State of California
City of Visalia
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
CITY OF VISALIA
STATE OF CALIFORNIA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Year Ended June 30, 2022
Prepared by the Finance Department
707 W. Acequia Ave.
Visalia, California 93291
(559) 713-4298
VI SALI A
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
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 ............................................................................................................ 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ........................................................................................................................ 30 Statement of Activities ............................................................................................................................. 31 Fund Financial Statements:
Governmental Funds:
Balance Sheet ...................................................................................................................................... 34 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position .......... 37 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................. 38 Reconciliation of the Net Changes in Fund Balances – Governmental Funds with the Change in Net Position of Governmental Activities ............................................................................ 41 Proprietary Funds:
Statement of Net Position ................................................................................................................... 44 Statement of Revenues, Expenses, and Changes in Fund Net Position .............................................. 46 Statement of Cash Flows ..................................................................................................................... 48 Fiduciary Funds:
Statement of Fiduciary Net Position ........................................................................................................ 53 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......................................................... 54 Notes to Basic Financial Statements ............................................................................................................. 55
Required Supplementary Information:
Notes to the Budgetary Comparison Schedule .................................................................................................. 111 Budgetary Comparison Schedule -
General Fund ............................................................................................................................................ 1 12 Measure N ................................................................................................................................................ 114 Housing & Community Grants ................................................................................................................. 1 15 Housing Successor Agency ...................................................................................................................... 1 16 American Rescue Plan .............................................................................................................................. 1 17 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan .............................. 118 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan ........................................... 119 Schedule of Contributions ............................................................................................................................ 120
Supplementary Information:
Budgetary Comparison Schedule -
Transportation ......................................................................................................................................... 1 23 Civic Center .............................................................................................................................................. 1 24
Non-major Governmental Funds:
Combining Balance Sheets ....................................................................................................................... 130 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance s ................................ 138 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual… . 146
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 202 2
Table of Contents
FINANCIAL SECTION: (Continued) .................................................................................................................... Page
Internal Service Funds:
Combining Statement of Net Position ..................................................................................................... 166 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................. 168 Combining Statement of Cash Flows ....................................................................................................... 170
Custodial Funds:
Combining Statements of Fiduciary Net Position – Custodial Funds ....................................................... 176 Combining Statements of Changes in Fiduciary Net Position – Custodial Funds ..................................... 177
STATISTICAL SECTION:
Net Position by Component – Last Ten Fiscal Years ..................................................................................... 182 Changes in Net Position – Last Ten Fiscal Years ............................................................................................ 184 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................... 188 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................. 190 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................. 192 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years............................ 194 Principal Property Tax Payers – Current Year and Nine Years Ago ............................................................... 195 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................................... 196 Historical Sales and Use Tax Rates ................................................................................................................ 197 Taxable Sales Transactions By Type – Last ten Calendar Years .................................................................... 198 Top 25 Sales Tax Contributors – 2021 Calendar Year and Nine Years Ago ................................................... 199 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ......................................................................... 200 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................. 202 Direct and Overlapping Debt ........................................................................................................................ 203 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................ 204 Pledged Revenue Coverage – Last Ten Fiscal Years ...................................................................................... 206 Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................................... 207 Principal Employers – Current Year and Nine Years Ago .............................................................................. 208 Full-Time City Employees by Function – Last Ten Fiscal Years ...................................................................... 209 Operating Indicators by Function – Last Ten Fiscal Years ............................................................................. 210 Capital Asset Statistics by Funct
ion – Last Ten Fiscal Years .......................................................................... 212 Insurance in Force ......................................................................................................................................... 214
COMPLIANCE SECTION:
Measure T:
Independent Accountant’s Report:
Report on Applying Agreed-Upon Procedures ......................................................................................... 217 Measure N:
Independent Accountant’s Report:
Report on Applying Agreed-Upon Procedures ......................................................................................... 220 Bond Disclosure Requirements ........................................................................................................................ 224
Introductory
Section
i
January 24, 2023
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, 20 21 through June 30, 20 22. 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 reflect ion 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 to ensure that the assets of the city are protected from loss, theft or misuse, and that adequate accounting dat a is compiled to allow for the preparation of financial statements in conformity with GAAP. Internal controls are established 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 20 21-2022 are fairly stated in accordance 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
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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 infor mation. 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, the Required Supplementary Information and 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 an d 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 a n estimated population of 142,091 as of May 20 22, making it the 4 2
cnd 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
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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
Fiscal year 2021-22 saw significant growth in all major revenue categories for Visalia, except for one, as prices for goods and services were greatly affected by high inflation that was occurring in the country as well as the continued economic rebound from the COVID -19 pandemic. The California consumer price index stood at 8.3% at the end of June 2022. Employment in the country remained strong as the national unemployment rate as of June 202 2 was at 3.6%, below the natural unemployment rate of 4% that the Federal Open Market Committee likes to see.
Fiscal year 2021-22 ended the year with an overall increase of $11.5 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)
Sales Tax grew at 21% for fiscal year 2021-22, mainly due to the high inflation rate that occurred during the fiscal year as well as the new businesses that were opened. The main areas of the growth in Sales Tax for Visalia were in General Retail (department stores, apparel stores) which grew $2.9 million; Business to Business (office equipment, industry) which grew $1.3 million; Food Products (restaurants, food markets, liquor stores) which grew $.9 million; and Transportation (auto sales, service stations) which grew $. 7 Description FY 20/21 FY 21/22
Increase Over
Prior Year % Increase
Sales Tax 38,986,517$ 47,052,657$ 8,066,140$ 21% Property Tax 27,884,766 29,725,873 1,841,107 7% Transient Occupancy Tax 3,323,538 4,589,178 1,265,640 38% Franchise Fees 2,795,357 3,155,645 360,288 13% Business License 3,088,633 3,045,708 (42,925) -1% Total 76,078,811$ 87,569,061$ 11,490,250$ 15%
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Letter of Transmittal
million. Property Tax continued its growth trend increasing 7% as existing houses sales, new development, and property values increased in Visalia. Travel remained a priority for people in fiscal year 2021-22 as Transient Occupancy Tax (TOT) revenue had an increase of 38 % as compared to last year.
Franchise Fee revenue in creased 13% in fiscal year 20 20-21 mainly due to increases in gas and electric revenue as the City continued to have new development as well as the utility companies increase d fees to their customers. Business License revenue decreased slightly at -1% as compared to last year. Business License revenue was up more than norm al last year as several businesses were remitting prior y ear delinquencies to bring their accounts current for fiscal year 2020-21 so that they were eligible for various COVID-19 relief programs.
Visalia has 12,953 licensed businesses operating in the City, a net increase of 448 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 17% (based on number of all permits issued) in fiscal year 2021-
22. The total valuation for all permits issued was $610 million, a 29% increase from the prior year as the City added 2.5 million square feet of new commercial property and 4.2 million square feet of space overall.
In terms of single-family dwelling permits, f iscal year 20 21-22 had a decrease 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 down from the prior year by 13%. The construction value for 652 new single-family dwelling permits came in at $174 million, which was down 11% from the prior year valuation level.
Table 2 – New Single-Family Dwelling Permits Comparison
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 21/22 Fiscal Year
Single-Family Dwelling Permits
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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 2021-22.
Industrial Park Highlights
Caprock Partners is constructing a 1.13 million square foot building at 8817 West Kibler Avenue that will house another Amazon Distribution Center.
Kaweah Health will be building a new health clinic in the industrial park.
Pace International is expanding into a new 50,000 square foot facility at 7435 West Sunnyview Avenue.
Nammour’s Inc. will be moving forward on a new 52,271 square foot facility at 8028 West Sunnyview Avenue. Nammour’s supplies and offers various exceptional flooring options.
A new development is being proposed south of the MilliporeSigma building located south of Riggin Avenue and Kelsey Street. The new facility will be a 100,000 square feet industrial warehouse.
Seefried Industrial Properties have submitted their site plan for the next phase of their project adjacent to the Ace Hardware Distribution Center they have recently constructed at the southwest corner of Plaza Drive and Ferguson Avenue.
YS Holdings Inc. LLC has proposed to construct a nother 350,000 square foot building just east of their existing phase 1 development along Riggin Avenue and Clancy Street.
A new 141,000 square foot industrial project is being proposed along Goshen Avenue and west of Clancy Street. The complex will offer several leasable spaces.
A developer is proposing two new warehouse and distribution facilities at Hurley Avenue and Kelsey Street. One facility will be 1,375,000 square feet with the second being 725,000 square feet.
Pickett and Associates will be constructing three 12,225 square foot pre-manufactured metal buildings on Nevada Street, south of Goshen Avenue and west of Plaza Drive.
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Other projects in the Industrial Park include:
o Serpa Packaging Solutions will be expanding their existing site by adding 15,000 square feet. o Sorma USA, LyCon Rebuilding, and Pinnacle Pre-Mix have all submitted site plans for adding additional space at their existing facilities.
Business Research Park
The Business Research Park is in northwest Visalia adjacent to the Industrial Park and continues to add amenities.
Carmax plans to bring their no -haggle used car buying experience to the Visalia Auto Plaza located northwest of Highway 198 and Plaza Drive.
A new hotel, Home 2 Suites, will be constructing a new facility at 9027 West Crowley Avenue.
Mooney Boulevard
US Foods Chef Store opened up in the former Best Buy building east of Mooney Boulevard. Chef Store serves both professional chefs and home chefs alike offering great food at wholes ale prices as well as equipment and supplies.
New 5,600 and 13,650 square foot medical offices as well as a new 3,500 square foot retail building with a drive-thru have been proposed in the Packwood Grove North center near the Surf -Thru Express Car Wash along Cameron Avenue.
Texas Roadhouse is currently under construction at 4425 South Mooney Boulevard. Texas Roadhouse is an American steakhouse that specializes in steaks in a Texan and Southwestern cuisine style.
Good Guys Tires and Auto Repair will be bringing their services to a new location at 1623 West Cameron Avenue.
Downtown Developments
Historic Downtown:
Family Healthcare Network continues its construction of 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 person’s ability to pay.
Family Healthcare Network has also opened a bookstore downtown. The goal of the store is to provide a place where local readers of all ages can gather and purchase books and supports the promotion of Family Healthcare Networks objective of early childhood literacy.
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Soccer City is now open. Located at the former Johnson Pipe Supply building located at Goshen Aven ue and Johnson Street, the indoor soccer facility features a new Visalia Microbrewery.
North Visalia
A new Costco with a gas station and car wash is being proposed in the Carleton Acres master planned development located at the northeast corner of Riggin Avenue and Shirk Street.
El Pollo Loco has opened a new restaurant at 636 Riggin Avenue.
Tractor Supp ly Company will be constructing a new facility at Orchard Walk West located at Dinuba Boulevard and Riggin Avenue. Tractor Supply Company will be a welcome addition to the area suppling products for home improvement, agriculture, lawn and garden maintenan ce, livestock, equine and pet care for recreational farmers and ranchers, pet owners, and landowners.
A permit has been issued for a new 6,595 square foot retail building located at 2926 North Dinuba Boulevard located near the ARCO gas station and Del Taco.
Pro-PT Physical Therapy will be bringing their rehabilitative services to the area with a new location at 2335 West Corvina Avenue. Pro -PT specializes in the evaluation and treatment of orthopedic injuries, sports-related injuries, and spine conditions, in addition to post-surgical care.
Other Locations
A new 101 room Marriott TownePlace Suites hotel is being proposed adjacent to the Holiday Inn Express near Adventure Park. TownePlace Suites is an extended stay lodging segment of the hospitality industry.
A new two-story medical office building is being proposed in the office park new the southeast corner of Noble Avenue and Akers Street off of Atwood Street. The medical office will house Dr. Paz Dermatology which provides dermatology care specializing in skin cancer treatment, cosmetic dermatology, and comprehensive treatment for all general dermatologic conditions.
A new permit has been issued for a new 58,656 square foot medical building located at 2300 West Sunnyside Avenue.
A permit has been issued for the construction of a new 5,590 square foot office building located at 5644 Avenue de Las Robles.
United Health Center is proposing a new site at the northwest corner of Chinowth and Mineral King.
United Health Centers provide general and family medical care with the vision of improving the health and quality of life for the community.
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RoofLine Supply and Delivery has moved into the former PrintXcel facility at 1424 East Tulare Avenue .
RoofLine Supply and Delivery is one of the nation 's leading distributors of roofing materials and building products.
A new permit has been issued for the construction of a new 7,900 square foot business building located at 225 East Caldwell Avenue. No tenant has been identified to date.
ONGOING CAPITAL PROJECTS
The City’s Capital Improvement Program has a number of significant projects currently underway that will continue into fiscal year 2023 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.
Caldwell Improvements – Santa Fe to Lovers Lane
• The $18.9 million project will widen Caldwell Avenue between Santa Fe and Lovers Lane converting it from an undivided two-lane road to a four-lane divided road with a median.
Downtown Street Light Project
• The $9.1 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.
FINANCIAL CONDITION
Fiscal year 2021-22 had continued 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.
It seems that consumers continued to put money into the economy in fi scal year 2021-22 possibly as a result of remaining funds available to them from COVID-19 pandemic relief received from both the Federal and State governments. Also contributing to the growth in revenues was the increase in inflation over the last year. The inflation rate in California was at 8.3% on June 30, 2022 and was high for most of the fiscal year averaging 6.70%. With careful management, the City was able to continue to provide service enhancements, infrastructure improvements, and incre ases 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 $15.70 million. Contributing to the surplus was not only the growth in the main General Fund revenue categories, but also in charges for services (engineering fees and recreation programs) as these fees were up $2.1 million when compared to the prior year as development
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activity continued to be active and we had a full year of recreation programs operating. Offsetting the large revenue growth this fiscal year, total expenditures were up $4.7 million as compared to last year as we had increases in employee compensation of 4% , which also affects pension obligations, as well as increases in operating costs due to a full year’s operation of recreation programs and increases in most all other costs due to inflation.
Table 3 – General Fund Statement of Revenues & Expenditures (in millions)
This is the ninth consecutive year that the General Fund has ended the year with a surplus. However, we must remember that the balance between revenues and expenditures in the General Fund can be volatile from year to year. The City must continue to monitor increasing operating costs (i.e., rising pension costs, health, technology), the economy for a possible downturn (reces sion) due to continued high inflation rates as well as the ending of COVID-19 stimulus packages, and continue to seek new opportunities to increase tax base revenues to maintain fiscal sustainability.
In June 2022, the City Council adopted a balanced biennial budget for fiscal years 20 22-2023 and 2023- 2024. The biennial budget focused on the following goals:
· Maintain quality of life for Citizens;
· Maintain financial stability by continuing to be conservative with revenues and expenditures; General
Fund
Emergency
Reserve Total
FY 21/22 FY 21/22 FY 21/22
Revenues 97.36$ (0.49)$ 96.87$
Expenditures 71.99 - 71.99
Over/(Under) Expenditures 25.37$ (0.49)$ 24.88$ Other Financing Sources (Uses) (9.67)$ -$ (9.67)$ Net Change in Fund Balance 15.70$ (0.49)$ 15.21$ Surplus before Transfers to Emergency Reserve
and Civic Center Fund 15.70$ (0.49)$ 15.21$ Transfer surplus to Emergency Reserve Fund* (1.48)$ 1.48$ -$ Transfer surplus to Civic Center Fund* (14.22) (14.22) Total -$ 0.99$ 0.99$
*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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· 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 project a surplus for the General Fund . As per Councils direction, any surplus will be first transferred to the Emergency Reserve to maintain a balance of 25% of General Fund operating expenditures. Any remaining surplus will be transferred to the Civic Center Fund. 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.
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 20 21-22. For this fiscal year, a transfer from the General Fund’s surplus of $1,483,134 was needed to continue to meet Council’s 25% Emergency Reserve Policy.
This is the sixth year in a row that this policy has been met.
MEASURE N
Fiscal year 2021-22 was the fifth 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 $19.7 million; $8.0 million more than budgeted for the year. As of June 30, 2022, Measure N had enabled the City to fund 24 police officers, 2 community service officers, 2 police technicians, 2 police records specialist s, 1 urban forest
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
17.4 17.4
-
2.0 4.0
6.0 8.0
10.0 12.0
14.0 16.0
18.0 20.0
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 21/22 Policy Level
(25%)
Emergency Reserves
(In Millions)
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employee, 2 park maintenance employees, 1 Battalion Chief, 1 Fire Captain, 1 EMS c oordinator, 3 paramedics and 6 parks and recreation hourly employees. Major purchases in this fiscal year include the purchase of 3 Dodge Chargers. In addition, the City contributed $3.3 million in road rehabilitation due to Measure N funding.
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, 2021. 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
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Organizational Chart
As of June 30, 2022
City Council
Mayor - Steve Nelson
Vice Mayor - Brian Poochigian
Council Member - Brett Taylor
Council Member - Greg Collins
Council Member - Liz Wynn
Jason Salazar
Chief of Police
Dan Griswold
Fire Chief
Vacant
Community Services
Director
Paul Bernal
Community Development
Director
Renee Nagel
Finance and Technology
Services Director
Vacant
Public Works Director
Vacant
Admin Services Director
Ken Richardson
City Attorney
Leslie Caviglia
City Manager
Nick Mascia
Assistant City Manager
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Certificate of Achievement
xiv
Financial
Section
1 2
3 4
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
5 Management Discussion and Analysis
CITY OF VISALIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
FISCAL YEAR ENDING JUNE 30, 2022
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 d ebt 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 analys is 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, deferred outflows of resources, liabilities, and deferred inflows of resources , with the difference between the four 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 li sting 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 funct ions 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, and animal control.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
6 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 ca lled Major Funds which include the General Fund, Measure N Fund, Housing & Community Grants Fund, Housing Successor Agency Fund, American Rescue Plan Fund, Transportation Fund, and Civic Center Fund ( detail on page s 34-41). 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; D ebt Service Funds such as VPFA 2014 Refunding COP and 2015 COP; and C apital Projects Funds such as Government Facilities Impact Fee, and Facility Improvements Fund (detail on pages 130-161). 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. Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs. Capital assets and other long -lived assets along with long-term liabilities are not presented in the Governmental Fund Financial Statements.
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 t he 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 purpos es 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 re solution must occur prior to the end of the reporting period; however, the amount can be determined subsequently.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
7 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 b udget 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 gov ernment-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 Wa ter 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, and Animal Control which are considered to be non-major Funds of the City.
· Internal Service Funds are used to report activities that provide certain supplies an d 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 se rvice 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, s even fiduciary funds are maintained: the Property and Busines s Improvement District #5 (for Downtown Visalians & Alliance), the Village West Improvement District, the Orchard Walk
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
8 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 1 42,091 an increase of 2.0% this past fiscal year. The California Department of Finance adjusted the prior year figure from 139,254 to 141,279. The California Consumer Price Index for All Urban Consumers was at 8.3% as of June 30, 2022. The major factors driving the City’s governmental financial results this fiscal year are the following:
· Increased Sales Tax Revenues of $11.2 million, up 1 6% from last year which includes growth in general sales tax of $8.1 (21%) million in the General Fund, an increase of $2.8 (17%) million in Measure N and an increase in Measure T s ales tax of $ 1.4 (17%) million. Measure R sales tax revenues had a de crease of $1.1 (17%) million as funding for projects in those funds were received due to a portion of the revenues received is bases on project reimbursement.
· Increased property taxes of $1.8 million, up 7% from last year.
· Increased in government wide Charges for Services of $7.8 million , up 3 0% 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.
· The City’s Total Assets increased by $ 80.6 million ( 7%) during the current fiscal year mainly due to increases in cash and investments of $ 79.7 million, accounts receivable of $6.8 million, interest receivable F Y 21-22 F Y 20-21 *
$ %
Assets 1,299.1$ 1,218.5$ 80.6$ 7%
Deferred Outflows of Resources 20.6 25.3 (4.7) -19% Liabilities 253.1 298.1 (45.0) -15%
Deferred Inflows of Resources 51.8 12.2 39.6 325% Net Position 1,014.8 933.5 81.3 9%
Revenues 256.5 244.3 12.2 5%
Expenses 175.2 173.9 1.3 1%
* As restated due to prior period adjustments and the implementation of GASB 87.
Table 1
Government-wide City Totals
(in millions)
Increas e (Decreas e)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
9 Management Discussion and Analysis
of $0.3 million and notes and loans receivable of $ 1.1 million. Decreases in Total Assets included taxes receivable of $1.1 million, due from other governmental units of $ 2.5 million, and capital asset changes of $3.7 million. The overall decrease in capital assets i ncludes additions, deletions, depreciation, and amortization comprised of increases of $ 2.3 million in vehicles and equipment, $1.7 million in buildings, $1.5 million in construction in progress and as well as decreases of $0.2 million in land, $3.0 million in infrastructure, and $6.0 million in improvements.
· The City’s Deferred Outflows of Resources decreased by $4.7 million (19%) due to annual adjustments by CalPERS for GASB 68 recording of deferred pensions.
· The City’s Liabilities decreased by $45.0 million (15%) during the current fiscal year. This was mainly due to decreases in net pension liability of $58.7 million, scheduled debt service payments of $ 3.7 million, and self-Insurance claims of $ 0.8 million in combination with in creases for unearned revenue of $1 4.2 million, of which $14.7 million is American Rescue Plan funds received in fiscal year 21-22, liability for payables of $3.6 million, customer deposits of $0.8 million , and advances from g rantors and third parties of $ 0.4 million.
· The City’s Deferred Inflows of Resources in creased by $39.6 million due to an increase in pension related activity of $40. 1 million for the annual adjustments by CalP ERS for GASB 68 and a decrease in lease related activity of $0.5 million.
· The City’s Total Net Position (assets and deferred outflows of resources exceeding its liabilities and deferred inflows of resources) were $1,014.8 million as of June 30, 2022.
· The City’s Total Revenues, including program and general revenues, were $ 256.5 million for fiscal year 2021-22, an increase of $ 12.2 million (5%) from last year, while total City expenses were $175.2 million, an increase of $1.7 million (1%) from last year. The revenue increase is due to a combination of increases in tax revenue of $ 14.7 million, miscellaneous revenue of $1.7 million , and charges for services of $ 16.1 million in combination with decreases in grants and contributions of $7.8 million, transfers of $0.2 million, and investment loss of $12.4 million due to a significant decrease in the fair market value of the investments held at June 30, 2022 as the City had unrealized investment losses in accordance with GASB
31. Per GASB 31, the City must annually adjust their investment holdings to fair market value as of June
30. The offset from the adjustment is to investment earnings . This is an unrea lized loss and any adjustment will be recovered at the maturity of the investments.
· Revenues can be divided between Program Revenues related to work activities and General or Tax Revenues. For fiscal year 20 21-22, Program Revenues were $ 139.7 million (revenues derived from specific activities) and General Revenues (e.g., taxes and investment earnings) were $ 116.8 million. These same revenues can be classified as either Governmental activity revenues or Business -type activity revenues. For fis cal year 202 1-22, Governmental activity revenues and Business -type activity revenues were $165.3 million (64.4%) and $91.2 million (35.6%), respectively.
· Expenses for governmental activities and for business -type activities were $ 96.9 million (a 3.6% decrease from last year) and $78.3 million (a 7.2% increase from last year), respectively.
Analysis of Governmental Net Position
The City’s governmental assets are shown in Table 2, Governmental Net Position . These assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $ 585.6 million. The largest portion of the net position, $ 344.3 million (59%), is Net Investment in Capital Assets (net of debt to acquire those
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
10 Management Discussion and Analysis
assets). The remaining portions of the City’s net position are: $ 159.7 million (27%) represents resources that are subject to restrictions and the remaining $81.6 million (14%) being unrestricted.
· Cash and Investments of $299.8 million increased $68.9 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 $353.5 million are categorized in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization.
· Deferred Outflows of Resources of $16.8 million decreased $4.1 million due to the annual adjustments by CalPERS for GASB 68 recording of deferred pensions.
· Long-Term Obligations totaling $75. 7 million is comprised of Net Pension Liability, Certificates of Participation, government loans, lease liabilit ies, and compensated absences. There were $ 0.9 million in long term debt payments made by the City during the year and $0.1 million in lease pay ments.
Compensated Absences increased $0.2 million. The Net pension liability adjustments decreased by $46.9 million. See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt and Note 10 – Employee Benefits for further detail.
· Deferred Inflows of Resources of $36.7 million is comprised of increases of $3 1.6 million. Increases were mainly due to the annual adjustments by CalPERS for GASB 68 recording of pensions of $31.7 million offset by a decrease in leases of $0.1 million as lease revenue was recognized.
F Y 21-22 F Y 20-21 *
$ %
Assets
Cash and Investments 299.8$ 230.9$ 68.9$ 30% Current and Other Assets 73.5 70.7 2.8 4% Adv. To Other Funds & Internal Balances 2.6 3.0 (0.4) -13% Capital Assets, Net of Accum. Deprec. 353.5 352.0 1.5 0% Total Assets 729.4 656.6 72.8 11% Deferred Outflows of Resources
Pensions 16.8 20.9 (4.1) -20% Total Deferred Outflows of Resources 16.8 20.9 (4.1) -20% Liabilities
Other Liabilities 48.2 31.9 16.3 51% Long-Term Obligations 75.7 123.4 (47.7) -39% Total Liabilities 123.9 155.3 (31.4) -20% Deferred Inflows of Resources
Pensions 34.7 3.0 31.7 1057% Leases 2.0 2.1 (0.1) 100% Total Deferred Inflows of Resources 36.7 5.1 31.6 620% Net Position
Net Investment in Capital Assets 344.3 341.8 2.5 1% Restricted 159.7 130.7 29.0 22% Unrestricted 81.6 44.6 37.0 83% Total Net Position 585.6$ 517.1$ 68.5$ 13% * As restated due to prior period adjustments, implementation of GASB 87 and an error in the ACFR.
Table 2
Governmental Net Position
(in millions)
Increase (Decrease)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
11 Management Discussion and Analysis
· Net Position –Net Investment in Capital Assets of $344.3 million represents the City’s capital assets less accumulated depreciation and amortization and any debt used to finance its construction or purchase .
· Restricted Net Position of $ 159.7 million is primarily found in Capital Projects funds which have been restricted for related capital projects.
· Unrestricted Net Position of $ 81.6 million is the remaining part of the assets. Of this amount, $ 53.8 million is the General Fund’s net position. Of the General Fund’s portion, a ll but $ 6.7 million is either nonspendable ($ 1.6 million), committed ($ 17.6 million) or assigned ($27. 9 million). Additional information on the General Fund’s Fund Balance can be found in the Statistical Section (pages 188-189).
Analysis of Changes in Governmental Net Position
Governmental activities are summarized on Table 3, Changes in Governmental Net Position , showing that during fiscal year 2021-22 the City’s net position increased by $68.5 million.
F Y 21-22 F Y 20-21 *
$ %
REVENUES
Program Revenues:
Charges for Services 33.7$ 25.9$ 7.8$ 30% Operating Grants & Contributions 6.3 6.1 0.2 3% Capital Grants & Contributions 10.6 12.1 (1.5) -12% General Revenues:
Taxes
Sales 82.1 70.9 11.2 16% Property 29.8 27.9 1.9 7% Other 10.7 9.3 1.4 15% Investment Earnings (5.3) 1.3 (6.6) -508% Miscellaneous 1.2 1.0 0.2 20% Total Revenues 169.1 154.5 14.6 9%
EXPENSES
General Government 2.2 7.3 (5.1) -70% Community Development (3.9) 2.7 (6.6) -244% Housing & Community Grants 2.2 2.8 (0.6) -21% Police 41.1 44.4 (3.3) -7% Fire 20.3 19.7 0.6 3% Public Works 19.7 12.2 7.5 61% Community Services 14.8 11.3 3.5 31% Interest on Long-Term Debt 0.4 0.4 - 0% Total Expenses 96.8 100.8 (4.0) -4% Increase (Decrease) in Net Position
Before Transfers 72.3 53.7 18.6 35% Transfers (3.8) (4.0) (0.2) -5% Total Transfers (3.8) (4.0) (0.2) -5% Increase (Decrease) in Net Position 68.5 49.7 18.8 38% Net Position at Beg. of Year, as Restated 517.1 467.4 49.7 11% Net Position at End of Year 585.6$ 517.1$ 68.5$ 13% * As restated due to prior period adjustments.
Table 3
Changes in Governmental Net Position
(in millions)
Increase (Decrease)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
12 Management Discussion and Analysis
Total governmental revenues of $ 169.1 million, increased by $1 4.6 million ( 9%) and total governmental expenses of $96.8 million, decreased by $4.0 million (4%) when compared to last year. The most significant revenue changes were the increases in sales taxes of $ 11.2 million (16%), property tax of $1.9 million (7%), charges for services of $7.8 million (30%) and operating grants & contributions of $0.2 million (3%) with decreases in investment earnings of $ 6.6 million due to the significant fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31, and capital grants & contributions of $1.5 million . Expenditures had de creases seen in General Government of $ 5.1 million (70%), Community Development of $ 6.6 million ( 244%), Housing & Community Grants of $0. 6 million (21 %), Police of $ 3.3 million (7%), with increases in Fire of $ 0.6 million (3%) Public Works of $7. 5 million (61%), and Community Services of $3.5 million (31%). The large decrease in Community Development expenses this fiscal year was a result of a correction to the way the City allocates the GASB 68 pension adjustments.
PROGRAM REVENUES
Charges for Services
These charges increased $7.8 million or 30% 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 de creased this year, down from last year by $1.3 million, for a total of $16.9 million.
GENERAL REVENUES
· Sales Tax - Sales tax increased $ 11.2 million from last year with increases in the general fund of $ 8.1 million, Measure N of $ 2.8 million, Measure T of $ 1.4 million offset with a decrease in Measure R sales tax revenues of $1.1 million as funding for projects in those funds were received on a reimbursement basis. 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 $82.1 million.
· Property Taxes - Property tax revenues increased $1. 9 million ( 7%) over last year currently totaling $29.8 million.
· Investment Earnings - Investment earnings decreased $6.6 million over last year due to the significant fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31; offset by a slight increase in interest earnings due to higher earnings rates as compared to the prior year.
EXPENSES
· General Government - There were $ 2.2 million in expenses, a decrease of $ 5.1 million (70%) as compared to last year which was mainly due to decreases in the annual GASB 68 pension adjustment s of $ 3.7 million, services provided of $0. 4 million, interest expense of $0.4 million, one -time COVID expenses of $0.6 million reported last year, and an increase in depreciation expense of $0.1 million.
· Community Development - There were $ -3.9 million in expenses, a decrease of $6.6 million (244%) as compared to last year mainly due to decreases to the annual GASB 68 pension adjustment of $ 7.7 million as the City made a correction to the way it allocates the GASB 68 pension adjustments this fiscal year. The offset to the decrease were increase s in services provided of $ 0.2 million, salaries and benefits of $0.4 million, and capital expenses of $0.3 million.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
13 Management Discussion and Analysis
· Housing & Community Grants – There were $2. 2 million in expenses, a de crease of $ 0.6 million (21%) compared to last year which was mainly due to decreases in program activity.
· Police - There were $41.1 million in expenses, a de crease of $3.3 million (7%) as compared to last year which was mainly due to decreases in the annual GASB 68 pension adjustment of $ 6.1 million as strong investment returns helped reduce the net pension liability for the measurement year. This decrease was offset partially by an increase in salaries and benefits of $2.3 million as a result of wage increases and one-time wage lump sum payment/bonus.
· Fire - There were $ 20.3 million in expenses, a n increase of $0.6 million (3%) as compared to last year which was mainly due to decreases in the annual GASB 68 pension adjustment of $ 1.0 million as strong investment returns helped reduce the net pension liability for the measurement year. This decrease was offset partially by an increase in in salaries and benefits of $1.8 million as a result of wage increases and one-time wage lump sum payment/bonus .
· Public Works - There were $ 19.7 million in expenses, a n increase of $7.5 million (61%) as compared to last year which was mainly due to due to increase s in capital related activity and projects of $ 7.7 million, services provided of $0. 2 million, d epreciation of $0. 4 million, salaries and benefits of $ 0.6 million as a result of wage increases and one-time wage lump sum payment/bonus , and a decrease in the annual GASB 68 pension adjustments of $1. 5 million as strong investment returns helped reduce the net pension liability for the measurement year.
· Community Services - There were $ 14.8 million in expenses, a n increase of $3.5 million ( 31%) as compared to last year which was mainly due to a n increase in the annual GASB 68 pension adjustments of $2.3 million as strong investment returns helped reduce the net pension liability for the measurement year and an increase in salaries and benefits of $ 1.1 million as a result of wage increases and one-time wage lump sum payment/bonus.
· Interest on Long -Term Debt - There was $0.4 million in interest expense for fiscal year 202 1-22.
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 ha s a maturity date of 2029. As the Cit y 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 $4 29.2 million. The largest portion of the net position, Net Investment in Capital Assets, is $2 76.5 million ( 64%).
Resources that are subject to restrictions total $ 11.0 million (3%). The remaining balance of $ 141.7 million (33%) represents unrestricted net position.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
14 Management Discussion and Analysis
· Cash and Investments increased $10.9 million ( 7%), as these funds are accumulating cash for capital projects and scheduled debt payments . Increases included funds in Water Reclamation Facility of $4.0 million, Solid Waste of $3.5 million, Transit of $0.7 million, Building Safety of $1.8 million, Airport of $0.8 million and Convention Center of $0. 2 million with a decrease in and Storm Sewer Maintenance of $0. 1 million.
· Current and Other Assets totaled $26.2 million for the fiscal year, an increase of $1.2 million ( 5%).
