ACFR Final FY22-23 — Visalia City Council, February 5, 2024 (part 1 of 2)

State of California

City of Visalia

Annual Comprehensive Financial Report

Fiscal Year Ended June 30, 2023

CITY OF VISALIA

STATE OF CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

For the Year Ended June 30, 2023

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, 2023

Table of Contents

TABLE OF CONTENTS
Page

INTRODUCTORY SECTION:

Letter of Transmittal .......................................................................................................................................... i Organizational Chart .......................................................................................................................................... xi GFOA Certificate of Achievement ...................................................................................................................... xii

FINANCIAL SECTION:

Independent Auditors’ 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 Balance ................................................ 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 ........................................................................................................ 51 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......................................................... 52 Notes to Basic Financial Statements ............................................................................................................. 53

Required Supplementary Information:

Notes to the Budgetary Comparison Schedule ............................................................................................ 107 Budgetary Comparison Schedule:

General Fund ............................................................................................................................................ 1 08 Measure N ................................................................................................................................................ 110 Housing & Community Grants ................................................................................................................. 1 11 Housing Successor Agency ...................................................................................................................... 1 12 American Rescue Plan .............................................................................................................................. 1 13 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan .............................. 114 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan ........................................... 116 Schedule of Contributions ............................................................................................................................ 118

Supplementary Information:

Budgetary Comparison Schedule:

Transportation ......................................................................................................................................... 1 21 Civic Center .............................................................................................................................................. 1 22

Non-major Governmental Funds:

Combining Balance Sheets ....................................................................................................................... 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance s ................................ 136 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual… . 144

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 202 3

Table of Contents

FINANCIAL SECTION: (Continued) .................................................................................................................... Page

Non-Major Proprietary Funds:

Combining Statement of Net Position ..................................................................................................... 164 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................. 165 Combining Statement of Cash Flows ....................................................................................................... 166

Internal Service Funds:

Combining Statement of Net Position ..................................................................................................... 170 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................. 172 Combining Statement of Cash Flows ....................................................................................................... 174

Custodial Funds:

Combining Statements of Fiduciary Net Position – Custodial Funds ....................................................... 180 Combining Statements of Changes in Fiduciary Net Position – Custodial Funds ..................................... 181

STATISTICAL SECTION:

Net Position by Component – Last Ten Fiscal Years ..................................................................................... 186 Changes in Net Position – Last Ten Fiscal Years ............................................................................................ 188 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................... 192 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................. 194 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................. 196 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years............................ 198 Principal Property Tax Payers – Current Year and Nine Years Ago ............................................................... 199 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................................... 200 Historical Sales and Use Tax Rates ................................................................................................................ 201 Taxable Sales Transactions By Type – Last ten Calendar Years .................................................................... 202 Top 25 Sales Tax Contributors – 2022 Calendar Year and Nine Years Ago ................................................... 203 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ......................................................................... 204 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................. 206 Direct and Overlapping Debt ........................................................................................................................ 207 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................ 208 Pledged Revenue Coverage – Last Ten Fiscal Years ...................................................................................... 210 Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................................... 211 Principal Employers – Current Year and Nine Years Ago .............................................................................. 212 Full-Time City Employees by Function – Last Ten Fiscal Years ...................................................................... 213 Operating Indicators by Function – Last Ten Fiscal Years ............................................................................. 214 Capital Asset Statistics by Function – Last Ten Fiscal Years .......................................................................... 216 Insurance in Force ......................................................................................................................................... 218

COMPLIANCE SECTION:

Measure T:

Independent Accountants’ Report:

Report on Applying Agreed-Upon Procedures ......................................................................................... 221 Measure N:

Independent Accountants’ Report:

Report on Applying Agreed-Upon Procedures ......................................................................................... 225 Bond Disclosure Requirements ........................................................................................................................ 229

Introductory
Section

December 15, 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 22 through June 30, 20 23. 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.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatement. This ACFR has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America as promulgated by the Government Accounting Standards Board (GASB).

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 22-2023 are fairly stated in accordance with accounting principles generally accepted in the United States of America (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.

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.

City of Visalia City Manager’s Office

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal

• The Financial Section includes the financial statements, notes, and supplemental information. It has management’s discussion and analysis (MD&A) which immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the Bas ic 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 and in 2 016, passed a sales tax ballot measure for essential City services. An annual compliance audit , performed by M. Green and Company LLP, is 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 143,031 as of May 20 23, making it the 4 1st largest city in California (Department of Finance, State of California). Visalia was recently named one of Kiplinger’s “11 Great Places to Live in California” due to availability of affordable homes, agriculture, and a vibrant entertainment scene.

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 ordinance s, 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 Economic Development, Wastewater Treatment and Collection, Storm Water Collection, Ground Water

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

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Letter of Transmittal
Recharge, Solid Waste, Streets, Parks, Traffic Safety, Transit, Airport, Recreation, Convention Center, Senior Center, 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 20 22-23 saw growth in all major revenue categories for Visalia, except for one , although at lower levels than what we have experienced over the last couple of years. Consumers continued to spend their disposable income on goods and services they wanted despite continued high inflation , however spending is down, and credit card debt is rising possibly affecting future revenue growth. At June 2023, the California consumer price index stood at 3.1% and employment in the country remained strong as the national unemployment rate was at 3.6%, below the natural unemployment rate of 4% that the Federal Open Market Committee wants to see . However, the California unemployment rate has steadily increased over the last fiscal year as it has ri sen to 4.6% from the June 2022 rate of 3.9% indicating a possible slowdown in the economy.

Fiscal year 2022-23 ended the year with an overall increase of $3.7 million in the total economic-sensitive revenue category for the General Fund as shown in Table 1 – Economic Sensitive Revenues. Majority of this increase is from Property Tax which had a $2.0 million increase over the prior year.

Table 1 - Economic Sensitive Revenues
(as shown in the Financial Statements)

Sales Tax grew at a much slower pace than we have seen over the past two years, ending fiscal year 2022- 23 with a total sales tax growth of 2%. Contributing to the growth was a continued high inflation rate.

Although we saw the California consumer price index come down to 3.1% as of June 2023, the average rate for the fiscal year stood at an estimated 5.52%. The main areas of the growth in Sales Tax for Visalia Description FY 21/22 FY 22/23
Increase Over Prior
Year % Increase
Sales Tax 47,052,657$ 47,866,077$ 813,420$ 2% Property Tax 29,725,873 31,768,558 2,042,685 7% Transient Occupancy Tax 4,589,178 4,533,774 (55,404) -1% Franchise Fees 3,155,645 3,706,843 551,198 17% Business License 3,045,708 3,440,074 394,366 13% Total 87,569,061$ 91,315,326$ 3,746,265$ 4%

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal
were in General Retail (department stores, apparel stores) which grew $ .5 million and Food Products (restaurants, food markets, liquor stores) which grew $.3 million. Property Tax continued its growth trend increasing 7% as existing house sales, new development, and property values increased in Visalia. Travel to the area saw a slight downturn in fiscal year 2022-23 as Transient Occupancy Tax (TOT) revenue had a decrease of 1% as compared to last year possibly due to less disposable income available to consumers .

Franchise Fee revenue increased 17% in fiscal year 2022-23 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 increased 13% when compared to last year as new businesses have been added and the continued growth in sales as indicated by our growth in sales tax.

Visalia has 13,126 licensed businesses operating in the City, a net increase of 173 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 dec reased 0.5% (based on number of all permits issued) in fiscal year 2022-23. The total valuation for all permits issued was $456 million, a 25% decrease from the prior year as the City added 1.9 million square feet of new commercial property and 3.1 million square feet of space overall. Issued single-family dwelling permits for fiscal year 20 22-23, had a decrease of 48% when compared to the prior year as shown in Table 2 – New Single-Family Dwelling Permits Comparison. The construction value for 340 new single-family dwelling permits came in at $99 million, which was down 43% 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 22/23Fiscal Year Single-Family Dwelling Permits

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal
Overall, 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 have new additions industrially, commercially, and in other developments throughout the community in fiscal year 2022-23.

Industrial Park
Caprock Partners was issued a permit in June 2023 for another 1.13 million square foot building, Central Point III. Central Point III will also consist of 3 additional industrial facilities. No tenants have been formally announced.

Visalia Ceramic Tile will be expanding, adding 18,335 square feet of new warehouse space at the corner of Grove Avenue and Patriot Street.

Sorma USA will be adding 19,460 square feet of new facility space at their existing property to house new equipment to control their supply chain for their packaging materials.

Serpa Packaging Solutions is expanding, adding additional room for more office space at their existing manufacturing facility at 7020 West Sunnyview Avenue. The additional space will accommodate more research and development, engineering, sales, and admin istration support. Serpa Packaging Solutions builds automated packaging systems for companies worldwide.

Edeniq, a biotechnology company, will be adding a second facility on Nevada Street. Edeniq develops processes for producing and measuring cellulosic ethanol from corn kernel fiber through its patented Intellulose technology.

The Ace Hardware Distribution Center formally opened this year. The 1,100,000 square foot building distributes to over 300 Ace Hardware stores across the Western United States.

Business Research Park
The Business Research Park is in northwest Visalia adjacent to the Industrial Park and continues to see growth as well.

Carmax plans to build in the Visalia Auto Plaza located northwest of Highway 198 and Plaza Drive.

The Fahrney Auto Group is bringing its used car sales concept, My Car Park, to the area.

The Hilton Garden Inn Visalia is now open at 8715 West Hillsdale Avenue. This hotel consists of 112 rooms.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal
Mooney Boulevard
Sequoia Mall is currently undergoing complete refurbishment. Sprouts, Nordstrom Rack, and Barnes & Noble are all part of the first phase of the redevelopment and will all open by December 2023.

Oaks Marketplace shopping center is a new development at the southeast corner of Visalia Parkway and Mooney Boulevard. The main anchor is an Aldi grocery store which is currently under construction.

The new development at the southwest corner of Visalia Parkway and Mooney Boulevard had Dutch Bros. and Panda Express join Texas Roadhouse as open for business. Additionally, Les Schwab Tires is currently under construction.

Downtown
The Mix development located at 213-217 West Main Street continues to progress. The Mix is a two-story mixed-use redevelopment that will feature local favorites such as Quesadilla Gorilla, Scoops Ice Cream, and Bombshell Beans.

Microbreweries continue to come to downtown. Long Shot Brewery is moving to East Main Street, Salty Walrus is looking at a location on Valley Oaks Drive, and Simply Brewing continues to work on their new location on East Main Street.

Mulligans Indoor Golf Club will be locating in the former Enchanted Playhouse Building on Main Street.

The indoor golf simulator entertainment center will also feature a restaurant and bar.

Apricot Lane Boutique is being proposed for the former Midtown Sports location at 117 East Main Street.

Apricot Lane is a boutique where the styles and inventory are hand picked by the local ownership. This would be the only location between Stanislaus County and the Los Angeles area.

The City’s first fully inclusive park is progressing along. The park will be a space specially designed to promote play among children of differing abilities, ages, and communities. The park will be located near the new Civic Center area and local children’s museum, Imagine U.

North Visalia
Tractor Supply Company has opened its new facility at Orchard Walk West located at Dinuba Boulevard and Riggin Avenue. Tractor Supply Company supplies products for home improvement, agriculture, lawn and garden maintenance, livestock, equine and pet care.

Burger King has opened a new restaurant at 2012 West Riggin Avenue.

ONGOING CAPITAL PROJECTS
The City’s Capital Improvement Program has a number of significant projects currently underway that will continue into fiscal year 2024 and beyond.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

vii

Letter of Transmittal
Caldwell Improvements - Akers to Shady Street
• The $9 million project is widening 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 is widening 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 is replacing 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 is constructing a new Fire Station (Station 56) north of the current temporary station located at Lovers Lane and Walnut Avenue. The current station utilized is leased from CAL FIRE through an agreement that will not be renewed by CAL FIRE.

Eastside Park-Basin G
• This $6.5 million project is constructing a new eastside regional park basin that will include a groundwater recharge basin and a pedestrian trail.

FINANCIAL CONDITION
Fiscal year 202 2-23 had continued growth in the main General Fund revenue categories of Sales Tax, Property Tax, and Other Taxes, which consists of Franchise Fee and Business License revenue.

Contributing to the growth in revenues was the increase in inflation over the last year. The inflation rate in California was at 3.1% on June 30, 2023 and was high for most of the fiscal year averaging 5.52%. With careful management, the City was able to continue to provide service enhancements , infrastructure improvements, and increases in employee compensation. As shown in Table 3 – General Fund Statement of Revenues & Expenditures, the General Fund ended the year with a change in fund balance and surplus of $15.85 million. Contributing to the surplus was not only the growth in the main General Fund revenue categories, but also in uses of money and property (interest income) which was up $1.7 million as compared to last year as not only were interest rates up this fiscal year but there was a significant negative adjustment to the fair market value on investments held by the City last fiscal year which had decreased interest income. Additionally, fees and fines (vehicle, parking, and local ordinance violations) were up by $0.1 million. H owever, the City did have a decrease in charges for services (engineering fees) of $1.4 million as development activity was down for the year and miscellaneous revenue by $0. 8 million.

Offsetting the large revenue growth this fiscal year, total expenditures were up $6.6 million compared to last year mainly due to increases in employee compensation of 8%. These increases also affect pension obligations. Additionally, we had increases in most all other costs due to inflation and in capital outlay of $2.3 million as general fund projects, such as the East Regional Park Basin and Lower Kaweah/Mill Creek project, continued.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

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Letter of Transmittal
Table 3 – General Fund Statement of Revenues & Expenditures (in millions)

This is the tenth 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), and the economy for a possible downturn (recession) as consumers will have less disposable income due to continued high inflation rates and rising credit card debt. In addition, we should continue to seek new opportunities to increase tax base revenues to help 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; · 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 General
Fund
Emergency
Reserve Total
FY 22/23 FY 22/23 FY 22/23
Revenues 100.24$ 0.18$ 100.42$
Expenditures 78.60 - 78.60
Over/(Under) Expenditures 21.64$ 0.18$ 21.82$ Other Financing Sources (Uses) (5.79)$ -$ (5.79)$ Net Change in Fund Balance 15.85$ 0.18$ 16.03$ Surplus before Transfers to Emergency Reserve, Vehicle
Replacement Fund and Civic Center Fund 15.85$ 0.18$ 16.03$ Transfer surplus to Emergency Reserve Fund* (1.44)$ 1.44$ -$ Transfer surplus to Vehicle Replacement Fund** (4.50) - (4.50) Transfer surplus to Civic Center Fund* (9.91) - (9.91) Total -$ 1.62$ 1.62$
*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. **Note - Per the November 6, 2023 Council Meeting, Council approved a cash transfer of $4.50 million to fund the Vehicle Replacement Fund.

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal
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 22-23. For this fiscal year, a transfer from the General Fund’s surplus of $1,436,583 was needed to continue to meet Council’s 25% Emergency Reserve Policy.

This is the seventh year in a row that this policy has been met.

MEASURE N
Fiscal year 20 22-23 was the six th 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 $19.5 million; $0.2 million more than budgeted for the year. As of June 30, 202 3, Measure N had enabled the City to fund 25 police officers, 2 community service officers, 1 media and communications manager, 1 assistant communications operator, 2 police technician s, 3 police records specialist s, 1 Battalion Chief, 1 Fire Captain, 1 EMS c oordinator, 6 paramedics, 1 urban forest employee, 2 park maintenance employees, 1

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 19.0 19.0
-

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 22/23 Policy Level
(25%)
Emergency Reserves
(In Millions)

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Letter of Transmittal
recreation coordinator, and 8 recreation hourly employees. Major purchases and projects funded in this fiscal year include the purchase of 2 Dodge Chargers, $1.5 million in road rehabilitation , $0.4 million in building improvements, and is currently constructing Station 56 and the Downtown Street Light project.

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, 2022. 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 at tention 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

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

Organizational Chart

As of June 30, 2023

City Council
Mayor - Brian Poochigian
Vice Mayor - Brett Taylor
Council Member - Steve Nelson
Council Member - Emmanuel
Hernandez Soto
Council Member - Liz Wynn
Jason Salazar
Chief of Police
Dan Griswold
Fire Chief
Kelli Kincaid
Community Services
Director
Paul Bernal
Community Development
Director
Renee Nagel
Finance and Technology
Services Director
Nick Bartsch
Public Works Director
Vacant
Admin Services Director
Ken Richardson
City Attorney
Leslie Caviglia
City Manager
Nick Mascia
Assistant City Manager

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

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GFOA Certificate of Achievement

Financial
Section

1 2

3 4

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

5 Management Discussion and Analysis

CITY OF VISALIA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
FISCAL YEAR ENDING JUNE 30, 2023

The Governmental Accounting Standards Board (GASB) Statement No. 34 Government -wide statements present a combined picture of the City of Visalia (the City) on a full accrual basis of accounting, where all debt and assets are included in the presentation. Conversely, the Fund level statements present a picture that is based on a modified accrual basis of accounting, where long-term assets and debt are excluded. Thus, Government -wide and Fund level presentations produce different results based on the type of accounting basis used. Please read this document in conjunction with the accompanying Transmittal Letter and the Basic Financial Statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

1. Government–wide financial statements

2. Fund financial statements

3. Notes to the financial statements

This Annual Comprehensive Financial Report also contains Supplemental Information which includes combining statements for Non -major Governmental, Non -major Proprietary, 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 listing the revenues and expenses of each of the City’s major activities. The full accrual basis of accounting is also used, thereby all changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in a future fiscal period.

All of the City’s activities are grouped into either Governmental Activities (those functions that are principally supported by taxes or by specific governmental program revenues such as developer fees) or into Business -type Activities (whose services are supported by charges paid by direct users of the service such as Solid Waste collection). All of the amounts in both 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, 2023

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 128-159). 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 the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

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

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

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

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

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

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 . N egative fund balances in other governmental funds are reported as Unassigned Fund Balance.

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

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

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

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

Proprietary funds provide the same type of information as shown in the government -wide financial statements only in more detail. Proprietary funds are prepared on the full accrual basis of accounting and include all of their assets and liabilities, current and long-term.

· Enterprise Funds are used to report the same functions presented as business -type activities in the government-wide financial statements. The City uses enterprise funds to account for the 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 and services only to City programs and activities. The internal service funds are combined into a single, aggregated total presented in the Fund Level proprietary fund financial statements. Subordinate Internal Service fund schedules that provide individual fund financial data in the form of combining statements are also contained in this report. Internal service's revenues are eliminated in the City -wide financial statements and any related profits or losses are returned to the activities which created them. Because these services predominantly benefit governmental rather than business -type functions, the residual net position of these funds has been included within governmental activities in the government -wide financial statements. The City uses internal service funds to account for Fleet Services, Vehicle Replacement, Information Services, Risk Management, Health Benefits, Compensated Absences and Building Maintenance.

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

The City’s fiduciary activities are reported in the Statement of Fiduciary Net Position included in the Basic Financial Statements. For the City of Visalia, s even fiduciary funds are maintained: the Property and Business 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, 2023

8 Management Discussion and Analysis
Underground Utilities District, the Atwood Water Main Assessment District, the Laura Water Main 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 43,031 an increase of 0 .7% this past fiscal year. The California Department of Finance restated the prior year figure from 142,091 to 142,066. The California Consumer Price Index for All Urban Consumers was at 3.1% as of June 30, 2023. The major factors driving the City’s governmental financial results this fiscal year are the following:

· Increased sales tax revenues of $2.5 million, up 3% from last year which includes growth in general sales tax of $0.8 million (2%) in the General Fund, with decreases in Measure N sales tax of $0 .2 million (1.2%) and Measure T sales tax of $ 0.1 million (1.2%). Measure R sales tax revenues had an increase of $2.0 million (36%) as a portion of revenues received in Measure R are based on project reimbursement.

· Increased property taxes of $2.0 million, up 7% from last year.

· Increases in government wide interest earnings of $16.3 million (157%) mainly due to last year having 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. This adjustment affected interest earnings.

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.

F Y 22-23 F Y 21-22*
$ %
Assets 1,366.1$ 1,300.7$ 65.4$ 5%
Deferred Outflows of Resources 57.7 20.6 37.1 180% Liabilities 320.9 254.5 66.4 26%
Deferred Inflows of Resources 13.5 51.8 (38.3) -74% Net Position 1,089.4 1,015.0 74.4 7%
Revenues 277.8 256.5 21.3 8%
Expenses 203.5 175.2 28.3 16%
* As restated due to the implementation of GASB 96.

Table 1
Government-wide City Totals
(in millions)
Increas e (Decreas e)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

9 Management Discussion and Analysis
· The City’s Total Assets increased by $6 5.4 million (5%) during the current fiscal year mainly due to increases in cash and investments of $40. 6 million, accounts receivable of $2.5 million, interest receivable of $1.0 million, taxes receivable of $ 2.0 million, notes and loans receivable of $0.6 million, due from other governmental units of $5.2 million, and capital assets of $13. 6 million. The overall increase in capital assets includes additions, deletions, depreciation, and amortization comprised of increases of $3. 6 million in infrastructure, $0.1 million in land, $20. 1 million in construction in progress and as well as decreases of $2.5 million in buildings, $2.9 million in vehicles and equipment, $0 .1 million in lease and subscription - based information technology assets, and $4.7 million in improvements.

· The City’s Deferred Outflows of Resources in creased by $3 7.1 million ( 180%) mainly due to annual adjustments by CalPERS for GASB 68 recording of deferred pensions.

· The City’s Liabilities increased by $66.4 million (26%) during the current fiscal year. This was mainly due to increases in net pension liability of $74.8 million, advances from grantors and third parties of $1.3 million, and liability for self -insurance claims of $0 .2 million in combination with decreases in scheduled debt service payments of $5.5 million, customer deposits of $1.2 million, unearned revenue of $1.4 million, and liability for payables of $1.9 million.

· The City’s Deferred Inflows of Resources decreased by $38.3 million (74%) due to a decrease in pension related activity of $37.8 million for the annual adjustments by CalPERS 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) was $1.1 billion as of June 30, 2023.

· The City’s Total Revenues, including program and general revenues, were $27 7.8 million for fiscal year 2022-23, an increase of $ 21.3 million (8%) from last year, while total City expenses were $203.5 million, an increase of $28. 3 million (16%) from last year. The revenue increase is due to a combination of increases in tax revenue of $ 7.0 million, investment earnings of $16.3 million, grants and contributions of $4.0 million in combination with decreases in charges for services of $5. 5 million, and miscellaneous revenue of $ 0.5 million. The change in investment earnings was mainly due to last fiscal year having 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 30th. The offset from the adjustment was to investment earnings. This was an unrealized loss, and the adjustment will be recovered at the maturity of those investments held at that time.

· Revenues can be divided between Program Revenues related to work activities and General or Tax Revenues. For the fiscal year 2022-23, Program Revenues were $138. 1 million (revenues derived from specific activities) and General Revenues (e.g., taxes and investment earnings) were $13 9.7 million. These same revenues can be classified as either Governmental activity revenues or Business -type activity revenues. For the fiscal year 2022- 23, Governmental activity revenues and Business -type activity revenues were $181.2 million (65%) and $96.6 million (35%), respectively.

· Expenses for Governmental activities and for B usiness-type activities were $119. 5 million (a 24% increase from last year) and $84.0 million (a 7% increase from last year), respectively.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

10 Management Discussion and Analysis
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 $ 647.6 million. The largest portion of the net position, $ 367.4 million (57%), is Net Investment in Capital Assets (net of debt to acquire those assets). The remaining portions of the City’s net position are: $ 182.8 million (28%) represents resources that are subject to restrictions and the remaining $97.4 million (15%) being unrestricted.

· Cash and Investments of $326.0 million increased $26.2 million from last year mainly due to an increase in tax and grant revenues, and revenues exceeding expenses for the year.

· Capital Assets, Net of Accumulated Depreciation/Amortization totaling $376.3 million are categorized in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization.

· Deferred Outflows of Resources of $46.7 million increased $29.9 million due to the annual adjustments by CalPERS for GASB 68 recording of deferred pensions.

· Long-Term Obligations totaling $135.3 million is comprised of Net Pension Liability, Certificates of Participation, government loans, lease liabilities, subscription -based information technology agreements (SBITA), and compensated absences. There were $0.9 million in long term debt payments made by the City during the year, $0.1 million in lease payments, and $0.7 million in SBITA payments. Compensated Absences increased slightly by $56 thousand. The Net pension liability increased by $74.8 million. See the accompanying Notes to Basic Financial Statements, Note 7 – Long-Term Debt and Note 10 – Employee Benefits for further detail.

F Y 22-23 F Y 21-22*
$ %
Assets
Cash and Investments 326.0$ 299.8$ 26.2$ 9% Current and Other Assets 83.0 73.5 9.5 13% Adv. To Other Funds & Internal Balances 2.8 2.6 0.2 8% Capital Assets, Net of Accum. Deprec./Amortization 376.3 355.1 21.2 6% Total Assets 788.1 731.0 57.1 8% Deferred Outflows of Resources
Pensions 46.7 16.8 29.9 178% Total Deferred Outflows of Resources 46.7 16.8 29.9 178% Liabilities
Other Liabilities 45.5 48.2 (2.7) -6% Long-Term Obligations 135.3 77.1 58.2 75% Total Liabilities 180.8 125.3 55.5 44% Deferred Inflows of Resources
Pensions 4.5 34.7 (30.2) -87% Leases 1.9 2.0 (0.1) -5% Total Deferred Inflows of Resources 6.4 36.7 (30.3) -83% Net Position
Net Investment in Capital Assets 367.4 344.5 22.9 7% Restricted 182.8 159.7 23.1 14% Unrestricted 97.4 81.6 15.8 19% Total Net Position 647.6$ 585.8$ 61.8$ 11% * As restated due to the implementation of GASB 96.

Table 2
Governmental Net Position
(in millions)
Increase (Decrease)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

11 Management Discussion and Analysis
· Deferred Inflows of Resources of $6.4 million had a decrease of $30.3 million as compared to the prior year. Decreases were mainly due to the annual adjustments by CalPERS for GASB 68 recording of pensions of $30.2 million and a decrease in leases of $0.1 million as lease revenue was recognized.

· Net Position –Net Investment in Capital Assets of $ 367.4 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 $ 182.8 million is primarily found in Capital Projects funds which have been restricted for related capital projects.

· Unrestricted Net Position of $ 97.4 million is the remaining part of the assets. Of this amount, $55.4 million is the General Fund’s net position. Of the General Fund’s portion, all but $ 3.1 million is either nonspendable ($ 3.5 million), committed ($ 20.8 million) or assigned ($28.0 million). Additional information on the General Fund’s Fund Balance can be found in the Statistical Section (pages 192-193).

Analysis of Changes in Governmental Net Position

Governmental activities are summarized on Table 3, Changes in Governmental Net Position , showing that during fiscal year 2022-23 the City’s net position increased by $61.8 million.

F Y 22-23 F Y 21-22*
$ %

REVENUES
Program Revenues:

Charges for Services 29.1$ 33.7$ (4.6)$ -14% Operating Grants & Contributions 7.7 6.3 1.4 22% Capital Grants & Contributions 14.9 10.6 4.3 41% General Revenues:

Taxes
Sales 86.0 82.1 3.9 5%
Property 31.8 29.8 2.0 7%
Other 12.0 10.7 1.3 12%
Investment Earnings 3.7 (5.3) 9.0 170% Miscellaneous 1.0 1.2 (0.2) -17% Total Revenues 186.2 169.1 17.1 10%

EXPENSES
General Government 7.0 2.0 5.0 250% Community Development 3.4 (3.9) 7.3 187% Housing & Community Grants 2.9 2.2 0.7 32% Police 49.1 41.1 8.0 19%
Fire 22.7 20.3 2.4 12%
Public Works 19.9 19.7 0.2 1%
Community Services 14.1 14.8 (0.7) -5% Interest on Long-Term Debt 0.4 0.4 - 0% Total Expenses 119.5 96.6 22.9 24%
Increase (Decrease) in Net Position
Before Transfers 66.7 72.5 (5.8) -8% Transfers (4.9) (3.8) 1.1 29% Total Transfers (4.9) (3.8) 1.1 29% Increase (Decrease) in Net Position 61.8 68.7 (6.9) -10% Net Position at Beg. of Year 585.8 517.1 68.7 13% Net Position at End of Year 647.6$ 585.8$ 61.8$ 11% * 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, 2023

12 Management Discussion and Analysis
Total governmental revenues of $18 6.2 million, increased by $1 7.1 million ( 10%) and total governmental expenses of $119.5 million, increased by $22. 9 million (24%) when compared to last year. The most significant revenue changes were increases in sales taxes of $ 3.9 million (5%), property tax of $2.0 million (7%), operating grants & contributions of $1.4 million (22%), capital grants & contributions of $4.3 million ( 41%), other revenue (comprised of transient occupancy, franchise, and business licenses taxes) of $1.3 million, and investment earnings of $9.0 million with decreases occurring in charges fo r services of $4. 6 million (1 4%). Expenditures had increases seen in General Government of $ 5.0 million (250%), Community Development of $7.3 million (187%), Housing & Community Grants of $0.7 million (32%), Police of $8.0 million (19%), Fire of $2. 4 million (12 %), Public Works of $0. 2 million ( 1%), with a decrease seen in Community Services of $0.7 million (5%).

PROGRAM REVENUES

· Charges for Services - These charges decreased $4. 6 million or 14 % as compared to the prior year. Th is was mainly due to decreased impact fee revenue for residential, industrial, and commercial fees as well as decreases in fees charged for development related services as development activity was down for the fiscal year.

· Grants (Operating & Capital) & Contributions - The combined income from operating and capital grants and contributions increased this year, up from last year by $5.7 million, for a total of $22.6 million.

GENERAL REVENUES

· Sales Tax - Sales tax increased $ 3.9 million from last year with increases in the general fund of $0.8 million, Measure R of $ 3.4 million offset with decreases in Measure N of $0.2 million, and Measure T of $0.1 million. A portion of Measure R sales tax revenues received are based on project reimbursement. 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 $86.0 million.

· Property Taxes - Property tax revenues increased $2.0 million (7%) over last year currently totaling $31.8 million.

· Investment Earnings - Investment earnings increased $9.0 million over last year mostly due to last year having a significant negative fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31 in addition to higher earnings rates as compared to the prior year.

EXPENSES

· General Government - There were $7.0 million in expenses, an increase of $ 5.0 million (250%) as compared to last year which was mainly due to decreases in the annual GASB 68 pension adjustments of $3. 7 million last fiscal year. In addition, main increases were seen in salaries and benefits of $0.3 million due to wage increases and services provided of $0.8 million.

· Community Development - There were $3.4 million in expenses, an increase of $7.3 million (187%) as compared to last year mainly due to significant decreases to the annual GASB 68 pension adjustment of $7.5 million last fiscal year as the City made a correction to the way it allocated the GASB 68 pension adjustments. In addition, there were decreases in services provided of $0.1 million and a combination of other expenses of $0.1 million this fiscal year.

· Housing & Community Grants – There were $2.9 million in expenses, a n increase of $0.7 million (32%) compared to last year which was mainly due to increases in program activity.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

13 Management Discussion and Analysis
· Police - There were $49.1 million in expenses, an increase of $8.0 million (19%) as compared to last year which was mainly due to a significant decrease in the annual GASB 68 pension adjustment of $6.1 million last fiscal ye ar as strong investment returns helped reduce the net pension liability. In addition, this fiscal year included increases in salaries and benefits of $2.3 million due to wage increases and an increase in a combination of other expenses of $0.9 million offset with a decrease in allocated expenses from internal service funds of $1.5 million.

· Fire - There were $22. 7 million in expenses, an increase of $2. 4 million (12%) as compared to last year which was mainly due to a significant decrease in the annual GASB 68 pension adjustment of $1.0 million last fiscal year as strong investment returns helped reduce the net pension liability. In addition, this fiscal year included increases in salaries and benefits of $0.9 million due to wage increases, capital related activity of $0.3 million, as well as an increase in a combination of other expenses of $0.1 million.

· Public Works - There were $ 19.9 million in expenses, an increase of $0. 2 million (1%) as compared to last year which was mainly due to due to a significant decrease in the annual GASB 68 pension adjustment of $1.5 million last fiscal year. In addition, this fiscal year included increases in salaries and benefits of $0.5 million due to wage increases , depreciation expense of $0.3 million, and an increase in a combination of other expenses of $ 0.1 million offset by a decrease capital related activity and projects of $2.1 million.

· Community Services - There was $14.1 million in expenses, a decrease of $0.7 million (5%) as compared to last year which was mainly due to a significant increase in the annual GASB 68 pension adjustments of $2.3 million last year. This fiscal year, increases were seen in salaries and benefits of $0.5 million due to wage increases , operating expenses for Landscape and Lighting Districts of $1.2 million, capital related activity and projects of $0.4 million, and an increase in a combination of other expenses of $0.9 million.

· Interest on Long -Term Debt - There was $0.4 million in interest expense for fiscal year 2022 -23.

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

Analysis of Business-Type Net Position

The City’s business-type net position, shown in Table 4, Business -Type Net Position , exceeded liabilities by $441. 8 million. The largest portion of the net position, Net Investment in Capital Assets, is $272.7 million ( 62%).

Resources that are subject to restrictions total $ 16.8 million (4%). The remaining balance of $ 152.3 million (34%) represents unrestricted net position.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

14 Management Discussion and Analysis

· Cash and Investments increased $14.4 million ( 8%), as these funds are accumulating cash for capital projects and scheduled debt payments . Increases included funds in Water Reclamation Facility of $8.1 million, Solid Waste of $3. 1 million, Transit of $1.3 million, Building Safety of $1.2 million, Airport of $0.5 million and Convention Center of $0. 3 million with a decrease in and Storm Sewer Maintenance of $0. 1 million.

· Current and Other Assets totaled $27.8 million for the fiscal year, an increase of $1. 6 million (6%). Due from other governmental units had an overall increase of $3.4 million offset by decreases in accounts receivable of $1.3 million, lease receivables of $0.4 million and loan receivables of $0.1 million.

· Capital Assets totaled $364.1 million for the fiscal year , a decrease of $7.6 million (2%) compared to the prior year. C onstruction in progress had an increase of $ 1.4 million. Machinery, Equipment and Vehicles had additions and retirements which mainly consisted of additions of five new refuse trucks, eight roll -off boxes and one Chevy truck in Solid Waste of $ 1.6 million, offset by r etirements of eight refuse trucks in Solid Waste of $1.9 million. Infrastructure increased by $1.4 million which includes Storm Sewer lines and Sanitary Sewer lines. Accumulate d depreciation and amortization increased by $ 10.1 million as assets were depreciated for the year . See Table 8, Capital Assets, Net of Accumulated Depreciation below for additional detail.

