ending $ 9,402,241 $ 6,180,553 $ 1,385,487 $ 570,901 $ 35,107,875 Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (44,213)
Change in Net Position of Business-Type Activities $ 20,765,154 Non-Major Funds
Business-Type Activities - Enterprise Funds
107
44 CITY OF VISALIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of these financial statements.

Non-Major Fund
Water
Reclamation
Facility
Storm Sew er
Maintenance Solid Waste Transit
Convention
Center

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds $ 26,744,821 $ 1,297,386 $ 20,022,481 $ 8,640,802 $ 505,104 Cash Payments to Employees for Services (4,021,247) (598,240) (5,968,495) (922,369) (798,998) Cash Payments to Suppliers for Services (9,960,440) (882,058) (10,590,604) (15,524,917) (500,592) Cash Received from (Payments to) Other Governments 20,062 - (577,644) 13,752,674 - Other Income 861,060 62,636 486,717 12,379 109,537
Other Payments (1,096,142) (521,821) (1,185,128) (498,150) (14,711) Net Cash Provided (Used) by Operating Activities 12,548,114 (642,097) 2,187,327 5,460,419 (699,660)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Advance (to) from Other Funds (48,003) - (34,023) (1,262,605) - Transfers In - 300,000 - - 2,094,867
Transfers (Out) - - - - -
Net Cash Provided (Used) by Noncapital
Financing Activities (48,003) 300,000 (34,023) (1,262,605) 2,094,867

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital Payments (2,265,875) (3,400,152) (6,802,503) (208,977) (11,293) Capital Grants Received - - - 3,302,344 -
Contributions 1,403,790 3,224,892 1,979,070 - -
Long-Term Debt Payments - Principal (2,439,417) - - - (802,696) Long-Term Debt Payments - Interest (1,883,284) - - - (341,058) Net Cash Provided (Used) by Capital and Related
Financing Activities (5,184,786) (175,260) (4,823,433) 3,093,367 (1,155,047)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 344,850 3,755 139,310 142,875 8
Net Cash Provided by Investing Activities 344,850 3,755 139,310 142,875 8 Net Increase (Decrease) in Cash
and Investments 7,660,175 (513,602) (2,530,819) 7,434,056 240,168 Cash and Investments - Beginning of Year 79,422,735 1,383,350 30,805,320 27,707,394 10,291 Cash and Investments - End of Year $ 87,082,910 $ 869,748 $ 28,274,501 $ 35,141,450 $ 250,459 Consisting of:

Unrestricted $ 82,717,682 $ 869,748 $ 28,274,501 $ 35,141,450 $ 457 Restricted 4,365,228 - - - 250,002
Total Cash and Investments $ 87,082,910 $ 869,748 $ 28,274,501 $ 35,141,450 $ 250,459 Business-Type Activities - Enterprise Funds
Major Funds
108
45 The accompanying notes are an integral part of these financial statements.

Non-Major Fund
Water
Reclamation Storm Sew er Solid Convention
Facility Maintenance Waste Transit Center
Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) $ 6,848,382 $ (1,016,646) $ 2,661,674 $ 1,990,325 $ (1,602,260) Other Income 861,060 62,636 486,717 12,379 109,537
Other Payments (1,096,142) (521,821) (1,185,128) (498,150) (14,711) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 5,484,508 811,401 933,376 2,720,394 748,728 Net Change in Assets and Liabilities:

Accounts and Interest Receivable 203,221 (22,955) (663,634) (58,401) (14,676) Taxes Receivable 20,062 - 21,263 (10,054,170) -
Supplies - - - - -
Due from Other Governments - - (577,644) 13,752,674 -
Prepaid Expenses - - - - -
Accounts and Contracts Payable (113,452) 1,750 122,610 (2,473,495) 127,652 Deferred Outflow s Pensions (96,000) (13,001) (128,189) (22,907) 10,222 Deferred Inflow s Pensions 68,726 9,307 91,770 16,399 (14,278) Unearned Revenue 48,003 - - -
Accrued Personnel Costs - - - - -
Compensated Absences 22,187 5,370 11,756 1,612 (95,849) Other Liability 309,110 41,862 412,756 73,759 45,975
Liability for Self-Insurance Claims - - - - -
Customer Deposits (11,551) - - - -
Net Cash Provided (Used) by Operating Activities $ 12,548,114 $ (642,097) $ 2,187,327 $ 5,460,419 $ (699,660) Major Funds
Business-Type Activities - Enterprise Funds
109
46 CITY OF VISALIA
STATEMENT OF CASH FLOWS (Continued)

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Airport Building Safety Animal Control Baseball Total
ct t es
Internal
Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds $ 1,765,871 $ 4,966,330 $ 687,331 $ 4,443 $ 64,634,569 $ 29,501,074 Cash Payments to Employees for Services (462,335) (2,135,884) (989,749) - (15,897,317) (3,135,623) Cash Payments to Suppliers for Services (1,283,552) (1,055,231) (541,747) (262,338) (40,601,479) (22,573,667) Cash Received from (Payments to) Other Governments 191,396 - - - 13,386,488 - Other Income 275,506 2,105 455 - 1,810,395 1,368,896
Other Payments (1,344,755) (82,285) (10,519) (7,826) (4,761,337) (124,412) Net Cash Provided (Used) by Operating Activities (857,869) 1,695,035 (854,229) (265,721) 18,571,319 5,036,268

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Advance (to) from Other Funds 423,126 - - - (921,505) - Transfers In - - 1,426,899 260,971 4,082,737 -
Transfers (Out) (40,355) - - - (40,355) (20,979)
Net Cash Provided (Used) by Noncapital
Financing Activities 382,771 - 1,426,899 260,971 3,120,877 (20,979)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital Payments (1,707,658) (50,092) - (10,518) (14,457,068) (674,175) Capital Grants Received 2,182,755 - - - 5,485,099 -
Contributions - - - - 6,607,752 346,449
Long-Term Debt Payments - Principal - - (435,232) - (3,677,345) - Long-Term Debt Payments - Interest - - (132,096) - (2,356,438) - Net Cash Provided (Used) by Capital and Related
Financing Activities 475,097 (50,092) (567,328) (10,518) (8,398,000) (327,726)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 1 40,740 1,905 6 673,450 117,688
Net Cash Provided by Investing Activities 1 40,740 1,905 6 673,450 117,688 Net Increase (Decrease) in Cash
and Investments - 1,685,683 7,247 (15,262) 13,967,646 4,805,251 Cash and Investments - Beginning of Year 350 9,677,709 468,750 15,262 149,491,161 30,488,603 Cash and Investments - End of Year $ 350 $ 11,363,392 $ 475,997 $ - $163,458,807 $ 35,293,854 Consisting of:

Unrestricted $ 350 $ 11,363,392 $ 475,997 $ - $158,843,577 $ 35,293,854 Restricted - - - - 4,615,230 -
Total Cash and Investments $ 350 $ 11,363,392 $ 475,997 $ - $163,458,807 $ 35,293,854 Business-Type Activities - Enterprise Funds
Non-Major Funds
110
47 The accompanying notes are an integral part of these financial statements.

Governmental Activities
Internal
Service
Airport Building Safety Animal Control Baseball Total Funds Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) $ 51,705 $ 1,634,533 $ (1,079,907) $ (235,192) $ 9,252,614 $ (179,726) Other Income 275,506 2,105 455 - 1,810,395 1,368,896
Other Payments (1,344,755) (82,285) (10,519) (7,826) (4,761,337) (124,412) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 324,488 16,562 171,982 89,515 11,300,954 2,179,513 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (18,473) 6,363 (14,902) 4,443 (579,014) (2,690) Taxes Receivable - - - - (10,012,845) -
Supplies (757) - - - (757) (208,378)
Due from Other Governments 191,396 - - - 13,366,426 -
Prepaid Expenses 1,778 - - - 1,778 (42,410)
Accounts and Contracts Payable (373,654) (37,866) 12,700 (116,661) (2,850,416) 71,720 Deferred Outflow s Pensions 7,687 (55,100) (22,860) - (320,148) - Deferred Inflow s Pensions (10,738) 39,446 16,365 - 216,997 - Unearned Revenue - 3,070 - - 51,073 -
Accrued Personnel Costs - - - - - 25,693
Compensated Absences 3,372 2,923 (1,350) - (49,979) 338,600 Other Liability 34,576 177,416 73,607 - 1,169,061 -
Liability for Self-Insurance Claims - - - - - 1,609,462 Customer Deposits - (12,132) 200 - (23,483) -
Net Cash Provided (Used) by Operating Activities $ (857,869) $ 1,695,035 $ (854,229) $ (265,721) $ 18,571,319 $ 5,036,268 Non-Major Funds
Business-Type Activities - Enterprise Funds
111
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 48 Fiduciary Funds

FIDUCIARY FUNDS
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.

The Fiduciary Funds include the following Custodial Funds:

Property and Business Improvement District #5 (PBID)
The City collects the district’s assessments on real property in the district to improve the district. The effective dates for the district are January 1, 2020 through December 31, 2029.

Village West Improvement District
The City collects the district’s assessments on real property in the district to repay bonds for the repair of a private street.

Orchard Walk Underground Utilities District
The City collects the district’s assessments on real property in the district to pay for underground utilities.

Atwood Water Main Assessment District
The City collects the district’s assessments on real property in the district to repay bonds for connection to the Cal Water main extension.

Laura Water Main Assessment District
The City collects the district’s assessments on real property in the district to repay bonds for connection to the Cal Water main extension.

Visalia Tourism & Marketing District (VTMD)
The City collects the district’s assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia.

The Fiduciary Funds also include the following Private Purpose Trust Fund:

Successor Agency
The Successor Agency is responsible for the wind down of the affairs of the dissolved Redevelopment Agency of the City of Visalia (RDA). It is responsible for fulfilling the obligations of the former RDA and is also responsible for revenue collection, maintaining bond reserves, and disposing of excess property. The Successor Agency is overseen by an oversight board which is comprised primarily of representatives of other affected taxing agencies and the City.
112
49 The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
ASSETS
Cash and Investments (Note 3) $ 354,989 $ 283,647
Restricted Cash and Investments (Note 3) - 489,072
Accounts Receivable 172,568 -
District Assesment Receivable 116,734 -
Notes and Loan Receivable (Note 5) - 146,543
Land Held For Resale - 2,824,503
Total Assets 644,291 3,743,765

LIABILITIES
Accounts, Interest, and Contracts Payable 145,238 48,238 Deposits 43,124 -
Due to City 111,704 -
Long - Term Obligations (Note 7):

Due Within One Year - 322,506
Due in More Than One Year - 15,385,689
Total Liabilities 300,066 15,756,433

NET POSITION
Restricted for:

Held in Trust - (12,012,668)
Individuals, Organizations, and Other Governments 344,225 - Total Net Position $ 344,225 $ (12,012,668)
113
50 The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
Additions
Property Taxes $ - $ 706,697
Use of Money and Property 2,185 25,806
Revenue from District Assessments 987,279 -
Miscellaneous Revenue 284,834 1,815
Total Additions 1,274,298 734,318
Deductions
Obligation Requirements
Interest on Bonds and Notes Payable 27,630 469,048
Total Obligation Requirements 27,630 469,048
Administrative Expenses 10,919 45,660
Total Administrative Expenses 10,919 45,660
Distribution of District Assessment 1,183,240 -
Total Distribution of District Assessment 1,183,240 -
Total Deductions 1,221,789 514,708
Change in Net Position 52,509 219,610
Net Position - Beginning of Year, as Restated (Note 14) 291,716 (12,232,278) Net Position - End of Year $ 344,225 $ (12,012,668)
114
51 NOTES TO THE

FINANCIAL

STATEMENTS
115
52 116
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 53 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Visalia (“the City”) was founded in 1852 and incorporated in 1874. It became a charter city in 1923. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, wastewater, solid waste, transit, street sweeping, airport facilities, culturerecreation, public improvements, planning and zoning, general administration services, and redevelopment.

The financial statements and accounting policies of the City conform with generally accepted accounting principles in the United States of America applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

Significant accounting policies are summarized below.

A. Reporting Entity
As required by generally accepted accounting principles in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are combined with data of the primary government. Each component unit has a June 30 year-end. The blended component unit included in the City’s financial statements is identified below with a brief explanation of the reason for its inclusion.

The Visalia Public Finance Authority (VPFA) was established pursuant to a joint exercise of powers dated February 1991, by and between the City and the Visalia Community Redevelopment Agency. The VPFA has the power to issue bonds to pay the cost of any public capital improvements. The VPFA is controlled by the City and has the same governing body as the City, which also performs accounting and administrative functions for the VPFA. The financial activities of the VPFA are included in the 2014 Refunding Certificates of Participation Debt Service Fund and the Convention Center Enterprise Fund.

Financial statements or financial information for the above component unit may be obtained from the City of Visalia at 707 West Acequia, Visalia, California 93291.

The financial statements exclude the following:

On June 2, 2003, the Visalia Civic Facilities Authority (VCFA) joint powers agreement was established by the City and the Visalia Unified School District (VUSD). The VCFA has the authority to issue bonds, incur indebtedness, and enter into agreements to acquire real property. The VCFA is administered by the Board of Directors, which consists of four members, two from the City Council and two from the VUSD. The VCFA is not a component unit of the City.

The Downtown Improvement District was incorporated under the Nonprofit Public Benefit Corporation Law of the State of California for the purpose of making improvements in the City’s downtown area. The City collects the district’s assessment revenue on behalf of the district. The district has the sole discretion on how revenues are to be spent. A twenty-one member Board, comprised of mainly downtown land and business owners, governs the district. A Council member is a sitting member of the Board. The district is accounted for in the Property and Business Improvement District Agency Funds. The district is not a component unit of the City.

The Village West Assessment District was established to collect the district’s assessments on real property in the district to repay bonds for the repair of a private street.

The Orchard Walk Underground Utilities District was established to collect assessments on real property in the district to repay bonds for underground utilities.
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 54 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Reporting Entity (Continued)
The Atwood Assessment District was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions.

The Laura Assessment District was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions.

The Visalia Tourism & Marketing District was established to collect assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia.

The Visalia Redevelopment Successor Agency (Successor Agency) accounts for assets transferred from the former redevelopment agency (RDA) which was dissolved as of January 31, 2012. The sole purpose of this fund is to retire debt of the former RDA.

B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with generally accepted accounting principles in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.

The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments; No. 54, Fund Balance Reporting and Governmental Fund Type Definitions; No. 36, Recipient Reporting for Certain Non-exchange Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments; Omnibus; and No. 38, Certain Financial Statement Note Disclosures.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City and its component unit). These statements include the financial activities of the overall City government, except for fiduciary activities. Certain eliminations have been made as prescribed by GASB statement No. 34 to minimize the double counting of internal activities in regards to inter-fund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.

The following inter-fund activities have been eliminated:
· Due to/from other funds
· Advances to/from other funds
· Transfers in/out
These statements distinguish between the governmental and business-type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 55 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients for goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City’s funds, including fiduciary funds and the blended component unit. Separate statements for each fund category -governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

C. Major Funds
GASB Statement No. 34 defines major funds and requires that the City’s major governmental and business-type funds be identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund type.

Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund type total and five percent of the grand total. The General Fund is always a major fund.

The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds and their related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund. The General Fund includes the Emergency Reserve Fund.

Measure N is used to account for increased Police, Fire, Streets, and Parks essential services. Financing is provided by the ½ cent sales tax ballot measure (N) approved by voters during the November 8, 2016 election.

Housing & Community Grant Fund is used to account for the affordable housing and public service needs of the City’s low and moderate income households. Financing is provided by Community Development Block Grants (CDBG), the Home Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and fines charged for substandard housing and abandoned vehicle abatement. Also, within the CDBG, HOME and NSP programs, when money that was previously loaned out is paid back; it again becomes available for use in the rehabilitation and development programs.
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 56 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
Housing Successor Agency Fund accounts for assets transferred from the former low/mod redevelopment housing assets of the former Redevelopment Agency which was dissolved as of January 31, 2012. The use of these assets is for affordable housing as governed by redevelopment law before the dissolution. Revenue earned in this fund is derived from the receipt of payment on notes and loans receivable outstanding in the fund.

American Rescue Plan Act Fund
Established to track and account for American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines.

The City reported its enterprise funds as major and non-major funds in the accompanying financial statements.

Major funds include:

Water Reclamation Facility Fund is used to account for the collection, treatment and disposal of wastewater.

Revenue is provided by user charges and impact fees as well as limited grant funding. Formerly known as the Wastewater Fund.

Storm Sewer Maintenance Fund is used to account for the operations of the City’s storm and sewer drain activity. Revenue is provided by user charges and impact fees as well as limited grant funding.

Solid Waste Fund is used to account for the operations of collecting and disposing of solid waste and street sweeping activities. Revenues are provided by user charges and limited grant funding.

Transit Fund is used to account for the operations of the City’s transit activities. Revenue is provided by state transportation funds, federal grants, and passenger fares.

Non-major funds include:

Convention Center Fund is used to account for the operations of the Convention Center, revenues provided by fees charged for the Convention Center and by operating transfers from the General Fund.

Airport Fund is used to account for the operations of the Visalia Municipal Airport. Revenue is provided by the fees charged to the airport users for aviation fuel, hangar rentals and leases of land and buildings as well as from federal grants for capital assets and projects.

Building Safety Fund is used to account for the operations of the City’s plan checking, permitting, and inspection of buildings. Revenue is provided by permit fees.

Animal Control Fund is used to account for the operations of the City’s animal control services. Revenue is provided by users for animal licensing, vaccinations, adoptions and shelter related fees.

Baseball Fund is used to account for the operating and capital transfers from the General Fund for the baseball stadium located at Recreation Park, which is operated under contract by First Pitch Entertainment, LLC.

The City also reports the following fund types:

Internal Service Funds The funds account for fleet services, vehicle replacement, information services, risk management, health benefits, compensated absences, and building maintenance; all of which are provided to other departments on a cost-reimbursement basis.
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 57 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
Fiduciary Funds Custodial and Private Purpose Trust Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in separate Fiduciary Fund financial statements. Custodial Funds maintained by the City are the Property and Business Improvement District Funds, Village West Improvement District, Orchard Walk Underground Utilities District, Atwood Water Main Assessment District, Laura Water Main Assessment District, and the Visalia Tourism & Marketing District.

A Private Purpose Trust Fund maintained by the City is the Redevelopment Successor Agency.

D. Basis of Accounting
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. The Custodial funds have no measurement focus and are also reported using the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within ninety days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, 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 leases are reported as other financing sources.

Those revenues susceptible to accrual are federal and state grants and subventions, property taxes, sales taxes, franchise taxes, transient occupancy taxes, certain charges for services and interest revenue. Fines, licenses and permits, and charges for services are not susceptible to accrual because they are not measurable until received in cash.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and contributions. On the accrual basis of accounting, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City may fund programs with a combination of cost-reimbursement 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, followed by general revenues if necessary. Certain indirect costs are included in program expenses reported for individual functions, activities, and interest.

E. Property Tax
Tulare County (the County) assesses properties and it bills, collects, and distributes property taxes to the City.

The County remits the taxes periodically throughout the year, as they are paid, with the largest amounts in December and April of each year. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 58 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Property Tax (Continued)
Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the County. Delinquent property taxes are remitted by the County, to the City, periodically throughout the year as they are paid.

The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.

F. Compensated Absences
Compensated absences comprise unused vacation leave, vested sick pay and certain compensated time off, which are accrued as earned. An employee retiring with 10 years or more of continuous service with the City will be compensated for unused sick leave at 30% of its value on their retirement date. An employee resigning from the City in good standing with 20 years or more of continuous service with the City will be compensated for unused sick leave at 30% of its value on their resignation date. The City’s liability for compensated absences is recorded in Proprietary Funds and Internal Service Funds as appropriate. The liability for compensated absences is determined annually. Compensated absences are liquidated by the fund that has recorded the liability. The governmental activities compensated absences are liquidated by the Compensated Absences Internal Service Fund.

G. Land Held for Redevelopment
Land held for redevelopment is stated at the lower of historical cost or net realizable value, if estimable.

H. Capital Assets
Capital assets, in general, are those purchased or acquired with an original cost of $5,000 or more.

Infrastructure, Land, and technology equipment are included regardless of cost. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.

With the implementation of GASB Statement No. 34 during the 2002-03 fiscal year, the City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation is calculated using the straight-line method, which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the standard useful lives listed below to capital assets. Several asset categories have ranges for the useful lives to cover a wide range of assets that are listed in each asset class. The useful life will be consistent for each individual type of asset.

Buildings, storage buildings, and restrooms 10 - 50 years Improvements other than buildings 20 - 40 years
Infrastructure 40 – 100 years
Machinery, equipment, and vehicles 2 - 25 years
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Capital Assets (Continued)
The City of Visalia Capital Asset Capitalization Policy, which contains more detail concerning the standard useful lives of individual asset types within the categories listed above, may be obtained from the City of Visalia at 707 West Acequia, Visalia, California 93291.

Major outlays for capital assets and improvement 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.

Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. GASB Statement No. 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed.

I. Inventory
Inventory is comprised of nuts available for sale that the City has harvested and processed from City owned farm lands. This inventory is currently in storage. The method of valuation of the inventory was to take the number of pounds in storage as of June 30, 2021 and to multiply it by the average pool inventory value per pound, using level 2 inputs from Atlas World Food & Agriculture. As of June 30, 2021, nut inventory consisted of 21,272 pounds of walnuts valued at $76,500 and 65,238 pounds of pecans valued at $185,914, for a total value of $262,414. The Governmental funds account for $221,595 of the total value with $136,564 in the General Fund and $85,031 in the Groundwater Recharge Special Revenue fund. The Proprietary funds account for $40,819 of the total value with $20,053 in the Water Reclamation Facility fund and $20,766 in the Storm Sewer Maintenance Fund.

J. Fund Balance
In the Fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned. Each of these components of fund balance is classified based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

1. Nonspendable Fund Balance – amounts that are inherently nonspendable such as prepaids, inventory, supplies and the like.

2. Restricted Fund Balance – amounts that have externally enforceable limitations on use that are either imposed by law or constrained by grantors, contributors, or laws and regulations of other governments.

3. Committed Fund Balance – amounts that can only be used for specific purposes determined by resolution of the City’s highest level of decision-making authority, the City Council. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through a resolution. The resolution must occur prior to the end of the reporting period; however, the amount can be determined subsequently.

4. Assigned Fund Balance - amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance.

The intent can be expressed by the City Council itself or by an official to which the governing body has delegated the authority.
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Fund Balance (Continued)

5. Unassigned Fund Balance - the residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. This amount is reported only in the General Fund except in cases of negative fund balance. Negative fund balances in other governmental funds are reported as Unassigned Fund Balance.

The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution. Assignments may be established and modified by the City Council, City Manager, or Finance Director.

The accounting policies of the City consider restricted fund balance to have been spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. This Fund Balance policy was established by the City Council June 20, 2011.

K. Net Position
In governmental-wide and proprietary fund financial statements, net positions are categorized as follows:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first, then unrestricted net position as they are needed.

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 fair value hierarchy established by generally accepted accounting principles. The fair 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 value 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 within Level 1) that are observable for an asset or liability, either directly or indirectly. 124
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Fair Value Measurements (Continued)
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. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary 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 yearend are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities.

Outstanding encumbrances at year-end are automatically re-appropriated for the following year.

Unencumbered and unexpended appropriation lapse at year end except for capital which is rolled to the next fiscal year until project completion. Encumbrances outstanding as of June 30, 2021 were as listed below:

N. Implementation of Accounting Pronouncements
The following GASB Statements has been implemented in the current financial statements:

GASB Statement No. 84, Fiduciary Activities.

The objective of the Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has implemented this statement for the June 30, 2021 year end.

GASB Statement No. 90, Majority Equity Interests.

The primary objectives of this statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The provisions of this statement are effective for fiscal year 2020-21. There was no effect on the financial statements as a result of implementing this statement.

GASB Statement No. 93, Replacement of Interbank Offered Rates (IBOR) The objective of this statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The provisions of this statement are effective for fiscal year 2020-21. There was no effect on the financial statements as a result of implementing this statement.

Amount
General Fund $ 16,609,498
Measure N 1,205,672
Housing & Community Grants 127,983
Non-Major Governmental Funds 34,946,498
$ 52,889,651
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City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 62 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Implementation of Accounting Pronouncements (Continued) GASB Statement No. 98, The Annual Comprehensive Financial Report This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021.

O. Future GASB Pronouncements
The following GASB Statements will be implemented in future financial statements:

GASB Statement No. 87, Leases.

The objective of the Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The provisions of this statement are effective for fiscal year 2021-22. The City has elected not to implement GASB Statement No. 87 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period The objectives of this statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. The provisions of this statement are effective for fiscal year 2021-22. The City has elected not to implement GASB Statement No. 89 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 91, Conduit Debt Obligations
The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The provisions of this statement are effective for fiscal year 2022-23. The City has elected not to implement GASB Statement No. 91 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 92, Omnibus 2020
The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics. The provisions of this statement are effective for fiscal year 2021-22. The City has elected not to implement GASB Statement No. 92 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements The primary objective of this statement is to improve financial reporting by addressing issues related to publicprivate and public-public partnership arrangements (PPPs). The provisions of this statement are effective for 126
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Future GASB Pronouncements (Continued)
fiscal year 2022-23. The City has elected not to implement GASB Statement No. 94 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The provisions of this statement are effective for fiscal year 2022-23. The City has elected not to implement GASB Statement No. 96 early and has not determined its effects on the City’s financial statements.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The provisions of this statement are effective for fiscal year 2021-22; paragraphs 4 and 5 were effective in fiscal year 2019-20.

The City has elected not to implement GASB Statement No. 97 early (other than paragraphs 4 and 5) and has not determined its effects on the City’s financial statements.

P. New Funds

During fiscal year 2020-21, the City created the American Rescue Fund to account for federal funds received due to the passage of the American Rescue Plan Act. This fund is a major governmental fund.

NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
A. Budgetary Information
Annual budgets are legally required to be adopted by the City Council for all funds to provide for operations, debt service, and capital expenditures of the City. Special Revenue Fund revenues are budgeted by entitlements, subventions, and grants; expenditures and transfers are budgeted based upon available fund resources, which include amounts for encumbrances from prior periods. The City adopts an operating budget for the General Fund; all Special Revenue Funds; all Debt Service Funds and all Capital Projects Funds.