Accounts receivable h ad an overall increase of $1. 5 million and lease receivables had a decrease of $0.3 million.
· Capital Assets totaled $371.7 million for the fiscal year , a decrease of $4.7 million (1%) compared to the prior year. C onstruction in progress had a decrease of $ 4.2 million and buildings had an increase of $4.3 million as the airport hangar project was capitalized. Improvements other than buildings had an increase of $0. 3 million. Machinery, Equipment and Vehicles had additions and retirements which mainly consisted of additions of five new refuse trucks in Solid Waste of $ 1.5 million, building surveillance system and two ice machines for the Convention Center of $0.1 million, four high flow rate pumps, RPGS equipment, lab equipment, one excavator, and an aeration blower in Wastewater of $0.9 million, and four passenger busses and two tr ailers in Transit of $4.1 million offset by r etirements which included twenty- four refuse trucks, two trailers and a forklift in Solid Waste of $5.6 million and one CCTV Van with camera equipment in Wastewater of $0. 1 million. Infrastructure increased by $1.1 million which includes Storm Sewer lines and Sanitary Sewer lines. Accumulate d depreciation and amortization increased by $ 6.2 F Y 21-22 F Y 20-21 *
$ %
Assets
Cash and Investments 174.4$ 163.5$ 10.9$ 7% Current and Other Assets 26.2 25.0 1.2 5% Internal Balances (2.6) (3.0) 0.4 -13% Capital Assets 371.7 376.4 (4.7) -1% Total Assets 569.7 561.9 7.8 1% Deferred Outflows of Resources
Deferred Pensions 3.8 4.4 (0.6) -14% Total Deferred Outflows of Resources 3.8 4.4 (0.6) -14% Liabilities
Other Liabilities 11.6 9.8 1.8 18% Long-Term Debt Outstanding 117.6 133.0 (15.4) -12% Total Liabilities 129.2 142.8 (13.6) -10% Deferred Inflows of Resources
Deferred Pensions 9.0 0.6 8.4 1400% Deferred Leases 6.1 6.5 (0.4) 100% Total Deferred Inflows of Resources 15.1 7.1 8.0 113% Net Position
Net Investment in Capital Assets 276.5 277.3 (0.8) 0% Restricted 11.0 12.8 (1.8) -14% Unrestricted 141.7 126.3 15.4 12% Total Net Position 429.2$ 416.4$ 12.8$ 3% * As restated due to prior period adjustments and the implementation of GASB 87.
Table 4
Business-Type Net Position
(in millions)
Increase (Decrease)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
15 Management Discussion and Analysis
million as assets were depreciated for the year . See Table 8, Capital Assets, Net of Accumulated Depreciation below for additional detail.
· Deferred Outflows of Resources totaled $3.8 million for the fiscal year, a decrease of $0.6 million (14%).
The decrease is due to the GASB 68 annual adjustment.
· Long-Term Debt totaling $117.6 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 $ 3.6 million and adjustments to the Net Pension Liability of $ 11.8 million resulted in a net decrease in long term debt of $15.4 million. See the accompanying Notes to Basic Financial Statements, Note 7- Long-Term Debt, and Note 10 Employee Benefits for further detail.
· Deferred Inflows of Resources totaled $15.1 million for the fiscal year, an increase of $ 8.0 million (113%).
The increases include Deferred Pensions of $8.4 million due to the GASB 68 annual adjustment and a decrease in Deferred Leases of $0.4 million due to lease activity.
· Net Position – Net Investment in Capital Assets totaling $276.5 million represents capital assets less accumulated depreciation and net of any debt used to finance its construction or purchase. This is a $0.8 million decrease as compared to last year.
· Restricted Net Position of $ 11.0 million is primarily found in Capital Projects funds which have been restricted for related capital projects and debt service reserves.
· Unrestricted Net Position of $ 141.7 million experienced a n increase of $ 15.4 million. Unrestricted Net Position is normally the part of net position that can be used 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 $12.8 million during fiscal year 20 21-
22. Total Business -type revenues of $ 87.4 million decreased by $ 2.4 million ( 3%) when compared to last year.
Total Business-type expenses totaled $78.3 million, an increase of $5.2 million (7%) as compared to last year.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
16 Management Discussion and Analysis
Revenues
· Charges for Services – These revenues were up collectively by $8.2 million due to increased revenue at the Convention Center of $1.0 million as a result of the facility opening after being shut down the prior year due to the COVID -19 pandemic, and Transit of $1. 6 million also due to the COVID- 19 pande mic as fees for ridership were suspended in the prior year as well as the Sequoia S huttle. Increases also include Water Reclamation facility o f $3. 3 million (residential and industrial users) , Airport of $0.5 million (fuel sales), Solid Waste of $1.0 mill ion (commercial, single and multifamily fees) , and Building Safety of $0.8 million (overall increase in construction permits).
· Operating and Capital Grants and Contributions – The combined revenue from operating and capital grants & contributions decreased this year $ 6.4 million due to decreases in Storm Sewer Maintenance of $1.7 million, Water Reclamation Facility of $ 1.1 million, Airport of $0.3 million, Solid Waste of $1.9 million and Transit of $1.4 million as funds received less grants, contributions, and assets from impact fee funds.
F Y 21-22 F Y 20-21 *
$ %
REVENUES
Program Revenues:
Charges for Services 68.0$ 59.8$ 8.2$ 14% Operating Grants & Contributions 14.0 15.4 (1.4) -9% Capital Grants & Contributions 7.1 12.1 (5.0) -41% Investment Earnings (5.0) 0.7 (5.7) -814% Miscellaneous 3.3 1.8 1.5 83% Total Revenues 87.4 89.8 (2.4) -3%
EXPENSES
Water Reclamation Facility 25.4 22.7 2.7 12% Storm Sewer Maintenance 2.7 2.9 (0.2) -7% Solid Waste 21.7 19.2 2.5 13% Transit 19.8 17.3 2.5 14% Convention Center 1.2 2.4 (1.2) -50% Airport 2.5 3.1 (0.6) -19% Baseball - 0.2 (0.2) -100% Building Safety 3.1 3.4 (0.3) -9% Animal Control 1.9 1.9 - 0% Total Expenses 78.3 73.1 5.2 7% Increase in Net Position
Before Transfers 9.0 16.7 (7.7) -46% Transfers 3.8 3.4 0.4 12% Increase in Net Position 12.8 20.1 (7.3) -36% Net Position at Beg. Year, as restated 416.4 396.3 20.1 5% Net Position at End of Year 429.2$ 416.4$ 12.8$ 3% * As restated due to prior period adjustments.
Table 5
Changes in Business-Type Net Position
(in millions)
Increase (Decrease)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
17 Management Discussion and Analysis
Expenses
· Water Reclamation Facility – There were $25.4 million in expenses, an increase of $2.7 million (12%) due to increases in capital related activity of $1.8 million compared to the prior year , utility expenses of $1.1 million, chemical expenses of $0.3 million, bad debt expenses of $0.1 million, and allocated expenses and services provided of $0. 3 million, with decreases in equipment supply and maintenance repair of $0.2 million, contracted professional services of $ 0.2 million for farming services and salaries and benefits of $1.3 million due to vacancies and the annual pension adjustments.
· Storm Sewer Maintenance – There were $2.7 million in expenses , a decrease of $0.2 million (7%) mainly due to decreases in capital related activity of $0.4 million, offset by increases in maintenance and operations expenses of $0.1 million consisting of allocated expenses and services provided, and salaries and benefits of $43K due to the annual pension adjustments.
· Solid Waste – There were $ 21.7 million in expenses, a n in crease of $ 2.5 million ( 13%) mainly due to increases were seen in capital related activity of $1.0 million, depreciation of $0.5 million, and salaries and benefits of $0.9 million due to vacancies and the annual pension adjustments.
· Transit – There were $19.8 million in expenses, a n increase of $2.5 million (14%) mainly due to increases in scheduled bus contrac ted services and the Sequoia Shuttle resuming operation ( COVID shutdown prior year) of $1.6 million, allocated expenses and services provided of $0. 4 million, CNG fuel of $0.5 million, utility expenses of $0.1 million , revenue share expense of $0.1 million due to increased advertising, and depreciation of $0.2 million, offset by decreases in salaries and benefits of $0.2 million due to the annual pension adjustments and capital related activity of $0.4 million
· Convention Center – There were $1.2 million in expenses, a de crease of $1.2 million (50%) mainly due to the annual pension adjustments of $2.0 million being less than the previous year . Increases were seen in salaries and benefits of $0. 6 million due to increased staffing level s and maintenance and operations of $0.2 million due to the increase in events as compared to the prior year when restrictions were in place as a result of the COVID-19 pandemic. The state guidelines allowed for reopening of the Convention Center June 15, 2021.
· Airport – There were $2. 5 million in expenses, a decrease of $0. 6 million (19%) mainly due to decreased capital related activity of $1.2 million as compared to the prior year and an increase in salaries and benefits of $ 0.1 million offset by a decrease in the annual pension adjustments. These decreases were partly offset by increases to maintenance and operations expenses of $0. 6 million consisting of aviation fuel of $0.5 million and allocated expenses and services provided of $0.1 million.
· Baseball – The baseball fund is no longer recognized as a Business -Type Fund and is currently being presented in the non-major financial statements.
· Building Safety – There were $ 3.1 million in expenses , a de crease of $0. 3 million ( 9%) mainly due to a decrease to salaries and benefits of $0.6 million due to vacancies and the annual pension adjustments and increases in maintenance and operations expenses of $0.3 million consisting of computer software support of $0.1 million and professional & specialized services for consulting of $0.2 million.
· Animal Control – There were $ 1.9 million in expenses , consistent with the prior year. Decreases were seen in s alaries and benefits of $20K due to vacancies and the annual pension adjustments offset by increases in maintenance and operations expenses of $ 41K consisting of allocated expenses and services provided of $57K, capital related activity of $14K, offset by a decrease in bad debt expense of $25K.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
18 Management Discussion and Analysis
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.
Assets – The composition of assets changed by $ 63.1 million (24%) during the year with increases in cash , other assets, and a decrease in intergovernmental balances . Cash and investments increased $ 61.8 million (32%) mainly due to revenues exceeding expenditures and other sources & (uses) by $42.3 million. Other assets increased $ 5.3 million (8%) as increases were seen i n accounts receivable of $5.3 million (the majority is Transportation Impact F ee receivables of $3.7 million and other funds of $1.6 million) , loans receivable of $ 1.1 million offset by a decrease in tax es receivable of $1.1 million . Intergovernmental balances de creased $4.0 million (66%) as a result of a decrease in advances to other funds of $ 1.5 million and a decrease in amounts due from other governmental agencies of $2.5 million.
Liabilities – Liabilities have increased $16.9 million (70%) mainly due to a n increase in other liabilities of $1 7.0 million (75%) due to the increase in unearned revenue for the American Rescue Plan fund of $14.4 million and accounts payable of $2.6 million.
Deferred Inflows of Resources – Deferred Inflows of Resources in creased $ 3.9 million (73%) mainly due to increases in impact fees receivable of $4.0 million and a decrease in lease receivables of $0.1 million.
F Y 21-22 F Y 20-21 *
$ %
Asse ts
Cash and Investments 257.3$ 195.5$ 61.8$ 32% Other Assets 70.7 65.4 5.3 8%
Intergovernmental Balances 2.1 6.1 (4.0) -66% Total Assets 330.1 267.0 63.1 24%
Liabilities
Advances From Other Funds 1.4 1.5 (0.1) -7% Other Liabilities 39.7 22.7 17.0 75%
Total Liabilities 41.1 24.2 16.9 70%
Deferred Inflows of Resources
Unavailable Revenue 9.5 5.5 4.0 73% Leases 2.0 2.1 (0.1) 100%
Total Deferred Inflows of Resources 11.5 7.6 3.9 73% Fund Balances
Nonspendable 1.6 3.5 (1.9) -54%
Restricted 163.3 145.3 18.0 12%
Committed 78.7 52.8 25.9 49%
Assigned 28.2 28.5 (0.3) -1%
Unassigned 5.7 5.1 0.6 12%
Total Fund Balances 277.5$ 235.2$ 42.3$ 18% * As restated due to prior period adjustments and the implementation of GASB 87.
Table 6
Balance Sheet - Governmental Funds
(in millions)
Increas e (Decreas e)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
19 Management Discussion and Analysis
Fund Balances - By June 30, 20 22, the City’s Governmental Funds had a total fund balance of $ 277.5 million, an increase of $42.3 million (18%) 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.
Revenues increased $ 10.2 million from the prior year . S ales tax increased $11.2 million which includes growth in general sales tax of $8.1 million (21%), Measure N sales tax of $ 2.8 million (17%) and Measure T sales tax of $ 1.4 million (17%). Measure R sales tax revenues had a decrease of $1.1 million (17%) as funding for projects in those funds were received on a reimbursement basis . Property tax revenue saw an increase of $1. 8 million (7%). Other increases in revenues included fees and fines of $3.1 million as impact fee revenue was up , other taxes of $1. 6 million which include transient o ccupancy tax and franchise fees, charges for current services of $2.4 million and miscellaneous of $1.0 million which $0.8 million is due to the implementation of GASB 87. Decreases were seen in subventions and grants of $4.5 million as less funding was obtained for projects and uses of money and property of $6.4 million as there was a significant fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31, offset by interest earnings as they were slightly up $0.1 million (2%) due to higher earnings rates as compared to the prior year.
Expenditures increased by $7.0 million mainly due to increases in capital related projects compared to the prior year of $ 2.1 million. Other increases in expenses were seen in P olice of $2. 4 million, Fire of $1. 9 million, Community Services of $ 2.1 million, Public Works of $0.6 million, and Community Development of $0.6 million, and decreases were seen in Housing & Community Grants of $1.3 million, and General Government of $1.4 million.
Other Financing Sources & Uses in the governmental funds had a n increase of $4.4 million mainly due to transfers out exceeding transfers in for the current year.
ANALYSIS OF MAJOR GOVERNMENTAL FUNDS
General Fund - The General Fund saw a change in fund balance with an increase of $1.0 million. The General Fund had an overall increase in revenues of $ 12.6 million (15%) as compared to last year. The increase s included sales tax of $ 8.1 million (21%), property taxes of $1. 8 million (7%), other taxes of $1. 6 million (17%), fees and fines of $0.1 million (7%), charges for current services of $2.1 million (76%) and miscellaneous revenue of $1.0 million F Y 21-22 F Y 20-21 *
$ %
Revenues 163.2$ 153.0$ 10.2$ 7%
Expenditures 113.5 106.5 7.0 7%
Excess (Deficiency) of Revenues
Over (Under) Expenditures 49.7 46.5 3.2 7% Other Sources & (Uses) (7.4) (3.0) (4.4) 147% Net Change 42.3$ 43.5$ (1.2)$ -3%
* As restated due to prior period adjustments.
Table 7
Statement of Revenues & Expenditures - Governmental Funds (in millions)
Increas e (Decreas e)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
20 Management Discussion and Analysis
(77%) of which $0.8 million is due to the implementation of GASB 87. Decreases occurred in subventions and grants of $0.6 million (28%), and uses of money and property of $1.5 million (184%).
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 F und. This fiscal year , the largest transfer out from the General Fund is to the Civic Center Fund totaling $14.2 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 $ 1.8 million. The increase include s sales tax of $ 2.8 million offset by a decrease in uses of money and property of $ 1.0 million. The Measure N Fund’s fund balance increased $7.6 million to $37.3 million as a result of revenues exceeding expenditures for the year.
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 $ 14.5 million in notes and loans receivable . The notes and l oans receivable are for housing assistance through the various grant programs as well as past rental rehabilitation loans . Housing & Community Grant’s fund balance increased $0.7 million to $16.1 million as a result of revenues exceeded expenditures for the year.
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. Housing Successor Agency’s fund balance decreased by $0. 1 million to $10.6 million as a result of expenditures exceeding revenues for t he year.
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 fr om the COVID pandemic. The funds’ assets include $28.5 million in unearned revenue. The American Rescue Plan Fund’s balance is $67K.
Transportation - The transportation Fund is used to account for the financing and construction of new streets, roads, and various new transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees. The T ransportation Fund’s fund balance increased $ 3.1 million to $19.5 million as a result of revenues exceeding capital projects for the year.
Civic Center – The Civic Center fund is used to account for the construction of the Civic Center and related capital improvement projects. Revenue i s collected from land sales, one time monies as incentive revenues and General Fund surplus or other transfers authorized by City Council. The Civic Center Fund’s balance increased $14.1 million mainly due to transfers from the General Fund of $14.2 million.
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 Inform ation. Combined they received $36.9 million in revenue and have a combined Fund Balance at year -end of $93.2 million.
ANALYSIS OF MAJOR PROPRIETARY FUNDS
Business-Type Funds
By June 30, 202 2, the City’s Proprietary Funds combined net position totaled $ 431.9 million, an increase of $13.2 million from the prior fiscal year, which was a combination of increases and decreases in various funds .
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
21 Management Discussion and Analysis
Enterprise operating revenues, including charges for services and grants and contributions , were $82.0 million this year, an increase of $6.8 million from last year. Grants and contributions had a decrease of $1.4 million mainly due to receiving less grant revenue in Transit due to the prior year receiving COVID grant funding. The increase in charges for services of $8.2 million is mainly due to increase in the Convention Center of $1. 0 million as a result of the facility opening after being shut down the prior year due to the COVID-19 pandemic, and Transit of $1.6 million also due to the COVID-19 pandemic restrictions being lifted as fees for ridership were suspended in the prior year.
Increases also include Water Reclamation facility of $3. 3 million (residential and industrial users) , Airport of $ 0.5 million ( fuel sales), Solid Waste of $ 1.0 million (commercial, single and multifamily fees) , and Building Safety of $0.8 million (overall increase in construction permits).
Operating expenses were $ 74.5 million this year, a n increase of $ 3.9 million from last year mainly due to Convention Center having an increase of $0.6 million due to increased staffing levels and operational events due to reopening after restrictions related to COVID -19 as the facility w as closed, Transit having a n increase of $ 2.4 million mainly due to resuming cancelled bus services also related to the COVID-19 pandemic in addition to an increase for scheduled bus contracted services , Water Reclamation Facility of $2.3 million due to increased project related activity offset by other funds having project related activity of $1.4 million.
Water Reclamation Facility - Operating revenues in creased $3.1 million due to a combination of increases in industrial fees of $ 1.7 million, front footage fees of $0.2 million, trunk line capacity fees of $0.2 million , services provided of $0.1 million and residential fees of $1.0 million which are mainly due to the prior year having a change in utility bill due dates for all accounts to the 30 th of the month , offset by de creases in restaurant fees of $0.1 million. Operating expenses in creased by $ 2.4 million mainly due to increases in capital related activity of $1.8 million compared to the prior year, utility expenses of $1.1 million, chemical expenses of $0.3 million, bad debt expenses of $0.1 million, and allocated expenses and services provided of $0.3 million, with decreases in equipment supply and maintenance re pair of $0.2 million, contracted professional services of $0.2 million for farming services and salaries and benefits of $0.9 million due to vacancies and the annual pension adjustments.
Storm Sewer Maintenance - Operating revenues had a slight increase of $3K. Operating expenses decreased by $0.2 million including decreases in project related activity of $0.4 million, offset by increases in maintenance and operations expenses of $0.1 million consisting of allocated expenses and services provided , and salaries and benefits of $43K due to the annual pension adjustments.
Solid Waste - Operating revenues increased $1.1 million mainly due to increases in single family fee revenue of $0.1 million, multifamily fee revenue of $0.1 million, commercial recycling fee revenue of $0. 2 million and commercial fee revenue of $0.8 million offset by a decrease in CNG fuel rebates of $0.1 million due to the timing of receiving the fuel rebate. Operating expenses in creased by $ 1.9 million mainly due to an increase of capital related activity of $1.0 million, depreciation expense of $0.5 million , and s alaries and benefits of $ 0.4 million mainly due to vacancies and the annual pension adjustments.
Transit – Operating revenues in creased $0.3 million from last year . Increases were seen in Charges for S ervices of $1.5 million, Sequoia Shuttle ticket sales of $0.7 million (as the Sequoia Shuttle resumed regular operation) , farebox sales of $0.2 million and ticket sales of $0.1 million as ridership fees were no longer being suspended from the COVID-19 pandemic. Increases were also seen in carbon credits of $ 0.1 million due to a timing issue of federal reimbursements, offset by a decrease in CNG sales of $0. 1 million. In addition, operating grant revenue decreased $1.3 million due to the prior year receiving COVID grant funding. Operating expenses increased by $ 2.3 million mainly due to increases in maintenance and operations of $1.6 million for scheduled increases for bus contracted services and the Sequoia shuttle resuming operation after the ending of the COVID shutdown, allocated expenses and services provided of $0.4 million, CNG fuel of $0.5 million, utility expenses of $0.1 million , revenue share expense of $0.1 million due to increased advertising, and depreciation of $0.2 million, offset by decreases in salaries and benefits of $0.2 due to annual pension adjustments and capital related acti vity of $0.4 million.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
22 Management Discussion and Analysis
Convention Center - Operating revenues increased by $1.0 million as COVID19 restrictions were lifted . As operations and events were allowed by the stat e to reopen on June 15, 2021, i ncreases were mainly seen in conference room rental of $0.8 million, and food and bar sales of $0.2 million. O perating expenses de creased by $1.2 million mainly due to the annual pension adjustments offset by increases in salaries and benefits of $0. 6 million due to increased staffing level s, and m aintenance and operations of $0.2 million due to the increase in events as compared to the prior year.
Airport - Operating revenues increased by $0.5 million mainly due to increases in fuel sales of $0.5 million, hanger rentals of $60K, and utility (ele ctric) fee of $23K, offset by decreases for “into plane” fuel sales of $16K and fuel flowage fees of $16K. Operating expenses de creased by $0. 6 million mainly due to a decrease in capital related activity of $1.2 million, offset by increases in maintenanc e and operations for aviation fuel of $0.5 million and allocated expenses and services provided of $0.1 million with a decrease in salaries and benefits of $0.1 million due to the annual pension adjustments.
Building Safety – Operating revenues increased by $0.8 million due to a n overall increase in construction permits compared to prior years activity. Operating expenses decreased by $0.4 million including decreases in salaries and benefits of $0.6 million due to vacancies and the annual pension adjustments with increases in maintenance and operations expenses of $0. 2 million mainly due to computer software support of $0.1 million and pro fessional & specialized services for consulting of $0.2 million offset by a decrease in capital related activity of $0.1 million.
Animal Control – Operating revenues dec reased by $59K as a result of de creased activity for services provided to Tulare of $25K as they no longer required animal disposal services . In addition, decreases in license fees of $19K, tax rolled fines of $18K, and grant/contributions funding of $43K, were offset by increases in a dministration, fines of $ 29K, kennel fees of $9K, facility/shelter fee of $5K and penalty/late charges of $3K . Operating expenses decreased by $ 30K mainly due to a decrease in salaries and benefits of $ 71K due to vacancies and the annual pension adjustments with an in crease in maintenance and operations expenses of $ 41K consisting of allocated expenses and services provided of $57K , and capital related activity of $14K offset by a decrease in bad debt expense of $25K.
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 expenditures increased by $2.0 million to a final budgeted amount of $ 70.6 million, mainly due to an increase of $1.9 million in Capital Outlay (Projects).
General Fund - Final Budget and Actual Comparison
Total revenues were $21.4 million higher than the final budgeted amount, as detailed below . The fiscal year 2021- 22 budget was adopted during the initial stages of the COVID -19 pandemic in FY 19-20. These were very uncertain times as historic shutdowns were occurring making econ omic forecasting very difficult. Because of this, staff budgeted with worst case scenarios in mind.
· Sales Tax – was $16.1 million more than budgeted as the economy had growth, inflation had increased and averaged 7.7% for the year making goods and services more expensive, and new business opened within the City.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
23 Management Discussion and Analysis
· Property Tax – was $3.7 million more than budgeted as valuation increased more than anticipated due to increased development and increases in real estate prices.
· Transient Occupancy Tax – was $2.3 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 $ 0.5 million more than budgeted as business li cense activity was higher than anticipated for the year.
· Subventions and Grants – was $2.0 million less than budgeted mostly due to the City not drawing down awarded grant funding of $2.8 million for capital improvement programs as the project is still in progress and will draw down the grant upon completion of the project.
· Total Fees and Fines – was $ 0.1 million less than budgeted as vehicle code and parking violations were less than projected.
· Interest Earned – was $1.6 million less than budgeted due to the significant fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31. This annual adjustment for fair market valuation is an unrealized loss and will be recovered as the investments mature over the upcoming years.
· Engineering and Subdivision Services – was $1.1 million more than budgeted as these specialized services were higher than anticipated for the year as building growth continued in the City.
· Recreation Programs – was $0.6 million less than budgeted as these programs were highly impacted by the shutdown due to the COVID -19 pandemic. Programs were being offered however participation was down. Community wide special events were not being offered this year.
Total expenditures were $ 1.4 million more than budget. This difference was mainly due to the one-time wage lump sum payment/bonus of $0.7 million to employees, as well as the implementation of GASB 87 which required the recording of Lessee agreements of $0.8 million as an expense.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its Governmental and Business -Type activities as of June 30, 202 2 totaled $ 725.3 million (net of accumulated depreciation and amortization ), as shown in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization . For Govern ment-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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
24 Management Discussion and Analysis
Major capital asset events during the current fiscal year included the following:
Governmental
· Traffic signal at Riggin & County Center completed
· Traffic signal at Riggin & Giddings completed
· Caldwell Improvements Akers to Shady & Santa Fe to Lovers Lane in progress · Shirk Widening project in progress
· Riggin Widening project in progress
· Downtown Street lighting & pavement rehabilitation in progress · New Arbors at Plaza Park project completed
· Greenway Trail project completed
· Purchased 21 new VPD Patrol vehicles
· Purchased new Transfer Truck and Trailer for Streets Division
Business-type
· New Aircraft Hangar construction project completed
· Addition of storm drain infrastructure
· Purchased 5 Solid Waste collection vehicles
· Purchased 4 new 35” Catalyst busses
· Purchased Ditch Witch Vacuum Excavator
· Purchased new Aeration Blower
F Y 21-22 F Y 20-21 *
$ %
G overnmental Activities
Land 41.4$ 41.6$ (0.2)$ 0%
Buildings 45.3 46.6 (1.3) -3% Improvements 59.7 61.5 (1.8) -3% Equipment 20.3 18.9 1.4 7% Infrastructure 159.0 161.2 (2.2) -1% Construction in Progress 27.1 21.4 5.7 27% Leased Assets 0.7 0.8 (0.1) 100% Total 353.5$ 352.0$ 1.5$ 0%
Business-Type Activities
Land 26.2$ 26.1$ 0.1$ 0%
Buildings 36.2 33.1 3.1 9% Improvements 159.9 164.1 (4.2) -3% Equipment 28.2 27.3 0.9 3% Infrastructure 117.0 117.8 (0.8) -1% Construction in Progress 4.3 8.6 (4.3) -50% Total 371.8$ 377.0$ (5.2)$ -1%
Total City-Wide 725.3$ 729.0$ (3.7)$ -1% * As restated due to the implementation of GASB 87.
Table 8
Capital Assets, Net of Accumulated Depreciation & Amortization (in millions)
Increase (Decrease)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
25 Management Discussion and Analysis
Debt Administration
The City’s total long- term debt decreased by $ 4.5 million (4%) during the fiscal year, as shown in Table 9, Outstanding Debt . This wa s due to the City’s regularly scheduled debt service payments , lease 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.
F Y 21-22 F Y 20-21 *
$ %
G overnmental Activities
Certificates of Participation 8.5$ 9.4$ (0.9)$ -10% Lease Liabilities 0.7 0.8 (0.1) 100% Compensated Absences 6.0 5.8 0.2 3% Total 15.2 16.0 (0.8) -5% Business-Type Activities
Certificates of Participation 5.4 6.3 (0.9) -14% Lease 3.1 3.5 (0.4) -11% Notes - Direct Borrowings 86.8 89.3 (2.5) -3% Compensated Absences 1.2 1.1 0.1 9% Total 96.5$ 100.2$ (3.7)$ -4%
Total City-Wide 111.7$ 116.2$ (4.5)$ -4% * As restated due to the implementation of GASB 87.
Table 9
Outstanding Debt
(in millions)
Increase (Decrease)
26 27
BASIC FINANCIAL
STATEMENTS
28 City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2022
29 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 f inancial 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 Fund s 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 repor ts 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 th e 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 a rrive 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.
30 The accompanying notes are an integral part of these financial statements .
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 299,354,212$ 170,040,635$ 469,394,847$ Restricted Cash and Investments (Note 3) 397,149 4,365,229 4,762,378 Accounts Receivable 10,843,002 7,564,201 18,407,203 Leases Receivable (Note 16) 2,041,882 6,127,951 8,169,833 Interest Receivable 1,541,831 - 1,541,831 Taxes Receivable 19,050,179 296,505 19,346,684 Notes and Loans Receivable (Note 5) 36,952,162 134,280 37,086,442 Supplies 1,220,610 40,819 1,261,429 Inventory 221,595 71,558 293,153 Internal Balances (Note 4C) 2,623,668 (2,623,668) - Due from Other Governmental Units 729,302 11,902,310 12,631,612 Prepaids and Deposits 935,339 14,710 950,049 Capital Assets, Net of Accumulated Depreciation (Note 6):
Capital Assets Not Being Depreciated or Amortized 68,515,439 30,477,660 98,993,099 Capital Assets Being Depreciated or Amortized 285,008,927 341,278,284 626,287,211 Total Assets 729,435,297 569,690,474 1,299,125,771
DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 16,800,325 3,803,070 20,603,395 Total Deferred Outflows of Resources 16,800,325 3,803,070 20,603,395
LIABILITIES
Accounts, Interest, and Contracts Payable 9,318,946 7,193,180 16,512,126 Advances from Grantors and Third Parties - 2,856,360 2,856,360 Customer Deposits 811,348 1,430,452 2,241,800 Unearned Revenue 30,031,663 63,974 30,095,637 Accrued Personnel Costs 42,115 - 42,115 Long-Term Liabilities (Note 7):
Due Within One Year 2,287,759 4,128,056 6,415,815 Due in More Than One Year 12,957,476 92,330,564 105,288,040 Liability for Self-Insurance Claims (Note 11):
Due Within One Year 859,236 - 859,236 Due in More Than One Year 7,162,970 - 7,162,970 Net Pension Liability Due in More Than One Year (Note10) 60,448,014 21,155,679 81,603,693 Total Liabilities 123,919,527 129,158,265 253,077,792
DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 34,737,851 9,037,520 43,775,371 Lease Related (Note 16) 2,010,828 6,056,204 8,067,032 Total Deferred Inflows of Resources 36,748,679 15,093,724 51,842,403
NET POSITION
Net Investment in Capital Assets 344,300,095 276,505,115 620,805,210 Restricted for:
Capital Projects 108,507,786 6,629,471 115,137,257 Debt Service 8,685 4,365,229 4,373,914 Waterways/Groundwater Projects 8,726,828 - 8,726,828 Landscape & Lighting Districts 13,207,549 - 13,207,549 Public Safety 13,821,472 - 13,821,472 Roadway Projects 14,061,695 - 14,061,695 Golf Course Maintence Projects & Misc. 1,349,922 - 1,349,922 Total Restricted Net Position 159,683,937 10,994,700 170,678,637 Unrestricted 81,583,384 141,741,740 223,325,124
Total Net Position 585,567,416$ 429,241,555$ 1,014,808,971$
CITY OF VISALIA
STATEMENT OF NET POSITION
JUNE 30, 2022
31 The accompanying notes are an integral part of these financial statements .
Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
General Government 2,236,655$ 1,381,102$ 1,486,735$ 881,131$ 1,512,313$ -$ 1,512,313$ Community Development (3,942,056) 1,205,740 38,193 - 5,185,989 - 5,185,989 Housing & Community Grants 2,181,990 22,016 3,914,291 - 1,754,317 - 1,754,317 Public Safety
Police 41,080,859 2,817,625 788,958 277,172 (37,197,104) - (37,197,104) Fire 20,379,865 2,142,496 40,609 491 (18,196,269) - (18,196,269) Public Works 19,716,826 15,791,336 - 9,459,595 5,534,105 - 5,534,105 Community Services 14,827,358 10,394,532 - - (4,432,826) - (4,432,826) Interest on Long-Term Debt 362,130 - - - (362,130) - (362,130) Total Governmental Activities 96,843,627 33,754,847 6,268,786 10,618,389 (46,201,605) - (46,201,605) B usiness-Type Activities
Convention Center 1,180,363 1,547,005 - - - 366,642 366,642 Airport 2,544,619 2,313,055 - 1,899,246 - 1,667,682 1,667,682 Water Reclamation Facility 25,450,117 29,651,281 - 377,273 - 4,578,437 4,578,437 Storm Sew er Maintenance 2,682,523 1,323,551 - 1,567,411 - 208,439 208,439 Solid Waste 21,658,796 21,573,595 171,420 - - 86,219 86,219 Transit 19,791,018 5,160,837 13,851,052 3,201,058 - 2,421,929 2,421,929 Animal Control 1,934,727 636,081 7,604 - - (1,291,042) (1,291,042) Building Safety 3,099,212 5,771,399 - - - 2,672,187 2,672,187 Total Business-Type Activities 78,341,375 67,976,804 14,030,076 7,044,988 - 10,710,493 10,710,493 Total 175,185,002$ 101,731,651$ 20,298,862$ 17,663,377$ (46,201,605) 10,710,493 (35,491,112) General R evenues
Taxes:
Sales Taxes 82,151,189 - 82,151,189 Property Taxes 29,810,247 - 29,810,247 Transient Occupancy Taxes 4,589,178 - 4,589,178 Franchise Taxes 3,155,645 - 3,155,645 Business License Taxes 2,968,958 - 2,968,958 Investment Earnings (loss) (5,351,055) (5,026,075) (10,377,130) Miscellaneous 1,195,570 3,355,976 4,551,546 Transfers (3,835,950) 3,835,950 -
Total General Revenues and Transfers 114,683,782 2,165,851 116,849,633 Change in Net Position 68,482,177 12,876,344 81,358,521 Net Position - Beginning of Year, As Restated (Note 14) 517,085,239 416,365,211 933,450,450 Net Position - End of Year 585,567,416$ 429,241,555$ 1,014,808,971$
CITY OF VISALIA
STATE ME NT OF ACTIVITIE S
FOR THE YEAR ENDED JUNE 30, 2022
Net (Expense) Revenue
Program Revenues and Changes in Net Position
32 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
33 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 2021-22.