F Y 22-23 F Y 21-22*
$ %
Assets
Cash and Investments 188.8$ 174.4$ 14.4$ 8% Current and Other Assets 27.8 26.2 1.6 6% Internal Balances (2.8) (2.6) (0.2) 8% Capital Assets 364.1 371.7 (7.6) -2% Total Assets 577.9 569.7 8.2 1% Deferred Outflows of Resources
Deferred Pensions 11.0 3.8 7.2 189% Total Deferred Outflows of Resources 11.0 3.8 7.2 189% Liabilities
Other Liabilities 11.3 11.6 (0.3) -3% Long-Term Debt Outstanding 128.7 117.6 11.1 9% Total Liabilities 140.0 129.2 10.8 8% Deferred Inflows of Resources
Deferred Pensions 1.5 9.0 (7.5) -83% Deferred Leases 5.6 6.1 (0.5) -8% Total Deferred Inflows of Resources 7.1 15.1 (8.0) -53% Net Position
Net Investment in Capital Assets 272.7 276.5 (3.8) -1% Restricted 16.8 11.0 5.8 53% Unrestricted 152.3 141.7 10.6 7% Total Net Position 441.8$ 429.2$ 12.6$ 3% * As restated due to the implementation of GASB 96.

Table 4
Business-Type Net Position
(in millions)
Increase (Decrease)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

15 Management Discussion and Analysis
· Deferred Outflows of Resources totaled $ 11.0 million for the fiscal year, a n increase of $ 7.2 million (189%). The increase is due to the GASB 68 annual adjustment.

· Long-Term Debt totaling $128.7 million is composed of Net Pension Liability, Certificates of Participation, Leases, Clean Water State Revolving Fund Loan, and Compensated A bsences. Regularly scheduled payments of $ 3.9 million and adjustments to the Net Pension Liability of $ 15.0 million resulted in a net increase in long-term debt of $11.1 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 $ 7.1 million for the fiscal year , a decrease of $ 8.0 million ( 53%).

The decreases include Deferred Pensions of $ 7.5 million due to the GASB 68 annual adjustment and Deferred Leases of $0.5 million due to lease activity.

· Net Position – Net Investment in Capital Assets totaling $272.7 million represents capital assets less accumulated depreciation and net of any debt used to finance its construction or purchase. This is a $3 .8 million decrease as compared to last year.

· Restricted Net Position of $ 16.8 million is primarily found in Capital Projects funds which have been restricted for related capital projects and debt service reserves.

· Unrestricted Net Position of $ 152.3 million experienced a n increase of $ 10.6 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 $12.6 million during fiscal year 20 22-

23. Total Business -type revenues of $ 91.7 million increased by $ 4.3 million ( 5%) when compared to last year.

Total Business-type expenses totaled $84.0 million, an increase of $5.7 million (7%) as compared to last year.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

16 Management Discussion and Analysis

Revenues

· Charges for Services – These revenues were down collectively by $0. 9 million. D ecreases are due to the timing of the year end true up which will also affect next years revenues. Revenues were down for Water Reclamation facility of $0.9 million (residential and commercial users) and in Solid Waste of $0.1 million (C&D, commercial, single and multifamily fees) . Decreases were also seen in Building Safety of $0. 7 million (overall decrease in construction permits) , Animal Control of $0.1 million (fines related to animal ordinance violations). Revenues were offset by i ncreases includ ing Convention Center of $0.2 million (conference room rental, and food, bar, and concession sales) , and Transit of $ 0.7 million (V-line ticket sales and Sequoia Shuttle National Parks reimbursement).

· Operating and Capital Grants and Contributions – The combined revenue from operating and capital grants & contributions decreased this year by $1.7 million due to decreases in Airport of $1.7 million, and Transit of $ 0.7 million, offset by increases in Storm Sewer Maintenance of $0.2 million , Solid Waste of $0.3 million and Water Reclamation Facility of $0.2 million . These funds received less grants, contributions, and assets from impact fee funds.

F Y 22-23 F Y 21-22
$ %

REVENUES
Program Revenues:

Charges for Services 67.1$ 68.0$ (0.9)$ -1% Operating Grants & Contributions 16.4 14.0 2.4 17% Capital Grants & Contributions 3.0 7.1 (4.1) -58% Investment Earnings 2.2 (5.0) 7.2 -144% Miscellaneous 3.0 3.3 (0.3) -9% Total Revenues 91.7 87.4 4.3 5%

EXPENSES
Water Reclamation Facility 25.9 25.4 0.5 2% Storm Sewer Maintenance 2.5 2.7 (0.2) -7% Solid Waste 20.9 21.7 (0.8) -4% Transit 21.5 19.8 1.7 9%
Convention Center 4.7 1.2 3.5 292% Airport 2.8 2.5 0.3 12% Building Safety 3.7 3.1 0.6 19% Animal Control 2.0 1.9 0.1 5% Total Expenses 84.0 78.3 5.7 7% Increase in Net Position
Before Transfers 7.7 9.0 (1.3) -14% Transfers 4.9 3.8 1.1 29% Increase in Net Position 12.6 12.8 (0.2) -2% Net Position at Beg. Year 429.2 416.4 12.8 3% Net Position at End of Year 441.8$ 429.2$ 12.6$ 3% Table 5
Changes in Business-Type Net Position
(in millions)
Increase (Decrease)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

17 Management Discussion and Analysis
Expenses

· Water Reclamation Facility – There were $ 25.9 million in expenses , an increase of $ 0.5 million (2%) due to increases in maintenance and operations consisting of utility expenses of $ 0.2 million, chemical expenses of $0.4 million, landfill/dump charges of $0.2 million, e quipment supply and maintenance repair of $0.1 million, contracted professional services of $ 0.2 million for farming services , and farming related expenses of $0.1 million. Increases also included salaries and benefits of $0. 3 million due to wage and benefit increases and $0.4 due to annual pension adjustments . Offsetting the increases were decreases in capital related activity of $1.3 million, and interest payment on debt of $0.1 million.

· Storm Sewer Maintenance – There were $2.5 million in expenses , a decrease of $0.2 million (7%) mainly due to decreases in capital related activity of $0. 1 million, and salaries and benefits of $ 0.1 million due to wage increases combined with annual pension adjustments.

· Solid Waste – There were $ 20.9 million in expenses, a decrease of $ 0.8 million ( 4%) mainly due to decreases seen in capital related activity of $0.8 million and salaries and benefits of $ 0.2 million due to wage and benefit increases offset by the annual pension adjustments . Increases were seen in compost and recycling expenses of $0.2 million.

· Transit – There were $21.5 million in expenses, an increase of $1.7 million (9%) mainly due to increases in scheduled bus contrac ted services $1.0 million, CNG fuel of $0.5 million, allocated expenses and services provided of $0. 2 million, utility expenses of $0.1 million , equipment repairs of $0.1 million, salaries and benefits of $0.3 million due to wage and benefit increases combined with the annual pension adjustments and a decrease in depreciation of $0.3 million and capital related activity of $0.2 million.

· Convention Center – There were $ 4.7 million in expenses, a n increase of $ 3.5 million (292%) mainly due to annual pension adjustments of $2. 5 million being more than the previous year. Increases were seen in salaries and benefits of $0. 5 million and contract employees of $0.2 million due to increased staffing levels, and maintenance and operations of $0. 4 million due to the increase in events as compared to the prior year, offset by decreases in depreciation and interest expense of $0.1 million.

· Airport – There were $2.8 million in expenses, a n increase of $0.3 million (12%) mainly due an increase in salaries and benefits of $0. 2 million due to wage and benefit increases combined with annual pension adjustments and depreciation expense of $0.1 million due to the first year of depreciation expense for the new hangers.

· Building Safety – There were $3.7 million in expenses, an increase of $0.6 million (19%) mainly due to an increase to salaries and benefits of $ 0.7 million due to wage and benefit increases combined with annual pension adjustments and decreases in maintenance and operations expenses of $0. 1 million consisting of computer software support of $0.1 million , professional & specialized services for consulting of $0. 1 million offset by services provided of $0.1 million.

· Animal Control – There were $ 2.0 million in expenses , an increase of $0.1 million (5%) mainly due to a decrease in salaries and benefits of $ 0.2 million due to t he annual pension adjustments offset by increases in maintenance and operations expenses of $ 0.3 million consisting of allocated expenses and services provided of $ 116K, capital related activity of $23K, bad debt expense of $41K, utility expenses of $38K, and food, equipment and veterinary expenses of $54K.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

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 $ 29.8 million (9%) during the year with increases in cash , other assets, and intergovernmental balances . Cash and investments increased $ 18.4 million (7%) mainly due to revenues exceeding expenditures and other sources & (uses) by $26.0 million. Other assets in creased $ 7.3 million (10%) as increases were seen i n accounts receivable of $3. 7 million (the majority is Transportation Impact Fee receivable s of $ 2.1), loans receivable of $ 0.7 million, taxes receivable of $ 2.0 million, interest receivable of $1.0 million, offset by a decrease in leases receivable of $0.1 million . Intergovernmental balances increased $4.1 million (195%) as a result of a increases in advances to other funds of $ 2.1 million, due from other funds of $0.2 million, and due from other governmental agencies of $1.8 million.

Liabilities – Liabilities have decreased $0.7 million (2%) due to an increase in advances from other funds of $2.0 million (143%) and a de crease in other liabilities of $2.7 million (7%), consisting of decreases in unearned revenue of $ 2.8 million as revenue has been recognized , accounts payable of $ 0.1 million offset by an increase due to other funds $0.2 million.

Deferred Inflows of Resources – Deferred Inflows of Resources in creased $ 4.5 million (39%) mainly due to increases in impact fees receivable of $ 3.7 million, grants receivable of $1.4 million and decreases in asset forfeiture receivable of $0.5 million and lease receivables of $0.1 million.

F Y 22-23 F Y 21-22
$ %
Asse ts
Cash and Investments 275.7$ 257.3$ 18.4$ 7% Other Assets 78.0 70.7 7.3 10%
Intergovernmental Balances 6.2 2.1 4.1 195% Total Assets 359.9 330.1 29.8 9%
Liabilities
Advances From Other Funds 3.4 1.4 2.0 143% Other Liabilities 37.0 39.7 (2.7) -7% Total Liabilities 40.4 41.1 (0.7) -2% Deferred Inflows of Resources
Unavailable Revenue 14.1 9.5 4.6 48% Leases 1.9 2.0 (0.1) -5%
Total Deferred Inflows of Resources 16.0 11.5 4.5 39% Fund Balances
Nonspendable 3.5 1.6 1.9 119%
Restricted 189.4 163.3 26.1 16%
Committed 78.5 78.7 (0.2) 0%
Assigned 29.7 28.2 1.5 5%
Unassigned 2.4 5.7 (3.3) -58%
Total Fund Balances 303.5$ 277.5$ 26.0$ 9% Table 6
Balance Sheet - Governmental Funds
(in millions)
Increas e (Decreas e)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

19 Management Discussion and Analysis
Fund Balances - By June 30, 20 23, the City’s Governmental Funds had a total fund balance of $ 303.5 million, an increase of $26.0 million (9%) 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 $ 14.6 million from the prior year . S ales tax increased $2.5 million which includes growth in general sales tax of $0.8 million (2%), and Measure R sales tax of $2.0 million (36%) as funding for projects in those funds were received on a reimbursement basis and decreases in Measure N sales tax of $0.2 million (1%) and Measure T sales tax of $0.1 million (1%). Property tax revenue saw an increase of $ 2.0 million (7%) as well as subventions and grants of $ 6.2 million as more funding was obtained for projects . Other increases in revenues included other taxes of $ 0.9 million which include transient o ccupancy tax and franchise fees, miscellaneous of $0.8 million, and uses of money and property of $9.0 million as the prior year had a significant fair market value adjustment to investments held at June 30, 2022 in accordance with GASB 31. Decreases were seen in fees and fines of $ 4.2 million as impact fee revenue was down , charges for current services of $1.1 million and miscellaneous of $0.6 million.

Expenditures increased by $27.2 million mainly due to increases in capital-related projects compared to the prior year of $ 17.9 million. Other increases in expenses were seen in P olice of $2.8 million, Fire of $1. 6 million, Community Services of $ 0.8 million, Public Works of $0. 8 million, Housing & Community Grants of $1. 7 million, General Government of $ 0.9 million and debt service principal payments of $0.7 million due to GASB 96 implementation.

Other Financing Sources & Uses in the governmental funds had a n increase of $3.7 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 $1.6 million. The General Fund had an overall increase in revenues of $ 3.6 million (4%) as compared to last year. The increase s included sales tax of $0.8 million (2%), property taxes of $2.0 million (7%), other taxes of $0.9 million (8%), subventions and grants of $0.2 million (11%), License and Permits $0.1 million (92%), fees and fines of $0.1 million ( 12%), uses of money and property of $1.7 million (255%) . Decreases occurred in charges for current services of $1.4 million (29%) and miscellaneous of $0.8 million.

F Y 22-23 F Y 21-22
$ %
Revenues 177.8$ 163.2$ 14.6$ 9%
Expenditures 140.7 113.5 27.2 24%
Excess (Deficiency) of Revenues
Over (Under) Expenditures 37.1 49.7 (12.6) -25% Other Sources & (Uses) (11.1) (7.4) (3.7) 50% Net Change 26.0$ 42.3$ (16.3)$ -39%
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, 2023

20 Management Discussion and Analysis
If there is a General Fund surplus at year end, the surplus is first to be distributed to fund the Emergency Reserve to meet Council’s goal of 25% of operating expenditures and then any remaining surplus is to be transferred to the Civic Center Fund. This fiscal year , the Council authorized a transfer of $4.5 million from the surplus to the vehicle replacement fund, the remaining surplus was transferred out from the General Fund to the Civic Center Fund totaling $9.9 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 $ 1.0 million compared to the prior year . The increase include s interest earnings of $1.2 million offset by a decrease in sales tax of $ 0.2 million. The Measure N ’s fund balance de creased $0.7 million to $36.6 million as a result of expenditures exceeding revenues for the year due to c apital projects being completed ($12.1 million).

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 $ 16.3 million in notes and loans receivable . The notes and loans receivable are for housing assistance through the various grant programs as well as past rental rehabilitation loans . The Housing & Community Grant’s fund balance increased $1.4 million to $17.4 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. 5 million as a result of expenditures exceed ing revenues for the year.

American Rescue Plan - The American Rescue Plan Fund is used to account for the tracking of American Rescue Plan Act funds received as a result of the COVID pandemic. The funds’ assets include $2 4.9 million in unearned revenue. The American Rescue Plan’s fund balance is $0.8 million.

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 Transportation’s fund balance increased $ 5.0 million to $ 24.5 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 is collected from land sales, one -time monies as incentive revenues and General Fund surplus or other transfers authorized by the City Council. The Civic Center ’s fund balance increased $ 9.5 million due to transfers from the General Fund of $ 9.9 million and interest earnings of $0.5 million offset by capital expenses of $0.9 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 $41.5 million in revenue and have a combined fund balance at year-end of $101.8 million.

ANALYSIS OF MAJOR PROPRIETARY FUNDS

Business-Type Funds

By June 30, 202 3, the City’s Proprietary Funds combined net position totaled $ 444.6 million, an increase of $12.6 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, 2023

21 Management Discussion and Analysis
Enterprise operating revenues, including charges for services and grants and contributions , were $83.5 million this year, an increase of $1.5 million from last year. Grants and contributions had a decrease of $1.7 million mainly due to receiving less grant revenue in Airport due to project completion. The decrease in charges for services of $0.9 million are due to the timing of the year end true up which will also affect next years revenues. Revenues were down for Water Reclamation facility of $0.9 million (residential and commercial users ) and in Solid Waste of $0.1 million (C&D, commercial, single and multifamily fees) . Decreases were also seen in Building Safety of $0. 7 million (overall decrease in construction permits), Animal Control of $0.1 million (fines related to animal ordinance violations). Revenues were o ffset by in creases including Convention Center of $ 0.2 million (room rental s, and food, bar and concession sales) and Transit of $0.7 million (V-line ticket sales and Sequoia Shuttle National Parks reimbursement).

Operating expenses were $81.1 million this year, an increase of $6.6 million from last year mainly due to increases in salaries and benefits of $4.7 million due to wage and benefit increases , annual pension adjustments , and maintenance and operations of $1.9 million.

Water Reclamation Facility - Operating revenues decreased $0.9 million due to the timing of the year end true up which will also affect next years revenues and a decrease in development impact fees collected . Revenues were down in trunk line capacity fees of $0.3 million, front footage fees of $0.1 million, treatment connection fee of $0.1 million, residential fees of $ 0.6 million, and commercial fees of $0.2 million . Revenues were offset by increases in industrial fees of $0.2 million and services provided of $0.2 million. Operating expenses in creased by $ 0.3 million consisting of in creases in salaries and benefits of $0.7 million due to wage and benefit increases , annual pension adjustments, utility expenses of $0.2 million, chemical expenses of $0.4 million, landfill/dump charges of $0.2 million, equipment supply and maintenance repair of $0.1 million, contracted professional services of $0.2 million including expenses for grade V chief plant operator services, and farming related expenses of $0.1 million, offset by a decrease in capital related activity of $1.6 million when compared to the prior year.

Storm Sewer Maintenance - Operating revenues had a slight decrease of $22K due to the timing of the year end true up which will also affect next year’s revenues. Operating expenses decreased by $0. 2 million including decreases in capital related activity of $0. 1 million and salaries and benefits of $ 0.1 million due to wage increases and the annual pension adjustments.

Solid Waste - Operating revenues de creased $0.1 million mainly due to the timing of the year end true up which will also affect next year’s revenues. Revenues were down in single family fee revenue of $0. 3 million, and C&D permits of $0.1 million with increases in multifamily fee revenue of $0.1 million, commercial recycling fee revenue of $0.1 million and commercial fee revenue of $0. 1 million. Operating expenses de creased by $ 0.1 million mainly due to a n increase in depreciation expenses of $0.1 million, with an overall decrease in s alaries and benefits of $0.2 million due to wage and benefit increases offset by the annual pension adjustments.

Transit – Operating revenues in creased $3.0 million from last year . Increases were seen in Sequoia Shuttle National Park reimbursement of $0. 6 million, and V-line ticket sales of $0.1 million . In addition, o perating grant revenue increased $2.3 million due to the increase in transit assistance grant funding which fluctuates from year to year. Operating expenses increased by $ 1.9 million due to increases in maintenance and operations consisting of $1.0 million for scheduled increases for bus contracted services , CNG fuel of $0.5 million, allocated expenses and services provided of $0.2 million, contracted equipment repairs of $0.1 million and utility expenses of $0.1 million .

Increases were also seen in salaries and benefits of $0. 3 due to wage and benefit increases and annual pension adjustments, all offset by a decrease in depreciation expense of $0.3 million.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

22 Management Discussion and Analysis

ANALYSIS OF NON MAJOR PROPRIETARY FUNDS

Convention Center - Operating revenues increased by $ 0.2 million. Increases were mainly seen in conference room rental of $0. 1 million, and food , bar, and concession sales of $0.1 million. O perating expenses in creased by $3.6 million mainly due to the annual pension adjustments of $2.5 million being more than the previous year .

Increases also included salaries and benefits of $0. 5 million and contract employees of $0.2 million due to wage and benefit increases and increased staffing levels, and maintenance and operations of $0. 4 million due to the increase in events as compared to the prior year.

Airport - Operating revenues de creased $31K slightly as a result of a slight decrease in aviation fuel sales.

Operating expenses increased by $0.2 million mainly due to salaries and benefits of $0.1 million due to wage and benefit increases and the annual pension adjustments and depreciation expense of $0.1 million due to the first year of depreciation expense for the new hangers.

Building Safety – Operating revenues decreased by $0.7 million due to an overall decrease in construction permits compared to prior year s activity. Operating expenses in creased by $0.7 million including increases in salaries and benefits of $0. 7 million due to wage and benefit increases and the annual pension adjustments and decreases in maintenance and operations expenses of $0. 1 million consisting of computer software support of $0.1 million , and professional & specialized services for consulting of $0.1 million offset by services provided of $0.1 million.

Animal Control – Operating revenues decreased by $75K mainly due to a decrease in fines related to animal ordinance violations. Operating expenses in creased by $ 0.1 million mainly due to a decrease in salaries and benefits of $ 0.2 million due to the annual pension adjustments with an in crease in maintenance and operations expenses of $0.3 million consisting of allocated expenses and services provided of $ 116K, capital related activity of $23K, bad debt expense of $41K, utility expenses of $38K, and food, equipment, and veterinary expenses of $54K.

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 $2.8 million to a final budgeted amount of $ 81.8 million, mainly due to an increase of $2.6 million in Capital Outlay (Projects).

General Fund - Final Budget and Actual Comparison

Total revenues were $7.4 million higher than the final budgeted amount, as detailed below .

· Sales Tax – was $3.4 million more than budgeted as the economy had growth, inflation had increased and averaged 3.1% for the year making goods and services more expensive, and new business opened within the City.

· Property Tax – was $2.2 million more than budgeted as valuation increased more than anticipated due to increased development and increases in real estate prices.

· Transient Occupancy Tax – was $0.6 million more than budgeted as the budget was conservative.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

23 Management Discussion and Analysis
· Business License – was $ 0.3 million more than budgeted as business license activity was higher than anticipated for the year.

· Subventions and Grants – was $0.1 million less than budgeted mostly due to the City not drawing down awarded grant funding 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 $0.3 million more than budgeted as local ordinance violations and vehicle code and parking violations were more than projected.

· Interest Earned – was $0.1 million more than budgeted as interest earnings were more than anticipated.

· Engineering and Subdivision Services – was $0.1 million less than budgeted as these specialized services for development were lower than anticipated for the year.

· Recreation Programs – was $0.8 million less than budgeted. After school programs of $0.6 million are no longer provided by the City to VUSD. VUSD receives money from the state to provide these services.

There was a combined decrease of $0.2 million in program activity for adult sports, aquatics, and special events.

Total expenditures were $ 3.2 million less than budget. This difference had contributing factors such as vacancies, lower capital outlay offset by wage and salary increases, and one-time wage lump sum payment /bonus to employees.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The City’s capital assets for its Governmental and Business -Type activities as of June 30, 202 3 totaled $ 740.4 million (net of accumulated depreciation and amortization ), as shown in Table 8, Capital Assets, Net of Accumulated Depreciation & Amortization . For Government -wide Financial Statements, capital asset purchases for governmental activities are capitalized and depreciated. In contrast, in the Fund Financial Statements capital asset purchases for governmental activities are recorded as expenditures. Additional information about the City’s capital assets can be found in the Notes to Financial Statements, Note 6 – Capital Assets.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

24 Management Discussion and Analysis

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

Governmental
· Caldwell Improvements Akers to Shady & Santa Fe to Lovers Lane in progress · Santa Fe at Tulare Ave round about completed
· Walnut Ave Rehabilitation completed
· Shirk Widening project in progress
· Riggin Widening project in progress
· Downtown Street lighting & pavement rehabilitation in progress · Purchased 88 Axon In-Car cameras
· Replaced roof at Fire Station 55
· Installed 3 new Arbors at Blain Park
· Purchased 11 new Cardiac Monitors
· Purchased 2 Electronic Traffic Sign Boards
· Purchased 2 new K-9 officers
· Completed repair of Fleet Shop foundation settlement
· Deployed 100+ new monitors throughout City offices

Business-type
· Purchased and added storm drain infrastructure
· Purchased 5 Solid Waste collection vehicles
· Purchased 8 new Roll-Off boxes
F Y 22-23 F Y 21-22*
$ %
G overnmental Activities
Land 41.6$ 41.4$ 0.2$ 0%
Buildings 44.0 45.3 (1.3) -3% Improvements 59.7 59.7 - 0% Equipment 20.0 20.3 (0.3) -1% Infrastructure 163.1 159.0 4.1 3% Construction in Progress 45.7 27.1 18.6 69% Right-to-use assets - lease assets 0.7 0.7 - 0% Right-to-use assets - SBITA 1.5 1.6 (0.1) -6% Total 376.3$ 355.1$ 21.2$ 6%
Business-Type Activities
Land 26.1$ 26.2$ (0.1)$ 0%
Buildings 35.0 36.2 (1.2) -3% Improvements 155.2 159.9 (4.7) -3% Equipment 25.6 28.2 (2.6) -9% Infrastructure 116.4 116.9 (0.5) 0% Construction in Progress 5.8 4.3 1.5 35% Right-to-use assets - SBITA 0.03 0.1 (0.03) -50% Total 364.1$ 371.8$ (7.6)$ -2%
Total City-Wide 740.4$ 726.9$ 13.6$ 2% * As restated due to the implementation of GASB 96.

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, 2023

25 Management Discussion and Analysis
Debt Administration

The City’s total long- term debt decreased by $ 5.5 million (5%) 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 , SBITA 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 22-23 F Y 21-22*
$ %
G overnmental Activities
Certificates of Participation 7.5$ 8.5$ (1.0)$ -12% Lease Liabilities 0.7 0.7 - 0% SBITA Liabilities 0.7 1.4 (0.7) -50% Compensated Absences 6.1 6.0 0.1 2% Total 15.0 16.6 (1.6) -10% Business-Type Activities
Certificates of Participation 4.5 5.4 (0.9) -17% Lease 2.6 3.0 (0.4) -13% Notes - Direct Borrowings 84.2 86.8 (2.6) -3% SBITA Liabilities 0.1 0.1 - 0% Compensated Absences 1.2 1.2 - 0% Total 92.6$ 96.5$ (3.9)$ -4% Total City-Wide 107.6$ 113.1$ (5.5)$ -5% * As restated due to the implementation of GASB 96.

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, 2023

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 financial position. They are prepared on the same basis of accounting as is used by most businesses, which means they include all the City’s assets and all its liabilities, deferred inflows and outflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis of accounting - the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

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

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

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

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

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

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

These financial statements, along with the fund financial statements and footnotes, are called Basic Financial Statements.

30 The accompanying notes are an integral part of these financial statements .

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments (Note 3) 325,156,856$ 183,183,215$ 508,340,071$ Restricted Cash and Investments (Note 3) 857,545 5,631,326 6,488,871 Accounts Receivable 14,619,535 6,261,954 20,881,489 Leases Receivable (Note 15) 1,977,455 5,708,077 7,685,532 Interest Receivable 2,555,190 - 2,555,190 Taxes Receivable 21,005,569 302,318 21,307,887 Notes and Loans Receivable (Note 5) 37,604,624 94,201 37,698,825 Supplies 1,344,598 75,515 1,420,113 Inventory 221,595 40,819 262,414 Internal Balances (Note 4D) 2,767,744 (2,767,744) - Due from Other Governmental Units 2,544,423 15,331,141 17,875,564 Prepaids and Deposits 1,053,206 25,311 1,078,517 Capital Assets, Net of Accumulated Depreciation (Note 6):

Capital Assets Not Being Depreciated or Amortized 87,284,569 31,888,704 119,173,273 Capital Assets Being Depreciated or Amortized 289,063,383 332,217,759 621,281,142 Total Assets 788,056,292 577,992,596 1,366,048,888

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 46,725,542 11,022,455 57,747,997 Total Deferred Outflows of Resources 46,725,542 11,022,455 57,747,997

LIABILITIES
Accounts, Interest, and Contracts Payable 9,207,205 5,364,316 14,571,521 Advances from Grantors and Third Parties - 4,108,355 4,108,355 Customer Deposits 779,266 278,179 1,057,445 Unearned Revenue 27,154,609 1,555,217 28,709,826 Accrued Personnel Costs 56,643 - 56,643 Long-Term Liabilities (Note 7):

Due Within One Year 2,391,560 4,264,441 6,656,001 Due in More Than One Year 12,629,514 88,346,308 100,975,822 Liability for Self-Insurance Claims (Note 11):

Due Within One Year 2,107,818 - 2,107,818 Due in More Than One Year 6,185,114 - 6,185,114 Net Pension Liability Due in More Than One Year (Note10) 120,297,795 36,131,285 156,429,080 Total Liabilities 180,809,524 140,048,101 320,857,625

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 4,493,375 1,491,910 5,985,285 Lease Related (Note 15) 1,914,744 5,636,371 7,551,115 Total Deferred Inflows of Resources 6,408,119 7,128,281 13,536,400

NET POSITION
Net Investment in Capital Assets 367,404,078 272,711,502 640,115,580 Restricted for:

Capital Projects 124,979,888 12,399,897 137,379,785 Debt Service 11,242 4,365,229 4,376,471 Waterways/Groundwater Projects 8,921,379 - 8,921,379 Landscape & Lighting Districts 14,674,142 - 14,674,142 Public Safety 14,592,865 - 14,592,865 Roadway Projects 17,994,392 - 17,994,392 Golf Course Maintence Projects & Miscellaneous 1,656,036 - 1,656,036 Total Restricted Net Position 182,829,944 16,765,126 199,595,070 Unrestricted 97,330,169 152,362,041 249,692,210

Total Net Position 647,564,191$ 441,838,669$ 1,089,402,860$

CITY OF VISALIA

STATEMENT OF NET POSITION
JUNE 30, 2023

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 7,009,361$ 1,153,698$ 1,088,067$ 4,336,690$ (430,906)$ -$ (430,906)$ Community Development 3,387,613 782,273 48,979 58,535 (2,497,826) - (2,497,826) Housing & Community Grants 2,936,094 39,077 5,638,348 - 2,741,331 - 2,741,331 Public Safety
Police 49,058,936 2,982,517 937,858 768,312 (44,370,249) - (44,370,249) Fire 22,699,361 1,960,250 14,649 221,159 (20,503,303) - (20,503,303) Public Works 19,948,447 12,357,300 - 9,447,881 1,856,734 - 1,856,734 Community Services 14,074,322 9,814,580 - 40,964 (4,218,778) - (4,218,778) Interest on Long-Term Debt 370,213 - - (370,213) - (370,213) Total Governmental Activities 119,484,347 29,089,695 7,727,901 14,873,541 (67,793,210) - (67,793,210) B usiness-Type Activities
Convention Center 4,675,026 1,769,800 - - - (2,905,226) (2,905,226) Airport 2,754,706 2,282,280 - 174,470 - (297,956) (297,956) Water Reclamation Facility 25,918,858 28,712,225 - 609,997 - 3,403,364 3,403,364 Storm Sew er Maintenance 2,520,596 1,301,063 - 1,818,012 - 598,479 598,479 Solid Waste 20,938,221 21,504,756 190,914 250,228 - 1,007,677 1,007,677 Transit 21,495,497 5,837,736 16,198,898 111,951 - 653,088 653,088 Animal Control 1,970,220 564,312 4,750 - - (1,401,158) (1,401,158) Building Safety 3,741,523 5,133,425 - - - 1,391,902 1,391,902 Total Business-Type Activities 84,014,647 67,105,597 16,394,562 2,964,658 - 2,450,170 2,450,170 Total 203,498,994$ 96,195,292$ 24,122,463$ 17,838,199$ (67,793,210)$ 2,450,170$ (65,343,040)$ General R evenues
Taxes:

Sales Taxes 85,969,736 - 85,969,736 Property Taxes 31,726,902 - 31,726,902 Transient Occupancy Taxes 4,533,774 - 4,533,774 Franchise Taxes 3,706,843 - 3,706,843 Business License Taxes 3,751,812 - 3,751,812 Investment Earnings 3,710,742 2,184,621 5,895,363 Miscellaneous 1,023,009 3,067,965 4,090,974 Transfers (4,894,358) 4,894,358 -
Total General Revenues and Transfers 129,528,460 10,146,944 139,675,404 Change in Net Position 61,735,250 12,597,114 74,332,364 Net Position - Beginning of Year, As Restated (Note 13) 585,828,941 429,241,555 1,015,070,496 Net Position - End of Year 647,564,191$ 441,838,669$ 1,089,402,860$

CITY OF VISALIA

STATE ME NT OF ACTIVITIE S
FOR THE YEAR ENDED JUNE 30, 2023
Net (Expense) Revenue
Program Revenues and Changes in Net Position

32 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

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 20 22-23.

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

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

MEASURE N – SPECIAL REVENUE FUND
Measure N is used to account for increased public safety services including p olice and f ire, repair and maintenance for s treets and roads, and maintenance of parks and trails. Measure N provides the City with a reliable, ongoing local source of funding which is locally controlled with citizen oversight. Financing is provided by the ½ cent sales tax ballot measure (N) approved by voters during the November 8, 2016 election.

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

HOUSING SUCCESSOR AGENCY – SPECIAL REVENUE 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 – SPECIAL REVENUE 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 – CAPITAL PROJECT 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 – CAPITAL PROJECT FUND
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) 29,727,048$ 33,412,310$ 907,507$ 2,325,281$ Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 2,031,546 34,950 - - Leases Receivable (Note 15) 545,533 - - - Interest Receivable 2,555,190 - - - Taxes Receivable 11,428,090 3,254,297 29,318 - Notes and Loans Receivable (Note 5) 11,968,706 - 16,334,775 8,143,244 Supplies 12,443 - - - Inventory (Note 1K) 136,564 - - - Due from Other Funds (Note 4C) 212,700 - - - Advances to Other Funds (Note 4B) 3,408,693 - - - Due from Other Governmental Units 247,825 - 712,097 - Prepaids and Deposits 18,193 - - - Total Assets 62,292,531$ 36,701,557$ 17,983,697$ 10,468,525$

LIABILITIES
Accounts, Interest and Contracts Payable 1,764,298$ 115,964$ 346,467$ 50$ Due to Other Funds (Note 4C) - - 210,781 - Advances from Other Funds (Note 4B) - - - - Customer Deposits 422,565 - - - Unearned Revenue 1,619,084 - - - Accrued Personnel Costs 38,917 - - - Total Liabilities 3,844,864 115,964 557,248 50

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax 1,054,932 - - - Unavailable Revenue - Business Tax 925,965 - - - Unavailable Revenue - Impact Fees 3,140 - - - Unavailable Revenue - Misc 528,762 - - - Unavailable Revenue - Grants - - - - Leases (Note 15) 521,453 - - - Total Deferred Inflows of Resources 3,034,252 - - - FUND BALANCES (Note 9)
Nonspendable 3,497,641 - - - Restricted - 36,585,593 17,426,449 10,468,475 Committed 20,804,987 - - - Assigned 27,967,899 - - - Unassigned (Deficit) 3,142,888 - - - Total Fund Balances 55,413,415 36,585,593 17,426,449 10,468,475 62,292,531$ 36,701,557$ 17,983,697$ 10,468,525$ Major Funds
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CITY OF VISALIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2023

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) 25,665,124$ 27,025,779$ 56,662,209$ 99,561,243$ 275,286,501$ Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - - 11,242 11,242 Cash Held by City - - - 375,591 375,591 Accounts Receivable - 8,372,601 - 4,148,604 14,587,701 Leases Receivable (Note 15) - - - 1,431,922 1,977,455 Interest Receivable - - - - 2,555,190 Taxes Receivable - - - 6,293,864 21,005,569 Notes and Loans Receivable (Note 5) - 592,606 127,272 438,021 37,604,624 Supplies - - - - 12,443 Inventory (Note 1K) - - - 85,031 221,595 Due from Other Funds (Note 4C) - - - - 212,700 Advances to Other Funds (Note 4B) - - - - 3,408,693 Due from Other Governmental Units - - - 1,584,501 2,544,423 Prepaids and Deposits - - - - 18,193 Total Assets 25,665,124$ 35,990,986$ 56,789,481$ 113,930,019$ 359,821,920$

LIABILITIES
Accounts, Interest and Contracts Payable -$ 5,058,296$ 321,671$ 1,167,715$ 8,774,461$ Due to Other Funds (Note 4C) - - - 1,919 212,700 Advances from Other Funds (Note 4B) - - - 3,408,693 3,408,693 Customer Deposits - - - 356,701 779,266 Unearned Revenue 24,912,277 - - 623,248 27,154,609 Accrued Personnel Costs - - - - 38,917 Total Liabilities 24,912,277 5,058,296 321,671 5,558,276 40,368,646

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Tax - - - - 1,054,932 Unavailable Revenue - Business Tax - - - - 925,965 Unavailable Revenue - Impact Fees - 6,393,492 - 3,826,789 10,223,421 Unavailable Revenue - Misc - - - - 528,762 Unavailable Revenue - Grants - - - 1,352,843 1,352,843 Leases (Note 15) - - - 1,393,291 1,914,744 Total Deferred Inflows of Resources - 6,393,492 - 6,572,923 16,000,667 FUND BALANCES (Note 9)
Nonspendable - - - - 3,497,641 Restricted 752,847 24,539,198 - 99,629,052 189,401,614 Committed - - 56,467,810 1,252,408 78,525,205 Assigned - - - 1,654,399 29,622,298 Unassigned (Deficit) - - - (737,039) 2,405,849 Total Fund Balances 752,847 24,539,198 56,467,810 101,798,820 303,452,607 25,665,124$ 35,990,986$ 56,789,481$ 113,930,019$ 359,821,920$ Major Funds
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CITY OF VISALIA

BALANCE SHEET
GOVERNMENTAL FUNDS (Continued)
JUNE 30, 2023

36 37

The accompanying notes are an integral part of these financial statements.

