HomeMy WebLinkAbout02/23/2021Staff: Committee Members:
Chris Huot, Assistant City Manager Councilmember, Andrae Gonzales – Chair
Councilmember, Ken Weir
Councilmember, Eric Arias
REGULAR MEETING OF THE
BUDGET AND FINANCE COMMITTEE
of the City Council - City of Bakersfield
Tuesday, February 23, 2021
12:00 p.m.
City Hall North
1600 Truxtun Avenue, Bakersfield, CA 93301
First Floor, Conference Room A
AGENDA
SPECIAL NOTICE
Public Participation and Accessibility
February 23, 2021 Budget and Finance Committee Meeting
On March 18, 2020, Governor Gavin Newsom issued Executive Order N-29-20, which includes a waiver of Brown Act
provisions requiring physical presence of the Committee members or the public in light of the COVID-19 pandemic.
Based on guidance from the California Governor’s Office and Department of Public Health, as well as the County Health
Officer, in order to minimize the potential spread of the COVID-19 virus, the City of Bakersfield hereby provides notice that
as a result of the declared federal, state, and local health emergencies, and in light of the Governor’s order, the following
adjustments have been made:
1.The meeting scheduled for February 23, 2021 at 12:00 p.m. will have limited public access.
2.Consistent with the Executive Order, Committee members may elect to attend the meeting telephonically and to
participate in the meeting to the same extent as if they were physically present.
3.The public may participate in each meeting and address the Committee as follows:
•If you wish to comment on a specific agenda item, submit your comment via email to the City Clerk
at City_Clerk@bakersfieldcity.us no later than 5:00 p.m. the Monday prior to the Committee meeting.
Please clearly indicate which agenda item number your comment pertains to.
•If you wish to make a general public comment not related to a specific agenda item, submit your comment
via email to the City Clerk at City_Clerk@bakersfieldcity.us no later than 5:00 p.m. the Monday prior to the
Committee meeting.
•Alternatively, you may comment by calling (661) 326-3100 and leaving a voicemail of no more than 3 minutes
no later than 5:00 p.m. the Monday prior to the Committee meeting. Your message must clearly indicate
whether your comment relates to a particular agenda item, or is a general public comment. If your comment
meets the foregoing criteria, it will be transcribed as accurately as possible.
• If you wish to make a comment on a specific agenda item as it is being heard, please email your written
comment to the City Clerk at City_Clerk@bakersfieldcity.us. All comments received during the meeting may
not be read, but will be provided to the Committee and included as part of the permanent public record of
the meeting.
1. ROLL CALL
2. ADOPT FEBRUARY 5, 2021 AGENDA SUMMARY REPORTS
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Discussion and Committee Recommendation Regarding Annual Audit
Reports ending FY 2020 – McKeegan
B. Discussion and Committee Recommendation Regarding FY 2021-22 CDBG,
HOME, ESG Action Plan – Kitchen/Eaton/Carter
C. Discussion and Committee Recommendation Regarding FY 2021-22 CDBG
CV-3 Funds – Kitchen/Griego
5. COMMITTEE COMMENTS
6. ADJOURNMENT
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Committee Members
Staff: Chris Huot Councilmember, Andrae Gonzales – Chair
Assistant City Manager Councilmember, Ken Weir
Councilmember, Eric Arias
SPECIAL MEETING OF THE
BUDGET AND FINANCE COMMITTEE
Friday, February 5, 2021
9:00 a.m.
City Hall North – First Floor Conference Room A
1600 Truxtun Avenue, Bakersfield, CA 93301
AGENDA SUMMARY REPORT
The meeting was called to order at 9:00 a.m.
1. ROLL CALL
Committee members Present: Councilmember, Andrae Gonzales, Chair
Councilmember, Ken Weir
Councilmember, Eric Arias (participated by telephone)
City Staff Present: Christian Clegg, City Manager
Chris Huot, Assistant City Manager
Brianna Carrier, Administrative Analysts III
Joshua Rudnick, Deputy City Attorney
Randy McKeegan, Finance Director
Nick Fidler, Public Works Director
Zac Meyers, Assistant Public Works Director
Greg Ollivier, Assistant Solid Waste Director
Additional Attendees Present: Members of the Public
2. ADOPT FEBRUARY 18, 2020 AGENDA SUMMARY REPORT
The Report was adopted as submitted.
3. PUBLIC STATEMENTS
Riddhi Patel provided comments regarding her opposition to funding the Bakersfield Police
Department.
/s/ Chris Huot/s/ Chris Huot/s/ Chris Huot/s/ Chris Huot
DRAFT
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4. NEW BUSINESS
A. Discussion and Committee Recommendation Regarding Recycling Pilot Program –
Huot/Fidler
Assistant City Manager Huot introduced Public Works Director Fidler who provided a
PowerPoint presentation summarizing the Recycling Pilot Program in response to the
referral made by Councilmember Weir on March 25, 2020 City Council meeting.
Jacob Panero with Metropolitan Recycling LLC (MRC) Kern Refuse; provided comments
regarding the history between MRC and the City’s Public Works Department’s Solid Waste
Division.
Committee member Arias thanked staff for the thorough research and presentation.
Committee member Weir inquired about the type of recycling material processed at the
City’s Green Waste Facility. He also inquired about the costs associated with maintenance
the BARC facility. Public Works Director Fidler responded that the facility currently collects
and processes blue bin recyclables such as papers, cardboard, metals, glass (clear,
brown, and green), and rigid plastics, as well as green bin items and construction site
materials. As a materials recycling facility (MRF), the BARC facility processes commercial
and residential recyclable material. Costs associated with maintenance of the facility
include labor, supplies, and equipment as well as replacement of aging equipment.
Committee Chair Gonzales inquired about the BARC Pilot Program partnership and asked
if the facility would process blue bin recyclables only. Public Works Director Fidler stated
that the Pilot Program has been successful; staff have acquired real-world data regarding
the recycling market and costs. The City has worked with BARC to process recycling
material since the City’s curbside recycling program was implemented in 2003; they are
prepared to continue with a partnership. Mr. Fidler confirmed that the facility will process
50 percent of blue bin recyclables only.
Committee Chair Gonzales made a motion to present staff's recommendations to restore
the lease and contact agreements with BARC to continue operating their MRF as a pilot
program, submit a letter of interest to BARC to purchase their facility, and continue to
evaluate other considerations for mitigating recycling costs. The motion passed with
Committee Chair Gonzales and member Arias voting yes in favor of the motion and
Committee member Weir voting no, in opposition of the motion.
B. Discussion and Committee Recommendation Regarding Adoption of the 2021
Committee Meeting Schedule – Huot
The meeting scheduled was adopted as submitted.
5. COMMITTEE COMMENTS
There were no comments made.
6. ADJOURNMENT
The meeting adjourned at 10:07 a.m. DRAFT
ADMINISTRATIVE REPORT
MEETING DATE: 2/3/2021 Consent – Miscellaneous w.
TO:Honorable Mayor and City Council
FROM:Randy McKeegan, Finance Director
DATE:1/20/2021
WARD:
SUBJECT:Audit Reports to be Referred to Budget and Finance Committee:
1. Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020.
2. Agreed Upon Conditions Report for the fiscal year ended June 30, 2020.
3. Auditor Communication with Those Charged with Governance (SAS 114 Letter) for fiscal
year ended June 30, 2020.
4. Independent Auditors Report – Compliance with Contractual Requirements relative to the
Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2020.
5. Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of
Bakersfield for the fiscal year ended June 30, 2020.
6. Independent Auditors Report – Mechanics Bank Arena, Theater, Convention Center, Dignity
Health Amphitheatre, and Valley Children’s Ice Center for the fiscal year ended June 30,
2020.
7. Agreed Upon Procedures Report (Public Safety and Vital Services) for the fiscal year ended
June 30, 2020.
STAFF RECOMMENDATION:
Staff recommends referral to the Budget and Finance Committee.
BACKGROUND:
The City’s Comprehensive Annual Financial Report (CAFR), commonly referred to as the Annual Audit Report, for the fiscal year
ended June 30, 2020 will be provided to the City Council as part of the packet prior to this meeting. A copy of the report will also be
on file in the City Clerk’s office for public review. The CAFR represents the City’s financial statements as of June 30, 2020, which
are audited by the accounting firm of Brown Armstrong Accountancy Corporation. The current year audit opinion issued by the
outside auditors was “unqualified,” which indicates that the City complied, in all material respects, with accounting principles
generally accepted in the United States of America.
2. The Agreed Upon Conditions Report is designed to increase efficiency, internal controls and/or financial reporting and includes
any reportable conditions noted during the Audit. A summary of reported conditions are included in the report. The report also
addresses conditions identified in the prior year which have all been resolved to the auditors’ satisfaction.
3. The SAS 114 Letter provides information about our auditors’ responsibilities under auditing standards generally accepted in the
United States of America, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the
planned scope and timing of the audit.
4. Contract requirements contained in City of Bakersfield Agreement 76-153 as amended by Agreements 76-153(5), 76-153(4), 77-
44, 85-197 and 92-106 apply to operations of the Bakersfield Subregional Wastewater Management Plan. The City’s compliance
with contract requirements is audited on an annual basis. The current compliance report, issued by the outside auditors, is attached
for your review and indicates that there were no audit findings.
5. Attached is a letter from the City’s independent auditors Brown Armstrong Accountancy Corporation indicating they have
completed their annual review of the Appropriations Limit Worksheet prepared by the City in accordance with Section 1.5 of Article
XIIIB of the California Constitution (GANN Limit). This annual review is performed by the auditors as part of their contract to provide
auditing services to the City of Bakersfield. The agreed upon review procedures are substantially less in scope than an audit and
therefore no audit opinion is expressed regarding the calculation.
6. Attached is the independent audit report for the Mechanics Bank Arena, Theater, Convention Center, Dignity Health
Amphitheatre, and Valley Children’s Ice Center, for the fiscal year ended June 30, 2020. This audit report presents the financial
statements for this operational unit as of June 30, 2020. The management company (AEG) is required to submit an independent
audit report of their operations to the City after the end of each fiscal year. This audit report was prepared by the accounting firm of
Barbich, Hooper, King, Dill & Hoffman.
7. The Agreed Upon Procedures Report for the Public Safety and Vital Services measure is designed to increase efficiency, internal
controls and/or financial reporting and includes any reportable conditions noted during the Audit. This report is a requirement per the
guidelines stated in the Resolution No. 089-18 regarding the Public Safety and Vital Services measure. A summary of reported
conditions is included in the report.
Staff is recommending these reports be received and referred to the Budget and Finance Committee for review and discussion. The
reports will come back to the full Council for acceptance at a future meeting after the Committee review process is completed.
ATTACHMENTS:
Description Type
Blue Memo Cover Memo
CAFR Final 2020 Backup Material
AUC Report Final Backup Material
SAS 114 Letter Final Backup Material
Arena Financials Backup Material
CITY OF BAKERSFIELD
CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2020
Prepared by the Department of Finance
Randy McKeegan, Finance Director
On the Cover
Pedestrian Bridge
The Park at Riverwalk
Photo by Gilbert Vega
CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2020
Table of Contents
INTRODUCTORY SECTION PAGE
Table of Contents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ iii
GFOA Certificate of Achievement................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ ix
Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ x
Elected and Administrative Officers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ xi
FINANCIAL SECTION
Independent Auditors' Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 1
Management Discussion and Analysis................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 3
Basic Financial Statements
Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 21
Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 23
Governmental Funds:
Balance Sheet................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 27
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 29
Statement of Revenues, Expenditures and Changes in Fund Balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 31
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances
to the Government-Wide Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 33
Proprietary Funds:
Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 35
Statement of Revenues, Expenses and Changes in Fund Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 37
Statements of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 39
Fiduciary Funds:
Statement of Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 45
Statement of Changes in Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 46
Notes to the Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 48
Required Supplementary Information:
Budgetary Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Budgetary Comparison Schedule for the General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 106
Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 107
Budgetary Comparison Schedule for the Community Development Block Grant Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 107
Budgetary Comparison Schedule for the Gas Tax & Road Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 108
Budgetary Comparison Schedule for the Redevelopment Successor Agency - Housing................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................108
Defined Pension Plan - Schedules of Changes in Net Position Liability and Related Ratios &
Schedules of Plan Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 109
Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's
Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 112
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CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2020
Table of Contents
PAGE
Supplementary Information:
Balance Sheet - General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 118
Schedule of Revenues by Function - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 119
Schedule of Expenditures by Division - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 120
Special Revenue Funds:
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
-Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 124
Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance
-Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 129
Capital Projects Funds:
City Seal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................131
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
-Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 132
Internal Service Funds:
Combining Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 135
Combining Statement of Activities and Changes in Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 136
Combining Statement of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 137
Fiduciary Funds:
Statement of Changes in Assets and Liabilities - Fiduciary Funds Agency................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 138
Combining Statement of Fiduciary Net Position
-Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 139
Combining Statement of Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 140
Combining Statement of Changes in Fiduciary Net Position
-Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 141
Combining Statement of Changes in Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 142
Non-Major Governmental Funds
Combining Balance Sheet................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 144
Combining Statement of Revenues, Expenditures and Changes in Fund Balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 146
Long-term Debt Recorded in Private Purpose Trust Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 148
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CITY OF BAKERSFIELD
Comprehensive Annual Financial Report
Year Ended June 30, 2020
Table of Contents
PAGE
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 152
Changes in Net Position - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 154
Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 158
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 160
Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 162
Principal Property Taxpayers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 163
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 164
Property Tax Rates/Direct and Overlapping Governments - Last Ten fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 166
Property Taxes Levies and Collections - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 168
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 169
Taxable Sales By Market Groups - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 170
Sales Tax Revenue Payers By Industry - 2018 and Ten Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 172
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 174
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 176
Direct and Overlapping Debt as of June 30, 2019................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 178
Computation of Legal Debt Margin................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 179
Pledged - Revenue Coverage - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 180
Demographic and Economic Statistics - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 181
Principal Employers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 182
Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 184
Property Value, Construction and Bank Deposits - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 186
Operating Indicators by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 188
Capital Asset Statistics by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 190
Schedule of Insurance in Force................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 192
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January 25, 2021
Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:
I am pleased to submit the City of Bakersfield's (the “City”) Comprehensive Annual Financial Report
(CAFR) for the year ended June 30, 2020 in accordance with the requirements of our Municipal Code
which states that a complete financial statement and report be prepared at the end of each fiscal year
(Section 2.08.020F). This report was prepared by the City's Finance Department, which assumes
responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures. Because the cost of internal control should not exceed anticipated benefits the
objective is to provide reasonable, rather than absolute assurance that the financial statements are free
of any material misstatements. To the best my knowledge and belief, the enclosed data is accurate in all
material aspects and is reported in a manner that presents fairly the financial position and results of
operations of the City.
The accompanying financial statements of the City have been prepared in conformity with U.S. generally
accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards
Board (GASB).
Brown Armstrong, a firm of licensed certified public accountants, performed the annual independent
audit. The goal of the audit was to provide reasonable assurance that the basic financial statements of
the City are free of material misstatement. The independent auditor concluded, based upon the audit,
that the City’s financial statements for the fiscal year ended June 30, 2020, are fairly stated in conformity
with GAAP.
The independent audit of the financial statements of the City was part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair representation
of the financial statements, but also on the audited government’s internal controls and compliance with
legal requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City’s separately issued Single Audit
Report and may be obtained from the City’s website.
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 the MD&A and should be read in conjunction with it. The City of
Bakersfield’s MD&A can be found immediately following the report of the independent auditors,
beginning on page 3 of the financial section.
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GENERAL BACKGROUND
The City is located approximately one hundred miles north of Los Angeles in the southern San Joaquin
Valley. The City is the County seat for the County of Kern and maintains an incorporated area of 151
square miles with an estimated population of 392,756 as of January 1, 2020. Bakersfield operates under
the Council-Manager form of government. Policymaking and legislative authority are vested in the City
Council, which consists of a Mayor and a seven-member Council. The City Council is responsible for
passing the ordinances and operating resolutions, passing the annual budget, appointing commissions
and committees, and hiring the City Manager, and City Attorney, as well as many other related duties.
The City of Bakersfield is a Charter City founded in 1898 that offers a full range of services including:
• Fire and Police Protection
• Streets and Infrastructure Maintenance
• Planning and Building Services
• Economic and Community Development Services
• Parks and Recreation Services
• River & Agricultural Water and Domestic Water Services
• Municipal Airpark - General Aviation
• Refuse Collection
• Wastewater Treatment
This report includes the financial activities of the City and the Bakersfield Successor Agency. A more
detailed discussion of the reporting entity is provided in the notes to the financial statements.
MAJOR INITIATIVES
The Thomas Roads Improvement Program (TRIP) continues to progress through the various phases of
environmental, design, land acquisition and construction. The TRIP program uses a combination of local
funds, Transportation Impact Fees, and State and Federal road grants, which includes approximately
$570 million of Federal earmark funds approved by Congress in 2005. The City had three major TRIP
projects under construction during the fiscal year including the Centennial Corridor Mainline Freeway
($188 Million Budget), the Centennial Corridor Belle Terrace Bridge reconstruction ($4.5 Million Budget),
the Centennial Corridor Freeway Connector ($4.8 Million Budget), the 24th Street Widening ($4.4 Million
Budget), and the Beltway Operational improvements to State Routes 58 & 99 ($4.7 Million Budget).
Supplemental grant awards at both the State and Federal level have resulted in the remaining projects
planned to be constructed in the TRIP program to be fully funded, requiring no additional financing or
borrowing.
The City recognized the negative impact of homelessness in the community and undertook a number of
programs and projects designed to address the issues it creates. These endeavors included establishing
rapid response teams in both the Development Services and Recreations and Parks departments to
clean up homeless encampments and other negative impacts caused by that population. Also, funding
private clean-up services in the Downtown and Old Town Kern areas of the City. The landmark homeless
project undertaken this fiscal year was the purchase of a building that once renovated will become of
the Brundage Lane Navigation Center. This facility will provide bridge housing to the homeless in the area
and once completed could house up to 450 individuals. The total budget set aside for these homeless
projects totaled over $11.5 Million.
FACTORS AFFECTING FINANCIAL CONDITION
Local Economy and Local Budget Issues – At the start of the fiscal year, the local economy for the City of
Bakersfield continued to shows signs of growth and recovery in various industries, including oil & gas
production and agriculture. The 2019-20 budget was established with this positive outlook in mind and
v
projections through the third quarter (ending in March 2020) were at or above revenue estimates. That
positive outlook changed with the COVID-19 pandemic that has affected the global economy since the
Spring of 2020. As of October 2020, the State unemployment rate is over 9% and the Kern County rate
was at 12%. According to a recent report from the California Legislative Analyst’s Office on the State’s
budgetary outlook (November 2020), “A host of unknowns cloud the state’s economic outlook. Will virus
cases worsen further over the fall and winter? How soon will effective treatments or vaccines be widely
available? Can businesses continue to withstand diminished revenues in the face of rising debts? Will the
federal government take additional actions to support the economy?…These unknowns create an
unprecedented degree of uncertainty about the economic outlook.” It goes on to emphasize there is
little agreement among economists on where the economy will go in the future. We can examine the
results of the fiscal year 2019-20 with that backdrop of the economic uncertainty going forward.
Property tax revenues grew by 2.5% in fiscal year 2019-20 and are estimated to increase by an additional
4.0% in fiscal year 2020-21. These revenues are not expected to be adversely affected by the COVID-19
pandemic in the near-term but a prolonged epidemic could reduce property taxes significantly beyond
2020-21. The City initiated a local sales tax measure to increase the City rate by 1 percent to provide
additional revenue for a myriad of projects and needs that the City Council and management saw were
not being addressed. The district add-on tax, called the Public Safety and Vital Services (PSVS) measure,
was approved in November 2018 and went into effect April 1, 2019. This tax effectively doubled the sales
tax revenue received by the City when compared to prior years. Fiscal year 2019-20 was the first full year
for collections of this new tax. The PSVS funds are budgeted and accounted for separately within a sub-
fund of the General Fund and have a special oversight committee made up of nine City residents. The
funds are to be used to meet thirteen specific priorities (as identified in the ballot measure) to address top
community priorities including enhancing public safety, reducing homelessness and bolstering economic
development activities. The uncertainty in the State and National economy due to COVID-19 resulted in
a budgeted reduction of 5.5% (approximately $7.5 Million) in sales tax revenue going into 2020-21 but
current quarterly figures show the decreases are not as significant as expected. It should be noted that
the PSVS revenue stream is primarily earmarked for the fulfilling the thirteen established priorities
mentioned previously but the City Council can use portions of that sales tax revenue to address
economic instability.
To that end, The City Council adopted Resolution 91-19 on June 28, 2019 to create a more substantial
reserve to help mitigate potential financial downturns as well as create potential avenues to address the
increasing concern regarding the growing unfunded pension liabilities. This resolution created a five-year
plan that would increase the General Fund reserve equal to two months of operational costs and begin
to fund a Section 115 Pension Rate Stabilization Fund. This plan is subject to the availability of funds and
does not lock the City into any contributions that would be detrimental to the operations necessary to
serve the needs of the residents of Bakersfield. Based on the approved plan, the Council approved an
increase to the City’s cash basis reserve by $8 million using the PSVS funds for a total reserve of $34.3
million. Those reserves, along with a $4.6 million facilities reserve fund, provide an added level of
protection for the City. The Council continued to fund the City’s Other Post-Employment Benefits (OPEB)
costs for retiree medical benefits, maintaining the City of Bakersfield’s position as one of the few entities in
California that are making serious progress toward fully funding this long-term obligation.
Retirement costs will continue to escalate for all employee groups and over the next several years are
expected to increase by 21% ($14 million) by fiscal year 2025-26. This dramatic rise is a result of California
Public Employees’ Retirement System’s (CalPERS) changes to its actuarial methodology and their lower
than projected earnings in previous years. These methodology changes and resulting rate increases will
have a significant impact on retirement costs for the City. Actual CalPERS earnings over the past five
years have been 0.6%, 11.2%, 8.6%, 6.7%, and 4.7% respectively. The effects of annual investment
increases or decreases are smoothed over a 30-year period so even more significant increases in costs
are expected, but not necessarily in the near-term. CalPERS estimates the impact of the changes and
returns will increase our annual retirement benefit costs by approximately $3.0 million to $5.0 million per
year for the next five years.
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Long-Term Financial Planning - The City of Bakersfield continues to look forward in meeting our long-term
financial and operating needs. The increasing costs of retirement are of particular concern and continue
to be closely examined by the City. As the City grows both in population and in geographic area, there
will be a continued need to evaluate opportunities to become more efficient and effective in our efforts
to serve our community. The City recently entered into consulting contract which will result in a financial
model that will provide an integral tool for planning and budgeting going into the 2021-22 fiscal year and
well beyond.
Accounting System and Internal Controls - The City's accounting system is organized and operated on a
fund basis with each fund treated as a distinct self-balancing accounting entity. Various funds utilized by
the City of Bakersfield are fully described in Note 1 of Notes to the Basic Financial Statements. The City's
accounting records for general governmental operations are maintained on a modified accrual basis of
accounting, whereby revenues are recognized when measurable and available and expenditures are
recognized when materials and services are received. Accounting records for the enterprise and internal
service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when
earned and expenses are recognized when incurred.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or
disposition and (2) the reliability of financial records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control
should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires
estimates and judgments by management.
All internal control evaluations occur within the framework described previously. The City Finance
department believes that these internal accounting controls adequately safeguard assets and provide
reasonable assurance of proper recording of financial transactions. However, the City recognizes that
even sound internal controls have inherent limitations. Internal controls must be reviewed to ensure that
the City’s operating policies and procedures are being adhered to and that the controls are adequate
to assure accurate and reliable financial reporting and to safeguard the City’s assets.
Budgetary Controls - The objective of these budgetary controls is to ensure compliance with legal
provisions embodied in the annual appropriated budget approved by the City Council. Project length
financial plans are adopted for the capital projects funds. The level of budgetary control is established at
the fund level. The City also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Unencumbered amounts lapse at year-end. However, encumbrances
and certain capital projects are re-appropriated as part of the following year's budget. The 2019-20 City
of Bakersfield appropriation limit established as required by state statute was $429,959,287.
Cash Management - The City maintains a cash and investment pool that is available for use by all funds,
except the Fire Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined
balance sheet as cash and short-term investments. The deposits and investments of the Fire Pension Trust
Fund are held separately from other City funds.
The City Council has adopted an investment policy in accordance with California Government Code
Sections 53607 and 53646, with a goal to minimize credit and market risks while maintaining a competitive
yield on its portfolio. The City is also governed by State statutes authorizing the City to invest in bonds or
other evidences of indebtedness of the U.S. Government or any of its agencies and instrumentalities,
repurchase agreements and bankers’ acceptances. The pension trust investments are administered
separately under Municipal Code Section 2.92, which is within state guidelines.
OTHER INFORMATION
vii
Independent Audit - The City Charter requires an annual audit by independent certified public
accountants. The City Council also adopted a policy regarding auditor rotation that encourages
competitive bidding on a five-year cycle. The accounting firm of Brown Armstrong Accountancy
Corporation was selected by the City Council in 2017 to perform the annual audit for the 2016-17 fiscal
year. This audit year (2019-20) is the fourth year of the five-year agreement with this firm.
Awards - The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bakersfield for
its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2019, marking the thirty-
ninth consecutive year Bakersfield has received the GFOA certificate. The Certificate of Achievement is
a national award recognizing conformance with the highest standards for preparation of state and local
government financial reports.
A Certificate of Achievement is valid for a period of one year only. We believe our current report
continues to conform to Certificate of Achievement Program requirements and we are submitting it to
GFOA to determine its eligibility for another certificate.
Additionally, the City received the Distinguished Budget Presentation Award for the fiscal year beginning
July 1, 2019 from the GFOA. The Distinguished Budget Presentation Award judges a government's budget
document for compliance with the guidelines established by the National Advisory Council on State and
Local Budgeting and best practices of the GFOA.
Acknowledgments - The preparation of this report in a timely manner could not be accomplished without
excellent work performed by the entire staff of the Finance Department. I should like to express my
gratitude to all members of the Department who assisted and contributed to its preparation. I should also
thank the Mayor, City Council and the City Manager for their steadfast support in planning and
conducting the financial operations of the City in a professional and progressive manner.
Respectfully,
Randy McKeegan
Finance Director
viii
ix
x
CITY OF BAKERSFIELD
June 30, 2020
City Council
Karen K. Goh .......................................................................................................................Mayor
Willie Rivera ........................................................................................................Member/Ward 1
Andrae Gonzales ...................................................................................................Member/Ward 2
Ken Weir .............................................................................................................Member/Ward 3
Bob Smith ......................................................................................................Vice Mayor/Ward 4
Bruce Freeman ....................................................................................................Member/Ward 5
Jacquie Sullivan ....................................................................................................Member/Ward 6
Chris Parlier ..........................................................................................................Member/Ward 7
Administrative Personnel
Christian Clegg........................................................................................................City Manager
Virginia Gennaro .....................................................................................................City Attorney
Christopher Boyle......................................................................... Development Services Director
Randy McKeegan ..............................................................................................Finance Director
Anthony Galagaza.........................................................................................................Fire Chief
Greg Terry ...............................................................................................................Police Chief
Nick Fidler ................................................................................................Public Works Director
Dianne Hoover ................................................................................Director Recreation & Parks
Art Chianello ......................................................................................Water Resources Manager
xi
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2
CITY OF BAKERSFIELD
Management's Discussion and Analysis
This discussion and analysis of the City of Bakersfield’s (City) financial performance provides an overview of the City’s
financial activities for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in
conjunction with the accompanying letter of transmittal, the basic financial statements, and the accompanying notes to those
financial statements.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at
the close of the most recent fiscal year by $2.0 billion (net position).
The City’s total net position increased by $39.8 million over the prior fiscal year. This increase is broken down with
changes to the following components of net position; a $3.9 million decrease in restricted net position, a $0.5 million
increase in unrestricted net position, and a $45.8 million increase in capital assets investment. Prior year information
presented in this section does not take into account restatements made to fiscal year 2018-19 balances for prior
period adjustments (see Note 23).
As of the close of the current fiscal year, the City's Governmental Funds reported combined ending fund balances of
$213.6 million, an increase of $27.1 million in comparison with the prior year. Amounts available for spending
include restricted, committed, assigned and unassigned fund balances. Of this amount, $15.1 million is restricted by
law or externally imposed requirements, $141.3 million is committed for specific purposes, $56.2 million assigned.
There was no unassigned and available balance at year end in part due to over $7.5 million expended to address the
COVID-19 pandemic. Those funds will be reimbursed in the subsequent fiscal year through Federal assistance.
Available fund balance for the General Fund increased $14.1 million to $68.7 million, which equates to 30.1% of
total General Fund expenditures for the year.
The City's long-term debt showed a decrease of $26.0 million during the current fiscal year.
Note: Further analysis of the changes and balances highlighted can be found in detail provided in this section.
3
CITY OF BAKERSFIELD
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a
manner similar to a private-sector business. The statements present the financial picture of the City from the economic
resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type
activities separately. Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards
Board (GASB) statements in regards to interfund activity, payables and receivables.
The Statement of Net Position and the Statement of Activities provide information about the City as a whole and its activities
through the fiscal year. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of
resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.
These two statements report the City's net position and changes in it. Net position is the difference between assets deferred
outflows of resources, liabilities, and deferred inflows of resources providing a measurement of the City's financial health. Over
time, increases or decreases in the City's net position can be an indicator of whether its overall financial health is improving or
deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base. The government-wide
financial statements do not include the fiduciary funds, which comprise the private purpose trust funds, pension trust funds, and
agency funds. Resources in the fiduciary funds are generally not available to support the City’s own programs.
In the Statement of Net Position and the Statement of Activities, we separate the City activities as follows:
Governmental activities - Most of the City's basic services are reported in this category, including the General Government,
Police, Fire, Public Works, Recreation & Parks and Development Services. These activities are generally financed by property
and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants.
Business-Type activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides.
The City's Water, Wastewater, and Refuse Collection systems along with the Municipal Airport and Offstreet Parking activities
are reported in this category.
4
CITY OF BAKERSFIELD
Management's Discussion and Analysis
FUND FINANCIAL STATEMENTS
A fund is a specific grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities and objectives. Like other state and local government, the fund financial statements provide detailed
information about the most significant funds, not the City as a whole. Some funds are required to be established by State law
and by bond covenants. Management establishes many other funds to help control and manage financial resources for particular
purposes, or to show that the City is meeting legal responsibilities when using certain taxes, grants, and other revenue.
These financial statements include statements for each of three categories of activities – governmental, proprietary and
fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified
accrual basis of accounting. The proprietary activities are prepared using the economic resources measurement focus and the
accrual basis of accounting. The fiduciary activities are agency funds that also use the economic resources measurement focus
but only report a balance sheet. Reconciliation of the Governmental Fund Financial Statements to the Government-Wide
Financial Statements are provided to explain the differences created by the integrated approach.
Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on the flow of
resources into and out of those funds with the balances remaining at year-end available for appropriation. These funds are
reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be
converted to cash. The Governmental Fund financial statements focus on near-term inflow and outflow of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financial requirements. The differences of results in the Governmental Fund financial
statements to those in the Government-Wide financial statements are explained in a reconciliation schedule following the
Governmental Fund financial statement in order to facilitate comparison.
Proprietary Funds - Proprietary Funds are used to report services the City charges to all of its customers, which may include
units within the City. Proprietary Funds are reported in the same way that all activities are reported in the Statement of Net
Position and the Statement of Activities. The City's Enterprise Funds report the same functions as the business-type activities
reported in the Government-Wide financial statements, but provide more detail and additional information, such as cash flows.
The City uses Internal Service Funds (the second component of Proprietary Funds) to report activities that provide supplies and
services for the City's other programs and activities. This includes the City's Self-Insurance and Equipment Management Funds.
These services primarily benefit governmental rather that business-type functions so a majority of the related operation costs are
included with the governmental activities in the Government-Wide financial statements.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City's
fiduciary activities are reported in separate Statements of Fiduciary Net Position. These resources are not available to support
the City's programs or operations activities and are thereby excluded from the City's other financial statements. The City is
responsible for ensuring that the assets reported in these funds are used for their intended purposes.
NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided
in the Government-Wide and Fund financial statements. The notes can be found starting on page 48 of this report.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain “Required Supplementary
Information” concerning the City's progress in funding its obligation to provide pension benefits and other post-employment
benefits (OPEB) to its employees and budgetary comparison schedules for the General Fund and Special Revenue Major Funds.
This information can be found starting on page 105 of this report.
5
CITY OF BAKERSFIELD
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As previously noted, net position may serve over time as a useful indicator of a government’s financial position. In the current
year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.0 billion
at the close of the reporting period, which is a $42.3 million increase in comparison with the prior year (after restatements).
The largest portion of the City’s net position relates to its net investment in capital assets of $2.1 billion (e.g., land, buildings,
machinery, infrastructure and equipment), less any related debt used to acquire those assets that is still outstanding. These
capital assets are used to provide services to citizens; as such, these assets are not available for future expenditures. The City’s
investment in capital assets is reported net of related debt, though it should be noted that the resources needed to repay this debt
must be provided from other sources as the capital assets themselves cannot be used to service this debt.
A small portion of the City’s net position, $35.3 million (1.7% of the total), represents resources that are subject to external
restrictions on how they may be used.
As in the prior year, the City is able to report positive balances in both categories of net position, whether for the City as a
whole or for its separate Governmental and Business-type activities.
The following table presents the components of the government-wide Statement of Net Position at the end of the fiscal year for
both 2019 and 2020. The governmental and business-type activities columns reflect amounts that have been restated in this
financial report. Note 23 explains any prior period adjustments that changed net position.
City of Bakersfield - Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2019 2020 2019 2020 2019 2020
Assets
Current and other assets $326,209 $355,991 $189,182 $188,795 $515,391 $544,786
Capital assets (net)1,330,859 1,358,150 890,918 882,790 2,221,777 2,240,940
Total assets 1,657,068 1,714,141 1,080,100 1,071,585 2,737,168 2,785,726
Deferred Outflows of Resources 95,296 83,306 17,511 15,535 112,807 98,841
Liabilities
Long-term liabilities
outstanding 536,281 537,638 230,239 206,296 766,520 743,934
Other liabilities 49,003 54,993 15,683 16,345 64,686 71,338
Total liabilities 585,284 592,631 245,922 222,641 831,206 815,272
Deferred Inflows of Resources 25,794 33,019 3,032 3,991 28,826 37,010
Net Position
Net investment in capital assets 1,316,113 1,347,391 720,818 735,284 2,036,931 2,082,675
Restricted 18,976 15,079 20,200 20,200 39,176 35,279
Unrestricted (193,801)(190,673)107,639 105,004 (86,162)(85,669)
Total Net Position $1,141,288 $1,171,797 $848,657 $860,488 $1,989,945 $2,032,285
6
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Governmental Activities – Total assets for governmental activities increased by $57.1 million, with current and other assets in
governmental activities increasing by $29.8 million and a capital assets increase of $27.3 million. Total liabilities increased by
$7.3 million, with other liabilities increasing by $6.0 million and long-term liabilities increasing by $1.4 million.
Of the $30.5 million increase in governmental activities total net position, unrestricted net position increased by $3.1 million,
net investment in capital assets increased by $31.3 million and restricted net position decreased by $3.9 million. Net investment
in capital assets increased due to continued development throughout the City increasing the value of overall infrastructure. The
increase in unrestricted net position stems primarily from decreases in the other post-employment benefit liability offset in part
by increases in pension liabilities.
Business-Type Activities – Total assets for business-type activities decreased by $8.5 million, with current and other assets
decreasing by $0.4 million and a $8.1 million decrease in capital assets. Total liabilities decreased by $23.3 million, with other
liabilities increasing by $0.7 million and long-term liabilities also decreasing by $23.9 million. Total net position for business-
type activities increased by $11.8 million. Of that amount, net investment in capital assets increased by $14.5 million.
Restricted net position remained constant and unrestricted net position decreased by only $2.6 million. The overall increase in
net position is the result of completed improvement projects in the Wastewater, Refuse and Agriculture Water funds. There was
also a decrease in the net other post-employment benefit liability offset slightly by the continued increases in pension related
liabilities that increased net position.
Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2019 and 2020. The City’s total revenues
of $595.4 million were more than expenses of $555.6 million for an increase in net position before transfers & other items of
$39.8 million. The governmental and business-type activities columns reflect amounts that have been restated in this financial
report. Note 23 explains any prior period adjustments that changed net position.
City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2019 2020 2019 2020 2019 2020
Revenues:
Program revenues:
Charges for services $57,472 $55,071 $125,940 $127,476 $183,412 $182,547
Operating grants and
contributions 11,411 17,271 8,407 7,588 19,818 24,859
Capital grants and
contributions 78,709 109,448 11,978 10,120 90,687 119,568
Total program revenues 147,592 181,790 146,325 145,184 293,917 326,974
General revenues:
Taxes:
Property taxes 83,544 85,559 --83,544 85,559
Sales taxes 94,622 148,259 --94,622 148,259
Other taxes 1,525 1,342 --1,525 1,342
Intergovernmental:
Intergovt, unrestricted 186 308 --186 308
Grants and contributions not
restricted to specific programs 25,238 24,764 --25,238 24,764
Investment earnings 2,709 1,707 5,046 3,672 7,755 5,379
Miscellaneous 1,475 2,671 --1,475 2,671
Gain on sale of property 101 4 25 133 126 137
Total Revenues 356,992 446,404 151,396 148,989 508,388 595,393
7
CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2019 2020 2019 2020 2019 2020
Expenses:
Governmental:
General government 31,112 40,385 --31,112 40,385
Public safety - Police 106,341 120,286 --106,341 120,286
Public safety - Fire 46,537 49,285 --46,537 49,285
Public works 126,436 170,924 --126,436 170,924
Recreation and parks 20,686 26,173 --20,686 26,173
Development services 8,221 13,409 --8,221 13,409
Interest on long-term debt 17 8 --17 8
Subtotal - Governmental 339,350 420,470 --339,350 420,470
Business-Type:
Wastewater treatment --43,492 41,863 43,492 41,863
Refuse collection --52,077 56,297 52,077 56,297
Agricultural water --4,470 5,110 4,470 5,110
Domestic water --26,859 30,901 26,859 30,901
General aviation --480 633 480 633
Offstreet parking --291 289 291 289
Subtotal - Business-Type --127,669 135,093 127,669 135,093
Total expenses 339,350 420,470 127,669 135,093 467,019 555,563
Change in net position before
transfers & other items 17,642 25,934 23,727 13,896 41,369 39,830
Transfers 4,058 2,064 (4,058)(2,064)--
Changes in net position 21,700 27,998 19,669 11,832 41,369 39,830
Net Position - Beginning of
Year (as restated)1,119,588 1,143,799 828,988 848,656 1,948,576 1,992,455
Net Position - End of Year $1,141,288 $1,171,797 $848,657 $860,488 $1,989,945 $2,032,285
Governmental Activities – The results in governmental activities caused an increase in the City’s net position by $28.0 million
during the year. The following graph displays the difference between the program revenue and expenses by activity to illustrate
the amount each respective activity is supported by program revenues. Public Safety and Recreation and Parks service delivery
costs exceeded program revenues by $155.5 million and $8.6 million, respectively. Public Safety programs rely heavily on
taxes to support their operations whereas Recreation and Parks relies on both taxes and charges for services to support their
operations. This fiscal year Public Works service delivery costs exceeded program revenues by $42.7 million because a
significant portion of its services are also tax supported.
8
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Total expenses in Governmental Activities had a net increase of $81.1 million from the previous fiscal year for an overall
23.9% increase. A review of all functions of governmental activities shows increases. The largest increases were in Public
Works with an increase at $44.5 million, Public Safety-Police which increased by $13.9 million, and General Government with
an increase of $9.3 million. These increases are primarily connected to the increases initiated to meet the goals of the Public
Safety and Vital Services (PSVS) district tax measure. The funds were to be directed toward increases in staffing and services
for police and fire, addressing homelessness in the community, increases in City rainy-day reserves and increasing opportunities
for economic development. A portion of these cost increases also related to increases to California Public Employees'
Retirement System (CalPERS) rates in the current year.
9
CITY OF BAKERSFIELD
Management's Discussion and Analysis
The taxes category is the largest revenue source for governmental activities, amounting to $235.2 million or 52.7% of total
revenues. Capital grants and contributions is also a significant revenue source for the City’s governmental activities, amounting
to $109.4 million or 24.5% of total revenues. The third most significant sources of revenue is charges for services, amounting
to $55.1 million or 12.3% of total revenues.
Governmental Activities Revenues increased $89.4 million which is a 25.0% increase compared to the previous fiscal year.
This increase is due primarily to a 26.4%, or $55.2 million, increase in General Revenues and a 23.2%, or $34.2 million,
increase in Program Revenues.
General Revenues - Sales tax revenues increased by 56.7%, or $53.6 million, while property taxes increased by 2.4%, or $2.0
million. The primary reason for this increase is from the PSVS district tax which is a new source of revenue that was approved
by residents in November 2018. This was the first fiscal year in which the City received a full 12-months from this revenue with
the 2018-19 amount covering just half a year. There has also been and overall increase in sales tax related to the Wayfair
Supreme Court decision which resulted in higher collection from online sales.