Budgetary controls are set by the City Council within State guidelines. The budgetary basis of accounting is consistent with accounting principles generally accepted in the United States of America applicable to the City’s financial statements.
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NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (Continued)
A. Budgetary Information (Continued)
The City Council adopts an operating budget at the beginning of the City’s fiscal year. The resolution approving the budget authorizes the City Manager to transfer appropriations within fund budgets including salary, capital accounts, and staffing levels provided that total appropriations are not increased. The legally adopted budget requires expenditures not to exceed total appropriations in each fund. Therefore, budget control is at the fund level, and resides with the Department Head responsible for that fund. The City Council is required to intervene to increase or decrease the adopted budget. Also, City Council approval is required to spend reserves from any fund.

The City adopts a two-year budget. The operating and capital expenditures have two mid-year reviews in each March and one mid-cycle review in June. The City Council is authorized to make appropriation adjustments to the budget during the year as deemed necessary.

B. Excess of Expenditures
The expenditures of the funds below exceeded their appropriated expenditures as follows. However, sufficient additional resources were available to fund these expenditures.

NOTE 3 - CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except Cash with Fiscal Agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.

Investments are carried at fair value.

The City’s cash and cash equivalents for statement of cash flows purposes are considered to be cash on hand, demand deposits, restricted cash, and investments held in a cash management investment pool.

Cash and investments as of June 30, 2021, are classified in the Statement of Net Position as follows:

Non-Major Funds:

Special Revenue Funds:

Northeast Area $ 84,794
Grant & Loan Funds 19,428
Golf Course 5,696
Oak Tree Preservation 13,301
Conservation 58
Capital Projects Funds:

Public Safety Impact Fee $ 1,897
Parking District 14,801
Facility Improvements 184
Civic Center 4,702
Sports Complex 136
Animal Control Reserve 59
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NOTE 3 - CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2021, consist of the following:

A. Investments Authorized by the California Government Code and the City of Visalia’s Investment Policy The table below identifies the investment types that are authorized for the City of Visalia by the California Government Code (or the City of Visalia’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City of Visalia’s investment policy, where 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 with the City of Visalia, rather than the general provisions of the California Government Code or the City of Visalia’s investment policy.

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Of Portfolio *
Maximum
Investment
In One Issuer
Credit
Risk
Local Agency Bonds 5 years None None None
U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Banker’s Acceptances 180 days 40% 30% None
Commercial Paper 270 days 25% 10% AAA/Aaa
Negotiable Certificates of Deposit 5 years 30% None None Repurchase Agreements 1 year 20% None None
Reverse Repurchase Agreements 92 days 20% of base value None None Medium-Term Notes 5 years 30% None A
Mutual Funds 5 years 20% 10% AAA/Aaa
Money Market Mutual Funds N/A 20% 10% AAA/Aaa
Mortgage Pass-Through Securities 5 years 20% None None
County Pooled Investment Funds N/A None None None
Managed Investment Pools (CAMP) N/A None None None
Local Agency Investment Fund (LAIF) N/A None $75M None
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

Government-Wide Statement of Net Position:

Cash and Investments $ 389,690,109
Restricted Cash and Investments 4,623,900
Fiduciary Funds Statement of Net Position:

Cash and Investments 638,636
Restricted Cash and Investments 489,072
Total Cash and Investments $ 395,441,717
Cash on hand $ 11,982
Deposits with financial institutions 20,399,941
Investments 375,029,794
Total Cash and Investments $ 395,441,717
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NOTE 3 - CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City of Visalia’s investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee.

The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Of Portfolio
Maximum
Investment
In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker’s Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 20% None
Money Market Mutual Funds N/A None None
Mortgage Pass-Through Securities 5 years 20% None
Local Agency Investment Fund (LAIF) N/A None None
Investment Contracts 30 years None None
C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City of Visalia manages its exposure to interest rate risk is by purchasing a combination of shorter 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 maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City of Visalia monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City of Visalia has no specific limitations with respect to this metric.

Weighted Average
Balance at Maturity
Investment Type 06/30/2021 (in Days ) % of Investments
Federal Agency Securities $ 139,885,276 220.22 37.30%
U.S. Treasuries 26,441,664 40.71 7.05%
Local Agency Investment Fund 87,331,151 - 23.29%
California Asset Management Program 15,002,304 - 4.00%
Corporate Medium-Term Notes 62,654,613 138.84 16.71%
Municipal Bonds 42,839,418 67.98 11.42%
Local Agency Bonds 377,623 2.40 0.10%
Held by Bond Trustee:

Money Market Funds 497,745 0.48 0.13%
Total $ 375,029,794
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NOTE 3 - CASH AND INVESTMENTS (Continued)
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations As of June 30, 2021, and during the 2020-2021 fiscal year, the City of Visalia did not hold or purchase investments that were highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above), such as interest only treasury strips or mortgage-backed securities.

E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City of Visalia’s investment policy, or debt agreements, and the actual rating as of yearend for each investment type. The column marked “not rated” identifies those investment types for which GASB Statement No. 40 does not require disclosure as to credit risk:

F. Concentration of Credit Risk
The investment policy of the City of Visalia contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than external investment pools and debt explicitly guaranteed by the U.S. government) that represents 5% or more of the total City of Visalia investments are as follows:

Investment Type
Minimum
Legal
Rating
Moody's
Rating
Standard & Poors
Rating
% of
Portfolio
Federal Agency Securities $ 139,885,276 N/A Aaa AA+ 37.30% U.S. Treasuries 26,441,664 N/A Aaa Not Rated 7.05%
Corporate Medium-Term Notes 1,036,930 A Aa2 AA 0.28%
Corporate Medium-Term Notes 3,000,767 A A1 AA 0.80%
Corporate Medium-Term Notes 9,250,190 A A1 AA- 2.47%
Corporate Medium-Term Notes 7,276,849 A A1 A+ 1.94%
Corporate Medium-Term Notes 3,003,600 A A2 A+ 0.80%
Corporate Medium-Term Notes 8,532,090 A A1 A 2.28%
Corporate Medium-Term Notes 11,743,023 A A2 A 3.13%
Corporate Medium-Term Notes 2,051,940 A A1 A- 0.55%
Corporate Medium-Term Notes 9,199,222 A A2 A- 2.45%
Corporate Medium-Term Notes 2,494,612 A A3 A- 0.67%
Corporate Medium-Term Notes 5,065,390 A A2 BBB+ 1.35%
Local Agency Investment Fund 87,331,151 N/A Not Rated Not Rated 23.29% California Asset Management Program 15,002,304 N/A Not Rated Not Rated 4.00% Municipal Bonds 3,490,493 A Aaa AAA 0.93%
Municipal Bonds 2,894,268 A Not Rated AA+ 0.77%
Municipal Bonds 3,496,418 A Aa1 AA 0.93%
Municipal Bonds 27,956,875 A Aa2 AA- 7.45%
Municipal Bonds 5,001,364 A Not Rated SP-1 1.33%
Local Agency Bonds 377,623 N/A Not Rated Not Rated 0.10% Held by Bond Trustee:

Money Market Funds 497,745 A Aaa-mf AAAm 0.13%
Total $ 375,029,794 100.00%
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NOTE 3 - CASH AND INVESTMENTS (Continued)
F. Concentration of Credit Risk (Continued)
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City of Visalia’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: none of the City of Visalia’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. As of June 30, 2021, none of the City of Visalia investments were held by the broker-dealer (counterparty) that was used by the City of Visalia to buy the securities.

H. Investment in State Investment Pool
The City of Visalia is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City of Visalia’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City of Visalia’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

The State Treasurer’s Office reports its investments at fair value. The fair value of securities in the State Treasurer’s pooled investment program, including LAIF, generally is based on quoted market prices. The State Treasurer’s Office performs a quarterly fair market valuation of the pooled investment program portfolio. In addition, the State Treasurer’s Office performs a monthly fair market valuation of all securities held against carrying cost. At June 30, 2021, these investments matured in an average of 291 days. These valuations and financial statements are posted to the State Treasurer’s Office website at www.treasurer.ca.gov Issuer Investment Type Reported
Federal Home Loan Bank Federal Agency Securities $ 53,991,966 Federal Farm Credit Bank Federal Agency Securities 27,405,758 Federal National Mortgage Association Federal Agency Securities 32,529,220 Federal Home Loan Mortgage Corporation Federal Agency Securities 25,958,332 U.S. Treasuries U.S. Treasuries 26,441,664
State of California Bonds Municipal Bonds 34,988,205
Total $ 201,315,145
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NOTE 3 - CASH AND INVESTMENTS (Continued)
I. Investment in California Asset Management Program
The City of Visalia is a voluntary participant in the California Asset Management Program (CAMP), which is a permitted investment under California Government Code 53601(p). CAMP is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers.

J. Fair Value Measurements
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 quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:

U.S. Treasuries totaling $26.4 million, classified in Level 1 of the fair value hierarchy, are valued at quoted prices in active markets for identical assets. Federal agency securities totaling $139.9 million, corporate medium-term notes totaling $62.7 million and municipal bonds totaling $42.8 million, classified in Level 2 of the fair value hierarchy, are valued using a matrix pricing technique. Matrix pricing is the process of estimating the fair value price of a bond based on the quoted prices of more frequently traded comparable bonds. The Local Agency Investment Fund and California Asset Management Program are classified as exempt in the fair value hierarchy. Local Agency Bonds and Money Market Funds held by the bond Trustee are reported at amortized cost.

Investments by Fair Value Level Level 1 Level 2 Total
Federal Agency Securities $ - $ 139,885,276 $ 139,885,276 U.S. Treasuries 26,441,664 - 26,441,664
Corporate Medium-Term Notes - 62,654,613 62,654,613
Municipal Bonds - 42,839,418 42,839,418
Held by Bond Trustee:

Money market funds - 497,745 497,745
Subtotal $ 26,441,664 $ 245,877,052 272,318,716
Investments Measured at Amortized Cost
Local Agency Bonds 377,623
Local Agency Investment Fund 87,331,151
California Asset Management Program 15,002,304
Total Investments $ 375,029,794
133
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 70 Notes to the Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS
A. Transfers Among Funds
With City Council approval, resources may be transferred from one City fund to another. Transfers are used in cases when a fund subsidizes another fund as in the case of the General Fund subsidizing the Convention Center, Animal Control, and Baseball Funds. Transfers are also used between Funds to fund capital projects and debt service payments. Transfers between funds during the fiscal year ended June 30, 2021, were as follows:

Amount
Fund Receiving Transfer Fund Making Transfer Transferred Governmental Funds:

General Fund Compensated Absences - Internal Services $ 20,979 (B) General Fund Grant & Loan Funds - Special Revenue 127,545 (B) Housing & Community Grants General Fund 23,966 (B)
Debt Service Funds:

VPFA 2014 Refunding COP General Fund 127,504 (C)
2015 COP General Fund 592,059 (C)
2015 COP Public Safety Impact Fee - Capital Projects 415,167 (C) 2015 COP Measure T Police - Special Revenue 151,477 (C) Capital Projects Funds:

Civic Center General Fund 12,241,231 (A)
GOVERNMENTAL Funds Sub-Total 13,699,928
Enterprise Funds:

Baseball General Fund 260,971 (B)
Animal Control General Fund 859,571 (B)
Animal Control General Fund 567,328 (C)
Convention Center General Fund 250,000 (A)
Convention Center General Fund 688,257 (B)
Convention Center General Fund 1,092,280 (C)
Storm Sewer Maintenance Kaweah Lake and Local Storm Water Maintenance - Special Revenue 300,000 (B) ENTERPRISE Funds Sub-Total 4,018,407
TOTAL TRANSFERS $ 17,718,335
(A) To fund capital expenses
(B) To fund operating expenses
(C) To fund debt service payments
134
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 71 Notes to the Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
B. Long-Term Interfund Advances
At June 30, 2021, the funds below had advance balances which were not expected to be repaid within the next year.

C. Due to/from Other Funds
As of June 30, 2021, the General Fund provided $4,980 to the Housing & Community Grants Fund which is expected to be repaid within the next year.

D. Internal Balances
Internal balances are presented in the Government-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.

Advances From Advances To
Other Funds Other Funds
General Fund $ - $ 2,912,062
Special Revenue Funds:

Special Service Districts (Landscape & Lighting) (a) 963,198 - Measure R - Regional (b) 521,921 -
Capital Projects Funds:

Government Facilities Impact Fee (Library) (c) 59,659 - Enterprise Funds:

Airport (d) 1,367,284 -
Total Advances $ 2,912,062 $ 2,912,062
The repayment plans for each of the above advances are as follows:
(a)To be repaid through higher assessment fees.
(b) To be repaid from future Measure R Sales Tax.
(c) To be repaid from future impact fees.
(d) To be repaid from future Airport grant reimbursments. 135
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 72 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE
A. Current Year Transactions and Balances
Balance at Balance at
Ref # Issue Date Maturity June 30, 2020 Additions Repayments June 30, 2021

GOVERNMENTAL ACTIVITIES
General Fund
Visalia Successor Agency - - - $ 12,068,590 $ 362,058 $ - $ 12,430,648 Visalia Investment Associates 13010-J13044 April 2004 June 2034 333,103 - 16,254 316,849 Frank Golden 13010-J13081 May 2015 June 2021 5,328 - 5,328 - Poonam Verma 13010-B50956 Dec 2015 June 2021 7,262 - 7,262 - Déjà Vu LP B153025 13010-J13084 Jan 2018 June 2023 23,768 - 7,923 15,845 Déjà Vu LP B153018 13010-J13085 Jan 2018 June 2023 139,220 - 46,406 92,814 Déjà Vu LP B153023 13010-J13086 Jan 2018 June 2023 60,031 - 20,010 40,021 101 NW 5th (SHE) 13010-R93009 Nov 2018 Nov 2063 32,000 - 1,422 30,578 105 NW 5th (SHE) 13010-R93010 Nov 2018 Nov 2063 32,000 - 1,422 30,578 Subtotal General Fund 12,701,302 362,058 106,027 12,957,333 Housing & Community Grants
1001 N Jacob (TCHA) 13010-R94101 May 1996 May 2024 9,800 - 2,400 7,400 Fairview Village (KMC) 13010-R94707 Dec 1994 Dec 2034 120,000 - - 120,000 Robinwood 13010-J13503 April 2007 April 2036 693,320 - 43,332 649,988 1627 S Garden Public Facilty 13010-J13505 Aug 2019 Aug 2039 400,000 - 20,000 380,000 1627 S Garden Public Facilty 13010-J13505 Aug 2019 Aug 2039 225,000 40,000 13,250 251,750 101 N Strawberry 13010-R93003 June 2015 Dec 2045 429,150 - - 429,150 SHE 517-519 N Encina 13010-R93007 May 2018 May 2048 436,656 - - 436,656 Visalia Senior Housing III 13010-J13057 Jan 2007 Jan 2062 2,720,193 - - 2,720,193 Court & Paradise Apts 13010-J13504 Nov 2010 Nov 2066 500,000 - - 500,000 Highland Gardens 13010-R92000 Sep 2015 Dec 2070 1,980,000 - - 1,980,000 101 NW 5th (SHE) 13010-R93009 Aug 2019 When Sold 206,679 - - 206,679 105 NW 5th (SHE) 13010-R93010 Aug 2019 When Sold 223,629 - - 223,629 113 NW 5th (SHE) 13010-R93011 Aug 2019 When Sold 222,952 - - 222,952 111 NW 5th (SHE) 13010-R93012 Aug 2019 When Sold 203,119 - - 203,119 1105 N Court (SHE) 13010-R93008 Aug 2019 When Sold 217,419 - - 217,419 Habitat for Humanity Assigned 13411 Various Various 191,141 - 15,660 175,481 NSP 13418 Various Various 606,664 - 31,179 575,485
CDBG 13411 Various Various 893,408 - 75,312 818,096
Cal Home 13412 Various Various 561,332 - - 561,332
HOME 13412 Various Various 2,326,292 - 308,092 2,018,200 Subtotal Housing & Community Grants 13,166,754 40,000 509,225 12,697,529 Housing Successor Agency
Visalia Successor Agency - - - 1,168,076 - 319,510 848,566 Town Meadows (1) 13010-J13030 April 2001 April 2025 114,000 - - 114,000 Kaweah Management (1) 13010-J13019 June 1996 Nov 2025 250,000 - - 250,000 Encina Triplex 13010-J13066 Aug 2008 Aug 2048 279,697 - 6,418 273,279 Kimball Court (1) 13010-J13020 Aug 1999 Aug 2054 929,262 - 323,824 605,438 Downtown Senior Housing (1) 13010-J13035 April 2002 April 2057 900,000 - - 900,000 Tulare County Housing Authority (1) 13010-J13040 Aug 2003 Aug 2058 34,545 - 909 33,636 Mill Creek Parkway $1.5M (KMC) 13010-R09029 Mar 2006 Mar 2061 1,145,354 - 27,936 1,117,418 Mill Creek Parkway $3.0M (KMC) 13010-R09027 Oct 2015 Oct 2070 2,781,818 - 54,545 2,727,273 Kaweah Management - East (1) 13010-J13067 Sep 2009 June 2065 472,708 - - 472,708 Court & Paradise Apts 13010-J13504 Nov 2010 Nov 2066 500,000 - - 500,000 617 & 619 Santa Fe (KMC) 13010-R09028 July 2017 July 2072 150,000 - - 150,000 517-519 N Encina (SHE) 13010-R93007 May 2018 May 2074 100,000 - - 100,000 111 NW 5th (SHE) 13010-R93011 Nov 2018 Nov 2063 32,000 - 1,422 30,578 113 NW 5th (SHE) 13010-R93012 Nov 2018 Nov 2063 32,000 - 1,422 30,578 1105 N Court (SHE) 13010-R93008 Nov 2018 Nov 2063 32,000 - 1,422 30,578 1029 W Goshen 13418-R89000 Jan 2011 Jan 2066 136,048 - 2,953 133,095 East Visalia Redevelopment 13413 Various Various 32,461 - - 32,461 Habitat for Humanity Assigned 13417 Various Various 728,951 - 52,701 676,250 Housing Fund 13418 Various Various 103,745 - 4,435 99,310 Subtotal Housing Successor Funds 9,922,665 - 797,497 9,125,168 136
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 73 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE (Continued)
Balance at Balance at
Ref # Issue Date Maturity June 30, 2020 Additions Repayments June 30, 2021 Transportation Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 20,112 - 5,047 15,065 Dillon Ent (B170632) 13010-J13089 Dec 2018 June 2024 200,000 - 50,000 150,000 COGO Prop (B180570) 13010-J13090 Aug 2018 June 2024 14,014 - 3,504 10,510 TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 33,374 - 6,675 26,699 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 238,163 - 47,633 190,530 McAuliff Center (B163300) 13010-J13093 Jan 2019 June 2025 389,316 - 389,316 - NW Visalia Senior (B173132) 13010-J13094 Oct 2019 June 2025 251,280 - 50,256 201,024 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 - 140,932 - 140,932 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 - 79,829 - 79,829 Subtotal Transportation Fund 1,146,259 220,761 552,431 814,589 Parking District Fund
Barrell House Brewing 13010-J13083 April 2017 June 2023 12,891 - 6,357 6,534 Comfort Suites 13010-J13038 Oct 2002 Oct 2032 137,524 - 10,115 127,409 Subtotal Parking District Fund 150,415 - 16,472 133,943 Waterways Fund
Imagine U Museum 13010-J13082 Dec 2016 Dec 2046 167,048 - 3,679 163,369 Subtotal Waterways Fund 167,048 - 3,679 163,369
Govt Facilities Impact Fee Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 583 - 142 441 TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 4,893 - 979 3,914 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 1,265 - 253 1,012 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 - 74,994 - 74,994 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 - 36,840 - 36,840 Subtotal Govt Facilities Impact Fee Fund 6,741 111,834 1,374 117,201 Public Safety Impact Fee Fund
TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 9,222 - 1,845 7,377 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 15,853 - 3,170 12,683 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 - 46,578 - 46,578 Subtotal Public Safety Impact Fee Fund 25,075 46,578 5,015 66,638 Storm Sewer Construction Fund
TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 967 - 193 774 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 1,037 - 208 829 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 - 3,289 - 3,289 Subtotal Storm Sewer Construction Fund 2,004 3,289 401 4,892 Civic Center Fund
Imagine U Museum 13010-J13082 Dec 2016 Dec 2046 136,675 - 3,010 133,665 Subtotal Civc Center Fund 136,675 - 3,010 133,665
Subtotal Governmental Activities 37,424,938 784,520 1,995,131 36,214,327

BUSINESS - TYPE
Water Reclamation Facility Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 7,730 - 1,919 5,811 TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 2,319 - 464 1,855 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 14,021 - 2,804 11,217 NW Visalia Senior (B173132) 13010-J13094 Oct 2019 June 2025 62,760 - 12,552 50,208 120 W Main St (B150085) 13010-J13095 May 2015 June 2025 24,663 - 4,933 19,730 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 - 66,499 - 66,499 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 - 4,176 - 4,176 Subtotal Water Reclamation Facility Fund 111,493 70,675 22,672 159,496

FIDUCIARY
Successor Agency
Willow Street Parking Structure 13010-J13015 - - 167,023 - 20,480 146,543 Subtotal Successor Agency 167,023 - 20,480 146,543
Total $ 37,703,454 $ 855,195 $ 2,038,283 $ 36,520,366
Note: (1) Repayment is based on residual cash flow from operations. To the extent there is excess revenues, the developer is required to repay all accrued interest and principal annually. 137
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 74 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE (Continued)
B. Notes Receivable
The City loans monies for various purposes in the course of its operations. The General Fund holds notes receivable for deferred impact fees and land sales. The Parking District holds notes relating to payment of downtown parking inlieu fees. Various housing funds hold notes related to housing development. The Housing Successor Agency loans are mainly for developers who develop housing projects for low-income persons which meet affordability requirements. At June 30, 2021, these notes receivable totaled $36,520,366 in the following funds: $12,957,333 in the General Fund, $12,697,529 in Housing & Community Grants, $9,125,168 in the Housing Successor Agency Fund, $814,589 in the Transportation Fund, $133,943 in the Parking District Fund, $163,369 in the Waterways Fund, $117,201 in the Government Facilities Impact Fee Fund, $66,638 in the Public Safety Impact Fee Fund, $4,892 in the Storm Sewer Construction Fund, $133,665 in the Civic Center Fund, $159,496 in the Water Reclamation Facility Fund, and $146,543 in the Fiduciary Successor Agency.

C. Loans Receivable
The City uses several sources of funds to provide financial assistance, mainly in the form of loans to low and moderate income residents. The three funding sources are:

The Community Development Block Grant (CDBG) has provided low-interest loans to rehabilitate or purchase affordable housing, as well as to rehabilitate rental properties that house low income residents. The outstanding balance of these loans was $818,096 at June 30, 2021.

The Home Investment Partnerships Grant (HOME) has provided low-interest loans to rehabilitate or purchase affordable housing, as well as to rehabilitate rental properties that house low income residents. The outstanding balance of these loans was $2,018,200 at June 30, 2021.