Total Fund Balances - Governmental Funds 303,452,607$
CAPITAL ASSET TRANSACTIONS:

Capital Assets: In governmental funds, only current assets are reported.

In the statement of net position, all assets are reported, including capital assets, accumulated depreciation and accumulated amortization.

Capital Assets at Cost 523,893,240$
Accumulated Depreciation (164,934,435)
Right-To-Use Assets - Lease Assets at Cost 910,893
Right-To-Use Assets - Subscription-Based Information Technology Arrangements 1,375,007 Accumulated Amortization (574,151) 360,670,554

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. 51,158,124

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 (7,533,279)
Lease Liabilities (678,803)
Subscription-Based Information Technology Arrangements (731,792) (8,943,874)

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. 14,085,923 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 $2,157,393 allocated to the internal service funds 44,568,148 Aggregate net pension liabilities - net of $7,071,872 allocated to the internal service funds (113,225,924) Pension related deferred inflows of resources - net of $292,008 allocated to the internal service funds (4,201,367) (72,859,143) Total Net Position - Governmental Activities 647,564,191$

CITY OF VISALIA

RECONCILIATION OF THE BALANCE SHEET -

GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
JUNE 30, 2023

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, 2023
General
Fund
Measure N -
Special Revenue
Fund
Housing &
Community
Grants - Special
Revenue Fund
Housing
Successor
Agency - Special
Revenue Fund

REVENUES
Sales Taxes 47,866,077$ $ 19,487,895 -$ -$ Property Taxes 31,768,558 - - - Other Taxes 11,680,691 - - - Subventions and Grants 1,767,426 16,092 5,716,466 - License and Permits 89,404 - - - Fees and Fines 1,196,529 - 15,959 - Uses of Money and Property 1,047,507 382,638 41,999 (3,416) Charges for Current Services 3,457,337 8,857 5,000 - Miscellaneous 1,544,107 51,247 10,603 728 Total Revenues 100,417,636 19,946,729 5,790,027 (2,688)

EXPENDITURES
Current:

General Government 4,132,396 271,392 - 114,030 Community Development 3,030,538 - 91,502 - Housing & Community Grants - - 2,636,632 - Public Safety:

Fire 17,475,323 1,559,712 - - Police 37,193,386 5,913,995 - - Public Works 4,841,109 - - - Community Services 7,179,557 830,058 - - Capital Outlay 3,946,113 12,054,479 1,882,971 - Debt Service (Note 7):

Principal 760,872 - - - Interest and Fiscal Charges 35,218 - - - Total Expenditures 78,594,512 20,629,636 4,611,105 114,030 Excess (Deficiency) of
Revenues over (Under) Expenditures 21,823,124 (682,907) 1,178,922 (116,718) Other Financing Sources (Uses)
Sale of Land - - 172,669 - Proceeds From Sale of Capital Assets 975 - - - Issuance of Debt - Leases Acquired 73,497 - - - Transfers In (Note 4A) - - 30,359 - Transfers Out (Note 4A) (20,276,501) - - - Total Other Financing Sources (Uses) (20,202,029) - 203,028 - Net Change in Fund Balances 1,621,095 (682,907) 1,381,950 (116,718) Fund Balances - Beginning of Year 53,792,320 37,268,500 16,044,499 10,585,193 Fund Balances - End of Year 55,413,415$ 36,585,593$ 17,426,449$ 10,468,475$ Major Funds

39 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 (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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 -$ -$ -$ 17,262,921$ 84,616,893$ Property Taxes - - - - 31,768,558 Other Taxes - - - 90,119 11,770,810 Subventions and Grants 3,572,859 - - 9,785,987 20,858,830 License and Permits - - - 7,725 97,129 Fees and Fines - 5,168,798 - 6,724,597 13,105,883 Uses of Money and Property 686,106 265,166 513,411 1,122,838 4,056,249 Charges for Current Services - - - 5,970,377 9,441,571 Miscellaneous 60 14 59 544,759 2,151,577 Total Revenues 4,259,025 5,433,978 513,470 41,509,323 177,867,500

EXPENDITURES
Current:

General Government - - 13,458 14,248 4,545,524 Community Development - - - 9,043 3,131,083 Housing & Community Grants - - - - 2,636,632 Public Safety:

Fire - - - 3,100,469 22,135,504 Police - - - 4,473,132 47,580,513 Public Works - 43,355 - 1,838,835 6,723,299 Community Services - - - 4,635,014 12,644,629 Capital Outlay 3,572,859 347,650 955,179 16,533,653 39,292,904 Debt Service (Note 7):

Principal - - - 968,029 1,728,901 Interest and Fiscal Charges - - - 310,834 346,052 Total Expenditures 3,572,859 391,005 968,637 31,883,257 140,765,041 Excess (Deficiency) of
Revenues over (Under) Expenditures 686,166 5,042,973 (455,167) 9,626,066 37,102,459 Other Financing Sources (Uses)
Sale of Land - - - - 172,669 Proceeds From Sale of Capital Assets - - - - 975 Issuance of Debt - Leases Acquired - - 73,497

Transfers In (Note 4A) - - 9,918,553 1,798,489 11,747,401 Transfers Out (Note 4A) - - - (2,820,258) (23,096,759) Total Other Financing Sources (Uses) - - 9,918,553 (1,021,769) (11,102,217) Net Change in Fund Balances 686,166 5,042,973 9,463,386 8,604,297 26,000,242 Fund Balances - Beginning of Year 66,681 19,496,225 47,004,424 93,194,523 277,452,365 Fund Balances - End of Year 752,847$ 24,539,198$ 56,467,810$ 101,798,820$ 303,452,607$ Major Funds

40 41

The accompanying notes are an integral part of these financial statements .

Total Net Changes in Fund Balances - Governmental Funds 26,000,242$ 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 30,908,978$
Net Retirements of Capital Assets (285,703)
Depreciation and Amortizaiton Expenses (10,845,038) 19,778,237 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 968,029
Principal Payments of Lease Liabilities 117,657
Principal Payments of Subscritpion-Based Information Technology Arrangements 643,215 1,728,901 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: 4,582,977 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: 9,637,103 Pension Related Expenses 7,790
Total Change in Net Position - Governmental Activities 61,735,250$

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, 2023

42 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

43 Major Proprietary Funds

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 funds described below were determined to be Major Funds by the City in fiscal year 2022 -23.

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

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.

Non-Major Proprietary Funds Include the following: (detail found on pages 16 4-166) Convention Center
Airport
Building Safety
Animal Control

44 The accompanying notes are an integral part of these financial statements .

CITY OF VISALIA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2023
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit
ASSETS
Current Assets
Cash and Investments (Note 3) 94,825,811$ 715,809$ 34,906,686$ 37,111,194$ Accounts Receivable 3,622,865 116,824 1,711,542 180,428 Leases Receivable (Note 15) - - - 48,389 Taxes Receivable 118,413 63,963 119,942 - Current Portion of Note and Loans Receivable (Note 5) 38,688 - - - Supplies - - - - Inventory (Note 1K) 20,053 20,766 - - Due from Other Governmental Units - - 16,000 15,315,141 Prepaid Expenses - - - - Total Current Assets 98,625,830 917,362 36,754,170 52,655,152 Non-Current Assets
Restricted Cash and Investments (Note 3)
Cash Held by Trustee - - - - Cash Held by City 4,365,228 - - - Leases Receivable - - - 93,730 Non-current Portion of Note and Loans Receivable (Note 5) 55,513 - - - Capital Assets (Note 6)
Land 6,948,344 9,437,692 1,567,372 4,361,902 Construction in Progress 2,655,728 3,082,239 - 5,790 Buildings 2,937,862 - 197,130 19,589,783 Improvements Other Than Buildings 206,806,075 2,546,130 981,520 2,602,376 Machinery, Equipment and Vehicles 9,791,534 1,136,411 20,892,736 39,710,848 Infrastructure 93,108,483 61,721,228 - - Right-to-use subscription asset (SBITA) - - - - Accumulated Depreciation and Amortization (89,685,509) (16,375,240) (11,322,589) (35,621,198) Total Non-Current Assets 236,983,258 61,548,460 12,316,169 30,743,231 Total Assets 335,609,088 62,465,822 49,070,339 83,398,383

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 2,690,282 383,175 3,882,754 732,772 Total Deferred Outflows of Resources 2,690,282 383,175 3,882,754 732,772

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 2,175,692 17,458 684,310 1,708,564 Advances from Grantors and Third Parties - - 183,590 3,924,765 Accrued Personnel Costs - - - - Customer Deposits 160,904 - - - Current Portion of Long-Term Liabilities (Note 7):

Compensated Absences 96,949 - 25,618 - Certificates of Participation and Loans 2,596,351 - - - Liability for SBITA Lease (Note 7) - - - - Liability for Self-insured Claims (Note 11) - - - - Total Current Liabilities 5,029,896 17,458 893,518 5,633,329 Non-Current Liabilities
Unearned Revenue 1,508,784 20,766 - - Non-current Portion of Long-term Liabilities (Note 7):

Compensated Absences 196,347 27,534 483,132 61,156 Certificates of Participation and Loans 81,635,890 - - - Liability for Self-insured Claims (Note 11) - - - - Net Pension Liability (Note 10) 8,818,666 1,256,035 12,727,555 2,402,003 Total Non-Current Liabilities 92,159,687 1,304,335 13,210,687 2,463,159 Total Liabilities 97,189,583 1,321,793 14,104,205 8,096,488

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 364,135 51,863 525,538 99,182 Lease Realated (Note 15) - - - 139,663 Total Deferred Inflows of Resources 364,135 51,863 525,538 238,845

NET POSITION
Net Investment in Capital Assets 148,330,276 61,548,460 12,316,169 30,649,501 Restricted for:

Debt Service 4,365,228 - - - Capital Projects 2,399,543 35,895 3,850,294 4,676,865 Unrestricted (Deficit) 85,650,605 (109,014) 22,156,887 40,469,456 Total Net Position 240,745,652$ 61,475,341$ 38,323,350$ 75,795,822$ Major Funds
Business-Type Activities - Enterprise Funds

45 The accompanying notes are an integral part of these financial statements .

CITY OF VISALIA

STATE ME NT OF NE T POSITION
PROPRIETARY FUNDS (Continue d)
JUNE 30, 2023
Non-Major Funds
Non-Major Funds
Total Total
Governmental
Activities
Internal
Service Funds
ASSETS
Current Assets
Cash and Investments (Note 3) 15,623,715$ 183,183,215$ 49,870,355$ Accounts Receivable 630,295 6,261,954 31,835 Leases Receivable (Note 15) 394,684 443,073 - Taxes Receivable - 302,318 - Current Portion of Note and Loans Receivable (Note 5) - 38,688 - Supplies 75,515 75,515 1,332,155 Inventory (Note 1K) - 40,819 - Due from Other Governmental Units - 15,331,141 - Prepaid Expenses 25,311 25,311 1,035,013 Total Current Assets 16,749,520 205,702,034 52,269,358 Non-Current Assets
Restricted Cash and Investments (Note 3)
Cash Held by Trustee 1 1 470,712 Cash Held by City 1,266,097 5,631,325 - Leases Receivable 5,171,274 5,265,004 - Non-current Portion of Note and Loans Receivable (Note 5) - 55,513 - Capital Assets (Note 6)
Land 3,829,637 26,144,947 -
Construction in Progress - 5,743,757 1,700,796 Buildings 35,648,426 58,373,201 654,910 Improvements Other Than Buildings 18,946,873 231,882,974 218,785 Machinery, Equipment and Vehicles 3,319,449 74,850,978 37,645,118 Infrastructure - 154,829,711 - Right-to-use subscription asset (SBITA) 64,915 64,915 803,761 Accumulated Depreciation and Amortization (34,779,484) (187,784,020) (25,345,972) Total Non-Current Assets 33,467,188 375,058,306 16,148,110 Total Assets 50,216,708 580,760,340 68,417,468

DEFERRED OUTFLOWS OF RESOURCES
Pension Related (Note 10) 3,333,472 11,022,455 2,157,393 Total Deferred Outflows of Resources 3,333,472 11,022,455 2,157,393

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 778,292 5,364,316 432,743 Advances from Grantors and Third Parties - 4,108,355 - Accrued Personnel Costs - - 17,726 Customer Deposits 117,275 278,179 - Current Portion of Long-Term Liabilities (Note 7):

Compensated Absences 57,678 180,245 1,206,299 Certificates of Participation and Loans 1,422,930 4,019,281 - Liability for SBITA Lease (Note 7) 64,915 64,915 - Liability for Self-insured Claims (Note 11) - - 2,107,818 Total Current Liabilities 2,441,090 14,015,291 3,764,586 Non-Current Liabilities
Unearned Revenue 25,667 1,555,217 - Non-current Portion of Long-term Liabilities (Note 7):

Compensated Absences 267,374 1,035,543 4,870,901 Certificates of Participation and Loans 5,674,875 87,310,765 - Liability for Self-insured Claims (Note 11) - - 6,185,114 Net Pension Liability (Note 10) 10,927,026 36,131,285 7,071,872 Total Non-Current Liabilities 16,894,942 126,032,810 18,127,887 Total Liabilities 19,336,032 140,048,101 21,892,473

DEFERRED INFLOWS OF RESOURCES
Pension Related (Note 10) 451,192 1,491,910 292,008 Lease Realated (Note 15) 5,496,708 5,636,371 - Total Deferred Inflows of Resources 5,947,900 7,128,281 292,008

NET POSITION
Net Investment in Capital Assets 19,867,096 272,711,502 14,873,637 Restricted for:

Debt Service 1 4,365,229 - Capital Projects 1,437,300 12,399,897 1,512,700 Unrestricted (Deficit) 6,961,851 155,129,785 32,004,043 Total Net Position 28,266,248$ 444,606,413 48,390,380$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (2,767,744) Net Position of Business-Type Activities 441,838,669$
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, 2023
Water
Reclamation
Facility
Storm Sewer
Maintenance
Solid
Waste Transit

OPERATING REVENUES
Charges for Services 28,712,225$ 1,301,063$ 21,504,756$ 5,837,736$ Operating Grants and Contributions - - 190,914 16,198,898 Total Operating Revenues 28,712,225 1,301,063 21,695,670 22,036,634

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 4,143,285 632,716 6,580,430 1,115,165 Maintenance and Operations 13,854,832 1,022,037 12,686,430 17,690,190 Insurance Premiums and Loss Provisions - - - - Depreciation and Amortization 5,585,399 830,627 1,589,098 2,645,218 Total Operating Expenses 23,583,516 2,485,380 20,855,958 21,450,573 Operating Income (Loss) 5,128,709 (1,184,317) 839,712 586,061

NONOPERATING REVENUES (EXPENSES)
Interest Income 1,059,662 8,549 416,567 438,160 Interest Expense (1,777,948) - - - Other Income 1,369,777 68,742 526,526 794,139 Other Expenses (533,980) (31,014) (7,824) (34,719) Total Nonoperating Revenues (Expenses) 117,511 46,277 935,269 1,197,580 Income (Loss) Before Contributions and Transfers 5,246,220 (1,138,040) 1,774,981 1,783,641 Capital Grants and Contributions 609,997 1,818,012 250,228 111,951 Transfers In (Note 4A) - 300,000 - - Net Contributions and Transfers 609,997 2,118,012 250,228 111,951 Change in Net Position 5,856,217 979,972 2,025,209 1,895,592 Net Position - Beginning 234,889,435 60,495,369 36,298,141 73,900,230 Prior Period Adjustment (Note 13) - - - - Net Position - Beginning, as restated 234,889,435 60,495,369 36,298,141 73,900,230 Net Position - Ended 240,745,652$ 61,475,341$ 38,323,350$ 75,795,822$ Major Funds
Business-Type Activities - Enterprise Funds

47 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 (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
Non-Major Funds
Non-Major Funds
Total Total
Governmental
Activities
Internal
Service Funds

OPERATING REVENUES
Charges for Services 9,749,817$ 67,105,597$ 31,010,349$ Operating Grants and Contributions 4,750 16,394,562 - Total Operating Revenues 9,754,567 83,500,159 31,010,349

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 6,332,693 18,804,289 3,058,246 Maintenance and Operations 4,980,317 50,233,806 6,805,727 Insurance Premiums and Loss Provisions - - 19,443,211 Depreciation and Amortization 1,366,605 12,016,947 2,303,480 Total Operating Expenses 12,679,615 81,055,042 31,610,664 Operating Income (Loss) (2,925,048) 2,445,117 (600,315)

NONOPERATING REVENUES (EXPENSES)
Interest Income 261,683 2,184,621 396,444 Interest Expense (312,035) (2,089,983) (24,161) Other Income 308,781 3,067,965 1,524,058 Other Expenses (118,009) (725,546) (611) Total Nonoperating Revenues (Expenses) 140,420 2,437,057 1,895,730 Income (Loss) Before Contributions and Transfers (2,784,628) 4,882,174 1,295,415 Capital Grants and Contributions 174,470 2,964,658 1,742,612 Transfers In (Note 4A) 4,594,358 4,894,358 6,455,000 Net Contributions and Transfers 4,768,828 7,859,016 8,197,612 Change in Net Position 1,984,200 12,741,190 9,493,027 Net Position - Beginning 26,282,048 431,865,223 38,635,828 Prior Period Adjustment (Note 13) - - 261,525 Net Position - Beginning, as restated 26,282,048 431,865,223 38,897,353 Net Position - Ended 28,266,248$ 444,606,413 48,390,380$ Adjustments to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (144,076)
Change in Net Position of Business-Type Activities 12,597,114$ Business-Type Activities - Enterprise Funds

48 CITY OF VISALIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

The accompanying notes are an integral part of these financial statements .

Water
Reclamation
Facility
Storm Sew er
Maintenance Solid Waste Transit

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 29,281,000$ 1,345,560$ 22,378,785$ 22,112,827$ Cash Payments to Employees for Services (4,304,996) (674,614) (6,727,538) (1,125,070) Cash Payments to Suppliers for Services (14,108,057) (1,063,779) (12,533,218) (18,436,976) Cash Received from (Payments to) Other Governments (13,060) - 175,418 (3,630,868) Net Cash Provided (Used) by Operating Activities 10,854,887 (392,833) 3,293,447 (1,080,087)

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Grant Income - - 183,590 - Advance (to) from Other Funds 40,079 - - - Other Income 1,369,777 68,742 526,526 794,139 Other Payments (533,980) (31,014) (7,824) (34,719) Transfers In - 300,000 - - Net Cash Provided by Noncapital
Financing Activities 875,876 337,728 702,292 759,420

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets (1,008,953) (1,818,012) (1,553,593) (4,525) Capital Grants Received - - 250,228 1,180,356 Contributions 609,997 1,818,012 - - Interest Expense - - - - Long-Term Debt Payments - Principal (2,542,949) - - - Long-Term Debt Payments - Interest (1,777,948) - - - Net Cash Provided by Capital and Related
Financing Activities (4,719,853) - (1,303,365) 1,175,831

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 1,059,662 8,549 416,567 438,160 Net Cash Provided by Investing Activities 1,059,662 8,549 416,567 438,160 Net Increase (Decrease) in Cash
and Investments 8,070,572 (46,556) 3,108,941 1,293,324 Cash and Investments - Beginning of Year 91,120,467 762,365 31,797,745 35,817,870 Cash and Investments - End of Year 99,191,039$ 715,809$ 34,906,686$ 37,111,194$ Consisting of:

Unrestricted 94,825,811$ 715,809$ 34,906,686$ 37,111,194$ Restricted 4,365,228 - - - Total Cash and Investments 99,191,039$ 715,809$ 34,906,686$ 37,111,194$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) 5,128,709$ (1,184,317)$ 839,712$ 586,061$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 5,585,400 830,627 1,589,098 2,645,217 Net Change in Assets and Liabilities:

Accounts and Interest Receivable 568,771 44,497 675,868 76,193 Taxes Receivable (13,060) - 7,247 - Supplies - - - - Due from Other Governments - - 175,418 (3,630,868) Prepaid Expenses - - - - Accounts Payable and Contract Payable (646,355) (41,742) 153,212 (746,785) Deferred Outflow s Pensions (1,918,804) (726,339) (7,107,257) (533,269) Deferred Inflow s Pensions & Leases (1,729,601) (243,281) (2,510,638) (482,523) Net Pension Liability 3,474,598 923,594 9,466,892 1,009,924 Unearned Revenue 1,488,731 - - Accrued Personnel Costs - - - - Compensated Absences 12,100 4,128 3,895 (4,037) Other Liability - - - - Liability for Self-Insurance Claims - - - Customer Deposits (1,095,602) - - - Net Cash Provided (Used) by Operating Activities 10,854,887$ (392,833)$ 3,293,447$ (1,080,087)$ Major Funds
Business-Type Activities - Enterprise Funds

49 CITY OF VISALIA
STATEMENT OF CASH FLOWS (Continued)

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

The accompanying notes are an integral part of these financial statements ..

Business-Type Activities - Enterprise Funds
Non-Major Funds Governmental
Activities
Non-Major Funds
Total Total

Internal
Service Funds

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 10,111,354$ 85,229,526$ 31,046,067$ Cash Payments to Employees for Services (6,173,301) (19,005,519) (25,000,348) Cash Payments to Suppliers for Services (5,489,781) (51,631,811) (4,567,284) Cash Received from (Payments to) Other Governments 26,619 (3,441,891) - Net Cash Provided (Used) by Operating Activities (1,525,109) 11,150,305 1,478,435

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Grant Income - 183,590 - Advance (to) from Other Funds - 40,079 - Other Income 308,781 3,067,965 1,524,058 Other Payments (118,009) (725,546) (611) Transfers In 4,594,358 4,894,358 6,455,000 Net Cash Provided by Noncapital
Financing Activities 4,785,130 7,460,446 7,978,447

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets (23,909) (4,408,992) (3,189,449) Capital Grants Received 174,470 1,605,054 - Contributions - 2,428,009 1,224,151 Interest Expense - - (24,161) Long-Term Debt Payments - Principal (1,343,020) (3,885,969) - Long-Term Debt Payments - Interest (346,849) (2,124,797) - Net Cash Provided by Capital and Related
Financing Activities (1,539,308) (6,386,695) (1,989,459)

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 261,683 2,184,621 396,444 Net Cash Provided by Investing Activities 261,683 2,184,621 396,444 Net Increase (Decrease) in Cash
and Investments 1,982,396 14,408,677 7,863,867 Cash and Investments - Beginning of Year 14,907,417 174,405,864 42,477,200 Cash and Investments - End of Year 16,889,813$ 188,814,541$ 50,341,067$ Consisting of:

Unrestricted 15,623,715$ 183,183,215$ 49,870,355$ Restricted 1,266,098 5,631,326 470,712 Total Cash and Investments 16,889,813$ 188,814,541$ 50,341,067$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) (2,925,048)$ 2,445,117$ (600,315)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 1,366,604 12,016,946 2,303,480 Net Change in Assets and Liabilities:

Accounts and Interest Receivable 356,787 1,722,116 (20,518) Taxes Receivable - (5,813) - Supplies (3,957) (3,957) (125,572) Due from Other Governments 26,619 (3,428,831) - Prepaid Expenses (10,601) (10,601) (126,189) Accounts Payable and Contract Payable (505,661) (1,787,331) 17,256 Deferred Outflow s Pensions (4,053,041) (14,338,710) (1,362,109) Deferred Inflow s Pensions & Leases (2,371,708) (7,337,751) (1,597,885) Net Pension Liability 6,592,230 21,467,238 2,647,874 Unearned Revenue 2,512 1,491,243 - Accrued Personnel Costs - - 15,451 Compensated Absences (8,089) 7,997 56,236 Other Liability 64,915 64,915 - Liability for Self-Insurance Claims - - 270,726 Customer Deposits (56,671) (1,152,273) - Net Cash Provided (Used) by Operating Activities (1,525,109)$ 11,150,305$ 1,478,435$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

50 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 representatives of other affected taxing agencies and the City.

51 The accompanying notes are an integral part of these financial statements .

CITY OF VISALIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2023
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
ASSETS
Cash and Investments (Note 3) 559,344$ 258,591$
Restricted Cash and Investments (Note 3) - 508,950 Accounts Receivable 236,827 -
District Assesment Receivable 41,672 -
Notes and Loan Receivable (Note 5) - 105,246 Land Held For Resale - 2,824,503
Total Assets 837,843 3,697,290

LIABILITIES
Accounts, Interest, and Contracts Payable 144,762 35,099 Deposits 41,124 -
Due to City 114,220 -
Long - Term Liabilities (Note 7):

Due Within One Year - 354,443
Due in More Than One Year - 13,324,082
Total Long - Term Liabilities - 13,678,525 Total Liabilities 300,106 13,713,624

NET POSITION
Restricted for:

Held in Trust - (10,016,334)
Individuals, Organizations, and Other Governments 537,737 - Total Net Position 537,737$ (10,016,334)$

52 The accompanying notes are an integral part of these financial statements .

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Custodial
Funds
Successor
Agency
Private Purpose
Trust Fund
Additions
Redevelopment Property Taxes Trust Funds -$ 1,253,140$ Use of Money and Property 6,918 39,654
Revenue from District Assessments 1,218,616 -
Miscellaneous Revenue 290,090 1,815
Total Additions 1,515,624 1,294,609
Deductions
Obligation Requirements
Interest on Bonds and Notes Payable 18,920 338,399 Total Obligation Requirements 18,920 338,399
Administrative Expenses 9,071 70,450
Total Administrative Expenses 9,071 70,450
Distribution of District Assessment 1,419,886 -
Principal on Bonds and Notes Payable 59,484 -
Total Distribution of District Assessment 1,479,370 - Total Deductions 1,507,361 408,849
Change in Net Position 8,263 885,760
Net Position - Beginning of Year 529,474 (10,902,094) Net Position (Deficit) - End of Year 537,737$ (10,016,334)$ 53 NOTES TO THE

FINANCIAL

STATEMENTS

54 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

55 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 ................................................................................ 57

DETAILED NOTES ON FUNDS:

Note 2 – Budgets and Budgetary Accounting ............................................................................................. 69 Note 3 – Cash and Investments .................................................................................................................. 70 Note 4 – Interfund Transactions ................................................................................................................. 76 Note 5 – Notes and Loans Receivable ........................................................................................................ 78 Note 6 – Capital Assets ............................................................................................................................... 80 Note 7 – Long Term Liabilities .................................................................................................................... 83 Note 8 – Debt Without City Commitment .................................................................................................. 88 Note 9 – Fund Balance and Net Position Classifications ............................................................................ 89

OTHER INFORMATION:

Note 10 – Employee Benefits ..................................................................................................................... 92 Note 11 – Risk Management ...................................................................................................................... 100 Note 12 – Contingent Liabilities and Commitments ................................................................................... 101 Note 13 – Prior Period Adjustments ........................................................................................................... 102 Note 14 – Transactions with Related Parties ............................................................................................. 102 Note 15 – Leases Receivable ...................................................................................................................... 102

56 City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

57 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, wastewater, 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 accounting principles generally accepted in the United States of America (U.S. GAAP) applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below.

A. Reporting Entity

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

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

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

The financial statements exclude the following:

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

The Downtown Improvement District (District) was incorporated under the Nonprofit Public Benefit Corporation Law of the State of California for the purpose of making improvements in the City’s downtown area. The City collects the District assessment revenue on behalf of the D istrict. 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 D istrict. 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, 2023

58 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 Water Main Assessment District ( AWMAD) was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions. The AWMAD is not a component unit of the City.

The Laura Water Main Assessment District (LWMAD) was established to collect assessments on real property in the district to repay bonds for Cal Water main extensions. The LWMAD 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 Successor Agency (Successor Agency) accounts for assets transferred from the former redevelopment agency (RDA) which was dissolved as of January 31, 2012. The sole purpose of this fund is to retire debt of the former RDA. The Successor Agency is subject to the financial accountability of the Successor Agency Board that is comprised of the City Council of the City of Visalia and accordingly, is a component unit of the City although it is a separate legal entity

B. Basis of Presentation

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

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

The following inter-fund activities have been eliminated:

· Due to/from other funds
· Advances to/from other funds
· Transfers in/out

These statements distinguish between the governmental and business -type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other non- exchange transactions. Business -type activities are financed in whole or in part by fees charged to external parties.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

59 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business -type activities of the City and for each function of the City’s governmental activities.

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

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

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

C. Major Funds

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

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

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

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

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

Measure N - Special Revenue Fund Measure N is used to account for increased public safety services including police and fire, repair and maintenance for streets and roads, and maintenance of parks and trails. Measure N provides the City with a reliable, ongoing local source of funding which is locally controlled with citizen oversight.

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 Community

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

60 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. Major Funds (Continued)

Development Block Grants (CDBG), the Home Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and fines charged for substandard housing and abandoned vehicle abatement. Also, within the CDBG, HOME and NSP programs, when money that was previously loaned out is paid back; it again becomes available for use in the rehabilitation and development programs.

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 - Special Revenue Fund e stablished to track and account 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.

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 drain activity. Revenue is provided by user charges and impact fees as well as limited grant funding.

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

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

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.

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 funds are excluded from the Government-wide financial statements but are presented in separate Fiduciary Fund financial statements. Custodial Funds maintained by the City are the Property and Business Improvement District #5 , 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.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

61 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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 are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty 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 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, permits, and charges for services are not susceptible to accrual because they are not measurable until received in cash.

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

The City may fund programs with a combination of cost -reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Certain indirect costs are included in program expenses reported for individual functions, activities, and interest.

E. Property Tax

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

The County remits the taxes periodically throughout the year, as they are paid, with the largest amounts in December and April of each year. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the County. Delinquent property taxes are remitted by the County, to the City, periodically throughout the year as they are paid.

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

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

62 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

F. Receivables

Billed but unpaid services provided to individuals or non- governmental entities are recorded as “receivables.” Services provided to other governmental entities are recorded as “due from other government al units.” Grant revenues and receivables are recorded when earned on grants that have been approved and funded by the grantor.

G. Unearned Revenue

Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical Transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned.

H. Compensated Absences

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

I. Land Held for Redevelopment

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

J. Capital Assets

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

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

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

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

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

63 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

J. Capital Assets (Continued)

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

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.

K. Inventory

Inventory is comprised of nuts available for sale that the City has harvested and processed from City owned farmlands. This inventory is currently in storage. The method of valuation of the inventory was to take the number of pounds in storage as of June 30, 20 23 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, 202 3, 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.

L. Prepaid Items and Supplies

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items and supplies in both the government-wide and fund financial statements by using the purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

M. 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.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

64 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

M. Fund Balance (Continued)

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

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

The intent can be expressed by the City Council itself or by an official to which the governing body has delegated the authority.

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

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

N. 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/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

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

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

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

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

65 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

O. 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.

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.

P. Encumbrances

The City uses an encumbrance system as an extension of normal budgetary accounting for all funds. Under this system purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year -end are recorded as restricted, committed, or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year -end are automatically re -appropriated for the following year. Unencumbered and unexpended appropriation lapse at year end except for capital which is rolled to the next fiscal year until project completion . The City has existing resources as of June 30, 2023 to liquidate the encumbrances.

Encumbrances outstanding as of June 30, 2023 were as listed below:

Amount
General Fund 2,661,009$
Measure N 7,149,394
Housing & Community Grants 3,572,701
American Rescue Plan 947,134
Transportation 1,317,896
Non-Major Governmental Funds 19,506,232
Water Reclamation Facility 855,862
Storm Sewer Maintenance 35,895
Solid Waste 3,850,294
Transit 4,676,865
Convention Center 21,546
Airport 149,414
Animal Control 243
Vehicle Replacement 943,684
Information Services 98,304
45,786,473$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

66 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Q. Leases

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.

Lease assets are recorded at the amount of the initial measurement 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 discount rate.

· 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.

· 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.

· 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.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

67 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

R. Subscription-Based Information Technology Arrangements (SBITA)

The City implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA) for fiscal year 2022 -23 which affects the government -wide financial statements and proprietary fund financial statements. The City recognizes subscription liabilities with a subscription term greater than one year.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

Costs associated with a SBITA, other than the subscription payments are accounted for as follows:

· Preliminary Project Stage: Outlays are expensed as incurred. · Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset. · Operation and Additional Implementation Stage: Outlays are expensed as incurred unless they meet specific capitalization criteria.

Subscription assets are amortized using the straight-line method over the subscription term.

In calculating the subscription asset and liability, the City uses k ey estimates and judgments related to SBITA for (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

· 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: 2.40% for a subscription term of 0 -60 months; 2.85% for a subscription term of 61-120 months; and 3.22% for a subscription term of 121 months or more.

· The subscription term includes the noncancellable period of the SBITA as well as any options to extend the subscription if the City feels that it will be exercised. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

· The City monitors situations that would require a remeasurement of the subscription and will remeasure the subscription asset and liability if the situation is expected to significantly affect the amount of the subscription liability.