Program Revenues - Capital Grants and Contributions increased by $30.7 million due to a more special projects funded in
Public Works compared to the prior year. The most significant reduction is related to the Thomas Roads Improvement Program
(TRIP) projects which included increases in activity related to construction and property acquisition when compared to the
previous year. Operating Grants and Contributions increased $5.9 million with the majority of the increase due to more
entitlement funds received from the Department of Housing and Urban Development in the current year and an increase in State
grants received to address the homelessness issues within the City.
10
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type Activities – The City operates six Enterprise Funds that offer wastewater services, refuse collection, river &
agricultural water, domestic water to City residents, downtown parking and a municipal airport.
Business-type activities increased the City’s net position by $11.8 million during the current year. The chart above compares
total program revenues and expenses.
Program revenues exceeded program expenses in Wastewater Treatment by $6.6 million, Refuse Collection by $0.8 million,
River & Agricultural Water by $2.1 million, and Domestic Water by $0.9 million These increases were offset slightly by
program expenses exceeding program revenues in both the Airpark and Offstreet Parking funds by close to $318 thousand in
total.
Total expenses increased by $7.4 million (5.8%) over the prior year.
The following chart illustrates the distribution of business-type revenues by category. The City’s business-type activities rely
heavily on charges for services to fund their operations, making up 85.6% of total revenues. Capital grants and contributions is
the second largest revenue source at 6.8% of total revenues.
11
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type activities program revenues decreased by $1.1 million, (0.8)%, over the prior year. The decrease is attributable
to reductions in contributions from developments infrastructure completed when compared to the previous year. There was a
slight increase in Refuse Collection service revenue of $1.5 million due to rate increases and additional residential service
customers that offset a portion of the decrease in grant revenue. There were increases in revenue in Domestic Water of $0.5
million, which was also connected to an increase in rates, and decreases of $2.5 million in River & Agricultural Water revenue
due to a large, one-time sale of water made in the prior year. An decrease in the Wastewater Treatment revenue was primarily
connected to a drop in capital contributions of $1.9 million from less development completed in the area and consequently
decreases in related infrastructure added in the current year for that activity.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
A fund is created and segregated for the purpose of carrying out specific activities or attaining specific objectives in accordance
with special regulations, restrictions, or limitations. Activity not required to be reported in a separate fund is included in the
General Fund.
Governmental Funds - 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. In particular,
unassigned fund balance may serve as a useful measure of the City’s available resources as it represents the portion of fund
balance which is not limited to use for a particular purpose by an external party, City management or City Council.
As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending fund balances of $213.6
12
CITY OF BAKERSFIELD
Management's Discussion and Analysis
million, an increase of $27.1 million in comparison with the prior year. The components of total fund balance are as follows
(for more information see Note 14 – Fund Balances):
Nonspendable fund balance, $1.0 million, are amounts that are not spendable in form, or are legally or
contractually required to be maintained intact, and are made up of prepaid expenses and deposits.
Restricted fund balance, $15.1 million, consists of amounts with constraints put on their use by external creditors,
grantors, contributions, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1)
$8.7 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $2.5 million from the Redevelopment
Successor Agency Housing Fund for projects and (3) $3.0 million for traffic safety projects.
Committed fund balance, $141.3 million, are amounts for specific purposes determined by the Bakersfield City
Council, such as funds collected from fees paid to mitigate the traffic impacts to the regional circulation system of
$53.3 million, funds set aside for future city facilities and infrastructure project $23.2, funds set aside by City
Council in the General Fund for cash basis/emergency reserves of $26.6 million and $22.4 million for appropriations
for next year’s budget.
Assigned fund balance, $56.2 million, for funds set aside by management for specific purposes. Amounts include
$34.9 million set aside for capital projects and $2.5 million for the fund purposes related to transient occupancy fees,
and $22.4 million for PSVS fund balance. Those available funds are set aside for future projects that will meet the
intended uses of those funds in accordance with the sales tax ballot measure.
Unassigned fund balance, represents the residual classification for the City’s General Fund. There is no balance in
the current due to funds deferred for Coronavirus Aid, Relief, and Economic Security (CARES) Act reimbursements,
not able to be recognized in the current fiscal year because of accounting guidelines. Over $7 million in expenditures
were incurred which will be recognized in the subsequent year and rebuild the unassigned balance.
General Fund: The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the General
Fund’s total fund balance increased by 25.8%, or $14.1 million from $54.6 million to $68.7 million. The following detail of
changes from the prior year explains this change in fund balance for the year:
Total operating revenues increased by $57.3 million (25.4%). Property Tax revenue increased by $2 million due to
continuation of higher assessed values within the City limits. Sales Tax revenue had the most significant increase
with a full fiscal year of receipts from the new PSVS district tax and improvements in the base (Bradley-Burns)
portion resulting in an increase of $53.6 million. Both components of sales tax also saw an increase due to the
previously mentioned Wayfair decision which added more sales tax revenue from online purchases. All other
revenue sources within the General Fund remained fairly consistent compared to the previous fiscal year.
Total expenditures increased by $20.7 million (a 10% increase). This was due to increases in the Public Safety costs
in both Police and Fire expenditures related primarily to PSVS funded hiring along with filling some vacancies ($9.4
million and $4.3 million, respectively). Overall personnel expenditures also increased throughout all General Fund
departments due to hiring related to PSVS programs and increases in pension costs.
Other governmental funds: As compared with the prior year, the total fund balances of the remaining governmental funds
increased by 9.8%, or $13.0 million, to $144.9 million with the following significant changes:
The Gas Tax and Road Fund decreased by $4.2 million from $12.9 million to $8.7 million. Amounts in this fund are
restricted by state and federal statute. The decrease is due to multiyear projects continuing to wind down and others
in various stages of completion.
The Capital Outlay Fund increased by $14.8 million from $55.6 million to $70.4 million. Of this amount, $29.7
million is committed for contractual obligations and $4.9 million is committed for facility replacement. The
remaining amount of $34.9 million is assigned and available for use at management’s discretion. The resulting
decrease shows that expenditures were in line with projected revenues.
The Park Improvement Fund increased by $0.8 million. Of this amount, $5.6 million is committed for contractual
13
CITY OF BAKERSFIELD
Management's Discussion and Analysis
obligations. The increase in fund balance is and accumulation of funds connected to future plans for expansion and
improvement of area parks.
Proprietary Funds - The City’s Proprietary Funds are shown in their entirety in the government-wide financial statements. All
funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.
The Wastewater Treatment Fund has total net position of $541.1 million at the end of the current year, an increase of $8.5
million over the prior year. Total net position includes $482.1 million net investment in capital assets and $20.2 million of
restricted assets which are not available to cover current expenses. The remaining net position of $38.8 million is unrestricted
and available to cover current operating and capital needs (including plant and equipment replacement) of the fund. The
majority of the increase resulted from more development completed to infrastructure in the current year which was reflected in a
$7.7 million addition in Capital Contributions.
The Refuse Collection Fund has total defiti in net position of $(1.8) million at the end of the current year, a decrease of $1.2
million from the prior year. The decrease is due to less revenue collected from residential services/rates than is necessary to
cover the operating costs of the division including overall increases to the City's recycling program which has had significant
cost increases brought on by the lack of a market for those materials. The decreases is also connected to the pension and OPEB
costs that are being reported in the fund. Further review of the rates charged to customers will occur to establish a rate sufficient
to cover these costs in future years and to address the deficit in net position.
The River and Agricultural Water Fund has total net position of $31.2 million at the end of the current year, an increase of $2.2
million over the prior year. Total net position includes $18.2 million net investment in capital assets, which is not available to
cover current expenses. The remaining net position of $13.0 million is unrestricted and available to cover current operating and
capital needs of the fund. As in the prior year, revenues were more than sufficient to cover the fund costs resulting in this
continued increase in net position.
The Domestic Water Fund has total net position of $273.0 million at the end of the current year, an increase of $1.9 million
over the prior year. Total net position includes $219.6 million net investment in capital assets, which is not available to cover
current expenses. The remaining net position of $53.4 million is unrestricted and available to cover current operating and
capital needs of the fund.
The General Aviation Fund has total net position of $11.3 million at the end of the current year, a decrease of $191,750
compared to the prior year. Total net position includes $10.5 million net investment in capital assets, which is not available to
cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of
the fund.
The Offstreet Parking Fund has total net position of $1.0 million at the end of the current year, a decrease of $77,903 compared
to the prior year. Total net position includes $0.9 million net investment in capital assets, which is not available to cover
current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the
fund.
14
CITY OF BAKERSFIELD
Management's Discussion and Analysis
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30 of the
current fiscal year amounts to $2.2 billion (net of accumulated depreciation). This investment in capital assets includes land,
buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in
progress. The total increase in the City’s investment in capital assets for the current fiscal year was $19.2 million. Of this
amount, a $27.3 million increase relates to Governmental Activities and a $8.1 million decrease that relates to Business-Type
Activities. Depreciation expense of $96.8 million reduced capital assets by this amount.
These financial statements include infrastructure assets constructed or acquired through fiscal year 2019-20.
Major capital asset events during the current fiscal year included the following:
A variety of street construction projects and rehabilitation of major arterial streets. Construction in progress for
governmental activities as of the end of the current fiscal year is $117.3 million. This figure includes over $112.8
million towards major street construction, traffic signals, and resurfacing projects throughout the City.
The City added over $21.0 million in new streets and roads primarily due to new residential developments completed
in the current year. These newly constructed right of ways are transferred over to the City by the various developers
when the work is finalized.
City of Bakersfield - Capital Assets
(in thousands)
Governmental Activities Business-Type Activities Total
2019 2020 2019 2020 2019 2020
Land and water storage rights $449,360 $449,888 $23,630 $23,630 $472,990 $473,518
Depreciable buildings, property,
equipment and infrastructure, net 775,947 790,970 779,191 815,687 1,555,138 1,606,657
Construction in progress 105,552 117,292 56,621 11,996 162,173 129,288
Non-amortizable intangible assets --31,477 31,477 31,477 31,477
Total Capital Assets $1,330,859 $1,358,150 $890,919 $882,790 $2,221,778 $2,240,940
15
CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
Balance Incurred Satisfied Balance
June 30, 2019 or Issued or Matured June 30, 2020
Governmental Activities
Notes Payable $6,111,476 $-$(1,227,678)$4,883,798
Certificates of Participation*8,635,000 -(2,760,000)5,875,000
Total governmental activities $14,746,476 $-$(3,987,678)$10,758,798
Business-Type Activities
Revenue Bonds Payable $160,129,574 $10,525,000 $(31,828,241)$138,826,333
Notes Payable 1,504,252 -(752,125)752,127
Total business-type activities $161,633,826 $10,525,000 $(32,580,366)$139,578,460
Total Debt $176,380,302 $10,525,000 $(36,568,044)$150,337,258
* Certificates of Participation in governmental activities are debt of the former Redevelopment Agency that is now
reported as City debt.
Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $150.3 million. The
City’s total debt decreased by a net amount of $26.0 million during the current fiscal year. This amount is the result
of normal debt maturities along with the partial defeasance and refinance of a callable portion of the 2015
Wastewater Bond.
Certificates of Participation issued by the City via the former Redevelopment Agency in 2006 carry a Reserve Fund Surety from
Ambac Assurance Company (Ambac). Moody’s Investor’s Service (Moody’s) rating on Ambac is currently “Baa1”. The
current underlying rating on the Certificates of Participation has not been revised (currently “A1”). This rating on the
Certificates of Participation reflects only the view of Moody’s, and any desired explanation of the significance of such rating
should be obtained from Moody’s. There is no assurance that such rating will continue for any given period of time or that such
rating will not be revised or withdrawn by Moody’s if, in the judgment of Moody’s, circumstances so warrant.
The 2015 Wastewater Revenue Bonds – Series A, issued by the City in 2015, which redeemed a majority of the 2007
Wastewater Revenue Bonds – Series A, has an “Aa2” rating from Moody’s and an "AA" rating from Standard & Poors. There
is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised or withdrawn
by the rating agencies if, in their judgment, circumstances so warrant.
More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial
statements. See Note 5 for capital assets and Note 11 for long-term debt.
16
CITY OF BAKERSFIELD
Management's Discussion and Analysis
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget reflect an increase in resources of $8.5 million and an
increase in appropriations of $13.3 million. Significant budgetary amendments (changes) are summarized as follows:
$1.6 million increase in various resources and appropriations due to revenues associated with open purchase orders
at the end of the previous fiscal year. Also, $0.8 million increase in various resources due to revenues associated
with prior year appropriations not spent and carried forward to this fiscal year.
$6.1 million was added to the budget for updated revenue estimates of PSVS district sales tax designated to address
needs throughout Bakersfield including public safety, economic development and homelessness.
$1.7 million increase in resources and appropriations for local housing assistance funded by the State of California
and awarded to the Development Services department.
The final amended revenue estimate budget figures in the General lower than actual revenue by $3.6 million and appropriations
were higher than actual expenditures by $31.0 million. Significant differences between budget and actual amounts are as
follows:
$3.8 million positive variance in tax revenue. This is the result of an increase in property tax revenue and sales and
use tax revenue. Property tax revenue was initially estimated to increase while Sales tax revenue were not expected
to increase at the level experienced. Projections for tax revenue were conservative in nature because of uncertainty
throughout the year on the level and sustainability of economic recovery in the area.
$1.4 million less than budgeted in intergovernmental revenue which is due primarily to this source of funds being
based on reimbursement of expenditures incurred. Some of the project activity for these awards had not moved
forward resulting in less revenue being recognized.
$5.7 million variance of appropriations over actual expenditures in Public Safety-Police. The savings are due
primarily to salary and benefit savings from unfilled positions or positions filled later in the year.
$7.9 million variance of appropriations over actual expenditures in Development Services. The savings are due
primarily to salary and benefit savings from unfilled positions plus some grant funded projects that were budgeted
but not started. This in part connects to the new Economic and Community Development division which was funded
but many of the position and assistance programs established in the budget did not move forward until very late in
the fiscal year.
17
CITY OF BAKERSFIELD
Management's Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The key assumptions in the General Fund revenue forecast for fiscal year 2020-21 were:
1. Property tax revenue is projected to grow at 4% which is the same level as last year’s estimate as projected by Kern
County.
2. Sales and use tax revenue is projected to show and overall decrease in fiscal year 2020-21, which is in line with the
reductions to the amended budget estimates in fiscal year 2019-20 due to the negative impacts from the COVID-19
pandemic. Sales and use tax revenues faced significant shortfalls brought about by the shut-down of many businesses
in the community prompted by State orders. There is little information to suggest that the slowdown prompted by
these closure will subside in the near-term. A conservative estimate of 2020-21 revenues was a reduction in total of
4% from the prior year. This reduction was tempered by the continued growth in dollars expected from the Wayfair
decision.
3. California Public Employees’ Retirement System (CalPERS) approved new policies last year which have raised rates
approximately 7% to 10% depending on the employee plan for next fiscal year. Similar increases are projected for
the next five fiscal years.
New items specifically addressed in the 2020-21 budget include the following:
COVID 19 Pandemic – In March 2020 COVID-19 pandemic began to negatively affect the community and local businesses.
Federal, State and local governments have taken unprecedented action to temporarily reduce or eliminate all non-essential
activities with the hopes of slowing down the spread of the virus. These actions included mandated quarantines, travel
restrictions, restaurant and store closures and/or reduced service capacity. This in turn resulted in layoffs, income reductions
and reduced business profitability. While thought to be necessary to respond to the public health emergency, the action are
projected to significantly impact activities that generate revenue for the City, including retail sales, hotel occupancy, general
business to business activity, and potential for future development.
Other State actions have resulted in potential loss of revenue for local jurisdictions in an attempt to alleviate cash flow pressure
on individuals and small businesses. In April 2020, Governor Newsom announced sales tax deferment measures to help small
businesses with cash flow issues. The Initial information shows that any deferments will be spread out against all tax rates and
will include the City’s base 1% Bradley-Burns tax and the PSVS measure. While these deferments will not be a permanent loss
of revenue, it will negatively affect the City’s cash flow and shift up to $1.4 million. Unfortunately, without proper backfills in
place, local governments are fundamentally bearing the fiscal brunt of many of these actions.
Due to these circumstances, the City is expected to face revenue shortfalls in key funding sources in fiscal year 2020-21. The
funding sources anticipated to be most impacted in are transient occupancy tax (hotel tax), sales tax, utility user fees and certain
fees collected within the parks system for recreation programs, aquatic programs and park site reservations. These revenue
adjustments required departments to retool their 2020-21 proposed budgets under a new set of projections.
Police Department – The Police Department’s operating budget has increased from fiscal year 2019-20 by 7.8%, totaling $8.5
million. This increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officers
and support staff in the department over the next three years. Fiscal year 2020-21 is the second year of this staffing ramp up but
there are still expected staffing increases for the department after year three.
Fire Department – The Fire Department's operating budget had a 8.7% increase from fiscal year 2019-20 totaling $3.8 million.
This increase is primarily due to the implementation of the PSVS driven plan to increase staffing and service levels in the
upcoming year. The increase was also due to the rise in CalPERS rates as well as an increases in salaries & benefit costs.
Public Works - The Public Works Department operating budget increased by $0.9 million, or 3.0%, from fiscal year 2019-20.
The increase was also due to primarily to the CalPERS rate escalations as well as an increases in salaries & benefit costs.
Development Services – The Development Services Department’s operating budget has decreased from fiscal year 2019-20 by
3%, totaling $0.5 million. This reduction is primarily connected to changes in the Economic Development division program
18
CITY OF BAKERSFIELD
Management's Discussion and Analysis
and available funds for redevelopment (over $3 million) compared to the prior year. Those funds were not included in the
budget for 2020-21. The decrease was offset by increases in salaries & benefit costs, including the expected increase in
CalPERS rates.
Recreation and Parks – The Recreation and Parks Department’s operating budget has increased from fiscal year 2019-20 by
6%, totaling $1.4 million. The increase was due primarily to the rise in CalPERS rates as well as an increases in salaries &
benefit costs.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview
of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the
information provided in this report or requests for additional financial information can be sent via e-mail to:
finance@bakersfieldcity.us. Formal written requests should be addressed to: City of Bakersfield, Attn: Finance Department,
1600 Truxtun Avenue, Bakersfield, CA 93301.
19
Government-Wide Financial Statements
20
Statement of Net Position
June 30, 2020
Governmental
Activities
Business-Type
Activities Total
Assets:
Current assets:
Cash and investments $241,371,915 $176,163,278 $417,535,193
Accounts receivable, net 30,092,950 5,500,452 35,593,402
Interest receivable 612,323 406,297 1,018,620
Due from other governmental agencies 59,435,798 1,785,910 61,221,708
Internal balances (4,736,100)4,736,100 -
Prepayments and inventories 2,138,243 -2,138,243
Total current assets 328,915,129 188,592,037 517,507,166
Noncurrent assets:
Capital assets:
Land 449,887,935 23,630,085 473,518,020
Depreciable capital assets, net 790,969,843 815,687,009 1,606,656,852
Construction in progress 117,292,300 11,995,544 129,287,844
Non-amortizable intangible assets -31,476,906 31,476,906
Land held for resale 1,198,744 -1,198,744
Notes/loans receivable 25,877,335 203,250 26,080,585
Total noncurrent assets 1,385,226,157 882,992,794 2,268,218,951
Total assets 1,714,141,286 1,071,584,831 2,785,726,117
Deferred Outflows of Resources:
Deferred pensions (See Note 16)74,982,831 5,035,821 80,018,652
Deferred OPEB (See Note 17)8,323,078 1,426,191 9,749,269
Debt issuance -9,073,676 9,073,676
Total deferred outflows of resources 83,305,909 15,535,688 98,841,597
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 22,775,434 10,783,668 33,559,102
Customers' deposits -5,272,783 5,272,783
Advances from grantors and third parties 32,217,249 288,351 32,505,600
Total current liabilities 54,992,683 16,344,802 71,337,485
Long-term liabilities:
Due within one year:
Long-term debt 4,083,959 9,603,905 13,687,864
Capital leases payable -695,722 695,722
Kern River Levee District/Buena Vista -355,737 355,737
Claims and judgments payable 12,724,191 -12,724,191
Compensated absences payable 3,682,448 737,523 4,419,971
Due in more than one year:
Long-term debt 6,674,839 129,974,556 136,649,395
Capital leases -16,304,875 16,304,875
Claims and judgments payable 43,770,000 -43,770,000
Net other post-employment benefits liability 48,655,976 8,337,396 56,993,372
Compensated absences payable 14,852,613 1,595,273 16,447,886
Net pension liability 403,194,538 38,690,910 441,885,448
Total long-term liabilities 537,638,564 206,295,897 743,934,461
Total liabilities 592,631,247 222,640,699 815,271,946
Deferred Inflows of Resources:
Deferred pensions (See Note 16)15,364,701 966,050 16,330,751
Deferred OPEB (See Note 17)17,654,627 3,025,191 20,679,818
Total deferred inflows of resources 33,019,328 3,991,241 37,010,569
Net Position:
Net investment in capital assets 1,347,391,281 735,284,165 2,082,675,446
Restricted: Capital improvements 15,078,957 20,200,000 35,278,957
Unrestricted (190,673,618)105,004,414 (85,669,204)
Total net position $1,171,796,620 $860,488,579 $2,032,285,199
The accompanying notes are an integral part of these financial statements.
21
22
CITY OF BAKERSFIELD
Statement of Activities
For the Fiscal Year Ended June 30, 2020
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Primary Government:
Governmental activities:
General government $40,385,072 $4,474,539 $543,786 $-$5,018,325
Public safety - Police 120,286,345 3,152,452 2,256,739 -5,409,191
Public safety - Fire 49,284,742 8,116,341 512,872 -8,629,213
Public works 170,924,424 17,969,450 3,762,052 106,535,112 128,266,614
Recreation & parks 26,172,685 14,768,875 33,886 2,811,003 17,613,764
Development services 13,409,023 6,589,380 10,161,470 102,129 16,852,979
Interest on long-term debt 7,779 ----
Total governmental activities 420,470,070 55,071,037 17,270,805 109,448,244 181,790,086
Business-type activities:
Wastewater treatment 41,863,203 34,356,259 6,383,200 7,772,742 48,512,201
Refuse collection 56,297,122 56,834,796 241,765 -57,076,561
River and agricultural water 5,110,204 7,203,989 -10,893 7,214,882
Domestic water 30,900,781 28,624,932 952,778 2,229,517 31,807,227
General aviation 633,219 301,933 10,004 107,330 419,267
Offstreet parking 288,532 153,884 --153,884
Total business-type activities 135,093,061 127,475,793 7,587,747 10,120,482 145,184,022
Total primary government $555,563,131 $182,546,830 $24,858,552 $119,568,726 $326,974,108
General Revenues:
Taxes:
Property taxes
Sales and use tax
Other taxes
Intergovernmental, unrestricted
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Gain on sale of property
Transfers
Total general revenues and transfers
Change in net position
Net position - Beginning of Year, as restated
Net position - end of Year
The accompanying notes are an integral part of these financial statements.
23
Net (Expenses) Revenues and
Changes in Net Position
Governmental
Activities
Business-type
Activities Total
$(35,366,747)$-$(35,366,747)
(114,877,154)-(114,877,154)
(40,655,529)-(40,655,529)
(42,657,810)-(42,657,810)
(8,558,921)-(8,558,921)
3,443,956 -3,443,956
(7,779)-(7,779)
(238,679,984)-(238,679,984)
-6,648,998 6,648,998
-779,439 779,439
-2,104,678 2,104,678
-906,446 906,446
-(213,952)(213,952)
-(134,648)(134,648)
-10,090,961 10,090,961
$(238,679,984)$10,090,961 $(228,589,023)
$85,558,776 $-$85,558,776
148,259,133 -148,259,133
1,341,620 -1,341,620
308,043 -308,043
24,763,948 -24,763,948
1,707,054 3,671,948 5,379,002
2,670,587 -2,670,587
4,060 133,322 137,382
2,064,005 (2,064,005)-
266,677,226 1,741,265 268,418,491
27,997,242 11,832,226 39,829,468
1,143,799,378 848,656,353 1,992,455,731
$1,171,796,620 $860,488,579 $2,032,285,199
24
25
Governmental Fund Financial Statements
26
CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
June 30, 2020
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Assets:
Cash and investments $35,194,867 $1,697,075 $142,435 $-
Accounts receivable, net 8,302,273 906,245 14,766,787 22,031
Interest receivable 229,698 13,301 -17,494
Due from other governmental agencies 31,497,968 -3,084,511 24,699,067
Due from other funds 14,074,339 ---
Notes/loans receivable --3,337,657 -
Prepaid items 5,590 ---
Total assets $89,304,735 $2,616,621 $21,331,390 $24,738,592
Liabilities, Deferred Inflows of Resources and Fund
Balances:
Liabilities:
Accounts payable $7,810,058 $34,812 $116,179 $4,239,103
Due to other governmental agencies ---1,571
Due to other funds --2,262,401 11,811,938
Advances from grantors and third parties 9,559,945 ---
Total liabilities 17,370,003 34,812 2,378,580 16,052,612
Deferred Inflows of Resources:
Deferred revenue 3,210,033 -18,047,139 22,031
Fund Balances:
Nonspendable 44,314 ---
Restricted --905,671 8,663,949
Committed 49,811,144 80,647 --
Assigned 18,869,241 2,501,162 --
Total fund balances 68,724,699 2,581,809 905,671 8,663,949
Total liabilities, deferred inflows of
resources, and fund balances $89,304,735 $2,616,621 $21,331,390 $24,738,592
The accompanying notes are an integral part of these financial statements.
27
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$72,180,483 $8,844,771 $52,664,070 $2,517,145 $3,172,320 $176,413,166
85,920 --218 5,848,867 29,932,341
51,932 20,236 120,536 5,758 10,035 468,990
107,455 ---46,796 59,435,797
-----14,074,339
---22,539,677 -25,877,334
924,365 ----929,955
$73,350,155 $8,865,007 $52,784,606 $25,062,798 $9,078,018 $307,131,922
$2,911,053 $3,273,387 $1,552,502 $-$277,305 $20,214,399
-----1,571
-----14,074,339
---22,539,677 117,626 32,217,248
2,911,053 3,273,387 1,552,502 22,539,677 394,931 66,507,557
46,606 ---5,696,872 27,022,681
924,365 ----968,679
---2,523,121 2,986,215 15,078,956
34,592,213 5,591,620 51,232,104 --141,307,728
34,875,918 ----56,246,321
70,392,496 5,591,620 51,232,104 2,523,121 2,986,215 213,601,684
$73,350,155 $8,865,007 $52,784,606 $25,062,798 $9,078,018 $307,131,922
28
CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2020
Total Fund Balances - Total Governmental Funds $213,601,684
Amounts reported for Governmental Activities in the Statement of Net Position are different
because:
Capital assets used in governmental activities are not current financial resources and therefore are
not reported in the Governmental Funds Balance Sheet. Capital assets allocated from Internal
Service Funds are included in the Internal Service Funds adjustment below.
Capital Assets 2,526,318,377
Ending accumulated depreciation (1,215,623,888)1,310,694,489
Land held for resale is not a current financial resource and is not reported in the Governmental
Funds 1,198,744
Deferred outflows of resources related to pensions are not a current financial resource and are not
reported in the Governmental Funds 73,548,825
Deferred outflows of resources related to other post-employment benefits are not a current financial
resource and are not reported in the Governmental Funds 7,977,918
Deferred inflows of resources related to pensions are not a current financial resource and are not
reported in the Governmental Funds (15,043,254)
Deferred inflows of resources related to other post-employment benefits are not a current financial
resource and are not reported in the Governmental Funds (16,922,486)
Interest payable on long-term debt does not require current financial resources. Therefore, interest
payable is not reported as a liability in the Governmental Funds Balance Sheet.(79,301)
Unavailable revenue and other resources not available to liquidate liabilities of the current period are
not recognized in the Governmental Funds. 27,022,680
Internal Service Funds are used by management to chare the costs of certain activities, such as
insurance and fleet management, to individual funds. The assets and liabilities of the Internal
Service Funds are included in governmental activities in the Government-Wide Statement of Net
Position.37,944,430
Long-term liabilities are not due and payable in the current period and therefore they are not
reported in the Governmental Funds Balance Sheet. Noncurrent liabilities allocated from Internal
Service Funds are included in the Internal Service Funds adjustment above.
Notes/Contracts/Loans payable (10,758,798)
Compensated Absences Payable (17,844,887)
Unfunded post-employment benefits (46,638,204)
Unfunded pension benefits (392,905,220)(468,147,109)
Net Position of Governmental Activities $1,171,796,620
The accompanying notes are an integral part of these financial statements.
29
30
CITY OF BAKERSFIELD
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2020
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Revenues:
Taxes $245,011,776 $8,913,147 $-$-
Licenses and permits 3,138,985 ---
Intergovernmental 6,784,347 -6,890,815 109,112,347
Charges for services 23,486,070 7,149,064 5,934 73,584
Fines, forfeitures and assessments 823,556 --43,671
Interest income 1,151,675 100,521 1,556 146,626
Loan payments --241,524 -
Contributions and donations 511,590 1,200,000 --
Other income 2,200,864 555,609 8,832 -
Total revenues 283,108,863 17,918,341 7,148,661 109,376,228
Expenditures:
Current:
General government 14,546,339 9,070,045 --
Public safety - Police 105,126,720 ---
Public safety - Fire 43,301,126 ---
Public works 23,836,283 --3,494,733
Recreation and parks 22,198,374 ---
Development services 11,054,347 -4,755,680 -
Non-departmental 8,290,544 3,134,525 --
Capital outlay --1,963,300 110,120,303
Debt service:
Principal retirement ----
Interest and fiscal charges ----
Total expenditures 228,353,733 12,204,570 6,718,980 113,615,036
Excess (deficiency) of revenues
over (under) expenditures 54,755,130 5,713,771 429,681 (4,238,808)
Other financing sources (uses):
Transfers in 1,200,000 10,000 371,871 -
Transfers out (41,863,365)(4,144,791)(512,790)-
Total other financing sources (uses)(40,663,365)(4,134,791)(140,919)-
Net change in fund balances 14,091,765 1,578,980 288,762 (4,238,808)
Fund balances - beginning 54,632,934 1,002,829 616,909 12,902,757
Fund balances - ending $68,724,699 $2,581,809 $905,671 $8,663,949
The accompanying notes are an integral part of these financial statements.
31
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$5,713,815 $-$-$-$-$259,638,738
----315,086 3,454,071
102,129 ---1,594,496 124,484,134
115,979 -146,805 102,907 1,470,666 32,551,009
-2,811,003 15,790,394 -1,359,480 20,828,104
286,709 98,607 939,790 43,540 73,798 2,842,822
-----241,524
-----1,711,590
17,624 -3,523 214,840 -3,001,292
6,236,256 2,909,610 16,880,512 361,287 4,813,526 448,753,284
--147,115 --23,763,499
----1,338,894 106,465,614
----1,492,000 44,793,126
--1,215,213 -447,752 28,993,981
----16,209 22,214,583
-----15,810,027
75,007 ----11,500,076
36,125,098 2,123,684 15,837,993 6,735 248,097 166,425,210
----1,227,678 1,227,678
----41,790 41,790
36,200,105 2,123,684 17,200,321 6,735 4,812,420 421,235,584
(29,963,849)785,926 (319,809)354,552 1,106 27,517,700
44,796,774 ---1,269,468 47,648,113
----(1,571,871)(48,092,817)
44,796,774 ---(302,403)(444,704)
14,832,925 785,926 (319,809)354,552 (301,297)27,072,996
55,559,571 4,805,694 51,551,913 2,168,569 3,287,512 186,528,688
$70,392,496 $5,591,620 $51,232,104 $2,523,121 $2,986,215 $213,601,684
32
CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-Wide Statement of Activities
For the Fiscal Year Ended June 30, 2020
Net Change in Fund Balances - Total Governmental Funds $27,072,996
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement
of Activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
Capital Outlay eliminated $20,533,627
Depreciation expense is deducted from fund balance (net of Internal Service Fund depreciation of
$7,860,535 which has already been allocated to serviced funds).(61,779,174)
Contributions of infrastructure and improvements by developers are capitalized in the Statement of
Activities, but are not recorded in the Governmental Fund Financial Statements because no cash
changed hands.60,567,661 19,322,114
Certain expenses are reported in the Government-Wide Statement of Activities, but they do not require
the use of current financial resources. Therefore, these expenses are not reported as expenditures in
Governmental Funds.
Net compensated absences expense (2,954,093)
Interest expense on long-term debt 34,011
Net pension expense (17,330,803)
Net other postemployment benefit expense 4,143,998 (16,106,887)
Bond and loan proceeds provide current financial resources to Governmental Funds, but
issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position.
Repayment of bond principal is an expenditure in Governmental Funds, but the repayment
reduces long-term liabilities in the Government-Wide Statement of Net Position.3,987,678
Unearned revenue and other resources not available to liquidate liabilities of the current period
are not recognized in the Governmental Funds. Revenue in the Statement of Activities is not
limited by availability, so certain revenues need to be reduced by the amounts that were
unavailable at the end of the year. This adjustment records a net decrease in revenues -
unavailable revenues at the beginning of the year exceed ending unavailable revenues by this
amount.(887,565)
Internal Service Funds are used by management to charge the costs of certain activities, such
as insurance and fleet management, to individual funds. The net revenue of the Internal
Service Funds is reported with Governmental Activities.(5,391,094)
Change in Net Position of Governmental Activities $27,997,242
The accompanying notes are an integral part of these financial statements.
33
Proprietary Fund Financial Statements
These funds account for operations (a) that are financed and operated in a manner similar to private business enterprises where
the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on
a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that
periodic determination of net income is appropriate for accountability purposes.
Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some
residents of Kern County. This fund also accounts for the activities related to the debt issuance which provided for the
Wastewater Treatment Facilities.
Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to
provide such services are accounted for in this fund.
River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural
purposes to users within the City and some users within Kern County (some Kern River water is exchanged for State Aqueduct
water for domestic water purposes). All activities necessary to provide such services are accounted for in this fund.
Domestic Water Fund is used to account for the provision of water service to some residents of the City and Kern County. All
activities necessary to provide such service are accounted for in this fund.
General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Airpark. The majority of
acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation
Administration.
Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various
offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the
related debt was retired in August 1994. Subsequently, the title was transferred to the City.
Internal Service Funds are used to provide goods and services by one department or agency to other departments or agencies
of the City on a cost reimbursement basis.
34
CITY OF BAKERSFIELD
Statement of Net Position
Proprietary Funds
June 30, 2020
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Current assets:
Cash and investments $79,007,723 $21,251,694 $16,996,139
Accounts receivable, net 1,213,627 1,243,583 475,870
Interest receivable 180,635 51,261 39,308
Due from other governmental agencies 130,822 1,654,741 347
Prepayments and inventories ---
Total current assets 80,532,807 24,201,279 17,511,664
Noncurrent assets:
Capital assets:
Land 10,238,095 2,785,456 2,175,944
Depreciable buildings, property,
equipment and infrastructure, net 593,458,526 949,808 7,335,472
Construction in progress 8,891,756 294,395 645,744
Non-amortizable intangible assets --8,032,678
Other long-term receivable 161,184 -30,105
Total noncurrent assets 612,749,561 4,029,659 18,219,943
Total assets 693,282,368 28,230,938 35,731,607
Deferred outflows of resources:
Deferred pensions 1,376,167 2,803,503 406,261
Deferred other post-employment benefits 423,274 859,685 110,673
Debt issuance 9,073,676 --
Total deferred outflows of resources 10,873,117 3,663,188 516,934
Current liabilities:
Accounts payable and accrued liabilities 4,289,802 3,624,873 318,706
Claims payable ---
Workers' compensation claims ---
Compensated absences payable 183,430 340,106 57,610
Long-term debt - due within one year 9,603,905 --
Capital leases payable - due within one year ---
Advances from grantors and third parties 161,184 127,167 -
Total current liabilities 14,238,321 4,092,146 376,316
Noncurrent liabilities:
Long-term debt - due in more than one year 129,974,556 --
Capital leases payable - due in more than one year ---
Kern River Levee District/Buena Vista --355,737
Customers' deposits 2,908,573 455,674 -
Workers' compensation claims ---
Compensated absences payable 560,383 750,685 144,962
Net pension liability 11,771,160 20,971,427 3,246,477
Net other post-employment benefits liability 2,474,421 5,025,646 646,989
Total noncurrent liabilities 147,689,093 27,203,432 4,394,165
Total liabilities 161,927,414 31,295,578 4,770,481
Deferred inflows of resources:
Deferred pensions 224,128 562,913 90,666
Deferred other post-employment benefits 897,834 1,823,536 234,758
Total deferred inflows of resources 1,121,962 2,386,449 325,424
Net position:
Net investment in capital assets 482,083,592 4,029,659 18,189,839
Restricted for:
Capital improvements 20,200,000 --
Unrestricted 38,822,517 (5,817,560)12,962,797
Total net position $541,106,109 $(1,787,901)$31,152,636
Adjustments to reflect the consolidation of internal service fund
activities related to proprietary funds
Net position of business-type activities
The accompanying notes are an integral part of these financial statements.
35
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental Activities
Internal Service Funds
$57,803,642 $971,948 $132,132 $176,163,278 $64,958,749
2,573,834 (11,687)5,225 5,500,452 160,609
132,670 2,224 199 406,297 143,333
---1,785,910 -
----1,208,288
60,510,146 962,485 137,556 183,855,937 66,470,979
556,336 7,464,254 410,000 23,630,085 -
210,693,579 2,792,159 457,465 815,687,009 47,455,589
1,931,303 232,346 -11,995,544 -
23,444,228 --31,476,906 -
--11,961 203,250 -
236,625,446 10,488,759 879,426 882,992,794 47,455,589
297,135,592 11,451,244 1,016,982 1,066,848,731 113,926,568
420,407 29,483 -5,035,821 1,434,006
32,559 --1,426,191 345,160
---9,073,676 -
452,966 29,483 -15,535,688 1,779,166
2,516,532 17,922 15,833 10,783,668 2,480,162
----4,710,191
----8,014,000
152,846 3,531 -737,523 310,383
---9,603,905 -
695,722 --695,722 -
---288,351 -
3,365,100 21,453 15,833 22,109,169 15,514,736
---129,974,556 -
16,304,875 --16,304,875 -
---355,737 -
1,908,535 --5,272,782 -
----43,770,000
120,873 18,370 -1,595,273 379,791
2,556,323 145,523 -38,690,910 10,289,318
190,340 --8,337,396 2,017,772
21,080,946 163,893 -200,531,529 56,456,881
24,446,046 185,346 15,833 222,640,698 71,971,617
86,501 1,842 -966,050 321,447
69,064 --3,025,192 732,140
155,565 1,842 -3,991,242 1,053,587
219,624,850 10,488,760 867,465 735,284,165 47,455,589
---20,200,000 -
53,362,097 804,779 133,684 100,268,314 (4,775,059)
$272,986,947 $11,293,539 $1,001,149 855,752,479 $42,680,530
4,736,100
$860,488,579
36
CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2020
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Operating revenues:
Intergovernmental $-$241,765 $-
Charges for services 33,915,792 50,432,434 5,619,611
Cost recoveries 22,075 6,083,673 578,710
Rental income 398,277 -161,644
Other sales or services 240 86,247 844,024
Miscellaneous 19,875 232,442 -
Total operating revenues 34,356,259 57,076,561 7,203,989
Operating expenses:
General and administrative 17,830,526 56,459,404 4,259,725
Transmission and distribution 970,434 577,135 422,648
Workers' compensation payments ---
Claims paid ---
Depreciation and amortization 19,801,307 65,417 392,477
Compensated absences -137,833 34,850
Total operating expenses 38,602,267 57,239,789 5,109,700
Operating income (loss)(4,246,008)(163,228)2,094,289
Nonoperating revenues (expenses):
Interest income 1,792,428 518,657 296,192
Connection fees 6,383,200 --
Interest expense (3,000,165)--
Gain on sale of capital assets -11,844 -
Total nonoperating revenues (expenses)5,175,463 530,501 296,192
Income (loss) before transfers
and capital contributions 929,455 367,273 2,390,481
Capital contributions 7,772,742 -10,893
Transfers in ---
Transfers out (207,908)(1,531,821)(184,638)
Change in net position 8,494,289 (1,164,548)2,216,736
Total Net Position -
Beginning of Year 532,611,820 (623,353)28,935,900
Total Net Position-End of Year $541,106,109 $(1,787,901)$31,152,636
Adjustment to reflect the consolidation of internal
service activity related to proprietary funds
Change in net position of business-type activities
The accompanying notes are an integral part of these financial statements.