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 rela ted 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 th e 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) , Pe rmanent 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 rehabili tation 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.
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.
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.
34 The accompanying notes are an integral part of these financial statements .
General
Fund
Measure N -
Special Revenue
Fund
Housing &
Community
Grants - Special
Revenue Fund
Housing
Successor
Agency - Special
Revenue Fund
ASSETS
Cash and Investments (Note 3) 30,304,591$ 33,877,098$ 1,427,713$ 1,814,129$ Restricted Cash and Investments (Note 3) - - - - Accounts Receivable 1,723,339 - - - Leases Receivable (Note 16) 532,649 - - - Interest Receivable 1,541,831 - - - Taxes Receivable 11,787,823 3,775,485 26,626 - Notes and Loans Receivable (Note 5) 12,211,244 - 14,459,239 8,773,988 Supplies 14,028 - - - Inventory (Note 1I) 136,564 - - - Advances to Other Funds (Note 4B) 1,389,252 - - - Due from Other Governmental Units 456,450 - 167,295 - Prepaids and Deposits 26,515 - - - Total Assets 60,124,286$ 37,652,583$ 16,080,873$ 10,588,117$
LIABILITIES
Accounts, Interest and Contracts Payable 1,652,388$ 384,083$ 36,374$ 2,924$ Advances from Other Funds (Note 4B) - - - - Customer Deposits 420,599 - - - Unearned Revenue 1,355,828 - - - Accrued Personnel Costs (Note 10 H) 39,840 - - - Total Liabilities 3,468,655 384,083 36,374 2,924
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax 1,096,588 - - - Unavailable Revenue - Business Tax 704,346 - - - Unavailable Revenue - Impact Fees 2,789 - - - Unavailable Revenue - Misc 533,384 - - - Unavailable Revenue - Asset Forfeiture - - - - Leases (Note 16) 526,204 - - - Total Deferred Inflows of Resources 2,337,107 - - - FUND BALANCES (Note 9)
Nonspendable 1,563,869 - - - Restricted - 27,895,454 14,957,289 10,059,284 Committed 17,558,668 9,373,046 1,087,210 225,090 Assigned 27,938,850 - - 300,819 Unassigned 6,730,933 - - - Total Fund Balances 53,792,320 37,268,500 16,044,499 10,585,193 59,598,082$ 37,652,583$ 16,080,873$ 10,588,117$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Major Funds
CITY OF VISALIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
35 The accompanying notes are an integral part of these financial statement s.
Non-Major Funds
American
Rescue Plan -
Special
Revenue Fund
Transportation
- Capital
Project Fund
Civic Center -
Capital Project
Fund
All Other
Governmental
Funds Total
ASSETS
Cash and Investments (Note 3) 28,551,845$ 22,159,999$ 46,903,819$ 92,226,282$ 257,265,476$ Restricted Cash and Investments (Note 3) - - - 8,685 8,685 Accounts Receivable - 6,277,321 - 2,831,024 10,831,684 Leases Receivable (Note 16) - - - 1,509,233 2,041,882 Interest Receivable - - - - 1,541,831 Taxes Receivable - 25,000 - 3,435,245 19,050,179 Notes and Loans Receivable (Note 5) - 862,021 130,532 515,138 36,952,162 Supplies - - - - 14,028 Inventory (Note 1I) - - - 85,031 221,595 Advances to Other Funds (Note 4B) - - - - 1,389,252 Due from Other Governmental Units - - - 105,557 729,302 Prepaids and Deposits - - - - 26,515 Total Assets 28,551,845$ 29,324,341$ 47,034,351$ 100,716,195$ 330,072,591$
LIABILITIES
Accounts, Interest and Contracts Payable 27$ 5,640,208$ 29,927$ 1,088,418$ 8,834,349$ Advances from Other Funds (Note 4B) - - - 1,389,252 1,389,252 Customer Deposits - - - 390,749 811,348 Unearned Revenue 28,485,137 - - 190,698 30,031,663 Accrued Personnel Costs (Note 10 H) - - - - 39,840 Total Liabilities 28,485,164 5,640,208 29,927 3,059,117 41,106,452
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax - - - - 1,096,588 Unavailable Revenue - Business Tax - - - - 704,346 Unavailable Revenue - Impact Fees - 4,187,908 - 2,517,438 6,708,135 Unavailable Revenue - Misc - - - - 533,384 Unavailable Revenue - Asset Forfeiture - - - 460,493 460,493 Leases (Note 16) - - - 1,484,624 2,010,828 Total Deferred Inflows of Resources - 4,187,908 - 4,462,555 11,513,774 FUND BALANCES (Note 9)
Nonspendable - - - - 1,563,869 Restricted - 19,496,225 47,004,424 90,836,023 210,248,699 Committed 977,315 - - 2,436,321 31,657,650 Assigned - - - - 28,239,669 Unassigned (910,634) - - (77,821) 5,742,478 Total Fund Balances 66,681 19,496,225 47,004,424 93,194,523 277,452,365 28,551,845$ 29,324,341$ 47,034,351$ 100,716,195$ 330,072,591$ Major Funds
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
36 37
The accompanying notes are an integral part of these financial statements.
Total Fund Balances - Governmental Funds 277,452,365$
CAPITAL ASSET AND LEASED ASSET TRANSACTIONS:
Capital Assets and Leased 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 and leased assets and accumulated amortization.
Capital Assets at Cost 494,535,874$
Accumulated Depreciation (155,809,440)
Leased Assets at Cost 837,396
Accumulated Amortization (120,017) 339,443,813
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. 41,259,496
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 (8,501,308)
Lease Liabilities (722,963)
DEFERRED INFLOWS / (OUTFLOWS) OF RESOURCES
Deferred Inflows of Resources: In governmental funds, future payments for receivables on deliquent property taxes, business taxes and deferred impact fees are treated as deferred inflows of resources. In government-wide statements, future payments of deliquent property taxes, business taxes and deferred impact fees are recorded as an offset to receivables. 9,502,946 Net pension liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
Pension related deferred outflows of resources - net of $795,284 allocated to the internal service funds 16,005,041 Aggregate net pension liabilities - net of $4,423,998 allocated to the internal service funds (56,024,016) Pension related deferred inflows of resources - net of $1,889,893 allocated to the internal service funds (32,847,958) (72,866,933) Total Net Position - Governmental Activities 585,567,416$
CITY OF VISALIA
RECONCILIATION OF THE BALANCE SHEET -
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
38 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, 2022
General
Fund
Measure N -
Special Revenue
Fund
Housing &
Community
Grants - Special
Revenue Fund
Housing
Successor
Agency - Special
Revenue Fund
REVENUES
Sales Taxes 47,052,657$ $ 19,717,002 -$ -$ Property Taxes 29,725,873 - - - Other Taxes 10,790,531 - - - Subventions and Grants 1,597,853 8,231 3,952,484 325,021 License and Permits 46,588 - - - Fees and Fines 1,070,138 - 14,175 - Uses of Money and Property (675,060) (944,964) 2,810 26,430 Charges for Current Services 4,880,929 77,308 5,000 - Miscellaneous 2,381,522 40,521 638 30 Total Revenues 96,871,031 18,898,098 3,975,107 351,481
EXPENDITURES
Current:
General Government 3,126,598 271,018 - 180,779 Community Development 3,045,632 - 79,739 - Housing & Community Grants - - 947,055 - Public Safety:
Fire 16,324,009 1,286,697 - - Police 35,557,194 4,942,293 - - Public Works 4,276,183 - - - Community Services 7,871,256 668,948 - - Capital Outlay 1,669,399 4,279,194 2,229,013 329,320 Debt Service (Note 7):
Principal 114,433 - - - Interest and Fiscal Charges 9,199 - - - Total Expenditures 71,993,903 11,448,150 3,255,807 510,099 Excess (Deficiency) of
Revenues over (Under) Expenditures 24,877,128 7,449,948 719,300 (158,618) Other Financing Sources (Uses)
Sale of Land - 144,938 - 41,331 Proceeds From Sale of Capital Assets 46,775 - - - Transfers In (Note 4A) 134 - 30,191 - Transfers Out (Note 4A) (23,929,268) - - - Total Other Financing Sources (Uses) (23,882,359) 144,938 30,191 41,331 Net Change in Fund Balances 994,769 7,594,886 749,491 (117,287) Fund Balances - Beginning of Year 53,145,697 29,673,614 15,295,008 10,702,480 Prior Period Adjustment (Note 14) (348,146) - - - Fund Balances - Beginning of Year, as Restated 52,797,551 29,673,614 15,295,008 10,702,480 Fund Balances - End of Year 53,792,320$ 37,268,500$ 16,044,499$ 10,585,193$ Major Funds
39 The accompanying notes are an integral part of these financial statements.
Non-Major Funds
American
Rescue Plan -
Special Revenue
Fund
Transportation -
Capital Project
Fund
Civic Center -
Capital Project
Fund
All Other
Governmental
Funds Total
REVENUES
Sales Taxes -$ -$ -$ 15,381,530$ 82,151,189$ Property Taxes - - - - 29,725,873 Other Taxes - - - 77,171 10,867,702 Subventions and Grants 879,318 - - 7,925,907 14,688,814 License and Permits - - - 11,100 57,688 Fees and Fines - 6,728,696 - 9,568,603 17,381,612 Uses of Money and Property 63,786 (573,505) (972,043) (1,904,315) (4,976,861) Charges for Current Services - - - 5,566,794 10,530,031 Miscellaneous 128 55,588 - 301,809 2,780,236 Total Revenues 943,232 6,210,779 (972,043) 36,928,599 163,206,284
EXPENDITURES
Current:
General Government - - 6,503 15,081 3,599,979 Community Development - - - 9,985 3,135,356 Housing & Community Grants - - - - 947,055 Public Safety: -
Fire - - - 2,931,268 20,541,974 Police - - - 4,292,352 44,791,839 Public Works - 35,375 - 1,568,924 5,880,482 Community Services - - - 3,285,124 11,825,328 Capital Outlay 879,318 3,040,445 310,902 8,651,807 21,389,398 Debt Service (Note 7): -
Principal - - - 926,598 1,041,031 Interest and Fiscal Charges - - - 352,931 362,130 Total Expenditures 879,318 3,075,820 317,405 22,034,070 113,514,572 Excess (Deficiency) of
Revenues over (Under) Expenditures 63,914 3,134,959 (1,289,448) 14,894,529 49,691,712 Other Financing Sources (Uses)
Sale of Land - - 1,200,000 - 1,386,269 Proceeds From Sale of Capital Assets - - - - 46,775 Transfers In (Note 4A) - - 14,221,739 1,707,178 15,959,242 Transfers Out (Note 4A) - - - (865,924) (24,795,192) Total Other Financing Sources (Uses) - - 15,421,739 841,254 (7,402,906) Net Change in Fund Balances 63,914 3,134,959 14,132,291 15,735,783 42,288,806 Fund Balances - Beginning of Year 2,767 15,546,676 32,738,468 77,100,109 234,204,819 Prior Period Adjustment (Note 14) - 814,590 133,665 358,631 958,740 Fund Balances - Beginning of Year, as Restated 2,767 16,361,266 32,872,133 77,458,740 235,163,559 Fund Balances - End of Year 66,681$ 19,496,225$ 47,004,424$ 93,194,523$ 277,452,365$ Major Funds
40 41
The accompanying notes are an integral part of these financial statements .
Total Net Changes in Fund Balances - Governmental Funds 42,288,806$ 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 and amortization expense. The difference between capital outlay expenditures and depreciation expense for the period is:
Expenditures for Capital Outlay 11,849,136$
Net Retirements of Capital Assets (1,416,874)
Depreciation and Amortizaiton Expenses (10,309,592) 122,670 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 Payments of Long-Term Debt 926,598
Principal Payments of Lease Liabilities 114,433 1,041,031 In governmental funds, repayments for deliquent property taxes, business taxes, and deferred impact fees are recognized as revenue. In government-wide statements, repayments of deliquent property taxes, business taxes, and deferred impact fees are recorded as reduction of receivables. Change in unavailable revenue relating to deliquent property taxes, business taxes, and deferred impact fees: 3,995,462 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: 4,520,282 Pension Related Expenses 16,513,926
Total Change in Net Position - Governmental Activities 68,482,177$
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, 2022
42 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
43 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 20 21-22.
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 2021-22.
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 owner s, 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 s helter related fees.
44 The accompanying notes are an integral part of these financial statements .
CITY OF VISALIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Non-Major Fund
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
Convention
Center
ASSETS
Current Assets
Cash and Investments (Note 3) 86,755,239$ 762,365$ 31,797,745$ 35,817,870$ 513,044$ Accounts Receivable 4,191,640 161,321 2,387,410 220,032 176,427 Leases Receivable (Note 16) - - - 45,293 - Taxes Receivable 105,353 63,963 127,189 - - Current Portion of Note and Loans Receivable (Note 5) 39,152 - - - - Supplies - - - - - Inventory (Note 1I) 20,053 20,766 - - - Due from Other Governmental Units - - 191,418 11,684,273 - Prepaid Expenses - - - - - Total Current Assets 91,111,437 1,008,415 34,503,762 47,767,468 689,471 Non-Current Assets
Restricted Cash and Investments (Note 3) 4,365,228 - - - 1 Leases Receivable - - - 133,415 - Non-current Portion of Note and Loans Receivable (Note 5) 95,128 - - - - Capital Assets (Note 6)
Land 6,952,363 9,437,692 1,567,372 4,361,902 829,047 Construction in Progress 2,230,495 2,093,155 - 5,044 - Buildings 2,937,862 - 197,130 19,589,783 22,428,375 Improvements Other Than Buildings 206,806,075 2,546,130 981,520 2,602,376 5,435,369 Machinery, Equipment and Vehicles 9,791,534 1,136,411 21,202,472 39,707,070 1,963,299 Infrastructure 92,524,761 60,892,301 - - - Accumulated Depreciation (84,100,108) (15,544,614) (11,515,536) (32,975,981) (19,535,118) Total Non-Current Assets 241,603,338 60,561,075 12,432,958 33,423,609 11,120,973 Total Assets 332,714,775 61,569,490 46,936,720 81,191,077 11,810,444
DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 960,681 139,894 1,372,116 250,249 213,818 Total Deferred Outflows of Resources 960,681 139,894 1,372,116 250,249 213,818
LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 2,826,066 59,200 612,382 2,455,351 238,071 Advances from Grantors and Third Parties - - - 2,856,360 - Accrued Personnel Costs - - - - - Customer Deposits 1,256,506 - - - 31,370 Current Portion of Long-Term Liabilities (Note 7):
Compensated Absences 90,852 - 42,351 - 28,689 Certificates of Participation and Loans 2,542,949 - - - 911,785 Liability for Self-insured Claims (Note 11) - - - - - Total Current Liabilities 6,716,373 59,200 654,733 5,311,711 1,209,915 Non-Current Liabilities
Advance from Other Funds (Note 4B) - - - - - Unearned Revenue 20,053 20,766 - - - Non-current Portion of Long-term Liabilities (Note 7):
Compensated Absences 190,348 23,406 462,504 65,192 54,272 Certificates of Participation and Loans 84,232,241 - - - 4,512,716 Liability for Self-insured Claims (Note 11) - - - - - Net Pension Liability (Note 10) 5,344,068 778,202 7,632,795 1,392,079 1,189,425 Total Non-Current Liabilities 89,786,710 822,374 8,095,299 1,457,271 5,756,413 Total Liabilities 96,503,083 881,574 8,750,032 6,768,982 6,966,328
DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 2,282,938 332,441 3,260,663 594,684 508,112 Lease Realated (Note 16) - - - 177,430 - Total Deferred Inflows of Resources 2,282,938 332,441 3,260,663 772,114 508,112 NET POSITION (Note 9)
Net Investment in Capital Assets 150,367,792 60,561,075 12,432,958 33,290,194 5,696,471 Restricted for:
Debt Service 4,365,228 - - - 1 Capital Projects 1,616,511 52,211 2,555,259 2,281,308 9,894 Unrestricted 78,539,904 (117,917) 21,309,924 38,328,728 (1,156,544) Total Net Position 234,889,435$ 60,495,369$ 36,298,141$ 73,900,230$ 4,549,822$ Major Funds
Business-Type Activities - Enterprise Funds
45 The accompanying notes are an integral part of these financial statements .
Airport
Building
Safety
Animal
Control Total
Governmental
Activities
Internal
Service Funds
ASSETS
Current Assets
Cash and Investments (Note 3) 796,560$ 13,135,047$ 462,765$ 170,040,635$ 42,088,736$ Accounts Receivable 65,846 1,060 360,465 7,564,201 11,318 Leases Receivable (Note 16) 409,372 - - 454,665 - Taxes Receivable - - - 296,505 - Current Portion of Note and Loans Receivable (Note 5) - - - 39,152 - Supplies 71,558 - - 71,558 1,206,582 Inventory (Note 1I) - - - 40,819 - Due from Other Governmental Units 26,619 - - 11,902,310 - Prepaid Expenses 14,710 - - 14,710 908,824 Total Current Assets 1,384,665 13,136,107 823,230 190,424,555 44,215,460 Non-Current Assets
Restricted Cash and Investments (Note 3) - - - 4,365,229 388,464 Leases Receivable 5,539,871 - - 5,673,286 - Non-current Portion of Note and Loans Receivable (Note 5) - - - 95,128 - Capital Assets (Note 6)
Land 3,000,590 - - 26,148,966 - Construction in Progress - - - 4,328,694 1,512 Buildings 6,469,160 - 6,750,891 58,373,201 654,910 Improvements Other Than Buildings 13,511,504 - - 231,882,974 218,785 Machinery, Equipment and Vehicles 1,093,596 296,067 33,750 75,224,199 36,659,717 Infrastructure - - - 153,417,062 - Accumulated Depreciation (12,605,976) (148,063) (1,193,756) (177,619,152) (23,454,371) Total Non-Current Assets 17,008,745 148,004 5,590,885 381,889,587 14,469,017 Total Assets 18,393,410 13,284,111 6,414,115 572,314,142 58,684,477
DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 119,483 525,274 221,555 3,803,070 795,284 Total Deferred Outflows of Resources 119,483 525,274 221,555 3,803,070 795,284
LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 216,085 762,805 23,220 7,193,180 484,597 Advances from Grantors and Third Parties - - - 2,856,360 - Accrued Personnel Costs - - - - 2,275 Customer Deposits - 142,096 480 1,430,452 - Current Portion of Long-Term Liabilities (Note 7):
Compensated Absences 20,373 16,586 8,422 207,273 1,214,672 Certificates of Participation and Loans - - 466,049 3,920,783 - Liability for Self-insured Claims (Note 11) - - - - 859,236 Total Current Liabilities 236,458 921,487 498,171 15,608,048 2,560,780 Non-Current Liabilities
Advance from Other Funds (Note 4B) - - - - - Unearned Revenue - 23,155 - 63,974 - Non-current Portion of Long-term Liabilities (Note 7):
Compensated Absences 35,723 129,840 39,233 1,000,518 4,806,292 Certificates of Participation and Loans - - 2,585,089 91,330,046 - Liability for Self-insured Claims (Note 11) - - - - 7,162,970 Net Pension Liability (Note 10) 664,660 2,921,985 1,232,465 21,155,679 4,423,998 Total Non-Current Liabilities 700,383 3,074,980 3,856,787 113,550,217 16,393,260 Total Liabilities 936,841 3,996,467 4,354,958 129,158,265 18,954,040
DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 283,937 1,248,246 526,499 9,037,520 1,889,893 Lease Realated (Note 16) 5,878,774 - - 6,056,204 - Total Deferred Inflows of Resources 6,162,711 1,248,246 526,499 15,093,724 1,889,893 NET POSITION (Note 9)
Net Investment in Capital Assets 11,468,874 148,004 2,539,747 276,505,115 14,080,553 Restricted for:
Debt Service - - - 4,365,229 - Capital Projects 114,288 - - 6,629,471 145,619 Unrestricted (169,821) 8,416,668 (785,534) 144,365,408 24,409,656 Total Net Position 11,413,341$ 8,564,672$ 1,754,213$ 431,865,223 38,635,828$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (2,623,668) Net Position of Business-Type Activities 429,241,555$
Non-Major Funds
Business-Type Activities - Enterprise Funds
46 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, 2022
Non-Major Fund
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
Convention
Center
OPERATING REVENUES
Charges for Services 29,651,281$ 1,323,551$ 21,573,595$ 5,160,837$ 1,547,005$ Operating Grants and Contributions - - 171,420 13,851,052 - Total Operating Revenues 29,651,281 1,323,551 21,745,015 19,011,889 1,547,005
OPERATING EXPENSES
Salaries, Wages and Employee Benefits 3,450,109 684,527 6,754,997 787,844 (759,608) Maintenance and Operations 14,285,031 1,105,153 12,705,073 15,792,353 875,017 Insurance Premiums and Loss Provisions - - - - - Depreciation and Amortization 5,528,474 824,208 1,456,588 2,935,953 755,430 Total Operating Expenses 23,263,614 2,613,888 20,916,658 19,516,150 870,839 Operating Income (Loss) 6,387,667 (1,290,337) 828,357 (504,261) 676,166
NONOPERATING REVENUES (EXPENSES)
Interest Income (2,611,020) (23,611) (942,432) (1,129,490) (7,493) Interest Expense (1,831,163) - - - (249,723) Other Income 1,486,265 65,710 638,562 811,646 101,361 Other Expenses (169,542) (47,522) (226,971) (207,305) (13,352) Total Nonoperating Revenues (Expenses) (3,125,460) (5,423) (530,841) (525,149) (169,207) Income (Loss) Before Contributions and Transfers 3,262,207 (1,295,760) 297,516 (1,029,410) 506,959 Capital Grants and Contributions 377,273 1,567,411 - 3,201,058 - Transfers In (Note 4A) - 300,000 - - 1,917,474 Net Contributions and Transfers 377,273 1,867,411 - 3,201,058 1,917,474 Change in Net Position 3,639,480 571,651 297,516 2,171,648 2,424,433 Net Position - Beginning 231,090,459 59,923,718 36,000,625 71,979,001 2,125,389 Prior Period Adjustment (Note 14) 159,496 - (250,419) - Net Position - Beginning, as restated 231,249,955 59,923,718 36,000,625 71,728,582 2,125,389 Net Position - Ended 234,889,435$ 60,495,369$ 36,298,141$ 73,900,230$ 4,549,822$ Business-Type Activities - Enterprise Funds
Major Funds
47 The accompanying notes are an integral part of these financial statements .
Airport
Building
Safety
Animal
Control Total
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES
Charges for Services 2,313,055$ 5,771,399$ 636,081$ 67,976,804$ 30,255,033$ Operating Grants and Contributions - - 7,604 14,030,076 - Total Operating Revenues 2,313,055 5,771,399 643,685 82,006,880 30,255,033
OPERATING EXPENSES
Salaries, Wages and Employee Benefits 516,951 1,709,816 985,046 14,129,682 8,785,979 Maintenance and Operations 1,654,767 1,298,427 605,853 48,321,674 6,019,637 Insurance Premiums and Loss Provisions - - - - 17,769,534 Depreciation and Amortization 339,315 19,184 171,982 12,031,134 1,902,559 Total Operating Expenses 2,511,033 3,027,427 1,762,881 74,482,490 34,477,709 Operating Income (Loss) (197,978) 2,743,972 (1,119,196) 7,524,390 (4,222,676)
NONOPERATING REVENUES (EXPENSES)
Interest Income 63,019 (360,980) (14,068) (5,026,075) (1,023,971) Interest Expense (4,027) - (116,951) (2,201,864) - Other Income 250,840 1,127 465 3,355,976 1,539,507 Other Expenses - - - (664,692) (37,396) Total Nonoperating Revenues (Expenses) 309,832 (359,853) (130,554) (4,536,655) 478,140 Income (Loss) Before Contributions and Transfers 111,854 2,384,119 (1,249,750) 2,987,735 (3,744,536) Capital Grants and Contributions 1,899,246 - - 7,044,988 2,272,489 Transfers In (Note 4A) - - 1,618,476 3,835,950 5,000,000 Net Contributions and Transfers 1,899,246 - 1,618,476 10,880,938 7,272,489 Change in Net Position 2,011,100 2,384,119 368,726 13,868,673 3,527,953 Net Position - Beginning 9,402,241 6,180,553 1,385,487 418,087,473 35,107,875 Prior Period Adjustment (Note 14) - - - (90,923) - Net Position - Beginning, as restated 9,402,241 6,180,553 1,385,487 417,996,550 35,107,875 Net Position - Ended 11,413,341$ 8,564,672$ 1,754,213$ 431,865,223 38,635,828$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (992,329)
Change in Net Position of Business-Type Activities 12,876,344$ Business-Type Activities - Enterprise Funds
Non-Major Funds
48 CITY OF VISALIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
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
CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 28,482,667$ 1,317,169$ 21,557,255$ 17,499,731$ 1,425,307$ Cash Payments to Employees for Services (4,043,403) (623,659) (6,253,203) (834,683) (1,162,438) Cash Payments to Suppliers for Services (13,152,523) (1,071,604) (11,145,447) (15,057,196) (798,738) Cash Received from (Payments to) Other Governments 4,658 - 1,446,825 - - Other Income 1,645,761 65,710 638,562 811,646 101,361 Other Payments (169,542) (47,522) (226,971) (457,724) (13,352) Net Cash Provided (Used) by Operating Activities 12,767,618 (359,906) 6,017,021 1,961,774 (447,860)
CA SH FLOWS FROM NONCA PITA L
FINA NCING A CTIV ITIES
Advance (to) from Other Funds 25,216 - - 350,340 - Transfers In - 300,000 - - 1,917,474 Transfers (Out) - - - - - Net Cash Provided (Used) by Noncapital
Financing Activities 25,216 300,000 - 350,340 1,917,474
CA SH FLOWS FROM CA PITA L A ND RELA TED
FINA NCING A CTIV ITIES
Capital Payments (2,199,721) (1,591,277) (1,551,345) (3,707,262) (66,042) Capital Grants Received - - - 3,201,058 - Contributions 377,273 1,567,411 - - - Long-Term Debt Payments - Principal (2,490,646) - - - (838,402) Long-Term Debt Payments - Interest (1,831,163) - - - (295,091) Net Cash Provided (Used) by Capital and Related
Financing Activities (6,144,257) (23,866) (1,551,345) (506,204) (1,199,535)
CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings (2,611,020) (23,611) (942,432) (1,129,490) (7,493) Net Cash Provided by Investing Activities (2,611,020) (23,611) (942,432) (1,129,490) (7,493) Net Increase (Decrease) in Cash
and Investments 4,037,557 (107,383) 3,523,244 676,420 262,586 Cash and Investments - Beginning of Year 87,082,910 869,748 28,274,501 35,141,450 250,459 Cash and Investments - End of Year 91,120,467$ 762,365$ 31,797,745$ 35,817,870$ 513,045$ Consisting of:
Unrestricted 86,755,239$ 762,365$ 31,797,745$ 35,817,870$ 513,044$ Restricted 4,365,228 - - - 1 Total Cash and Investments 91,120,467$ 762,365$ 31,797,745$ 35,817,870$ 513,045$ Business-Type Activities - Enterprise Funds
Major Funds
49 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) 6,503,786$ (1,126,364)$ 2,310,047$ (558,489)$ (1,108,096)$ Other Income 1,645,761 65,710 638,562 811,646 101,361 Other Payments (169,542) (47,522) (226,971) (457,724) (13,352) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:
Depreciation and Amortization 5,528,474 824,208 1,456,588 2,935,953 755,430 Net Change in Assets and Liabilities:
Accounts and Interest Receivable (1,168,614) (6,382) (185,798) (104,152) (121,698) Taxes Receivable 4,658 - (1,962) (1,408,006) - Supplies - - - - - Due from Other Governments - - 1,446,825 - - Prepaid Expenses - - - - - Accounts and Contracts Payable 613,586 33,549 1,559,626 735,157 50,559 Deferred Outflow s Pensions 2,138,545 311,414 3,054,429 734,500 36,105 Deferred Inflow s Pensions & Leases 162,220 23,623 231,695 42,257 475,974 Unearned Revenue (159,496) - - - Accrued Personnel Costs - - - - - Compensated Absences 15,524 2,460 55,513 18,799 23,565 Other Liability (3,025,702) (440,602) (4,321,533) (788,167) (673,428) Liability for Self-Insurance Claims - - - - - Customer Deposits 678,418 - - - 25,720 Net Cash Provided (Used) by Operating Activities 12,767,618$ (359,906)$ 6,017,021$ 1,961,774$ (447,860)$ Major Funds
Business-Type Activities - Enterprise Funds
50 CITY OF VISALIA
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
The accompanying notes are an integral part of these financial statements .
Governmental
Activities
Airport Building Safety Animal Control Total
ct tes
Internal
Service Funds
CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds (3,647,732)$ 5,770,707$ 583,983$ 72,989,087$ 30,455,400$ Cash Payments to Employees for Services 5,358,860 (2,094,678) (1,013,815) (10,667,019) (3,267,372) Cash Payments to Suppliers for Services (1,636,058) (1,544,521) (620,946) (45,027,033) (25,970,611) Cash Received from (Payments to) Other Governments (26,619) - - 1,424,864 - Other Income 250,840 1,127 465 3,515,472 1,539,507 Other Payments - - - (915,111) (37,396) Net Cash Provided (Used) by Operating Activities 299,291 2,132,635 (1,050,313) 21,320,260 2,719,528
CA SH FLOWS FROM NONCA PITA L
FINA NCING A CTIV ITIES
Advance (to) from Other Funds (1,367,284) - - (991,728) - Transfers In - - 1,618,476 3,835,950 5,000,000 Transfers (Out) (4,027) - - (4,027) - Net Cash Provided (Used) by Noncapital
Financing Activities (1,371,311) - 1,618,476 2,840,195 5,000,000
CA SH FLOWS FROM CA PITA L A ND RELA TED
FINA NCING A CTIV ITIES
Capital Payments (94,035) - - (9,209,682) (1,784,700) Capital Grants Received 1,899,246 - - 5,100,304 - Contributions - - - 1,944,684 2,272,489 Long-Term Debt Payments - Principal - - (450,376) (3,779,424) - Long-Term Debt Payments - Interest - - (116,951) (2,243,205) - Net Cash Provided (Used) by Capital and Related
Financing Activities 1,805,211 - (567,327) (8,187,323) 487,789
CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 63,019 (360,980) (14,068) (5,026,075) (1,023,971) Net Cash Provided by Investing Activities 63,019 (360,980) (14,068) (5,026,075) (1,023,971) Net Increase (Decrease) in Cash
and Investments 796,210 1,771,655 (13,232) 10,947,057 7,183,346 Cash and Investments - Beginning of Year 350 11,363,392 475,997 163,458,807 35,293,854 Cash and Investments - End of Year 796,560$ 13,135,047$ 462,765$ 174,405,864$ 42,477,200$ Consisting of:
Unrestricted 796,560$ 13,135,047$ 462,765$ 170,040,635$ 42,088,736$ Restricted - - - 4,365,229 388,464 Total Cash and Investments 796,560$ 13,135,047$ 462,765$ 174,405,864$ 42,477,200$ Business-Type Activities - Enterprise Funds
Non-Major Funds
51 The accompanying notes are an integral part of these financial statements.
Governmental
Activities
Internal
Service Funds
Airport Building Safety Animal Control Total Funds
Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:
Operating Income (Loss) (117,831)$ 2,746,299$ (983,888)$ 7,665,464$ 1,295,931$ Other Income 250,840 1,127 465 3,515,472 1,539,507 Other Payments - - - (915,111) (37,396) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:
Depreciation and Amortization 339,315 19,184 171,982 12,031,134 1,902,559 Net Change in Assets and Liabilities:
Accounts and Interest Receivable (5,960,787) (692) (59,702) (7,607,825) (1,989) Taxes Receivable - - - (1,405,310) - Supplies (28,241) - - (28,241) (67,816) Due from Other Governments (26,619) - - 1,420,206 - Prepaid Expenses (1,294) - - (1,294) 94,472 Accounts and Contracts Payable 48,244 (244,808) (15,093) 2,780,820 (1,370,819) Deferred Outflow s Pensions 20,176 1,169,296 493,198 7,957,663 - Deferred Inflow s Pensions & Leases 6,144,753 88,698 37,412 7,206,632 - Unearned Revenue - (5,514) - (165,010) - Accrued Personnel Costs - - - - (30,583) Compensated Absences 7,052 9,185 3,110 135,208 202,356 Other Liability (376,317) (1,654,368) (697,797) (11,977,914) - Liability for Self-Insurance Claims - - - - (806,694) Customer Deposits - 4,228 - 708,366 - Net Cash Provided (Used) by Operating Activities 299,291$ 2,132,635$ (1,050,313)$ 21,320,260$ 2,719,528$ Non-Major Funds
Business-Type Activities - Enterprise Funds
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
52 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 (Village West)
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 (Orchard Walk) The City collects the district’s assessments on real property in the district to pay for underground utilities.