· Subscription assets are reported as right to use along with other capital assets and subscription liabilities are reported with long-term obligations on the statement of net position.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

68 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

S. Implementation of Accounting Pronouncements

The following GASB Statements have been implemented in the current financial statements:

GASB Statement No. 96, Subscription-Based Information Technology Arrangements This statement provides guidance on the accounting and financial reporting for subscription- based information technology arrangements (SBITAs) for government end users (governments). The provisions of this statement are effective for fiscal year 2022 -23. The City has implemented this statement for the June 30, 2023 year end.

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. There was no effect on the financial statements as a result of implementing this statement. As there were no arrangements of this type applicable to the City.

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

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

T. Future GASB Pronouncements

The following GASB Statements will be implemented in future 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 decisions 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.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

69 Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

T. Future GASB Pronouncements (Continued)

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 has elected not to implement GASB Statement No. 101 early and has not determined its effects on the City’s financial statements.

U. New Funds

During fiscal year 2022- 23, the City created the Vehicle Miles Traveled Fund to account for fees collected to mitigate Vehicle Miles Traveled. This fund is a capital project non -major governmental fund.

NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING

A. Budgetary Information

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

Budgetary controls are set by the City Council within State guidelines. The budgetary basis of accounting is consistent with U.S. GAAP 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 the adopted budget. Also, City Council approval is required to spend reserves from any fund.

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

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

70 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 considered to be cash on hand, demand deposits, restricted cash, and investments held in a cash management investment pool.

Cash and investments as of June 30, 2023, are classified in the Statement of Net Position as follows :

Major Funds:

Housing & Community Grants 1,125,846$
Housing Successor Agency 80,030$
Ameri can Rescue Pl an 577,228$
Ci vi c Center 13,458$
Non-Major Funds:

Special Revenue Funds:

Groundwater Recharge 258,036$
Kaweah Lake and Storm Water Maintenance 2,243$
Spe cial Se rvice Districts 812,550$
Grant & Loan Funds 21,138$
Measure T - Fi re 84,691$
Golf Course 4,294$
Oak Tree Preservati on 9,378$
Conservation 70$
Capital Projects Funds:

Re cre ational Facilitie s 3,840$
Facility Im prove m e nts 219$
Regional Parks 162$
A nim al Control Re se rve 71$
Government-Wide Statement of Net Position:

Cash and Investments 508,340,071$
Restricted Cash and Investments 6,488,871
Fiduciary Funds Statement of Net Position:

Cash and Investments 817,935
Restricted Cash and Investments 508,950
Total Cash and Investments 516,155,827$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

71 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)

Cash and investments as of June 30, 2023, consist of the following:

A. Investments Authorized by the California Government Code and the City of Visalia’s Investment Policy

The table below identifies the investment types that are authorized for the City of Visalia by the California Government Code (or the City of Visalia’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code ( or the City of Visalia’s investment policy, where more restrictive) that addresses interest rate risk , credit risk, and concentration of credit risk . This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements with the City of Visalia, rather than the general provisions of the California Government Code or the City of Visalia’s investment policy.

Authorized
Investment Type

Maximum
Maturity
Maximum
Percentage
Of Portfolio *
Maximum
Investment
In One Issuer

Credit
Risk

Local Agency Bonds 5 years None None None
U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Banker’s Acceptances 180 days 40% 30% None
Commercial Paper 270 days 25% 10% AAA/Aaa
Negotiable Certificates of Deposit 5 years 30% None None Repurchase Agreements 1 year 20% None None
Reverse Repurchase Agreements 92 days 20% of base value None None Medium-Term Notes 5 years 30% None A
Mutual Funds 5 years 20% 10% AAA/Aaa
Money Market Mutual Funds N/A 20% 10% AAA/Aaa
Mortgage Pass-Through Securities 5 years 20% None None
County Pooled Investment Funds N/A None None None
Managed Investment Pools (CAMP) N/A None None None
Local Agency Investment Fund (LAIF) N/A None $75M None

* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

Cash on hand 15,850$
Deposits with financial institutions 15,684,486
Investments 500,455,491
Total Cash and Investments 516,155,827$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

72 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 rates. One of the ways that the City of Visalia manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer -term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City of Visalia monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City of Visalia has no specific limitations with respect to this metric.

Weighted Average
Balance at Maturity
Investment Type 06/30/2023 (in Days ) % of Investments
Federal Agency Securities 170,610,040$ 196.91 34.09% U.S. Treasuries 41,420,500 61.52 8.28% Local Agency Investment Fund 38,227,980 N/A 7.64% California Asset Management Program 28,176,426 N/A 5.63% Corporate Medium-Term Notes 95,966,437 160.70 19.18% Municipal Bonds 125,279,937 194.97 25.03% Local Agency Bonds 253,977 0.91 0.05% Held by Bond Trustee:

Money Market Funds 520,194 0.02 0.10% Total 500,455,491$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

73 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 3, and during the 20 22-2023 fiscal year, the City of Visalia did not hold or purchase investments that were highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above), such as interest only treasury strips or mortgage -backed securities.

E. Disclosures Relating to Credit Risk

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

Investment Type
Mi ni mum
Legal
Rating Moody's Rating
Standard & Poors
Rating
% of
Portfolio
Federal Agency Securi ti es 170,610,040$ N/A Aaa AA+ 34.09% U.S. Treasuri es 41,420,500 N/A Aaa Not Rated 8.28% Corporate Medi um-Term Notes 4,337,717 A Aaa AA+ 0.87% Corporate Medi um-Term Notes 2,940,120 A Aa2 AA 0.59% Corporate Medi um-Term Notes 15,144,200 A A1 AA 3.03% Corporate Medi um-Term Notes 2,718,390 A Aa3 AA- 0.54% Corporate Medi um-Term Notes 12,395,070 A A1 A+ 2.48% Corporate Medi um-Term Notes 4,943,360 A A2 A+ 0.99% Corporate Medi um-Term Notes 9,627,100 A A1 A 1.92% Corporate Medi um-Term Notes 20,333,226 A A2 A 4.06% Corporate Medi um-Term Notes 5,352,260 A A3 A 1.07% Corporate Medi um-Term Notes 12,266,199 A A1 A- 2.45% Corporate Medi um-Term Notes 3,533,520 A A2 A- 0.71% Corporate Medi um-Term Notes 2,375,275 A A3 A- 0.47% Local Agency Investment Fund 38,227,980 N/A Not Rated Not Rated 7.64% California Asset Management Program 28,176,426 N/A Not Rated Not Rated 5.63% Municipal Bonds 3,365,820 A Aaa AAA 0.67%
Municipal Bonds 10,403,035 A Aa1 AAA 2.08%
Municipal Bonds 6,290,330 A Not Rated AAA 1.26% Municipal Bonds 8,431,865 A Aaa AA+ 1.68%
Municipal Bonds 3,056,197 A Aa1 AA+ 0.61%
Municipal Bonds 780,664 A Not Rated AA+ 0.16% Municipal Bonds 4,658,538 A Aa1 AA 0.93%
Municipal Bonds 6,775,571 A Aa2 AA 1.35%
Municipal Bonds 7,883,656 A Aa3 AA 1.58%
Municipal Bonds 4,210,490 A Not Rated AA 0.84% Municipal Bonds 45,966,686 A Aa2 AA- 9.18%
Municipal Bonds 7,958,822 A Aa3 AA- 1.59%
Municipal Bonds 2,423,876 A Not Rated AA- 0.48% Municipal Bonds 3,447,150 A Aa1 Not Rated 0.69% Municipal Bonds 2,194,813 A Aa2 Not Rated 0.44% Municipal Bonds 3,073,319 A Aa3 Not Rated 0.61% Municipal Bonds 4,359,105 A A1 Not Rated 0.87% Local Agency Bonds 253,977 N/A Not Rated Not Rated 0.05% Held by Bond Trustee:

Money Market Funds 520,194 A Aaa-mf AAAm 0.10% Total 500,455,491$ 100.00%

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

74 Notes to the Financial Statements
NOTE 3 - CASH AND INVESTMENTS (Continued)

F. Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (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 credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: none of the City of Visalia’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. As of June 30, 202 3, none of the City of Visalia investments were held by the broker -dealer (counterparty) that was used by the City of Visalia to buy the securities.

H. Investment in State Investment Pool

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

Issuer Investment Type Reported
Federal Home Loan Bank Federal Agency Securities 78,890,418$ Federal Farm Credit Bank Federal Agency Securities 41,515,406 Federal National Mortgage Association Federal Agency Securities 23,803,338 Federal Home Loan Mortgage Corporation Federal Agency Securities 26,400,878 U.S. Treasuries U.S. Treasuries 41,420,500
State of California Bonds Municipal Bonds 36,086,116
Total 248,116,656$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

75 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 3, these investments matured in an average of 260 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, 2023:

U.S. Treasuries totaling $41.4 million, classified in Level 1 of the fair value hierarchy, are valued at quoted prices in active markets for identical assets. Federal agency securities totaling $1 70.6 million, corporate medium-term notes totaling $ 95.9 million, municipal bonds totaling $125.3 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 Uncategori zed Total Federal Agency Securi ti es -$ 170,610,040$ -$ 170,610,040$ U.S. Treasuri es 41,420,500 - - 41,420,500 Corporate Medi um-Term Notes - 95,966,437 - 95,966,437 Municipal Bonds - 125,279,937 - 125,279,937 Held by Bond Trustee:

Money market funds - 520,194 - 520,194 Subtotal 41,420,500$ 392,376,608$ 433,797,108 Investments Measured at Amortized Cost
Local Agency Bonds 253,977 253,977
Local Agency Investment Fund 38,227,980 38,227,980 California Asset Management Program 28,176,426 28,176,426 Subtotal 66,658,383$
Total Investments 500,455,491$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

76 Notes to the Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS

A. Transfers Among Funds

With City Council approval, resources may be transferred from one City fund to another. Transfers are used in cases when a fund subsidizes another fund as in the case of the General Fund subsidizing the Convention Center, Animal Control, and Baseball Funds. Transfers are also used between f unds to fund capital projects and debt service payments . Transfers between funds during the fiscal year ended June 30, 202 3, were as follows:

Amount
Fund Receiving Transfer Fund Making Transfer Transferred Governmental Funds:

Housing & Community Grants General Fund 30,359$ (B) Ci vi c Center General Fund 9,918,553 (A) Debt Service Funds:

VPFA 2014 Refunding COP General Fund 127,560 (C) 2015 COP General Fund 590,606 (C) 2015 COP Publ i c Safety Impact Fee - Capi tal Projects 414,151 (C) 2015 COP Measure T Pol i ce - Speci al Revenue 151,107 (C) Capital Projects Funds:

Baseball General Fund 315,065 (B) Baseball General Fund 200,000 (A) GOVERNMENTAL Funds Sub-Total 11,747,401
Enterprise Funds:

Animal Control General Fund 1,295,814 (B) Animal Control General Fund 567,328 (C) Convention Center General Fund 300,000 (A) Convention Center General Fund 1,339,672 (B) Convention Center General Fund 1,091,544 (C) Storm Sewer Mai ntenance Kaweah Lake and Local Storm Water Mai ntenance - Speci al Revenue 300,000 (B) ENTERPRISE Funds Sub-Total 4,894,358
Internal Service Funds:

Vehi cl e Repl acement General Fund 4,500,000 (A) Vehi cl e Repl acement Measure T Pol i ce - Speci al Revenue 475,000 (A) Vehi cl e Repl acement Measure T Fi re - Speci al Revenue 1,480,000 (A) INTERNAL SERVICE Funds Sub-Total 6,455,000
TOTAL TRANSFERS 23,096,759$
(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, 2023

77 Notes to the Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS (Continued)

B. Long-Term Interfund Advances

At June 30, 2023 , the funds below had advance balances which were not expected to be repaid within the next year.

C. Due to/from Other Funds

As of June 30, 2023, the General Fund provided $1,919 to the Government Facilities Impact Fee Fund and $210,781 to the Housing & Community Grants Fund which are expected to be repaid within the next year.

D. Internal Balances

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

Advances From Advances To
Other Funds Other Funds
General Fund -$ 3,408,693$
Special Revenue Funds:

Spec ial Ser v ic e Distr ic ts (Landsc ape & L ighting) (a) 1,042,029 - M easur e R - Regional (b) 2,366,664 -
Total Adv anc es 3,408,693$ 3,408,693$
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.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

78 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE

A. Current Year Transactions and Balances

Balance at Balance at
Issue Date Maturity June 30, 2022 Additions Repayments June 30, 2023

GOVERNMENTAL ACTIVITIES
General Fund
Visalia Successor Agency - - 12,077,170$ 259,155$ 425,931$ 11,910,394$ Déjà Vu LP B153025 Jan 2018 June 2023 7,922 - 7,922 - Déjà Vu LP B153018 Jan 2018 June 2023 46,407 - 46,407 - Déjà Vu LP B153023 Jan 2018 June 2023 20,011 - 20,011 - 101 NW 5th (SHE) Nov 2018 Nov 2063 29,867 - 711 29,156 105 NW 5th (SHE) Nov 2018 Nov 2063 29,867 - 711 29,156 Subtotal General Fund 12,211,244 259,155 501,693 11,968,706 Housing & Community Grants
1001 N Jacob (TCHA) May 1996 May 2024 5,000 - 2,400 2,600 Fairvie w Village (KMC) Dec 1994 Dec 2034 120,000 - - 120,000 Navi gati on Center July 2022 June 2042 - 760,669 - 760,669 Robinwood April 2007 April 2036 606,655 - 43,333 563,322 1627 S Garden Public Facilty Aug 2019 Aug 2039 360,000 - 20,000 340,000 1627 S Garden Public Facilty Aug 2019 Aug 2039 238,500 - 13,250 225,250 101 N Strawberry June 2015 Dec 2045 429,150 - - 429,150 SHE 517-519 N Encina May 2018 May 2048 436,656 - - 436,656 Visalia Se nior Housing III Jan 2007 Jan 2062 2,720,193 - - 2,720,193 Court & Paradise Apts Nov 2010 Nov 2066 500,000 - - 500,000 Highland Gardens Sep 2015 Dec 2070 1,980,000 - - 1,980,000 101 NW 5th (SHE) Aug 2019 When Sold 206,679 - - 206,679 105 NW 5th (SHE) Aug 2019 When Sold 223,629 - - 223,629 113 NW 5th (SHE) Aug 2019 When Sold 222,952 - - 222,952 111 NW 5th (SHE) Aug 2019 When Sold 203,119 - - 203,119 1105 N Court (SHE) Aug 2019 When Sold 217,419 - - 217,419 Lofts Project Feb 2022 Dec 2057 1,148,735 567,788 - 1,716,523 Se quoia Village Proje ct April 2022 Mar 2057 1,069,101 430,899 27,273 1,472,727 Habitat for Humanity Assigned Vari ous Vari ous 151,014 112,996 501 263,509 NSP Vari ous Vari ous 552,246 - 23,107 529,139 CDBG Vari ous Vari ous 775,282 - 19,073 756,209 Cal Home Vari ous Vari ous 561,332 - - 561,332 HOME Vari ous Vari ous 1,731,577 246,641 94,520 1,883,698 Subtotal Housing & Community Grants 14,459,239 2,118,993 243,457 16,334,775 Housing Successor Agency
Visalia Successor Agency - - 300,819 - 300,819 - Town Meadows (1) April 2001 April 2056 114,000 - 114,000 - Kaweah Management (1) June 1996 Nov 2025 250,000 - - 250,000 Encina Triplex Aug 2008 Aug 2048 266,665 - 6,814 259,851 Kim ball Court (1) Aug 1999 Aug 2054 605,438 - 105,543 499,895 Downtown Senior Housing (1) April 2002 April 2057 900,000 - - 900,000 Tulare County Housing Authority (1) Aug 2003 Aug 2058 32,727 - 2,500 30,227 Mill Creek Parkway $1.5M (KMC) Mar 2006 Mar 2061 1,089,482 - 27,935 1,061,547 Mill Creek Parkway $3.0M (KMC) Oct 2015 Oct 2070 2,672,728 - 54,546 2,618,182 Kaweah Management - East (1) Sep 2009 June 2065 472,708 - - 472,708 Court & Paradise Apts Nov 2010 Nov 2066 500,000 - - 500,000 617 & 619 Santa Fe (KMC) July 2017 July 2072 150,000 - - 150,000 517-519 N Encina (SHE) May 2018 May 2074 100,000 - - 100,000 111 NW 5th (SHE) Nov 2018 Nov 2063 29,867 - 711 29,156 113 NW 5th (SHE) Nov 2018 Nov 2063 29,867 - 711 29,156 1105 N Court (SHE) Nov 2018 Nov 2063 29,867 - 711 29,156 1029 W Goshen Jan 2011 Jan 2066 130,141 - 2,954 127,187 Lofts Project Feb 2022 Dec 2057 329,320 - - 329,320 East Vi sal i a Redevel opment Vari ous Vari ous 32,461 - - 32,461 Habitat for Humanity Assigned Vari ous Vari ous 667,276 - 7,566 659,710 Housing Fund Vari ous Vari ous 70,622 - 5,934 64,688 Subtotal Housing Successor Funds 8,773,988 - 630,744 8,143,244 Note: (1) Repayment i s based on resi dual cash fl ow from operati ons. To the extent there i s 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, 2023

79 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE (Continued)

A. Current Year Transactions and Balances (Continued)

Balance at Balance at
Issue Date Maturity June 30, 2022 Additions Repayments June 30, 2023 Transportation Fund
Central Ca Conf Assoc (B090414) Nov 2018 June 2024 10,019 - 5,009 5,010 Dillon Ent (B170632) Dec 2018 June 2024 100,000 - 50,000 50,000 TRD Plaza LLC (B182646) May 2019 June 2025 20,024 - 20,024 - El Centro Corner (B183341) May 2019 June 2025 142,898 - 47,633 95,265 NW Visalia Senior (B173132) Oct 2019 June 2025 150,768 - 50,256 100,512 J Beast LP (B193168) July 2020 June 2026 112,746 - 28,186 84,560 J Beast LP (B193169) July 2020 June 2026 63,863 - 15,966 47,897 Vaccinated LP (B201416) June 2021 June 2027 172,763 - 34,553 138,210 Vaccinated LP (B201417) June 2021 June 2027 88,940 - 17,788 71,152 Subtotal Transportation Fund 862,021 - 269,415 592,606 Civic Center Fund
Imagine U Museum Dec 2016 Dec 2046 130,532 - 3,260 127,272 Subtotal Civc Center Fund 130,532 - 3,260 127,272 Parking District Fund
Comfort Suites Oct 2002 Oct 2032 117,122 5 10,191 106,936 Subtotal Parking District Fund 117,122 5 10,191 106,936 Waterways Fund
Imagine U Museum Dec 2016 Dec 2046 159,540 - 3,986 155,554 Subtotal Waterways Fund 159,540 - 3,986 155,554 Govt Facilitie s Im pact Fe e Fund
Central Ca Conf Assoc (B090414) Nov 2018 June 2024 299 - 149 150 TRD Plaza LLC (B182646) May 2019 June 2025 2,936 - 2,936 - El Centro Corner (B183341) May 2019 June 2025 759 - 253 506 J Beast LP (B193168) July 2020 June 2026 59,995 - 14,999 44,996 J Beast LP (B193169) July 2020 June 2026 29,472 - 7,368 22,104 Vaccinated LP (B201416) June 2021 June 2027 10,404 - 2,081 8,323 Vaccinated LP (B201417) June 2021 June 2027 44,208 - 8,841 35,367 Subtotal Govt Facilities Impact Fee Fund 148,073 - 36,627 111,446 Public Safety Impact Fee Fund
TRD Plaza LLC (B182646) May 2019 June 2025 5,533 - 5,533 - El Centro Corner (B183341) May 2019 June 2025 9,512 - 3,171 6,341 J Beast LP (B193168) July 2020 June 2026 37,262 - 9,315 27,947 Vaccinated LP (B201417) June 2021 June 2027 32,003 - 6,401 25,602 Subtotal Public Safety Impact Fee Fund 84,310 - 24,420 59,890 Storm Sewer Construction Fund
TRD Plaza LLC (B182646) May 2019 June 2025 581 - 581 - El Centro Corner (B183341) May 2019 June 2025 621 - 207 414 J Beast LP (B193168) July 2020 June 2026 2,631 - 658 1,973 Vaccinated LP (B201417) June 2021 June 2027 2,260 - 452 1,808 Subtotal Storm Sewer Construction Fund 6,093 - 1,898 4,195 Total Gove rnm e ntal A ctivitie s 36,952,162 2,378,153 1,725,691 37,604,624

BUSINESS - TYPE
Wate r Re clam ation Facility Fund
Central Ca Conf Assoc (B090414) Nov 2018 June 2024 3,892 - 1,946 1,946 TRD Plaza LLC (B182646) May 2019 June 2025 1,391 - 1,391 - El Centro Corner (B183341) May 2019 June 2025 8,413 - 2,804 5,609 NW Visalia Senior (B173132) Oct 2019 June 2025 37,656 - 12,552 25,104 120 W Main St (B150085) May 2015 June 2025 14,798 - 4,933 9,865 J Beast LP (B193168) July 2020 June 2026 53,199 - 13,300 39,899 J Beast LP (B193169) July 2020 June 2026 3,341 - 835 2,506 Vaccinated LP (B201416) June 2021 June 2027 6,570 - 1,314 5,256 Vaccinated LP (B201417) June 2021 June 2027 5,020 - 1,004 4,016 Subtotal Wate r Re clam ation Facility Fund 134,280 - 40,079 94,201 Total Governmental Activities and Business-Type 37,086,442$ 2,378,153$ 1,765,770$ 37,698,825$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

80 Notes to the Financial Statements
NOTE 5 - NOTES AND LOANS RECEIVABLE (Continued)

A. Current Year Transactions and Balances (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 housing funds hold notes related to housing development. The Housing Successor Agency loans are mainly for developers who develop housing projects for low -income persons which meet affordabilit y requirements. At June 30, 202 3, these notes receivable totaled $ 37,804,071 in the following funds: $11 ,968,706 in the General Fund, $1 6,334,775 in Housing & Community Grants, $ 8,143,244 in the Housing Successor Agency Fund, $592,606 in the Transportation Fund, $ 127,272 in the Civic Center Fund, $106, 936 in the Parking District Fund, $155,554 in the Waterways Fund, $111,446 in the Government Facili ties Impact Fee Fund, $ 59,890 in the Public Safety Impact Fee Fund, $ 4,195 in the Storm Sewer Construction Fund, $ 94,201 in the Water Reclamation Facility Fund, and $105,246 in the Fiduciary Successor Agency.

NOTE 6 - CAPITAL ASSETS
A. Capital Assets Additions and Retirements

Balance at Balance at
June 30, 2022 Additions Repayments June 30, 2023

FIDUCIARY
Successor Agency
Willow Street Parking Structure 125,951 - 20,705 105,246 Subtotal Successor Agency 125,951$ -$ 20,705$ 105,246$ Total Notes and Loans Recei vabl e 37,212,393$ 2,378,153$ 1,786,475$ 37,804,071$ Balance
July 1, 2022 Balance
as restated Additions Retirements Transfers June 30, 2023 GOVERNMENTAL ACTIVITIES:

Capital assets not being depreciated
Land 41,404,861$ 385,612$ (160,137)$ -$ 41,630,336$ Construction in progress 27,109,066 24,948,394 (116,150) (7,987,873) 43,953,437 68,513,927 25,334,006 (276,287) (7,987,873) 85,583,773 Capi tal assets bei ng depreci ated
Buildings 62,476,948 - (51,749) - 62,425,199 Improvements other than buildings 90,668,620 514,720 - 1,921,710 93,105,050 Machinery, equipment and vehicles 14,710,438 1,137,690 (101,903) 54,682 15,800,907 Infrastructure - streets, traffic signals & signs 258,165,941 3,891,686 (1,126,084) 6,046,768 266,978,311 426,021,947 5,544,096 (1,279,736) 8,023,160 438,309,467 Accumulated depreciation
Buildings (17,246,441) (1,278,329) 51,748 - (18,473,022) Improvements other than buildings (31,039,858) (2,375,345) - - (33,415,203) Machinery, equipment and vehicles (8,403,613) (857,841) 92,488 (4,411) (9,173,377) Infrastructure - streets, traffic signals & signs (99,119,528) (5,879,389) 1,126,084 - (103,872,833) (155,809,440) (10,390,904) 1,270,320 (4,411) (164,934,435) Intangible assets being amortized
Right-to use assets - lease assets - Land and land improvements 646,059 21,529 - - 667,588 Right-to-use assets - lease assets - Buildings 191,337 51,968 - - 243,305 Right-to-use assets - SBITA 1,375,007 - - - 1,375,007 2,212,403 73,497 - - 2,285,900 Accumulated amortization
Right-to use assets - lease assets - Land and land improvements (25,842) (26,740) - - (52,582) Right-to-use assets - lease assets - Buildings (94,175) (94,318) - - (188,493) Right-to-use assets - SBITA - (333,076) - - (333,076) (120,017) (454,134) - - (574,151) Governmental Capital Asset Activity, Net 340,818,820$ 20,106,561$ (285,703)$ 30,876$ 360,670,554$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

81 Notes to the Financial Statements
NOTE 6 - CAPITAL ASSETS (Continued)

A. Capital Assets Additions and Retirements (Continued)

Balance
July 1, 2022 Balance
as restated Additions Retirements Transfers June 30, 2023 INTERNAL SERVICE FUND ACTIVITIES:

Capital assets not being depreciated
Construction in progress 1,512$ 1,699,284$ -$ -$ 1,700,796$ 1,512 1,699,284 - - 1,700,796 Capi tal assets bei ng depreci ated
Buildings 654,910 - - - 654,910 Improvements other than buildings 218,785 - - - 218,785 Machinery, equipment and vehicles 36,659,717 1,490,165 (469,477) (35,287) 37,645,118 37,533,412 1,490,165 (469,477) (35,287) 38,518,813 Accumulated depreciation
Buildings (589,910) - - - (589,910) Improvements other than buildings (176,591) (7,159) - - (183,750) Machinery, equipment and vehicles (22,687,870) (2,031,178) 431,243 4,411 (24,283,394) (23,454,371) (2,038,337) 431,243 4,411 (25,057,054) Intangible assets being amortized
Right-to-use assets - SBITA 285,300 518,461 - - 803,761 285,300 518,461 - - 803,761 Accumulated amortization
Right-to-use assets - SBITA (23,775) (265,143) - - (288,918) (23,775) (265,143) - - (288,918) Internal Service Fund Capital Asset Activity, Net 14,342,078$ 1,404,430$ (38,234)$ (30,876)$ 15,677,398$ Total Governmental Capital assets not being depreciated or amortized 87,284,569$ Total Governmental Capi tal assets bei ng depreci ated or amorti zed 289,063,383$ BUSINESS-TYPE ACTIVITIES:

Capital assets not being depreciated
Land 26,148,966$ -$ (4,019)$ -$ 26,144,947$ Construction in progress 4,328,694 1,415,063 - - 5,743,757 30,477,660 1,415,063 (4,019) - 31,888,704 Capi tal assets bei ng depreci ated
Buildings 58,373,201 - - - 58,373,201 Improvements other than buildings 231,882,974 - - - 231,882,974 Machinery, equipment and vehicles 75,224,199 1,581,280 (1,954,501) - 74,850,978 Infrastructure - sewer and storm drainage 153,417,062 1,412,649 - - 154,829,711 518,897,436 2,993,929 (1,954,501) - 519,936,864 Accumulated depreciation
Buildings (22,136,832) (1,210,152) - - (23,346,984) Improvements other than buildings (71,977,471) (4,750,867) - - (76,728,338) Machinery, equipment and vehicles (47,020,623) (4,094,321) 1,852,079 - (49,262,865) Infrastructure - sewer and storm drainage (36,484,226) (1,929,149) - - (38,413,375) (177,619,152) (11,984,489) 1,852,079 - (187,751,562) Intangible assets being amortized
Right-to-use assets - SBITA 64,915 - - - 64,915 64,915 - - - 64,915 Accumulated amortization
Right-to-use assets - SBITA - (32,458) - - (32,458) - (32,458) - - (32,458) Business-type Capital Asset Activity, Net 371,820,859$ (7,607,955)$ (106,441)$ -$ 364,106,463$ Total Busisness-Type Capital assets not being depreciated or amortized 31,888,704$ Total Busisness-Type Capital assets being depreciated or amortized 332,217,759$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

82 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 6,218,115$
Housing & Community Grants 6,190
Public Works 1,498,257
Public Safety:

Police 952,779
Fire 523,187
Communi ty Servi ces 1,646,510
Capital Assets Held by the City's Internal Service Funds are Charged to the Various Functions Based on their
Usage of the Assets 2,303,480
Total Gove rnm e ntal A ctivitie s 13,148,518$
Business-Type Activities
Wate r Re clam ation Facility 5,585,399$
Storm Sewer Mai ntenance 830,627
Solid Waste 1,589,098
Transit 2,645,218
Convention Center 724,048
Airport 416,938
Building Safety 53,636
Animal Control 171,983
Total Busine ss-Type A ctivitie s 12,016,947$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

83 Notes to the Financial Statements
NOTE 7 - LONG-TERM LIABILITIES

A. Current Year Transactions and Balances

Balance at
Original Issue June 30, 2022 Balance at Due Within
Amount as Restated Additions Reti rements June 30, 2023 One Year Governmental Activity Debt
Ce rtificate s of Participation:
2015 COP 13,121,230$ 8,040,508$ $ - (860,829)$ $ 7,179,679 $ 901,123 2014 VPFA - Refunding (1) 1,180,800 460,800 - (107,200) 353,600 112,000 14,302,030 8,501,308 - (968,029) 7,533,279 1,013,123 Lease Li abi l i ti es (2) 837,396 722,963 73,497 (117,657) 678,803 78,857 SBITA L iabilitie s (3) 1,375,007 1,375,007 - (643,215) 731,792 93,281 Internal Service Funds
Compensated Absences - 6,020,964 950,921 (894,685) 6,077,200 1,206,299 Total Gove rnm e ntal A ctivitie s 16,514,433$ 16,620,242$ 1,024,418$ (2,623,586)$ 15,021,074$ 2,391,560$ Business-Type Activity Debt
Ce rtificate s of Participation:
2015 COP 4,788,770$ 2,934,492$ $ - (314,171)$ $ 2,620,321 $ 328,877 2014 VPFA - Refunding (1) 6,199,200 2,419,200 - (562,800) 1,856,400 588,000 Bond Premium 971,504 70,809 - (34,814) 35,995 23,787 11,959,474 5,424,501 - (911,785) 4,512,716 940,664 Notes - Direct Borrowings:
2014 Cl ean Water State Revol vi ng Fund Loan 96,434,597 86,775,190 - (2,542,949) 84,232,241 2,596,351 Lease - Di rect Borrowi ngs:
2012 Animal Control 6,600,000 3,051,138 - (466,049) 2,585,089 482,266 SBITA L iabilitie s (3) 64,915 64,915 - - 64,915 64,915 Compensated Absences - 1,207,791 146,649 (138,652) 1,215,788 180,245 Total Busine ss-Type A ctivitie s 115,058,986$ 96,523,535$ 146,649$ (4,059,435)$ 92,610,749$ 4,264,441$ Fiduciary Funds
Redevelopment Agency Tax Allocation Bonds:
2003 East Visalia District 5,185,000$ 1,090,000$ $ - (200,000)$ 890,000$ 210,000$ Notes - Direct Borrowings:
2004 RDA - Mooney District 2,707,250 1,016,476 - (138,346) 878,130 144,443 Advances:

General Fund - 12,077,170 259,156 (425,931) 11,910,395 - Housing Successor Agency - 300,819 - (300,819) - - - 12,377,989 259,156 (726,750) 11,910,395 - Total Private Purpose Trust Funds 7,892,250$ 14,484,465$ 259,156$ (1,065,096)$ 13,678,525$ 354,443$ (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 cal cul ated i nterest rates range from .20% to 1.50%. (3) The City has entered into agreements for subscription-based information technology. The terms of the agreements range from 2 to 5 years.

The cal cul ated i nterest rate i s 2.40%.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

84 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 Certificates, and (c) to pay the costs related to the execution and delivery of the Certificates, including, but not limited to, the cost of municipal bond insurance. Of this issue, 84% is allocable to the Convention Center and 16% is considered general long -term debt. The term of the refunding is 11 years with an all in total interest cost of 3.02%. Principal payments are due annually on June 1 and interest is due semiannually on June 1 and December 1, commencing December 1, 2014, with the final payment due in the year 2025. The refunding was structured to lower the annual certificate payments and was achieved by taking advantage of historically low interest rates and extend out the final maturity date by 4 years. The refunding resulted in a bond premium of $971,504 for the business -type activities, of which $70,809 remains to be amortized. The City also chose to unencumber the Convention Center, which was the lease 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, 2023.

On September 10, 2015 the City issued $17,910,000 of 2015 Certificates of Participation to (a) construct and equip the Visalia Emergency Communications Center (the VECC), (b) to replace the City’s Computer Aided Dispatch and Records Management System (the CAD/RMS), (c) to make certain improvements to the Visalia Convention Center, (d) to purchase a municipal bond debt service reserve insurance policy for deposit into a debt service reserve fund established for the Certificates, and (e) to pay the costs related to the execution and delivery of the Certificates. Of this issue, 27% is allocable to the Convention Center, 10% is allocable to the Measure T Fund, 26% is allocable to Police Impact Fees, and 37% is considered general long- term debt. The term of the certificates is 14 years with an all in total interest cost of 3.14%. Principal and 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 covenanted to budget and appropriate Lease Payments in each fiscal year in consideration of the use and occupancy of the Property from any source of legally available funds, and to take such action as may be necessary to include all Lease Payments in its annual budgets and to make the necessary annual appropriations thereof. Should the City default under the facilities sublease, the Trustee, as the assignee of the Corporation, may elect either to terminate the Lease and seek to collect personal damages from the City or to maintain the Lease in effect to seek to collect the Lease Payments as they become due. Base Rental payments may not be accelerated upon a default under the facilities sublease. No such events of default occurred during the fiscal year ending June 30, 2023.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

85 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 beg an March 2013 at an interest rate of 3.45%. Principal and interest payments are due each September and March with the first payment beginning September 2013 and the final payment due in March 2028.

D. Compensated Absences

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

E. Redevelopment Agency Tax Allocation Bonds

On June 18, 2003, the Community Redevelopment Agency (RDA) issued $5,185,000 of 2003 Tax Allocation Refunding Bonds (2003 Bonds) to retire outstanding variable rate 1990 Tax Allocation Bonds and to pay for issuance costs.