37
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$-$10,004 $-$251,769 $180,000
26,150,880 300,386 153,884 116,572,987 42,795,846
29,610 1,547 -6,715,615 735,676
---559,921 -
2,438,631 --3,369,142 -
11,107 --263,424 89,952
28,630,228 311,937 153,884 127,732,858 43,801,474
23,042,284 303,206 189,084 102,084,229 40,464,034
503,353 84,974 -2,558,544 -
----4,177,990
----553,618
6,640,146 240,245 90,628 27,230,220 7,860,535
38,500 --211,183 59,289
30,224,283 628,425 279,712 132,084,176 53,115,466
(1,594,055)(316,488)(125,828)(4,351,318)(9,313,992)
1,044,337 17,408 2,925 3,671,947 1,135,769
947,482 --7,330,682 -
(679,306)--(3,679,471)-
121,478 --133,322 326,645
1,433,991 17,408 2,925 7,456,480 1,462,414
(160,064)(299,080)(122,903)3,105,162 (7,851,578)
2,229,517 107,330 -10,120,482 622,363
--45,000 45,000 2,692,306
(184,638)--(2,109,005)(183,597)
1,884,815 (191,750)(77,903)11,161,639 (4,720,506)
271,102,132 11,485,289 1,079,052 47,401,036
$272,986,947 $11,293,539 $1,001,149 $42,680,530
670,587
$11,832,226
38
CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2020
Wastewater
Treatment
Refuse
Collection
Cash flows from operating activities:
Cash received from:
Customers, including cash deposits $34,907,221 $57,063,732
Prior year reimbursements and cost recoveries 1,137 -
Cash paid to:
Suppliers (10,381,226)(42,683,901)
Employees (6,753,923)(12,444,326)
Cash deposits returned to customers --
Net cash provided (used) by operating activities 17,773,209 1,935,505
Cash flows from noncapital financing activities:
Cash transferred from other funds --
Cash transferred to other funds (207,908)(1,531,821)
County/developer project share --
Connection fees 6,383,200 -
Net cash provided (used) by noncapital financing activities 6,175,292 (1,531,821)
Cash flows from capital and related financing activities:
Principal payments:
Notes/Loans/Bonds (18,700,879)-
Capital lease payments --
Capital contributions --
Interest paid (6,679,486)-
Purchase of capital assets --
Proceeds from sale of capital assets -11,844
Construction in progress (5,888,658)(180,934)
Net cash provided (used) by capital and related financing activities (31,269,023)(169,090)
Cash flows from investing activities:
Interest received 1,919,329 538,898
Net increase (decrease) in the fair value of investments 97,067 26,710
Net cash provided by investing activities 2,016,396 565,608
Net increase (decrease) in cash and investments (5,304,126)800,202
Cash and investments - Beginning of year 84,311,849 20,451,492
Cash and investments - End of year $79,007,723 $21,251,694
The accompanying notes are an integral part of these financial statements.
39
River &
Agriculture
Water
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$12,710,984 $28,772,621 $362,616 $151,959 $133,969,133 $43,341,286
--1,547 -2,684 735,676
(3,347,316)(23,140,283)(391,199)(185,411)(80,129,336)(26,327,429)
(1,447,860)(1,611,540)--(22,257,649)(10,013,690)
-(241,467)--(241,467)-
7,915,808 3,779,331 (27,036)(33,452)31,343,365 7,735,843
---45,000 45,000 2,692,306
(184,638)(184,638)--(2,109,005)(183,597)
10,893 ---10,893 -
-1,541,354 --7,924,554 -
(173,745)1,356,716 -45,000 5,871,442 2,508,709
----(18,700,879)-
-(670,701)--(670,701)-
--107,330 -107,330 -
-(679,306)--(7,358,792)-
--(35,505)-(35,505)(12,872,816)
-121,478 -12,501 145,823 505,234
(568,839)(2,580,819)--(9,219,250)-
(568,839)(3,809,348)71,825 12,501 (35,731,974)(12,367,582)
283,509 1,107,582 18,375 3,119 3,870,812 1,230,119
19,093 64,132 1,164 110 208,276 76,546
302,602 1,171,714 19,539 3,229 4,079,088 1,306,665
7,475,826 2,498,413 64,328 27,278 5,561,921 (816,365)
9,520,313 55,305,229 907,620 104,854 170,601,357 65,775,114
$16,996,139 $57,803,642 $971,948 $132,132 $176,163,278 $64,958,749
40
CITY OF BAKERSFIELD
Statement of Cash Flows (concluded)
Proprietary Funds
For the Fiscal Year Ended June 30, 2020
Wastewater
Treatment
Refuse
Collection
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Operating income (loss)$(4,246,008)$(163,228)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense 19,801,307 65,417
(Increase) decrease in accounts receivable 65,856 (4,600)
(Increase) decrease in inventories --
(Increase) decrease in prepaid items --
Increase (decrease) in accounts payable 1,064,391 1,088,659
Increase in workers' compensation claims --
Increase (decrease) in unearned revenue -(1,764)
Increase (decrease) in customers' deposits 486,243 (6,465)
Increase (decrease) in compensated absences 127,468 149,721
Increase (decrease) in net pension liability 457,033 782,067
Increase (decrease) in deferred outflows/inflows of resources for pensions 310,717 520,807
Increase (decrease) in net other post-employment benefits liability (839,429)(1,601,081)
Increase (decrease) in deferred outflows/inflows of resources for OPEB 545,631 1,105,972
Net cash provided (used) by operating activities $17,773,209 $1,935,505
Noncash investing capital and financing activities:
Contribution of equipment from other departments $-$-
Contributions of infrastructure and improvements
by developers $7,772,742 $-
The accompanying notes are an integral part of these financial statements.
41
River &
Agriculture
Water
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$2,094,289 $(1,594,055)$(316,488)$(125,828)$(4,351,318)$(9,313,992)
392,477 6,640,146 240,245 90,628 27,230,220 7,860,535
5,465,473 (136,508)52,226 (1,925)5,440,522 275,488
-----(6,775)
-----(91,438)
134,356 (1,351,991)(21,908)3,673 917,180 592,099
-----7,966,890
----(1,764)-
41,522 37,434 --558,734 -
34,850 38,500 7,313 -357,852 59,289
110,406 106,006 9,268 -1,464,780 338,872
68,125 56,870 2,308 -958,827 194,075
(576,003)(59,042)--(3,075,555)(581,937)
150,313 41,971 --1,843,887 442,737
$7,915,808 $3,779,331 $(27,036)$(33,452)$31,343,365 $7,735,843
$-$2,229,517 $-$-$2,229,517 $622,363
$-$-$-$-$7,772,742 $-
42
43
Fiduciary Fund Financial Statements
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individual private organizations, other
governmental units and/or other funds. Detailed combining statements for Fiduciary Funds are located in the Supplementary
Information section. Below are descriptions of the generic fund types within this category and specific funds within each fund
type.
Private Purpose Trust Funds
Redevelopment Successor Agency - The Bakersfield Redevelopment Agency ceased activities in February 2012. All non-
housing related assets, liabilities and activities have been transferred to the City and are accounted for in a trust fund.
Planning Habitat Trust Fund - This fund is used to account for monies collected from developers to be used to purchase suitable
land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game
Department for maintenance.
Pension and Other Employee Benefit Trust Funds
Fire Relief and Pension Trust Fund - This fund is used to account for the accumulation of resources to be used for retirement
annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 2,
1972.
Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund - This fund is used to account for the City's post-retirement
medical benefit plan. The City provides medical insurance coverage through contributions to eligible retirees' insurance
premiums.
Agency Funds
Special Deposits Fund - This fund is used to account for the collection by the City as agent for organizations operated under the
auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and bid
deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants, and other
revenues held in trust pending disposition of contingencies.
Improvement Districts Fund - This fund is used to account for the collection of liens for improvements benefiting private
properties and payments to the holders of bonds issued pursuant to the Improvement Act of 1913 and the Improvement Bond
Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the
principal and interest installments from the owners of the benefited properties. A trustee administers the periodic payment to the
bondholders. In addition, Community Service Districts created for the West Ming and Old River Ranch developments are
accounted for in this section. These funds are collected to be used to pay for public safety costs in the applicable communities.
44
CITY OF BAKERSFIELD
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2020
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Agency
Funds
Assets:
Cash $18,047,627 $3,041,443 $33,335,865
Accounts receivable --304,390
Interest receivable 40,461 2,185 16,522
Due from other governmental agencies --32,390
Investments
Domestic equities -22,924,307 -
Fixed income -54,211,151 -
Total investments -77,135,458 -
Land held for resale 60,895 --
Total assets 18,148,983 80,179,086 33,689,167
Liabilities:
Payables:
Advances from grantors and third parties 3,072,703 --
Deposits --29,468,454
Accrued bond interest --530,713
Bonds 2,245,000 -3,690,000
Notes 12,815,002 --
Total liabilities 18,132,705 -33,689,167
Net Position:
Restricted for:
Individuals, organizations and other governments 16,278 --
Pensions -588,272 -
Other post-employment benefits -79,590,814 -
$16,278 $80,179,086 $-
The accompanying notes are an integral part of these financial statements.
45
CITY OF BAKERSFIELD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2020
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Additions
Contributions to pooled investments $-$6,826,986
Developer fees 608,674 -
Successor agency property tax deposits 3,136,153 -
Charges for services 3,134,525 -
Other income 11,793 -
Interest income 244,171 4,557,101
Administrative expenses -(211,914)
Total additions 7,135,316 11,172,173
Deductions:
Benefits -4,130,114
Purchase of uninhabited land 280,431 -
Obligation retirement 3,758,847 -
Total deductions 4,039,278 4,130,114
Change in net position 3,096,038 7,042,059
Net position - beginning of year (3,079,760)73,137,027
Net position - end of year $16,278 $80,179,086
The accompanying notes are an integral part of these financial statements.
46
47
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the City of Bakersfield (the “City”) have been prepared in conformity with generally
accepted accounting principles in the United States of America (GAAP) as prescribed by the Governmental Accounting
Standards Board (GASB). The following summary of the City’s significant accounting policies is presented to assist the reader
in interpreting the basic financial statements and other data in this report. These policies should be viewed as an integral part of
the accompanying basic financial statements.
A. Description of Reporting Entity
The City of Bakersfield, California, is a California Charter City, incorporated on January 11, 1898, and serves as the county
seat of the County of Kern, California (the “County”). The City is a full-service city and operates under a Council - Manager
form of government, providing the following services as authorized by its Charter: General government; public safety; public
works; and development and conservation.
As required by GAAP, these basic financial statements present the government and its component units, entities for which the
government is considered to be financially accountable. Blended component units, although legally separate entities, are, in
substance, part of the government's operations and so data from these units are combined with data of the primary government.
B. Basis of Presentation
Government-Wide Financial Statements
The Government-Wide financial statements (the statement of net position and the statement of activities) report information of
all of the non-fiduciary activities of the primary government and its component units. For the most part, eliminations have been
made to minimize the double counting on internal activities. Internal activities for services provided and used that are not
eliminated include water, solid waste and sewer services provided to various other functions of the government. These
statements distinguish between the governmental and business-type activities of the City. 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 charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each segment of the
business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that
are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Some
functions include expenses that are, in essence, indirect expenses of other functions resulting from charges among funds or
programs for centralized services. Program revenues include: 1) charges paid by the recipients of goods or services offered by
the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular
program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions
or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both
restricted and unrestricted resources are available for use, generally it is the City’s policy to use restricted resources first, then
unrestricted resources as they are needed.
48
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Basis of Presentation (continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds and the blended component
unit. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of
fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are separately aggregated and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the
principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal
values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary
activities. Operating expenses for enterprise funds and internal service funds include cost of sales and services, administrative
expenses, and depreciation of capital assets. As used in this section, the term depreciation can include amortization of
intangible assets. All expenses not meeting this definition are reported as nonoperating expenses.
The City reports the following major governmental funds:
General Fund - The General Fund is the principal operating fund of the City. It is used to account for all financial resources
except those required to be accounted for in another fund. For the City, the General Fund includes basic governmental
activities, such as general government, public safety, public works, and community services.
Transient Occupancy Taxes Fund - The Transient Occupancy Taxes Fund is used to account for transient occupancy tax
revenues (hotel tax) and expenditures funded by this revenue source. The Rabobank Arena and Convention Center and the
Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account
for the operations of the Visit Bakersfield division of the City.
Community Development Block Grant Fund – The Community Development Block Grant Fund is used to account for resources
provided by the Federal Housing and Community Development Act of 1974 for the elimination of slums and blight, housing
conservation and improvements of community services.
Gas Tax & Road Fund - The Gas Tax & Road Fund is used to account for the City’s share, based upon population, of state
gasoline taxes. State law requires these gasoline taxes to be used to maintain streets or for major street construction. This fund
also accounts for other State and Federal grant revenues related to street maintenance or construction, including the Federal
earmark Thomas Roads funds.
Capital Outlay Fund - The Capital Outlay Fund is used to account for the cost of capital projects financed by local revenues and
various grant/loan proceeds for capital expenditures. This fund also accounts for the special Utility Franchise/Surcharge Fund
created by the City Council to account for the specified local road project costs funded by the selected electricity and gas
franchise surcharge fees. In addition, funds contributed by the County to be used to cover a portion of the costs of the local
match needed for the Thomas Roads projects are accounted for in this fund.
Park Improvement Fund - The Park Improvement Fund is used to account for funds collected for residential park development
(Ordinance No. 3646). Fees are collected based on the development’s share of the cost to develop, improve, construct, or
enhance a neighborhood park (Ordinance No. 3327).
Transportation Development Fund - The Transportation Development Fund is used to account for funds collected from fees
paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid when
a building permit for the development project is obtained, and are based upon the amount of traffic the development will
generate. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and
revised to reflect updated costs and growth projections.
49
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Basis of Presentation (continued)
Redevelopment Successor Agency - Housing Fund - The Redevelopment Successor Agency - Housing Fund was created on
February 1, 2012, pursuant to the provisions of the Redevelopment Restructuring Act. The City has chosen to assume the
housing functions and take over the housing assets of the former Redevelopment Agency.
The City reports the following major proprietary (enterprise) funds:
Wastewater Treatment Fund - The Wastewater Treatment Fund is used to account for the provision of sewer service to the
residents of the City and some residents of the County. This fund also accounts for the activities related to the debt issuance,
which provided for the Wastewater Treatment Facilities.
Refuse Collection Fund - The Refuse Collection Fund is used to account for the collection and disposal of refuse within the
City. All activities necessary to provide such services are accounted for in this fund.
River & Agricultural Water Fund - The River & Agricultural Water Fund is used to account for the provision of water service
restricted primarily for agricultural purposes to users within the City and some users within the County (some Kern River water
is exchanged for State Aqueduct water for domestic water purposes). All activities necessary to provide such services are
accounted for in this fund.
Domestic Water Fund - The Domestic Water Fund is used to account for the provision of water service to residents of the City
and County connected to the City's system. All activities necessary to provide such services are accounted for in this fund.
General Aviation Fund - The General Aviation Fund is used to account for the acquisition and operation of the Bakersfield
Municipal Airpark located on Union Avenue. The majority of acquisition and improvement financing for the airport facility
was provided by a grant from the Federal Aviation Administration.
Offstreet Parking Fund - The Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye
Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former
Redevelopment Agency and the related debt was retired in August 1994, and subsequently, the title was transferred to the City.
Internal Service Funds - The Internal Service Funds are used to account for the cost of goods or services provided by one
department or agency to other departments or agencies of the governmental unit on a reimbursement basis. The City accounts
for its self-insurance and equipment management activities as internal service funds.
The City reports the following additional fund types:
Private Purpose Trust Fund - The Planning Habitat Trust Fund is used to account for monies collected from developers to be
used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the
State Fish and Game Department for maintenance. The City also records the assets, liabilities, and activities of the
Redevelopment Successor Agency in a separate trust fund.
Pension and Other Employee Benefit Trust Funds - The Fire Relief and Pension Trust Fund is used to account for the annuity
payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 26, 1972. The
Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund is used to account for the City’s postretirement medical
benefit plan in which the City provides medical insurance coverage through contributions to eligible retirees’ insurance
premiums.
Agency Funds - The Agency Funds account for assets held by the City as an agent for various local governments or other
entities. The Special Deposits Fund is used to account for the collection by the City as agent for organizations operated under
the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and
bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants and other
revenues held in trust pending disposition of contingencies. The Improvement Districts Fund is used to account for the
50
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Basis of Presentation (continued)
collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the
Improvement Bond Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of
bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the
benefited properties. A trustee provides the periodic payment to the bondholders. This fund also accounts for the special
assessments and taxes collected within the boundaries of Community Service Districts within the City.
C. Measurement Focus and Basis of Accounting
The government-wide, proprietary, private purpose trust, and pension and other employee benefit trust funds are reported using
the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange
transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include
property and sales taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is
recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying
transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible
requirements have been satisfied. The agency funds utilize the accrual basis of accounting to report assets and liabilities but
technically have no measurement focus.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of
accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest,
certain State and Federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of
the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is
incurred, as under the accrual basis of accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions
are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other
financing sources.
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 funds' principal
ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating.
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items
Cash and Investments
Cash balances of each of the City's funds, except for certain Trust and Agency Funds, are pooled and invested by the City.
Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the
year. Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.
The City applies GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External
Investment Pools. This statement adheres to GASB reporting guidelines which generally requires that investments be reported
at their fair value and that all changes in fair value be reflected as income of the period in which they occur.
Statutes authorize the City to invest in obligations of the United States Treasury, agencies and instrumentalities, commercial
paper, bankers' acceptances, repurchase agreements, money market funds, and the State Treasurer's investment pool. The City's
Pension Trust Fund is also authorized to invest in corporate bonds rated A or better by a national rating system generally
recognized and used by banks and investment brokers in the United States.
Investments are comprised of obligations of the United States Treasury, agencies and instrumentalities, cash, time certificates of
deposit, mutual funds, bankers' acceptances, money market accounts, deposits in the State of California Local Agency
51
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
Investment Fund (LAIF), and California Asset Management Program (CAMP). Investments are stated at fair value.
Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as
receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from
other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of
interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are
reported in the government-wide financial statement as “internal balances.” Advances between funds, as reported in the fund
financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a
reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds
are netted as part of the reconciliation to the government-wide presentation.
Receivables
All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Trade accounts receivable in
excess of 180 days comprise the trade accounts receivable allowance for uncollectible accounts.
Inventory and Prepaid Items
Inventory is valued at average cost applied on a first-in, first-out (FIFO) basis. The reserve for prepaid expenses relates to
certain payments to vendors for costs applicable to future accounting periods. The cost of both inventories and prepaid items
are recorded as expenditures/expenses when consumed rather than when purchased.
Capital Assets
Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the
government-wide financial statements to the extent the City’s capitalization thresholds are met.
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), and intangible water rights are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the government as assets with an estimated useful life in
excess of one year and an initial individual cost of more than $50,000 for infrastructure and $5,000 for all other capital assets.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at acquisition value at the date of donation in the majority of instances. When assets are donated in relation to a
service concession arrangement, they are reported at acquisition cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not
capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives
are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the
respective accounts and any resulting gain or loss is included in the results of operations.
52
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets
constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-
line method over the following estimated useful lives:
Infrastructure 10 to 70 years
Buildings, structures and improvements 5 to 40 years
Transmission and distribution equipment 5 to 50 years
Rolling equipment 2 to 30 years
Office equipment 3 to 10 years
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type Statement of Net Position. Debt principal payments of both governmental and business-type activities are
reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method.
In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when
paid. Governmental fund types recognize 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. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Deferred Outflows and Inflows of Resources
As required by GASB Statements No. 63 and No. 65, the City recognized applicable deferred outflows and inflows of resources
in the government-wide, governmental, and proprietary fund type financial statements.
The Statements of Net Position and Balance Sheets will sometimes report a separate section for deferred outflows of resources,
defined as a consumption of net position or fund balance by the City that is applicable to a future funding period, or deferred
inflows of resources, defined as an acquisition of net position or fund balance by the City that is applicable to a future funding
period. The City has items that qualify for reporting in these categories and are detailed in a separate note disclosure.
53
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
Net Position/Fund Balance
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized
as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of
net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition,
construction or improvement of these assets reduce the balance in this category.
Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, laws, or
regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other
purpose.
As of June 30, 2020, net position is as follows:
Governmental
Activities
Business-Type
Activities Total
Net investment in capital assets $1,347,391,281 $735,284,165 $2,082,675,446
Restricted 15,078,957 20,200,000 35,278,957
Unrestricted (190,673,618)105,004,414 (85,669,204)
Total net position $1,171,796,620 $860,488,579 $2,032,285,199
Fund balances of the governmental funds are report using a hierarchy based primarily on the extent to which a government is
bound to observe constraints imposed upon the use of the resources reported. Fund balances for governmental funds are
segregated as follows:
Nonspendable Fund Balance – includes net resources that cannot be spent because of their form or because of legal or
contractual limitations, and therefore must remain intact.
Restricted Fund Balance – includes net resources that have externally enforceable limitations on their use. These
limitations can be established by creditors, grantors, or by laws and regulations.
Committed Fund Balance – includes amounts with self-imposed limitations and are set in place prior to the end of the
fiscal year. Commitments are set forth by the formal action of the City’s highest level of decision-making authority, the
City Council, and the limitations require that same level of authority to be removed.
Assigned Fund Balance – includes amounts for which the intended use results in limitations but do not meet the
requirements for either the “Restricted” or “Committed” classifications. Intended use can be established by the City
Council, a governing committee or board, or by a City official designated as having that authority.
Unassigned Fund Balance – is the residual balance of the General Fund not included in the other classifications.
The City Council establishes, modifies or rescinds fund balance commitments though approval of contracts for services and
54
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
supplies that require City Council authorization through resolution. Fund balance assignments are made by agreements entered
into by department heads, and their designees, for specific purposes. The City Council also establishes fund balance
assignments through the adoption of the budget and subsequent budget amendments. Assignments are generally temporary and
as such, additional action is not usually needed for assignments to be removed. The City Council approved, through resolution,
a Fund Balance policy that established these rules for fund balance commitments and assignments in the General Fund. It was
not deemed necessary to include a policy to achieve and maintain a specific level of unrestricted fund balance in the General
Fund.
Fund Balance Flow Assumptions
The City will sometimes fund outlays for a specific purpose from restricted and unrestricted resources (committed, assigned,
and unassigned fund balance). A flow assumption must be made about the order of how these resources will be applied to
properly calculate the amounts reported as restricted, committed, assigned, and unassigned. It is the City’s policy to consider
restricted fund balance to be used completely before any components of unrestricted fund balance. When the components of
unrestricted fund balance are used for the same purpose, the amount classified as committed is used first, followed by assigned,
and unassigned is applied last.
Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate is limited to 1% of market value.
This property tax rate limitation may only be increased through voter approval. The County is the sole agency responsible for
levying and collecting the property taxes and distributing them to taxing jurisdictions. Taxes are allocated and distributed
based upon each taxing jurisdiction's assessed valuations and upon any voter-approved debt override on the tax rate.
The property tax calendar for the City is as follows:
Valuation date January 1
Lien date March 1
Levy dates July 1 through June 30
Due dates November 1; February 1
Collection dates December 10; April 10
55
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
Pension Plan
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's California Public Employee's Retirement System (CalPERS)
plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they
are reported by CalPERS. 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.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to
OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan (OPEB Plan) and additions
to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, the OPEB
Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments and participating
interest-earning investment contracts that have a maturity at the time of purchase of one year or less, are reported at cost.
Cash Flow Statements
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits, short-term investments and cash
and investments with fiscal agents. Cash equivalents are defined as short-term, highly liquid investments that are both readily
convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because
of changes in interest rates. Generally, only investments with original maturities of three months or less meet this definition.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could
differ from those estimates.
E. Stewardship, Compliance, and Accountability
Budgets and Budgetary Accounting
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as
follows:
1. Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The City Council legally enacts the budget by resolution before July 1.
The City Manager is authorized to transfer budgeted amounts between departments within any fund and approve reductions of
budgeted amounts. Since expenditures may not exceed budgeted appropriations at the fund level, any revisions that alter the
total appropriations of any fund are to be approved by the City Council. Projects budgeted within the current fiscal year but not
yet completed can be re-appropriated the following fiscal year with City Manager approval. All other unencumbered
appropriations lapse at year-end. Encumbered amounts are re-appropriated in the ensuing fiscal year budget.
Budgets are adopted for all governmental fund types and are prepared on a basis consistent with GAAP. Budgeted amounts are
56
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. Stewardship, Compliance, and Accountability (continued)
as originally adopted, or as amended by the City Council. During the fiscal year ended June 30, 2020, the City Council
approved $46,537,904 of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances
and selected capital appropriations.
Deficit Net Position
The Self-Insurance Internal Service Fund reported a deficit in net position of $30,989,013 at the close of the fiscal year. The
continued deficit is the result of a significant increase in the workers' compensation liability calculated in the City’s most recent
actuarial study. Workers' compensation charges can fluctuate significantly from year to year and staff will continue to adjust
departmental rates accordingly to maintain sufficient funding levels.
The Refuse Fund reported a deficit in net position of $1,787,901 at the close of the fiscal year. The deficit was caused by the
unfunded liability amounts in that fund.
The Redevelopment Successor Agency Trust Fund reported a deficit in net position of $14,618,718 at the close of the fiscal
year. The deficit is caused by the notes payable in the fund that have deferred repayment schedules.
Reclassification and Eliminations
Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts
due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any
allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported
only once, in the function in which they are allocated.
F. New Accounting Pronouncements
During the fiscal year ending June 30, 2020 the City implemented the following standards:
GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Guidance. This statement addresses the
postponement of the effective dates for certain provisions in Statements and Implementation Guides to provide temporary relief
to governments and stakeholders in light of the COVID-19 pandemic.
Recently released standards by GASB affecting future years are as follows:
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this statement is to improve guidance
regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities
should be reported. The City has elected not to early implement GASB Statement No. 84 and has not determined its effects on
the City’s financial statements.
In June 2017, GASB issued Statement No. 87, Leases.The objective of this statement is to better meet the information needs of
financial statement users by improving accounting and financial reporting for leases by governments. This statement increases
the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the
payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that
leases are financing of the right to use an underlying asset. The City has elected not to early implement GASB Statement No. 87
and has not determined its effects on the City’s financial statements.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period.
The objectives of this statement are to enhance the relevance and comparability of information about capital assets and the cost
of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period.
The City has elected not to early implement GASB Statement No. 89 and has not determined its effects on the City's financial
statements.
57
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
F. New Accounting Pronouncements (continued)
In August 2018, GASB issued Statement No. 90, Majority Equity Interests-an amendment of GASB Standards No. 14 and No.
61. The objectives of this statement are to improve the consistency and comparability of reporting a government’s majority
equity interest in a legally separate organization and to improve the relevance of financial statement information for certain
component units. The City has elected not to early implement GASB Statement No. 90 and has not determined its effects on the
City's financial statements.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a
single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments
extended by issuers, arrangements associated with conduit debt obligations, and related to note disclosures. The City has
elected not to early implement GASB Statement No. 91 and has not determined its effects on the City's financial statements.
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objectives of this statement are to enhance comparability
in accounting and financial reporting to improve consistency of authoritative literature by addressing practice issues that have
been identified during implementation and application of certain GASB statements.The City has elected not to early implement
GASB Statement No. 90 and has not determined its effects on the City's financial statements.
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this statement is to
address those and other accounting and financial reporting implications that result from the replacement of an interbank offered
rate (IBOR). The City has elected not to early implement GASB Statement No. 93 and has not determined its effects on the
City's financial statements.
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements. The objective of this statement is to improve financial reporting by addressing issues related to public-private
and public-public partnership arrangements (PPPs). The City has elected not to early implement GASB Statement No. 90 and
has not determined its effects on the City's financial statements.
In May 2020, GASB issued Statement No. 96, Subscription-based Information Technology Arrangements. The objective of
this statement is to provide guidance on the accounting and financial reporting for subscription-based information technology
arrangements (SBITAs) for government end users. The City has elected not to early implement GASB Statement No. 90 and
has not determined its effects on the City's financial statements.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans. The objectives of this statement are to (1) increase
consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential
component unit does not have a governing board and the primary government performs the duties that a governing board
typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans; and (3)
enhance the relevance, consistency, and comparability of the accounting and financial reporting for the Internal Revenue Code
Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those
plans. The City has elected not to early implement GASB Statement No. 97 and has not determined its effects on the City's
financial statements.
58
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS
Cash and investments as of June 30, 2020, are classified in the accompanying financial statements as follows:
Statement of net position:
Cash and investments $417,535,193
Fiduciary funds:
Cash and investments 131,560,393
$549,095,586
Cash and investments as of June 30, 2020, consist of the following:
Cash on hand $11,711,993
Deposits with financial institutions 72,326,984
Investments 464,598,857
GASB Stmt. No. 31 Fair Value Adjustment 457,752
$549,095,586
Investment Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code, or the
City’s investment policy, where more restrictive. The table also identifies the more restrictive provision of the California
Government Code or the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investment of any debt proceeds held by bond trustee's that are governed by the provisions of the
City’s debt agreements, rather than the general provisions of either the California Government Code or the City’s investment
policy.
Maximum
Percentage Maximum
Authorized Investment Types of Portfolio Maturity
U.S. Treasury Bills, Notes and Bonds 0 to 100%5 Years
U.S. Government Agency Obligations 20% per agency 5 Years
Bankers' Acceptances 40%180 Days
Commercial Paper 25%270 Days
Repurchase Agreements 30%90 Days
Local Agency Investment Fund 40%N/A
Time Certificates of Deposit 40%5 Years
Public Agency Demand Accounts 30%N/A
Mutual Funds 20%N/A
59
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investment Authorized by Debt Agreements
The City and its component units have $380,296 in investments held by bond trustees pledged to the payment or security of
certain debt issues. These investments are held in direct obligations of, or obligations that are fully guaranteed as to principal
and interest by, the United States Government or an agency thereof. The California Government Code provides that monies
held by a bond trustee pledged to the payment or security of debt issues, in absence of specific statutory provisions governing
the issuance of the debt, may be invested in accordance with the ordinances, resolutions, or indentures specifying the types of
investments the respective bond issue’s trustee may make. The obligations described above are authorized per the investment
agreements with the bond trustees and include, but are not limited to, Federal Land Bank Bonds, Federal Home Loan Bank
notes and bonds, Export-Import Bank notes and guaranteed participation certificates, obligations of or fully guaranteed by the
Government National Mortgage Association, Federal National Mortgage Association notes, debentures and guaranteed
certificates of participation, obligations of the International Bank of Reconstruction and Development and Federal Home Loan
Mortgage Corporation notes.
Interest Rate Risk
Interest rate risk is the risk that changes in the 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. As part of the City’s investment policy, one of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a
portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and
liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by
the following table that shows the distribution of the City’s investments by maturity:
Remaining Maturity (In Months)
Investment Type
Fair
Value Cost
12 Months
Or Less
13 - 24
Months
25-60
Months
More Than
60 Months
U.S. Government Agency Obligations:
Federal Farm Credit Bank $16,620,156 $16,370,806 $5,000,000 $-$11,370,806 $-
Federal Home Loan Bank 3,358,757 3,337,637 --3,337,637 -
Federal Home Loan Mortgage Corp.22,033,930 22,000,000 --22,000,000 -
Federal National Mortgage Assn.14,127,802 13,974,450 9,974,450 -4,000,000 -
PEFCO 355,903 355,903 355,903 ---
Commercial Paper ------
Bankers' Acceptances ------
U.S. Treasury Bills, Notes, and Bonds ------
Local Agency Investment Fund 150,585,896 150,585,896 150,585,896 ---
CAMP 159,893,311 159,893,311 159,893,311 ---
Mutual Funds (1)97,700,558 97,700,558 97,700,558 ---
Investment Contracts 380,295 380,296 ---380,296
Total $465,056,608 $464,598,857 $423,510,118 $-$40,708,443 $380,296
(1) See Note 17 for Other Post-Employment Benefits
60
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
Except as inherent by their nature as disclosed above, the City’s investments (including those held by a bond trustee) are not
highly sensitive to interest rate fluctuations.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the
minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual
rating as of year end for each investment type. On August 5, 2011, the rating agency of Standard & Poors (S&P) assigned a
negative outlook to the credit rating of the United States government. On August 8, 2011, S&P then downgraded that credit
rating to AA+ from AAA.
Remaining as of the Year-End
Investment Type
Minimum
Legal
Rating AAA AA+
Not
Rated
U.S. Government Agency Obligations:
Federal Farm Credit Bank $16,370,806 $-$16,370,806 $-
Federal Home Loan Bank 3,337,637 -3,337,637 -
Federal Home Loan Mortgage Corp.22,000,000 -22,000,000 -
Federal National Mortgage Assn.13,974,450 -13,974,450 -
PEFCO 355,903 -355,903 -
Commercial Paper ----
Bankers' Acceptances ----
U.S. Treasury Bills, Notes, and Bonds ----
Local Agency Investment Fund 150,585,896 --150,585,896
CAMP 159,893,311 --159,893,311
Mutual Funds (1)97,700,558 97,700,558 --
Investment Contracts 380,296 --380,296
Total $464,598,857 $97,700,558 $56,038,796 $310,859,503
(1) See Note 17 for Other Post-Employment Benefits
Concentration of Credit Risk
The City’s investment policy does not limit the amount that can be invested in any one issuer beyond the limitations stipulated
by the California Government Code. Investments in any one issuer (other than United States Treasury securities, mutual funds
and external investment pools) that represent 5% or more of the City’s total investments are as follows.
Issuer Investment Type Reported Amount Percentage
Federal Home Loan Mortgage Corp.Federal Agency Securities $22,000,000 5%
61
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that the City will not be able to recover its deposits or will not be able to recover
collateral securities in the possession of an outside party if a depository institution fails. The custodial credit risk for
investments is the risk that the City will not be able to recover the value of its investment or collateral securities held by another
party if the counterparty (e.g., broker-dealer) to a transaction fails. The California Government Code and City’s investment
policy do not contain legal or policy requirements that would limit exposure to custodial credit risk for deposits or investments,
other than the following provision applicable to deposits: The California Government Code requires that a financial institution
secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured
public deposits.
As of June 30, 2020, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were
held in fully collateralized accounts, as permitted by the California Government Code. As of June 30, 2020, all of the City’s
investments were held by the City itself or by a broker-dealer (counterparty) other than the broker-dealer used by the City to
purchase the securities in the City’s name.
Investment in State Investment Pools
Investments are stated at fair value. Fair value is established quarterly based on quoted market prices received from the
securities custodian. Fair value of investments held fluctuates with interest rates. The fair value of participants’ position in the
pool is the same as the value of the pool shares. The value of participants’ equity withdrawn is based on the book value of the
participants’ percentage participation at the date of such withdrawal.
The California State Treasurer’s Office operates the Local Agency Investment Fund (LAIF). The LAIF is available for
investment of funds administered by California local governments and special districts and is not registered with the Securities
and Exchange Commission (SEC) as an investment company. The enabling legislation for the LAIF is Section 16429.1 et seq.
of the California Government Code. California Asset Management Program (CAMP) is a California Joint Powers Authority
established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted
investment for all local agencies under California Government Code Section 53601(p).
The LAIF and CAMP operate and report to participants on an amortized cost basis. For both the LAIF and CAMP, the income,
gains, and losses, net of administration fees, are allocated based upon the participant’s average daily balance. Deposits in the
LAIF and CAMP are not insured or otherwise guaranteed by the State of California, and participants share proportionally in any
realized gains or losses on investments. The fair value of the LAIF and CAMP investment pools are approximately equal to the
value of the pool shares.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. The hierarchy used to measure the fair value of the asset is based on the following:
Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities, that each fund has the ability
to access.
Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices
that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and
default rates) or other market-corroborated inputs).
Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are
not available (including each fund's own assumptions used in determining the fair value of investments).
The City has a reported fair value of investments of $465,056,608, of which $56,496,548 are valued using Level 1 inputs.
62
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
These include all of the U.S Government Agency Obligations and Time Certificates of Deposit. The remaining investments are
valued using Level 2 inputs.
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES
Accounts receivable at June 30, 2020 of the City's major individual funds and non-major and internal service funds in the
aggregate, including the applicable allowance for uncollectible accounts, are as follows:
Accounts Receivable -
Governmental Funds:
General
Fund
Transient
Occupancy
Taxes
Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Capital
Outlay
Redevelopment
Successor
Agency -
Housing
Non-Major
Governmental
Funds
Internal
Service
Funds
Total
Governmental
Activities
Taxes $-$906,245 $-$-$-$-$-$-$906,245
Accounts 8,302,273 -14,766,787 22,031 85,920 218 5,848,867 314,157 29,340,253
Gross Receivables 8,302,273 906,245 14,766,787 22,031 85,920 218 5,848,867 314,157 30,246,498
Less: Allowance
for Uncollectible -------(153,548)(153,548)
Total Accounts
Receivable -
Net $8,302,273 $906,245 $14,766,787 $22,031 $85,920 $218 $5,848,867 $160,609 $30,092,950
Accounts Receivable -
Proprietary Funds:
Wastewater
Treatment
Fund
Refuse
Collection
Fund
Agricultural
Water
Fund
Domestic
Water
Fund
General
Aviation
Fund
Offstreet
Parking
Fund
Total
Business-Type
Activities
Accounts $1,213,627 $1,243,583 $475,870 $2,573,834 $(11,687)$5,225 $5,500,452
Gross Receivables 1,213,627 1,243,583 475,870 2,573,834 (11,687)5,225 5,500,452
Less: Allowances for
Uncollectible -------
Total Accounts Receivable - Net $1,213,627 $1,243,583 $475,870 $2,573,834 $(11,687)$5,225 $5,500,452
Accounts payable and accrued liabilities at June 30, 2020, are composed of the following:
Accounts Payable and
Accrued Liabilities General
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road
Capital
Outlay
Park
Improvement
Transportation
Development
Governmental Activities:Fund Fund Fund Fund Fund Fund Fund
Accounts payable $7,810,058 $34,812 $116,179 $4,239,103 $2,911,053 $3,273,387 $1,552,502
Due to other governments ---1,571 ---
Total Accounts Payable
and Accrued Liabilities $7,810,058 $34,812 $116,179 $4,240,674 $2,911,053 $3,273,387 $1,552,502
63
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES (continued)
Accounts Payable and
Accrued Liabilities
Non-Major
Governmental
Internal
Service
Total
Governmental
Governmental Activities:Funds Funds Activities
Accounts payable $277,305 $2,480,162 $22,694,561
Due to other governments --1,571
Total Accounts Payable
and Accrued Liabilities $277,305 $2,480,162 $22,696,132
Accounts Payable and
Accrued Liabilities -
Wastewater
Treatment
Refuse
Collection
Agricultural
Water
Domestic
Water
General
Aviation
Offstreet
Parking
Total
Business-Type
Business-Type Activities:Fund Fund Fund Fund Fund Fund Activities
Accounts payable $2,652,399 $3,624,873 $318,706 $2,516,532 $17,922 $15,833 $9,146,265
Accrued interest 1,637,403 -----1,637,403
Total Accounts Payable
and Accrued Liabilities $4,289,802 $3,624,873 $318,706 $2,516,532 $17,922 $15,833 $10,783,668
NOTE 4 - DUE FROM OTHER GOVERNMENTS
Amounts due from other governments at June 30, 2020 are comprised of the following:
Federal
Government
State of
California
County/City
Agencies
Total
Governmental
Activities
Business-Type
Activities
Total
Reporting
Entity
Senate Bill (SB) 90 Claims $-$3,040,418 $-$3,040,418 $-$3,040,418
Sales Tax -28,101,494 -28,101,494 -28,101,494
Property Tax --354,152 354,152 237,157 591,309
Caltrans -3 -3 78,254 78,257
SB 1 - Road Maint & Rehab -1,029,400 -1,029,400 -1,029,400
Department of Fish & Game -107,455 -107,455 -107,455
Department of Transportation 23,669,667 --23,669,667 -23,669,667
Economic & Community Development 3,084,511 --3,084,511 -3,084,511
City of Shafter --1,905 1,905 -1,905
Kern Council of Governments --46,793 46,793 -46,793
Kern County Waste Management ----1,470,499 1,470,499
Totals $26,754,178 $32,278,770 $402,850 $59,435,798 $1,785,910 $61,221,708
64
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS
Capital asset activities for the year ended June 30, 2020, were as follows:
Balance Balance
June 30, 2019 Adjustments Additions Retirements June 30, 2020
Governmental Activities
Capital assets, not being depreciated
Land $449,359,733 $-$528,202 $-$449,887,935
Construction in progress 105,552,305 -30,486,253 18,746,258 117,292,300
Total capital assets, not being depreciated 554,912,038 -31,014,455 18,746,258 567,180,235
Capital assets, being depreciated
Buildings, structures and improvements 149,940,319 2,037,353 8,898,014 -160,875,686
Infrastructure 1,722,921,200 -60,463,656 -1,783,384,856
Rolling equipment 98,791,666 -13,178,074 5,447,374 106,522,366
Furniture and other equipment 23,555,101 (2,832,612)752,657 1,223,836 20,251,310
Total capital assets, being depreciated 1,995,208,286 (795,259)83,292,401 6,671,210 2,071,034,218
Less accumulated depreciation for
Buildings, structures and improvements (79,705,227)(42,445)(4,045,079)-(83,792,751)
Infrastructure (1,064,539,385)-(57,036,459)-(1,121,575,844)
Rolling equipment (58,647,147)-(7,580,457)(5,268,786)(60,958,818)
Furniture and other equipment (16,369,159)2,818,781 (935,269)(748,685)(13,736,962)
Total accumulated depreciation (1,219,260,918)2,776,336 (69,597,264)(6,017,471)(1,280,064,375)
Total capital assets, being depreciated, net 775,947,368 1,981,077 13,695,137 653,739 790,969,843
Governmental activities capital assets, net $1,330,859,406 $1,981,077 $44,709,592 $19,399,997 $1,358,150,078
Business-Type Activities
Capital assets, not being depreciated
Land $23,630,085 $-$-$-$23,630,085
Water rights 31,476,906 ---31,476,906
Construction in progress 56,620,687 -6,295,672 50,920,815 11,995,544
Total capital assets, not being depreciated 111,727,678 -6,295,672 50,920,815 67,102,535
Capital assets, being depreciated
Buildings, structures and improvements 327,748,197 -3,505,211 -331,253,408
Infrastructure 833,396,700 -59,497,809 -892,894,509
Equipment 78,729,875 -723,505 -79,453,380
Total capital assets being depreciated 1,239,874,772 -63,726,525 -1,303,601,297
Less accumulated depreciation for
Buildings, structures and improvements (130,225,829)-(8,136,862)-(138,362,691)
Infrastructure (289,954,352)-(14,913,060)-(304,867,412)
Equipment (40,503,887)-(4,180,298)-(44,684,185)
Total accumulated depreciation (460,684,068)-(27,230,220)-(487,914,288)
Total capital assets, being depreciated, net 779,190,704 -36,496,305 -815,687,009
Business-type activities capital assets, net $890,918,382 $-$42,791,977 $50,920,815 $882,789,544
65
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS (continued)
Depreciation and amortization expense was charged in the following functions in the Statement of Activities:
Governmental functions:Depreciation
General government $1,238,094
Public safety - Police 262,588
Public safety - Fire 753,873
Public works 63,934,735
Recreation and parks 3,008,938
Development services 399,036
Total $69,597,264
Business-type functions:
Wastewater treatment $19,801,307
Refuse collection 65,417
River & agricultural water 392,476
Domestic water 6,640,147
General aviation 240,245
Offstreet parking 90,628
Total $27,230,220
NOTE 6 - LAND HELD FOR RESALE
The City, as the Redevelopment Successor Agency, has been transferred real property to be held for a limited period that will
be used for future development. The inventory for land held for resale is presented at the lower of cost or net realizable value
though it is initially recorded at historical costs. Subsequently, the land could be adjusted to net realizable value if and when the
City enters into agreements for development or sale of the property for less than its historical cost, when a property is impaired
or when property value decreases due to market conditions.