The Housing Successor Agency holds loans made by the former Redevelopment Agency which provided low-interest loans to rehabilitate or purchase affordable housing as well as to rehabilitate rental properties that house low income residents. The outstanding balance of these loans was $8,276,602 at June 30, 2021.
138
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 75 Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS
A. Capital Assets Additions and Retirements
Balance Balance
July 1, 2020
Restated Additions Retirements Transfers June 30, 2021
GOVERNMENTAL ACTIVITIES:

Capital assets not being depreciated
Land $ 42,021,038 $ 481,320 $ (926,202) $ - $ 41,576,156 Construction in progress 22,990,186 8,688,597 (345,078) (9,884,694) 21,449,011 65,011,224 9,169,917 (1,271,280) (9,884,694) 63,025,167 Capital assets being depreciated
Buildings 62,476,948 - - - 62,476,948
Improvements other than buildings 88,282,384 362,609 - 1,432,721 90,077,714 Machinery, equipment and vehicles 11,541,552 1,211,198 (48,635) 1,237,533 13,941,648 Infrastructure - streets, traffic signals & signs 239,609,591 8,057,394 (362,747) 7,215,780 254,520,018 401,910,475 9,631,201 (411,382) 9,886,034 421,016,328
Accumulated depreciation
Buildings (14,667,945) (1,289,248) - - (15,957,193)
Improvements other than buildings (26,377,329) (2,275,718) - - (28,653,047) Machinery, equipment and vehicles (7,175,852) (503,626) 45,387 - (7,634,091) Infrastructure - streets, traffic signals & signs (88,504,880) (5,550,003) 741,466 - (93,313,417) (136,726,006) (9,618,595) 786,853 - (145,557,748)
Governmental Capital Asset Activity, Net $ 330,195,693 $ 9,182,523 $ (895,809) $ 1,340 $ 338,483,747 INTERNAL SERVICE FUND ACTIVITIES:

Capital assets not being depreciated
Land $ - $ - $ - $ - $ -
Construction in progress - - - - -
- - - - -
Capital assets being depreciated
Buildings 654,910 - - - 654,910
Improvements other than buildings 218,785 - - - 218,785 Machinery, equipment and vehicles 34,460,921 674,175 (955,845) 2,688 34,181,939 35,334,616 674,175 (955,845) 2,688 35,055,634
Accumulated depreciation
Buildings (589,910) - - - (589,910)
Improvements other than buildings (162,273) (7,159) - - (169,432) Machinery, equipment and vehicles (20,273,348) (2,172,354) 889,814 - (21,555,888) (21,025,531) (2,179,513) 889,814 - (22,315,230)
Internal Service Fund Capital Asset Activity, Net $ 14,309,085 $ (1,505,338) $ (66,031) $ 2,688 $ 12,740,404 BUSINESS-TYPE ACTIVITIES:

Capital assets not being depreciated
Land $ 26,148,966 $ - $ - $ - $ 26,148,966
Construction in progress 5,948,553 3,097,592 (263,535) (246,359) 8,536,251 32,097,519 3,097,592 (263,535) (246,359) 34,685,217
Capital assets being depreciated
Buildings 54,067,102 - - - 54,067,102
Improvements other than buildings 230,953,578 270,555 - 216,590 231,440,723 Machinery, equipment and vehicles 69,346,061 8,157,379 (1,756,181) 25,741 75,773,000 Infrastructure - sewer and storm drainage 148,938,189 3,422,274 - - 152,360,463 503,304,930 11,850,208 (1,756,181) 242,331 513,641,288
Accumulated depreciation
Buildings (19,787,002) (1,178,941) - - (20,965,943)
Improvements other than buildings (62,641,105) (4,694,537) - - (67,335,642) Machinery, equipment and vehicles (46,501,805) (3,541,609) 1,533,009 - (48,510,405) Infrastructure - sewer and storm drainage (32,679,016) (1,885,867) - - (34,564,883) (161,608,928) (11,300,954) 1,533,009 - (171,376,873)
Business-type Capital Asset Activity, Net $ 373,793,521 $ 3,646,846 $ (486,707) $ (4,028) $ 376,949,632 139
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 76 Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS (Continued)
B. Capital Assets Additions and Retirements
Depreciation expense is charged to functions and programs based on their usage of the related assets. The accounts allocated to each function or programs are as follows:

Governmental Activities
General Government $ 5,332,732
Housing & Community Grants 5,165
Public Works 1,907,624
Public Safety:

Police 442,823
Fire 407,403
Community Services 1,522,848
Capital Assets Held by the City's Internal Service Funds are Charged to the Various Functions Based on their
Usage of the Assets 2,179,513
Total Governmental Activities $ 11,798,108
Business-Type Activities
Convention Center $ 748,728
Airport 324,488
Water Reclamation Facility 5,484,508
Storm Sewer Maintenance 811,401
Solid Waste 933,376
Transit 2,720,394
Building Safety 16,562
Animal Control 171,982
Baseball 89,515
Total Business-Type Activities $ 11,300,954
140
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 77 Notes to the Financial Statements
NOTE 7 - LONG-TERM OBLIGATIONS
A. Current Year Transactions and Balances
Original Issue Balance at Balance at Due Within
Amount June 30, 2020 Additions Retirements June 30, 2021 One Year Governmental Activity Debt
Certificates of Participation:
2015 COP $ 13,121,230 $ 9,648,610 $ - $ (783,904) $ 8,864,706 $ 824,198 2014 VPFA - Refunding (1) 1,180,800 661,600 - (98,400) 563,200 102,400 Internal Service Funds
Compensated Absences - 5,480,008 736,317 (397,717) 5,818,608 1,231,281 Total Governmental Activity $ 14,302,030 $ 15,790,218 $ 736,317 $ (1,280,021) $ 15,246,514 $ 2,157,879 Business-Type Activity Debt
Certificates of Participation:
2015 COP $ 4,788,770 $ 3,521,390 $ - $ (286,096) $ 3,235,294 $ 300,802 2014 VPFA - Refunding (1) 6,199,200 3,473,400 - (516,600) 2,956,800 537,600 Bond Premium 971,504 171,627 - (55,450) 116,177 -
Notes - Direct Borrowings:
2014 Clean Water State Revolving Fund Loan 96,434,597 91,705,253 - (2,439,417) 89,265,836 2,490,645 Lease - Direct Borrowings:
2012 Animal Control 6,600,000 3,936,746 - (435,232) 3,501,514 450,377 Compensated Absences - 1,122,562 223,259 (273,238) 1,072,583 178,623 Total Business-Type Activity $ 114,994,071 $ 103,930,978 $ 223,259 $ (4,006,033) $ 100,148,204 $ 3,958,047 Private Purpose Trust Funds
Redevelopment Agency Tax Allocation Bonds:
2003 East Visalia District $ 5,185,000 $ 1,465,000 $ - $ (185,000) $ 1,280,000 $ 190,000 Notes - Direct Borrowings:
2004 RDA - Mooney District 2,707,250 1,275,745 - (126,764) 1,148,981 132,506 Advances:

General Fund - 12,068,591 362,057 - 12,430,648 -
Housing Successor Agency - 1,168,076 - (319,510) 848,566 - Total Private Purpose Trust Funds $ 7,892,250 $ 15,977,412 $ 362,057 $ (631,274) $ 15,708,195 $ 322,506 (1) The 2014 VPFA issues were for refunding of the 2005 VPFA Issues, and corresponding debt's proportionate allocation remains at 84% to Business-Type Activities (Convention Center - Enterprise Fund) and 16% to Governmental Activities. 141
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 78 Notes to the Financial Statements
NOTE 7 – LONG-TERM OBLIGATIONS (Continued)
B. Certificates of Participation
On July 2, 2014, the City issued $7,380,000 of 2014 Refunding Certificates of Participation (the Certificates VPFA) to (a) refund all of the City’s outstanding 2005 Refunding Certificates of Participation (the “Prior Certificates”), (b) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (c) to pay the costs related to the execution and delivery of the Certificates, including, but not limited to, the cost of municipal bond insurance. Of this issue, 84% is allocable to the Convention Center and 16% is considered general long-term debt. The term of the refunding is 11 years with an all in total interest cost of 3.02%. Principal payments are due annually on June 1 and interest is due semiannually on June 1 and December 1, commencing December 1, 2014, with the final payment due in the year 2025. The refunding was structured to lower the annual certificate payments and was achieved by taking advantage of historically low interest rates and extend out the final maturity date by 4 years. The refunding resulted in a bond premium of $971,504 for the business-type activities, of which $116,177 remains to be amortized. The City also chose to unencumber the Convention Center, which was the leased asset for the Prior Certificates, and encumber a new asset, which is the City’s Riverway Sports Park, with the 2014 Certificates. The lowering of the annual payments and unencumbering of the Convention Center were done to help with a larger future financing issued by the City in September of 2015.

The bonds are limited obligations of the Visalia Public Finance Authority and are payable by the City solely from Lease Payments to be made by the City under the Lease and certain other moneys held under the Trust Agreement. The City has covenanted to budget and appropriate Lease Payments in each fiscal year in consideration of the use and occupancy of the Property from any source of legally available funds, and to take such action as may be necessary to include all Lease Payments in its annual budgets and to make the necessary annual appropriations thereof. Should the City default under the facilities sublease, the trustee, as the assignee of the Authority, may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. Base Rental payments may not be accelerated upon a default under the facilities sublease. No such events of default occurred during the fiscal year ending June 30, 2021.

On September 10, 2015 the City issued $17,910,000 of 2015 Certificates of Participation to (a) construct and equip the Visalia Emergency Communications Center (the VECC), (b) to replace the City’s Computer Aided Dispatch and Records Management System (the CAD/RMS), (c) to make certain improvements to the Visalia Convention Center, (d) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (e) to pay the costs related to the execution and delivery of the Certificates. Of this issue, 27% is allocable to the Convention Center, 10% is allocable to the Measure T Fund, 26% is allocable to Police Impact Fees, and 37% is considered general long-term debt. The term of the certificates is 14 years with an all in total interest cost of 3.14%. Principal and interest payments are payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2015, with the final payment due in the year 2029.

The bonds are limited obligations of the Public Property Financing Corporation of California and are payable by the City solely from Lease Payments to be made by the City under the Lease and certain other moneys held under the Trust Agreement. The City has covenanted to budget and appropriate Lease Payments in each fiscal year in consideration of the use and occupancy of the Property from any source of legally available funds, and to take such action as may be necessary to include all Lease Payments in its annual budgets and to make the necessary annual appropriations thereof. Should the City default under the facilities sublease, the Trustee, as the assignee of the Corporation, may elect either to terminate the Lease and seek to collect personal damages from the City or to maintain the Lease in effect to seek to collect the Lease Payments as they become due. Base Rental payments may not be accelerated upon a default under the facilities sublease. No such events of default occurred during the fiscal year ending June 30, 2021.
142
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 79 Notes to the Financial Statements
NOTE 7 – LONG-TERM OBLIGATIONS (Continued)
C. Lease – Animal Control
On December 1, 2012, the City entered into a lease agreement with Municipal Finance Corporation for $6,600,000 for the acquisition and construction of an animal control facility and shelter. The lease agreement pledges two police substations and the animal control center site for the construction of the animal shelter.

The fifteen year lease financing arrangement begins March 2013 at an interest rate of 3.45%. Principal and interest payments are due each September and March with the first payment beginning September 2013 and the final payment due in March 2028.

D. Compensated Absences
The City accounts for compensated absences (unpaid, vacation, sick leave and compensatory time) in accordance with GASB standards. In governmental funds, compensated absences are recorded as expenditures in the year paid, as it is the City’s intention to liquidate any unpaid compensated absences at June 30 from future resources, rather than current available financial resources. Accordingly, the unpaid liability for governmental funds is recorded in the Statement of Net Position. In business-type activities and enterprise funds, the unpaid liability is accrued when the liability occurs.

E. Redevelopment Agency Tax Allocation Bonds
On June 18, 2003, the Community Redevelopment Agency (RDA) issued $5,185,000 of 2003 Tax Allocation Refunding Bonds (2003 Bonds) to retire outstanding variable rate 1990 Tax Allocation Bonds and to pay for issuance costs
Tax increment revenue is pledged for the repayment of the 2003 Bonds. Interest ranges from 2.0% to 4.1% and is due semiannually each July 1 and January 1. Commencing 2004, principal is payable each July 1 through 2026.

The bonds are special obligations of the Agency payable solely from the Tax Revenues. The Successor Agency has covenanted in the Indenture to manage its fiscal affairs in a manner which ensures that it will have sufficient Tax Revenues available under the Plan Limitations in the amounts and at the times required to enable the Agency to pay the principal of and interest and premium (if any) on the Bond when due. Should the Successor Agency default, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. I f termination occurs prior to the final maturity of the Bonds; the Issuer shall give notice of such termination in the same manner as for a Listed Event. No such events of default occurred during the fiscal year ending June 30, 2021.

This debt was transferred to the Redevelopment Successor Agency (Private Purpose Trust Fund) on February 1, 2012, as a result of the dissolution of the Visalia Community Redevelopment Agency.

F. Note – WestAmerica Bank Loan – RDA Mooney District
On September 7, 2004, the City approved the refinancing of the remaining balance of the 1993 Mooney Tax Allocation Revenue Bond with a Stockmen’s bank loan in the amount of $2,707,250. The bank loan is a variable rate loan, fixed every five years with a floor of 4.30% and a ceiling of 6.00%. The term of the loan is set at 24 years to match the sunset of the Mooney Redevelopment Area in 2028.

This loan is secured by the tax revenues received by the RDA for the project area. 143
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 80 Notes to the Financial Statements
NOTE 7 – LONG-TERM OBLIGATIONS (Continued)
F. Note – WestAmerica Bank Loan – RDA Mooney District (Continued) Although the note originated with Stockmen’s Bank in 2004, as of June 30, 2012, the note is held by WestAmerica Bank.

This debt was transferred to the Redevelopment Successor Agency (Private Purpose Trust Fund) on February 1, 2012, as a result of the dissolution of the Visalia Community Redevelopment Agency.

G. Note – Clean Water State Revolving Fund – Wastewater Conservation Plant Upgrade Project On March 27, 2014, the City entered into an installment sale agreement with the California State Water Resources Control Board for up to $132,490,000 for a major upgrade to the City’s Water Conservation Plant to provide tertiary level treatment to the water being processed. The project is complete and the City’s loan balance is set at $96,434,597, which includes $3,854,165 of capitalized interest. The term of the loan is 30 years at an interest rate of 2.1%. Principal and interest payments will be repaid in annual installments commencing on September 13, 2018 and shall be fully amortized by September 13, 2047.

H. 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 Interest Principal Interest Bond Premium 2022 $ 926,598 $ 356,644 $ 2,941,022 $ 1,991,533 $ 838,402 $ 252,718 $ 45,368 2023 968,029 314,095 3,008,998 1,923,557 876,971 214,093 70,809 2024 1,013,123 268,870 3,078,617 1,853,939 916,877 170,817 - 2025 1,066,343 216,884 3,149,922 1,782,634 963,657 123,804 - 2026 1,120,364 162,216 3,222,956 1,709,600 1,014,636 74,346 - 2027-2031 4,333,449 278,126 15,496,886 7,463,908 1,581,551 101,506 - 2032-2036 - - 15,987,418 5,838,720 - - -
2037-2041 - - 17,738,098 4,088,041 - - -
2042-2046 - - 19,680,484 2,145,656 - - -
2047-2048 - - 8,462,949 267,506 - - -
$ 9,427,906 $ 1,596,835 $ 92,767,350 $ 29,065,094 $ 6,192,094 $ 937,284 $ 116,177 Governmental Activities Business-Type Activities
Direct Borrowings
For the Year
Ending June 30, Principal Interest Principal Interest
2022 $ 132,506 $ 48,610 $ 190,000 $ 55,025
2023 138,346 42,770 200,000 47,187
2024 144,443 36,673 210,000 38,938
2025 150,719 30,397 220,000 29,750
2026 157,451 23,665 225,000 20,125
2027-2031 425,516 28,133 235,000 10,281
2032-2036 - - - -
2037-2041 - - - -
2042-2046 - - - -
2047-2048 - - - -
$ 1,148,981 $ 210,248 $ 1,280,000 $ 201,306
Private Purpose Trust Fund
Direct Borrowings
144
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 81 Notes to the Financial Statements
NOTE 8 - DEBT WITHOUT CITY COMMITMENT
The City issued a $72,020 bond designated as the, “Limited Obligation Improvement Bonds, Village West Improvement Project, Series 2007” for the unpaid assessments levied upon the Village West Improvement Project special assessment district. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 6% and mature on September 2, 2022, and were for the construction of street improvements in the Village West Subdivision. As of June 30, 2021, $5,234 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $675,000 bond designated as the “City of Visalia Orchard Walk East and West Undergrounding Utilities Assessment District, Series 2011”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 6.75% and mature on September 2, 2026 and were for the construction of underground electrical utilities at the Orchard Walk East and West commercial shopping center. As of June 30, 2021, $225,000 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $148,367 bond designated as the “City of Visalia Atwood Street Water Assessment District No. 2014-01, Series 2015-2”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 4.00% and mature on September 2, 2030 and were for the construction of improvements for the extension of a California Water main into Atwood Street to provide services to each property as the properties had wells that were beginning to fail. As of June 30, 2021, $90,199 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $106,530 bond designated as the “City of Visalia Laura Street Water Assessment District No. 2014-01, Series 2015-2”. The City then purchased the bonds for the City’s cash portfolio. The bonds yield 4.00% and mature on September 2, 2030 and were for the construction of improvements for the extension of a California Water main into Laura Street to provide services to each property as the properties had wells that were beginning to fail. As of June 30, 2021, $57,189 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

Although the City assisted in the issuance of the above debts, it is not obligated in any way to repay this debt and has not reflected the debt in its financial statements. 145
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 82 Notes to the Financial Statements
NOTE 9 - FUND BALANCE CLASSIFICATIONS
GASB Statement No. 34 incorporates the concept of Net Position, which is measured on the full accrual basis of accounting, to the concept of Fund Balance, as amended by GASB Statement No. 54, which is measured on the modified accrual basis of accounting.

A. Fund Balances
Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2021 is as follows:

City of Visalia
Governmental Fund Balances
June 30, 2021
(in thousands)
General
Housing &
Community Housing American
All Other
Governmental
Total
Governmental
Fund Measure N Grants Successor Agency Rescue Plan Funds Funds Nonspendable
Prepaids/Deposits $ 22 $ - $ - $ - $ - $ - $ 22
Supplies 19 - - - - - 19
Long Term Receivable 527 - - - - - 527
Advance - Public Facility Impact Fee 60 - - - - - 60
Advance - Measure R - Trailways 522 - - - - - 522
Advance - Special Service Districts 963 - - - - - 963
Advance - Airport 1,367 - - - - - 1,367
Total Nonspendable Fund Balance 3,480 - - - - - 3,480
Restricted
Purpose of Fund - 28,468 15,167 9,854 3 90,511 144,003
Total Restricted Fund Balance - 28,468 15,167 9,854 3 90,511 144,003 Committed
Civic Center Facilities - - - - - 32,738 32,738
Sports Park - - - - - 578 578
Animal Control - - - - - 252 252
Conservation - - - - - 249 249
Police Unclaimed - - - - - 67 67
Facility Improvement Fund - - - - - 784 784
Emergency Reserve 16,407 - - - - - 16,407
Miscellaneous Capital Projects 202 1,206 128 - 278 1,814 Total Committed Fund Balance 16,609 1,206 128 - - 34,946 52,889 Assigned
Advance - Atwood District (Custodial Fund) 76 - - - - - 76 Advance - Laura District (Custodial Fund) 36 - - - - - 36 Due from - Community Development 5 - - - - - 5
CIP Budgeted Not Started 3,961 - - - - - 3,961
Cal PERS Unfunded Liability Payment FY 21/22 11,120 - - - - - 11,120 Successor Agency Loans 12,431 - - 848 - - 13,279
Total Assigned Fund Balance 27,629 - - 848 - - 28,477
Unassigned
Total Unassigned Fund Balance 5,428 - - - - (31) 5,397
Total Fund Balances $ 53,146 $ 29,674 $ 15,295 $ 10,702 $ 3 $ 125,426 $ 234,246 146
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 83 Notes to the Financial Statements
NOTE 9 – FUND BALANCE CLASSIFICATIONS (Continued)
A. Fund Balances (Continued)
FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21
Nonspendable Fund Balance:

Inventory $ 175 $ - $ - $ - $ -
Prepaid Expenditures 68 47 180 26 22
Supplies 18 8 13 19 19
Long-Term Receivable 1,085 1,310 932 633 527
Advance - Public Safety Impact Fee 1,312 977 641 304 -
Advance - Public Facility Impact Fee 182 158 126 98 60
Advance - Softball Development 3 1 - - -
Advance - Measure R - Regional - - 967 1,284 -
Advance - Measure R - Trailways 236 1,106 1,292 844 522 Advance - Storm Sewer Construction 463 - - - -
Advance - Special Service Districts 879 893 899 931 963 Advance - CHFA 21 5 1 - -
Advance - Transportation Grants - - - 300 -
Advance - Valley Oaks Golf 2,629 2,798 - - -
Advance - Airport 455 278 44 944 1,367
Nonspendable Fund Balance Total 7,526 7,581 5,095 5,383 3,480 Restricted Fund Balance - Debt Service 1,193 - - - -
Committed Fund Balance:
* Civic Center Facilities 4,984 5,144 - - -
* Sports Park 609 583 - - -
* Animal Control 234 236 - - -
* Conservation 218 232 - - -
* Police Unclaimed 149 156 - - -
* Facility Improvement Fund 658 733 - - -
Emergency Reserve 12,896 14,695 15,182 15,953 16,407
Miscellaneous Capital Projects 57 142 162 286 202
Committed Fund Balance Total 19,805 21,921 15,344 16,239 16,609 Assigned Fund Balance:

Custodial Fund Advance - Atwood District 75 75 77 75 76 Custodial Fund Advance - Laura District 34 36 37 36 36
Due from - Community Development 12 73 - 2 5
Due from - Golf Course - - - 6 -
Due from - Risk 1,164 - - - -
Due from - Measure N 571 - - - -
CIP Budgeted not started 2,101 1,971 2,551 3,219 3,961
Cal PERS Unfunded Liability Payment FY 21/22 - 5,234 6,863 10,166 11,120 Successor Agency 11,720 11,376 11,717 12,069 12,431
Assigned Fund Balance Total 15,677 18,765 21,245 25,573 27,629 Unassigned Fund Balance:

Unassigned 9,612 10,214 9,753 5,497 5,428
Unassigned Fund Balance Total 9,612 10,214 9,753 5,497 5,428 Total Fund Balance $ 53,813 $ 58,481 $ 51,437 $ 52,692 $ 53,146 * These funds were previously reported in the General Fund are now being reported in the Non Major Statements.

CITY OF VISALIA

SCHEDULE OF FUND BALANCE - GENERAL FUND
(In Thousands)
147
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 84 Notes to the Financial Statements
NOTE 9 - FUND BALANCE CLASSIFICATIONS (Continued)
C. Fund Balance and Net Position Deficits
The following funds had deficit fund balances or net position at June 30, 2021. Future revenues or interfund transfers are expected to offset these deficits:

Debt Service Funds:

VPFA 2014 Refunding COP $ 2,224
2015 COP 20,195
FiduciaryFunds:

Successor Agency $ 12,012,668
148
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 85 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS
A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City of Visalia separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City of Visalia resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Miscellaneous
Hire date
Prior to
May 9, 2008
May 10, 2008 through
May 20, 2011
May 21, 2011 through
December 31, 2012
January 1, 2013
through current
Benefit formula 3% @ 60 2.5% @ 55 2.0% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 3.0% 2.0% to 2.5% 1.09% to 2.42% 1.0% to 2.5% Required employee contribution rates 8% 8% 7% 6.75%
Required employer contribution rates 10.913% 10.913% 10.913% 10.913% Unfunded Liability Contribution
% of Payroll (illustrative only) 19.980% 19.980% 19.980% 19.980% Hire date
Prior to
February 26, 2011
February 27, 2011 through
December 31, 2012
January 1, 2013
through current
Benefit formula 3% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9% 9% 12.25%
Required employer contribution rates 22.085% 22.085% 22.085% Unfunded Liability Contribution
% of Payroll (illustrative only) 23.628% 23.628% 23.628% Safety
149
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 86 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
A. General Information about the Pension Plans (Continued) Employees Covered – For valuation date, as of June 30, 2019, the following employees were covered by the benefit terms for each Plan:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City of Visalia is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Net Pension Liability
The City of Visalia’s net pension liability for each Plan is measured as the 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, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 457 231 Inactive employees entitled to but not yet receiving benefits 302 119 Active employees 394 216
Total 1,153 566
150
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 87 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
B. Net Pension Liability (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 7.15% for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both shortterm and long-term, the present value of benefits was calculated for each fund. The expected rate of return was Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll Growth 2.875% 2.875%
Projected Salary Increase .40% - 8.5% (1) .97% - 17.0% (1) Investment Rate of Return 7.25% (2) 7.25% (2)
Post Retirement Benefit Increase
Mortality (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment and administrative expenses, including inflation The lessor of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter
Derived using CalPERS Membership Data for all Funds
(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. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 151
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 88 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
B. Net Pension Liability (Continued)
set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:

C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:

Asset Class
Assumed
Asset
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11+(b)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.

Miscellaneous Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 $242,215,006 $169,613,222 $72,601,784 Changes in the year:

Service cost 4,403,664 - 4,403,664
Interest on the total pension liability 16,958,814 - 16,958,814 Differences between actual and expected experience (1,366,753) - (1,366,753) Changes in assumptions - - -
Changes in benefit terms - - -
Plan to plan resource movement - - -
Contribution - employer - 7,072,583 (7,072,583)
Contribution - employee (paid by employer) - 1,918,767 (1,918,767) Net investment income - 8,526,757 (8,526,757)
Administrative expenses - (239,113) 239,113
Other Miscellaneous Income/(Expense) - - -
Benefit payments, including refunds of employee
contributions (11,727,761) (11,727,761) -
Net changes 8,267,964 5,551,233 2,716,731
Balance at June 30, 2020 $250,482,970 $175,164,455 $75,318,515 152
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 89 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
C. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City of Visalia for each Plan, calculated using the discount rate for each Plan, as well as what the City of Visalia’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Safety Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 $247,175,635 $184,567,232 $62,608,403 Changes in the year:

Service cost 6,324,588 - 6,324,588
Interest on the total pension liability 17,437,680 - 17,437,680 Differences between actual and expected experience (1,240,319) - (1,240,319) Changes in assumptions - - -
Changes in benefit terms - - -
Plan to plan resource movement - - -
Contribution - employer - 8,928,558 (8,928,558)
Contribution - employee (paid by employer) - 2,142,637 (2,142,637) Net investment income - 9,341,900 (9,341,900)
Administrative expenses - (260,195) 260,195
Other Miscellaneous Income/(Expense) - - -
Benefit payments, including refunds of employee
contributions (10,427,951) (10,427,951) -
Net changes 12,093,998 9,724,949 2,369,049
Balance at June 30, 2020 $259,269,633 $194,292,181 $64,977,452 Miscellaneous Safety Total
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability $108,477,687 $102,968,552 $211,446,239 Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability $75,318,515 $64,977,452 $140,295,967 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability $47,892,855 $34,049,132 $81,941,987 153
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 90 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
C. Changes in the Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City of Visalia recognized pension expense of $22,198,657. At June 30, 2021, the City of Visalia reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$17,733,134 ($7,688,286 related to the Miscellaneous Plan and $10,044,848 related to the Safety Plan) 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $7,688,286 $ - Differences between expected and actual experience 1,122,512 (1,034,912) Changes in assumptions - (264,470)
Net differences between projected and actual earnings
on plan investments 1,294,054 -
Total $10,104,852 ($1,299,382)
Safety Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $10,044,848 $ - Differences between expected and actual experience 1,879,955 (1,794,322) Changes in assumptions 1,730,358 (459,521)
Net differences between projected and actual earnings
on plan investments 1,589,438 -
Total $15,244,599 ($2,253,843)
Grand Total $25,349,451 ($3,553,225)
154
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 91 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Expected Average Remaining Service Lifetime (EARSL) – Miscellaneous Plan – The EARSL for the plan for the measurement period ending June 30, 2020 is 3.6 years, which was obtained by dividing the total service years of 4,140 (the sum of remaining service lifetimes of the active employees) by 1,153 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Expected Average Remaining Service Lifetime (EARSL) – Safety Plan – The EARSL for the plan for the measurement period ending June 30, 2020 is 4.7 years, which was obtained by dividing the total service years of 2,652 (the sum of remaining service lifetimes of the active employees) by 566 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

E. Payable to the Pension Plan
At June 30, 2021, the City of Visalia did not report a payable for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021 as there were none outstanding.

F. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death, or in an emergency as defined by the plan.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

The City has a contract with International City Managers’ Association (ICMA), Empower, and CalPERS to manage and invest the assets of the plan; all pool the assets of the plan with those of other participants and do not make separate investments for employees.

Miscellaneous Plan: Safety Plan:

Year Ended Annual Year Ended Annual
June 30 Amortization June 30 Amortization
2021 ($689,708) 2021 $517,660
2022 473,400 2022 725,683
2023 637,497 2023 1,117,743
2024 695,995 2024 584,822
Total $1,117,184 Total $2,945,908
155
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 92 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
G. Accrued Personnel Costs
Accrued personnel costs are costs that are related to payroll withholdings such as PERS contributions, supplemental life insurance, medical and dependent care flexible spending accounts, and union dues just to name a few.

H. Postemployment Health Care Benefits
City Policy permits retirees access to the City’s health plan but at a cost determined each year by the City. The specific language of Policy 301 is “Retirees and their dependents are eligible for medical and vision benefits at a cost determined each year by the City. “
As of June 30, 2021, 51 retirees are participating in the City’s health plan at full cost. Of these retirees 21 have dependent coverage. The full cost is up to $1,211 per month for retiree and is up to an additional $1,211 for their spouse. Family coverage is also available for an additional $605 per month for a total family PPO premium up to $3,027 per month fully funded by the retiree.