Tax increment revenue is pledged for the repayment of the 2003 Bonds. Interest ranges from 2.0% to 4.1% and is due semiannually each July 1 and January 1. Commencing 2004, principal is payable each July 1 through 2026.

The bonds are special obligations of the Agency payable solely from the t ax 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 b ond when due. Should the Successor Agency default, any Holder or Beneficial Owner of the bonds may take such actions as may be necessary and appropriate including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this d isclosure certificate. If termination occurs prior to the final maturity of the b onds; the i ssuer shall give notice of such termination in the same manner as for a listed event. No such events of default occurred during the fiscal year ending June 30, 20 23.

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, 2023

86 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 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, 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 Redevelopment Agency.

G. Note – Clean Water State Revolving Fund – Wastewater Conservation Plant Upgrade Project

On March 27, 2014, the City entered into an installment sale agreement with the California State Water Resources Control Board (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 interest. The term of the loan is 30 years at an interest rate of 2.1%. Principal and interest payments will be repaid in annual installments commencing on September 13, 2018 and shall be fully amortized by September 13, 2047.

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. Subscription Based Information Technology Arrangements

The City has entered subscription-based information technology arrangements (SBITA) for various administrative and operational purposes. These subscriptions include services related to cloud-based software applications, data storage, and management services. The remaining subscription periods vary with terms ranging from 1 to 4 years. The discount rate used was 2.40%.

As of June 30, 2023, the capitalize d right to use assets related to SBITA for governmental activities was $2,178,768 and $64,915 for business -type activities. As of June 30, 2023, the total subscription liability was $731,792 for governmental activities and $64,915 for business -type activities.

For the year ended June 30, 2023, the City recognized $25,196 of interest expense related to these arrangements.

Principal and interest payments to maturity are detailed in Note 7I, Debt Service Requirements.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

87 Notes to the Financial Statements
NOTE 7 – LONG-TERM LIABILITIES (Continued)

I. Debt Service Requirements

Annual debt service requirements to maturity are shown below for all long -term debt:

For the Year
Ending June 30, Principal Interest Principal Interest Principal Interest 2024 1,013,123$ 268,870$ 78,857$ 9,492$ 93,281$ 6,349$ 2025 1,066,343 216,884 23,211 9,061 290,789 16,731 2026 1,120,364 162,216 23,561 8,711 258,333 6,717 2027 1,036,658 118,657 23,917 8,355 89,389 2,253 2028 1,065,963 87,118 24,278 7,994 - - 2029-2033 2,230,828 72,351 127,004 34,356 - - 2034-2038 - - 136,889 24,471 - - 2039-2043 - - 147,433 13,927 - - 2044-2048 - - 93,653 3,163 - - 7,533,279$ 926,096$ 678,803$ 119,530$ 731,792$ 32,050$ SBITA Liabilities
Governmental Activities
Public Offering Lease Liabilities
For the Year
Ending June 30, Principal Interest Principal Interest Bond Premium Principal Interest 2024 3,078,617$ 1,853,939$ 916,877$ 170,817$ 23,787$ 64,915$ 1,575$ 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 3,374,389 1,558,166 389,038 31,795 - - - 2029-2033 15,021,079 6,805,060 814,171 26,405 - - - 2034-2038 16,665,941 5,160,198 - - - - - 2039-2043 18,490,921 3,335,218 - - - - - 2044-2048 20,515,742 1,310,397 - - - - - 86,817,330$ 25,150,004$ 4,476,721$ 470,473$ 35,995$ 64,915$ 1,575$ Public Offering
Business-Type Activities
Direct Borrowings SBITA Liabilities
For the Year
Ending June 30, Principal Interest Principal Interest
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 171,636 9,480 - - 2029-2033 89,490 1,927 - - 878,130$ 118,868$ 890,000$ 99,094$
Private Purpose Trust Fund
Direct Borrowings Public Offering

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

88 Notes to the Financial Statements
NOTE 8 - DEBT WITHOUT CITY COMMITMENT

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 3, $ 135,000 of principal balance, which is repayable out of assessments on property in the Assessment District, remained outstanding.

The City issued a $148,367 bond designated as the “City of Visalia Atwood Street Water Assessment District No. 2014-01, Series 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 3, $ 72,812 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 3, $46,165 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, 2023

89 Notes to the Financial Statements
NOTE 9 - FUND BALANCE AND NET POSITION 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, 2023 is as follows:

City of Visalia
Governmental Fund Balances
June 30, 2023
(in thousands)

General
Fund Measure N
Housing &
Community
Grants
Housing
Successor
Agency

American
Rescue
Plan Transportation
Civic
Center
All Other
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Prepaids/Deposits 18$ -$ -$ -$ -$ -$ -$ -$ 18$ Supplies 13 - - - - - - - 13 Long Term Receivable 58 - - - - - - - 58 Advance - Measure R - Trailways 2,367 - - - - - - - 2,367 Advance - Special Service Districts 1,042 - - - - - - - 1,042 Total Nonspendable Fund Balance 3,498 - - - - - - - 3,498 Restricted
Total Restricted Fund Balance - 36,586 17,426 10,469 753 24,539 - 99,629 189,402 Committed
Golf Course - - - - - - - 496 496 Conservation - - - - - 244 244 Police Unclaimed Funds - - - - - 132 132 Softball - - - - - - - 5 5 Baseball - - - - - - - 376 376 Civic Center - - - - - - 56,468 - 56,468 Emergency Reserve 19,023 - - - - - - - 19,023 Miscellaneous Capital Projects 1,782 - - - - - - - 1,782 Total Committed Fund Balance 20,805 - - - - - 56,468 1,253 78,526 Assigned
Facility Improvements - - - - - - - 769 769 Regional Parks - - - - - - - 566 566 Vehicle Miles Traveled - - - - - - - 26 26 Animal Control Reserve - - - - - - - 247 247 Baseball - - - - - - - 46 46 Advance - Atwood District (Custodial Fund) 76 - - - - - - - 76 Advance - Laura District (Custodial Fund) 38 - - - - - - - 38 Due from - Community Development 211 - - - - - - - 211 Due from - Public Facility Impact Fee (Library) 2 - - - - - - - 2 CIP Budgeted Not Started 4,731 - - - - - - - 4,731 Cal PERS Unfunded Liability FY 23/24 11,000 - - - - - - - 11,000 Successor Agency Loans 11,910 - - - - - - - 11,910 Total Assigned Fund Balance 27,968 - - - - - - 1,654 29,622 Unassigned
Total Unassigned Fund Balance (Deficit) 3,142 - - - - - - (737) 2,405 Total Fund Balances 55,413$ 36,586$ 17,426$ 10,469$ 753$ 24,539$ 56,468$ 101,799$ 303,453$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

90 Notes to the Financial Statements
NOTE 9 – FUND BALANCE AND NET POSITION CLASSIFICATIONS (Continued)

B. Fund Balances

FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23
Nonspendable Fund Balance:

Prepaid Expenditures 180$ 26$ 22$ 27$ 18$ Supplies 13 19 19 14 13 Long-Term Recei vabl e 932 633 527 134 58 Advance - Publ i c Safety Impact Fee (Fi re) 641 304 - - - Advance - Public Facility Impact Fee (Library) 126 98 60 26 - Advance - Measure R - Regi onal 967 1,284 - - - Advance - Measure R - Trailways 1,292 844 522 392 2,367 A dvance - Spe cial Se rvice Districts 899 931 963 971 1,042 Advance - CHFA 1 - - - - Advance - Transportation Grants - 300 - - - Advance - Airport 44 944 1,367 - - Nonspendable Fund Balance Total 5,095 5,383 3,480 1,564 3,498 Committed Fund Balance:

Emergency Reserve 15,182 15,953 16,407 17,402 19,023 Misce llane ous Capital Proje cts 162 286 202 156 1,782 Committed Fund Balance Total 15,344 16,239 16,609 17,558 20,805 Assigned Fund Balance:

Custodial Fund Advance - Atwood District 77 75 76 75 76 Custodial Fund Advance - Laura District 37 36 36 38 38 Due from - Community Development - 2 5 - 211 Due from - Public Facility Im pact Fe e (L ibrary) 2 Due from - Golf Course - 6 - - - CIP Budgeted not started 2,551 3,219 3,961 3,522 4,731 Cal PERS Unfunded Liability Payment 6,863 10,166 11,120 12,227 11,000 Successor Agency 11,717 12,069 12,431 12,077 11,910 Assigned Fund Balance Total 21,245 25,573 27,629 27,939 27,968 Unassigned Fund Balance:

Unassigned 9,753 5,497 5,428 6,731 3,142 Unassigned Fund Balance Total 9,753 5,497 5,428 6,731 3,142 Total Fund Balance 51,437$ 52,692$ 53,146$ 53,792$ 55,413$

CITY OF VISALIA

SCHEDULE OF FUND BALANCE - GENERAL FUND
(In Thousands)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

91 Notes to the Financial Statements
NOTE 9 - FUND BALANCE AND NET POSITION CLASSIFICATIONS (Continued)

C. Fund Balance and Net Position Deficits

The following funds had deficit fund balances or net position at June 30, 20 23. Future revenues, future charges 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, 2023 :

Special Revenue Funds:

Measure R Regi onal 724,165$
Debt Service Funds:

VPFA 2014 Re funding Ce rtificate s of Participation 1,449$ 2015 Ce rtificate s of Participation 11,425$
Fiduciary Funds:

Successor Agency 10,016,334$
Internal Servi ces:

Fl eet Servi ces 570,907$
Compensated Absences 111,189$
Governmental
A ctivitie s
Business-Type
A ctivitie s Total
Capital Assets, net of
accumulated depreciation and amortization 376,347,952$ 364,106,463$ 740,454,415$ Less: outstanding principal on capital related debt (7,533,279) (91,330,046) (98,863,325) L e ss: outstanding le ase s liability (678,803) - (678,803) L e ss: outstanding SBITA le ase liability (731,792) (64,915) (796,707) Net Investment in Capital Assets 367,404,078$ 272,711,502$ 640,115,580$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

92 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS

A. General Information about the Pension Plans

Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City of Visalia separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple -employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City of Visalia resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

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

Miscellaneous
Hire date
Prior to
May 9, 2008
May 10, 2008
through
May 20, 2011
May 21, 2011
through December
31, 2012
January 1, 2013
through current
Benefit formula 3% @ 60 2.5% @ 55 2.0% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 50 52
Monthly benefits, as a % of eligible compensation 2.0% to 3.0% 2.0% to 2.5% 1.09% to 2.42% 1.0% to 2.5% Required employee contribution rates 8% 8% 7% 7.25%
Required employer contribution rates 10.470% 10.470% 10.470% 10.470% Unfunded Liability Contribution
% of Payroll (illustrative only) 20.695% 20.695% 20.695% 20.695% Hire date
Prior to
February 26, 2011
February 27, 2011
through December
31, 2012
January 1, 2013
through current
Benefit formula 3% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9% 9% 13.50%
Required employer contribution rates 20.280% 20.280% 20.280% Unfunded Liability Contribution
% of Payroll (illustrative only) 24.985% 24.985% 24.985% Safety

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

93 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, 202 1, the following employees were covered by the benefit terms for each Plan:

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

B. Net Pension Liability

The City ’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 22, using an annual actuarial valuation as of June 30, 20 21 rolled forward to June 30, 20 22 using standard update procedures.

A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The total pension liabilities in the June 30, 202 1 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 490 250 Inacti ve empl oyees enti tl ed to but not yet recei vi ng benefi ts 343 128 Acti ve empl oyees 380 222
Total 1,213 600

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

94 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 21 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. 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 . Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building -block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Change of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long -term market return expectations as well as the expected pension fund cash flows.

Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Misce llane ous Safety
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 2022
Actuarial Cost Method Entry-Age Actuarial Cost Method Entry-Age Actuarial Cost Method Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
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 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% 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 2021 C alPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates inc lude gener ational mor tality impr ov ement using 8 0 % of Sc ale M P -2 0 2 0 published by the Soc iety 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 r epor t fr om November 2021 that can be found on the CalPERS website.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

95 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 6 .90% for each Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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 were reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

A sset Class 1
A ssumed A sset
A llocation Real Return 1,2
Global Equity - Cap-Weighted 30.0% 4.54%
Global Equity - Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage Backed Securi ti es 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yie ld 5.0% 2.27%
Emergi ng Market Debt 5.0% 2.48%
Pri vate Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

96 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, 2021 $260,301,200 $212,210,603 $48,090,597 Changes in the year:

Servi ce cost 4,868,837 - 4,868,837 Interest on the total pension liability 17,957,207 - 17,957,207 Di fferences between actual and expected experi ence (4,315,154) - (4,315,154) Changes in assumptions 8,329,382 - 8,329,382 Contribution - employer - 8,224,129 (8,224,129) Contribution - employee - 1,923,874 (1,923,874) Net i nvestment i ncome - (16,135,131) 16,135,131 Admi ni strati ve expenses - (132,195) 132,195 Benefit payments, including refunds of employee
contributions (13,000,942) (13,000,942) -
Net changes 13,839,330 (19,120,265) 32,959,595
Balance at June 30, 2022 $274,140,530 $193,090,338 $81,050,192 Safety Plan:

Increase (Decrease)
Total Pension
L iability
Plan Fiduciary
Net Position
Net Pensi on
L iability/(A sse t)
Balance at June 30, 2021 $273,323,113 $239,810,017 $33,513,096 Changes in the year:

Servi ce cost 7,271,834 - 7,271,834 Interest on the total pension liability 19,359,561 - 19,359,561 Di fferences between actual and expected experi ence (2,751,520) - (2,751,520) Changes in assumptions 12,387,796 - 12,387,796 Contribution - employer - 10,480,584 (10,480,584) Contribution - employee - 2,430,715 (2,430,715) Net i nvestment i ncome - (18,360,033) 18,360,033 Admi ni strati ve expenses - (149,387) 149,387 Benefit payments, including refunds of employee
contributions (12,043,905) (12,043,905) -
Net changes 24,223,766 (17,642,026) 41,865,792
Balance at June 30, 2022 $297,546,879 $222,167,991 $75,378,888

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

97 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 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, 202 3, the City of Visalia recogniz ed pension expense of $ 20,188,815 ($8,762,828 related to the Miscellaneous Plan and $11, 425,987 related to the Safety Plan) . At June 30, 2023, 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 5.90% 5.90% 5.90%
N e t Pe nsion L iability $118,043,779 $119,907,870 $237,951,649 Current Discount Rate 6.90% 6.90% 6.90%
N e t Pe nsion L iability $81,050,192 $75,378,888 $156,429,080 1% Increase 7.90% 7.90% 7.90%
N e t Pe nsion L iability $50,568,653 $39,331,590 $89,900,243 Miscellaneous Plan:

Deferred Outfl ows Deferred Infl ows
of Resources of Resources
Pension contributions subsequent to measurement date $9,081,064 -$ Di fferences between expected and actual experi ence - (3,346,675) Changes in assumptions 5,949,559 -
Net differences between projected and actual earnings
on plan investments 9,695,101 -
Total $24,725,724 ($3,346,675)

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

98 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)

D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

$20,298,068 ($9,081,064 related to the Miscellaneous Plan and $11,217,004 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 4. 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 2 is 3.5 years, which was obtained by dividing the total service years of 4,268 (the sum of remaining service lifetimes of the active employees ) by 1,213 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Expected Average Remaining Service Lifetime (EARSL) – Safety Plan – The EARSL for the plan for the measurement period ending June 30, 202 2 is 4.9 years, which was obtained by dividing the total service years of 2,931 (the sum of remaining service lifetimes of the active employees) by 600 (the total number of participants:
active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Safety Plan:

Deferred Outfl ows Deferred Infl ows
of Resources of Resources
Pension contributions subsequent to measurement date $11,217,004 -$ Di fferences between expected and actual experi ence 672,525 (2,638,610) Changes in assumptions 9,859,674 -
Net differences between projected and actual earnings
on plan investments 11,273,070 -
Total $33,022,273 ($2,638,610)
Grand Total $57,747,997 ($5,985,285)
Measurement Measurement
Periods Ending Annual Periods Ending Annual
June 30 Amortization June 30 Amortization
2023 $2,425,020 2023 $4,024,138
2024 2,499,215 2024 3,491,217
2025 1,240,225 2025 2,898,163
2026 6,133,525 2026 8,753,141
Total $12,297,985 Total $19,166,659
Safety Plan:Miscellaneous Plan:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

99 Notes to the Financial Statements
NOTE 10 - EMPLOYEE BENEFITS (Continued)

E. Liquidating Net Pension Liability

The net pension 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 pla n. At June 30, 2023, it is distributed 5 5% to governmental activities and 45 % to business -type activities. The net pension liability, and related components for the safety plan are distributed 100% to the governmental activities.

F. Payable to the Pension Plan

At June 30, 2023 , the City did not report a payable for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023 as there were none outstanding.

G. Deferred Compensation Plan

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

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

The City has a contract with 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, 2023 , 46 retirees are participating in the City’s health plan at full cost. Of these retirees 16 have dependent coverage. The full cost is up to $1, 225 per month for retiree and is up to an additional $1,225 for their spouse. Family coverage is also available for an additional $ 613 per month for a total family PPO premium up to $3,063 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 $994 per month for the retiree and an additional $9 94 for spouse. Family coverage is available for a total of $2,484 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, 2023

100

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.

Three retirees qualified for the 202 3 reduced rate, all are enrolled as retirees only. The retiree cost is up to $ 722 per month with the City subsidizing up to $1,028 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 2022-2023, the City’s Retiree Health Care Contribution was approximately $118,084.

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 insurance pool, Excess Insurance Authority – Health (EIA – Health) which in turn participates in a larger pool, Self -Insured Schools of California (SISC). The insurance pool is responsible for maintaining a reserve for incurred but not reported claims. The City retains an equity share in the assets and liabilities of both pools.

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

Historically, 2 months of claims remain in the system at any given time. T he City calculated the estimated incurred but not reported (IBNR) claims 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 $55 ,000,000 ultimate net loss per occurrence. The City retains the risk for the first $1,000,000 in losses for each occurrence under this policy.

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

The City’s deposits with ACCEL are calculated based on the ratio of the City’s payroll to the total payrolls of all entities, the losses of all members and the City’s experience rate. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

101

Notes to the Financial Statements
NOTE 11 – RISK MANAGEMENT (Continued)

A. Coverage (Continued)

During the fiscal year ended June 30, 202 3, the City contributed $ 1,762,677 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 reasonably determinable. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

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

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

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

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 3, the City had made commitments of approximately $ 37.5 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 audits; however, these programs are still subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Beginning Current Year End
of Year Claims & Changes Claim of Year Due Within
L iability in Estimates Payments L iability One Year
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 2022-23 8,022,206 1,445,135 (1,174,409) 8,292,932 2,107,818

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

102

Notes to the Financial Statements
NOTE 13 – PRIOR PERIOD ADJUSTMENTS

NOTE 14 – TRANSACTIONS WITH RELATED PARTIES

The related party transactions of the City are summarized as follows:

NOTE 15 – 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 remaining terms of these arrangements range from 2 to 29 years with the calculated interest rates used ranging from .20% to 2 .40% depending on the length of the lease. For the year ended June 30, 202 3, the City’s governmental funds recognized $166,254 in lease revenue and $30,749 in lease interest revenue.

For proprietary funds, leased property includes buildings, office space, and land. The remaining terms of these arrangements range from 1 to 35 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, 202 3, the City’s proprietary funds recognized $467,209 in lease revenue and $86,769 in lease interest revenue.

Government-wide
Financial Statements
Governmental
Activities
Net position at July 1, 2022 as previously reported 585,567,416$ Adjustment due to GASB 96 Implementation 261,525
Net position at July 1, 2022, as restated 585,828,941$
Internal Service
Funds
Information Services
Net position at July 1, 2022 as previously reported 7,640,880$ Adjustment due to GASB 96 Implementation 261,525
Net position at July 1, 2022, as restated 7,902,405$
Other Related Party Transactions Related Parties Purpose Amount for
the Year Ended
June 30, 2023
Downtown Visalians City Council Member Business tax surcharge (passthrough) 198,950$ Downtown Visalians City Council Member Security, cleaning services and misc. 60,356 Total 259,306
Downtown Visalia Property
Owners A ssociation City Council Member
Property Based Improvement Di stri ct
(passthrough) 550,000
Downtown Visalia Property
Owners A ssociation City Council Member Parking fund revenue match (39,193) Total 510,807
Total Related Party Transactions 770,113$

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

103

Notes to the Financial Statements
NOTE 15 – LEASES RECEIVABLE (Continued)

A. Current Year Transactions and Balances

A summary of the changes in lease receivables for the fiscal year ended June 30, 202 3 is as follows:

B. Scheduled Lease Receivables Due

Lease receivables are due in the upcoming years is as follows:

C. Deferred Inflows of Resources – Leases

Lease revenue to be recognized in the upcoming years is as follows:

Balance at Balance at Due Within Due in More Than
June 30, 2022 Additions Deletions June 30, 2023 One Year One Year Governmental Lease Receivable Activities
General Fund 532,649$ $ 70,169 (57,285)$ $ 545,533 $ 87,389 458,144$ Golf Course 1,365,261 - (75,874) 1,289,387 71,147 1,218,240 Parking District 143,972 - (1,437) 142,535 5,119 137,416 Total Governmental Activities 2,041,882$ 70,169$ (134,596)$ 1,977,455$ 163,655$ 1,813,800$ Business-Type Leae Receivable Activities
Transit 178,708$ $ 10,376 (46,965)$ $ 142,119 $ 48,389 93,730$ Airport 5,949,243 37,001 (420,286) 5,565,958 394,684 5,171,274 Total Business-Type Activities 6,127,951$ 47,377$ (467,251)$ 5,708,077$ 443,073$ 5,265,004$ For the Year
Ending June 30, Principal Interest Total Principal Interest Total 2024 163,655$ 30,368$ 194,023$ 443,073$ 77,231$ 520,304$ 2025 130,729 26,128 156,857 433,733 72,547 506,280 2026 132,572 24,285 156,857 404,753 68,014 472,767 2027 128,952 22,421 151,373 313,653 63,659 377,312 2028 122,374 20,612 142,986 195,263 60,363 255,626 2029-2033 662,840 74,916 737,756 972,603 257,944 1,230,547 2034-2038 558,645 24,877 583,522 981,055 185,169 1,166,224 2039-2043 24,993 5,541 30,534 866,963 112,537 979,500 2044-2048 27,195 3,339 30,534 559,485 59,830 619,315 2049-2053 25,500 962 26,462 254,098 31,061 285,159 2054-2058 - - - 271,992 11,284 283,276 2059-2063 - - - 11,406 32 11,438 1,977,455$ 233,449$ 2,210,904$ 5,708,077$ 999,671$ 6,707,748$ Governmental Activities Business-Type Activities

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

104

Notes to the Financial Statements
NOTE 15 – LEASES RECEIVABLE (Continued)

C. Deferred Inflows of Resources – Leases (Continued)

Business-Type Activities
For the Year
Ending June 30,
Deferred Inflows of Resources
to be Reognized
Deferred Inflows of Resources
to be Reognized
2024 166,254$ 456,479$
2025 147,379 451,114
2026 147,379 442,188
2027 142,068 345,029
2028 133,953 213,233
2029-2033 645,517 1,024,473 2034-2038 465,564 963,219 2039-2043 23,243 801,622 2044-2048 23,243 494,710 2049-2053 20,144 218,494 2054-2058 - 217,051 2059-2063 - 8,759 1,914,744$ 5,636,371$
Governmental Activities
105

REQUIRED

SUPPLEMENTARY

INFORMATION
(Unaudited)

106

107

City of Visalia
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2023

Budget and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

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

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

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

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 these types of funds.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 202 3, 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.

108

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2023

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 44,473,700$ 44,473,700$ 47,866,077$ 3,392,377$ Property 29,553,000 29,553,000 31,768,558 2,215,558 Transient Occupancy 3,898,500 3,898,500 4,533,774 635,274 Franchise 2,879,800 2,879,800 3,706,843 827,043 Business License 3,149,400 3,149,400 3,440,074 290,674 Total Taxes 83,954,400 83,954,400 91,315,326 7,360,926 Subventions and Grants
Police and Other 498,000 1,783,955 1,621,780 (162,175) Motor Vehicle License In-Lieu 105,800 105,800 145,646 39,846 Total Subventions and Grants 603,800 1,889,755 1,767,426 (122,329) License and Permits
Other License and Permits 60,000 60,000 89,404 29,404 Total License and Permits 60,000 60,000 89,404 29,404 Fees and Fines
Vehicle Code and Parking Violations 456,800 456,800 514,838 58,038 Local Ordinance Violations 434,200 434,200 681,691 247,491 Total Fees and Fines 891,000 891,000 1,196,529 305,529 Use of Money and Property
Interest Earned 631,900 631,900 706,646 74,746 Rents and Concessions 326,300 326,300 340,861 14,561 Total Use of Money and Property 958,200 958,200 1,047,507 89,307 Charges for Services
Engineering and Subdivision Fees 1,137,000 1,137,000 992,317 (144,683) Zoning Fees 252,700 252,700 311,641 58,941 Special Public Safety Services 1,301,900 1,301,900 1,511,480 209,580 Recreation Programs 1,443,800 1,443,800 641,899 (801,901) Total Charges for Services 4,135,400 4,135,400 3,457,337 (678,063) Other Revenue 1,096,000 1,096,000 1,544,107 448,107 Total Revenues 91,698,800 92,984,755 100,417,636 7,432,881 Budgeted Amounts
109

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (Continued) FOR THE YEAR ENDED JUNE 30, 2023

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

General Government 4,218,000$ 4,249,308$ 4,132,396$ 116,912$ Community Development 2,966,600 2,966,600 3,030,538 (63,938) Public Safety:

Fire 16,030,800 16,028,096 17,475,323 (1,447,227) Police 38,850,700 39,236,855 37,193,386 2,043,469 Public Works 5,497,000 5,482,438 4,841,109 641,329 Community Services 9,830,100 9,583,149 7,179,557 2,403,592 Capital Outlay 1,662,000 4,258,877 3,946,113 312,764 Debt Service (Note 7)
Principal 32,600 32,600 760,872 (728,272) Interest and Fiscal Charges 500 500 35,218 (34,718) Total Expenditures 79,088,300 81,838,423 78,594,512 3,243,911 Excess (Deficiency) of
Revenues Over (Under) Expenditures 12,610,500 11,146,332 21,823,124 10,676,792 Other Financing Sources (Uses)
Proceeds From Sale of Capital Assets - - 975 975 Issuance of Debt - Leases Acquired - - 73,497 73,497 Transfers Out (5,253,400) (5,253,400) (20,276,501) (15,023,101) Total Other Financing Sources (Uses) (5,253,400) (5,253,400) (20,202,029) (14,948,629) Net Change in Fund Balance 7,357,100$ 5,892,932$ 1,621,095 (4,271,837)$ Fund Balance Beginning of Year 53,792,320
Fund Balance - End of Year 55,413,415$
Budgeted Amounts
110

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - MEASURE N FUND
FOR THE YEAR ENDED JUNE 30, 2023

REVENUES
Original
Budget
Final
Budget Actual
Variance With
Final Budget
Taxes
Sales 19,283,800$ 19,283,800$ 19,487,895$ 204,095$
Total Taxes 19,283,800 19,283,800 19,487,895 204,095 Subventions and Grants
Police and Other - - 16,092 16,092 Total Subventions and Grants - - 16,092 16,092 Use of Money and Property
Interest Earned 228,000 228,000 382,638 154,638 Total Use of Money and Property 228,000 228,000 382,638 154,638 Charges for Current Services - - 8,857 8,857 Other Revenue - - 51,247 51,247 Total Revenues 19,511,800 19,511,800 19,946,729 434,929

EXPENDITURES
Current:

General Government 1,945,200 1,945,200 271,392 1,673,808 Public Safety:

Fire 1,642,400 1,642,400 1,559,712 82,688 Police 5,588,100 5,588,100 5,913,995 (325,895) Community Services 861,200 858,335 830,058 28,277 Capital Outlay 3,774,400 12,434,973 12,054,479 380,494 Total Expenditures 13,811,300 22,469,008 20,629,636 1,839,372 Excess (Deficiency) of
Revenues Over (Under) Expenditures 5,700,500 (2,957,208) (682,907) 2,274,301 Net Change in Fund Balance 5,700,500$ (2,957,208)$ (682,907) 2,274,301$ Fund Balance Beginning of Year 37,268,500
Fund Balance - End of Year 36,585,593$
Budgeted Amounts
111

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants 6,315,900$ 7,783,844$ 5,716,466$ (2,067,378)$ Fees and Fines 5,000 5,000 15,959 10,959 Uses of Money and Property 64,850 64,850 41,999 (22,851) Charges for Current Services - - 5,000 5,000 Miscellaneous 5,500 5,500 10,603 5,103 Total Revenues 6,391,250 7,859,194 5,790,027 (2,069,167) Expenditures
Current:

Community Development 82,800 82,800 91,502 (8,702) Housing & Community Grants 1,037,400 1,508,021 2,636,632 (1,128,611) Capital Outlay 5,267,600 1,894,438 1,882,971 11,467 Total Expenditures 6,387,800 3,485,259 4,611,105 (1,125,846) Excess (Deficiency) of
Revenue Over (Under) Expenditures 3,450 4,373,935 1,178,922 (3,195,013) Other Financing Sources
Sale of Land - - 172,669 172,669 Transfers In - - 30,359 30,359 Total Other Financing Sources - - 203,028 30,359 Net Changes in Fund Balance 3,450$ 4,373,935$ 1,381,950 (3,164,654)$ Fund Balance - Beginning of Year 16,044,499
Fund Balance - End of Year 17,426,449$

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - HOUSING & COMMUNITY GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2023
Budgeted Amounts
112

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants 309,900$ 309,900$ -$ (309,900)$ Uses of Money and Property 8,000 8,000 (3,416) (11,416) Miscellaneous - 728 728
Total Revenues 317,900 317,900 (2,688) (320,588) Expenditures
Current:

General Government 34,000 34,000 114,030 (80,030) Captial Outlay 1,100,000 - - - Total Expenditures 1,134,000 34,000 114,030 (80,030) Excess (Deficiency) of
Revenue Over (Under) Expenditures (816,100) 283,900 (116,718) (400,618) Net Changes in Fund Balance (816,100)$ 283,900$ (116,718) (400,618)$ Fund Balance - Beginning of Year 10,585,193
Fund Balance - End of Year 10,468,475$

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - HOUSING SUCCESSOR AGENCY FUND FOR THE YEAR ENDED JUNE 30, 2023
Budgeted Amounts
113

Original and
Final
Budget Actual
Variance With
Final Budget
Revenues
Subventions and Grants -$ 3,572,859$ 3,572,859$ Uses of Money and Property - 686,106 686,106 Miscellaneous - 60 60 Total Revenues - 4,259,025 4,259,025 Expenditures
Current:

Capital Outlay 2,995,631 3,572,859 (577,228) Total Expenditures 2,995,631 3,572,859 (577,228) Excess (Deficiency) of
Revenue Over (Under) Expenditures (2,995,631) 686,166 3,681,797 Net Changes in Fund Balance (2,995,631)$ 686,166 3,681,797$ Fund Balance - Beginning of Year 66,681
Fund Balance - End of Year 752,847$

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - AMERICAN RESCUE PLAN FUND FOR THE YEAR ENDED JUNE 30, 2023

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

114

Required Supplementary Information

Miscellaneous Plan
Measurement Period 2021-22 1 2020-21 1 2019-20 1 2018-19 1

TOTAL PENSION LIABILITY
Service Cost 4,868,837$ 4,395,969$ 4,403,664$ 4,255,037$ Interest 17,957,207 17,627,181 16,958,814 16,380,941 Changes of Benefit Terms - - - - Difference Between Expected and Actual Experience (4,315,154) (88,959) (1,366,753) 2,525,650 Changes of Assumptions 8,329,382 - - - Benefit Payments, Including Refunds of Employee Contributions (13,000,942) (12,115,961) (11,727,761) (10,795,043) Net Change in Total Pension Liability 13,839,330 9,818,230 8,267,964 12,366,585 Total Pension Liability - Beginning 260,301,200 250,482,970 242,215,006 229,848,421 Total Pension Liability - Ending (a) 274,140,530$ 260,301,200$ 250,482,970$ 242,215,006$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 8,224,129$ 7,688,208$ 7,072,583$ 6,219,874$ Contributions - Employee 1,923,874 1,897,359 1,918,767 1,845,020 Net Investment Income (16,135,131) 39,751,521 8,526,757 10,604,879 Benefit Payments, Including Refunds of Employee Contributions (13,000,942) (12,115,961) (11,727,761) (10,795,043) Net Plan to Plan Resource Movement - - - - Administrative Expense (132,195) (174,979) (239,113) (115,502) Other Miscellaneous Income/(Expense)2 - - - 376 Net Change in Fiduciary Net Position (19,120,265) 37,046,148 5,551,233 7,759,604 Plan Fiduciary Net Position - Beginning3 212,210,603 175,164,455 169,613,222 161,853,618 Plan Fiduciary Net Position - Ending (b) 193,090,338$ 212,210,603$ 175,164,455$ 169,613,222$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 81,050,192$ 48,090,597$ 75,318,515$ 72,601,784$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 70.43% 81.53% 69.93% 70.03% Covered Payroll 4 25,571,621$ 25,483,876$ 25,250,366$ 23,916,793$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 316.95% 188.71% 298.29% 303.56% 1 2
3 Includes any begining of year adjustments.
4 Notes to Schedule:

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurment dates 2017 through 2021, 7.65% for measurment dates 2015 through 2016, and 7.50% for measurment date 2014.

Changes of Benefit Terms: 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.

Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022; 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.

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).

Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

115

Required Supplementary Information

Miscellaneous Plan
Measurement Period 2017-18 1 2016-17 1 2015-16 1 2014-15 1 2013-14 1

TOTAL PENSION LIABILITY
Service Cost 4,192,969$ 4,245,437$ 3,786,783$ 3,692,092$ 3,797,356$ Interest 15,535,179 14,997,055 14,571,322 13,839,466 13,175,275 Changes of Benefit Terms - - - - - Difference Between Expected and Actual Experience (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 (10,116,949) (9,515,763) (8,700,574) (8,186,347) (7,668,885) Net Change in Total Pension Liability 7,737,506 19,521,684 10,088,834 5,590,555 9,303,746 Total Pension Liability - Beginning 222,110,915 202,589,231 192,500,397 186,909,842 177,606,096 Total Pension Liability - Ending (a) 229,848,421$ 222,110,915$ 202,589,231$ 192,500,397$ 186,909,842$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 5,482,359$ 5,129,632$ 4,678,278$ 4,077,411$ 3,947,176$ Contributions - Employee 1,850,278 1,781,007 1,733,983 1,747,629 1,809,951 Net Investment Income 12,914,267 15,518,122 742,388 3,174,848 21,053,194 Benefit Payments, Including Refunds of Employee Contributions (10,116,949) (9,515,763) (8,700,574) (8,186,347) (7,668,885) Net Plan to Plan Resource Movement (376) - - - - Administrative Expense (237,501) (206,266) (86,138) (159,136) - Other Miscellaneous Income/(Expense)2 (451,018) - - - - Net Change in Fiduciary Net Position 9,441,060 12,706,732 (1,632,063) 654,405 19,141,436 Plan Fiduciary Net Position - Beginning3 152,412,558 139,705,826 141,337,889 140,683,484 121,542,048 Plan Fiduciary Net Position - Ending (b) 161,853,618$ 152,412,558$ 139,705,826$ 141,337,889$ 140,683,484$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 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 70.42% 68.62% 68.96% 73.42% 75.27% Covered Payroll 4 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 291.78% 305.15% 283.02% 240.09% 223.82% 1 2
3 Includes any begining of year adjustments.
4 Notes to Schedule:

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to

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

The accounting discount rate was 7.15% for measurment dates 2017 through 2021, 7.65% for measurment dates 2015 through 2016, and 7.50% for measurment date 2014.

Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

116

Required Supplementary Information

Safety Plan
Measurement Period 2021-22 1 2020-21 1 2019-20 1 2018-19 1

TOTAL PENSION LIABILITY
Service Cost 7,271,834$ 6,473,248$ 6,324,588$ 6,222,413$ Interest 19,359,561 18,396,919 17,437,680 16,600,696 Changes of Benefit Terms - - - - Difference Between Expected and Actual Experience (2,751,520) 403,302 (1,240,319) 3,326,073 Changes of Assumptions 12,387,796 - - - Benefit Payments, Including Refunds of Employee Contributions (12,043,905) (11,219,989) (10,427,951) (9,427,686) Net Change in Total Pension Liability 24,223,766 14,053,480 12,093,998 16,721,496 Total Pension Liability - Beginning 273,323,113 259,269,633 247,175,635 230,454,139 Total Pension Liability - Ending (a) 297,546,879$ 273,323,113$ 259,269,633$ 247,175,635$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 10,480,584$ 10,044,602$ 8,928,558$ 8,085,201$ Contributions - Employee 2,430,715 2,349,763 2,142,637 2,172,900 Net Investment Income (18,360,033) 44,537,546 9,341,900 11,443,404 Benefit Payments, Including Refunds of Employee Contributions (12,043,905) (11,219,989) (10,427,951) (9,427,686) Net Plan to Plan Resource Movement - - - - Administrative Expense (149,387) (194,086) (260,195) (123,040) Other Miscellaneous Income/(Expense)2 - - - 400 Net Change in Fiduciary Net Position (17,642,026) 45,517,836 9,724,949 12,151,179 Plan Fiduciary Net Position - Beginning3 239,810,017 194,292,181 184,567,232 172,416,053 Plan Fiduciary Net Position - Ending (b) 222,167,991$ 239,810,017$ 194,292,181$ 184,567,232$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 75,378,888$ 33,513,096$ 64,977,452$ 62,608,403$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 74.67% 87.74% 74.94% 74.67% Covered Payroll 4 22,374,873$ 21,898,673$ 21,060,898$ 20,360,634$ Plan Net Pension Liability/(Asset) as a
Percentage of Covered Payroll 336.89% 153.04% 308.52% 307.50% 1 2
3 Includes any begining of year adjustments.
4 Notes to Schedule:

7.15% for measurment dates 2017 through 2021, 7.65% for measurment dates 2015 through 2016, and 7.50% for measurment date 2014.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

117

Required Supplementary Information

Safety Plan
Measurement Period 2017-18 1 2016-17 1 2015-16 1 2014-15 1 2013-14 1

TOTAL PENSION LIABILITY
Service Cost 5,995,204$ 5,853,759$ 5,349,411$ 5,222,479$ 5,100,652$ Interest 15,464,636 14,715,002 14,186,919 13,269,691 12,494,891 Changes of Benefit Terms - - - - - Difference Between Expected and Actual Experience (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 (8,593,404) (8,040,046) (7,578,069) (7,169,237) (6,653,993) Net Change in Total Pension Liability 11,028,049 20,903,583 12,766,184 7,439,562 10,941,550 Total Pension Liability - Beginning 219,426,090 198,522,507 185,756,323 178,316,761 167,375,211 Total Pension Liability - Ending (a) 230,454,139$ 219,426,090$ 198,522,507$ 185,756,323$ 178,316,761$

PLAN FIDUCIARY NET POSITION
Contributions - Employer 7,221,051$ 6,623,640$ 6,259,154$ 5,610,391$ 5,703,922$ Contributions - Employee 1,924,202 1,846,297 1,750,054 1,805,168 1,618,205 Net Investment Income 13,555,587 15,911,405 717,302 3,141,564 20,530,453 Benefit Payments, Including Refunds of Employee Contributions (8,593,404) (8,040,046) (7,578,069) (7,169,237) (6,653,993) Net Plan to Plan Resource Movement (400) - (9,962) - - Administrative Expense (247,809) (210,978) (86,447) (159,587) - Other Miscellaneous Income/(Expense)2 (470,593) - - - - Net Change in Fiduciary Net Position 13,388,634 16,130,318 1,052,032 3,228,299 21,198,587 Plan Fiduciary Net Position - Beginning3 159,027,419 142,897,101 141,845,069 138,616,770 117,418,183 Plan Fiduciary Net Position - Ending (b) 172,416,053$ 159,027,419$ 142,897,101$ 141,845,069$ 138,616,770$ PLAN NET PENSION LIABILITY/(ASSET) - ENDING (a)-(b) 58,038,086$ 60,398,671$ 55,625,406$ 43,911,254$ 39,699,991$ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 74.82% 72.47% 71.98% 76.36% 77.74% Covered Payroll 4 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 297.01% 321.65% 289.70% 236.59% 228.64% 1 2
3 Includes any begining of year adjustments.
4 Notes to Schedule:

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to

The accounting discount rate was 7.15% for measurment dates 2017 through 2021, 7.65% for measurment dates 2015 through 2016, and 7.50% for measurment date 2014.

Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years information will be displayed as it becomes available.

CITY OF VISALIA

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED:

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

118

Required Supplementary Information

Miscellaneous Plan
Fiscal Year
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll1
Contributions as a
Percentage of
Covered Payroll
2022-23 9,081,064$ (9,081,064)$ -$ 29,149,782$ 31.15% 2021-22 8,224,129 (8,224,129) - 25,571,621 32.16% 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 Year
Actuarially
Determined
Contribution
(ADC)
Contributions in
Relation to the
ADC
Contribution
Deficiency
(Excess) Covered Payroll1
Contributions as a
Percentage of
Covered Payroll
2022-23 11,217,004$ (11,217,004)$ -$ 24,791,423$ 45.25% 2021-22 10,480,454 (10,480,454) - 22,374,873 46.84% 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 Notes to Schedule
Actuarial Cost Method Entry Age Actuarial Cost Method.

Amortization Method/Period For details, see June 30, 2019 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2019 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.

Fiscal year ended June 30, 2023 covered payroll is based on PERSable income during fiscal year 2022-23. Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022; 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
119

SUPPLEMENTARY

INFORMATION

120

121

Original
Budget
Final
Budget Actual
Variance With
Final Budget
Revenues
Fees and Fines 6,263,100$ 6,263,100$ 5,168,798$ (1,094,302)$ Uses of Money and Property 100,000 100,000 265,166 165,166 Miscellaneous - - 14 14 Total Revenues 6,363,100 6,363,100 5,433,978 (929,122) Expenditures
Current:

Public Works 35,300 35,300 43,355 (8,055) Capital Outlay 6,979,200 1,833,775 347,650 1,486,125 Total Expenditures 7,014,500 1,869,075 391,005 1,478,070 Excess (Deficiency) of
Revenue Over (Under) Expenditures (651,400) 4,494,025 5,042,973 548,948 Net Changes in Fund Balance (651,400)$ 4,494,025$ 5,042,973 548,948$ Fund Balance - Beginning of Year 19,496,225
Fund Balance - End of Year 24,539,198$

CITY OF VISALIA

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - TRANSPORTATION - CAPITAL PROJECT FUND FOR THE YEAR ENDED JUNE 30, 2023
Budgeted Amounts

122

Original and
Final
Budget Actual
Variance With
Final Budget
Revenues
Uses of Money and Property -$ 513,411$ 513,411$ Miscellaneous - 59 59 Total Revenues - 513,470 513,470 Expenditures
Current:

General Government - 13,458 (13,458) Capital Outlay 955,179 955,179 - Total Expenditures 955,179 968,637 (13,458) Excess (Deficiency) of
Revenue Over (Under) Expenditures (955,179) (455,167) 500,012 Other Financing Sources
Transfers In - 9,918,553 9,918,553 Total Other Financing Sources - 9,918,553 9,918,553 Net Changes in Fund Balance (955,179)$ 9,463,386 10,418,565$ Fund Balance - Beginning of Year 47,004,424
Fund Balance - End of Year 56,467,810$

CITY OF VISALIA

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - CIVIC CENTER - CAPITAL PROJECT FUND FOR THE YEAR ENDED JUNE 30, 2023
123

NON- MAJOR GOVERNMENTAL FUNDS

124

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

125

Non-Major Governmental Funds

SPECIAL REVENUE FUNDS

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

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

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

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

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

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

NARCOTICS FORFEITURE
Established to account for 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 funds are forfeited 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 provided by 60% of the ¼ cent sales tax ballot measure (T) approved by voters during the March 2, 2004, primary election. No sales tax funds can replace General Fund dollars budgeted for normal operations at the previous years’ service level unless the City Council declares an economic emergency by a 4/5
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
Established to account for the costs of specific transportation projects and for its funding from a ¼ cent sales tax ballot measure (R) approved by the voters for regional, transit, bike and pedestrian projects.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

126

Non-Major Governmental Funds

TRANSPORTATION GRANTS
Established to account for the financing and construction of streets, roads, and various transportation infrastructure and facilities. Funding is provided by ¼ cent of the 7 ¼ cent retail sales tax collected statewide and by Proposition 1B funds for streets and transit.

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 (Certified Access Specialist)
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 for new developments.

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

127

Non-Major Governmental Funds

PUBLIC SAFETY IMPACT FEE
Established to defray the costs of public safety facilities needed as a result of new development projects. Funding is provided by fees charged to new developments.

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 for 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.

REGIONAL PARKS
Established to account for the construction of regional parks.

VEHICLE MILES TRAVELED IMPACT FEE
Established to account for the financing and development of active transportation projects that are multi -modal and reduce vehicle miles traveled. Projects can include trails, bike lanes, sidewalks, and transit. Funding is provided by a fee charged to projects whose Vehicles Miles Traveled (VMT) falls below the City’s established VMT threshold, and required to mitigate impacts.

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.

128

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2023

Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Maintenance
Special
S ervic e
Districts
ASSETS
Cash and Investments 4,075,187$ 3,727,749$ 689,207$ 15,244,095$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 160,552 93,005 34,072 - Lease Receivable - - - - Taxes Receivable - 189,621 - 128,369 Notes and Loans Receivable 155,554 - - - Inventory - 85,031 - - Due from Other Governmental Units - - - - Total Assets 4,391,293$ 4,095,406$ 723,279$ 15,372,464$

LIABILITIES
Accounts, Interest and Contracts Payable 21,428$ 50,280$ -$ 346,251$ Due to Other Funds - - - - Advance from Other Funds - - - 1,042,029 Customer Deposits - - - - Unearned Revenue - 85,031 - - Total Liabilities 21,428 135,311 - 1,388,280

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 130,920 940 - - Leases - - - - Total Deferred Inflows of Resources 130,920 940 - -

FUND BALANCES
Restricted 4,238,945 3,959,155 723,279 13,984,184 Committed - - - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 4,238,945 3,959,155 723,279 13,984,184 4,391,293$ 4,095,406$ 723,279$ 15,372,464$

SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

129

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police
ASSETS
Cash and Investments 689,958$ 115,122$ 748,247$ 7,046,705$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 9,614 1,238 - 7,642 Lease Receivable - - - - Taxes Receivable - - - 965,757 Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 699,572$ 116,360$ 748,247$ 8,020,104$

LIABILITIES
Accounts, Interest and Contracts Payable -$ 9,932$ 8$ -$ Due to Other Funds - - - Advance from Other Funds - - - - Customer Deposits - - 273,103 - Unearned Revenue - - 425,515 - Total Liabilities - 9,932 698,626 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 9,614 - - - Leases - - - - Total Deferred Inflows of Resources 9,614 - - -

FUND BALANCES
Restricted 689,958 106,428 49,621 8,020,104 Committed - - - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 689,958 106,428 49,621 8,020,104 699,572$ 116,360$ 748,247$ 8,020,104$

SPECIAL REVENUE FUNDS
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

130

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants
ASSETS
Cash and Investments 5,789,066$ 13,744,785$ -$ 4,412,425$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 2,295 - - - Lease Receivable - - - - Taxes Receivable 643,838 323,759 3,155,095 275,000 Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - 110,776 Total Assets 6,435,199$ 14,068,544$ 3,155,095$ 4,798,201$

LIABILITIES
Accounts, Interest and Contracts Payable 18,487$ 54,538$ 159,753$ 93,650$ Due to Other Funds - - - - Advance from Other Funds - - 2,366,664 - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 18,487 54,538 2,526,417 93,650

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - 1,352,843 - Unavailable Revenue - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - 1,352,843 -

FUND BALANCES
Restricted 6,416,712 14,014,006 - 4,704,551 Committed - - - - Assigned - - - - Unassigned (Deficit) - - (724,165) - Total Fund Balances (Deficit) 6,416,712 14,014,006 (724,165) 4,704,551 6,435,199$ 14,068,544$ 3,155,095$ 4,798,201$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS

131

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Golf
Course
CASP
Program
Oak Tree
Preservation Conservation
ASSETS
Cash and Investments 456,559$ 513,429$ 274,229$ 243,694$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 7,500 - - - Lease Receivable 1,289,387 - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 1,753,446$ 513,429$ 274,229$ 243,694$

LIABILITIES
Accounts, Interest and Contracts Payable 73$ 3,419$ -$ -$ Due to Other Funds - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 73 3,419 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases 1,256,930 - - - Total Deferred Inflows of Resources 1,256,930 - - -

FUND BALANCES
Restricted - 510,010 274,229 - Committed 496,443 - - 243,694 Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 496,443 510,010 274,229 243,694 1,753,446$ 513,429$ 274,229$ 243,694$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

SPECIAL REVENUE FUNDS

132

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

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 244,362$ -$ -$ 5,020$ Restricted Cash and Investments:

Cash Held by Trustee - - 11,242 - Cash Held by City - - - - Accounts Receivable - - - - Lease Receivable - - - - Taxes Receivable - - - - Notes and Loans Receivable - - - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 244,362$ -$ 11,242$ 5,020$

LIABILITIES
Accounts, Interest and Contracts Payable -$ 1,449$ 22,667$ -$ Due to Other Funds - - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue 112,702 - - - Total Liabilities 112,702 1,449 22,667 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - - - - Leases - - - - Total Deferred Inflows of Resources - - - -

FUND BALANCES
Restricted - - - - Committed 131,660 - - 5,020 Assigned - - - - Unassigned (Deficit) - (1,449) (11,425) - Total Fund Balances (Deficit) 131,660 (1,449) (11,425) 5,020 244,362$ -$ 11,242$ 5,020$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

DEBT SERVICE FUNDS

133

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Highway
Users
Recreational
Facilities
Storm Sewer
Construction
Public Safety
Impact Fee
ASSETS
Cash and Investments 10,595,348$ 10,551,815$ 4,505,912$ 1,236,095$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable - 1,842,593 144,847 822,916 Lease Receivable - - - - Taxes Receivable 595,290 - 17,135 - Notes and Loans Receivable - - 4,195 59,890 Inventory - - - - Due from Other Governmental Units 1,473,725 - - - Total Assets 12,664,363$ 12,394,408$ 4,672,089$ 2,118,901$

LIABILITIES
Accounts, Interest and Contracts Payable 307,673$ 24,030$ 2,413$ 19$ Due to Other Funds - - - Advance from Other Funds - - - - Customer Deposits - - - - Unearned Revenue - - - - Total Liabilities 307,673 24,030 2,413 19

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees - 1,842,593 95,804 822,916 Leases - - - - Total Deferred Inflows of Resources - 1,842,593 95,804 822,916

FUND BALANCES
Restricted 12,356,690 10,527,785 4,573,872 1,295,966 Committed - - - - Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 12,356,690 10,527,785 4,573,872 1,295,966 12,664,363$ 12,394,408$ 4,672,089$ 2,118,901$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CAPITAL PROJECT FUNDS

134

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Regional Parks
ASSETS
Cash and Investments 9,096,409$ 3,947,081$ 769,169$ 566,365$ Restricted Cash and Investments:

Cash Held by Trustee - - - - Cash Held by City - - - - Accounts Receivable 924,002 1,073 - - Lease Receivable - 142,535 - - Taxes Receivable - - - - Notes and Loans Receivable 111,446 106,936 - - Inventory - - - - Due from Other Governmental Units - - - - Total Assets 10,131,857$ 4,197,625$ 769,169$ 566,365$

LIABILITIES
Accounts, Interest and Contracts Payable -$ 45$ -$ -$ Due to Other Funds 1,919 - - - Advance from Other Funds - - - - Customer Deposits - 83,598 - - Unearned Revenue - - - - Total Liabilities 1,919 83,643 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - - Unavailable Revenue - Impact Fees 924,002 - - - Leases - 136,361 - - Total Deferred Inflows of Resources 924,002 136,361 - -

FUND BALANCES
Restricted 9,205,936 3,977,621 - - Committed - - - - Assigned - - 769,169 566,365 Unassigned (Deficit) - - - - Total Fund Balances (Deficit) 9,205,936 3,977,621 769,169 566,365 10,131,857$ 4,197,625$ 769,169$ 566,365$ Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

CAPITAL PROJECT FUNDS

135

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (Continued)
JUNE 30, 2023

Vehicle
Miles Traveled
Impact Fee
Animal Control
Reserve Baseball
Total
Non-major
Governmental
Funds
ASSETS
Cash and Investments 26,144$ 247,066$ -$ 99,561,243$ Restricted Cash and Investments:

Cash Held by Trustee - - - 11,242 Cash Held by City - - 375,591 375,591 Accounts Receivable - - 97,255 4,148,604 Lease Receivable - - - 1,431,922 Taxes Receivable - - - 6,293,864 Notes and Loans Receivable - - - 438,021 Inventory - - - 85,031 Due from Other Governmental Units - - - 1,584,501 Total Assets 26,144$ 247,066$ 472,846$ 113,930,019$

LIABILITIES
Accounts, Interest and Contracts Payable -$ -$ 51,600$ 1,167,715$ Due to Other Funds - - - 1,919 Advance from Other Funds - - - 3,408,693 Customer Deposits - - - 356,701 Unearned Revenue - - - 623,248 Total Liabilities - - 51,600 5,558,276

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Grants - - - 1,352,843 Unavailable Revenue - Impact Fees - - - 3,826,789 Leases - - - 1,393,291 Total Deferred Inflows of Resources - - - 6,572,923

FUND BALANCES
Restricted - - - 99,629,052 Committed - - 375,591 1,252,408 Assigned 26,144 247,066 45,655 1,654,399 Unassigned (Deficit) - - - (737,039) Total Fund Balances (Deficit) 26,144 247,066 421,246 101,798,820 26,144$ 247,066$ 472,846$ 113,930,019$

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

136

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023

Waterways
Groundwater
Recharge
Kaweah Lake and
Local Storm
Water
Special
S ervic e
Districts

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 448,809 1,146,442 353,112 - Uses of Money and Property 49,560 43,875 8,824 163,118 Charges for Current Services 308,370 - - 5,609,042 Miscellaneous - - - 7,063 Total Revenues 806,739 1,190,317 361,936 5,779,223

EXPENDITURES
Current:

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

Fire - - - - Police - - - - Public Works 348,448 556,136 21,243 - Community Services - - - 4,225,250 Capital Outlay 277,033 661,581 - 70,032 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 625,481 1,217,717 21,243 4,295,282 Excess (Deficiency) of
Revenues Over (Under) Expenditures 181,258 (27,400) 340,693 1,483,941

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - (300,000) - Total Other Financing Sources (Uses) - - (300,000) - Net Changes in Fund Balances 181,258 (27,400) 40,693 1,483,941 Fund Balances - Beginning of
Year (Deficits) 4,057,687 3,986,555 682,586 12,500,243 Fund Balances (Deficits) - End of Year 4,238,945$ 3,959,155$ 723,279$ 13,984,184$

SPECIAL REVENUE FUNDS

137

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

Northeast
Area
Grant
& Loan
Funds
Narcotics
Forfeiture
Measure T
Police

REVENUES
Sales Taxes -$ -$ -$ 5,861,495$ Other Taxes - - - - Subventions and Grants - 358,702 - 13,240 License and Permits - - - - Fees and Fines - - - - Uses of Money and Property 7,603 1,836 - 73,870 Charges for Current Services - - - - Miscellaneous - 1,355 95,446 52,267 Total Revenues 7,603 361,893 95,446 6,000,872

EXPENDITURES
Current:

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

Fire - - - - Police - 312,258 10,375 4,149,336 Public Works 1,488 - - - Community Services - - - - Capital Outlay 23,463 104,413 44,922 - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 24,951 416,671 55,297 4,149,336 Excess (Deficiency) of
Revenues Over (Under) Expenditures (17,348) (54,778) 40,149 1,851,536

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - (626,107) Total Other Financing Sources (Uses) - - - (626,107) Net Changes in Fund Balances (17,348) (54,778) 40,149 1,225,429 Fund Balances - Beginning of
Year (Deficits) 707,306 161,206 9,472 6,794,675 Fund Balances (Deficits) - End of Year 689,958$ 106,428$ 49,621$ 8,020,104$

SPECIAL REVENUE FUNDS

138

CITY OF VISALIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

Measure T
Fire
Measure R
Local
Measure R
Regional
Transportation
Grants

REVENUES
Sales Taxes 3,907,664$ 4,171,564$ 3,322,198$ -$ Other Taxes - - - - Subventions and Grants - - - 753,563 License and Permits - - - - Fees and Fines - - - - Uses of Money and Property 73,576 125,638 528 43,996 Charges for Current Services 49,055 - - - Miscellaneous 76,479 - 44 200,339 Total Revenues 4,106,774 4,297,202 3,322,770 997,898

EXPENDITURES
Current:

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

Fire 3,098,274 - - - Police - - - - Public Works - 37,010 28,870 1,166 Community Services - - - - Capital Outlay 6,517 546,928 3,967,619 103,580 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 3,104,791 583,938 3,996,489 104,746 Excess (Deficiency) of
Revenues Over (Under) Expenditures 1,001,983 3,713,264 (673,719) 893,152

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out (1,480,000) - - - Total Other Financing Sources (Uses) (1,480,000) - - - Net Changes in Fund Balances (478,017) 3,713,264 (673,719) 893,152 Fund Balances - Beginning of
Year (Deficits) 6,894,729 10,300,742 (50,446) 3,811,399 Fund Balances (Deficits) - End of Year 6,416,712$ 14,014,006$ (724,165)$ 4,704,551$

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, 2023

Golf
Course
CASP
Program
Oak Tree
Preservation Conservation

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - 90,119 - - Subventions and Grants - - - - License and Permits - - - - Fees and Fines 271,341 - 7,320 - Uses of Money and Property 25,635 4,974 2,954 2,626 Charges for Current Services - - - - Miscellaneous - 15 - - Total Revenues 296,976 95,108 10,274 2,626

EXPENDITURES
Current:

General Government - - - - Community Development - 2,415 - - Public Safety:

Fire - - - - Police - - - - Public Works - - - - Community Services 64,694 - 9,378 70 Capital Outlay 29,875 - - - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 94,569 2,415 9,378 70 Excess (Deficiency) of
Revenues Over (Under) Expenditures 202,407 92,693 896 2,556

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 202,407 92,693 896 2,556 Fund Balances - Beginning of
Year (Deficits) 294,036 417,317 273,333 241,138 Fund Balances (Deficits) - End of Year 496,443$ 510,010$ 274,229$ 243,694$

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, 2023

SPECIAL

REVENUE
FUNDS

CAPITAL

PROJECTS
FUNDS
Police Unclaimed
Funds
VPFA 2014
Refunding
Certificates of
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 2,952 - 2,575 12 Charges for Current Services - - - 3,910 Miscellaneous 21,778 - - - Total Revenues 24,730 - 2,575 3,922

EXPENDITURES
Current:

General Government - - 1,320 - Community Development - - - - Public Safety:

Fire - - - - Police 81 - - - Public Works - - - - Community Services - - - 1 Capital Outlay 17,087 - - - Debt Service:

Principal - 107,200 860,829 - Interest and Fiscal Charges - 19,921 290,913 - Total Expenditures 17,168 127,121 1,153,062 1 Excess (Deficiency) of
Revenues Over (Under) Expenditures 7,562 (127,121) (1,150,487) 3,921

OTHER FINANCING SOURCES (USES)
Transfers In - 127,560 1,155,864 - Transfers Out - - - - Total Other Financing Sources (Uses) - 127,560 1,155,864 - Net Changes in Fund Balances 7,562 439 5,377 3,921 Fund Balances - Beginning of
Year (Deficits) 124,098 (1,888) (16,802) 1,099 Fund Balances (Deficits) - End of Year 131,660$ (1,449)$ (11,425)$ 5,020$ DEBT

SERVICE
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, 2023

Highway
Users
Recreational
Facilities
Storm Sewer
Construction
Public Safety
Impact Fee

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants 8,621,289 - - - License and Permits - - - - Fees and Fines - 2,044,246 1,213,067 767,631 Uses of Money and Property 148,733 108,825 51,891 10,750 Charges for Current Services - - - - Miscellaneous 90 1,500 - - Total Revenues 8,770,112 2,154,571 1,264,958 778,381

EXPENDITURES
Current:

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

Fire - - - 2,195 Police - - - 1,082 Public Works 810,306 - 31,869 - Community Services - 25,240 - - Capital Outlay 8,941,342 486,080 1,142,178 3,228 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 9,751,648 511,320 1,174,047 6,505 Excess (Deficiency) of
Revenues Over (Under) Expenditures (981,536) 1,643,251 90,911 771,876

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - (414,151) Total Other Financing Sources (Uses) - - - (414,151) Net Changes in Fund Balances (981,536) 1,643,251 90,911 357,725 Fund Balances - Beginning of
Year (Deficits) 13,338,226 8,884,534 4,482,961 938,241 Fund Balances (Deficits) - End of Year 12,356,690$ 10,527,785$ 4,573,872$ 1,295,966$

CAPITAL PROJECTS 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, 2023

Government
Facilities
Impact Fee
Parking
District
Facility
Improvements Regional Parks

REVENUES
Sales Taxes -$ -$ -$ -$ Other Taxes - - - - Subventions and Grants - 39,193 - - License and Permits - 7,725 - - Fees and Fines 446,485 - - - Uses of Money and Property 95,526 51,707 8,289 6,104 Charges for Current Services - - - - Miscellaneous - - - - Total Revenues 542,011 98,625 8,289 6,104

EXPENDITURES
Current:

General Government 12,476 - 219 162 Community Development - 6,628 - - Public Safety:

Fire - - - - Police - - - - Public Works 2,299 - - - Community Services - - - - Capital Outlay - - - 18 Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 14,775 6,628 219 180 Excess (Deficiency) of
Revenues Over (Under) Expenditures 527,236 91,997 8,070 5,924

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses) - - - - Net Changes in Fund Balances 527,236 91,997 8,070 5,924 Fund Balances - Beginning of
Year (Deficits) 8,678,700 3,885,624 761,099 560,441 Fund Balances (Deficits) - End of Year 9,205,936$ 3,977,621$ 769,169$ 566,365$

CAPITAL PROJECTS 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, 2023

Vehicle
Miles Traveled
Impact Fee
Animal Control
Reserve Baseball
Total
Non-major
Governmental

REVENUES
Sales Taxes -$ -$ -$ 17,262,921$ Other Taxes - - - 90,119 Subventions and Grants - - - 9,785,987 License and Permits - - - 7,725 Fees and Fines 26,144 - - 6,724,597 Uses of Money and Property - 2,663 4,198 1,122,838 Charges for Current Services - - - 5,970,377 Miscellaneous - - 88,383 544,759 Total Revenues 26,144 2,663 92,581 41,509,323

EXPENDITURES
Current:

General Government - 71 - 14,248 Community Development - - - 9,043 Public Safety:

Fire - - - 3,100,469 Police - - - 4,473,132 Public Works - - - 1,838,835 Community Services - - 310,381 4,635,014 Capital Outlay - - 107,757 16,533,653 Debt Service:

Principal - - - 968,029 Interest and Fiscal Charges - - - 310,834 Total Expenditures - 71 418,138 31,883,257 Excess (Deficiency) of
Revenues Over (Under) Expenditures 26,144 2,592 (325,557) 9,626,066

OTHER FINANCING SOURCES (USES)
Transfers In - - 515,065 1,798,489 Transfers Out - - - (2,820,258) Total Other Financing Sources (Uses) - - 515,065 (1,021,769) Net Changes in Fund Balances 26,144 2,592 189,508 8,604,297 Fund Balances - Beginning of
Year (Deficits) - 244,474 231,738 93,194,523 Fund Balances (Deficits) - End of Year 26,144$ 247,066$ 421,246$ 101,798,820$

CAPITAL PROJECTS FUNDS

144

CITY OF VISALIA

NON -MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023

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 464,200 448,809 (15,391) 1,219,500 1,146,442 (73,058) Uses of Money and Property 26,700 49,560 22,860 3,000 43,875 40,875 Charges for Current Services 314,700 308,370 (6,330) - - - Miscellaneous 3,700 - (3,700) - - - Total Revenues 809,300 806,739 (2,561) 1,222,500 1,190,317 (32,183)

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - - - - Public Works 142,800 348,448 (205,648) 298,100 556,136 (258,036) Community Services - - - - - - Capital Outlay 653,861 277,033 376,828 661,581 661,581 - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 796,661 625,481 171,180 959,681 1,217,717 (258,036) Excess (Deficiency) of
Revenues Over (Under) Expenditures 12,639 181,258 168,619 262,819 (27,400) (290,219)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 12,639$ 181,258 168,619$ 262,819$ (27,400) (290,219)$ Fund Balances - Beginning of
Year (Deficits) 4,057,687 3,986,555
Fund Balances - End of Year (Deficits) 4,238,945$ 3,959,155$ Waterways Groundwater Recharge

145

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, 2023

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 334,200 353,112 18,912 - - - Uses of Money and Property 3,000 8,824 5,824 165,000 163,118 (1,882) Charges for Current Services - - - 5,304,900 5,609,042 304,142 Miscellaneous - - - - 7,063 7,063 Total Revenues 337,200 361,936 24,736 5,469,900 5,779,223 309,323

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - - - - Public Works 19,000 21,243 (2,243) - - - Community Services - - - 3,392,700 4,225,250 (832,550) Capital Outlay - - - 90,032 70,032 20,000 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 19,000 21,243 (2,243) 3,482,732 4,295,282 (812,550) Excess (Deficiency) of
Revenues Over (Under) Expenditures 318,200 340,693 22,493 1,987,168 1,483,941 (503,227)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out (300,000) (300,000) - - - - Total Other Financing Sources (Uses) (300,000) (300,000) - - - - Net Changes in Fund Balances 18,200$ 40,693 22,493$ 1,987,168$ 1,483,941 (503,227)$ Fund Balances - Beginning of
Year (Deficits) 682,586 12,500,243
Fund Balances - End of Year (Deficits) 723,279$ 13,984,184$ Kaweah Lake and
Local Storm Water Maintenance Special Service Districts

146

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 512,297 358,702 (153,595) License and Permits - - - - - - Fees and Fines 7,100 - (7,100) - - - Uses of Money and Property 5,000 7,603 2,603 - 1,836 1,836 Charges for Current Services - - - - - - Miscellaneous - - - - 1,355 1,355 Total Revenues 12,100 7,603 (4,497) 512,297 361,893 (150,404)

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - 290,000 312,258 (22,258) Public Works 1,500 1,488 12 - - - Community Services - - - - - - Capital Outlay 23,462 23,463 (1) 105,533 104,413 1,120 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 24,962 24,951 11 395,533 416,671 (21,138) Excess (Deficiency) of
Revenues Over (Under) Expenditures (12,862) (17,348) (4,486) 116,764 (54,778) (171,542)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (12,862)$ (17,348) (4,486)$ 116,764$ (54,778) (171,542)$ Fund Balances - Beginning of
Year (Deficits) 707,306 161,206
Fund Balances - End of Year (Deficits) 689,958$ 106,428$ Grant & Loan FundsNortheast Area

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ 5,811,600$ 5,861,495$ 49,895$ Other Taxes - - - - - - Subventions and Grants - - - 6,000 13,240 7,240 License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - - - 20,000 73,870 53,870 Charges for Current Services - - - - - - Miscellaneous 71,000 95,446 24,446 33,700 52,267 18,567 Total Revenues 71,000 95,446 24,446 5,871,300 6,000,872 129,572

EXPENDITURES
Current:

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

Fire - - - - - - Police 41,000 10,375 30,625 4,348,800 4,149,336 199,464 Public Works - - - - - - Community Services - - - - - - Capital Outlay 56,670 44,922 11,748 - - - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 97,670 55,297 42,373 4,348,800 4,149,336 199,464 Excess (Deficiency) of
Revenues Over (Under) Expenditures (26,670) 40,149 66,819 1,522,500 1,851,536 329,036

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - (151,500) (626,107) (474,607) Total Other Financing Sources (Uses) - - - (151,500) (626,107) (474,607) Net Changes in Fund Balances (26,670)$ 40,149 66,819$ 1,371,000$ 1,225,429 (145,571)$ Fund Balances - Beginning of
Year (Deficits) 9,472 6,794,675
Fund Balances - End of Year (Deficits) 49,621$ 8,020,104$ Narcotics Forfeiture Measure T - Police

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes 3,874,400$ 3,907,664$ 33,264$ 3,468,600$ 4,171,564$ 702,964$ Other Taxes - - - - - - Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property 65,000 73,576 8,576 30,000 125,638 95,638 Charges for Current Services 25,000 49,055 24,055 - - - Miscellaneous 5,200 76,479 71,279 - - - Total Revenues 3,969,600 4,106,774 137,174 3,498,600 4,297,202 798,602

EXPENDITURES
Current:

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

Fire 3,013,500 3,098,274 (84,774) - - - Police - - - - - - Public Works - - - 34,700 37,010 (2,310) Community Services - - - - - - Capital Outlay 6,600 6,517 83 1,208,083 546,928 661,155 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 3,020,100 3,104,791 (84,691) 1,242,783 583,938 658,845 Excess (Deficiency) of
Revenues Over (Under) Expenditures 949,500 1,001,983 52,483 2,255,817 3,713,264 1,457,447