Balance at Balance at
Redevelopment Successor Agency - Housing June 30, 2019 Additions Deletions June 30, 2020
Land Held for Resale $1,198,744 $-$-$1,198,744
$1,198,744 $-$-$1,198,744
66
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES
Other long-term receivables consist of the following:
Governmental Activities
Deferred loans receivable associated with the low and moderate
income housing project. These loans bear 0-3% interest and
are not due until ten years after the loan agreement date (also
see deferred revenue at Note 9).$3,337,657
Mercy Housing, Madison Place Apartments, 55 year term, with 1/55 to be forgiven
each year of compliance to agreement.258,913
Amcal Santa Fe Apartments, 55 year term, repayment begins from residual
receipts following the date that the housing project is put in service.134,691
Down payment assistance loans.1,832,325
19th Street Senior Plaza, LLC, a 55 year loan term upon recordation of
Certificate of Completion.1,688,375
Park 20th Apartments, a 55 year loan term beginning upon recordation of the Certificate
of Completion with an interest rate of 3.0%.2,720,055
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking
Structure. A 55 year loan term beginning upon recordation of the Certificate of
Completion with an interest rate of 3.0%.6,506,184
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking
Structure. A 55 year loan term beginning upon recordation of the Certificate of
Completion with an interest rate of 2.0%.4,487,149
CalHOME Downpayment Assistance for a grant from the State which provided
downpayment and closing cost assistance to seventeen (17) families within the
Metropolitan Bakersfield area. The assistance was provided to those families
whose incomes were at or below 120% of area median income. The loans of up to
$40,000 are forgiven at 1/15th per year.284,630
Golden Empire Housing, Park Place Apartments, 55 year loan term
beginning July 12, 1999, ending on July 12, 2054, with the interest payment
being deferred for first ten years, until year 2010, with an interest rate of 1.5%.807,356
Capital Vision Equities, City Center Senior Housing, 35 year loan term beginning
on March 28, 2001, ending March 28, 2036, with an interest rate of 5.85%.990,000
Canyon Hills Assembly of God, Senior Housing Project 30 year loan term
beginning July 30, 2001 ending July 30, 2031, with an interest rate of 0%.310,000
Mill Creek Courtyard CIC - SEPA - Senior Housing Project. A 55 year loan term
beginning from the date of execution by the developer.2,520,000
Face value of loans $25,877,335
67
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued)
Current portion $-
Long-term portion 25,877,335
Business-Type Activities
Notes receivable in the River & Agricultural Water Fund are for the
amounts due from various customers/vendors.
These loans are non-interest bearing.$30,105
Long-term receivable under agreement 87-153(5) between the City
and Dreyer's Grand Ice Cream Inc. for additional flow and
and treatment capacity in Wastewater Treatment Plant #3.161,184
Long-term receivable under Agreement 14-042 between the City and a
local citizen to purchase surplus land adjacent to their business. Property
was held in the Offstreet Parking Fund.11,961
Total business-type noncurrent receivables $203,250
68
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS
Interfund transactions are comprised of loans, services provided, reimbursements, or transfers. Loans are reported as amounts
“due to/due from” other funds or as “advances,” as appropriate, and are subject to elimination upon consolidation. Services
provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements
occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All
other interfund transactions are treated as transfers. Transfers between governmental activities and business-type activities are
netted as part of the consolidation required to produce the government-wide financial statements.
Interfund receivable and payable balances at June 30, 2020 were:
Fund
Due from
Other Funds
Due to
Other Funds
Governmental Funds:
Major Funds:
General Fund $14,074,339 $-
Community Development Block Grant Fund -2,262,401
Gas Tax & Road Fund -11,811,938
$14,074,339 $14,074,339
These balances are a result of expenditures incurred prior to the receipt of the related special revenue source.
Interfund transfers at June 30, 2020 consisted of the following:
Transfers In Transfers Out
Governmental Funds:
Major Funds:
General Fund $1,200,000 $41,863,365
Transient Occupancy Taxes Fund 10,000 4,144,791
Community Development Block Grant Fund 371,871 512,790
Capital Outlay Fund 44,796,774 -
Non-Major Funds:
Neighborhood Stabilization -371,871
State Traffic Safety Fund -1,200,000
General Obligation Debt Fund 1,269,468 -
Proprietary Funds:
Major Funds:
Wastewater Treatment Fund -207,908
Refuse Collection Fund -1,531,821
River & Agricultural Water Fund -184,638
Domestic Water Fund -184,638
Offstreet Parking Fund 45,000 -
Internal Service Funds:
Self-Insurance Fund -183,597
Equipment Management Fund 2,692,306 -
$50,385,419 $50,385,419
69
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
Additional details regarding transfers in and out of various funds are provided below:
The $1,200,000 transfer in to the General Fund includes $1,200,000 from the Traffic Safety Fund that subsidized the cost
of the traffic division of the police department for parking fine violations.
The $41,863,365 transfer from the General Fund includes a transfer to the Capital Outlay Fund of $40,695,332 for various
capital improvement projects, $728,617 to the General Obligation Debt Fund for the repayment of loans from PG&E for
energy efficient retro fit projects, $45,000 to the Offstreet Parking Fund for security, $10,000 to the Transient Occupancy
Fund tourism programs as well as $384,416 to the Equipment Fund for operating activity.
The $4,144,791 transfers from the Transient Occupancy Taxes Fund include: $3,101,442 transferred to the Capital Outlay
Fund to fund a number of capital projects, $28,061 to the General Obligation Debt Fund for the repayment of a loan from
PG&E for an energy efficiency retrofit at Rabobank Arena, $1,000,000 to the General Fund to replenish Facility reserves
and $15,288 to the Equipment Fund for additional funding to replace equipment.
The $512,790 transfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt
Fund is for the repayment of a Section 108 loan.
There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations
which include: the General Fund ($384,416), the Transient Occupancy Tax Fund ($15,288), the Sewer Fund ($207,908),
the Refuse Fund ($1,531,821), the River & Agricultural Water Fund ($184,638), the Domestic Water Fund ($184,638)
and the Self-Insurance Fund ($183,597).
70
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 9 - ADVANCES FROM GRANTORS AND THIRD PARTIES
The government-wide Statement of Net Position as well as governmental and enterprise funds defer revenue recognition in
connection with resources that have been received as of year-end but not yet earned because under both the accrual and
modified accrual basis of accounting revenue may be recognized only when earned. Assets recognized in connection with a
transaction before the earnings process is complete are offset by a corresponding liability for advances from grantors and third
parties.
The following table summarizes Advances from Grantors and third parties for the City at June 30, 2020:
Balance at
June 30, 2020
Governmental Activities:
General Fund
Dog License $75,154
Business License 1,792,752
Federal Agencies CARES 7,692,039
General Fund Total 9,559,945
Redevelopment Successor Agency - Housing 22,539,677
Non-Major Funds:
State Transportation - Grants Advanced 117,626
Total Governmental Activities $32,217,248
Business-Type Activities:
Wastewater Treatment $161,184
Refuse Collection 127,167
Total Business-Type Activities $288,351
71
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - CAPITAL LEASE
The City entered into a long-term lease agreement in September 2005 for the acquisition of water rights with the Kern County
Water Agency (KCWA). The agreement entitles the City to receive 6,500 acre feet of water per year in exchange for annual
payments tied to KCWA’s Water Revenue certificates of participation from 2006 and 2008, which were used for the expansion
of its water treatment facility. On March 1, 2016, KCWA issued Water Revenue Refunding Bonds. These new bonds refunded
the previous debt that the City's lease payments were based upon. The City’s lease payments coincide with the amortization
schedule for the related KCWA debt with the value of the related water rights at $17,000,597. The total lease obligation for the
term of this agreement is as follows:
Business-Type Activities
Year ending Lease Interest Total
2021 $695,722 $653,095 $1,348,817
2022 678,991 668,624 1,347,615
2023 712,201 636,691 1,348,892
2024 747,648 602,990 1,350,638
2025 782,515 566,907 1,349,422
2026-2030 4,523,218 2,223,265 6,746,483
2031-2035 5,550,838 1,196,923 6,747,761
2036-2040 3,309,464 239,993 3,549,457
Totals $17,000,597 $6,788,488 $23,789,085
Balance at
June 30, 2019 Additions
Principal
Retirement
Balance at
June 30, 2020
Business-Type Activities
Capital Leases:
Water rights $17,671,298 $-$670,701 $17,000,597
$17,671,298 $-$670,701 $17,000,597
72
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT
Long-term debt transactions for the fiscal year ending June 30, 2020 are summarized below:
Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Payable at June 30, 2019:
Bonds $-$-$160,129,574 $160,129,574 $160,129,574
Certificates of Participation 8,635,000 ---8,635,000
Notes 6,111,476 1,504,252 -1,504,252 7,615,728
Contracts/Loans -314,215 -314,215 314,215
Claims and Judgments Payable 48,527,301 ---48,527,301
Compensated Absences 15,521,678 1,974,945 -1,974,945 17,496,623
Subtotal 78,795,455 3,793,412 160,129,574 163,922,986 242,718,441
New debt incurred:
Bonds --10,525,000 10,525,000 10,525,000
Contracts/Loans -41,522 -41,522 41,522
Claims and Judgments Payable 7,966,890 ---7,966,890
Compensated Absences 11,570,837 1,434,881 -1,434,881 13,005,718
Subtotal 19,537,727 1,476,403 10,525,000 12,001,403 31,539,130
Principal reductions:
Bonds --31,828,241 31,828,241 31,828,241
Certificates of Participation 2,760,000 ---2,760,000
Notes 1,227,678 752,125 -752,125 1,979,803
Compensated Absences 8,557,454 1,077,029 -1,077,029 9,634,483
Subtotal 12,545,132 1,829,154 31,828,241 33,657,395 46,202,527
Payable at June 30, 2020:
Bonds --138,826,333 138,826,333 138,826,333
Certificates of Participation 5,875,000 ---5,875,000
Notes 4,883,798 752,127 -752,127 5,635,925
Contracts/Loans -355,737 -355,737 355,737
Claims and Judgments Payable 56,494,191 ---56,494,191
Compensated Absences 18,535,061 2,332,797 -2,332,797 20,867,858
Total Payables $85,788,050 $3,440,661 $138,826,333 $142,266,994 $228,055,044
73
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Due Within One Year:
Bonds $-$-$8,851,778 $8,851,778 $8,851,778
Certificates of Participation 2,875,000 ---2,875,000
Notes 1,208,959 752,127 -752,127 1,961,086
Total Long-term Debt 4,083,959 752,127 8,851,778 9,603,905 13,687,864
Contracts/Loans -355,737 -355,737 355,737
Claims and Judgments Payable 12,724,191 ---12,724,191
Compensated Absences 3,682,448 737,523 -737,523 4,419,971
Total Due Within One Year $20,490,598 $1,845,387 $8,851,778 $10,697,165 $31,187,763
Due in More Than One Year:
Bonds $-$-$129,974,556 $129,974,556 $129,974,556
Certificates of Participation 3,000,000 ---3,000,000
Notes 3,674,839 ---3,674,839
Total Long-term Debt 6,674,839 -129,974,556 129,974,556 136,649,395
Claims and Judgments Payable 43,770,000 ---43,770,000
Compensated Absences 14,852,613 1,595,273 -1,595,273 16,447,886
Total Due in More Than One Year $65,297,452 $1,595,273 $129,974,556 $131,569,829 $196,867,281
The liability for pension-related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated
by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred.
The pension related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.
Long-term debt payable at June 30, 2020, was comprised of the following individual issues:
Bonds
General obligation bonds serviced by business-type activities:
$10,525,000 Wastewater Revenue Bonds 2020 Series A bonds - The proceeds from the sale
of the Series 2020A Bonds, along with certain available moneys of the Enterprise, were to be
used to redeem and decrease a portion of the outstanding 2015A Refunded Bonds. The
original series from 2007 was refunded with these 2015 bonds, a portion of which remains
outstanding. The financing was used to fund the costs of certain capital improvements at the
City's wastewater and sewer collection, treatment and disposal system (specifically Treatment
Plant #3) (This issue is serviced by the Wastewater Treatment Fund).$10,525,000
$145,500,000 Wastewater Revenue Bonds 2015 Series A - The 2007 Series A bonds were
refunded in 2015 with a partial call of the outstanding principal amount of $156,750,000 as
well as payment of the issuance costs. The proceeds of the original Series 2007A refunded
bonds were used to finance a portion of certain capital improvements at the City's wastewater
and sewage collection treatment and disposal system; interest rate of 5.00%. (This issue is
serviced by the Wastewater Treatment Fund.)$109,020,000
Unamortized Bond Premium on Wastewater Revenue Bonds 19,281,333
Total Bonds $138,826,333
74
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Certificates of Participation:
Certificates of participation serviced by Transient Occupancy Tax revenue via lease
payments from the City to the Redevelopment Successor Agency:
$25,335,000 - 2006 Refunding Certificates of Participation Series A assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $900,000 to $2,170,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 4.25%.$4,255,000
$9,470,000 - 2006 Refunding Certificates of Participation Series B assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $345,000 to $830,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 5.00%.1,620,000
Total Certificates of Participation $5,875,000
Notes/Loans:
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $4,100,000 Housing & Urban Development (HUD) Section 108 Loan 2003 -
Due in annual principal installments of $137,000 to $320,000 commencing
August 1, 2004 through August 2022; interest ranging from 1.75% to 4.76%.$916,000
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $800,000 HUD Section 108 Loan 2003 - due in annual principal
installments of $24,000 to $61,000 commencing August 1, 2005 through August
2023; interest ranging from 1.61% to 4.76%.226,000
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement), $1,800,000 HUD Section 108 Loan 009 - due in annual principal
installments of $140,000 to $230,000 commencing August 2010 through August
2021; interest ranging from 0.56% to 3.73%.283,000
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$126,274 PG&E loan used for an energy efficient lighting upgrade at Rabobank Theater. The
payments will be made starting March 12, 2018 in 54 monthly payments of $2,338.40. This
loan contains no interest charges.
60,798
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):
$1,420,717 PG&E loan used for an energy efficient lighting upgrade throughout the city. The
payments will be made in 80 monthly payments of $17,758.96. This loans contain no interest
charges.1,172,091
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):
$1,979,307 PG&E loan used for an energy efficient lighting upgrade throughout the city. The
payments will be made in 80 monthly payments of $24,137.89. This loans contain no interest
charges.1,665,514
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):
$736,517 PG&E loan used for an energy efficient lighting upgrade throughout the city. The
payments will be made in 46 monthly payments of $16,011. This loans contain no interest
charges.contain no interest charges.557,394
75
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
General obligation notes serviced by Business-Type Activities:
$14,263,555 note payable to California State Water Resources Control Board - Original
advances of $14,954,054 payable without interest in twenty annual installments beginning in
fiscal year 2004-05 by the Wastewater Treatment Fund.752,127
Total general obligation notes/loans payable $5,632,924
76
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Compensated Absences:
Government Activities $18,535,061
Business-Type Activities 2,332,796
Total Compensated Absences $20,867,857
A summary of the City's debt service requirements outstanding at June 30, 2020, is as follows:
Total
Government
Principal:
Governmental Activities $85,788,050
Business-Type Activities:
General Obligations 3,440,661
Revenue Obligations 138,826,333
Subtotal - Principal 228,055,044
Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms 56,494,191
Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms 355,737
Less: Unamortized premium for Wastewater
revenue bond 19,281,334
Less: Compensated Absences included above that bear
no interest and have no schedule of repayment terms 20,867,857
Total Principal with Scheduled
Repayment Terms 131,055,927
Interest on Obligations 40,817,209
Total Debt Service Requirements $171,873,136
77
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
The annual requirement to amortize the principal and interest on long-term debt at June 30, 2020 is as follows:
Government-Type Activities
Year ending Principal Interest
Bonds/COP Notes/Loans Total Bonds Notes/Loans Total
2021 $2,875,000 $1,208,959 $4,083,959 $256,625 $30,500 $287,125
2022 3,000,000 1,222,959 4,222,959 133,724 17,811 151,535
2023 -1,061,562 1,061,562 -6,339 6,339
2024 -563,763 563,763 -854 854
2025 -502,763 502,763 ---
2026-2030 -323,791 323,791 ---
Totals $5,875,000 $4,883,797 $10,758,797 $390,349 $55,504 $445,853
Business-Type Activities
Year ending Principal Interest
Bonds/COP Notes/Loans Total Bonds Notes/Loans Total
2021 $7,245,000 $752,127 $7,997,127 $5,660,177 $150,429 $5,810,606
2022 7,670,000 -7,670,000 5,423,250 -5,423,250
2023 7,995,000 -7,995,000 5,031,625 -5,031,625
2024 8,450,000 -8,450,000 4,620,500 -4,620,500
2025 8,920,000 -8,920,000 4,186,250 -4,186,250
2026-2030 52,280,000 -52,280,000 13,561,500 -13,561,500
2031-2035 26,985,000 -26,985,000 1,737,625 -1,737,625
Totals $119,545,000 $752,127 $120,297,127 $40,220,927 $150,429 $40,371,356
Total Reporting Entity
Year Ending Principal Interest
Bonds/COP Notes/Loans Total Bonds/COP Notes/Loans Total
2021 $10,120,000 $1,961,086 $12,081,086 $5,916,802 $180,929 $6,097,731
2022 10,670,000 1,222,959 11,892,959 5,556,974 17,811 5,574,785
2023 7,995,000 1,061,562 9,056,562 5,031,625 6,339 5,037,964
2024 8,450,000 563,763 9,013,763 4,620,500 854 4,621,354
2025 8,920,000 502,763 9,422,763 4,186,250 -4,186,250
2026-2030 52,280,000 323,794 52,603,794 13,561,500 -13,561,500
2031-2035 26,985,000 -26,985,000 1,737,625 -1,737,625
Totals $125,420,000 $5,635,927 $131,055,927 $40,611,276 $205,933 $40,817,209
78
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - PLEDGED REVENUES
The City has pledged net revenues generated by the Wastewater Enterprise Fund to repay a total of $151.5 million in
wastewater revenue bonds series 2015A issued to finance a portion of the expansion and improvement of the City's wastewater
and sewage collection and disposal system.
Each fiscal year, net revenues means all revenues of the enterprise fund received during the fiscal year less operation and
maintenance costs for that fiscal year. The pledge of net revenues does not constitute a lien upon any property of the City.
Proceeds of the bonds provided financing for expansion and upgrade of Wastewater Treatment Plant #3, and improvements to
Wastewater Treatment Plant #2. The bonds are payable through 2034 for 2015A bonds. The covenants of the ordinances
authorizing the bonds include, among other things, an obligation of the City to fix, prescribe, revise, and collect rates, fees, and
charges for the services and facilities of the system and revise the same whenever necessary, which will provide gross revenues
in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred twenty five percent
(125%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent
(100%) of all reserve and other payments required to be made pursuant to the ordinances authorizing the bonds.
NOTE 13 - DEFERRED INFLOWS OF RESOURCES
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources,
and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized
deferred inflows of resources in the governmental fund financial statements. These items are an acquisition of net fund balance
by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for
reporting those financial statement elements, which are distinct from assets and liabilities. Under the modified accrual basis of
accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be
susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report
deferred revenues in connection with receivables for revenues not susceptible to accrual, as deferred inflows of resources.
Deferred inflows of resources balances for the year ended June 30, 2020 were as follows:
Balance at
June 30, 2020
General Fund
California Water Receivable $160,281
Code Enforcement Receivable 9,334
State Agencies (SB90)3,040,418
General Fund Total 3,210,033
CDBG - Deferred Loans 18,047,139
Gas Tax & Road Fund 22,031
Capital Outlay Fund 46,606
Non-Major Funds
Neighborhood Stabilization 5,696,872
Total Governmental Funds $27,022,681
79
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 14 - FUND BALANCES
Fund balances for all major and non-major governmental funds as of June 30, 2020 are as follows (see Note 1 for description of
the categories used):
General
Fund
Transient
Occupancy
Taxes Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Capital
Outlay
Fund
Park
Improvement
Fund
Transportation
Development
Fund
Redevelopment
Successor
Agency -
Housing
Fund
Non-Major
Governmental
Funds Total
Nonspendable
Prepaids/Deposits $44,314 $-$-$-$924,365 $-$-$-$-$968,679
Subtotal 44,314 ---924,365 ----968,679
Restricted
Development services
grants --905,671 ------905,671
Development Services
projects -------2,523,121 -2,523,121
Police services grants --------2,237,395 2,237,395
Fire services grants --------748,820 748,820
Public works grants ---8,663,949 -----8,663,949
Subtotal --905,671 8,663,949 ---2,523,121 2,986,215 15,078,956
Committed
Legal & Professional
services 51,248 ---569,944 ----621,192
City facility construction &
refurbishment projects ----23,200,320 ----23,200,320
Police service contracts 79,961 ---2,104,709 ----2,184,670
Fire service contracts ----265,141 ----265,141
Public works
improvement contracts ----2,061,071 -51,232,104 --53,293,175
Park improvement contracts ----271,635 5,591,620 ---5,863,255
Tourism and promotional
contracts -80,647 -------80,647
Development Services
contracts 687,333 ---1,253,053 ----1,940,386
Cash basis reserve 26,576,850 --------26,576,850
Facility replacement reserve ----4,866,340 ----4,866,340
Appropriation for next
year's budget 22,415,752 --------22,415,752
Subtotal 49,811,144 80,647 --34,592,213 5,591,620 51,232,104 --141,307,728
Assigned
Legal & Professional
services 55,510 --------55,510
Police operations 129,248 --------129,248
Fire operations 86,176 --------86,176
Public works - General
Services department 43,013 --------43,013
Facility improvements ----3,279,904 ----3,279,904
Highway and road
projects ----31,596,014 ----31,596,014
Tourism and promotional
contracts -2,501,162 -------2,501,162
Park development projects 74,427 --------74,427
Community development
projects 52,020 --------52,020
Other miscellaneous
agreements 27,174 --------27,174
Petty Cash accounts 28,570 --------28,570
Compensated absences 3,264,114 --------3,264,114
Public Safety and Vital
Services 15,108,989 --------15,108,989
Subtotal 18,869,241 2,501,162 --34,875,918 ----56,246,321
Unassigned ----------
Total $68,724,699 $2,581,809 $905,671 $8,663,949 $70,392,496 $5,591,620 $51,232,104 $2,523,121 $2,986,215 $213,601,684
80
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 15 - REIMBURSABLE DEVELOPER COSTS
Reimbursable developer costs of $1,812,327 at June 30, 2020 are included in customer deposits in the Domestic Water Fund
which represent amounts due to developers for construction of water mainline extensions and certain other water facilities. For
mainline extensions transferred to the City after June 30, 1982, the developers are to be reimbursed based on revenues
generated from the water sales associated with these mainline extensions. The City is required to reimburse 2.5% of the cost of
the extension on a yearly basis with the total amount to be reimbursed within 40 years.
81
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS
General
The City of Bakersfield provides pension benefits to eligible full-time employees in three separate plans: the Miscellaneous
Plan, the Safety Fire Plan, and the Safety Police Plan, all of which are included in the Public Agency portion of the California
Public Employees’ Retirement System (CalPERS).
Miscellaneous Plan
Plan Description
The City’s Miscellaneous Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-
living adjustments (COLA), and death benefits to plan members and beneficiaries. The Miscellaneous Plan is an agent
multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for
participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is
established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from
the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate
comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from their Executive
Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Miscellaneous Plan include retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the
Miscellaneous employee plan. Tier I is applicable to all employees hired before August 20, 2008 with a formula of 3% at age
60. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is
applicable to employees hired after August 20, 2008 and before January 1, 2013 with a formula of 2.7% at age 55. Earliest
retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to
employees hired after January 1, 2013 with a formula of 2% at age 62, which is a result of the Public Employees' Pension
Reform Act of 2013 (PEPRA). PEPRA also lowered the final compensation and contribution requirements. Earliest retirement
age is 52 with final compensation, subject to the PEPRA limit of $151,549, based on 36 months at the highest rate of pay
received.
Contributions and Employees Covered
Active plan members in the CalPERS Miscellaneous Plan may be required to contribute a particular percent of their annual pay
depending on the applicable plan they fall under. Tier I and Tier II employees will pay 8% of their salary while those
employees under PEPRA (Tier III) will pay 6.25 of their salary. In addition, employees in Tier I and Tier II have 7.5% of their
contribution picked-up by the City after five years of service.
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. 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.
As of June 30, 2019 (the measurement date), there are 949 active employees and 954 inactive employees or beneficiaries
receiving benefits. For the fiscal year ended June 30, 2020, the employee contribution rate was 7.485 percent of annual pay, and
the employer’s minimum contribution rate was 30.713 percent of annual payroll. Employer contribution rates may change if
plan contracts are amended.
82
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2019 (the measurement date), the total pension liability was determined by rolling
forward the June 30, 2018 total pension liability. The June 30, 2018 and the June 30, 2019 total pension liabilities were based
on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method
Fair Value of Assets. For details, see
June 30, 2016 Funding Valuation
Report
Inflation Rate 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.15% [a]
Mortality [b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using Society of Actuaries 90% of scale MP-2016. For more details on this
table, please refer to the December 2017 experience study report.
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study
dated 2017 which was derived from data collected for the period from 1997 to 2015, including updates to salary increases,
mortality and retirement rates. The 2017 Experience Study report can be obtained at CalPERS’ website under Forms and
Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate
should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans 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 plans
run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate
calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public
Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report”
that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return
expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a
building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term
returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account
for assumed administrative expenses.
83
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
The table below reflects 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. The target allocation shown was adopted by the
CalPERS' Board effective on July 1, 2016.
Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]
Global Equity 50.0%4.80%5.98%
Fixed Income 28.0%1.00%2.62%
Inflation Assets 0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Assets 13.0%3.75%4.93%
Liquidity 1.0%0%(0.92%)
[a] An expected inflation of 2.0% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
Increase (Decrease)
MISCELLANEOUS PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2018 [a]$566,995,807 $405,238,078 $161,757,729
Changes Recognized for the
Measurement Period:
- Service Cost 9,761,680 -9,761,680
- Interest on the Total
Pension Liability 40,017,148 -40,017,148
- Changes of Benefit Terms ---
- Differences between Expected
and Actual Experience 1,681,960 -1,681,960
- Changes of Assumptions ---
- Plan to Plan Movement ---
- Contributions - Employer -15,201,992 (15,201,992)
- Contributions - Employees -3,956,979 (3,956,979)
- Net Investment Income -26,318,678 (26,318,678)
- Benefit Payments Including
Refund of Employee Contributions (27,756,407)(27,756,407)-
- Administrative Expenses -(289,187)289,187
- Other Misc Income/(Expense) [b]-939 (939)
Net Changes during 2018-19 23,704,381 17,432,994 6,271,387
Balance at June 30, 2019 [a]$590,700,188 $422,671,072 $168,029,116
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan
assets reported in the funding actuarial valuation report.
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits 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.
84
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
MISCELLANEOUS PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $246,161,068 $168,029,116 $103,338,408
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future
pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual
earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the
average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the
beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2019 measurement date is 3.7 years,
which is obtained by dividing the total service years of 10,410 (the sum of remaining lifetimes of active employees) by 2,780
(the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service
lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event
other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the net pension liability/(asset) is $161,757,729. For the measurement
period ending June 30, 2019 (the measurement date), the City incurred a pension expense/(income) of $27,366,744 for the plan.
Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any
contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2020, the City had deferred outflows of resources related to pensions of $20,592,035 for contributions made
subsequent to the measurement date, $4,444,588 for changes of assumptions, and $1,227,376 for the differences between
expected and actual experience. Deferred inflows of resources related to pensions were $1,410,114 for changes in assumptions
and $3,471,677 for differences between expected and actual experiences, and $1,842,805 for the net difference between
projected and actual earnings on pension plan investments.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension
revenue and expense amortized annually as follows:
Measurement Periods
Ended June 30:
Deferred Outflows/(Inflows)
of Resources
2020 $3,178,616
2021 $(4,458,424)
2022 $(228,390)
2023 $455,569
Remaining $0
85
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Safety Fire Plan
Plan Description
The City’s Safety Fire Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. The Safety Fire Plan is an agent multiple-employer
plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers
within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes
within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract
with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial
report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street –
Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Fire Plan include retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety
Fire employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50. Earliest
retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to
employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is
50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired
after January 1, 2013 with a formula of 2% at age 57, which is a result of PEPRA. PEPRA also lowered the final compensation
and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA limit of $151,549,
based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Safety Fire Plan may be required to contribute a particular percent of their annual pay
depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those
employees under PEPRA (Tier III) will pay 11.75% of their salary. In addition, employees in Tier I have 8% of their
contribution picked-up by the City after five years of service.
Section 20814(c) of the California 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. 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.
As of June 30, 2019 (the measurement date), there are 173 active employees and 227 inactive employees or beneficiaries
receiving benefits. For the fiscal year ended June 30, 2020, the employee contribution rate was 9.235 percent of annual pay, and
the employer’s minimum contribution rate was 48.133 percent of annual payroll. Employer contribution rates may change if
plan contracts are amended.
86
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2019 (the measurement date), the total pension liability was determined by rolling
forward the June 30, 2018 total pension liability. The June 30, 2018 and the June 30, 2019 total pension liabilities were based
on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method
Fair Value of Assets. For details, see
June 30, 2016 Funding Valuation
Report.
Salary Increases 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.50%
Investment Rate of Return 7.15% [a]
Mortality [b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b]Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using Society of Actuaries 90% of scale MP-2016. For more details on this
table, please refer to the December 2017 experience study report.
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study
dated 2017 which was derived from data collected for the period from 1997 to 2015, including updates to salary increases,
mortality and retirement rates. The 2017 Experience Study report can be obtained at CalPERS’ website under Forms and
Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate
should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans 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 plans
run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate
calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public
Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report”
that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return
expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a
building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term
returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account
for assumed administrative expenses.
87
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
The table below reflects 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. The target allocation shown was adopted by the
CalPERS Board effective on July 1, 2016.
Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]
Global Equity 50.0%4.80%5.98%
Fixed Income 28.0%1.00%2.62%
Inflation Assets 0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Assets 13.0%3.75%4.93%
Liquidity 1.0%0%(0.92%)
[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
Increase (Decrease)
SAFETY FIRE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2018 [a]$291,630,432 $209,359,732 $82,270,700
Changes Recognized for the
Measurement Period:
- Service Cost 4,554,882 -4,554,882
- Interest on the Total
Pension Liability 20,357,836 -20,357,836
- Changes of Benefit Terms ---
- Differences between Expected
and Actual Experience (1,450,007)-(1,450,007)
- Changes of Assumptions ---
- Plan to Plan Resource Movement -7,433,992 (7,433,992)
- Contributions - Employer -1,590,164 (1,590,164)
- Contributions - Employees -13,562,717 (13,562,717)
- Net Investment Income ---
- Benefit Payments Including
Refund of Employee Contributions (15,465,768)(15,465,768)-
- Administrative Expenses -(149,404)149,404
- Other Misc Income/(Expense) [b]-487 (487)
Net Changes during 2018-19 7,996,943 6,972,188 1,024,755
Balance at June 30, 2019 [a]$299,627,375 $216,331,920 $83,295,455
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan
assets reported in the funding actuarial valuation report.
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits 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.
88
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
SAFETY FIRE PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $123,330,906 $83,295,455 $50,358,296
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future
pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual
earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the
average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the
beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2019 measurement date is 5.7 years,
which is obtained by dividing the total service years of 2,505 (the sum of remaining lifetimes of active employees) by 441 (the
total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service
lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event
other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the net pension liability/(asset) is $82,270,700. For the measurement
period ending June 30, 2019 (the measurement date), the City incurred a pension expense/(income) of $12,637,403 for the plan.
Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any
contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2020, the City had deferred outflows of resources related to pensions of $9,645,594 for contributions made
subsequent to the measurement date, $7,156,812 for changes of assumptions, $273,347 for the differences between expected
and actual experiences and $0 for the net difference between projected and actual earnings on pension plan investments.
Deferred inflows of resources related to pensions were $1,193,144 for changes in assumptions and $3,460,295 for differences
between expected and actual experiences, and $916,370 for the net difference between projected and actual earnings on pension
plan investments.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension
revenue and expense amortized annually as follows:
Measurement Periods
Ended June 30:
Deferred Outflows/(Inflows)
of Resources
2020 $2,382,409
2021 $3,886
2022 $(53,332)
2023 $(294,541)
2024 $(178,072)
Remaining $0
89
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Safety Police Plan
Plan Description
The City’s Safety Police Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. The Safety Police Plan is an agent multiple-employer
plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers
within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes
within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract
with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial
report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street –
Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Police Plan include retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety
Police employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50.
Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is
applicable to employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest
retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to
employees hired after January 1, 2013 with a formula of 2% at age 57, which is a result of the PEPRA. PEPRA also lowered
the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the
PEPRA limit of $151,549, based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Safety Police Plan may be required to contribute a particular percent of their annual pay
depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those
employees under PEPRA (Tier III) will pay 13.25% of their salary. In addition, employees in Tier I have 8% their contribution
picked-up by the City after five years of service.
Section 20814(c) of the California 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.
As of June 30, 2019 (the measurement date), there are 385 active employees and 445 inactive employees or beneficiaries
receiving benefits. For the fiscal year ended June 30, 2020, the employee contribution rate was 9.797 percent of annual pay, and
the employer’s minimum contribution rate was 52.909 percent of annual payroll. Employer contribution rates may change if
plan contracts are amended.
90
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2019 (the measurement date), the total pension liability was determined by rolling
forward the June 30, 2018 total pension liability. The June 30, 2018 and the June 30, 2019 total pension liabilities were based
on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method
Fair Value of Assets. For details, see
June 30, 2016 Funding Valuation
Report
Inflation Rate 2.75%
Salary Increases Varies by Entry Age and Services
Payroll Growth 2.50%
Investment Rate of Return 7.15%[a]
Mortality[b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using Society of Actuaries 90% of scale MP-2106. For more details on this
table, please refer to the December 2017 experience study report.
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study
dated 2017 which was derived from data collected for the period from 1997 to 2015, including updates to salary increases,
mortality and retirement rates. The 2017 Experience Study report can be obtained at CalPERS’ website under Forms and
Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate
should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans 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 plans
run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate
calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public
Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report”
that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return
expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a
building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term
returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account
for assumed administrative expenses.
91
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
The table below reflects 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. The target allocation shown was adopted by the
CalPERS Board effective on July 1, 2016.
Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]
Global Equity 50.0%4.80%5.98%
Fixed Income 28.0%1.00%2.62%
Inflation Assets 0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Assets 13.0%3.75%4.93%
Liquidity 1.0%0%(0.92%)
[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
Increase (Decrease)
SAFETY POLICE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2018 [a]$504,873,449 $320,024,365 $184,849,084
Changes Recognized for the
Measurement Period:
- Service Cost 10,370,024 -10,370,024
- Interest on the Total
Pension Liability 35,663,211 -35,663,211
- Changes of Benefit Terms ---
- Differences between Expected
and Actual Experience 1,031,548 -1,031,548
- Changes in Assumptions ---
- Plan to Plan Resource Movement ---
- Contributions - Employer -17,184,398 (17,184,398)
- Contributions -Employees -3,604,241 (3,604,241)
- Net Investment Income -20,791,992 (20,791,992)
- Benefit Payments Including
Refunds of Employee Contributions (24,607,704)(24,607,704)-
- Administrative Expenses -(228,376)228,376
- Other Misc Income/(Expense) [b]-735 (735)
Net Changes during 2018-19 22,457,079 16,745,286 5,711,793
Balance at June 30, 2019 [a]$527,330,528 $336,769,651 $190,560,877
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may be different from the plan
assets reported in the funding actuarial valuation report.
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits 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.
92
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
SAFETY POLICE PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $266,623,965 $190,560,872 $128,724,864
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future
pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual
earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the
average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the
beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2019 measurement date is 5.4 years,
which is obtained by dividing the total service years of 4,934 (the sum of remaining lifetimes of active employees) by 919 (the
total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service
lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event
other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the net pension liability/(asset) is $184,849,084. For the measurement
period ending June 30, 2019 (the measurement date), the City incurred a pension expense/(income) of $28,092,825 for the plan.
Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any
contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2020, the City had deferred outflows of resources related to pensions of $20,997,751 for contributions made
subsequent to the measurement date, $13,542,205 for changes of assumptions, $3,366,320 for differences between expected
and actual experiences and $0 for the net difference between projected and actual earnings on pension plan investments.
Deferred inflows of resources related to pensions were $2,155,809 for changes in assumptions and $1,680,363 for differences
between expected and actual experiences, and $1,427,550 for the net difference between projected and actual earnings on
pension plan investments.
93
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension
revenue and expense amortized annually as follows:
Measurement Periods
Ended June 30:
Deferred Outflows/(Inflows)
of Resources
2020 $6,114,890
2021 $2,597,253
2022 $2,352,367
2023 $503,880
2024 $76,413
Remaining $0
CITYWIDE PENSION PLAN TOTALS Miscellaneous
Plan
Safety Fire
Plan
Safety Police
Plan
Citywide
Total
Net Pension Liability $168,029,116 $83,295,455 $190,560,877 $441,885,448
Deferred Outflows of Resources
Contributions Made Subsequent to Measurement Date 20,592,035 9,645,594 20,997,751 51,235,380
Differences Between Expected and
Actual Experiences -273,347 3,366,320 3,639,667
Changes of Assumptions 4,444,588 7,156,812 13,542,205 25,143,605
Total Deferred Outflows of Resources $25,036,623 $17,075,753 $37,906,276 $80,018,652
Deferred Inflows of Resources
Differences Between Expected and
Actual Experience $3,471,677 $3,460,295 1,680,363 $8,612,335
Net Differences Between Projected and
Actual Earnings 615,429 916,370 1,427,550 2,959,349
Changes of Assumptions 1,410,114 1,193,144 2,155,809 4,759,067
Total Deferred Inflows of Resources 5,497,220 5,569,809 5,263,722 16,330,751
Pension Liability Expense $27,366,744 $12,637,403 $28,092,825 $68,096,972
94
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Single Employer OPEB
Plan description: In addition to the employee retirement benefits described in Note 16, the City provides a single-employer
Post-Employment Retiree Medical Benefit Plan in accordance with a resolution approved by City Council. Two primary plans
exist. All employees with a retirement date prior to January 1, 1985 were eligible for benefits upon retirement. Post-1985
employees must retire with fifteen years accumulated service upon retirement to participate. The service requirement is waived
for safety employees who retire with a job-related disability.
Employees hired after the dates listed below will not participate in either of the retiree health subsidy programs mentioned:
Miscellaneous Employees February 22, 2006
Management and Supervisory March 22, 2006
Fire Safety May 5, 2006
Police Safety May 24, 2006
Benefits provided: For employees hired prior to the dates listed above, the City provides lifetime postretirement medical
benefits for eligible retirees and qualified dependents with a choice of three medical options: Blue Shield PPO, Kaiser High
Deductible Health Plan, and Kaiser Permanente HMO. Mental Health benefits are carved out and provided through Optum
Behavioral Health. After reaching eligibility for Medicare, retirees are offered a choice of Blue Shield PPO, Blue Shield
Medicare Advantage HMO or Kaiser Senior Advantage HMO. Retirees may also elect dental coverage but must self-pay the
premiums for such coverage. Vision coverage is not offered to retirees. Retiree rates are unblended from employee rates.