As an alternative, the City also offers retirees access to the City’s high deductible health plan at a premium cost up to $983 per month for the retiree and an additional $983 for spouse. Family coverage is available for a total of $2,459 per month.

I. Defined Contribution for Retiree Health Care
In 2011, the City adopted Resolution 2011-17 establishing the phase out of City subsidy to retiree health care cost by 2019. The guidelines included an additional 10 years to phase out the City’s subsidy for qualifying retirees so that all retirees pay full cost by 2029. A qualified retiree is defined as having a household income less than the Federal Social Security Earnings Limit and either a CalPERS Disability Retirement or 15 years of service with Visalia and eligible for Medicare.

Five retirees qualified for the 2021 reduced rate, all are enrolled as retirees only. The retiree cost is up to $847 per month with the City subsidizing up to $856 per month. Qualified retirees must re-certify every year to qualify for the subsidy. A portion of the City’s subsidy will transition to the retiree each year until the qualified retirees are paying full cost in 2029 or they no longer qualify for this provision.

For fiscal year 2020-2021, the City’s Retiree Health Care Contribution was approximately $63,504.

NOTE 11 – RISK MANAGEMENT
A. Coverage
The City self-insures workers’ compensation claims. The City retains or self-insures the first $1,000,000 of claims and purchases insurance above the $1,000,000 self-retention to $25,000,000. The program is administered by a third party.

The City has public employee dishonesty insurance with a $100,000 deductible and coverage up to $5,000,000 per loss. The City’s property and machinery insurance has various deductibles and various coverages based on the kind of machinery. During the past four years there have been no significant reductions in any of the City’s insurance coverage and no settlement amounts have exceeded insurance coverage.

The City currently provides three medical plan options for employees and retirees: a Preferred Provider Plan (PPO), an Exclusive Provider (EPO) and a High Deductible Plan (HD). The City provides medical benefits through an insurance 156
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 93 Notes to the Financial Statements
NOTE 11 – RISK MANAGEMENT (Continued)
A. Coverage (Continued)
pool, Excess Insurance Authority – Health (EIA – Health) which in turn participates in a larger pool, Self-Insured Schools of California (SISC). The insurance pool is responsible for maintaining a reserve for incurred but not reported claims. The City retains an equity share in the assets and liabilities of both pools.

The City provides dental and vision coverage to employees through programs which are administered by a third party service agent. The City is self-insured for the dental and vision coverage. The City’s dental and vision liability is calculated based upon the historical lag between when a claim is incurred and the time it takes to be paid.

Historically, 2 months of claims remain in the system at any given time. The City calculated the estimated incurred but not reported (IBNR) claim s by averaging the yearly claims and multiplying by 2.

The City is a member of the Authority for California Cities Excess Liability (ACCEL), a joint powers authority, which provides general liability coverage up to $50,000,000 ultimate net loss per occurrence. The City retains the risk for the first $1,000,000 in losses for each occurrence under this policy.

ACCEL was established for the purpose of creating a risk management pool for California municipalities. ACCEL is governed by a Board of Directors consisting of representatives of its member cities. The board controls the operations of ACCEL, including selection of management and approval of the annual budget.

The City’s deposits with ACCEL are calculated based on the ratio of the City’s payroll to the total payrolls of all entities, the losses of all members and the City’s experience rate. 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.

During the fiscal year ended June 30, 2020, the City contributed $553,962 to ACCEL for current year coverage. ACCEL audited financial statements are available from Alliant Insurance Services at 100 Pine Street, Eleventh Floor, San Francisco, California 94111.

B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Risk Management Internal Service Fund.

Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City’s liability for uninsured claims is limited to general liability claims, as discussed above, and was estimated by management based on the fact that claims must be filed with the City within 6 months of the claim’s occurrence.

Incurred but not reported (IBNR) claims are estimated by taking the previous 5 year’s average claim experience for a year and multiplying by .5 (6 month/12 months).

Changes in the balances of claim liabilities during the past three years are as follows:

Beginning Current Year End
of Year Claims & Changes Claim of Year Due Within
Liability in Estimates Payments Liability One Year
2018-19 $ 5,897,578 $ 2,979,449 $ (2,271,707) $ 6,605,420 $ 718,628 2019-20 6,605,420 3,168,120 (2,554,102) 7,219,438 841,499 2020-21 7,219,438 4,297,344 (2,687,882) 8,828,900 1,614,142 157
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 94 Notes to the Financial Statements
NOTE 12 - CONTINGENT LIABILITIES AND COMMITMENTS
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

The City enters into various agreements to reimburse developers for street construction necessary for the City’s circulation element. These improvements are paid for from transportation impact fees. As of June 30, 2021, the City had entered into $1,202,061 in agreements for projects that had not been started and would only be paid for from future impact fees.

At June 30, 2021, the City had made commitments of approximately $16.5 million for outstanding construction projects and open purchase orders.

The City participates in Federal and State grant programs. These programs are subject to audit by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act of 1984 and applicable State requirements. No material cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

NOTE 13 – SUBSEQUENT EVENTS
Subsequent events have been evaluated through December 29, 2021, which is the date the basic financial statements were available to be issued are there are no notable events to report.

NOTE 14 – PRIOR PERIOD ADJUSTMENTS
NOTE 15 – TRANSACTIONS WITH RELATED PARTIES
The related party transactions of the City are summarized as follows:

Governmental Funds:

Housing & Community Grants
Beginning Balance as Previously Reported $ 1,641,875
Adjustment due to error when unavailable revenue was booked 12,697,529 Beginning Balance as Restated $ 14,339,404
Housing Successor Agency
Beginning Balance as Previously Reported $ 2,032,519
Adjustment due to error when unavailable revenue was recorded 8,276,601 Beginning Balance as Restated $ 10,309,120
Governmental Activities Net Position
Beginning Balance as Previously Reported $ 469,201,198
Adjustment due to booking of an asset in 18/19 in error (1,725,691) Beginning Balance as Restated $ 467,475,507
Fiduciary Fund:

Custodial Funds Net Position
Beginning Balance as Previously Reported $ -
Implementation of GASB 84 291,716
Beginning Balance, as Restated $ 291,716
Other Related Party Transactions Related Parties
Amount for the Year
Ended June 30, 2021
Downtown Visalians City Council Member $ 702,116
158
95 REQUIRED

SUPPLEMENTARY

INFORMATION
159
96 160
97 City of Visalia
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2021
Budget and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The biennial budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" covers substantially all City expenditures. There were no significant non-budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager is authorized to make transfers of budget appropriations between classifications and activities within a fund.

3. Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations, which are encumbered at year end, are added to the following year's budgeted appropriations. However, encumbrances at year end are reported as committed fund balance.

4. Budgets are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparison is presented for the American Rescue Plan fund, since no budgets were adopted for this fund, as this fund did not exist at the time the budget was adopted. No budgetary comparisons are presented for Proprietary Funds as the City is not legally required to adopt a budget for these types of funds.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2021, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies, to be used in future years without limitation. 161
98 The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales $ 30,688,600 $ 30,688,600 $ 38,986,517 $ 8,297,917 Property 25,990,300 25,990,300 27,884,766 1,894,466
Transient Occupancy 2,244,000 2,244,000 3,323,538 1,079,538 Franchise 2,626,000 2,626,000 2,795,357 169,357
Business License 2,482,000 2,482,000 3,088,633 606,633
Total Taxes 64,030,900 64,030,900 76,078,811 12,047,911 Subventions and Grants
Police and Other 473,700 913,282 2,105,004 1,191,722
Motor Vehicle License In-Lieu 65,000 65,000 101,690 36,690 Total Subventions and Grants 538,700 978,282 2,206,694 1,228,412 License and Permits
Other License and Permits 76,100 76,100 52,650 (23,450) Total License and Permits 76,100 76,100 52,650 (23,450) Fees and Fines
Vehicle Code and Parking Violations 713,800 713,800 389,983 (323,817) Local Ordinance Violations 441,200 441,200 614,632 173,432 Total Fees and Fines 1,155,000 1,155,000 1,004,615 (150,385) Use of Money and Property
Interest Earned 539,000 539,000 646,840 107,840
Rents and Concessions 250,200 250,200 155,398 (94,802)
Total Use of Money and Property 789,200 789,200 802,238 13,038 Charges for Services
Engineering and Subdivision Fees 697,300 697,300 1,159,020 461,720 Zoning Fees 191,700 191,700 220,703 29,003
Special Public Safety Services 1,201,300 1,201,300 1,254,866 53,566 Recreation Programs 1,422,000 1,422,000 139,695 (1,282,305) Total Charges for Services 3,512,300 3,512,300 2,774,284 (738,016) Other Revenue 1,358,200 1,358,200 1,343,028 (15,172)
Total Revenues 71,460,400 71,899,982 84,262,320 12,362,338 Budgeted Amounts
162
99 The accompanying notes are an integral part of these financial statements.

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (Continued) FOR THE YEAR ENDED JUNE 30, 2021

CITY OF VISALIA

EXPENDITURES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Current:

General Government $ 4,201,900 $ 4,141,900 $ 4,224,686 $ (82,786) Community Development 2,101,700 2,095,200 2,459,045 (363,845) Public Safety:

Fire 14,365,400 14,406,452 14,939,536 (533,084)
Police 33,985,900 33,958,335 34,129,014 (170,679)
Public Works 4,146,400 4,146,702 3,861,360 285,342
Community Services 8,433,000 8,332,598 6,018,543 2,314,055 Capital Outlay 234,900 1,504,874 1,624,975 (120,101)
Debt Service (Note 7)
Principal 32,600 32,600 - 32,600
Interest and Fiscal Charges 500 500 - 500
Total Expenditures 67,502,300 68,619,161 67,257,159 1,362,002 Excess (Deficiency) of
Revenues Over (Under) Expenditures 3,958,100 3,280,821 17,005,161 13,724,340 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets - - 3,450 3,450
Transfers In - - 148,524 148,524
Transfers Out - - (16,703,167) (16,703,167)
Total Other Financing Sources (Uses) - - (16,551,193) (16,551,193) Net Change in Fund Balance $ 3,958,100 $ 3,280,821 453,968 $ (2,826,853) Fund Balance Beginning of Year 52,691,729
Fund Balance - End of Year $ 53,145,697
Budgeted Amounts
163
100
The accompanying notes are an integral part of these financial statements.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - MEASURE N
FOR THE YEAR ENDED JUNE 30, 2021

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales $ 11,588,800 $ 11,588,800 $ 16,880,055 $ 5,291,255 Total Taxes 11,588,800 11,588,800 16,880,055 5,291,255
Subventions and Grants
Police and Other - - 29,556 29,556
Total Subventions and Grants - - 29,556 29,556
Use of Money and Property
Interest Earned 119,200 119,200 93,272 (25,928)
Total Use of Money and Property 119,200 119,200 93,272 (25,928) Other Revenue - - 109,321 109,321
Total Revenues 11,708,000 11,708,000 17,112,204 5,404,204

EXPENDITURES
Current:

General Government 268,700 268,700 219,236 49,464
Public Safety:

Fire 1,006,100 1,006,100 978,595 27,505
Police 4,100,700 4,100,700 4,293,747 (193,047)
Community Services 774,800 759,448 461,573 297,875
Capital Outlay 5,358,700 5,464,643 4,806,242 658,401
Total Expenditures 11,509,000 11,599,591 10,759,393 840,198 Net Change in Fund Balance $ 199,000 $ 108,409 6,352,811 $ 6,244,402 Fund Balance Beginning of Year 23,320,803
Fund Balance - End of Year $ 29,673,614
Budgeted Amounts
164
101
The accompanying notes are an integral part of these financial statements.

Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants $ 4,250,132 $ 3,217,871 $ (1,032,261) Fees and Fines 25,100 13,426 (11,674)
Uses of Money and Property 53,600 70,549 16,949
Charges for Current Services - 5,000 5,000
Miscellaneous 5,500 5,720 220
Total Revenues 4,334,332 3,312,566 (1,021,766)
Expenditures
Current:

Community Development 71,900 75,606 (3,706)
Housing & Community Grants 3,415,283 2,268,707 1,146,576 Capital Outlay 47,668 36,615 11,053
Total Expenditures 3,534,851 2,380,928 1,153,923
Excess (Deficiency) of
Revenue Over (Under) Expenditures 799,481 931,638 132,157 Other Financing Sources
Transfers In - 23,966 23,966
Total Other Financing Sources - 23,966 23,966
Net Changes in Fund Balance $ 799,481 955,604 $ 156,123 Fund Balance - Beginning of Year, as Restated (Note 14) 14,339,404 Fund Balance - End of Year $ 15,295,008

CITY OF VISALIA
FOR THE YEAR ENDED JUNE 30, 2021

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - HOUSING & COMMUNITY GRANTS 165
102
The accompanying notes are an integral part of these financial statements.

Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants $ - $ 424,130 $ 424,130
Uses of Money and Property 8,000 110,504 102,504
Miscellaneous - 195 195
Total Revenues 8,000 534,829 526,829
Expenditures
Current:

General Government 195,997 141,469 54,528
Total Expenditures 195,997 141,469 54,528
Excess (Deficiency) of
Revenue Over (Under) Expenditures (187,997) 393,360 581,357 Net Changes in Fund Balance $ (187,997) 393,360 $ 581,357 Fund Balance - Beginning of Year, as Restated (Note 14) 10,309,120 Fund Balance - End of Year $ 10,702,480
FOR THE YEAR ENDED JUNE 30, 2021

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - HOUSING SUCCESSOR AGENCY 166
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 103
Required Supplementary Information
Miscellaneous Plan
Measurement Period 2019-201 2018-191 2017-181 2016-171 2015-161 2014-151 2013-141

TOTAL PENSION LIABILITY
Service Cost $ 4,403,664 $ 4,255,037 $ 4,192,969 $ 4,245,437 $ 3,786,783 $ 3,692,092 $ 3,797,356 Interest 16,958,814 16,380,941 15,535,179 14,997,055 14,571,322 13,839,466 13,175,275 Changes of Benefit Terms - - - - - - -
Difference Between Expected and Actual Experience (1,366,753) 2,525,650 (286,874) (2,890,524) 431,303 (307,086) - Changes of Assumptions - - (1,586,819) 12,685,479 - (3,447,570) - Benefit Payments, Including Refunds of Employee Contributions (11,727,761) (10,795,043) (10,116,949) (9,515,763) (8,700,574) (8,186,347) (7,668,885) Net Change in Total Pension Liability 8,267,964 12,366,585 7,737,506 19,521,684 10,088,834 5,590,555 9,303,746 Total Pension Liability - Beginning 242,215,006 229,848,421 222,110,915 202,589,231 192,500,397 186,909,842 177,606,096 Total Pension Liability - Ending (a) $ 250,482,970 $ 242,215,006 $ 229,848,421 $ 222,110,915 $ 202,589,231 $ 192,500,397 $ 186,909,842

PLAN FIDUCIARY NET POSITION
Contributions - Employer $ 7,072,583 $ 6,219,874 $ 5,482,359 $ 5,129,632 $ 4,678,278 $ 4,077,411 $ 3,947,176 Contributions - Employee 1,918,767 1,845,020 1,850,278 1,781,007 1,733,983 1,747,629 1,809,951 Net Investment Income 8,526,757 10,604,879 12,914,267 15,518,122 742,388 3,174,848 21,053,194 Benefit Payments, Including Refunds of Employee Contributions (11,727,761) (10,795,043) (10,116,949) (9,515,763) (8,700,574) (8,186,347) (7,668,885) Net Plan to Plan Resource Movement - - (376) - - - -
Administrative Expense (239,113) (115,502) (237,501) (206,266) (86,138) (159,136) - Other Miscellaneous Income/(Expense)2 - 376 (451,018) - - - - Net Change in Fiduciary Net Position 5,551,233 7,759,604 9,441,060 12,706,732 (1,632,063) 654,405 19,141,436 Plan Fiduciary Net Position - Beginning3 169,613,222 161,853,618 152,412,558 139,705,826 141,337,889 140,683,484 121,542,048 Plan Fiduciary Net Position - Ending (b) $ 175,164,455 $ 169,613,222 $ 161,853,618 $ 152,412,558 $ 139,705,826 $ 141,337,889 $ 140,683,484 PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) $ 75,318,515 $ 72,601,784 $ 67,994,803 $ 69,698,357 $ 62,883,405 $ 51,162,508 $ 46,226,358 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 69.93% 70.03% 70.42% 68.62% 68.96% 73.42% 75.27% Covered Payroll 4 $ 25,424,314 $ 24,277,215 $ 23,451,102 $ 22,834,962 $ 22,149,078 $ 21,833,945 $ 20,653,520 Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 296.25% 299.05% 289.94% 305.23% 283.91% 234.33% 223.82% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available 2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes any begining of year adjustments.
4 Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occureed after the June 30, 2019 valuation.

However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent.

In 2016, there wereno 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, amounts reported were based on the 7.5 percent discount rate.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:
167
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 104
Required Supplementary Information
Safety Plan
Measurement Period 2019-201 2018-191 2017-181 2016-171 2015-161 2014-151 2013-141

TOTAL PENSION LIABILITY
Service Cost $ 6,324,588 $ 6,222,413 $ 5,995,204 $ 5,853,759 $ 5,349,411 $ 5,222,479 $ 5,100,652 Interest 17,437,680 16,600,696 15,464,636 14,715,002 14,186,919 13,269,691 12,494,891 Changes of Benefit Terms - - - - - - -
Difference Between Expected and Actual Experience (1,240,319) 3,326,073 (517,263) (4,891,206) 807,923 (373,500) - Changes of Assumptions - - (1,321,124) 13,266,074 - (3,509,871) - Benefit Payments, Including Refunds of Employee Contributions (10,427,951) (9,427,686) (8,593,404) (8,040,046) (7,578,069) (7,169,237) (6,653,993) Net Change in Total Pension Liability 12,093,998 16,721,496 11,028,049 20,903,583 12,766,184 7,439,562 10,941,550 Total Pension Liability - Beginning 247,175,635 230,454,139 219,426,090 198,522,507 185,756,323 178,316,761 167,375,211 Total Pension Liability - Ending (a) $ 259,269,633 $ 247,175,635 $ 230,454,139 $ 219,426,090 $ 198,522,507 $ 185,756,323 $ 178,316,761

PLAN FIDUCIARY NET POSITION
Contributions - Employer $ 8,928,558 $ 8,085,201 $ 7,221,051 $ 6,623,640 $ 6,259,154 $ 5,610,391 $ 5,703,922 Contributions - Employee 2,142,637 2,172,900 1,924,202 1,846,297 1,750,054 1,805,168 1,618,205 Net Investment Income 9,341,900 11,443,404 13,555,587 15,911,405 717,302 3,141,564 20,530,453 Benefit Payments, Including Refunds of Employee Contributions (10,427,951) (9,427,686) (8,593,404) (8,040,046) (7,578,069) (7,169,237) (6,653,993) Net Plan to Plan Resource Movement - - (400) - (9,962) - - Administrative Expense (260,195) (123,040) (247,809) (210,978) (86,447) (159,587) - Other Miscellaneous Income/(Expense)2 - 400 (470,593) - - - - Net Change in Fiduciary Net Position 9,724,949 12,151,179 13,388,634 16,130,318 1,052,032 3,228,299 21,198,587 Plan Fiduciary Net Position - Beginning3 184,567,232 172,416,053 159,027,419 142,897,101 141,845,069 138,616,770 117,418,183 Plan Fiduciary Net Position - Ending (b) $ 194,292,181 $ 184,567,232 $ 172,416,053 $ 159,027,419 $ 142,897,101 $ 141,845,069 $ 138,616,770 PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) $ 64,977,452 $ 62,608,403 $ 58,038,086 $ 60,398,671 $ 55,625,406 $ 43,911,254 $ 39,699,991 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 74.94% 74.67% 74.82% 72.47% 71.98% 76.36% 77.74% Covered Payroll 4 $ 21,283,546 $ 20,964,043 $ 20,176,300 $ 18,983,326 $ 18,638,048 $ 18,862,345 $ 17,363,328 Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 305.29% 298.65% 287.65% 318.17% 298.45% 232.80% 228.64% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available. 2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes any begining of year adjustments.
4 Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Notes to Schedule:

Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occureed after the June 30, 2019 valuation.

However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was 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, amounts reported were based on the 7.5 percent discount rate.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:
168
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 105
Required Supplementary Information
Miscellaneous Plan
Fiscal Year 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1 2015-16 1 2014-15 1 Actuarially Determined Contribution $ 7,688,286 $ 7,072,582 $ 6,220,510 $ 5,677,316 $ 5,117,894 $ 4,662,880 $ 4,346,353 Contributions in Relation to the Actuarially Determined Contribution (7,688,286) (7,072,582) (6,220,510) (5,677,316) (5,117,894) (4,662,880) (4,346,353) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 24,893,975 $ 25,424,314 $24,277,215 $23,451,102 $22,834,962 $22,149,078 $21,833,945 Contributions as a Percentage of Covered Payroll 30.88% 27.82% 25.62% 24.21% 22.41% 21.05% 19.91% Safety Plan
Fiscal Year 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1 2015-16 1 2014-15 1 Actuarially Determined Contribution $ 10,044,848 $ 8,928,610 $ 8,086,945 $ 7,478,672 $ 6,608,845 $ 6,256,147 $ 6,108,700 Contributions in Relation to the Actuarially Determined Contribution (10,044,848) (8,928,610) (8,086,945) (7,478,672) (6,608,845) (6,256,147) (6,108,700) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 21,973,912 $ 21,283,546 $20,964,043 $20,176,300 $18,983,326 $18,638,048 $18,862,345 Contributions as a Percentage of Covered Payroll 45.71% 41.95% 38.58% 37.07% 34.81% 33.57% 32.39% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED:
169
106
170
107

SUPPLEMENTARY

INFORMATION
171
108
172
109

NON- MAJOR GOVERNMENTAL FUNDS
173
110
174
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 111
Non-Major Governmental Funds

SPECIAL REVENUE FUNDS

WATERWAYS
Established to account for the acquisition and landscaping of development buffers along designated waterways. This is funded by monthly rates and development impact fees.

GROUNDWATER RECHARGE
Established to account for the costs of recharging the City’s underground water system. The funding is provided by monthly rates and development fees.

KAWEAH LAKE AND LOCAL STORMWATER MAINTENANCE
Established to account for the costs of adding to the water holding capacity of Lake Kaweah (a source of the City’s water) and was expanded to include the maintenance of local storm channels by a successful ballot election that concluded on March 18, 2013. The funding is provided by monthly rates and development fees.

SPECIAL SERVICE DISTRICTS
Established to account for the maintenance of landscape districts throughout the City. Revenue is collected from fees charged to property owners in the districts.

NORTHEAST AREA
Funded by fees collected on Northeast properties at the time of building permit issuance; monies can only be used for improvements specified in the Northeast Area Master Plan.

GRANT & LOAN FUNDS
Established to account for various funds receiving federal funding. Also established to account for the loans given to the City for low and moderate income housing assistance by the California Housing Finance Agency. Federal funding received provides for such activities as community policing, bicycle and foot patrol in business districts in the City of Visalia.

NARCOTICS FORFEITURE
Established to account for revenues received from narcotics seizures of cash and property as authorized by the Health and Safety Code. Monies deposited in this fund are invested until a court determines whether the City must forfeit the money or the City may recover narcotics law enforcement costs from the seized funds.

MEASURE T – POLICE
Established to account for increased Police operational and capital expenditures. Financing is provided by 60% of the ¼ cent sales tax ballot measure (T) approved by voters during the March 2, 2004, primary election. No sales tax funds can replace General Fund dollars budgeted for normal operations at the previous years’ service level unless the City Council declares an economic emergency by a 4/5ths vote.

MEASURE T – FIRE
Established to account for increased Fire operational and capital expenditures. Financing is provided by 40% of the ¼ cent sales tax ballot measure (T) approved by voters during the March 2, 2004, primary election. No sales tax funds can replace General Fund dollars budgeted for normal operations at the previous years’ service level unless the City Council declares an economic emergency by a 4/5ths vote.

MEASURE R – LOCAL
Established to account for the costs of specific local transportation projects and for its funding from a ¼ cent sales tax ballot measure (R) approved by the voters.

MEASURE R – REGIONAL
The Measure R Regional Fund is used to account for the costs of specific transportation projects and for its funding from a ¼ cent sales tax ballot measure (R) approved by the voters for regional, transit, bike and pedestrian projects.

TRANSPORTATION GRANTS
Established to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by ¼ cent of the 7 ¼ cent retail sales tax collected statewide and by Proposition 1B funds for streets and transit.
175
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 112
Non-Major Governmental Funds

GOLF COURSE
Established to account for the major repairs to buildings and equipment (ie heating/cooling equipment) located at the Golf Course. Revenue is collected through the lease of the Golf Course to Course Co.

CASP PROGRAM
Established to account for the additional $1 assessed to all business licenses as required by the State of California Senate Bill (SB) 1186. SB 1186 adds new rules and protections for business owners related to access compliance requirements set forth under the ADA, the California Building Code, and SB 1608.

OAK TREE PRESERVATION
Established to account for the activity of oak tree preservation and maintenance throughout the City. Revenue is collected from fees charged to property owners for removal of Oak Trees.

CONSERVATION
Established for energy conservation projects throughout the City. Revenue is collected from grants, reimbursements and incentives.

POLICE UNCLAIMED FUNDS
Established to track and account for police unclaimed funds. Revenue is collected from seized money and asset forfeiture.

DEBT SERVICE FUNDS
VPFA 2014 REFUNDING CERTIFICATES OF PARTICIPATION
Established to account for the payment of the VPFA 2014 Refunding Certificates of Participation. 2015 CERTIFICATES OF PARTICIPATION
Established to account for the payment of the 2015 Certificates of Participation.

CAPITAL PROJECTS FUNDS

TRANSPORTATION FUND
Established to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees.

SOFTBALL FACILITY DEVELOPMENT
Established to account for the financing and improvement and/or development of a community softball facility.

Financing is provided from fees charged to existing softball facility users specifically for future development or improvement.

HIGHWAY USERS
Established to account for the construction and improvement of streets and roads. Financing is provided by grant funds received from state sale taxes on gasoline.

