The URL can be used to link to this page

Home My WebLink About2023-02-15 Packet - Special Meeting - Financial PresentationsPage 1 of 2 City Council Special Meeting AGENDA Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://zoom.us/j/97199426600 Or you can call in using your telephone only: • Call (toll free) 1-888-788-0099 • Enter the Access Code: 971 9942 6600 • To Raise Hand enter *9 • To Speak after being recognized: enter *6 to unmute yourself Or One tap mobile (for easy connection on smart phones): US: +16699009128,,97199426600# or +12532158782,,97199426600# Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings. February 15, 2023 - 4:00 PM 1. ROLL CALL AND PLEDGE OF ALLEGIANCE 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 3. UNFINISHED BUSINESS 4. NEW BUSINESS 4.a. Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2022. Recommended Action: Receive and file ACFR. Attachments: 1. Annual-ACFR-Report-City-June-30-2022 4.b. Receive and File Second Quarter Financial Report. Recommended Action: Receive and file report. Attachments: None 4.c. Review and Update, if Warranted, the Ukiah City Council Strategic Plan Recommended Action: Review the Ukiah City Council Strategic Plan and provide direction as may be warranted to update the document. Attachments: Page 1 of 277 Page 2 of 2 1. City Council Strategic Plan 2023 DRAFT 5. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Kristine Lawler, City Clerk Dated: 2/10/23 Page 2 of 277 Page 1 of 2 Agenda Item No: 4.a. MEETING DATE/TIME: 2/15/2023 ITEM NO: 2023-2370 AGENDA SUMMARY REPORT SUBJECT: Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2022. DEPARTMENT: Finance PREPARED BY: Ginny Feth-Michel, Dan Buffalo, Finance Director, Olga Keough, Controller, Mary Horger, Financial Services Manager, Devon King, Assistant Accountant PRESENTER: Dan Buffalo, Finance Director ATTACHMENTS: 1. Annual-ACFR-Report-City-June-30-2022 2. Presentation at Meeting - ACFR Presentation, 2022 Summary: Finance Department will present to the City Council the audited Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2022. Background: Pursuant to City policy and state law, the City has prepared financial statements for the year ended June 30, 2022, in accordance with generally accepted accounting principles (GAAP). Those statements were audited by an independent public accounting firm, Van Lant and Fankhanel, LLP, licensed by the State of California, and knowledgeable of governmental accounting and reporting. Discussion: Management is pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. This report is prepared by the Accounting Division of the Finance Department in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period of time following the year-end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards. Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The City’s MD&A can be found immediately following the report of the independent auditor. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. While traditionally addressed to the governing body of the City, this report is intended to provide relevant Page 3 of 277 Page 2 of 2 financial information to external users (non-management employees), who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2022, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. There were, however, audit findings, recommendations, and subsequent management responses made to several items related to internal control, most of which were carryovers from prior fiscal years. That information is found in the ACFR beginning on page 212 of the pdf. Management addressed several of those items from the past and is committed to addressing the remaining item in the 2022-23 fiscal year. Management will present the 2022 ACFR (Attachment 1) to Council and highlight key elements of the report for its consideration, including how to navigate the document. Recommended Action: Receive and file ACFR. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: N/A Page 4 of 277 CITY OF UKIAH, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2022 ATTACHMENT 1 Page 5 of 277 ANNUAL COMPREHENSIVE FINANCIAL REPORT CITY OF UKIAH, CALIFORNIA FISCAL YEAR ENDED JUNE 30, 2022 PREPARED BY CITY OF UKIAH FINANCE DEPARTMENT | ACCOUNTING DIVISION TEAM MEMBERS: DANIEL BUFFALO, MPA, CPA, CGMA | FINANCE DIRECTOR GINNY FETH-MICHEL, CPA | ASSISTANT FINANCE DIRECTOR MARY HORGER | FINANCIAL SERVICES MANAGER - PROCUREMENT, CAPITAL, AND SPECIAL PROJECTS OLGA KEOUGH, CPA | CONTROLLER SARAH BROWN | FINANCIAL SERVICES MANAGER - DISBURSEMENTS JESSIE BRUNELL | SENIOR ACCOUNTANT DEVON KING | ASSISTANT ACCOUNTANT Page 6 of 277 THIS PAGE INTENTIONALLY LEFT BLANK Page 7 of 277 TABLE OF CONTENTS INTRODUCTORY SECTION LETTER OF TRANSMITTAL ........................................................................................................................................................................ i Profile of the City of Ukiah.............................................................................................................................................................. ii The City of Ukiah Organization ...................................................................................................................................................iii Current Economic Conditions and Outlook ............................................................................................................................. vii Measure P ............................................................................................................................................................................................ x Measure Y ......................................................................................................................................................................................... xii Relevant Financial Policies .......................................................................................................................................................... xiii Acknowledgements ....................................................................................................................................................................... xiii GFOA Certificate of Achievement .................................................................................................................................................. xiv List of Officials ..................................................................................................................................................................................... xiv CITY ORGANIZATIONAL CHART .......................................................................................................................................................... xv FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ......................................................................................................................................................... 1 MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) (REQUIRED SUPPLEMENTARY INFORMATION) .................................... 4 Financial Highlights .......................................................................................................................................................................... 4 Overview of the Annual Comprehensive Financial Report ..................................................................................................... 4 Government-Wide Financial Analysis ......................................................................................................................................... 8 Net Position .................................................................................................................................................................................... 8 Activities ......................................................................................................................................................................................... 8 Governmental Activities ............................................................................................................................................................. 9 Business-type Activities ............................................................................................................................................................. 11 Capital Assets and Debt Administration .................................................................................................................................... 13 Fund Financial Analysis ................................................................................................................................................................. 14 Governmental Funds ...................................................................................................................................................................... 15 Proprietary Funds ............................................................................................................................................................................ 16 Budgetary Comparison ................................................................................................................................................................... 16 Economic Outlook ............................................................................................................................................................................ 17 Requests for Information ............................................................................................................................................................... 18 GOVERNMENT-WIDE FINANCIAL STATEMENTS ............................................................................................................................... 19 Statement of Net Position ......................................................................................................................................................... 20 Statement of Activities .............................................................................................................................................................. 21 Page 8 of 277 FUND FINANCIAL STATEMENTS ........................................................................................................................................................... 22 Governmental Funds ...................................................................................................................................................................... 22 Balance Sheet ............................................................................................................................................................................... 23 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................24 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................................ 25 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ............................................................................................................................ 26 Proprietary Funds ............................................................................................................................................................................ 27 Statement of Net Position ......................................................................................................................................................... 28 Statement of Revenues, Expenses, and Changes in Net Position ................................................................................... 29 Statement of Cash Flows .......................................................................................................................................................... 30 Fiduciary Funds ................................................................................................................................................................................ 31 Statement of Fiduciary Net Position ...................................................................................................................................... 32 Statement of Changes in Fiduciary Net Position ................................................................................................................ 33 NOTES TO THE BASIC FINANCIAL STATEMENTS INDEX .................................................................................................................... 34 Note 1 - Summary of Significant Accounting Policies ............................................................................................................. 35 Note 2 - Stewardship, Compliance, and Accountability ........................................................................................................ 45 Note 3 - Cash and Investments..................................................................................................................................................... 46 Note 4 - Accounts Receivable ....................................................................................................................................................... 50 Note 5 – Notes and Loans Receivable ......................................................................................................................................... 51 Note 6 - Capital Assets ................................................................................................................................................................... 52 Note 7 - Long-Term Liabilities ..................................................................................................................................................... 54 Note 8 – Landfill Closure and Post Closure Costs .................................................................................................................. 60 Note 9 - Interfund Transactions and Interfund Borrowing .................................................................................................. 60 Note 10 - Risk Management .......................................................................................................................................................... 62 Note 11 - Public Employee Retirement Plan .............................................................................................................................. 65 Note 12 – Related Organizations ................................................................................................................................................. 77 Note 13 - Commitments and Contingencies ............................................................................................................................. 79 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency ..................................................................... 80 Note 15 – New Pronouncements .................................................................................................................................................. 82 Note 16 – Service Contracts .......................................................................................................................................................... 82 Required Supplementary Information (RSI) ................................................................................................................................. 84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Agent Multiple Employer (Miscellaneous), Last Ten Years ............................................................................................................................................. 84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years ....................................................................................................................................................................................... 86 General Fund Budgetary Comparison Schedule ................................................................................................................. 88 Page 9 of 277 Notes to Required Supplemental Information .................................................................................................................... 89 SUPPLEMENTARY INFORMATION ......................................................................................................................................................... 90 Streets Capital Improvement Budgetary Comparison Schedule ..................................................................................... 90 General Capital Projects ........................................................................................................................................................... 91 Pension Debt Service Budgetary Comparison Schedule.................................................................................................... 92 Nonmajor Governmental Funds................................................................................................................................................... 93 Combining Balance Sheet ......................................................................................................................................................... 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance .................................................. 104 Governmental Fund Budget Comparisons ............................................................................................................................... 110 Special Recreation Events ........................................................................................................................................................ 110 Special Revenue Fund ................................................................................................................................................................ 111 Prop 172 ........................................................................................................................................................................................ 112 Museum Grant Fund................................................................................................................................................................. 113 ARRC ............................................................................................................................................................................................ 114 Downtown Business Improvement ....................................................................................................................................... 115 Low-Mod Income Housing Fund (LMIHF) ....................................................................................................................... 116 Winter Special Events .............................................................................................................................................................. 117 Advanced Planning .................................................................................................................................................................... 118 Highway User Tax (Gas Tax) ................................................................................................................................................. 119 Signalization .............................................................................................................................................................................. 120 1998 STIP Augmentation ......................................................................................................................................................... 121 SB 325 Reimbursement ............................................................................................................................................................ 122 S.T.P.............................................................................................................................................................................................. 123 Trans-Traffic Congestion Relief ............................................................................................................................................ 124 CDBG Program Income ........................................................................................................................................................... 125 HOME Program Income .......................................................................................................................................................... 126 CASP Certification and Training .......................................................................................................................................... 127 Asset Seizure .............................................................................................................................................................................. 128 Sup. Law Enforcement Svc. (SLESF) ................................................................................................................................... 129 Community-Based Transitional Housing ........................................................................................................................... 130 Asset Forfeiture 11470.2 H&S ................................................................................................................................................. 131 Special Revenue - Police .......................................................................................................................................................... 132 American Rescue Fund ............................................................................................................................................................ 133 Transfer Station ......................................................................................................................................................................... 134 Solid Waste Mitigation Fund ................................................................................................................................................ 135 Equipment Reserve................................................................................................................................................................... 136 Page 10 of 277 Special Projects Reserve ........................................................................................................................................................... 137 Park Development Fees ........................................................................................................................................................... 138 Anton Stadium........................................................................................................................................................................... 139 Observatory Park ...................................................................................................................................................................... 140 Playground & Park Amenities ................................................................................................................................................ 141 Swimming Pool .......................................................................................................................................................................... 142 Riverside Park ............................................................................................................................................................................ 143 Skate Park ................................................................................................................................................................................... 144 Softball Complex ...................................................................................................................................................................... 145 Rail Trail ..................................................................................................................................................................................... 146 Debt Service Reserve 2022 LRB ............................................................................................................................................ 147 Riparian Corridor Enhancement........................................................................................................................................... 148 Combining Nonmajor Enterprise funds ................................................................................................................................... 149 Combining Statement of Net Position................................................................................................................................. 150 Combining Statement of Revenues, expenses, and Changes in Net Position ............................................................. 151 Combining Statement of Cash Flows .................................................................................................................................. 152 Combining Internal Service Funds ............................................................................................................................................ 153 Combining Statement of Net Position................................................................................................................................. 154 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................... 155 Combining Statement of Cash Flows .................................................................................................................................. 156 Combining Fiduciary Funds ....................................................................................................................................................... 157 Combining Fiduciary Net Position....................................................................................................................................... 158 Combining Statement of Changes in Fiduciary Net Position ........................................................................................ 159 STATISTICAL SECTION STATISTICAL SECTION INDEX .............................................................................................................................................................. 161 Financial Trends ............................................................................................................................................................................ 163 Net Position by Component ................................................................................................................................................... 163 Changes in Net Position .......................................................................................................................................................... 164 Fund Balances, Governmental Funds .................................................................................................................................. 166 Changes in Fund Balances, Governmental Funds ............................................................................................................ 167 Revenue Capacity .......................................................................................................................................................................... 168 Tax Revenues by Source, Governmental Funds ................................................................................................................ 168 Property Tax Rates ................................................................................................................................................................... 169 Electric Utility Rates ............................................................................................................................................................... 170 Wastewater Utility Rates ....................................................................................................................................................... 171 Page 11 of 277 Water Utility Rates.................................................................................................................................................................. 172 Top Ten Electric Usage Customers ....................................................................................................................................... 173 Debt Capacity ................................................................................................................................................................................. 174 Ratio of Outstanding Debt by Type ..................................................................................................................................... 174 Ratio of General Bonded Outstanding Debt ...................................................................................................................... 175 Computation of Direct and Overlapping Debt .................................................................................................................. 176 Legal Debt Margin Information .............................................................................................................................................. 177 Pledged Net Revenue Debt Coverage .................................................................................................................................. 178 Demographic and Economic information ................................................................................................................................ 179 Demographic and Economic Statistics ................................................................................................................................ 179 Principal Employers ................................................................................................................................................................. 180 Operating Information .................................................................................................................................................................. 181 Full-time and Part-time City Employees by Function ..................................................................................................... 181 OTHER COMPLIANCE REPORTS Independent Auditor’s Report on Internal Control ................................................................................................................... 182 Independent Accountant’s Report on Agreed-upon Procedures Applied to Appropriations Limit .............................. 185 Page 12 of 277 INTRODUCTORY SECTION Page 13 of 277 City of Ukiah, California i Introductory Section LETTER OF TRANSMITTAL January 27, 2023 To the Honorable Mayor, members of the City Council and citizens of the City of Ukiah: We are pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (CAFR) for the fiscal year ended June 30, 2022. This report is prepared in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period following the year end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards. Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile enough, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to external users who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. Letter of Transmittal Page 14 of 277 City of Ukiah, California ii Introductory Section The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unmodified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2022, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. This report includes all funds of the City and its blended component unit: The Successor Agency to the Ukiah Redevelopment Agency. Profile of the City of Ukiah The City of Ukiah is a full-service city in that it provides most typical municipal functions, including public safety (including police and fire protection), public works, community development and parks and recreation. In addition, the City provides proprietary services, including water, wastewater, electric, golf, and airport services. It operates in a council-manager form of government, whereby the council serves as the legislative body and the City Manager its executive. Incorporated on March 8, 1876 as a general law city, Ukiah serves as the administrative seat for the County of Mendocino, and with a residential 1 2022 California Department of Finance, Demographic Research Unit, E-1 Population population of more than 16,080 1 in a 4.7 square-mile area, Ukiah is graced with a strong business base and a well-established residential community. Ukiah is a travel and recreation-oriented destination and fortunate to serve as a hub for Lake, Mendocino, southern Humboldt, and northern Sonoma counties. The Ukiah business environment is positive and well organized. Driven by an active chamber of commerce, local businesses are community-oriented and engaged in City-business partnerships, including economic development, job creation, tourism, and community events. The City’s permanent retail trade area population is approximately 104,000 people with 45,000 within a 10-mile radius. Ukiah’s historic downtown area is the center of commercial activity within the community. There are also commercial areas along Orchard/Perkins corridor, Airport Park Boulevard, Perkins Street, as well as much of State Street. Estimates for Cities, Counties, and the State, May 2022 Page 15 of 277 City of Ukiah, California iii Introductory Section The City’s total labor force is approximately 7,140 2. Unemployment in Ukiah was approximately 4.1 percent in June 2022, down from 6.4 percent in 2021. Within ten miles, there is a diverse labor force specializing in such occupations as sales, technical and professional services, education, medical, agriculture, and government services, and other specialties. The largest employment sectors in the Ukiah area are: government (county and city); education; healthcare; light industry; and the service and hospitality trades. The agricultural and construction sectors are important, and the transportation/public utilities, wholesale trade, finance/insurance/real estate and manufacturing sectors round out the employment picture. Some of the larger employers in the primary trade area include the Ukiah Valley Medical Center, Ukiah Unified School District, County of Mendocino, City of Ukiah, and Savings Bank of Mendocino County. Approximately 18.9 3 percent of all jobs in Mendocino County are located within the City of Ukiah. The City of Ukiah Organization The City is committed to providing high quality services in an economical manner. For fiscal year 2021-22, the City’s efforts were focused in the following areas 4: Public safety services Police: • Develop Crime Analysist position to better support Investigations functions / Develop Records and Communications Management position. • Build a mental health crisis co-responder implementation plan in partnership with behavioral health services. 2 2022 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/intera ctive-labor-market-data-tools.html 3 2022 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/intera ctive-labor-market-data-tools.html Fire: • Identify alternative funding sources & enhance revenue for continued UVFA operations. • Partner with allied agencies on mitigation for Wildland fires. Recreation and civic culture • Observatory Park Strategic Plan. The Strategic plan was completed. The new "Planet Walk" was installed this year. The Interpretive Center to be located at the Observatory office is in development. The Department plans to open Interpretive Center in 2022. • Replacement of playground equipment at Todd Grove Park. Prop 68 Per Capita funds have been obtained and a draft RFP has been produced. Staff hopes to have this project completed during the 2022 calendar year. • Reinstate youth and adult sports leagues. Core Recreation programs such as Youth Basketball and Adult Softball are returning to normal operations. Returning them to high levels of participation is a priority. • Expand seasonal attractions. Escape Rooms and other indoor haunted house activities did not happen due to COVID restrictions. Plans to expand operations post COVID are in process. • Finalize exhibition schedule for FY 2021 and explore exhibition options for FY 2022. The public closure of the Museum due to COVID turned our exhibition schedule upside down. Two exhibitions we were contractually committed to were postponed. By May 8, 2021, the Museum re- opened to the public and it has stayed open 4 A complete list by department and division can be found in the detail section by department and division of the City’s 2022-23 adopted budget, which can be found here: https://stories.opengov.com/ukiahca/published/D1C Yjww-IK Page 16 of 277 City of Ukiah, California iv Introductory Section since. We exhibited one of the postponed shows, "Postcards from Mecca," in Summer 2021 and followed it in Fall 2021 with "30 Years On: Liden, Magruder, & Knight," an in-house exhibition featuring three Mendocino County artists. Both proved very popular. For Winter/Spring 2022, we have opened "The Art of Collecting," an in- house exhibition focused on recent additions to our collections. For Summer 2022, we will present the other postponed contracted exhibition. • Airport runway reconstruction and lighting improvements. Plans and technical specifications for these projects have been approved by the FAA and are awaiting funding awards. • Golf course. Continue to develop CIP objectives with TPGG and Golf Clubs for the continued improvement of the course and facility. These goals and objectives remain the same and are reviewed in a separate presentation. Ukiah Valley Golf Course CIP is presented and approved by City Council annually. • Conference Center improvements. Upgrade bathroom counters and sinks. Revenue was severely affected by the pandemic, leaving the fund short for implementing any new projects. Staff will evaluate going forward based on availability of funds. Community preparedness and emergency management • Develop agreements with key stakeholder/partners for response and recovery efforts. The staff has been working to secure aid and assistance agreements to support emergency response and recovery efforts. • Develop an outreach program to strengthen partnership with the business community. Provide an annual workshop related to emergency preparedness for businesses. COVID-19 has delayed starting this project. EM has worked with the Greater Ukiah Business and Tourism Alliance to provide education or assistance when situations arise. Example: strategizing to help local businesses gain access to COVID testing. Community and economic development • Facilitate business development and retention. Economic Development staff serves as the community and business liaisons for this important project. Weekly communications include flyers, emails, and social media posts. Staff is also actively engaged in the support of businesses in the project area by individualizing mitigations to construction impacts. Particularly as the community recovers from the economic impacts of COVID-19, Staff will continue its efforts to keep the business community strong. • Continue to facilitate the development of housing, both affordable and market-rate. Staff continues to engage with housing developers, helping to connect them with sites, funding, and other resources. • Complete the update of the General Plan and develop standardized procedure for implementation and annual monitoring and reporting. Although the General Plan update was delayed due to the pandemic, the division made progress in 2021-22. The Council’s consideration of a Land Use Alternatives Memo is tentatively scheduled for March 2022. The draft 2040 General Plan is anticipated to be substantially completed by the end of the 2022 calendar year. • Update of the Sphere of Influence (SOI) and implement the Council’s direction regarding valley-wide planning. City Staff continues to work collaboratively with LAFCo and other area partners toward this objective. The City's municipal service review and SOI will be updated in conjunction with the development of the City's General Plan update process and is anticipated to be complete in FY 2022-23. Page 17 of 277 City of Ukiah, California v Introductory Section Infrastructure • Streets and rights-of-way. Leveraged Measure Y funds to secure $25 million in low-cost financing to engage early in significant reconstruction projects, mitigating the effects of inflationary cost pressures on these projects. • Corp Yard. Secured $15 mil in low-cost financing to raze and rebuild the current facility, which is well past its expected lifespan and in need of certain required amenities. • Water and sewer system improvements. Several significant maintenance projects at the plants have been initiate. • Electric undergrounding project. Gobbi and State Street projects have been initiated with several key components completed. Utility Services • Water rights petition. The document has been drafted and is being reviewed internally. • Sewer lateral policy. Policy has been updated to be consistent with current practices and to accelerate reduction in inflow and infiltration. In final review with City Council. • Power source redundancies. Investigate making hydroelectric plant capable of operating independent of transmission grid. Organization and Governance The Ukiah City Council, through a strategic process of discussion, observation, and education, has developed the following set of focused priorities that help guide the development and implementation of policies, activities, and programs. These three areas are in no way all-encompassing of the City’s scope of work nor are they finite; rather, the strategic planning process is considered evolutionary and vision-based. All these areas work to further promote the vibrancy and sustainability of the Ukiah community and the organization. Strategic Plan Priorities • Enhance Our Neighborhoods. Foster a sense of small-town life by embracing our diversity and supporting our residents with quality services and vibrant places (People, Places, & Services). • Develop Quality Infrastructure. Implement a prioritized plan for maintaining and improving public infrastructure and utilities. • Plan for the Future. Utilize sound principles for valley-wide planning • Grow our Businesses. Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues. • Value our Team. Ensure Council and staff work together to create a more responsive and effective workplace environment. Climate Change Action Plan. • Implemented a 100% Green Rate option to all City electric customers. • Continued to Explore and Expand Rebate Programs, including for electric bikes, LED holiday lights, and more. • Continued the Transformation of the Fleet, by replacing gas-powered vehicles with electric and hybrid vehicles in multiple departments. • Encouraged Clean Vehicles when Active Transportation is not Feasible through streamlining of EV charger installations and offering rebates. • Continued to Expand the Great Redwood Trail – Ukiah by beginning development of Phase 4 and continuing to secure site control for maintenance and the addition of amenities. • Expanded Sustainable Water Practices by continuing to explore expansion of the Recycled Water Project and repairing replacing underground infrastructure. • Protected from Dangerous Emission by Preventing Fires through the additional acquisition of open space and maintenance of fuel breaks. Page 18 of 277 City of Ukiah, California vi Introductory Section Diversity, Equity and Inclusion Initiative. • Implemented a 140-page ADA-compliant mobile-friendly website that includes language selection. • Implemented a 5% pay compensation for all bi-lingual/bi-literate employees. • Increased diversity within the agency - 5% increase in staff diversity between 2021 and 2022. • Creation of 31 affordable senior housing units within the City. General Plan Implementation. • Prepared and released Land Use Alternatives Memorandum • Prepared and released the Notice of Preparation for the Draft EIR of the 2040 General Plan • Continued preparation of all Elements of the 2040 General Plan Update with a target release date of the public review draft Ukiah 2040 General Plan in August 2022. Administrative Initiatives • Improvements to records retention and accessibility. Establish transparency of City records by way of highly searchable database available online. A public web portal to the City's Laserfiche system was acquired; however, it was then discovered that the City needed additional hardware in order to operate the portal. The Information Technology department is working with ECS technicians to acquire and put in place the necessary equipment to operate the portal. Additionally, a draft web-page has been constructed that will contain the links to various folders inside Laserfiche. • The move to paperless. Research option of agency going paperless, put city-wide plan together (may be coordinated with multi- departmental team), and begin implementation-Phase 1. Various paperless options were explored, and a 'Trusted System' was acquired to be used in conjunction with Laserfiche - the City's electronic file repository. The Information Technology department is in process of working with ECS Imaging - the City's Laserfiche supplier - to implement the hardware/software. Additionally, a presentation was given to a sub-group of the Management Unit, called Innovators, to collaborate a plan to establish an electronic file folder structure, and departmental processes to utilize the electronic file storage and system. • Continue to engage with County representatives to negotiate tax-sharing agreement between agencies. City staff have continued to research alternatives and methodology for a tax-sharing agreement. However, direct negotiations were put on hold due to the pandemic. This is vital to responsible smart growth and to ensure appropriate service delivery to the larger Ukiah community, most notably in public safety services, including police and fire. City Staff anticipates reengagement with County representatives and intends to begin collaborative discussions in the 2022 calendar year. • Implement Cardlock Phase 2. Phase I of the Cardlock keyless security access system was established in 2016, as a two-phase project used for entry into the City of Ukiah Civic Center and Annex. Phase II will improve access security for staff within the Police and Fire Departments. Also included are the Administrative offices for City Manager, HR offices, Finance Director's office, the Information Technology (IT) Data Center and IT Offices. This project is included in the current 5-year CIP for 21/22. This is scheduled to go before City Council in FY 21/22. • Customer service software implementation. The system was procured, data converted and tested, and training completed. The system was placed into service with a go-live deployment in early July 2022. Remaining elements of the project include addressing billing errors and other system issues as they arise. The Finance Department expects completion of the project by the end of the 2023 fiscal year. Page 19 of 277 City of Ukiah, California vii Introductory Section Current Economic Conditions and Outlook The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Understanding that property and sales taxes generate the City’s largest two sources of general revenue, it is important to look at the economy in the context of people’s wherewithal for producing General Fund tax revenues. Like every community in the nation, Ukiah was hit hard by the COVD-19 pandemic. The local economy, however, endured (and continues to endure) through the most challenging financial impacts of it. Due in large part to its diverse, economic base and function as an economic hub to the greater Mendocino, Lake, southern Humboldt, and northern Sonoma counties, Ukiah businesses have persevered, and the City finances have remained reasonably stable. Prior to March 2020, unemployment remained low, and consumer spending (through sales tax analysis), building permits, and planning work indicates economic confidence to invest in housing and business development was strong. The housing market, while making progress toward recovering values from the highs of 2007, remained strong, albeit insufficient to meet the demands for market-based housing due to its low supply of units and high prices. The City’s economic development efforts and development of a high-quality workforce help to promote Ukiah’s long-term fiscal stability. This will be a cornerstone in the Council’s approach to debt structuring, capital improvement planning, labor negotiations, and service delivery. Top Ten Revenues in the General Fund The City’s top ten revenue sources account for 75.4 percent of total General Fund income. Focusing on these sources can provide a useful understanding of the City’s revenue position. Overall, these key revenues performed marginally worse in FY 2022 than 2021. The strongest performer was TOT, resulting from the return to travel after the pandemic. Business license tax revenue was next, but increased revenues from this source reflected more on the timing of payments from businesses that were past due or late in payment from the prior year. TOP 10 - REVENUES Current from Prior Year Ended June 30, 2022 Percent of REVENUE 2021-22 2020-21 Percent Change General Revenues Top 10: Bradley-Burns Sales Tax 7,308,734$ 7,813,891$ -6.46%25.51% 1/2% District Sales Tax (Measure Y)3,623,593 3,862,145 -6.18%12.65% 1/2% District Sales Tax (Measure P)3,620,957 3,858,985 -6.17%12.64% Prop Tax In Lieu Of VLF 1,597,804 1,559,290 2.47%5.58% Transient Occupancy Tax (TOT)1,485,385 1,362,133 9.05%5.18% Redevelopment Tax Increment Pass-Throug 1,016,947 1,007,559 0.93%3.55% City Utility Franchise Fee 1,006,862 979,180 2.83%3.51% Secured Property Tax 732,148 710,556 3.04%2.56% Refuse Disposal Franchise Fee 690,505 686,967 0.52%2.41% Business License Tax 508,677 484,533 4.98%1.78% Total top 10 21,591,612 22,325,239 -3.29%75.35% Other Revenue 7,061,882 (989,738) -813.51%24.65% Total current revenue 28,653,494$ 21,335,501$ 34.30%100.00% Page 20 of 277 City of Ukiah, California viii Introductory Section Sales Tax. The City collects sales tax from three sources: normal Bradley-Burns sales taxes (1 percent of taxable transactions), a ½ cent transaction and use tax, commonly referred to as Measure P, and a ½ cent transaction and use tax, commonly referred to as Measure Y. All are devoted entirely to the City and are distinct and considered separate sources of revenue. Each behave slightly differently given their tax base. Bradley-Burns sales taxes are referred to as “sales and use” taxes, levied on transactions based geographically in the City. Measures P and Y are referred to as a “transaction and use” taxes and is applied to any taxable sale in the City as well as any sale where the use of the item is in the City. For instance, a car purchased outside the City but registered to, and therefore presumed to be used at, an address within would be levied the ½ cent on the purchase price for Measure P and the same amount for Measure Y. Both are general taxes and can be used for any regular, general governmental purpose; however, the City Council, through resolution, has assigned their use to public safety and streets, respectively. As the hub of Mendocino County, Ukiah has a strong sales tax base. This served the City well in providing sufficient revenues to maintain service levels at pre- pandemic levels with minimal interruption or disruption. Bradley-Burns tax receipts exceeded budgetary estimates for the year; however, they were lower than the year prior. Receipts from Measures P and Y were lower than budgetary estimates and the year prior, contributing to an overall sales tax decline. The specific reasons for this are three-fold: 1. Corrections and true-up payments from the state were higher in FY 2021 than 2022. 