Employees covered by benefit terms: At June 30, 2020 the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently
receiving benefit payments 757
Active employees 513
1,270
Contributions. The City contributes 3% of the lowest single-party rate per year of service to a maximum of 90%. If the dollar
amount is greater than the premium for a retiree covered under one of the Medicare Advantage plans, the retiree receives a cash
reimbursement of the difference to a maximum of $42.50 per month. The City also contributes 42% of the Blue Shield PPO for
all retirees who elect the Blue Shield PPO plan, excluding Miscellaneous employees hired after April 1, 1996 and Safety
employees hired after April 1, 1998. The City has approximately 513 active employees who are eligible for the same level of
post-employment benefits and 757 retirees (and/or dependents) currently receiving benefits as of the actuarial dated June 30,
2020. There is not a separate, audited GAAP-basis pension report available for the Post-Employment Retiree Medical Benefit
Plan.
95
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to calculate the net OPEB
liability was determined by an actuarial valuation as of that date.
Actuarial assumptions. The total OPEB liability as of June 30, 2019 was determined by an actuarial valuations as of June 30,
2019. The actuarial assumptions used in the June 30, 2019 valuation were based on the December 2017 experience study
performed by the CalPERS actuary derived from the data collected during fiscal years 1997 to 2015.
Data
Detailed census data, premium data and/or claim
experience, and summary plan descriptions for OPEB
are provided by the City of Bakersfield
Actuarial Cost Method Entry Age Normal, Level percent of pay
Asset Valuation Method Fair Value
Measurement Date June 30, 2018
Discount Rate 5.00%
Inflation Rate 2.50%
Payroll Growth 3.00%
Salary Increases
Wage inflation rate (2.75%) plus merit and promotional
increases of between 3.34% to 13.02% based on years of
service
Mortality
Based on the 2017 experience study performed by
CalPERS derived from data collected during fiscal years
1997-2015.
The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which
expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage, and by adding expected inflation and subtracting expected
investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return, after deducting
inflation, but before deducting investment expenses, used in the derivation of the long-term expected rate of return assumption
are summarized in the following table:
Asset Class
Target
Allocation
Long-Term (Arithmetic)
Expected Real Rate of
Return (1)
Domestic Equity 24.34%6.40%
Developed International Equity 4.26 7.40
Emerging Markets Equity 2.01 9.80
Core Fixed Income 65.25 1.75
Real Estate 0.83 5.10
Short Term Money Market 3.31 1.10
Total 100%
(1) Long-term nominal rate of return less inflation of 2.5%. Municipal Bond Rate: 3.5% and 3.58% based on the 20-year municipal rate for the Bond Buyer
20-Bond Go Index as of June 30, 2020 and 2017, respectively.
Discount rate. The discount rate used to measure the total OPEB liability was 5.00% as of June 30, 2018 and 5.00% as of June
30, 2017. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be
made at the current contribution rate and that City contributions will be made at the rates equal to the actuarially determined
96
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Net OPEB Liability (continued)
contribution rates. For this purpose, only City contributions that are intended to fund benefits of current plan members and their
beneficiaries are included. Projected City contributions that are intended to fund the service costs of future plan members and
their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions,
the OPEB Plan's assets were projected to be sufficient to make all projected OPEB payments for current plan members.
Therefore, the long-term expected rate of return on OPEB Plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability as of both June 30, 2019 and June 30, 2018.
Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(a)(b)(a) - (b)
Beginning balances $143,707,623 $66,455,250 $77,252,373
Changes for the year:
Service cost 1,861,902 -1,861,902
Interest 7,113,376 -7,113,376
Differences between expected and actual experience (20,451,948)-(20,451,948)
Changes of assumptions and methods 3,844,143 -3,844,143
Employer contributions -7,940,057 (7,940,057)
Net investment income -4,882,723 (4,882,723)
Benefit payments (6,604,007)(6,604,007)-
Administrative expense -(196,306)196,306
Net changes (14,236,534)6,022,467 (20,259,001)
Ending balance $129,471,089 $72,477,717 $56,993,372
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the City
as of June 30, 2019, calculated using the discount rate of 5.00%, as well as what the City's net OPEB liability would be if it
were calculated using a discount rate that is 1-percentage-point lower (4.0 percent) or 1-percentage point higher (6.0 percent)
than the current discount rate:
1% Decrease
(4.0%)
Discount Rate
(5.0%)
1% Increase
(6.0%)
Net OPEB liability as of June 30, 2019 $77,545,870 $56,993,372 $40,525,237
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability
of the City as of June 30, 2019, calculated using the current healthcare cost trend rates as well as what the City's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point
higher than the current healthcare cost trend rates:
1% Decrease*
Healthcare Cost
Trend Rates*1% Increase*
Net OPEB liability as of June 30, 2019 $40,010,450 $56,993,372 $78,193,868
*Current trend rates: 6.75% graded to 4.50% over 10 year for City "Years of Service" Formula subsidy, 6.75% graded to
4.50% over 10 years for Special 42% Contribution Non-Medicare subsidy, and 6.25% graded to 4.50% over 8 years for Special
42% Contribution Medicare subsidy.
OPEB Plan fiduciary net position. Detailed information about the OPEB Plan's fiduciary net position is available in the
separately issued actuarial report.
97
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the reporting period year ended June 30, 2020, the City recognized OPEB expense of $(844,655). At June 30, 2020, the
City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Governmental Activities Business-type Activities
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of
assumptions $2,494,793 $1,664,477 $427,491 $285,215
Net difference between
projected and actual
earnings on OPEB
Plan investments -15,498,253 -2,655,688
Net excess of projected
over actual earnings
on OPEB Plan
investments -491,897 -84,288
City contributions
subsequent to the
measurement date 5,828,285 -998,700 -
Total $8,323,078 $17,654,627 $1,426,191 $3,025,191
The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB are recognized in
OPEB expenses as follows:
Fiscal Year
Ended:
Governmental
Activities
Amount
Business-type
Activities
Amount
2021 $(5,689,982)$(975,001)
2022 (5,135,752)(880,032)
2023 (3,494,599)(598,814)
2024 (839,500)(143,852)
Thereafter $-$-
98
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 18 -SPECIAL ASSESSMENT DISTRICTS
In addition to the Long-Term Obligations discussed in Note 11, the following Long-Term Obligations have been issued in the
name of Special Assessment Districts or Agencies of the City. Neither the City, nor its Agencies, are obligated in any manner
for the repayment of these obligations. The City acts as an agent to property owners for the collection and repayment of Special
Assessment Debt.
Outstanding at
June 30, 2020
Assessment District 01-1*(Ming at Allen/Mountain Vista; Hampton Place)$280,000
Assessment District 01-2*(Seven Oaks West II/Riverwalk/Southern Oaks)1,090,000
Assessment District 01-3*(Mountain Vista/San Lauren)765,000
Assessment District 02-1*(Avalon/Belsera/Montara/The Woods)355,000
Assessment District 03-1*(Brighton Place/Silver Creek II)730,000
Assessment District 03-2*(Buena Vista Ranch/Belsera II/Monstera II/Olive Park II)580,000
Assessment District 03-3*(Seven Oaks West III/Brighton Place)1,635,000
Assessment District 04-1**(Countryside/The Homestead)1,150,000
Assessment District 04-2**(BL/BV/ST@Allen Com)1,395,000
Assessment District 04-3**(Solera/Rio Vista)950,000
Assessment District 05-1 (City in the Hills)5,890,000
Assessment District 05-3**(Liberty II/Village Green/Tesoro/Encanto)2,785,000
Assessment District 06-1**(Etcheverry/Lin II/University Park)2,350,000
Assessment District 07-2 (Sydney Harbour)1,170,000
$21,125,000
*Note: These ten districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The
City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
**Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to
properly monitor the individual principal balances and various maturity dates.
99
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT
Self-Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions;
injuries to employees; and natural disasters. The City established a Self-Insurance Fund (an internal service fund) to account for
and finance its uninsured risks of loss. Under this program, the Self-Insurance Fund provides coverage for up to $500,000 for
each workers’ compensation claim and $1,000,000 for each liability claim. The City participates in a joint powers authority for
workers’ compensation claims in excess of coverage provided by the fund up to statutory limits and participates in a joint
powers authority for any excess liability claims. All funds of the City participate in the program and are charged for their share
of claim expenditures. The claims liability of $56,494,191 at June 30, 2020 is based on the requirements of GASB Statement
No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements
indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss
can be reasonably estimated. An estimate of incurred but not reported claims has been included in the liability based on the
various percentages of loss reserves.
Changes in the fund's claims liability over the last three fiscal years is shown below:
Liability
at Beginning
of Year
Current Year
Claims and
Changes in
Estimates
Claims
Payments
Liability
at End
of Year
2017-2018 $44,624,392 $14,674,483 $11,734,224 $47,564,651
2018-2019 47,564,651 14,538,671 13,576,021 48,527,301
2019-2020 48,527,301 21,759,156 13,792,266 56,494,191
Joint Powers Authority
The City has obtained excess liability coverage through the Authority for California Cities Excess Liability (ACCEL), a joint
powers authority of medium-size California municipalities. ACCEL pools catastrophic general liability, automobile liability
and public officials' errors and omissions losses, or purchases excess insurance, depending on market conditions. Each
member's share of pooled costs will depend on the catastrophic losses of all the members. In addition, the cost to a member city
will also depend on that member's own loss experience. Entities with a consistent record of costly claims will pay more than
entities with a consistent record of less serious claims activity.
In order to provide funds to pay claims, or purchase excess insurance, ACCEL collects a deposit from each member. The
deposits will be credited with investment income at the rate earned on ACCEL's investments. Based on information received
from ACCEL as of June 30, 2020, the City had $1,000,347 on deposit with ACCEL out of a total of approximately $9,839,598.
The following municipalities are also members of ACCEL: Palo Alto, Santa Barbara, Visalia, Modesto, Ontario, Santa
Monica, Anaheim, Santa Cruz, Mountain View, Burbank, Monterey, and Gardena. A representative from each member city,
appointed to the position by their respective city councils, serves on the Board of Directors (Board) of ACCEL. The Board is
responsible for deciding the risks ACCEL will underwrite, monitoring the costs of large claims and arranging financial
programs. Each member of the Board has an equal vote in matters concerning ACCEL.
As of June 30, 2020, ACCEL had no long-term debt. Included in total liabilities is an estimated retrospectively rated refund of
$0. Complete financial statements of ACCEL can be obtained at the City’s Finance Department at 1600 Truxtun Avenue,
Bakersfield, CA 93301.
100
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT (continued)
A summary of the financial information for ACCEL at June 30, 2020 is as follows:
Total assets $40,427,154
Total liabilities 42,597,533
Total members' net position $(2,170,379)
Total revenues $24,305,949
Total expenses 28,250,181
Net change in members' net position $(3,944,232)
NOTE 20 - COMMITMENTS AND CONTINGENCIES
Several claims and suits have been filed against the City in the normal course of business. In the opinion of management and
the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial
statements of the City. Also, the City has certain commitments under long-term construction projects which will be funded out
of future revenues.
The entire capacity of the former sanitary landfill has been used. The State has required environmental closure and capping of
the City's former sanitary landfill and remediation of the adjacent burn dump. Although these two waste disposal areas are
adjacent to each other, the City completed the remediation of the burn dump separately, through the State's Expedited Remedial
Action Program, in 1998. The cost of remediation for the burn dump of $1.8 million was funded by the City's Refuse Service
Fund and was expensed in prior fiscal years. The landfill closure was completed in May 2013 at a cost of $4.8 million. The
City’s net share of this joint City/County project was approximately $3 million. Kern County reimbursed the City for the
remaining $1.8 million.
The City will be required to perform post-closure monitoring and maintenance of the landfill after it is closed and capped. This
will result in an ongoing annual cost of approximately $150,000. The City will be responsible for about $125,000 of these
annual charges because most of these costs will be for the landfill gas management system, which is the City's responsibility.
Kern County will be responsible for reimbursing the City for the remainder. City management anticipates all closure and post-
closure costs being covered by annual Refuse Service Fund revenues. These estimates of cost are subject to future adjustment
for inflation or deflation, technology, or applicable laws or regulations.
101
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 21 - ENCUMBRANCES
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded
as encumbrances in order to reserve that portion of the applicable appropriation. Encumbrances outstanding as of June 30, 2020
consisted of the following:
Governmental Funds:
Major Funds:
General Fund $1,286,109
Transient Occupancy Taxes Fund 80,647
Community Development Block Grant Fund 1,356,047
Gas Tax & Road Fund 162,920,883
Capital Outlay Fund 29,919,946
Park Improvement Fund 15,950
Transportation Development Fund 19,169,306
Redevelopment Successor Agency - Housing 251,215
Non-Major Funds:
State (TDA) Transportation Fund 191,314
State Safety Fund 131,136
Proprietary Funds:
Major Funds:
Wastewater Treatment Fund 3,698,961
Refuse Collection Fund 395,558
River & Agriculture Water Fund 352,436
Domestic Water Fund 2,198,918
General Aviation Fund 11,100
Offstreet Parking Fund 117,113
Internal Service Funds:
Self-Insurance Fund 138,882
Equipment Management Fund 10,624,835
$232,860,356
102
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS
The City has been associated with the issuance of various health care, residential care, mortgage, commercial and industrial
development debt issues. These debt obligations were issued under provisions of State and Federal laws that explicitly state
that they do not constitute any indebtedness of the City. The City’s sole involvement with these bonds was their issuance under
the City’s name or the City Council’s authorization. As such, the following conduit debt obligations are not reflected in the
accompanying basic financial statements:
Authorized and
Issued
Current
Outstanding at
June 30, 2020
City of Bakersfield - Cottonwood Village Housing Bond,
Series 2004 $5,000,000 $5,000,000
City of Bakersfield - Cottonwood Court Housing Bond,
Series 2004 1,950,000 1,950,000
City of Bakersfield - St. John Manor Housing Bond,
Series 2006 3,867,794 2,465,756
City of Bakersfield - Coventry Apartments Housing Bond,
Series 2007M 5,300,000 3,399,132
City of Bakersfield - Catholic Healthcare West 501(c)(3)
Nonprofit Bond, Series A thru L 676,250,000 240,000,000
City of Bakersfield - Descanso Place Housing Bond,
Series TT 13,000,000 1,400,000
City of Bakersfield - Bakersfield Family Apartments Housing
Bond, Series 2008R 10,971,000 1,060,317
City of Bakersfield - Camellia Place Housing Bond,
Series 2009R 619,138 619,118
City of Bakersfield - Eucalyptus Village I Housing Bond,
Series 2012-E1 1,295,000 1,295,000
City of Bakersfield - Eucalyptus Village II Housing Bond,
Series 2012-E2 4,275,000 4,275,000
City of Bakersfield - American Baptist Homes of The West
501(c)(3) Nonprofit Bond, Series 2015 52,080,000 52,080,000
TOTAL $313,544,323
103
CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 23 - PRIOR PERIOD ADJUSTMENTS
During the fiscal year ended June 30, 2020, the City made the following prior period adjustment to restate the net position for
governmental activities related fund balance for: 1) Net Position for Governmental Activities was adjusted after review of
capital assets identified capital asset additions and disposals were not properly recorded. See corresponding changes in
statements on p. 24.
Net Position Accounts
Activity
July 1, 2019
as previously
reported Adjustment
July 1, 2019,
as
restated
Net Position - Governmental Activities $1,141,286,874 $2,512,504 $1,143,799,378
NOTE 24 -SUBSEQUENT EVENT
In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure
through January 25, 2021, the date the financial statements were available to be issued.
As a result of the spread of the COVID-19 pandemic, there are economic uncertainties that continue to generate the possibility
of negative impacts to the City. The full extent of the financial impact is unknown at this time.
To help mitigate those impacts On August 12, 2020, the City Council amended the budget to establish appropriations of Federal
Coronavirus Relief Fund CARES Act dollars, via the State of California’s Department of Finance. As part of the State’s
adopted FY 2021 budget, approximately $33.5 million in funding will be passed from the State to the City to provide assistance
to the City, individuals, businesses and non-profits in response to the economic and public health related impacts of COVID-19.
These funds will be used to reimburse some costs incurred in fiscal year 2019-20 and programs initiated in fiscal year 2020-21.
104
CITY OF BAKERSFIELD
Required Supplementary Information
BUDGETARY INFORMATION
Through the budget process, the City Council sets the direction of the City, allocates its resources and establishes its priorities.
The Annual Budget assures the efficient and effective use of the City's economic resources, as well as establishing that the
highest priority objectives are accomplished. Budgets are adopted for all governmental fund types and are prepared on a basis
consistent with accounting principles generally accepted in the United States of America.
The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to
the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of
effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and
adjustment of the City's performance.
The City's budget is prepared and based on four expenditure categories: personnel, supplies and services, minor capital outlay
and capital improvement programs. The first three listed are considered operational in nature and known as recurring costs.
Capital improvement projects are asset acquisitions, facilities systems, and infrastructure improvements typically over $50,000,
and/or those items "outside" of the normal operational budget. These are known as one-time costs.
The City collects and records revenue and expenditures within the following categories:
Governmental Activities
Business-Type Activities
The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding
sources are kept separate for both reporting and use of the money. The General Fund is where most City services are funded
that are not required to be segregated.
The budget process begins as a team effort in January of each year, starting with an annual strategic planning meeting. Then the
individual departments use projected revenue assumptions to prioritize and recommend the next fiscal year's objectives. The
City Manager's Office and the Finance Department review all budget proposals and revenues assumptions, as well as all current
financial obligations before preparing the document that is proposed to the City Council. The City Council reviews the
Proposed Budget through a series of workshops, and the final adoption of the budget is normally scheduled for the second City
Council meeting each June.
At the beginning of each fiscal year, certain appropriations are "carried forward" from the prior budget year. These items
generally relate to either open encumbrances that exist at June 30, or capital projects that were budgeted in the prior fiscal year
that did not progress to the encumbrance stage as of June 30. The City Manager's Office approves all carryovers that are not
encumbered as of June 30 of each year.
The amounts carried forward from fiscal year ended June 30, 2019 to fiscal year ended June 30, 2020 totaled $427,943,242.
105
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
These following schedules represent budgetary comparisons for the General Fund and all major special revenue funds within
the City.
Budgetary Comparison Schedule, General Fund
For the Fiscal Year Ended June 30, 2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $54,632,934 $54,632,934 $54,632,934 $-
Revenues:
Taxes 235,026,800 241,181,800 245,011,776 3,829,976
Licenses and permits 2,867,405 2,867,405 3,138,985 271,580
Intergovernmental 2,261,300 8,281,873 6,784,347 (1,497,526)
Charges for services 24,218,556 24,472,120 23,486,070 (986,050)
Fines, forfeitures and assessments 760,000 760,000 823,556 63,556
Interest income 395,000 395,000 1,151,675 756,675
Contributions and donations 170,000 584,106 511,590 (72,516)
Other 965,939 965,939 2,200,864 1,234,925
Transfers from other funds 5,500,000 1,200,000 1,200,000 -
Amount available for appropriation $272,165,000 $280,708,243 $284,308,863 $3,600,620
Expenditures:
General government $16,250,680 $16,706,919 $14,546,339 $2,160,580
Public safety - Police 108,009,886 110,843,541 105,126,720 5,716,821
Public safety - Fire 43,257,951 44,396,056 43,301,126 1,094,930
Public works 24,816,429 25,766,487 23,836,283 1,930,204
Recreation and parks 23,114,837 23,421,627 22,198,374 1,223,253
Development services 13,171,219 18,979,576 11,054,347 7,925,229
Non-departmental 14,772,436 19,029,011 8,285,675 10,743,336
Contingency 250,000 250,000 4,869 245,131
Transfers to other funds 44,331,562 41,863,365 41,863,365 -
Total charges to appropriations 287,975,000 301,256,582 270,217,098 31,039,484
Amount of resources over (under)
charges to appropriations (15,810,000)(20,548,339)14,091,765 34,640,104
Fund balance, June 30 $38,822,934 $34,084,595 $68,724,699 $34,640,104
106
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund
For the Fiscal Year Ended June 30, 2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $1,002,829 $1,002,829 $1,002,829 $-
Revenues:
Taxes 9,900,000 9,900,000 8,913,147 (986,853)
Charges for services 9,595,582 9,595,582 7,149,064 (2,446,518)
Interest income 40,000 40,000 100,521 60,521
Contributions and donations 1,200,000 1,200,000 1,200,000 -
Other income --555,609 555,609
Transfers from other funds -10,000 10,000 -
Amount available for appropriation $20,735,582 $20,745,582 $17,928,341 $(2,817,241)
Expenditures:
General government $11,125,537 $11,270,797 $9,070,045 $2,200,752
Non-departmental 3,134,526 3,134,526 3,134,525 1
Transfers to other funds 6,293,349 6,293,349 4,144,791 2,148,558
Total charges to appropriations 20,553,412 20,698,672 16,349,361 4,349,311
Amount of resources over (under)
charges to appropriations 182,170 46,910 1,578,980 1,532,070
Fund balance, June 30 $1,184,999 $1,049,739 $2,581,809 $1,532,070
Budgetary Comparison Schedule, Community Development Block Grant Fund
For the Fiscal Year Ended June 30, 2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $616,909 $616,909 $616,909 $-
Revenues:
Intergovernmental 5,922,653 18,052,335 6,890,815 (11,161,520)
Charges for services --5,934 5,934
Interest income --1,556 1,556
Loan payments 175,868 175,868 241,524 65,656
Other income --8,832 8,832
Transfer from other funds -371,871 371,871 -
Amount available for appropriation $6,098,521 $18,600,074 $7,520,532 $(11,079,542)
Expenditures:
Community development $3,700,251 $13,261,417 $4,755,680 $8,505,737
Capital outlay 1,973,097 4,858,822 1,963,300 2,895,522
Transfers to other funds 512,791 512,791 512,790 1
Total charges to appropriations 6,186,139 18,633,030 7,231,770 11,401,260
Amount of resources over (under)
charges to appropriations (87,618)32,956 288,762 321,718
Fund balance, June 30 $529,291 $583,953 $905,671 $321,718
107
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $12,902,757 $12,902,757 $12,902,757 $-
Revenues:
Intergovernmental 20,341,976 290,165,227 109,112,347 (181,052,880)
Charges for service -40,000 73,584 33,584
Fines, forfeitures and assessments 40,000 40,000 43,671 3,671
Interest income 205,000 205,000 146,626 (58,374)
Amount available for appropriation $20,586,976 $290,450,227 $109,376,228 $(181,073,999)
Expenditures:
Public works $3,800,975 $3,800,975 $3,494,733 $306,242
Capital outlay 16,140,814 299,145,764 110,120,303 189,025,461
Total charges to appropriations (19,941,789)(302,946,739)(113,615,036)189,331,703
Amount of resources over (under)
charges to appropriations 645,187 (12,496,512)(4,238,808)8,257,704
Fund balance, June 30 $13,547,944 $406,245 $8,663,949 $8,257,704
Budgetary Comparison Schedule, Redevelopment Successor Agency Housing Fund
For the Fiscal Year Ended June 30, 2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $2,168,569 $2,168,569 $2,168,569 $-
Revenues:
Charges for service 102,862 -102,907 102,907
Interest income 10,000 -43,540 43,540
Other income --214,840 214,840
Amount available for appropriation $112,862 $-$361,287 $361,287
Expenditures:
Capital outlay --6,735 (6,735)
Amount of resources over (under)
charges to appropriations 112,862 -354,552 354,552
Fund balance, June 30 $2,281,431 $2,168,569 $2,523,121 $354,552
108
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN
The Schedules of Changes in Net Pension Liability and Related Ratios as of the Measurement Period ending June 30, 2019 are
below:
MISCELLANEOUS PLAN [a][e]
Fiscal Year end: 2020
Measurement Date: 2019 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service Costs $9,761,680 $9,865,219 $10,121,201 $9,229,271 $9,371,317 $9,394,857
Interest on Total Pension Liability 40,017,148 38,377,061 37,355,571 36,457,017 34,880,653 33,174,032
Changes of Benefit Terms ------
Changes in Assumptions -(3,069,067)31,112,110 -(8,541,600)-
Difference Between Expected and Actual
Experience 1,681,960 (4,948,406)(8,386,592)(2,271,125)(682,929)-
Benefit Payments [b](27,756,407)(26,111,942)(23,977,515)(21,951,615)(20,655,868)(18,737,652)
Net Change in Total Pension Liability $23,704,381 $14,112,865 $46,224,775 $21,463,548 $14,371,573 $23,831,237
Total Pension Liability - Beginning 566,995,807 552,882,942 506,658,167 485,194,619 470,823,046 446,991,809
Total Pension Liability - Ending [1]$590,700,188 $566,995,807 $552,882,942 $506,658,167 $485,194,619 470,823,046
Plan Fiduciary Net Position
Contributions - Employer $15,201,992 $13,222,781 $11,107,872 $10,734,470 $10,017,697 $9,220,181
Contributions - Employee 3,956,979 4,245,043 4,188,806 4,400,305 4,653,169 4,566,671
Net Investment Income 26,318,678 32,008,762 39,138,504 1,891,631 7,966,951 53,513,763
Other Miscellaneous Income ------
Benefit Payments [b](27,756,407)(26,111,942)(23,977,515)(21,951,615)(20,655,868)(18,737,652)
Plan to Plan Resource Movement -(939)-(40,308)--
Administrative Expense (289,187)(597,766)(522,173)(218,704)(403,815)-
Other Misc Income/(Expense)939 (1,135,167)----
Net Change in Plan Fiduciary Net Position $17,432,994 $21,630,772 $29,935,494 $(5,184,221)$1,578,134 $48,562,963
Plan Fiduciary Net Position - Beginning $405,238,078 $383,607,306 $353,671,812 $358,856,033 $357,277,899 $308,714,936
Plan Fiduciary Net Position - Ending [2]422,671,072 405,238,078 383,607,306 353,671,812 358,856,033 357,277,899
Plan Net Pension Liability - [1]-[2]$168,029,116 $161,757,729 $169,275,636 $152,986,355 $126,338,586 $113,545,147
Plan Fiduciary Net Position as a
Percentage
of the total pension liability %71.55 %71.47 %69.38 %69.80 %73.96 %75.88
Covered Employee Payroll $55,934,450 $55,301,410 $56,388,660 $56,837,487 $57,065,633 $53,054,308
Plan Net Pension Liability as a Percentage
of Covered Employee Payroll %300.40 %292.50 %300.19 %269.16 %221.39 %214.02
Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015 2014
Actuarially Determined Contribution [c]$15,201,992 $13,222,781 $11,107,872 $10,734,470 $10,017,697 $9,220,181
Contributions in Relation to the Actuarially
Determined Contribution [c]$(15,201,992)$(13,222,781)$(11,107,872)$(10,734,470)$(10,017,697)$(9,220,181)
Contribution Deficiency (Excess)$0 $0 $0 $0 $0 $0
Covered Employee Payroll [d]$55,934,450 $55,301,410 $56,388,660 $56,837,487 $57,065,623 $53,054,308
Contributions as a Percentage of Covered
Employee Payroll %27.18 %23.91 %19.70 %18.89 %17.55 %17.38
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show
that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their
unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for
voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019. In 2018, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported
reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014,
amounts reported were based on the 7.5 percent discount rate.
109
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
SAFETY FIRE PLAN [a][e]
Fiscal Year end: 2020
Measurement Period: 2019 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service Costs $4,554,882 $4,690,651 $4,691,377 $3,982,592 $4,038,459 $4,022,753
Interest on Total Pension Liability 20,357,836 19,788,058 19,273,519 18,906,125 18,125,192 17,409,125
Changes of Benefit Terms ------
Changes in Assumptions -(1,346,780)16,102,827 -(4,419,326)-
Difference Between Expected and Actual
Experience (1,450,007)(1,205,127)(3,292,736)880,783 (357,892)-
Benefit Payments [b](15,465,768)(14,518,038)(13,914,493)(13,350,272)(12,266,190)(11,440,930)
Net Change in Total Pension Liability $7,996,943 $7,408,764 $22,860,494 $10,419,228 $5,120,243 $9,990,948
Total Pension Liability - Beginning 291,630,432 284,221,668 261,361,174 250,941,946 245,821,703 235,830,755
Total Pension Liability - Ending [1]$299,627,375 $291,630,432 $284,221,668 $261,361,174 $250,941,946 $245,821,703
Plan Fiduciary Net Position
Contributions - Employer $7,433,992 $6,452,089 $5,766,115 $5,299,399 $4,717,136 $4,243,095
Contributions - Employee 1,590,164 1,612,168 1,585,475 1,575,291 1,496,855 1,485,484
Net Investment Income 13,562,717 16,662,233 20,512,738 920,604 4,369,856 29,300,590
Other Miscellaneous Income ------
Benefit Payments [b](15,465,768)(14,518,038)(13,914,493)(13,350,272)(12,266,190)(11,440,930)
Plan to Plan Resource Movement -(487)--(13)-
Administrative Expense (149,404)(311,742)(275,179)(117,046)(216,134)-
Other Misc Income/(Expense)487 (592,003)----
Net Change in Plan Fiduciary Net Position $6,972,188 $9,304,220 $13,674,656 $(5,672,024)$(1,898,490)$23,588,239
Plan Fiduciary Net Position - Beginning $209,359,732 $200,055,512 $186,380,856 $192,052,880 $193,951,370 $170,363,131
Plan Fiduciary Net Position - Ending [2]216,331,920 209,359,732 200,055,512 186,380,856 192,052,880 193,951,370
Plan Net Pension Liability - [1]-[2]$83,295,455 $82,270,700 $84,166,156 $74,980,318 $58,889,066 $51,870,333
Plan Fiduciary Net Position as a
Percentage
of the total pension liability %72.20 %71.79 %70.39 %71.31 %76.53 %78.90
Covered Employee Payroll $16,904,368 $17,260,904 $17,071,347 $16,365,695 $16,338,791 $15,554,085
Plan Net Pension Liability as a Percentage
of Covered Employee Payroll %492.75 %476.63 %493.03 %458.16 %360.42 %333.48
Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015 2014
Actuarially Determined Contribution [c]$7,433,992 $6,452,089 $5,766,115 $5,299,399 $4,717,136 $4,243,095
Contributions in Relation to the Actuarially
Determined Contribution [c]$(7,433,992)$(6,452,089)$(5,766,115)$(5,299,399)$(4,717,136)$(4,243,095)
Contribution Deficiency (Excess)$0 $0 $0 $0 $0 $0
Covered Employee Payroll [d]$16,904,368 $17,260,904 $17,071,347 $16,365,695 $16,338,791 $15,554,085
Contributions as a Percentage of Covered
Employee Payroll %43.98 %37.38 %33.78 %32.38 %28.87 %27.28
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show
that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their
unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for
voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019. In 2018, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported
reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014,
amounts reported were based on the 7.5 percent discount rate.
110
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
SAFETY POLICE PLAN [a][e]
Fiscal Year End: 2020
Measurement Period: 2019 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service Costs $10,370,024 $10,220,547 $10,633,847 $9,484,234 $8,534,322 $8,823,744
Interest on Total Pension Liability 35,663,211 34,128,107 32,733,299 31,506,218 29,736,286 28,279,962
Changes of Benefit Terms ------
Changes in Assumptions -(2,726,217)29,167,825 -(7,760,962)-
Difference Between Expected and Actual
Experience 1,031,548 1,792,996 (3,619,242)4,042,528 872,107 -
Benefit Payments [b](24,607,704)(23,362,241)(22,076,716)(20,226,151)(19,077,307)(17,776,028)
Net Change in Total Pension Liability $22,457,079 $20,053,192 $46,839,013 $24,806,829 $12,304,446 $19,327,678
Total Pension Liability - Beginning 504,873,449 484,820,257 437,981,244 413,174,415 400,869,969 381,542,291
Total Pension Liability - Ending [1]$527,330,528 $504,873,449 $484,820,257 $437,981,244 $413,174,415 400,869,969
Plan Fiduciary Net Position
Contributions - Employer $17,184,398 $15,159,139 $14,646,334 $13,792,487 $12,287,267 $10,750,572
Contributions - Employee 3,604,241 3,650,956 3,426,099 3,794,305 3,238,371 2,920,326
Net Investment Income 20,791,987 25,183,248 30,690,942 1,419,472 6,082,288 41,170,702
Other Miscellaneous Income ------
Benefit Payments [b](24,607,704)(23,362,241)(22,076,716)(20,226,151)(19,077,307)(17,776,028)
Plan to Plan Resource Movement -(740)-40,308 --
Administrative Expense (228,376)(468,655)(405,238)(168,097)(313,848)-
Other Misc Income/(Expense)740 (889,985)----
Net Change in Plan Fiduciary Net Position $16,745,286 $19,271,722 $26,281,421 $(1,347,676)$2,216,771 $37,065,572
Plan Fiduciary Net Position - Beginning $320,024,365 $300,752,643 $274,471,222 $275,818,898 $273,602,127 $236,536,555
Plan Fiduciary Net Position - Ending [2]336,769,651 320,024,365 300,752,643 274,471,222 275,818,898 273,602,127
Plan Net Pension Liability - [1]-[2]$190,560,877 $184,849,084 $184,067,614 $163,510,022 $137,355,517 $127,267,842
Plan Fiduciary Net Position as a
Percentage
of the total pension liability %63.86 %63.39 %62.03 %62.67 %66.76 %68.25
Covered Employee Payroll $35,362,400 $34,555,725 $35,225,410 $35,046,314 $30,842,116 $30,496,107
Plan Net Pension Liability as a Percentage
of Covered Employee Payroll %538.88 %534.93 %522.54 %466.55 %445.35 %417.32
Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015 2014
Actuarially Determined Contribution [c]$17,184,398 $15,159,139 $14,646,334 $13,792,487 $12,287,267 $10,750,572
Contributions in Relation to the Actuarially
Determined Contribution [c]$(17,184,398)$(15,159,139)$(14,646,334)$(13,792,487)$(12,287,267)$(10,750,572)
Contribution Deficiency (Excess)$0 $0 $0 $0 $0 $0
Covered Employee Payroll [d]$35,362,400 $34,555,725 $35,225,410 $35,046,314 $30,842,116 $30,496,107
Contributions as a Percentage of Covered
Employee Payroll %48.60 %43.87 %41.58 %39.36 %39.84 %35.25
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show
that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their
unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for
voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019. In 2018, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported
reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014,
amounts reported were based on the 7.5 percent discount rate.
111
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN - SCHEDULE OF CHANGES IN THE CITY'S NET
OPEB LIABILITY AND RELATED RATIOS
Total OPEB liability [a]2020 2019 2018
Service Cost [b]$1,861,902 $1,975,894 $2,149,804
Interest 7,113,376 6,986,837 7,329,180
Difference between expected and actual experience (20,451,948)(762,025)(6,042,345)
Changes of assumptions and methods 3,844,143 -(5,330,662)
Benefit payments (6,604,007)(4,507,862)(5,050,000)
Net Change in Total OPEB Liability (14,236,534)3,692,844 (6,944,023)
Total OPEB Liability - beginning 143,707,623 140,014,779 146,958,802
Total OPEB Liability - ending (a)$129,471,089 $143,707,623 $140,014,779
Plan Fiduciary Net Position
Contributions - employer $7,940,057 $7,527,447 $5,050,000
Net investment income 4,882,723 2,017,934 3,011,528
Benefit payments (6,604,007)(4,507,862)(5,050,000)
Administrative expense (196,306)(188,705)(180,556)
Net change in Plan Fiduciary Net Position 6,022,467 4,848,814 2,830,972
Plan Fiduciary Net Position - beginning 66,455,250 61,606,436 58,775,464
Plan Fiduciary Net Position - ending (b)72,477,717 66,455,250 61,606,436
Plan's Net OPEB Liability - ending (a)-(b)$56,993,372 $77,252,373 $78,408,343
Plan Fiduciary Net Position as a percentage of the Total OPEB Liability 55.98%46.24%44.00%
Covered employee payroll $39,698,602 $46,166,357 $44,930,761
Plan Net OPEB Liability as percentage of covered employee payroll 143.57%167.33%174.51%
[a] additional years' information will be displayed as it becomes available
[b] The service cost is based on previous years' valuation.
112
CITY OF BAKERSFIELD
Required Supplementary Information (continued)
SCHEDULE OF OPEB CONTRIBUTIONS
Last Ten Fiscal Years
Year Ended
June 30
Actuarially
Determined
Contributions in
Relation
Contribution
Deficiency Covered
Contributions
As a Percentage
of Covered
Date Contributions (ADC)To ADC (Excess)Payroll Payroll
2010 $9,495,763 $6,283,456 $3,212,307 $63,685,205 9.87%
2011 9,495,763 5,509,340 3,986,423 60,284,949 9.14%
2012 8,006,053 16,832,576 (8,826,523)60,284,949 27.92%
2013 8,006,053 10,292,900 (2,286,847)56,277,827 18.29%
2014 6,539,299 6,950,125 (410,826)53,368,986 13.02%
2015 6,539,299 8,038,622 (1,499,323)50,985,920 15.77%
2016 7,530,031 5,645,839 1,884,192 44,930,761 12.57%
2017 7,530,031 5,050,000 2,480,031 44,930,791 11.24%
2018 6,973,711 7,527,447 (553,736)46,166,357 16.31%
2019 6,973,711 7,940,057 (966,346)39,698,602 20.00%
Notes to the Schedule of OPEB Contributions
Methods and assumptions used to establish "actuarially
determined contribution" (ADC) rates:
Valuation date ADC are based on the beginning of the applicable period.
Actuarial cost method Projected Unit Credit
Amortization method 30-year closed, level dollar payment
Remaining amortization period 18 years as of June 30, 2018
Asset valuation method Fair value
Actuarial assumptions:June 30, 2017 valuation
Investment rate of return 5.00%
Inflation rate N/A
Payroll growth 3.00%
Same as those used in the June 30, 2017 GASB 74 actuarial
valuation dated May 8, 2018
Other assumptions
113
114
CITY OF BAKERSFIELD
Supplementary Information
Contents Pages(s)
General Fund
Balance Sheet 118
Schedule of Revenues by Function - Budget and Actual 119
Schedule of Expenditures by Division - Budget and Actual 120
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Public Safety and Vital Services Funds 121
Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual 124
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual 129
Capital Projects Funds
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual 132
Internal Service Funds
Combining Statement of Net Position 135
Combining Statement of Activities and Changes in Net Position 136
Combining Statement of Cash Flows 137
Fiduciary Funds
Statement of Changes in Assets and Liabilities - Fiduciary Funds
(Agency)
138
Combining Statements of Fiduciary Net Position 139
Combining Statements of Changes in Fiduciary Net Position 141
Non-Major Governmental Funds
Combining Balance Sheet 144
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances 146
Long-term Debt Recorded in Private Purpose Trust Fund 148
115
General Fund
This fund was established to account for the revenues and expenditures to carry out basic governmental activities of the City of
Bakersfield such as general government, public safety, public works and community services.
Revenues are recorded by source, i.e., taxes, licenses and permits, etc. Expenditures are made primarily on current day-to-day
operations and are recorded by major functional classifications and by operating departments.
This fund accounts for all financial transactions not accounted for in another fund.