Atwood Water Main Assessment District (Atwood)
The City collects the district’s assessment s on real property in the district to repay bonds for connection to the Cal Water main extension.
Laura Water Main Assessment District (Laura)
The City collects the district’s assessment s 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 representative s of other affected taxing agencies and the City.
53 The accompanying notes are an integral part of these financial statements .
CITY OF VISALIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
ASSETS
Cash and Investments (Note 3) 486,041$ 178,400$
Restricted Cash and Investments (Note 3) - 495,207 Accounts Receivable 164,752 -
District Assesment Receivable 106,014 -
Notes and Loan Receivable (Note 5) - 125,951 Land Held For Resale - 2,824,503
Total Assets 756,807 3,624,061
LIABILITIES
Accounts, Interest, and Contracts Payable 72,826 41,690 Deposits 41,124 -
Due to City 113,383 -
Long - Term Liabilities (Note 7):
Due Within One Year - 338,346
Due in More Than One Year - 14,146,119
Total Long - Term Liabilities - 14,484,465 Total Liabilities 227,333 14,526,155
NET POSITION
Restricted for:
Held in Trust - (10,902,094)
Individuals, Organizations, and Other Governments 529,474 - Total Net Position 529,474$ (10,902,094)$
54 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, 2022
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
Additions
Redevelopment Property Taxes Trust Funds -$ 1,021,614$ Use of Money and Property 188 27,935
Revenue from District Assessments 1,444,064 -
Miscellaneous Revenue 86,877 1,819
Total Additions 1,531,129 1,051,368
Deductions
Obligation Requirements
Interest on Bonds and Notes Payable 22,680 358,981 Total Obligation Requirements 22,680 358,981
Administrative Expenses 9,570 29,908
Total Administrative Expenses 9,570 29,908
Distribution of District Assessment 1,313,630 -
Total Distribution of District Assessment 1,313,630 - Total Deductions 1,345,880 388,889
Change in Net Position 185,249 662,479
Net Position - Beginning of Year 344,225 (12,012,668) Prior Period Adjustment (Note 14) - 448,095 Net Position (Deficit) - Beginning of Year, as restated 344,225 (11,564,573) Net Position (Deficit) - End of Year 529,474$ (10,902,094)$ 55 NOTES TO THE
FINANCIAL
STATEMENTS
56 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
57 Notes to the Financial Statements
TABLE OF CONTENTS – NOTES TO THE FINANCIAL STATEMENTS
Page
Reporting Entity and Accounting Policies:
Note 1 - Summary of Significant Accounting Policies ................................................................................. 59
DETAILED NOTES ON FUNDS:
Note 2 - Budgets and Budgetary Accounting ............................................................................................. 71 Note 3 - Cash and Investments ................................................................................................................... 72 Note 4 – Interfund Transactions ................................................................................................................. 78 Note 5 – Notes and Loans Receivable ........................................................................................................ 80 Note 6 – Capital Assets ............................................................................................................................... 83 Note 7 – Long Term Liabilities .................................................................................................................... 85 Note 8 – Debt Without City Commitment .................................................................................................. 89 Note 9 – Fund Balance Classifications ........................................................................................................ 91
OTHER INFORMATION:
Note 10 – Employee Benefits ..................................................................................................................... 94 Note 11 – Risk Management ...................................................................................................................... 102 Note 12 – Contingent Liabilities and Commitments ................................................................................... 103 Note 13 – Subsequent Events..................................................................................................................... 103 Note 14 – Prior Period Adjustments ........................................................................................................... 104 Note 15 – Transactions with Related Parties ............................................................................................. 105 Note 16 – Leases Receivable ...................................................................................................................... 105
58 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
59 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Visalia, California (“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, wastewa ter, solid waste, transit, street sweeping, airport facilities, culture -recreation, public improvements, planning and zoning, general administration services, and redevelopment.
The financial statements and accounting policies of the City conform with gen erally 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 princ iples.
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 componen t 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 j oint 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 VCF A 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 Benef it 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 (VWAD) 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 VWAD is not a component unit of the City.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
60 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entity (Continued)
The Orchard Walk Underground Utilities District (OWUUD) was established to collect assessments on real property in the district to repay bonds for underground utilities. The OWUUD is not a component unit of the City.
The Atwood Assessment District (AAD) was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions. The AAD is not a component unit of the City.
The Laura Assessment District (LAD) was established to collect assessments on real property in the d istrict to repay bonds for Cal Water main extensions. The LAD is not a component unit of the City.
The Visalia Tourism & Marketing District (VTMD) was established to collect assessments on room nights in the district to pay for promotion of travel and tourism specific to Visalia. The V TMD is not a component unit of the City.
The Visalia Redevelopment Success or 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 accordance with generally accepted accounting principles in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accountin g and financial reporting standards followed by governmental entities in the United States of America.
The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic Financia l 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 S tatement 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 regard to inter-fund activities, payables and receivables. All internal balances in the Statement of Net Position have been elimina ted 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 tran sactions 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
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
61 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Basis of Presentation (Continued)
These statements distinguish between the governmental and business-type activities of the City.
Governmental activities generally are financed through taxes, intergovernmental revenues, and other non- exchange transactions. Business -type activities are financed in whole or in part by fees charged to external parties.
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 associate d 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 m eeting 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 s ervices, 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.
Governmental major funds include:
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 - Special Revenue Fund 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 - Special Revenue 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 C ommunity Development Block Grants (CDBG), the Home Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
62 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Major Funds (Continued)
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 - Special Revenue 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 - Special Revenue Fund established to track and accou nt for American Rescue Plan Act federal grant funding. Monies can only be used according to the plan guidelines.
Transportation - Capital Project Fund is used to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by Transportation Impact Fees.
Civic Center - Capital Project Fund is used 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.
The City reported the following major enterprise funds in the accompanying financial statements.
Enterprise 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 a s 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 dr ain 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.
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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
63 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. Custodial funds use the economic resources measurement focus. The financial activities of these fun ds 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 #5 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 use the economic resources 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 a re 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 receive s 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 c osts 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 levi ed on January 1 of the preceding fiscal year.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
64 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. Col lection 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. T he 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 rang es 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
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
65 Notes to the Financial Statements
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 .
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 farmlands. This inventory is currentl y in storage. The method of valuation of the inventory was to take the number of pounds in storage as of June 30, 20 22 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, 2022, 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 Wate r 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, long term receivables, advances, and supplies.
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 Cit y 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
66 Notes to the Financial Statements
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 Ci ty 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 restri cted and unrestricted net position are available, the City's policy is to apply restricted net position first, then unrestricted net position as they ar e 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
67 Notes to the Financial Statements
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 a pplicable appropriations. Encumbrances outstanding at year - end 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 expendit ures 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, 2022 were as listed below:
N. Leases (GASB 87 – Implemented in FY 21-22)
Lessee
The City recognizes lease liabilities and the right -to-use lease assets in the government -wide financial statements. The City currently has lease obligations for buildings and land with land improvements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of the lease payments made.
Amount
General Fund 595,953$
Measure N 9,373,046
Housing & Community Grants 1,087,210
Housing Successor Agency 225,090
Ameri can Rescue Pl an 977,315
Transportation 404,370
Non-Major Governmental Funds 10,247,748
Wate r Re clam ation Facility 1,616,510
Storm Sewer Mai ntenance 52,211
Solid Waste 2,555,259
Transit 2,281,308
Convention Center 9,894
Airport 114,288
Vehi cl e Repl acement 89,218
Informati on Servi ces 56,401
Total 29,685,821$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
68 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Leases (Continued)
Lease assets are recorded at the amount of the initial measur ement of the lease liabilities. Lease assets are amortized using the straight -line method over the lease term a s there are currently no purchase options associated with any of the leases.
In calculating the lease liability and lease asset, the City uses key estimates and judgements for (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
· The City uses the incremental borrowing rate provided by the State of California as the d iscount rate.
For this fiscal year the rates were as follows: .20% for a lease term of 0 -60 months; .90% for a lease term of 61-120 months; and 1.50% for a lease term of 121 months or more.
· The lease term includes the noncancellable period of the lease as well as any options to extend the lease if the City feels that it will be exercised. Lease payments included in the measurement of the lease liability are composed of fixed payments.
· The City monitors situations that would require a remeasurement of a lease and will remeasure a lease asset and liability if the situation is expected to significantly affect the amount of the lease liability.
· Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long-term obligations on the statement of net position.
Lessor
The City is a lessor for leases of buildings, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.
The deferred inflows of resources are initially measured as the initial amount of the lease receivable. The deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
In calculating the lease receivable and deferred inflows of resources, the City uses key estimates and judgements for (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
· The City uses the incremental borrowing rate provided by the State of California as the discount rate.
For this fiscal year the rates were as follows: .20% for a lease term of 0 -60 months; .90% for a lease term of 61-120 months; and 1.50% for a lease term of 121 months or more.
· The lease term includes the noncancellable period of the lease as well as any options to extend the lease if the City feels that it will be exercised. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
69 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Leases (Continued)
· The City monitors situations that would require a remeasurement of a lease and will remeasure the lease receivable and deferred inflows of resources if the situation is expected to significantly affect the amount of the lease receivable.
O. Implementation of Accounting Pronouncements
The following GASB Statements has been implemented in the current 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 implemented this statement for the June 30, 2022 year end.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Cons truction 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 construct ion period. The provisions of this statement are effective for fiscal year 2021-22. There was no effect on the financial statements as a result of implementing this statement.
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. There was no effect on the financial statements as a result of implementing this statement.
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 o f 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 pl an 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.
There was no effect on the financial statements as a result of implementing this statement.
P. Future GASB Pronouncements
The following GASB Statements will be implemented in future financial statements:
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
70 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Future GASB Pronouncements (Continued)
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. 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 public - private and public -public partnership arrangements (PPPs). The provisions of this statement are effective for 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 (SBIT As) 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. 99, Omnibus 2022
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 s 2022-23 and 2023- 24. The City has elected not to implement GASB Stat ement No. 9 9 early and has not determined its effects on the City’s financial statements.
GASB Statement No. 100, Accounting Changes and Error Corrections
The primary objective of these Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisi ons or assessing accountability. The provisions of this statement are effective for fiscal year 2023-24. The City has elected not to implement GASB Statement No. 100 early and has not determined its effects on the City’s financial statements.
GASB Statement No. 101, Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achiev ed by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The provisions of this statement are effective for fiscal year 202 4-25. The City
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
71 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Future GASB Pronouncements (Continued)
has elected not to implement GASB Statement No. 101 early and has not determined its effects on the City’s financial statements.
Q. New Funds
During fiscal year 202 1-22, the City created the Baseball Fund to account for the maintenance and improvements to the baseball facility. This fund is a non-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 guide lines. 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.
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 th e 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
72 Notes to the Financial Statements
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (Continued)
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 conside red 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, 2022, are classified in the Statement of Net Position as follows :
Major Funds:
*General Fund 1,378,643$
*Measure N 502,908$
Ameri can Rescue Pl an 263,484$
Ci vi c Center 6,503$
Non-Major Funds:
Special Revenue Funds:
Kaweah Lake and Local Stormwater Maintenance 1,398$
Northeast Area 41$
Grant & Loan Funds 7,301$
Golf Course 8,280$
Oak Tree Preservati on 7,306$
Conservation 48$
Capital Projects Funds:
Public Safety Impact Fee 1,125$
Facility Im prove m e nts 155$
Sports Complex 114$
A nim al Control Re se rve 49$
Baseball 196,151$
*Salary increases were not budgeted at the time of budget adoption.
Government-Wi de Statement of Net Posi ti on:
Cash and Investments 469,394,847$
Restricted Cash and Investments 4,762,378
Fiduciary Funds Statement of Net Position:
Cash and Investments 664,441
Restricted Cash and Investments 495,207
Total Cash and Investments 475,316,873$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
73 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2022, 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 Californ ia 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 ar e 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 $75M None
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
Cash on hand 11,700$
De posits with financial institutions 10,989,623
Investments 464,315,550
Total Cash and Investments 475,316,873$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
74 Notes to the Financial Statements
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 rat es. 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. Th e City of Visalia has no specific limitations with respect to this metric.
Wei ghted Average
Balance at Maturity
Investment Type 06/30/2022 (in Days ) % of Investments
Federal Agency Securi ti es 157,636,189$ 234.23 33.95% U.S. Treasuri es 54,170,515 85.20 11.67% Local Agency Investment Fund 72,244,010 - 15.56% California Asset Management Program 3,518,177 - 0.76% Corporate Medi um-Term Notes 91,669,034 154.75 19.74% Municipal Bonds 84,260,270 169.98 18.15% Local Agency Bonds 313,462 1.42 0.06% Held by Bond Trustee:
Money Market Funds 503,893 0.02 0.11% Total 464,315,550$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
75 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
As of June 30, 202 2, and during the 20 21-2022 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 mortgag e-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 year- end fo r 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:
Investment Type
Minimum
Legal
Rating
Moody's
Rating
Standard & Poors
Rating
% of
Portfolio
Federal Agency Securities 157,636,189$ N/A Aaa AA+ 33.95% U.S. Treasuries 54,170,515 N/A Aaa Not Rated 11.67% Corporate Medium-Term Notes 999,970 A Aa2 AA 0.22% Corporate Medium-Term Notes 7,639,030 A A1 AA 1.65% Corporate Medium-Term Notes 2,758,680 A Aa3 AA- 0.59% Corporate Medium-Term Notes 4,982,870 A A1 AA- 1.07% Corporate Medium-Term Notes 13,402,060 A A1 A+ 2.89% Corporate Medium-Term Notes 8,421,485 A A2 A+ 1.81% Corporate Medium-Term Notes 10,791,590 A A1 A 2.32% Corporate Medium-Term Notes 12,988,668 A A2 A 2.80% Corporate Medium-Term Notes 12,872,710 A A3 A 2.77% Corporate Medium-Term Notes 11,463,696 A A2 A- 2.47% Corporate Medium-Term Notes 2,347,975 A A3 A- 0.51% Corporate Medium-Term Notes 3,000,300 A A1 BBB+ 0.65% Local Agency Investment Fund 72,244,010 N/A Not Rated Not Rated 15.56% California Asset Management Program 3,518,177 N/A Not Rated Not Rated 0.76% Municipal Bonds 3,340,373 A Aaa AAA 0.72%
Municipal Bonds 9,170,500 A Aa1 AAA 1.98%
Municipal Bonds 6,413,769 A Not Rated AAA 1.38% Municipal Bonds 8,668,120 A Aaa AA+ 1.87%
Municipal Bonds 802,672 A Not Rated AA+ 0.17% Municipal Bonds 3,342,736 A Aa1 AA 0.72%
Municipal Bonds 1,452,855 A Aa2 AA 0.31%
Municipal Bonds 3,370,364 A Not Rated AA 0.73% Municipal Bonds 35,629,527 A Aa2 AA- 7.67%
Municipal Bonds 4,256,145 A Aa3 AA- 0.92%
Municipal Bonds 3,122,959 A Aa3 Not Rated 0.67% Municipal Bonds 4,690,250 A Aa3 A+ 1.01%
Local Agency Bonds 313,462 N/A Not Rated Not Rated 0.07% Held by Bond Trustee:
Money Market Funds 503,893 A Aaa-mf AAAm 0.11% Total 464,315,550$ 100.00%
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
76 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
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:
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 c redit 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 fo r 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 waiv ed 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 pledgi ng 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 o f Visalia’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. As of June 30, 202 2, none of the City of Visalia investments were held by the broker -dealer (counterparty) that was us ed 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.
Issuer Investment Type Reported
Federal Home Loan Bank Federal Agency Securities 45,512,910$ Federal Farm Credit Bank Federal Agency Securities 40,743,924 Federal National Mortgage Association Federal Agency Securities 29,346,286 Federal Home Loan Mortgage Corporation Federal Agency Securities 42,033,069 U.S. Treasuries U.S. Treasuries 54,170,515
State of California Bonds Municipal Bonds 25,598,746
Total 237,405,450$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
77 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)
H. Investment in State Investment Pool (Continued)
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, 202 2, these investments matured in an average of 311 days. These valuations and financial statements are posted to the State Treasurer’s Office website at www.treasurer.ca.gov
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, 2022:
U.S. Treasuries totaling $54.2 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 $1 57.6 million, corporate medium-term notes totaling $ 91.7 million, municipal bonds totaling $84.3 million, and money market funds held by the bond Trustee totaling $.5 million, classified in Level 2 of the fair value hierarchy, are valued using a matrix pricing technique. Matrix pricing is the process of estimating the fair value price of a bond based on the quoted prices of more frequently traded comparable bonds. The Local Agency Investment Fund, California Asset Management Program, and Local Agency Bonds are reported at amortized cost.
Investments by Fair Value Level Level 1 Level 2 Total Federal Agency Securi ti es -$ 157,636,189$ 157,636,189$ U.S. Treasuri es 54,170,515 - 54,170,515 Corporate Medi um-Term Notes - 91,669,034 91,669,034 Municipal Bonds - 84,260,270 84,260,270 Held by Bond Trustee:
Money market funds - 503,893 503,893 Subtotal 54,170,515$ 334,069,386$ 388,239,901 Investments Measured at Amortized Cost
Local Agency Bonds 313,462
Local Agency Investment Fund 72,244,010
California Asset Management Program 3,518,177
Total Investments 464,315,550$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
78 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 Baseb all 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, 202 2, were as follows:
Amount
Fund Receiving Transfer Fund Making Transfer Transferred Governmental Funds:
General Fund Grant & Loan Funds - Special Revenue 134$ (B) Housing & Community Grants General Fund 30,191 (B) Debt Service Funds:
VPFA 2014 Refunding COP General Fund 127,488 (C) 2015 COP General Fund 591,165 (C) 2015 COP Publ i c Safety Impact Fee - Capi tal Projects 414,541 (C) 2015 COP Measure T Pol i ce - Speci al Revenue 151,249 (C) Capital Projects Funds:
Baseball General Fund 122,735 (B) Baseball General Fund 300,000 (A) Ci vi c Center General Fund 14,221,739 (A) GOVERNMENTAL Funds Sub-Total 15,959,242
Enterprise Funds:
Animal Control General Fund 1,051,148 (B) Animal Control General Fund 567,328 (C) Convention Center General Fund 250,000 (A) Convention Center General Fund 575,915 (B) Convention Center General Fund 1,091,559 (C) Storm Sewer Mai ntenance Kaweah Lake and Local Storm Water Mai ntenance - Speci al Revenue 300,000 (B) ENTERPRISE Funds Sub-Total 3,835,950
Internal Service Funds:
Ri sk Management General Fund 5,000,000 (B) INTERNAL SERVICE Funds Sub-Total 5,000,000
TOTAL TRANSFERS 24,795,192$
(A) To fund capital expenses
(B) To fund operating expenses
(C) To fund debt service payments
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
79 Notes to the Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
B. Long-Term Interfund Advances
At June 30, 2022 , the funds below had advance balances which were not expected to be repaid within the next year.
C. 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 -$ 1,389,252$
Special Revenue Funds:
Spec ial Ser v ic e Distr ic ts (Landsc ape & L ighting) (a) 971,223 - M easur e R - Regional (b) 392,008 -
Capital Projects Funds:
Gov er nment Fac ilities Impac t Fee (Libr ar y ) (c ) 26,021 - Total Adv anc es 1,389,252$ 1,389,252$
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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
80 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE
A. Current Year Transactions and Balances
Balance at
June 30, 2021 Balance at
Ref # Issue Date Maturity as restated Additions Repayments June 30, 2022
GOVERNMENTAL ACTIVITIES
General Fund
* Visalia Successor Agency - - - 11,982,553$ 265,544$ 170,927$ 12,077,170$ Visalia Investment Associates 13010-J13044 April 2004 June 2034 316,849 - 316,849 - Déjà Vu LP B153025 13010-J13084 Jan 2018 June 2023 15,845 - 7,923 7,922 Déjà Vu LP B153018 13010-J13085 Jan 2018 June 2023 92,814 - 46,407 46,407 Déjà Vu LP B153023 13010-J13086 Jan 2018 June 2023 40,021 - 20,010 20,011 101 NW 5th (SHE) 13010-R93009 Nov 2018 Nov 2063 30,578 - 711 29,867 105 NW 5th (SHE) 13010-R93010 Nov 2018 Nov 2063 30,578 - 711 29,867 Subtotal General Fund 12,509,238 265,544 563,538 12,211,244 * Beginning balance as restated (see Note 14 for Prior Period Adjustments) Housing & Community Grants
1001 N Jacob (TCHA) 13010-R94101 May 1996 May 2024 7,400 - 2,400 5,000 Fairview Village (KMC) 13010-R94707 Dec 1994 Dec 2034 120,000 - - 120,000 Robinwood 13010-J13503 April 2007 April 2036 649,988 - 43,333 606,655 1627 S Garden Public Facilty 13010-J13505 Aug 2019 Aug 2039 380,000 - 20,000 360,000 1627 S Garden Public Facilty 13010-J13505 Aug 2019 Aug 2039 251,750 - 13,250 238,500 101 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 Lofts Project 13010-CP0478 Feb 2022 Dec 2057 - 1,148,735 - 1,148,735 Sequoia Village Project 13010-CP0479 April 2022 Mar 2057 - 1,069,101 - 1,069,101 Habitat for Humanity Assigned 13411 Various Various 175,481 - 24,467 151,014 NSP 13418 Various Various 575,485 - 23,239 552,246 CDBG 13411 Various Various 818,096 - 42,814 775,282 Cal Home 13412 Various Various 561,332 - - 561,332 HOME 13412 Various Various 2,018,200 - 286,623 1,731,577 Subtotal Housing & Community Grants 12,697,529 2,217,836 456,126 14,459,239 Housing Successor Agency
Visalia Successor Agency - - - 848,566 - 547,747 300,819 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 273,279 - 6,614 266,665 Kimball Court (1) 13010-J13020 Aug 1999 Aug 2054 605,438 - - 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 33,636 - 909 32,727 Mill Creek Parkway $1.5M (KMC) 13010-R09029 Mar 2006 Mar 2061 1,117,418 - 27,936 1,089,482 Mill Creek Parkway $3.0M (KMC) 13010-R09027 Oct 2015 Oct 2070 2,727,273 - 54,545 2,672,728 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 30,578 - 711 29,867 113 NW 5th (SHE) 13010-R93012 Nov 2018 Nov 2063 30,578 - 711 29,867 1105 N Court (SHE) 13010-R93008 Nov 2018 Nov 2063 30,578 - 711 29,867 1029 W Goshen 13418-R89000 Jan 2011 Jan 2066 133,095 - 2,954 130,141 Lofts Project 13010-CP0478 Feb 2022 Dec 2057 - 329,320 - 329,320 East Visalia Redevelopment 13413 Various Various 32,461 - - 32,461 Habitat for Humanity Assigned 13417 Various Various 676,250 - 8,974 667,276 Housing Fund 13418 Various Various 99,310 - 28,688 70,622 Subtotal Housing Successor Funds 9,125,168 329,320 680,500 8,773,988
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
81 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE (Continued)
Balance at
June 30, 2021 Balance at
Ref # Issue Date Maturity as restated Additions Repayments June 30, 2022 Transportation Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 15,065 - 5,046 10,019 Dillon Ent (B170632) 13010-J13089 Dec 2018 June 2024 150,000 - 50,000 100,000 COGO Prop (B180570) 13010-J13090 Aug 2018 June 2024 10,510 - 10,510 - TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 26,699 - 6,675 20,024 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 190,530 - 47,632 142,898 NW Visalia Senior (B173132) 13010-J13094 Oct 2019 June 2025 201,024 - 50,256 150,768 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 140,932 - 28,186 112,746 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 79,829 - 15,966 63,863 Vaccinated LP (B201416) 13010-J93170 June 2021 June 2027 - 172,763 - 172,763 Vaccinated LP (B201417) 13010-J93171 June 2021 June 2027 - 88,940 - 88,940 Subtotal Transportation Fund 814,589 261,703 214,271 862,021 Civic Center Fund
Imagine U Museum 13010-J13082 Dec 2016 Dec 2046 133,665 - 3,133 130,532 Subtotal Civc Center Fund 133,665 - 3,133 130,532 Parking District Fund
Barrell House Brewing 13010-J13083 April 2017 June 2023 6,534 - 6,534 - Comfort Suites 13010-J13038 Oct 2002 Oct 2032 127,409 - 10,287 117,122 Subtotal Parking District Fund 133,943 - 16,821 117,122 Waterways Fund
Imagine U Museum 13010-J13082 Dec 2016 Dec 2046 163,369 - 3,829 159,540 Subtotal Waterways Fund 163,369 - 3,829 159,540 Govt Facilities Impact Fee Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 441 - 142 299 TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 3,914 - 978 2,936 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 1,012 - 253 759 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 74,994 - 14,999 59,995 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 36,840 - 7,368 29,472 Vaccinated LP (B201416) 13010-J93170 June 2021 June 2027 - 10,404 - 10,404 Vaccinated LP (B201417) 13010-J93171 June 2021 June 2027 - 44,208 - 44,208 Subtotal Govt Facilities Impact Fee Fund 117,201 54,612 23,740 148,073 Public Safety Impact Fee Fund
TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 7,377 - 1,844 5,533 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 12,683 - 3,171 9,512 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 46,578 - 9,316 37,262 Vaccinated LP (B201417) 13010-J93171 June 2021 June 2027 - 32,003 - 32,003 Subtotal Public Safety Impact Fee Fund 66,638 32,003 14,331 84,310 Storm Sewer Construction Fund
TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 774 - 193 581 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 829 - 208 621 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 3,289 - 658 2,631 Vaccinated LP (B201417) 13010-J93171 June 2021 June 2027 - 2,260 - 2,260 Subtotal Storm Sewer Construction Fund 4,892 2,260 1,059 6,093 Subtotal Governmental Activities 35,766,232 3,163,278 1,977,348 36,952,162
BUSINESS - TYPE
Water Reclamation Facility Fund
Central Ca Conf Assoc (B090414) 13010-J13088 Nov 2018 June 2024 5,811 - 1,919 3,892 TRD Plaza LLC (B182646) 13010-J13091 May 2019 June 2025 1,855 - 464 1,391 El Centro Corner (B183341) 13010-J13092 May 2019 June 2025 11,217 - 2,804 8,413 NW Visalia Senior (B173132) 13010-J13094 Oct 2019 June 2025 50,208 - 12,552 37,656 120 W Main St (B150085) 13010-J13095 May 2015 June 2025 19,730 - 4,932 14,798 J Beast LP (B193168) 13010-J93168 July 2020 June 2026 66,499 - 13,300 53,199 J Beast LP (B193169) 13010-J93169 July 2020 June 2026 4,176 - 835 3,341 Vaccinated LP (B201416) 13010-J93170 June 2021 June 2027 - 6,570 - 6,570 Vaccinated LP (B201417) 13010-J93171 June 2021 June 2027 - 5,020 - 5,020 Subtotal Water Reclamation Facility Fund 159,496 11,590 36,806 134,280 Total 35,925,728$ 3,174,868$ 2,014,154$ 37,086,442$
FIDUCIARY
Successor Agency
Willow Street Parking Structure 13010-J13015 - - 146,543 - 20,592 125,951 Subtotal Successor Agency 146,543 - 20,592 125,951 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
82 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 in - lieu fees. Various ho using 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 affordabilit y requirements. At June 30, 202 2, these notes receivable totaled $37,212,393 in the following funds: $12, 211,244 in the General Fund, $1 4,459,239 in Housing & Community Grants, $ 8,773,988 in the Housing Successor Agency Fund, $862,021 in the Transportation Fund, $117, 122 in the Parking District Fund, $159 ,540 in the Waterways Fund, $148,073 in the Government Facili ties Impact Fee Fund, $ 84,310 in the Public Safety Impact Fee Fund, $ 6,093 in the Storm Sewer Construction Fund, $130,532 in the Civic Center Fund, $134,280 in the Water Reclamation Facility Fund, and $125,951 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 $775,282 at June 30, 2022.
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 $1,731,577 at June 30, 2022.
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 $ 8,473,169 at June 30, 2022.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
83 Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS
A. Capital Assets Additions and Retirements
Balance
July 1, 2021 Balance
as restated Additions Retirements Transfers June 30, 2022 GOVERNMENTAL ACTIVITIES:
Capital assets not being depreciated
Land 41,576,156$ 1,184,395$ (1,355,690)$ -$ 41,404,861$ Construction in progress 21,449,011 7,505,533 (49,382) (1,796,096) 27,109,066 63,025,167 8,689,928 (1,405,072) (1,796,096) 68,513,927 Capi tal assets bei ng depreci ated
Buildings 62,476,948 - - - 62,476,948 Improvements other than buildings 90,077,714 44,792 - 546,114 90,668,620 Machinery, equipment and vehicles 13,941,648 257,695 (102,304) 613,399 14,710,438 Infrastructure - streets, traffic signals & signs 254,520,018 2,382,378 - 1,263,545 258,165,941 421,016,328 2,684,865 (102,304) 2,423,058 426,021,947 Accumulated depreciation
Buildings (15,957,193) (1,289,248) - - (17,246,441) Improvements other than buildings (28,653,047) (2,327,880) - (58,931) (31,039,858) Machinery, equipment and vehicles (7,634,091) (766,336) 90,502 (93,688) (8,403,613) Infrastructure - streets, traffic signals & signs (93,313,417) (5,806,111) - - (99,119,528) (145,557,748) (10,189,575) 90,502 (152,619) (155,809,440) Lease assets
Land and land improvements 646,059 - - - 646,059 Buildings 191,337 - - - 191,337 837,396 - - - 837,396 Accumulated amortization
Land and land improvements - (25,842) - - (25,842) Buildings - (94,175) - - (94,175) - (120,017) - - (120,017) Governmental Capital Asset Activity, Net 339,321,143$ 1,065,201$ (1,416,874)$ 474,343$ 339,443,813$ INTERNAL SERVICE FUND ACTIVITIES:
Capital assets not being depreciated
Land -$ -$ -$ -$ -$ Construction in progress - 1,512 - - 1,512 - 1,512 - - 1,512 Capi tal assets bei ng depreci ated
Buildings 654,910 - - - 654,910 Improvements other than buildings 218,785 - - - 218,785 Machinery, equipment and vehicles 34,181,939 1,783,188 (814,287) 1,508,877 36,659,717 35,055,634 1,783,188 (814,287) 1,508,877 37,533,412 Accumulated depreciation
Buildings (589,910) - - - (589,910) Improvements other than buildings (169,432) (7,159) - - (176,591) Machinery, equipment and vehicles (21,555,888) (1,895,400) 763,418 - (22,687,870) (22,315,230) (1,902,559) 763,418 - (23,454,371) Internal Service Fund Capital Asset Activity, Net 12,740,404$ (117,859)$ (50,869)$ 1,508,877$ 14,080,553$ Capital assets not being depreciated or Amortized 68,515,439$ Capi tal assets bei ng depreci ated or Amorti zed 285,008,927$ BUSINESS-TYPE ACTIVITIES:
Capital assets not being depreciated
Land 26,148,966$ -$ -$ -$ 26,148,966$ Construction in progress 8,536,251 1,780,402 - (5,987,959) 4,328,694 34,685,217 1,780,402 - (5,987,959) 30,477,660$ Capi tal assets bei ng depreci ated
Buildings 54,067,102 94,036 - 4,212,063 58,373,201 Improvements other than buildings 231,440,723 593,722 - (151,471) 231,882,974 Machinery, equipment and vehicles 75,773,000 5,684,923 (6,025,252) (208,472) 75,224,199 Infrastructure - sewer and storm drainage 152,360,463 1,056,599 - - 153,417,062 513,641,288 7,429,280 (6,025,252) 3,852,120 518,897,436$ Accumulated depreciation
Buildings (20,965,943) (1,170,889) - - (22,136,832) Improvements other than buildings (67,335,642) (4,700,760) - 58,931 (71,977,471) Machinery, equipment and vehicles (48,510,405) (4,240,142) 5,636,236 93,688 (47,020,623) Infrastructure - sewer and storm drainage (34,564,883) (1,919,343) - - (36,484,226) (171,376,873) (12,031,134) 5,636,236 152,619 (177,619,152)$ Business-type Capital Asset Activity, Net 376,949,632$ (2,821,452)$ (389,016)$ (1,983,220)$ 371,755,944$ Capital assets not being depreciated or Amortized 30,477,660$ Capi tal assets bei ng depreci ated or Amorti zed 341,278,284$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
84 Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS (Continued)
B. Depreciation and Amortization Expense
Depreciation and amortization 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 6,909,561$
Housing & Community Grants 6,198
Public Works 714,133
Public Safety:
Police 636,632
Fire 452,795
Communi ty Servi ces 1,590,273
Capital Assets Held by the City's Internal Service Funds are Charged to the Various Functions Based on their
Usage of the Assets 1,902,559
Total Gove rnm e ntal A ctivitie s 12,212,151$
Business-Type Activities
Wate r Re clam ation Facility 5,528,474$
Storm Sewer Mai ntenance 824,208
Solid Waste 1,456,588
Transit 2,935,953
Convention Center 755,430
Airport 339,315
Building Safety 19,184
Animal Control 171,982
Total Busine ss-Type A ctivitie s 12,031,134$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
85 Notes to the Financial Statements
NOTE 7 - LONG-TERM LIABILITIES
A. Current Year Transactions and Balances
Balance at
Original Issue June 30, 2021 Balance at Due Within
Amount as Restated Additions Retirements June 30, 2022 One Year Governmental Activity Debt
Certificates of Participation:
2015 COP 13,121,230$ 8,864,706$ $ - (824,198)$ $ 8,040,508 $ 860,829 2014 VPFA - Refunding (1) 1,180,800 563,200 - (102,400) 460,800 107,200 Lease Liabilities (2) 837,396 837,396 - (114,433) 722,963 105,058 Internal Service Funds
Compensated Absences - 5,818,608 1,116,371 (914,015) 6,020,964 1,214,672 Total Governmental Activities 15,139,426$ 16,083,910$ 1,116,371$ (1,955,046)$ 15,245,235$ 2,287,759$ Business-Type Activity Debt
Certificates of Participation:
2015 COP 4,788,770$ 3,235,294$ $ - (300,802)$ $ 2,934,492 $ 314,171 2014 VPFA - Refunding (1) 6,199,200 2,956,800 - (537,600) 2,419,200 562,800 Bond Premium 971,504 116,177 - (45,368) 70,809 34,814 Notes - Direct Borrowings:
2014 Clean Water State Revolving Fund Loan 96,434,597 89,265,836 - (2,490,646) 86,775,190 2,542,949 Lease - Direct Borrowings:
2012 Animal Control 6,600,000 3,501,514 - (450,376) 3,051,138 466,049 Compensated Absences - 1,072,583 155,892 (20,684) 1,207,791 207,273 Total Business-Type Activities 114,994,071$ 100,148,204$ 155,892$ (3,845,476)$ 96,458,620$ 4,128,056$ Fiduciary Funds
Redevelopment Agency Tax Allocation Bonds:
2003 East Visalia District 5,185,000$ 1,280,000$ $ - (190,000)$ 1,090,000$ 200,000$ Notes - Direct Borrowings:
2004 RDA - Mooney District 2,707,250 1,148,981 - (132,505) 1,016,476 138,346 Advances:
*General Fund - 11,982,553 265,544 (170,927) 12,077,170 - Housing Successor Agency - 848,566 - (547,747) 300,819 - Total Private Purpose Trust Funds 7,892,250$ 15,260,100$ 265,544$ (1,041,179)$ 14,484,465$ 338,346$ (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. (2) The City has entered into leases for building space and land with land improvements. The terms of the agreements range from 2 to 25 years. The calculated interest rates range from .20% to 1.50%
* Beginning balance as restated (see Note 14 for Prior Period Adjustments)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
86 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (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 C ertificates, 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 lo ng-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 $70,809 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 C ity 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, 2022.