2. The local marijuana industry has declined significantly in the region, affecting several of the city’s businesses across sectors. 3. General economic conditions associated with early recessionary effects may be straining local household budgets, resulting in slower growth and reduced spending. Despite the decline, sales tax revenues remain robust. But we expect the condition experienced in FY 2022 to continue into fiscal year 2023. We continue to take a cautiously optimistic view at this time and plan service delivery and budgetary estimates with conservative revenue assumptions. All sales tax due the City is administered by the California Department of Tax and Fee Administration (CDTFA). Property Tax in Lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the state’s take of Vehicle License Fees (VLF). This revenue source typically follows regular property tax collections, discussed under “Secured Property Tax” below and is up 2.47 percent compared to last year. This is most related to the annual adjustment under Prop 13, capped at a 2 percent annual increase in assessed value. But it also includes increases as property is reassessed to current market rates resulting from change in ownership. Transient Occupancy Tax (TOT). Commonly referred to as a “bed,” “hotel,” or “room” tax this revenue source was performing strongly over the last two years up until March. Travel restriction brought Page 21 of 277 City of Ukiah, California ix Introductory Section on by the pandemic will continue to negatively affect this revenue source. However, driven by increased tourism in the greater Ukiah Valley area and a larger volume of travelers heading north, this revenue source is poised to continue its growth trend for several more years after the pandemic has abated. Visitors are stopping in Ukiah as a final layover before making the trek to Fort Bragg and Humboldt County and are exploring the wonders of what the Ukiah Valley has to offer. The TOT rate in Ukiah currently is 10 percent; however, 1 percentage point has been committed by the Ukiah City Council to fund the Visit Ukiah Program. As mentioned previously, TOT receipt were up from the year prior as travel resumed following the lock downs of the pandemic. We expect this revenue sources to continue to increase into the next fiscal year as vacancy rates at Ukiah hoteliers return to a more normal rate. City Utility Franchise Fees. This revenue source is a charge to the City’s electric utility. Franchise fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of-way and City property, such as roads, sidewalks, parklands, etc. The rents are established by the City Council and typically are correlated to gross revenues generated by the utility provider. Revenues from this source remain stable with a nominal increase from the prior year, mostly from recently enacted rate adjustments by the electric utility. Redevelopment Tax Increment Pass-Through. After the dissolution of Redevelopment in California by the Legislature, the Ukiah Redevelopment Agency was sent into receivership of a successor agency. Property tax increment revenue once received by the former redevelopment agency was instead held in trust by the County Auditor-Controller in a specific fund, affectionately known as the Redevelopment Property Tax Trust Fund (RPTTF). Property tax increment collected in this fund would first pay the County Auditor-Controller’s administrative costs, then pass to the successor agency of the former RDA (City of Ukiah) to satisfy the obligations of the former agency, then to the taxing entities in the project area of the former RDA, including the Ukiah Unified School District and the County of Mendocino General Fund. The City also receives a share of these residuals which are reported in the General Fund. This revenue source can track like regular (secured) property tax, although it is calculated from a slightly different derivative property tax base (tax increment). Receipts were slightly higher than the year prior, albeit at a lesser pace than secured property taxes. The reason is likely related more to the City’s former redevelopment agency taking a larger claim of the RPTTF than in years prior, thereby reducing the residual amount coming to the City. Secured Property Tax. Traditionally, revenue from property tax was viewed as a very stable source. The housing collapse of 2008 tested that assumption. Ukiah’s housing market has made a considerable recovery, and city revenues from secured property taxes flowed accordingly. Slightly less than 11 percent of property taxes paid by property owners within the City are allocated to the City. The majority is distributed to local schools and the County of Mendocino. Receipts from this source were up 3.04 percent from the year prior due to assessed valuation growth from ownership change as well as the annual adjustment under Prop 13, which is capped at 2 percent. The chart here illustrates how property tax revenues overall have flowed to the City since 2007. Overall includes secured, unsecured, VLF in lieu and other property-related taxes. The blue bars represent the actual dollar amounts received by the City while the orange line indicates the rate of that change year over year. In FY 2022 the rate of change was less than in the prior year but still higher than expectations at 3.26%. Based on historical experience, but difficult to confirm, underlying property-related revenues in general are expected to increase modestly FY 2022- 23 and beyond, likely to average 2-2.5 percent. Page 22 of 277 City of Ukiah, California x Introductory Section Refuse Disposal Franchise Fees. This revenue source is a charge to the City’s franchise solid waste hauler. As discussed earlier, franchise fees are not taxes; rather, in the case of refuse disposal franchise fees they are rents paid by the refuse hauler for the use of rights-of-way to provide and distribute its services. Refuse hauler vehicles used to haul refuse are utilized more frequently and wear roads more significantly than other commercial or non- commercial vehicles. Revenues from this source were higher in FY 2022 due primarily to increased sales and rate adjustments by the hauler, Ukiah Waste Solutions. Business License Tax. Businesses that operate within City limits are required to obtain a business license. The fees are based on the type of business and an estimate of their gross receipts. The proceeds from the tax collected are available for unrestricted use in the General Fund. As mentioned earlier, receipts were higher in 2022 than in the prior year due to a combination of factors, including the collection of late payments. Before the onset of the pandemic in March 2022, business license activity was trending positively. That trend has slowed and likely will normalize in the 2023 fiscal year. Measure P Measure P, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2014, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two- thirds of the voting public. It continued a sun-set transaction and use tax, known as Measure S (2005), accompanied by an advisory Measure T (2005). Measure P, however, was passed with no advisory measure. The purpose of Measure P is to augment public safety expenditures to provide a higher level of police and fire service to the community. Amounts collected from the tax are to be used in addition to the commitment of the General Fund and not in replacement of. The following graph demonstrates how the past revenue measure (S) and now Measure P have been employed with relation to the General Fund. Page 23 of 277 City of Ukiah, California xi Introductory Section 2014-15 2021-22 Variance with Baseline Actual Baseline REVENUES Measure P $ 2,465,521 $ 3,623,593 $ 1,158,072 Public safety revenues: Police 1,001,861 663,099 (338,762) Fire 37,235 1,665,636 1,628,401 Prop 172 53,471 161,965 108,494 General revenues (general fund) 7,922,006 8,713,810 791,804 Total revenues 11,480,094 14,828,104 3,348,010 EXPENDITURES Current: Police 8,709,693 8,917,751 (208,058) Fire4 2,553,407 5,761,443 (3,208,036) Total current 11,263,100 14,679,195 (3,416,095) Capital outlay: Police 186,594 117,509 69,085 Fire 30,400 31,400 (1,000) Total capital outlay 216,994 148,909 68,085 Total expenditures 11,480,094 14,828,104 (3,348,010) Excess (deficiency) of revenues over expenditures $ - $ - $ - PERSONNEL Police: Sworn 32 27 (5) Miscellaneous 18 18 (0) Total police 50 45 (5) Fire: City 11 21 10 Ambulance/Misc - 7 7 UVSD 6 - (6) Total fire 17 28 11 Notes: 1) Excludes parking enforcement expenditures and associated revenue. 2) Excludes dispatch service revenue, except for general fund contributions. 4) Beginning fiscal year 2021-22 the City changed its accounting of the UVFD and City shared cost. The District's contribution to personal and other operating expenditures are not recognized as revenues to the City. Conversely, the City's expenditures related to fire services now include those amounts previously reported as expenditures of UVFD. 3) Does not include Emergency Management services, which are included in Public Safety on the Statement of Revenues, Expenditures, and Changes in Fund Balance. City of Ukiah Measure P Schedule of Revenues, Expenditures, and Changes in Fund Balances – Baseline to Current Actual For the Year Ended June 30, 2022 Page 24 of 277 City of Ukiah, California xii Introductory Section Measure Y Measure Y, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two- thirds of the voting public. Measure Z, passed in conjunction with Measure Y, was a distinctly separate, advisory Measure Y, indicating the voting public's preference for the use of Measure Y proceeds. Language for the two ballot measures was as follows: 2022 2021 2020 2019 2018 2017 Total OPERATING REVENUES Measure Y 1/2 % transaction and use tax $ 3,620,957 $ 3,862,145 $ 3,368,450 $ 3,016,205 $ 2,729,797 $ 528,057 $17,125,611 Other fiancing sources - - - - - - - OPERATING EXPENSES General and administrative 80,857 10,251 17,733 10,150 5,444 9,134 133,569 Basic maintenance and operations 757,760 598,296 644,771 387,449 306,143 294,084 2,988,502 Enhanced capacity for maintenance and operations 156,370 158,500 154,479 60,260 1,979 - 531,587 Less: general fund maintenance of effort (see Note 1) (406,477) (399,840) (385,086) (375,597) (373,870) (350,000) (2,290,870) Total operating expenditures 588,510 367,207 431,897 82,262 (60,304) (46,782) 774,279 DEBT SERVICE AND CAPITAL PROJECTS Debt service, I-Bank 75,435 75,538 75,638 75,638 75,638 - 377,887 Projects 3,616,594 2,688,687 2,689,759 4,526,294 1,841,113 38,460 15,400,907 Total debt service and capital projects 3,692,029 2,764,225 2,765,397 4,601,932 1,916,751 38,460 15,778,795 Total expenditures, Measure Y 4,280,540 3,131,432 3,197,294 4,684,194 1,856,446 (8,322) 16,553,073 Change in Measure Y resources (659,583) 730,714 171,156 (1,667,989) 873,351 536,379 (15,972) Measure Y resources - beginning 643,610 (87,103) (258,259) 1,409,729 536,379 - Measure Y resources - ending $ (15,972) $ 643,610 $ (87,103) $ (258,259) $ 1,409,729 $ 536,379 PROJECTS IN PROCESS (see Note 2) Reconstruction $ 297,844 Slurry seals 492,666 Total projects in process $ 790,510 Notes: 1. This is the amount established by the City Council, per Resolution 2016-34, committing a minimum of $350,000 per year from the general fund on street maintenance and repair. That amount is to be adjusted annually by changes to the Construction Cost Index, as reported by the Engineering News-Record. 2. Projects in process are projects and activities that are in contract (encumbered) but which have not incurred expenditures as of June 30, 2022. 3. Measure Y resources for Public Works Engineering Services were enhanced in FY 2020 to support basic maintenance and operations due to increased focus on Measure Y activities. Measure Y City of Ukiah Comparative Schedule of Resources and Uses Measure Y For the Years Ended June 30, 2022, 2021, 2020, 2019, 2018, and 2017 Page 25 of 277 City of Ukiah, California xiii Introductory Section Relevant Financial Policies City Management has adopted a series of financial policies meant to guide its use and reporting of revenues. Some of the more germane policies as related to this report include the following: • All current operating expenditures will be paid for with current revenues, unless the use of reserves is approved by the City Council. • Revenues will be conservatively estimated. • Intergovernmental assistance in the form of grants and loans will be used to finance only: • Those capital improvements which can be maintained and operated over time; or • Operating programs that can either be sustained over time or have a limited horizon. • A minimum fund balance reserve in the General Fund will always be maintained. The minimal, optimal level required for this reserve will be 25 percent of the General Fund operating budget. The reserve will be drawn down as a funding source of last resort and used only after other reserve accounts have been accessed. • The unrestricted fund balance in the General Fund will be maintained at a level enough to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including the reserves for advances to other funds, deposits and prepaid items. • In general, one-time revenues will be used only to support capital or other non-recurring expenditures. One-time revenues may be used for operating programs only after an examination determines if they are subsidizing an imbalance between operating revenues and expenditures; and then only if a long-term forecast shows that the operating deficit will not continue. • The City invests all idle cash as determined by analysis of anticipated cash flow needs. Specific emphasis will be placed on future cash requirements when selecting maturity dates to avoid forced liquidations and the potential corresponding loss of investment earnings. • When the City finances capital projects by issuing bonds or acquiring loans, it will pay back those obligations within a period that is consistent with the useful life of the project. • The City requires an annual audit of the books of account, financial records, inventories and reports of all City officers and employees involved in the handling of financial matters by a qualified independent auditor. Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements. Acknowledgements The preparation of this Annual Comprehensive Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department, the City’s Management Team, and the auditing firm of Van Lant & Fankhanel, LLP. We would like to express our appreciation to Brett Van Lant, CPA; Greg Fankhanel, CPA; the staff of Van Lant & Fankhanel; and to the members of the Finance Department, City Manager’s Office, and other administrative divisions who assisted and contributed to its development. We also would like to thank members of the City Council and all City departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year. Respectfully submitted, SAGE SANGIACOMO, ICMA-CM City Manager DANIEL BUFFALO, MPA, CPA, CGMA Finance Director Page 26 of 277 GFOA Certificate of Achievement Page 27 of 277 City of Ukiah, California xiv Introductory Section City of Ukiah, California List of Officials June 30, 2022 CITY COUNCIL UKIAH REDEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS Jim Brown Mayor Josefina Duenas Vice Mayor Doug Crane Council Member Juan Orozco Council Member Mari Rodin Council Member EXECUTIVE MANAGEMENT TEAM Sage Sangiacomo City Manager Shannon Riley Deputy City Manager David Rapport City Attorney Kristine Lawler City Clerk Cedric Crook Chief of Police (Acting) Doug Hutchison Fire Authority Chief Daniel Buffalo Finance Director Sheri Mannion Human Resources/Risk Management Director Tim Eriksen Public Works Director/City Engineer Craig Schlatter Community Development Director Greg Owen Airport Manager Cindy Sauers Electric Utility Director Sean White Water Resources Director Neil Davis Community Services Director Page 28 of 277 City of Ukiah, California xv Introductory Section CITY ORGANIZATIONAL CHART Page 29 of 277 FINANCIAL SECTION Page 30 of 277 Independent Auditor’s Report The Honorable City Council City of Ukiah, California Report on the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Ukiah (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Ukiah, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Change in Accounting Principle As described in Note 1 to the financial statements, in 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 31 of 277 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining statements and budget schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In Page 32 of 277 our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. January 26, 2023 Murrieta, CA Page 33 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 4 MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) (REQUIRED SUPPLEMENTARY INFORMATION) The following discussion provides readers of the City of Ukiah’s financial statements a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with the Independent Auditor’s Report, the basic financial statements, and the accompanying notes. Financial Highlights •City assets and deferred outflows exceeded its liabilities and deferred inflows by $168.8 million (net position) as of June 30, 2022. •The City recognized net pension assets with CalPERS of $12.7 million, resulting from a positive investment return and pension contribution in prior year. •The City’s net position in total increased by $1.9 million. •The net position for governmental activities ended the year at $57.9 million, a 20.9 percent increase from the prior year, while the net position of business activities was $110.9 million, a 6.8 percent decrease. •The governmental activities saw decreased revenues from some major sources, notably sales taxes. Expenses were nominally different in total from the prior year. •Business activities saw revenues decrease by 1.5 million, driven by decreased electric revenues, while expenses increased over $3 million, driven by increased electric operating costs, notably power purchases. Overview of the Annual Comprehensive Financial Report This Annual Comprehensive Financial Report is presented in three major parts: 1)Introductory section, which includes the Transmittal Letter and general information; and 2)Financial section, which includes the Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules; and 3)Statistical section, which includes financial, demographic and economic information on the City and surrounding community such as the value of taxable property, direct and overlapping tax rates, direct and overlapping debt, population and estimated per capita income. This Management Discussion and Analysis is intended to serve as an introduction to the financial section. The statements of this section are comprised of components including financial highlights, government-wide financial statements, fund financial statements, a General Fund budgetary comparison and an economic outlook. THE GOVERNMENT-WIDE FINANCIAL STATEMENTS The government-wide financial analysis provides an overview of the City’s activities and is comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial Page 34 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 5 position of the City as a whole, including all its assets, capital assets and liabilities on the full-accrual basis, like that used by private sector entities. The Statement of Activities provides information about all the City’s revenues and expenses, also on the full-accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s major functions, which have been categorized as follows: Governmental Activities • General government (e.g., City Council, administration, finance and accounting, human resources, legal, treasurer, etc.) • Community development (planning and building) • Roads and infrastructure (road maintenance, city engineer and public works,) • Housing and support programs (CDBG and HOME grants, etc.) • Redevelopment/Economic development • Public safety (Police and Fire) • Parks, buildings, and grounds (parks, building and grounds maintenance, etc.) • Culture and recreation (museum, pool, sports, etc.) Business-type activities • Airport • Ambulance • Conference Center • Electric • Golf Course • Landfill • Parking District • Street lighting • Wastewater • Water The Statement of Activities explains in detail the change in Net Position for the year. As indicated in the Financial Highlights, the City’s net position increased $1.9 million, which includes costs associated with depreciation and other non- budgeted items that may not influence cash or current financial resources but do affect net position. The statement presents expenses categorized by function or activity. This is done so that a direct connection can be made to the cost of providing that service or function for the year. The statement then presents how that activity was financed using funds other than those that can be used for any purpose (i.e. taxes, fines, investment earnings, etc.). This is an attempt to demonstrate how self-sufficient an activity was during the year. The remainder is the net expense covered by general revenues. All the City’s activities are grouped into either governmental activities or business-type activities, as explained below. The amounts in the Statement of Net Position and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a clear summary of the two. Government-wide financial statements, prepared on the accrual basis, measure the flow of all economic resources of the City. Page 35 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 6 The Statement of Net Position and the Statement of Activities present information about the following: • Governmental activities—all the City’s basic services are governmental activities. These services are supported by general city revenues, such as taxes, and by specific program revenues such as user fees and charges. The City’s governmental activities also include the housing activities of the (former) Ukiah Redevelopment Agency, a separate legal entity for which the City is financially responsible. As of February 1, 2012, the Ukiah Redevelopment Agency was dissolved, and a successor agency was established to handle the remaining affairs and obligations of the former agency. The City of Ukiah elected to be that successor agency. Upon dissolution, the assets and liabilities of the former agency were transferred to a private-purpose trust fund, which is not reported on the government-wide statements but is presented in the fund-based statements using the full accrual basis of accounting. • Business-type activities—The City’s enterprise activities of electric, water, wastewater, recycled water, solid waste disposal site, parking, street lighting, airport, conference center and golf course are reported in this area. Unlike governmental activities, these services are supported by charges paid by users based on the amount of the service they use. Fund Financial Statements The fund financial statements report the City’s operations in more detail than the entity-wide statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts. Because the focus of fund statements is narrower than that of the government-wide, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. Both the governmental activities Statement of Net Position and the governmental funds Statement of Revenues, Expenditures, and Changes in Net Position provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Major funds account for the largest portion of the financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with supplementary schedules presenting the detail for each. Major funds are explained below. The fund financial statements provide detailed information about each of the City’s most significant funds, termed major funds. The concept of major funds, and the determination of which are major, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Supplementary Information present the detail of these non-major funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of City’s activities. Page 36 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 7 For the fiscal year ended June 30, 2022, the City’s major funds were as follows: GOVERNMENTAL FUNDS: • General Fund • Streets Capital Projects • General Capital Projects • Pension Debt Service PROPRIETARY FUNDS: • Landfill • Electric Enterprise • Water Enterprise • Wastewater Enterprise The City’s enterprise funds (electric, water, wastewater and landfill) are reported as proprietary funds. Enterprise fund financial statements are prepared on the full-accrual basis, and include all their assets and liabilities, both current and long- term. The City adopts an annual appropriated budget for all governmental and proprietary funds. Budgetary comparison statements for the General Fund and all major governmental funds are presented as required supplementary information (RSI), as required by GASB 34. Proprietary budget comparison statements are not required or presented. Fiduciary Statements The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations. The City maintains two fund types in this category: custodial and private purpose trust funds. These funds include resources held by the City on behalf of the Ukiah Valley Sanitation District, The Russian River Watershed Association, and the Ukiah Valley Fire District and the Ukiah Redevelopment Successor Agency. They provide information about the cash balances and activities of these funds. In its presentation of these statements, the City has adopted the provisions of GASB 84: Fiduciary Activities. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government- wide and Fund Financial Statements. The notes to the basic financial statements can be found following the basic financial statement presentation of this report. Other Supplementary Information In addition to the basic financial statements and the accompanying notes, this report also presents combined statements, which illustrate the condition and activities of all non-major funds. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found subsequent to the notes section of this report. Page 37 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 8 Government-Wide Financial Analysis Net Position Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed net position for both governmental and business-type activities. The City’s net position, as of June 30, 2022, was $168.8 million. The overall change in net position is due in large part to a 9.1 million in grants and other contributions received, including American Rescue Act funding. These additions to net position were offset by lower sales tax receipts and charges for service and higher business-type expenses. Restricted net position of $15.7 million is primarily comprised of cash and cash-equivalents for use as prescribed by an outside entity, such as a grantor, bond holder, covenant, or other restricting entity or instrument, or are in the form of long- term notes receivable and are unavailable for spending. In the case for FY 2022, this is held primarily for Housing Programs in the form of loans receivable. A smaller portion is restricted for public safety activities and streets. It is important to note that restricted cash and investments may be different than restricted net position, e.g., cash restricted by a bond indenture as part of a bond issue is offset by the corresponding liability on the statement of net position, which is part of net investment in capital assets. Unrestricted net position of negative 32.3 million is due primarily due to the City’s long-term obligations related to net pension liabilities and estimated landfill closure costs. The City’s working capital to meet current and other near-term operating and capital concerns was $90.9 million, which includes unspent bond proceeds of $51 million. Activities Expenses incurred by the City for FY 2022 year totaled $68.6 million, a decrease from FY 2021 of $3.0 million. Much of this decrease was related to reductions to pension costs of the City UAL with CalPERS. Governmental expenses totaled nearly $24.9 million or 38.0 percent of total expenses. Public safety costs represented most of the governmental expenses, followed by public works and recreation. Business-type activities incurred $43.7 million of expense during the fiscal year, 62.0 percent of all City expenses. 2022 2021 2022 2021 2022 2021 Current and other assets 85,619,832$ 40,455,893$ 44,302,745$ 36,056,999$ 129,922,577$ 76,512,892$ Capital assets(net)61,581,082 58,404,222 181,668,949 178,049,774 243,250,031 236,453,996 Total assets 147,200,914 98,860,115 225,971,694 214,106,773 373,172,608 312,966,888 Deferred outflows of resources 12,715,862 35,276,895 785,130 18,409,328 13,500,992 53,686,223 Total assets and deferred outflows of resources 159,916,776 134,137,010 226,756,824 232,516,101 386,673,600 366,653,111 Current and other liabilities 6,827,070 5,879,729 8,643,356 3,200,728 15,470,426 9,080,457 Long-term liabilities 70,804,478 79,926,642 104,121,577 110,300,288 174,926,055 190,226,930 Total liabilities 77,631,548 85,806,371 112,764,933 113,501,016 190,396,481 199,307,387 Deferred inflows of resources 24,400,816 436,336 3,083,585 8,893 27,484,401 445,229 Total Liability and deferred inflows of resources 102,032,364 86,242,707 115,848,518 113,509,909 217,880,882 199,752,616 NET POSITION Net investment in capital assets 56,905,670 50,915,097 128,557,177 126,053,127 185,462,847 176,968,224 Restricted 15,368,987 15,484,736 320,241 251,126 15,689,228 15,735,862 Unrestricted (14,390,245) (18,505,530) (17,969,112) (7,298,061) (32,359,357) (25,803,591) Total net position 57,884,412$ 47,894,303$ 110,908,306$ 119,006,192$ 168,792,718$ 166,900,495$ Governmental Activities Business-type Activities Total Page 38 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 9 Governmental Activities Net expenses of $12.8 million for the provision of these governmental activities was funded by general revenues, primarily in the general fund, including taxes, licenses, permits, franchise fees, and rents. Costs and programmatic revenues directly associated with governmental activities were as follows: 2022 2021 2022 2021 2022 2021 REVENUES Program revenues: Charges for Services 4,759,875$ 3,487,098$ 34,699,279$ 36,024,011$ 39,459,154$ 39,511,109$ Operating Grants and Contributions 4,947,892 7,890,530 1,572,005 759,696 6,519,897 8,650,226 Capital Grants and Contributions 2,424,991 771,125 201,152 556,033 2,626,143 1,327,158 General revenues: Taxes 20,094,975 20,822,658 17,057 16,714 20,112,032 20,839,372 Franchise fees 1,846,594 1,815,271 - - 1,846,594 1,815,271 Other revenue 280,944 67,776 - 22,223 280,944 89,999 Use of money and property (119,912) 266,006 (234,775) 352,781 (354,687) 618,787 Total revenues 34,235,359 35,120,464 36,254,718 37,731,458 70,490,077 72,851,922 EXPENSES Governmental activities: General government 2,824,700 838,727 - - 2,824,700 838,727 Public safety 10,238,317 13,659,736 - - 10,238,317 13,659,736 Housing and community development 2,058,024 1,460,134 - - 2,058,024 1,460,134 Public works 2,357,684 3,426,376 - - 2,357,684 3,426,376 Parks, buildings, and grounds 2,377,907 1,560,436 - - 2,377,907 1,560,436 Recreation and culture 3,262,934 2,640,963 - - 3,262,934 2,640,963 Economic development and redevelopment 84,274 290,261 - - 84,274 290,261 Interest on long-term debt 1,674,767 992,902 - - 1,674,767 992,902 Business-type activities: Parking District - - 148,354 137,930 148,354 137,930 Landfill - - 1,417,733 969,800 1,417,733 969,800 Ambulance Services - - 933,997 55,894 933,997 55,894 Golf - - 247,149 144,680 247,149 144,680 Conference Center - - 306,131 (336,910) 306,131 (336,910) Airport - - 1,541,733 1,857,261 1,541,733 1,857,261 Electric - - 22,839,554 19,695,234 22,839,554 19,695,234 Street Lighting - - 146,475 186,765 146,475 186,765 Water - - 7,390,232 8,179,199 7,390,232 8,179,199 Wastewater - - 8,747,889 9,659,518 8,747,889 9,659,518 Total expenses 24,878,607 24,869,535 43,719,247 40,549,371 68,597,854 65,418,906 Change in net position before special items and transfers 9,356,752 10,250,929 (7,464,529) (2,817,913) 1,892,223 7,433,016 Transfers 633,357 (444,963) (633,357) 444,963 - - Change in net position 9,990,109 9,805,966 (8,097,886) (2,372,950) 1,892,223 7,433,016 Total net position - beginning 47,894,303 38,088,337 119,006,192 121,379,142 166,900,495 159,467,479 Total net position - ending 57,884,412$ 47,894,303$ 110,908,306$ 119,006,192$ 168,792,718$ 166,900,495$ Governmental Activities Business-type Activities Total Functions/Programs Expenses % of Total Program Revenues % of Total Net (Expense) Revenue General government 2,824,700$ 11.35%1,983,354$ 16.35%(841,346)$ Public safety 10,238,317 41.15%2,542,440 20.96%(7,695,877) Housing and community development 2,058,024 8.27%1,945,487 16.03%(112,537) Public works 2,357,684 9.48%2,368,331 19.52%10,647 Parks, buildings, and grounds 2,377,907 9.56%120,980 1.00%(2,256,927) Recreation and culture 3,262,934 13.12%2,922,166 24.08%(340,768) Economic development and redevelopment 84,274 0.34%250,000 2.06%165,726 Interest on long-term debt 1,674,767 6.73%- 0.00%(1,674,767) Total 24,878,607$ 100.00%12,132,758$ 100.00%(12,745,849)$ Page 39 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 10 Public safety (police, fire, and emergency management services) comprised the largest activity segment of governmental expenses ($10.2 million, 41.2 percent of total expenses). A significant portion of this expense is related to retirement benefit costs. Recreation and culture represented the next largest expense of the City’s governmental activities, due largely from expanded day cap programs and activities. The City has deployed a significant portion of its discretionary and programmatic resources toward the improvement of City streets, walkways, and trails. The following chart illustrates where governmental expenses were incurred by activity. Page 40 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 11 Significant revenues for the City came from taxes (58.7 percent), which included sales taxes (Bradley-Burns, Measure P and Measure Y transactions and use taxes), property taxes and transient occupancy taxes. Despite the continuation of the COVD-19 pandemic, tax revenues overall were higher than in the prior year due to increases to the sales and property tax base from a strong and diversified local economy. From highest to lowest, revenues directly associated with governmental collections were as follows: This information is presented in greater detail than that found on the Statement of Activities or Changes in Fund Balance to allow the reader to gain a more in-depth understanding of the sources and uses of revenue. Business-type Activities In the fiscal year ended June 30, 2022, business-type activities decreased the City’s net position by $2.3 million. That loss came from net revenues, which is defined as total expenses minus program revenues, which include charges for service, as well as operating and capital grants and contributions. Revenues Source Revenue % of Total Charges for Services 4,759,875$ 13.90% Operating Grants and Contributions 4,947,892 14.45% Capital Grants and Contributions 2,424,991 7.08% Property tax 3,520,010 10.28% Sales tax 14,553,285 42.51% Franchises 1,846,594 5.39% Transient occupancy 1,487,139 4.34% Business license 533,653 1.56% Other taxes 888 0.00% Use of money and property (119,912) -0.35% Other revenue 280,944 0.82% Total 34,235,359$ 100.00% Page 41 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 12 The following chart illustrates where business-type expenses were incurred by activity. Business-type Activities Expenses % of Total Program Revenues % of Total Net (Expense) Revenue Parking District 148,354$ 0.34%122,811$ 0.34%(25,543)$ Landfill 1,417,733 3.24%650,086 1.78%(767,647) Ambulance Services 933,997 2.14%571,626 1.57%(362,371) Golf 247,149 0.57%40,000 0.11%(207,149) Conference Center 306,131 0.70%254,208 0.70%(51,923) Airport 1,541,733 3.53%1,409,264 3.86%(132,469) Electric 22,839,554 52.24%17,815,594 48.85%(5,023,960) Street Lighting 146,475 0.34%189,163 0.52%42,688 Water 7,390,232 16.90%7,279,281 19.96%(110,951) Wastewater 8,747,889 20.01%8,140,403 22.32%(607,486) Total 43,719,247$ 100.00%36,472,436$ 100.00%(7,246,811)$ Page 42 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 13 General revenues for business-type activities include rents and interest earnings as well as some property taxes collected by the City’s parking district. The general revenues were down from the prior year approximately 50 percent resulting primarily from negative returns on the City’s investment portfolio. Charges for services were lower than the prior year due to certain large reimbursable jobs that occurred in 2021 but not in 2022. Rate revenue in water, sewer, and the electric utility were nominally lower than the year prior. Capital Assets and Debt Administration Capital Assets The City’s investment in capital assets for its governmental and business-type activities at June 30, 2022 totaled $243.3 million (net of accumulated depreciation). The investment in capital assets includes land, buildings and improvements, equipment, vehicles, infrastructure, and construction in progress. Depreciation expense for the year, government-wide, totaled $7.7 million. Revenues Source Revenue % of Total Charges for Services 34,699,279$ 95.71% Operating Grants and Contributions 1,572,005 4.34% Capital Grants and Contributions 201,152 0.55% Taxes 17,057 0.05% Use of money and property (234,775) -0.65% Total 36,254,718$ 100.00% 2022 2021 2022 2021 2022 2021 Land 4,596,065$ 4,092,630$ 7,747,880$ 7,042,727$ 12,343,945$ 11,135,357$ Infrastructure and network 64,604,249 55,602,715 174,295,038 165,703,874 238,899,287 221,306,589 Buildings and improvements 21,861,416 21,862,814 63,250,560 63,283,228 85,111,976 85,146,042 Construction in progress 2,029,535 6,971,422 7,368,291 8,470,658 9,397,826 15,442,080 Machinery equipment and vehicles 10,103,782 10,045,491 14,048,150 13,562,385 24,151,932 23,607,876 Intangible assets - - 270,000 180,000 270,000 180,000 103,195,047 98,575,072 266,979,919 258,242,872 370,174,966 356,817,944 Less: accumulated depreciation (41,613,965) (40,170,850) (85,310,970) (80,193,098) (126,924,935) (120,363,948) Capital assets, net 61,581,082$ 58,404,222$ 181,668,949$ 178,049,774$ 243,250,031$ 236,453,996$ Governmental Activities Business-type Activities Total Page 43 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 14 Additional information on the City’s capital assets can be found in Note 6, along with the City’s capitalization policies in Note 1 in the notes to the basic financial statements. Reasons for the change in capital assets were engagement in major work on several construction projects, including work on the airport runway and several streets and rights-of-way. Long-Term Liabilities The City’s outstanding Noncurrent liabilities, including bonds, loans payable, the net pension liability and compensated absences totaled over $182 million as of June 30, 2022. The most significant obligation added this year were electric rate and lease revenue bonds totaling over $50 million. These bonds were issued to make certain facility and infrastructure improvements at a lower cost than under a pay-go approach. Additional information on the City’s outstanding long-term liabilities can be found in Note 7. Fund Financial Analysis The City employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As was mentioned earlier, fund financial statements present information based on current financial resources and expenditures. Essentially, they are snapshots of the condition of major funds in the near-term; whereas, the government-wide statements present the entire picture of the reporting entity. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. For comparison purposes, fund statements correlate well to the City’s adopted budget. 2022 2021 2022 2021 2022 2021 2017 CalTrans Aeronautics Loan - Airport -$ -$ 148,985$ 159,635$ 148,985$ 159,635$ 2016 Water Revenue Refunding Bonds - - 8,055,000 8,620,000 8,055,000 8,620,000 2016 unamortized premium - - 1,333,122 1,358,275 1,333,122 1,358,275 Lawsuit settlement liability - - 1,000,000 2,000,000 1,000,000 2,000,000 Landfill closure and post-closure - - 19,890,002 19,297,593 19,890,002 19,297,593 2017 SWRCB recycled water loan - - 17,713,180 18,238,738 17,713,180 18,238,738 Series 2020 Wastewater Refunding Bonds - - 22,184,000 23,620,000 22,184,000 23,620,000 Series 2022 Lease Revenue Bonds (Utilities Projects)- - 8,770,000 - 8,770,000 - 2022 Utilities unamortized premium - Utilities Projects - - 1,150,071 - 1,150,071 - Series 2022 Electric Revenue Bonds - - 9,190,000 - 9,190,000 - 2022 Electric unamortized premium - - 1,048,809 - 1,048,809 - 2017 fire engine lease 653,810 763,396 - - 653,810 763,396 2017 computer equipment lease - 58,280 - - - 58,280 2017 I-Bank financing lease 3,663,516 3,751,776 - - 3,663,516 3,751,776 2020 fire brush truck equipment lease 186,334 207,216 - - 186,334 207,216 2020 fire self-contained breathing apparatus equipment 297,290 328,457 - - 297,290 328,457 Series 2020A Community Facilities Lease Revenue Bonds 2,290,000 2,380,000 - - 2,290,000 2,380,000 2020A unamortized premium 333,572 351,128 - - 333,572 351,128 Series 2020B CalPERS Taxable Lease Revenue Bonds 31,968,235 32,426,592 17,201,765 17,448,408 49,170,000 49,875,000 Series 2022 Lease Revenue Bonds (Street Projects)15,350,000 - - - 15,350,000 - 2022 unamortized premium- Streets Projects 1,621,453 - - - 1,621,453 - Series 2022 Lease Revenue Bonds (Corporation Yard Projects)14,850,000 - - - 14,850,000 - 2022 unamortized premium-Corp Yard Projects 1,174,246 - - - 1,174,246 - Claims payable 286,972 430,458 49,583 99,166 336,555 529,624 Net pension liability - 38,156,746 - 18,895,630 - 57,052,376 Compensated absences 1,118,763 1,072,592 533,513 562,843 1,652,276 1,635,435 Total 73,794,191$ 79,926,640$ 108,268,031$ 110,300,288$ 182,062,222$ 190,226,928$ Activities Activities Total Governmental Business-type Page 44 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 15 Governmental Funds As of June 30, 2022, the City’s governmental fund balance was $51.9 million, which increased $21.3 million from the year prior largely due to the issuance of bond proceeds for street and rights-of-way projects. GASB 54 established five new criteria for categorizing that balance based on its restricted and unrestricted use. The five categories are the following: • Non-spendable fund balance • Restricted fund balance • Committed fund balance • Assigned fund balance • Unassigned fund balance. A more detailed discussion of these fund balance categories is presented in Note 1. Governmental Funds Financial Condition Governmental funds reported a net increase in fund balance of $21.3 million, primarily associated with the issuance of $17.0 million of bond proceeds for streets and rights-of-way projects. These funds also include revenues from many federal, state and special district grants which vary greatly from year to year. Governmental funds reported $4.4 million in non-spendable fund balance at the end of the fiscal year. This is comprised of long-term interfund advances held by the General Fund as well as a loan receivable from the Ukiah Redevelopment Successor Agency. The balance of $17.7 million in restricted fund balance - those financial resources can be spent only on specific activities as defined by outside entities (e.g. a grantor, state agency, statute, etc.) – is found in special revenue funds law enforcement, housing and streets, and infrastructure. The aforementioned bond proceeds are reported here specifically. Committed fund balance of $803 thousand consists primarily of several select capital projects earmarked by the City Council through resolution. $21.1 million in assigned fund balance consists of reserve amounts designated by management for future capital acquisition and specific projects, including maintaining a reserve for the advanced payment of pension liabilities. The remaining amount of $7.9 million of unassigned fund balance result primarily from general fund reserves and deferred revenues in several special revenue funds that have not been converted to revenues but are expected to in the following year. Additional information on deficit fund balances can be found in Note 2. Specific to the major funds reported: General Fund. $2.1 million was added to the fund balance primarily from intergovernmental sources (e.g. grants) and transfers in of American Rescue Act funding to cover prior expenditures related to the COVID pandemic response. Streets Capital Improvements. Resources transferred into this fund from the general fund, vis a vis Measure Y resources collected increased fund balance by $539,416, reducing its deficit position to $15,972. The fund has been very active in capital projects supported, in part, by Measure Y resources, and the timing of expenditures for those projects created that deficit. Page 45 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 16 General Capital Projects. This fund primarily is used to account for bond-funded capital projects, for which bond proceeds in the amount of $17 million were received in February of 2022. Pension Debt Service. This fund is used to service bond debt related to lease revenue bonds issued by the City in 2020 that provided advances fund the unfunded accrued liability with CalPERS. The City contributes additional amounts to the fund beyond the annual debt service requirement ($432,666 in 2022) to ensure it maintains resources to meet future payment obligations without difficulty and to prepare for potential calls on bonds when the option is available. Proprietary Funds Enterprise Fund - Landfill The net position of the landfill closure and post-closure fund decreased $871 thousand from a negative 9.2 million to $10 million. Surcharge amounts collected at the Ukiah Transfer Station and transferred to the Landfill fund helped to bolster it in preparation for final closure and remediation activities forthcoming, but closure cost estimates ran higher than in years past, fueled in large part to larger inflationary conditions. Enterprise Fund - Electric The net position of the electric enterprise fund decreased $4.9 million due to a combination of operating losses, totaling $4.5 million (driven by higher power costs), and interest expense on newly issued revenue bonds. Enterprise Fund - Water The net position of the water enterprise fund decreased $256 thousand primarily due to decreased pandemic-related rate revenue. Operating income of $594 thousand was offset by non-operating expenses of $843 thousand, due in part to recognized investment losses. Enterprise Fund - Wastewater The net position of the wastewater enterprise fund decreased $1.2 million. Operating revenue exceeded operating expenses, resulting in an operating income of $253 thousand. But non-operating expenses of $922 thousand, driven by interest costs and funding transfers to the recycled water operation for disposal activities, outweighed those gains Budgetary Comparison A comparison of budget to actual for major governmental funds is presented in the fund financial statements. These statements and the notes are presented as additional information to show that appropriations are being spent as authorized by the City Council. Budgetary control for the City rests at the fund level. General Fund The City’s General Fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Ukiah and the City Council. General fund revenues were up nearly $2.0 million from the year prior, driven by grant revenues. Similarly, total expenditures were higher by $2.5 million due mostly to increased public safety expenditures. After other financing sources and uses were accounted for, fund balance increased by $2.0 million. The original budget estimated $27.2 million in revenues. It was increased to $28.0 in anticipation of grant revenues for capital projects and additional charges for service, among other reasons. Actual revenues in the General Fund were $642 Page 46 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 17 thousand higher than was budgeted primarily due to increased fees and charges, notably from the City’s day camp program enhancements and assumption of day camp programs previously administered by the Ukiah Unified School District. Additionally, property and TOT taxes received were higher than originally estimated. Expenditures were $2.4 million lower than budget appropriations primarily due to various cost and budgetary savings, even though expenditures from the year prior were higher. Recreation and culture expenditures were higher than budgeted due to the aforementioned day camp activities. The budget was not formally amended to account for these expenditures as revenues generated from day camp activities were sufficient to support them and there was expected budgetary savings elsewhere. Policy Resolution No. 39 (2013), passed the Ukiah City Council and incorporated in the City’s financial management policies, established an unrestricted fund balance of at least 25 percent of annual operating expenditures in the General Fund. Its purpose is to serve as a strategic reserve, ensuring liquidity of the General Fund and to make certain adequate resources are available to manage economic uncertainties. The General Fund ended the year with a fund balance (consisting of nonspendable, committed, and unassigned amounts) of $13.2 million, representing 55.6 percent of total expenditures for the year. Economic Outlook Original Final Actual Variance with Final Budget REVENUES Taxes 19,957,835$ 19,957,835$ 20,068,245$ 110,410$ Fees, charges, licenses, and permits 4,371,993 4,516,413 5,737,930 1,221,517 Use of money, property, interest and concessions 204,200 204,200 74,168 (130,032) Intergovernmental 2,424,949 3,041,762 2,540,680 (501,082) Other 197,000 291,000 232,474 (58,526) Total revenues 27,155,977 28,011,210 28,653,497 642,287 EXPENDITURES Current: General government 213,574 270,447 119,273 151,173 Public safety 16,072,019 17,239,997 14,288,438 2,951,559 Housing and community development 1,302,174 1,302,175 1,191,165 111,010 Public works 1,566,377 2,062,001 1,766,366 295,635 Parks, buildings, and grounds 1,518,497 2,107,547 1,971,513 136,034 Recreation and culture 1,856,501 1,968,356 3,301,102 (1,332,746) Economic development and redevelopment 19,301 19,301 62,263 (42,962) Total current 22,548,443 24,969,823 22,700,121 2,269,703 Debt service 300,135 300,135 300,137 (2) Capital outlay 187,000 940,930 811,460 129,470 Total expenditures 23,035,578 26,210,887 23,811,718 2,399,170 Excess (deficiency) of revenues over expenditures 4,120,400 1,800,323 4,841,779 3,041,457 OTHER FINANCING SOURCES (USES) Transfers (558,038) (462,520) (2,831,353) (2,368,833) Net change in fund balances 3,562,362 1,337,803 2,010,426 672,624 Fund balances - beginning 11,229,529 11,229,529 11,229,529 - Fund balances - ending 14,791,891$ 12,567,332$ 13,239,955$ 672,624$ Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual City of Ukiah Budgeted Amounts General Fund For the Year Ended June 30, 2022 Page 47 of 277 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 18 The City of Ukiah enjoys a diverse economic base serving as a hub for the greater geographic region around the city and Mendocino County. Consequently, the City’s revenues are tied strongly to the financial health and well-being of its residents and businesses. City management took a conservative approach to revenue estimation when preparing the City’s 2022 budget and adjusted appropriations accordingly, particularly in the general fund, which resulted in positive financial outcomes for the general fund in particular. Management continued that approach into the fiscal year 2023. The following economic factors currently affect the City of Ukiah and were considered in developing the 2023 fiscal year budget. • Sales tax revenue and transient occupancy taxes were estimated to increase by nominal amounts respectively from the prior year due. General fund appropriations were nonetheless adjusted to continue to generate a budgetary surplus as a hedge against unexpected revenue shortfalls. • Water and sewer rates were increased July 1, 2022 as part of a five-year schedule for commercial and residential rate payers. This was in response to anticipated current and future expenditure increases in operating costs, capital outlays, and settlement payments to the Ukiah Valley Sanitation District. The adjustment to rates will continue each July 1 for the next 3 years. • Rate revenue in electric enterprise funds was estimated to increase due to a recently enacted rate adjustment on April 1, 2022. Implementation of subsequent rate adjustment will occur for the next four years. Expenditures on the electric utility are expected to be higher than originally budgeted, however, due to significantly increased power costs. • A property tax rate increase of 2 percent is expected in the general fund. • Implementation of increased rates on the City of Ukiah’s current fee schedule is anticipated. • Regular increases are expected in health insurance premiums, as well as pension costs. • Contract adjustments with all City of Ukiah’s bargaining groups was anticipated at budget adoption and completed in the fall of 2022. The expected impact to personnel costs is a 8-10 percent increase, depending on the group. Maintaining and growing revenue streams to the City remains a high priority for staff. Existing sources – predominately sales and property taxes – are stable, and our estimates for the future will continue to be conservative. Expenses related to personnel (primarily in health premium and pension costs) are increasing at a substantial, though manageable, pace. We continue to look to find cost saving measures to help offset these expenses. The challenge remains providing the highest level and quality of service that the community needs, expects and deserves with the resources available. Requests for Information This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions regarding this report, or request for additional information, should be made to the Finance Department, City of Ukiah, CA, 95482. Page 48 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 19 GOVERNMENT-WIDE FINANCIAL STATEMENTS The Statement of Net Position reports the difference between the City’s total assets and the City’s total liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all City Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these are followed by a total column which presents the financial position of the entire City. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. The City’s Business-Type Activities include all its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position. Both these Statements include the financial activities of the City, the Ukiah Redevelopment Agency and the City of Ukiah Municipal Sewer District, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for their activities. Page 49 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 20 City of Ukiah, California Statement of Net Position June 30, 2022 Governmental Activities Business-type Activities Total ASSETS Current assets: Cash and investments 16,975,196$ 11,234,611$ 28,209,807$ Restricted cash and investments 35,128,243 16,338,061 51,466,304 Investment in NCPA reserves - 7,720,872 7,720,872 Accounts receivable (net allowance for uncollectibles)5,606,920 7,000,360 12,607,280 Notes and loans receivable 1,500,000 - 1,500,000 Lease receivable 206,831 158,207 365,038 Internal balances 1,963,239 (1,963,239) - Inventories and prepaids 310,714 1,741,997 2,052,711 Land held for resale 2,435,114 - 2,435,114 Total current assets 64,126,257 42,230,869 106,357,126 Noncurrent assets: Notes and loans receivable 10,868,390 - 10,868,390 Net pension assets 10,625,185 2,071,876 12,697,061 Land 4,596,065 7,747,880 12,343,945 Infrastructure and network 37,860,467 132,592,881 170,453,348 Buildings and improvements 13,281,796 27,946,584 41,228,380 Construction in progress 2,029,535 7,368,291 9,397,826 Machinery equipment and vehicles 3,813,219 5,743,313 9,556,532 Intangible assets - 270,000 270,000 Total noncurrent assets 83,074,657 183,740,825 266,815,482 Total assets 147,200,914 225,971,694 373,172,608 DEFERRED OUTFLOWS OF RESOURCES Pension related 12,715,862 785,130 13,500,992 Total deferred outflows of resources 12,715,862 785,130 13,500,992 Total assets and deferred outflows of resources 159,916,776 226,756,824 386,673,600 LIABILITIES Current liabilities: Accounts payable 1,751,797 3,179,148 4,930,945 Accrued payroll liabilities 1,443,745 481,471 1,925,216 Interest payable 641,815 830,359 1,472,174 Deposits payable - 5,924 5,924 Due within one year 2,989,713 4,146,454 7,136,167 Total current liabilities 6,827,070 8,643,356 15,470,426 Noncurrent liabilities: Due in more than one year 70,804,478 104,121,577 174,926,055 Total noncurrent liabilities 70,804,478 104,121,577 174,926,055 Total liabilities 77,631,548 112,764,933 190,396,481 DEFERRED INFLOWS OF RESOURCES Lease related 206,831 158,207 365,038 Pension related 24,193,985 2,925,378 27,119,363 Total deferred inflows of resources 24,400,816 3,083,585 27,484,401 Total liabilities and deferred inflows of resources 102,032,364 115,848,518 217,880,882 NET POSITION Net investment in capital assets 56,905,670 128,557,177 185,462,847 Restricted for: Housing and community development 13,730,714 - 13,730,714 NCPA Projects - 320,241 320,241 Parks and recreation: Expendable 6,774 - 6,774 Nonexpendable 137,576 - 137,576 Public safety 820,388 - 820,388 Public works 673,535 - 673,535 Unrestricted (14,390,245) (17,969,112) (32,359,357) Total net position 57,884,412$ 110,908,306$ 168,792,718$ Primary Government The accompanying notes are an integral part of these financial statements. Page 50 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 21 City of Ukiah, California Statement of Activities Year Ended June 30, 2022 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Primary government: Governmental activities: General government 2,824,700$ 70,182$ -$ 1,913,172$ (841,346)$ - $ (841,346)$ Public safety 10,238,317 463,486 2,033,954 45,000 (7,695,877) - (7,695,877) Housing and community development 2,058,024 600,754 1,344,733 - (112,537) - (112,537) Public works 2,357,684 430,712 1,472,746 464,873 10,647 - 10,647 Parks, buildings, and grounds 2,377,907 114,834 4,200 1,946 (2,256,927) - (2,256,927) Recreation and culture 3,262,934 2,829,907 92,259 - (340,768) - (340,768) Economic development and redevelopment 84,274 250,000 - - 165,726 - 165,726 Interest on long-term debt 1,674,767 - - - (1,674,767) - (1,674,767) Total governmental activities 24,878,607 4,759,875 4,947,892 2,424,991 (12,745,849) - (12,745,849) Business-type activities: Parking District 148,354 122,811 - - - (25,543) (25,543) Landfill 1,417,733 650,086 - - - (767,647) (767,647) Ambulance Services 933,997 548,129 - 23,497 - (362,371) (362,371) Golf 247,149 40,000 - - - (207,149) (207,149) Conference Center 306,131 254,208 - - - (51,923) (51,923) Airport 1,541,733 1,333,795 30,000 45,469 - (132,469) (132,469) Electric 22,839,554 16,576,739 1,237,666 1,189 - (5,023,960) (5,023,960) Street Lighting 146,475 189,163 - - - 42,688 42,688 Water 7,390,232 7,107,835 171,446 - - (110,951) (110,951) Wastewater 8,747,889 7,876,513 132,893 130,997 - (607,486) (607,486) Total business-type activities 43,719,247 34,699,279 1,572,005 201,152 - (7,246,811) (7,246,811) Total primary government 68,597,854$ 39,459,154$ 6,519,897$ 2,626,143$ (12,745,849)$ (7,246,811)$ (19,992,660)$ 3,520,010 17,057 3,537,067 14,553,285 - 14,553,285 1,846,594 - 1,846,594 1,487,139 - 1,487,139 533,653 - 533,653 888 - 888 (119,912) (234,775) (354,687) 280,944 - 280,944 633,357 (633,357) - 22,735,958 (851,075) 21,884,883 9,990,109 (8,097,886) 1,892,223 47,894,303 119,006,192 166,900,495 57,884,412$ 110,908,306$ 168,792,718$ Net position - beginning Net position - ending The accompanying notes are an integral part of these financial statements. Use of money and property Other revenue Transfers Total general revenues, special items, and transfers Change in net position Sales tax Franchises Transient occupancy Business license Other taxes Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government General revenues: Property tax Page 51 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 22 FUND FINANCIAL STATEMENTS Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Governmental Funds by the City for fiscal 2022. Individual nonmajor funds may be found in the Supplemental section. Governmental Funds General Fund The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures and interest income. Expenditures are made for community development, public safety, public works, and other services. Streets Capital Improvement This capital project fund accounts for street and right-of-way capital projects supported primarily by Measure Y resources, committed by the City Council through resolution. Pension Debt Service This debt service fund was created in 2022 to account for resources accumulated, used, and reserved for the retirement of lease revenue bonds. General Capital Projects This general capital projects fund was created in 2022 to account for bond proceeds and other resources for street and rights-of-way projects. Page 52 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 23 City of Ukiah, California Balance Sheet Governmental Funds June 30, 2022 General Fund Streets Capital Improvements General Capital Projects Pension Debt Service Total Nonmajor Funds Total Governmental Funds ASSETS Cash and investments 5,514,583$ 2,955$ 725$ 3,921,960$ 8,372,154$ 17,812,377$ Restricted cash and investments - - 15,924,628 5,316 8,980 15,938,924 Accounts receivable 1,114,822 - - - 780,807 1,895,629 Taxes receivable 2,282,934 - - - - 2,282,934 Lease receivable 206,831 - - - - 206,831 Notes receivable 1,053 - - - 10,159,237 10,160,290 Interest receivable 2,109 - - 1,117 2,240 5,466 Grants and subventions receivable 830,273 65,958 - - 493,328 1,389,559 Inventories and prepaids 289,774 - - - 19,441 309,215 Due from other funds 1,177,788 - - - - 1,177,788 Advances to other funds 2,514,885 - - - - 2,514,885 Land held for resale - - - - 2,435,114 2,435,114 Advance to Successor Agency 1,500,000 - - - - 1,500,000 Due from other agencies 708,099 - - - - 708,099 Total assets 16,143,151 68,913 15,925,353 3,928,393 22,271,301 58,337,111 LIABILITIES Accounts payable 763,205 16,609 182,761 - 557,479 1,520,054 Accrued payroll liabilities 1,102,889 6,905 - - 14,777 1,124,571 Due to other funds - 49,168 169,241 - 511,879 730,288 Advance from other funds - - - - 359,147 359,147 Total liabilities 1,866,094 72,682 352,002 - 1,443,282 3,734,060 DEFERRED INFLOWS OF RESOURCES Lease related 206,831 - - - - 206,831 Unavailable revenues - grants and subventions 830,273 12,203 - - 1,628,556 2,471,032 Total deferred inflows of resources 1,037,104 12,203 - - 1,628,556 2,677,863 Total liabilities and deferred inflows of resources 2,903,198 84,885 352,002 - 3,071,838 6,411,923 FUND BALANCES (DEFICITS) Nonspendable: Interfund loans 2,514,885 - - - - 2,514,885 Inventories and prepaids 289,773 - - - - 289,773 Notes receivable 1,501,053 - - - - 1,501,053 Riparian corridor management - - - - 137,576 137,576 Restricted: By the State of CA - - - - 134 134 Capital projects - - 15,573,351 - 584 15,573,935 CDBG activities - - - - 405,147 405,147 Certifications and training - - - - 51,611 51,611 Debt service reserve - - - - 2,450,728 2,450,728 Housing activities - - - - 13,273,961 13,273,961 Project reserve - - - - 14,501 14,501 Public safety - - - - 820,389 820,389 Riparian corridor management - - - - 6,774 6,774 Special recreation events - - - - 45,117 45,117 Streets and rights-of-way - - - - 659,036 659,036 Committed: Park development - - - - 36,647 36,647 Planning activities - - - - 280,365 280,365 Solid waste management - - - - 486,519 486,519 Assigned: Capital projects - - - - 34,924 34,924 Economic development 266,158 - - - - 266,158 Equipment reserve - - - - 375,029 375,029 Pension reserve - - - 3,928,393 - 3,928,393 Project reserve - - - - 873,104 873,104 Unassigned 8,668,084 (15,972) - - (752,683) 7,899,429 Total fund balances (deficits)13,239,953 (15,972) 15,573,351 3,928,393 19,199,463 51,925,188 Total liabilities and fund balances (deficits)16,143,151$ 68,913$ 15,925,353$ 3,928,393$ 22,271,301$ 58,337,111$ The accompanying notes are an integral part of these financial statements. Page 53 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 24 City of Ukiah, California Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2022 The net pension asset is not an available resource and, therefore, is not reported in the funds.10,625,185 10,625,185 $ 57,884,412 Net position of governmental activities Amounts are unavailable under the modified accrual basis of accounting.2,471,030 2,471,030 Net Pension Assets Accrued interest on long-term debt is not due and payable in the current period and is not reported in the funds.(477,951) (477,951) Long-term assets are not available for current use. (11,478,123) Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. (18,560) (18,560) Deferred outflows - pension related items 12,715,862 Deferred inflows - pension related items (24,193,985) 2022 Lease Revenue Bonds (16,971,453) (54,471,791) Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds: 2020 Fire brush truck (186,335) Fire aparatus (297,290) 2020B CalPERS Taxable Lease Revenue Bonds (31,968,235) 2017 fire engine lease (653,810) 2017 I-Bank financing lease (3,663,515) 59,309,434 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Compensated absences (731,153) Capital assets 100,061,982 Accumulated depreciation (40,752,548) $ 51,925,188 Amounts reported for governmental activities in the statement of net position are different because: Fund balances of governmental funds Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds: Page 54 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 25 City of Ukiah, California Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2022 General Fund Streets Capital Improvements General Capital Projects Pension Debt Service Total Nonmajor Funds Total Governmental Funds REVENUES Property tax 3,520,010$ -$ -$ -$ -$ 3,520,010$ Sales tax 14,553,285 - - - - 14,553,285 Transient occupancy 1,485,385 - - - - 1,485,385 Business license tax 508,677 - - - 24,976 533,653 Other taxes 888 - - - - 888 Franchise fees 1,846,595 - - - - 1,846,595 Charges for service 3,628,913 - - - 225,515 3,854,428 Licenses and permits 262,422 - - - - 262,422 Use of money and property 74,168 - (12,323) (38,424) 442,529 465,950 Intergovernmental 2,540,680 102,274 - - 4,314,718 6,957,672 Fines penalties and forfeitures 28,863 - - - - 28,863 Interest, rent, and concessions - - - - 445 445 Miscellaneous 203,611 - - - 20,004 223,615 Program income - - - - 39,915 39,915 Payments to City for services provided - - - - 8,723 8,723 Total revenues 28,653,497 102,274 (12,323) (38,424) 5,076,825 33,781,849 EXPENDITURES Current: General government 119,274 - - 1,250 2,613 123,137 Public safety 14,288,432 - - - 392,196 14,680,628 Housing and community development 1,191,167 - - - 866,857 2,058,024 Public works 1,766,370 790,262 213,136 - 354,768 3,124,536 Parks, buildings, and grounds 1,971,514 - - - 8,164 1,979,678 Recreation and culture 3,301,103 - - - 425,272 3,726,375 Economic development and redevelopment 62,263 - - - 22,010 84,273 Debt service: Interest 88,181 45,427 - 1,519,425 7,715 1,660,748 Issuance costs - - 137,651 - - 137,651 Principal 58,252 30,009 - 458,357 - 546,618 Lease principal 130,470 - - - - 130,470 Lease interest 23,234 - - - - 23,234 Capital outlay: Public safety 118,075 - - - 30,834 148,909 Public works 574,454 1,802,568 125,818 - 706,716 3,209,556 Parks, buildings, and grounds 24,997 - - - - 24,997 Recreation and culture 93,934 - - - 67,913 161,847 Total expenditures 23,811,720 2,668,266 476,605 1,979,032 2,885,058 31,820,681 Excess (deficiency) of revenues over expenditures 4,841,777 (2,565,992) (488,928) (2,017,456) 2,191,767 1,961,168 OTHER FINANCING SOURCES (USES) Transfers in 2,050,814 3,120,488 - 2,450,122 2,600,527 10,221,951 Transfers out (4,882,167) (15,080) (965,087) - (2,076,667) (7,939,001) Issuance of debt - - 17,027,366 - - 17,027,366 Total other financing sources (uses)(2,831,353) 3,105,408 16,062,279 2,450,122 523,860 19,310,316 Net change in fund balances 2,010,424 539,416 15,573,351 432,666 2,715,627 21,271,484 Fund balances - beginning 11,229,529 (555,388) - 3,495,727 16,483,836 30,653,704 Fund balances - ending 13,239,953$ (15,972)$ 15,573,351$ 3,928,393$ 19,199,463$ 51,925,188$ The accompanying notes are an integral part of these financial statements. Page 55 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 26 City of Ukiah, California Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the Fiscal Year Ended June 30, 2022 Net change in fund balances - total government funds $ 21,271,484 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense. 5,175,961Capital outlay (2,036,840)Depreciation expense 3,139,121 The amounts below included in the Statement of Activities do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change): 38,156,746Change to net pension liability 154,276Compensated absence expense 38,311,022 Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in deferred inflows and deferred outflows related to the net pension liability: (22,561,033)Changes to deferred outflows: pension-related items (23,757,645)Changes to deferred inflows: pension-related items (46,318,678) Amortization of debt premium The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmnetal funds. Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows: 708,255Principal paid on loans and leases (17,027,367)Bond issuance 55,906 (16,263,206) 453,521 Some revenues reported in the Statement of Activities are not considered available to finance current expenditures and, therefore, are not reported as revenues in the governmental funds. 139,151 Accrued interest for long-term debt. This is the net change in accrued interest for the current period. (1,367,491) Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds. The net revenue (expense) of the internal services funds is reported with governmental activities. 10,625,185 Change in net position of govenmental activities $ 9,990,109 The amounts below included in the Statement of Activities do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change): 10,625,185Change to net pension asset Page 56 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 27 Proprietary Funds Proprietary funds account for City operations financed and operated in a manner like a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City maintains four primary enterprise funds: electric, water, sewer, and landfill. Landfill This is the fund used to account for activities related to the closure, post-closure, and corrective action plan of the City of Ukiah landfill. Electric Enterprise Fund The Electric Utility provides electrical services to the citizens of Ukiah, including 24-hour, 365-day response to emergency service calls for customer power problems, and outages. Additionally, the enterprise is responsible for making high voltage power lines safe for Fire & Police personnel at structure fires, automobile accidents and to make other situations where electric lines are near emergency crews. Water Enterprise Fund Chapter 13.04 of the Ukiah Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received. Sewer Enterprise Fund Chapter 13.20 of the Ukiah Municipal Code provides the authority for the City to operate sewer system. Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm damage reimbursement, and insurance rebates have been credited to this fund. The City also employs the use of internal service funds. Internal Service Funds Established to account for the costs of activities primarily serving multiple department and funds. Such funds may also provide services to external users, such as other governmental entities. Page 57 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 28 City of Ukiah, California Statement of Net Position Proprietary Funds June 30, 2022 Governmental Landfill Electric Water Wastewater Total Nonmajor Funds Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash and investments 9,462,182$ 3,659,178$ 2,926,740$ 1,710,909$ 240,719$ 17,999,728$ 2,574,948$ Restricted cash and investments - 7,007,413 5,076,944 4,248,056 - 16,332,413 16,738,592 Accounts receivable 133,539 3,436,109 1,619,898 1,207,551 197,285 6,594,382 33,021 Lease receivable - - - - 158,207 158,207 - Interest receivable 2,667 1,445 2,024 1,760 153 8,049 453 Grants and subventions receivable - 1,189 - - 396,600 397,789 - Inventories and prepaids - 1,614,271 106,149 21,577 - 1,741,997 1,500 Total current assets 9,598,388 15,719,605 9,731,755 7,189,853 992,964 43,232,565 19,348,514 Noncurrent assets: Advances to other funds - 313,433 - - 647,626 961,059 - Net pension asset 58,758 780,177 518,051 497,159 217,731 2,071,876 - Intangible assets - - 270,000 - - 270,000 - Land 699,654 2,316,012 2,267,920 670,431 1,793,862 7,747,879 762,562 Construction in progress - 3,576,271 2,037,373 1,254,683 499,965 7,368,292 840,701 Infrastructure and network - 27,026,108 49,914,075 90,125,703 7,229,154 174,295,040 - Buildings and improvements 26,700 26,261,659 22,248,066 10,328,621 4,385,509 63,250,555 516,596 Machinery equipment and vehicles 516,075 5,501,608 3,251,633 3,724,230 924,238 13,917,784 1,143,574 Less accumulated depreciation (428,622) (32,605,265) (16,788,551) (30,529,171) (4,828,994) (85,180,603) (991,783) Total noncurrent assets 872,565 33,170,003 63,718,567 76,071,656 10,869,091 184,701,882 2,271,650 Total assets 10,470,953 48,889,608 73,450,322 83,261,509 11,862,055 227,934,447 21,620,164 DEFERRED OUTFLOWS OF RESOURCES Pension related 22,266 295,645 196,314 188,397 82,508 785,130 - Total deferred outflows of resources 22,266 295,645 196,314 188,397 82,508 785,130 - Total assets and deferred outflows of resources 10,493,219 49,185,253 73,646,636 83,449,906 11,944,563 228,719,577 21,620,164 LIABILITIES Current liabilities: Accounts payable 17,395 719,407 1,121,577 1,075,791 213,533 3,147,703 263,182 Accrued payroll liabilities 10,099 160,965 100,098 104,331 65,906 441,399 359,247 Due to other funds - - - - 447,502 447,502 - Deposits payable - - - - 5,924 5,924 - Interest payable 4,608 176,219 378,274 257,545 13,713 830,359 163,864 Compensated absences - current 1,315 19,031 11,805 12,171 4,787 49,109 42,999 Long-term obligations - current 12,620 216,984 1,163,845 2,605,180 44,891 4,043,520 576,116 Total current liabilities 46,037 1,292,606 2,775,599 4,055,018 796,256 8,965,516 1,405,408 Noncurrent liabilities: Claims payable - - - - - - 143,486 Advance from other funds - - 647,627 - 1,829,171 2,476,798 640,000 Installment obligations 495,778 16,539,316 35,467,402 25,780,412 1,473,280 79,756,188 - Landfill closure/post-closure 19,890,002 - - - - 19,890,002 - Compensated absences 11,835 171,280 106,257 109,545 43,092 442,009 387,005 Due in more than one year - - - 3,995,222 - 3,995,222 18,264,771 Total noncurrent liabilities 20,397,615 16,710,596 36,221,286 29,885,179 3,345,543 106,560,219 19,435,262 Total liabilities 20,443,652 18,003,202 38,996,885 33,940,197 4,141,799 115,525,735 20,840,670 DEFERRED INFLOWS OF RESOURCES Lease related - - - - 158,207 158,207 - Pension related 82,963 1,101,568 731,460 701,962 307,425 2,925,378 - Total deferred inflows of resources 82,963 1,101,568 731,460 701,962 465,632 3,083,585 - Total liabilities and deferred inflows of resources 20,526,615 19,104,770 39,728,345 34,642,159 4,607,431 118,609,320 20,840,670 NET POSITION Net investment in capital assets 813,808 28,844,997 35,775,230 53,119,410 9,854,748 128,408,193 2,271,650 Restricted for: NCPA Projects - 320,241 - - - 320,241 - Unrestricted (10,847,204) 915,245 (1,856,939) (4,311,663) (2,517,616) (18,618,177) (1,492,156) Total net position (10,033,396)$ 30,080,483$ 33,918,291$ 48,807,747$ 7,337,132$ 110,110,257 779,494$ 798,049 110,908,306$ Business-type Activities Difference between business-type adjustments to assets and liabilities. Net position of business-type activities The accompanying notes are an integral part of these financial statements. Page 58 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 29 City of Ukiah, California Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Year Ended June 30, 2022 Governmental Activities Landfill Electric Water Wastewater Total Nonmajor Funds Total Enterprise Funds Internal Service Funds OPERATING REVENUES Charges for service 641,381$ 16,576,741$ 7,107,836$ 7,628,454$ 806,939$ 32,761,351$ 14,721,350$ Licenses and permits - - - - 30,324 30,324 - Intergovernmental - 221,400 - - - 221,400 - Cap and trade - 696,554 - - - 696,554 - Fines penalties and forfeitures - - - - 57,607 57,607 - Facility rental 8,705 - - - 694,469 703,174 - Fuel sales - - - - 896,179 896,179 - Miscellaneous - - - - 2,588 2,588 1,138 Connection fees - - - 379,054 - 379,054 - Total operating revenues 650,086 17,494,695 7,107,836 8,007,508 2,488,106 35,748,231 14,722,488 OPERATING EXPENSES Intergovernmental - 318,599 171,446 175,241 - 665,286 - General and administrative 142,325 2,909,373 1,105,121 1,389,252 487,455 6,033,526 1,968,532 Maintenance and operations 1,226,439 17,387,989 3,482,251 4,021,696 1,896,071 28,014,446 12,246,607 Fuel - - - - 576,612 576,612 - Depreciation 13,271 1,398,729 1,754,868 2,168,359 266,426 5,601,653 140,448 Total operating expenses 1,382,035 22,014,690 6,513,686 7,754,548 3,226,564 40,891,523 14,355,587 Operating income (loss)(731,949) (4,519,995) 594,150 252,960 (738,458) (5,143,292) 366,901 NONOPERATING REVENUES (EXPENSES) Property tax - - - - 17,057 17,057 - Capital contributions - - - - 68,966 68,966 50,000 Intergovernmental - 320,902 171,446 132,893 30,000 655,241 3,650 Interest, rent, and concessions (110,584) 21,950 (170,981) (97,951) 109,101 (248,465) (33,228) Miscellaneous - - - - - - 512 Interest expense and fiscal charges (28,772) (714,519) (843,899) (956,935) (81,114) (2,625,239) (176,663) Debt Issuance Costs - - - - - - (131,565) Sale of property - 13,700 - - - 13,700 - Total nonoperating revenues (expenses)(139,356) (357,967) (843,434) (921,993) 144,010 (2,118,740) (287,294) Income (loss) before contributions and transfers (871,305) (4,877,962) (249,284) (669,033) (594,448) (7,262,032) 79,607 Transfers in - - 293,243 - - 293,243 - Transfers out - - (300,788) (544,924) - (845,712) (1,730,483) Change in net position (871,305) (4,877,962) (256,829) (1,213,957) (594,448) (7,814,501) (1,650,876) Total net position - beginning (9,162,091) 34,958,445 34,175,120 50,021,704 7,931,580 117,924,758 2,430,368 Total net position - ending (10,033,396)$ 30,080,483$ 33,918,291$ 48,807,747$ 7,337,132$ 110,110,257 779,492$ (283,385) (8,097,886)$ The accompanying notes are an integral part of these financial statements. Business-type Activities Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Changes in net position of business-type activities Page 59 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 30 City of Ukiah, California Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 Governmental Activities Landfill Electric Water Wastewater Total Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 622,622$ 17,509,824$ 7,120,876$ 8,315,047$ 2,353,420$ 35,921,789$ 138,623$ Receipts from interfund services provided - - - - - - 9,089,465 Payments to employees (196,244) (3,273,673) (1,936,116) (1,943,905) (602,500) (7,952,438) (6,731,104) Payments to suppliers (319,075) (13,989,250) (1,267,311) (1,537,466) (2,000,003) (19,113,105) (5,676,706) Payments for interfund services used (142,325) (2,909,373) (1,105,121) (1,389,252) (487,455) (6,033,526) 3,154,102 Other payments - (318,599) (171,446) (175,241) (2,396) (667,682) (10,000) Other operating cash receipts (payments)- (147,078) - - - (147,078) 487,598 Net cash provided (used) by operating activities (35,022) (3,128,149) 2,640,882 3,269,183 (738,934) 2,007,960 451,978 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Principal payments received on loans receivable - - - - 5,500 5,500 - Cash received (paid) to other funds - (127,163) (76,496) (544,924) 760,923 12,340 (1,730,481) Property taxes received - - - - 17,057 17,057 - Lawsuit settlement payments - - - (1,060,000) - (1,060,000) - Grants and contributions - 319,713 171,446 132,893 - 624,052 53,650 Proceeds from pension bonds (7,290) (93,449) (59,203) (67,068) (19,633) (246,643) - Net cash provided (used) by noncapital financing activities (7,290) 99,101 35,747 (1,539,099) 763,847 (647,694) (1,676,831) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital grants and contributions - - - - 361,645 361,645 - Proceeds from capital loans - - 1,134,096 - - 1,134,096 - Interest paid (24,166) (538,299) (759,410) (301,237) (68,795) (1,691,907) 989,440 Principal paid on capital and related debt - - (1,620,094) (1,436,000) (10,655) (3,066,749) (148,280) Proceeds from bonds - 10,183,609 4,774,778 3,995,222 - 18,953,609 14,850,000 Acquisition and construction of capital assets (11,279) (3,687,914) (3,592,025) (1,551,792) (243,251) (9,086,261) (178,189) Proceeds from sale of property - 13,700 - - - 13,700 - Land acquisition - (352,576) - - - (352,576) - Net cash provided (used) by capital and related financing activities (35,445) 5,618,520 (62,655) 706,193 38,944 6,265,557 15,512,971 CASH FLOWS FROM INVESTING ACTIVITIES Interest received (110,843) 21,689 (170,798) (97,741) 18,854 (338,839) (33,168) Net cash provided (used) by investing activities (110,843) 21,689 (170,798) (97,741) 18,854 (338,839) (33,168) Net increase (decrease) in cash and cash equivalents (188,600) 2,611,161 2,443,176 2,338,536 82,711 7,286,984 14,254,950 Balances - beginning of year 9,650,782 8,055,430 5,560,508 3,620,429 158,008 27,045,157 5,058,590 Balances - end of the year 9,462,182$ 10,666,591$ 8,003,684$ 5,958,965$ 240,719$ 34,332,141$ 19,313,540$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income (731,949)$ (4,519,995)$ 594,150$ 252,960$ (738,458)$ (5,143,292)$ 366,901$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 13,271 1,398,729 1,754,868 2,168,359 266,426 5,601,653 140,448 Changes in assets and liabilities: Decrease (increase) in accounts receivable (27,464) 236,529 27,175 318,219 (292,892) 261,567 115,889 Decrease (increase) in prepaids - - - - - - (1,500) Decrease (increase) in inventory - (304,159) (3,633) (3,557) - (311,349) - Decrease (increase) in deferred outflows 529,085 6,929,958 4,060,698 4,492,285 1,770,380 17,782,406 - Increase (decrease) in accounts payable (4,834) 260,826 356,004 626,338 (141,681) 1,096,653 (227,140) Increase (decrease) in accrued salaries and benefits (465) 8,441 6,708 8,983 39,783 63,450 55,041 Increase (decrease) in compensated absences (2,875) (39,903) 3,025 7,381 8,079 (24,293) 195,408 Increase (decrease) in deferrred inflows 82,697 1,098,077 729,403 699,701 306,607 2,916,485 - Increase (decrease) in net pension liability/(asset)(624,674) (8,196,652) (4,887,516) (5,301,486) (1,957,178) (20,967,506) - Increase (decrease) in landfill liability 732,186 - - - - 732,186 - Increase (decrease) in claims payable - - - - - - (193,069) Net cash provided (used) by operating activities (35,022)$ (3,128,149)$ 2,640,882$ 3,269,183$ (738,934)$ 2,007,960$ 451,978$ Noncash investing, capital and financing activities Amortization related to long-term debt -$ 55,200$ 25,153$ 18,066$ -$ 98,419$ 58,047$ Business-type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. Page 60 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 31 Fiduciary Funds These funds account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in the separate Fiduciary Fund financial statements. PRIVATE PURPOSE TRUST FUND Redevelopment Non-Housing Housing Successor Private Purpose Trust Fund Resources held for the benefit of the state from the dissolution of the Ukiah Redevelopment Agency’s non-housing functions. CUSTODIAL FUNDS The City accounts for activities on behalf of external entities, including other governments. Page 61 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 32 City of Ukiah, California Statement of Fiduciary Net Position Fiduciary Funds June 30, 2022 Private-Purpose Trust Funds Custodial Funds ASSETS Cash and investments 6,821,515$ 1,274,239$ Restricted cash and investments 23 - Accounts receivable - 379,437 Interest receivable 1,924 262 Land held for resale 5,443 - Total assets 6,828,905 1,653,938 LIABILITIES Accounts payable 2,822 166,263 Accrued payroll liabilities 443 26,927 Deposits payable - 524,213 Interest payable 8,626 5,697 Due to other agencies - 172,893 Intergovernmental payable - 25,296 Due to City of Ukiah - 1,285,867 Advances from City of Ukiah 1,500,000 - Due in more than one year 4,141,704 - Total liabilities 5,653,595 2,207,156 NET POSITION Restricted for: Held for the benefit of the state 1,175,310 - Individuals, Organizations and Other Governments - (553,219) Total net position 1,175,310$ (553,219)$ The accompanying notes are an integral part of these financial statements. Page 62 of 277 City of Ukiah, California Financial Section: Basic Financial Statements Page | 33 City of Ukiah, California Statement of Changes in Fiduciary Net Position Fiduciary Activities Year Ended June 30, 2022 Private-Purpose Trust Funds Custodial Funds ADDITIONS Contributions: Taxes and assessments collected for other governments 1,760,957$ 1,209,186$ Service charges collected for other governments - 667,052 Service charges collected for other agencies - 1,413,261 Intergovernmental - 625,634 Miscellaneous - 1,259 Members - 562,294 Total contributions 1,760,957 4,478,686 Investment earnings: Interest, rent, and concessions (83,051) (28,350) Total investment earnings (83,051) (28,350) Total additions 1,677,906 4,450,336 DEDUCTIONS General and administrative 250,000 9,460 Maintenance and operations 25,667 2,182,220 Interest expense and fiscal charges 58,814 74,824 Distributions to other governments - 958,204 Payments to other agencies for service charges collected - 643,940 Payments to City for services provided - 1,021,910 Total deductions 334,481 4,890,558 Net increase (decrease) in fiduciary net position 1,343,425 (440,222) Net Position -- beginning of the year (168,115) (112,997) Net Position -- end of the year 1,175,310$ (553,219)$ The accompanying notes are an integral part of these financial statements. Page 63 of 277 Notes to the Basic Financial Statements CITY OF UKIAH, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS INDEX June 30, 2022 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the City as follows: Note 1 - Summary of Significant Accounting Policies .................................................................................................................. 35 Note 2 - Stewardship, Compliance, and Accountability ............................................................................................................. 45 Note 3 - Cash and Investments .......................................................................................................................................................... 46 Note 4 - Accounts Receivable ............................................................................................................................................................ 50 Note 5 – Notes and Loans Receivable .............................................................................................................................................. 51 Note 6 - Capital Assets ........................................................................................................................................................................ 52 Note 7 - Long-Term Liabilities .......................................................................................................................................................... 54 Note 8 – Landfill Closure and Post Closure Costs ....................................................................................................................... 60 Note 9 - Interfund Transactions and Interfund Borrowing ........................................................................................................ 60 Note 10 - Risk Management ............................................................................................................................................................... 62 Note 11 - Public Employee Retirement Plan ................................................................................................................................... 65 Note 12 – Related Organizations ...................................................................................................................................................... 77 Note 13 - Commitments and Contingencies................................................................................................................................... 79 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency .......................................................................... 80 Note 15 – New Pronouncements ....................................................................................................................................................... 82 Note 16 – Service Contracts................................................................................................................................................................ 82 Page 64 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 35 Note 1 - Summary of Significant Accounting Policies The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applied to government agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The accompanying financial statements present the City of Ukiah 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. The more significant accounting policies of the City are described below: A. Defining the reporting entity The City of Ukiah was incorporated March 8, 1876 under the laws of the State of California. Ukiah operates under a Council-Manager form of government. The City Manager serves as the chief executive for day-to-day operations and long-term planning, including executing the policies and directives of the City Council. Department heads report directly to the City Manager and serve at his or her pleasure. The City provides a range of municipal services to its citizens including public safety (fire and police), public works; planning and building regulation; recreation and parks; airport, golf; and water, sewer, and electric utilities. The Redevelopment Agency of the City of Ukiah (the Agency) was established by the City as a separate legal entity in accordance with state law. The purpose of the Agency was to encourage new investment and reinvestment within legally designated redevelopment areas in partnership with property owners. The Agency was dissolved on February 1, 2012 by the State Legislature and California Governor, Jerry Brown. Blended Component Unit The City of Ukiah Public Financing Authority is a Joint Exercise of Powers Authority organized and existing under and by virtue of the Joint Exercise of Power Act of the Government Code of the State of California. The City and the Industrial Development Authority of the City of Ukiah form the Authority by the execution of a Joint Exercise of Powers Agreement. The primary purpose of the Authority is to issue bonds and make lease agreements with the City of Ukiah and the Industrial Development Authority of the City of Ukiah. The City appoints the voting majority of the board and is able to impose its will on this component unit. There are no separate financial statements prepared for the authority. B. Government-wide and Fund Financial Statement The government-wide financial statements report information on all the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grant and contributors that are restricted to meeting the operational or capital requirements of a function. Taxes, and other items not properly included among program revenues are reported instead as general revenues. The accounts of the City are organized based on funds. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Page 65 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 36 Note 1 - Summary of Significant Accounting Policies (Continued) In the fund financial statement in the report, the various funds are grouped into generic funds within three broad fund types. They are as follows: The City reports four major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. The Streets Capital Improvements fund accounts for resources and activities related to streets and rights-of- way improvements, funded primarily with resources derived from Measure Y, a half-cent district transaction and use tax. The General Capital Projects fund is used to account for the accumulation of financial resources for certain capital projects, notably streets and rights-of-way, funded by various sources, including the general fund. The Pension Debt Service fund is used to account for the accumulation of financial resources to meet the City’s lease revenue bonds. The reserve accumulated is to be used to ensure the City has resources to meet debt service in future periods. The City reports the following major proprietary funds: The Landfill Fund accounts for the activities of the City’s solid waste landfill operations. The Electric Fund accounts for the activities of the City’s electric generation and distribution operations. The Water Fund accounts for the activities of the City’s water treatment and distribution operations. The Sewer Fund accounts for the activities of the City’s sewage collection and treatment operations. Additionally, the City reports the following fund types: Internal Service Funds - account for garage (vehicle maintenance), stores (purchasing), public safety dispatch, utility billing, workers’ compensation and liability insurance services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. Private-Purpose Trust Funds - account for resources legally held in trust for use by other organizations. All resources of the fund, including any earnings on the invested resources, may be used to support the organization’s or department’s activities. There is no requirement that any portion of these resources be preserved as capital. Custodial Funds - used by the City to report resources held by the City in a custodial capacity for the Ukiah Valley Sanitation District, Ukiah Waste Solutions, and Russian River Watershed. These funds are used to record receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. Page 66 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 37 Note 1 - Summary of Significant Accounting Policies (Continued) Generally, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s proprietary fund functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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. Principal operating revenues of the City’s electric, water, wastewater, golf and street lighting funds and the City’s internal service funds are charges to customers for sales and services. Principal operating revenues of the City’s airport, disposal site and conference center funds include charges to customers for sales and services and rental fees. The parking district fund’s principal operating revenues include the sale of parking permits to customers and parking fines. The City also recognizes as operating revenue tap fees intended to recover the cost of connecting new customers to the City’s utilities. Operating expenses for the enterprise funds and internal service funds include cost of power purchases, fuels and lubricants, operations, maintenance, utilities, insurance premiums and deductibles, general and administration, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: 1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least 10 percent of the corresponding total for all funds of that category or type; and, 2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least 5 percent of the corresponding total for all governmental funds combined. The City reports the following major funds: • General Fund • Streets Capital Projects • Pension Stabilization • General Capital Projects • Landfill • Electric • Water • Wastewater C. Basis of Accounting and Measurement focus Basis of accounting refers to when revenue and expenditures (or expenses) are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurements made, regardless of the measurement focus applied. Page 67 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 38 Note 1 - Summary of Significant Accounting Policies (Continued) Measurement focus is the determination of (1) which assets and which liabilities are included on a government's balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses). The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenue is recorded when earned and expenses are recorded when liabilities are incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are received. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Major revenue sources susceptible to accrual include substantially all property taxes, taxpayer-assessed taxes (such as sales and use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest, special assessments levied, state and federal grants and charges for current services. Revenue from licenses, permits, fines and forfeits are recorded as received. Expenditures are recorded when the related fund liability is incurred. Fiduciary fund revenue and expenditures (as appropriate) are recognized on the basis consistent with the fund’s accounting measurement objective. All governmental funds are accounted for using a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of “available spendable resources.” Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. The government-wide financial statements, as well as the proprietary funds financial statements, are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues) in net total assets. D. Use of Estimates Financial statement preparation, in conformity with accounting principles generally accepted in the United States of America, requires the use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Page 68 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 39 Note 1 - Summary of Significant Accounting Policies (Continued) E. Cash and Investments For purposes of the statement of cash flows the City’s cash and cash equivalents are cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available. F. Receivable and Payables Balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year are reported as either “due to/due from other funds” (amounts due within one year), “advances to/from other funds” (non-current portions of interfund lending/borrowing transactions), or “loans to/from other funds” (long-term lending/borrowing transactions as evidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available. The City considers these taxes available if they are received during the period when settlement of prior fiscal year accounts payable and payroll charges normally occurs. Grants, entitlements or shared revenue is recorded as receivables and revenue in the general, special revenue and capital project funds when they are received or susceptible to accrual. Notes receivables represent individual loans, secured by property liens in favor of the City and the Redevelopment Successor Agency, made through various sources, including the Community Development Block Grant (CDBG) and federal HOME housing programs. When repaid, these amounts are designated for purposes allowed under the reuse guidelines. G. Allowance for Doubtful Accounts Management has elected to record bad debts using the allowance method. H. Prepaid Items and Inventory The City utilizes the consumption method for recoding inventories and prepaid items in governmental funds. All inventories are valued at cost using the first-in/first-out (FIFO) method. An annual charge is made to various City funds to assist in the financing of warehouse operations in addition to being billed as inventory is issued. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Page 69 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 40 Note 1 - Summary of Significant Accounting Policies (Continued) I. Capital Assets Government-Wide Statements Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems. The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these assets have been valued at estimated historical cost. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The City capitalizes assets with an original cost greater than $10,000 and with a useful lifespan longer than two years. No depreciation is recorded in the year of acquisition or in the year of disposition. The range of estimated useful lives by type of asset is as follows: Buildings and improvements 30 – 60 years Roadway improvements 50 years Sidewalks, curbs and gutters 50 years Storm drain pipes/structures 50 years Traffic signal devices 5 – 40 years Landscaping 30 years Signage 25 years Leasehold improvements 5 years Machinery and equipment 5 – 20 years Vehicles 5 – 10 years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. J. Compensated Absences Compensated absences represent the vested portion of accumulated vacation and sick leave. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees. Upon separation, 100 of accrued vacation and accrued comp time is paid and in proprietary funds, a long-term liability for such benefits has been recorded. K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City currently has one item that qualifies for reporting in this category, the result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. See Note 11 – Public Employee Retirement Plan for more information. Page 70 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 41 Note 1 - Summary of Significant Accounting Policies (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises only under the modified accrual basis of accounting, and another, which is a result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which qualify for reporting in this category. Under the modified accrual basis of accounting, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. L. Net Position Flow Assumptions Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position. M. Long-term Liabilities In both the governmental-wide financial statements and proprietary fund financial statements, long-term debt and other long-term liabilities are reported as liabilities in the applicable statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bond. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. N. Equity Classification Government-Wide Statements Equity is classified as net position and is displayed in three components: Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets debt.” Page 71 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 42 Note 1 - Summary of Significant Accounting Policies (Continued) Fund Financial Statements Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City: Nonspendable Fund Balance – • Assets that will never convert to cash (prepaid items, inventory). • Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable). These are not in spendable form. • Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment). Restricted Fund Balance – • Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (Creditors, Grantors, Contributors and Other Governments). • Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (Gas Tax). Committed Fund Balance – • Self-imposed limitations set in place prior to the end of the period. (Encumbrances, economic contingencies and uncertainties). • Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove, done typically through resolution during the budget process. Assigned Fund Balance – • Amounts in excess of nonspendable, restricted, and committed fund balance in funds other than the General Fund are reported as assigned fund balance and are done so by the City Council. Unassigned Fund Balance – • Residual net resources • Total fund balance in the General Fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus). • Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit). The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Page 72 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 43 Note 1 - Summary of Significant Accounting Policies (Continued) An additional safeguard to the City’s fiscal sustainability lies in the General Fund’s strategic reserve. The Council created this reserve in FY 2013 at 25 percent of operating expenditures for the year. The reserve is to be used to ensure adequate resources are available to manage cash flow and economic uncertainties, minimizing the impact to our employees and the Ukiah citizenry to the greatest extent possible. O. Property Taxes Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes: Property Valuations are established by the Mendocino County Assessor for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provision of Article XIII-A of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. From this base assessment, subsequent annual increases in valuation are limited to a maximum of two percent. However, an increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Tax Levies are limited to one percent of full assessed value which results in a tax rate of one percent assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation. Tax Levy Dates are attached annually on January 1, preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property are not relieved by subsequent renewal or change in ownership. Tax Collections are the responsibility of the Mendocino County Treasurer-Tax Collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments. The First is due on November 1 of the fiscal year and is delinquent if not paid by December 10; The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against property unless the taxes become delinquent. Payments must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the county for late payments. The City has elected to receive the City’s portion of the property taxes from the county under the county Teeter Bill program. Under this program, the City receives 100 percent of the City’s share of the levied property taxes in periodic payments with the county assuming the responsibility for the delinquencies. Property Tax Administration Fees – the state of California FY 90-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Page 73 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 44 Note 1 - Summary of Significant Accounting Policies (Continued) Tax Levy Apportionments – due to the nature of the City-wide maximum levy, it is not possible to identify general- purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the county’s auditor-controller based primarily on the ratio that each agency represented of the total City-wide levy for the three fiscal years prior to fiscal year 1979. P. Interfund Transfers Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. Q. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Ukiah can be found in the following notes and with the City’s pension administrator, CalPERS. California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. R. New or Closed Funds The City opened the following new funds in this reporting year: • CASP Certification • American Rescue S. Leases Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund 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 inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. • The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that expected to significantly affect the amount of the lease receivable. Page 74 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 45 Note 2 - Stewardship, Compliance, and Accountability The following major and non-major funds had deficit fund balances as of June 30, 2022, Deficit Fund Equity Major and Non-major Governmental Funds Fund Name Deficit Amount Discussion/Explanation Streets Capital Improvement Fund $ (15,972)Deficit amount is the result of capital projected funded by a specific general revenue source (Measure Y) and will be eliminated with revenues received in 2022. ARRC (37,518)Deficit amount is the result of prior capital projects and operational deficiencies. The deficit is being eliminated with future revenues generated by ARRC operations. Winter Special Events (177,569)Deficit amount is the result of a capital acquisition using an interfund loan with the general fund. The loan will be repaid with current available revenues annually, with full payoff expected in five years. Highway User Tax (Gas Tax) (118,545)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated when unavailable revenues are recognized as revenues in the future. American Rescue Act (28,944)Deficit amount resulted from allocation of grant proceeds in anticipation of second disbursement traunch. Will be eliminated when second traunch funds are received in FY 2023. Solid Waste Mitigation Fund (20,717)Deficit amount resulted from payments to other governmental agencies for recycling and other solid waste mitigation activities. Will be eliminated with new revenues collected in FY 2023. Rail Trail (328,718)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated when future and unavailable revenues are recognized as revenues in the future. Riverside Park (40,672)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated when future and unavailable revenues are recognized as revenues in the future. This area intentionally left blank. Page 75 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 46 Note 3 - Cash and Investments The City follows the practice of pooling cash and investments of all funds except for the restricted funds required to be held by outside custodians, fiscal agents or trustees under the provisions of bond indentures. Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows: Cash and Investments Total Cash equivalents and investments Pooled cash and investments, at fair value Cash in bank 10,038,855$ Cash in investment portfolio, excluding LAIF 25,594,243 Cash with LAIF 583,430 Total pooled investment balances 26,177,673 Non pooled cash and investments, at fair value Petty cash 8,049 Total non pooled cash, at fair value 8,049 Cash with fiscal agent 51,547,310 Total non pooled investments, at fair value 51,547,310 Total cash equivalents and investments 87,771,887$ Investment Portfolio Analysis PAR % of Portfolio Permitted by Policy In compliance with investment policy <1 1 to 2 >2 12,325,000$ US treasury obligations 45.51%100%Yes 417,270$ 4,959,141$ 6,442,973$ 11,819,384$ Federal agency: 3,605,000 Government sponsored enterprise 13.31%100%Yes 462,852 3,027,409 - 3,490,261 826,742 Collateral mortgage obligation 3.05%100%Yes 395,814 3,218 424,724 823,756 610,000 Municipal obligations 2.25%100%Yes 108,890 366,180 112,302 587,372 700,000 Supra-National agency 2.58%30%Yes 274,104 - 399,961 674,065 195,000 Corporate notes 0.72%30%Yes 191,205 - - 191,205 4,285,000 Negotiable certificates of deposit 15.82%30%Yes 565,220 1,419,254 2,158,414 4,142,888 3,788,554 Asset-backed securities 13.99%20%Yes - 443,119 3,260,676 3,703,795 583,430 Local agency investment fund 2.15%$75M Yes 583,430 - - 583,430 161,517 Money market 0.60%20%Yes 161,517 - - 161,517 27,080,243$ Total pooled investments 100.00%3,160,302$ 10,218,321$ 12,799,050$ 26,177,673$ 51,466,326 Money Market 99.84%20%Yes 51,466,326 - - 51,466,326 80,984 County of Mendocino treasury 0.16%100%Yes 80,984 80,984 Total non-pooled investments 100.00%51,547,310$ -$ -$ 51,547,310$ Maturities (in years) Page 76 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 47 Note 3 - Cash and Investments (continued) Collateral and Categorization Requirements At the fiscal year end, the City’s carrying amount of demand deposits was $10,038,855 and the bank account balance was $10,078,332. The difference of $39,477 represented outstanding checks and deposits in transit. All deposits not insured by Federal Depository Insurance Corporation (FDIC) would be covered by collateralized securities in accordance with California Government Code Section 53600-53609. Investment Policy The table below identifies the investment types that are authorized under provisions of the City’s investment policy adopted August 16, 2005 (subsequently updated July 5, 2017), and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy also limits the weighted average of the City’s investment portfolio to 2.5 years and except for obligations of the U.S. government and its agencies, no more than 10 percent of the portfolio may be invested in the securities of any single issuer. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer City of Ukiah Bonds 5 Years None 10% U.S. treasury obligations 5 Years Unlimited None State of California obligations 5 Years None 10% Non-California state obligations 5 Years None 10% Local agency obligations 5 Years None 10% Federal agency or government sponsored enterprise obligations 5 Years None 10% Bankers' acceptances 180 Days 40%5% U.S. Commercial paper (highest rating)270 Days 25%5% Negotiable certificates of deposit 5 Years 30%5% Repurchase agreements (1)365 Days None 10% Reverse repurchase agreements (2)92 Days 20%10% Medium-term notes-corporate or depository institutions (3)5 Years 30%5% Money market funds (highest rating)n/a 20%10% Local Agency Investment Fund (LAIF)N/A $75m $75m Time deposits 5 Years 25%10% Mortgage-backed and Asset-backed Securities (rated "AA" or better)5 Years 20%10% (1) Market value of collateral shall be valued at 102 percent and monitored daily. (2) Requires prior City Council approval. (3) Five years or less. Page 77 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 48 Note 3 - Cash and Investments (continued) 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 Ukiah manages its exposure to interest rate risk is by investing in the State of California’s Local Agency Investment Fund (LAIF), whose underlying securities have staggered maturities and are generally due on demand, which provides cash flow and liquidity needed for operations. 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 nationally recognized statistical rating organization. The City’s investment policy limits credit risk by requiring compliance with the California Government Code for investment of public funds, as described in detail above. Concentration of Credit Risk Except for securities of the U.S. Government and its agencies, the investment policy of the City limits the amount that can be invested in any one issuer to no more than 10 percent of the total portfolio. As of June 30, 2022, holdings in any one issuer did not exceed 5 percent of the total portfolio. Custodial Credit Risk The credit risk for deposits is the risk that, in the event of failure of a depository financial institution, a government will not be able recover its deposits or will not be able to recover collateral securities that are in the possession on an outside party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, 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 market value of the pledged securities in the collateral pool must be equal at least 110 percent 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 percent of the secured public deposits. At June 30, 2022, the City had $9,335,225 in financial institutions that were not covered by the FDIC but were covered by collateralized securities of the financial institutions where the deposits were maintained. The credit risk for investments is the risk that, in the event of the failure of counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of another party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities using mutual funds or government investment pools (such as LAIF). Page 78 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 49 Note 3 - Cash and Investments (continued) Credit Risk Schedule Investment Type AAA AA+ to A-BBB+Unrated US Treasury obligations 11,819,383$ N/A -$ 11,819,383$ -$ -$ Federal agency/GSE 3,490,263 N/A - 3,490,263 - - Federal agency/CMO 823,756 N/A - 823,756 - - Municipal obligations 587,372 N/A 48,123 396,575 - 142,674 Supra-National agency 674,065 AA 674,065 - - - Corporate notes 679,985 A - 191,204 488,781 - Negotiable certificates of deposit 3,654,107 N/A - 3,654,107 - - Asset-backed securities 3,703,795 AA 3,283,203 - - 420,592 LAIF 583,430 N/A - - - 583,430 Money market 161,517 N/A - - - 161,517 County of Mendocino treasury 80,984 N/A - - - 80,984 Held by fiscal agent: Money market 51,466,326 N/A - - 51,466,326 Total 77,724,983$ 4,005,391$ 20,375,288$ 488,781$ 52,855,523$ Total Investment Minimum Legal Rating Rating as of Fiscal Year End Fair Value 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 the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are other than quoted process included in Level 1 and are valued using a matrix pricing model using either directly or indirectly observable inputs; Level 3 inputs are significant unobservable inputs. Fair Value Schedule Investment Type 1 2 US Treasury obligations 11,819,383$ -$ -$ 11,819,383$ Federal agency/GSE 3,490,263 - - 3,490,263 Federal agency/CMO 823,756 - - 823,756 Municipal obligations 587,372 - - 587,372 Supra-National agency 674,065 - - 674,065 Corporate notes 191,204 - - 191,204 Negotiable certificates of deposit 4,142,888 - - 4,142,888 Asset-backed securities 3,703,795 - - 3,703,795 LAIF 583,430 583,430 - - Money market 161,517 161,517 - - County of Mendocino treasury 80,984 80,984 - - Held by fiscal agent: Money market 51,466,326 51,466,326 - - Total 77,724,983$ 52,292,257$ -$ 25,432,726$ Total Investment Investments Not Measured at Fair Value Level Page 79 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 50 Note 3 - Cash and Investments (continued) Participation in an External Investment Pool The City is a voluntary participant in the California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statue and is chaired by the State Treasurer who is responsible for the day to day administration of LAIF. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis, which is different from the fair value of the City’s position in the LAIF pool. The State Treasurer determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available. As of June 30, 2022, the City’s investment in LAIF was $583,430. The total amount invested by all public agencies at that date was $35.76 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2022 has a balance of $234.5 billion. Financial Statements of LAIF and PMIA may be obtained from the California Treasurer’s web site at www.treasurer.ca.gov. Note 4 - Accounts Receivable Accounts receivable consisted of the following at June 30, 2022: Receivables Allowance Net Governmental activities Interest 5,466$ -$ 5,466$ Taxes 2,282,934 - 2,282,934 Grants and subventions 1,389,559 - 1,389,559 Accounts receivable: Customers 1,928,961 - 1,928,961 Total Governmental activities 5,606,920 - 5,606,920 Business-type activities Interest 8,049 - 8,049 Grants and subventions 397,789 - 397,789 Accounts receivable: Customers 7,141,737 547,215 6,594,522 Total Business-type activities 7,547,575 547,215 7,000,360 Total receivables 13,154,495$ 547,215$ 12,607,280$ Concentration of Receivables Other governments 32.3% Individuals/businesses 67.7% Amounts do not indicate a significant concentration (greater than 25 percent of the total receivable balance) with any single individual, business or agency. Page 80 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 51 Note 5 – Notes and Loans Receivable Through the City’s various housing rehabilitation funds, first-time homebuyer’s funds, and business/economic development loan funds, the City has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms of the loan. Interest accrues on the loans that bear interest. Loans and notes receivable for the year ended June 30, 2022, consisted of the following: Loans and Notes Receivable Beginning Ending 7/1/2021 Additions Deletions 6/30/2022 Major governmental funds: Successor Agency Note 2,000,000$ -$ 500,000$ 1,500,000$ Other Agencies 121,175 586,923 708,098 Miscellaneous 3,924 2,872 1,052 Nonmajor governmental funds: Special revenue funds: LMIHF Housing Asset Fund 1,483,474 7,291 - 1,490,765 CDBG Program Income 221,583 105,263 31,944 294,902 Home Program Income 8,159,798 213,775 - 8,373,573 Total governmental funds 11,989,954 913,252 534,816 12,368,390 Enterprise funds: Golf Fund 5,500 5,500 - Total enterprise funds 5,500 - 5,500 - Total loans/notes receivable 11,995,454$ 913,252$ 540,316$ 12,368,390$ This area intentionally left blank. Page 81 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 52 Note 6 - Capital Assets Governmental capital asset activity for the year ended June 30, 2022, was as follows: Capital Assets - Governmental Balance Balance July 1, 2021 Additions Deletions Transfers June 30, 2022 Governmental activities: Nondepreciable assets: Land 4,092,630$ 503,435$ -$ -$ 4,596,065$ Construction in progress 6,971,422 1,119,984 - (6,061,871) 2,029,535 Total nondepreciable assets 11,064,052 1,623,419 - (6,061,871) 6,625,600 Depreciable assets: Buildings and improvements 21,862,814 - (1,398) - 21,861,416 Machinery, equipment, and vehicles 10,045,491 791,066 (732,775) - 10,103,782 Infrastructure and network 55,602,715 2,939,663 - 6,061,871 64,604,249 Total depreciable assets 87,511,020 3,730,729 (734,173) 6,061,871 96,569,447 Total 98,575,072 5,354,148 (734,173) - 103,195,047 Accumulated depreciation: Buildings and improvements (7,849,568) (731,450) 1,398 - (8,579,620) Machinery, equipment, and vehicles (6,519,879) (503,459) 732,775 - (6,290,563) Infrastructure and network (25,801,403) (942,379) - - (26,743,782) Total accumulated depreciation (40,170,850) (2,177,288) 734,173 - (41,613,965) Net depreciable assets 47,340,170 1,553,441 - 6,061,871 54,955,482 Total governmental capital assets, net 58,404,222$ 3,176,860$ -$ -$ 61,581,082$ Allocation of Depreciation Expense Governmental Activities: General government 233,546$ Public works 1,275,179 Public safety 171,740 Recreation and culture 123,590 Parks, buildings, and grounds 373,233 Total Depreciation Expense 2,177,288$ Page 82 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 53 Note 6 – Capital Assets (Continued) Business-type capital asset activity for the year ended June 30, 2022, was as follows: Capital Assets - Business-type Balance Balance July 1, 2021 Additions Deletions Transfers June 30, 2022 Business-type activities: Nondepreciable assets: Land 7,042,727$ 705,152$ -$ -$ 7,747,880$ Capacity rights 180,000 90,000 - - 270,000 Construction in progress 8,470,658 5,493,392 (541) (6,595,216) 7,368,291 Total nondepreciable assets 15,693,385 6,288,544 (541) (6,595,216) 15,386,171 Depreciable assets: Buildings and improvements 63,283,228 - (32,670) - 63,250,558 Machinery, equipment, and vehicles 13,562,385 867,464 (451,110) 69,412 14,048,151 Infrastructure and network 165,703,874 2,065,361 - 6,525,804 174,295,039 Total depreciable assets 242,549,487 2,932,827 (483,780) 6,595,216 251,593,748 Total 258,242,872 9,221,371 (484,321) - 266,979,919 Accumulated depreciation: Buildings and improvements (33,941,230) (1,395,416) 32,670 - (35,303,976) Machinery, equipment, and vehicles (8,047,360) (708,587) 451,110 - (8,304,837) Infrastructure and network (38,204,508) (3,497,649) - - (41,702,157) Total accumulated depreciation (80,193,098) (5,601,652) 483,780 - (85,310,970) Net depreciable assets 162,356,389$ (2,668,825)$ -$ 6,595,216$ 166,282,778$ Total business-type capital assets, net 178,049,774$ 3,619,719$ (541)$ -$ 181,668,949$ Allocation of Depreciation Expense Business-type Activities: Water 1,194,830$ Sewer 2,168,359 Recycled Water 560,038 Electric 1,398,729 Landfill 13,271 Parking 6,112 Airport 193,138 Street lighting 2,943 Conference Center 45,889 Golf 6,456 Ambulance 11,888 Total Depreciation Expense 5,601,652$ Page 83 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 54 Note 7 - Long-Term Liabilities The following is a summary of changes in long-term liabilities for the year ended June 30, 2022. Long-term Obligations Beginning Balance Ending Balance Governmental Activities July 1, 2021 Additions Reductions June 30, 2022 2017 fire engine lease (direct borrowing)763,396$ -$ 109,586$ 653,810$ 112,338$ 2017 computer equipment lease (direct borrowing)58,280 - 58,280 - - 2017 I-Bank financing lease (direct borrowing)3,751,776 - 88,260 3,663,516 91,743 2020 fire brush truck equipment lease (direct borrowing)207,216 - 20,882 186,334 21,390 2020 fire self-contained breathing apparatus equipment lease (direct borrowing)328,457 - 31,167 297,290 31,921 Series 2020A Community Facilities Lease Revenue Bonds 2,380,000 - 90,000 2,290,000 90,000 2020A unamortized premium 351,128 - 17,556 333,572 17,556 Series 2020B CalPERS Taxable Lease Revenue Bonds 32,426,592 - 458,357 31,968,235 793,000 Series 2022 Lease Revenue Bonds (Street Projects)- 15,350,000 - 15,350,000 1,245,000 2022 unamortized premium- Streets Projects - 1,677,365 55,912 1,621,453 55,912 Series 2022 Lease Revenue Bonds (Corporation Yard Projects)- 14,850,000 - 14,850,000 235,000 2022 unamortized premium-Corp Yard Projects - 1,214,737 40,491 1,174,246 40,491 Claims payable 430,458 - 143,486 286,972 143,486 Net pension liability 38,156,746 - 38,156,746 - - Compensated absences 1,072,592 223,885 177,713 1,118,763 111,876 Total 79,926,640$ 33,315,987$ 39,448,436$ 73,794,191$ 2,989,713$ Business-Type Activities 2017 CalTrans Aeronautics Loan - Airport (direct borrowing)159,635$ -$ 10,650$ 148,985$ 10,903$ 2016 Water Revenue Refunding Bonds 8,620,000 - 565,000 8,055,000 415,000 2016 unamortized premium 1,358,275 - 25,153 1,333,122 95,223 Lawsuit settlement liability 2,000,000 - 1,000,000 1,000,000 1,000,000 Landfill closure and post-closure 19,297,593 592,409 - 19,890,002 - 2017 SWRCB recycled water loan (direct borrowing)18,238,738 - 525,558 17,713,180 529,536 Series 2020 Wastewater Refunding Bonds 23,620,000 - 1,436,000 22,184,000 1,471,000 Series 2020B CalPERS Taxable Lease Revenue Bonds 17,448,408 - 246,643 17,201,765 427,000 Series 2022 Lease Revenue Bonds (Utilities Projects)- 8,770,000 - 8,770,000 - 2022 Utilities unamortized premium - Utilities Projects - 1,189,729 39,658 1,150,071 39,658 Series 2022 Electric Revenue Bonds - 9,190,000 - 9,190,000 - 2022 Electric unamortized premium - 1,104,009 55,200 1,048,809 55,200 Claims payable 99,166 - 49,583 49,583 49,583 Net pension liability 18,895,630 - 18,895,630 - - Compensated absences 562,843 20,672 50,002 533,513 53,351 Total 110,300,288$ 20,866,819$ 22,899,077$ 108,268,031$ 4,146,454$ Due within One Year The general fund is primarily responsible for liquidating the net pension liability and compensated absences of governmental activities. Governmental Activities 2017 Fire Engine Lease (direct borrowing) In October 2017, the City entered into a finance purchase agreement with Umpqua Bank for the purchase of two Type-1 fire engines totaling $1,125,731. Principal and interest payments are due semi-annually on May 1 and November 1 of each year with an interest rate of 2.45 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on both fire engines is $352,705. The agreement contains a provision that when a default occurs then the City shall pay to the lessor the entire outstanding balance of all progress payments advanced by lessor plus all interim rent due through the commitment termination date. Interest shall accrue on the total amount due hereunder at the Page 84 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 55 Note 7 – Long-Term Liabilities (Continued) lesser of eighteen percent (18 %) per annum or the maximum rate permitted by law from the commitment termination date to the date of actual payment. 2017 I-Bank Financing Lease (direct borrowing) In August 2017, the City entered into an agreement for $4,000,000 with the California Infrastructure and Economic Development Bank (I-Bank) to finance roadway and other right-of-way improvements related to the Redwood Business Park. Principal is paid annually commencing on August 1,2018, and interest payments are made semi-annually on August 1 and February 1 at an interest rate of 3.30 percent. Lease payments are made primarily by the General Fund. The total combined amount of accumulated depreciation on the roadway improvements is $320,000. The funds are secured with collateral of a leased asset located at 300 Seminary Avenue, Ukiah. The note contains a provision that in the event of default, and to terminate the financing lease, the City will surrender the possession of the leased asset. The City may elect not to terminate the lease, and to continue to pay each installment. There contain no acceleration clauses. 2020 Fire Brush Truck Lease (direct borrowing) In February 2020, the City entered into a finance purchase agreement with Umpqua Bank for the purchase of one Skeeter fire brush truck totaling $227,606. Principal and interest payments are due semi-annually on March 1 and September 1 of each year with an interest rate of 2.8 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on this truck is $22,761. The agreement contains a provision that when a default occurs then the City shall pay to the lessor the entire outstanding balance of all progress payments advanced by lessor plus all interim rent due through the commitment termination date. Interest shall accrue on the total amount due hereunder at the lesser of eighteen percent (18%) per annum or the maximum rate permitted by law from the commitment termination date to the date of actual payment. 2020 Self-Contained Breathing Apparatus Lease (direct borrowing) In November 2020, the City entered an equipment lease with Umpqua Bank for the purchase of one self-contained breathing apparatus system totaling $343,762.85. Principal and interest payments are due on June 1 and December 1 of each year with an interest rate of 2.39 percent. Lease payments are made by both the General Fund and the Ukiah Valley Fire District at an even 50 percent split. The agreement contains a provision that when a default occurs then the City shall pay to the lessor the entire outstanding balance of all progress payments advanced by lessor plus all interim rent due through the commitment termination date. Interest shall accrue on the total amount due hereunder at the lesser of eighteen percent (18%) per annum or the maximum rate permitted by law from the commitment termination date to the date of actual payment Series 2020A Lease Revenue Bonds (Community Facilities Improvement Project) Dated December 1, 2020 the original amount of the obligation was $2,530,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $150,000 to $175,000 through year 2040. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2022, with an interest rate ranging from 3.00 percent to 4.00 percent. The Series 2020A Lease Revenue Bonds were issued to reimburse the City for the cost to purchase the Bank of America building, and to pay the costs associated with renovating the new customer service center and roof replacement project for the museum. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or relenting to redeem the bonds or pay debt service with respect thereto. Page 85 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 56 Note 7 – Long-Term Liabilities (Continued) Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project) Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with business-type funds, with the governmental fund’s share being 65 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2022, with an interest rate ranging from 1.37 percent to 3.706 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or reletting to redeem the bonds or pay debt service with respect thereto. Series 2022 Lease Revenue Bonds (Street Projects) Dated March 9, 2022 the original amount of the obligation was $15,350,000 and is secured with a pledge consisting primarily of base rental payments made for the use of all the city’s street. The obligation principal is payable in annual installments beginning April 1, 2023 ranging from $1,245,000 to $1,825,000. Interest on the Bonds are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and bear an interest rate of 4.0 percent. The Series 2022 Lease Revenue Bonds (Street Projects) were issued to finance various street improvement projects. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or reletting to redeem the bonds or pay debt service with respect thereto. Series 2022 Lease Revenue Bonds (Corporation Yard Projects) Dated March 9, 2022 the original amount of the obligation was $14,850,000 and is secured with a pledge consisting primarily of base rental payments made for the use of all the city’s street. The obligation principal is payable in annual installments beginning April 1, 2023 ranging from $235,000 to $815,000. Interest on the Bonds are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and bear an interest rate of 4.0 percent. The Series 2022 Lease Revenue Bonds (Corporation Yard Projects) were issued to finance the renovation of the city’s Corporation Yard facilities. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or reletting to redeem the bonds or pay debt service with respect thereto. Page 86 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 57 Note 7 – Long-Term Liabilities (Continued) The annual debt service of these obligations to maturity are as follows: Debt Service Schedule Governmental Year Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 112,338$ 15,622$ 91,173$ 130,383$ 21,389$ 4,355$ 31,921$ 6,961$ 90,000$ 89,750$ 2024 115,159 12,800 94,182 127,050 21,907 3,837 32,694 6,188 95,000 87,050 2025 118,051 9,908 97,290 123,609 22,437 3,307 33,485 5,397 95,000 84,200 2026 121,016 6,943 100,501 120,053 22,980 2,764 34,295 4,587 100,000 80,400 2027 124,055 3,904 103,817 116,381 23,536 2,208 35,125 3,757 105,000 76,400 2028-2032 63,191 789 572,794 522,425 74,083 3,150 129,770 6,318 590,000 315,200 2033-2037 - - 673,753 410,621 - - - - 715,000 188,400 2038-2042 - - 792,506 279,114 - - - - 500,000 40,600 2043-2047 - - 932,190 124,425 - - - - - - 2048-2052 - - 205,309 4,005 - - - - - - Total 653,810$ 49,967$ 3,663,515$ 1,958,066$ 186,332$ 19,621$ 297,290$ 33,208$ 2,290,000$ 962,000$ Due within one year 112,338$ 15,622$ 91,173$ 130,383$ 21,389$ 4,355$ 31,921$ 6,961$ 90,000$ 89,750$ Due after one year 541,473 34,345 3,572,342 1,827,683 164,943 15,266 265,369 26,247 2,200,000 872,250 Total 653,810$ 49,967$ 3,663,515$ 1,958,066$ 186,332$ 19,621$ 297,290$ 33,208$ 2,290,000$ 962,000$ Year Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2023 793,000$ 1,172,301$ 1,245,000$ 651,522$ 235,000$ 604,263$ 2,619,821$ 2,675,157$ 2024 841,750 1,159,843 1,335,000 564,200 280,000 560,063 2,815,692 2,521,031 2025 864,500 1,144,675 1,385,000 510,800 290,000 548,863 2,905,763 2,430,758 2026 897,000 1,127,367 1,440,000 455,400 305,000 537,263 3,020,792 2,334,777 2027 916,500 1,105,489 1,500,000 397,800 315,000 525,063 3,123,033 2,231,002 2028-2032 5,174,000 5,110,400 8,445,000 1,040,000 1,775,000 2,426,313 16,823,838 9,424,595 2033-2037 6,402,500 4,156,790 - - 2,170,000 2,028,263 9,961,253 6,784,074 2038-2042 8,258,250 2,745,810 - - 2,655,000 1,548,563 12,205,756 4,614,087 2043-2047 6,808,750 1,010,012 - - 3,000,000 991,563 10,740,940 2,126,000 2048-2052 1,004,250 57,774 - - 3,825,000 381,063 5,034,559 442,842 Total 31,968,235$ 18,790,461$ 15,350,000$ 3,619,722$ 14,850,000$ 10,151,278$ 69,251,447$ 35,584,323$ Due within one year 793,000$ 1,172,301$ 1,245,000$ 651,522$ 235,000$ 604,263$ 2,619,821$ 2,675,157$ Due after one year 31,175,235 17,618,160 14,105,000 2,968,200 14,615,000 9,547,015 66,631,627 32,909,167 Total 31,968,235$ 18,790,461$ 15,350,000$ 3,619,722$ 14,850,000$ 10,151,278$ 69,251,447$ 35,584,323$ Equipment Lease, Self-Contained Breathing Apparatus (2020) Governmental Activities Series 2022 Lease Revenue Bonds (Street Projects) Series 2022 Lease Revenue Bonds (Corporation Yard Capital Lease, Fire Engines (2017)I-Bank Financing Lease (2017) Total Series 2020A Community Facilities Lease Revenue Bonds Series 2020B CalPERS Taxable Lease Revenue Bonds Capital Lease, Fire Brush Truck (2020) Business-Type Activities 2017 Caltrans Aeronautics Loan – Airport (direct borrowing) Loan issued to the City for the design, purchase, and installation of a 12,000-gallon service aviation gas fuel tank at the Ukiah Municipal Airport. Annual principal and interest payments are made at an annual interest rate of 2.33 percent, are due February each year. Revenues generated by airport operations secure payments. In the event of default, the State may take one or more of the following actions: (i) declare the entire outstanding principal amount of the loan and all accrued interest immediately due and payable; (ii) notify the City that they may be ineligible for future financing under the program. 2016 Water Revenue Refunding Bonds Dated March 1, 2016 the original amount of the obligation was $11,155,000 and is secured with a pledge of net revenues from the City’s Water system. The obligation principal is payable in annual installments beginning September 1, 2016 ranging from $475,000 to $740,000 through September 1, 2035. Interest payments commence September 1, 2016 and are payable semiannually on September 1st and March 1st and pay interest ranging from 2.00 percent to 3.125 percent. The bonds contain a provision that, in an event of default, outstanding amounts may become immediately due. The 2016 Water Revenue Refunding Bonds were issued to refund the 2005 ABAG Bonds (Water Treatment Plant Installment Loan) and the SWRCB Water Treatment Loan. The two debt obligations were used to acquire and construct capital improvements to the City’s water treatment plant. Page 87 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 58 Note 7 – Long-Term Liabilities (Continued) Series 2020 Wastewater Revenue Refunding Obligations (2020 Wastewater Refunding Project) Dated February 24, 2020 the original amount of the obligation was $25,010,000 and is secured with a pledge of net revenues from the City’s wastewater system. Proceeds were used to refund the ABAG 2006 Water & Wastewater Revenue Bonds, Series A. The obligation principal and interest payments at an annual interest rate of 2.42% are payable in annual installments beginning March 1, 2022 ranging from $1,998,772 to $1,999,719 through March 1, 2035. The bonds contain a provision that, in an event of default, outstanding amounts may become immediately due. Lawsuit Settlement Liability In October 2018 the City entered into a settlement agreement as part of the ongoing lawsuit with the Ukiah Valley Sanitation District. As part of the settlement agreement, the City agreed to pay $4,984,310 to the District over a 5-year period. The first payment of $984,310 was made in October 2018, with annual installments of $1,000,000 to be made each year for year four years beginning in October 2020. 2017 SWRCB Recycled Water Loan (direct borrowing) In July 2017, the City entered into an agreement with the California State Water Resource Control Board (SWRCB) to finance the development and construction of a recycled water system. Construction was completed in September 2019. The loan balance as of June 30, 2022 was $16,778,411. Subsequent to fiscal year end June 30, 2022, the last drawdown was made in September 2020. The final total amount funded by the loan, including accrued interest, is $18,224,756. Annual principal and interest payments will be made for a thirty-year term beginning in July 2022 at an interest rate of 1.00 percent. The loan will be repaid with revenues from the Water Enterprise Fund. In the event of a breach of contract, the City will immediately repay any amount equal to the project funds disbursed, accrued interest, penalty assessments and additional payments. Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project) Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with governmental funds, with the business-type fund’s share being 35 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2022, with an interest rate ranging from 1.37 percent to 3.706 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or reletting to redeem the bonds or pay debt service with respect thereto. Page 88 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 59 Note 7 – Long-Term Liabilities (Continued) Series 2022 Lease Revenue Bonds (Utilities Projects) Dated March 9, 2022 the original amount of the obligation was $8,770,000 and is secured with a pledge consisting primarily of base rental payments made for the use of all the city’s street. The obligation principal is payable in annual installments beginning April 1, 2023 ranging from $435,000 to $760,000. Interest on the Bonds are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and bear an interest rate of 4.0 percent. The Series 2022 Lease Revenue Bonds (Corporation Yard Projects) were issued to finance various utility projects. In the event of a default, there is no remedy of acceleration of the total base rental payments due over the term of the lease and neither the Ukiah Public Financing Authority nor the Trustee are empowered to sell or relet the leased facilities and use the proceeds of such sale or reletting to redeem the bonds or pay debt service with respect thereto. Series 2022 Electric Revenue Bonds Dated March 3, 2022 the original amount of the obligation was $9,190,000. The obligation is payable solely from the revenues and from certain other amounts of deposit in funds and accounts. The obligation principal is payable in annual installments beginning March 1, 2024 ranging from $310,000 to $680,000. Interest on the Bonds are payable in annual installments commencing on March 1, 2023, and bear interest rates of 3.0 to 5.0 percent. The Series 2022 Bonds are being issued to (i) finance improvements to the Electric System of the City, and (ii) pay certain costs incurred in connection with the issuance of the Bonds. In the event of default, the Trustee has the right to accelerate the total unpaid principal amount of the unpaid payments under the Installment Sale Agreement, including the Installment Payments. However, due to events outside the control of the City, there is no assurance that the City would have sufficient funds to pay the accelerated payments. The annual debt service of these obligations to maturity are as follows: Debt Service Schedule Business-type Year Ending June 30,2017 SWRCB Recycled Water Loan Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 10,903$ 3,471$ 415,000$ 335,618$ 1,000,000$ 30,000$ 529,536$ 177,132 1,471,000$ 528,008$ 2024 11,157 3,217 435,000 316,444 - - 534,831 171,836 1,507,000 492,192 2025 11,417 2,957 460,000 294,069 - - 540,180 166,488 1,543,000 455,505 2026 11,683 2,691 480,000 270,569 - - 545,581 161,086 1,581,000 417,934 2027 11,956 2,419 505,000 245,943 - - 551,037 155,631 1,620,000 379,444 2028-2032 64,088 7,784 2,935,000 813,969 - - 2,838,952 694,387 8,710,000 1,286,097 2033-2037 27,776 976 2,825,000 178,197 - - 2,983,767 549,572 5,752,000 246,053 2038-2042 - - - - - - 3,135,969 397,370 - - 2043-2047 - - - - - - 3,295,935 237,404 - - 2048-2052 - - - - - - 2,757,393 69,278 - - Total 148,980$ 23,515$ 8,055,000$ 2,454,809$ 1,000,000$ 30,000$ 17,713,180 2,780,183 22,184,000$ 3,805,233$ Due within one year 10,903$ 3,471$ 415,000$ 335,618$ 1,000,000$ 30,000$ 529,536$ 177,132$ 1,471,000$ 528,008$ Due after one year 138,077 20,044 7,640,000 2,119,191 - - 17,183,645 2,603,052 20,713,000 3,277,225 Total 148,980$ 23,515$ 8,055,000$ 2,454,809$ 1,000,000$ 30,000$ 17,713,181 2,780,184 22,184,000$ 3,805,233$ Year Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2023 427,000$ 631,239$ -$ 378,074$ -$ 363,539$ 3,831,633$ 2,447,080$ 2024 453,250 624,531 - 356,300 310,000 388,350 3,228,924 2,352,870 2025 465,500 616,363 - 356,300 330,000 372,850 3,327,263 2,264,532 2026 483,000 607,044 - 356,300 345,000 356,350 3,422,898 2,171,974 2027 493,500 595,264 - 356,300 360,000 339,100 3,517,581 2,074,100 2028-2032 2,786,000 2,751,754 2,360,000 1,600,100 2,070,000 1,410,750 21,635,864 8,564,841 2033-2037 3,447,500 2,238,272 2,885,000 1,071,800 2,590,000 906,850 20,455,491 5,191,720 2038-2042 4,446,750 1,478,513 3,525,000 434,200 3,185,000 311,600 14,292,719 2,621,683 2043-2047 3,666,250 543,852 - - - - 6,962,185 781,256 2048-2052 540,750 31,109 - - - - 3,298,143 100,387 Total 17,201,765$ 10,117,941$ 8,770,000$ 4,909,374$ 9,190,000$ 4,449,389$ 83,972,701$ 28,570,445$ Due within one year 427,000$ 631,239$ -$ 378,074$ -$ 363,539$ 3,831,633$ 2,447,080$ Due after one year 16,774,765 9,486,702 8,770,000 4,531,300 9,190,000 4,085,850 80,141,068 26,123,364 Total 17,201,765$ 10,117,941$ 8,770,000$ 4,909,374$ 9,190,000$ 4,449,389$ 83,972,701$ 28,570,445$ Series 2020 Wastewater Refunding Bonds Series 2022 Electric Revenue Bonds Business-type Activities Series 2020B CalPERS Taxable Lease Revenue Bonds Series 2022 Lease Revenue Bonds (Utilities Projects) Total 2017 CalTrans Aeronautics Loan - Airport 2016 Water Revenue Refunding Bonds Lawsuit settlement liability Page 89 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 60 Note 8 – Landfill Closure and Post Closure Costs State and federal laws and regulations require that the City place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post closure care costs that will be incurred near or after the landfill no longer accepts waste. The recognition of these landfill closure and post closure care costs is based on the amount of landfill used during the year. The estimated liability for landfill closure and post closure care costs has a balance of $19,890,002 (including $1,042,939 for corrective action liability) as of June 30, 2022, which is based on 100.0 percent usage (filled) of the landfill. This estimated total current cost of the landfill closure and post closure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2022, as determined by the last engineering study performed. However, the actual cost of closure and post closure care may change due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by state and federal laws and regulations to make annual contributions to finance closure and post closure care. The City follows these requirements, and at June 30, 2022, held $9,598,388 in cash and receivables designated for these purposes, $9,462,182 of which within its pooled investments. The City has made a pledge of future service revenues for anticipated remaining expected costs, future inflation costs, and any additional costs that might arise from changes in post closure requirements (due to changes in technology or more rigorous environmental regulations, for example). Note 9 - Interfund Transactions and Interfund Borrowing With City Council approval through the budget process, resources may be transferred from one City fund to another. One of the primary purposes of transfers is to provide a subsidy from one fund to another. Transfers may also be used to provide resources from one fund to another for significant capital projects or to accumulate resources for debt service. Transfers between funds during the fiscal year 2022 were as follows: Transfers Out General Fund Streets Capital Improvement Pension Debt Service Fund Non-major Governmental Funds Water Total General fund -$ 3,120,488$ 1,611,878$ 149,799$ -$ 4,882,165$ Streets capital improvement - - 15,080 - - 15,080 General capital projects - - - 965,087 - 965,087 Non-major governmental funds 2,050,814 - 25,853 - - 2,076,667 Water enterprise - - - 300,788 - 300,788 Wastewater enterprise - - - 251,681 293,243 544,924 Internal service - - 797,311 933,172 - 1,730,483 Total 2,050,814$ 3,120,488$ 2,450,122$ 2,600,527$ 293,243$ 10,515,194$ Transfers In Page 90 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 61 Note 9 - Interfund Transactions and Interfund Borrowing (Continued) Significant transfers included $2.1 million transferred to the general fund, notably from the American Recovery Act special revenue fund; $3.1 million from the general fund to the Streets Capital Improvement fund representing Measure Y proceeds committed by the City Council dedicated to specific capital projects; and $2.4 million to the Pension Debt Service fund to make payments for lease revenue bonds issued in 2020. The remaining transfer of funds represent one-time transfers related to special projects. Pursuant to the City’s debt management policy, interfund loans are recorded for the purposes of financing operations, grant activities, or capital projects on a temporary basis. Amounts recorded as due to/from are for the purposes of providing temporary cash flow to funds, most notably between operating periods. Examples of this include cash provided by the General Fund to a grant fund to financing expenditure driven grant activities. When the grantor reimburses the City for those activities, the interfund borrowing is revered, i.e. the General Fund is paid back. This type of transaction is approved and executed by the Finance Director when needed per the City’s debt management policy. Amounts recorded as advances from/to are longer-term interfund borrowing for the purposes of providing cash flow for activities with operational conditions requiring a longer repayment period. This type of transaction is approved and executed by the Finance Director when needed per the City’s debt management policy. Interfund Borrowing and Internal Balances Fund Fund Name Amount Number Fund Name Amount Streets Capital Improvements 49,168$ 100 General Fund 49,168$ General Capital Projects 169,241 100 General Fund 169,241 Riverside Park 66,500 100 General Fund 66,500 Winter Special Events 15,785 100 General Fund 15,785 2106 Gas Tax 213,211 100 General Fund 213,211 1998 Stip Augmentation 3,765 100 General Fund 3,765 Rail