116
117
CITY OF BAKERSFIELD
Balance Sheet
General Fund
June 30, 2020
General Fund
Assets:
Cash and investments $35,194,867
Accounts receivable, net 8,302,273
Interest receivable 229,698
Due from other governmental agencies 31,497,968
Due from other funds 14,074,339
Prepaid items 5,590
Total assets $89,304,735
Liabilities, Deferred Inflows of Resources and Fund Balance:
Liabilities:
Accounts payable $7,810,057
Advances from grantors and third parties 9,559,945
Total liabilities 17,370,002
Deferred Inflows of Resources:
Deferred revenue 3,210,033
Fund Balance:
Nonspendable 44,314
Committed
Cash basis reserve 26,576,850
Contractual obligations 818,543
Appropriations for new year budget 22,415,752
Assigned
Petty cash 28,570
Non-contractual encumbrances 467,567
Compensated absences 3,264,114
Public Safety Vital Services 15,108,989
Total fund balance 68,724,699
Total liabilities, deferred inflows of resources and fund balance $89,304,734
118
CITY OF BAKERSFIELD
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2020
Budget Actual
Variance with
Final Budget
Revenues:
Taxes:
Property taxes $86,082,800 $85,558,776 $(524,024)
Sales and use taxes 144,679,000 148,259,133 3,580,133
Property transfer tax 1,100,000 1,341,620 241,620
Utility franchise tax 5,070,000 5,951,389 881,389
Business license tax 4,250,000 3,900,858 (349,142)
Total taxes 241,181,800 245,011,776 3,829,976
Licenses and permits:
Building permits 1,700,000 1,787,475 87,475
Planning permits 74,375 69,949 (4,426)
Public works permits 585,000 780,359 195,359
Police permits 321,700 345,705 24,005
Other licenses and permits 186,330 155,497 (30,833)
Total licenses and permits 2,867,405 3,138,985 271,580
Intergovernmental:
Federal grants 2,350,033 1,143,639 (1,206,394)
State of California 5,366,277 5,231,642 (134,635)
Other grants 565,563 409,066 (156,497)
Total intergovernmental 8,281,873 6,784,347 (1,497,526)
Charges for services:
Building 3,062,500 3,502,257 439,757
Planning 672,346 405,923 (266,423)
Public works 1,241,750 1,179,221 (62,529)
Police 775,524 933,453 157,929
Fire 6,200,000 6,503,888 303,888
Recreation and parks 875,000 411,701 (463,299)
Interfund charges 11,485,000 10,364,922 (1,120,078)
Other charges 160,000 184,705 24,705
Total charges for services 24,472,120 23,486,070 (986,050)
Fines, forfeitures, and assessments 760,000 823,556 63,556
Miscellaneous:
Interest income 395,000 1,057,246 662,246
Net increase (decrease) in the fair value of investments -94,429 94,429
Contributions and donations 584,106 511,590 (72,516)
Other income 965,939 2,200,864 1,234,925
Total miscellaneous 1,945,045 3,864,129 1,919,084
Total revenues $279,508,243 $283,108,863 $3,600,620
119
CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2020
Budget Actual
Variance with
Final Budget
General Government:
Mayor & City council $422,626 $414,777 $7,849
City manager 1,483,836 1,386,292 97,544
City clerk 860,874 767,160 93,714
Human resources 1,813,235 1,529,891 283,344
Information technology 6,266,050 5,472,661 793,389
Financial services 3,260,131 2,923,545 336,586
City attorney 2,600,167 2,052,013 548,154
Total general government 16,706,919 14,546,339 2,160,580
Public Safety:
Public safety - Police 110,843,541 105,126,720 5,716,821
Public safety - Fire 44,396,056 43,301,126 1,094,930
Total public safety 155,239,597 148,427,846 6,811,751
Public Works:
Administration 558,327 514,581 43,746
Engineering 6,684,566 6,149,422 535,144
General services 10,689,711 10,027,473 662,238
Streets and roads 7,833,883 7,144,807 689,076
Total public works 25,766,487 23,836,283 1,930,204
Recreation and Parks:
Administration 1,267,613 1,184,288 83,325
Recreation 3,284,043 2,760,573 523,470
Parks 18,869,971 18,253,513 616,458
Total recreation and parks 23,421,627 22,198,374 1,223,253
Development Services:
Planning 2,617,800 1,758,709 859,091
Building 7,625,803 6,533,891 1,091,912
Economic Community Development 8,735,973 2,761,747 5,974,226
Total development services 18,979,576 11,054,347 7,925,229
Non-departmental 19,029,011 8,285,675 10,743,336
Contingency 250,000 (4,869)245,131
Total General Fund Expenditures $259,393,217 $228,353,733 $31,039,484
120
CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Public Safety and Vital Services (PSVS) Funds (sub-fund of General Fund)
PSVS Funds
PSVS General Fund PSVS Capital Outlay
Total
PSVS
Funds
Revenues:
Taxes $74,465,956 $-$74,465,956
Charges for services 308,814 -308,814
Interest income 378,679 -378,679
Other income 64,575 -64,575
Total revenues 75,218,024 -75,218,024
Expenditures
Current:
General government 1,191,047 -1,191,047
Public safety - Police 6,995,707 -6,995,707
Public safety - Fire 2,287,812 -2,287,812
Public works 622,157 -622,157
Recreation and parks 614,315 -614,315
Community development 2,741,375 -2,741,375
Capital outlay -11,762,120 11,762,120
Total expenditures 14,452,413 11,762,120 (26,214,533)
Excess (deficiency) of
revenues
over (under) expenditures 60,765,611 (11,762,120)49,003,491
Other financing sources
(uses):
Transfers in -39,695,333 39,695,333
Transfers out (46,379,749)-(46,379,749)
Total other financing
sources (uses)(46,379,749)39,695,333 (6,684,416)
Net Change in Fund Balance 14,385,862 27,933,213 42,319,075
Fund balances - July 1 19,642,805 1,373,944 21,016,749
Fund balances - June 30 $34,028,667 $29,307,157 $63,335,824
121
122
Special Revenue Funds
These funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific
purposes.
Transient Occupancy Taxes Fund is used to account for Transient Occupancy Tax Revenues (Hotel Tax) and expenditures
funded by this revenue source. The Rabobank Arena and Convention Center and Bakersfield Ice Sports Center operating
revenues and expenditures are recorded in this fund. This fund is also used to account for duties performed by Visit Bakersfield.
Community Development Block Grant Fund is used to account for resources provided by the Federal Housing and
Community Development Act of 1974 for the elimination of slums and blight, housing conservation and improvements of
community services.
Neighborhood Stabilization Fund is used to account for resources provided by the Federal Housing and Economic Recovery
Act of 2008 to address congressionally identified needs of abandoned and foreclosed homes in the City. These funds are used
for down payment assistance, acquisition of Real Estate Owned (REO) lender assets properties that have been foreclosed upon
for redevelopment, rehabilitation of acquired residential structures, and demolition of blighted structures.
Gas Tax & Road Fund is used to account for the City's share, based upon population, of state gasoline taxes. State law
requires these gasoline taxes be used to maintain streets or for major street construction. This fund also accounts for the
resources provided by the Moving Ahead for Progress in the 21st Century Act (MAP21). Congestion Mitigation and Air
Quality (CMAQ) funds are used in the metropolitan Bakersfield area to fund transportation projects in the Transportation
Improvement Program. The Regional Surface Transportation Program (STP) is funded by Federal aid functionally classified
higher than local road or rural minor collector routes. The Transportation Enhancement Activities (TEA) Program projects have
a direct relationship to the intermodal transportation system by function, proximity, or impact. Lastly, the Highway Bridge
Replacement and Rehabilitation Program (HBRR) allows each local agency two bridge replacement projects and two
miscellaneous projects per year.
State (TDA) Transportation Fund is used to account for three Transportation Development Act (TDA) funding sources.
Article 3 funds must be used to construct facilities that specifically benefit pedestrians and/or bicyclists. Article 4 funds are
Local Transportation and State Transit Assistance Funds. These resources are used to cover the City's maintenance and
operation costs of the Bakersfield Amtrak Railway Station. The City is the owner of the station and leases the facility to
Amtrak, who operates the transit service. Article 4 funds may also be used for various improvements at bus stops throughout the
City. Article 8 funds represent the City's allocation of the 1/4% of sales tax authorized by Senate Bill (SB) 325. State law
requires these sales tax dollars be used for street purposes. These funds are received and expended by the City as lead agency
servicing the local road network. All three revenue resources are accounted for individually as required by the State of
California but are combined for financial reporting purposes. The City currently receives only Article 3 and Article 4 money.
State Safety Fund is used to account for specific revenue received for certain Police and Fire related programs. The City
Police Department has a share of traffic fine resources which are transferred to the General Fund to assist in funding the cost of
traffic safety and control devices and State of California monies from the Supplemental Law Enforcement Services grant. The
Fire Department operates a local Certified Unified Program Agency (CUPA) which is required for state and federal
environmental regulation. These revenue sources are accounted for individually as required by the State, but combined for
financial reporting purposes.
123
CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2020
Transient Occupancy Taxes
Budget Actual
Variance with
Final Budget
Revenues
Taxes $9,900,000 $8,913,147 $(986,853)
Licenses and permits ---
Intergovernmental ---
Charges for services 9,595,582 7,149,064 (2,446,518)
Fines, forfeitures, and assessments ---
Interest income 40,000 100,521 60,521
Loan payments ---
Contributions and donations 1,200,000 1,200,000 -
Other income -555,609 555,609
Total revenues 20,735,582 17,918,341 (2,817,241)
Expenditures
Current:
General government 11,270,797 9,070,045 2,200,752
Public safety - Police ---
Public safety - Fire ---
Public works ---
Recreation and parks ---
Economic Community Development ---
Non-departmental 3,134,526 3,134,525 1
Capital outlay:
Transportation:
Traffic control ---
Streets / Freeways ---
Bridges ---
Curbs, gutters and sidewalks ---
Public facilities:
Parks and landscaping ---
Other improvements ---
Total expenditures 14,405,323 12,204,570 2,200,753
Excess (deficiency) of revenues over (under) expenditures 6,330,259 5,713,771 (616,488)
Other financing sources (uses):
Transfers in 10,000 10,000 -
Transfers out (6,293,349)(4,144,791)2,148,558
Total other financing sources (uses)(6,293,349)(4,144,791)2,148,558
Net change in fund balances 46,910 1,578,980 1,532,070
Fund balances - beginning 1,002,829 1,002,829 -
Fund balances - ending $1,049,739 $2,581,809 $1,532,070
124
Community Development Block Grant Neighborhood Stabilization
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$-$-$-$-$-$-
------
18,052,335 6,890,815 (11,161,520)---
-5,934 5,934 ---
------
-1,556 1,556 ---
175,868 241,524 65,656 ---
------
-8,832 8,832 ---
18,228,203 7,148,661 (11,079,542)---
------
------
------
------
------
13,261,417 4,755,683 8,505,734 ---
------
------
150,000 -150,000 ---
------
3,152,990 1,432,763 1,720,227 ---
618,177 201,409 416,768 ---
937,655 329,125 608,530 ---
18,120,239 6,718,980 11,401,259 ---
107,964 429,681 321,717 ---
371,871 371,871 ----
(512,791)(512,790)(1)(371,871)(371,871)-
(512,791)(512,790)(1)(371,871)(371,871)-
(32,956)288,762 321,718 (371,871)(371,871)-
616,909 616,909 -371,871 371,871 -
$583,953 $905,671 $321,718 $-$-$-
125
CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued)
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2020
Gas Tax & Road Fund
Budget Actual
Variance with
Final Budget
Revenues
Taxes $-$-$-
Licenses and permits ---
Intergovernmental 290,165,227 109,112,347 (181,052,880)
Charges for services -73,584 73,584
Fines, forfeitures, and assessments 40,000 43,671 3,671
Interest income 205,000 146,626 (58,374)
Loan payments ---
Contributions and donations ---
Other income ---
Total revenues 290,410,227 109,376,228 (181,033,999)
Expenditures
Current:
General government ---
Public safety - Police ---
Public safety - Fire ---
Public works 3,800,975 3,494,733 306,242
Recreation and parks ---
Economic Community Development ---
Non-departmental ---
Capital outlay:
Transportation:
Traffic control 3,594,866 477,464 3,117,402
Streets / Freeways 285,490,759 109,002,985 176,487,774
Bridges 8,862,475 565,161 8,297,314
Curbs, gutters and sidewalks 1,197,664 74,693 1,122,971
Public facilities:
Parks and landscaping ---
Other improvements ---
Total expenditures 302,946,739 113,615,036 189,331,703
Excess (deficiency) of revenues over (under) expenditures (12,536,512)(4,238,808)8,297,704
Other financing sources (uses):
Transfers in ---
Transfers out ---
Total other financing sources (uses)---
Net change in fund balances (12,536,512)(4,238,808)8,297,704
Fund balances - beginning 12,902,757 12,902,757 -
Fund balances - ending $366,245 $8,663,949 $8,297,704
126
State (TDA) Transportation State Safety Fund
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$-$-$-$-$-$-
---330,400 315,086 (15,314)
2,093,376 707,956 (1,385,420)916,861 886,540 (30,321)
---1,371,700 1,470,666 98,966
---1,200,000 1,359,480 159,480
3,000 4,104 1,104 33,500 69,696 36,196
------
------
------
2,096,376 712,060 (1,384,316)3,852,461 4,101,468 249,007
------
---2,080,765 1,338,892 741,873
---1,536,203 1,492,000 44,203
516,088 447,753 68,335 ---
42,420 16,209 26,211 ---
------
------
------
------
------
------
------
1,537,868 248,096 1,289,772 ---
2,096,376 712,058 1,384,318 3,616,968 2,830,892 786,076
-2 2 235,493 1,270,576 1,035,083
------
---(1,200,000)(1,200,000)-
---(1,200,000)(1,200,000)-
-2 2 (964,507)70,576 1,035,083
---2,915,642 2,915,642 -
$-$2 $2 $1,951,135 $2,986,218 $1,035,083
127
CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (concluded)
Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2020
Totals
Budget Actual
Variance with
Final Budget
Revenues
Taxes $9,900,000 $8,913,147 $(986,853)
Licenses and permits 330,400 315,086 (15,314)
Intergovernmental 311,227,799 117,597,658 (193,630,141)
Charges for services 10,967,282 8,699,248 (2,268,034)
Fines, forfeitures, and assessments 1,240,000 1,403,151 163,151
Interest income 281,500 322,503 41,003
Loan payments 175,868 241,524 65,656
Contributions and donations 1,200,000 1,200,000 -
Other income -564,441 564,441
Total revenues 335,322,849 139,256,758 (196,066,091)
Expenditures
Current:
General government 11,270,797 9,070,045 2,200,752
Public safety - Police 2,080,765 1,338,892 741,873
Public safety - Fire 1,536,203 1,492,000 44,203
Public works 4,317,063 3,942,486 374,577
Recreation and parks 42,420 16,209 26,211
Economic Community Development 13,261,417 4,755,684 8,505,733
Non-departmental 3,134,526 3,134,525 1
Capital outlay:
Transportation:
Traffic control 3,594,866 477,464 3,117,402
Streets / Freeways 285,640,759 109,002,985 176,637,774
Bridges 8,862,475 565,161 8,297,314
Curbs, gutters and sidewalks 4,350,654 1,507,456 2,843,198
Public facilities:
Parks and landscaping 618,177 201,409 416,768
Other improvements 2,475,523 577,220 1,898,303
Total expenditures 341,185,645 136,081,536 205,104,109
Excess (deficiency) of revenues over (under) expenditures (5,862,796)3,175,222 9,038,018
Other financing sources (uses):
Transfers in 381,871 381,871 -
Transfers out (8,378,011)(6,229,452)2,148,559
Total other financing sources (uses)(7,996,140)(5,847,581)2,148,559
Net change in fund balances (13,858,936)(2,672,359)11,186,577
Fund balances - beginning 19,978,577 19,978,577 -
Fund balances - ending $6,119,641 $17,306,218 $11,186,577
128
CITY OF BAKERSFIELD
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Debt Service Fund
For the Fiscal Year Ended June 30, 2020
General Obligation Debt
Budget Actual
Variance with
Final Budget
Revenues:
Interest income $-$-$-
Total revenues ---
Expenditures:
Debt service:
Principal retirement 1,349,874 1,227,678 122,196
Interest and fiscal charges 60,527 41,790 18,737
Total expenditures 1,410,401 1,269,468 140,933
Deficiency of revenues under expenditures (1,410,401)(1,269,468)140,933
Other financing sources:
Transfers in 1,326,665 1,269,468 (57,197)
Total other financing sources 1,326,665 1,269,468 (57,197)
Net change in fund balance (83,736)-83,736
Fund balance - beginning (3,083,929)-3,083,929
Fund balance - ending $(3,167,665)$-$3,167,665
129
Capital Projects Funds
These funds account for financial resources to be used for the acquisition or construction of major capital facilities other than
those financed by Proprietary Funds and Trust Funds.
Capital Outlay Fund is used to account for the cost of capital projects financed by general revenues and grant/loan proceeds
for recreational facilities.
Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). Fees
are collected based on the development's share of the cost to develop, improve, construct or enhance a neighborhood park
(Ordinance No. 3327).
Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the
regional circulation system caused by a development project. The fees are paid when a building permit for the development
project is obtained, and are based upon the amount of traffic the development will generate. With these fees, the City constructs
projects that have been identified as necessary to maintain the level of services required by the 2010 General Plan for the
regional transportation network. This is a joint City and Kern County program which affects the entire metropolitan area. Fees
are collected with the building permit and are based on the relative impact each land use has on the transportation network. The
fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect
updated costs and growth projections. Revenue from fees collected may also be used to service bonded debt incurred in Capital
Improvement Construction.
130
131
CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Capital Projects Funds
For the Fiscal Year Ended June 30, 2020
Capital Outlay Park Improvement Fund
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
Revenues:
Taxes $5,650,000 $5,713,815 $63,815 $-$-$-
Intergovernmental 1,198,225 102,129 (1,096,096)---
Charges for services -115,979 115,979 ---
Fines, forfeitures, and
assessments 28,000 -(28,000)1,370,000 2,811,003 1,441,003
Interest income 178,433 286,709 108,276 50,000 98,607 48,607
Other income 760,509 17,624 (742,885)---
Total revenues 7,815,167 6,236,256 (1,578,911)1,420,000 2,909,610 1,489,610
Expenditures:
Current:
General government ------
Public works 35,000 -35,000 ---
Non-departmental 2,623,081 75,007 2,548,074 ---
Capital outlay:
Transportation:
Traffic control ------
Streets 5,289,958 2,049,430 3,240,528 ---
Bridges 25,000 -25,000 ---
Streets / Freeways 44,856,520 17,757,189 27,099,331 ---
Public facilities:
Buildings 19,854,213 10,469,214 9,384,999 ---
Parks and landscaping 1,580,686 1,101,436 479,250 1,247,568 12,923 1,234,645
Land acquisition ---2,872,501 2,026,626 845,875
Other improvements 24,643,645 3,818,939 20,824,706 101,818 84,135 17,683
Equipment:
Computers 939,300 324,379 614,921 ---
Non-automotive 2,943,798 604,511 2,339,287 ---
Total expenditures 102,791,201 36,200,105 66,591,096 4,221,887 2,123,684 2,098,203
Excess (deficiency) of revenues
over (under) expenditures (94,976,034)(29,963,849)65,012,185 (2,801,887)785,926 3,587,813
Other financing sources (uses):
Transfers in 46,945,333 44,796,774 (2,148,559)---
Transfers out ------
Total other financing
sources (uses)46,945,333 44,796,774 (2,148,559)---
Net change in fund balances (48,030,701)14,832,925 62,863,626 (2,801,887)785,926 3,587,813
Fund balances - beginning 55,559,571 55,559,571 -4,805,694 4,805,694 -
Fund balances - ending $7,528,870 $70,392,496 $62,863,626 $2,003,807 $5,591,620 $3,587,813
132
Transportation Development Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$-$-$-$5,650,000 $5,713,815 $63,815
---1,198,225 102,129 (1,096,096)
-146,805 146,805 -262,784 262,784
12,110,000 15,790,394 3,680,394 13,508,000 18,601,397 5,093,397
453,000 939,790 486,790 681,433 1,325,106 643,673
-3,523 3,523 760,509 21,147 (739,362)
12,563,000 16,880,512 4,317,512 21,798,167 26,026,378 4,228,211
186,300 147,116 39,184 186,300 147,116 39,184
755,248 1,215,213 (459,965)790,248 1,215,213 (424,965)
6,052 -6,052 2,629,133 75,007 2,554,126
668,742 335,384 333,358 668,742 335,384 333,358
6,066,434 2,718,971 3,347,463 11,356,392 4,768,401 6,587,991
---25,000 -25,000
55,182,102 12,783,638 42,398,464 100,038,622 30,540,827 69,497,795
---19,854,213 10,469,214 9,384,999
---2,828,254 1,114,359 1,713,895
---2,872,501 2,026,626 845,875
---24,745,463 3,903,074 20,842,389
---939,300 324,379 614,921
---2,943,798 604,511 2,339,287
62,864,878 17,200,322 45,664,556 169,877,966 55,524,111 114,353,855
(50,301,878)(319,810)49,982,068 (148,079,799)(29,497,733)118,582,066
9,600,000 -(9,600,000)56,545,333 44,796,774 (11,748,559)
(9,600,000)-9,600,000 (9,600,000)-9,600,000
---46,945,333 44,796,774 (2,148,559)
(50,301,878)(319,810)49,982,068 (101,134,466)15,299,041 116,433,507
51,551,913 51,551,913 -111,917,178 111,917,178 -
$1,250,035 $51,232,103 $49,982,068 $10,782,712 $127,216,219 $116,433,507
133
Internal Service Funds
These funds are used to account for the financing of goods or services provided by one department or agency to other
departments or agencies of the City on a cost-reimbursement basis.
Self-Insurance Fund is used to account for the cost of operating a self-insurance program as follows:
With regard to workers' compensation, the City is self-insured for the first $500,000 of each injury or occurrence and is a
member of California Public Entity Insurance Authority (CPEIA) which provides $5,000,000 of excess coverage to protect
against catastrophic type losses. Funding for this program is provided by interdepartmental charges varying by employee
classification and their industrial injury loss experience.
With regard to general and auto liability, the City is self-insured for the first $1,000,000 of each accident or occurrence and is a
member of the Authority for California Cities Excess Liability (ACCEL) which provides excess commercial insurance in the
amount of $10,000,000. Funding for this program is provided by interdepartmental charges.
Equipment Management Fund is used to account for the cost of operating and maintaining a maintenance facility for
vehicular, telecommunications and computer equipment used by other City departments. Such costs are billed to other
departments via established rates which are based upon actual cost. Actual costs include maintenance, repair, and replacement
cost of shop and automotive equipment.
134
CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
June 30, 2020
Self-
Insurance
Equipment
Management Total
Assets:
Current assets:
Cash and investments $26,224,694 $38,734,055 $64,958,749
Accounts receivable, net 154,737 5,872 160,609
Interest receivable 59,381 83,952 143,333
Prepayments and inventories 111,839 1,096,449 1,208,288
Total current assets 26,550,651 39,920,328 66,470,979
Noncurrent assets:
Capital assets:
Depreciable buildings, property, equipment and
infrastructure, net -47,455,589 47,455,589
Total assets 26,550,651 87,375,917 113,926,568
Deferred Outflows of Resources:
Deferred pensions 94,157 1,339,849 1,434,006
Deferred other post-employment benefits 19,564 325,596 345,160
Total deferred outflows of resources 113,721 1,665,445 1,779,166
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 339,686 2,140,476 2,480,162
Claims payable 4,710,191 -4,710,191
Workers' compensation claims 8,014,000 -8,014,000
Compensated absences payable -310,383 310,383
Total current liabilities 13,063,877 2,450,859 15,514,736
Noncurrent liabilities:
Workers' compensation claims 43,770,000 -43,770,000
Compensated absences payable 71,141 308,650 379,791
Net pension liability 577,231 9,712,087 10,289,318
Net other post-employment benefits liability 114,371 1,903,401 2,017,772
Total noncurrent liabilities 44,532,743 11,924,138 56,456,881
Total liabilities 57,596,620 14,374,997 71,971,617
Deferred Inflows of Resources:
Deferred pensions 15,266 306,181 321,447
Deferred other post-employment benefits 41,499 690,641 732,140
Total deferred inflows of resources 56,765 996,822 1,053,587
Net Position:
Net investment in capital assets -47,455,589 47,455,589
Unrestricted (30,989,013)26,213,954 (4,775,059)
Total net position $(30,989,013)$73,669,543 $42,680,530
135
CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position
All Internal Service Funds
For the Fiscal Year Ended June 30, 2020
Self-
Insurance
Equipment
Management Totals
Operating revenues:
Intergovernmental $-$180,000 $180,000
Charges for services 13,532,091 29,263,755 42,795,846
Cost recoveries 698,622 37,054 735,676
Miscellaneous 30,529 59,423 89,952
Total operating revenues 14,261,242 29,540,232 43,801,474
Operating expenses:
General and administrative 20,031,394 20,432,640 40,464,034
Workers' compensation payments 4,177,990 -4,177,990
Claims paid 553,618 -553,618
Depreciation and amortization -7,860,535 7,860,535
Compensated absences 17,273 42,016 59,289
Total operating expenses 24,780,275 28,335,191 53,115,466
Operating income (loss)(10,519,033)1,205,041 (9,313,992)
Nonoperating revenues (expenses):
Interest income 467,807 667,962 1,135,769
Gain/(loss) on sale of capital assets -326,645 326,645
Income (loss) before transfers
and capital contributions (10,051,226)2,199,648 (7,851,578)
Capital contributions -622,363 622,363
Transfers in -2,692,306 2,692,306
Transfers out (183,597)-(183,597)
Change in net position (10,234,823)5,514,317 (4,720,506)
Total Net Position -
Beginning of Year (20,754,190)68,155,226 47,401,036
Total Net Position - End of Year $(30,989,013)$73,669,543 $42,680,530
136
CITY OF BAKERSFIELD
Combining Statement of Cash Flows
All Internal Service Funds
For the Fiscal Year Ended June 30, 2020
Self-
Insurance
Equipment
Management Totals
Cash flows from operating activities:
Cash received from:
Customers $13,526,112 $29,815,174 $43,341,286
Prior year reimbursements and cost recoveries 698,622 37,054 735,676
Cash paid to:
Suppliers (12,303,281)(14,024,148)(26,327,429)
Employees (4,610,891)(5,402,799)(10,013,690)
Net cash provided (used) by operating activities (2,689,438)10,425,281 7,735,843
Cash flows from noncapital financing activities:
Cash transferred from other funds -2,692,306 2,692,306
Cash transferred to other funds (183,597)-(183,597)
Net cash provided (used) by noncapital financing activities (183,597)2,692,306 2,508,709
Cash flows from capital and related financing activities:
Purchase of capital assets -(12,872,816)(12,872,816)
Proceeds from sale of capital assets -505,234 505,234
Net cash (used) by capital and related financing activities -(12,367,582)(12,367,582)
Cash flows from investing activities:
Interest received 512,266 717,853 1,230,119
Net increase (decrease) in the fair value of investments 31,976 44,570 76,546
Net cash provided (used) by investing activities 544,242 762,423 1,306,665
Net increase (decrease) in cash and investments (2,328,793)1,512,428 (816,365)
Cash and investments - Beginning of year 28,553,487 37,221,627 65,775,114
Cash and investments - End of year $26,224,694 $38,734,055 $64,958,749
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Operating income (loss)$(10,519,033)$1,205,041 $(9,313,992)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense -7,860,535 7,860,535
(Increase) decrease in accounts receivable (36,508)311,996 275,488
(Increase) decrease in inventories -(6,775)(6,775)
Decrease in prepaid items (91,438)-(91,438)
Increase (decrease) in accounts payable (48,131)640,230 592,099
Increase (decrease) in workers' compensation claims 7,966,890 -7,966,890
Increase (decrease) in compensated absences 17,273 42,016 59,289
Increase (decrease) in net pension liability 28,650 310,222 338,872
Increase (decrease) in deferred outflows/inflows of resources for pensions 6,029 188,046 194,075
Increase (decrease) in other post-employment benefits liability (38,381)(543,556)(581,937)
Increase (decrease) in deferred outflows/inflows of resources for OPEB 25,211 417,526 442,737
Net cash provided (used) by operating activities $(2,689,438)$10,425,281 $7,735,843
Noncash investing, capital, and financing activities:
Contribution of equipment from other departments $-$622,363 $622,363
137
CITY OF BAKERSFIELD
Statement of Changes in Assets and Liabilities
Fiduciary Funds (Agency)
For the Fiscal Year Ended June 30, 2020
Balance
July 01, 2019 Additions Deletions
Balance
June 30, 2020
Special Deposits Fund
Assets:
Cash and investments $23,591,538 $111,715,980 $111,717,259 $23,590,259
Interest receivable 4,444 2,171 4,444 2,171
Accounts receivable 106,910 996,620 864,702 238,828
Due from other governmental agencies 166,097 340,611 480,100 26,608
Total assets $23,868,989 $113,055,382 $113,066,505 $23,857,866
Liabilities:
Payables:
Deposits $23,868,989 $113,055,382 $113,066,505 $23,857,866
Total liabilities $23,868,989 $113,055,382 $113,066,505 $23,857,866
Improvement Districts Fund
Assets:
Cash and investments $10,025,472 $814,217 $1,094,084 $9,745,605
Interest receivable 27,302 552 13,502 14,352
Accounts Receivable -65,564 -65,564
Due from other governmental agencies 7,300 1,525 3,045 5,780
Total assets $10,060,074 $881,858 $1,110,631 $9,831,301
Liabilities:
Payables:
Deposits 5,702,868 873,014 965,294 5,610,588
Accrued bond interest 632,206 530,713 632,206 530,713
Bonds 3,725,000 3,690,000 3,725,000 3,690,000
Total liabilities $10,060,074 $5,093,727 $5,322,500 $9,831,301
Total - All Agency Funds
Assets:
Cash and investments $33,617,010 $112,530,197 $112,811,343 $33,335,864
Interest receivable 31,746 2,723 17,946 16,523
Accounts receivable 106,910 1,062,184 864,702 304,392
Due from other governmental agencies 173,397 342,136 483,145 32,388
Total assets $33,929,063 $113,937,240 $114,177,136 $33,689,167
Liabilities:
Payables:
Deposits 29,571,857 113,928,396 114,031,799 29,468,454
Accrued bond interest 632,206 530,713 632,206 530,713
Bonds 3,725,000 3,690,000 3,725,000 3,690,000
Total liabilities $33,929,063 $118,149,109 $118,389,005 $33,689,167
138
CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2020
Redevelopment
Successor
Agency - Trust
Planning Habitat
Trust
Total
Private Purpose
Trust Funds
Assets:
Current assets:
Cash $3,446,071 $14,601,556 $18,047,627
Interest receivable 7,021 33,440 40,461
Total current assets 3,453,092 14,634,996 18,088,088
Noncurrent assets:
Land held for resale 60,895 -60,895
Total noncurrent assets 60,895 -60,895
Total assets 3,513,987 14,634,996 18,148,983
Liabilities:
Payables:
Advances from grantors and third parties 3,072,703 -3,072,703
Bonds 2,245,000 -2,245,000
Notes 12,815,002 -12,815,002
Total liabilities 18,132,705 -18,132,705
Net Position:
Held in trust for:
Individuals, organizations, and other governments (14,618,718)14,634,996 16,278
Total Net Position $(14,618,718)$14,634,996 $16,278
139
CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
June 30, 2020
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Assets:
Cash $2,455,356 $586,087 $3,041,443
Interest receivable -2,185 2,185
Investments
Domestic equities 22,924,307 -22,924,307
Fixed income 54,211,151 -54,211,151
Total investments 77,135,458 -77,135,458
Total assets 79,590,814 588,272 80,179,086
Net Position:
Held in trust for -
Other post-employment benefits 79,590,814 -79,590,814
Held in trust for -
Pension -588,272 588,272
Total Net Position $79,590,814 $588,272 $80,179,086
140
CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
For the Fiscal Year Ended June 30, 2020
Redevelopment
Successor
Agency - Trust
Planning Habitat
Trust
Total
Private Purpose
Trust Funds
Additions:
Developer fees $-$608,674 $608,674
Successor agency property tax deposits 3,136,153 -3,136,153
Intergovernmental ---
Charges for services 3,134,525 -3,134,525
Other income 11,793 -11,793
Interest income -244,171 244,171
Total additions 6,282,471 852,845 7,135,316
Deductions:
Purchase of uninhabited land -280,430 280,430
Obligation retirement 3,758,848 -3,758,848
Total deductions 3,758,848 280,430 4,039,278
Change in net position 2,523,623 572,415 3,096,038
Net position - beginning of year (17,142,341)14,062,581 (3,079,760)
Net position - end of year $(14,618,718)$14,634,996 $16,278
141
CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
For the Fiscal Year Ended June 30, 2020
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Additions:
Contributions to pooled investments $6,826,986 $-$6,826,986
Interest income 4,544,159 12,942 4,557,101
Administrative expenses (211,914)-(211,914)
Total additions 11,159,231 12,942 11,172,173
Deductions:
Benefits 4,046,135 83,979 4,130,114
Change in net position 7,113,096 (71,037)7,042,059
Beginning of year 72,477,718 659,309 73,137,027
End of year $79,590,814 $588,272 $80,179,086
142
143
CITY OF BAKERSFIELD
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2020
Special Revenue Funds
Neighborhood
Stabilization
State (TDA)
Transportation
Assets:
Cash and investments $-$137,766
Accounts receivable, net 5,696,872 331
Interest receivable -347
Due from other governmental agencies -46,796
Total assets $5,696,872 $185,240
Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts payable $-$67,614
Advances from grantors and third parties -117,626
Total liabilities -185,240
Deferred Inflows of Resources:
Deferred revenue 5,696,872 -
Fund Balances:
Restricted --
Total liabilities, deferred inflows
of resources, and fund balances $5,696,872 $185,240
144
Special
Revenue Funds
Debt
Service Fund
State Safety
General
Obligation Debt
Total
Non-Major
Governmental
Funds
$3,034,554 $-$3,172,320
151,664 -5,848,867
9,688 -10,035
--46,796
$3,195,906 $-$9,078,018
$209,691 $-$277,305
--117,626
209,691 -394,931
--5,696,872
2,986,215 -2,986,215
$3,195,906 $-$9,078,018
145
CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2020
Special Revenue Funds Special Revenue Funds
Neighborhood
Stabilization
State (TDA)
Transportation
State
Safety
Revenues:
Licenses and permits $-$-$315,086
Intergovernmental -707,956 886,540
Charges for services --1,470,666
Fines, forfeitures and assessments --1,359,480
Interest income -4,102 69,696
Total revenues -712,058 4,101,468
Expenditures
Current:
Public safety - Police --1,338,894
Public safety - Fire --1,492,000
Public works -447,752 -
Recreation and parks -16,209 -
Capital outlay -248,097 -
Debt service:
Principal retirement ---
Interest and fiscal charges ---
Total expenditures -712,058 2,830,894
Excess (deficiency) of revenues
over (under) expenditures --1,270,574
Other financing sources (uses):
Transfers in ---
Transfers out (371,871)-(1,200,000)
Total other financing sources (uses)(371,871)-(1,200,000)
Net change in fund balances (371,871)-70,574
Fund balances - beginning 371,871 -2,915,641
Fund balances - ending $-$-$2,986,215
146
Debt
Service Fund
General Obligation
Debt
Total
Non-Major
Governmental
Funds
$-$315,086
-1,594,496
-1,470,666
-1,359,480
-73,798
-4,813,526
-1,338,894
-1,492,000
-447,752
-16,209
-248,097
1,227,678 1,227,678
41,790 41,790
1,269,468 4,812,420
(1,269,468)1,106
1,269,468 1,269,468
-(1,571,871)
1,269,468 (302,403)
-(301,297)
-3,287,512
$-$2,986,215
147
CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund
REDEVELOPMENT SUCCESSOR AGENCY
Tax Allocation Bonds:
$2,090,000 Tax Allocation Bond to be used for construction of public
improvements for new developments on 18th and 19th Streets, and improvements to
the Mill Creek Linear Park. The funds were dispersed in July 2009. The interest rate
is 7.5%, with payments commencing August 2010 through August 2029.$1,410,000
$1,240,000 Tax Allocation Bond to be used for infrastructure improvements for
the Mill Creek Linear Park Canal at South Millcreek. The funds were dispersed in
July 2009. The interest rate is 7.25%, with payments commencing August 2010
through August 2029.835,000
Total Bonds $2,245,000
Loans/Contracts:
$1,000,000 HUD Section 108 Loan, 2003 (Agency Agreement #RA 03-016) - due
in annual principal installments of $27,000 to $82,000 commencing August 1,
2004; interest ranging from 1.61% to 4.76%.$302,000
$1,600,000 HUD Section 108 Loan, 2005 (Agency Agreement #RA 06-020) for
construction of Fire Station No. 5 - due in annual principal installments of
$58,000 to $137,000 commencing August 1, 2009; interest ranging from 4.96% to 5.77%.807,000
$3,750,000 HUD Section 108 Loan, 2007 (Agency Agreement # RA 06-022)
Loan proceeds are dedicated to the Mill Creek South Mixed-Use project and will
go toward the acquisition and clean-up of a six acre parcel. Due in annual principal
installments of $136,000 to $321,000 commencing August 1, 2008; interest
ranging from 2.62% to 5.42%.2,106,000
$10,000,000 Bakersfield Redevelopment Agency Loan with I-bank to help finance
the Mill Creek Linear Park and Canal Refurbishment Project. Only $6,933,445 of the loan
was dispersed through fiscal year 2009. Annual principal installments of $217,383 to $512,446
commencing on August 1, 2009 through August 2037; interest rate at 3.11%.7,200,002
$17,000,000 Reimbursement to the City for (a) refunding of 1993 Tax Allocation
Bonds, (b) 1987 COP Convention Improvement Project, and (c) the
construction, equipping and furnishing of a multipurpose area (the Arena Project)
per Agreement #97-2. Agreement is for two payments of $850,000 each year,
from March 1997 to June 2022.2,400,000
Total Loans/Contracts Payable $12,815,002
Total Successor Agency $15,060,002
148
CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund
Annual requirements to amortize the principal and interest on long-term debt of Redevelopment Successor Agency at June 30,
2020 is as follows:
Redevelopment Successor Agency (Private Purpose Trust Fund)
Year ending Principal Interest
Bonds Loans/Contracts Total Bonds Loans/Contracts Total
2021 $160,000 $1,882,463 $2,042,463 $160,363 $381,901 $542,264
2022 170,000 1,914,932 2,084,932 148,144 351,862 500,006
2023 185,000 748,696 933,696 135,000 319,993 454,993
2024 200,000 782,762 982,762 120,744 286,280 407,024
2025 215,000 733,142 948,142 105,375 253,131 358,506
2026-2030 1,315,000 3,061,069 4,376,069 256,494 814,936 1,071,430
2031-2035 -2,200,502 2,200,502 -407,200 407,200
2036-2040 -1,491,436 1,491,436 -70,522 70,522
Totals $2,245,000 $12,815,002 $15,060,002 $926,120 $2,885,825 $3,811,945
149
150
Statistical Section
City of Bakersfield
Statistical Section
For the year ended June 30, 2020
The statistical section of the City of Bakersfield's (City) comprehensive annual financial report presents detailed
information as a context for understanding what the information presented in the financial statements, note
disclosures and required supplementary information says about the City's overall financial health. Where less
than 10 years of data is presented, the information was not available.
Contents Pages
Financial Trends
These schedules contain trend information to help the reader understand
how the City's financial performance measures have changed over time 152 - 159
Revenue Capacity
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property and sales tax revenues.162 - 173
Debt Capacity
These schedules present information to help the reader assess the affordability
of the City's current level of outstanding debt and the City's ability to issue
additional debt in the future.174 - 180
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.181 - 185
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. 188 - 189
151
CITY OF BAKERSFIELD
Net Position by Component (1)
Last Ten Fiscal Years
Fiscal Year
2011(2) 2012 2013 2014(3)
Governmental Activities:
Net investment in capital assets $1,307,753,604 $1,259,429,698 $1,233,782,805 $1,279,657,792
Restricted for:
Capital improvements 19,778,178 23,252,930 16,246,571 21,015,837
Unrestricted 155,889,382 165,661,544 172,822,236 213,670,245
Total governmental activities
net position:1,483,421,164 1,448,344,172 1,422,851,612 1,514,343,874
% change from prior year -6.39 -2.4%-1.8 6.0%
Business-type Activities:
Net investment in capital assets 632,719,226 650,440,273 642,190,608 647,105,639
Restricted for:
Capital improvements 19,571,180 20,237,839 20,216,599 20,209,227
Sanitation districts 4,008,890 2,645,932 --
Unrestricted 115,321,423 100,529,044 107,431,948 109,292,512
Total business-type activities
net position 771,620,719 773,853,088 769,839,155 776,607,378
% change from prior year -0.2%.3 -0.5%0.9
Primary Government:
Net investment in capital assets 1,940,472,830 1,909,869,971 1,875,973,416 1,926,763,431
Restricted for:
Capital improvements 39,348,358 43,490,769 36,463,170 41,225,064
Sanitation districts 4,008,890 2,645,932 --
Unrestricted 271,210,805 266,190,588 280,254,187 322,962,757
Total primary government
net position $2,255,040,883 $2,222,197,260 $2,192,690,773 $2,290,951,252
Total primary government
% change from prior year -4.2 -1.5 -1.3 4.3
Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
have been changed to reflect the restatement.
(3) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
have been changed to reflect the restatement.
(4) The current year increase in Governmental Activities net position is primarily due to the Public Safety and Vital Services (PSVS)
district tax which is new source of revenue that approved by residents in November 2018.