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 rela ted 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 i nterest 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 covena nted 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, 2022.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
87 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (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%. Principa l 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 compens atory 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 th an 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 obliga tions 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 an d appropriate including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. If termination occurs prior to the final maturity of the Bonds; the Issuer shall give noti ce 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, 20 22.
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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
88 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (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. WestAmerica Bank may determine the loan to be breached an d the City to be in default if the City (1) fails to pay the money payment when due, (2) discontinues, or (3) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, WestAmerica Bank shall have the right to declare the entire unpaid balance of the loan obligation due and payable.
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 Redevelopm ent 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 (CSWRCB) 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 $3,854,165 of capitalized interes t. The term of the loan is 30 years at an interest rate of 2.1%. Principal and interest payments will be repaid in annual installments commencing on September 13, 2018 and shall be fully amortized by September 13, 2047.
The CSWRCB may determine the loan to be breached and the City to be in default if the City (1) fails to pay the money payment when due, (2) discontinues, or (3) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, CSWRCB shall have the right to declare the entire unpaid balance of the loan obligation due and payable.
H. Debt Service Requirements
Annual debt service requirements to maturity are shown below for all long -term debt:
For the Year
Ending June 30, Principal Interest Principal Interest
2023 968,029$ 314,095$ 105,058$ 9,531$ 2024 1,013,123 268,870 37,967 9,090 2025 1,066,343 216,884 22,432 8,749 2026 1,120,364 162,216 22,770 8,411 2027 1,036,658 118,657 23,114 8,067 2028-2032 3,296,791 159,469 120,906 34,999 2033-2037 - - 130,305 25,600 2038-2042 - - 140,436 15,469 2043-2047 - - 119,975 4,749 8,501,308$ 1,240,191$ 722,963$ 124,665$
Lease Li abi l i ti es
Gove rnm e ntal A ctivitie s
Public Offering
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
89 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)
H. Debt Service Requirements (Continued)
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 were for the construction of street improvements in the Village West Subdivision. As of June 30, 202 2, no remaining principal balance was outstanding as all assessments on property in the Assessment District had been collected.
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, 202 2, $ 180,000 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.
For the Year
Ending June 30, Principal Interest Principal Interest Bond Premium 2023 3,008,998$ 1,923,557$ 876,971$ 214,093$ 34,814$ 2024 3,078,617 1,853,939 916,877 170,817 23,787 2025 3,149,922 1,782,634 963,657 123,804 12,208 2026 3,222,956 1,709,600 1,014,636 74,346 - 2027 3,297,763 1,634,792 378,342 43,306 - 2028-2032 15,265,103 7,128,364 1,203,209 58,200 - 2033-2037 16,323,154 5,502,985 - - - 2038-2042 18,110,598 3,715,541 - - - 2043-2047 20,093,774 1,732,365 - - - 2048 4,275,443 89,784 - - - 89,826,328$ 27,073,561$ 5,353,692$ 684,566$ 70,809$ Direct Borrowings Public Offering
Busine ss-Type A ctivitie s
For the Year
Ending June 30, Principal Interest Principal Interest
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 164,391 16,726 235,000 10,281 2028-2029 261,126 11,407 - - 1,016,476$ 161,638$ 1,090,000$ 146,281$
Private Purpose Trust Fund
Direct Borrowings Public Offering
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
90 Notes to the Financial Statements
NOTE 8 - DEBT WITHOUT CITY COMMITMENT (Continued)
The City issued a $148,367 bond designated as the “City of Visalia Atwood Street Water Assessment District No. 2014-01, Series 201 5-2”. 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, 202 2, $ 81,676 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 C alifornia 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, 202 2, $51,785 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.
Although the City assisted in the issuance of the above debts, it is not obligated in any way to repay this debt and has not reflected the debt in its financial statements.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
91 Notes to the Financial Statements
NOTE 9 - FUND BALANCE CLASSIFICATIONS
GASB Statement No. 34 incorporates the concept of Net Position, which is measured on the full accrual basis of accounting, to the concept of Fund Balance, as amended by GASB Statement No. 54, which is measured on the modified accrual basis of accounting.
A. Fund Balances
Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2022 is as follows:
City of Visalia
Governmental Fund Balances
June 30, 2022
(in thousands)
General
Housing &
Community Housing American
All Other
Governmental
Total
Governmental
Fund Measure N Grants Successor Agency Rescue Plan Transportation Civic Center Funds Funds Nonspendable
Prepaids/Deposits 27$ -$ -$ -$ -$ -$ -$ -$ 27$ Supplies 14 - - - - - - - 14 Long Term Recei vabl e 134 - - - - - - - 134 Advance - Public Facility Impact Fee 26 - - - - - - - 26 Advance - Measure R - Trailways 392 - - - - - - - 392 A dvance - Spe cial Se rvice Districts 971 - - - - - - - 971 Total Nonspendable Fund Balance 1,564 - - - - - - - 1,564 Restricted
Purpose of Fund - 27,896 14,957 10,059 - 19,496 - 90,836 163,244 Total Restricted Fund Balance - 27,896 14,957 10,059 - 19,496 - 90,836 163,244 Committed
Civic Ce nte r Facilitie s - - - - - - 47,004 - 47,004 Sports Park - - - - - - - 561 561 Animal Control - - - - - - - 245 245 Conservation - - - - - - - 241 241 Baseball - - - - - - - 232 232 Oaktree Preservati on - - - - - - - 273 273 Police Unclaim e d - - - - - - - 124 124 Facility Improvement Fund - - - - - - - 761 761 Emergency Reserve 17,402 - - - - - - - 17,402 Misce llane ous Capital Proje cts 156 9,373 1,087 225 978 - - - 11,819 Total Committed Fund Balance 17,558 9,373 1,087 225 978 - 47,004 2,437 78,662 Assigned
Advance - Atwood District (Custodial Fund) 75 - - - - - - - 75 Advance - Laura District (Custodial Fund) 38 - - - - - - - 38 CIP Budgeted Not Started 3,522 - - - - - - - 3,522 Cal PERS Unfunded Liability Payment FY 22/23 12,227 - - - - - - - 12,227 Successor Agency Loans 12,077 - - 301 - - - - 12,378 Total Assigned Fund Balance 27,939 - - 301 - - - - 28,240 Unassigned
Total Unassigned Fund Balance 6,731 - - - (911) - - (78) 5,742 Total Fund Balances 53,792$ 37,269$ 16,044$ 10,585$ 67$ 19,496$ 47,004$ 93,195$ 277,452$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
92 Notes to the Financial Statements
NOTE 9 – FUND BALANCE CLASSIFICATIONS (Continued)
B. Fund Balances
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22
Nonspendable Fund Balance:
Prepaid Expenditures 47 180 26 22 27 Supplies 8 13 19 19 14 Long-Term Recei vabl e 1,310 932 633 527 134 Advance - Publ i c Safety Impact Fee (Fi re) 977 641 304 - - Advance - Public Facility Impact Fee (Library) 158 126 98 60 26 Advance - Softball Development 1 - - - - Advance - Measure R - Regi onal - 967 1,284 - - Advance - Measure R - Trailways 1,106 1,292 844 522 392 A dvance - Spe cial Se rvice Districts 893 899 931 963 971 Advance - CHFA 5 1 - - - Advance - Transportation Grants - - 300 - - Advance - Valley Oaks Golf 2,798 - - - - Advance - Airport 278 44 944 1,367 - Nonspendable Fund Balance Total 7,581 5,095 5,383 3,480 1,564 Committed Fund Balance:
* Civic Ce nte r Facilitie s 5,144 - - - - * Sports Park 583 - - - - * Animal Control 236 - - - - * Conservation 232 - - - - * Police Unclaim e d 156 - - - - * Facility Improvement Fund 733 - - - - Emergency Reserve 14,695 15,182 15,953 16,407 17,402 Misce llane ous Capital Proje cts 142 162 286 202 156 Committed Fund Balance Total 21,921 15,344 16,239 16,609 17,558 Assigned Fund Balance:
Custodial Fund Advance - Atwood District 75 77 75 76 75 Custodial Fund Advance - Laura District 36 37 36 36 38 Due from - Community Development 73 - 2 5 - Due from - Golf Course - - 6 - - CIP Budgeted not started 1,971 2,551 3,219 3,961 3,522 Cal PERS Unfunded Liability Payment FY 22/23 5,234 6,863 10,166 11,120 12,227 Successor Agency 11,376 11,717 12,069 12,431 12,077 Assigned Fund Balance Total 18,765 21,245 25,573 27,629 27,939 Unassigned Fund Balance:
Unassigned 10,214 9,753 5,497 5,428 6,731 Unassigned Fund Balance Total 10,214 9,753 5,497 5,428 6,731 Total Fund Balance 58,481$ 51,437$ 52,692$ 53,146$ 53,792$ * 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)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
93 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, 20 22. Future revenues or interfund transfers are expected to offset these deficits:
D. Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2022:
Special Revenue Funds:
Measure R Regi onal 50,446$
Debt Service Funds:
VPFA 2014 Re funding Ce rtificate s of Participation 1,888$ 2015 Ce rtificate s of Participation 16,802$
Fiduciary Funds:
Successor Agency 10,902,094$
Internal Servi ces:
Fl eet Servi ces 615,573$
Compensated Absences 173,192$
Governmental
A ctivitie s
Business-Type
A ctivitie s Total
Capital Assets, net of
accumulated depreciation and amortization 353,524,366$ 371,755,944$ 725,280,310$ Less: outstanding principal on capital related debt (8,501,308) (95,250,829) (103,752,137) L e ss: outstanding capital le ase liability (722,963) - (722,963) Net Investment in Capital Assets 344,300,095$ 276,505,115$ 620,805,210$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
94 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 adjust ments 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, 2022, are summarized as follows:
Miscellaneous
Hi re 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
Benefi t formul a 3% @ 60 2.5% @ 55 2.0% @ 60 2% @ 62
Benefit vesting schedule 5 years servi ce 5 years servi ce 5 years servi ce 5 years servi ce Benefi t payments Monthly for life Monthly for life Monthly for life Monthly for life Reti rement 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 10.630% 10.630% 10.630% 10.630% Unfunded Liability Contribution
% of Payroll (illustrative only) 20.722% 20.722% 20.722% 20.722% Hi re date
Prior to
February 26, 2011
February 27, 2011 through
December 31, 2012
January 1, 2013
through current
Benefi t formul a 3% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years servi ce 5 years servi ce 5 years servi ce Benefi t payments Monthly for life Monthly for life Monthly for life Reti rement 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% 13.50%
Required employer contribution rates 21.100% 21.100% 21.100% Unfunded Liability Contribution
% of Payroll (illustrative only) 24.960% 24.960% 24.960% Safety
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
95 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, 2020, 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 ye ar, 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, 20 21, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 20 21 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 J une 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
Misce llane ous Safety
Inacti ve empl oyees or benefi ci ari es currentl y recei vi ng benefi ts 479 245 Inacti ve empl oyees enti tl ed to but not yet recei vi ng benefi ts 321 126 Acti ve empl oyees 385 223
Total 1,185 594
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
96 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, 20 20 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.
Long-term Expected Rate of Return – The long -term expected rate of return on pension plan investments was determined using a building -block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long -term expected rate of return, CalPERS took into account both short -term and 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 short - term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both s hort-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:
Misce llane ous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
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 2.750% 2.750%
Projected Sal ary Increase .40% - 8.5% (1) .97% - 17.0% (1) Investment Rate of Return 7.00% (2) 7.00% (2)
Post Reti rement Benefi t 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 mor tality table used was dev eloped based on C alP ERS-spec ific data. The pr obabilities of mor tality ar e 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 Ac tuar ies. For mor e details on this table, please r efer to the C alP ERS Ex per ienc e Study and Rev iew of Ac tuar ial Assumptions report from December 2017 that can be found on the CalPERS website.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
97 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
B. Net Pension Liability (Continued)
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 a nd 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 p lan 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.
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21.
Based on the thresholds specified in CalPERS Funding Risk Mitigation po licy, the excess return of 14.3% prescribes a reduction in in vestment volatility that corresponds to a reduction i n the discount ra te used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocat ion until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capita l market assumptions , economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. Thi s includes a reduction in the price inflation assumption from
2.50% to 2.30% as recommended in the November 2021 CalPERS Experie nce Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination ra tes, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
A sset Class(a)
Assumed
A sset
A llocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
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) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
98 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension
L iability
Plan Fiduciary
Net Position
Net Pensi on
L iability/(A sse t)
Balance at June 30, 2020 $250,482,970 $175,164,455 $75,318,515 Changes in the year:
Servi ce cost 4,395,969 - 4,395,969 Interest on the total pension liability 17,627,181 - 17,627,181 Di fferences between actual and expected experi ence (88,959) - (88,959) Contribution - employer - 7,688,208 (7,688,208) Contribution - employee - 1,897,359 (1,897,359) Net i nvestment i ncome - 39,751,521 (39,751,521) Admi ni strati ve expenses - (174,979) 174,979 Benefit payments, including refunds of employee
contributions (12,115,961) (12,115,961) -
Net changes 9,818,230 37,046,148 (27,227,918)
Balance at June 30, 2021 $260,301,200 $212,210,603 $48,090,597 Safety Plan:
Increase (Decrease)
Total Pension
L iability
Plan Fiduciary
Net Position
Net Pensi on
L iability/(A sse t)
Balance at June 30, 2020 $259,269,633 $194,292,181 $64,977,452 Changes in the year:
Servi ce cost 6,473,248 - 6,473,248 Interest on the total pension liability 18,396,919 - 18,396,919 Di fferences between actual and expected experi ence 403,302 - 403,302 Contribution - employer - 10,044,602 (10,044,602) Contribution - employee - 2,349,763 (2,349,763) Net i nvestment i ncome - 44,537,546 (44,537,546) Admi ni strati ve expenses - (194,086) 194,086 Benefit payments, including refunds of employee
contributions (11,219,989) (11,219,989) -
Net changes 14,053,480 45,517,836 (31,464,356)
Balance at June 30, 2021 $273,323,113 $239,810,017 $33,513,096
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
99 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:
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, 20 22, the City of Visalia recogniz ed pension expense of $ 4,980,648 ($1,700,648 related to the Miscellaneous Plan and $3,280,000 related to the Safety Plan) . At June 30, 202 2, the City of Visalia reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Misce llane ous Safety Total
1% Decrease 6.15% 6.15% 6.15%
N e t Pe nsion L iability $82,127,961 $73,267,202 $155,395,163 Current Discount Rate 7.15% 7.15% 7.15%
N e t Pe nsion L iability $48,090,597 $33,513,096 $81,603,693 1% Increase 8.15% 8.15% 8.15%
N e t Pe nsion L iability $19,914,163 $1,157,127 $21,071,290 Miscellaneous Plan:
Deferred Outfl ows Deferred Infl ows
of Resources of Resources
Pension contributions subsequent to measurement date $8,224,107 -$ Di fferences between expected and actual experi ence 420,943 (670,240) Net differences between projected and actual earnings
on plan investments - (19,873,640) Total $8,645,050 ($20,543,880)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
100
Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$18,704,561 ($8,224,107 related to the Miscellaneous Plan and $10,480,454 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 ending June 30, 202 3. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Expected Average Remaining Service Lifetime (EARSL) – Miscellaneous Plan – The EARSL for the plan for the measurement period ending June 30, 202 1 is 3.4 years, which was obtained by dividing the total service years of 4,076 (the sum of remaining service lifetimes of the active employees ) by 1,185 (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 t he 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, 202 1 is 4.9 years, which was obtained by dividing the total service years of 2,899 (the sum of remaining service lifetimes of the active employees) by 5 94 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifeti mes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Safety Plan:
Deferred Outfl ows Deferred Infl ows
of Resources of Resources
Pension contributions subsequent to measurement date $10,480,454 -$ Di fferences between expected and actual experi ence 1,477,891 (779,994) Changes in assumptions - (172,320) Net differences between projected and actual earnings
on plan investments - (22,279,177) Total $11,958,345 ($23,231,491)
Grand Total $20,603,395 ($43,775,371)
Miscellaneous Plan: Safety Plan:
Measurement Measurement
Periods Ending Annual Periods Ending Annual
June 30 Amortization June 30 Amortization
2022 ($5,019,522) 2022 ($5,317,721)
2023 (4,855,425) 2023 (4,925,661)
2024 (4,781,230) 2024 (5,458,582)
2025 (5,466,760) 2025 (6,051,636)
Total ($20,122,937) Total ($21,753,600)
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
101
Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
E. Liquidating Net Pension Liability
The net pension asset, liability, and related components for the m iscellaneous plan are allocated to the governmental activities and business -type activities based on the distribution of current year contributions to the plan. At June 30, 2022, it is dist ributed 56% to governmental activities and 44% to business -type activities. The net pension asset, liability, and related components for the safety plan are distributed 100% to the governmental activities.
F. Payable to the Pension Plan
At June 30, 2022, 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, 2022 as there were none outstanding.
G. Deferred Compensation Plan
City employees may defer a p ortion 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 t o 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 Mission Square , 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 .
H. 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.
I. 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, 2022 , 46 retirees are participating in the City’s health plan at full cost. Of these retirees 18 have dependent coverage. The full cost is up to $1,125 per month for retiree and is up to an additional $1,125 for their spouse. Family coverage is also available for an additional $ 605 per month for a total family PPO premium up to $2,855 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 $913 per month for the retiree and an additional $9 13 for spouse. Family coverage is available for a total of $2,283 per month.
J. 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
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
102
Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)
J. Defined Contribution for Retiree Health Care (Continued)
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.
Four retirees qualified for the 2022 reduced rate, all are enrolled as retirees only. The retiree cost is up to $ 844 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 2021-2022, the City’s Retiree Health Care Contribution was approximately $118,334.
NOTE 11 – RISK MANAGEMENT
A. Coverage
The City self-insures workers’ compensation claims. The City retains or s elf-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 i nsurance 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 visi on 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. T he 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 $5 5,000,000 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 municip alities. 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
103
Notes to the Financial Statements
NOTE 11 – RISK MANAGEMENT (Continued)
A. Coverage (Continued)
During the fiscal year ended June 30, 202 2, the City contributed $ 1,435,908 to ACCEL for current year coverage.
ACCEL audited financial statements are available from Alliant Insurance Services at 560 Mission Street, Sixth Floor, San Francisco, California 94105.
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 reasonab ly 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 experi ence 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 :
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.
At June 30, 202 2, the City had made commitments of approximately $ 24.5 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 Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Award (Uniform Guidance) and applicable State requirements. No material cost disallowances were proposed as a result of these audit s; 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 January 24, 2023, which is the date the basic financial statements were available to be issued are there are no notable events to report.
Beginning Current Year End
of Year Claims & Changes Claim of Year Due Within
L iability in Estimates Payments L iability One Year
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 2021-22 8,828,900 2,776,089 (3,582,783) 8,022,206 859,236
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
104
Notes to the Financial Statements
NOTE 14 – PRIOR PERIOD ADJUSTMENTS
Governmental
Activities
Business-Type
Activities Total
Net position at July 1, 2021 as previously reported 517,535,546$ 417,027,035$ 934,562,581$ Error when unavailable revenue was booked - 159,496 159,496 Error when revenue was booked - (250,419) (250,419) Baseball fund moved from Businss to Govrnmental fund (41,005) (570,901) (611,906) DOF interest methodolgy calculation adjustment (448,095) - (448,095) Accounts receivable adjustment 38,793 - 38,793 Net position at July 1, 2021, as restated 517,085,239$ 416,365,211$ 933,450,450$ General Fund Transportation Civic Center
Non-Major
Governmental
Funds
Fund balance at July 1, 2021 as previously reported 53,145,697$ 15,546,676$ 32,738,468$ 77,100,109$ Error when unavailable revenue was booked 61,156 814,590 133,665 358,631 DOF interest methodolgy calculation adjustment (448,095) - - - Accounts receivable adjustment 38,793 - - - Fund balance at July 1, 2021, as restated 52,797,551$ 16,361,266$ 32,872,133$ 77,458,740$ Water
Reclamation
Facility Transit
Net position at July 1, 2021 as previously reported 231,090,459$ 71,979,001$ Error when unavailable revenue was booked 159,496 - Error when revenue was booked - (250,419) Net position at July 1, 2021, as restated 231,249,955$ 71,728,582$ Fiduciary
Funds
Successor
Agency
Net position at July 1, 2021 as previously reported (12,012,668)$ DOF interest methodolgy calculation adjustment 448,095
Net position at July 1, 2021, as restated (11,564,573)$ Government-wide Financial Statements
Governmental Funds
Enterprise Funds
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
105
Notes to the Financial Statements
NOTE 15 – TRANSACTIONS WITH RELATED PARTIES
The related party transactions of the City are summarized as follows:
NOTE 16 – LEASES RECEIVABLE
Some governmental and proprietary funds of the City lease property to others.
In the case of the governmental funds, such property includes buildings and land. The terms of these arrangements range from 5 to 36 years with the calculated interest rates used r anging from .20% to 1.50% depending on the length of the lease. For the year ended June 30, 2022, the City’s governmental funds recognized $144,757 in lease revenue and $26,211 in lease interest revenue.
For proprietary funds, leased property includes buildings, office space, and land. The terms of these arrangements range from 5 to 40 years with the calculated interest rates used ranging from .20% to 1.50% depending on the length of the lease. For the year ended June 30, 2022, the City’s proprietary funds recognized $ 457,597 in lease revenue and $73,690 in lease interest revenue.
Other Related Party Transactions Related Parties Purpose Amount for the Year
Ended June 30, 2022
Downtown Visalians City Council Member Business tax surcharge (passthrough) 144,974$ Downtown Visalians City Council Member Security, cleaning services and misc. 67,020 Total 211,994
Downtown Visalia Property Owners Association City Council Member Property Based Improvement District (passthrough) 490,000 Downtown Visalia Property Owners Association City Council Member Parking fund revenue match (34,434) Total 455,566
Total Related Party Transactions 667,560$
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
106
Notes to the Financial Statements
NOTE 16 – LEASES RECEIVABLE (Continued)
A. Current Year Transactions and Balances
A summary of the changes in lease receivables for the fiscal year ended June 30, 2022 is as follows:
B. Scheduled Lease Receivables Due
Lease receivables are due in the upcoming years is as follows:
Balance at Balance at Due Within Due in More Than
June 30, 2021 Additions Deletions June 30, 2022 One Year One Year Governmental Lease Receivable Activity
General Fund 579,628$ $ - (46,979)$ $ 532,649 $ 52,302 480,347$ Golf Course 1,430,299 - (65,038) 1,365,261 75,875 1,289,386 Parking District 145,658 - (1,686) 143,972 2,806 141,166 Total Governmental Activity 2,155,585$ -$ (113,703)$ 2,041,882$ 130,983$ 1,910,899$ Business-Type Leae Receivable Activity
Transit 219,336$ $ - (40,628)$ $ 178,708 $ 45,293 133,415$ Airport 6,294,465 - (345,222) 5,949,243 409,372 5,539,871 Total Business-Type Activity 6,513,801$ -$ (385,850)$ 6,127,951$ 454,665$ 5,673,286$ For the Year
Ending June 30, Principal Interest Total Principal Interest Total 2023 130,983$ 31,336$ 162,319$ 454,665$ 86,447$ 541,112$ 2024 126,326 27,488 153,814 438,640 77,044 515,684 2025 128,104 25,710 153,814 430,014 72,381 502,395 2026 129,908 23,905 153,813 401,014 67,867 468,881 2027 126,248 22,081 148,329 312,224 63,532 375,756 2028-2032 627,390 83,531 710,921 975,278 272,194 1,247,472 2033-2037 635,727 34,048 669,775 961,007 199,761 1,160,768 2038-2042 79,332 6,202 85,534 928,298 126,547 1,054,845 2043-2047 26,740 3,794 30,534 613,929 69,434 683,363 2048-2052 29,095 1,439 30,534 277,135 35,026 312,161 2053-2057 2,029 7 2,036 269,800 15,358 285,158 2058-2062 - - - 65,947 634 66,581 2,041,882$ 259,541$ 2,301,423$ 6,127,951$ 1,086,225$ 7,214,176$ Gove rnm e ntal A ctivitie s Busine ss-Type A ctivitie s
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
107
Notes to the Financial Statements
NOTE 16 – LEASES RECEIVABLE (Continued)
C. Deferred Inflows of Resources – Leases
Lease revenue to be recognized in the upcoming years is as follows:
Busine ss-Type A ctivitie s
For the Year
Ending June 30,
Deferred Infl ows of
Resources to be Reogni zed
Deferred Infl ows of
Resources to be Reogni zed
2023 144,758$ 461,343$ 2024 144,758 450,613 2025 144,758 445,248 2026 144,758 436,321 2027 139,447 341,810 2028-2032 640,360 1,039,617 2033-2037 537,368 957,774 2038-2042 66,585 865,904 2043-2047 23,243 547,365 2048-2052 23,243 240,701 2053-2057 1,550 218,494 2058-2062 - 51,014 2,010,828$ 6,056,204$
Gove rnm e ntal A ctivitie s
108
109
REQUIRED
SUPPLEMENTARY
INFORMATION
(Unaudited)
110
111
City of Visalia
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
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 ex penditures 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 c ontrol 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 comparisons are presented for Proprietary Funds as the City is not legally required to adopt a budget for t hese 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 appropr iations, 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 Jun e 30, 2022, 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.