RECREATIONAL FACILITIES
Established to account for the acquisition and development of park and open space. Financing is provided by fees paid by developers in lieu of providing parks and open space.

STORM SEWER CONSTRUCTION
Established to account for the acquisition and installation of storm drain systems. Financing is provided by a specific storm sewer fee charged to new developments.

PUBLIC SAFETY IMPACT FEE
Established to defray the costs of public safety facilities needed as a result of new development projects. Funding is provided by fees charged to new developments.
176
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 113
Non-Major Governmental Funds

GOVERNMENT FACILITIES IMPACT FEE
Established to defray the cost of public facilities (i.e., Civic Center, Corporation Yard, and Library) needed as a result of new development projects. Funding is provided by fees charged to new developments.

PARKING DISTRICT FUND
Established to account for acquisition and development of downtown parking facilities. Funding is provided by a specific fee charged on new development and expanded uses within the central business district. Therefore, it is not governed by a formal budget and its financial presentation reflects changes in assets and liabilities as well as the flow of resources.

FACILITY IMPROVEMENTS
Established to account for the maintenance and improvements to City facilities.

CIVIC CENTER
Established to account for the construction of the Civic Center and related capital improvement projects. Revenue is collected from land sales, one time monies such as incentive revenues and General Fund surplus or other transfers authorized by City Council.

SPORTS COMPLEX
Established to account for the construction of the sports complex.

ANIMAL CONTROL RESERVE
Established to account for the construction of the Animal Control Facility. 177
114

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2021

CITY OF VISALIA
Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
Service
Districts
Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police
ASSETS
Cash and Investments $ 3,323,933 $ 2,953,254 $ 636,332 $ 12,086,633 $ 666,621 $ 119,639 $ 729,627 $ 4,057,256 Restricted Cash and Investments - - - - - - - -
Accounts Receivable 39,013 103,731 41,432 6,953 11,999 - - - Taxes Receivable - 189,434 - 168,770 - 4,083 2,675 996,250 Notes and Loans Receivable 163,369 - - - - - - -
Inventory - 85,031 - - - - - -
Due from Other Governmental Units - - - - - - - -
Total Assets $ 3,526,315 $ 3,331,450 $ 677,764 $ 12,262,356 $ 678,620 $ 123,722 $ 732,302 $ 5,053,506

LIABILITIES
Accounts, Interest and Contracts Payable $ 34,191 $ 16,766 $ - $ 481,812 $ - $ 608 $ - $ 1,308 Advance from Other Funds - - - 963,198 - - - -
Customer Deposits - - - - - - 274,048 -
Unearned Revenue - 85,031 - - - - - -
Total Liabilities 34,191 101,797 - 1,445,010 - 608 274,048 1,308

DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - - - 448,828 -
Impact Fees - - - - 11,999 - - -
Notes 163,368 - - - - - - -
Total Deferred Inflows of Resources 163,368 - - - 11,999 - 448,828 -

FUND BALANCES
Restricted 3,328,756 3,229,653 677,764 10,817,346 666,621 123,114 9,426 5,052,198 Committed - - - - - - - -
Unassigned - - - - - - - -
Total Fund Balances (Deficit) 3,328,756 3,229,653 677,764 10,817,346 666,621 123,114 9,426 5,052,198 $ 3,526,315 $ 3,331,450 $ 677,764 $ 12,262,356 $ 678,620 $ 123,722 $ 732,302 $ 5,053,506 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS
178
115

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
COMBINING BALANCE SHEETS (Continued)
Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
Golf
Course
CASP
Program
Oak Tree
Preservation Conservation
ASSETS
Cash and Investments $ 5,242,815 $ 6,883,405 $ 5,374 $ 1,463,922 $ 80,531 $ 356,379 $ 278,256 $ 248,535 Restricted Cash and Investments - - - - - - - -
Accounts Receivable 1,440 - - - 450 - - -
Taxes Receivable 664,167 631,046 1,317,781 1,458,911 - - - - Notes and Loans Receivable - - - - - - - -
Inventory - - - - - - - -
Due from Other Governmental Units - - - 2,031,848 - - - - Total Assets $ 5,908,422 $ 7,514,451 $ 1,323,155 $ 4,954,681 $ 80,981 $ 356,379 $ 278,256 $ 248,535

LIABILITIES
Accounts, Interest and Contracts Payable $ 18,652 $ 477,752 $ 76,379 $ 324,736 $ 80 $ 3,365 $ - $ - Advance from Other Funds - - 521,921 - - - - -
Customer Deposits - - - - - - - -
Unearned Revenue - - - - - - - -
Total Liabilities 18,652 477,752 598,300 324,736 80 3,365 - -

DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - - - - -
Impact Fees - - - - - - - -
Notes - - - - - - - -
Total Deferred Inflows of Resources - - - - - - - -

FUND BALANCES
Restricted 5,889,770 7,036,699 724,855 4,629,945 80,901 353,014 - - Committed - - - - - - 278,256 248,535
Unassigned - - - - - - - -
Total Fund Balances (Deficit) 5,889,770 7,036,699 724,855 4,629,945 80,901 353,014 278,256 248,535 $ 5,908,422 $ 7,514,451 $ 1,323,155 $ 4,954,681 $ 80,981 $ 356,379 $ 278,256 $ 248,535 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS
179
116

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
COMBINING BALANCE SHEETS (Continued)

SPECIAL

REVENUE
FUNDS
Police Unclaimed
Funds
VPFA 2014
Refunding
Certificates of
Participation
2015
Certificates of
Participation Transportation
Softball
Facility
Development
Highway
Users
Recreational
Facilities
Storm Sewer
Construction
ASSETS
Cash and Investments $ 225,631 $ - $ - $ 17,242,972 $ 1,134 $ 10,371,881 $ 6,584,099 $ 3,276,732 Restricted Cash and Investments - - 8,670 - - - - -
Accounts Receivable - - - 2,612,933 - - 408,352 83,728
Taxes Receivable - - - - - 250,558 - 15,823
Notes and Loans Receivable - - - 814,589 - - - 4,892
Inventory - - - - - - - -
Due from Other Governmental Units - - - - - - - -
Total Assets $ 225,631 $ - $ 8,670 $ 20,670,494 $ 1,134 $ 10,622,439 $ 6,992,451 $ 3,381,175

LIABILITIES
Accounts, Interest and Contracts Payable $ 582 $ 2,224 $ 28,865 $ 2,838,413 $ - $ 247,751 $ 13,865 $ - Advance from Other Funds - - - - - - - -
Customer Deposits 47,417 - - - - - - -
Unearned Revenue 110,479 - - - - - - -
Total Liabilities 158,478 2,224 28,865 2,838,413 - 247,751 13,865 -

DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - - - - -
Impact Fees - - - 1,470,816 - - 408,352 23,240
Notes - - - 814,589 - - - 4,892
Total Deferred Inflows of Resources - - - 2,285,405 - - 408,352 28,132

FUND BALANCES
Restricted - - 8,670 15,546,676 1,134 10,374,688 6,570,234 3,353,043 Committed 67,153 - - - - - - -
Unassigned - (2,224) (28,865) - - - - -
Total Fund Balances (Deficit) 67,153 (2,224) (20,195) 15,546,676 1,134 10,374,688 6,570,234 3,353,043 $ 225,631 $ - $ 8,670 $ 20,670,494 $ 1,134 $ 10,622,439 $ 6,992,451 $ 3,381,175

DEBT SERVICE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CAPITAL PROJECT FUNDS
180
117

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
COMBINING BALANCE SHEETS (Continued)
Public Safety
Impact Fee
Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Civic Center Sports Complex
Animal Control
Reserve
Total
Non-major
Governmental
Funds
ASSETS
Cash and Investments $ 287,141 $ 7,855,034 $ 3,880,123 $ 784,449 $ 32,738,468 $ 577,663 $ 251,974 $ 123,209,813 Restricted Cash and Investments - - - - - - - 8,670
Accounts Receivable 290,555 183,990 2,737 - - - - 3,787,313 Taxes Receivable - - - - - - - 5,699,498
Notes and Loans Receivable 66,638 117,201 133,943 - 133,665 - - 1,434,297 Inventory - - - - - - - 85,031
Due from Other Governmental Units - - - - - - - 2,031,848 Total Assets $ 644,334 $ 8,156,225 $ 4,016,803 $ 784,449 $ 32,872,133 $ 577,663 $ 251,974 $ 136,256,470

LIABILITIES
Accounts, Interest and Contracts Payable $ 19 $ - $ 69 $ - $ - $ - $ - $ 4,567,437 Advance from Other Funds - 59,659 - - - - - 1,544,778
Customer Deposits - - 56,355 - - - - 377,820
Unearned Revenue - - - - - - - 195,510
Total Liabilities 19 59,659 56,424 - - - - 6,685,545

DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - - - - 448,828
Impact Fees 290,555 183,992 - - - - - 2,388,954
Notes 66,637 117,201 6,533 - 133,665 - - 1,306,885
Total Deferred Inflows of Resources 357,192 301,193 6,533 - 133,665 - - 4,144,667

FUND BALANCES
Restricted 287,123 7,795,373 3,953,846 - - - - 90,510,849 Committed - - - 784,449 32,738,468 577,663 251,974 34,946,498 Unassigned - - - - - (31,089)
Total Fund Balances (Deficit) 287,123 7,795,373 3,953,846 784,449 32,738,468 577,663 251,974 125,426,258 $ 644,334 $ 8,156,225 $ 4,016,803 $ 784,449 $ 32,872,133 $ 577,663 $ 251,974 $ 136,256,470

CAPITAL PROJECT FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
181
118

CITY OF VISALIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021

NON-MAJOR GOVERNMENTAL FUNDS
Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
Service
Districts
Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ - $ - $ 5,062,419
Other Taxes - - - - - - - -
Subventions and Grants - - - - - 329,437 - 18,496
License and Permits - - - - - - - -
Fees and Fines 452,917 1,189,999 334,219 - 7,107 - - -
Uses of Money and Property 19,574 10,754 3,097 15,957 2,870 584 - 13,759 Charges for Current Services 307,007 - - 4,933,991 - - - - Miscellaneous 3,688 - - 19,622 - - 88,932 127,981
Total Revenues 783,186 1,200,753 337,316 4,969,570 9,977 330,021 88,932 5,222,655

EXPENDITURES
Current:

General Government - - - - - - - -
Community Development - - - - - - - -
Public Safety:

Fire - - - - - - - -
Police - - - - - 280,715 19,910 3,696,282
Public Works 381,217 288,296 18,677 - 1,522 - - -
Community Services - - - 3,159,083 - - - -
Capital Outlay 39,916 222,138 - - 84,672 36,853 69,022 - Debt Service:

Principal Repayment - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 421,133 510,434 18,677 3,159,083 86,194 317,568 88,932 3,696,282 Excess (Deficiency) of
Revenues Over (Under) Expenditures 362,053 690,319 318,639 1,810,487 (76,217) 12,453 - 1,526,373

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - (300,000) - - (127,545) - (151,477)
Total Other Financing Sources (Uses) - - (300,000) - - (127,545) - (151,477) Net Changes in Fund Balance 362,053 690,319 18,639 1,810,487 (76,217) (115,092) - 1,374,896 Fund Balance - Beginning of
Year (Deficits) 2,966,703 2,539,334 659,125 9,006,859 742,838 238,206 9,426 3,677,302 Fund Balance (Deficits) - End of Year $ 3,328,756 $ 3,229,653 $ 677,764 $ 10,817,346 $ 666,621 $ 123,114 $ 9,426 $ 5,052,198

SPECIAL REVENUE FUNDS
182
119

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
Golf
Course
CASP
Program
Oak Tree
Preservation Conservation

REVENUES
Sales Taxes $ 3,374,946 $ 3,400,598 $ 3,221,666 $ - $ - $ - $ - $ - Other Taxes - - - - - 82,252 - -
Subventions and Grants 20 - - 5,961,845 - - - -
License and Permits - - - - - - - -
Fees and Fines - - - - 132,165 - 17,626 -
Uses of Money and Property 19,971 25,244 123 5,407 227 1,224 1,102 1,006 Charges for Current Services 37,790 - - - - - - -
Miscellaneous 8,732 188 35,762 49,161 - 72 - -
Total Revenues 3,441,459 3,426,030 3,257,551 6,016,413 132,392 83,548 18,728 1,006

EXPENDITURES
Current:

General Government - - - - - - - -
Community Development - - - - - 6,028 - -
Public Safety:

Fire 2,755,334 - - - - - - -
Police - - - - - - - -
Public Works - 30,719 34,092 247 - - - -
Community Services - - - - 55,190 - 13,301 58
Capital Outlay - 1,877,579 2,055,250 3,960,567 13,223 - - - Debt Service:

Principal Repayment - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 2,755,334 1,908,298 2,089,342 3,960,814 68,413 6,028 13,301 58 Excess (Deficiency) of
Revenues Over (Under) Expenditures 686,125 1,517,732 1,168,209 2,055,599 63,979 77,520 5,427 948

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Changes in Fund Balance 686,125 1,517,732 1,168,209 2,055,599 63,979 77,520 5,427 948 Fund Balance - Beginning of
Year (Deficits) 5,203,645 5,518,967 (443,354) 2,574,346 16,922 275,494 272,829 247,587 Fund Balance (Deficits) - End of Year $ 5,889,770 $ 7,036,699 $ 724,855 $ 4,629,945 $ 80,901 $ 353,014 $ 278,256 $ 248,535

SPECIAL REVENUE FUNDS
183
120

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2021

SPECIAL

REVENUE
FUNDS
Police Unclaimed
Funds
VPFA 2014
Refunding
Certificates of
Participation
2015
Certificates of
Participation Transportation
Softball
Facility
Development
Highway
Users
Recreational
Facilities
Storm Sewer
Construction

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - - - -
Subventions and Grants - - - - - 5,643,371 - -
License and Permits - - - - - - - -
Fees and Fines - - - 6,082,044 - - 2,182,136 1,195,323
Uses of Money and Property 955 - 5 60,762 4 36,990 21,928 12,055 Charges for Current Services - - - - - - - -
Miscellaneous 11,263 - - 5,767 - 210 - -
Total Revenues 12,218 - 5 6,148,573 4 5,680,571 2,204,064 1,207,378

EXPENDITURES
Current:

General Government - 3,040 - - - - -
Community Development - - - - - - - -
Public Safety:

Fire - - - - - - - -
Police 54 - - - - - - -
Public Works - - - 26,762 - 630,493 - 29,757
Community Services - - - - 2 - 28,511 -
Capital Outlay 60,188 - - 1,282,520 - 2,799,890 182,945 115,353 Debt Service:

Principal Repayment - 98,400 783,904 - - - - -
Interest and Fiscal Charges - 28,782 368,546 - - - - -
Total Expenditures 60,242 127,182 1,155,490 1,309,282 2 3,430,383 211,456 145,110 Excess (Deficiency) of
Revenues Over (Under) Expenditures (48,024) (127,182) (1,155,485) 4,839,291 2 2,250,188 1,992,608 1,062,268

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - - - -
Transfers In - 127,504 1,158,703 - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - 127,504 1,158,703 - - - - Net Changes in Fund Balance (48,024) 322 3,218 4,839,291 2 2,250,188 1,992,608 1,062,268 Fund Balance - Beginning of
Year (Deficits) 115,177 (2,546) (23,413) 10,707,385 1,132 8,124,500 4,577,626 2,290,775 Fund Balance (Deficits) - End of Year $ 67,153 $ (2,224) $ (20,195) $ 15,546,676 $ 1,134 $ 10,374,688 $ 6,570,234 $ 3,353,043 DEBT

SERVICE

FUNDS CAPITAL PROJECTS FUNDS
184
121

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Public Safety
Impact Fee
Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Civic Center Sports Complex
Animal Control
Reserve
Total
Non-major
Governmental
Funds

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ - $ - $ 15,059,629
Other Taxes - - - - - - - 82,252
Subventions and Grants - - 33,862 - - - - 11,987,031
License and Permits - - 20,382 - - - - 20,382
Fees and Fines 887,761 765,064 - - - - - 13,246,361
Uses of Money and Property 562 30,269 22,204 3,176 86,553 2,340 1,020 399,722 Charges for Current Services - - - - - - - 5,278,788
Miscellaneous - - - - 3,010 - - 354,388
Total Revenues 888,323 795,333 76,448 3,176 89,563 2,340 1,020 46,428,553

EXPENDITURES
Current:

General Government - 16,490 - 184 4,702 136 59 24,611
Community Development - - 11,471 - - - - 17,499
Public Safety:

Fire 4,064 - - - - - - 2,759,398
Police 533 - - - - - - 3,997,494
Public Works - 1,822 - - - - - 1,443,604
Community Services - - - - - - - 3,256,145
Capital Outlay 2,189 - 3,330 - 19,718 4,387 - 12,829,740 Debt Service:

Principal Repayment - - - - - - - 882,304
Interest and Fiscal Charges - - - - - - - 397,328
Total Expenditures 6,786 18,312 14,801 184 24,420 4,523 59 25,608,123 Excess (Deficiency) of
Revenues Over (Under) Expenditures 881,537 777,021 61,647 2,992 65,143 (2,183) 961 20,820,430

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - 1,027,945 - - 1,027,945
Transfers In - - - - 12,241,231 - - 13,527,438
Transfers Out (415,167) - - - - - - (994,189)
Total Other Financing Sources (Uses) (415,167) - - - 13,269,176 - - 13,561,194 Net Changes in Fund Balance 466,370 777,021 61,647 2,992 13,334,319 (2,183) 961 34,381,624 Fund Balance - Beginning of
Year (Deficits) (179,247) 7,018,352 3,892,199 781,457 19,404,149 579,846 251,013 91,044,634 Fund Balance (Deficits) - End of Year $ 287,123 $ 7,795,373 $ 3,953,846 $ 784,449 $ 32,738,468 $ 577,663 $ 251,974 $ 125,426,258

CAPITAL PROJECTS FUNDS
185
122
FOR THE YEAR ENDED JUNE 30, 2021

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
`
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines 506,000 452,917 (53,083) 1,073,300 1,189,999 116,699 Uses of Money and Property 5,300 19,574 14,274 1,600 10,754 9,154 Charges for Current Services 309,200 307,007 (2,193) - - - Miscellaneous - 3,688 3,688 - - -
Total Revenues 820,500 783,186 (37,314) 1,074,900 1,200,753 125,853

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - 381,217 (381,217) 297,300 288,296 9,004
Community Services 554,282 - 554,282 - - -
Capital Outlay 1,107,855 39,916 1,067,939 829,644 222,138 607,506 Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 1,662,137 421,133 1,241,004 1,126,944 510,434 616,510 Excess (Deficiency) of
Revenues Over (Under) Expenditures (841,637) 362,053 1,203,690 (52,044) 690,319 742,363

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ (841,637) 362,053 $ 1,203,690 $ (52,044) 690,319 $ 742,363 Fund Balances - Beginning of
Year (Deficits) 2,966,703 2,539,334
Fund Balances - End of Year (Deficits) $ 3,328,756 $ 3,229,653 Waterways Groundwater Recharge
186
123

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines 290,000 334,219 44,219 - - -
Uses of Money and Property 3,000 3,097 97 3,000 15,957 12,957 Charges for Current Services - - - 4,840,400 4,933,991 93,591 Miscellaneous - - - - 19,622 19,622
Total Revenues 293,000 337,316 44,316 4,843,400 4,969,570 126,170

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works 21,200 18,677 2,523 - - -
Community Services - - - 3,264,800 3,159,083 105,717
Capital Outlay - - - - - -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 21,200 18,677 2,523 3,264,800 3,159,083 105,717 Excess (Deficiency) of
Revenues Over (Under) Expenditures 271,800 318,639 46,839 1,578,600 1,810,487 231,887

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - (300,000) (300,000) - - -
Total Other Financing Sources (Uses) - (300,000) (300,000) - - - Net Changes in Fund Balance $ 271,800 18,639 $ (253,161) $ 1,578,600 1,810,487 $ 231,887 Fund Balances - Beginning of
Year (Deficits) 659,125 9,006,859
Fund Balances - End of Year (Deficits) $ 677,764 $ 10,817,346 Kaweah Lake and
Local Storm Water Maintenance Special Service Districts 187
124

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
`
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - 329,437 329,437 -
License and Permits - - - - - -
Fees and Fines 82,500 7,107 (75,393) - - -
Uses of Money and Property 3,700 2,870 (830) - 584 584
Charges for Current Services - - - - - -
Miscellaneous - - - - - -
Total Revenues 86,200 9,977 (76,223) 329,437 330,021 584

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - 298,139 280,715 17,424
Public Works 1,400 1,522 (122) - - -
Community Services - - - - - -
Capital Outlay - 84,672 (84,672) - 36,853 (36,853)
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 1,400 86,194 (84,794) 298,139 317,568 (19,429) Excess (Deficiency) of
Revenues Over (Under) Expenditures 84,800 (76,217) (161,017) 31,298 12,453 (18,845)

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - (127,545) (127,545)
Total Other Financing Sources (Uses) - - - - (127,545) (127,545) Net Changes in Fund Balance $ 84,800 (76,217) $ (161,017) $ 31,298 (115,092) $ (146,390) Fund Balances - Beginning of
Year (Deficits) 742,838 238,206
Fund Balances - End of Year (Deficits) $ 666,621 $ 123,114 Northeast Area Grant & Loan Funds
188
125

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ 3,448,100 $ 5,062,419 $ 1,614,319 Other Taxes - - - - - -
Subventions and Grants - - - 6,000 18,496 12,496
License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property - - - 26,000 13,759 (12,241) Charges for Current Services - - - - - -
Miscellaneous 105,000 88,932 (16,068) 33,700 127,981 94,281 Total Revenues 105,000 88,932 (16,068) 3,513,800 5,222,655 1,708,855

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police 155,000 19,910 135,090 3,966,700 3,696,282 270,418 Public Works - - - - - -
Community Services - - - - - -
Capital Outlay - 69,022 (69,022) - - -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 155,000 88,932 66,068 3,966,700 3,696,282 270,418 Excess (Deficiency) of
Revenues Over (Under) Expenditures (50,000) - 50,000 (452,900) 1,526,373 1,979,273

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - (151,477) 151,477
Total Other Financing Sources (Uses) - - - - (151,477) 151,477 Net Changes in Fund Balance $ (50,000) - $ 50,000 $ (452,900) 1,374,896 $ 2,130,750 Fund Balances - Beginning of
Year (Deficits) 9,426 3,677,302
Fund Balances - End of Year (Deficits) $ 9,426 $ 5,052,198 Narcotics Forfeiture Measure T - Police
189
126

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ 2,298,800 $ 3,374,946 $ 1,076,146 $ 2,677,500 $ 3,400,598 $ 723,098 Other Taxes - - - - - -
Subventions and Grants - 20 20 - - -
License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property 82,000 19,971 (62,029) 12,600 25,244 12,644 Charges for Current Services 25,000 37,790 12,790 - - - Miscellaneous 73,800 8,732 (65,068) - 188 188
Total Revenues 2,479,600 3,441,459 961,859 2,690,100 3,426,030 735,930

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire 2,941,600 2,755,334 186,266 - - -
Police - - - - - -
Public Works - - - - 30,719 (30,719)
Community Services - - - - - -
Capital Outlay - - - 2,002,176 1,877,579 124,597
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 2,941,600 2,755,334 186,266 2,002,176 1,908,298 93,878 Excess (Deficiency) of
Revenues Over (Under) Expenditures (462,000) 686,125 1,148,125 687,924 1,517,732 829,808

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ (462,000) 686,125 $ 1,148,125 $ 687,924 1,517,732 $ 829,808 Fund Balances - Beginning of
Year (Deficits) 5,203,645 5,518,967
Fund Balances - End of Year (Deficits) $ 5,889,770 $ 7,036,699 Measure T - Fire Measure R - Local
190
127

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ 710,700 $ 3,221,666 $ 2,510,966 $ - $ - $ - Other Taxes - - - - - -
Subventions and Grants - - - 1,200,000 5,961,845 4,761,845 License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property - 123 123 - 5,407 5,407
Charges for Current Services - - - - - -
Miscellaneous - 35,762 35,762 - 49,161 49,161
Total Revenues 710,700 3,257,551 2,546,851 1,200,000 6,016,413 4,816,413

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - 34,092 (34,092) - 247 (247)
Community Services - - - - - -
Capital Outlay 6,372,561 2,055,250 4,317,311 4,458,439 3,960,567 497,872 Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 6,372,561 2,089,342 4,283,219 4,458,439 3,960,814 497,625 Excess (Deficiency) of
Revenues Over (Under) Expenditures (5,661,861) 1,168,209 6,830,070 (3,258,439) 2,055,599 5,314,038

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ (5,661,861) 1,168,209 $ 6,830,070 $ (3,258,439) 2,055,599 $ 5,314,038 Fund Balances - Beginning of
Year (Deficits) (443,354) 2,574,346
Fund Balances - End of Year (Deficits) $ 724,855 $ 4,629,945 Measure R - Regional Transportation Grants
191
128

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - 83,000 82,252 (748)
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines 91,000 132,165 41,165 - - -
Uses of Money and Property - 227 227 4,100 1,224 (2,876) Charges for Current Services - - - - - -
Miscellaneous - - - 200 72 (128)
Total Revenues 91,000 132,392 41,392 87,300 83,548 (3,752)

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - 21,300 6,028 15,272
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - - -
Community Services 51,200 55,190 (3,990) - - -
Capital Outlay 11,517 13,223 (1,706) - - -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 62,717 68,413 (5,696) 21,300 6,028 15,272 Excess (Deficiency) of
Revenues Over (Under) Expenditures 28,283 63,979 35,696 66,000 77,520 11,520

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ 28,283 63,979 $ 35,696 $ 66,000 77,520 $ 11,520 Fund Balances - Beginning of
Year (Deficits) 16,922 275,494
Fund Balances - End of Year (Deficits) $ 80,901 $ 353,014 Golf
Course
CASP
Program
192
129

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines - 17,626 17,626 - - -
Uses of Money and Property - 1,102 1,102 - 1,006 1,006
Charges for Current Services - - - - - -
Miscellaneous - - - - - -
Total Revenues - 18,728 18,728 - 1,006 1,006

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - - -
Community Services - 13,301 (13,301) - 58 (58)
Capital Outlay - - - - - -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures - 13,301 (13,301) - 58 (58)
Excess (Deficiency) of
Revenues Over (Under) Expenditures - 5,427 5,427 - 948 948