152
Fiscal Year
2015(3)2016(3)2017(3)2018(3)2019(3)(4)2020(3)
$1,285,115,859 $1,304,906,456 $1,305,414,611 $1,301,334,674 $1,316,112,932 $1,347,391,281
22,112,200 21,988,624 20,626,443 20,759,775 18,975,747 15,078,957
(70,066,811)(86,460,007)(108,783,761)(200,714,582)(193,801,808)(190,673,618)
1,237,161,248 1,240,435,073 1,217,257,293 1,121,379,867 1,141,286,871 1,171,796,620
-22.4 0.3 -1.9 -8.5 1.7%2.7%
648,359,633 665,588,574 670,274,189 700,725,335 720,818,075 735,284,165
20,201,556 20,201,947 20,200,000 20,200,000 20,200,000 20,200,000
------
78,904,795 79,243,784 85,239,027 107,755,323 107,638,278 105,004,414
747,465,984 765,034,305 775,713,216 828,680,658 848,656,353 860,488,579
-3.9 2.3 1.4 6.4%2.4%1.4%
1,933,475,502 1,970,495,030 1,976,138,800 2,002,060,009 2,036,931,007 2,082,675,446
42,313,756 42,190,571 40,826,443 40,959,775 39,175,747 35,278,957
------
8,837,984 (7,216,223)(23,544,734)(92,959,259)(86,163,530)(85,669,204)
$1,984,627,242 $2,005,469,378 $1,993,420,509 $1,950,060,525 $1,989,943,224 $2,032,285,199
-15.4 1.0%-0.6%-2.2%2.0%2.1%
153
CITY OF BAKERSFIELD
Change in Net Position (1)
Last Ten Fiscal Years
Fiscal Year
2011 2012 2013 2014
Expenses
Governmental activities:
General government $12,110,455 $12,388,099 $12,919,972 $10,274,285
Public safety:
Police 70,381,783 72,574,972 76,310,840 80,192,752
Fire 31,657,823 33,319,982 35,105,188 36,086,851
Public works 137,057,195 142,228,353 162,423,856 104,347,771
Recreation & parks 34,682,672 31,737,121 32,619,041 34,641,180
Development services 6,862,213 5,856,850 11,192,757 9,940,984
Economic/Community development (2)9,303,951 28,228,468 --
Interest on long-term debt 233,606 215,411 467,848 166,472
Total governmental activities expenses 302,289,698 326,549,256 331,039,502 275,650,295
Business-type activities:
Wastewater treatment 42,333,794 41,550,942 40,456,986 41,979,698
Refuse collection 38,469,544 39,340,795 44,364,406 45,336,786
River & agricultural water 4,603,236 5,727,962 5,245,266 5,051,433
Domestic water 22,068,640 22,157,529 21,131,546 25,613,917
General aviation 407,687 404,648 430,697 462,690
Offstreet parking 165,935 128,070 162,094 160,613
Total business-type activities expenses 108,048,836 109,309,946 111,790,995 118,605,137
Total primary government expenses 410,338,534 435,859,202 442,830,497 394,255,432
Program Revenues
Governmental activities:
Charges for services:
General government 5,406,095 5,392,724 4,984,767 5,019,511
Public safety:
Police 3,210,604 2,649,133 2,110,160 2,938,734
Fire 4,577,004 4,866,355 5,361,766 4,937,490
Public works 8,462,168 11,651,452 19,404,900 23,780,578
Recreation & parks 13,172,982 14,153,899 14,324,137 14,348,050
Development services 2,621,537 2,907,300 4,147,598 5,221,585
Economic/Community development (2)1,101 870 --
Operating grants and contributions 22,993,743 20,178,085 19,508,063 11,633,792
Capital grants and contributions 82,831,043 68,415,443 76,471,205 104,071,622
Total governmental activities
program revenues $143,276,277 $130,215,261 $146,312,596 $171,951,362
Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) Economic/Community Development became a part of Development Services.
154
Fiscal Year
2015 2016 2017 2018 2019 2020
$21,956,276 $24,203,337 $26,395,470 $29,731,416 $31,112,425 $40,385,072
82,573,675 87,314,992 95,723,028 105,006,154 106,340,979 120,286,345
35,577,067 37,257,146 41,364,912 44,560,720 46,537,182 49,284,742
158,958,537 176,573,017 171,911,928 145,529,290 126,435,754 170,924,424
22,743,488 24,993,400 26,888,569 22,613,830 20,685,570 26,172,685
9,895,523 10,018,548 12,159,620 8,533,656 8,221,265 13,409,023
------
164,046 39,729 33,429 25,060 17,358 7,779
331,868,612 360,400,169 374,476,956 356,000,126 339,350,533 420,470,070
41,602,539 38,038,376 41,008,233 42,103,648 43,491,976 41,863,203
42,860,924 44,067,358 46,300,746 47,971,215 52,077,032 56,297,122
4,751,158 4,395,517 4,304,663 4,198,037 4,469,652 5,110,204
25,455,862 25,756,437 27,066,771 29,205,225 26,859,329 30,900,781
527,279 480,754 812,527 671,124 480,368 633,219
163,840 112,986 226,999 233,746 290,799 288,532
115,361,602 112,851,428 119,719,939 124,382,995 127,669,156 135,093,061
447,230,214 473,251,597 494,196,895 480,383,121 467,019,689 555,563,131
3,051,375 6,178,924 4,609,597 5,618,886 5,476,706 4,474,539
2,737,294 3,138,617 4,797,619 2,989,023 3,719,138 3,152,452
5,784,964 6,375,758 6,903,928 7,242,490 7,615,334 8,116,341
20,958,923 18,625,200 17,116,439 17,159,857 16,970,725 17,969,450
14,336,209 15,665,544 16,103,058 16,481,750 17,354,482 14,768,875
5,620,567 6,076,072 5,719,860 5,909,456 6,335,650 6,589,380
------
12,963,571 11,217,162 12,640,678 9,165,593 11,411,248 17,270,805
101,313,136 120,303,934 100,956,230 85,533,310 78,708,716 109,448,244
$166,766,039 $187,581,211 $168,847,409 $150,100,365 $147,591,999 $181,790,086
155
CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
Fiscal Year
2011 2012 2013 2014
Business-type activities:
Charges for services:
Wastewater treatment $30,752,515 $30,743,840 $30,825,384 $31,148,327
Refuse collection 39,568,011 41,198,715 41,812,177 42,100,981
River & agricultural water 6,891,203 4,162,253 3,645,065 4,233,197
Domestic water 22,223,640 23,140,865 23,944,333 24,423,144
General aviation 253,868 285,461 304,357 303,223
Offstreet parking 63,120 72,094 54,420 67,150
Operating grants and contributions 4,018,963 4,935,165 6,243,441 8,601,559
Capital grants and contributions 1,599,202 5,011,908 982,577 17,276,815
Total business-type activities
program revenues 105,370,522 109,550,301 107,811,754 128,154,396
Total primary government
program revenues 248,646,799 239,765,562 254,124,350 300,105,758
Net (Expenses) Revenues:
Governmental activities (159,013,421)(196,333,995)(184,726,906)(103,698,933)
Business-type activities (2,678,314)240,355 (3,979,241)9,549,259
Total primary government
Net (Expenses) Revenues (161,691,735)(196,093,640)(188,706,147)(94,149,674)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 62,889,341 60,717,716 58,958,525 66,614,853
Sales and use taxes 55,281,897 67,642,794 70,418,028 72,442,177
Other taxes 728,715 889,373 926,701 988,423
Intergovernmental, unrestricted 1,144,659 876,617 181,713 152,400
Unrestricted grants and contributions 20,701,642 21,793,292 22,725,966 23,829,193
Investment earnings (loss)73,834 282,170 (99,546)948,629
Miscellaneous 1,567,489 4,223,807 5,187,294 1,683,631
Gain (loss) on sale of property 17,300 132,666 192,354 36,039
Transfers 1,998,260 34,000 840,000 1,489,500
Total Governmental Activities 144,403,137 156,592,435 159,331,035 168,184,845
Business-type activities:
Investment earnings 2,136,427 1,988,022 778,444 2,424,676
Gain (loss) on sale of property -38,992 26,866 (4,439,038)
Transfers (1,998,260)(34,000)(840,000)(1,489,500)
Total business-type activities 138,167 1,993,014 (34,690)(3,503,862)
Total primary government 144,541,304 158,585,449 159,296,345 164,680,983
Extraordinary gain (loss)-4,664,568 -(936,660)
Change in Net Position:
Governmental activities (14,610,284)(39,741,560)(25,395,871)64,485,912
Business-type activities (2,540,147)2,233,369 (4,013,931)6,045,397
Total primary government $(17,150,431)$(37,508,191)$(29,409,802)$70,531,309
156
Fiscal Year
2015 2016 2017 2018 2019 2020
$31,437,669 $32,809,778 $33,037,996 $34,036,372 $33,916,086 $34,356,259
43,447,351 45,865,520 49,502,386 51,119,909 54,158,105 56,834,796
3,640,671 2,863,750 6,712,871 7,039,283 9,643,555 7,203,989
22,478,013 20,275,368 23,232,757 26,491,151 27,744,037 28,624,932
315,351 327,491 325,116 347,315 318,401 301,933
78,807 134,404 146,250 114,261 160,090 153,884
8,749,741 7,283,587 7,173,227 9,047,127 8,406,992 7,587,747
7,402,621 16,428,109 9,741,991 4,913,540 11,977,630 10,120,482
117,550,224 125,988,007 129,872,594 133,108,958 146,324,896 145,184,022
284,316,263 313,569,218 298,720,003 283,209,323 293,916,895 326,974,108
(165,102,573)(172,818,958)(205,629,547)(205,899,761)(191,758,534)(238,679,984)
2,188,622 13,136,579 10,152,655 8,725,963 18,655,740 10,090,961
(162,913,951)(159,682,379)(195,476,892)(197,173,798)(173,102,794)(228,589,023)
71,382,809 74,342,784 77,680,416 79,774,412 83,543,561 85,558,776
70,366,255 70,786,792 65,348,910 72,322,068 94,622,228 148,259,133
1,177,810 1,176,713 1,212,122 1,308,842 1,524,996 1,341,620
150,529 149,089 169,836 201,875 185,685 308,043
25,497,714 25,381,927 24,827,775 25,140,642 25,237,610 24,763,948
487,532 2,295,536 283,544 1,295,749 2,708,894 1,707,054
2,173,532 1,613,591 1,707,873 1,754,210 1,474,916 2,670,587
(8,511,599)826,990 273,364 248,579 101,086 4,060
3,584,925 1,352,562 152,000 2,032,654 4,058,397 2,064,005
166,309,507 177,925,984 171,655,840 184,079,031 213,457,373 266,677,226
1,968,113 1,728,927 1,112,586 1,878,973 5,045,825 3,671,948
390,791 17,545 15,670 20,370 25,454 133,322
(3,584,925)(1,352,562)(152,000)(2,032,654)(4,058,397)(2,064,005)
(1,226,021)393,910 976,256 (133,311)1,012,882 1,741,265
165,083,486 178,319,894 172,632,096 183,945,720 214,470,255 268,418,491
---54,231,181 --
1,206,934 5,107,026 (33,973,707)32,410,451 21,698,839 27,997,242
962,601 13,530,489 11,128,911 8,592,652 19,668,622 11,832,226
$2,169,535 $18,637,515 $(22,844,796)$41,003,103 $41,367,461 $39,829,468
157
CITY OF BAKERSFIELD
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)
2011 2012
Fiscal Year
2013 2014
General Fund
Nonspendable $13,000 $11,975 $3,372,390 $3,181
Restricted ----
Committed 36,613,273 37,639,359 39,972,694 13,464,704
Assigned 6,891,881 7,281,790 7,694,831 34,586,157
Unassigned 9,131,275 10,476,517 10,865,979 6,502,852
Subtotal general fund 52,649,429 55,409,641 61,905,894 54,556,894
All Other Governmental Funds
Nonspendable ----
Restricted 10,051,183 23,252,930 16,246,571 21,015,837
Committed 58,304,744 57,014,597 56,799,759 62,344,103
Assigned 18,649,279 11,091,749 15,840,236 58,935,265
Unassigned ----
Subtotal all other governmental funds 87,005,206 91,359,276 88,886,566 142,295,205
Total governmental fund balance $139,654,635 $146,768,917 $150,792,460 $196,852,099
Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.
Source: City Finance Department
158
2015 2016 2017
Fiscal Year
2018 2019 2020
$1,000 $1,000 $1,025 $1,025 $51,479 $44,314
------
33,140,376 28,995,204 32,559,429 29,505,463 27,488,388 49,811,144
7,254,726 4,042,766 3,567,936 2,914,844 22,403,228 18,869,241
383,987 8,783,314 3,115,798 7,077,156 4,689,839 -
40,780,089 41,822,284 39,244,188 39,498,488 54,632,934 68,724,699
944,356 44,508 7,675,326 1,212,183 942,965 968,679
22,112,200 21,988,624 20,626,443 20,759,775 18,975,747 15,078,956
80,565,806 64,661,547 67,725,705 68,066,549 83,018,904 141,307,728
51,017,356 51,026,114 37,747,940 46,316,269 28,958,138 56,246,321
------
154,639,718 137,720,793 133,775,414 136,354,776 131,895,754 213,601,684
$195,419,807 $179,543,077 $173,019,602 $175,853,264 $186,528,688 $282,326,383
159
CITY OF BAKERSFIELD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2011 2012 2013 2014 2015
Revenues:
Taxes $139,250,878 $150,761,990 $159,530,114 $163,369,374 $168,047,259
Licenses and permits 1,757,045 2,321,093 2,757,307 3,644,027 3,297,396
Intergovernmental 87,577,120 83,597,649 85,698,254 112,509,497 113,170,797
Charges for services 23,982,350 34,518,514 26,237,278 28,308,972 29,643,496
Fines, forfeitures &
assessments 14,359,150 4,034,565 20,697,866 25,732,782 21,984,077
Interest income (loss)804,910 865,071 (266,411)1,604,668 1,470,902
Contributions and donations --1,543,041 251,775 10,390
Miscellaneous 4,662,521 7,346,225 8,383,499 4,710,359 9,100,338
Total Revenues 272,393,974 283,445,107 304,580,948 340,131,454 346,724,655
Expenditures:
General government 9,944,217 10,383,512 11,186,274 11,888,465 19,254,079
Police 65,985,764 68,489,176 72,745,830 77,504,268 83,484,871
Fire 29,450,014 31,390,736 33,528,360 34,895,073 36,224,449
Public works 21,967,831 25,849,496 25,274,629 25,744,355 26,828,323
Recreation and parks 22,620,636 23,599,669 25,277,659 26,309,603 18,833,884
Development services 6,486,573 6,229,936 11,994,604 11,321,294 12,231,555
Economic/Community
development(1)8,147,683 3,646,144 ---
Non-departmental 12,517,816 20,283,121 13,338,729 10,726,379 12,736,007
Capital outlay 97,915,227 94,567,093 105,808,610 94,992,545 134,748,520
Debt service:
Principal 444,000 366,000 378,000 443,124 454,964
Interest and fiscal charges 221,920 219,865 208,424 195,434 252,300
Total Expenditures 275,701,681 285,024,748 299,741,119 294,020,540 345,048,952
Excess (deficiency) of revenues over
(under) expenditures (3,307,707)(1,579,641)4,839,829 46,110,914 1,675,703
Other financing sources (uses):
Notes/certificate proceeds -----
Transfers in 9,580,944 11,587,495 18,164,310 16,069,190 15,963,966
Transfers out (8,358,944)(12,704,555)(18,898,910)(16,334,090)(17,860,400)
Reserve transfer to agency funds 10,656 ----
Extraordinary gain -4,664,568 ---
Total other financing
sources (uses)1,232,656 3,547,508 (734,600)(264,900)(1,896,434)
Net change in fund balances $(2,075,051)$1,967,867 $4,105,229 $45,846,014 $(220,731)
Debt service as a percentage of
non-capital expenditures -4.0%-1.0%-1.0%4.0%-13.0%
Notes:
(1) Economic/Community Development became a part of Development Services.
Source: City Finance Department
160
Fiscal Year
2016 2017 2018 2019 2020
$171,344,057 $168,758,632 $178,228,594 $204,629,052 $259,638,738
3,216,872 3,321,133 3,268,134 3,483,935 3,454,071
129,091,459 111,232,933 93,198,441 88,214,967 124,484,134
31,225,288 31,530,433 34,404,377 35,435,981 32,551,009
20,337,463 21,325,888 18,887,330 20,058,536 20,828,104
2,823,200 591,514 1,791,980 4,373,028 2,842,822
153,607 294,156 259,932 372,462 241,524
6,377,099 3,789,687 4,342,074 3,294,244 4,712,882
364,569,045 340,844,376 334,380,862 359,862,205 448,753,284
21,404,144 21,483,266 21,883,948 22,849,651 23,763,499
85,469,207 85,303,925 89,209,119 97,029,401 106,465,614
36,956,928 37,694,398 39,299,505 40,616,758 44,793,126
26,936,064 25,826,378 25,798,786 27,310,375 28,993,981
18,145,518 18,881,782 20,215,698 20,358,886 22,214,583
12,068,546 11,861,982 9,419,106 10,415,836 15,810,027
-----
13,348,200 10,724,880 11,699,947 12,680,999 11,500,076
164,583,100 134,231,542 113,952,709 115,089,647 166,425,210
489,828 503,828 502,352 635,085 1,227,678
57,115 65,870 59,324 51,545 41,790
379,458,650 346,577,851 332,040,494 347,038,183 421,235,584
(14,889,605)(5,733,475)2,340,368 12,824,022 27,517,700
-----
10,049,932 7,686,698 7,691,676 13,125,130 47,648,113
(10,158,904)(7,686,698)(7,956,681)(13,264,112)(48,092,817)
-----
-----
(108,972)-(265,005)(138,982)(444,704)
$(14,998,577)$(5,733,475)$2,075,363 $12,685,040 $27,072,996
1.0%-.6%0.2%-%0.3%
161
CITY OF BAKERSFIELD
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years (1)
Fiscal
Year
General
Property
Taxes
Sales and
Use Taxes
Transient
Occupancy
Taxes
Business
License
Taxes
Utility
Franchise
Taxes
In-Lieu and
Other Taxes Total Taxes
2011 $62,889,341 (2)$55,281,897 $6,851,869 $3,415,351 $10,083,705 (3)$728,715 $139,250,878
2012 60,717,717 (2)67,642,795 7,827,792 3,312,485 10,371,830 (3)889,373 150,761,992
2013 65,696,957 (2)70,418,028 8,274,240 3,372,972 10,733,798 (3)1,034,119 159,530,114
2014 66,614,853 (2)72,442,178 8,826,003 3,607,558 10,890,359 (3)988,423 163,369,374
2015 71,382,809 (2)70,366,255 9,487,984 3,730,720 11,901,681 (3)1,177,810 168,047,259
2016 74,342,784 (2)70,786,793 9,450,710 3,904,569 11,682,488 (3)1,176,713 171,344,057
2017 77,680,416 (2)65,348,909 9,577,898 3,875,410 11,063,877 (3)1,212,122 168,758,632
2018 79,774,412 (2)72,322,068 9,570,855 3,826,518 11,425,899 (3)1,308,842 178,228,594
2019 83,543,561 (2)94,622,228 9,943,109 4,043,883 10,951,275 (3)1,524,996 204,629,052
2020 85,558,776 (2)148,259,133 8,913,147 3,900,858 11,665,204 (3)1,341,620 259,638,738
Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.
(2) Includes Vehicle License Fee in Lieu revenue.
(3) Includes additional taxes and Utility Surcharge revenues designated by ordinance for road purposes.
Source: City Finance Department
162
CITY OF BAKERSFIELD
Principal Property Taxpayers
Current Year and Nine Years Ago
2011 2020
Taxpayer
Taxable
Assessed Value Rank
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed Value Rank
Percentage of
Total Taxable
Assessed
Value
Nestle Dreyers Ice Cream Company
(formerly Nestle Holdings, Inc in 2011)$216,731,466 1 1.03%$171,750,465 2 0.56%
Chevron USA Inc.158,526,708 2 0.75%183,557,635 1 0.60%
Valley Plaza Mall LP (formerly Bakersfield Mall
LLC in 2011)145,229,294 3 0.69%138,320,469 3 0.46%
California Water Service Company 93,738,674 4 0.45%121,200,978 4 0.40%
DS Properties 18 (formerly Donahue Schriber Realty
Group LLP in 2011)76,401,790 5 0.36%92,452,057 7 0.30%
Walmart Stores Inc/Sam's (Formerly Walmart Real
Estate BSNS Trust in 2011)65,089,803 6 0.31%101,369,330 5 0.33%
Bright House Networks LLC 20,580 7 0.00%--%
State Farm Insurance Company 57,700,000 8 0.27%--%
Kaiser (Formerly Kaiser Foundation Health Plan, Inc.
in 2011)54,788,318 9 0.26%65,659,045 8 0.22%
Castle & Cook CA Inc.56,971,981 10 0.27%108,346,334 6 0.36%
Bolthouse Land Company LLC --%66,238,758 9 0.22%
BLC Glenwood Gardens --%53,012,975 10 0.17%
Total taxable assessed value of
ten (10) largest taxpayers 925,198,614 4.39%1,101,908,046 %3.62
Total taxable assessed value of other taxpayers 20,164,367,039 95.61%29,357,202,002 %96.38
Total taxable assessed value of all taxpayers 21,089,565,653 100.00%30,459,110,048 %100.00
Note:
Related parties grouped together on the original source document (County's list of assessed valuations) are included in the total assessed valuation amount for
each taxpayer cited. Unitary and operating nonunitary are excluded as valuation by parcel is no longer available. Secured values only reported.
Source: HDL Coren & Cone, Kern County Assessor 2019-20 Combined Tax Rolls
163
CITY OF BAKERSFIELD
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Amounts expressed in thousands
Fiscal
Year Secured Less:
Ended
June 30
Residential
Property
Commercial
Property Other Unsecured
Tax Exempt
Real Property
2011 $14,950,744 $4,053,184 $3,134,829 $834,158 $1,063,302
2012 14,521,636 3,832,880 3,245,619 850,899 1,104,081
2013 14,698,137 3,904,832 3,268,227 912,300 1,097,928
2014 15,592,995 4,010,392 3,575,805 791,531 1,186,061
2015 17,297,625 4,111,192 3,607,361 819,306 1,230,972
2016 18,495,838 4,238,653 3,749,127 835,424 1,321,877
2017 19,571,365 4,497,923 3,971,042 801,607 1,414,164
2018 20,569,686 4,650,981 4,085,221 767,598 1,451,354
2019 21,611,991 4,826,400 4,206,028 769,171 1,492,778
2020 22,729,432 4,968,389 4,339,072 794,111 1,577,783
(1) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the
property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions,
property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon
the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above
represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: HDL Coren & Cone, Kern County Assessor 2019-20 Combined Tax Rolls.
164
Total Taxable Total
Estimated
Actual
Assessed
Value
Direct
Rate
Taxable
Value (1)
$21,909,613 0.1969 Unavailable
21,346,953 0.1956 Unavailable
21,685,568 0.1924 Unavailable
22,784,662 0.1619 Unavailable
24,604,512 0.1623 Unavailable
25,997,165 0.1616 Unavailable
27,427,773 0.1613 Unavailable
28,622,132 0.1609 Unavailable
29,920,812 0.1607 Unavailable
31,253,221 0.1604 Unavailable
165
CITY OF BAKERSFIELD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
2011 2012 2013 2014
Basic County-Wide Levy (1)1.0000 1.0000 1.0000 1.0000
Overlapping Debt
Bakersfield Refund 1989C & D ----
Bakersfield School 0.0663 0.0710 0.0681 0.0360
Beardsley School 0.0574 0.0599 0.0499 0.0486
Edison School Bond 0.0720 0.0664 0.0694 0.0687
Fairfax School 0.0401 0.0688 0.0686 0.0607
Fruitvale School Bonds 0.0695 0.0759 0.0614 0.0678
Greenfield School 0.0783 0.0804 0.0826 0.0843
Kern Community College District 0.0101 0.0091 0.0085 0.0126
Kern County Water Agency 0.0553 0.0748 0.0540 0.0569
Kern High School District 0.0447 0.0363 0.0437 0.0392
Lakeside School 0.0188 0.0224 0.0227 0.0283
Lamont School 0.0694 0.0693 0.0615 0.0681
Norris School 0.0298 0.0327 0.0580 0.0500
Panama Buena Vista School 0.0116 0.0115 -0.0194
Rio Bravo-Greeley 0.0741 0.0737 0.0535 0.0769
Standard Bond ----
Standard Bond 2006A 0.0206 0.0191 0.0185 0.0152
Vineland School 07-A 0.0414 0.0423 0.0437 0.0418
Total Direct & Overlapping Tax Rates (2)1.7594 1.8136 1.7641 1.7745
City Share of 1% Levy (3)0.1852 0.1851 0.1851 0.1839
Total Direct Rate (4)0.1969 0.1956 0.1924 0.1619
(1) In 1978 the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved
bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners.
(3) City's share of 1.00% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Educational
Revenue Augmentation Fund (ERAF) general fund tax shifts are not included in tax ratio figures. The effective City rate after ERAF is 9.9%.
(4) Total Direct Rate is the weighted average of all individual direct rates applied by the City of Bakersfield.
Source: HDL Coren & Cone (Kern County Auditor-Controller's Office)
166
2015 2016 2017 2018 2019 2020
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
-----0.0020
0.0186 0.0339 0.0204 0.0522 0.0449 0.0379
0.0406 0.0480 0.0723 0.0638 0.0671 0.0659
0.0678 0.0716 0.0706 0.0755 0.0738 0.0644
0.0692 0.0712 0.0631 0.1075 0.1009 0.0743
0.0595 0.0591 0.0516 0.0534 0.0731 0.0525
0.0544 0.0445 0.0438 0.0419 0.0398 0.0678
0.0105 0.0136 0.0132 0.0363 0.0337 0.0330
0.0525 0.0537 0.0585 0.0785 0.0707 0.0812
0.0361 0.0324 0.0260 0.0533 0.0512 0.0532
0.0254 0.0267 0.0236 0.0264 0.0242 0.0250
0.0630 0.0657 0.0681 0.0682 0.0639 0.0659
0.0489 0.0498 0.0565 0.0579 0.0373 0.0391
0.0294 0.0330 0.0243 0.0224 0.0288 0.0558
0.0649 0.0581 0.0629 0.0687 0.0517 0.0720
0.0208 0.0219 0.0403 0.0770 0.0602 0.0663
0.0110 0.0140 ----
0.0431 0.0456 0.0441 0.0453 0.0238 0.0437
1.7157 1.7428 1.7393 1.9283 1.8451 1.9000
0.1839 0.1839 0.1839 0.0184 0.1839 0.1839
0.1623 0.1616 0.1613 0.1609 0.1607 0.1604
167
CITY OF BAKERSFIELD
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal Year
Ended
June 30
Tax Levied
for the
Fiscal Year Amount
Percentage
of Levy
Collections
in Subsequent
Years (2)Amount
Percentage
of Levy (3)
2011 $38,752,737 $38,136,143 98.41%$437,340 $38,573,483 99.54%
2012 37,333,785 36,574,775 97.97%417,383 36,992,158 99.08%
2013 38,448,465 37,544,318 97.65%159,495 37,703,813 98.06%
2014 39,887,750 39,344,783 98.64%375,679 39,720,462 99.58%
2015 42,153,405 41,301,939 97.98%166,794 41,468,733 98.38%
2016 44,309,063 43,455,549 98.07%254,923 43,710,472 98.65%
2017 47,433,693 46,803,045 98.67%4,914 46,807,959 98.68%
2018 47,385,467 46,768,741 98.70%345,147 47,113,888 99.43%
2019 49,577,578 48,864,996 98.56%696,193 49,561,189 99.97%
2020 47,854,714 49,634,163 103.72%119,111 49,753,274 103.97%
Notes:
(1) Excludes Redevelopment property tax increment.
(2) Delinquent tax collections do not include interest or penalties.
(3) Total collections to date may exceed 100% of annual levy. Delinquent tax collections are
recorded in the current levy year as the County of Kern does not give detail as to the levy
year for delinquent tax collections. This was confirmed with the County of Kern in 2014.
Source: City Finance Department
168
CITY OF BAKERSFIELD
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Year
State of
California
Total
Rate
2011 %7.25 %7.25
2012 %7.25 %7.25
2013 %7.25 %7.25
2014 %7.25 %7.25
2015 %7.25 %7.25
2016 %7.25 %7.25
2017 %7.25 %7.25
2018 %7.25 %7.25
2019 %7.25 %8.25
2020 %7.25 %8.25
Note: The City's sales tax rate may be changed with voter approval.
Source: California Department of Tax and Fee Administration
169
CITY OF BAKERSFIELD
Taxable Sales By Market Groups
Last Ten Fiscal Years
2011 2012 2013 2014 2015
Retail Trade
Apparel Stores $2,237,268 $2,498,144 $2,628,504 $2,682,765 $2,700,035
Auto Dealers and Supplies 8,246,511 10,517,601 11,892,057 12,681,772 13,490,464
Building Materials 4,240,592 4,621,483 5,000,637 5,190,262 5,549,702
Drug Stores 591,749 633,375 657,887 658,335 660,653
Eating and Drinking Places 5,025,325 5,592,220 5,915,734 6,303,157 6,849,489
Food Stores 1,528,055 1,562,612 1,566,281 1,655,917 1,707,148
Furniture and Appliances 2,272,952 2,532,517 2,926,212 2,912,469 3,059,419
General Merchandise 8,459,603 8,902,765 9,097,843 8,979,210 9,076,459
Other Retail Stores 3,261,059 3,474,936 3,699,300 4,228,784 4,159,706
Packaged Liquor 367,199 401,948 423,650 447,409 493,326
Service Stations 5,062,392 5,867,383 5,502,285 5,422,599 4,871,638
Total Retail Group 41,292,705 46,604,984 49,310,390 51,162,679 52,618,039
Non-Store & Part Time Retailers 82,996 101,693 84,740 72,645 72,160
Business, Service & Repair Group 1,512,221 1,756,892 1,812,265 1,893,173 1,980,645
Manufacturer & Wholesaler Group
Contractors & Material 475,676 576,631 666,208 924,900 807,942
Drugs & Chemical 216,372 351,506 328,673 295,377 320,937
Food/Farm Products & Equipment 137,945 137,058 147,197 135,196 168,211
Furniture & Textiles 21,646 20,505 28,261 43,769 43,788
Heavy Industrial Equipment 1,517,141 2,118,572 1,716,148 1,463,288 1,291,104
Industrial Equipment 440,370 421,222 443,065 481,775 392,375
All Other Equipment 4,660,096 5,979,599 5,697,540 5,342,925 3,614,985
Total Manufacturer & Wholesaler Group 7,469,246 9,605,093 9,027,092 8,687,230 6,639,342
State Adjustments & Transfers (2,176)(1,474)2,506 (208)5,275
Total Sales All Outlets 50,354,992 58,067,188 60,236,993 61,815,519 61,315,461
County Pool 7,868,349 8,143,216 8,729,533 9,021,603 7,916,613
State Pool 20,074 23,404 31,839 40,228 34,607
Total Sales Tax Receipts $58,243,415 $66,233,808 $68,998,365 $70,877,350 $69,266,681
Source: HdL Companies
Due to differences in collection techniques, the information provided has been updated to reflect these changes from the FY2018-2019 CAFR.
170
2016 2017 2018 2019 2020
$2,762,780 $2,843,736 $2,942,286 $3,066,238 $2,532,453
13,354,747 13,843,958 14,506,105 14,569,677 14,406,863
5,532,406 5,681,917 6,060,510 6,323,361 6,620,858
671,350 678,548 630,853 624,380 655,602
7,090,990 7,451,035 7,837,702 8,209,013 7,714,664
1,608,598 1,570,585 1,606,885 1,681,469 1,830,122
2,970,557 2,938,322 3,105,924 3,240,476 2,801,310
8,978,957 9,011,395 9,294,973 9,598,808 9,426,822
3,758,595 3,594,392 3,559,783 3,314,804 3,050,208
546,533 570,899 611,522 613,232 635,999
4,263,920 4,290,976 4,997,389 5,333,050 4,805,789
51,539,433 52,475,763 55,153,932 56,574,508 54,480,690
71,865 73,636 74,684 93,832 68,166
1,798,041 1,875,070 2,083,554 1,954,148 1,764,090
708,269 586,825 750,693 754,578 776,146
198,571 183,569 196,941 245,931 315,597
178,486 185,686 187,952 170,382 154,261
44,875 44,794 52,420 51,350 46,693
1,121,094 1,048,031 1,402,544 1,350,871 1,410,760
328,809 325,547 353,830 354,187 347,523
2,519,465 2,132,304 3,008,126 3,004,557 2,492,813
5,099,569 4,506,756 5,952,506 5,931,856 5,543,793
(10,355)(22,458)(39,455)42,992 65,944
58,498,553 58,908,767 63,225,221 64,597,336 61,922,683
8,433,100 8,819,050 9,296,006 11,170,639 11,170,639
35,572 39,610 43,243 33,283 31,037
$66,967,225 $67,767,427 $72,564,470 $75,801,258 $73,124,359
171
CITY OF BAKERSFIELD
Sales Tax Revenue Payers By Industry
2019 and Ten Years Ago
2010
Number of
Filers
Percent of
Total
Tax
Liability Paid
Percent of
Total $
Retail Trade
Apparel Stores 691 %7.92 $2,237,268 %3.84
Auto Dealers and Supplies 493 %5.65 8,246,511 %14.16
Building Materials 130 %1.49 4,240,592 %7.28
Drug Stores 64 %0.73 591,749 %1.02
Eating and Drinking Places 870 %9.98 5,025,325 %8.63
Food Stores 174 %2.00 1,528,055 %2.62
Furniture and Appliances 593 %6.80 2,272,952 %3.90
General Merchandise 201 %2.31 8,459,603 %14.52
Other Retail Stores 1676 %19.22 3,261,059 %5.60
Packaged Liquor 27 %0.31 367,199 %0.63
Service Stations 106 %1.22 5,062,392 %8.69
Total Retail Group 5025 %57.63 $41,292,705 %70.89
Non-Store & Part Time Retailers 1217 %13.95 82,996 %0.14
Business, Service & Repair Group 1574 %18.05 1,512,221 %2.60
Manufacturer & Wholesaler Group
Contractors & Material 183 %2.10 475,676 %0.82
Drugs & Chemical 44 %0.50 216,372 %0.37
Food/Farm Products & Equipment 58 %0.67 137,945 %0.24
Furniture & Textiles 66 %0.76 21,646 %0.04
Heavy Industrial Equipment 120 %1.38 1,517,141 %2.60
Industrial Equipment 216 %2.47 440,370 %0.76
All Other Equipment 213 %2.44 4,660,096 %8.00
Total Manufacturing & Wholesale Group 900 %10.32 7,469,246 %12.83
State Adjustments & Transfer 4 %0.05 (2,175)%-
Total Sales All Outlets 8,720 %100.00 50,354,993 %86.46
County Pool 7,868,349 %13.51
State Pool 20,074 %0.03
Total 8,720 %100.00 58,243,416 %100.00
Note: Due to confidentially issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the souces of the City's revenue. The amounts shown are gross collections prior to refunds
and collections of amounts due from prior year.
Source: Avenu Insights
172
2020
Number of
Filers
Percent of
Total
Tax
Liability Paid
Percent of
Total $
924 %8.51 $2,532,453 %3.46
520 %4.79 14,406,863 %19.71
184 %1.69 6,620,858 %9.05
84 %0.77 655,602 %0.90
1066 %9.81 7,714,664 %10.55
220 %2.03 1,830,122 %2.50
788 %7.25 2,801,310 %3.83
281 %2.59 9,426,822 %12.89
2131 %19.61 3,050,208 %4.17
93 %0.86 635,999 %0.87
130 %1.20 4,805,789 %6.57
6421 %59.11 54,480,690 %74.50
843 %7.76 68,166 %0.09
2003 %18.44 1,764,089 %2.41
211 %1.94 776,146 %1.06
64 %0.59 315,597 %0.43
175 %1.61 154,261 %0.21
166 %1.53 46,693 %0.06
154 %1.42 1,410,760 %1.93
321 %2.95 347,523 %0.48
239 %2.20 2,492,813 %3.41
1,330 %12.24 5,543,793 %7.58
266 %2.45 65,944 %0.10
10,863 %100.00 61,922,682 %84.68
11,170,639 %15.28
31,037 %0.04
10,863 %100.00 $73,124,358 %100.00
173
CITY OF BAKERSFIELD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year
General
Obligations
Bonds
Net
Bonded Debt Total
Ratio of Net
Bonded Debt to
Assessed
Value
Population
(1)
Total
Debt
Per
Capita
2011 $-$-$-%-338,952 $-
2012 ----354,480 0.00
2013 ----359,221 0.00
2014 ----367,315 0.00
2015 ----365,504 0.00
2016 ----379,110 0.00
2017 ----383,512 0.00
2018 ----386,839 0.00
2019 ----389,211 0.00
2020 ----392,756 0.00
Notes:
Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department
174
175
CITY OF BAKERSFIELD
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
Revenue Bonds Notes
Certificates of
Participation
Total
Governmental
Activities (3)Revenue Bonds Bonds
2011 $-$5,167,000 $26,620,000 $31,787,000 $238,994,444 $-
2012 -4,801,000 24,710,000 29,511,000 217,003,381 -
2013 -4,423,000 22,725,000 27,148,000 201,875,000 -
2014 -4,150,049 20,640,000 24,790,049 200,236,254 -
2015 -3,932,118 18,460,000 22,392,118 190,545,190 -
2016 -3,442,290 16,175,000 19,617,290 187,377,613 -
2017 -2,938,462 13,785,000 16,723,462 174,647,913 -
2018 -2,584,240 11,275,000 13,859,240 166,998,212 -
2019 -6,111,476 8,635,000 14,746,476 160,129,574 -
2020 -4,883,798 5,875,000 10,758,798 138,826,333 -
Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
(1) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are
revised periodically to include data that may not have been available at the time. Personal income was used for the base of this calculation. Details can be
found in the Demographic and Economic Statistics.
(2) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. Population was used for the
base of this calculation. Details can be found in the Demographic and Economic Statistics.
(3) Total Governmental Activities and Total Primary Government totals do not include Compensated Absences.
(4) As restated.
Source: City Finance Department
176
Business-Type Activities
Deferred
Bond
Premium Notes
Contracts/
Loans
Capital
Leases (4)
Total
Business-Type
Activities
Total Primary
Government
Percentage
of Personal
Income (1)
(4)
Per
Capita (2)
(4)
$7,614,444 $7,521,262 $-$22,138,054 $276,268,204 $308,055,204 %4.02 $801
7,283,381 6,769,136 -21,664,941 252,720,839 282,231,839 %3.69 796
6,621,255 6,017,009 -21,174,195 235,687,459 262,835,459 %3.34 732
-5,264,884 -20,664,937 226,166,075 250,956,124 %3.11 683
-4,512,759 246,131 20,135,757 215,439,837 237,831,955 %2.89 651
-3,760,631 292,503 19,091,567 210,522,314 230,139,604 %2.70 607
-3,008,504 319,400 18,730,478 196,706,295 213,429,757 %2.45 557
-2,256,378 368,746 18,315,293 187,938,629 201,797,869 %2.25 522
-1,504,252 314,215 17,671,298 179,619,339 194,365,815 %2.08 499
-752,127 355,737 17,000,597 156,934,794 167,693,592 %1.70 427
177
CITY OF BAKERSFIELD
Direct and Overlapping Debt (1)
As of June 30, 2020
2019 - 20 Assessed Valuation $31,249,303,949
Adjusted Assessed Valuation $31,249,303,949
Debt
Outstanding (2)
Estimated
Percentage
Applicable (3)
Estimated Share
of Overlapping
Debt
Overlapping Tax and Assessment Debt
Kern Community College District Safety
Repair and Improvement District $117,836,081 33.908 $39,955,858
Kern Community College District School
Facilities Improvement District No. 1 75,430,000 33.702 25,421,419
Kern High School District 273,151,209 52.920 144,551,620
Bakersfield City School District 108,406,619 72.436 78,525,419
Beardsley School District 21,845,445 21.128 4,615,506
Edison School District 4,169,942 0.064 2,669
Fairfax School District 8,709,402 25.235 2,197,818
Fruitvale School District 36,751,312 78.191 28,736,218
Greenfield Union School District 29,148,406 85.740 24,991,843
Lakeside Union School District 12,289,981 40.950 5,032,747
Lamont School District 1,556,464 0.018 280
Norris School District 26,179,833 59.675 15,622,815
Panama-Buena Vista Union School District 101,295,000 97.038 98,294,642
Rio Bravo-Greeley Union School District 9,348,037 2.625 245,386
Standard School District 34,750,000 0.954 331,515
Vineland School District 3,711,536 0.0003 11
California Statewide Community Development Authority-Community
Facilities District No. 2015-02 10,560,000 100.000 10,560,000
Greenfield Union School District CFD No. 1 & No. 3 14,831,169 100.000 14,831,169
RNR School Financing Authority 112,605,000 83.949 94,530,771
Overlapping Tax and Assessment Debt $1,002,575,436 $588,447,706
Overlapping General Fund Debt
Kern County Certificates of Participation $85,799,565 32.693 $28,050,452
Kern County Pension Obligations 179,861,441 32.693 58,802,101
Certificates of Participation:
Kern County Board of Education 35,000,000 32.693 11,442,550
Kern County Community College District 27,470,000 30.443 8,362,692
Kern County Community College District Benefit 76,755,000 30.443 23,366,525
Kern High School District 70,295,000 52.920 37,200,114
Panama-Buena Vista Union School District 52,805,000 97.038 51,240,916
Bakersfield City School District General Fund Obligations 2,705,090 72.436 1,959,459
Fairfax School District General Fund Obligations 2,088,129 25.235 526,939
Rio Bravo-Greeley Union School District General Fund Obligations 255,000 2.625 6,694
Rosedale Union School District General Fund Obligations 9,835,000 55.674 5,475,538
Overlapping Tax Increment Debt (Successor Agency)2,245,000 100.000 2,245,000
Overlapping General Fund Debt $545,114,225 $228,678,980
Total Overlapping Debt $1,547,689,661 $817,126,686
Direct Debt
City of Bakersfield
City of Bakersfield General Fund Obligations $5,875,000
Long-term notes payable $4,883,798
Total Direct and Overlapping Debt $827,885,484
Notes:
(1) Excluded from this schedule are: (a) all bonds which are not general obligation bonds of the City and (b) general obligation bonds issued for water utility
purposes which are payable from Water Fund revenues.
(2) Direct debt is reported net of debt service monies available. Overlapping debt is reported at gross values.
(3) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
Source: California Municipal Statistics, Inc. and City Finance Department
178
CITY OF BAKERSFIELD
Computation of Legal Debt Margin
June 30, 2020
Legislation does not mandate a debt limit for the City of Bakersfield.