112
CITY OF VISALIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 30,995,400$ 30,995,400$ 47,052,657$ 16,057,257$ Property 25,992,300 25,992,300 29,725,873 3,733,573 Transient Occupancy 2,288,900 2,288,900 4,589,178 2,300,278 Franchise 2,652,300 2,652,300 3,155,645 503,345 Business License 2,507,000 2,507,000 3,045,708 538,708 Total Taxes 64,435,900 64,435,900 87,569,061 23,133,161 Subventions and Grants
Police and Other 473,700 3,552,492 1,436,979 (2,115,513) Motor Vehicle License In-Lieu 65,000 65,000 160,874 95,874 Total Subventions and Grants 538,700 3,617,492 1,597,853 (2,019,639) License and Permits
Other License and Permits 76,100 76,100 46,588 (29,512) Total License and Permits 76,100 76,100 46,588 (29,512) Fees and Fines
Vehicle Code and Parking Violations 720,000 720,000 418,163 (301,837) Local Ordinance Violations 461,200 461,200 651,975 190,775 Total Fees and Fines 1,181,200 1,181,200 1,070,138 (111,062) Use of Money and Property
Interest Earned 539,000 539,000 (1,018,395) (1,557,395) Rents and Concessions 295,200 295,200 343,335 48,135 Total Use of Money and Property 834,200 834,200 (675,060) (1,509,260) Charges for Services
Engineering and Subdivision Fees 892,400 892,400 1,996,811 1,104,411 Zoning Fees 213,600 213,600 354,250 140,650 Special Public Safety Services 1,250,300 1,250,300 1,550,070 299,770 Recreation Programs 1,577,800 1,577,800 979,798 (598,002) Total Charges for Services 3,934,100 3,934,100 4,880,929 946,829 Other Revenue 1,360,700 1,360,700 2,381,522 1,020,822 Total Revenues 72,360,900 75,439,692 96,871,031 21,431,339 Budgeted Amounts
113
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (Continued) FOR THE YEAR ENDED JUNE 30, 2022
CITY OF VISALIA
EXPENDITURES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Current:
General Government 4,311,500$ 4,317,754$ 3,126,598$ 1,191,156$ Community Development 2,143,200 2,149,700 3,045,632 (895,932) Public Safety:
Fire 14,573,500 14,588,148 16,324,009 (1,735,861) Police 34,645,000 34,724,426 35,557,194 (832,768) Public Works 4,264,100 4,286,959 4,276,183 10,776 Community Services 8,675,000 8,564,142 7,871,256 692,886 Capital Outlay 17,600 1,951,031 1,669,399 281,632 Debt Service (Note 7)
Principal 32,600 32,600 114,433 (81,833) Interest and Fiscal Charges 500 500 9,199 (8,699) Total Expenditures 68,663,000 70,615,260 71,993,903 (1,378,643) Excess (Deficiency) of
Revenues Over (Under) Expenditures 3,697,900 4,824,432 24,877,128 20,052,696 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets - - 46,775 46,775 Transfers In - - 134 134 Transfers Out (5,253,400) (5,253,400) (23,929,268) (18,675,868) Total Other Financing Sources (Uses) (5,253,400) (5,253,400) (23,882,359) (18,628,959) Net Change in Fund Balance (1,555,500)$ (428,968)$ 994,769 1,423,737$ Fund Balance Beginning of Year 53,145,697
Prior Period Adjustment (Note 14) (348,146)
Fund Balance - Beginning of Year, as Restated 52,797,551 Fund Balance - End of Year 53,792,320$
Budgeted Amounts
114
CITY OF VISALIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - MEASURE N
FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 11,704,700$ 11,704,700$ 19,717,002$ 8,012,302$ Total Taxes 11,704,700 11,704,700 19,717,002 8,012,302 Subventions and Grants
Police and Other - - 8,231 8,231 Total Subventions and Grants - - 8,231 8,231 Use of Money and Property
Interest Earned 118,900 118,900 (944,964) (1,063,864) Total Use of Money and Property 118,900 118,900 (944,964) (1,063,864) Charges for Current Services - - 77,308 77,308 Other Revenue - - 40,521 40,521 Total Revenues 11,823,600 11,823,600 18,898,098 7,074,498
EXPENDITURES
Current:
General Government 274,300 274,300 271,018 3,282 Public Safety:
Fire 1,019,400 1,019,400 1,286,697 (267,297) Police 4,409,400 4,409,400 4,942,293 (532,893) Community Services 787,900 803,252 668,948 134,304 Capital Outlay 9,112,400 4,438,890 4,279,194 159,696 Total Expenditures 15,603,400 10,945,242 11,448,150 (502,908) Excess (Deficiency) of
Revenues Over (Under) Expenditures (3,779,800) 878,358 7,449,948 6,571,590 Other Financing Sources
Sale of Land - - 144,938 144,938 Total Other Financing Sources - - 144,938 144,938 Net Change in Fund Balance (3,779,800)$ 878,358$ 7,594,886 6,716,528$ Fund Balance Beginning of Year 29,673,614
Fund Balance - End of Year 37,268,500$
Budgeted Amounts
115
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants 6,801,829$ 3,952,484$ (2,849,345)$ Fees and Fines 25,100 14,175 (10,925) Uses of Money and Property 53,600 2,810 (50,790) Charges for Current Services - 5,000 5,000 Miscellaneous 5,500 638 (4,862) Total Revenues 6,886,029 3,975,107 (2,910,922) Expenditures
Current:
Community Development 73,100 79,739 (6,639) Housing & Community Grants 2,040,247 947,055 1,093,192 Capital Outlay 2,336,004 2,229,013 106,991 Total Expenditures 4,449,351 3,255,807 1,193,544 Excess (Deficiency) of
Revenue Over (Under) Expenditures 2,436,678 719,300 (1,717,378) Other Financing Sources
Transfers In - 30,191 30,191 Total Other Financing Sources - 30,191 30,191 Net Changes in Fund Balance 2,436,678$ 749,491 (1,687,187)$ Fund Balance - Beginning of Year 15,295,008
Fund Balance - End of Year 16,044,499$
CITY OF VISALIA
FOR THE YEAR ENDED JUNE 30, 2022
BUDGETARY COMPARISON SCHEDULE - HOUSING & COMMUNITY GRANTS
REQUIRED SUPPLEMENTARY INFORMATION
116
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants -$ 325,021$ 325,021$ Uses of Money and Property 8,000 26,430 18,430 Miscellaneous - 30 30 Total Revenues 8,000 351,481 343,481 Expenditures
Current:
General Government 112,200 180,779 (68,579) Capital Outlay 529,320 329,320 200,000 Total Expenditures 641,520 510,099 131,421 Excess (Deficiency) of
Revenue Over (Under) Expenditures (633,520) (158,618) 474,902 Other Financing Sources (Uses)
Sale of Land - 41,331 (41,331) Total Other Financing Sources - 41,331 (41,331) Net Changes in Fund Balance (633,520)$ (117,287) 433,571$ Fund Balance - Beginning of Year 10,702,480
Fund Balance - End of Year 10,585,193$
FOR THE YEAR ENDED JUNE 30, 2022
CITY OF VISALIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING SUCCESSOR AGENCY 117
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants -$ 879,318$ 879,318$ Uses of Money and Property - 63,786 63,786 Miscellaneous - 128 128 Total Revenues - 943,232 943,232 Expenditures
Capital Outlay 615,834 879,318 (263,484) Total Expenditures 615,834 879,318 (263,484) Excess (Deficiency) of
Revenue Over (Under) Expenditures (615,834) 63,914 679,748 Net Changes in Fund Balance (615,834)$ 63,914 679,748$ Fund Balance - Beginning of Year 2,767
Fund Balance - End of Year 66,681$
CITY OF VISALIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - AMERICAN RESCUE PLAN
FOR THE YEAR ENDED JUNE 30, 2022
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
118
Required Supplementary Information
Miscellaneous Plan
Measurement Peri od 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1 2015-16 1 2014-15 1 2013-14 1
TOTAL PENSION LIABILITY
Servi ce Cost 4,395,969$ 4,403,664$ 4,255,037$ 4,192,969$ 4,245,437$ 3,786,783$ 3,692,092$ 3,797,356$ Interest 17,627,181 16,958,814 16,380,941 15,535,179 14,997,055 14,571,322 13,839,466 13,175,275 Changes of Benefi t Terms - - - - - - - - Di fference Between Expected and Actual Experi ence (88,959) (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 (12,115,961) (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 9,818,230 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 250,482,970 242,215,006 229,848,421 222,110,915 202,589,231 192,500,397 186,909,842 177,606,096 Total Pension Liability - Ending (a) 260,301,200$ 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 7,688,208$ 7,072,583$ 6,219,874$ 5,482,359$ 5,129,632$ 4,678,278$ 4,077,411$ 3,947,176$ Contributions - Employee 1,897,359 1,918,767 1,845,020 1,850,278 1,781,007 1,733,983 1,747,629 1,809,951 Net Investment Income 39,751,521 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 (12,115,961) (11,727,761) (10,795,043) (10,116,949) (9,515,763) (8,700,574) (8,186,347) (7,668,885) Net Pl an to Pl an Resource Movement - - - (376) - - - - Administrative Expense (174,979) (239,113) (115,502) (237,501) (206,266) (86,138) (159,136) - Other Mi scel l aneous Income/(Expense)2 - - 376 (451,018) - - - - Net Change in Fiduciary Net Position 37,046,148 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 175,164,455 169,613,222 161,853,618 152,412,558 139,705,826 141,337,889 140,683,484 121,542,048 Plan Fiduciary Net Position - Ending (b) 212,210,603$ 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) 48,090,597$ 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 81.53% 69.93% 70.03% 70.42% 68.62% 68.96% 73.42% 75.27% Covered Payroll 4 25,483,876$ 25,250,366$ 23,916,793$ 23,303,337$ 22,840,895$ 22,218,995$ 21,309,546$ 20,653,520$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 188.71% 298.29% 303.56% 291.78% 305.15% 283.02% 240.09% 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, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the 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 - 2021. 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:
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
119
Required Supplementary Information
Safety Plan
Measurement Peri od 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1 2015-16 1 2014-15 1 2013-14 1
TOTAL PENSION LIABILITY
Servi ce Cost 6,473,248$ 6,324,588$ 6,222,413$ 5,995,204$ 5,853,759$ 5,349,411$ 5,222,479$ 5,100,652$ Interest 18,396,919 17,437,680 16,600,696 15,464,636 14,715,002 14,186,919 13,269,691 12,494,891 Changes of Benefi t Terms - - - - - - - - Di fference Between Expected and Actual Experi ence 403,302 (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 (11,219,989) (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 14,053,480 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 259,269,633 247,175,635 230,454,139 219,426,090 198,522,507 185,756,323 178,316,761 167,375,211 Total Pension Liability - Ending (a) 273,323,113$ 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 10,044,602$ 8,928,558$ 8,085,201$ 7,221,051$ 6,623,640$ 6,259,154$ 5,610,391$ 5,703,922$ Contributions - Employee 2,349,763 2,142,637 2,172,900 1,924,202 1,846,297 1,750,054 1,805,168 1,618,205 Net Investment Income 44,537,546 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 (11,219,989) (10,427,951) (9,427,686) (8,593,404) (8,040,046) (7,578,069) (7,169,237) (6,653,993) Net Pl an to Pl an Resource Movement - - - (400) - (9,962) - - Administrative Expense (194,086) (260,195) (123,040) (247,809) (210,978) (86,447) (159,587) - Other Mi scel l aneous Income/(Expense)2 - - 400 (470,593) - - - - Net Change in Fiduciary Net Position 45,517,836 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 194,292,181 184,567,232 172,416,053 159,027,419 142,897,101 141,845,069 138,616,770 117,418,183 Plan Fiduciary Net Position - Ending (b) 239,810,017$ 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) 33,513,096$ 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 87.74% 74.94% 74.67% 74.82% 72.47% 71.98% 76.36% 77.74% Covered Payroll 4 21,898,673$ 21,060,898$ 20,360,634$ 19,541,081$ 18,777,695$ 19,201,043$ 18,560,232$ 17,363,328$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 153.04% 308.52% 307.50% 297.01% 321.65% 289.70% 236.59% 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, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the 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 - 2021. 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:
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
120
Required Supplementary Information
Miscellaneous Plan
Fiscal Year1
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
2021-22 8,224,107$ (8,224,107)$ -$ 26,244,915$ 31.34% 2020-21 7,688,208 (7,688,208) - 25,483,876 30.17% 2019-20 7,072,583 (7,072,583) - 25,250,366 28.01% 2018-19 6,219,874 (6,219,874) - 23,916,793 26.01% 2017-18 5,482,359 (5,482,359) - 23,303,337 23.53% 2016-17 5,129,632 (5,129,632) - 22,840,895 22.46% 2015-16 4,678,278 (4,678,278) - 22,218,995 21.06% 2014-15 4,077,411 (4,077,411) - 21,309,546 19.13% 2013-14 3,947,176 (3,947,176) - 20,653,520 19.11% Safety Plan
Fiscal Year1
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll2
Contributions as a
Percentage of
Covered Payroll
2021-22 10,480,454$ (10,480,454)$ -$ 22,762,490$ 46.04% 2020-21 10,044,602 (10,044,602) - 21,898,673 45.87% 2019-20 8,928,558 (8,928,558) - 21,060,898 42.39% 2018-19 8,085,201 (8,085,201) - 20,360,634 39.71% 2017-18 7,221,051 (7,221,051) - 19,541,081 36.95% 2016-17 6,623,640 (6,623,640) - 18,777,695 35.27% 2015-16 6,259,154 (6,259,154) - 19,201,043 32.60% 2014-15 5,610,391 (5,610,391) - 18,560,232 30.23% 2013-14 5,703,922 (5,703,922) - 17,363,328 32.85% 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 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
Actuarial Cost Method Entry Age Normal.
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.
Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.
Inflation 2.50%
Salary Increases Varies by Entry Age and Service.
Payroll Growth 2.75%
Investment Rate of Return
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age
Mortality
Other information:
For changes to previous years' information, refer to past GASB 68 reports.
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.
CITY OF VISALIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED:
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. 121
SUPPLEMENTARY
INFORMATION
122
123
Final
Budget Actual
Variance With
Final Budget
Revenues
Fees and Fines 4,089,300$ 6,728,696$ 2,639,396$ Uses of Money and Property 124,700 (573,505) (698,205) Miscellaneous - 55,588 55,588 Total Revenues 4,214,000 6,210,779 1,996,779 Expenditures
Current:
Public Works 40,000 35,375 4,625 Capital Outlay 4,070,676 3,040,445 1,030,231 Total Expenditures 4,110,676 3,075,820 1,034,856 Excess (Deficiency) of
Revenue Over (Under) Expenditures 103,324 3,134,959 3,031,635 Net Changes in Fund Balance 103,324$ 3,134,959 3,031,635$ Fund Balance - Beginning of Year 15,546,676
Prior Period Adjustment (Note 14) 814,590
Fund Balances - Beginning of Year, as Restated 16,361,266 Fund Balance - End of Year 19,496,225$
CITY OF VISALIA
FOR THE YEAR ENDED JUNE 30, 2022
SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - TRANSPORTATION
124
Final
Budget Actual
Variance With
Final Budget
Revenues
Uses of Money and Property - (972,043) (972,043) Total Revenues - (972,043) (972,043) Expenditures
Current:
General Government - 6,503 (6,503) Capital Outlay 310,902 310,902 - Total Expenditures 310,902 317,405 (6,503) Excess (Deficiency) of
Revenue Over (Under) Expenditures (310,902) (1,289,448) (978,546) Other Financing Sources (Uses)
Sale of Land - 1,200,000 1,200,000 Transfers In - 14,221,739 14,221,739 Total Other Financing Sources - 15,421,739 15,421,739 Net Changes in Fund Balance (310,902)$ 14,132,291 14,443,193$ Fund Balance - Beginning of Year 32,738,468
Prior Period Adjustment (Note 14) 133,665
Fund Balances - Beginning of Year, as Restated 32,872,133 Fund Balance - End of Year 47,004,424$
CITY OF VISALIA
FOR THE YEAR ENDED JUNE 30, 2022
SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - CIVIC CENTER
125
NON- MAJOR GOVERNMENTAL FUNDS
126
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
127
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 th e 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 ac count 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; moni es 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 money 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 money must be returned to the previous owner or the fund are forfe ited to the City which may use the seized funds for the recovery of narcotics law enforcement costs associated with the seized funds.
MEASURE T – POLICE
Established to account for increased Police operational and capital expenditures. Financing is provi ded 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 Co uncil declares an economic emergency by a 4/5
ths 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 4/5
ths 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 spec ific 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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
128
Non-Major Governmental Funds
TRANSPORTATION GRANTS
Established to account for the financing and construction of s treets, 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.
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 o ak tree preservation and m aintenance 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 money that is found or seized and no longer required as evidence and remains unclaimed after three years. I f the money remains unclaimed the money becomes the property of the City. This fund should not be confused with Narcotics Forfeiture Funds.
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
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.
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
129
Non-Major Governmental Funds
PUBLIC SAFETY IMPACT FEE
Established to defray the costs of public safety facilities needed as a result of new developm ent projects. Funding is provided by fees charged to new developments.
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
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.
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.
BASEBALL
Established to account for the maintenance and improvements to the baseball facility.
130
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2022
CITY OF VISALIA
Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
S ervic e
Districts
ASSETS
Cash and Investments 3,899,736$ 3,695,861$ 638,034$ 13,832,679$ Restricted Cash and Investments - - - - Accounts Receivable 43,537 104,327 44,552 7,178 Lease Receivable - - - - Taxes Receivable - 189,321 - 133,514 Notes and Loans Receivable 159,540 - - - Inventory - 85,031 - - Due from Other Governmental Units - - - - Total Assets 4,102,813$ 4,074,540$ 682,586$ 13,973,371$
LIABILITIES
Accounts, Interest and Contracts Payable 41,655$ 2,014$ -$ 501,905$ Advance from Other Funds - - - 971,223 Customer Deposits - - - - Unearned Revenue - 85,031 - - Total Liabilities 41,655 87,045 - 1,473,128
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees 3,471 940 - - Leases - - - - Total Deferred Inflows of Resources 3,471 940 - -
FUND BALANCES
Restricted 4,057,687 3,986,555 682,586 12,500,243 Committed - - - - Unassigned - - - - Total Fund Balances (Deficit) 4,057,687 3,986,555 682,586 12,500,243 4,102,813$ 4,074,540$ 682,586$ 13,973,371$
SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
131
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police
ASSETS
Cash and Investments 707,305$ 160,459$ 804,367$ 5,674,695$ Restricted Cash and Investments - - - - Accounts Receivable 9,615 - - - Lease Receivable - - - - Taxes Receivable - 3,644 - 1,121,132 Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 716,920$ 164,103$ 804,367$ 6,795,827$
LIABILITIES
Accounts, Interest and Contracts Payable -$ 2,897$ 6$ 1,152$ Advance from Other Funds - - - - Customer Deposits - - 334,396 - Unearned Revenue - - - - Total Liabilities - 2,897 334,402 1,152
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - 460,493 - Impact Fees 9,614 - - - Leases - - - - Total Deferred Inflows of Resources 9,614 - 460,493 -
FUND BALANCES
Restricted 707,306 161,206 9,472 6,794,675 Committed - - - - Unassigned - - - - Total Fund Balances (Deficit) 707,306 161,206 9,472 6,794,675 716,920$ 164,103$ 804,367$ 6,795,827$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
SPECIAL REVENUE FUNDS
132
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
ASSETS
Cash and Investments 6,158,356$ 9,990,616$ -$ 3,750,956$ Restricted Cash and Investments - - - - Accounts Receivable - - - - Lease Receivable - - - - Taxes Receivable 747,421 317,143 392,260 - Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - 94,565 Total Assets 6,905,777$ 10,307,759$ 392,260$ 3,845,521$
LIABILITIES
Accounts, Interest and Contracts Payable 11,048$ 7,017$ 50,698$ 34,122$ Advance from Other Funds - - 392,008 - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 11,048 7,017 442,706 34,122
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -
FUND BALANCES
Restricted 6,894,729 10,300,742 - 3,811,399 Committed - - - - Unassigned - - (50,446) - Total Fund Balances (Deficit) 6,894,729 10,300,742 (50,446) 3,811,399 6,905,777$ 10,307,759$ 392,260$ 3,845,521$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
SPECIAL REVENUE FUNDS
133
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Golf
Course
CASP
Program
Oak Tree
Preservation Conservation
ASSETS
Cash and Investments 272,463$ 420,016$ 273,333$ 241,138$ Restricted Cash and Investments - - - - Accounts Receivable - - - - Lease Receivable 1,365,261 - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 1,637,724$ 420,016$ 273,333$ 241,138$
LIABILITIES
Accounts, Interest and Contracts Payable 73$ 2,699$ -$ -$ Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 73 2,699 - -
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees - - - - Leases 1,343,615 - - - Total Deferred Inflows of Resources 1,343,615 - - -
FUND BALANCES
Restricted 294,036 417,317 - - Committed - - 273,333 241,138 Unassigned - - - - Total Fund Balances (Deficit) 294,036 417,317 273,333 241,138 1,637,724$ 420,016$ 273,333$ 241,138$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
SPECIAL REVENUE FUNDS
134
SPECIAL
REVENUE
FUNDS
CAPITAL
PROJECT
FUNDS
Police Unclaimed
Funds
VPFA 2014
Refunding
Certificates of
Participation
2015
Certificates of
Participation
Softball
Facility
Development
ASSETS
Cash and Investments 230,941$ -$ -$ 1,099$ Restricted Cash and Investments - - 8,685 - Accounts Receivable - - - - Lease Receivable - - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 230,941$ -$ 8,685$ 1,099$
LIABILITIES
Accounts, Interest and Contracts Payable 1,176$ 1,888$ 25,487$ -$ Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue 105,667 - - - Total Liabilities 106,843 1,888 25,487 -
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -
FUND BALANCES
Restricted - - 8,685 1,099 Committed 124,098 - - - Unassigned - (1,888) (25,487) - Total Fund Balances (Deficit) 124,098 (1,888) (16,802) 1,099 230,941$ -$ 8,685$ 1,099$
DEBT SERVICE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
135
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Highway
Users
Recreational
Facilities
Storm Sewer
Construction
Public Safety
Impact Fee
ASSETS
Cash and Investments 12,991,131$ 8,888,750$ 4,596,256$ 853,949$ Restricted Cash and Investments - - - - Accounts Receivable - 1,220,993 170,908 745,903 Lease Receivable - - - - Taxes Receivable 515,771 - 15,039 - Notes and Loans Receivable - - 6,093 84,310 Inventory - - - - Due from Other Governmental Units 10,992 - - - Total Assets 13,517,894$ 10,109,743$ 4,788,296$ 1,684,162$
LIABILITIES
Accounts, Interest and Contracts Payable 179,668$ 4,217$ 200,070$ 18$ Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 179,668 4,217 200,070 18
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees - 1,220,992 105,265 745,903 Leases - - - - Total Deferred Inflows of Resources - 1,220,992 105,265 745,903
FUND BALANCES
Restricted 13,338,226 8,884,534 4,482,961 938,241 Committed - - - - Unassigned - - - - Total Fund Balances (Deficit) 13,338,226 8,884,534 4,482,961 938,241 13,517,894$ 10,109,743$ 4,788,296$ 1,684,162$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
CAPITAL PROJECT FUNDS
136
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Sports Complex
ASSETS
Cash and Investments 8,556,647$ 3,821,481$ 761,099$ 560,441$ Restricted Cash and Investments - - - - Accounts Receivable 431,254 1,030 - - Lease Receivable - 143,972 - - Taxes Receivable - - - - Notes and Loans Receivable 148,073 117,122 - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 9,135,974$ 4,083,605$ 761,099$ 560,441$
LIABILITIES
Accounts, Interest and Contracts Payable -$ 619$ -$ -$ Advance from Other Funds 26,021 - - - Customer Deposits - 56,353 - - Unearned Revenue - - - - Total Liabilities 26,021 56,972 - -
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - - - Impact Fees 431,253 - - - Leases - 141,009 - - Total Deferred Inflows of Resources 431,253 141,009 - -
FUND BALANCES
Restricted 8,678,700 3,885,624 - - Committed - - 761,099 560,441 Unassigned - - - - Total Fund Balances (Deficit) 8,678,700 3,885,624 761,099 560,441 9,135,974$ 4,083,605$ 761,099$ 560,441$
CAPITAL PROJECT FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
137
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
COMBINING BALANCE SHEETS (Continued)
Animal Control
Reserve Baseball
Total
Non-major
Governmental
Funds
ASSETS
Cash and Investments 244,474$ 200,000$ 92,226,282$ Restricted Cash and Investments - - 8,685 Accounts Receivable - 51,727 2,831,024 Lease Receivable - - 1,509,233 Taxes Receivable - - 3,435,245 Notes and Loans Receivable - - 515,138 Inventory - - 85,031 Due from Other Governmental Units - - 105,557 Total Assets 244,474$ 251,727$ 100,716,195$
LIABILITIES
Accounts, Interest and Contracts Payable -$ 19,989$ 1,088,418$ Advance from Other Funds - - 1,389,252 Customer Deposits - - 390,749 Unearned Revenue - - 190,698 Total Liabilities - 19,989 3,059,117
DEFERRED INFLOWS OF RESOURCES
Asset Forfeiture - - 460,493 Impact Fees - - 2,517,438 Leases - - 1,484,624 Total Deferred Inflows of Resources - - 4,462,555
FUND BALANCES
Restricted - - 90,836,023 Committed 244,474 231,738 2,436,321 Unassigned - - (77,821) Total Fund Balances (Deficit) 244,474 231,738 93,194,523 244,474$ 251,727$ 100,716,195$
CAPITAL PROJECT FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
138
CITY OF VISALIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
NON-MAJOR GOVERNMENTAL FUNDS
Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
S ervic e
Districts
REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 882,258 1,421,414 349,322 - Uses of Money and Property (102,035) (99,539) (23,302) (367,662) Charges for Current Services 314,302 - - 5,151,807 Miscellaneous - - - 3,490 Total Revenues 1,094,525 1,321,875 326,020 4,787,635
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Public Safety:
Fire - - - - Police - - - - Public Works 341,787 434,251 21,198 - Community Services - - - 3,020,886 Capital Outlay 187,175 130,722 - 83,852 Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 528,962 564,973 21,198 3,104,738 Excess (Deficiency) of
Revenues Over (Under) Expenditures 565,563 756,902 304,822 1,682,897
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - - (300,000) - Total Other Financing Sources (Uses) - - (300,000) - Net Changes in Fund Balances 565,563 756,902 4,822 1,682,897 Fund Balances - Beginning of
Year (Deficits) 3,328,756 3,229,653 677,764 10,817,346 Prior Period Adjustment 163,368 - - - Fund Balances (Deficits) - Beginning of Year,
as Restated 3,492,124 3,229,653 677,764 10,817,346 Fund Balances (Deficits) - End of Year 4,057,687$ 3,986,555$ 682,586$ 12,500,243$
SPECIAL REVENUE FUNDS
139
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police
REVENUES
Sales Taxes -$ -$ -$ 5,930,439$ Other Taxes - - - - Subventions and Grants - 342,409 - 4,933 License and Permits - - - - Fees and Fines 62,203 - - - Uses of Money and Property (20,077) (4,147) - (147,806) Charges for Current Services - - - - Miscellaneous - 62 18,467 112,425 Total Revenues 42,126 338,324 18,467 5,899,991
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Public Safety:
Fire - - - - Police - 277,940 6,597 4,006,265 Public Works 1,441 - - - Community Services - - - - Capital Outlay - 22,158 11,824 - Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,441 300,098 18,421 4,006,265 Excess (Deficiency) of
Revenues Over (Under) Expenditures 40,685 38,226 46 1,893,726
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - (134) - (151,249) Total Other Financing Sources (Uses) - (134) - (151,249) Net Changes in Fund Balances 40,685 38,092 46 1,742,477 Fund Balances - Beginning of
Year (Deficits) 666,621 123,114 9,426 5,052,198 Prior Period Adjustment - - - - Fund Balances (Deficits) - Beginning of Year,
as Restated 666,621 123,114 9,426 5,052,198 Fund Balances (Deficits) - End of Year 707,306$ 161,206$ 9,472$ 6,794,675$
SPECIAL REVENUE FUNDS
140
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
REVENUES
Sales Taxes 3,953,626$ 4,036,734$ 1,460,731$ -$ Other Taxes - - - - Subventions and Grants 3,421 - - 1,471,650 License and Permits - - - - Fees and Fines - - - - Uses of Money and Property (170,040) (242,093) - (100,706) Charges for Current Services 100,685 - - - Miscellaneous 46,155 3 8 2,193 Total Revenues 3,933,847 3,794,644 1,460,739 1,373,137
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Public Safety:
Fire 2,928,345 - - - Police - - - - Public Works - 34,712 7,878 669 Community Services - - - - Capital Outlay 543 500,663 2,223,388 2,191,014 Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 2,928,888 535,375 2,231,266 2,191,683 Excess (Deficiency) of
Revenues Over (Under) Expenditures 1,004,959 3,259,269 (770,527) (818,546)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 1,004,959 3,259,269 (770,527) (818,546) Fund Balances - Beginning of
Year (Deficits) 5,889,770 7,036,699 724,855 4,629,945 Prior Period Adjustment - 4,774 (4,774) - Fund Balances (Deficits) - Beginning of Year,
as Restated 5,889,770 7,041,473 720,081 4,629,945 Fund Balances (Deficits) - End of Year 6,894,729$ 10,300,742$ (50,446)$ 3,811,399$
SPECIAL REVENUE FUNDS
141
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Golf
Course
CASP
Program
Oak Tree
Preservation Conservation
REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - 77,171 - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 260,355 - 10,715 - Uses of Money and Property 12,260 (11,367) (8,332) (7,349) Charges for Current Services - - - - Miscellaneous - 6 - - Total Revenues 272,615 65,810 2,383 (7,349)
EXPENDITURES
Current:
General Government - - - - Community Development - 1,507 - - Public Safety:
Fire - - - - Police - - - - Public Works - - - - Community Services 59,480 - 7,306 48 Capital Outlay - - - - Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 59,480 1,507 7,306 48 Excess (Deficiency) of
Revenues Over (Under) Expenditures 213,135 64,303 (4,923) (7,397)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 213,135 64,303 (4,923) (7,397) Fund Balances - Beginning of
Year (Deficits) 80,901 353,014 278,256 248,535 Prior Period Adjustment - - - - Fund Balances (Deficits) - Beginning of Year,
as Restated 80,901 353,014 278,256 248,535 Fund Balances (Deficits) - End of Year 294,036$ 417,317$ 273,333$ 241,138$
SPECIAL REVENUE FUNDS
142
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
SPECIAL
REVENUE
FUNDS
CAPITAL
PROJECTS
FUNDS
Police Unclaimed
Funds
VPFA 2014
Refunding
Certificates of
Participation
2015
Certificates of
Participation
Softball
Facility
Development
REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines - - - - Uses of Money and Property (6,973) - 23 (33) Charges for Current Services - - - - Miscellaneous 67,217 - - - Total Revenues 60,244 - 23 (33)
EXPENDITURES
Current:
General Government - - 1,208 - Community Development - - - - Public Safety:
Fire - - - - Police 748 - - - Public Works - - - - Community Services - - - 2 Capital Outlay 2,551 - - - Debt Service:
Principal - 102,400 824,198 - Interest and Fiscal Charges - 24,752 328,179 - Total Expenditures 3,299 127,152 1,153,585 2 Excess (Deficiency) of
Revenues Over (Under) Expenditures 56,945 (127,152) (1,153,562) (35)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - 127,488 1,156,955 - Transfers Out - - - - Total Other Financing Sources (Uses) - 127,488 1,156,955 - Net Changes in Fund Balances 56,945 336 3,393 (35) Fund Balances - Beginning of
Year (Deficits) 67,153 (2,224) (20,195) 1,134 Prior Period Adjustment - - - - Fund Balances (Deficits) - Beginning of Year,
as Restated 67,153 (2,224) (20,195) 1,134 Fund Balances (Deficits) - End of Year 124,098$ (1,888)$ (16,802)$ 1,099$ DEBT
SERVICE
FUNDS
143
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Highway
Users
Recreational
Facilities
Storm Sewer
Construction
Public Safety
Impact Fee
REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants 6,069,060 - - - License and Permits - - - - Fees and Fines - 2,708,970 1,766,433 1,079,745 Uses of Money and Property 154,349 (223,985) (114,428) (16,435) Charges for Current Services - - - - Miscellaneous 48 - - - Total Revenues 6,223,457 2,484,985 1,652,005 1,063,310
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Public Safety:
Fire - - - 2,923 Police - - - 802 Public Works 691,428 - 33,210 - Community Services - 23,125 - - Capital Outlay 2,568,491 147,560 493,769 60,563 Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 3,259,919 170,685 526,979 64,288 Excess (Deficiency) of
Revenues Over (Under) Expenditures 2,963,538 2,314,300 1,125,026 999,022
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - - - (414,541) Total Other Financing Sources (Uses) - - - (414,541) Net Changes in Fund Balances 2,963,538 2,314,300 1,125,026 584,481 Fund Balances - Beginning of
Year (Deficits) 10,374,688 6,570,234 3,353,043 287,123 Prior Period Adjustment - - 4,892 66,637 Fund Balances (Deficits) - Beginning of Year,
as Restated 10,374,688 6,570,234 3,357,935 353,760 Fund Balances (Deficits) - End of Year 13,338,226$ 8,884,534$ 4,482,961$ 938,241$
CAPITAL PROJECTS FUNDS
144
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Sports Complex
REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - 34,434 - - License and Permits - 11,100 - - Fees and Fines 1,027,188 - - - Uses of Money and Property (245,157) (106,187) (23,195) (17,080) Charges for Current Services - - - - Miscellaneous - 8 - - Total Revenues 782,031 (60,645) (23,195) (17,080)
EXPENDITURES
Current:
General Government 13,555 - 155 114 Community Development - 8,478 - - Public Safety:
Fire - - - - Police - - - - Public Works 2,350 - - - Community Services - - - - Capital Outlay - 5,632 - 28 Debt Service:
Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 15,905 14,110 155 142 Excess (Deficiency) of
Revenues Over (Under) Expenditures 766,126 (74,755) (23,350) (17,222)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 766,126 (74,755) (23,350) (17,222) Fund Balances - Beginning of
Year (Deficits) 7,795,373 3,953,846 784,449 577,663 Prior Period Adjustment 117,201 6,533 - - Fund Balances (Deficits) - Beginning of Year,
as Restated 7,912,574 3,960,379 784,449 577,663 Fund Balances (Deficits) - End of Year 8,678,700$ 3,885,624$ 761,099$ 560,441$
CAPITAL PROJECTS FUNDS
145
CITY OF VISALIA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Animal Control
Reserve Baseball
Total
Non-major
Governmental
Funds
REVENUES
Sales Taxes -$ -$ 15,381,530$ Other Taxes - - 77,171 Subventions and Grants - - 7,925,907 License and Permits - - 11,100 Fees and Fines - - 9,568,603 Uses of Money and Property (7,451) (5,568) (1,904,315) Charges for Current Services - - 5,566,794 Miscellaneous - 51,727 301,809 Total Revenues (7,451) 46,159 36,928,599
EXPENDITURES
Current:
General Government 49 - 15,081 Community Development - - 9,985 Public Safety:
Fire - - 2,931,268 Police - - 4,292,352 Public Works - - 1,568,924 Community Services - 174,277 3,285,124 Capital Outlay - 21,874 8,651,807 Debt Service:
Principal - - 926,598 Interest and Fiscal Charges - - 352,931 Total Expenditures 49 196,151 22,034,070 Excess (Deficiency) of
Revenues Over (Under) Expenditures (7,500) (149,992) 14,894,529
OTHER FINANCING SOURCES (USES)
Sale of Land - - - Transfers In - 422,735 1,707,178 Transfers Out - - (865,924) Total Other Financing Sources (Uses) - 422,735 841,254 Net Changes in Fund Balances (7,500) 272,743 15,735,783 Fund Balances - Beginning of
Year (Deficits) 251,974 (41,005) 77,100,109 Prior Period Adjustment - - 358,631 Fund Balances (Deficits) - Beginning of Year,
as Restated 251,974 (41,005) 77,458,740 Fund Balances (Deficits) - End of Year 244,474$ 231,738$ 93,194,523$
CAPITAL PROJECTS FUNDS
146
FOR THE YEAR ENDED JUNE 30, 2022
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 516,100 882,258 366,158 1,084,000 1,421,414 337,414 Uses of Money and Property 4,100 (102,035) (106,135) 2,500 (99,539) (102,039) Charges for Current Services 312,300 314,302 2,002 - - - Miscellaneous - - - - - - Total Revenues 832,500 1,094,525 262,025 1,086,500 1,321,875 235,375
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works 221,100 341,787 (120,687) 135,000 434,251 (299,251) Community Services - - - - - - Capital Outlay 937,175 187,175 750,000 875,722 130,722 745,000 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,158,275 528,962 629,313 1,010,722 564,973 445,749 Excess (Deficiency) of
Revenues Over (Under) Expenditures (325,775) 565,563 891,338 75,778 756,902 681,124
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (325,775)$ 565,563 891,338$ 75,778$ 756,902 681,124$ Fund Balances - Beginning of
Year (Deficits) 3,328,756 3,229,653
Prior Period Adjustment 163,368 -
Fund Balances - Beginning of Year, as Restated 3,492,124 3,229,653 Fund Balances - End of Year (Deficits) 4,057,687$ 3,986,555$ Waterways Groundwater Recharge
147
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, 2022
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 290,000 349,322 59,322 - - - Uses of Money and Property 3,000 (23,302) (26,302) 3,000 (367,662) (370,662) Charges for Current Services - - - 5,258,600 5,151,807 (106,793) Miscellaneous - - - - 3,490 3,490 Total Revenues 293,000 326,020 33,020 5,261,600 4,787,635 (473,965)
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works 19,800 21,198 (1,398) - - - Community Services - - - 3,314,800 3,020,886 293,914 Capital Outlay - - - 961,653 83,852 877,801 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 19,800 21,198 (1,398) 4,276,453 3,104,738 1,171,715 Excess (Deficiency) of
Revenues Over (Under) Expenditures 273,200 304,822 31,622 985,147 1,682,897 697,750
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 Balances (26,800)$ 4,822 31,622$ 985,147$ 1,682,897 697,750$ Fund Balances - Beginning of
Year (Deficits) 677,764 10,817,346
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 677,764 10,817,346 Fund Balances - End of Year (Deficits) 682,586$ 12,500,243$ Kaweah Lake and
Local Storm Water Maintenance Special Service Districts
148
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 342,409 342,409 - License and Permits - - - - - - Fees and Fines 84,200 62,203 (21,997) - - - Uses of Money and Property 3,500 (20,077) (23,577) - (4,147) (4,147) Charges for Current Services - - - - - - Miscellaneous - - - - 62 62 Total Revenues 87,700 42,126 (45,574) 342,409 338,324 (4,085)
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - 266,200 277,940 (11,740) Public Works 1,400 1,441 (41) - - - Community Services - - - - - - Capital Outlay - - - 26,597 22,158 4,439 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,400 1,441 (41) 292,797 300,098 (7,301) Excess (Deficiency) of
Revenues Over (Under) Expenditures 86,300 40,685 (45,615) 49,612 38,226 (11,386)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - (134) (134) Total Other Financing Sources (Uses) - - - - (134) (134) Net Changes in Fund Balances 86,300$ 40,685 (45,615)$ 49,612$ 38,092 (11,520)$ Fund Balances - Beginning of
Year (Deficits) 666,621 123,114
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 666,621 123,114 Fund Balances - End of Year (Deficits) 707,306$ 161,206$ Grant & Loan FundsNortheast Area
149
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes -$ -$ -$ 3,482,600$ 5,930,439$ 2,447,839$ Other Taxes - - - - - - Subventions and Grants - - - 6,000 4,933 (1,067) License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - - - 26,000 (147,806) (173,806) Charges for Current Services - - - - - - Miscellaneous 105,000 18,467 (86,533) 33,700 112,425 78,725 Total Revenues 105,000 18,467 (86,533) 3,548,300 5,899,991 2,351,691
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police 5,000 6,597 (1,597) 4,039,100 4,006,265 32,835 Public Works - - - - - - Community Services - - - - - - Capital Outlay 100,000 11,824 88,176 - - - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 105,000 18,421 86,579 4,039,100 4,006,265 32,835 Excess (Deficiency) of
Revenues Over (Under) Expenditures - 46 46 (490,800) 1,893,726 2,384,526
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - (151,500) (151,249) 251 Total Other Financing Sources (Uses) - - - (151,500) (151,249) 251 Net Changes in Fund Balances -$ 46 46$ (642,300)$ 1,742,477 2,384,777$ Fund Balances - Beginning of
Year (Deficits) 9,426 5,052,198
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 9,426 5,052,198 Fund Balances - End of Year (Deficits) 9,472$ 6,794,675$ Narcotics Forfeiture Measure T - Police
150
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes 2,321,800$ 3,953,626$ 1,631,826$ 2,731,100$ 4,036,734$ 1,305,634$ Other Taxes - - - - - - Subventions and Grants - 3,421 3,421 - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property 82,000 (170,040) (252,040) 30,700 (242,093) (272,793) Charges for Current Services 25,000 100,685 75,685 - - - Miscellaneous 73,800 46,155 (27,645) - 3 3 Total Revenues 2,502,600 3,933,847 1,431,247 2,761,800 3,794,644 1,032,844
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire 2,996,000 2,928,345 67,655 - - - Police - - - - - - Public Works - - - 30,200 34,712 (4,512) Community Services - - - - - - Capital Outlay - 543 (543) 2,846,614 500,663 2,345,951 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 2,996,000 2,928,888 67,112 2,876,814 535,375 2,341,439 Excess (Deficiency) of
Revenues Over (Under) Expenditures (493,400) 1,004,959 1,498,359 (115,014) 3,259,269 3,374,283
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (493,400)$ 1,004,959 1,498,359$ (115,014)$ 3,259,269 3,374,283$ Fund Balances - Beginning of
Year (Deficits) 5,889,770 7,036,699
Prior Period Adjustment - 4,774
Fund Balances - Beginning of Year, as Restated 5,889,770 7,041,473 Fund Balances - End of Year (Deficits) 6,894,729$ 10,300,742$ Measure T - Fire Measure R - Local
151
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes 2,193,000$ 1,460,731$ (732,269)$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 5,025,800 1,471,650 (3,554,150) License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - - - - (100,706) (100,706) Charges for Current Services - - - - - - Miscellaneous - 8 8 - 2,193 2,193 Total Revenues 2,193,000 1,460,739 (732,261) 5,025,800 1,373,137 (3,652,663)
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works - 7,878 (7,878) - 669 (669) Community Services - - - - - - Capital Outlay 9,722,578 2,223,388 7,499,190 6,250,400 2,191,014 4,059,386 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 9,722,578 2,231,266 7,491,312 6,250,400 2,191,683 4,058,717 Excess (Deficiency) of
Revenues Over (Under) Expenditures (7,529,578) (770,527) 6,759,051 (1,224,600) (818,546) 406,054
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (7,529,578)$ (770,527) 6,759,051$ (1,224,600)$ (818,546) 406,054$ Fund Balances - Beginning of
Year (Deficits) 724,855 4,629,945
Prior Period Adjustment (4,774) -
Fund Balances - Beginning of Year, as Restated 720,081 4,629,945 Fund Balances - End of Year (Deficits) (50,446)$ 3,811,399$ Measure R - Regional Transportation Grants
152
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - 83,000 77,171 (5,829) Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 90,000 260,355 170,355 - - - Uses of Money and Property 1,300 12,260 10,960 4,100 (11,367) (15,467) Charges for Current Services - - - - - - Miscellaneous - - - 200 6 (194) Total Revenues 91,300 272,615 181,315 87,300 65,810 (21,490)
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - 21,300 1,507 19,793 Public Safety:
Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services 51,200 59,480 (8,280) - - - Capital Outlay - - - - - - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 51,200 59,480 (8,280) 21,300 1,507 19,793 Excess (Deficiency) of
Revenues Over (Under) Expenditures 40,100 213,135 173,035 66,000 64,303 (1,697)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 40,100$ 213,135 173,035$ 66,000$ 64,303 (1,697)$ Fund Balances - Beginning of
Year (Deficits) 80,901 353,014
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 80,901 353,014 Fund Balances - End of Year (Deficits) 294,036$ 417,317$ Golf
Course
CASP
Program
153
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, 2022
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 - 10,715 10,715 - - - Uses of Money and Property - (8,332) (8,332) - (7,349) (7,349) Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 2,383 2,383 - (7,349) (7,349)
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - 7,306 (7,306) - 48 (48) Capital Outlay - - - - - - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 7,306 (7,306) - 48 (48) Excess (Deficiency) of
Revenues Over (Under) Expenditures - (4,923) (4,923) - (7,397) (7,397)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ (4,923) (4,923)$ -$ (7,397) (7,397)$ Fund Balances - Beginning of
Year (Deficits) 278,256 248,535
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 278,256 248,535 Fund Balances - End of Year (Deficits) 273,333$ 241,138$ Oak Tree Preservation Conservation
154
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, 2022
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 - (6,973) (6,973) - - - Charges for Current Services - - - - - - Miscellaneous 9,000 67,217 58,217 - - - Total Revenues 9,000 60,244 51,244 - - -
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - 748 (748) - - - Public Works - - - - - - Community Services - - - - - - Capital Outlay 6,551 2,551 4,000 - - - Debt Service:
Principal Repayment - - - 104,200 102,400 1,800 Interest and Fiscal Charges - - - 25,088 24,752 336 Total Expenditures 6,551 3,299 3,252 129,288 127,152 2,136 Excess (Deficiency) of
Revenues Over (Under) Expenditures 2,449 56,945 54,496 (129,288) (127,152) 2,136
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - - Transfers In - - - 127,500 127,488 (12) Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - 127,500 127,488 (12) Net Changes in Fund Balances 2,449$ 56,945 54,496$ (1,788)$ 336 2,124$ Fund Balances - Beginning of
Year (Deficits) 67,153 (2,224)
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 67,153 (2,224) Fund Balances - End of Year (Deficits) 124,098$ (1,888)$ Police Unclaimed Funds
155
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, 2022
2015
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 - 23 23 - (33) (33) Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 23 23 - (33) (33)
EXPENDITURES
Current:
General Government - 1,208 (1,208) - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - 2 (2) Capital Outlay - - - 100 - 100 Debt Service:
Principal Repayment 824,198 824,198 - - - - Interest and Fiscal Charges 331,556 328,179 3,377 - - - Total Expenditures 1,155,754 1,153,585 2,169 100 2 98 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,155,754) (1,153,562) 2,192 (100) (35) 65
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In 1,156,400 1,156,955 555 - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) 1,156,400 1,156,955 555 - - - Net Changes in Fund Balances 646$ 3,393 2,747$ (100)$ (35) 65$ Fund Balances - Beginning of
Year (Deficits) (20,195) 1,134
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated (20,195) 1,134 Fund Balances - End of Year (Deficits) (16,802)$ 1,099$ Softball Facility Development
156
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants 7,651,100 6,069,060 (1,582,040) - - - License and Permits - - - - - - Fees and Fines - - - 2,295,600 2,708,970 413,370 Uses of Money and Property 29,600 154,349 124,749 24,900 (223,985) (248,885) Charges for Current Services - - - - - - Miscellaneous - 48 48 - - - Total Revenues 7,680,700 6,223,457 (1,457,243) 2,320,500 2,484,985 164,485
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works 766,800 691,428 75,372 - - - Community Services - - - 30,100 23,125 6,975 Capital Outlay 5,355,004 2,568,491 2,786,513 3,109,696 147,560 2,962,136 Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 6,121,804 3,259,919 2,861,885 3,139,796 170,685 2,969,111 Excess (Deficiency) of
Revenues Over (Under) Expenditures 1,558,896 2,963,538 1,404,642 (819,296) 2,314,300 3,133,596
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 1,558,896$ 2,963,538 1,404,642$ (819,296)$ 2,314,300 3,133,596$ Fund Balances - Beginning of
Year (Deficits) 10,374,688 6,570,234
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 10,374,688 6,570,234 Fund Balances - End of Year (Deficits) 13,338,226$ 8,884,534$ Highway Users Recreational Facilities
157
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, 2022
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 953,000 1,766,433 813,433 647,100 1,079,745 432,645 Uses of Money and Property - (114,428) (114,428) - (16,435) (16,435) Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues 953,000 1,652,005 699,005 647,100 1,063,310 416,210
EXPENDITURES
Current:
General Government - - - - - - Community Development - - - - - - Public Safety:
Fire - - - 2,100 2,923 (823) Police - - - 500 802 (302) Public Works 40,800 33,210 7,590 - - - Community Services - - - - - - Capital Outlay 495,526 493,769 1,757 60,563 60,563 - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 536,326 526,979 9,347 63,163 64,288 (1,125) Excess (Deficiency) of
Revenues Over (Under) Expenditures 416,674 1,125,026 708,352 583,937 999,022 415,085
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - (419,900) (414,541) 5,359 Total Other Financing Sources (Uses) - - - (419,900) (414,541) 5,359 Net Changes in Fund Balances 416,674$ 1,125,026 708,352$ 164,037$ 584,481 420,444$ Fund Balances - Beginning of
Year (Deficits) 3,353,043 287,123
Prior Period Adjustment 4,892 66,637
Fund Balances - Beginning of Year, as Restated 3,357,935 353,760 Fund Balances - End of Year (Deficits) 4,482,961$ 938,241$ Storm Sewer Construction Public Safety Impact Fee
158
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, 2022
Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 34,700 34,434 (266) License and Permits - - - 20,700 11,100 (9,600) Fees and Fines 408,900 1,027,188 618,288 - - - Uses of Money and Property 3,600 (245,157) (248,757) 51,200 (106,187) (157,387) Charges for Current Services - - - - - - Miscellaneous - - - - 8 8 Total Revenues 412,500 782,031 369,531 106,600 (60,645) (167,245)
EXPENDITURES
Current:
General Government 18,300 13,555 4,745 - - - Community Development - - - 11,300 8,478 2,822 Public Safety:
Fire - - - - - - Police - - - - - - Public Works 1,600 2,350 (750) - - - Community Services - - - - - - Capital Outlay - - - 5,632 5,632 - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 19,900 15,905 3,995 16,932 14,110 2,822 Excess (Deficiency) of
Revenues Over (Under) Expenditures 392,600 766,126 373,526 89,668 (74,755) (164,423)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 392,600$ 766,126 373,526$ 89,668$ (74,755) (164,423)$ Fund Balances - Beginning of
Year (Deficits) 7,795,373 3,953,846
Prior Period Adjustment 117,201 6,533
Fund Balances - Beginning of Year, as Restated 7,912,574 3,960,379 Fund Balances - End of Year (Deficits) 8,678,700$ 3,885,624$ Government Facilities Impact Fee Parking District
159
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, 2022
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 - (23,195) (23,195) - (17,080) (17,080) Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - (23,195) (23,195) - (17,080) (17,080)
EXPENDITURES
Current:
General Government - 155 (155) - 114 (114) Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - - - Capital Outlay - - - 28 28 - Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 155 (155) 28 142 (114) Excess (Deficiency) of
Revenues Over (Under) Expenditures - (23,350) (23,350) (28) (17,222) (17,194)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ (23,350) (23,350)$ (28)$ (17,222) (17,194)$ Fund Balances - Beginning of
Year (Deficits) 784,449 577,663
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 784,449 577,663 Fund Balances - End of Year (Deficits) 761,099$ 560,441$ Facility Improvements Sports Complex
160
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, 2022
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 - (7,451) (7,451) - (5,568) (5,568) Charges for Current Services - - - - - - Miscellaneous - - - - 51,727 51,727 Total Revenues - (7,451) (7,451) - 46,159 46,159
EXPENDITURES
Current:
General Government - 49 (49) - - - Community Development - - - - - - Public Safety:
Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - 174,277 (174,277) Capital Outlay - - - - 21,874 (21,874) Debt Service:
Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 49 (49) - 196,151 (196,151) Excess (Deficiency) of
Revenues Over (Under) Expenditures - (7,500) (7,500) - (149,992) (149,992)
OTHER FINANCING SOURCES (USES)
Sale of Land - - - - - -
Transfers In - - - 300,000 422,735 122,735 Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - 300,000 422,735 122,735 Net Changes in Fund Balances -$ (7,500) (7,500)$ 300,000$ 272,743 (27,257)$ Fund Balances - Beginning of
Year (Deficits) 251,974 (41,005)
Prior Period Adjustment - -
Fund Balances - Beginning of Year, as Restated 251,974 (41,005) Fund Balances - End of Year (Deficits) 244,474$ 231,738$ Animal Control Reserve Baseball
161
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, 2022
Final
Budget Actual
Variance
With Final
Budget
REVENUES
Sales Taxes 10,728,500$ 15,381,530$ 4,653,030$ Other Taxes 83,000 77,171 (5,829) Subventions and Grants 13,060,009 7,925,907 (5,134,102) License and Permits 20,700 11,100 (9,600) Fees and Fines 6,368,900 9,568,603 3,199,703 Uses of Money and Property 269,500 (1,904,315) (2,173,815) Charges for Current Services 5,595,900 5,566,794 (29,106) Miscellaneous 221,700 301,809 80,109 Total Revenues 36,348,209 36,928,599 580,390
EXPENDITURES
Current:
General Government 18,300 15,081 3,219 Community Development 32,600 9,985 22,615 Public Safety:
Fire 2,998,100 2,931,268 66,832
Police 4,310,800 4,292,352 18,448
Public Works 1,216,700 1,568,924 (352,224) Community Services 3,396,100 3,285,124 110,976 Capital Outlay 30,753,839 8,651,807 22,102,032 Debt Service:
Principal Repayment 928,398 926,598 1,800 Interest and Fiscal Charges 356,644 352,931 3,713 Total Expenditures 44,011,481 22,034,070 21,977,411 Excess (Deficiency) of
Revenues Over (Under) Expenditures (7,663,272)$ 14,894,529$ 22,557,801$
OTHER FINANCING SOURCES (USES)
Sale of Land - - - Transfers In 1,583,900 1,707,178 123,278 Transfers Out (871,400) (865,924) 5,476 Total Other Financing Sources (Uses) 712,500 841,254 128,754 Net Changes in Fund Balances (6,950,772)$ 15,735,783 22,686,555$ Fund Balances - Beginning of
Year (Deficits) 77,100,109
Prior Period Adjustment 358,631
Fund Balances - Beginning of Year, as Restated 77,458,740 Fund Balances - End of Year (Deficits) 93,194,523$
Total
162
163
INTERNAL SERVICE FUNDS
164
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
165
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 ag ainst 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.
166
CITY OF VISALIA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management
ASSETS
Current Assets
Cash and Investments 406,688$ 8,057,062$ 5,420,106$ 17,671,905$ Restricted Cash and Investments - - - 316,554 Accounts and Interest Receivables 2,050 - - - Supplies 1,206,582 - - - Prepaid Expenses - - - - Capital Assets:
Building 654,910 - - - Improvements Other Than Buildings 211,545 - 7,240 - Machinery, Equipment and Vehicles 443,004 22,759,094 13,457,619 - Construction in Progress 1,512 - - - Accumulated Depreciation (1,136,530) (13,584,362) (8,733,479) - Total Assets 1,789,761 17,231,794 10,151,486 17,988,459
DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 298,721 - 358,960 137,603 Total Deferred Outflows of Resources 298,721 - 358,960 137,603
LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 332,460 74,087 19,725 6,075 Accrued Personnel Costs - - - - Current Portion of Long-Term Liabilities (Note 7):
Compensated Absences - - - - Liability for Self-Insurance Claims - - - 762,236 Total Current Liabilities 332,460 74,087 19,725 768,311 Non-Current Liabilities
Non-current Portion of Long-term Liabilities (Note 7):
Compensated Absences - - - - Liability for Self-Insurance Claims - - - 7,162,970 Net Pension Liability (Note 10) 1,661,722 - 1,996,818 765,458 Total Non-Current Liabilities 1,661,722 - 1,996,818 7,928,428 Total Liabilities 1,994,182 74,087 2,016,543 8,696,739
DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 709,873 - 853,023 326,997 Total Deferred Inflows of Resources 709,873 - 853,023 326,997
NET POSITION
Net Investment in Capital Assets 174,441 9,174,732 4,731,380 - Restricted - 89,218 56,401 - Unrestricted (790,014) 7,893,757 2,853,099 9,102,326 Total Net Position (615,573)$ 17,157,707$ 7,640,880$ 9,102,326$
167
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION (Continued)
JUNE 30, 2022
CITY OF VISALIA
Health
Benefits
Compensated
Absences
Building
Maintenance Totals
ASSETS
Current Assets
Cash and Investments 3,963,539$ 5,847,772$ 721,664$ 42,088,736$ Restricted Cash and Investments 71,910 - - 388,464 Accounts and Interest Receivables 9,268 - - 11,318 Supplies - - - 1,206,582 Prepaid Expenses 908,824 - - 908,824 Capital Assets:
Building - - - 654,910 Improvements Other Than Buildings - - - 218,785 Machinery, Equipment and Vehicles - - - 36,659,717 Construction in Progress - - - 1,512 Accumulated Depreciation - - - (23,454,371) Total Assets 4,953,541 5,847,772 721,664 58,684,477
DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) - - - 795,284 Total Deferred Outflows of Resources - - - 795,284
LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 52,250 - - 484,597 Accrued Personnel Costs 2,275 - - 2,275 Current Portion of Long-Term Liabilities (Note 7):
Compensated Absences - 1,214,672 - 1,214,672 Liability for Self-Insurance Claims 97,000 - - 859,236 Total Current Liabilities 151,525 1,214,672 - 2,560,780 Non-Current Liabilities
Non-current Portion of Long-term Liabilities (Note 7):
Compensated Absences - 4,806,292 - 4,806,292 Liability for Self-Insurance Claims - - - 7,162,970 Net Pension Liability (Note 10) - - - 4,423,998 Total Non-Current Liabilities - 4,806,292 - 16,393,260 Total Liabilities 151,525 6,020,964 - 18,954,040
DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) - - - 1,889,893 Total Deferred Inflows of Resources - - - 1,889,893
NET POSITION
Net Investment in Capital Assets - - - 14,080,553 Restricted - - - 145,619 Unrestricted 4,802,016 (173,192) 721,664 24,409,656 Total Net Position 4,802,016$ (173,192)$ 721,664$ 38,635,828$
168
FOR THE YEAR ENDED JUNE 30, 2022
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 6,528,084$ 1,342,023$ 2,665,565$ 6,001,877$
OPERATING EXPENSES
Salaries, Wages and Employee Benefits 3,455,624 - 3,840,024 1,490,331 Maintenance and Operations 4,776,002 68,155 812,162 127,683 Insurance Premiums and Loss Provisions - - - 4,635,381 Depreciation 16,849 1,342,024 543,686 - Total Operating Expenses 8,248,475 1,410,179 5,195,872 6,253,395 Operating Income (Loss) (1,720,391) (68,156) (2,530,307) (251,518)
NONOPERATING REVENUES (EXPENSES)
Interest Income - (230,339) (137,299) (344,759) Other Income 27,949 - 879,073 632,485 Other (Expenses) - (37,039) (357) - Total Nonoperating Revenues (Expenses) 27,949 (267,378) 741,417 287,726 Income (Loss) Before Contributions and Transfers (1,692,442) (335,534) (1,788,890) 36,208
CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - 892,482 1,380,007 - Transfers In - - - 5,000,000 Net Contributions and Transfers - 892,482 1,380,007 5,000,000 CHANGE IN NET POSITION (1,692,442) 556,948 (408,883) 5,036,208
NET POSITION
Net Position - Beginning of Year 1,076,869 16,600,759 8,049,763 4,066,118 Net Position - End of Year (615,573)$ 17,157,707$ 7,640,880$ 9,102,326$
169
CITY OF VISALIA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Health
Benefits
Compensated
Absences
Building
Maintenance Totals
OPERATING REVENUES
Service Charges and Fees 13,717,484$ -$ -$ 30,255,033$
OPERATING EXPENSES
Salaries, Wages and Employee Benefits - - - 8,785,979 Maintenance and Operations 234,346 1,144 145 6,019,637 Insurance Premiums and Loss Provisions 13,134,153 - - 17,769,534 Depreciation - - - 1,902,559 Total Operating Expenses 13,368,499 1,144 145 34,477,709 Operating Income (Loss) 348,985 (1,144) (145) (4,222,676)
NONOPERATING REVENUES (EXPENSES)
Interest Income (117,532) (172,048) (21,994) (1,023,971) Other Income - - - 1,539,507 Other (Expenses) - - - (37,396) Total Nonoperating Revenues (Expenses) (117,532) (172,048) (21,994) 478,140 Income (Loss) Before Contributions and Transfers 231,453 (173,192) (22,139) (3,744,536)
CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - - - 2,272,489 Transfers In - - - 5,000,000 Net Contributions and Transfers - - - 7,272,489 CHANGE IN NET POSITION 231,453 (173,192) (22,139) 3,527,953
NET POSITION
Net Position - Beginning of Year 4,570,563 - 743,803 35,107,875 Net Position - End of Year 4,802,016$ (173,192)$ 721,664$ 38,635,828$
170
Fleet Vehicle Information Risk
Services Replacement Services Management
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds 6,528,040$ 1,342,023$ 2,665,565$ 6,001,877$ Cash Payments to Suppliers for Services (4,800,616) (81,120) (2,175,382) (5,613,596) Cash Payments to Employees for Services (1,382,750) - (1,349,143) (535,479) Other Income 27,949 - 879,073 632,485 Other Payments - (37,039) (357) - Net Cash Provided (Used) by Operating Activities 372,623 1,223,864 19,756 485,287
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers In - - - 5,000,000 Net Cash (Used) by Noncapital
Financing Activities - - - 5,000,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital Payments (1,512) (1,740,954) (42,234) - Contributions - 892,482 1,380,007 - Net Cash (Used) by Capital
and Related Financing Activities (1,512) (848,472) 1,337,773 -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - (230,339) (137,299) (344,759) Cash Flows from Investing Activities - (230,339) (137,299) (344,759) Net Increase (Decrease) in Cash and
Cash Investments 371,111 145,053 1,220,230 5,140,528 Cash and Cash Investments at Beginning of Year 35,577 7,912,009 4,199,876 12,847,931 Cash and Cash Investments at End of Year 406,688$ 8,057,062$ 5,420,106$ 17,988,459$ Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) 352,483$ (68,156)$ (39,426)$ 703,334$ Other Income 27,949 - 879,073 632,485 Other Expenses - (37,039) (357) - Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 16,849 1,342,024 543,686 - Net Change in Assets and Liabilities:
Accounts and Interest Receivable (44) - - - Supplies (67,816) - - - Prepaid Expenses - - - - Accounts Payable 43,202 (12,965) (1,363,220) (45,838) Accrued Personnel Costs - - - - Compensated Absences - - - - Liability for Self-Insurance Claims - - - (804,694) Net Cash Provided (Used) by Operating Activities 372,623$ 1,223,864$ 19,756$ 485,287$
CITY OF VISALIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
171
Health Compensated Building
Benefits Absences Maintenance Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers or Other Funds 13,715,539$ 202,356$ -$ 30,455,400$ Cash Payments to Suppliers for Services (13,298,608) (1,144) (145) (25,970,611) Cash Payments to Employees for Services - - - (3,267,372) Other Income - - - 1,539,507 Other Payments - - - (37,396) Net Cash Provided (Used) by Operating Activities 416,931 201,212 (145) 2,719,528
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers In - - - 5,000,000 Net Cash (Used) by Noncapital
Financing Activities - - - 5,000,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital Payments - - - (1,784,700) Contributions - - - 2,272,489 Net Cash (Used) by Capital
and Related Financing Activities - - - 487,789
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (117,532) (172,048) (21,994) (1,023,971) Cash Flows from Investing Activities (117,532) (172,048) (21,994) (1,023,971) Net Increase (Decrease) in Cash and
Cash Investments 299,399 29,164 (22,139) 7,183,346 Cash and Cash Investments at Beginning of Year 3,736,050 5,818,608 743,803 35,293,854 Cash and Cash Investments at End of Year 4,035,449$ 5,847,772$ 721,664$ 42,477,200$ Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating Income (Loss) 348,985$ (1,144)$ (145)$ 1,295,931$ Other Income - - - 1,539,507 Other Expenses - - - (37,396) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation - - - 1,902,559 Net Change in Assets and Liabilities:
Accounts and Interest Receivable (1,945) - - (1,989) Supplies - - - (67,816) Prepaid Expenses 94,472 - - 94,472 Accounts Payable 8,002 - - (1,370,819) Accrued Personnel Costs (30,583) (30,583)
Compensated Absences - 202,356 - 202,356 Liability for Self-Insurance Claims (2,000) - - (806,694) Net Cash Provided (Used) by Operating Activities 416,931$ 201,212$ (145)$ 2,719,528$
CITY OF VISALIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
172
173
CUSTODIAL FUNDS
174
City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2022
175
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 (Village West)
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 (Orchard Walk) The City collects the district assessments on real property in the district to pay for underground utilities.
Atwood Water Main Assessment District (Atwood)
The City collects the district assessment s on real property in the distric t to repay bonds issued for the connection to the Cal Water main extension.
Laura Water Main Assessment District (Laura)
The City collects the district assessment s 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 trave l and tourism specific to Visalia.
176
PBID # 5 Village West Orchard Walk Atwood Laura VTMD Total
Custodial
Funds
ASSETS
Cash and Investments (Note 3) 344,312$ -$ 73,272$ -$ -$ 68,457$ 486,041$ Accounts Receivable - - - 100,204 64,548 - 164,752 District Assesment Receivable 23,992 154 - - - 81,868 106,014 Total Assets 368,304 154 73,272 100,204 64,548 150,325 756,807
LIABILITIES
Accounts, Interest, and Contracts Payable - - - - - 72,826 72,826 Deposits - - - 20,000 21,124 - 41,124 Due to City - 268 - 74,983 38,132 - 113,383 Total Liabilities - 268 - 94,983 59,256 72,826 227,333
NET POSITION (DEFICIT)
Restricted for:
Individuals, Organizations, and Other Governments 368,304$ (114)$ 73,272$ 5,221$ 5,292$ 77,499$ 529,474
CITY OF VISALIA
COMBINING STATEMENTS OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2022
177
PBID # 5 Village West Orchard Walk Atwood Laura VTMD
Total
Custodial
Funds
Additions
Use of Money and Property 171$ 17$ -$ -$ -$ -$ 188$ Revenue from District Assessments 611,783 - - - - 832,281 1,444,064 Miscellaneous Revenue - 5,599 61,366 12,132 7,780 - 86,877 Total Additions 611,954 5,616 61,366 12,132 7,780 832,281 1,531,129 Deductions
Obligation Requirements
Interest on Bonds and Notes Payable - 330 16,366 3,608 2,376 - 22,680 Total Obligation Requirements - 330 16,366 3,608 2,376 - 22,680 Administrative Expenses 531 235 228 110 108 8,358 9,570 Total Administrative Expenses 531 235 228 110 108 8,358 9,570 Distribution of District Assessment 490,000 5,234 45,000 8,523 5,404 759,469 1,313,630 Total Distribution of District Assessment 490,000 5,234 45,000 8,523 5,404 759,469 1,313,630 Total Deductions 490,531 5,799 61,594 12,241 7,888 767,827 1,345,880 Change in Net Position 121,423 (183) (228) (109) (108) 64,454 185,249 Net Position - Beginning of Year 246,881 69 73,500 5,330 5,400 13,045 344,225 Net Position (Deficit) - End of Year 368,304$ (114)$ 73,272$ 5,221$ 5,292$ 77,499$ 529,474$
CITY OF VISALIA
COMBINING STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENEDED JUNE 30, 2022
178
179
Statistical
Section
(Unaudited)
180
City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2022
181
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 con tain 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 significa nt 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.