Trail 152,618 100 General Fund 152,618 Federal American Rescue Fund 30,000 100 General Fund 30,000 Solid Waste Mitigation Fund 30,000 100 General Fund 30,000 Conference Center Fund 27,500 100 General Fund 27,500 Airport Capital Improvement 420,000 100 General Fund 420,000 Total Due To 1,177,788 Total Due From 1,177,788 Fund Fund Name Amount Number Fund Name Amount Building & Maintenance 640,000 100 General Fund 640,000 Arrc 49,601 100 General Fund 49,601 Winter Special Events 161,805 100 General Fund 161,805 Rail Trail 147,741 100 General Fund 147,741 Parking District #1 54,136 100 General Fund 54,136 Golf 930,200 100 General Fund 930,200 Conference Center Fund 82,202 100 General Fund 82,202 Ambulance Services Fund 449,200 100 General Fund 449,200 Water 647,627 720 Golf 647,627 Street Lighting 313,433 800 Electric 313,433 Total Advances To 3,475,944 Total Advances From 3,475,944 Total Interfund Borrowing 4,653,731$ Total Interfund Borrowing 4,653,731$ Borrowing Fund (Advances From)Lending Fund (Advances To) Borrowing Fund (Due To)Lending Fund (Due From) Page 91 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 62 Note 10 - Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City participates The City is a member of the California Intergovernmental Risk Authority (CIRA), a public entity pool comprised of fifty statewide California charter and associate member cities (formerly the Redwood Empire Municipal Insurance Fund [REMIF], see Note 12 for additional information). CIRA is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of CIRA is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. The City pays an annual premium to CIRA for its workers’ compensation, general liability and property coverage. The City of Ukiah participates in the following three CIRA programs: General Liability Insurance Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Ukiah self- insures for the first $25,000 of each loss and pays 100 percent of all losses incurred under $25,000. The City does not share or pay for losses of other cities under $5,000, depending on the entity’s deductible amount. Participating cities then share in the next $5,000 to $1,000,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. CIRA is a member of Public Risk, Innovation, Solutions, and Management (PRISM), which provides CIRA with an additional $39,000,000 liability insurance coverage over and above CIRA retention level of $1,000,000. Worker’s Compensation Periodic deposits are paid by member cities and are adjusted retrospectively to cover costs. The City of Ukiah is self- insured for the first $50,000 of each loss and pays 100 percent of all losses incurred under $50,000. The City does not share or pay for losses of other cities under $5,000. Property Insurance The City participates in CIRA’s property insurance program. The annual deposits paid by participating member cities are based upon deductibility levels and are not subject to retroactive adjustments. The City of Ukiah has a deductible level of $10,000 for high-risk flood zones and $100,000 for all wildfire and property related claims, and a coverage limit of $600,000,000 declared value. Separate internal service funds are maintained by the City for the City’s deductibles and allocated share of pooled costs noted above. The total cash and investments held in these funds at June 30, 2022, was $383,075. On March 22, 2018, the REMIF Board approved assessment for the following programs to be collected beginning in the 2018/2019 fiscal year: Workers’ Compensation - $6 million to be collected over 6 years. Liability program - $2.5 million to be collected over 5 years. Of those amounts the City of Ukiah was liable for $860,916 and $247,915 to be paid over 6 and 5 years, for the Workers’ Compensation and Liability program, respectively for a total of $1,108,831. Page 92 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 63 Note 10 - Risk Management (Continued) Changes in the Internal Service Funds claims liabilities amounts in fiscal year 2022 and 2021 were as follows: 2022 2021 Balance, beginning of the fiscal year 529,624$ 722,693$ Claims and adjustments - - Claims payments (193,069) (193,069) Balance, end of the fiscal year 336,555$ 529,624$ The amortization of the remaining balance of $336,555 as of June 30, 2022 is detailed in Note 7. In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage. In accordance with the CIRA governing documents, CIRA Board has the authority to levy a cash assessment for any pooled coverage program on the Participating member. CIRA’s overall equity balance was $8.3 million as of June 30, 2021. Risks Management Coverage Amount Coverage Provider Payment Source General Liability Claims: $0-25,000 Self-insured Retention City funds 25,001-40,000,000 PRISM Shared risk pool Workers Compensation Claims: $0-10,000 Self-insured Retention City funds 10,001-750,000 (Non-Safety) 1,000,000 (Safety) Commercial Re-insurance Shared risk pool 1,000,001-20,000,000 Commercial Reinsurance Shared risk pool Property Liability Claims: Claims other than High Risk Flood Claims: $0-100,000 Deductible City funds 100,001-600,000,000 PRISM Shared risk pool High Risk Flood Claims: $0-10,000 Deductible City funds 10,001-100,000,000 PRISM Shared risk pool Page 93 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 64 Note 10 - Risk Management (Continued) The following is a summary of the most recent audited financial statements of REMIF as of and for the fiscal year ended June 30, 2021: REMIF Equity Total assets 42,112,807$ Total deferred outflows of resources 460,905 Total liabilities 33,676,004 To deferred inflow of resources 530,784 Members' equity 8,366,924$ Net operating revenues 32,957,455$ Total operating expenses 27,828,536 Operating income (loss)5,128,919$ CIRA issues a separate Annual Comprehensive financial report, which for June 30, 2022 was not available at the time of publication of the City’s Annual Comprehensive report. Copies of that report may be obtained from CIRA at 2330 East Bidwell Suite 150, Folsom, CA 95630. This area intentionally left blank. Page 94 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 65 Note 11 - Public Employee Retirement Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan), administered by the California Public Employees’ Retirement System (CalPERS). The Plan’s benefit provisions are established by statute. The Plan is included as a pension trust fund in the CalPERS Annual Comprehensive Financial Report, which is available online at www.calpers.ca.gov. The Plan consists of a miscellaneous pool and a safety pool (referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively, including those of the City of Ukiah. The City of Ukiah does not have any rate plans in the miscellaneous risk pool. The City of Ukiah's employer rate plans in the safety risk pool include the Safety Fire plan (Fire), the Safety Police plan (Police), the PEPRA Safety Fire plan (PEPRA Safety Fire) and the PEPRA Safety Police plan (PEPRA Police). Benefits Provided The Plan 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. Classic members and PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after five years of service. The death benefit is the Basic Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. General Information about the Pension Plans - Safety The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows: Employer Rate Plans in the Safety Risk Pool Employer rate plan Fire Police PEPRA Fire PEPRA Police Hire Date Prior to January 01, 2013 Prior to January 01, 2013 On or after January 01, 2013 On or after January 01, 2013 Benefit formula 3.0% @ 55 3.0% @ 50 2.7% @ 57 2.7% @ 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 50 50 Monthly benefits, as of % of eligible compensation 2.4% to 3.0% 3.0% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 8.99% 8.99% 13.75% 13.75% Required employer contribution rates 23.62% 25.59% 13.98% 13.98% Page 95 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 66 Note 11 – Public Employee Retirement Plan (Continued) 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 CalPERS actuary and shall be effective on the July 1 following notice of a change in the rate. Contribution rates for the employer rate plans are determined through the CalPERS’ annual actuarial valuation process. Each employer rate plan’s actuarially determined rate is based on the estimated amount necessary to pay the employer rate plan’s allocated share of the cost of benefits earned by employees during the year, and any unfunded accrued liability. The City of Ukiah is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City of Ukiah’s contributions to the risk pools in the Plan for the year ended June 30, 2022, were as follows: Contributions Miscellaneous Risk Pool $ - Safety Risk Pool 1,096,761 Total contributions $ 1,096,761 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, City of Ukiah reported net pension liabilities for its proportionate shares of the net pension liability of each risk pool as follows: Proportionate Share of Net Pension Liability/(Asset) Miscellaneous Risk Pool $ - Safety Risk Pool (6,129,209) Total net pension liability/(asset) $ (6,129,209) * The proportionate share of the total NPL to each of the enterprise and internal service funds is not being allocated because it is deemed to have an immaterial effect on the financial statements. The City of Ukiah’s net pension liability/(asset) for each risk pool is measured as the proportionate share of each risk pool’s net pension liability. GASB 68 indicates that to the extent different contribution rates are assessed based on separate relationships that constitute the collective net pension liability, the determination of the employer’s proportionate share of the collective net pension liability should be made in a manner that reflects those relationships. The allocation method used by CalPERS to determine each employer’s proportionate share reflects those relationships through the employer rate plans they sponsor within the respective risk pools. An actuarial measurement of the employer’s rate plan liability and asset-related information are used where available, and proportional allocations of individual employer rate plan amounts as of the valuation date are used where not available. Page 96 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 67 Note 11 – Public Employee Retirement Plan (Continued) The City of Ukiah’s proportionate share percentage of the net pension liability/(asset) for each risk pool as of June 30, 2021, measurement date, was calculated as follows: Each risk pool’s total pension liability was computed at the measurement date, June 30, 2021, by applying standard actuarial roll-forward methods to the total pension liability amounts as of the valuation date. The fiduciary net position for each risk pool at the measurement date was determined by CalPERS’ Financial Office. The net pension liability for each risk pool at June 30, 2021, was computed by subtracting the respective risk pool’s fiduciary net position from its total pension liability. The individual employer risk pool’s proportionate share percentage of the total pension liability and fiduciary net position as of June 30, 2021, was calculated by applying City of Ukiah’s proportionate share percentage as of the valuation date (described above) to the respective risk pool’s total pension liability and fiduciary net position as of June 30, 2021, to obtain the total pension liability and fiduciary net position as of June 30, 2021. The fiduciary net position was then subtracted from total pension liability to obtain the net pension liability as of the measurement date. The City of Ukiah’s proportionate share percentage of the net pension liability for each risk pool as of June 30, 2020, and June 30, 2021, was as follows: Safety Risk Pool Proportion at measurement date – June 30, 2020 0.293539% Proportion at measurement date – June 30, 2021 (0.174647)% (0.468186)% This area intentionally left blank. Page 97 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 68 Note 11 – Public Employee Retirement Plan (Continued) For the year ended June 30, 2022, the City of Ukiah recognized pension expense of $3,551,524. At June 30, 2022, the City of Ukiah reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between Expected and Actual Experience $1,646,212 - Changes of Assumptions - - Net Difference between Projected and Actual Earnings on Pension Plan Investments - (7,265,195) Adjustment due to Differences in Proportions 90,586 (10,384,234) Differences between Actual and Required Contributions 8,178,569 (196,481) Contributions after Measurement Date 1,096,760 - Total $11,012,127 ($17,845,910) Amounts other than contributions subsequent to the measurement date reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Date June 30: Deferred Outflows/(Inflows) of Resources 2022 ($1,851,561) 2023 (2,017,032) 2024 (2,104,135) 2025 (1,957,815) 2026 Thereafter - - Total (7,930,543) Page 98 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 69 Note 11 – Public Employee Retirement Plan (Continued) Actuarial Assumptions The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions: Safety Valuation Date June 30, 2020 Measurement Date June 30, 2021 Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Discount Rate 7.15% Inflation 2.50% Payroll Growth 2.75% Projected Salary Increase (1) Varies by Age & Length of Service Investment Rate of Return (2) 7.00% Mortality Rate Table (3) Derived Using CalPERS’ Membership Data for all Funds (1) Depending on age, service and type of employment (2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation (3) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries 90 percent of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested employer rate plans within the Plan that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested employer rate plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The stress test results are presented in a detailed report, GASB Statements 67 and 68 Crossover Testing Report for Measurement Date June 30, 2021 based on June 30, 2020 Valuations, that can be obtained from the CalPERS website. According to Paragraph 30 of GASB 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. For the CalPERS Plan, the 7.00% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. Page 99 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 70 Note 11 – Public Employee Retirement Plan (Continued) In the December 2016 and April 2017 meetings, the Board voted to lower the funding discount rates used for the PERF. In making its decision, the Board reviewed recommendations from CalPERS team members, external pension and investment consultants, and input from employer and employee stakeholder groups. A lowered funding discount rate for the PERF will be phased in over a three-year period beginning July 1, 2018 for public agencies and school districts. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS considered both short- term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the Plan’s asset classes, expected compound (geometric) returns were calculated over the short-term (first 11 years) and the long-term (60 years) using a building-block approach. Using the expected nominal returns for both short-term and long- term, the present value of benefits was calculated for the Plan. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1-10(a) Real Return Years 11+(b) Fixed Income 28.0% 1.0% 2.62% Liquidity 1.0 0.0 (0.92) Inflation Assets 0.0 0.77 1.81 Private Equity 8.0 6.3 7.23 Real Assets 13.0 3.75 4.93 Public Equity 50.0 4.8 5.98 (a) An expected inflation of 2.0% used for this period. (b) An expected inflation of 2.92% used for this period. Page 100 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 71 Note 11 – Public Employee Retirement Plan (Continued) Sensitivity of the City of Ukiah’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City of Ukiah’s proportionate share of the net pension liability of each risk pool as of the measurement date, calculated using the discount rate, as well as what the City of Ukiah’s proportionate share of the 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: Discount Rate -1% (6.15%) Current Discount Rate (7.15%) Discount Rate +1% (8.15%) City of Ukiah’s proportionate share of the Safety Risk Pool’s net pension liability $3,453,568 ($6,129,209) ($14,000,279) General Information about the Pension Plans - Miscellaneous Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous Plan, an agent multiple-employer defined benefit pension plan 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 Plan are established by State statute and Local Government 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 – The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding purposes but not accounting purposes), and membership information are listed in the plan’s June 30, 2020 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications. The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows: Page 101 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 72 Note 11 – Public Employee Retirement Plan (Continued) Employees Covered – At June 30, 2022, the following employees were covered by the benefit terms for the Plan: Benefit formula Benefit vesting schedule Retirement age Monthly benefits as a % of eligible compensation Retired employee contribution rates Required employer contribution rates Depending on years of service 8.00%7.25% 12.040%12.040% 55 62 2.7% @ 55 2% @ 62 5 years service Employees Covered by Plan Inactive employees of beneficiaries currently receiving benefits 191 Inactive employees entitled to but not yet receiving benefits 144 Active employees 149 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution. Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Page 102 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 73 Note 11 – Public Employee Retirement Plan (Continued) Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions: Actuarial Assumptions Miscellaneous Valuation date 6/30/2020 Measurement 6/30/2021 Actuarial cost method Entry-age normal Discount rate 7.15% Inflation 2.50% Projected salary increase Varies by age and length of service Mortality (1)Derived from CalPERS membership data for all funds (1) The mortality table used was developed based on CalPERS specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report form December 2017 that can be found on the CalPERS website. Discount Rate – The discount rate used to measure the total pension liability is 7.15 percent. 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. 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. This area intentionally left blank. Page 103 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 74 Note 11 – Public Employee Retirement Plan (Continued) In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed: . Asset Class (1) Assumed Asset Allocation Real Return Years 1-10(2) Real Return Years 11+(3) Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0 1.00 2.62 Inflation Assets - 0.77 1.81 Private Equity 8.0 6.30 7.23 Real Assets 13.0 3.75 4.93 Liquidity 1.0 - (0.92) (1) In the System’s CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period. This area intentionally left blank. Page 104 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 75 Note 11 – Public Employee Retirement Plan (Continued) Changes in Net Pension Liability The changes in the Net Pension Liability for the Miscellaneous Plan recognized over the measurement period. Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a)-(b) Balance at June 30, 2020 99,641,412$ 62,338,630$ 37,302,782$ Beginning of Year Adjustment - - - Adjusted Balance at June 30, 2020 99,641,412$ 62,338,630$ 37,302,782$ Changes Recognized for the Measurement Period: Service Cost 2,093,144 2,093,144 Interest on Total Pension Liability 7,051,270 7,051,270 Changes of Benefit Terms - - Changes of Assumptions - - Differences Between Expected and Actual Experience 447,816 447,816 Net Plan to Plan Resource Movement - - - Contribution - Employer - 34,638,386 (34,638,386) Contribution - Employees - 872,626 (872,626) Net Investment Income - 18,014,124 (18,014,124) Benefits Payments, Including Refunds of Employee Contributions (5,033,299) (5,033,299) - Administrative Expense - (62,272) 62,272 Other Miscellaneous Income (Expense)- - - Net Changes During 2020-2021 4,558,931 48,429,565 (43,870,634) Balance at June 30, 2021 104,200,343$ 110,768,195$ (6,567,852)$ Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate: Discount Rate -1%Discount Rate Discount Rate +1% 6.15%7.15%8.15% Plan's Net Pension Liability/(Asset)6,742,523$ (6,567,852)$ (17,634,718)$ Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Page 105 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 76 Note 11 – Public Employee Retirement Plan (Continued) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense for the Miscellaneous Plan of $1,097,196. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources for the Miscellaneous Plan from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 1,822,048$ -$ Changes of assumptions - - Difference between actual and expected experience 666,817 Net differences between projected and actual earnings on plan investments - (9,273,453) Total 2,488,865$ (9,273,453)$ $1,822,048 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Periods Ended June 30: Deferred Outflows/(Inflows) of Resources 2022 (1,895,469)$ 2023 (2,000,154) 2024 (2,216,246) 2025 (2,494,767) 2026 - Therafter - Payable to the Pension Plan At June 30, 2022, the City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022. Total pension expense for both plans was ($839,443) for Safety and $1,097,196 for Misc. Page 106 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 77 Note 12 – Related Organizations The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. Under the criteria established by GASB-14, the City does not have enough authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations as defined by GASB-14. The names and general functions of these joint powers are as follows: Northern California Power Agency (NCPA) NCPA has 14 members including municipal electric utilities, a port authority, an irrigation district, a public utility district, a transportation district; and one associate member entity. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of the Agency on an elective basis. A Commission comprised of one representative for each member governs the NCPA. The City is currently involved in several hydroelectric, geothermal and other energy related projects as a member of this agreement. The NCPA is financed by contributions from member cities, government grants and debt. The City is committed to provide substantial additional financial support for its portion of the actions and projects of the NCPA. During the year ended June 30, 2022, the City paid $11,529,881 to the NCPA for power supplied by the agency. The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. At June 30, 2022, the City's balance held in the reserve was $7,400,631, of which $320,241 is restricted for NCPA OPS/Security accounts. Due to the nature of the reserve held by NCPA, the reserve is recorded as an asset in the Electric Fund as Investment in NCPA reserve. Mendocino Transit Authority This Agency consists of four Mendocino County cities and the County of Mendocino. The Agency was created to apply for and receive Transportation Development Act, Urban Mass Transportation Act, and other funds as a public transportation operator and to provide public transportation services within Mendocino County. Its activities are primarily financed from fare box revenue and federal and state government grants. A Board of Directors comprised of one member from each city and three members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Redwood Empire Financing Authority (REFA) This is an agreement between seven Northern California cities. The Authority is authorized to acquire, through lease purchase, installment sale agreements, or otherwise such property necessary or convenient for the operation of the member cities. A Commission comprised of one member appointed by each member city administers the Authority. As explained previously, the City has entered into various financing arrangements with REFA. Page 107 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 78 Note 12 – Related Organizations (continued) California Intergovernmental Risk Authority (CIRA) (formerly Redwood Empire Municipal Insurance Fund [REMIF]) A group of Northern California cities participated in an agreement to provide themselves with various levels of liability, property, and worker's compensation insurance. This participation was through a joint powers authority, known as REMIF. As explained previously, the City provides for its general and workers’ compensation insurance needs through REMIF. REMIF merged with another risk management authority, the Public Agency Risk Sharing Authority of California (PARSAC), on July 1, 2021, forming the California Risk Management Authority (CIRA). The merger enhanced coverage for the City while reducing costs to REMIF member agencies. CIRA is governed by a Board of Directors comprised of one representative and one alternate from each member agency. CIRA provides self-funded general liability and workers’ compensation coverage to its 50-member agencies. The liability program covers bodily injury, personal injury, property damage, public officials errors and omission, and wrongful employment practices. Through the liability program, CIRA members are afforded $40 million per occurrence coverage limits through a combination of primary, excess and reinsurance coverage. The workers’ compensation provides coverage for employee injury or illness to statutory limits. CIRA members’ premiums are actuarially determined and allocated to members based on several factors such as payroll, loss experience and administrative expenses. Premiums paid to CIRA were $2,462,489. During the year, the City received no distribution from CIRA’s liability insurance program. Transmission Agency of Northern California (TANC) Members include ten cities, one electric co-op, two irrigation districts, and two public utility districts. The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to one percent (1 percent) of the total. Mendocino Solid Waste Management Authority (MSWMA) This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of: (a) siting, licensing, developing, constructing, maintaining, and operating disposal sites and sanitary landfills and (b) preparing and implementing a solid waste management plan. A Commission comprised of one member from each city and two members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Page 108 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 79 Note 13 - Commitments and Contingencies Grants and Allocations The City receives funding from several federal, state and local grant programs, principally Community Development Block Grants (CDBG). These programs are subject to financial and compliance review by grantors. Expenditures, if any, which may be disallowed by the granting agencies, cannot be determined at this time. The City does not expect the undeterminable amounts of disallowed expenditures, if any, to materially affect the financial statements. Receipt of these federal, state and local grant revenues is not assured in the future. Construction commitments. The government has active construction projects as of June 30, 2022. The projects include street reconstruction and rehabilitation, airport and utility infrastructure improvements. At year end the government’s significant commitments with contractors were as follows: Construction Commitments Project Spent to Date Remaining Commitment Dora Street Utility Improvement 815,390$ 3,634,867$ Dora Street Overlay - 670,787 Ford & Orchard Lift Station - 220,775 Electric Service Center Site Work 2,909,174 186,160 Museum Roof Replacement 318,831 49,516 Encumbrances and related appropriation lapse at the end of the year but are re-appropriated and become part of the subsequent year’s budget because performance under the executory contract is expected in the next year. Encumbrances. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the number of encumbrances expected to be honored upon performance by the vendor in the next year were as follows: Encumbrances Fund(s)Encumbrances General fund 1,336,602$ Streets Capital Improvements 790,510 General Capital Projects 3,943,512 Nonmajor governmental funds 1,208,030 Internal service funds 1,156,937 Landfill 195,404 Electric 1,319,394 Water 6,127,646 Wastewater 2,498,301 Nonmajor enterprise funds 875,114 Total 19,451,450$ Page 109 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 80 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Ukiah that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-04 After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. Enforceable Obligations - Bonds The following is a summary of changes in long-term liabilities for the year ended June 30, 2022: Redevelopment Successor Private Purpose Trust Debt Service Activity Balance Balance Due Within June 30, 2021 Additions Reductions June 30, 2022 One Year Trust Activities: Series 2019A Tax Allocation Bonds 954,570 - 318,567 636,003 309,382 Series 2019B Taxable Tax Allocation Bonds 3,908,899 - 403,198 3,505,701 296,440 Total trust fund debt 4,863,469$ -$ 721,766$ 4,141,703$ 605,821$ Series 2019A Tax Allocation Bonds On December 12, 2019, the Successor Agency issued $1,259,154 in tax allocation bonds to refund the outstanding Series 2007 Tax Allocation Bonds. The bond series is comprised of $1,259,154 in serial bonds maturing December 1, 2023. The serial bonds require annual principal payments ranging from $304,584 to $326,621. The interest rate is 2.160%. Series 2019B Taxable Tax Allocation Bonds On December 12, 2019, the Successor Agency issued $4,236,617 in taxable tax allocation bonds to refund the outstanding Series 2011A and 2011B Tax Allocation Bonds. The bond series is comprised of $4,236,617 in serial bonds maturing on December 1, 2028. The serial bonds require annual principal payments ranging from $327,718 to $748,446. The interest rate is 2.960%. Page 110 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 81 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency (continued) Future debt service for Fiduciary Activities at June 30, 2022, is as follows: Redevelopment Successor Agency Year Ending June 30, Principal Interest Principal Interest Principal Interest 2023 309,382 10,506 296,440 100,234 605,821 110,740 2024 326,621 3,529 374,509 89,451 701,130 92,980 2025 - - 717,252 73,293 717,252 73,293 2026 - - 748,446 51,601 748,446 51,601 2027 - - 558,294 32,261 558,294 32,261 2028-2032 - - 810,760 24,043 810,760 24,043 Total 636,003$ 14,035$ 3,505,701$ 370,883$ 4,141,703$ 384,918$ Due within one year 309,382$ 10,506$ 296,440$ 100,234$ 605,821$ 110,740$ Due after one year 326,621 3,529 3,209,261 270,649 3,535,882 274,178 Total 636,003$ 14,035$ 3,505,701$ 370,883$ 4,141,703$ 384,918$ Series 2019A Tax Allocation Bonds Series 2019B Taxable Tax Allocation Bonds Total This area intentionally left blank. Page 111 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 82 Note 15 – New Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future: GASB 96 – Subscription-Based Information Technology Arrangements: The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. Note 16 – Service Contracts The City has entered into several agreements to provide services to the citizens of the City and surrounding areas. The general purpose and description of these contract agreements are as follows: Joint Venture for Valley-Wide Fire Protection Services The City has entered into a joint powers agreement with the Ukiah Valley Fire District (“UVFD”) to provide firefighting, emergency medical response and hazardous material response services within the corporate limits of the City. Referred to as the Ukiah Valley Fire Authority (“UVFA”), the City and UVFD committed to sharing total operating costs equally; however, UVFD available financial resources restrained it from contributing its equal share. A de facto, temporary 70/30 split has been maintained by both agencies, as UVFD worked to enhance its revenues. Even at that share, UVFD did not have sufficient revenues. The City compensated for that by paying the difference to UVFD. In fiscal year 2021, that amount was $387,757. For the year ended June 30, 2022, the City ceased making such payments. Total share of operating costs for UVFA were as follows: Ukiah Valley Fire Authority Agency Operating Cost Share Variance Share ($)Share (%)Share ($)Share (%) City of Ukiah 4,462,724$ 70.00%3,187,659$ 50.00%1,275,066$ Ukiah Valley Fire Protection District 1,912,593 30.00%3,187,659 50.00%(1,275,066) Total 6,375,317$ 100.00%6,375,317$ 100.00%-$ Current Target Under the terms of the agreement, entered July 1, 2018, the City provides fulltime and temporary fire personnel and use of City fire engines, rolling stock and related equipment to the UVFD, as well as making City facilities available to the UVFD. Fire personnel will remain employees of the City, and the City will continue to own all the equipment and facilities affected by the agreement. The City will be responsible for day-to-day management and administration. The City will share in the cost for the employment of the Fire Chief, as well as certain fixed and reimbursable costs. Page 112 of 277 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Basic Financial Statements Page | 83 Note 16 – Service Contracts (continued) Golf Course Maintenance and Operations The City has entered into a leasing agreement with Tayman Park Golf Group, Inc. (“Lessee”) to operate, manage, repair and maintain the City’s municipal golf course. The lease includes the 18-hole golf course, clubhouse, and shared usage of City equipment. The Lessee is responsible to provide all services, maintenance, and administration –including setting user fees – for the normal operation of the course. The initial term of the agreement is ten years commencing July 1, 2012, with an option for two (2) additional five (5) year extensions, and cancellable by either party in the event of default. The Lessee must pay to the City rent based on a percentage of gross revenues from course operations and concessions and reimburse the City for personnel and equipment provided by the City. In addition, the Lessee annually must contribute $40,000 to a Capital Improvement Project for the benefit of the golf course. For the year ended June 30, 2022, the City received $40,000 in rents. The City reports activities of the golf course as a nonmajor enterprise fund. The cost and carrying amount of assets lease under this agreement were as follows: Service Agreement - Tayman Park Golf Group, Inc. Schedule of Asset Carrying Costs Accumulated Carrying Cost Depreciation Value Asset Land 965,284$ -$ 965,284$ Land improvements 323,221 308,582 14,639 Infrastructure 340,353 181,501 158,852 Buildings 115,992 96,217 19,775 Total Assets 1,744,850$ 586,300$ 1,158,550$ Solid Waste Collection and Ukiah Transfer Station Agreement The City has granted Ukiah Waste Solutions a franchise for mandatory residential and optional commercial garbage collection and disposal. The City has also contracted with Ukiah Waste Solutions to provide a citywide recycling program. The City acts as billing and collecting agent for the residential accounts of Ukiah Waste Solutions. Amounts held by the City on behalf of the corporation are accounted for in the Custodial funds. Participation Agreement with Ukiah Valley Sanitation District The City has contracted with the Ukiah Valley Sanitation District to provide processing of the District's wastewater. In addition, the City provides other direct maintenance services for the District. District assets held by the City are accounted for in the Custodial funds. Lease Receivable In prior fiscal years, the City entered into land and building lease agreements with third parties to lease land, property and facilities owned by the City. The initial lease terms ranged from 5 to 14 years. The City currently receives monthly payments from both leases of $9,213. As of June 30, 2022, the City’s receivable for lease payments was $365,038. Also, the City has a deferred inflow of resources associated with leases that will be recognized as revenue over the lease terms. As of June 30, 2022, the balance of the deferred inflow of resources was $365,038. Page 113 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 84 Required Supplementary Information (RSI) City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Agent Multiple Employer (Miscellaneous), Last Ten Years Schedule of Changes in Net Pension Liability for the Measurement Periods Ended June 30, Measurement Period 2021 2020 2019 2018 2017 2016 2015 2014 TOTAL PENSION LIABILITY: Service Cost $2,093,144 $1,935,834 $1,842,840 $1,808,418 $1,823,230 $1,572,047 $1,612,003 $1,788,902 Interest on Total Pension Liability 7,051,270 6,746,742 6,435,947 6,053,276 5,794,263 5,696,580 5,564,428 5,416,497 Changes of Benefit Terms 0 0 0 0 0 56,535 0 0 Changes of Assumptions 0 0 0 (544,277)4,693,759 0 (1,318,850)0 Difference Between Expected and Actual Experience 447,816 783,147 2,023,144 845,262 (1,456,928)(1,392,062)(1,280,133)0 Benefit Payments, Including Refunds of Employee Contributions (5,033,299)(4,866,568)(4,656,678)(4,443,388)(4,133,617)(3,981,386)(4,205,497)(3,795,124) Net Change in Total Pension Liability $4,558,931 $4,599,155 $5,645,253 $3,719,291 $6,720,707 $1,951,714 $371,951 $3,410,275 Total Pension Liability – Beginning 99,641,412 95,042,257 89,397,004 85,677,713 78,957,006 77,005,292 76,633,341 73,223,066 Total Pension Liability – Ending (a) $104,200,343 $99,641,412 $95,042,257 $89,397,004 $85,677,713 $78,957,006 $77,005,292 $76,633,341 Contributions – Employer $34,638,386 $3,591,800 $3,241,493 $2,941,163 $2,652,462 $2,391,847 $2,156,759 $2,193,059 Contributions – Employee 872,626 852,263 774,314 727,232 659,895 648,121 634,373 779,732 Net Investment Income 18,014,124 2,998,613 3,744,146 4,534,314 5,421,492 246,475 1,106,699 7,445,055 Benefit Payments, Including Refunds of Employee Contributions (5,033,299)(4,866,568)(4,656,678)(4,443,388)(4,133,617)(3,981,386)(4,205,497)(3,795,124) Net Plan to Plan Resource Movement 0 0 0 (132)0 0 0 0 Administrative Expense (62,272)(84,369)(40,522)(83,002)(71,957)(30,145)(55,697)0 Other Miscellaneous Income/(Expense)1 0 0 132 (157,623)0 0 0 0 Net Change in Fiduciary Net Position $48,429,565 $2,491,739 $3,062,885 $3,518,564 $4,528,275 ($725,088)($363,363)$6,622,722 Plan Fiduciary Net Position – Beginning2 $62,338,630 $59,846,891 $56,784,006 $53,265,442 $48,737,167 $49,462,255 $49,825,618 $43,202,896 Plan Fiduciary Net Position – Ending (b)110,768,195 62,338,630 59,846,891 56,784,006 53,265,442 48,737,167 49,462,255 49,825,618 Plan Net Pension Liability/(Asset) – (a)-(b)($6,567,852)$37,302,782 $35,195,366 $32,612,998 $32,412,271 $30,219,839 $27,543,037 $26,807,723 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 106.30%62.56%62.97%63.52%62.17%61.73%64.23%65.02% Covered Payroll3 $10,947,404 $10,045,842 $9,257,248 $8,821,982 $8,412,838 $7,949,673 $8,008,361 $8,340,257 Plan Net Pension Liability/(Asset) as a Percentage of Covered-Employee Payroll (59.99%)371.33%380.19%369.68%385.27%380.14%343.93%321.43% 1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014- 17. 4 Fiscal year 2015 was the first year of implementation; therefore, only 8 years are shown. Page 114 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 85 Schedule of Plan Contributions for the fiscal years ended June 301, Employer Fiscal Year End 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarially Determined Contribution 2,816,117$ 3,816,642$ 3,591,800$ 3,241,493$ 2,941,163$ 2,652,462$ 2,391,847$ 2,156,759$ 2,193,059$ Contributions in Relation to the Actuarially Determined Contribution2 1,822,048 (34,638,386) (3,591,800) (3,241,493) (2,941,163) (2,652,462) (2,391,847) (2,156,759) (2,193,059) Contribution Deficiency (Excess)-$ (30,821,744)$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll3 10,605,960$ 10,947,404$ 10,045,842$ 9,257,248$ 8,821,982$ 8,412,838$ 7,949,673$ 8,008,361$ 8,340,257$ Contributions as a Percentage of Covered Payroll3 17.18%316.41%35.75%35.02%33.34%31.53%30.09%26.93%26.29% 4 Fiscal year 2015 was the first year of implementation; therefore, only 9 years are shown. 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. Page 115 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 86 City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years Schedule of Changes in Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30, Safety Plan Measurement Date June 30, 2014 Measurement Date June 30, 2015 Measurement Date June 30, 2016 Measurement Date June 30, 2017 Measurement Date June 30, 2018 Measurement Date June 30, 2019 Measurement Date June 30, 2020 Measurement Date June 30, 2021 Plan's Proportion of the PERF C Net Pension Liability/(Asset) 0.185181% 0.180597% 0.176726% 0.173294% 0.177461% 0.177205% 0.179741% (0.113330)% Plan's Proportionate Share of the Net Pension Liability/(Asset) $11,522,849 $12,396,052 $15,292,260 $17,185,970 $17,100,610 $18,158,244 $19,556,573 ($6,129,210) Plan's Covered-Employee Payroll $3,330,571 $3,844,242 $3,434,144 $4,135,089 $4,088,030 $3,928,981 $4,163,203 $4,263,870 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered-Employee Payroll 345.97% 322.46% 445.30% 415.61% 418.31% 462.16% 469.75% (143.75)% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 79.27% 75.31% 71.08% 70.49% 72.29% 72.67% 71.32% 108.61% Notes to Schedule: 1. Changes of benefit terms – There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. 2. Changes in assumptions – No changes to assumptions from year prior. 3. Fiscal Year 2015 was the first year of implementation, therefore only 8 years are shown. Page 116 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 87 City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years (cont.) Schedule of Plan Contributions for the fiscal years ended June 30, Safety Plan CalPERS Fiscal Year 2014-15 CalPERS Fiscal Year 2015-16 CalPERS Fiscal Year 2016-17 CalPERS Fiscal Year 2017-18 CalPERS Fiscal Year 2018-19 CalPERS Fiscal Year 2019-20 CalPERS Fiscal Year 2020-21 CalPERS Fiscal Year 2021 -22 Actuarially Determined Contributions $1,309,930 $1,520,825 $1,575,086 $1,763,563 $1,950,142 $2,177,282 $345,379 $1,096,762 Actual Contributions During the Measurement Period ($1,309,930) ($1,520,825) ($1,575,086) ($1,763,563) ($1,950,142) ($2,177,282) ($15,338,474) ($1,096,762) Contribution Deficiency (Excess) $0 $0 $0 $0 $0 $0 ($14,993,095) $0 Covered-Employee Payroll $3,844,242 $3,434,144 $4,135,089 $4,088,030 $3,928,981 $4,163,203 $4,263,870 $4,436,794 Contributions as a Percentage of Covered- Employee Payroll 34.08% 44.29% 38.09% 43.14% 49.63% 52.30% 359.73% 24.72% Notes to Schedule: Contribution Valuation Date: June 30, 2012 June 30, 201 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 * Fiscal Year 2015 was the first year of implementation, therefore only 8 years are shown. Page 117 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 88 City of Ukiah, California General Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance with Final Budget REVENUES Property tax 3,356,988$ 3,356,988$ 3,520,010$ 163,022$ Sales tax 14,815,047 14,815,047 14,553,285 (261,762) Transient occupancy 1,375,000 1,375,000 1,485,385 110,385 Business license tax 410,000 410,000 508,677 98,677 Other taxes 800 800 888 88 Franchise fees 1,709,601 1,709,601 1,846,595 136,994 Charges for service 2,361,873 2,506,293 3,628,913 1,122,620 Licenses and permits 300,520 300,520 262,422 (38,098) Use of money and property 201,942 201,942 74,168 (127,774) Intergovernmental 2,424,949 3,041,762 2,540,680 (501,082) Fines penalties and forfeitures 35,000 35,000 28,863 (6,137) Interest, rent, and concessions 2,258 2,258 - (2,258) Miscellaneous 162,000 256,000 203,611 (52,389) Total revenues 27,155,978 28,011,211 28,653,497 642,286 EXPENDITURES Current: General government 213,574 270,446 119,274 151,172 Public safety 16,072,021 17,240,002 14,288,432 2,951,570 Housing and community development 1,302,174 1,302,174 1,191,167 111,007 Public works 1,566,377 2,062,003 1,766,370 295,633 Parks, buildings, and grounds 1,518,497 2,107,545 1,971,514 136,031 Recreation and culture 1,856,501 1,968,356 3,301,103 (1,332,747) Economic development and redevelopment 19,301 19,301 62,263 (42,962) Total current 22,548,445 24,969,827 22,700,123 2,269,704 Debt service: Interest 88,181 88,181 88,181 - Principal 58,252 58,252 58,252 - Lease principal 130,469 130,469 130,470 (1) Lease interest 23,233 23,233 23,234 (1) Total debt service 300,135 300,135 300,137 (2) Capital outlay: Public safety 175,000 235,479 118,075 117,404 Public works - 574,454 574,454 - Parks, buildings, and grounds 12,000 36,997 24,997 12,000 Recreation and culture - 94,000 93,934 66 Total capital outlay 187,000 940,930 811,460 129,470 Total expenditures 23,035,580 26,210,892 23,811,720 2,399,172 Excess (deficiency) of revenues over expenditures 4,120,398 1,800,319 4,841,777 3,041,458 OTHER FINANCING SOURCES (USES) Transfers in 3,083,290 3,178,808 2,050,814 (1,127,994) Transfers out (3,641,328) (3,641,328) (4,882,167) (1,240,839) Total other financing sources (uses)(558,038) (462,520) (2,831,353) (2,368,833) Net change in fund balances 3,562,360 1,337,799 2,010,424 672,625 Fund balances - beginning 11,229,529 11,229,529 11,229,529 - Fund balances - ending 14,791,889$ 12,567,328$ 13,239,953$ 672,625$ Budgeted Amounts Page 118 of 277 City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 89 City of Ukiah, California Notes to Required Supplemental Information June 30, 2022 Budgetary Data General Budget Policies The City Council approves the annual budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by Council. Supplemental appropriations, where required during the period, are also approved by the Council. There were several supplemental appropriations required during the year. At fiscal year-end, all operating budget appropriations lapse. Expenditures are monitored at the fund level for all funds with a legally adopted budget. These levels are considered the legal level of control. Department heads are authorized to transfer budgeted amounts within their departments, within the same fund, with the approval of the City Manager. Transfers of appropriations between departments may be made only by authority of the City Manager. Transfers of appropriations between funds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue and capital projects funds, which adopt project- length budgets. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the general, special revenue and similar governmental funds. Encumbrances outstanding at year-end are reported as a committed fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities. Page 119 of 277 City of Ukiah, California Financial Section: Supplementary Information Page | 90 SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES City of Ukiah, California Streets Capital Improvement Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance with Final Budget REVENUES Use of money and property 350$ 350$ -$ (350)$ Intergovernmental 150,000 150,000 102,274 (47,726) Total revenues 150,350 150,350 102,274 (48,076) EXPENDITURES Current: Public works 2,844,383 3,023,776 790,262 2,233,514 Total current 2,844,383 3,023,776 790,262 2,233,514 Debt service: Interest 45,426 45,426 45,427 (1) Principal 30,009 30,009 30,009 - Total debt service 75,435 75,435 75,436 (1) Capital outlay: Public works - 2,019,190 1,802,568 216,622 Total capital outlay - 2,019,190 1,802,568 216,622 Total expenditures 2,919,818 5,118,401 2,668,266 2,450,135 Excess (deficiency) of revenues over expenditures (2,769,468) (4,968,051) (2,565,992) 2,402,059 OTHER FINANCING SOURCES (USES) Transfers in 5,281,328 5,281,328 3,120,488 (2,160,840) Transfers out - - (15,080) (15,080) Total other financing sources (uses)5,281,328 5,281,328 3,105,408 (2,175,920) Net change in fund balances 2,511,860 313,277 539,416 226,139 Fund balances - beginning (555,388) (555,388) (555,388) - Fund balances - ending 1,956,472$ (242,111)$ (15,972)$ 226,139$ Budgeted Amounts Page 120 of 277 City of Ukiah, California Financial Section: Supplementary Information Page | 91 City of Ukiah, California General Capital Projects Schedule of Revenues, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance with Final Budget REVENUES Use of money and property -$ -$ (12,323)$ (12,323)$ Intergovernmental - 366,424 - (366,424) Total revenues - 366,424 (12,323) (378,747) EXPENDITURES Current: Public works - 4,028,321 213,136 3,815,185 Total current - 4,028,321 213,136 3,815,185 Debt service: Issuance costs - - 137,651 (137,651) Total debt service - - 137,651 (137,651) Capital outlay: Public works - 253,393 125,818 127,575 Total capital outlay - 253,393 125,818 127,575 Total expenditures - 4,281,714 476,605 3,805,109 Excess (deficiency) of revenues over expenditures - (3,915,290) (488,928) 3,426,362 OTHER FINANCING SOURCES (USES) Transfers out - - (965,087) (965,087) Issuance of debt - 832,777 17,027,366 16,194,589 Total other financing sources (uses)- 832,777 16,062,279 15,229,502 Net change in fund balances - (3,082,513) 15,573,351 18,655,864 Fund balances - beginning - - - - Fund balances - ending -$ (3,082,513)$ 15,573,351$ 18,655,864$ Budgeted Amounts Page 121 of 277 City of Ukiah, California Financial Section: Supplementary Information Page | 92 City of Ukiah, California Pension Debt Service Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance with Final Budget REVENUES Charges for service 3,526,423$ 3,526,423$ -$ (3,526,423)$ Use of money and property - - (38,424) (38,424) Total revenues 3,526,423 3,526,423 (38,424) (3,564,847) EXPENDITURES Current: General government - - 1,250 (1,250) Total current - - 1,250 (1,250) Debt service: Interest 2,337,011 2,337,011 1,519,425 817,586 Principal 705,000 705,000 458,357 246,643 Total debt service 3,042,011 3,042,011 1,977,782 1,064,229 Total expenditures 3,042,011 3,042,011 1,979,032 1,062,979 Excess (deficiency) of revenues over expenditures 484,412 484,412 (2,017,456) (2,501,868) OTHER FINANCING SOURCES (USES) Transfers in - - 2,450,122 2,450,122 Total other financing sources (uses)- - 2,450,122 2,450,122 Net change in fund balances 484,412 484,412 432,666 (51,746) Fund balances - beginning 3,495,727 3,495,727 3,495,727 - Fund balances - ending 3,980,139$ 3,980,139$ 3,928,393$ (51,746)$ Budgeted Amounts Page 122 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 93 Nonmajor Governmental Funds SPECIAL REVENUE FUNDS Special Recreation Events This fund accounts for resources that collected and used for specific recreational and community entertainment events, functions, and activities. Special Revenue Fund The Special Revenue Fund is used to account for reserve amounts being accumulated for special programs, projects and activities. City Prop 172 Used to account for revenues received from allocation of Prop 172 monies for public safety. Museum Grant Fund The Museum Grant Fund is used to account for resources received for the Grace Hudson Museum provided by grantors or other third- party entities. ARRC General Operating Fund The ARRC General Operating Fund is used to account for resources and operating expenditures in support of the Alex Rorabaugh Center. Downtown Business Improvement The Downtown Business Improvement Fund is used to account for resources accumulated for improvements to the downtown business district, funded by business license fees and transferred to the Ukiah Main Street Program as the administrative agency. LMIHF Housing Asset Fund The Low- and Moderate-Income Housing Asset Fund is used to account for resources associated with program income received from low- and moderate-income housing assets. It contains restricted monies that are the proceeds of properties purchased by the Ukiah Redevelopment Agency (Agency) with affordable housing set-aside funds and were transferred to the City of Ukiah, as the Housing Successor to the former Agency, pursuant to Health and Safety Code Section 34176(a). Winter Special Events The Winter Special Events Fund is used to account for resources and expenditures associated with winter events, such as the ice rink. Advanced Planning Fund to account for special or highly technical planning activities, such as updates or revisions to the general plan or any of its elements. Gas Tax Fund The Gas Tax (HUTA) Fund is used to account for resources received from highway user taxes (HUTA) and special street funding from the state. Page 123 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 94 Signalization Fund The Signalization Fund is used to account for resources and activities associated with traffic signalization in the City of Ukiah pursuant to Government Code Section 66000 et. seq. 1998 STIP Augmentation Fund to account for street and right-of-way improvements with special conditions. SB 325 Reimbursement Fund The SB 325 Reimbursement Fund is used to account for resources accumulated for improvements to streets and rights-of-way. S.T.P. The Surface Transportation Program Fund is used to account for resources accumulated for street and traffic safety improvements, funded by the Mendocino Council of Governments. Trans-Traffic Congest Relief The Trans-Traffic Congest Relief fund is used to account for resources accumulated for improvements to address traffic congestion in the City of Ukiah. CDBG Program Income The Community Development Block Grant (CDBG) Fund is used to account for resources accumulated and held resulting from current and prior Community Development Block Grant activities. HOME Program Income The HOME Program Income Fund is a special revenue fund used to account for resources accumulated and held resulting from current and prior HOME program Grant activities. CASP Certification and Training This fund is to account for resources accumulated and used to train City team members on CASP requirements. Asset Seizure Fund The Asset Seizure fund is used to account for resources accumulated from adjudicated asset seizures in which the City participated. Sup. Law Enforce. Svc. Fd. (SLESF) The Supplemental Law Enforcement Services Fund (SLESF) Fund is used to account for special resources for police, provided by funding through a State of California COPS Grant program. Community-Based Transitional Housing Program (CBTHP) Fund to account for activities funded by resources from the Community-Based Transitional Housing Program. Asset Forfeiture 11470.2 H&S The Asset Forfeiture 11470.2 H&S Fund is used to account for resources accumulated from adjudicated asset seizures in which the City participated. Special Revenue Police The AB 109 Special Revenue Police Fund is used to account for resources available for police activities derived from state subventions. Page 124 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 95 American Rescue This fund is to account for the receipt and use of federal funds appropriated to the City by the federal government under the American Rescue Act of 2022. Transfer Station Fund The Transfer Station Fund is used to account for resources accumulated from the activities of the City's solid waste transfer station. Solid Waste Mitigation Fund This fund is used to account for resources collected and used for cleanup and abatement of public rights-of-way, City facilities, and other facilities in the city resulting from improper solid waste disposal, abandonment, or other deleterious activities. CAPITAL PROJECT FUNDS Equipment Reserve Fund The Equipment Reserve Fund is used to account for resources accumulated for significant governmental capital acquisitions related to vehicles and equipment. Special Projects Reserve The Special Projects Reserve Fund is used to account for resources accumulated for governmental special projects. General Capital Projects Used to account for bond proceeds and other resources for street and rights-of-way projects. Park Development Fees Fund The Park Development Fees Fund is used to account for resources being collected for the development or enhancement of parklands in the City of Ukiah. Anton Stadium Fund The Anton Stadium Fund is used to account for resources accumulated for improvements to the stadium. Observatory Park Fund The Observatory Park Fund is used to account for resources accumulated for improvements to the park. Playground & Park Amenities The Playground & Park Amenities Fund is used to account for resources accumulated for improvements to City playgrounds and other similar park amenities. Swimming Pool Fund The Swimming Pool Fund is used to account for resources accumulated for improvements to the City-owned pool. Riverside Park Fund The Riverside Park Fund is used to account for resources accumulated for improvements to the park. Skate Park Fund The Skate Park Fund is used to account for resources accumulated for improvements to the park. Softball Complex Fund The Softball Complex Fund is used to account for resources accumulated for improvements to the complex. Page 125 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 96 Rail Trail Fund To account for activities related to and resources supporting the City’s Rail Trail project. DEBT SERVICE FUNDS Debt Service Reserve LBR 2022 This fund is used to account for resources accumulated for debt service of the lease revenue bonds issued in 2022. PERMANENT FUNDS Riparian Corridor Enhancement Permanent funds are those in which the principal resources accounted for in the fund cannot be spent; rather, the proceeds of earnings on those principal amounts may be used to support activities and programs of the City. This fund accounts for resources and activities related to mitigating development impacts to riparian areas near the Redwood Business Park. Page 126 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 97 THIS PAGE INTENTIONALLY LEFT BLANK Page 127 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 98 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds June 30, 2022 Special Recreation Events Special Revenue Prop 172 Museum Grant ARRC Downtown Business Improvement LMIHF Housing Asset ASSETS Cash and investments 45,117$ 14,216$ 152,704$ 281$ 16,870$ 3,912$ 1,900,385$ Restricted cash and investments - - - - - - 8,980 Accounts receivable - - 28,763 - - - - Notes receivable - - - - - - 1,490,765 Interest receivable - 4 43 - 5 - 536 Grants and subventions receivable - - - - - - - Inventories and prepaids - - 19,441 - - - - Land held for resale - - - - - - 2,435,114 Total assets 45,117$ 14,220$ 200,951$ 281$ 16,875$ 3,912$ 5,835,780$ LIABILITIES Accounts payable -$ -$ -$ -$ 4,248$ 3,912$ -$ Accrued payroll liabilities - - - - 544 - - Due to other funds - - - - - - - Advance from other funds - - - - 49,601 - - Total liabilities - - - - 54,393 3,912 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - - 90,704 Total deferred inflows of resources - - - - - - 90,704 Total liabilities and deferred inflows of resources - - - - 54,393 3,912 90,704 FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - - - - - Restricted: By the State of CA - - - - - - - Capital projects - - - - - - - CDBG activities - - - - - - - Certifications and training - - - - - - - Debt service reserve - - - - - - - Housing activities - - - - - - 5,745,076 Project reserve - 14,220 - 281 - - - Public safety - - 200,951 - - - - Riparian corridor management - - - - - - - Special recreation events 45,117 - - - - - - Streets and rights-of-way - - - - - - - Committed: Park development - - - - - - - Planning activities - - - - - - - Solid waste management - - - - - - - Assigned: Capital projects - - - - - - - Equipment reserve - - - - - - - Project reserve - - - - - - - Unassigned - - - - (37,518) - - Total fund balances (deficits)45,117 14,220 200,951 281 (37,518) - 5,745,076 Total liabilities and fund balances (deficits)45,117$ 14,220$ 200,951$ 281$ 16,875$ 3,912$ 5,835,780$ (continued) Special Revenue Page 128 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 99 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds (cont.) June 30, 2022 Winter Special Events Advanced Planning Highway User Tax (Gas Tax)Signalization 1998 STIP Augmentation SB325 Reimbursement S.T.P. ASSETS Cash and investments 21$ 329,345$ 5,305$ 375,727$ 3,780$ 96,004$ 187,293$ Restricted cash and investments - - - - - - - Accounts receivable - - 89,361 - - - - Notes receivable - - - - - - - Interest receivable - 92 - 106 1 28 53 Grants and subventions receivable - 48,517 - - - - - Inventories and prepaids - - - - - - - Land held for resale - - - - - - - Total assets 21$ 377,954$ 94,666$ 375,833$ 3,781$ 96,032$ 187,346$ LIABILITIES Accounts payable -$ 49,072$ -$ -$ -$ -$ 175$ Accrued payroll liabilities - - - - - - - Due to other funds 15,785 - 213,211 - 3,765 - - Advance from other funds 161,805 - - - - - - Total liabilities 177,590 49,072 213,211 - 3,765 - 175 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - 48,517 - - - - - Total deferred inflows of resources - 48,517 - - - - - Total liabilities and deferred inflows of resources 177,590 97,589 213,211 - 3,765 - 175 FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - - - - - Restricted: By the State of CA - - - - 16 - - Capital projects - - - - - - - CDBG activities - - - - - - - Certifications and training - - - - - - - Debt service reserve - - - - - - - Housing activities - - - - - - - Project reserve - - - - - - - Public safety - - - - - - - Riparian corridor management - - - - - - - Special recreation events - - - - - - - Streets and rights-of-way - - - 375,833 - 96,032 187,171 Committed: Park development - - - - - - - Planning activities - 280,365 - - - - - Solid waste management - - - - - - - Assigned: Capital projects - - - - - - - Equipment reserve - - - - - - - Project reserve - - - - - - - Unassigned (177,569) - (118,545) - - - - Total fund balances (deficits)(177,569) 280,365 (118,545) 375,833 16 96,032 187,171 Total liabilities and fund balances (deficits)21$ 377,954$ 94,666$ 375,833$ 3,781$ 96,032$ 187,346$ (continued) Special Revenue Page 129 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 100 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds (cont.) June 30, 2022 Trans-Traffic Congest Relief CDBG Program Income Home Program Income CASP Certification and Training Asset Seizure Sup.Law Enforce.Svc.Fd(Slesf) Community-Based Transitional Housing ASSETS Cash and investments 117$ 56,910$ 164,786$ 51,596$ 88,791$ 219,389$ 263,520$ Restricted cash and investments - - - - - - - Accounts receivable - 10,372 547,070 - 133 - - Notes receivable - 294,902 8,373,570 - - - - Interest receivable 1 51 48 15 25 63 74 Grants and subventions receivable - 76,961 - - - - - Inventories and prepaids - - - - - - - Land held for resale - - - - - - - Total assets 118$ 439,196$ 9,085,474$ 51,611$ 88,949$ 219,452$ 263,594$ LIABILITIES Accounts payable -$ 6,660$ 462,493$ -$ -$ -$ -$ Accrued payroll liabilities - - - - - 4,814 9,419 Due to other funds - - - - - - - Advance from other funds - - - - - - - Total liabilities - 6,660 462,493 - - 4,814 9,419 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - 27,389 1,094,096 - - - - Total deferred inflows of resources - 27,389 1,094,096 - - - - Total liabilities and deferred inflows of resources - 34,049 1,556,589 - - 4,814 9,419 FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - - - - - Restricted: By the State of CA 118 - - - - - - Capital projects - - - - - - - CDBG activities - 405,147 - - - - - Certifications and training - - - 51,611 - - - Debt service reserve - - - - - - - Housing activities - - 7,528,885 - - - - Project reserve - - - - - - - Public safety - - - - 88,949 214,638 254,175 Riparian corridor management - - - - - - - Special recreation events - - - - - - - Streets and rights-of-way - - - - - - - Committed: Park development - - - - - - - Planning activities - - - - - - - Solid waste management - - - - - - - Assigned: Capital projects - - - - - - - Equipment reserve - - - - - - - Project reserve - - - - - - - Unassigned - - - - - - - Total fund balances (deficits)118 405,147 7,528,885 51,611 88,949 214,638 254,175 Total liabilities and fund balances (deficits)118$ 439,196$ 9,085,474$ 51,611$ 88,949$ 219,452$ 263,594$ (continued) Special Revenue Page 130 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 101 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds (cont.) June 30, 2022 Asset Forfeiture 11470.2 H&S F Special Revenue - Police American Rescue Fund Transfer Station Solid Waste Mitigation Fund Equipment Reserve Special Projects Reserve ASSETS Cash and investments 60,878$ 745$ 548$ 391,023$ 560$ 374,923$ 872,856$ Restricted cash and investments - - - - - - - Accounts receivable - - - 95,385 8,723 - - Notes receivable - - - - - - - Interest receivable 17 36 508 111 - 106 248 Grants and subventions receivable - - - - - - - Inventories and prepaids - - - - - - - Land held for resale - - - - - - - Total assets 60,895$ 781$ 1,056$ 486,519$ 9,283$ 375,029$ 873,104$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ -$ -$ Accrued payroll liabilities - - - - - - - Due to other funds - - 30,000 - 30,000 - - Advance from other funds - - - - - - - Total liabilities - - 30,000 - 30,000 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - - - Total deferred inflows of resources - - - - - - - Total liabilities and deferred inflows of resources - - 30,000 - 30,000 - - FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - - - - - Restricted: By the State of CA - - - - - - - Capital projects - - - - - - - CDBG activities - - - - - - - Certifications and training - - - - - - - Debt service reserve - - - - - - - Housing activities - - - - - - - Project reserve - - - - - - - Public safety 60,895 781 - - - - - Riparian corridor management - - - - - - - Special recreation events - - - - - - - Streets and rights-of-way - - - - - - - Committed: Park development - - - - - - - Planning activities - - - - - - - Solid waste management - - - 486,519 - - - Assigned: Capital projects - - - - - - - Equipment reserve - - - - - 375,029 - Project reserve - - - - - - 873,104 Unassigned - - (28,944) - (20,717) - - Total fund balances (deficits)60,895 781 (28,944) 486,519 (20,717) 375,029 873,104 Total liabilities and fund balances (deficits)60,895$ 781$ 1,056$ 486,519$ 9,283$ 375,029$ 873,104$ (continued) Special Revenue Capital Projects Page 131 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 102 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds (cont.) June 30, 2022 Park Development Fees Anton Stadium Observatory Park Playground & Park Amenities Swimming Pool Riverside Park Skate Park ASSETS Cash and investments 35,637$ 11,340$ 2,444$ 2,647$ 584$ 28,379$ 11,734$ Restricted cash and investments - - - - - - - Accounts receivable 1,000 - - - - - - Notes receivable - - - - - - - Interest receivable 10 3 1 1 - 8 3 Grants and subventions receivable - - - - - 60,774 - Inventories and prepaids - - - - - - - Land held for resale - - - - - - - Total assets 36,647$ 11,343$ 2,445$ 2,648$ 584$ 89,161$ 11,737$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ 2,559$ -$ Accrued payroll liabilities - - - - - - - Due to other funds - - - - - 66,500 - Advance from other funds - - - - - - - Total liabilities - - - - - 69,059 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - 60,774 - Total deferred inflows of resources - - - - - 60,774 - Total liabilities and deferred inflows of resources - - - - - 129,833 - FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - - - - - Restricted: By the State of CA - - - - - - - Capital projects - - - - 584 - - CDBG activities - - - - - - - Certifications and training - - - - - - - Debt service reserve - - - - - - - Housing activities - - - - - - - Project reserve - - - - - - - Public safety - - - - - - - Riparian corridor management - - - - - - - Special recreation events - - - - - - - Streets and rights-of-way - - - - - - - Committed: Park development 36,647 - - - - - - Planning activities - - - - - - - Solid waste management - - - - - - - Assigned: Capital projects - 11,343 2,445 2,648 - - 11,737 Equipment reserve - - - - - - - Project reserve - - - - - - - Unassigned - - - - - (40,672) - Total fund balances (deficits)36,647 11,343 2,445 2,648 584 (40,672) 11,737 Total liabilities and fund balances (deficits)36,647$ 11,343$ 2,445$ 2,648$ 584$ 89,161$ 11,737$ (continued) Capital Projects Page 132 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 103 City of Ukiah, California Combining Balance Sheet Nonmajor Governmental Funds (cont.) June 30, 2022 Debt Service Permanent Softball Complex Rail Trail DEBT SERVICE RESERVE 2022 LRB Riparian Corridor Enhancement Total Nonmajor Governmental Funds ASSETS Cash and investments 6,749$ 1$ 2,450,728$ 144,309$ 8,372,154$ Restricted cash and investments - - - - 8,980 Accounts receivable - - - - 780,807 Notes receivable - - - - 10,159,237 Interest receivable 2 - - 41 2,240 Grants and subventions receivable - 307,076 - - 493,328 Inventories and prepaids - - - - 19,441 Land held for resale - - - - 2,435,114 Total assets 6,751$ 307,077$ 2,450,728$ 144,350$ 22,271,301$ LIABILITIES Accounts payable -$ 28,360$ -$ -$ 557,479$ Accrued payroll liabilities - - - - 14,777 Due to other funds - 152,618 - - 511,879 Advance from other funds - 147,741 - - 359,147 Total liabilities - 328,719 - - 1,443,282 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - 307,076 - - 1,628,556 Total deferred inflows of resources - 307,076 - - 1,628,556 Total liabilities and deferred inflows of resources - 635,795 - - 3,071,838 FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - - 137,576 137,576 Restricted: By the State of CA - - - - 134 Capital projects - - - - 584 CDBG activities - - - - 405,147 Certifications and training - - - - 51,611 Debt service reserve - - 2,450,728 - 2,450,728 Housing activities - - - - 13,273,961 Project reserve - - - - 14,501 Public safety - - - - 820,389 Riparian corridor management - - - 6,774 6,774 Special recreation events - - - - 45,117 Streets and rights-of-way - - - - 659,036 Committed: Park development - - - - 36,647 Planning activities - - - - 280,365 Solid waste management - - - - 486,519 Assigned: Capital projects 6,751 - - - 34,924 Equipment reserve - - - - 375,029 Project reserve - - - - 873,104 Unassigned - (328,718) - - (752,683) Total fund balances (deficits)6,751 (328,718) 2,450,728 144,350 19,199,463 Total liabilities and fund balances (deficits)6,751$ 307,077$ 2,450,728$ 144,350$ 22,271,301$ Capital Projects Page 133 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 104 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds Year Ended June 30, 2022 Special Recreation Events Special Revenue Prop 172 Museum Grant ARRC Downtown Business Improvement LMIHF Housing Asset REVENUES Business license tax -$ -$ -$ -$ -$ 24,976$ -$ Charges for service 5,352 - - - - - - Use of money and property - (160) (2,280) (3) 57,903 - 20,563 Intergovernmental - - 164,245 - - - - Interest, rent, and concessions - - - - - - - Miscellaneous - - - - 20,004 - - Program income 39,915 - - - - - - Payments to City for services provided - - - - - - - Total revenues 45,267 (160) 161,965 (3) 77,907 24,976 20,563 EXPENDITURES Current: General government - - - - - - - Public safety - - 37,062 - - - - Housing and community development - - - - - - - Public works - - - - - - - Parks, buildings, and grounds - - - - - - - Recreation and culture 150 - - - 77,061 - - Economic development and redevelopment - - - - - 22,010 - Debt service: Interest - - 7,715 - - - - Capital outlay: Public safety - - 30,834 - - - - Public works - - - - - - - Recreation and culture - - - - - - - Total expenditures 150 - 75,611 - 77,061 22,010 - Excess (deficiency) of revenues over expenditures 45,117 (160) 86,354 (3) 846 2,966 20,563 OTHER FINANCING SOURCES (USES) Transfers in - - - - - 13,450 - Transfers out - - - - - - - Total other financing sources (uses)- - - - - 13,450 - Net change in fund balances 45,117 (160) 86,354 (3) 846 16,416 20,563 Fund balances - beginning - 14,380 114,597 284 (38,364) (16,416) 5,724,513 Fund balances - ending 45,117$ 14,220$ 200,951$ 281$ (37,518)$ -$ 5,745,076$ (continued) Special Revenue Page 134 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 105 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (cont.) Year Ended June 30, 2022 Winter Special Events Advanced Planning Highway User Tax (Gas Tax)Signalization 1998 STIP Augmentation SB325 Reimbursement S.T.P. REVENUES Business license tax -$ -$ -$ -$ -$ -$ -$ Charges for service 180,078 37,139 - - - - - Use of money and property 3 (4,098) (3) (4,405) (6) (1,132) (2,584) Intergovernmental - 116,055 717,806 - - - 407,602 Interest, rent, and concessions - - - - - - - Miscellaneous - - - - - - - Program income - - - - - - - Payments to City for services provided - - - - - - - Total revenues 180,081 149,096 717,803 (4,405) (6) (1,132) 405,018 EXPENDITURES Current: General government - - - - - - - Public safety - - - - - - - Housing and community development - 165,372 - - - - - Public works - - 11,371 1,066 - 5,815 - Parks, buildings, and grounds - - - - - - - Recreation and culture 345,015 - - - - - - Economic development and redevelopment - - - - - - - Debt service: Interest - - - - - - - Capital outlay: Public safety - - - - - - - Public works - - 318,993 - - - 387,723 Recreation and culture - - - - - - - Total expenditures 345,015 165,372 330,364 1,066 - 5,815 387,723 Excess (deficiency) of revenues over expenditures (164,934) (16,276) 387,439 (5,471) (6) (6,947) 17,295 OTHER FINANCING SOURCES (USES) Transfers in - - - - - - - Transfers out - - (4,000) - - - - Total other financing sources (uses)- - (4,000) - - - - Net change in fund balances (164,934) (16,276) 383,439 (5,471) (6) (6,947) 17,295 Fund balances - beginning (12,635) 296,641 (501,984) 381,304 22 102,979 169,876 Fund balances - ending (177,569)$ 280,365$ (118,545)$ 375,833$ 16$ 96,032$ 187,171$ (continued) Special Revenue Page 135 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 106 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (cont.) Year Ended June 30, 2022 Trans-Traffic Congest Relief CDBG Program Income Home Program Income CASP Certification and Training Asset Seizure Sup.Law Enforce.Svc.Fd(Slesf) Community-Based Transitional Housing REVENUES Business license tax -$ -$ -$ -$ -$ -$ -$ Charges for service - - - - - - - Use of money and property 71 35,890 (18,318) (631) (1,072) (2,762) (2,624) Intergovernmental - 92,095 547,070 6,376 42,367 161,285 - Interest, rent, and concessions - - - - - - - Miscellaneous - - - - - - - Program income - - - - - - - Payments to City for services provided - - - - - - - Total revenues 71 127,985 528,752 5,745 41,295 158,523 (2,624) EXPENDITURES Current: General government - - - - - - - Public safety - - - - 47,067 112,768 194,109 Housing and community development - 183,908 513,070 4,505 - - 2 Public works - - - - - - - Parks, buildings, and grounds - - - - - - - Recreation and culture - - - - - - - Economic development and redevelopment - - - - - - - Debt service: Interest - - - - - - - Capital outlay: Public safety - - - - - - - Public works - - - - - - - Recreation and culture - - - - - - - Total expenditures - 183,908 513,070 4,505 47,067 112,768 194,111 Excess (deficiency) of revenues over expenditures 71 (55,923) 15,682 1,240 (5,772) 45,755 (196,735) OTHER FINANCING SOURCES (USES) Transfers in - - - - - - - Transfers out - - - - - (9,892) (15,961) Total other financing sources (uses)- - - - - (9,892) (15,961) Net change in fund balances 71 (55,923) 15,682 1,240 (5,772) 35,863 (212,696) Fund balances - beginning 47 461,070 7,513,203 50,371 94,721 178,775 466,871 Fund balances - ending 118$ 405,147$ 7,528,885$ 51,611$ 88,949$ 214,638$ 254,175$ (continued) Special Revenue Page 136 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 107 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (cont.) Year Ended June 30, 2022 Asset Forfeiture 11470.2 H&S F Special Revenue - Police American Rescue Fund Transfer Station Solid Waste Mitigation Fund Equipment Reserve Special Projects Reserve REVENUES Business license tax -$ -$ -$ -$ -$ -$ -$ Charges for service - - - - - - - Use of money and property (714) (1,707) (20,770) 409,730 - (4,426) (10,999) Intergovernmental - 125,000 1,913,172 - - - - Interest, rent, and concessions - - - - - - - Miscellaneous - - - - - - - Program income - - - - - - - Payments to City for services provided - - - - 8,723 - - Total revenues (714) 123,293 1,892,402 409,730 8,723 (4,426) (10,999) EXPENDITURES Current: General government - - - - - 1,113 1,500 Public safety 1,062 128 - - - - - Housing and community development - - - - - - - Public works - - - - 29,440 - - Parks, buildings, and grounds - - - - - - - Recreation and culture - - - - - - 3,014 Economic development and redevelopment - - - - - - - Debt service: Interest - - - - - - - Capital outlay: Public safety - - - - - - - Public works - - - - - - - Recreation and culture - - - - - - - Total expenditures 1,062 128 - - 29,440 1,113 4,514 Excess (deficiency) of revenues over expenditures (1,776) 123,165 1,892,402 409,730 (20,717) (5,539) (15,513) OTHER FINANCING SOURCES (USES) Transfers in - - - - - - - Transfers out - (125,000) (1,921,814) - - - - Total other financing sources (uses)- (125,000) (1,921,814) - - - - Net change in fund balances (1,776) (1,835) (29,412) 409,730 (20,717) (5,539) (15,513) Fund balances - beginning 62,671 2,616 468 76,789 - 380,568 888,617 Fund balances - ending 60,895$ 781$ (28,944)$ 486,519$ (20,717)$ 375,029$ 873,104$ (continued) Special Revenue Capital Projects Page 137 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 108 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (cont.) Year Ended June 30, 2022 Park Development Fees Anton Stadium Observatory Park Playground & Park Amenities Swimming Pool Riverside Park Skate Park REVENUES Business license tax -$ -$ -$ -$ -$ -$ -$ Charges for service 2,946 - - - - - - Use of money and property (400) (131) (29) (31) (7) (437) (137) Intergovernmental - - - - - 21,645 - Interest, rent, and concessions - - - - - - - Miscellaneous - - - - - - - Program income - - - - - - - Payments to City for services provided - - - - - - - Total revenues 2,546 (131) (29) (31) (7) 21,208 (137) EXPENDITURES Current: General government - - - - - - - Public safety - - - - - - - Housing and community development - - - - - - - Public works - - - - - - - Parks, buildings, and grounds 8,104 - - 9 2 - 32 Recreation and culture - 32 - - - - - Economic development and redevelopment - - - - - - - Debt service: Interest - - - - - - - Capital outlay: Public safety - - - - - - - Public works - - - - - - - Recreation and culture - - - - - 67,913 - Total expenditures 8,104 32 - 9 2 67,913 32 Excess (deficiency) of revenues over expenditures (5,558) (163) (29) (40) (9) (46,705) (169) OTHER FINANCING SOURCES (USES) Transfers in - - - - 136,349 - - Transfers out - - - - - - - Total other financing sources (uses)- - - - 136,349 - - Net change in fund balances (5,558) (163) (29) (40) 136,340 (46,705) (169) Fund balances - beginning 42,205 11,506 2,474 2,688 (135,756) 6,033 11,906 Fund balances - ending 36,647$ 11,343$ 2,445$ 2,648$ 584$ (40,672)$ 11,737$ (continued) Capital Projects Page 138 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 109 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (cont.) Year Ended June 30, 2022 Debt Service Permanent Softball Complex Rail Trail Debt Service Reserve 2022 LRB Riparian Corridor Enhancement Total Nonmajor Governmental Funds REVENUES Business license tax -$ -$ -$ -$ 24,976$ Charges for service - - - - 225,515 Use of money and property (79) - - (1,686) 442,529 Intergovernmental - - - - 4,314,718 Interest, rent, and concessions - 445 - - 445 Miscellaneous - - - - 20,004 Program income - - - - 39,915 Payments to City for services provided - - - - 8,723 Total revenues (79) 445 - (1,686) 5,076,825 EXPENDITURES Current: General government - - - - 2,613 Public safety - - - - 392,196 Housing and community development - - - - 866,857 Public works - 307,076 - - 354,768 Parks, buildings, and grounds 17 - - - 8,164 Recreation and culture - - - - 425,272 Economic development and redevelopment - - - - 22,010 Debt service: Interest - - - - 7,715 Capital outlay: Public safety - - - - 30,834 Public works - - - - 706,716 Recreation and culture - - - - 67,913 Total expenditures 17 307,076 - - 2,885,058 Excess (deficiency) of revenues over expenditures (96) (306,631) - (1,686) 2,191,767 OTHER FINANCING SOURCES (USES) Transfers in - - 2,450,728 - 2,600,527 Transfers out - - - - (2,076,667) Total other financing sources (uses)- - 2,450,728 - 523,860 Net change in fund balances (96) (306,631) 2,450,728 (1,686) 2,715,627 Fund balances - beginning 6,847 (22,087) - 146,036 16,483,836 Fund balances - ending 6,751$ (328,718)$ 2,450,728$ 144,350$ 19,199,463$ Capital Projects Page 139 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 110 Governmental Fund Budget Comparisons City of Ukiah, California Special Recreation Events Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - 5,352 5,352 Grants contributions and donations - - - - Use of money and property - - - - Intergovernmental - - - - Miscellaneous - - - - Program income - - 39,915 39,915 Payments to City for services provided - - - - Total revenues - - 45,267 45,267 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - 150 (150) Economic development and redevelopment - - - - Total current - - 150 (150) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - 150 (150) Excess (deficiency) of revenues over expenditures - - 45,117 45,117 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - - 45,117 45,117 Fund balances - beginning - - - - Fund balances - ending -$ -$ 45,117$ 45,117$ Special Recreation Events Page 140 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 111 City of Ukiah, California Special Revenue Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (160) (160) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues - - (160) (160) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - (160) (160) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - - (160) (160) Fund balances - beginning 14,380 14,380 14,380 - Fund balances - ending 14,380$ 14,380$ 14,220$ (160)$ Special Revenue Page 141 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 112 City of Ukiah, California Prop 172 Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 1,000 1,000 (2,280) (3,280) Intergovernmental 42,100 42,100 164,245 122,145 Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 43,100 43,100 161,965 118,865 EXPENDITURES Current: General government - - - - Public safety 15,584 21,479 37,062 (15,583) Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 15,584 21,479 37,062 (15,583) Debt service: Interest 3,858 3,858 7,715 (3,857) Total debt service 3,858 3,858 7,715 (3,857) Capital outlay: Public safety 16,500 16,500 30,834 (14,334) Public works - - - - Total capital outlay 16,500 16,500 30,834 (14,334) Total expenditures 35,942 41,837 75,611 (33,774) Excess (deficiency) of revenues over expenditures 7,158 1,263 86,354 85,091 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (100,000) (100,000) - 100,000 Total other financing sources (uses)(100,000) (100,000) - 100,000 Net change in fund balances (92,842) (98,737) 86,354 185,091 Fund balances - beginning 114,597 114,597 114,597 - Fund balances - ending 21,755$ 15,860$ 200,951$ 185,091$ Prop 172 Page 142 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 113 City of Ukiah, California Museum Grant Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (3) (3) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues - - (3) (3) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - (3) (3) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - - (3) (3) Fund balances - beginning 284 284 284 - Fund balances - ending 284$ 284$ 281$ (3)$ Museum Grant Page 143 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 114 City of Ukiah, California ARRC Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 55,100 55,100 57,903 2,803 Intergovernmental - - - - Miscellaneous 20,000 20,000 20,004 4 Program income - - - - Payments to City for services provided - - - - Total revenues 75,100 75,100 77,907 2,807 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture 75,249 75,249 77,061 (1,812) Economic development and redevelopment - - - - Total current 75,249 75,249 77,061 (1,812) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 75,249 75,249 77,061 (1,812) Excess (deficiency) of revenues over expenditures (149) (149) 846 995 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (149) (149) 846 995 Fund balances - beginning (38,365) (38,365) (38,364) - Fund balances - ending (38,514)$ (38,514)$ (37,518)$ 996$ ARRC Page 144 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 115 City of Ukiah, California Downtown Business Improvement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax 20,864$ 20,864$ 24,976$ 4,112$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - - - Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 20,864 20,864 24,976 4,112 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment 12,050 12,050 22,010 (9,960) Total current 12,050 12,050 22,010 (9,960) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 12,050 12,050 22,010 (9,960) Excess (deficiency) of revenues over expenditures 8,814 8,814 2,966 (5,848) OTHER FINANCING SOURCES (USES) Transfers in - - 13,450 13,450 Transfers out - - - - Total other financing sources (uses)- - 13,450 13,450 Net change in fund balances 8,814 8,814 16,416 7,602 Fund balances - beginning (16,417) (16,417) (16,416) - Fund balances - ending (7,603)$ (7,603)$ - $ 7,603$ Downtown Business Improvement Page 145 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 116 City of Ukiah, California Low-Mod Income Housing Fund (LMIHF) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 98,586 98,586 20,563 (78,023) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 98,586 98,586 20,563 (78,023) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development 531,000 531,000 - 531,000 Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 531,000 531,000 - 531,000 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 531,000 531,000 - 531,000 Excess (deficiency) of revenues over expenditures (432,414) (432,414) 20,563 452,977 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (432,414) (432,414) 20,563 452,977 Fund balances - beginning 5,724,514 5,724,514 5,724,513 - Fund balances - ending 5,292,100$ 5,292,100$ 5,745,076$ 452,976$ LMIHF Housing Asset Page 146 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 117 City of Ukiah, California Winter Special Events Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - 180,078 180,078 - Grants contributions and donations - 50,000 - (50,000) Use of money and property - - 3 3 Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues - 230,078 180,081 (49,997) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - 306,535 345,015 (38,480) Economic development and redevelopment - - - - Total current - 306,535 345,015 (38,480) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - 306,535 345,015 (38,480) Excess (deficiency) of revenues over expenditures - (76,457) (164,934) (88,477) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - (76,457) (164,934) (88,477) Fund balances - beginning (12,636) (12,636) (12,635) - Fund balances - ending (12,636)$ (89,093)$ (177,569)$ (88,476)$ Winter Special Events Page 147 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 118 City of Ukiah, California Advanced Planning Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - 37,139 37,139 Grants contributions and donations - - - - Use of money and property 2,727 2,727 (4,098) (6,825) Intergovernmental 145,000 145,000 116,055 (28,945) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 147,727 147,727 149,096 1,369 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development 68,198 375,678 165,372 210,306 Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 68,198 375,678 165,372 210,306 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 68,198 375,678 165,372 210,306 Excess (deficiency) of revenues over expenditures 79,529 (227,951) (16,276) 211,675 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 79,529 (227,951) (16,276) 211,675 Fund balances - beginning 296,641 296,641 296,641 - Fund balances - ending 376,170$ 68,690$ 280,365$ 211,675$ Advanced Planning Page 148 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 119 City of Ukiah, California Highway User Tax (Gas Tax) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 150 150 (3) (153) Intergovernmental 707,108 707,108 717,806 10,698 Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 707,258 707,258 717,803 10,545 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works 85,859 85,859 11,371 74,488 Recreation and culture - - - - Economic development and redevelopment - - - - Total current 85,859 85,859 11,371 74,488 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - 318,993 318,993 - Total capital outlay - 318,993 318,993 - Total expenditures 85,859 404,852 330,364 74,488 Excess (deficiency) of revenues over expenditures 621,399 302,406 387,439 85,033 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (4,000) (4,000) (4,000) - Total other financing sources (uses)(4,000) (4,000) (4,000) - Net change in fund balances 617,399 298,406 383,439 85,033 Fund balances - beginning (501,984) (501,984) (501,984) - Fund balances - ending 115,415$ (203,578)$ (118,545)$ 85,033$ Highway User Tax (Gas Tax) Page 149 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 120 City of Ukiah, California Signalization Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 5,000 5,000 (4,405) (9,405) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 5,000 5,000 (4,405) (9,405) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works 1,047 1,047 1,066 (19) Recreation and culture - - - - Economic development and redevelopment - - - - Total current 1,047 1,047 1,066 (19) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 1,047 1,047 1,066 (19) Excess (deficiency) of revenues over expenditures 3,953 3,953 (5,471) (9,424) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 3,953 3,953 (5,471) (9,424) Fund balances - beginning 381,304 381,304 381,304 - Fund balances - ending 385,257$ 385,257$ 375,833$ (9,424)$ Signalization Page 150 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 121 City of Ukiah, California 1998 STIP Augmentation Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (6) (6) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues - - (6) (6) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - (6) (6) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - - (6) (6) Fund balances - beginning 23 23 22 - Fund balances - ending 23$ 23$ 16$ (7)$ 1998 STIP Augmentation Page 151 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 122 City of Ukiah, California SB 325 Reimbursement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (1,132) (1,132) Intergovernmental 40,000 40,000 - (40,000) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 40,000 40,000 (1,132) (41,132) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works 45,774 45,774 5,815 39,959 Recreation and culture - - - - Economic development and redevelopment - - - - Total current 45,774 45,774 5,815 39,959 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 45,774 45,774 5,815 39,959 Excess (deficiency) of revenues over expenditures (5,774) (5,774) (6,947) (1,173) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (5,774) (5,774) (6,947) (1,173) Fund balances - beginning 102,978 102,978 102,979 - Fund balances - ending 97,204$ 97,204$ 96,032$ (1,172)$ SB325 Reimbursement Page 152 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 123 City of Ukiah, California S.T.P. Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (2,584) (2,584) Intergovernmental 993,489 993,489 407,602 (585,887) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 993,489 993,489 405,018 (588,471) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works 750,000 750,000 - 750,000 Recreation and culture - - - - Economic development and redevelopment - - - - Total current 750,000 750,000 - 750,000 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - 414,361 387,723 26,638 Total capital outlay - 414,361 387,723 26,638 Total expenditures 750,000 1,164,361 387,723 776,638 Excess (deficiency) of revenues over expenditures 243,489 (170,872) 17,295 188,167 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 243,489 (170,872) 17,295 188,167 Fund balances - beginning 169,875 169,875 169,876 - Fund balances - ending 413,364$ (997)$ 187,171$ 188,168$ S.T.P. Page 153 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 124 City of Ukiah, California Trans-Traffic Congestion Relief Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - 71 71 Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues - - 71 71 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 71 71 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - - 71 71 Fund balances - beginning 47 47 47 - Fund balances - ending 47$ 47$ 118$ 71$ Trans-Traffic Congest Relief Page 154 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 125 City of Ukiah, California CDBG Program Income Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 37,258 37,258 35,890 (1,368) Intergovernmental 1,188,366 1,188,366 92,095 (1,096,271) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 1,225,624 1,225,624 127,985 (1,097,639) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development 994,521 1,134,521 183,908 950,613 Public works - - - - Recreation and culture - - - - Economic development and redevelopment 70,000 83,500 - 83,500 Total current 1,064,521 1,218,021 183,908 1,034,113 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 1,064,521 1,218,021 183,908 1,034,113 Excess (deficiency) of revenues over expenditures 161,103 7,603 (55,923) (63,526) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (120,845) (120,845) - 120,845 Total other financing sources (uses)(120,845) (120,845) - 120,845 Net change in fund balances 40,258 (113,242) (55,923) 57,319 Fund balances - beginning 461,070 461,070 461,070 - Fund balances - ending 501,328$ 347,828$ 405,147$ 57,319$ CDBG Program Income Page 155 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 126 City of Ukiah, California HOME Program Income Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (18,318) (18,318) Intergovernmental 500,000 500,000 547,070 47,070 Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 500,000 500,000 528,752 28,752 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development 604,000 1,066,500 513,070 553,430 Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 604,000 1,066,500 513,070 553,430 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 604,000 1,066,500 513,070 553,430 Excess (deficiency) of revenues over expenditures (104,000) (566,500) 15,682 582,182 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (104,000) (566,500) 15,682 582,182 Fund balances - beginning 7,513,204 7,513,204 7,513,203 - Fund balances - ending 7,409,204$ 6,946,704$ 7,528,885$ 582,181$ Home Program Income Page 156 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 127 City of Ukiah, California CASP Certification and Training Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (631) (631) Intergovernmental 4,600 4,600 6,376 1,776 Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 4,600 4,600 5,745 1,145 EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development 3,000 6,000 4,505 1,495 Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 3,000 6,000 4,505 1,495 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 3,000 6,000 4,505 1,495 Excess (deficiency) of revenues over expenditures 1,600 (1,400) 1,240 2,640 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 1,600 (1,400) 1,240 2,640 Fund balances - beginning 50,371 50,371 50,371 - Fund balances - ending 51,971$ 48,971$ 51,611$ 2,640$ CASP Certification and Training Page 157 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 128 City of Ukiah, California Asset Seizure Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 1,350 1,350 (1,072) (2,422) Intergovernmental 45,000 45,000 42,367 (2,633) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 46,350 46,350 41,295 (5,055) EXPENDITURES Current: General government - - - - Public safety 110,000 129,216 47,067 82,149 Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 110,000 129,216 47,067 82,149 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 110,000 129,216 47,067 82,149 Excess (deficiency) of revenues over expenditures (63,650) (82,866) (5,772) 77,094 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (63,650) (82,866) (5,772) 77,094 Fund balances - beginning 94,720 94,720 94,721 - Fund balances - ending 31,070$ 11,854$ 88,949$ 77,095$ Asset Seizure Page 158 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 129 City of Ukiah, California Sup. Law Enforcement Svc. (SLESF) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 1,500 1,500 (2,762) (4,262) Intergovernmental 140,454 140,454 161,285 20,831 Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 141,954 141,954 158,523 16,569 EXPENDITURES Current: General government - - - - Public safety 130,653 130,653 112,768 17,885 Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 130,653 130,653 112,768 17,885 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 130,653 130,653 112,768 17,885 Excess (deficiency) of revenues over expenditures 11,301 11,301 45,755 34,454 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (9,892) (9,892) Total other financing sources (uses)- - (9,892) (9,892) Net change in fund balances 11,301 11,301 35,863 24,562 Fund balances - beginning 178,774 178,774 178,775 - Fund balances - ending 190,075$ 190,075$ 214,638$ 24,563$ Sup.Law Enforce.Svc.Fd(Slesf) Page 159 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 130 City of Ukiah, California Community-Based Transitional Housing Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 10,000 10,000 (2,624) (12,624) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 10,000 10,000 (2,624) (12,624) EXPENDITURES Current: General government - - - - Public safety 207,559 207,559 194,109 13,450 Housing and community development - - 2 (2) Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 207,559 207,559 194,111 13,448 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 207,559 207,559 194,111 13,448 Excess (deficiency) of revenues over expenditures (197,559) (197,559) (196,735) 824 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (15,961) (15,961) Total other financing sources (uses)- - (15,961) (15,961) Net change in fund balances (197,559) (197,559) (212,696) (15,137) Fund balances - beginning 466,873 466,873 466,871 - Fund balances - ending 269,314$ 269,314$ 254,175$ (15,139)$ Community-Based Transitional Housing Page 160 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 131 City of Ukiah, California Asset Forfeiture 11470.2 H&S Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 900 900 (714) (1,614) Intergovernmental 31,250 31,250 - (31,250) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 32,150 32,150 (714) (32,864) EXPENDITURES Current: General government - - - - Public safety 43,500 47,122 1,062 46,060 Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 43,500 47,122 1,062 46,060 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 43,500 47,122 1,062 46,060 Excess (deficiency) of revenues over expenditures (11,350) (14,972) (1,776) 13,196 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances (11,350) (14,972) (1,776) 13,196 Fund balances - beginning 62,671 62,671 62,671 - Fund balances - ending 51,321$ 47,699$ 60,895$ 13,196$ Asset Forfeiture 11470.2 H&S F Page 161 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 132 City of Ukiah, California Special Revenue - Police Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 600 600 (1,707) (2,307) Intergovernmental 125,000 125,000 125,000 - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 125,600 125,600 123,293 (2,307) EXPENDITURES Current: General government - - - - Public safety 126 126 128 (2) Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current 126 126 128 (2) Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures 126 126 128 (2) Excess (deficiency) of revenues over expenditures 125,474 125,474 123,165 (2,309) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (125,000) (125,000) (125,000) - Total other financing sources (uses)(125,000) (125,000) (125,000) - Net change in fund balances 474 474 (1,835) (2,309) Fund balances - beginning 2,615 2,615 2,616 - Fund balances - ending 3,089$ 3,089$ 781$ (2,308)$ Special Revenue - Police Page 162 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 133 City of Ukiah, California American Rescue Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - (20,770) (20,770) Intergovernmental 