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ - 5,427 $ 5,427 $ - 948 $ 948 Fund Balances - Beginning of
Year (Deficits) 272,829 247,587
Fund Balances - End of Year (Deficits) $ 278,256 $ 248,535 Oak Tree Preservation Conservation
193
130

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
VPFA 2014
Refunding
Certificates of
Participation
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property - 955 955 - - -
Charges for Current Services - - - - - -
Miscellaneous 85,500 11,263 (74,237) - - -
Total Revenues 85,500 12,218 (73,282) - - -

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - 54 (54) - - -
Public Works - - - - - -
Community Services - - - - - -
Capital Outlay 71,877 60,188 11,689 - - -
Debt Service:

Principal Repayment - - - 98,400 98,400 -
Interest and Fiscal Charges - - - 29,100 28,782 318
Total Expenditures 71,877 60,242 11,635 127,500 127,182 318 Excess (Deficiency) of
Revenues Over (Under) Expenditures 13,623 (48,024) (61,647) (127,500) (127,182) 318

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - 127,500 127,504 4
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - 127,500 127,504 4 Net Changes in Fund Balance $ 13,623 (48,024) $ (61,647) $ - 322 $ 322 Fund Balances - Beginning of
Year (Deficits) 115,177 (2,546)
Fund Balances - End of Year (Deficits) $ 67,153 $ (2,224) Police Unclaimed Funds
194
131

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
`
2015
Certificates of
Participation Transportation
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines - - - 4,009,100 6,082,044 2,072,944
Uses of Money and Property - 5 5 46,300 60,762 14,462
Charges for Current Services - - - - - -
Miscellaneous - - - - 5,767 5,767
Total Revenues - 5 5 4,055,400 6,148,573 2,093,173

EXPENDITURES
Current:

General Government - 3,040 (3,040) - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - 275,600 26,762 248,838
Community Services - - - - - -
Capital Outlay - - - 1,486,175 1,282,520 203,655
Debt Service:

Principal Repayment 783,904 783,904 - - - -
Interest and Fiscal Charges 371,759 368,546 3,213 - - - Total Expenditures 1,155,663 1,155,490 173 1,761,775 1,309,282 452,493 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,155,663) (1,155,485) 178 2,293,625 4,839,291 2,545,666

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In 1,156,300 1,158,703 2,403 - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) 1,156,300 1,158,703 2,403 - - - Net Changes in Fund Balance $ 637 3,218 $ 2,581 $ 2,293,625 4,839,291 $ 2,545,666 Fund Balances - Beginning of
Year (Deficits) (23,413) 10,707,385
Fund Balances - End of Year (Deficits) $ (20,195) $ 15,546,676 195
132

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - 7,455,900 5,643,371 (1,812,529) License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property - 4 4 31,900 36,990 5,090
Charges for Current Services - - - - - -
Miscellaneous - - - - 210 210
Total Revenues - 4 4 7,487,800 5,680,571 (1,807,229)

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - 630,493 (630,493)
Community Services - 2 (2) - - -
Capital Outlay 100 - 100 8,473,948 2,799,890 5,674,058
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 100 2 98 8,473,948 3,430,383 5,043,565 Excess (Deficiency) of
Revenues Over (Under) Expenditures (100) 2 102 (986,148) 2,250,188 3,236,336

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ (100) 2 $ 102 $ (986,148) 2,250,188 $ 3,236,336 Fund Balances - Beginning of
Year (Deficits) 1,132 8,124,500
Fund Balances - End of Year (Deficits) $ 1,134 $ 10,374,688 Softball Facility Development Highway Users
196
133

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines 2,250,600 2,182,136 (68,464) 934,300 1,195,323 261,023 Uses of Money and Property 17,200 21,928 4,728 - 12,055 12,055 Charges for Current Services - - - - - -
Miscellaneous - - - - - -
Total Revenues 2,267,800 2,204,064 (63,736) 934,300 1,207,378 273,078

EXPENDITURES
Current:

General Government - - - - - -
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - 29,757 (29,757)
Community Services - 28,511 (28,511) - - -
Capital Outlay 538,419 182,945 355,474 271,613 115,353 156,260 Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 538,419 211,456 326,963 271,613 145,110 126,503 Excess (Deficiency) of
Revenues Over (Under) Expenditures 1,729,381 1,992,608 263,227 662,687 1,062,268 399,581

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ 1,729,381 1,992,608 $ 263,227 $ 662,687 1,062,268 $ 399,581 Fund Balances - Beginning of
Year (Deficits) 4,577,626 2,290,775
Fund Balances - End of Year (Deficits) $ 6,570,234 $ 3,353,043 Recreational Facilities Storm Sewer Construction
197
134

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines 643,500 887,761 244,261 407,700 765,064 357,364 Uses of Money and Property - 562 562 3,600 30,269 26,669 Charges for Current Services - - - - - -
Miscellaneous - - - - - -
Total Revenues 643,500 888,323 244,823 411,300 795,333 384,033

EXPENDITURES
Current:

General Government - - - - 16,490 (16,490)
Community Development - - - - - -
Public Safety:

Fire - 4,064 (4,064) - - -
Police - 533 (533) - - -
Public Works - - - - 1,822 (1,822)
Community Services - - - - - -
Capital Outlay 4,889 2,189 2,700 19,900 - 19,900
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 4,889 6,786 (1,897) 19,900 18,312 1,588 Excess (Deficiency) of
Revenues Over (Under) Expenditures 638,611 881,537 242,926 391,400 777,021 385,621

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - (415,167) (415,167) - - -
Total Other Financing Sources (Uses) - (415,167) (415,167) - - - Net Changes in Fund Balance $ 638,611 466,370 $ (172,241) $ 391,400 777,021 $ 385,621 Fund Balances - Beginning of
Year (Deficits) (179,247) 7,018,352
Fund Balances - End of Year (Deficits) $ 287,123 $ 7,795,373 Public Safety Impact Fee Government Facilities Impact Fee 198
135

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants 34,100 33,862 (238) - - -
License and Permits 20,300 20,382 82 - - -
Fees and Fines - - - - - -
Uses of Money and Property 46,300 22,204 (24,096) - 3,176 3,176 Charges for Current Services - - - - - -
Miscellaneous - - - - - -
Total Revenues 100,700 76,448 (24,252) - 3,176 3,176

EXPENDITURES
Current:

General Government - - - - 184 (184)
Community Development - 11,471 (11,471) - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - - -
Community Services - - - - - -
Capital Outlay - 3,330 (3,330) - - -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures - 14,801 (14,801) - 184 (184)
Excess (Deficiency) of
Revenues Over (Under) Expenditures 100,700 61,647 (39,053) - 2,992 2,992

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Changes in Fund Balance $ 100,700 61,647 $ (39,053) $ - 2,992 $ 2,992 Fund Balances - Beginning of
Year (Deficits) 3,892,199 781,457
Fund Balances - End of Year (Deficits) $ 3,953,846 $ 784,449 Parking District Facility Improvements
199
136

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Subventions and Grants - - - - - -
License and Permits - - - - - -
Fees and Fines - - - - - -
Uses of Money and Property - 86,553 86,553 - 2,340 2,340 Charges for Current Services - - - - - -
Miscellaneous - 3,010 3,010 - - -
Total Revenues - 89,563 89,563 - 2,340 2,340

EXPENDITURES
Current:

General Government - 4,702 (4,702) - 136 (136)
Community Development - - - - - -
Public Safety:

Fire - - - - - -
Police - - - - - -
Public Works - - - - - -
Community Services - - - - - -
Capital Outlay 19,718 19,718 - 4,387 4,387 -
Debt Service:

Principal Repayment - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 19,718 24,420 (4,702) 4,387 4,523 (136) Excess (Deficiency) of
Revenues Over (Under) Expenditures (19,718) 65,143 84,861 (4,387) (2,183) 2,204

OTHER FINANCING SOURCES (USES)
Sale of Land - 1,027,945 1,027,945 - - -
Transfers In - 12,241,231 12,241,231 - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - 13,269,176 13,269,176 - - - Net Changes in Fund Balance $ (19,718) 13,334,319 $ 13,354,037 $ (4,387) (2,183) $ 2,204 Fund Balances - Beginning of
Year (Deficits) 19,404,149 579,846
Fund Balances - End of Year (Deficits) $ 32,738,468 $ 577,663 Civic Center Sports Complex
200
137

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
`
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes $ - $ - $ - $ 9,135,100 $ 15,059,629 $ 5,924,529 Other Taxes - - - 83,000 82,252 (748)
Subventions and Grants - - - 9,025,437 11,987,031 2,961,594 License and Permits - - - 20,300 20,382 82
Fees and Fines - - - 10,288,000 13,246,361 2,958,361
Uses of Money and Property - 1,020 1,020 286,600 399,722 113,122 Charges for Current Services - - - 5,174,600 5,278,788 104,188 Miscellaneous - - - 298,200 354,388 56,188
Total Revenues - 1,020 1,020 34,311,237 46,428,553 12,117,316

EXPENDITURES
Current:

General Government - 59 (59) - 24,611 (24,611)
Community Development - - - 21,300 17,499 3,801
Public Safety:

Fire - - - 2,941,600 2,759,398 182,202
Police - - - 4,419,839 3,997,494 422,345
Public Works - - - 595,500 1,443,604 (848,104)
Community Services - - - 3,870,282 3,256,145 614,137
Capital Outlay - - - 25,673,218 12,829,740 12,843,478
Debt Service:

Principal Repayment - - - 882,304 882,304 -
Interest and Fiscal Charges - - - 400,859 397,328 3,531 Total Expenditures - 59 (59) 38,804,902 25,608,123 13,196,779 Excess (Deficiency) of
Revenues Over (Under) Expenditures - 961 961 $ (4,493,665) $ 20,820,430 $ 25,314,095

OTHER FINANCING SOURCES (USES)
Sale of Land - - - - 1,027,945 1,027,945
Transfers In - - - 1,283,800 13,527,438 12,243,638
Transfers Out - - - - (994,189) (994,189)
Total Other Financing Sources (Uses) - - - 1,283,800 13,561,194 12,277,394 Net Changes in Fund Balance $ - 961 $ 961 $ (3,209,865) 34,381,624 $ 37,591,489 Fund Balances - Beginning of
Year (Deficits) 251,013 91,044,634
Fund Balances - End of Year (Deficits) $ 251,974 $ 125,426,258 Animal Control Reserve Total
201
138
202
139

INTERNAL SERVICE FUNDS
203
140
204
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 141
Internal Service Funds

INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds introduced by GASB Statement No. 34 does not extend to internal service funds because they do not do business with outside parties. GASB Statement No. 34 requires that for the Statement of Activities, the net revenue or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements, which includes the funds listed below.

FLEET SERVICES
Established to account for the maintenance and fueling of vehicles and related equipment in use by the City.

VEHICLE REPLACEMENT
Established to account for the acquisition of City vehicles. Replacement vehicles are purchased through this fund.

New vehicles added to this fleet (not replacing an existing one) are considered Contributed Capital to the Vehicle Replacement fund.

INFORMATION SERVICES
Established to account for the acquisition, maintenance and upgrade of the City’s computer operations.

RISK MANAGEMENT
Established to account for the self-insured and purchased insurance for the City’s various types of insurance including liability, workers’ compensation, unemployment, property, and employee bonds.

HEALTH BENEFITS
Established to account for the self-insured and purchased insurance for the City’s various types of employee health insurance.

COMPENSATED ABSENCES
Established to account for the long-term portion of the compensated absences liability in the governmental funds.

BUILDING MAINTENANCE
Established to account for the repairs and maintenance for the City’s owned/occupied buildings. 205
142
Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management
ASSETS
Current Assets
Cash and Investments $ 35,577 $ 7,912,009 $ 4,199,876 $ 12,847,931 Accounts and Interest Receivables 2,006 - -
Supplies 1,138,767 - - -
Prepaid Expenses - - - -
Capital Assets:

Building 654,910 - - -
Improvements Other Than Buildings 211,545 - 7,240 -
Machinery, Equipment and Vehicles 443,004 21,551,901 12,187,034 - Accumulated Depreciation (1,119,682) (12,863,151) (8,332,397) - Total Assets 1,366,127 16,600,759 8,061,753 12,847,931

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 289,258 - 11,990 51,913 Accrued Personnel Costs - - - -
Current Portion of Long-Term Obligations (Note 7):

Compensated Absences - - - -
Liability for Self-Insurance Claims - - - 1,515,142
Total Current Liabilities 289,258 - 11,990 1,567,055
Non-Current Liabilities
Non-current Portion of Long-term Obligations (Note 7):

Compensated Absences - - - -
Liability for Self-Insurance Claims - - - 7,214,758
Total Non-Current Liabilities - - - 7,214,758
Total Liabilities 289,258 - 11,990 8,781,813

NET POSITIONS
Net Investments in Capital Assets 189,777 8,688,750 3,861,877 - Restricted - 990,517 98,762 -
Unrestricted 887,092 6,921,492 4,089,124 4,066,118
Total Net Positions $ 1,076,869 $ 16,600,759 $ 8,049,763 $ 4,066,118

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2021
206
143
Health
Benefits
Compensated
Absences
Building
Maintenance Totals
ASSETS
Current Assets
Cash and Investments $ 3,736,050 $ 5,818,608 $ 743,803 $ 35,293,854 Accounts and Interest Receivables 7,323 - - 9,329
Supplies - - - 1,138,767
Prepaid Expenses 1,003,296 - - 1,003,296
Capital Assets:

Building - - - 654,910
Improvements Other Than Buildings - - - 218,785
Machinery, Equipment and Vehicles - - - 34,181,939
Accumulated Depreciation - - - (22,315,230)
Total Assets 4,746,669 5,818,608 743,803 50,185,650

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 44,248 - - 397,409 Accrued Personnel Costs 32,858 - - 32,858
Current Portion of Long-Term Obligations (Note 7):

Compensated Absences - 1,231,281 - 1,231,281
Liability for Self-Insurance Claims 99,000 - - 1,614,142 Total Current Liabilities 176,106 1,231,281 - 3,275,690 Non-Current Liabilities
Non-current Portion of Long-term Obligations (Note 7):

Compensated Absences - 4,587,327 - 4,587,327
Liability for Self-Insurance Claims - - - 7,214,758
Total Non-Current Liabilities - 4,587,327 - 11,802,085
Total Liabilities 176,106 5,818,608 - 15,077,775

NET POSITIONS
Net Investments in Capital Assets - - - 12,740,404
Restricted - - - 1,089,279
Unrestricted 4,570,563 - 743,803 21,278,192
Total Net Positions $ 4,570,563 $ - $ 743,803 $ 35,107,875

CITY OF VISALIA

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION (Continued)
JUNE 30, 2021
207
144
FOR THE YEAR ENDED JUNE 30, 2021

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION
Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management

OPERATING REVENUES
Service Charges and Fees $ 5,667,730 $ 1,360,882 $ 2,889,733 $ 5,163,253

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 1,436,058 - 1,262,284 437,281 Maintenance and Operations 4,303,687 58,934 818,553 562,251 Insurance Premiums and Loss Provisions - - - 4,798,137
Depreciation 16,849 1,360,882 801,782 -
Total Operating Expenses 5,756,594 1,419,816 2,882,619 5,797,669 Operating Income (Loss) (88,864) (58,934) 7,114 (634,416)

NONOPERATING REVENUES (EXPENSES)
Interest Income 229 27,366 12,448 42,114
Interest (Expense) (3,169) - - -
Other Income 43,187 - 844,287 475,609
Other (Expenses) - (24,294) (1,304) -
Total Nonoperating Revenues (Expenses) 40,247 3,072 855,431 517,723 Income (Loss) Before Contributions and Transfers (48,617) (55,862) 862,545 (116,693)

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - 185,177 161,272 -
Transfers Out - - - -
Net Contributions and Transfers - 185,177 161,272 -
CHANGE IN NET POSITION (48,617) 129,315 1,023,817 (116,693)

NET POSITION
Net Position - Beginning of Year 1,125,486 16,471,444 7,025,946 4,182,811 Net Position - End of Year $ 1,076,869 $ 16,600,759 $ 8,049,763 $ 4,066,118 208
145

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
Health
Benefits
Compensated
Absences
Building
Maintenance Totals

OPERATING REVENUES
Service Charges and Fees $ 14,083,566 $ - $ - $ 29,165,164

OPERATING EXPENSES
Salaries, Wages and Employee Benefits - - - 3,135,623
Maintenance and Operations 249,750 1,291 175 5,994,641
Insurance Premiums and Loss Provisions 13,364,853 - - 18,162,990 Depreciation - - - 2,179,513
Total Operating Expenses 13,614,603 1,291 175 29,472,767 Operating Income (Loss) 468,963 (1,291) (175) (307,603)

NONOPERATING REVENUES (EXPENSES)
Interest Income 13,419 22,270 3,011 120,857
Interest (Expense) - - - (3,169)
Other Income 5,813 - - 1,368,896
Other (Expenses) - - - (25,598)
Total Nonoperating Revenues (Expenses) 19,232 22,270 3,011 1,460,986 Income (Loss) Before Contributions and Transfers 488,195 20,979 2,836 1,153,383

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - - - 346,449
Transfers Out - (20,979) - (20,979)
Net Contributions and Transfers - (20,979) - 325,470
CHANGE IN NET POSITION 488,195 - 2,836 1,478,853

NET POSITION
Net Position - Beginning of Year 4,082,368 - 740,967 33,629,022 Net Position - End of Year $ 4,570,563 $ - $ 743,803 $ 35,107,875 209
146
Fleet Vehicle Information Risk
Services Replacement Services Management

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds $ 5,668,237 $ 1,360,882 $ 2,889,733 $ 5,163,253 Cash Payments to Suppliers for Services (4,393,085) (35,581) (813,205) (3,714,309) Cash Payments to Employees for Services (1,436,058) - (1,262,284) (437,281) Other Income 43,187 - 844,287 475,609
Other Payments (35,489) (19,888) (68,675) (360)
Net Cash Provided (Used) by Operating Activities (153,208) 1,305,413 1,589,856 1,486,912

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers Out - - - -
Net Cash (Used) by Noncapital
Financing Activities - - - -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital Payments - (414,965) (259,210) -
Contributions - 185,177 161,272 -
Net Cash (Used) by Capital
and Related Financing Activities - (229,788) (97,938) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (2,940) 27,366 12,448 42,114
Cash Flows from Investing Activities (2,940) 27,366 12,448 42,114 Net Increase (Decrease) in Cash and
Cash Investments (156,148) 1,102,991 1,504,366 1,529,026 Cash and Cash Investments at Beginning of Year 191,725 6,809,018 2,695,510 11,318,905 Cash and Cash Investments at End of Year $ 35,577 $ 7,912,009 $ 4,199,876 $ 12,847,931 Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Operating Income (Loss) $ (53,375) $ (35,581) $ 75,789 $ (634,056) Other Income 43,187 - 844,287 475,609
Other Expenses (35,489) (19,888) (68,675) (360)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 16,849 1,360,882 801,782 -
Net Change in Assets and Liabilities:

Accounts and Interest Receivable 507 - - -
Supplies (208,378) - - -
Prepaid Expenses - - - -
Accounts Payable 83,491 - (63,327) 49,257
Accrued Personnel Costs - - - -
Compensated Absences - - - -
Liability for Self-Insurance Claims - - - 1,596,462
Net Cash Provided (Used) by Operating Activities $ (153,208) $ 1,305,413 $ 1,589,856 $ 1,486,912

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
210
147
Health Compensated Building
Benefits Absences Maintenance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds $ 14,080,369 $ 338,600 $ - $ 29,501,074 Cash Payments to Suppliers for Services (13,616,021) (1,291) (175) (22,573,667) Cash Payments to Employees for Services - - - (3,135,623) Other Income 5,813 - - 1,368,896
Other Payments - - - (124,412)
Net Cash Provided (Used) by Operating Activities 470,161 337,309 (175) 5,036,268

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers Out - (20,979) - (20,979)
Net Cash (Used) by Noncapital
Financing Activities - (20,979) - (20,979)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital Payments - - - (674,175)
Contributions - - - 346,449
Net Cash (Used) by Capital
and Related Financing Activities - - - (327,726)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 13,419 22,270 3,011 117,688
Cash Flows from Investing Activities 13,419 22,270 3,011 117,688 Net Increase (Decrease) in Cash and
Cash Investments 483,580 338,600 2,836 4,805,251
Cash and Cash Investments at Beginning of Year 3,252,470 5,480,008 740,967 30,488,603 Cash and Cash Investments at End of Year $ 3,736,050 $ 5,818,608 $ 743,803 $ 35,293,854 Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Operating Income (Loss) $ 468,963 $ (1,291) $ (175) $ (179,726) Other Income 5,813 - - 1,368,896
Other Expenses - - - (124,412)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation - - - 2,179,513
Net Change in Assets and Liabilities:

Accounts and Interest Receivable (3,197) - - (2,690)
Supplies - - - (208,378)
Prepaid Expenses (42,410) - - (42,410)
Accounts Payable 2,299 - - 71,720
Accrued Personnel Costs 25,693 25,693
Compensated Absences - 338,600 - 338,600
Liability for Self-Insurance Claims 13,000 - - 1,609,462 Net Cash Provided (Used) by Operating Activities $ 470,161 $ 337,309 $ (175) $ 5,036,268

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2021
211
148
212
149

CUSTODIAL FUNDS
213
150
214
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2021 151
Custodial Funds

CUSTODIAL FUNDS
GASB Statement No. 34 requires that Custodial Funds be presented separately from the government-wide and Fund financial statements.

Custodial funds account for resources held by the City in custodial capacity for individuals, other governmental units and non-public organizations.

Property and Business Improvement District #5 (PBID)
The City collects the district assessments on real property in the district to improve the district. The effective dates for the district are January 1, 2020 through December31, 2029.

Village West Improvement District
The City collects the district assessments on real property in the district to repay bonds for the repair of a private street.

Orchard Walk Underground Utilities District
The City collects the district assessments on real property in the district to pay for underground utilities.

Atwood Water Main Assessment District
The City collects the district assessments on real property in the district to repay bonds issued for the connection to the Cal Water main extension.

Laura Water Main Assessment District
The City collects the district assessments on real property in the district to repay bonds issued for the connection to the Cal Water main extension.

Visalia Tourism & Marketing District (VTMD)
The City collects the district assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia.
215
152
PBID # 5 Village West Orchard Walk Atwood Laura VTMD
Total
Custodial
Funds
ASSETS
Cash and Investments (Note 3) $228,126 $ - $ 72,229 $ - $ - $54,634 $354,989 Accounts Receivable 3,475 - - 100,204 64,549 4,340 172,568 District Assesment Receivable 15,280 310 1,271 606 - 99,267 116,734 Total Assets 246,881 310 73,500 100,810 64,549 158,241 644,291

LIABILITIES
Accounts, Interest, and Contracts Payable - - - 21 21 145,196 145,238 Deposits - - - 20,000 23,124 - 43,124
Due to City - 241 - 75,459 36,004 - 111,704
Total Liabilities - 241 - 95,480 59,149 145,196 300,066

NET POSITION
Restricted for:

Individuals, Organizations, and Other Governments $246,881 $ 69 $ 73,500 $ 5,330 $ 5,400 $13,045 344,225

CITY OF VISALIA

COMBINING STATEMENTS OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2021
216
153
PBID # 5 Village West Orchard Walk Atwood Laura VTMD
Total
Custodial
Funds
Additions
Use of Money and Property $ 1,722 $ 8 $ 378 $ - $ - $ 77 $ 2,185 Revenue from District Assessments 362,319 - - - - 624,960 987,279 Miscellaneous Revenue 176,684 5,231 64,470 22,481 15,968 - 284,834 Total Additions 540,725 5,239 64,848 22,481 15,968 625,037 1,274,298 Deductions
Obligation Requirements
Interest on Bonds and Notes Payable - 606 19,470 4,446 3,108 - 27,630 Total Obligation Requirements - 606 19,470 4,446 3,108 - 27,630 Administrative Expenses 3,976 234 234 131 131 6,213 10,919 Total Administrative Expenses 3,976 234 234 131 131 6,213 10,919 Distribution of District Assessment 460,000 4,592 45,000 18,035 12,860 642,753 1,183,240 Total Distribution of District Assessment 460,000 4,592 45,000 18,035 12,860 642,753 1,183,240 Total Deductions 463,976 5,432 64,704 22,612 16,099 648,966 1,221,789 Change in Net Position 76,749 (193) 144 (131) (131) (23,929) 52,509 Net Position - Beginning of Year 170,132 262 73,356 5,461 5,531 36,974 291,716 Net Position - End of Year $ 246,881 $ 69 $ 73,500 $ 5,330 $ 5,400 $13,045 $ 344,225

CITY OF VISALIA

COMBINING STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENEDED JUNE 30, 2021
217
154
218
155
Statistical
Section
219
156
220
City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2021 157
Statistical Section
Statistical Section
This part of the City of Visalia’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial Trends
These schedules contain trend information to help the reader understand how the City of Visalia’s financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the City of Visalia’s significant revenue sources, property tax and sales tax.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City of Visalia’s current levels of outstanding debt and the City of Visalia’s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City of Visalia’s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City of Visalia’s financial report relates to the services the City of Visalia provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Report for the relevant year.
221
158
2012 2013 2014 2015
Governmental Activities:

Net Investment in Capital Assets $ 244,070 $ 259,744 $ 271,964 $ 284,901 Restricted 34,283 39,249 45,363 52,401
Unrestricted 55,851 61,930 60,694 (2,230)
Total Governmental Activities Net Position $ 334,204 $ 360,923 $ 378,021 $ 335,072 Business-type Activities:

Net Investment in Capital Assets $ 206,947 $ 203,346 $ 198,310 $ 212,853 Restricted 4,993 4,890 121,630 71,139
Unrestricted 49,791 70,743 (27,024) 5,135
Total Business-type Activities Net Position $ 261,731 $ 278,979 $ 292,916 $ 289,127 Primary Government:

Net Investment in Capital Assets $ 451,017 $ 463,090 $ 470,274 $ 497,754 Restricted 39,276 44,139 166,993 123,540
Unrestricted 105,642 132,673 33,670 2,905
Total Primary Government Net Position $ 595,935 $ 639,902 $ 670,937 $ 624,199 Fiscal Year
(In Thousands)