182
2013 2014 2015 2016
Gove rnm e ntal A ctivitie s:
Net Investment in Capital Assets 259,744$ 271,964$ 284,901$ 288,048$ Restri cted 39,249 45,363 52,401 56,417 Unrestri cted 61,930 60,694 (2,230) 12,676 Total Gove rnm e ntal A ctivitie s N e t Position 360,923$ 378,021$ 335,072$ 357,141$ Business-type A ctivities:
Net Investment in Capital Assets 203,346$ 198,310$ 212,853$ 242,950$ Restri cted 4,890 121,630 71,139 45,202 Unrestri cted 70,743 (27,024) 5,135 24,631 Total Busine ss-type A ctivitie s N e t Position 278,979$ 292,916$ 289,127$ 312,783$ Primary Government:
Net Investment in Capital Assets 463,090$ 470,274$ 497,754$ 530,998$ Restri cted 44,139 166,993 123,540 101,619 Unrestri cted 132,673 33,670 2,905 37,307 Total Primary Government Net Position 639,902$ 670,937$ 624,199$ 669,924$
CITY OF VISALIA
NET POSITION BY COMPONENT
ACCRUAL BASIS OF ACCOUNTING
Fiscal Year
LAST TEN FISCAL YEARS
(In Thousands)
183
2017 2018 2019 2020 2021 2022
312,172$ 325,420$ 324,799$ 335,920$ 341,796$ 344,300$ 56,984 69,608 79,763 94,930 130,726 159,684 17,877 22,633 35,203 38,351 45,014 81,583 387,033$ 417,661$ 439,765$ 469,201$ 517,536$ 585,567$ 266,867$ 271,696$ 269,444$ 270,985$ 277,874$ 276,505$ 16,732 12,785 11,368 20,325 12,887 10,995 63,975 89,290 93,039 104,952 126,266 141,742 347,574$ 373,771$ 373,851$ 396,262$ 417,027$ 429,242$ 579,039$ 597,116$ 594,243$ 606,905$ 619,670$ 620,805$ 73,716 82,393 91,131 115,255 143,613 170,679 81,852 111,923 128,242 143,303 171,280 223,325 734,607$ 791,432$ 813,616$ 865,463$ 934,563$ 1,014,809$ Fiscal Year
184
2013 2014 2015 2016
Expenses:
Gove rnm e ntal A ctivitie s:
General Government 1,396$ 4,070$ 4,299$ 4,262$ Community Development 6,133 5,266 5,985 4,768 Housing & Economic Development 608 - - - Housing & Community Grants - - - - Public Safety
Police 30,407 31,714 30,378 31,182 Fire 13,548 14,308 13,858 15,331 Public Works 15,519 11,906 13,596 24,526 Parks & Recreati on 6,455 9,000 8,999 799 Communi ty Servi ces - - - - Interest on Long-Term Debt 304 191 145 702 Total Governmental Acti vi ti es Expenses 74,370 76,455 77,260 81,570 Business-type A ctivities:
Convention Center 5,404 5,943 5,688 5,822 Airport 2,389 2,505 2,530 2,219 Valle y Oaks Golf 2,350 2,574 2,756 2,502 Wastewater and Storm
Sewer Mai ntenance 13,004 15,281 16,791 19,836 Solid Waste 15,348 18,589 17,969 16,309 Transit 11,929 13,670 14,702 14,772 Baseball 285 295 332 342 Animal Control 1,103 1,184 1,141 1,881 Building Safety 1,570 1,768 1,969 2,306 Total Busi ness-Type Acti vi ti es Expenses 53,382 61,809 63,878 65,989 Total Pri mary Government Expenses 127,752 138,264 141,138 147,559 Program Revenues:
Gove rnm e ntal A ctivitie s:
Charges for Servi ces:
General Government 152 265 1,952 653 Community Development 778 1,503 1,633 2,142 Housing & Economic Development 199 - - - Housing & Community Grants - - - - Public Safety
Police 2,135 2,516 2,690 2,804 Fire 667 626 802 1,256 Public Works 7,643 8,773 9,279 10,011 Parks & Recreati on 1,875 2,974 3,068 3,468 Communi ty Servi ces - - - - Operating Grants and Contributions 3,983 3,184 4,581 3,660 Capital Grants and Contributions 22,621 12,152 8,556 9,625 Total Gove rnm e ntal A ctivitie s
Program Revenues 40,053$ 31,993$ 32,561$ 33,619$ Fiscal Year
CITY OF VISALIA
CHANGES IN NET POSITION
ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS
(In Thousands)
185
2017 2018 2019 2020 2021 2022
3,653$ 5,778$ 4,951$ 7,404$ 6,883$ 2,237$ 3,570 2,028 6,098 2,477 2,741 (3,942) - - - - - - - - - 1,667 2,751 2,182 34,737 38,720 39,996 44,992 44,431 41,081 16,948 16,881 17,371 19,000 19,745 20,380 19,270 19,579 15,155 20,424 12,224 19,717 3,988 4,820 5,540 - - - - - - 12,146 11,271 14,827 561 508 471 450 401 362 82,727 88,314 89,582 108,560 100,447 96,844 5,525 5,517 4,952 4,300 2,360 1,180 1,999 2,017 2,199 2,127 3,119 2,545 2,426 1,571 - - - - 23,845 18,488 21,031 25,263 25,541 28,133 17,422 18,847 24,168 18,963 19,212 21,658 14,726 18,360 20,408 17,837 17,263 19,791 329 354 350 221 243 - 2,490 1,993 1,908 2,003 1,927 1,935 3,103 3,303 3,303 3,490 3,411 3,099 71,865 70,450 78,319 74,204 73,076 78,341 154,592 158,764 167,901 182,764 173,523 175,185 717 794 1,247 896 1,110 1,381 2,122 1,955 1,788 1,283 871 1,206 - - - - - - - - - 23 22 22 2,716 2,636 3,055 3,126 2,953 2,818 1,492 1,875 1,678 1,620 1,654 2,142 10,736 11,344 12,286 10,459 11,303 15,791 3,321 3,509 4,140 - - - - - - 7,778 7,957 10,395 3,118 2,619 2,648 5,083 6,064 6,269 14,635 9,206 12,022 11,765 12,148 10,618 38,857$ 33,938$ 38,864$ 42,033$ 44,082$ 50,642$ Fiscal Year
186
(Continued)
2013 2014 2015 2016
Business-Type A ctivities:
Charges for Servi ces:
Convention Center 3,446$ 4,099$ 3,617$ 3,587$ Airport 1,647 1,734 1,708 1,925 Valle y Oaks Golf 2,389 2,409 2,401 2,405 Wastewater and Storm
Sewer Mai ntenance 21,465 22,365 26,210 26,033 Solid Waste 17,945 19,570 19,222 18,852 Transit 4,051 3,974 4,366 6,004 Baseball 102 8 17 18 Animal Control 104 219 309 430 Building Safety 2,102 2,948 3,274 3,873 Operating Grants and Contributions 6,433 6,588 9,841 4,183 Capital Grants and Contributions 5,370 4,045 2,691 17,291 Total Busine ss-Type A ctivitie s
Program Revenues 65,054 67,959 73,656 84,601 Total Primary Government
Program Revenues 105,107 99,952 106,217 118,220 Net Revenues (Expenses):
Gove rnm e ntal A ctivitie s (34,317) (44,462) (44,699) (47,951) Busine ss-Type A ctivitie s 11,672 6,150 9,778 18,612 Total Net Revenues (Expenses) (22,645) (38,312) (34,921) (29,339) General Revenues and Other Changes in Net Position:
Gove rnm e ntal A ctivitie s:
Taxes:
Sal es Taxes 30,342 28,791 32,237 36,145 Property Taxes 23,886 27,306 27,708 26,810 Other Taxes 6,276 6,921 8,306 7,638 Investment Earnings 993 513 1,894 725 Gain from Sale of Capital Assets - - 5 7 Misce llane ous 2,892 1,317 1,587 2,563 Transfers and Extraordinary Items (3,355) (4,322) (4,265) (4,138) Total Gove rnm e ntal A ctivitie s 61,034 60,526 67,472 69,750 Business-Type A ctivities:
Investment Earnings 457 454 440 576 Misce llane ous 1,764 3,349 2,622 3,439 Transfers 3,355 4,322 4,265 4,138 Total Busine ss-Type A ctivitie s 5,576 8,125 7,327 8,153 Total Primary Government 66,610 68,651 74,799 77,903 Changes in Net Position:
Gove rnm e ntal A ctivitie s 26,717 16,064 22,773 21,799 Busine ss-Type A ctivitie s 17,248 14,275 17,105 26,765 Total Primary Government 43,965$ 30,339$ 39,878$ 48,564$ Fiscal Year
CITY OF VISALIA
CHANGES IN NET POSITION
ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS
(In Thousands)
187
2017 2018 2019 2020 2021 2022
3,483$ 3,657$ 2,967$ 1,882$ 505$ 1,547$ 1,710 1,817 1,701 1,616 1,775 2,313 2,372 1,337 - - - - 26,822 27,060 28,057 27,479 27,744 30,975 19,831 20,216 19,225 19,457 20,564 21,574 4,969 5,055 5,000 5,081 3,623 5,161 51 68 50 4 - - 487 441 573 580 646 636 3,741 3,465 3,959 4,520 4,934 5,771 14,050 16,499 12,987 15,949 15,455 14,030 21,188 12,160 5,093 7,650 12,093 7,045 98,704 91,775 79,612 84,218 87,339 89,052 137,561 125,713 118,476 126,251 131,421 139,694 (43,870) (54,376) (50,718) (66,527) (56,365) (46,202) 26,839 21,325 1,293 10,014 14,263 10,711 (17,031) (33,051) (49,425) (56,513) (42,102) (35,491) 44,574 54,104 58,561 60,351 70,926 82,151 22,429 23,687 25,076 26,297 27,875 29,810 7,800 8,341 8,663 7,987 9,275 10,714 1,074 1,409 4,064 4,614 1,311 (5,351) 3 1 - - - - 1,944 1,504 1,704 1,387 1,056 1,196 (3,869) (4,140) (3,785) (4,489) (4,018) (3,836) 73,955 84,906 94,283 96,147 106,425 114,684 690 872 4,024 4,345 674 (5,026) 3,478 3,431 2,344 2,939 1,810 3,356 3,869 4,140 3,785 4,489 4,018 3,836 8,037 8,443 10,153 11,773 6,502 2,166 81,992 93,349 104,436 107,920 112,927 116,850 30,085 30,530 43,565 29,620 50,060 68,482 34,876 29,768 11,446 21,787 20,765 12,876 64,961$ 60,298$ 55,011$ 51,407$ 70,825$ 81,358$ Fiscal Year
188
2013 2014 2015 2016
General Fund:
Nonspendable 1,168$ 580$ 435$ 357$ Restri cted - - - - Commi tted 12,186 16,330 17,719 28,018 A ssigned 21,665 18,629 19,486 18,781 Unassigned 1,305 1,387 4,043 4,787 Total General Fund 36,324 36,926 41,683 51,943 All Other Governmental Funds:
Nonspendable 7 15 - - Restri cted 44,392 44,817 45,965 50,857 Commi tted - 5,318 7,271 15,903 A ssigned 1,632 1,632 1,632 1,243 Unassigned (6,782) (6,419) (2,471) (11,627) Total All Other Governmental Funds 39,249 45,363 52,397 56,376 Total Governmental Fund Balance 75,573$ 82,289$ 94,080$ 108,319$ Fiscal Year
CITY OF VISALIA
FUND BALANCES OF GOVERNMENTAL FUNDS
MODIFIED ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS
(In Thousands)
189
2017 2018 2019 2020 2021 2022
1,346$ 1,365$ 1,125$ 678$ 3,480$ 1,564$ 1,193 - - - - - 19,805 21,921 15,344 16,239 16,609 17,559 21,857 24,981 25,215 30,278 27,629 27,939 9,612 10,214 9,753 5,497 5,428 6,731 53,813 58,481 51,437 52,692 53,146 53,793 47 815 - - - - 51,465 54,253 68,188 91,088 144,003 210,248 9,582 18,233 31,924 30,259 36,280 14,099 1,243 1,632 1,632 1,168 848 301 (5,393) (6,005) (3,925) (4,475) (31) (989) 56,944 68,928 97,819 118,040 181,100 223,659 110,757$ 127,409$ 149,256$ 170,732$ 234,246$ 277,452$ Fiscal Year
190
2013 2014 2015 2016
Revenues:
Sales Tax 30,342$ 28,791$ 32,237$ 36,144$ Property Tax 23,886 27,306 26,711 26,880 Other Taxes 6,276 6,920 7,662 7,608 Subventions and Grants 26,604 15,336 13,137 13,286 Li censes and Permi ts 109 61 109 87 Fees and Fi nes 6,433 8,751 9,199 10,520 Use of Money and Property 1,087 907 2,334 1,133 Charges for Current Services 5,042 5,589 6,257 7,014 Misce llane ous 4,256 2,253 2,067 2,477 Total Revenues 104,035 95,914 99,713 105,149 Expenditures
Current:
General Government 270 2,477 2,896 3,102 Community Development 5,384 5,209 6,684 5,119 Communi ty Servi ces 5,777 7,956 8,104 3,231 Housing & Economic Development 598 - - - Housing & Community Grants - - - - Public Safety:
Police 29,412 30,228 30,469 31,728 Fire 13,130 13,708 13,598 15,070 Public Works 7,875 3,239 5,563 8,958 Capital Outlay 24,708 22,429 17,378 32,435 Debt Servi ce:
Principal Re tire m e nt 615 649 2,229 1,178 Interest and Fiscal Charges 294 189 138 694 Total Expenditures 88,063 86,084 87,059 101,515 Excess (Defi ci ency) of
Revenues Over (Under)
Expenditures 15,972 9,830 12,654 3,634 Other Financing Sources (Uses):
Issuance of Long-Term Debt - - - - Proceeds from Long-Term Debt - - - - Redempti on of Long-Term Debt - - - - Sal es of Real Property 96 11 12 655 Proceeds from Sal e of Capi tal - - 5 7 Issuance of Debt - - 1,558 13,121 Bond Premium - - - 785 Transfers In 1,424 970 2,482 2,070 Transfers Out (4,760) (5,300) (7,254) (6,304) Total Other Financing
Sources (Uses) (3,240) (4,319) (3,197) 10,334 Extraordinary Items - - - - Net Change in Fund Balances 12,732$ 5,511$ 9,457$ 13,968$ Debt Servi ce as a Percentage of
Noncapital Expenditures 1 1.3% 1.2% 3.2% 2.4%
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)
191
2017 2018 2019 2020 2021 2022
44,575$ 54,104$ 58,561$ 60,350$ 70,926$ 82,151$ 22,370 23,694 25,048 26,282 27,885 29,726 7,681 8,272 8,619 8,020 9,290 10,868 14,160 10,355 13,505 14,829 17,865 14,689 81 88 95 84 73 57 10,552 10,991 12,267 13,929 14,264 17,382 1,522 1,843 4,470 4,841 1,479 (4,977) 7,859 8,367 8,692 8,374 8,117 10,530 2,578 2,260 2,999 2,208 1,754 2,780 111,378 119,974 134,256 138,917 151,653 163,206 3,335 3,913 3,049 3,944 4,610 3,600 5,245 5,272 6,052 2,114 2,552 3,135 3,531 3,510 3,988 10,501 9,736 11,825 - - - - - - - - - 753 2,269 947 33,378 35,382 38,446 41,638 42,420 44,792 15,855 16,160 17,115 17,360 18,678 20,542 8,874 9,053 8,966 5,400 5,305 5,881 34,136 24,248 27,031 29,900 19,298 21,389 1,321 1,364 1,136 895 882 1,041 548 507 465 437 397 362 106,223 99,409 106,248 112,942 106,147 113,514 5,155 20,565 28,008 25,975 45,506 49,692 - - - - - - - - - - - - - - - - - - 1,465 113 517 - 1,028 1,386 3 1 1 16 3 47 - - - - - - - - - - - - 8,373 3,272 9,509 8,482 13,700 15,959 (12,365) (7,398) (13,125) (12,813) (17,697) (24,795) (2,524) (4,012) (3,098) (4,315) (2,966) (7,403) - - - - - - 2,631$ 16,553$ 24,910$ 21,660$ 42,540$ 42,289$
2.3% 2.3% 2.0% 1.5% 1.5% 1.4%
Fiscal Year
192
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 maximu m 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 repre sents 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
2013 2014 2015 2016
City Direct Rate:
City Basic Rate 0.1152$ 0.1152$ 0.1150$ 0.1150$ Total City Direct Rate 0.1152 0.1152 0.1150 0.1150 Overlapping Rates:
Visalia Unifie d School District 0.3068 0.3068 0.3068 0.3068 Col l ege of The Sequoi as 0.0537 0.0537 0.0537 0.0537 County of Tulare 0.1840 0.1832 0.1832 0.1834 Tulare County Schools 0.0248 0.0248 0.0248 0.0248 Tulare County Flood Control District 0.0022 0.0022 0.0022 0.0022 A ir Pollution Control District 0.0004 0.0004 0.0004 0.0004 Library Fund 0.0156 0.0156 0.0158 0.0158 Me m orial District 0.0016 0.0016 0.0016 0.0016 Cemetery Di stri ct 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 0.2420 0.2429 0.2430 0.2430 Visalia Unifie d School District Bonds 0.0300 0.0300 0.0300 0.0226 Kaweah Delta Hospital Bonds 0.0253 0.0282 0.0209 0.0237 Kaweah Del ta Water Assessment 0.0001 0.0004 0.0005 0.0004 Land and Improvements - - - - Total Direct Rate 1 1.0554$ 1.0588$ 1.0517$ 1.0472$ Fiscal Year
CITY OF VISALIA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(Rate per $100 of Assessed Value)
193
2017 2018 2019 2020 2021 2022
0.1150$ 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
0.1836 0.1825 0.1825 0.1818 0.1820 0.1820
0.0248 0.0248 0.0248 0.0248 0.0248 0.0248
0.0022 0.0021 0.0021 0.0021 0.0021 0.0021
0.0004 0.0004 0.0004 0.0004 0.0004 0.0004
0.0158 0.0157 0.0157 0.0156 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 0.0141 0.0141 0.0141 0.0141 0.0140
0.0096 0.0096 0.0096 0.0096 0.0096 0.0096
0.0289 0.0289 0.0289 0.0289 0.0289 0.0289
0.2426 0.2438 0.2438 0.2447 0.2445 0.2447
0.0270 0.0183 0.0225 0.0225 0.0425 0.0350
0.0206 0.0198 0.0181 0.0181 0.0169 0.0180
0.0003 0.0004 0.0004 0.0003 0.0004 0.0004 - - - - - -
1.0482$ 1.0386$ 1.0411$ 1.0411$ 1.0600$ 1.0537$
194
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 onl y 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 A ssessed Di rect Tax
June 30 Secured Unsecured Val ue Rate 1
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% 2022 11,869,633 646,790 12,516,423 0.115%
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
CITY OF VISALIA
City
(In Thousands)
195
Percent Of Percent Of
Total City Total City
Taxable Taxable Taxable Taxable
A ssessed A ssessed A ssessed A ssessed
Taxpayer Val ue Val ue Rank Val ue Val ue Rank
California Dairie s Inc. 171,886$ 1.37% 1 - - - UPS Oasis Supply Corp. 74,275 0.59% 2 - - - Valcal Company 60,545 0.48% 3 - - - Cal dwel l Mooney Partners 58,947 0.47% 4 - - - J Best LP 58,766 0.47% 5 - - - Perfecti on Pet Foods LLC 54,731 0.44% 6 - - - California Wate r Se rvice 52,829 0.42% 7 - - - N orthwe st Visalia Se nior Housing 51,126 0.41% 8 - - - Visalia Mall L P 48,660 0.39% 9 - - - Graphic Packing INT 44,121 0.35% 10 - - - California Dairie s Inc. - - - 145,998 1.90% 1 Imperial Bondware Corp. - - - 65,808.00 0.85% 2 Visalia Mall L P - - - 41,080 0.53% 3 Cottonwood Fresno Holdings LLC - - - 35,000.00 0.45% 4 VF Outdoor - - - 33,792 0.44% 5 Cal i f Water Servi ce Co - - - 33,631 0.44% 6 Bl am-Jade LP - - - 30,269 0.39% 7 J Beast LP - - - 29,815 0.39% 8 Bank of Ameri ca NT&SA - - - 27,273 0.35% 9 Donald Schriber Realty Group LP - - - 24,291 0.32% 10 Total Ten Largest Tax Payers 675,886$ 5.40% 466,957$ 6.06% Al l Other Tax Payers 11,840,537$ 94.60% 7,233,976$ 93.94% Total Assessed Valuation - All Tax Payers 12,516,423$ 100.00% 7,700,933$ 100.00% The amounts shown above include assessed value data for both the City and the Successor Agency.
Source: Tulare County Auditor-Controller
2022
CITY OF VISALIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
(In Thousands)
2013
196
Source: Tulare County Auditor-Controller
Fiscal Taxes Levi ed
Year Ended for the Percent
June 30 Fiscal Year Amount of Levy
2013 16,106$ 16,106$ 100.00%
2014 17,167 17,167 100.00%
2015 18,755 18,755 100.00%
2016 19,764 19,764 100.00%
2017 20,337 20,337 100.00%
2018 21,211 21,211 100.00%
2019 22,495 22,495 100.00%
2020 23,649 23,649 100.00%
2021 25,137 25,137 100.00%
2022 26,544 25,185 94.88%
Fi scal Year of Levy
CITY OF VISALIA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(In Thousands)
Collected within the
197
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. Effectiv e 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 effectiv e 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 effectiv e April 1, 2007. The sales tax measure has a sunset period of 30 years. The revenue is earmarked for trans portation 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), effectiv e 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.
198
Source:
(1) California Department of Finance
(2) Avenue Insights & Analytics (MuniServices)
Note: 2021 is latest available year.
2017 (2) 2018 (2) 2019 (2) 2020 (2) 2021 (2)
Retai l Stores
Apparel Stores 138,637$ 144,806$ 145,638$ 107,987$ 185,096$ General Merchandi se Stores 400,820 406,490 405,765 387,705 471,973 Food Stores 120,900 124,058 124,210 138,239 131,034 Eating and Drinking Places 277,409 288,003 296,010 249,567 348,749 Home Furnishings and Appliances 86,839 91,966 92,407 91,551 119,453 Bldg. Material and Farm Implements 222,315 312,640 242,041 286,433 309,307 Auto Dealers and Auto Supplies 401,536 377,145 375,482 370,099 479,184 Servi ce Stati ons 163,999 155,709 171,821 132,712 186,585 Other Retai l Stores 203,637 215,347 214,145 218,646 346,084 Retail Stores Totals 2,016,092 2,116,164 2,067,519 1,982,939 2,577,465 All Other Outlets 794,330 854,888 1,029,450 1,081,731 1,251,414 Totals A ll Outle ts 2,810,422$ 2,971,052$ 3,096,969$ 3,064,670$ 3,828,879$
CITY OF VISALIA
TAXABLE SALES TRANSACTIONS BY TYPE
2012-2021 CALENDAR YEARS
(Dollars in Thousands)
2012 (1) 2013 (1) 2014 (2) 2015 (2) 2016 (2)
Retai l Stores
Apparel Stores 106,654$ 117,386$ 123,465$ 128,885$ 138,129$ General Merchandi se Stores 360,708 372,736 382,040 392,404 398,900 Food Stores 101,802 100,028 109,234 108,996 123,005 Eating and Drinking Places 201,736 212,084 227,906 247,406 263,310 Home Furnishings and Appliances 62,602 61,870 65,265 83,136 91,778 Bldg. Material and Farm Implements 166,037 177,376 180,519 203,921 213,421 Auto Dealers and Auto Supplies 218,065 308,334 320,499 370,884 411,684 Servi ce Stati ons 259,272 212,292 210,790 155,270 141,307 Other Retai l Stores 170,604 234,171 266,053 208,015 212,872 Retail Stores Totals 1,647,480 1,796,276 1,885,770 1,898,917 1,994,406 All Other Outlets 581,045 648,627 642,282 742,120 775,194 Totals A ll Outle ts 2,228,525$ 2,444,903$ 2,528,051$ 2,641,037$ 2,769,600$
199
Source: Avenue Insights & Analytics (MuniServices)
Note: 2021 is latest available year.
Amazon MWI Veterinary Supply
ARCO AM/PM Mini Marts Nissan of Visalia
Best Buy Stores Ross Stores
Bluescope Buildings Save Mart Supermarkets
Butler Animal Health Supply Target Stores
Chevron Service Stations Tri-Animal Health Services
COSTCO Wholesale Visalia Buick GMC
Giant Chevrolet Company Visalia Ford
HILTI Visalia Kia
Home Depot Visalia Toyota
J.C. Lansdowne VWR International
Lampe Chrysler Dodge Jeep Ram Wal Mart Stores
Lowe's Home Improvement
Best Buy Stores Nissan of Visalia
Bluescope Buildings Ross Stores
Butler Animal Health Supply Save Mart Supermarkets
COSTCO Wholesale Target Stores
Don Rose Oil Company Tri-Animal Health Services
HILTI Union 76 Service Stations
Home Depot Valero Service Stations
J C Penney Company Valley Pacific Petroleum
Josten's Visalia Honda
Lampe Chrysler Dodge Jeep Ram Visalia Toyota
Lowe's Home Improvement VWR International
Macy's Wal Mart Stores
MWI Veterinary Supply
CITY OF VISALIA
TOP 25 SALES TAX CONTRIBUTORS
(in alphabetical order)
2021 CALENDAR YEAR and NINE YEARS AGO
2012 CALENDAR YEAR
2021 CALENDAR YEAR
200
NOTES:
1US Department of Commerce Bureau of Economic Analysis
Personal Income Data from the Bureau of Economic Analysis is only available through 2020 .
Fiscal Year Certi fi cates Total
Ended of Notes Lease Governmental
June 30 Participation Payable L iabilitie s A ctivitie s 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 2022 8,501 - 723 9,224 Gove rnm e ntal A ctivitie s
CITY OF VISALIA
LAST TEN FISCAL YEARS
RATIOS OF OUTSTANDING DEBT BY TYPE
(In Thousands, except Debt per Capita)
201
Total Total Percentage Debt
Certi fi cates of Business-type Primary of Personal Per Participation Notes A ctivitie s 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 0.52% 816 9,810 89,266 99,076 108,504 N/A 783 8,476 86,775 95,251 104,475 N/A 750 Busine ss-type A ctivitie s
202
Outstanding General Bonded Debt
Fiscal Year Certi fi cates Percent of Debt
Ended of Lease A ssessed Per
June 30 Participation L iabilitie s Total Val ue 1 Capita 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 2022 8,501 723 9,224 0.07% 65 1Assessed value has been used because the actual value of taxable prope rty is not re adily available in the State of California.
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds.
CITY OF VISALIA
RATIO OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(In Thousands, except Debt per Capita)
203
NOTE:
1Percentage of overlapping agency's assessed valuation located within boundaries of the City
Source: Avenu Muni Services
2021-22 City Assessed Valuation 12,516,423$
Successor Agency Incremental Valuation 1,058,877
Total A ssessed Valuation 13,575,300$
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/22 Debt
Overlapping Tax and Assessment Debt:
Colle ge of the Se quoias Tulare School Facilitie s Im prove m e nt District 0.464% 56,957$ 264$ Colle ge of the Se quoias Visalia School Facilitie s Im prove m e nt District 68.096% 24,687 16,811 Visalia Unifie d School District 86.591% 89,340 77,361 Tulare Joint Union High School District 0.603% 15,195 92 L ibe rty School District 16.461% 405 67 Kawe ah De lta Hospital District 85.347% 39,025 33,307 City of Visalia 1915 Act Bonds 100.000% 313 313 Total Overlapping Tax and Assessment Debt 225,922 128,214 Direct and Overlapping General Fund Debt:
Tulare County Ce rtificate s of Participation 33.431% 44,496 14,875 Tulare County Pension Obligation Bonds 33.431% 212,080 70,900 Tulare County Board of Education Certificates of Participation 33.431% 35,600 11,901 Visalia Unifie d School District Ce rtificate s of Participation 86.411% 32,740 28,292 L ibe rty School District Ce rtificate s of Participation 16.461% 2,155 355 City of Visalia General Fund Obligations 100.000% 9,224 9,224 Total Direct and Overlapping General Fund Debt 336,295 135,547 Overlapping Tax Increment Debt (Successor Agency) 100.000% 1,090 1,090 Total Direct Debt 9,224 9,224
Total Overlapping Debt 342,003 184,727 Combined Total Debt 351,227$ 193,951$
CITY OF VISALIA
DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022
(In Thousands)
204
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 pa rcel 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
2013 2014 2015 2016 2017
A ssessed valuation 7,700,933$ 8,079,201$ 8,628,953$ 9,110,634$ 9,580,740$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,925,233 2,019,800 2,157,238 2,277,659 2,395,185 Debt l i mi t percentage 15% 15% 15% 15% 15%
De bt lim it 288,785 302,970 323,586 341,649 359,278 Total ne t de bt applicable to lim it:
General obligation bonds - - - - - Legal debt margi n 288,785$ 302,970$ 323,586$ 341,649$ 359,278$ Total de bt applicable to the lim it
as a percentage of debt l i mi t 0.0% 0.0% 0.0% 0.0% 0.0% Fiscal Year
205
2018 2019 2020 2021 2022
10,001,046$ 10,601,276$ 11,145,062$ 11,789,750$ 12,516,423$ 25% 25% 25% 25% 25%
2,500,262 2,650,319 2,786,266 2,947,438 3,129,106 15% 15% 15% 15% 15%
375,039 397,548 417,940 442,116 469,366 - - - - - 375,039$ 397,548$ 417,940$ 442,116$ 469,366$
0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
206
Fiscal Year Less: Net Debt
Ended Operating Operating A vailable Servi ce
June 30 Revenue Expenses Revenue Principal Interest Coverage 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 2,340 2,025 2.98 2020 27,479 16,163 11,316 2,389 1,976 2.59 2021 27,862 15,734 12,128 2,438 1,926 2.78 2022 30,975 19,525 11,450 2,491 1,875 2.62 Debt Servi ce
Cl eanwater State Revol vi ng Fund Loan
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(In Thousands)
Wastewater & Storm Sewer Mai ntenance Fund
Note:
State Revolving Fund loan has pledged enterprise revenue agreement.
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.
207
Per
A ssessed Capita Personal Per Capi ta Unemployment
Calendar Population Val ue A ssessed Income Personal Rate Year (1) (in thousands) (2) Val ue (in thousands) (3) Income (3) (4) 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 130,231 9,110,634 69,957 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 21,722,554 46,348 17.1% 2021 141,279 11,789,750 83,450 NA NA 11.1% 2022 142,091 12,516,423 88,087 NA NA 7.4%
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 2020.
208
Percent of Percent of
Number of Total Number of Total
Empl oyer Empl oyees Rank Empl oyment Empl oyees Rank Empl oyment Kaweah Delta Healthcare (1) 4,550 1 2.37% 2,000 3 1.09% County of Tulare (1) 4,311 2 2.25% 4,814 1 2.62% Visalia Unifie d School District (2) 2,988 3 1.56% 2,500 2 1.36% Visalia Mall (cum ulative ) (1) 1,200 4 0.63% NA NA VF Outdoor Inc (1) 1,012 5 0.53% 400 8 0.22% Walmart (incl. Neigborhood Market) (1) 840 6 0.44% NA NA Graphic Packaging (Intl. Paper Co.) (1) 757 7 0.39% 300 9 0.16% Col l ege of the Sequoi as (1) 705 8 0.37% 745 4 0.41% City of Visalia (3) 659 9 0.34% 558 7 0.30% UPS (1) 600 10 0.31% NA NA
Jostens NA NA 720 5 0.39%
CIGNA Health Care NA NA 700 6 0.38%
California Pre tze l Co. Inc. NA NA 225 10 0.12% Number of Employed (4) 191,800 183,400
CITY OF VISALIA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2022 2013
Source: (1) City of Visalia Econom ic De ve lopm e nt Division (De ce m be r 2020) (2) Visalia Unifie d School District
(3) City of Visalia Budge t
(4) State of Cal i forni a Empl oyment Devel opment Department
209
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 A dm inistration 46 44 46 46 47 64 64 64 18 18 A dm inistrative Se rvice s 31 NA NA NA NA NA NA NA NA NA Community Development 55 61 64 65 65 79 79 77 35 35 Finance NA 16 16 20 20 27 27 27 52 52 Fire 81 81 82 82 81 81 85 85 86 86 General Servi ces NA NA NA NA NA NA NA NA 46 46
Housing & Economic Development NA NA NA NA NA NA NA NA NA NA Housing & Community Grants NA NA NA NA NA NA NA 2 NA NA Communi ty Servi ces 32 32 34 12 12 13 13 13 39 39 Police 198 206 208 208 208 223 230 234 237 239 Public Works 115 118 121 139 141 143 144 144 144 144 Transportati on & General Servi ces NA 18 18 27 29 NA NA NA NA NA Total 558 576 589 599 603 630 642 646 657 659 (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
210
2013 2014 2015 2016
Police :
Cal l s for servi ce - Cal endar Year* 126,767 129,828 134,287 144,856 Fi re:
Cal l s for servi ce - Cal endar Year 12,140 12,482 12,518 14,065 Refuse/Sewer**:
Number of Residential Accounts 35,797 36,144 37,538 37,884 Number of Commerci al Accounts 3,020 3,731 3,747 3,758 Total Refuse/Sewer Accounts 38,817 39,875 41,285 41,642 Business Licenses:
New licenses issued during the year 1,194 1,261 1,098 1,201 Total business licenses 11,533 11,784 11,920 12,145 Building Pe rm its:
Resi denti al 1,602 2,019 2,478 3,152
Commerci al 367 353 381 349 Misce llane ous 1,242 1,474 1,673 1,648
Total Building Pe rm its 3,211 3,846 4,532 5,149 Source : City of Visalia
Note:
* 2021 calendar year information available.
** Refuse/Sewer vari ance for 2019 and 2020 i s due to new system tracki ng of customers.
Fiscal Year
CITY OF VISALIA
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
211
2017 2018 2019 2020 2021 2022
144,489 153,701 158,783 160,465 158,189 158,836
14,283 15,301 15,229 16,180 15,885 16,630 38,014 38,579 41,638 39,494 39,076 40,397 4,043 3,993 3,654 3,254 3,360 3,441 42,057 42,572 45,292 42,748 42,436 43,838 1,375 1,955 1,586 1,409 1,236 1,525 12,098 12,268 12,241 12,315 12,505 12,953 2,793 2,865 3,049 2,753 3,367 4,068 355 381 319 319 270 343 1,745 1,497 1,970 1,962 2,025 2,223 4,893 4,743 5,338 5,034 5,662 6,634 Fiscal Year
212
2013 2014 2015 2016
Police :
Stations 3 3 3 3 Fi re:
Fire stations 5 5 5 6 Public Works:
City A re a in Square Mile s 37 37 37 37 Streets (mi l es) 493 493 512 512 Traffic Signalize d Inte rse ctions 118 118 120 120 Communi ty Servi ces:
Devel oped Ci ty Park Acreage 291 288 281 281 City Owned Open Space Acreage 205 231 282 282 Public L ibrarie s 1 1 1 1 Recreati on Centers 5 5 5 5 Swim m ing Pools 0 0 0 0
Parks 50 50 52 52
Acres of Parks 493 493 290 290 Wastewater:
Sani tary sewers (mi l es) 468 468 468 468 Storm sewers (mi l es) 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
213
2017 2018 2019 2020 2021 2022
3 3 3 3 3 3 6 6 6 6 6 6 38 38 38 38 38 38 516 516 525 528 519 523 123 123 126 127 131 131 269 269 269 269 293 293 289 289 289 289 266 266 1 1 1 1 1 1 5 5 5 5 5 5 0 0 0 0 0 0
54 54 54 54 58 58 286 286 286 286 314 314 507 508 508 508 508 508 276 277 277 277 277 277 1 1 1 1 1 1 Fiscal Year
214
CITY OF VISALIA
INSURANCE IN FORCE
FISCAL YEAR ENDED JUNE 30, 2022
Coverage Underwriter Limits of Coverage Deductibles Policy Number Period of Policy
PRIM ARY 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
$9,000,000; Pool purchase $45,000,000; total
limits $55,000,000 $1,000,000 SIR 07/01/21 to 06/30/22
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 07/01/21 to 06/30/22
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 SP4065356 07/01/21 to 06/30/22 Excess Health & Medical Coverage
CSAC EIA/PRISM
Risk Healthcare Pooling Program None 1/1/22 to 12/31/22
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 002 7/14/21 to 7/14/22
Cyber Insurance Lloyd's of London 5 mil aggregate; 100,000 #ESK0034399071 11/4/21 - 11/4/22 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 MKLM41M0051367 7/1/21 to 7/1/22 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 1/1/21 to 12/31/22
Life Insurance Sun Life
City Manager 2X Annual Salary; Department
Head Group $75,000; All Other Employees
$30,000 234707 1/1/21 to 12/31/22
Dental
Preferred
Benefits/Delta
Dental
$1,000 maximum annual benefit paid per
insured (retirees and their dependents are not
eligible for dental) 8244 1/1/22 to 12/31/22
Vision Vision Service Plan Annual benefits with VSP provider ID #00849301 1/1/22 to 12/31/24 215
Compliance
Section
216
217
218
219
220
221
222
223
224
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.