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - (1,480,000) (1,480,000) - - - Total Other Financing Sources (Uses) - (1,480,000) (1,480,000) - - - Net Changes in Fund Balances 949,500$ (478,017) (1,427,517)$ 2,255,817$ 3,713,264 1,457,447$ Fund Balances - Beginning of
Year (Deficits) 6,894,729 10,300,742
Fund Balances - End of Year (Deficits) 6,416,712$ 14,014,006$ Measure T - Fire Measure R - Local

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes 491,500$ 3,322,198$ 2,830,698$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 275,000 753,563 478,563 License and Permits - - - - - - Fees and Fines - - - - - - Uses of Money and Property - 528 528 - 43,996 43,996 Charges for Current Services - - - - - - Miscellaneous - 44 44 - 200,339 200,339 Total Revenues 491,500 3,322,770 2,831,270 275,000 997,898 722,898

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - - - - Public Works - 28,870 (28,870) 200 1,166 (966) Community Services - - - - - - Capital Outlay 4,643,115 3,967,619 675,496 529,247 103,580 425,667 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 4,643,115 3,996,489 646,626 529,447 104,746 424,701 Excess (Deficiency) of
Revenues Over (Under) Expenditures (4,151,615) (673,719) 3,477,896 (254,447) 893,152 1,147,599

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (4,151,615)$ (673,719) 3,477,896$ (254,447)$ 893,152 1,147,599$ Fund Balances - Beginning of
Year (Deficits) (50,446) 3,811,399
Fund Balances - End of Year (Deficits) (724,165)$ 4,704,551$ Measure R - Regional Transportation Grants

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - 84,000 90,119 6,119 Subventions and Grants - - - - - - License and Permits - - - - - - Fees and Fines 150,000 271,341 121,341 - - - Uses of Money and Property 900 25,635 24,735 3,600 4,974 1,374 Charges for Current Services - - - - - - Miscellaneous - - - 100 15 (85) Total Revenues 150,900 296,976 146,076 87,700 95,108 7,408

EXPENDITURES
Current:

General Government - - - - - - Community Development - - - 22,300 2,415 19,885 Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services 60,400 64,694 (4,294) - - - Capital Outlay 29,875 29,875 - - - - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 90,275 94,569 (4,294) 22,300 2,415 19,885 Excess (Deficiency) of
Revenues Over (Under) Expenditures 60,625 202,407 141,782 65,400 92,693 27,293

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 60,625$ 202,407 141,782$ 65,400$ 92,693 27,293$ Fund Balances - Beginning of
Year (Deficits) 294,036 417,317
Fund Balances - End of Year (Deficits) 496,443$ 510,010$ Golf
Course
CASP
Program

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, 2023

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 - 7,320 7,320 - - - Uses of Money and Property - 2,954 2,954 - 2,626 2,626 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 10,274 10,274 - 2,626 2,626

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - 9,378 (9,378) - 70 (70) Capital Outlay - - - - - - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 9,378 (9,378) - 70 (70) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 896 896 - 2,556 2,556

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 896 896$ -$ 2,556 2,556$ Fund Balances - Beginning of
Year (Deficits) 273,333 241,138
Fund Balances - End of Year (Deficits) 274,229$ 243,694$ Oak Tree Preservation Conservation

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, 2023

0 Refunding
Certificates of
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 - 2,952 2,952 - - - Charges for Current Services - - - - - - Miscellaneous 10,000 21,778 11,778 - - - Total Revenues 10,000 24,730 14,730 - - -

EXPENDITURES
Current:

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

Fire - - - - - - Police - 81 (81) - - - Public Works - - - - - - Community Services - - - - - - Capital Outlay 27,372 17,087 10,285 - - - Debt Service:

Principal Repayment - - - 104,200 107,200 (3,000) Interest and Fiscal Charges - - - 25,088 19,921 5,167 Total Expenditures 27,372 17,168 10,204 129,288 127,121 2,167 Excess (Deficiency) of
Revenues Over (Under) Expenditures (17,372) 7,562 24,934 (129,288) (127,121) 2,167

OTHER FINANCING SOURCES (USES)
Transfers In - - - 127,500 127,560 60
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - 127,500 127,560 60 Net Changes in Fund Balances (17,372)$ 7,562 24,934$ (1,788)$ 439 2,227$ Fund Balances - Beginning of
Year (Deficits) 124,098 (1,888)
Fund Balances - End of Year (Deficits) 131,660$ (1,449)$ Police Unclaimed Funds

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, 2023

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 - 2,575 2,575 - 12 12 Charges for Current Services - - - - 3,910 3,910 Miscellaneous - - - - - - Total Revenues - 2,575 2,575 - 3,922 3,922

EXPENDITURES
Current:

General Government - 1,320 (1,320) - - - Community Development - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - 1 (1) Capital Outlay - - - 100 - 100 Debt Service:

Principal Repayment 824,198 860,829 (36,631) - - - Interest and Fiscal Charges 331,556 290,913 40,643 - - - Total Expenditures 1,155,754 1,153,062 2,692 100 1 99 Excess (Deficiency) of
Revenues Over (Under) Expenditures (1,155,754) (1,150,487) 5,267 (100) 3,921 4,021

OTHER FINANCING SOURCES (USES)
Transfers In 1,156,400 1,155,864 (536) - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) 1,156,400 1,155,864 (536) - - - Net Changes in Fund Balances 646$ 5,377 4,731$ (100)$ 3,921 4,021$ Fund Balances - Beginning of
Year (Deficits) (16,802) 1,099
Fund Balances - End of Year (Deficits) (11,425)$ 5,020$ Softball Facility Development

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants 7,162,500 8,621,289 1,458,789 - - - License and Permits - - - - - - Fees and Fines - - - 1,960,000 2,044,246 84,246 Uses of Money and Property 50,000 148,733 98,733 20,000 108,825 88,825 Charges for Current Services - - - - - - Miscellaneous - 90 90 - 1,500 1,500 Total Revenues 7,212,500 8,770,112 1,557,612 1,980,000 2,154,571 174,571

EXPENDITURES
Current:

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

Fire - - - - - - Police - - - - - - Public Works 634,000 810,306 (176,306) - - - Community Services - - - 21,400 25,240 (3,840) Capital Outlay 10,726,738 8,941,342 1,785,396 486,080 486,080 - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 11,360,738 9,751,648 1,609,090 507,480 511,320 (3,840) Excess (Deficiency) of
Revenues Over (Under) Expenditures (4,148,238) (981,536) 3,166,702 1,472,520 1,643,251 170,731

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances (4,148,238)$ (981,536) 3,166,702$ 1,472,520$ 1,643,251 170,731$ Fund Balances - Beginning of
Year (Deficits) 13,338,226 8,884,534
Fund Balances - End of Year (Deficits) 12,356,690$ 10,527,785$ Highway Users Recreational Facilities

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, 2023

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 1,219,700 1,213,067 (6,633) 900,900 767,631 (133,269) Uses of Money and Property 10,000 51,891 41,891 1,000 10,750 9,750 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues 1,229,700 1,264,958 35,258 901,900 778,381 (123,519)

EXPENDITURES
Current:

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

Fire - - - 4,300 2,195 2,105 Police - - - 900 1,082 (182) Public Works 28,900 31,869 (2,969) - - - Community Services - - - - - - Capital Outlay 1,276,181 1,142,178 134,003 33,236 3,228 30,008 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 1,305,081 1,174,047 131,034 38,436 6,505 31,931 Excess (Deficiency) of
Revenues Over (Under) Expenditures (75,381) 90,911 166,292 863,464 771,876 (91,588)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - (419,900) (414,151) 5,749 Total Other Financing Sources (Uses) - - - (419,900) (414,151) 5,749 Net Changes in Fund Balances (75,381)$ 90,911 166,292$ 443,564$ 357,725 (85,839)$ Fund Balances - Beginning of
Year (Deficits) 4,482,961 938,241
Fund Balances - End of Year (Deficits) 4,573,872$ 1,295,966$ Storm Sewer Construction Public Safety Impact Fee

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ -$ -$ -$ Other Taxes - - - - - - Subventions and Grants - - - 35,400 39,193 3,793 License and Permits - - - 20,700 7,725 (12,975) Fees and Fines 763,600 446,485 (317,115) - - - Uses of Money and Property 52,000 95,526 43,526 54,700 51,707 (2,993) Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues 815,600 542,011 (273,589) 110,800 98,625 (12,175)

EXPENDITURES
Current:

General Government 15,000 12,476 2,524 - - - Community Development - - - 8,000 6,628 1,372 Public Safety:

Fire - - - - - - Police - - - - - - Public Works 2,300 2,299 1 - - - Community Services - - - - - - Capital Outlay - - - 281,038 - 281,038 Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures 17,300 14,775 2,525 289,038 6,628 282,410 Excess (Deficiency) of
Revenues Over (Under) Expenditures 798,300 527,236 (271,064) (178,238) 91,997 270,235

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances 798,300$ 527,236 (271,064)$ (178,238)$ 91,997 270,235$ Fund Balances - Beginning of
Year (Deficits) 8,678,700 3,885,624
Fund Balances - End of Year (Deficits) 9,205,936$ 3,977,621$ Government Facilities Impact Fee Parking District

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, 2023

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 - 8,289 8,289 - 6,104 6,104 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 8,289 8,289 - 6,104 6,104

EXPENDITURES
Current:

General Government - 219 (219) - 162 (162) Community Development - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - - - Capital Outlay - - - 18 18 - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - 219 (219) 18 180 (162) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 8,070 8,070 (18) 5,924 5,942

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 8,070 8,070$ (18)$ 5,924 5,942$ Fund Balances - Beginning of
Year (Deficits) 761,099 560,441
Fund Balances - End of Year (Deficits) 769,169$ 566,365$ Facility Improvements Regional Parks

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, 2023

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 - 26,144 26,144 - - - Uses of Money and Property - - - - 2,663 2,663 Charges for Current Services - - - - - - Miscellaneous - - - - - - Total Revenues - 26,144 26,144 - 2,663 2,663

EXPENDITURES
Current:

General Government - - - - 71 (71) Community Development - - - - - - Public Safety:

Fire - - - - - - Police - - - - - - Public Works - - - - - - Community Services - - - - - - Capital Outlay - - - - - - Debt Service:

Principal Repayment - - - - - - Interest and Fiscal Charges - - - - - - Total Expenditures - - - - 71 (71) Excess (Deficiency) of
Revenues Over (Under) Expenditures - 26,144 26,144 - 2,592 2,592

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - - Transfers Out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net Changes in Fund Balances -$ 26,144 26,144$ -$ 2,592 2,592$ Fund Balances - Beginning of
Year (Deficits) - 244,474
Fund Balances - End of Year (Deficits) 26,144$ 247,066$ Animal Control ReserveVehicle Miles Traveled Impact Fee

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, 2023

Final
Budget Actual
Variance
With Final
Budget
Final
Budget Actual
Variance
With Final
Budget

REVENUES
Sales Taxes -$ -$ -$ 13,646,100$ 17,262,921$ 3,616,821$ Other Taxes - - - 84,000 90,119 6,119 Subventions and Grants - - - 7,991,197 9,785,987 1,794,790 License and Permits - - - 20,700 7,725 (12,975) Fees and Fines - - - 7,019,200 6,724,597 (294,603) Uses of Money and Property - 4,198 4,198 509,900 1,122,838 612,938 Charges for Current Services - - - 5,644,600 5,970,377 325,777 Miscellaneous 20,000 88,383 68,383 143,700 544,759 401,059 Total Revenues 20,000 92,581 72,581 35,059,397 41,509,323 6,449,926

EXPENDITURES
Current:

General Government - - - 15,000 14,248 752 Community Development - - - 30,300 9,043 21,257 Public Safety:

Fire - - - 3,017,800 3,100,469 (82,669) Police - - - 4,680,700 4,473,132 207,568 Public Works - - - 1,161,500 1,838,835 (677,335) Community Services 247,800 310,381 (62,581) 3,722,300 4,635,014 (912,714) Capital Outlay 202,672 107,757 94,915 21,041,494 16,533,653 4,507,841 Debt Service:

Principal Repayment - - - 928,398 968,029 (39,631) Interest and Fiscal Charges - - - 356,644 310,834 45,810 Total Expenditures 450,472 418,138 32,334 34,954,136 31,883,257 3,070,879 Excess (Deficiency) of
Revenues Over (Under) Expenditures (430,472) (325,557) 104,915 105,261$ 9,626,066$ 9,520,805$

OTHER FINANCING SOURCES (USES)
Transfers In 300,000 515,065 215,065 1,583,900 1,798,489 214,589
Transfers Out - - - (871,400) (2,820,258) (1,948,858) Total Other Financing Sources (Uses) 300,000 515,065 215,065 712,500 (1,021,769) (1,734,269) Net Changes in Fund Balances (130,472)$ 189,508 319,980$ 817,761$ 8,604,297 7,786,536$ Fund Balances - Beginning of
Year (Deficits) 231,738 93,194,523
Fund Balances - End of Year (Deficits) 421,246$ 101,798,820$ TotalBaseball

160

161

NON-MAJOR PROPRIETARY FUNDS

162

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

163

Non-Major Proprietary Funds

NON-MAJOR PROPRIETARY FUNDS

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

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

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

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

164

Convention
Center Airport
Building
Safety
Animal
Control Total
ASSETS
Current Assets
Cash and Investments 4,100$ 1,261,487$ 14,357,928$ 200$ 15,623,715$ Accounts Receivable 208,010 74,571 5,072 342,642 630,295 Leases Receivable - 394,684 - - 394,684 Supplies - 75,515 - - 75,515 Prepaid Expenses - 25,311 - - 25,311 Total Current Assets 212,110 1,831,568 14,363,000 342,842 16,749,520 Non-Current Assets
Restricted Cash and Investments
Cash Held by Trustee 1 - - - 1 Cash Held by City 798,627 - - 467,470 1,266,097 Leases Receivable - 5,171,274 - - 5,171,274 Capital Assets
Land 829,047 3,000,590 - - 3,829,637 Buildings 22,428,375 6,469,160 - 6,750,891 35,648,426 Improvements Other Than Buildings 5,435,369 13,511,504 - - 18,946,873 Machinery, Equipment and Vehicles 1,963,299 1,093,596 228,804 33,750 3,319,449 Subscription-Based Information Technology (SBITA) - - 64,915 - 64,915 Accumulated Depreciation and Amortization (20,259,167) (13,022,915) (131,664) (1,365,738) (34,779,484) Total Non-Current Assets 11,195,551 16,223,209 162,055 5,886,373 33,467,188 Total Assets 11,407,661 18,054,777 14,525,055 6,229,215 50,216,708

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 858,922 364,531 1,560,341 549,678 3,333,472 Total Deferred Outflows of Resources 858,922 364,531 1,560,341 549,678 3,333,472

LIABILITIES
Current Liabilities
Accounts, Interest and Contracts Payable 243,857 171,685 324,184 38,566 778,292 Customer Deposits 57,275 - 60,000 - 117,275 Current Portion of Long-Term Liabilities:

Compensated Absences 32,913 - 16,292 8,473 57,678 Certificates of Participation and Loans 940,664 - - 482,266 1,422,930 Liability for SBITA Lease - - 64,915 - 64,915 Total Current Liabilities 1,274,709 171,685 465,391 529,305 2,441,090 Non-Current Liabilities
Unearned Revenue - - 18,167 7,500 25,667 Non-current Portion of Long-term Liabilities:

Compensated Absences 69,287 39,085 127,179 31,823 267,374 Certificates of Participation and Loans 3,572,052 - - 2,102,823 5,674,875 Net Pension Liability 2,815,522 1,194,923 5,114,754 1,801,827 10,927,026 Total Non-Current Liabilities 6,456,861 1,234,008 5,260,100 3,943,973 16,894,942 Total Liabilities 7,731,570 1,405,693 5,725,491 4,473,278 19,336,032

DEFERRED INFLOWS OF RESOURCES
Pension Related 116,257 49,340 211,195 74,400 451,192 Lease Related - 5,496,708 - - 5,496,708 Total Deferred Inflows of Resources 116,257 5,546,048 211,195 74,400 5,947,900

NET POSITION
Net Investment in Capital Assets 5,884,207 11,051,935 97,140 2,833,814 19,867,096 Restricted for:

Debt Service 1 - - - 1 Capital Projects 820,173 149,414 - 467,713 1,437,300 Unrestricted (Deficit) (2,285,625) 266,218 10,051,570 (1,070,312) 6,961,851 Total Net Position 4,418,756$ 11,467,567$ 10,148,710$ 2,231,215$ 28,266,248$ Business-Type Activities - Enterprise Funds
Non-Major Funds

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023

165

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBININGSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023

Convention
Center Airport
Building
Safety
Animal
Control Total

OPERATING REVENUES
Charges for Services 1,769,800$ 2,282,280$ 5,133,425$ 564,312$ 9,749,817$ Operating Grants and Contributions - - - 4,750 4,750 Total Operating Revenues 1,769,800 2,282,280 5,133,425 569,062 9,754,567

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 2,445,093 651,265 2,430,998 805,337 6,332,693 Maintenance and Operations 1,276,314 1,574,703 1,246,684 882,616 4,980,317 Depreciation and Amortization 724,048 416,938 53,636 171,983 1,366,605 Total Operating Expenses 4,445,455 2,642,906 3,731,318 1,859,936 12,679,615 Operating Income (Loss) (2,675,655) (360,626) 1,402,107 (1,290,874) (2,925,048)

NONOPERATING REVENUES (EXPENSES)
Interest Income 5,382 97,813 153,447 5,041 261,683 Interest Expense (210,756) - - (101,279) (312,035) Other Income 29,158 250,167 28,484 972 308,781 Other Expenses (10,411) (107,598) - - (118,009) Total Nonoperating Revenues (Expenses) (186,627) 240,382 181,931 (95,266) 140,420 Income (Loss) Before Contributions and Transfers (2,862,282) (120,244) 1,584,038 (1,386,140) (2,784,628) Capital Grants and Contributions - 174,470 - - 174,470 Transfers In 2,731,216 - - 1,863,142 4,594,358 Net Contributions and Transfers 2,731,216 174,470 - 1,863,142 4,768,828 Change in Net Position (131,066) 54,226 1,584,038 477,002 1,984,200 Net Position - Beginning 4,549,822 11,413,341 8,564,672 1,754,213 26,282,048 Net Position - Ended 4,418,756$ 11,467,567$ 10,148,710$ 2,231,215$ 28,266,248$ Business-Type Activities - Enterprise Funds
Non-Major Funds

166

Convention
Center Airport Building Safety Animal Control Total

CA SH FLOWS FROM OPERA TING A CTIV ITIES
Cash Received from Customers or Other Funds 1,738,217$ 2,656,839$ 5,129,413$ 586,885$ 10,111,354$ Cash Payments to Employees for Services (1,836,716) (999,725) (2,313,303) (1,023,557) (6,173,301) Cash Payments to Suppliers for Services (1,244,622) (1,633,658) (1,751,251) (860,250) (5,489,781) Cash Received from (Payments to) Other Governments - 26,619 - - 26,619 Net Cash Provided (Used) by Operating Activities (1,343,121) 50,075 1,064,859 (1,296,922) (1,525,109)

CA SH FLOWS FROM NONCA PITA L

FINA NCING A CTIV ITIES
Other Income 29,158 250,167 28,484 972 308,781 Other Payments (10,411) (107,598) - - (118,009) Transfers In 2,731,216 - - 1,863,142 4,594,358 Net Cash Provided by Noncapital
Financing Activities 2,749,963 142,569 28,484 1,864,114 4,785,130

CA SH FLOWS FROM CA PITA L A ND RELA TED

FINA NCING A CTIV ITIES
Acquisition of Capital Assets - - (23,909) - (23,909) Capital Grants Received - 174,470 - - 174,470 Long-Term Debt Payments - Principal (876,971) - - (466,049) (1,343,020) Long-Term Debt Payments - Interest (245,570) - - (101,279) (346,849) Net Cash Provided (Used) by Capital and Related
Financing Activities (1,122,541) 174,470 (23,909) (567,328) (1,539,308)

CA SH FLOWS FROM INV ESTING A CTIV ITIES
Interest Earnings 5,382 97,813 153,447 5,041 261,683 Net Cash Provided by Investing Activities 5,382 97,813 153,447 5,041 261,683 Net Increase in Cash
and Investments 289,683 464,927 1,222,881 4,905 1,982,396 Cash and Investments - Beginning of Year 513,045 796,560 13,135,047 462,765 14,907,417 Cash and Investments - End of Year 802,728$ 1,261,487$ 14,357,928$ 467,670$ 16,889,813$ Consisting of:

Unrestricted 4,100$ 1,261,487$ 14,357,928$ 200$ 15,623,715$ Restricted 798,628 - - 467,470 1,266,098 Total Cash and Investments 802,728$ 1,261,487$ 14,357,928$ 467,670$ 16,889,813$ Reconciliation of Operating Income (Loss) to
Cash Flow s from Operating Activities:

Operating Income (Loss) (2,675,655)$ (360,626)$ 1,402,107$ (1,290,874)$ (2,925,048)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Flow s from Operating Activities:

Depreciation and Amortization 724,048 416,938 53,636 171,982 1,366,604 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (31,583) 374,559 (4,012) 17,823 356,787 Supplies - (3,957) - - (3,957) Due from Other Governments - 26,619 - - 26,619 Prepaid Expenses - (10,601) - - (10,601) Accounts Payable and Contract Payable 5,787 (44,397) (482,398) 15,347 (505,661) Deferred Outflow s Pensions (645,104) (245,048) (2,710,790) (452,099) (4,053,041) Deferred Inflow s Pensions & Leases (391,855) (616,663) (1,035,067) (328,123) (2,371,708) Net Pension Liability 1,626,097 530,263 3,866,508 569,362 6,592,230 Unearned Revenue - - (4,988) 7,500 2,512 Compensated Absences 19,239 (17,012) (2,956) (7,360) (8,089) Other Liability - - 64,915 - 64,915 Customer Deposits 25,905 - (82,096) (480) (56,671) Net Cash Provided (Used) by Operating Activities (1,343,121)$ 50,075$ 1,064,859$ (1,296,922)$ (1,525,109)$ Business-Type Activities - Enterprise Funds
Non-Major Funds

CITY OF VISALIA

NON-MAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023

167

INTERNAL SERVICE FUNDS

168

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

169

Internal Service Funds

INTERNAL SERVICE FUNDS

Internal Service Funds are used to finance and account for activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds introduced by GASB Statement No. 34 does not extend to internal service funds because they do not do business with outside parties. GASB Statement No. 34 requires that for the Statement of Activities, the net revenue or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented in total 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.

170

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023

Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management
ASSETS
Current Assets
Cash and Investments 389,370$ 15,119,561$ 6,225,543$ 17,220,623$ Accounts and Interest Receivables 1,930 15,575 - - Supplies 1,332,155 - - - Prepaid Expenses - - - - Total Current Assets 1,723,455 15,135,136 6,225,543 17,220,623 Non-Current Assets
Restricted Cash and Investments
Cash Held by Trustee - - - 410,012 Capital Assets
Building 654,910 - - - Improvements Other Than Buildings 211,545 - 7,240 - Machinery, Equipment and Vehicles 443,004 23,007,355 14,194,759 - Construction in Progress 1,512 1,546,740 152,544 - Right-to-use subscription asset (SBITA) - - 803,761 - Accumulated Depreciation and Amortization (1,151,838) (14,514,078) (9,680,056) - Total Non-Current Assets 159,133 10,040,017 5,478,248 410,012 Total Assets 1,882,588 25,175,153 11,703,791 17,630,635

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 872,076 - 904,566 380,751 Total Deferred Outflows of Resources 872,076 - 904,566 380,751

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 348,894 - 25,325 5,250 Accrued Personnel Costs - - - - Current Portion of Long-Term Liabilities:

Compensated Absences - - - - Liability for Self-Insurance Claims - - - 2,013,918 Total Current Liabilities 348,894 - 25,325 2,019,168 Non-Current Liabilities
Non-current Portion of Long-term Liabilities:

Compensated Absences - - - - Liability for Self-Insurance Claims - - - 6,185,114 Net Pension Liability 2,858,640 - 2,965,140 1,248,092 Total Non-Current Liabilities 2,858,640 - 2,965,140 7,433,206 Total Liabilities 3,207,534 - 2,990,465 9,452,374

DEFERRED INFLOWS OF RESOURCES
Pension Related 118,037 - 122,435 51,536 Total Deferred Inflows of Resources 118,037 - 122,435 51,536

NET POSITION
Net Investment in Capital Assets 159,133 10,040,017 4,674,487 - Restricted - 943,684 98,304 410,012 Unrestricted (Deficit) (730,040) 14,191,452 4,722,666 8,097,464 Total Net Position (Deficit) (570,907)$ 25,175,153$ 9,495,457$ 8,507,476$

171

CITY OF VISALIA

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION (Continued)
JUNE 30, 2023

Health
Benefits
Compensated
Absences
Building
Maintenance Totals
ASSETS
Current Assets
Cash and Investments 4,219,931$ 5,966,011$ 729,316$ 49,870,355$ Accounts and Interest Receivables 14,330 - - 31,835 Supplies - - - 1,332,155 Prepaid Expenses 1,035,013 - - 1,035,013 Total Current Assets 5,269,274 5,966,011 729,316 52,269,358 Non-Current Assets
Restricted Cash and Investments
Cash Held by Trustee 60,700 - - 470,712 Capital Assets
Building - - - 654,910 Improvements Other Than Buildings - - - 218,785 Machinery, Equipment and Vehicles - - - 37,645,118 Construction in Progress - - - 1,700,796 Right-to-use subscription asset (SBITA) - - - 803,761 Accumulated Depreciation and Amortization - - - (25,345,972) Total Non-Current Assets 60,700 - - 16,148,110 Total Assets 5,329,974 5,966,011 729,316 68,417,468

DEFERRED OUTFLOWS OF RESOURCES
Pension Related - - - 2,157,393 Total Deferred Outflows of Resources - - - 2,157,393

LIABILITIES
Current Liabilities
Accounts, Interest, and Contracts Payable 53,274 - - 432,743 Accrued Personnel Costs 17,726 - - 17,726 Current Portion of Long-Term Liabilities:

Compensated Absences - 1,206,299 - 1,206,299 Liability for Self-Insurance Claims 93,900 - - 2,107,818 Total Current Liabilities 164,900 1,206,299 - 3,764,586 Non-Current Liabilities
Non-current Portion of Long-term Liabilities:

Compensated Absences - 4,870,901 - 4,870,901 Liability for Self-Insurance Claims - - - 6,185,114 Net Pension Liability - - - 7,071,872 Total Non-Current Liabilities - 4,870,901 - 18,127,887 Total Liabilities 164,900 6,077,200 - 21,892,473

DEFERRED INFLOWS OF RESOURCES
Pension Related - - - 292,008 Total Deferred Inflows of Resources - - - 292,008

NET POSITION
Net Investment in Capital Assets - - - 14,873,637 Restricted 60,700 - - 1,512,700
Unrestricted (Deficit) 5,104,374 (111,189) 729,316 32,004,043 Total Net Position (Deficit) 5,165,074$ (111,189)$ 729,316$ 48,390,380$

172

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023

Fleet
Services
Vehicle
Replacement
Information
Services
Risk
Management

OPERATING REVENUES
Service Charges and Fees 6,416,638$ 2,359,469$ 2,640,360$ 5,720,319$

OPERATING EXPENSES
Salaries, Wages and Employee Benefits 1,562,942 - 965,748 529,556 Maintenance and Operations 4,836,411 26,255 1,312,463 383,150 Insurance Premiums and Loss Provisions - - - 6,128,120 Depreciation and Amortization 15,308 1,351,775 936,397 - Total Operating Expenses 6,414,661 1,378,030 3,214,608 7,040,826 Operating Income (Loss) 1,977 981,439 (574,248) (1,320,507)

NONOPERATING REVENUES (EXPENSES)
Interest Income - 75,435 46,375 158,950 Interest (Expense) (24,161) - - - Other Income 66,850 28,855 855,641 566,707 Other (Expenses) - (611) - - Total Nonoperating Revenues (Expenses) 42,689 103,679 902,016 725,657 Income (Loss) Before Contributions and Transfers 44,666 1,085,118 327,768 (594,850)

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - 477,328 1,265,284 - Transfers In - 6,455,000 - - Net Contributions and Transfers - 6,932,328 1,265,284 - CHANGE IN NET POSITION 44,666 8,017,446 1,593,052 (594,850)

NET POSITION (DEFICIT)
Net Position (Deficit) - Beginning of Year (615,573) 17,157,707 7,640,880 9,102,326 Prior Period Adjustment (Note 13) - - 261,525 - Net Position - Beginning, as restated (615,573) 17,157,707 7,902,405 9,102,326 Net Position (Deficit) - End of Year (570,907)$ 25,175,153$ 9,495,457$ 8,507,476$

173

CITY OF VISALIA

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

Health
Benefits
Compensated
Absences
Building
Maintenance Totals

OPERATING REVENUES
Service Charges and Fees 13,873,563$ -$ -$ 31,010,349$

OPERATING EXPENSES
Salaries, Wages and Employee Benefits - - - 3,058,246 Maintenance and Operations 245,554 1,686 208 6,805,727 Insurance Premiums and Loss Provisions 13,315,091 - - 19,443,211 Depreciation and Amortization - - - 2,303,480 Total Operating Expenses 13,560,645 1,686 208 31,610,664 Operating Income (Loss) 312,918 (1,686) (208) (600,315)

NONOPERATING REVENUES (EXPENSES)
Interest Income 44,135 63,689 7,860 396,444 Interest (Expense) - - - (24,161) Other Income 6,005 - - 1,524,058 Other (Expenses) - - - (611) Total Nonoperating Revenues (Expenses) 50,140 63,689 7,860 1,895,730 Income (Loss) Before Contributions and Transfers 363,058 62,003 7,652 1,295,415

CONTRIBUTIONS AND TRANSFERS
Grants and Contributions - - - 1,742,612 Transfers In - - - 6,455,000 Net Contributions and Transfers - - - 8,197,612 CHANGE IN NET POSITION 363,058 62,003 7,652 9,493,027

NET POSITION (DEFICIT)
Net Position (Deficit) - Beginning of Year 4,802,016 (173,192) 721,664 38,635,828 Prior Period Adjustment (Note 13) - - - 261,525 Net Position - Beginning, as restated 4,802,016 (173,192) 721,664 38,897,353 Net Position (Deficit) - End of Year 5,165,074$ (111,189)$ 729,316$ 48,390,380$

174

Fleet Vehicle Information Risk
Services Replacement Services Management

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 6,416,758$ 2,343,893$ 2,640,360$ 5,720,319$ Cash Payments to Suppliers for Services (3,748,632) (31,799) (1,306,295) (6,238,269) Cash Payments to Employees for Services (2,728,133) - (1,273,620) (565,531) Net Cash Provided by (Used in) Operating Activities (60,007) 2,312,094 60,445 (1,083,481)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Other Income 66,850 28,855 855,641 566,707 Other Payments - (611) - - Transfers In - 6,455,000 - - Net Cash Provided by Noncapital
Financing Activities 66,850 6,483,244 855,641 566,707

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets - (2,285,602) (903,847) - Grants and Contributions - 477,328 746,823 - Interest Expense (24,161) - - - Net Cash (Used in) Capital
and Related Financing Activities (24,161) (1,808,274) (157,024) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Earnings - 75,435 46,375 158,950 Net Cash Provided by Investing Activities - 75,435 46,375 158,950 Net Increase (Decrease) in Cash and
Cash Investments (17,318) 7,062,499 805,437 (357,824) Cash and Cash Investments at Beginning of Year 406,688 8,057,062 5,420,106 17,988,459 Cash and Cash Investments at End of Year 389,370$ 15,119,561$ 6,225,543$ 17,630,635$ Consisting of:

Unrestricted 389,370$ 15,119,561$ 6,225,543$ 17,220,623$ Restricted - 410,012
Total Cash and Investments 389,370$ 15,119,561$ 6,225,543$ 17,630,635$ Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Operating Income (Loss) 1,977$ 981,439$ (574,248)$ (1,320,507)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Depreciation and amortization 15,308 1,351,775 936,397 - Net Change in Assets and Liabilities:

Accounts and Interest Receivable 120 (15,576) - - Supplies (125,572) - - - Prepaid Expenses - - - - Accounts Payable and Contract Payable 16,433 (5,544) 6,168 (825) Deferred Outflows Pension (573,355) - (545,606) (243,148) Deferred Inflow Pension (591,836) - (730,588) (275,461) Accrued Personnel Costs - - - - Compensated Absences - - - - Pension Liability 1,196,918 - 968,322 482,634 Liability for Self-Insurance Claims - - - 273,826 Net Cash Provided by (Used in) Operating Activities (60,007)$ 2,312,094$ 60,445$ (1,083,481)$

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

175

Health Compensated Building
Benefits Absences Maintenance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 13,868,501$ 56,236$ -$ 31,046,067$ Cash Payments to Suppliers for Services (13,673,459) (1,686) (208) (25,000,348) Cash Payments to Employees for Services - - - (4,567,284) Net Cash Provided by (Used in) Operating Activities 195,042 54,550 (208) 1,478,435

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Other Income 6,005 - - 1,524,058 Other Payments - - - (611) Transfers In - - - 6,455,000 Net Cash Provided by Noncapital
Financing Activities 6,005 - - 7,978,447

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets - - - (3,189,449) Grants and Contributions - - - 1,224,151 Interest Expense - - - (24,161) Net Cash (Used in) Capital
and Related Financing Activities - - - (1,989,459)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 44,135 63,689 7,860 396,444 Net Cash Provided by Investing Activities 44,135 63,689 7,860 396,444 Net Increase (Decrease) in Cash and
Cash Investments 245,182 118,239 7,652 7,863,867 Cash and Cash Investments at Beginning of Year 4,035,449 5,847,772 721,664 42,477,200 Cash and Cash Investments at End of Year 4,280,631$ 5,966,011$ 729,316$ 50,341,067$ Consisting of:

Unrestricted 4,219,931$ 5,966,011$ 729,316$ 49,870,355$ Restricted 60,700 470,712
Total Cash and Investments 4,280,631$ 5,966,011$ 729,316$ 50,341,067$ Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Operating Income (Loss) 312,918$ (1,686)$ (208)$ (600,315)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Depreciation and amortization - - - 2,303,480 Net Change in Assets and Liabilities:

Accounts and Interest Receivable (5,062) - - (20,518) Supplies - - - (125,572) Prepaid Expenses (126,189) - - (126,189) Accounts Payable and Contract Payable 1,024 - - 17,256 Deferred Outflows Pension - - - (1,362,109) Deferred Inflow Pension - - - (1,597,885) Accrued Personnel Costs 15,451 15,451
Compensated Absences - 56,236 - 56,236 Pension Liability - - - 2,647,874 Liability for Self-Insurance Claims (3,100) - - 270,726 Net Cash Provided by (Used in) Operating Activities 195,042$ 54,550$ (208)$ 1,478,435$

CITY OF VISALIA

COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023

176

177

CUSTODIAL FUNDS

178

City of Visalia –Annual Comprehensive Financial Report For Year Ended June 30, 2023

179

Custodial Funds

CUSTODIAL FUNDS

GASB Statement No. 8 4 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 district 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 travel and tourism specific to Visalia.