CITY OF VISALIA

NET POSITION BY COMPONENT

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
222
159
2016 2017 2018 2019 2020 2021
$ 288,048 $ 312,172 $ 325,420 $ 324,799 $ 335,920 $ 360,652 56,417 56,984 69,608 79,763 94,930 130,726
12,676 17,877 22,633 35,203 38,351 26,158
$ 357,141 $ 387,033 $ 417,661 $ 439,765 $ 469,201 $ 517,536 $ 242,950 $ 266,867 $ 271,696 $ 269,444 $ 270,985 $ 277,874 45,202 16,732 12,785 11,368 20,325 12,887
24,631 63,975 89,290 93,039 104,952 126,266
$ 312,783 $ 347,574 $ 373,771 $ 373,851 $ 396,262 $ 417,027 $ 530,998 $ 579,039 $ 597,116 $ 594,243 $ 606,905 $ 638,526 101,619 73,716 82,393 91,131 115,255 143,613
37,307 81,852 111,923 128,242 143,303 152,424
$ 669,924 $ 734,607 $ 791,432 $ 813,616 $ 865,463 $ 934,563 Fiscal Year
223
160
2012 2013 2014 2015
Expenses:

Governmental Activities:

General Government $ 7,188 $ 1,396 $ 4,070 $ 4,299
Community Development 6,154 6,133 5,266 5,985
Housing & Economic Development 822 608 - -
Housing & Community Grants - - - -
Public Safety
Police 29,475 30,407 31,714 30,378
Fire 12,508 13,548 14,308 13,858
Public Works 18,886 15,519 11,906 13,596
Parks & Recreation 6,866 6,455 9,000 8,999
Community Services - - - -
Interest on Long-Term Debt 736 304 191 145
Total Governmental Activities Expenses 82,635 74,370 76,455 77,260 Business-type Activities:

Convention Center 5,353 5,404 5,943 5,688
Airport 2,342 2,389 2,505 2,530
Valley Oaks Golf 2,403 2,350 2,574 2,756
Wastewater and Storm
Sewer Maintenance 12,492 13,004 15,281 16,791
Solid Waste 15,059 15,348 18,589 17,969
Transit 10,979 11,929 13,670 14,702
Baseball 244 285 295 332
Animal Control - 1,103 1,184 1,141
Building Safety 1,562 1,570 1,768 1,969
Total Business-Type Activities Expenses 50,434 53,382 61,809 63,878 Total Primary Government Expenses 133,069 127,752 138,264 141,138 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 183 152 265 1,952
Community Development 873 778 1,503 1,633
Housing & Economic Development 270 199 - -
Housing & Community Grants - - - -
Public Safety
Police 2,808 2,135 2,516 2,690
Fire 657 667 626 802
Public Works 7,641 7,643 8,773 9,279
Parks & Recreation 1,550 1,875 2,974 3,068
Community Services - - - -
Operating Grants and Contributions 3,222 3,983 3,184 4,581 Capital Grants and Contributions 10,038 22,621 12,152 8,556 Total Governmental Activities
Program Revenues $ 27,242 $ 40,053 $ 31,993 $ 32,561
Fiscal Year

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
224
161

(Continued)
2016 2017 2018 2019 2020 2021
$ 4,262 $ 3,653 $ 5,778 $ 4,951 $ 7,404 $ 6,883
4,768 3,570 2,028 6,098 2,477 2,741
- - - - - -
- - - - 1,667 2,751
31,182 34,737 38,720 39,996 44,992 44,431
15,331 16,948 16,881 17,371 19,000 19,745
24,526 19,270 19,579 15,155 20,424 12,224
799 3,988 4,820 5,540 - -
- - - - 12,146 11,271
702 561 508 471 450 401
81,570 82,727 88,314 89,582 108,560 100,447
5,822 5,525 5,517 4,952 4,300 2,360
2,219 1,999 2,017 2,199 2,127 3,119
2,502 2,426 1,571 - - -
19,836 23,845 18,488 21,031 25,263 25,541
16,309 17,422 18,847 24,168 18,963 19,212
14,772 14,726 18,360 20,408 17,837 17,263
342 329 354 350 221 243
1,881 2,490 1,993 1,908 2,003 1,927
2,306 3,103 3,303 3,303 3,490 3,411
65,989 71,865 70,450 78,319 74,204 73,076
147,559 154,592 158,764 167,901 182,764 173,523
653 717 794 1,247 896 1,110
2,142 2,122 1,955 1,788 1,283 871
- - - - - -
- - - - 23 22
2,804 2,716 2,636 3,055 3,126 2,953
1,256 1,492 1,875 1,678 1,620 1,654
10,011 10,736 11,344 12,286 10,459 11,303
3,468 3,321 3,509 4,140 - -
- - - - 7,778 7,957
3,660 3,118 2,619 2,648 5,083 6,064
9,625 14,635 9,206 12,022 11,765 12,148
$ 33,619 $ 38,857 $ 33,938 $ 38,864 $ 42,033 $ 44,082
Fiscal Year
225
162
2012 2013 2014 2015
Business-Type Activities:

Charges for Services:

Convention Center $ 3,339 $ 3,446 $ 4,099 $ 3,617
Airport 1,611 1,647 1,734 1,708
Valley Oaks Golf 2,323 2,389 2,409 2,401
Wastewater and Storm
Sewer Maintenance 19,150 21,465 22,365 26,210
Solid Waste 17,931 17,945 19,570 19,222
Transit 2,964 4,051 3,974 4,366
Baseball 119 102 8 17
Animal Control - 104 219 309
Building Safety 1,429 2,102 2,948 3,274
Operating Grants and Contributions 7,189 6,433 6,588 9,841 Capital Grants and Contributions 16,296 5,370 4,045 2,691 Total Business-Type Activities
Program Revenues 72,351 65,054 67,959 73,656
Total Primary Government
Program Revenues 99,593 105,107 99,952 106,217
Net Revenues (Expenses):

Governmental Activities (55,393) (34,317) (44,462) (44,699) Business-Type Activities 21,917 11,672 6,150 9,778
Total Net Revenues (Expenses) (33,476) (22,645) (38,312) (34,921) General Revenues and Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales Taxes 25,488 30,342 28,791 32,237
Property Taxes 17,649 23,886 27,306 27,708
Incremental Property Taxes 7,929 - - -
Other Taxes 6,133 6,276 6,921 8,306
Investment Earnings 1,390 993 513 1,894
Gain from Sale of Capital Assets - - - 5
Miscellaneous 679 2,892 1,317 1,587
Transfers and Extraordinary Items 4,138 (3,355) (4,322) (4,265) Total Governmental Activities 63,406 61,034 60,526 67,472 Business-Type Activities:

Investment Earnings 439 457 454 440
Miscellaneous 2,663 1,764 3,349 2,622
Transfers 2,598 3,355 4,322 4,265
Total Business-Type Activities 5,700 5,576 8,125 7,327
Total Primary Government 69,106 66,610 68,651 74,799
Changes in Net Position:

Governmental Activities 8,013 26,717 16,064 22,773
Business-Type Activities 27,617 17,248 14,275 17,105
Total Primary Government $ 35,630 $ 43,965 $ 30,339 $ 39,878 Fiscal Year

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
226
163
2016 2017 2018 2019 2020 2021
$ 3,587 $ 3,483 $ 3,657 $ 2,967 $ 1,882 $ 505
1,925 1,710 1,817 1,701 1,616 1,775
2,405 2,372 1,337 - - -
26,033 26,822 27,060 28,057 27,479 27,744
18,852 19,831 20,216 19,225 19,457 20,564
6,004 4,969 5,055 5,000 5,081 3,623
18 51 68 50 4 -
430 487 441 573 580 646
3,873 3,741 3,465 3,959 4,520 4,934
4,183 14,050 16,499 12,987 15,949 15,455
17,291 21,188 12,160 5,093 7,650 12,093
84,601 98,704 91,775 79,612 84,218 87,339
118,220 137,561 125,713 118,476 126,251 131,421
(47,951) (43,870) (54,376) (50,718) (66,527) (56,365)
18,612 26,839 21,325 1,293 10,014 14,263
(29,339) (17,031) (33,051) (49,425) (56,513) (42,102)
36,145 44,574 54,104 58,561 60,351 70,926
26,810 22,429 23,687 25,076 26,297 27,875
- - - - - -
7,638 7,800 8,341 8,663 7,987 9,275
725 1,074 1,409 4,064 4,614 1,311
7 3 1 - - -
2,563 1,944 1,504 1,704 1,387 1,056
(4,138) (3,869) (4,140) (3,785) (4,489) (4,018)
69,750 73,955 84,906 94,283 96,147 106,425
576 690 872 4,024 4,345 674
3,439 3,478 3,431 2,344 2,939 1,810
4,138 3,869 4,140 3,785 4,489 4,018
8,153 8,037 8,443 10,153 11,773 6,502
77,903 81,992 93,349 104,436 107,920 112,927
21,799 30,085 30,530 43,565 29,620 50,060
26,765 34,876 29,768 11,446 21,787 20,765
$ 48,564 $ 64,961 $ 60,298 $ 55,011 $ 51,407 $ 70,825
Fiscal Year
227
164
2012 2013 2014 2015
General Fund:

Nonspendable $ 1,519 $ 1,168 $ 580 $ 435
Restricted - - - -
Committed 14,930 12,186 16,330 17,719
Assigned 10,776 21,665 18,629 19,486
Unassigned 1,363 1,305 1,387 4,043
Total General Fund 28,588 36,324 36,926 41,683
All Other Governmental Funds:

Nonspendable 41 7 15 -
Restricted 55,905 44,392 44,817 45,965
Committed 347 - 5,318 7,271
Assigned 1,960 1,632 1,632 1,632
Unassigned (23,970) (6,782) (6,419) (2,471)
Total All Other Governmental Funds 34,283 39,249 45,363 52,397 Total Governmental Fund Balance $ 62,871 $ 75,573 $ 82,289 $ 94,080 Fiscal Year

CITY OF VISALIA

FUND BALANCES OF GOVERNMENTAL FUNDS

MODIFIED ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
228
165
2016 2017 2018 2019 2020 2021
$ 357 $ 1,346 $ 1,365 $ 1,125 $ 678 $ 3,480
- 1,193 - - - -
28,018 19,805 21,921 15,344 16,239 16,609
18,781 21,857 24,981 25,215 30,278 27,629
4,787 9,612 10,214 9,753 5,497 5,428
51,943 53,813 58,481 51,437 52,692 53,146
- 47 815 - - -
50,857 51,465 54,253 68,188 91,088 144,003
15,903 9,582 18,233 31,924 30,259 36,280
1,243 1,243 1,632 1,632 1,168 848
(11,627) (5,393) (6,005) (3,925) (4,475) (31)
56,376 56,944 68,928 97,819 118,040 181,100
$ 108,319 $ 110,757 $ 127,409 $ 149,256 $ 170,732 $ 234,246 Fiscal Year
229
166
2012 2013 2014 2015
Revenues:

Sales Tax $ 25,488 $ 30,342 $ 28,791 $ 32,237
Property Tax 25,578 23,886 27,306 26,711
Other Taxes 6,134 6,276 6,920 7,662
Subventions and Grants 13,260 26,604 15,336 13,137
Licenses and Permits 93 109 61 109
Fees and Fines 6,007 6,433 8,751 9,199
Use of Money and Property 1,389 1,087 907 2,334
Charges for Current Services 5,584 5,042 5,589 6,257
Miscellaneous 1,875 4,256 2,253 2,067
Total Revenues 85,408 104,035 95,914 99,713
Expenditures
Current:

General Government 5,099 270 2,477 2,896
Community Development 4,586 5,384 5,209 6,684
Housing & Economic Development 822 598 - -
Housing & Community Grants - - - -
Public Safety:

Police 29,138 29,412 13,708 13,598
Fire 12,123 13,130 30,228 30,469
Public Works 8,174 7,875 3,239 5,563
Community Services 5,630 5,777 7,956 8,104
Capital Outlay 25,218 24,708 22,429 17,378
Debt Service:

Principal Retirement 938 615 649 2,229
Interest and Fiscal Charges 723 294 189 138
Total Expenditures 92,451 88,063 86,084 87,059
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (7,044) 15,972 9,830 12,654
Other Financing Sources (Uses):

Issuance of Long-Term Debt - - - -
Proceeds from Long-Term Debt - - - -
Redemption of Long-Term Debt - - - -
Sales of Real Property 33 96 11 12
Proceeds from Sale of Capital - - - 5
Issuance of Debt - - - 1,558
Bond Premium - - - -
Transfers In 5,867 1,424 970 2,482
Transfers Out (8,464) (4,760) (5,300) (7,254)
Total Other Financing
Sources (Uses) (2,564) (3,240) (4,319) (3,197)
Extraordinary Items (7,296) - - -
Net Change in Fund Balances $ (16,904) $ 12,732 $ 5,511 $ 9,457 Debt Service as a Percentage of
Noncapital Expenditures 1 2.2% 1.3% 1.2% 3.2%
1 The calculation of debt service as a percentage of noncapital expenditures excludes capital outlays.

In 2007 the City created the Housing & Economic Development Department and in 2014 it was absorbed in Community Development.

In 2020 the City seperated the Housing & Community Grants from Community Development.

In 2020 the City renamed the Parks & Recreation department to Community Services Department.

Fiscal Year

CITY OF VISALIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

MODIFIED ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
230
167
2016 2017 2018 2019 2020 2021
$ 36,144 $ 44,575 $ 54,104 $ 58,561 $ 60,350 $ 70,926
26,880 22,370 23,694 25,048 26,282 27,885
7,608 7,681 8,272 8,619 8,020 9,290
13,286 14,160 10,355 13,505 14,829 17,865
87 81 88 95 84 73
10,520 10,552 10,991 12,267 13,929 14,264
1,133 1,522 1,843 4,470 4,841 1,479
7,014 7,859 8,367 8,692 8,374 8,117
2,477 2,578 2,260 2,999 2,208 1,754
105,149 111,378 119,974 134,256 138,917 151,653
3,102 3,335 3,913 3,049 3,944 4,610
5,119 5,245 5,272 6,052 2,114 2,552
- - - - - -
- - - - 753 2,269
15,070 15,855 16,160 17,115 17,360 18,678
31,728 33,378 35,382 38,446 41,638 42,420
8,958 8,874 9,053 8,966 5,400 5,305
3,231 3,531 3,510 3,988 10,501 9,736
32,435 34,136 24,248 27,031 29,900 19,298
1,178 1,321 1,364 1,136 895 882
694 548 507 465 437 397
101,515 106,223 99,409 106,248 112,942 106,147
3,634 5,155 20,565 28,008 25,975 45,506
- - - - - -
- - - - - -
- - - - - -
655 1,465 113 517 - 1,028
7 3 1 1 16 3
13,121 - - - - -
785 - - - - -
2,070 8,373 3,272 9,509 8,482 13,700
(6,304) (12,365) (7,398) (13,125) (12,813) (17,697)
10,334 (2,524) (4,012) (3,098) (4,315) (2,966)
- - - - - -
$ 13,968 $ 2,631 $ 16,553 $ 24,910 $ 21,660 $ 42,540

2.4% 2.3% 2.3% 2.0% 1.5% 1.5%
Fiscal Year
231
168
NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006-008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office
2012 2013 2014 2015
City Direct Rate:

City Basic Rate $ 0.1154 $ 0.1152 $ 0.1152 $ 0.1150
Total City Direct Rate 0.1154 0.1152 0.1152 0.1150
Overlapping Rates:

Visalia Unified School District 0.3068 0.3068 0.3068 0.3068 College of The Sequoias 0.0537 0.0537 0.0537 0.0537
County of Tulare 0.1846 0.1840 0.1832 0.1832
Tulare County Schools 0.0248 0.0248 0.0248 0.0248
Tulare County Flood Control District 0.0022 0.0022 0.0022 0.0022 Air Pollution Control District 0.0004 0.0004 0.0004 0.0004 Library Fund 0.0156 0.0156 0.0156 0.0158
Memorial District 0.0016 0.0016 0.0016 0.0016
Cemetery District 0.0011 0.0011 0.0011 0.0011
Delta Vector Control District 0.0142 0.0142 0.0142 0.0142 Kaweah Delta Hospital 0.0096 0.0096 0.0096 0.0096
Kaweah Delta Water District 0.0289 0.0289 0.0289 0.0289 Education Revenue Augmentation 0.2412 0.2420 0.2429 0.2430 Visalia Unified School District Bonds 0.0300 0.0300 0.0300 0.0300 Kaweah Delta Hospital Bonds 0.0272 0.0253 0.0282 0.0209 Kaweah Delta Water Assessment 0.0005 0.0001 0.0004 0.0005 Land and Improvements - - - -
Total Direct Rate 1 $ 1.0578 $ 1.0554 $ 1.0588 $ 1.0517 Fiscal Year

CITY OF VISALIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(Rate per $100 of Assessed Value)
232
169
2016 2017 2018 2019 2020 2021
$ 0.1150 $ 0.1150 $ 0.1150 $ 0.1150 $ 0.1150 $ 0.1150

0.1150 0.1150 0.1150 0.1150 0.1150 0.1150

0.3068 0.3068 0.3068 0.3068 0.3068 0.3068

0.0537 0.0537 0.0537 0.0537 0.0537 0.0537

0.1834 0.1836 0.1825 0.1825 0.1818 0.1820

0.0248 0.0248 0.0248 0.0248 0.0248 0.0248

0.0022 0.0022 0.0021 0.0021 0.0021 0.0021

0.0004 0.0004 0.0004 0.0004 0.0004 0.0004

0.0158 0.0158 0.0157 0.0157 0.0156 0.0156

0.0016 0.0016 0.0016 0.0016 0.0016 0.0016

0.0011 0.0011 0.0011 0.0011 0.0011 0.0011

0.0142 0.0142 0.0141 0.0141 0.0141 0.0141

0.0096 0.0096 0.0096 0.0096 0.0096 0.0096

0.0289 0.0289 0.0289 0.0289 0.0289 0.0289

0.2430 0.2426 0.2438 0.2438 0.2447 0.2445

0.0226 0.0270 0.0183 0.0225 0.0225 0.0425

0.0237 0.0206 0.0198 0.0181 0.0181 0.0169

0.0004 0.0003 0.0004 0.0004 0.0003 0.0004
- - - - - -
$ 1.0472 $ 1.0482 $ 1.0386 $ 1.0411 $ 1.0411 $ 1.0600
Fiscal Year
233
170
NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an “inflation factor” (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006-008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Value Rate 1
2012 $ 7,516,654 $ 389,762 $ 7,906,416 0.115%
2013 7,291,841 409,092 7,700,933 0.115%
2014 7,669,621 409,634 8,079,255 0.115%
2015 8,186,023 442,930 8,628,953 0.115%
2016 8,672,154 438,480 9,110,634 0.115%
2017 9,144,989 435,751 9,580,740 0.115%
2018 9,502,122 498,924 10,001,046 0.115%
2019 10,066,721 534,555 10,601,276 0.115%
2020 10,592,327 552,734 11,145,061 0.115%
2021 11,213,027 576,723 11,789,750 0.115%

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

CITY OF VISALIA
City
(In Thousands)
234
171
Percent Of Percent Of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Rank Value Value Rank
California Dairies Inc. $ 169,037 1.43% 1 $ 203,463 2.57% 1 Perfection Pet Foods LLC 56,902 0.48% 2 - 0.00%
Caldwell Mooney Partners 55,455 0.47% 3 - 0.00%
Graphic Packing INT 48,844 0.41% 4 - 0.00%
California Water Service 47,114 0.40% 5 32,449 0.41% 5
Visalia Mall LP 46,961 0.40% 6 40,284 0.51% 3
Cottonwood Fresno Holdings LLC 40,000 0.34% 7 37,000 0.47% 4 Target Corporation 39,923 0.34% 8 - 0.00%
VWR International LLC 37,910 0.32% 9 - 0.00%
G4 Enterprises 34,812 0.30% 10 - -
Imperial Bondware Corp. - - - 68,951 0.87% 2
US Industrial Reit II - - - 26,144 0.33% 10
Crunch Time LP - - - 28,053 0.35% 7
Blam-Jade A Gen PTNSHP - - - 29,851 0.38% 6
Bank of America NT&SA - - - 27,029 0.34% 8
VF Outdoor - - - 26,538 0.34% 9
Total Ten Largest Tax Payers $ 576,958 4.89% $ 519,762 6.57% All Other Tax Payers $11,212,792 95.11% $ 7,386,654 93.43% Total Assessed Valuation - All Tax Payers $11,789,750 100.00% $ 7,906,416 100.00% The amounts shown above include assessed value data for both the City and the Successor Agency.

Source: Tulare County Auditor-Controller
2021

CITY OF VISALIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(In Thousands)
2012
235
172
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2012 $ 19,198 $ 19,198 100.00% - $ 19,198 100.00%
2013 16,106 16,106 100.00% - 16,106 100.00%
2014 17,167 17,167 100.00% - 17,167 100.00%
2015 18,755 18,755 100.00% - 18,755 100.00%
2016 19,764 19,764 100.00% - 19,764 100.00%
2017 20,337 20,337 100.00% - 20,337 100.00%
2018 21,335 21,335 100.00% - 21,335 100.00%
2019 22,634 22,634 100.00% - 22,634 100.00%
2020 23,711 23,711 100.00% - 23,711 100.00%
2021 25,185 25,185 100.00% - 25,185 100.00%
Total Collections to Date
Collected within the
Fiscal Year of Levy

CITY OF VISALIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(In Thousands)
Source: Tulare County Auditor Controller's Office
NOTE:

The amounts presented include secured City property taxes and Successor Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies.
236
173
End State Local Local (1) City Rate County Rate City Rate Combined Date Jurisdiction Transportation Fund City Rate Measure T Measure R Measure N Rate 06/30/1935 (2) 2.50% 2.50%
06/30/1943 3.00% 3.00%
06/30/1949 2.50% 2.50%
12/31/1961 3.00% 1.00% 4.00%
07/31/1967 3.00% 1.00% 4.00%
06/30/1972 4.00% 0.25% 1.00% 5.25%
06/30/1973 3.75% 0.25% 1.00% 5.00%
09/30/1973 4.75% 0.25% 1.00% 6.00%
03/31/1974 3.75% 0.25% 1.00% 5.00%
11/30/1989 4.75% 0.25% 1.00% 6.00%
12/31/1990 5.00% 0.25% 1.00% 6.25%
07/14/1991 4.75% 0.25% 1.00% 6.00%
12/31/2000 6.00% 0.25% 1.00% 7.25%
12/31/2001 5.75% 0.25% 1.00% 7.00%
06/30/2004 6.00% 0.25% 1.00% 7.25%
03/31/2007 6.25% 0.25% 0.75% (3) 0.25% (4) 7.50%
03/31/2009 6.25% 0.25% 0.75% 0.25% 0.50% (5) 8.00%
06/30/2011 7.25% 0.25% 0.75% 0.25% 0.50% 9.00%
12/31/2012 6.25% 0.25% 0.75% 0.25% 0.50% 8.00%
12/31/2016 6.50% 0.25% 0.75% 0.25% 0.50% 8.25%
03/31/2017 6.00% 0.25% 1.00% 0.25% 0.50% 8.00%
Current 6.00% 0.25% 1.00% 0.25% 0.50% 0.50% (6) 8.50%
Statewide Base Sales and Use Tax Rate
04/01/2017
01/01/2017

CITY OF VISALIA

HISTORICAL SALES AND USE TAX RATES
04/01/1974
Effective
Date
08/01/1933
07/01/1935
07/01/1943
07/01/1949
01/01/1962
08/01/1967
07/01/1972
07/01/1973
10/01/1973
12/01/1989
01/01/1991
07/15/1991
01/01/2013
07/01/2004
01/01/2001
01/01/2002
04/01/2007
04/01/2009
07/01/2011
NOTES:
(1)
(2)
(3)
(4)
(5)
(6)
Source:
(1)(2)(3) State Board of Equalization, State of California (4)(5)(6) City of Visalia
The Bradley-Burns Uniform Local Sales and Use Tax Law was encated in 1955. The law authorizes cities and counties to impose a sales and use tax. Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.

Sales Tax only. The use tax was enacted effective July 1, 1935.

In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004, by repealing 25% of the local 1% sales tax and then adopting a new 1/4 cent sales tax dedicated to the repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.

In March 2004, the voters of the City of Visalia passed a sales tax override (Measure T) to increase public saftey in the community increasing the City rate by 1/4% ,effective July 1, 2004. The measure requires the City Manager to annually recertify the Measure T plan to the City Council. Additionally, the plan must be reafirrmed every 8 years by a 4 out of 5 City Council approval.

In November 2006, voters in the County of Tulare approved a countywide sales tax measure (Measure R) giving the County a 1/2% rate increase which became effective April 1, 2007. The sales tax measure has a sunset period of 30 years. The revenue is earmarked for transportation projects with allocations as follows: 50% for regional projects, 35% goes to cities for their street programs, 14% for transportation enhancement programs, and 1% for administration.

In November 2016, voters of the City of Visalia passed a 1/2 (half-cent) sales tax override (Measure N), effective April 1, 2017. The proceeds of this tax will provide the City with a reliable, ongoing, local source of funding for public safety, repairs and maintenance for streets, and maintenance of parks and trails.
237
174
Source: Avenue Insights & Analytics (MuniServices)
Note: 2020 is latest available year.
2016 2017 2018 2019 2020
Retail Stores
Apparel Stores $ 138,129 $ 138,637 $ 144,806 $ 145,638 $ 107,987 General Merchandise Stores 398,900 400,820 406,490 405,765 387,705 Food Stores 123,005 120,900 124,058 124,210 138,239
Eating and Drinking Places 263,310 277,409 288,003 296,010 249,567 Home Furnishings and Appliances 91,778 86,839 91,966 92,407 91,551 Bldg. Material and Farm Implemen 213,421 222,315 312,640 242,041 286,433 Auto Dealers and Auto Supplies 411,684 401,536 377,145 375,482 370,099 Service Stations 141,307 163,999 155,709 171,821 132,712 Other Retail Stores 212,872 203,637 215,347 214,145 218,646 Retail Stores Totals 1,994,406 2,016,092 2,116,164 2,067,519 1,982,939 All Other Outlets 775,194 794,330 854,888 1,029,450 1,081,731 Totals All Outlets $ 2,769,600 $ 2,810,422 $ 2,971,052 $ 3,096,969 $ 3,064,670

CITY OF VISALIA

TAXABLE SALES TRANSACTIONS BY TYPE
2016-2020 CALENDAR YEARS
(Dollars in Thousands)
238
175
Source: Avenue Insights & Analytics (MuniServices)
Note: 2020 is latest available year.