2,854,290 2,854,290 1,913,172 (941,118) Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 2,854,290 2,854,290 1,892,402 (961,888) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 2,854,290 2,854,290 1,892,402 (961,888) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (2,854,290) (2,854,290) (1,921,814) 932,476 Total other financing sources (uses)(2,854,290) (2,854,290) (1,921,814) 932,476 Net change in fund balances - - (29,412) (29,412) Fund balances - beginning 468 468 468 - Fund balances - ending 468$ 468$ (28,944)$ (29,412)$ American Rescue Fund Page 163 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 134 City of Ukiah, California Transfer Station Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property 415,000 415,000 409,730 (5,270) Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - - - - Total revenues 415,000 415,000 409,730 (5,270) EXPENDITURES Current: General government - - - - Public safety - - - - Housing and community development - - - - Public works - - - - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - - - - Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 415,000 415,000 409,730 (5,270) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (415,000) (415,000) - 415,000 Total other financing sources (uses)(415,000) (415,000) - 415,000 Net change in fund balances - - 409,730 409,730 Fund balances - beginning 76,789 76,789 76,789 - Fund balances - ending 76,789$ 76,789$ 486,519$ 409,730$ Transfer Station Page 164 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 135 City of Ukiah, California Solid Waste Mitigation Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Business license tax -$ -$ -$ -$ Charges for service - - - - Grants contributions and donations - - - - Use of money and property - - - - Intergovernmental - - - - Miscellaneous - - - - Program income - - - - Payments to City for services provided - 10,000 8,723 (1,277) Total revenues - 10,000 8,723 (1,277) EXPENDITURES Current: General government - 2,000 - 2,000 Public safety - - - - Housing and community development - - - - Public works - 29,440 29,440 - Recreation and culture - - - - Economic development and redevelopment - - - - Total current - 31,440 29,440 2,000 Debt service: Interest - - - - Total debt service - - - - Capital outlay: Public safety - - - - Public works - - - - Total capital outlay - - - - Total expenditures - 31,440 29,440 2,000 Excess (deficiency) of revenues over expenditures - (21,440) (20,717) 723 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances - (21,440) (20,717) 723 Fund balances - beginning - - - - Fund balances - ending -$ (21,440)$ (20,717)$ 723$ Solid Waste Mitigation Fund Page 165 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 136 City of Ukiah, California Equipment Reserve Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 5,221 5,221 (4,426) (9,647) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 5,221 5,221 (4,426) (9,647) EXPENDITURES Current: General government 1,094 1,094 1,113 (19) Public works - - - - Parks, buildings, and grounds - - - - Recreation and culture - - - - Total current 1,094 1,094 1,113 (19) Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 1,094 1,094 1,113 (19) Excess (deficiency) of revenues over expenditures 4,127 4,127 (5,539) (9,666) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 4,127 4,127 (5,539) (9,666) Fund balances - beginning 380,568 380,568 380,568 - Fund balances - ending 384,695$ 384,695$ 375,029$ (9,666)$ Equipment Reserve Page 166 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 137 City of Ukiah, California Special Projects Reserve Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property - - (10,999) (10,999) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues - - (10,999) (10,999) EXPENDITURES Current: General government - - 1,500 (1,500) Public works - - - - Parks, buildings, and grounds - - - - Recreation and culture - 3,014 3,014 - Total current - 3,014 4,514 (1,500) Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures - 3,014 4,514 (1,500) Excess (deficiency) of revenues over expenditures - (3,014) (15,513) (12,499) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (50,000) (50,000) - 50,000 Maintenance and operations - - - - Total other financing sources (uses)(50,000) (50,000) - 50,000 Net change in fund balances (50,000) (53,014) (15,513) 37,501 Fund balances - beginning 888,617 888,617 888,617 - Fund balances - ending 838,617$ 835,603$ 873,104$ 37,501$ Special Projects Reserve Page 167 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 138 City of Ukiah, California Park Development Fees Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ 2,946$ 2,946$ Use of money and property 400 400 (400) (800) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 400 400 2,546 2,146 EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds 250,084 260,084 8,104 251,980 Recreation and culture - - - - Total current 250,084 260,084 8,104 251,980 Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 250,084 260,084 8,104 251,980 Excess (deficiency) of revenues over expenditures (249,684) (259,684) (5,558) 254,126 OTHER FINANCING SOURCES (USES) Transfers in 250,000 250,000 - (250,000) Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)250,000 250,000 - (250,000) Net change in fund balances 316 (9,684) (5,558) 4,126 Fund balances - beginning 42,204 42,204 42,205 - Fund balances - ending 42,520$ 32,520$ 36,647$ 4,127$ Park Development Fees Page 168 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 139 City of Ukiah, California Anton Stadium Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 150 150 (131) (281) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 150 150 (131) (281) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds - - - - Recreation and culture 31 31 32 (1) Total current 31 31 32 (1) Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 31 31 32 (1) Excess (deficiency) of revenues over expenditures 119 119 (163) (282) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 119 119 (163) (282) Fund balances - beginning 11,506 11,506 11,506 - Fund balances - ending 11,625$ 11,625$ 11,343$ (282)$ Anton Stadium Page 169 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 140 City of Ukiah, California Observatory Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 30 30 (29) (59) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 30 30 (29) (59) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds - - - - Recreation and culture - - - - Total current - - - - Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 30 30 (29) (59) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 30 30 (29) (59) Fund balances - beginning 2,474 2,474 2,474 - Fund balances - ending 2,504$ 2,504$ 2,445$ (59)$ Observatory Park Page 170 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 141 City of Ukiah, California Playground & Park Amenities Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 44 44 (31) (75) Intergovernmental 177,000 177,000 - (177,000) Interest, rent, and concessions - - - - Total revenues 177,044 177,044 (31) (177,075) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds 9 9 9 - Recreation and culture 230,000 230,000 - 230,000 Total current 230,009 230,009 9 230,000 Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 230,009 230,009 9 230,000 Excess (deficiency) of revenues over expenditures (52,965) (52,965) (40) 52,925 OTHER FINANCING SOURCES (USES) Transfers in 53,000 53,000 - (53,000) Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)53,000 53,000 - (53,000) Net change in fund balances 35 35 (40) (75) Fund balances - beginning 2,688 2,688 2,688 - Fund balances - ending 2,723$ 2,723$ 2,648$ (75)$ Playground & Park Amenities Page 171 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 142 City of Ukiah, California Swimming Pool Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 10 10 (7) (17) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 10 10 (7) (17) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds 2 2 2 - Recreation and culture - - - - Total current 2 2 2 - Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 2 2 2 - Excess (deficiency) of revenues over expenditures 8 8 (9) (17) OTHER FINANCING SOURCES (USES) Transfers in - - 136,349 136,349 Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - 136,349 136,349 Net change in fund balances 8 8 136,340 136,332 Fund balances - beginning (135,756) (135,756) (135,756) - Fund balances - ending (135,748)$ (135,748)$ 584$ 136,332$ Swimming Pool Page 172 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 143 City of Ukiah, California Riverside Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property - - (437) (437) Intergovernmental 933,214 933,214 21,645 (911,569) Interest, rent, and concessions - - - - Total revenues 933,214 933,214 21,208 (912,006) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds - - - - Recreation and culture - - - - Total current - - - - Capital outlay: Recreation and culture 832,005 968,641 67,913 900,728 Total capital outlay 832,005 968,641 67,913 900,728 Total expenditures 832,005 968,641 67,913 900,728 Excess (deficiency) of revenues over expenditures 101,209 (35,427) (46,705) (11,278) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 101,209 (35,427) (46,705) (11,278) Fund balances - beginning 6,033 6,033 6,033 - Fund balances - ending 107,242$ (29,394)$ (40,672)$ (11,278)$ Riverside Park Page 173 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 144 City of Ukiah, California Skate Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 150 150 (137) (287) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 150 150 (137) (287) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds 31 31 32 (1) Recreation and culture - - - - Total current 31 31 32 (1) Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 31 31 32 (1) Excess (deficiency) of revenues over expenditures 119 119 (169) (288) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 119 119 (169) (288) Fund balances - beginning 11,906 11,906 11,906 - Fund balances - ending 12,025$ 12,025$ 11,737$ (288)$ Skate Park Page 174 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 145 City of Ukiah, California Softball Complex Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property 80 80 (79) (159) Intergovernmental - - - - Interest, rent, and concessions - - - - Total revenues 80 80 (79) (159) EXPENDITURES Current: General government - - - - Public works - - - - Parks, buildings, and grounds 17 17 17 - Recreation and culture - - - - Total current 17 17 17 - Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 17 17 17 - Excess (deficiency) of revenues over expenditures 63 63 (96) (159) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations - - - - Total other financing sources (uses)- - - - Net change in fund balances 63 63 (96) (159) Fund balances - beginning 6,846 6,846 6,847 - Fund balances - ending 6,909$ 6,909$ 6,751$ (158)$ Softball Complex Page 175 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 146 City of Ukiah, California Rail Trail Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Charges for service -$ -$ -$ -$ Use of money and property - - - - Intergovernmental 3,563,212 3,563,212 - (3,563,212) Interest, rent, and concessions - - 445 445 Total revenues 3,563,212 3,563,212 445 (3,562,767) EXPENDITURES Current: General government - - - - Public works 3,563,212 3,563,212 307,076 3,256,136 Parks, buildings, and grounds - - - - Recreation and culture - - - - Total current 3,563,212 3,563,212 307,076 3,256,136 Capital outlay: Recreation and culture - - - - Total capital outlay - - - - Total expenditures 3,563,212 3,563,212 307,076 3,256,136 Excess (deficiency) of revenues over expenditures - - (306,631) (306,631) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Maintenance and operations 7,000 7,000 - (7,000) Total other financing sources (uses)7,000 7,000 - (7,000) Net change in fund balances 7,000 7,000 (306,631) (313,631) Fund balances - beginning (22,087) (22,087) (22,087) - Fund balances - ending (15,087)$ (15,087)$ (328,718)$ (313,631)$ Rail Trail Page 176 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 147 City of Ukiah, California Debt Service Reserve 2022 LRB Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) OTHER FINANCING SOURCES (USES)Transfers in - - 2,450,728 2,450,728 Total other financing sources (uses)- - 2,450,728 2,450,728 Net change in fund balances - - 2,450,728 2,450,728 Fund balances - beginning - - - - Fund balances - ending -$ -$ 2,450,728$ 2,450,728$ Debt Service Reserve 2022 LRB Page 177 of 277 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 148 City of Ukiah, California Riparian Corridor Enhancement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2022 Original Final Actual Variance - Positive (Negative) REVENUES Use of money and property -$ -$ (1,686)$ (1,686)$ Total revenues - - (1,686) (1,686) Excess (deficiency) of revenues over expenditures - - (1,686) (1,686) Net change in fund balances - - (1,686) (1,686) Fund balances - beginning 146,036 146,036 146,036 - Fund balances - ending 146,036$ 146,036$ 144,350$ (1,686)$ Riparian Corridor Enhancement Page 178 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 149 Combining Nonmajor Enterprise funds Parking District #1 The Parking District #1 Fund is used to account for the operating activities of the City's parking district. Ambulance Services The Ambulance Services fund is used to account for resources and activities of the Ukiah Valley Fire Authority in providing ambulatory services. Golf The Golf Fund is issued to account for activities related to the City's municipal golf course, which is managed by a contracted, private vendor. Conference Center The Conference Center Fund is used to account for activities of the Ukiah Valley Conference Center. Airport The Airport Fund is the primary fund used to account for the operating activities of the City's municipal airport. Street Lighting The Street Lighting Fund is used to account for resources accumulated for street light operation, maintenance and capital planning. Page 179 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 150 City of Ukiah, California Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2022 Parking District Ambulance Services Golf Conference Center Airport Street Lighting Total Nonmajor Enterprise Funds ASSETS Current assets: Cash and investments 13,714$ -$ 85,824$ 213$ 140,967$ 1$ 240,719$ Accounts receivable 8,759 77,166 - 37,659 51,663 22,038 197,285 Lease Receivable - - 158,207 - - - 158,207 Interest receivable 4 - 25 - 124 - 153 Grants and subventions receivable - - - - 396,600 - 396,600 Total current assets 22,477 77,166 244,056 37,872 589,354 22,039 992,964 Noncurrent assets: Advances to other funds - - 647,626 - - - 647,626 Net pension asset - - 979 77,038 139,714 - 217,731 Land 183,871 - 965,284 372,750 271,957 - 1,793,862 Construction in progress - - - - 499,965 - 499,965 Infrastructure and network 77,682 - 340,353 - 6,301,252 509,867 7,229,154 Buildings and improvements - - 439,213 2,294,471 1,651,825 - 4,385,509 Machinery equipment and vehicles 33,043 271,447 - - 619,748 - 924,238 Less accumulated depreciation (54,554) (23,775) (586,300) (1,307,849) (2,836,337) (20,179) (4,828,994) Total noncurrent assets 240,042 247,672 1,807,155 1,436,410 6,648,124 489,688 10,869,091 Total assets 262,519 324,838 2,051,211 1,474,282 7,237,478 511,727 11,862,055 DEFERRED OUTFLOWS OF RESOURCES Pension related - - 371 29,193 52,944 - 82,508 Total deferred outflows of resources - - 371 29,193 52,944 - 82,508 Total assets and deferred outflows of resources 262,519 324,838 2,051,582 1,503,475 7,290,422 511,727 11,944,563 LIABILITIES Current liabilities: Accounts payable 4,526 55,855 83,852 16,061 41,013 12,226 213,533 Accrued payroll liabilities - 38,317 1,282 8,595 17,712 - 65,906 Due to other funds - - - 27,500 420,002 - 447,502 Deposits payable - - - 2,162 3,762 - 5,924 Interest payable - - 676 340 12,697 - 13,713 Compensated absences - current - 390 230 1,095 3,072 - 4,787 Long-term obligations - current - - 1,852 932 42,107 - 44,891 Total current liabilities 4,526 94,562 87,892 56,685 540,365 12,226 796,256 Noncurrent liabilities: Advance from other funds 54,136 449,200 930,200 82,202 - 313,433 1,829,171 Installment obligations - - 72,744 36,601 1,363,935 - 1,473,280 Compensated absences - 3,507 2,067 9,869 27,649 - 43,092 Total noncurrent liabilities 54,136 452,707 1,005,011 128,672 1,391,584 313,433 3,345,543 Total liabilities 58,662 547,269 1,092,903 185,357 1,931,949 325,659 4,141,799 DEFERRED INFLOWS OF RESOURCES Pension related - - 1,383 108,774 197,268 - 307,425 Lease related - - 158,207 - - - 158,207 Total deferred inflows of resources - - 159,590 108,774 197,268 - 465,632 Total liabilities and deferred inflows of resources 58,662 547,269 1,252,493 294,131 2,129,217 325,659 4,607,431 NET POSITION Net investment in capital assets 240,042 247,670 1,158,550 1,359,374 6,359,424 489,688 9,854,748 Unrestricted (36,185) (470,101) (359,461) (150,030) (1,198,219) (303,620) (2,517,616) Total net position 203,857$ (222,431)$ 799,089$ 1,209,344$ 5,161,205$ 186,068$ 7,337,132$ Page 180 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 151 City of Ukiah, California Combining Statement of Revenues, expenses, and Changes in Net Position Nonmajor Enterprise Funds Year Ended June 30, 2022 Parking District Ambulance Services Golf Conference Center Airport Street Lighting Total Nonmajor Enterprise Funds OPERATING REVENUES Charges for service 34,880$ 548,130$ -$ 15,939$ 18,827$ 189,163$ 806,939$ Licenses and permits 30,324 - - - - - 30,324 Fines penalties and forfeitures 57,607 - - - - - 57,607 Facility rental - - 40,000 238,269 416,200 - 694,469 Fuel sales - - - - 896,179 - 896,179 Miscellaneous - - - - 2,588 - 2,588 Total operating revenues 122,811 548,130 40,000 254,208 1,333,794 189,163 2,488,106 OPERATING EXPENSES General and administrative 23,145 178,441 26,779 44,221 194,674 20,195 487,455 Maintenance and operations 118,357 739,012 208,482 212,382 495,233 122,605 1,896,071 Fuel - - - - 576,612 - 576,612 Depreciation 6,112 11,888 6,456 45,889 193,138 2,943 266,426 Total operating expenses 147,614 929,341 241,717 302,492 1,459,657 145,743 3,226,564 Operating income (loss)(24,803) (381,211) (201,717) (48,284) (125,863) 43,420 (738,458) NONOPERATING REVENUES (EXPENSES) Property tax 17,057 - - - - - 17,057 Capital contributions - 23,497 - - 45,469 - 68,966 Intergovernmental - - - - 30,000 - 30,000 Interest, rent, and concessions (57) - 114,033 - (4,875) - 109,101 Interest expense and fiscal charges - - (4,221) (2,124) (74,769) - (81,114) Total nonoperating revenues (expenses)17,000 23,497 109,812 (2,124) (4,175) - 144,010 Income (loss) before contributions and transfers (7,803) (357,714) (91,905) (50,408) (130,038) 43,420 (594,448) Change in net position (7,803) (357,714) (91,905) (50,408) (130,038) 43,420 (594,448) Total net position - beginning 211,660 135,283 890,994 1,259,752 5,291,243 142,648 7,931,580 Total net position - ending 203,857$ (222,431)$ 799,089$ 1,209,344$ 5,161,205$ 186,068$ 7,337,132$ Page 181 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 152 City of Ukiah, California Combining Statement of Cash Flows Nonmajor Enterprise Funds Year Ended June 30, 2022 Parking District Ambulance Golf Conference Center Airport Street Lighting Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 139,244$ 470,961$ 40,499$ 226,112$ 1,288,532$ 188,072$ 2,353,420$ Payments to employees - (38,231) (24,854) (148,928) (390,487) - (602,500) Payments to suppliers (122,127) (617,947) (161,263) (56,501) (769,219) (272,946) (2,000,003) Payments for interfund services used (23,145) (178,441) (26,778) (44,220) (194,676) (20,195) (487,455) Other payments - - - - (2,396) - (2,396) Net cash provided (used) by operating activities (6,028) (363,658) (172,396) (23,537) (68,246) (105,069) (738,934) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Principal payments received on loans receivable - - 5,500 - - - 5,500 Cash received (paid) to other funds - 449,200 158,951 25,607 2 127,163 760,923 Property taxes received 17,057 - - - - - 17,057 Proceeds from pension bonds - - (1,070) (539) (18,024) - (19,633) Net cash provided (used) by noncapital financing activities 17,057 449,200 163,381 25,068 (18,022) 127,163 763,847 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital grants and contributions - 23,497 - - 338,148 - 361,645 Interest paid - - (3,545) (1,783) (63,467) - (68,795) Principal paid on capital and related debt - - - - (10,655) - (10,655) Acquisition and construction of capital assets 2 (179,916) - - (35,804) (27,533) (243,251) Net cash provided (used) by capital and related financing activities 2 (156,419) (3,545) (1,783) 228,222 (27,533) 38,944 CASH FLOWS FROM INVESTING ACTIVITIES Interest received (63) 16 24,023 - (5,122) - 18,854 Net cash provided (used) by investing activities (63) 16 24,023 - (5,122) - 18,854 Net increase (decrease) in cash and cash equivalents 10,968 (70,861) 11,463 (252) 136,832 (5,439) 82,711 Balances - beginning of year 2,746 70,861 74,361 465 4,135 5,440 158,008 Balances - end of the year 13,714$ -$ 85,824$ 213$ 140,967$ 1$ 240,719$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income (24,803)$ (381,211)$ (201,717)$ (48,284)$ (125,863)$ 43,420$ (738,458)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 6,112 11,888 6,456 45,889 193,138 2,943 266,426 Changes in assets and liabilities: Decrease (increase) in accounts receivable 16,432 (77,167) (157,707) (28,094) (45,265) (1,091) (292,892) Decrease (increase) in deferred outflows - - 230,383 362,557 1,177,440 - 1,770,380 Increase (decrease) in accounts payable (3,769) 40,619 23,737 10,358 (62,285) (150,341) (141,681) Increase (decrease) in accrued salaries and benefits - 38,317 270 3,432 (2,236) - 39,783 Increase (decrease) in compensated absences - 3,896 276 1,156 2,751 - 8,079 Increase (decrease) in deferrred inflows - - 1,348 108,585 196,674 - 306,607 Increase (decrease) in net pension liability - - (75,442) (479,136) (1,402,600) - (1,957,178) Net cash provided (used) by operating activities (6,028)$ (363,658)$ (172,396)$ (23,537)$ (68,246)$ (105,069)$ (738,934)$ Page 182 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 153 Combining Internal Service Funds City Administrative Services City Administrative Services fund is used to account for all general administrative services provided to the City, including City Council, City Manager’s Office (City Manager, City Clerk, Emergency Management, Economic Development, etc.), Finance (Accounting and Budget), Human Resources, City Attorney, and Treasury management. Worker's Comp The Worker's Compensation Fund is used to account for premiums paid for worker's compensation benefits as required by the State of California. Liability The Liability Fund is used to account for resources needed to meet liability insurance premiums and to allocate those costs to all City functions through its Cost Allocation Plan. Garage The Garage Fund is used to account for shared resources used to operate the City's central garage and corporation yard and to allocate those costs to all City functions through its Cost Allocation Plan. Purchasing The Purchasing Fund is used to account for shared resources used to maintain and implement the City's central procurement system and to allocate those costs to all City functions through its Cost Allocation Plan. Billing and Collection The Billing and Collection Fund is used to account for shared resources used to provide billing and collection service to City functions and other governmental entities and to allocate those costs accordingly through its Cost Allocation Plan. Public Safety Dispatch The Public Safety Dispatch Fund is used to account for shared resources used to provide public safety dispatch services to City departments and other governmental entities and to allocate those costs accordingly through its Cost Allocation Plan. Building & Maintenance The Building & Maintenance Fund is used to account for shared resources used to provide central building and grounds maintenance services to City departments and to allocate those costs accordingly through its Cost Allocation Plan. Information Technology (IT) The IT Fund is used to account for shared resources used to provide information technology services to City departments and to allocate those costs accordingly through its Cost Allocation Plan. Page 183 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 154 City of Ukiah, California Combining Statement of Net Position Internal Service Funds June 30, 2022 City Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total Nonmajor Internal service funds ASSETS Current assets: Cash and investments 401,264$ 360,121$ 415,480$ 63,226$ 61,864$ 545,921$ 189,867$ 455,146$ 82,059$ 2,574,948$ Restricted cash and investments - - - - - - - 16,738,592 - 16,738,592 Accounts receivable 11,679 - - 21,342 - - - - - 33,021 Interest receivable - 100 139 - - - 2 212 - 453 Inventories and prepaids 1,500 - - - - - - - - 1,500 Total current assets 414,443 360,221 415,619 84,568 61,864 545,921 189,869 17,193,950 82,059 19,348,514 Noncurrent assets: Land - - - - - - - 762,562 - 762,562 Construction in progress - - - - - - - 840,701 - 840,701 Buildings and improvements - - - 327,113 - - - 189,483 - 516,596 Machinery equipment and vehicles - - - 203,051 4,769 130,369 242,007 81,206 482,172 1,143,574 Less accumulated depreciation - - - (310,920) (4,769) (130,369) (233,969) (25,597) (286,159) (991,783) Total noncurrent assets - - - 219,244 - - 8,038 1,848,355 196,013 2,271,650 Total assets 414,443 360,221 415,619 303,812 61,864 545,921 197,907 19,042,305 278,072 21,620,164 LIABILITIES Current liabilities: Accounts payable 101,724 - - 7,018 1,721 31,439 2,252 77,018 42,010 263,182 Accrued payroll liabilities 147,429 - - 15,593 28,592 40,072 56,018 23,118 48,425 359,247 Interest payable - - - - - - - 163,864 - 163,864 Compensated absences - current 21,901 - - 3,834 3,656 4,239 5,192 2,948 1,229 42,999 Long-term obligations - current - 143,486 49,583 - - - - 383,047 - 576,116 Total current liabilities 271,054 143,486 49,583 26,445 33,969 75,750 63,462 649,995 91,664 1,405,408 Noncurrent liabilities: Claims payable - 143,486 - - - - - - - 143,486 Advance from other funds - - - - - - - 640,000 - 640,000 Compensated absences 197,105 - - 34,506 32,910 38,155 46,730 26,542 11,057 387,005 Due in more than one year - - - - - - - 18,264,771 - 18,264,771 Total noncurrent liabilities 197,105 143,486 - 34,506 32,910 38,155 46,730 18,931,313 11,057 19,435,262 Total liabilities 468,159 286,972 49,583 60,951 66,879 113,905 110,192 19,581,308 102,721 20,840,670 NET POSITION Net investment in capital assets - - - 219,244 - - 8,037 1,848,356 196,013 2,271,650 Unrestricted (53,716) 73,249 366,036 23,617 (5,015) 432,016 79,678 (2,387,359) (20,662) (1,492,156) Total net position (53,716)$ 73,249$ 366,036$ 242,861$ (5,015)$ 432,016$ 87,715$ (539,003)$ 175,351$ 779,494$ Page 184 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 155 City of Ukiah, California Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds Year Ended June 30, 2022 City Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total Enterprise Funds OPERATING REVENUES Charges for service 5,122,634$ 1,224,555$ 1,128,159$ 590,923$ 636,917$ 1,384,769$ 1,669,567$ 1,177,969$ 1,785,857$ 14,721,350$ Miscellaneous - - - - 1,138 - - - - 1,138 Total operating revenues 5,122,634 1,224,555 1,128,159 590,923 638,055 1,384,769 1,669,567 1,177,969 1,785,857 14,722,488 OPERATING EXPENSES General and administrative 785,470 12,587 112,022 115,041 84,104 233,382 221,440 202,993 201,493 1,968,532 Maintenance and operations 4,109,181 1,429,506 1,232,898 423,751 493,251 1,133,537 1,282,695 702,630 1,439,158 12,246,607 Depreciation - - - 29,109 - - 5,259 12,187 93,893 140,448 Total operating expenses 4,894,651 1,442,093 1,344,920 567,901 577,355 1,366,919 1,509,394 917,810 1,734,544 14,355,587 Operating income (loss)227,983 (217,538) (216,761) 23,022 60,700 17,850 160,173 260,159 51,313 366,901 NONOPERATING REVENUES (EXPENSES) Capital contributions - - - - - - - 50,000 - 50,000 Intergovernmental - - - - - 3,650 - - - 3,650 Interest, rent, and concessions 3,078 (4,593) (7,233) (1) - - (102) (24,377) - (33,228) Miscellaneous - - - - 512 - - - - 512 Interest expense and fiscal charges - - - - - - - (176,439) (224) (176,663) Debt Issuance Costs - - - - - - - (131,565) - (131,565) Total nonoperating revenues (expenses)3,078 (4,593) (7,233) (1) 512 3,650 (102) (282,381) (224) (287,294) Income (loss) before contributions and transfers 231,061 (222,131) (223,994) 23,021 61,212 21,500 160,071 (22,222) 51,089 79,607 Transfers out (337,528) - - (37,393) (65,491) (80,888) (126,027) (987,347) (95,809) (1,730,483) Change in net position (106,467) (222,131) (223,994) (14,372) (4,279) (59,388) 34,044 (1,009,569) (44,720) (1,650,876) Total net position - beginning 52,751 295,380 590,030 257,233 (736) 491,404 53,671 470,566 220,071 2,430,370 Total net position - ending (53,716)$ 73,249$ 366,036$ 242,861$ (5,015)$ 432,016$ 87,715$ (539,003)$ 175,351$ 779,494$ Page 185 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 156 City of Ukiah, California Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2022 City Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 52,064$ 67,659$ -$ 7,364$ 1,270$ 1,180$ -$ 9,086$ -$ 138,623$ Receipts from interfund services provided - 1,224,554 1,128,158 569,582 636,918 1,383,533 1,182,896 1,177,967 1,785,857 9,089,465 Payments to employees (2,660,239) - - (316,046) (453,296) (803,155) (1,170,272) (437,828) (890,268) (6,731,104) Payments to suppliers (1,238,519) (1,679,757) (1,321,360) (108,097) (35,155) (380,152) (88,820) (269,262) (555,584) (5,676,706) Payments for interfund services used 4,337,164 (12,587) (112,022) (115,041) (84,104) (233,382) (221,440) (202,993) (201,493) 3,154,102 Other payments (10,000) - - - - - - - - (10,000) Other operating cash receipts (payments)- - - - - - 486,672 - 926 487,598 Net cash provided (used) by operating activities 480,470 (400,131) (305,224) 37,762 65,633 (31,976) 189,036 276,970 139,438 451,978 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash received (paid) to other funds (337,526) - 1 (37,393) (65,491) 464,157 (126,027) (1,532,393) (95,809) (1,730,481) Grants and contributions - - - - - 3,650 - 50,000 - 53,650 Net cash provided (used) by noncapital financing activities (337,526) - 1 (37,393) (65,491) 467,807 (126,027) (1,482,393) (95,809) (1,676,831) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid - - - - - - - 990,722 (1,282) 989,440 Principal paid on capital and related debt - - - - - - - (90,000) (58,280) (148,280) Proceeds from bonds 14,850,000 14,850,000 Acquisition and construction of capital assets - - - - - - - (178,189) - (178,189) Net cash provided (used) by capital and related financing activities - - - - - - - 15,572,533 (59,562) 15,512,971 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 3,077 (4,691) (7,373) (1) 512 - (105) (24,587) - (33,168) Net cash provided (used) by investing activities 3,077 (4,691) (7,373) (1) 512 - (105) (24,587) - (33,168) Net increase (decrease) in cash and cash equivalents 146,021 (404,822) (312,596) 368 654 435,831 62,904 14,342,523 (15,933) 14,254,950 Balances - beginning of year 255,243 764,943 728,076 62,858 61,210 110,090 126,963 2,851,215 97,992 5,058,590 Balances - end of the year 401,264$ 360,121$ 415,480$ 63,226$ 61,864$ 545,921$ 189,867$ 17,193,738$ 82,059$ 19,313,540$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income 227,983$ (217,538)$ (216,761)$ 23,022$ 60,700$ 17,850$ 160,173$ 260,159$ 51,313$ 366,901$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - - - 29,109 - - 5,260 12,186 93,893 140,448 Changes in assets and liabilities: Decrease (increase) in accounts receivable 52,064 67,658 - (13,977) 132 - - 9,086 926 115,889 Decrease (increase) in prepaids (1,500) - - - - - - - - (1,500) Increase (decrease) in accounts payable (45,666) (106,765) (38,880) (2,494) 192 (10,721) (5,865) (14,611) (2,330) (227,140) Increase (decrease) in accrued salaries and benefits 28,583 - - 1,198 6,361 (34,067) 43,182 6,176 3,608 55,041 Increase (decrease) in compensated absences 219,006 - - 904 (1,752) (5,038) (13,714) 3,974 (7,972) 195,408 Increase (decrease) in claims payable - (143,486) (49,583) - - - - - - (193,069) Net cash provided (used) by operating activities 480,470$ (400,131)$ (305,224)$ 37,762$ 65,633$ (31,976)$ 189,036$ 276,970$ 139,438$ 451,978$ Noncash investing, capital and financing activities Amortization related to long-term debt -$ -$ -$ -$ -$ -$ -$ 58,047$ -$ 58,047$ Page 186 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 157 Combining Fiduciary Funds CUSTODIAL FUNDS Special Deposit Custodial Fund Resources held for outside parties that are not available for spending by the City. General Services Clearing (Accounts Receivable) Fund Resources held on a limited basis act as a clearing fund for utility billing collections. Garbage Billing and Collection Fund Resources held resulting from billing and collections of mandatory residential solid waste collection. Russian River Watershed Association Resources held on behalf of the Russian River Watershed Association, of which the City is a member and acts as its general fiscal agent. Ukiah Valley Fire Protection District The Ukiah Valley Fire District Fund is used to account for the activities of the Ukiah Valley Fire District. The City provides accounting, budget management, and other fiscal and administrative services to the District. Ukiah Valley Sanitation District Resources held for the benefit of the Ukiah Valley Sanitation District resulting from collections from sewer billing and payments to the City for share of operating and debt service costs. Page 187 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 158 City of Ukiah, California Combining Fiduciary Net Position Custodial Funds June 30, 2022 Special Deposit Trust General Service (Accts Recv) Garbage Billing & Collection Russian River Watershed Assoc Ukiah Valley Fire District Ukiah Valley Sanitation District Total Custodial funds ASSETS Cash and investments 577,370$ 12,906$ 389,296$ 255,832$ 100$ 38,735$ 1,274,239$ Accounts receivable 5,565 10,008 338,254 - 25,610 - 379,437 Interest receivable - - - 71 191 - 262 Total assets 582,935 22,914 727,550 255,903 25,901 38,735 1,653,938 LIABILITIES Accounts payable 9,863 93 58,926 95,437 1,945 - 166,264 Accrued payroll liabilities - - - - 26,927 - 26,927 Deposits payable 524,213 - - - - - 524,213 Interest payable - - - - 5,697 - 5,697 Due to other agencies - - 172,893 - - - 172,893 Intergovernmental payable 25,296 - - - - - 25,296 Due to City of Ukiah 23,563 22,821 531,384 - 708,099 - 1,285,867 Total liabilities 582,935 22,914 763,203 95,437 742,668 - 2,207,157 NET POSITION Restricted for: Individuals, Organizations and Other Governments - - (35,653) 160,466 (716,767) 38,735 (553,219) Total net position -$ -$ (35,653)$ 160,466$ (716,767)$ 38,735$ (553,219)$ Page 188 of 277 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 159 City of Ukiah, California Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the Fiscal Year Ended June 30, 2022 Special Deposit Trust General Service (Accts Recv) Garbage Billing & Collection Russian River Watershed Assoc Ukiah Valley Fire District Ukiah Valley Sanitation District Total Custodial funds ADDITIONS Contributions: Taxes and assessments collected for other governments -$ -$ -$ -$ 1,209,186$ -$ 1,209,186$ Service charges collected for other governments - - - - 137,222 529,830 667,052 Service charges collected for other agencies - - 1,413,261 - - - 1,413,261 Intergovernmental - - - - 625,634 - 625,634 Miscellaneous - - - - 1,259 - 1,259 Members - - - 562,294 - - 562,294 Total contributions - - 1,413,261 562,294 1,973,301 529,830 4,478,686 Investment earnings: Interest, rent, and concessions - - - (3,326) (8,349) (16,675) (28,350) Total investment earnings - - - (3,326) (8,349) (16,675) (28,350) Total additions - - 1,413,261 558,968 1,964,952 513,155 4,450,336 DEDUCTIONS General and administrative - - - - 9,460 - 9,460 Maintenance and operations - - 40,873 - 2,141,347 - 2,182,220 Interest expense and fiscal charges - - - - 74,824 - 74,824 Distributions to other governments - - - 467,017 - 491,187 958,204 Payments to other agencies for service charges collected - - 643,940 - - - 643,940 Payments to City for services provided - - 764,101 - 257,809 - 1,021,910 Total deductions - - 1,448,914 467,017 2,483,440 491,187 4,890,558 Net increase (decrease) in fiduciary net position - - (35,653) 91,951 (518,488) 21,968 (440,222) Net Position -- beginning of the year - - - 68,515 (198,279) 16,767 (112,997) Net Position -- end of the year -$ -$ (35,653)$ 160,466$ (716,767)$ 38,735$ (553,219)$ Page 189 of 277 STATISTICAL SECTION Page 190 of 277 STATISTICAL SECTION INDEX This part of the City of Ukiah’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, footnotes, 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's financial performance and well- being have changed over time. Net Position by Component ................................................................................................................................................... 163 Changes in Net Position .......................................................................................................................................................... 164 Fund Balances, Governmental Funds .................................................................................................................................. 166 Changes in Fund Balances, Governmental Funds ............................................................................................................ 167 Revenue Capacity These schedules contain information to help the reader assess the City's ability to generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees and intergovernmental revenue are the City's most significant revenue sources. Tax Revenues by Source, Governmental Funds ................................................................................................................ 168 Property Tax Rates ................................................................................................................................................................... 169 Electric Utility Rates ............................................................................................................................................................... 170 Wastewater Utility Rates ....................................................................................................................................................... 171 Water Utility Rates.................................................................................................................................................................. 172 Top Ten Electric Usage Customers ....................................................................................................................................... 173 Debt Capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Ratio of Outstanding Debt by Type ..................................................................................................................................... 174 Ratio of General Bonded Outstanding Debt ...................................................................................................................... 175 Page 191 of 277 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Demographic and Economic Statistics ................................................................................................................................ 179 Principal Employers ................................................................................................................................................................. 180 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Full-time and Part-time City Employees by Function ..................................................................................................... 181 Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive financial reports for the relevant year. Information was available beginning with the year ended June 30, 2004, for the financial trend schedules. Page 192 of 277 City of Ukiah, California Statistical Section Page | 163 Financial Trends City of Ukiah, California Net Position by Component Last Ten Fiscal Years Fiscal Year Ended June 30, 2022 (Accrual basis of accounting) For Fiscal Year Ended June 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental activities Net investment in capital assets 27,304,019$ 27,139,213$ 27,624,813$ $ 29,088,528 $ 33,668,910 $ 38,289,548 $ 42,321,290 $ 47,339,972 $ 50,915,097 $ 56,905,670 Restricted 3,025,432 6,021,075 12,931,066 12,263,161 11,698,264 12,610,721 12,610,721 10,544,419 15,484,736 15,368,987 Unrestricted 15,461,713 12,110,479 (20,291,488) (20,646,894) (17,337,366) (21,409,323) (18,876,394) (19,796,054) (18,505,530) (14,390,245)Total governmental net position 45,791,164$ 45,270,767$ 20,264,391$ $ 20,704,795 $ 28,029,808 $ 29,490,946 $ 36,055,617 $ 38,088,337 $ 47,894,303 $ 57,884,412 Business-type activities Net investment in capital assets 44,514,348$ 46,693,900$ 50,088,246$ $ 54,756,782 $ 46,328,983 $ 70,965,675 $ 86,114,096 $ 119,060,268 $ 126,053,127 $ 128,557,177 Restricted 2,027,529 2,072,014 2,072,225 2,427,020 - 81,993 123,367 99,829 251,126 320,241 Unrestricted 32,460,639 31,604,793 26,648,008 24,215,129 31,286,562 19,917,540 16,454,313 2,219,045 (7,298,061) (17,969,112) Total business-type net position 79,002,516$ 80,370,707$ 78,808,479$ $ 81,398,931 $ 77,615,545 $ 90,965,208 $ 102,691,776 $ 121,379,142 $ 119,006,192 $ 110,908,306 Primary governmental Net investment in capital assets 71,818,367$ 73,833,113$ 77,713,059$ $ 83,845,310 $ 79,997,893 $ 109,255,223 $ 128,435,386 $ 166,400,240 $ 176,968,224 $ 185,462,847 Restricted 5,052,961 8,093,089 15,003,291 14,690,181 11,698,264 12,692,714 12,734,088 10,644,248 15,735,862 15,689,228 Unrestricted 47,922,352 43,715,272 6,356,520 3,568,235 13,949,197 (1,491,783) (2,422,081) (17,577,009) (25,803,591) (32,359,357) Total primary governmental net position 124,793,680$ 125,641,474$ 99,072,870$ $ 102,103,726 $ 105,645,354 $ 120,456,154 $ 138,747,393 $ 159,467,479 $ 166,900,495 $ 168,792,718 Fiscal Year City of Ukiah Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) Source: Audited Financial Statements – Statement of Net Position Page 193 of 277 City of Ukiah, California Statistical Section Page | 164 City of Ukiah, California Changes in Net Position Last Ten Fiscal Years Fiscal Year Ended June 30, 2022 (Accrual basis of accounting) For Fiscal Year Ended June 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Expenses Governmental activities: General government $ 2,956,583 $ 3,715,968 $ 772,771 $ 142,792 141,713$ $ 1,856,104 $ 2,655,969 $ 99,829 $ 838,727 $ 2,824,700 Public safety 10,514,943 9,867,900 10,563,479 11,081,325 8,887,246 11,794,779 12,167,151 12,812,411 13,659,736 10,238,317 Housing and community development 1,254,265 832,020 348,477 891,644 171,523 1,039,784 2,128,714 2,833,311 1,460,134 2,058,024 Public works 2,109,273 2,290,261 2,847,800 2,555,524 296,934 4,018,082 3,467,503 4,752,062 3,426,376 2,357,684 Parks and recreation 2,481,572 2,540,689 2,829,367 2,757,551 39,796 3,306,839 3,861,576 3,973,413 4,201,399 5,640,841 Economic development and redevelopment - - - - - 273,570 299,397 403,808 290,261 84,274 Interest on long-term debt - - - - - 59,477 176,067 165,210 992,902 1,674,767 Total governmental activities expenses $ 19,316,636 $ 19,246,838 $ 17,361,894 $ 17,428,836 9,537,212$ 22,348,635 24,756,377 25,040,044 24,869,535 24,878,607 Business-type activities: Airport - - - - - 1,532,905 1,360,631 1,528,285 1,857,261 1,541,733 Conference Center - - - - - 369,045 500,305 503,445 (336,910) 306,131 Electric 14,483,083 14,554,884 16,140,229 15,779,225 17,408,177 15,830,736 17,373,419 18,854,227 19,695,234 22,839,554 Golf - - - - - 223,341 213,949 251,078 144,680 247,149 Landfill - - - - - 667,140 2,114,576 4,165,711 969,800 1,417,733 Parking District - - - - - 153,620 128,643 171,705 137,930 148,354 Street Lighting - - - - - 395,694 43,349 147,861 186,765 146,475 Wastewater 8,637,591 8,118,315 8,229,553 8,620,824 10,092,436 10,116,164 10,979,067 11,580,850 9,659,518 8,747,889 Water 3,651,349 3,717,064 3,783,257 3,930,252 5,187,510 4,659,530 4,111,529 6,196,274 8,179,199 7,390,232 Disposal site 413,657 573,478 5,950,554 388,553 565,819 - - - - - Nonmajor activities 2,648,970 2,196,295 2,287,340 2,029,634 2,816,055 - - 11,089 55,894 933,997 Total business-type activities expenses 29,834,650 29,160,036 36,390,933 30,748,488 36,069,997 33,948,175 36,825,468 43,410,525 40,549,371 43,719,247 Total primary government expenses $ 49,151,286 $ 48,406,874 $ 53,752,827 $ 48,177,324 $ 45,607,209 $ 56,296,810 $ 61,581,845 $ 68,450,569 $ 65,418,906 $ 68,597,854 Program revenues Governmental activities: Charges for services General government $ 1,005,296 $ 1,255,815 $ 288,049 $ 258,262 333,458$ 366,171 111,355 234,487 $ 78,607 $ 70,182 Public safety 1,224,421 851,328 221,156 284,562 362,711 567,592 505,451 301,503 326,986 463,486 Housing and community development 456,294 197,003 - - - 454,920 783,575 390,121 573,410 600,754 Public works 368,895 682,559 215,615 339,403 - 28,773 92,923 435,190 542,554 430,712 Parks and recreation 1,072,615 749,548 756,906 716,575 791,257 782,091 786,161 788,687 1,715,541 2,944,741 Economic development and redevelopment - - - - - 256,554 259,897 7,289 250,000 250,000 Operating grants and contributions 1,237,955 1,097,599 1,471,799 2,283,777 1,233,883 3,007,794 2,044,901 4,431,684 7,890,530 4,947,892 Capital grants and contributions 250,992 483,992 889,024 859,772 1,325,091 618,546 1,574,928 76,898 771,125 2,424,991 Total governmental activities program revenues 5,616,468 5,317,844 3,842,549 4,742,351 4,046,400 6,082,441 6,159,191 6,665,859 12,148,753 12,132,758 Business-type activities: Charges for services Airport - - - - - 1,326,141 1,541,327 1,234,045 1,390,195 1,333,795 Conference Center - - - - - 367,504 369,245 274,794 210,000 254,208 Electric 15,140,175 14,993,910 15,243,471 15,076,565 15,971,210 15,875,141 16,193,492 15,581,664 18,141,046 16,576,739 Golf - - - - - 133,370 36,669 40,000 38,500 40,000 Landfill - - - - - 630,477 646,611 703,549 716,223 650,086 Parking District - - - - - 134,689 120,121 114,068 100,679 122,811 Street Lighting - - - - - 191,388 188,814 188,873 183,278 189,163 Wastewater 6,213,481 8,832,757 9,264,399 9,667,659 7,493,383 8,093,392 8,002,895 7,851,031 7,935,941 7,876,513 Water 5,813,699 6,006,675 5,579,127 5,446,778 5,785,553 6,486,959 6,502,379 6,909,764 7,228,258 7,107,835 Disposal site 129,321 132,287 217,999 132,106 362,018 - - Nonmajor activities 2,467,226 1,965,547 2,053,819 1,806,110 1,723,513 - - 14,441 79,891 548,129 Operating grants and contributions 40,717 57,271 - - 210,298 534,619 819,586 2,830,622 759,696 1,572,005 Capital grants and contributions - - 25,175 10,384 2,640,396 2,592,224 12,524,559 24,876,967 556,033 201,152 Total business-type activities program revenues 29,804,619 31,988,447 32,383,990 32,139,602 34,186,371 36,365,904 46,945,698 60,619,818 37,339,740 36,472,436 Total primary government program revenues $ 35,421,087 $ 37,306,291 $ 36,226,539 $ 36,881,953 $ 38,232,771 $ 42,448,345 $ 53,104,889 $ 67,285,677 $ 49,488,493 $ 48,605,194 Net (Expense) Revenue Government activities $ (13,700,168) $ (13,928,994) $ (13,519,345) $ (12,686,485) $ (5,490,812) $ (16,266,194) $ (18,597,186) $ (18,374,185) $ (12,720,782) $ (12,745,849) Business-type activities (30,031) 2,828,411 (4,006,943) 1,391,114 (1,883,626) 2,417,729 10,120,230 17,209,293 (3,209,631) (7,246,811) Total primary government net expense $ (13,730,199) $ (11,100,583) $ (17,526,288) $ (11,295,371) $ (7,374,438) $ (13,848,465) $ (8,476,956) $ (1,164,892) $ (15,930,413) $ (19,992,660) City of Ukiah Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year Page 194 of 277 City of Ukiah, California Statistical Section Page | 165 City of Ukiah, California Changes in Net Position (continued) Last Ten Fiscal Years Fiscal Year Ended June 30, 2022 (Accrual basis of accounting) For Fiscal Year Ended June 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Revenues and Other Changes in Net Position Governmental activities: Property tax $ 1,484,934 $ 1,251,189 $ 3,729,370 $ 3,531,272 1,470,323$ 2,890,291 2,984,192 3,139,960 3,408,846 3,520,010 Sales tax 6,901,284 7,134,537 5,976,938 6,740,622 9,805,225 10,745,095 11,974,379 13,313,206 15,535,021 14,553,285 Licenses, permits and franchises - - - - - 1,653,146 1,781,141 1,742,671 1,815,271 1,846,594 Transient occupancy 828,000 959,570 1,061,823 1,229,814 1,302,336 1,406,417 1,496,473 1,365,477 1,367,852 1,487,139 Business license - - - - - 380,797 303,604 411,997 560,527 533,653 Other taxes 929,173 916,007 2,281,810 1,939,984 2,450,254 249 462 888 1,136 888 Use of money and property - - - - - 708,389 850,711 696,930 266,006 (119,912) Vehicle in-lieu taxes 1,229,156 1,237,181 - - - - - Interest and investment earnings 91,117 93,521 501,217 323,373 404,235 - - Other revenue - - - - - 306,746 181,676 246,319 17,052 280,944 Transfers 871,692 1,816,592 - (473,539) (639,819) (363,796) (410,782) (510,543) (444,963) 633,357 Total governmental activities 12,335,356 13,408,597 13,551,158 13,291,526 14,792,554 17,727,334 19,161,856 20,406,905 22,526,748 22,735,958 Business-type activities: Property tax - - - - - 16,949 17,121 16,815 16,714 17,057 Interest and investment earnings 200,899 356,372 321,824 672,730 468,003 - - Use of money and property - - - - - 247,347 1,166,919 950,715 352,781 (234,775) Other revenue - - - - - - 11,513 22,223 Transfers (584,482) (1,816,592) - 473,539 639,819 363,796 410,782 510,543 444,963 (633,357) Total business-type activities (383,583) (1,460,220) 321,824 1,146,269 1,107,822 628,092 1,606,335 1,478,073 836,681 (851,075) Total primary government $ 11,951,773 $ 11,948,377 $ 13,872,982 $ 14,437,795 $ 15,900,376 $ 18,355,426 $ 20,768,191 $ 21,884,978 $ 23,363,429 $ 21,884,883 Extraordinary items Government activities - - - - - - - - - - Business-type activities - - - - - - - - - - Total Extraordinary Items $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Special items Government activities - - - - - - 6,000,000 Business-type activities - - - - (4,984,310) - - - - - Total Special Items $ - $ - $ - $ - $ (4,984,310) $ - $ 6,000,000 $ - $ - $ - Accounting Change - Accumulative Effect Government activities - - - - - - - - - - Business-type activities (1,179,845) - - - - - - - - - Total Accounting Change - Accumulative Effect $ (1,179,845) $ - $ - $ - $ - $ - $ - $ - $ - $ - Change in Net Position Government activities $ (1,364,812) $ (520,397) $ 31,813 $ 605,041 $ 9,301,742 $ 1,461,140 $ 6,564,670 $ 2,032,720 $ 9,805,966 $ 9,990,109 Business-type activities (1,593,459) 1,368,191 (3,685,119) 2,537,383 (5,760,114) 3,045,821 11,726,565 18,687,366 (2,372,950) (8,097,886) Total primary government (2,958,271)$ 847,794$ (3,653,306)$ 3,142,424$ 3,541,628$ $ 4,506,961 $ 18,291,235 $ 20,720,086 $ 7,433,016 $ 1,892,223 Fiscal Year Page 195 of 277 City of Ukiah, California Statistical Section Page | 166 City of Ukiah, California Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year Ended June 30, 2022 (Modified accrual basis of accounting) For Fiscal Year Ended June 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Nonspendable $ 619,044 $ 619,044 $ 645,728 $ 911,343 $ 951,167 $ 1,793,247 $ 5,514,226 $ 6,673,912 $ 4,224,563 $ 4,305,711 Restricted - - - - - 4,000,000 - - - - Committed 183,956 203,105 - - - - - 194,655.0 - - Assigned 89,859 - - 185,443.0 4,371,069 - - - 186,134 266,158 Unassigned 4,381,047 4,233,953 4,878,803 4,116,215 - (1,623,326) 3,321,778 2,434,740 6,818,832 8,668,084$ Total general fund $ 5,273,906 $ 5,056,102 $ 5,524,531 $ 5,213,001 $ 5,322,236 $ 4,169,921 $ 8,836,004 $ 9,303,307 $ 11,229,529 $ 13,239,953 All other governmental funds Nonspendable - - - - - 137,576 - 137,576 137,576 137,576 Restricted 4,486,098 4,805,526 12,931,066 12,276,877 11,698,264 126,110,721 11,765,026 10,747,218 15,347,160 17,727,982 Committed 713,402 3,569,505 - - - 12,610,721 685,933 305,466 415,634 803,531 Assigned 5,832,173 2,514,649 4,395,621 3,358,684 2,952,598 1,516,753 1,430,426 1,326,655 4,806,366 20,784,801 Unassigned (894,993.0) (736,226) (232,412) (442,572) (1,044,381) (1,919,041) (2,801,435) (1,955,567) (1,282,564) (768,655) Reserved - - - - - - - - - - Unreserved - - - - - - - - - - Total other governmental funds 10,136,680 10,153,454 17,094,275 15,192,989 13,606,481 138,456,730 11,079,950 10,561,348 19,424,172 38,685,235 Fiscal Year City of Ukiah Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Source: Audited Financial Statements - Balance Sheet-Governmental funds Page 196 of 277 City of Ukiah, California Statistical Section Page | 167 City of Ukiah, California Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year Ended June 30, 2022 (Modified accrual basis of accounting) Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 REVENUES Property tax $ 1,484,934 $ 1,251,189 $ 3,729,370 $ 3,531,272 1,470,323$ $ 2,890,291 $ 2,984,192 $ 3,139,960 $ 3,408,846 $ 3,520,010 Sales tax 6,977,233 7,104,666 5,976,938 6,824,737 9,805,225 10,745,095 11,974,379 13,313,206 15,535,021 14,553,285 Franchise fees - - - - - 1,653,146 1,781,141 1,742,671 1,815,271 1,846,595 Transient occupancy 828,000 925,191 1,061,823 1,229,814 1,302,336 1,406,417 1,496,473 1,365,477 1,362,134 1,485,385 Business license tax - - - - - 380,797 303,604 411,997 509,803 533,653 Other taxes 929,173 950,386 2,047,734 1,917,323 391,473 249 462 888 1,136 888 Charges for service 1,580,632 1,013,534 1,032,957 755,074 1,487,426 1,780,430 2,036,077 1,340,123 2,505,138 3,854,428 Licenses and permits 272,070 292,688 186,012 341,642 1,792,595 299,101 211,113 259,533 276,752 262,422 Grants contributions and donations - - - - - 274,995 938,308 3,164,054 1,693,511 - Intergovernmental 2,964,207 3,270,042 3,048,401 2,911,624 1,945,803 2,524,311 1,153,488 2,686,013 6,036,254 6,957,672 Fines penalties and forfeitures 319,189 256,776 58,692 78,589 73,835 73,639 33,588 29,716 25,933 28,863 Facility rental - - - - - 589,952 607,020 - - - Interest, rent, and concessions 224,129 340,887 497,681 336,173 415,979 99,543 243,994 - 27,844 445 Use of money and property - - - - - 36,656 - 1,072,805 922,810 465,950 Miscellaneous 243,654 493,158 232,651 411,052 187,999 654,186 436,361 388,629 158,956 272,253 Total revenues $ 15,823,221 $ 15,898,517 $ 17,872,259 $ 18,337,300 $ 18,872,994 $ 23,408,808 $ 24,200,200 $ 28,915,072 $ 34,279,409 $ 33,781,849 EXPENDITURES Current: General government 2,117,303 2,773,585 852,079 542,434 549,540 270,429 168,024 284,410 28,429,045 123,137 Public safety 9,831,860 9,297,118 10,229,049 11,096,768 11,592,123 11,703,851 12,111,558 12,569,718 13,486,427 14,680,628 Housing and community development 1,205,464 785,349 327,921 870,450 1,261,361 1,039,784 2,107,427 1,385,401 1,460,134 2,058,024 Public works 1,411,445 1,612,266 2,337,389 2,173,214 1,192,369 1,679,304 1,646,459 1,706,516 1,732,451 3,124,536 Parks, buildings, and grounds - - - - - - 26 856 1,190,266 1,979,678 Parks and recreation 2,327,464 2,304,893 2,692,906 2,616,856 2,873,224 3,183,278 3,439,596 3,449,222 2,517,373 3,726,375 Economic development and redevelopment - - - 273,570 299,397 403,808 290,261 84,273 Debt service: Interest - - - - - - 142,679 139,753 139,070 1,660,748 Issuance expense - - - - - 4,019 - 554,846 137,651 Principal - - - - - 40,000 80,070 82,712 85,442 546,618 Capital lease principal - - - - 16,243 49,967 101,727 104,282 127,291 130,470 Capital lease interest - - - - - 14,055 26,232 23,678 26,949 23,234 Capital outlay 1,545,538 1,159,928 1,739,147 2,612,218 2,147,966 12,217,670 6,373,804 8,560,345 5,776,201 3,545,309 Total expenditures 18,439,074 17,933,139 18,178,491 19,911,940 19,632,826 30,475,927 26,496,999 28,710,701 55,815,756 31,820,681 Excess (deficiency) of revenues over expenditures (2,615,853) (2,034,622) (306,232) (1,574,640) (759,832) (7,067,119) (2,296,799) 204,371 (21,536,347) 1,961,168 OTHER FINANCING SOURCES (USES) Bond issue and Debt proceeds - - - - - 5,125,731 - 284,685 32,770,354 17,027,366 Discount on bonds issued - - - - - - - - - - Transfers in 2,680,654 2,076,641 1,349,208 940,063 1,010,534 1,613,884 7,813,522 5,079,682 4,269,762 10,221,951 Transfers out (2,082,273) (243,049) (1,378,578) (1,413,602)(1,727,975) (1,963,679) (8,238,303) (5,620,041) (4,714,724) (7,939,001) Total other financing sources (uses) 598,381 1,833,592 (29,370) (473,539) (717,441) 4,775,936 (424,781) (255,674) 32,325,392 19,310,316 SPECIAL ITEM Reinstatement of Successor Agency loan - - - - - - 6,000,000 Extraordinary items & Prior Period Adj. - - 7,744,852 - - - - - - - Total special items - - 7,744,852 - - - 6,000,000 - - - Net change in fund balances (2,017,472) (201,030) 7,409,250 (2,048,179) (1,477,273) (2,291,183) 3,278,420 (51,303) 10,789,045 21,271,484 Debt service as a percentage of noncapital expenditures 0.00%0.00%0.00%0.00%0.09%0.57%1.77%1.77%0.77%9.16% Prior Period adjustment of is the result of moving long-term receivables and Land Held for Resale from deferred inflows-available revenues to restricted fund balance. Source: Audited Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year City of Ukiah Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Page 197 of 277 City of Ukiah, California Statistical Section Page | 168 Revenue Capacity City of Ukiah, California Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years Fiscal Year Property Sales & Use Occupancy Franchise Other Total 2013 1,484,934 6,977,233 828,000 569,892 359,281 10,219,340 2014 1,251,189 7,104,666 925,191 591,767 358,618 10,231,431 2015 3,729,370 5,976,938 1,061,823 1,643,559 404,175 12,815,871 2016 3,531,272 6,824,737 1,229,814 1,514,798 402,524 13,503,146 2017 2,703,312 8,489,734 1,302,336 1,551,794 473,976 14,521,155 2018 2,838,902 10,853,469 1,406,417 1,653,146 434,464 17,186,403 2019 2,984,192 11,974,379 1,496,473 1,781,141 304,066 18,540,251 2020 3,156,775 13,313,206 1,365,477 1,742,671 412,885 19,991,014 2021 3,425,560 15,535,021 1,367,852 1,815,271 561,663 22,705,367 2022 3,537,067 14,553,285 1,487,139 1,846,594 534,541 21,958,626 Change 2021-2022 3.3% 6.3% 8.7% 1.7% 4.8% 3.3% Source: Audited Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances 1. The change in FY2015 included moving the Motor Vehicle License fee from Sales & Use to Property. 2. The change in FY2015 included moving the Motor Vehicle License fee from Sales & Use to Property. 3. Includes the Electric Utility Franchise Fee which was previously included as a Transfer to General Fund. 4. Reduction over prior year due to the elimination of the Triple Flip portion of the Property Tax. 5. In 2018 Property Transfer Tax was included in 'Other' Taxes. In 2019 we recategorized it as Property Tax. Type of Tax Page 198 of 277 City of Ukiah, California Statistical Section Page | 169 City of Ukiah, California Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Property Tax Schedules are not readily available from the County and are not presented here. Page 199 of 277 City of Ukiah, California Statistical Section Page | 170 City of Ukiah, California Electric Utility Rates Last Ten Fiscal Years Page 200 of 277 City of Ukiah, California Statistical Section Page | 171 City of Ukiah, California Wastewater Utility Rates Last Ten Fiscal Years Page 201 of 277 City of Ukiah, California Statistical Section Page | 172 City of Ukiah, California Water Utility Rates Last Ten Years Page 202 of 277 City of Ukiah, California Statistical Section Page | 173 City of Ukiah, California Top Ten Electric Usage Customers Current Fiscal Year Ended June 30, 2022 Page 203 of 277 City of Ukiah, California Statistical Section Page | 174 Debt Capacity City of Ukiah, California Ratio of Outstanding Debt by Type Per Capita and Per Capita Income Data Last Ten Fiscal Years Countywide Estimated Lease Electric Direct Lease Total Percentage Fiscal Estimated Per Capita Ukiah Personal Redevelopment Capital Revenue Revenue Installment State Borrowing Revenue Landfill Primary Debt of Personal Year Population Income Income Bonds Leases Bonds Bonds Agreements Loans Loans Bonds Obligations Government Per Capita Income 2013 16,065 36,791 591,047,415$ 11,845,000$ -$ -$ 8,595,000$ 81,010,000$ 2,593,306$ -$ -$ 8,928,942$ 20,773,942$ 1,293$ 3.51% 2014 16,185 38,307 619,998,795$ 10,935,000$ -$ -$ 7,095,000$ 78,895,000$ 2,070,256$ -$ -$ 9,062,877$ 19,997,877$ 1,236$ 3.23% 2015 16,073 39,545 635,606,785$ 9,970,000$ -$ -$ 5,485,000$ 76,695,000$ 1,530,670$ -$ -$ 14,700,370$ 24,670,370$ 1,535$ 3.88% 2016 16,186 43,845 709,675,170$ 8,950,000$ -$ -$ 3,775,000$ 74,075,000$ -$ -$ -$ 14,700,370$ 23,650,370$ 1,461$ 3.33% 2017 16,314 45,436 741,242,904$ 7,865,000$ -$ -$ 1,950,000$ 71,590,000$ -$ 199,883$ -$ 14,700,370$ 22,565,370$ 1,383$ 3.04% 2018 16,226 47,611 772,536,086$ 7,350,000$ 5,301,504$ -$ -$ 69,010,000$ -$ 190,121$ -$ 14,700,370$ 27,351,874$ 1,686$ 3.54% 2019 16,296 50,150 817,244,400$ 6,800,000$ 5,065,067$ -$ -$ 66,330,000$ -$ 15,384,763$ -$ 16,236,314$ 28,101,381$ 1,724$ 3.44% 2020 16,061 52,976 850,847,536$ 5,495,771$ 5,051,040$ -$ -$ 34,170,000$ -$ 16,948,410$ -$ 19,063,628$ 29,610,439$ 1,844$ 3.48% 2021 15,526 54,795 850,747,170$ 4,864,728$ 5,109,125$ 32,582,164$ -$ 32,240,000$ -$ 18,398,373$ 19,672,836$ 19,297,593$ 61,853,610$ 3,984$ 7.27% 2022 16,080 56,047 901,235,760$ 4,141,703$ 4,800,950$ 67,587,506$ 10,238,809$ 31,572,122$ -$ 17,862,165$ 19,394,754$ 19,890,002$ 96,420,161$ 5,996$ 10.70% Source: Estimated Population-from the State of California Department of Finance. Countywide Per Capita Income - Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Redevelopment Bonds, Capital Leases, Electric Revenue Bonds, Installment Agreements, State Loans, Direct Borrowing Loans & Landfill Obligations - Notes to Financial Statements-Long Term Debt Notes:Information on Outstanding Debt updated from prior presentations to include Capital Leases and Direct Borrowing Loans Total Primary Government Debt reflects Redevelopment Bonds, Capital Leases and Landfill Obligations Business Type ActivitiesGovernmental Type Activities Page 204 of 277 City of Ukiah, California Statistical Section Page | 175 City of Ukiah, California Ratio of General Bonded Outstanding Debt Last Ten Fiscal Years Percentage of Actual Countywide Actual Lease Total Taxable Fiscal Estimated Per Capita Taxable Value Redevelopment Capital Revenue Primary Debt Value Year Population Income of Property Bonds Leases Bonds Government Per Capita of Property 2013 16,065 36,791$ 1,171,599,083$ 11,845,000$ -$ -$ 11,845,000$ 737$ 1.01% 2014 16,185 38,307$ 1,195,466,105$ 10,935,000$ -$ -$ 10,935,000$ 676$ 0.91% 2015 16,073 39,545$ 1,224,746,468$ 9,970,000$ -$ -$ 9,970,000$ 620$ 0.81% 2016 16,186 43,845$ 1,267,903,229$ 8,950,000$ -$ -$ 8,950,000$ 553$ 0.71% 2017 16,314 45,436$ 1,304,711,495$ 7,865,000$ -$ -$ 7,865,000$ 482$ 0.60% 2018 16,226 47,611$ 1,364,333,801$ 7,350,000$ 5,301,504$ -$ 12,651,504$ 780$ 0.93% 2019 16,296 50,150$ 1,424,497,607$ 6,800,000$ 5,065,067$ -$ 11,865,067$ 728$ 0.83% 2020 16,061 52,976$ 1,491,766,585$ 5,495,771$ 5,051,040$ -$ 10,546,811$ 657$ 0.71% 2021 15,526 54,795$ 1,611,033,296$ 4,864,728$ 5,109,125$ 32,582,164$ 42,556,017$ 2,741$ 2.64% 2022 16,080 56,047$ 1,651,248,895$ 4,141,703$ 4,800,950$ 67,587,506$ 76,530,159$ 4,759$ 4.63% Source: Estimated Population-from the State of California Department of Finance Countywide Per Capita Income- Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Redevelopment Bonds & Capital Leases - Notes to Financial Statements-Long Term Debt County of Mendocino Assessed Valuations by District General Debt Outstanding Page 205 of 277 City of Ukiah, California Statistical Section Page | 176 City of Ukiah, California Computation of Direct and Overlapping Debt June 30, 2022 The above Pledged-Revenue Coverage data is provided for interested parties. The specific Pledged-Revenue Coverage requirements for outstanding enterprise debt are detailed in the covenants for each outstanding enterprise debt. Investors in the City’s enterprise debt obligations are encouraged to review the annual Continuing Disclosure Reports required under SEC Rule 15c2-12, as posted to the Municipal Securities Rulemaking Board Electronic Municipal Market Access website, to obtain the annual Continuing Disclosure report for Pledged-Revenue Coverage Ratio information in alignment with specific debt covenants. Estimated Estimated Share of Percentage Direct and Debt Applicable Overlapping Jurisdiction Outstanding to City (1)Debt 2021-22 Assessed Valuation (City of Ukiah):1,651,248,895$ 2021-22 Assessed Valuation (Successor Agency to the Ukiah RDA):1,015,146,566 2021-22 Incremental Assessed Valuation (Successor Agency to the Ukiah RDA):758,939,569 OVERLAPPING TAX AND ASSESSMENT DEBT:% Applicable(1)Debt 6/30/2022 City of Ukiah 100.00%-$ Ukiah Unified School District 34.00%20,815,283.23 Mendocino-Lake Community College District 13.47%7,458,209.77 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 28,273,493.00$ OVERLAPPING GENERAL FUND DEBT: City of Ukiah - Capital Lease Obligations 100.00%4,800,950.00$ City of Ukiah - Lease Revenue Bonds, Series 2020A 100.00%2,623,572.00 City of Ukiah - Taxable Lease Revenue Bonds, Series 2020B 100.00%31,968,235.00 City of Ukiah - Lease Revenue Bonds, Series 2022 100.00%32,995,699.00 Mendocino County General Fund Obligations 12.74%1,710,932.80 Mendocino County Pension Obligation Bonds 12.74%4,320,646.76 TOTAL OVERLAPPING GENERAL FUND DEBT 78,420,035.56$ OVERLAPPING TAX INCREMENT DEBT(SUCCESSOR AGENCY)100.00%4,141,703.00$ Total Direct Debt 72,388,456.00$ Total Overlapping Debt 38,446,775.56 Total Combined Debt 110,835,231.56$ Ratios to 2021-22 Assessed Valuation: Total Direct Debt 4.38% Total Overlapping Tax and Assessment Debt 1.71% Total Overlapping Debt 2.33% Total Combined Debt 6.71% Ratios to 2021-22 Redevelopment Successor Agency Incremental Assessed Valuation: Total Overlapping Tax Increment Debt 0.55% (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping entities' assessed value that is within the boundaries of the City, divided by the entities' total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue obligations. Page 206 of 277 City of Ukiah, California Statistical Section Page | 177 City of Ukiah, California Legal Debt Margin Information Last Ten Fiscal Years Debt Subject Ratio Applied Legal Total Debt to Limit Fiscal Assessed as % of Debt Limit Subject to as % of Year Valuation Assessed Value Margin Limit Debt Limit 2013 1,171,599,083$ 15.00%175,739,862 - 0.00% 2014 1,195,466,105$ 15.00%179,319,916 - 0.00% 2015 1,224,746,468$ 15.00%183,711,970 - 0.00% 2016 1,267,903,229$ 15.00%190,185,484 - 0.00% 2017 1,304,711,495$ 15.00%195,706,724 - 0.00% 2018 1,364,333,801$ 15.00%204,650,070 - 0.00% 2019 1,424,497,607$ 15.00%213,674,641 - 0.00% 2020 1,491,766,585$ 15.00%223,764,988 - 0.00% 2021 1,611,033,296$ 15.00%241,654,994 - 0.00% 2022 1,651,248,895$ 15.00%247,687,334 - 0.00% Legal Debt Limit Margin Calculation for 2021-2022 Assessed value 1,651,248,895$ Debt limit is 15% of assessed value 247,687,334$ Less: Debt applicable to limitation -$ Total bonded debt -$ Legal debt margin 247,687,334$ In accordance with state law the City may not incur general obligation bonded indebtedness in excess of 15% of total assessed valuation, with such debt being payable from the proceeds of taxes levied upon taxable properties Source: County of Mendocino Assessed Valuations by District Page 207 of 277 City of Ukiah, California Statistical Section Page | 178 City of Ukiah, California Pledged Net Revenue Debt Coverage Last Ten Fiscal Years This table is no longer presented. Page 208 of 277 City of Ukiah, California Statistical Section Page | 179 Demographic and Economic information City of Ukiah, California Demographic and Economic Statistics Last Ten Fiscal Years Countywide Estimated Fiscal Estimated Per Capita City Ukiah Assessed Unemployment Year Population Income Income Valuation Rate 2013 16,065 36,791$ 591,047,415$ 1,171,599,083$ 11.30% 2014 16,185 38,307$ 619,998,795$ 1,195,466,105$ 9.60% 2015 16,073 39,545$ 635,606,785$ 1,224,746,468$ 8.00% 2016 16,186 43,845$ 709,675,170$ 1,267,903,229$ 6.90% 2017 16,314 45,436$ 741,242,904$ 1,304,711,495$ 6.30% 2018 16,226 47,611$ 772,536,086$ 1,364,333,801$ 5.30% 2019 16,296 50,150$ 817,244,400$ 1,424,497,607$ 5.20% 2020 16,061 52,976$ 850,847,536$ 1,491,766,585$ 8.00% 2021 15,526 54,795$ 850,747,170$ 1,542,790,339$ 10.20% 2022 16,080 56,047$ 901,235,760$ 1,580,161,957$ 5.50% Source: Estimated Population-State of California Department of Finance Countywide Per Capita Income- Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Assessed Valuations-County of Mendocino-Assessed Valuations by District Unemployment Rate-State of California Employment Development Department Labor Market Division Labor Force Data for Cities and Census Designated Places Page 209 of 277 City of Ukiah, California Statistical Section Page | 180 City of Ukiah, California Principal Employers Page 210 of 277 City of Ukiah, California Statistical Section Page | 181 Operating Information City of Ukiah, California Full-time and Part-time City Employees by Function Last Ten Calendar Years Page 211 of 277 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council City of Ukiah Ukiah, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Ukiah (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 26, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies 1 Page 212 of 277 in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2022-001 that we consider to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Ukiah’s Responses to Findings The City’s responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. January 26, 2023 2 Page 213 of 277 CITY OF UKIAH SCHEDULE OF FINDINGS AND RESPONSES Year Ended June 30, 2022 2022-001 Building Permits Condition: The City’s building permit system is a module of Munis, the general ledger accounting system used. Payments for building permits are collected by the cashiers by crediting the permit application in Munis. However, the permit technicians can issue permits with a balance due, with no independent reconciliation performed between the permits issued and the revenues collected and posted to the general ledger. Criteria: In a strong internal control environment, permits issued should be reconciled with the revenues collected and recorded in the general ledger on a periodic basis to ensure all permits issued have a corresponding cash receipt. Cause of Condition: The City does not reconcile the building permits issued to the revenues collected and recorded in the general ledger. Potential Effect of Condition: Building permits could be issued without a corresponding cash receipt being recorded in the City’s general ledger and deposits in the City’s bank account. Recommendation: We recommend the City implement procedures to generate reports from the building permit module, and periodically (daily, weekly, monthly) have someone independent of the permit issuance and collection functions review and reconcile the amounts from these reports to the revenues posted in the City’s general ledger. Management’s Response: The City is in the middle of an acquisition of new permitting software, where the expectation will be of better reporting and internal controls. Community Development’s goal, based on the requirements of the grant funding, is to have it implemented by the end of this calendar year. 3 Page 214 of 277 INDEPENDENT ACCOUNTANT’S REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS City Council City of Ukiah Ukiah, California We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of Ukiah, for the year ended June 30, 2022. These procedures, which were agreed to by the City of Ukiah and the League of California Cities (as presented in the publication entitled Agreed- upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is responsible for the Appropriations Limit worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1.We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2.For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit. Finding: No exceptions were noted as a result of our procedures. 3.We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above. Finding: No exceptions were noted as a result of our procedures. 1 Page 215 of 277 4.We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XIIIB of the California Constitution. This report is intended solely for the use of the City Council and management of the City of Ukiah and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. January 26, 2023 2 Page 216 of 277 CITY OF UKIAH APPROPRIATIONS LIMIT COMPUTATION 2021 – 2022 2021 - 2022 Change in Per Capita Personal Income 5.73% Population Change County Population Growth -1.02% A . C hange in Per Capita Personal Income Converted to a Ratio 1.0573 B . P opulation Growth Converted to a Ratio 0.9898 Calculation of Growth Factor (A x B)1.04651554 2020 - 2021 Appropriations Limit 45,908,767$ 2021 - 2022 Appropriations Limit (45,908,767 x 1.04651554)48,044,238$ 3 Page 217 of 277 END OF DOCUMENT Page 218 of 277 1 Page 219 of 277 1.Annual Comprehensive Financial Report (ACFR) 1.(Formerly ACFR) 1.What is it? 2.How to read 3.Key takeaways 2.Highlights for the year ended June 30, 2022 3.Audit Reports 2 Page 220 of 277 1.Daniel Buffalo, MPA, CPA, CGMA | Finance Director 2.Ginny Feth -Michel, CPA | Assistant Finance Director 3.Olga Keough, CPA | Controller 4.Mary Horger | Financial Services Manager –Procurement, Capital, and Special Projects 5.Jessie Brunell | Senior Accountant 6.Devon King | Assistant Accountant 7.Sarah Brown | Financial Services Manager -Disbursements 3 Page 221 of 277 4 Page 222 of 277 How is governmental accounting different than private-sector accounting? Private Sector •To account for the bottom line, the benefit of the owner(s) Governmental •No owner •Myriad of interests, considerations, and stakeholders •Many transactions are different than in the private sector e.g. taxes 5 Page 223 of 277 A series of self-balancing accounts used to track the flow of resources for a specific or general purpose. In other words, think of a fund as a subsidiary of a larger organization. 6 Page 224 of 277 Balance Sheet: Assets Deferred outflows of resources Liabilities Deferred inflows of resources Fund balance/net position Changes to fund balance/net position: Revenues Expenditures (expenses) Other financing sources (uses) Transfers Other items not considered revenues or expenditures 7 Page 225 of 277 o Fund balance: o Governmental funds (e.g. general fund, special revenue funds, capital funds, etc) o Concerned only with current financial resources measurement focus o Use only for governmental funds, i.e., general fund, special revenue funds, etc. o Components: o Nonspendable (resources unavailable in the near future) o Restricted (limited use by an outside party) o Committed (limited use by the highest level of authority, e.g. ordinance) o Assigned (limited use by some level of authority, i.e. council or management) o Ex: reserves o Unassigned (no limitation and specific use, really only applicable to the general fund) o Net position: o Same concept as fund balance, however... o Used for proprietary funds (e.g., enterprise and internal service funds), and some fiduciary funds (e.g. RDA Successor Agency) o We use “working capital” to approximate fund balance 8 Page 226 of 277 Budget Where you’re going Audited Financial reports Where you’ve been And a qualified CPA is attesting to that 9 Page 227 of 277 For a variety of reasons: A legal document A planning tool A control mechanism A policy document •Expression of intent •Communication A spending plan An allocation of resources A performance standard From an accounting perspective: to account for “non-exchange” transactions. 10 Page 228 of 277 Annual Comprehensive Financial Report 11 Page 229 of 277 •Management’s communication to Council and community on the financial activities and condition of the City for the period •One-year period ended June 30, 2022 •Audited financial statements, schedules, and other financial information •Audited by independent Certified Public Accountant, licensed by the State of California •Knowledgeable in governmental accounting and reporting •Written to specific standards (GAAP), promulgated by GASB 12 Page 230 of 277 •Often referred to as the “Audit” or “Audit Report” •This is a misnomer. •The auditor’s reports are found within the ACFR and are an integral part of it •Pg 27 of pdf, “Independent Auditor’s Report” •Pg 208 of pdf, Report on Internal Control •Pg 211 of pdf, Appropriations Limit (Gann Limit) confirmation •The document is the responsibility of management and then audited •Audited financials required by City policy and state law. 13 Page 231 of 277 Three main sections: 1.Introductory 2.Financial 3.Statistical Sections of note: 1.Letter of transmittal, pg 10 of pdf 2.GFOA Award, Excellence in Financial Reporting, pg 23 of pdf 3.Audit report, pg 27 of pdf 4.MD&A (Management Discussion and Analysis), pg 30 of pdf 5.General fund statements, pg 49 of pdf 6.Major enterprise fund statements (utilities), pg 54 of pdf 14 Page 232 of 277 •It’s comprehensive...really comprehensive •Meant for consumption by all but really tailored to those who know how to read it •City received an “unmodified” opinion •i.e. statements are presented fairly (in all material respects) without exception •Findings related to internal control, pg 208 of pdf 15 Page 233 of 277 16 Page 234 of 277 Reported Funds (70) Governmental (43) General, special revenue, capital, debt service, permanent Proprietary (20) Enterprise (10) –Water, sewer, electric, parking, street lighting, airport, conference center, golf, ambulance services Internal service (10) –City Administrative Services, Garage, Dispatch, Purchasing, Billing (UB and general), workers’ comp, liability (risk management), building maintenance, IT Fiduciary (7) Custodial (6) –UVSD, UVFD, Special Deposit, Garbage Billing, Russian River Watershed, general services (clearing fund for utility billing) Private Purpose trust (1) –Redevelopment Successor Agency 17 Page 235 of 277 Activities: Governmental activities: General government Public safety Housing and community development Public works Parks, buildings, and grounds Recreation and culture Economic development and redevelopment Interest on long-term debt Business-type activities: Parking District Landfill Ambulance Services Golf Conference Center Airport Electric Street Lighting Water Wastewater 18 Page 236 of 277 Fund Facts Departments: 16 Divisions: 70 Budgeted accounts: 2,398 Total active, managed accounts: 4,633 19 Page 237 of 277 Cash $95.5 million $ 87.8 million for City use $28.6 mil held in City treasury $51.5 mil held with fiscal agents $7.7 mil held with NCPA $8.1 million in fiduciary Net position: $185.5 million in capital, net of related debt $15.7 million restricted -$32.4 million unrestricted 20 Page 238 of 277 21 General government 4.12%Public safety 14.93% Housing and community development 3.00% Public works 3.44% Parks, buildings, and grounds 3.47% Recreation and culture 4.76% Economic development and redevelopment 0.12% Interest on long-term debt 2.44% Parking District 0.22% Landfill 2.07% Ambulance Services 1.36% Golf 0.36% Conference Center 0.45%Airport 2.25% Electric 33.29% Street Lighting 0.21% Water 10.77% Wastewater 12.75% Expenses by Activity Page 239 of 277 22 Charges for Services 55.42% Operating Grants and Contributions 9.16% Capital Grants and Contributions 3.69% Taxes 28.25% Franchise fees 2.59% Other revenue 0.39% Use of money and property -0.50% Revenues by Source Page 240 of 277 Revenue: $28.7 mil Expenditures: $23.8 mill Other financing sources (uses), net: $2.8 mil Change in fund balance: $2.0 mil Fund Balance: $13.24 mil $4.3 nonspendable $266K restricted $8.67 mil unassigned 55.6% of expenditures 23 Page 241 of 277 24 Property tax 12.28% Sales tax 50.79% Transient occupancy 5.18% Business license tax 1.78% Other taxes 0.00% Franchise fees 6.44% Charges for service 12.66% Licenses and permits 0.92% Use of money and property 0.26% Intergovernmental 8.87% Fines penalties and forfeitures 0.10% Interest, rent, and concessions 0.00% Miscellaneous 0.71% Program income 0.00% Payments to City for services provided 0.00% Revenue by Source General Fund Page 242 of 277 25 General government 0.50% Public safety 60.01% Housing and community development 5.00% Public works 7.42% Parks, buildings, and grounds 8.28% Recreation and culture 13.86% Economic development and redevelopment 0.26% Debt service: 1.26% Capital outlay: 3.41% Expenditures by Activity General Fund Page 243 of 277 26 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2018 2019 2020 2021 2022 Operating Revenues and Expenses Electric Expenses Water Expenses Wastewater Expenses Electric Revenues Water Revenues Wastewater Revenues Page 244 of 277 27 (5,000,000) - 5,000,000 10,000,000 15,000,000 20,000,000 2018 2019 2020 2021 2022 Working Capital Electric Water Wastewater Page 245 of 277 28 Page 246 of 277 Page 1 of 1 Agenda Item No: 4.b. MEETING DATE/TIME: 2/15/2023 ITEM NO: 2023-2363 AGENDA SUMMARY REPORT SUBJECT: Receive and File Second Quarter Financial Report. DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Dan Buffalo, Finance Director ATTACHMENTS: 1. Presentation at Meeting - Mid-Year Report, 2-15-23 Summary: The City Council will receive a presentation on the Second Quarter (December 31, 2022) Financial Report for the City of Ukiah. Background: The report provides readers with a preliminary summary of the City's financial position and activities through the fiscal year period ending December 31, 2022. This report is unaudited. Discussion: The following link will direct readers to the report on the City's OpenGov platform, which is a dynamic and navigable presentation allowing readers to drill down into data to explore more detail than the former report offered. https://stories.opengov.com/ukiahca/published/b5HKHvrY4 The report is meant to be viewed through the OpenGov platform via a web browser, preferably Google Chrome. Recommended Action: Receive and file report. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: N/A Page 247 of 277 MID-YEAR BUDGET REVIEW February 15, 2023 Daniel Buffalo, MPA, CPA, CGMA | Finance Director Page 248 of 277 AGENDA •Mid-Year Review •Budget Development Process Review •Annexation and tax sharing •Council Strategic Plan 2 Page 249 of 277 MID-YEAR REVIEW 3 Page 250 of 277 BALANCE SHEET •Assets (current): $83.4 mil •Cash: $73.5 mil •Excludes internal balances (borrowings) •Liabilities (current): $2.0 mil •Excludes internal balances •Fund balance (working capital): $81.4 mil •General fund: well capitalized •55.6% of expenditures to close ’22 •Utility funds: under considerable cost pressures 4 Page 251 of 277 INCOME STATEMENT •Revenue: $40.9 mil •Sales tax returns lower than anticipated •Utility revenues growth nominal •Expenditures: $46.9 mil 5 Page 252 of 277 COVID RESPONSE •$2.8 mil spent in response •Some direct reimbursement received •$3.8 mil in stimulus money appropriated to City 6 Page 253 of 277 BUDGET CONDITION •Operations: 49% of budget •Capital: 10% of budget •Does not include bulk of debt financed projects 7 Page 254 of 277 CHALLENGES AHEAD •Completion of significant capital projects •Utilities: balancing revenues to support costs 8 Page 255 of 277 BUDGET PROCESS AND SCHEDULE 9 Page 256 of 277 BUDGET PROCESS 10 Budget Schedule Developed (December)Budget Memo and Instructions Distributed (January) Personnel and capital requests (February) Mid-Year Review with Council (February - April) Budget Open to Departments for Entry (March) Analysis Period (April) City Manager Revisions (May) Budget Document Draft Development (May) Council Review and Consideration (June) Adoption (June) Amendments (throughout the year) Page 257 of 277 BUDGET SCHEDULE 11 Narratives and Personnel •Departmental narratives •Objective and accomplishments (February 17) •Personnel requests to HR (February 6) CIP •Utilities and Public Works preliminary 5-Year CIP requests to Mary •All departments 5-Year CIP requests to Mary (February 28) Munis Budget Entry •Personnel entered by HR •Departments enter operational (materials, supplies, and services) budgets (March 28) •Departments enter approved 5-year CIP capital (March 28) Meetings, Analysis, and Revision Document and Presentation Preparation Hearings and Adoption •City-wide presentation by Finance (June 7) •Departmental presentations (June 8-9) •Adoption (June 21 -tentative) Page 258 of 277 ANNEXATION, SERVICE DELIVERY, AND TAX SHARING 12 Page 259 of 277 13 •Where it goes...1% ad valorem secured property tax PROPERTY TAX Ukiah Unified, $0.34 County Office of Ed, $0.04 Mendocino Community College District, $0.06 ERAF, $0.16 County general fund, $0.24 Library, $0.01 City of Ukiah, $0.09 Special districts and other, $0.04 Page 260 of 277 EXAMPLE PURCHASE HOME IN UKIAH •Assumptions •$650K purchase price •Total annual ad valorem property tax: $6,500 14 Property Tax Distribution, City of Ukiah Jurisdiction City County Schools Special Districts and Other Total Share Ukiah Unified $ -$ -$ 2,240.89 $ -$ 2,240.89 34.475% County Office of Ed --269.72 -269.72 4.150% Mendocino Community College District --420.26 -420.26 6.466% ERAF --1,025.57 -1,025.57 15.778% County General fund -1,568.15 --1,568.15 24.125% Library -86.24 --86.24 1.327% City of Ukiah 610.01 ---610.01 9.385% Special districts and other ---279.16 279.16 4.295% Total distribution (% rate)$ 610.01 $ 1,654.39 $ 3,956.44 $ 279.16 $ 6,500.00 100.000% Page 261 of 277 15 •Where it goes... •Sales tax total rate in Ukiah: 8.875% SALES TAX State general fund $0.42 State education protection fund (realignment) $0.03 City of Ukiah $0.11 City of Ukiah Measure P $0.06 City of Ukiah Measure Y $0.06 State local revenue fund 2011 (realignment) $0.12 Local public safety fund (Prop 172) $0.06 State local health fund $0.06 County library fund $0.03 County Measure B $0.01 Transportation fund $0.03 County Measure P, $0.03 Page 262 of 277 EXAMPLE SPEND $350 AT COSTCO •Assumptions •All taxable goods •Price paid:$350.00 •Tax paid:$31.06 •Total charged: $381.06 16 Sales Tax Distribution, City of Ukiah Jurisdiction City County State Total Share State general fund $ -$ -$ 12.91 $ 12.91 41.549% State education protection fund (realignment)--0.88 0.88 2.817% City of Ukiah 3.50 --3.50 11.268% City of Ukiah Measure P 1.75 --1.75 5.634% City of Ukiah Measure Y 1.75 --1.75 5.634% State local revenue fund 2011 (realignment)-3.72 -3.72 11.972% Local public safety fund (Prop 172)-1.75 -1.75 5.634% State local health fund -1.75 -1.75 5.634% County library fund -0.88 -0.88 2.817% County Measure P -0.88 -0.88 2.817% County Measure B -0.44 -0.44 1.408% Transportation fund -0.88 -0.88 2.817% Total distribution (% rate)$ 7.00 $ 10.28 $ 13.78 $ 31.06 100.000% Page 263 of 277 17 Property tax 12.28% Sales tax 50.79% Transient occupancy 5.18% Business license tax 1.78% Other taxes 0.00% Franchise fees 6.44% Charges for service 12.66% Licenses and permits 0.92% Use of money and property 0.26% Intergovernmental 8.87% Fines penalties and forfeitures 0.10% Interest, rent, and concessions 0.00% Miscellaneous 0.71% Program income 0.00% Payments to City for services provided 0.00% Revenue by Source General Fund Page 264 of 277 18 General government 0.50% Public safety 60.01% Housing and community development 5.00% Public works 7.42% Parks, buildings, and grounds 8.28% Recreation and culture 13.86% Economic development and redevelopment 0.26% Debt service: 1.26% Capital outlay: 3.41% Expenditures by Activity General Fund Page 265 of 277 CITY COUNCIL STRATEGIC PLAN 19 Page 266 of 277 QUESTIONS 20 Page 267 of 277 Page 1 of 2 Agenda Item No: 4.c. MEETING DATE/TIME: 2/15/2023 ITEM NO: 2023-2362 AGENDA SUMMARY REPORT SUBJECT: Review and Update, if Warranted, the Ukiah City Council Strategic Plan DEPARTMENT: City Manager / Admin PREPARED BY: Traci Boyl, City Manager's Office Senior Analyst PRESENTER: Sage Sangiacomo, City Manager ATTACHMENTS: 1. City Council Strategic Plan 2023 DRAFT Summary: Each year during the annual budget process, the Ukiah City Council reviews and updates the City's Strategic Plan. Background: The Strategic Plan provides a framework that prioritizes focus on core functions and ensures City Departments are working together to meet the needs of our residents and businesses as directed by the City Council. The priorities identified in the plan will guide decision-making to desired outcomes through strategies and specific actions. The priorities, strategies, and actions that make up the strategic plan evolve over time with the changing needs of the community and organization. • Priorities are broad guiding statements that describe the hopes of the community for the future. A priority may never be completely attainable, but it is used as a point towards which to strive. • Strategies describe what is needed to move the City in the direction of completing each priority. • Actions outline specific steps to be taken to achieve the strategy. Actions are further defined, detailed, and assigned as objectives within each departmental budget. Throughout the annual budget process, the City Council reviews and modifies the Plan as necessary and sets annual objectives for all departments (within departmental budgets) that are in line with the City's priorities. Discussion: The City Council will review and discuss the Strategic Plan (Attachment #1). The plan includes updates and edits (in redline) to reflect the Council's recent policy changes and priorities over the previous year, including the following updates: • City of Ukiah Climate Initiatives (Resolution 2022-44) • Ukiah 2040 General Plan • Updated sphere of influence (SOI) and relevant annexation policies and applications • Partnerships with Ukiah Valley water agencies • Downtown Streetscape Improvement Plan • Great Redwood Trail Page 268 of 277 Page 2 of 2 Recommended Action: Review the Ukiah City Council Strategic Plan and provide direction as may be warranted to update the document. BUDGET AMENDMENT REQUIRED: n/a CURRENT BUDGET AMOUNT: n/a PROPOSED BUDGET AMOUNT: n/a FINANCING SOURCE: n/a PREVIOUS CONTRACT/PURCHASE ORDER NO.: n/a COORDINATED WITH: Sage Sangiacomo, City Manager DIVERSITY-EQUITY INITIATIVES (DEI): Goal 2 – Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of our organization. Goal 5 – Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. CLIMATE INITIATIVES (CI): 6c – Ensure that climate responsibility is integrated throughout the City’s departments and operations. Page 269 of 277 Ukiah City Council Strategic Plan The Strategic Plan provides a comprehensive framework that prioritizes focus on core functions and ensures City Departments are working together to meet the needs of our residents and businesses. The priorities identified in the Plan will guide decision-making to desired outcomes through strategies and specific actions. The priorities, strategies and actions that make up the strategic plan evolve over time with the changing needs of the community and organization. During the annual budget process, the City Council reviews and modifies the Plan as necessary and sets annual objectives for all departments that are in line with the City’s priorities. In addition, successful development and implementation of the Strategic Plan requires continued engagement, collaboration, and review with our commissions and citizens. Outcomes The primary outcomes for the Strategic Planning Process are threefold: 1.Create alignment among Councilmembers, City Staff, and the Community about the top strategic priorities for the City of Ukiah. 2.Develop a set of operational principles that will guide the practices and decisions of the Council in focusing the strategic priorities. 3.Identify specific mechanisms for tracking these strategic priorities over time that will allow the Council and City Staff to make the necessary adjustments to achieve the strategic priorities. General Principles A set of accepted guidelines formed to capture values and priorities that transcend broadly to the strategic plan. Our strategies and approaches maintain or enhance the positive characteristics of our community. Our decisions reflect fiscal responsibility, reliability, sustainability, and affordability with an understanding and consideration of impacts to the entire organization. We look to partner with our community members to promote greater ownership and involvement in their services. We look for strategies that increase efficiencies while enhancing customer service. Where applicable, we adjust rates and fees to reflect changes in the economy and cost of services. Components of the Plan Priorities are guiding statements that describe desired outcomes for our community and organization. A priority may not be completely attainable, but it is used as a point towards which to strive. Strategies describe what is needed to move the City in the direction of completing each priority. Actions outline specific steps to be taken to achieve the strategy. Actions are further defined, detailed, and assigned as objectives within each departmental budget. Strategic Plan Priorities Enhance Our Neighborhoods: Foster a sense of small-town life by embracing our diversity and providing our residents with quality accessible services and vibrant places that reflect the diversity of cultures within our community (People, Places, & Services) Attachment 1 Page 270 of 277 Develop Quality Infrastructure: Evaluate strategies and best practices to develop and implement a prioritized plan for maintaining and improving public infrastructure and utilities Plan for the Future: Utilize sound principles for valley-wide planning that include a focused approach on identifying and leveraging partnerships for service delivery to increase efficiencies, capabilities, and resiliency. Grow our Businesses: Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues Value our Team: Ensure Council and staff work together to create a more diverse, inclusive, responsive, and effective workplace environment Page 271 of 277 Recommended Strategy: Build neighborhoods that provide access for all to a compatible balance of housing, employment, commercial, medical, education, and recreational resources. Actionable Items:  Implement a housing plan that works to support the development of all types of housing  Actively engage with our neighborhoods to align services with changing needs  Seek funding opportunities and partnerships to update and add park and recreational facilities  Work to preserve, conserve, and protect the natural resources/features of the Ukiah Valley and open space  Develop a Complete Streets transportation network that enables safe access for all users, including pedestrians, bicyclists, motorists, and transit riders of all ages and abilities. Recommended Strategy: Provide services that support a high quality of life for all residents Actionable Items:  Ensure the safety of our community through proactive and responsive community policing and fire services with a focus on ensuring that our team members have the appropriate training and resources  Promote healthy neighborhoods with access for all to quality recreational opportunities  Engage and conduct community-wide surveys to identify gaps and opportunities for changes or additions to our services and programs  Continue to wWork with partnering agencies and stakeholders to identify and address the needs of the community’s most underrepresented Recommended Strategy: Embrace new technology, set policy, and evaluate critical infrastructure to encourage and support environmentally sustainable community. Actionable Items:  Provide ongoing education and active engagement of City staff, members of committees and commissions, contractors, consultants, residents, and independent community groups in alignment with the goals of improving environmental standards and promoting sustainable policies Enhance Our Neighborhoods Foster a sense of small town life by embracing our diversity and providing our residents with quality, accessible services and vibrant places that reflect the diversity of cultures within our community (People, Places, Services) Page 272 of 277  Address the climate implications of all policies and actions that come before the Ukiah City Council that have the potential to impact greenhouse gas emissions, carbon sequestration, and disaster preparedness within the City  Implement the City of Ukiah Climate Initiatives (Resolution 2022-44) Identify and consider a list of actions to restore a safe climate Page 273 of 277 Recommended Strategy: Continue the development and maintenance of a comprehensive Capital Improvement Plan. Actionable Items:  Determine current conditions, needs and opportunities, and focus on specific capital improvement projects for the following areas: o Streets o Water o Sewer o Electric o Storm drains o Landfill Recommended Strategy: Identify and/or develop funding for essential and vital infrastructure for the long-term. Actionable Items:  Conduct regular evaluation of utility rates to ensure sustainability of services  Explore and seek grant funding  Evaluate a potential trench cut fee to protect the community’s investment Develop Quality Infrastructure Evaluate strategies and best practices to develop and implement a prioritized plan for maintaining and improving public infrastructure and utilities Page 274 of 277 Recommended Strategy: Review and revise land use planning documents to be reflective of the long-term vision for the community Actionable Items:  Implement the goals, policies, and programs in Update the Ukiah 2040 General Plan  Update the City of Ukiah’s sphere of influence (SOI)  Prepare and adopt submit annexation applications in alignment with the City of Ukiah’s updated sphere of influence (SOI) and annexation policiespolicies  Evaluate and amend the city zoning code to improve efficiencies/public service and protect natural resources Recommended Strategy: Analyze and consider opportunities for regional partnerships that support or improve the delivery of municipal services Actionable Items:  Develop tax sharing agreement with the County of Mendocino  Support and iImplement the participation agreement with the Ukiah Valley Sanitation District  Continue the development of a plan for the delivery of fire services for the Ukiah Valley  Support newly-dDeveloped partnerships with Ukiah Valley water agencies and finalize agreements to explore consolidated services for improved efficiency, capability and resiliency Plan for the Future Utilize sound principles for valley-wide planning that include a focused approach on identifying and leveraging partnerships for service delivery to increase efficiencies, capabilities, and resiliency. Page 275 of 277 Recommended Strategy: Identify and remove barriers to economic development while leveraging economic opportunities Actionable Items:  Leverage partnerships with other local agencies and stakeholders to provide economic development resources and services for the retention and recruitment of businesses.  Identify and support the development of public infrastructure needed to support growth Recommended Strategy: Develop and preserve the historic downtown as a regional center of civic and economic activity. Actionable Items:  Develop a plan to identify and attract anchor tenants to the downtown core  Continue efforts to affect positive change with the Palace Hotel  Coordinate with the County and State for a reuse plan for the Courthouse  Evaluate and implement Downtown Streetscape Improvement Plan (Phase II anticipated summer of 2023pending)  Support public infrastructure development at the Perkins Street Depot site in support of the courthouse development and buildout of the property.  Develop and implement an improved downtown parking plan  Continue to engage insupport the development of the Great Redwood Trail (Phase IV anticipated summer of 2023) Grow Our Businesses Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues. Page 276 of 277 Recommended Strategy: Promote the core values that are embedded in the operational culture of the organization. Actionable Items:  Develop organizational practices to embed the core values (Professionalism, Service, Teamwork, Innovation, and Safety) and improve diversity, equity, transparency, and justice Recommended Strategy: Develop open communication and workflow practices that cultivate invested team members and community awareness/involvement Actionable Items:  Support the implementation of the City’s Equity Action Plan  Develop and expand a public education and outreach plan  Continue to redesign City Council workflow calendaring and ad-hoc/committee files Value our Team Ensure Council and staff work together to create a more diverse, inclusive, responsive, and effective workplace environment Page 277 of 277