180

PBID # 5 Village West Orchard Walk Atwood Laura VTMD Total
Custodial
Funds
ASSETS
Cash and Investments (Note 3) 424,475$ -$ 61,513$ -$ -$ 73,356$ 559,344$ Accounts Receivable - - - 100,204 64,548 72,075 236,827 District Assesments Receivable 28,564 155 12,335 618 - - 41,672 Total Assets 453,039 155 73,848 100,822 64,548 145,431 837,843

LIABILITIES
Accounts, Interest, and Contracts Payable - - - - - 144,762 144,762 Deposits - - - 20,000 21,124 - 41,124 Due to City - 269 - 75,711 38,240 - 114,220 Total Liabilities - 269 - 95,711 59,364 144,762 300,106

NET POSITION (DEFICIT)
Restricted for:

Individuals, Organizations, and Other Governments 453,039$ (114)$ 73,848$ 5,111$ 5,184$ 669$ 537,737

CITY OF VISALIA

COMBINING STATEMENTS OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2023

181

PBID # 5 Village West Orchard Walk Atwood Laura VTMD
Total
Custodial
Funds
Additions
Use of Money and Property 5,538$ -$ 809$ -$ -$ 571$ 6,918$ Revenue from District Assessments 418,110 - - - - 800,506 1,218,616 Miscellaneous Revenue 211,685 - 58,274 12,351 7,780 - 290,090 Total Additions 635,333 - 59,083 12,351 7,780 801,077 1,515,624 Deductions
Obligation Requirements
Interest on Bonds and Notes Payable - - 13,274 3,487 2,159 - 18,920 Total Obligation Requirements - - 13,274 3,487 2,159 - 18,920 Administrative Expenses 598 - 233 110 109 8,021 9,071 Total Administrative Expenses 598 - 233 110 109 8,021 9,071 Distribution of District Assessment 550,000 - - - - 869,886 1,419,886 Principal on Bonds and Notes Payable - - 45,000 8,864 5,620 - 59,484 Total Distribution of District Assessment 550,000 - - - - 869,886 1,479,370 Total Deductions 550,598 - 13,507 3,597 2,268 877,907 1,507,361 Change in Net Position 84,735 - 45,576 8,754 5,512 (76,830) 8,263 Net Position - Beginning of Year 368,304 (114) 73,272 5,221 5,292 77,499 529,474 Net Position (Deficit) - End of Year 453,039$ (114)$ 118,848$ 13,975$ 10,804$ 669$ 537,737$

CITY OF VISALIA

COMBINING STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENEDED JUNE 30, 2023

182

183

Statistical
Section
(Unaudited)

184

City of Visalia – Annual Comprehensive Financial Report For Year Ended June 30, 2023

185

Statistical Section
Statistical Section

This part of the City of Visalia’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial Trends

These schedules contain trend information to help the reader understand how the City of Visalia’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the City of Visalia’s 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.

186

2014 2015 2016 2017
Governmental Activities:

Net Investment in Capital Assets 271,964$ 284,901$ 288,048$ 312,172$ Restricted 45,363 52,401 56,417 56,984 Unrestricted 60,694 (2,230) 12,676 17,877 Total Governmental Activities Net Position 378,021$ 335,072$ 357,141$ 387,033$ Business-type Activities:

Net Investment in Capital Assets 198,310$ 212,853$ 242,950$ 266,867$ Restricted 121,630 71,139 45,202 16,732 Unrestricted (27,024) 5,135 24,631 63,975 Total Business-type Activities Net Position 292,916$ 289,127$ 312,783$ 347,574$ Primary Government:

Net Investment in Capital Assets 470,274$ 497,754$ 530,998$ 579,039$ Restricted 166,993 123,540 101,619 73,716 Unrestricted 33,670 2,905 37,307 81,852 Total Primary Government Net Position 670,937$ 624,199$ 669,924$ 734,607$

CITY OF VISALIA

NET POSITION BY COMPONENT

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year

187

2018 2019 2020 2021 2022 2023
325,420$ 324,799$ 335,920$ 341,796$ 344,300$ 367,404$ 69,608 79,763 94,930 130,726 159,684 182,830 22,633 35,203 38,351 45,014 81,583 97,330 417,661$ 439,765$ 469,201$ 517,536$ 585,567$ 647,564$ 271,696$ 269,444$ 270,985$ 277,874$ 276,505$ 272,712$ 12,785 11,368 20,325 12,887 10,995 16,765 89,290 93,039 104,952 126,266 141,742 152,362 373,771$ 373,851$ 396,262$ 417,027$ 429,242$ 441,839$ 597,116$ 594,243$ 606,905$ 619,670$ 620,805$ 640,116$ 82,393 91,131 115,255 143,613 170,679 199,595 111,923 128,242 143,303 171,280 223,325 249,692 791,432$ 813,616$ 865,463$ 934,563$ 1,014,809$ 1,089,403$ Fiscal Year

188

2014 2015 2016 2017
Expenses:

Governmental Activities:

General Government 4,070$ 4,299$ 4,262$ 3,653$ Community Development 5,266 5,985 4,768 3,570 Housing & Community Grants - - - - Public Safety
Police 31,714 30,378 31,182 34,737 Fire 14,308 13,858 15,331 16,948
Public Works 11,906 13,596 24,526 19,270 Parks & Recreation 9,000 8,999 799 3,988 Community Services - - - - Interest on Long-Term Debt 191 145 702 561 Total Governmental Activities Expenses 76,455 77,260 81,570 82,727 Business-type Activities:

Convention Center 5,943 5,688 5,822 5,525 Airport 2,505 2,530 2,219 1,999 Valley Oaks Golf 2,574 2,756 2,502 2,426 Wastewater and Storm
Sewer Maintenance 15,281 16,791 19,836 23,845 Solid Waste 18,589 17,969 16,309 17,422 Transit 13,670 14,702 14,772 14,726 Baseball 295 332 342 329 Animal Control 1,184 1,141 1,881 2,490 Building Safety 1,768 1,969 2,306 3,103 Total Business-Type Activities Expenses 61,809 63,878 65,989 71,865 Total Primary Government Expenses 138,264 141,138 147,559 154,592 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 265 1,952 653 717 Community Development 1,503 1,633 2,142 2,122 Housing & Community Grants - - - - Public Safety
Police 2,516 2,690 2,804 2,716 Fire 626 802 1,256 1,492 Public Works 8,773 9,279 10,011 10,736 Parks & Recreation 2,974 3,068 3,468 3,321 Community Services - - - - Operating Grants and Contributions 3,184 4,581 3,660 3,118 Capital Grants and Contributions 12,152 8,556 9,625 14,635 Total Governmental Activities
Program Revenues 31,993$ 32,561$ 33,619$ 38,857$ Fiscal Year

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)
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.

189

2018 2019 2020 2021 2022 2023
5,778$ 4,951$ 7,404$ 6,883$ 2,237$ 7,009$ 2,028 6,098 2,477 2,741 (3,942) 3,388 - - 1,667 2,751 2,182 2,936 38,720 39,996 44,992 44,431 41,081 49,059 16,881 17,371 19,000 19,745 20,380 22,699 19,579 15,155 20,424 12,224 19,717 19,949 4,820 5,540 - - - - - - 12,146 11,271 14,827 14,074 508 471 450 401 362 370 88,314 89,582 108,560 100,447 96,844 119,484 5,517 4,952 4,300 2,360 1,180 4,675 2,017 2,199 2,127 3,119 2,545 2,755 1,571 - - - - - 18,488 21,031 25,263 25,541 28,133 28,439 18,847 24,168 18,963 19,212 21,658 20,938 18,360 20,408 17,837 17,263 19,791 21,496 354 350 221 243 - - 1,993 1,908 2,003 1,927 1,935 1,970 3,303 3,303 3,490 3,411 3,099 3,742 70,450 78,319 74,204 73,076 78,341 84,015 158,764 167,901 182,764 173,523 175,185 203,499 794 1,247 896 1,110 1,381 1,154 1,955 1,788 1,283 871 1,206 782 - - 23 22 22 39 2,636 3,055 3,126 2,953 2,818 2,983 1,875 1,678 1,620 1,654 2,142 1,960 11,344 12,286 10,459 11,303 15,791 12,357 3,509 4,140 - - - - - - 7,778 7,957 10,395 9,815 2,619 2,648 5,083 6,064 6,269 7,728 9,206 12,022 11,765 12,148 10,618 14,873 33,938$ 38,864$ 42,033$ 44,082$ 50,642$ 51,691$ Fiscal Year

190

(Continued)

2014 2015 2016 2017
Business-Type Activities:

Charges for Services:

Convention Center 4,099$ 3,617$ 3,587$ 3,483$ Airport 1,734 1,708 1,925 1,710 Valley Oaks Golf 2,409 2,401 2,405 2,372 Wastewater and Storm
Sewer Maintenance 22,365 26,210 26,033 26,822 Solid Waste 19,570 19,222 18,852 19,831 Transit 3,974 4,366 6,004 4,969 Baseball 8 17 18 51 Animal Control 219 309 430 487 Building Safety 2,948 3,274 3,873 3,741 Operating Grants and Contributions 6,588 9,841 4,183 14,050 Capital Grants and Contributions 4,045 2,691 17,291 21,188 Total Business-Type Activities
Program Revenues 67,959 73,656 84,601 98,704 Total Primary Government
Program Revenues 99,952 106,217 118,220 137,561 Net Revenues (Expenses):

Governmental Activities (44,462) (44,699) (47,951) (43,870) Business-Type Activities 6,150 9,778 18,612 26,839 Total Net Revenues (Expenses) (38,312) (34,921) (29,339) (17,031) General Revenues and Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales Taxes 28,791 32,237 36,145 44,574 Property Taxes 27,306 27,708 26,810 22,429 Transient Occupancy Taxes - - - - Franchise Taxes - - - - Business License Taxes - - - - Other Taxes 6,921 8,306 7,638 7,800 Investment Earnings 513 1,894 725 1,074 Gain from Sale of Capital Assets - 5 7 3 Miscellaneous 1,317 1,587 2,563 1,944 Transfers and Extraordinary Items (4,322) (4,265) (4,138) (3,869) Total Governmental Activities 60,526 67,472 69,750 73,955 Business-Type Activities:

Investment Earnings 454 440 576 690 Miscellaneous 3,349 2,622 3,439 3,478 Transfers 4,322 4,265 4,138 3,869 Total Business-Type Activities 8,125 7,327 8,153 8,037 Total Primary Government 68,651 74,799 77,903 81,992 Changes in Net Position:

Governmental Activities 16,064 22,773 21,799 30,085 Business-Type Activities 14,275 17,105 26,765 34,876 Total Primary Government 30,339$ 39,878$ 48,564$ 64,961$ Fiscal Year

CITY OF VISALIA

CHANGES IN NET POSITION

ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)

191

2018 2019 2020 2021 2022 2023
3,657$ 2,967$ 1,882$ 505$ 1,547$ 1,770$ 1,817 1,701 1,616 1,775 2,313 2,282 1,337 - - - - - 27,060 28,057 27,479 27,744 30,975 30,013 20,216 19,225 19,457 20,564 21,574 21,505 5,055 5,000 5,081 3,623 5,161 5,838 68 50 4 - - - 441 573 580 646 636 564 3,465 3,959 4,520 4,934 5,771 5,133 16,499 12,987 15,949 15,455 14,030 16,395 12,160 5,093 7,650 12,093 7,045 2,965 91,775 79,612 84,218 87,339 89,052 86,465 125,713 118,476 126,251 131,421 139,694 138,156 (54,376) (50,718) (66,527) (56,365) (46,202) (67,793) 21,325 1,293 10,014 14,263 10,711 2,450 (33,051) (49,425) (56,513) (42,102) (35,491) (65,343) 54,104 58,561 60,351 70,926 82,151 85,969 23,687 25,076 26,297 27,875 29,810 31,727 - - - - - 4,533 - - - - - 3,707 - - - - - 3,752 8,341 8,663 7,987 9,275 10,714 - 1,409 4,064 4,614 1,311 (5,351) 3,711 1 - - - - - 1,504 1,704 1,387 1,056 1,196 1,023 (4,140) (3,785) (4,489) (4,018) (3,836) (4,894) 84,906 94,283 96,147 106,425 114,684 129,528 872 4,024 4,345 674 (5,026) 2,185 3,431 2,344 2,939 1,810 3,356 3,068 4,140 3,785 4,489 4,018 3,836 4,894 8,443 10,153 11,773 6,502 2,166 10,147 93,349 104,436 107,920 112,927 116,850 139,675 30,530 43,565 29,620 50,060 68,482 61,735 29,768 11,446 21,787 20,765 12,876 12,597 60,298$ 55,011$ 51,407$ 70,825$ 81,358$ 74,332$ Fiscal Year

192

2014 2015 2016 2017
General Fund:

Nonspendable 580$ 435$ 357$ 1,346$ Restricted - - - 1,193 Committed 16,330 17,719 28,018 19,805 Assigned 18,629 19,486 18,781 21,857 Unassigned 1,387 4,043 4,787 9,612 Total General Fund 36,926 41,683 51,943 53,813 All Other Governmental Funds:

Nonspendable 15 - - 47 Restricted 44,817 45,965 50,857 51,465 Committed 5,318 7,271 15,903 9,582 Assigned 1,632 1,632 1,243 1,243 Unassigned (Deficit) (6,419) (2,471) (11,627) (5,393) Total All Other Governmental Funds 45,363 52,397 56,376 56,944 Total Governmental Fund Balance 82,289$ 94,080$ 108,319$ 110,757$ Fiscal Year

CITY OF VISALIA

FUND BALANCES OF GOVERNMENTAL FUNDS

MODIFIED ACCRUAL BASIS OF ACCOUNTING

LAST TEN FISCAL YEARS
(In Thousands)

193

2018 2019 2020 2021 2022 2023
1,365$ 1,125$ 678$ 3,480$ 1,564$ 3,498$ - - - - - - 21,921 15,344 16,239 16,609 17,559 20,805 24,981 25,215 30,278 27,629 27,939 27,968 10,214 9,753 5,497 5,428 6,731 3,142 58,481 51,437 52,692 53,146 53,793 55,413 815 - - - - - 54,253 68,188 91,088 144,003 210,248 189,403 18,233 31,924 30,259 36,280 14,099 57,720 1,632 1,632 1,168 848 301 1,654 (6,005) (3,925) (4,475) (31) (989) (737) 68,928 97,819 118,040 181,100 223,659 248,040 127,409$ 149,256$ 170,732$ 234,246$ 277,452$ 303,453$ Fiscal Year

194

2014 2015 2016 2017
Revenues:

Sales Tax 28,791$ 32,237$ 36,144$ 44,575$ Property Tax 27,306 26,711 26,880 22,370 Other Taxes 6,920 7,662 7,608 7,681 Subventions and Grants 15,336 13,137 13,286 14,160 Li censes and Permi ts 61 109 87 81 Fees and Fi nes 8,751 9,199 10,520 10,552 Use of Money and Property 907 2,334 1,133 1,522 Charges for Current Services 5,589 6,257 7,014 7,859 Misce llane ous 2,253 2,067 2,477 2,578 Total Revenues 95,914 99,713 105,149 111,378 Expenditures
Current:

General Government 2,477 2,896 3,102 3,335 Community Development 5,209 6,684 5,119 5,245 Communi ty Servi ces 7,956 8,104 3,231 3,531 Housing & Community Grants - - - - Public Safety:

Police 30,228 30,469 31,728 33,378 Fire 13,708 13,598 15,070 15,855 Public Works 3,239 5,563 8,958 8,874 Capital Outlay 22,429 17,378 32,435 34,136 Debt Servi ce:

Principal Re tire m e nt 649 2,229 1,178 1,321 Interest and Fiscal Charges 189 138 694 548 Total Expenditures 86,084 87,059 101,515 106,223 Excess (Defi ci ency) of
Revenues Over (Under)
Expenditures 9,830 12,654 3,634 5,155 Other Financing Sources (Uses):

Sal es of Real Property 11 12 655 1,465 Proceeds from Sal e of Capi tal - 5 7 3 Issuance of Debt - Leases Acqui red - - - - Transfers In 970 2,482 2,070 8,373 Transfers Out (5,300) (7,254) (6,304) (12,365) Total Other Financing
Sources (Uses) (4,319) (3,197) 10,334 (2,524) Extraordinary Items - - - - Net Change in Fund Balances 5,511$ 9,457$ 13,968$ 2,631$ Debt Servi ce as a Percentage of
Noncapital Expenditures 1 1.2% 3.2% 2.4% 2.3%
1 The calculation of debt service as a percentage of noncapital expenditures excludes capital outlays.

In 2020 the City separated 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)

195

2018 2019 2020 2021 2022 2023
54,104$ 58,561$ 60,350$ 70,926$ 82,151$ 84,617$ 23,694 25,048 26,282 27,885 29,726 31,769 8,272 8,619 8,020 9,290 10,868 11,771 10,355 13,505 14,829 17,865 14,689 20,859 88 95 84 73 57 97 10,991 12,267 13,929 14,264 17,382 13,106 1,843 4,470 4,841 1,479 (4,977) 4,056 8,367 8,692 8,374 8,117 10,530 9,441 2,260 2,999 2,208 1,754 2,780 2,151 119,974 134,256 138,917 151,653 163,206 177,867 3,913 3,049 3,944 4,610 3,600 4,546 5,272 6,052 2,114 2,552 3,135 3,131 3,510 3,988 10,501 9,736 11,825 12,645 - - 753 2,269 947 2,637 35,382 38,446 41,638 42,420 44,792 47,580 16,160 17,115 17,360 18,678 20,542 22,135 9,053 8,966 5,400 5,305 5,881 6,723 24,248 27,031 29,900 19,298 21,389 39,293 1,364 1,136 895 882 1,041 1,729 507 465 437 397 362 346 99,409 106,248 112,942 106,147 113,514 140,765 20,565 28,008 25,975 45,506 49,692 37,102 113 517 - 1,028 1,386 173 1 1 16 3 47 1 - - - - - 73 3,272 9,509 8,482 13,700 15,959 11,748 (7,398) (13,125) (12,813) (17,697) (24,795) (23,097) (4,012) (3,098) (4,315) (2,966) (7,403) (11,102) - - - - - - 16,553$ 24,910$ 21,660$ 42,540$ 42,289$ 26,000$

2.3% 2.0% 1.5% 1.5% 1.4% 1.9%
Fiscal Year

196

NOTE:

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

1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006 -008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office

2014 2015 2016 2017
City Direct Rate:

City Basic Rate 0.1152$ 0.1150$ 0.1150$ 0.1150$ Total City Direct Rate 0.1152 0.1150 0.1150 0.1150 Overlapping Rates:

Visalia Unified School District 0.3068 0.3068 0.3068 0.3068 College of The Sequoias 0.0537 0.0537 0.0537 0.0537 County of Tulare 0.1832 0.1832 0.1834 0.1836 Tulare County Schools 0.0248 0.0248 0.0248 0.0248 Tulare County Flood Control District 0.0022 0.0022 0.0022 0.0022 Air Pollution Control District 0.0004 0.0004 0.0004 0.0004 Library Fund 0.0156 0.0158 0.0158 0.0158 Memorial District 0.0016 0.0016 0.0016 0.0016 Cemetery District 0.0011 0.0011 0.0011 0.0011 Delta Vector Control District 0.0142 0.0142 0.0142 0.0142 Kaweah Delta Hospital 0.0096 0.0096 0.0096 0.0096 Kaweah Delta Water District 0.0289 0.0289 0.0289 0.0289 Education Revenue Augmentation 0.2429 0.2430 0.2430 0.2426 Visalia Unified School District Bonds 0.0300 0.0300 0.0226 0.0270 Kaweah Delta Hospital Bonds 0.0282 0.0209 0.0237 0.0206 Kaweah Delta Water Assessment 0.0004 0.0005 0.0004 0.0003 Total Direct Rate 1

1.0588$ 1.0517$ 1.0472$ 1.0482$ Fiscal Year

CITY OF VISALIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(Rate per $100 of Assessed Value)

197

2018 2019 2020 2021 2022 2023

0.1150$ 0.1150$ 0.1150$ 0.1150$ 0.1150$ 0.1540$

0.1150 0.1150 0.1150 0.1150 0.1150 0.1540

0.3068 0.3068 0.3068 0.3068 0.3068 0.3068

0.0537 0.0537 0.0537 0.0537 0.0537 0.0537

0.1825 0.1825 0.1818 0.1820 0.1820 0.3722

0.0248 0.0248 0.0248 0.0248 0.0248 0.0248

0.0021 0.0021 0.0021 0.0021 0.0021 0.0055

0.0004 0.0004 0.0004 0.0004 0.0004 0.0004

0.0157 0.0157 0.0156 0.0156 0.0156 0.0174

0.0016 0.0016 0.0016 0.0016 0.0016 0.0020

0.0011 0.0011 0.0011 0.0011 0.0011 0.0018

0.0141 0.0141 0.0141 0.0141 0.0140 0.0237

0.0096 0.0096 0.0096 0.0096 0.0096 0.0096

0.0289 0.0289 0.0289 0.0289 0.0289 0.0289

0.2438 0.2438 0.2447 0.2445 0.2447 -

0.0183 0.0225 0.0225 0.0425 0.0350 0.0300

0.0198 0.0181 0.0181 0.0169 0.0180 0.0160

0.0004 0.0004 0.0003 0.0004 0.0004 -

1.0386$ 1.0411$ 1.0411$ 1.0600$ 1.0537$ 1.0468$ Fiscal Year

198

NOTE:

1 The City’s total direct tax rate varies by tax rate area. The rate provided comes from tax rate area 006 -008 and is representative of other tax rate areas within the City.

Source: Tulare County Auditor Controller’s Office
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Value Rate 1
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% 2023 13,813,575 870,691 14,684,266 0.154%

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

CITY OF VISALIA
City
(In Thousands)

199

Percent Of Percent Of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Rank Value Value Rank
California Dairies Inc. 172,832$ 1.18% 1 - - - 3315 Kelsey LLC 128,224 0.87% 2 - - - Pac West Diversified LP 93,500 0.64% 3 - - - United Parcel Service Inc 75,955 0.52% 4 - - - J Beast LP 62,476 0.43% 5 - - - BT-OH LLC 60,880 0.41% 6 - - - Visalia Mall LP 59,926 0.41% 7 - - - Perfection Pet Foods LLC 55,517 0.38% 8 - - - 7227 W Doe Ave LLC 53,905 0.37% 9 - - - Amazon.com Services LLC 46,728 0.32% 10 - - - California Dairies Inc. - - - 201,520$ 2.49% 1 Imperial Bondware Corp. - - - 68,078 0.84% 2 VF Outdoor - - - 46,335 0.57% 3 Visalia Mall LP - - - 41,914 0.52% 4 VWR International LLC - - - 35,480 0.44% 5 Cottonwood Fresno Holdings LLC - - - 35,000 0.43% 6 Calif Water Service Co - - - 33,631 0.42% 7 J Beast LP - - - 30,411 0.38% 8 Blam-Jade LP - - - 30,203 0.37% 9 Bank of America NT&SA - - - 27,626 0.34% 10 Total Ten Largest Tax Payers 809,943$ 5.52% 550,198$ 6.81% All Other Tax Payers 13,874,323$ 94.48% 7,529,057$ 93.19% Total Assessed Valuation - All Tax Payers 14,684,266$ 100.00% 8,079,255$ 100.00% The amounts shown above include assessed value data for both the City and the Successor Agency.

Source: Tulare County Auditor-Controller
2023

CITY OF VISALIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(In Thousands)
2014

200

Source: Tulare County Auditor-Controller
Note: In 2022-23, Tulare County implemented a new financial and reporting system.

Fiscal Taxes Levied
Year Ended for the Percent
June 30 Fiscal Year Amount of Levy
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%
2023 28,636 28,768 100.46%
Fiscal Year of Levy

CITY OF VISALIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(In Thousands)
Collected within the

201

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%
NOTES:
(1)
(2)
(3)
(4)
(5)
(6)
Source:
(1)(2)(3) State Board of Equalization, State of California (4)(5)(6) City of Visalia
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
The Bradley-Burns Uniform Local Sales and Use Tax Law was encated in 1955. The law authorizes cities and counties to impose a sales and use tax. Effective January 1, 1962, all cities and counties have adopted ordinances for the State Board of Equalization to collect the local tax.

Sales Tax only. The use tax was enacted effective July 1, 1935.

In March 2004, a State ballot measure was passed issuing deficit reduction bonds for State purposes. Funding was provided effective July 1, 2004, by repealing 25% of the local 1% sales tax and then adopting a new 1/4 cent sales tax dedicated to the repayment of the deficit reduction bonds. Cities and counties would then be "made whole" by the State from increased property tax allocations via reduced contributions to ERAF. This "triple flip" is theoretically revenue-neutral, and as such, the effective rate for revenue purposes remains at 1%.

In March 2004, the voters of the City of Visalia passed a sales tax override (Measure T) to increase public saftey in the community increasing the City rate by 1/4% ,effectiveJuly 1, 2004. The measure requires the City Manager to annually recertify the Measure T plan to the City Council. Additionally,the plan must be reafirrmed every 8 years by a 4 out of 5 City Council approval.

In November 2006, voters in the County of Tulare approved a countywide sales tax measure (Measure R) giving the County a 1/2% rate increase which became effective April 1, 2007. The sales tax measure has a sunset period of 30 years. The revenue is earmarked for transportation projects with allocations as follows: 50% for regional projects, 35% goes to cities for their street programs, 14% for transportationenhancement programs, and 1% for administration.

In November 2016, voters of the City of Visalia passed a 1/2 (half-cent) sales tax override (Measure N), effective April 1, 2017.

The proceeds of this tax will provide the City with a reliable, ongoing, local source of funding for public safety, repairs and maintenance for streets, and maintenance of parks and trails.

202

Source:
(1) California Department of Finance
(2) Avenue Insights & Analytics (MuniServices)

Note: 2022 is latest available year.
2018(2) 2019(2) 2020(2) 2021(2) 2022(2)
Retail Stores
Apparel Stores 144,806$ 145,638$ 107,987$ 185,096$ 166,673$ General Merchandise Stores 406,490 405,765 387,705 471,973 504,821 Food Stores 124,058 124,210 138,239 131,034 149,412 Eating and Drinking Places 288,003 296,010 249,567 348,749 381,344 Home Furnishings and Appliances 91,966 92,407 91,551 119,453 106,914 Bldg. Material and Farm Implements 312,640 242,041 286,433 309,307 335,070 Auto Dealers and Auto Supplies 377,145 375,482 370,099 479,184 452,229 Service Stations 155,709 171,821 132,712 186,585 225,791 Other Retail Stores 215,347 214,145 218,646 346,084 516,480 Retail Stores Totals 2,116,164 2,067,519 1,982,939 2,577,465 2,838,734 All Other Outlets 854,888 1,029,450 1,081,731 1,251,414 1,363,230 Totals All Outlets 2,971,052$ 3,096,969$ 3,064,670$ 3,828,879$ 4,201,964$

CITY OF VISALIA

TAXABLE SALES TRANSACTIONS BY TYPE
2013-2022 CALENDAR YEARS
(Dollars in Thousands)
2013(1) 2014(2) 2015(2) 2016(2) 2017(2)
Retail Stores
Apparel Stores 117,386$ 123,465$ 128,885$ 138,129$ 138,637$ General Merchandise Stores 372,736 382,040 392,404 398,900 400,820 Food Stores 100,028 109,234 108,996 123,005 120,900 Eating and Drinking Places 212,084 227,906 247,406 263,310 277,409 Home Furnishings and Appliances 61,870 65,265 83,136 91,778 86,839 Bldg. Material and Farm Implements 177,376 180,519 203,921 213,421 222,315 Auto Dealers and Auto Supplies 308,334 320,499 370,884 411,684 401,536 Service Stations 212,292 210,790 155,270 141,307 163,999 Other Retail Stores 234,171 266,053 208,015 212,872 203,637 Retail Stores Totals 1,796,276 1,885,770 1,898,917 1,994,406 2,016,092 All Other Outlets 648,627 642,282 742,120 775,194 794,330 Totals All Outlets 2,444,903$ 2,528,051$ 2,641,037$ 2,769,600$ 2,810,422$

203

Source: Avenue Insights & Analytics (MuniServices)

Note: 2022 is latest available year.

Amazon Lampe Chrysler Dodge Jeep Ram
Amazon Services Lawrence Tractor Co.

ARCO AM/PM Mini Marts Lowe's Home Improvement
Best Buy Stores MWI Veterinary Supply
Bluescope Buildings Ross Stores
Butler Animal Health Supply Save Mart Supermarkets
Chevron Service Stations Target Stores
COSTCO Wholesale Tri-Animal Health Services
Don Rose Oil Co. Visalia Honda
Giant Chevrolet Company Visalia Toyota
HILTI VWR International
Home Depot Wal Mart Stores
J.C. Lansdowne
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
Giant Chevrolet Company Union 76 Service Stations
HILTI Valero Service Stations
Home Depot Valley Pacific Petroleum
J C Penney Company 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)
2022 CALENDAR YEAR and NINE YEARS AGO
2013 CALENDAR YEAR
2022 CALENDAR YEAR

204

NOTES:

1US Department of Commerce Bureau of Economic Analysis

Personal Income Data from the Bureau of Economic Analysis is only available through 202 1.

Fiscal Year Certificates Total
Ended of Notes Lease SBITA Governmental
June 30 Participation Payable Liabilities Liabilities Activities 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 2023 7,533 - 679 732 8,944 Governmental Activities

CITY OF VISALIA

LAST TEN FISCAL YEARS

RATIOS OF OUTSTANDING DEBT BY TYPE
(In Thousands, except Debt per Capita)

205

Total Total Percentage Debt
Certificates of SBITA Business-type Primary of Personal Per Participation Notes Liabilities Activities Government Income1 Capita 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% 892 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 0.47% 768 8,476 86,775 - 95,251 104,475 N/A 735 7,098 84,232 65 91,395 100,339 N/A 702 Business-type Activities

206

Outstanding General Bonded Debt
Fiscal Year Certificates Percent of Debt
Ended of Lease SBITA Assessed Per
June 30 Participation Liabilities Liabilities Total Value 1 Capita 2014 1,384$ -$ -$ 1,384$ 0.02% 11 2015 1,304 - - 1,304$ 0.02% 10 2016 13,670 - - 13,670$ 0.15% 105 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% 67 2022 8,501 723 - 9,224$ 0.07% 65 2023 7,533 679 732 8,944$ 0.06% 63 1Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds.

CITY OF VISALIA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(In Thousands, except Debt per Capita)

207

NOTE:
1Percentage of overlapping agency's assessed valuation located within boundaries of the City

Source: Avenu Muni Services

2022-23 City Assessed Valuation 14,684,266$
Successor Agency Incremental Valuation 51,203
Total Assessed Valuation 14,735,469$
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/23 Debt
Overlapping Tax and Assessment Debt:

College of the Sequoias Tulare School Facilities Improvement District 0.549% 55,589$ 305$ College of the Sequoias Visalia School Facilities Improvement District 68.623% 24,358 16,715 Visalia Unified School District 86.500% 84,175 72,811 Tulare Joint Union High School District 0.711% 13,227 94 Liberty School District 17.966% 331 59 Kaweah Delta Hospital District 85.307% 37,295 31,815 City of Visalia 1915 Act Bonds 100.000% 254 254 Total Overlapping Tax and Assessment Debt 215,229 122,055 Direct and Overlapping General Fund Debt:

Tulare County Certificates of Participation 33.911% 40,996 13,902 Tulare County Pension Obligation Bonds 33.911% 201,020 68,168 Tulare County Board of Education Certificates of Participation 33.911% 34,365 11,654 Visalia Unified School District Certificates of Participation 86.500% 30,570 26,443 Tulare Joint Union High School District General Fund Obligations 0.711% 211 1 Liberty School District Certificates of Participation 17.966% 2,065 371 City of Visalia General Fund Obligations 100.000% 8,944 8,944 Total Direct and Overlapping General Fund Debt 318,171 129,483 Overlapping Tax Increment Debt (Successor Agency) 100.000% 890 890 Total Direct Debt 8,944 8,944
Total Overlapping Debt 525,346 243,484
Combined Total Debt 534,290$ 252,428$

CITY OF VISALIA

DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
(In Thousands)

208

CITY OF VISALIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(In Thousands)

NOTE:

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City Finance Department
Tulare County Tax Assessor’s Office
2014 2015 2016 2017
Assessed valuation 8,079,201$ 8,628,953$ 9,110,634$ 9,580,740$ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 2,019,800 2,157,238 2,277,659 2,395,185 Debt limit percentage 15% 15% 15% 15%
Debt limit 302,970 323,586 341,649 359,278 Total net debt applicable to limit:

General obligation bonds - - - - Legal debt margin 302,970$ 323,586$ 341,649$ 359,278$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Fiscal Year

209

2018 2019 2020 2021 2022 2023
10,001,046$ 10,601,276$ 11,145,062$ 11,789,750$ 12,516,423$ 14,684,266$ 25% 25% 25% 25% 25% 25%
2,500,262 2,650,319 2,786,266 2,947,438 3,129,106 3,671,067 15% 15% 15% 15% 15% 15%
375,039 397,548 417,940 442,116 469,366 550,660 - - - - - - 375,039$ 397,548$ 417,940$ 442,116$ 469,366$ 550,660$

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year

210

Fiscal Year Less: Net Debt
Ended Operating Operating Available Service
June 30 Revenue Expenses Revenue Principal Interest Coverage 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 2023 30,013 19,653 10,360 2,543 1,822 2.37 Debt Service
Cleanwater State Revolving Fund Loan

CITY OF VISALIA

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
(In Thousands)
Wastewater & Storm Sewer Maintenance 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.

211

Per
Assessed Capita Personal Per Capita Unemployment
Calendar Population Value Assessed Income Personal Rate Year (1) (in thousands) (2) Value (in thousands) (3) Income (3) (4) 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 22,891,980 47,986 11.1% 2022 142,066 12,516,423 88,103 NA NA 7.4% 2023 143,031 14,684,266 102,665 NA NA 10.1%

Visalia City CouncilFebruary 5, 2024

Visalia City Council
February 5, 2024