ARCO AM/PM Mini Marts McDonald's Restaurants
Best Buy Stores MWI Veterinary Supply
Bluescope Buildings Nissan of Visalia
Butler Animal Health Supply Ross Stores
Chevron Service Stations Save Mart Supermarkets
COSTCO Wholesale Target Stores
Giant Chevrolet Company Tri-Animal Health Services
HILTI Visalia Buick GMC
Home Depot Visalia Ford
J.C. Lansdowne Visalia Toyota
Lampe Chrysler Dodge Jeep Ram VWR International
Lawrence Tractor Co Wal Mart Stores
Lowe's Home Improvement

CITY OF VISALIA
TOP 25 SALES TAX CONTRIBUTORS
(in alphabetical order)
2020 CALENDAR YEAR
239
176
NOTES:
1 US Department of Commerce Bureau of Economic Analysis

Personal Income Data from the Bureau of Economic Analysis is only available through 2019.

Fiscal Year Certificates Tax Total
Ended of Allocation Notes Governmental
June 30 Participation Bonds Payable Activities
2012 $ 2,175 $ - $ 2,972 $ 5,147
2013 2,323 - 2,584 4,907
2014 2,022 - 2,173 4,195
2015 1,306 - 1,987 3,293
2016 13,678 - 1,479 15,157
2017 12,835 - 937 13,772
2018 11,994 - 372 12,366
2019 11,155 - 54 11,209
2020 10,310 - - 10,310
2021 9,428 - - 9,428
Governmental Activities

CITY OF VISALIA

LAST TEN FISCAL YEARS

RATIOS OF OUTSTANDING DEBT BY TYPE
(In Thousands, except Debt per Capita)
240
177
Total Total Percentage Debt
Certificates of Business-type Primary of Personal Per
Participation Notes Activities Government Income1 Capita $ 11,998 $ - $ 11,998 $ 17,145 0.12% 135
17,270 - 17,270 22,177 0.15% 173
15,557 14,999 30,556 34,751 0.21% 268
12,442 56,979 69,421 72,714 0.43% 566
16,053 84,995 101,048 116,205 0.66% 887
14,834 92,703 107,537 121,309 0.66% 911
13,602 96,516 110,118 122,484 0.66% 899
12,360 94,133 106,493 117,702 0.59% 852
11,103 91,705 102,808 113,118 N/A 816
9,810 89,266 99,076 108,504 N/A 779
Business-type Activities
241
178
Outstanding General Bonded Debt
Fiscal Year Certificates Percent of Debt
Ended of Assessed Per
June 30 Participation Total Value 1 Capita
2012 $ 1,550 $ 1,550 0.02% 12
2013 1,698 1,698 0.02% 13
2014 1,384 1,384 0.02% 11
2015 1,304 1,304 0.02% 10
2016 13,670 13,670 0.15% 104
2017 12,827 12,827 0.13% 96
2018 11,985 11,985 0.12% 88
2019 11,155 11,155 0.11% 81
2020 10,310 10,310 0.09% 74
2021 9,428 9,428 0.08% 68
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).

CITY OF VISALIA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(In Thousands, except Debt per Capita)
242
179
2020-21 City Assessed Valuation $ 11,789,750
Successor Agency Incremental Valuation 1,022,009
Total Assessed Valuation $ 12,811,759
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/21 Debt
Overlapping Tax and Assessment Debt:

College of the Sequoias Tulare School Facilities Improvement District 0.475% $ 64,167 $ 305 College of the Sequoias Visalia School Facilities Improvement District 67.952% 25,024 17,004 Visalia Unified School District 86.411% 86,710 74,927
Tulare Joint Union High School District 0.615% 17,190 106 Liberty School District 18.030% 476 86
Kaweah Delta Hospital District 85.185% 40,600 34,585
City of Visalia 1915 Act Bonds 100.000% 387 387
Total Overlapping Tax and Assessment Debt 234,554 127,400 Direct and Overlapping General Fund Debt:

Tulare County Certificates of Participation 33.222% 30 10 Tulare County Pension Obligation Bonds 33.222% 223 74
Tulare County Board of Education Certificates of Participation 33.222% 37 12 College of The Sequoias Certificates of Participation 35.876% 4,545 1,631 Visalia Unified School District Certificates of Participation 86.411% 71,305 61,616 Liberty School District Certificates of Participation 18.030% 2,240 404 City of Visalia General Fund Obligations 100.000% 9,848 9,848 Total Direct and Overlapping General Fund Debt 88,228 73,595 Overlapping Tax Increment Debt (Successor Agency) 100.000% 1,280 1,280 Total Direct Debt 9,848 9,848
Total Overlapping Debt 313,991 192,427
Combined Total Debt $ 323,839 $ 202,275

CITY OF VISALIA

DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021
(In Thousands)
Notes:
1 Percentage of overlapping agency's assessed valuation located within boundaries of the City Source: California Municipal Statistics, Inc.
243
180

CITY OF VISALIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(In Thousands)
NOTE:

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City Finance Department
Tulare County Tax Assessor’s Office
2012 2013 2014 2015
Assessed valuation $ 7,906,416 $ 7,700,933 $ 8,079,201 $ 8,628,953 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,976,604 1,925,233 2,019,800 2,157,238 Debt limit percentage 15% 15% 15% 15%
Debt limit 296,491 288,785 302,970 323,586
Total net debt applicable to limit:

General obligation bonds - - - -
Legal debt margin $ 296,491 $ 288,785 $ 302,970 $ 323,586 Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Fiscal Year
244
181
2016 2017 2018 2019 2020 2021
$ 9,110,634 $ 9,580,740 $ 10,001,046 $ 10,601,276 $ 11,145,062 $ 11,789,750 25% 25% 25% 25% 25% 25%
2,277,659 2,395,185 2,500,262 2,650,319 2,786,266 2,947,438 15% 15% 15% 15% 15% 15%
341,649 359,278 375,039 397,548 417,940 442,116
- - - - - -
$ 341,649 $ 359,278 $ 375,039 $ 397,548 $ 417,940 $ 442,116

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
245
182
Fiscal Year Less: Net Debt
Ended Operating Operating Available Service
June 30 Revenue Expenses Revenue Principal Interest Coverage 2012 $ 19,150 $ 9,387 $ 9,763 $ - $ - -
2013 21,465 10,163 11,302 - - -
2014 22,365 9,180 13,185 - - -
2015 25,031 11,184 13,847 - - -
2016 25,504 11,778 13,726 - - -
2017 26,822 12,863 13,959 - - -
2018 27,060 13,561 13,499 - - -
2019 28,057 15,062 12,995 - - -
2020 27,479 16,163 11,316 - - -
2021 27,862 15,734 12,128 - - -
Debt Service
Wastewater Revenue Bonds

CITY OF VISALIA

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
(In Thousands)
Wastewater & Storm Sewer Maintenance Fund
(1) 2002 Wastewater System Revenue Bonds were fully called in December 2010.

Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements Operating expenses do not include interest or depreciation expenses. 246
183
Per
Assessed Capita Personal Per Capita Unemployment
Calendar Population Value Assessed Income Personal Rate Year (1) (in thousands) (2) Value (in thousands) (3) Income (3) (4) 2012 127,061 $ 7,906,416 $ 62,225 $ 14,531,771 $ 32,237 16.5% 2013 128,443 7,700,933 59,956 15,283,723 33,690 14.5%
2014 129,481 8,079,201 62,397 16,941,984 37,117 13.2%
2015 128,447 8,628,953 67,179 17,105,786 37,300 11.0%
2016 130,977 9,110,634 69,559 17,578,692 38,145 10.3%
2017 133,151 9,580,740 71,954 18,466,575 39,756 9.9%
2018 136,246 10,001,046 73,404 18,679,327 40,206 9.6%
2019 138,207 10,601,276 76,706 19,973,932 42,845 9.1%
2020 138,649 11,145,062 80,383 NA NA 17.1%
2021 139,254 11,789,750 84,664 NA NA 11.1%

CITY OF VISALIA

LAST TEN FISCAL YEARS

DEMOGRAPHIC AND ECONOMIC STATISTICS
Sources: (1) State Department of Finance
(2) Tulare County Auditor-Controller
(3) US Department of Commerce Bureau of Ecomonic Analysis* (4) US Department of Labor Bureau of Labor Statistics/State of California Employment Development Department* * Rate for Tulare County as of June 30
Note:

Personal Income & Per Capita Personal Income Data from the Bureau of Economic Analysis is only available through 2019. 247
184
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment County of Tulare (1) 4,311 2 2.40% 5,033 1 2.68%
Kaweah Delta Healthcare (1) 4,550 1 2.53% 2,132 3 1.14% Visalia Unified School District (2) 2,796 3 1.56% 2,943 2 1.57% Visalia Mall (cumulative) (1) 1,200 4 0.67%
VF Outdoor Inc (1) 1,012 5 0.56% 600 7 0.32%
Walmart (incl. Neigborhood Market) (1) 840 6 0.47% 400 8 0.21% Graphic Packaging (Intl. Paper Co.) (1) 757 7 0.42% 350 9 0.19% College of the Sequoias (1) 705 8 0.39% 1,160 4 0.62%
City of Visalia (3) 657 9 0.37% 642 6 0.34%
UPS (1) 600 10 0.33%
CIGNA Health Care (1) 700 5 0.37%
Jostens (1) 320 10 0.17%
Number of Employed (4) 179,800 187,800

CITY OF VISALIA

PRINCIPAL EMPLOYERS

CURRENT YEAR AND TWO YEARS AGO
2021 2019
Source: (1) City of Visalia Economic Development Division (December 2020) (2) Visalia Unified School District
(3) City of Visalia Budget
(4) State of California Employment Development Department The City of Visalia has elected to compare the curent year of data with the data from two years ago for this schedule. 248
185
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Administration 41 46 44 46 46 47 64 64 64 18
Administrative Services 32 31 NA NA NA NA NA NA NA NA
Community Development 49 55 61 64 65 65 79 79 77 35
Finance NA NA 16 16 20 20 27 27 27 52
Fire 70 81 81 82 82 81 81 85 85 86
General Services NA NA NA NA NA NA NA NA NA 46
Housing & Economic Development 11 NA NA NA NA NA NA NA NA NA Housing & Community Grants NA NA NA NA NA NA NA NA 2 NA Community Services 34 32 32 34 12 12 13 13 13 39
Police 198 198 206 208 208 208 223 230 234 237
Public Works 115 115 118 121 139 141 143 144 144 144
Transportation & General Services NA NA 18 18 27 29 NA NA NA NA Total 550 558 576 589 599 603 630 642 646 657
(NA) - Function was not active in this year and was combined with another function.

Source: City Budget
Fiscal Year

CITY OF VISALIA

FULL-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
249
186
2012 2013 2014 2015
Police:

Calls for service - Calendar Year* 130,980 126,767 129,828 134,287 Fire:

Calls for service - Calendar Year 11,241 12,140 12,482 12,518 Refuse/Sewer**:

Number of Residential Accounts 35,541 35,797 36,144 37,538 Number of Commercial Accounts 2,944 3,020 3,731 3,747
Total Refuse/Sewer Accounts 38,485 38,817 39,875 41,285 Business Licenses:

New licenses issued during the year 2,160 1,194 1,261 1,098 Total business licenses 11,450 11,533 11,784 11,920
Building Permits:

Residential 1,507 1,602 2,019 2,478
Commercial 375 367 353 381
Miscellaneous 1,187 1,242 1,474 1,673
Total Building Permits 3,069 3,211 3,846 4,532
Source: City of Visalia
Note:
* 2020 calendar year information available.
** Refuse/Sewer variance for 2019 and 2020 is due to new system tracking of customers.

Fiscal Year

CITY OF VISALIA

OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
250
187
2016 2017 2018 2019 2020 2021
144,856 144,489 153,701 158,783 160,465 158,189
14,065 14,283 15,301 15,229 16,180 15,885
37,884 38,014 38,579 41,638 39,494 39,076
3,758 4,043 3,993 3,654 3,254 3,360
41,642 42,057 42,572 45,292 42,748 42,436
1,201 1,375 1,955 1,586 1,409 1,236
12,145 12,098 12,268 12,241 12,315 12,505
3,152 2,793 2,865 3,049 2,753 3,367
349 355 381 319 319 270
1,648 1,745 1,497 1,970 1,962 2,025
5,149 4,893 4,743 5,338 5,034 5,662
Fiscal Year
251
188

CITY OF VISALIA

CAPITAL ASSET STATISTICS

BY FUNCTION

LAST TEN FISCAL YEARS
2012 2013 2014 2015
Police:

Stations 3 3 3 3
Fire:

Fire stations 5 5 5 5
Public Works:

City Area in Square Miles 37 37 37 37
Streets (miles) 492 493 493 512
Traffic Signalized Intersections 115 118 118 120
Community Services
Developed City Park Acreage 291 291 288 281
City Owned Open Space Acreage 180 205 231 282
Public Libraries 1 1 1 1
Recreation Centers 3 5 5 5
Swimming Pools 4 0 0 0
Parks 42 50 50 52
Acres of Parks NA 493 493 290
Wastewater:

Sanitary sewers (miles) 468 468 468 468
Storm sewers (miles) 240 240 240 240
Golf Course:

Municipal golf courses 1 1 1 1
Source: Various City Departments
Fiscal Year

CITY OF VISALIA

CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
252
189
2016 2017 2018 2019 2020 2021
3 3 3 3 3 3
6 6 6 6 6 6
37 38 38 38 38 38
512 516 516 525 528 519
120 123 123 126 127 131
281 269 269 269 269 293
282 289 289 289 289 266
1 1 1 1 1 1
5 5 5 5 5 5
0 0 0 0 0 0
52 54 54 54 54 58
290 286 286 286 286 314
468 507 508 508 508 508
240 276 277 277 277 277
1 1 1 1 1 1
Fiscal Year
253
190

CITY OF VISALIA

INSURANCE IN FORCE
FISCAL YEAR ENDED JUNE 30, 2021
Coverage Underwriter Limits of Coverage Deductibles Policy Number Period of Policy

PRIMARY POLICIES
General liability over $1,000,000 per occurrence
(covers bodily injury, personal injury, property
damage and errors/omissions, auto liability, or any
combination thereof) ACCEL coverage effective
6/1/86
Authority for
California Cities
Excess Liability
(ACCEL)
SIR $1,000,000; ACCEL pooled layer
$4,000,000; Pool purchase $45,000,000; total
limits $35,000,000 $1,000,000 SIR 07/01/20 to 06/30/21
Commercial Property Policy
Fireman's Fund
Insurance Company
Business Real Property, Business Personal
Property limit $347 mil; Business Income/Extra
Exp $10m
$50,000 bldg;
$5k contents; USC007189200 07/01/20 to 06/30/21
Pollution Liability (Underground Storage Tank) Crum & Forester $1 mil liability; $1 mil aggregate $5k deductible STP410572 10/12/20 to 10/12/22 Excess Workers Compensation
Keenan &
Associates/Security
National
XS work comp, loss control fees; admin fees;
broker fees. $25 million limits $1 mil SIR SP4063598 07/01/20 to 06/30/21 Excess Health & Medical Coverage

CSAC EIA/PRISM
Risk Healthcare Pooling Program None 1/1/20 to 12/31/21

SPECIAL COVERAGES
Aviation Liability
ACE Property
Casualty/CHUBB
25 mil each occurrence/offense in respect of
Bodily Injry, Personal and Advertising Injury and
Property Damage combined, subject to
limitations None AAP N10694243 001 7/14/20 to 7/14/21
Contractors Equipment/Mobile Equipment/Fine
Arts/Valuable Papers & Records
Markel American
Insurance Company
Contractors equip/mobile equip $9,133,263 all
covered property, including rented and leased;
limit $500 ee tool/$5k per occurrence; Fine
arts/Valuable papers & records $500k blanket
all locations; Commercial Fine Arts Floater,
$85k limit, $500 deductible MKLM41M0050755 7/1/20 to 7/1/21 Crime Policy/ Bond - General
Fidelity and Deposit
Companies Commercial Crime Policy; $5,000,000
$100,000
deductible CCP004781615 4/27/21 to 4/27/24
Crime Policy/Bond - Police
Fidelity and Deposit
Companies Commercial Crime Policy; $5,000,000
$100,000
deductible CCP612789117 4/27/21 to 4/27/24
Special Events Insurance Diversified Risk
Liability policy available to citizens holding
events in city facilities/parks
EAP CuraLink 6 visits per insured member per year 7/1/2019 - 6/30/22 Long Term Disability (LTD) Sun Life
66% of pre-disability earnings up to $5,000
monthly benefit 234707 1/1/20 to 12/31/21
Life Insurance Sun Life
City Manager 2X Annual Salary; Department
Head Group $75,000; All Other Employees
$30,000 234707 1/1/21 to 12/31/21
Dental
Preferred
Benefits/Delta
Dental
$1,000 maximum annual benefit paid per
insured (retirees and their dependents are not
eligible for dental) 8244 1/1/21 to 12/31/21
Vision Vision Service Plan Annual benefits with VSP provider ID #00849301 1/1/19 to 12/31/21 254
191

Compliance
Section
255
192
256
193
257
194
258
195
259
196
260
197
261
198
262
199
263
200
264
201

CITY OF VISALIA

BOND DISCLOSURE REQUIREMENTS
The City of Visalia (the City) periodically issues tax-exempt debt. Frequently the bond covenants require that the City of Visalia disclose additional information about its operations for the benefit of the bond holder. This disclosure statement provides for those disclosure requirements.

This disclosure statement addresses required disclosures for the following debt issues:

Redevelopment Agency Tax Allocation Bonds
On June 18, 2003, the Visalia Community Redevelopment Agency issued $5,185,000 of 2003 Tax Allocation Refunding Bonds (2003 Bonds) to retire outstanding variable rate 1990 Tax Allocation Bonds and to pay for issuance costs. Due to the variable nature of the refunded debt, the City could not determine the economic gain on the transaction.

Tax increment revenue is pledged for the repayment of the 2003 Bonds. Interest ranges from 2.0% to 4.1% and is due semiannually each July 1 and January 1. Commencing in 2004, principal is payable each July 1 through 2026.

This debt was transferred to the Successor Agency of The City of Visalia on February 1, 2012, as a result of the dissolution of the Visalia Community Redevelopment Agency.

Certificates of Participation
On July 2, 2014, the City issued $7,380,000 of 2014 Refunding Certificates of Participation (the Certificates) to (a) refund all of the City’s outstanding 2005 Refunding Certificates of Participation (the Prior Certificates), (b) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt reserve service reserve fund established for the Certificates, and (c) to pay the costs related to the execution and delivery of the Certificates. Of this issue, 84% is allocable to the Convention Center and 16% is considered general long-term debt. Interest represented by the Certificates is payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2014, with the final payment due in the year 2025. The 2014 Certificates advance refunded the outstanding 2005 Refunding Certificates of Participation. The 2005 Certificates were fully called on July 11, 2014.

Certificates of Participation
On September 10, 2015, the City issued $17,910,000 of 2015 Certificates of Participation to (a) construct and equip the Visalia Emergency Communications Center (the VECC), (b) to replace the City’s Computer Aided Dispatch and Records Management System (the CAD/RMS), (c) to make certain improvements to the Visalia Convention Center, (d) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (e) to pay the costs related to the execution and delivery of the Certificates. Of this issue, 27% is allocable to the Convention Center and 73% is considered general long-term debt. Interest represented by the Certificates is payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2015, with the final payment due in the year 2029.

DISCLOSURES
Redevelopment Agency Tax Allocation Bonds
Successor Agency of The City of Visalia (former Visalia Community Redevelopment Agency of The City of Visalia) On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California.

The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former Visalia Community Redevelopment Agency (RDA) with the Bill as part of City resolution number 12-01.
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After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. The Successor Agency of The City of Visalia took over the affairs of the former RDA of the City of Visalia at that time and is responsible for the wind down of the affairs of the dissolved RDA. It is responsible for fulfilling the obligations of the former RDA and is also responsible for revenue collection, maintaining bond reserves, and disposing of excess property. When the RDA was dissolved, the four project areas of the RDA were combined into one entity. Therefore, some historical information as required by the continuing disclosure is no longer available or applicable.

For FY 2020-21 and future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the former redevelopment agency have been paid in full and all assets have been liquidated.

The only outstanding bonded debt of the former Visalia Community Redevelopment Agency is the 2003 Tax Allocation Refunding Bonds (2003 Bonds). The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.

The 2003 Tax Allocation Refunding Bonds (East Visalia Redevelopment Project) required continuing disclosures which are now meaningless due to the dissolution of redevelopment agencies. Continuing disclosure covenants ask for the following five tables:

Historical Assessed Valuation (Table 3)
Historical Levy and Receipts (Table 4)
Top Ten Taxpayers (Table 6)
Projected Tax Revenues (Table 8)
Projected Debt Service Coverage (Table 9)
Rating Changes
These tables are presented here as required.

Fiscal Year LocallyEnded Assessed Unsecured State-Assessed Total Incremental June 30 Secured Value Value Value Assessed Value Assessed Value 2017 159,202,054 31,905,255 521,796 191,629,105 71,719,119 2018 166,077,971 19,965,433 602,306 186,645,710 71,719,119 2019 172,658,326 23,034,881 602,306 196,295,513 71,719,119 2020 182,187,754 21,343,824 602,306 204,133,884 71,719,119 2021 194,743,023 19,553,714 602,306 214,899,043 71,719,119 Source: County of Tulare and City of Visalia Finance Department TABLE 3

SUCCESSOR AGENCY OF THE CITY OF VISALIA

EAST SUCCESSOR AGENCY PROJECT AREA

HISTORICAL AND CURRENT ASSESSED VALUATION

LAST FIVE FISCAL YEARS
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Total Receipts of
Tax Increment Percentage of
Fiscal Year Levy Revenue Levy Received
2008-09 $ 1,170 $ 1,389 118.72%
2009-10 1,244 1,336 107.40%
2010-11 1,212 1,339 110.48%
2011-12* 1,177 665 56.50%
* Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.

Source: County of Tulare and City of Visalia Finance Department Table 4
Successor Agency of The City of Visalia
East Visalia Redevelopment Project
Historical Levy and Receipts
Fiscal Year 2020-21 Percentage of
Property Owner Total Assessed Value Total (1)
1 Hotel Circle GL Holding LLC $ 16,944,075 7.88%
2 Willow Street Development Co LLC 11,095,018 5.16%
3 Donald John & Shelly Kaye Groppetti 10,516,798 4.89%
4 Kenneth J. Curti (TR) 8,933,564 4.16%
5 Mark Whittlesey (TR) 6,356,953 2.96%
6 Legacy Investments LLC 2,491,240 1.16%
7 Pile Partners #1 LLC 2,229,836 1.04%
8 Dinesh & Diane L Sharma (TRS) 2,156,870 1.00%
9 Pete Vander Poel III 2,130,000 0.99%
10 Family Healthcare Network 2,100,000 0.98%
$ 64,954,354
(1) Fiscal Year 2020-21 assessed valuation: $214,899,043 Source: Tulare County Auditor Controller's Office
Table 6

SUCCESSOR AGENCY OF THE CITY OF VISALIA

EAST VISALIA REDEVELOPMENT PROJECT AREA

TOP TEN TAXPAYERS
BASED UPON 2020-21 ASSESSED VALUATION
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With the dissolution of redevelopment agencies, successor agencies will only receive property tax revenues sufficient to pay debt service. As a result, the County of Tulare will provide the City’s successor agency tax increment equal to the debt service for that year. In other words, debt service coverage will be 1.0 and projected receipts will be equal to debt service.

Table 8
Successor Agency of The City of Visalia
East Visalia Redevelopment Project
Tax Revenues
(000s Omitted)
Total Assessed Tax Senior Tax Section 33676 County Housing Tax Fiscal Year Valuation Increment Sharing Adjustment Admin Fees Set-Aside Revenues 2008-09 $ 160,739 $ 1,389 $ 550 $ 9 $ 64 $ 278 $ 488
2009-10 171,728 1,336 585 9 41 267 434
2010-11 169,542 1,339 594 9 39 268 429
2011-12* 167,310 665 12 9 22 133 489
* Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
Source: County of Tulare and City of Visalia Finance Department Tax Debt
Fiscal Year Revenues Service Coverage
2008-09 $ 488 $ 220 222%
2009-10 434 225 193%
2010-11 429 230 187%
2011-12* 489 240 204%
2012-13** 245 245 100%
2013-14** 255 255 100%
2014-15** 260 260 100%
2016-2020** 1,065 1,065 100%
2021-2025** 1,005 1,005 100%
2025-2027** 460 460 100%
* Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
**The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.

Source: City of Visalia Finance Department
Table 9
Successor Agency of The City of Visalia
East Visalia Redevelopment Project
Projected Debt Service Coverage
(000's Omitted)
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Rating Changes for 2003 Tax Allocation Refunding Bonds (East Visalia Redevelopment Project) · On August 10, 2010, Standard & Poor’s upgraded the 2003 Bonds from BBB to A-, the last rating analysis that the City has received.

Certificates of Participation – 2014 Refunding Certificates of Participation The 2014 Refunding Certificates of Participation required the following continuing disclosures that are not already included as part of the City’s Annual Comprehensive Financial Report (CAFR):

Balance of the Reserve Fund as of January 1
Rating Changes
The reserve fund for the 2014 Refunding Certificates of Participation consists of an Assured Guaranty Municipal Bond Insurance Policy. The market value of the bond insurance in place at January 1, 2021 was $797,250.00.

Rating Changes for 2014 Refunding Certificates of Participation · On June 12, 2014, Standard & Poor’s issued a rating for the 2014 Refunding Certificates of Participation of A+. On January 6, 2021, Standard & Poor’s reaffirmed the A+ rating. This is the latest rating analysis that the City has received for this issue.

Certificates of Participation – 2015 Certificates of Participation The 2015 Certificates of Participation required the following continuing disclosures that are not already included as part of the City’s Annual Comprehensive Financial Report (CAFR):

Balance of the Reserve Fund as of January 1
Rating Changes
The reserve fund for the 2015 Certificates of Participation consists of an Assured Guaranty Municipal Bond Insurance Policy. The market value of the bond insurance in place at January 1, 2021 was $1,578,737.50.

Rating Changes for 2015 Certificates of Participation
· On August 21, 2015, Standard & Poor’s issued a rating for the 2015 Certificates of Participation of A+. On January 6, 2021, Standard & Poor’s reaffirmed the A+ rating. This is the latest rating analysis that the City has received for this issue.
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To the Honorable Mayor and the Members of the City Council of the City of Visalia
Visalia, California