179
CITY OF BAKERSFIELD
Pledged - Revenue Coverage
Last Ten Fiscal Years
Wastewater Revenue Bonds
Fiscal
Sewer Charges
and Other
Less:
Operating
Net
Available Debt Service (3)
Year Revenue (1)Expenses (2)Revenue Principal Interest Coverage (4)
2010-2011 $36,073,819 $14,144,051 $21,929,768 $1,945,000 $9,597,489 1.90
2011-2012(5)36,769,858 12,913,038 23,856,820 2,930,000 (6)9,597,489 1.90
2012-2013 37,901,401 13,156,437 24,744,964 2,845,000 (7)9,451,151 2.01
2013-2014 39,610,854 14,265,421 25,345,433 3,260,000 (7)9,959,591 1.92
2014-2015 40,386,623 14,195,887 26,190,736 4,360,000 (7)8,744,990 2.00
2015- 2016(8)39,111,557 14,765,141 24,346,416 5,475,000 (7)3,694,732 2.66
2016-2017(8)39,078,787 14,796,170 24,282,617 6,055,000 (7)6,557,105 1.93
2017-2018(9)42,356,491 17,519,378 24,837,113 5,975,000 6,270,503 2.03
2018-2019 43,043,488 17,062,586 25,980,902 5,525,000 6,344,225 2.19
2019-2020 42,531,887 18,800,960 23,730,927 17,948,753 2,849,736 1.14
Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Operating expenses do not include interest or depreciation expenses.
(1) Includes amounts for connection fees, interest funded in bond issue and principal portion of lease revenues.
(2) Does not include the General Obligation Bonds reported in Enterprise Funds. Operating expenses exclude depreciation expense.
(3) Issued Sewer Revenue Bonds, Series 2007A and 2007B in August of 2007.
(4) Minimum coverage requirement on the Wastewater Revenue bonds is 1.25.
(5) Previous report included arbitrage expenses. Revenue has been corrected.
(6) In addition to the normal debt service amount referenced above, there was a partial bond call of $18,730,000 approved by the City Council to reduce the
principal balance of the 2007B bond down to $25 million. Sewer revenue bonds 2007B were refunded in January 2012 (Series 2012A) to change the liquidity
provider from Dexia to JP Morgan Chase.
(7) In addition to the normal debt service referenced above, City Council approved partial bond calls of $5 million each year to reduce the principal
balance of Sewer Revenue Bonds Series 2012A.
(8) Partial refunding of Sewer Revenue Bonds Series 2007A in July 2015 (Series 2015A).
(9) Corrected Operating Expenses Amount entered previously entered incorrectly.
Source: City Finance Department
180
CITY OF BAKERSFIELD
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Population (1)
Personal
Income (2)
(millions)
Per Capita
Personal
Income (2)
Median
Age (3)
Education Level
as a % of
Population having
Formal Schooling
(3) (4)
Elementary
School
Enrollment
Estimated
Unemployment
Rate (%) (5)
2010-2011 338,952 $7,007 $20,675 29.5 77.8 27,590 15.30%
2011-2012 354,480 7,640 21,553 29.5 78.1 21,411 10.50%
2012-2013 359,221 7,862 21,887 29.8 77.8 23,422 8.40%
2013-2014 367,315 8,074 21,980 30.0 78.2 24,012 7.90%
2014-2015 365,504 8,228 22,512 30.1 78.5 24,232 9.30%
2015-2016 279,110 8,532 22,505 30.2 79.7 24,267 9.10%
2016-2017 383,512 8,713 22,718 30.4 79.6 24,299 9.20%
2017-2018(6)386,839 8,965 23,175 30.4 79.6 26,513 7.80%
2018-2019 389,211 9,333 23,980 30.5 80.0 26,491 5.50%
2019-2020 392,756 9,890 25,180 30.7 80.4 26,590 5.30%
Notes:
(1) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time.
(2) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are
revised periodically to include data that may not have been available at the time. Information is for Bakersfield Metropolitan area. Effective 2008-2009
information now includes Delano area.
(3) U.S. Census Bureau estimates as available for Bakersfield Metropolitan area.
(4) This column shows the percent of the City population 25 years and older who are high school graduates or higher.
(5) State of California Employment Development Department (Data shown is for Kern County).
(6) Elementary School Enrollment numbers for 2017-18 restated due to new data collection techniques by the Department of Education.
181
CITY OF BAKERSFIELD
Principal Employers (1)
Current Year and Nine Years Ago
2011 2020
Employer Employees Rank
Percent
of Total City
Employment Employees Rank
Percent
of Total City
Employment
County of Kern (1)N/A 7,633 1 %5.31
Kern High School District (1)4,665 2 %3.24
Bakersfield City School District 4,033 3 %2.81
Dignity Health 3,582 4 %2.49
Panama-Buena Vista Union School
District 2,473 5 %1.72
Bolthouse Farms 2,332 6 %1.62
Adventist Health Bakersfield 1,930 7 %1.34
Kern Medical Center 1,818 8 %1.26
Kern County Superintendent of
Schools 1,567 9 %1.09
City of Bakersfield 1,561 10 %1.09
Others 112,206 %78.03
Total N/A -143,800 %100.00
(1) Not all employees are employed within the Bakersfield City Limits.
Source: City Finance Department.
Total number of employed persons in Bakersfield provided by EDD Labor Force Data.
Note: Only current data is available.
182
183
CITY OF BAKERSFIELD
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016
Function
Governmental activities:
General government 106 109 110 119 126 123
Public safety
Police
Officers 380 385 389 394 404 404
Civilians 123 131 137 143 148 148
Fire
Firefighters and officers 176 177 177 177 177 177
Civilians 19 19 21 22 22 22
Public works 244 247 250 254 248 244
Community services 151 153 153 150 150 146
Community development --65 63 65 63
Development services 57 55 ----
Economic/Community dev.12 11 ----
Business-type activities:
Wastewater treatment 54 56 57 59 59 59
Refuse collection 102 103 106 107 107 107
River & Agricultural Water (1)28 28 28 28 28 28
General aviation ------
Offstreet parking ------
Total 1,452 1,474 1,493 1,516 1,534 1,521
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.
Source: City Finance Department
184
2017 2018 2019 2020
123 124 143 159
407 407 450 479
148 151 176 193
177 177 184 200
22 23 23 25
243 247 261 293
146 148 163 175
63 63 --
--79 92
----
59 61 62 64
108 109 111 112
29 29 30 32
----
----
1,525 1,539 1,682 1,824
185
CITY OF BAKERSFIELD
Property Value, Construction and Bank Deposits (1)
Last Ten Calendar Years
Commercial
Construction
Residential
Construction
Other
Construction
No. of
Units Value
No. of
Units Value Value
2010 40 $13,425 848 $197,380 $98,057
2011 40 41,482 422 92,313 81,984
2012 49 20,807 1,122 259,851 108,877
2013 69 15,710 1,336 312,569 157,024
2014 89 56,320 1,435 389,715 203,722
2015 70 49,806 1,391 384,819 377,510
2016 115 63,714 1,387 370,956 338,559
2017 59 61,034 1,132 332,652 312,316
2018 93 83,187 1,089 321,454 278,079
2019 111 48,155 1,421 400,718 321,560
Notes:
(1) Property value and bank deposits reported in thousands.
(2) Federal Deposit Insurance Corporation
(3) Construction units and values are based on a 12 month calendar year. June 30, 2020 data reflects the 2019 calendar year.
Source: City Finance Department
186
Total
Construction
No. of
Units Value
Bank
Deposits (2)
888 $308,862 $5,172,880
462 215,779 5,280,515
1,171 389,535 5,626,755
1,405 485,303 6,069,764
1,524 649,757 6,421,302
1,461 812,135 3,759,961
1,502 773,229 7,141,426
1,191 706,002 7,515,635
1,182 682,720 7,702,403
1,532 770,433 8,675,464
187
CITY OF BAKERSFIELD
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2011 2012 2013 2014
Function
Public safety - Police
Physical arrests 22,028 29,623 32,158 37,246
Parking violations 5,433 4,708 6,620 10,499
Traffic violations 10,043 9,172 11,528 15,065
Public safety - Fire
Number of calls answered 27,392 28,870 31,164 32,898
Inspections 3,355 3,276 3,660 4,195
Public works
Street resurfacing (lane miles)83 129 127 116
Refuse collection
Refuse collected (tons/day)111,500 108,200 111,420 110,125
Recyclables collected (tons/day)47,000 48,215 53,350 55,500
Recreation & parks
Athletic field permits issued 5,685 10,156 9,297 9,625
Community center,
aquatics/sports admissions 440,101 473,530 475,619 502,994
River & Agricultural water (1)
New connections 493 301 701 1,123
Water main breaks 7 10 14 4
Average daily consumption 27,008 27,568 36,730 39,712
(thousands of gallons)
Wastewater treatment
Average daily sewage treatment 32.30 MGD 31.28 MGD 32.13 MGD 30.0 MGD
(millions of gallons)
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.
Source: City Finance Department
188
Fiscal Year
2015 2016 2017 2018 2019 2020
24,254 19,965 13,008 9,502 9,895 8,569
6,183 4,083 3,843 2,238 10,438 14,207
24,154 26,934 24,190 16,548 24,739 21,879
35,117 35,747 38,823 40,945 42,027 44,560
4,978 5,684 6,859 5,649 8,712 8,330
119 79 70 75 115 90
102,500 102,800 103,100 102,200 175,081 177,885
78,500 79,100 79,500 82,700 87,680 89,786
9,046 8,054 7,788 8,224 7,046 4,589
527,617 553,831 518,432 534,959 542,580 431,568
1,033 945 968 500 755 714
5 4 4 3 2 3
34,973 29,812 33,378 36,128 35,588 40,173
29.9 MGD 28.7 MGD 29.0 MGD 29.6 MGD 28.9 MGD 29.1 MGD
189
CITY OF BAKERSFIELD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2011 2012 2013 2014
Function
Land (1)
Area 149.75 149.80 150.01 150.18
Public safety
Police stations/substations 4 4 4 3
Fire stations 14 14 14 14
Refuse collection
Collection trucks 57 53 55 57
Public works
Streets (miles) (2)1,394 1,409 1,424 1,441
Streetlights 16,092 16,160 16,602 16,388
Traffic signals 394 394 402 410
Recreation & parks
Parks acreage 595 595 595 623
Parks 59 59 59 59
Swimming pools 4 4 4 4
Community centers 3 3 3 3
River & Agricultural Water (3)
Water mains (miles) (2)501 502 503 505
Fire hydrants (2)10,301 10,441 10,581 10,723
Wastewater treatment
Sanitary sewers (miles)1,061 1,061 1,061 1,063
Storm sewers (miles)263 263 263 265
Maximum daily treatment capacity 57 MGD 57 MGD 57 MGD 57 MGD
(millions of gallons)
Notes:
(1) Reported in square miles.
(2) Corrected numbers for all years up to and including FY2011-12 with more accurate information provided.
(3) Departmental name change in FY2018-19 from Domestic & Agricultural water to River & Agricultural water.
Source: City Finance Department
190
Fiscal Year
2015 2016 2017 2018 2019 2020
150.18 150.97 151.10 151.10 151.14 151.15
3 3 3 3 3 3
14 14 14 14 14 14
57 57 57 57 67 74
1,441 1,553 1,596 1,505 1,506 1,517
16,486 16,781 17,042 18,632 18,635 18,639
419 420 426 428 431 433
769 769 776 810 810 828
59 59 59 59 59 61
4 4 4 4 4 4
3 3 3 3 3 3
515 525 535 589 592 608
10,853 11,117 11,130 11,396 11,467 11,697
1,072 1,076 1,077 1,077 1,086 1,090
268 269 270 270 274 276
57 MGD 57 MGD 57 MGD 57 MGD 57 MGD 57 MGD
191
CITY OF BAKERSFIELD
Schedule of Insurance in Force
June 30, 2020
Excess Workers' Compensation Statutory Limit with a $500,000 self-insured retention.
Excess Liability $55,000,000 Limit with a $1,000,000 self-insured retention.
Combination Crime $5,000,000 Coverage limit, $25,000 deductible.
Airport Operations $10,000,000 Coverage limit.
Aircraft $10,000,000 Coverage limit.
Cyber Liability $25,000,000 Aggregate limit $50,000 self-insured retention
Fiduciary Liability $5,000,000
Physical Loss:
All Risk Property and Boiler $600,000,000
Coverage on buildings and contents subject to $5,000
deductible with various sublimits.
Machinery
Auto-Physical Damage
Coverage for vehicles/equipment values up to $250,000
subject to a $10,000 deductible and vehicles/equipment
values about $250,000 subject to a $100,000 deductible
Life and Medical:
Life and Accident $2,000
Supervisory & Management employees. Each employee
(basic coverage) and additional insurance equal to annual
salary to nearest $1,000.
$12,000 Safety employees, each employee (basic coverage).
$30,000 Miscellaneous employees, each employee (basic coverage).
Medical and Dental Basic coverage plus (no lifetime maximum)
extended benefits of 90% after $750
deductible for medical (Blue Shield)
or Group dental ($50 deductible for United Concordia).
Source: Liability and Physical Loss coverage is provided by the City's Risk Management.
Department. Life and Medical coverage is provided by the City's Human Resource Department.
192
Insurance Company Policy Number
Expiration
Date Annual Premium
PRISM PRISMPE20 EWC-04 07/01/2021 $1,147,435
ACCEL 07/01/2021 1,903,607
National Union Fire ACIP712020 07/01/2021 15,935
Pik West AAPN14413352002 07/01/2021 3,854
Pik West AACN10687846001 07/01/2021 5,590
Hudson SHA31211205 10/01/2020 11,583
CSAC PROPERTY2021 03/31/2021 530,603
PRISM PH2033951 06/30/2021 9,864
Voya Financial 0067794-4 12/31/2020
$3.00 per thousand dollar of salary,
management & supervisory $2,000 plus annual
salary maximum benefit $100,000.
Voya Financial 0067794-9 12/31/2020
Safety-$27.30 each permanent employee for
$12,000 coverage.
Voya Financial 0067794-9 12/31/2020
Blue/White Collar Units: $68.38 each
permanent employee for $30,000 coverage.
Blue Shield PPO Health W0054380 12/31/2020 Bi-weekly rate range from $120.70
Blue Shield HMO Health W0054380 to $735.37 per employee for medical
Blue Shield Trio Health W0054380 based upon individual's plan coverage and
Kaiser Permanente
HMO 132733-1003 plan combination and $7.66 to $50.16
Kaiser Permanente
DHMO 132733-0010 dental. $1.27 to $4.67 for vision
United Concordia
DPPO Dental 920318-000 12/31/2020 HMO, $1.59 to $5.84 for PPO
United Concordia
DHMO Dental 920318-001
Medical Eye Service
HMO Vision 16269 12/31/2020
Medical Eye Service
PPO Vision 16270
193
BROWN
ARMSTRONG
CERTIF IED
PU BLIC
ACCOU TA rs
BAKERSFIELD OFFICE
(MAIN OFFICE)
4200 TRU TU AVENUE
SU ITE 300
BAKERSFIELD, CA 93309
TEL 6&1.324.497 1
FAX 661.324.4997
EMAIL info bacpas. o m
FRESNO OFFICE
10 RI VER PARK Pl CE EAST
U ITE208
FRE 10 , CA 93720
TEL 559.476.3592
STOCKTON OFFICE
1919GRAND AL BLVD
U!T C6
STOCKTON, CA 95207
TEL 888.565.1040
WWW.BA PA , OM
RlGlffiMU) wl1h the f'ubli<" Conip~ny
At<ou111ing Oversight Boar<! and
MEMBER f tho Ametjcan ln~lilul <>i
rtificd P<ihiic cwn1a111
BROWN ARMSTRC)NC
Cert!/£ed Public Aaountants
AGREED UPON CONDITIONS REPORT DESIGNED TO INCREASE
EFFICIENCY, INTERNAL CONTROLS, AND/OR FINANCIAL REPORTING
(MANAGEMENT LETTER)
To the Honorable Mayor and
Members of the City Council
City of Bakersfield
Bakersfield, California
In planning and performing our audit of the financial statements of the City of
Bakersfield, California (the City), for the year ended June 30, 2020, in accordance with
auditing standards generally accepted in the United States of America , we considered
the City's internal control structure over financial reporting (internal control) as a basis
for designing our auditing procedures for the purpose of expressing our opinion 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 t imely 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 .
Our consideration of internal control was for the limited purpose described in the first
paragraph and was not designed to identify all deficiencies in internal control that might
be material weaknesses. In addition, because of the inherent limitations in internal
control, including the possibility of management override of controls, m isstatements
due to error or fraud may occur and not be detected by such controls. Given these
limitations during our audit, we did not identify any deficiencies in internal control that
we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified .
However, during out audit, we became aware of certain matters that are opportunities
for strengthening internal controls and operating efficiencies. The recommendations
listed in this report summarize our comments and suggestions regarding these
matters.
We w ill review the status of these comments during our next audit engagement. We
have already discussed these comments and suggestions with various personnel of
the City , and we will be pleased to discuss these matters in further detail at your
convenience, to perform any additional study of these matters, or to assist you in
implementing the recommendations.
Current Year Agreed Upon Conditions and Responses
Condition Number 1 -Lack of Segregation in Cash Disbursements
During our cash disbursement walkthrough , we noted an Accounts Payable Account
Clerk II has the ability to add new vendors, process invoices , and record in the general
ledger (GL).
Recommendation
In order to mitigate the risk of the possibility to create a fictitious vendor, we recommend the City implement
a process to review the new vendors periodically and/or remove the Account Clerk ll's ability to enter new
vendors.
Management Response and Planned Correction Action
There should be no instances where an account clerk can post transactions to the GL without review by
supervisors or management. The division has one Accounts Payable clerk who can create vendors and
also is responsible for posting some vendor payments but all groups are reviewed with invoices verified as
valid by the AP supervisor. Due to staffing issues, the creation of new vendors could not be segregated to
other individuals. The Finance department will examine current processes so that all new vendors created
are reviewed by an Accountant or Supervisor to verify accuracy and necessity .
Condition Number 2 -Lack of Formal Policy over Proper Time Card Procedures in the HOME and
CDBG Programs
During our test of controls over payroll for the federal grants HOME and CDBG programs, we noted that
several time cards were missing employee signatures and department approval signatures. The City's
directive to all City departments is that time cards should be signed by the individual and department. Due
to the actual formal written policy not yet finalized, these departments have not implemented the informal
process to require employees and supervisors to sign the time cards.
Recommendation
We recommend that the City reinforce to all departments the policy requiring all time cards be authorized
by employees and department supervisors.
Management Response and Planned Correction Action
The City had begun a transition to an electronic timecard system called Executime in 2018 and is still in the
midst of completion of the process in some departments . The City policy document has been in process
since implementation began but has not been expected to finalize until all departments have completed
that changeover. The Finance and Human Resources departments will finalize the document and insure
that the requirement that all time cards are properly reviewed and approved applicable supervisors is
included. In the interim, while awaiting the final document, the department in question has been reminded
of this requirement and has agreed to emphasize the need with their staff.
Status of Prior Year Recommendations
Agreed-Upon Condition 2019-1 -Business Process Improvement Observations (IT Controls Only): There
is No IT Strategic Plan in Place (2017-2019).
Although the City has developed a draft Technology Services Strategic Plan during the audit period, the
plan was not finalized and was not complete as of the close of the audit period. Failure to develop an IT
strategic plan increases the risk that the City's IT initiatives do not align with the City's strategic goals.
Recommendation
It is recommended that the Technology Services department finalize its Technology Services Strategic Plan
as soon as possible. The plan should include, at a minimum , the following areas :
• Identification and prioritization of IT initiatives
• Alignment with the goals and objectives of the City as a whole
• Provisions for periodic review by management and key stakeholders and periodic updates for
continued relevance to strategic initiatives
• Provisions for periodic reporting to the City Council and the City Manager on progress made
towards the initiatives
Management Response
A Technology Services (IT) Strategic Plan has been written, reviewed, and is currently being revised. The
City's Technology Services intends to present the revised Strategic Plan to the City Manager during the
fiscal year 2019-2020 (July 1, 2019 -June 30, 2020).
Current Year Status
Implemented.
Bakersfield, California
January 25, 2021
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
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BROWN
ARMSTRONG
CERTIFIED
PUBLI C
ACCO U TA TS
BAKERSFIELD OFFICE
{MAIN OFFICE)
420.0 TRUXTUN AVE UE
SU ITE 300
BAKER FIELD, CA 9' 09
TEL 661 .324 .4971
FA 66 1. 24 .4997
EMAIL info @ba pas.corn
FRESNO OFFICE
10 RIVER PA RK PLACE EA T
SU ITE.208
FRE O, A 93720
TEL 59.476.3592
STOCKTON OFFICE
191 GRAND AL BLVD
sum c&
TOCKTON , CA 95 20 7
TEL 888. -65.1 04 0
WWW.BACPA .COM
RECI TERED wbh !he> Publi C<>mpMy
t\r • 1onl1ng v 1>igh1 ll tla rd Jlld
MEMG ERor 1h m••rl n lnslltu1n1I
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BROWN ARMSTRONG
Certified Public Accounta nts
REQUIRED COMMUNICATION IN ACCORDANCE
WITH PROFESSIONAL STANDARDS (SAS 114)
To the Budget and Finance Committee,
Honorable Mayor, and
Members of the City Council of the
City of Bakersfield
Bakersfield , California
We have audited the financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund
information of the City of Bakersfield (the City) for the year ended June 30, 2020.
Professional standards require that we provide you with information about our
responsibilities under auditing standards generally accepted in the United States of
America, Government Auditing Standards, and the Uniform Guidance, as well as
certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to you dated April 17, 2020 . Professional
standards also require that we communicate to you the following information related
to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1
to the financial statements. During the fiscal year ended June 30, 2020, the City
adopted the provisions of Governmental Accounting Standards Board (GASS)
Statement No. 95, Postponement of the Effective Dates of Certain Guidance. We
noted no transactions entered into by the City during the year for which there is a lack
of authoritative guidance or consensus. All significant transactions have been
recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's knowledge and experience about
past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the City's'
financial statements were :
Management's estimates in establishing allowances for accounts receivable,
estimated date of collection to comply with period of availability for certain
revenues, estimated net pension liability and related pension expense and
deferred inflows of resources and outflows of resources , and establishing the
net other post-employment benefits (OPES) liability and related OPES
expense and deferred inflows of resources and outflows of resources , and
management's estimate over self-insurance claims liabil ities . In addition,
management estimates for the determination of fa ir value of investments and
the estimated useful lives of capital assets, which are derived by various
methods as detailed in the notes . We evaluated the key factors and
assumptions used to develop these estimates in determining that they are
reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financia l
statement users. The most sensitive disclosures affecting the financial statements were :
• Note 2 -Cash and Investments
• Note 5 -Capital Assets
• Note 12 -Pledged Revenues
• Note 13 -Deferred Inflows of Resources
• Note 16 -Employment Retirement Benefits
• Note 17 -Other Post-Employment Benefits (OPEB)
• Note 19 -Risk Management
• Note 20 -Commitments and Cont ingencies
• Note 23 -Prior Period Adjustments
The financial statement disclosures are neutral, consistent , and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in deal ing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial , and commun icate them to the appropriate level of
management. We detected no such misstatements during our audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated January 25, 2021 .
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion " on certain situations . If a consultation involves application
of an accounting principle to the City 's financial statements or a determination of the type of auditor's
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards , with management each year prior to retention as the City's auditors. However, these
discussions occurred in the norma l course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to Management's Discussion and Analysis , the Budgetary
Comparison Schedules for the General Fund and Major Special Revenue Funds, the City 's Retirement
Plans ' Schedules of Changes in the Net Pension Liability and Related Ratios , the Schedules of Pension
Contributions , the Other Post-Employment Benefit (OPEB) Plan -Schedule of Changes in the City's Net
OPEB Liability and Related Ratios, and the Schedule of OPEB Contributions , which are required
supplementary information (RSI) that supplement the basic financial statements. Our procedures
consisted of inquiries of management regarding 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 did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the Schedule of Expenditures of Federal Awards, Combining and
Individual Major and Nonmajor Fund Financial Statements and Schedules, Schedule of Long-Term Debt
Recorded in the Private Purpose Trust Fund , and other supplementary information which accompany the
financial statements but are not RSI. With respect to this supplementary information , we made certain
inquiries of management and evaluated the form, content , and methods of preparing the information to
determine that the information complies w ith accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period , and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying account ing records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections, wh ich accompany the
financial statements but are not RSI. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the Budget and Finance Committee,
Honorable Mayor, City Council, and management of the City of Bakersfield and is not intended to be, and
should not be, used by anyone other than these specified parties .
Bakersfield, California
January 25, 2021
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
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MEMORANDUM
DATE: January 21, 2021
TO: Budget & Finance Committee
FROM: Jacqui Kitchen, Asst. City Manager & Acting Economic & Community Development Director
SUBJECT: Annual Action Plan process for FY 2021-22 HUD Applications (CDBG, ESG, HOME, HOPWA)
Background: The United States Department of Housing and Urban Development (HUD) has designated the City
of Bakersfield as an Entitlement City. Therefore, HUD provides annual funding to improve low-income
neighborhoods throughout the City pursuant to the federal programs noted below. As is the case each year,
HUD had not yet released the entitlement amount for FY 2021-22 as of the preparation of this Memo. However,
there is an expectation that Congress will maintain previous year funding levels for all programs. The table
below shows the anticipated HUD funds for all projects using last year’s entitlement as the current projection.
Federal Program Previous FY20-21 Allocation
Community Development Block Grant (CDBG) $3,870,192*
Home Investment Partnership (HOME) $1,607,271*
Emergency Solutions Grant (ESG) $326,368
Housing Opportunities for Persons with AIDS (HOPWA) $631,602
Total $6,435,432
*Includes an additional $8,000 in program income for CDBG and $80,000 for HOME
COVID-19 Impacts: In the first quarter of 2020, the impacts of the COVID-19 pandemic were beginning to be felt
throughout the nation. Therefore, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was
approved by the US Congress on March 27, 2020, to respond to the growing effects of this historic public
health crisis. In part, the CARES Act authorized HUD to also provide supplemental CDBG and ESG funding to
entitlement communities such as the City of Bakersfield. These one-time funds are separate from the
Annual HUD funds that are the subject of this Memorandum, and are listed in Attachment D for reference.
Due to the federal deadlines associated with spending this funding, the unique program criteria and the
urgency in which the City needed to administer these funds, the City Council has considered these funds
separately throughout the last year. All funding recommendations were made in collaboration with the
Bakersfield Kern Regional Homeless Collaborative, homeless service providers, and in consideration of the
needs of the City’s own Brundage Lane Navigation Center (BLNC).
A bright spot in this process has been that a number of the applications that were submitted for this, the
Annual Action Plan process, were able to be funded through the alternative CARES programs. Those
opportunities are highlighted in the attached documents.
Applications Received: Each year, the City issues a Notice of Funding Ability (NOFA) for the annual entitlement
funds listed in the table above. The deadline for the submission of CDBG, HOME, and ESG applications for FY
2021-22 funding was November 30, 2020. The requested projects are intended to improve the quality of life and
infrastructure for low-income persons and neighborhoods in the City of Bakersfield. This year the City received
18 applications from non-profit and private entities totaling $5,138,376, and 10 applications from City
Departments totaling $3,613,243. The total request for all grants, from both City and Non-City applicants, was
$8,751,619, and the application details are listed in Attachment C.
Recommendation: Pursuant to federal requirements, Staff conducted a comprehensive review and evaluation
of all applications for funding. Staff has prepared the attached Memorandum and recommended budget for
consideration by the Budget and Finance Committee. Staff anticipates that the FY 2021-22 HUD Action Plan will
be considered by the City Council on April 21, 2021. This is the second funding year of the Consolidated Plan
2020-2025.
Therefore, Staff recommends that the Budget and Finance committee recommend that the City Council vote to
fund allocations for the CDBG, HOME, ESG and HOPWA funds are listed in Attachments A and B.
Attachments:
A. FY 21/22 Recommended CDBG Budget
B. FY 21/22 Recommended ESG/HOME/HOPWA Budget
C. Overview of Applications Received (Reference)
D. CARES Act – One Time Funding (Reference)
Attachment A
Description FY 21-22
Requested
FY 21-22
Recommended
FY 20-21
Last Year Ward
CDBG Entitlement 3,862,192 3,862,192 3,862,192
Program Income (Projected for FY 21-22) 8,000 8,000 8,000
Total Available Resources 3,870,192 3,870,192 3,870,192
Administration (not to exceed 20% or $772,438) 772,438 772,438 772,438
Section 108 Loan Payment on $4.1M 316,424 316,424 308,889
Section 108 Loan Payment on $800K 58,776 58,776 56,937
Total Admin and Debt Payment 1,147,638 1,147,638 1,138,264
Total Resources minus Admin and Debt Payments 2,722,554 2,722,554 2,731,928
Fair Housing Program Services 100,000 100,000 100,000 1
Bakersfield Senior Center Support Services 90,000 90,000 90,000 1
Flood Ministries Homeless Outreach - Designated CE Team* 264,508 264,480 All
Bakersfield Senior Center COVID Related Expenses** 60,000 1
MLK Community Initiative Community Garden (Land lease of City CDBG lot only) - - - 1
Total Public Service Projects 514,508 190,000 454,480
Home Access Rehabilitation 50,000 50,000 40,000 All
Union Brundage Phase 8 Area Curb, Gutter Sidewalk and ADA Imprv. 470,000 502,514 1
Madison Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 382,510 391,584 1
Oleander Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 382,510 241,584 2
Union & East Truxtun Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 382,510 - 2
Benton Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 382,510 - 7
Alta Vista Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 - - 2
Jewett Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 - - 2
Sunset Area Lighting Upgrade 593,243 - - 2
McMurtrey Aquatic Center Imprv. 150,000 150,000 2
Jefferson Park Imprv. 250,000 250,000 2
Castro Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. - - 391,584 2
Truxtun Area Curb, Gutter, Sidewalk, Accessibility Imprv. - - 431,584 2
East Brundage: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. - - 431,584 1
Belle Terrace Park Upgrades - County of Kern - - 350,000 1
The Mission of Kern County Cooling Unit Purchase** 25,000 - 2
Bakersfield Senior Center Building Demolition 25,000 25,000 1
Mercy House BLNC Art and Murals 18,000 25,000 1
CapK Food Bank Expansion* 1,200,000 - - 1
Total Public Facilities 4,881,243 2,532,554 2,277,919
Total Requests for Public Services + Projects 5,395,751 2,722,554 2,732,399
Total Available Resources Remaining (2,673,197) - -
**Will be funded via CARES CDBG 3, see attachment for details
* Funded via CARES ESG-2 (City Council approved 1/20/21, Agreement #2021-016), see attachment for details.
RECOMMENDED CDBG BUDGET FY 2021-22
RESOURCES
ADMINISTRATION AND DEBT SERVICE
PUBLIC SERVICES (MAX. 15% or $579,417)
PUBLIC FACILITIES
Attachment B
RECOMMENDED HOME BUDGET FY 2021-22
HOME Entitlement 1,527,271$ 1,527,271$ 1,527,271$
Program Income (Projected for FY 21/22)80,000$ 80,000$ 100,000$
Prior Years Uncommitted HOME Funds -$ 1,809,720$
Total Available Resources 1,607,271$ 3,416,991$ 1,627,271$
Administration (not to exceed 10%)152,727$ 152,727$ 152,727$
Total Resources minus Admin 1,454,544$ 3,264,264$ 1,474,544$
CHDO Set Aside (15%)229,091$ 229,091$ 229,091$
Acquisition/Construction/Rehabilitation/Downpayment -$ 135,173$ 995,453$
VCCDC Downpayment Assistance Program 250,000$ 250,000$ 250,000$
Pacific Southwest Community Development Corp/Chelsea*1,000,000$ 1,000,000$
Cesar Chavez Foundation/HACK Renaissance at Baker Street 1,650,000$ 1,650,000$
Self Help Enterprises Housing Rehab 1,000,000$ -$
Total (All Requests)3,900,000$ 3,264,264$ 1,474,544$
Total Available Resources Remaining (2,445,456)$ -$ 0$
* Activity also funded via PSVS Affordable Housing
RECOMMENDED ESG BUDGET FY 2021-22
ESG Entitlement (Projected for FY 21/22)326,368$ 326,368$ 326,368$
Administration (not to exceed 7.5%)24,478$ 24,478$ 24,478$
Total Resources minus Admin 301,890$ 301,890$ 301,890$
Flood Ministries - Street Outreach*24,477$ 24,000$ 24,477$
Bakersfield Homeless Center - Shelter*180,000$ 70,000$ 70,000$
Bakersfield Homeless Center - Rapid Rehousing & Prevention*121,891$ 106,390$ 106,072$
The Mission at Kern County - Shelter*97,500$ 70,000$ 70,000$
Alliance Against Family Violence - Shelter 32,000$ 31,500$ 31,342$
Total (All Requests)455,868$ 301,890$ 301,890$
Total Available Resources Remaining (153,978)$ -$ 0$
RECOMMENDED HOPWA BUDGET FY 2021-22
HOPWA Entitlement (Projected for FY 21/22)631,602$ 631,602$ 631,602$
Administration (not to exceed 3%)18,948$ 18,948$ 18,948$
Total Resources minus Admin 612,654$ 612,654$ 612,654$
Kern County Public Health 612,654$ 612,654$ 612,654$
Total (All Requests)612,654$ 612,654$ 612,654$
Total Available Resources Remaining -$ -$ -$
RESOURCES
ADMINISTRATION AND DEBT SERVICE
HOPWA SPONSOR/PROVIDER
ADMINISTRATION
PROJECTS
Description FY 21-22
Requested
FY 21-22
Recommended
FY 20-21
Last Year
*Activity also funded via one-time with State and or COVID relief funds, see attachment D for details.
Description FY 21-22
Requested
FY 21-22
Recommended
FY 20-21
Last Year
RESOURCES
PROJECTS
Description FY 21-22
Requested
FY 21-22
Recommended
FY 20-21
Last Year
RESOURCES
ADMINISTRATION AND DEBT SERVICE
Attachment C
Overall HUD Project Applications for FY 2021-22 Funding
FY 2021-22 HOME APPLICATIONS
HUD
Category Applicant Ward Proposal Total Cost FY 20-21
Request
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Proposed
for Budget
HOME
Affordable
Housing New
Construction
Cesar Chavez
Foundation
and HACK
1001
Baker St.
NE Corner
Baker &
Kentucky
Ward 1
84-unit new
construction,
mixed-use
development
42 units < 30% AMI
12 units < 50% AMI
30 units < 60% AMI
$1,650,000 None Yes 25/30
Yes, RAB will help the City
of Bakersfield meet its
overall affordable housing
goals. Prior FY funds can be
used.
$1,650,000
HOME
Down
payment
Assistance
Program
Ventura
Community
Development
Corporation
VCCDC
Citywide
$25,000 down
payment assistance
program
$250,000 $250,000 Yes 26/30
Yes, opportunity to
leverage their current
funds. Citywide Home
ownership program.
$250,000
HOME
Affordable
Housing
Rehab
Self Help
Enterprises-
Madison
Place and The
Haven
1885
Madison
Street &
231
Quantico
Avenue,
Ward 1
80-unit
rehabilitation.
Madison place
consist of 56 units
and The Haven
consists of 24 units.
Previously received
HOME funds in
1999 & 1996
$1,000,000 $1,000,000 Yes 24/30
No new units will be
constructed. Properties are
currently in fair condition.
$0
HOME
Affordable
Housing New
Construction
Pacific
Southwest
Community
Development
Corp.
(Chelsea)
NE corner
Stine and
Berkshire
Ward 7
72-unit new
construction. $1,000,000 None Yes 27/30
Yes, will help the City of
Bakersfield meet its overall
affordable housing goals.
Project in Ward 7,
developer has done some
community outreach
already.
$1,000,000
Projected non-admin HOME Funding: $1,454,544 Requested Funding: $3,900,000 Recommended Funding: $2,900,000
FY 2021-22 ESG APPLICATIONS
HUD
Category Applicant Ward Proposal Total Cost FY 20-21
Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Proposed for
Budget
Emergency
Shelter
Alliance
Against Family
Violence
All
Operating expenses
for emergency
shelter
$32,000 $31,342 Yes 30/30 Staff recommends approval $31,500
Rapid
Rehousing &
Homeless
Prevention
Bakersfield
Homeless
Center
All
Expenses to house
homeless families
and individuals.
$121,891 $70,000 Yes 30/30 Staff recommends approval $70,000
Emergency
Shelter
Bakersfield
Homeless
Center
All
Operating expenses
for emergency
shelter
$180,000 $106,072 Yes 30/30 Staff recommends approval $106,390
Emergency
Shelter
Mission of
Kern County All
Operating expenses
for emergency
shelter
$97,500 $70,000 Yes 30/30 Staff recommends approval $70,000
Outreach Flood
Ministries All
Expenses to operate
outreach efforts to
homeless persons.
$24,477 $24,477 Yes 27/30 Staff recommends approval $24,000
Projected non-admin ESG Funding: $301,890 Requested Funding: $455,868 Recommended Funding: $301,890
FY 2021-22 CDBG Applications – Outside Public Services & Facilities
HUD
Category Applicant Ward Proposal Total Cost FY 20-21
Funded
HUD
Eligible
Staff
Rating
CD Recommendation
and Notes
Proposed
for Budget
Facility
Improvements
MLK
Community
Initiative
Ward 1 Community Garden
(Lease RDA lot) $0 $0 Yes 29/30
Yes, no funding
requested but land
lease required
$0
Facility
Improvements
Bakersfield
Senior
Center 1
Ward 1 Demolition of Existing
Building $25,000 $0 Yes 13/15 Yes $25,000
Public
Services
Bakersfield
Senior
Center 2
Ward 1 Public Services $90,000 $90,000 Yes 27/30 Staff recommends
approval $90,000
Public
Services
Bakersfield
Senior
Center 3
Ward 1 COVID Related Expenses $60,000 $0 Yes 30/30 CDBG Cares $0
Facility
Improvements
Community
Action
Partnership
of Kern
Countywide CAPK Food Bank
Expansion $1,200,000 $0 Yes 30/30 CDBG Cares $0
Public
Services
Flood
Ministries Countywide Rapid Response Team
Street Outreach Proposal $264,508 $264,508 Yes 26/30 ESG CV2 $0
Public
Services
The
Mission at
Kern
County
Ward 2 Purchase of Cooling Units
for Program Building $25,000 $0 Yes 28/30 Staff recommends
approval $25,000
Facility
Improvements
Mercy
House Ward 1 Art and Murals for BLNC $20,000 $0 Yes 28/30 Staff recommends
approval $20,000
Fair Housing
Services Draft RFP All Fair Housing Services $100,000 $100,000 Yes N/A Staff recommends
approval $100,000
CDBG Funds Requested: $1,800,508 Recommended Funding: $260,000
FY 2021-22 CDBG Applications – City Departments
HUD Category Applicant Ward Proposal Total
Cost
FY 20-21
Funded
HUD
Eligible
Staff
Rating CD Recommendation and Notes Proposed
for Budget
Public
Improvements
Public
Works
Ward
2
Union & E. Truxtun Area
Curb, Gutter, Sidewalk
and ADA Imprv.
$350,000 $0 Yes 28/30
Priority #1. Priority listing
provided by Public Works
Department.
$350,000
Public
Improvements
Public
Works
Ward
7
Benton Area Curb,
Gutter, Sidewalk and
ADA Imprv.
$350,000 $0 Yes 26/30
Priority #2. Priority listing
provided by Public Works
Department.
$350,000
Public
Improvements
Public
Works
Ward
1
Union & Brundage
Area Curb, Gutter,
Sidewalk and ADA
Imprv.
$470,000 $0 Yes 26/30 Priority #3. Priority listing
provided by Public Works
Department. Continuation of
prior year projects.
$470,000
Public
Improvements
Public
Works
Ward
2
Parkway, Sunset
Avenue & San Emidio
Street Lighting Imprv.
$593,243 $0 Yes 26/30
Priority #4. Priority listing
provided by Public Works
Department.
$0
Public
Improvements
Public
Works
Ward
1
Madison Area Curb,
Gutter, Sidewalk and
ADA Imprv.
$350,000 $391,584 Yes 26/30
Priority #5. Priority listing
provided by Public Works
Department. Continuation of
prior year projects.
$350,000
Public
Improvements
Public
Works
Ward
2
Chester Ln, Oleander
Area Curb, Gutter,
Sidewalk and ADA
Imprv.
$350,000 $241,584 Yes 26/30
Priority #6. Priority listing
provided by Public Works
Department.
$350,000
Public
Improvements
Public
Works
Ward
2
Alta Vista Area Curb,
Gutter, Sidewalk and
ADA Imprv.
$350,000 $0 No 0/30
Priority #7. Priority listing
provided by Public Works
Department.
$0
Public
Improvements
Public
Works
Ward
2
Jewett Area Curb,
Gutter, Sidewalk and
ADA Imprv.
$350,000 $0 Yes 28/30
Priority #8. Priority listing
provided by Public Works
Department.
$0
Public
Improvements
Recreation
and Parks
Ward
2
McMurtrey Aquatic
Center Pool Shade
Structure Imprv.
$150,000 $0 Yes 23/30 $150,000
Public
Improvements
Recreation
and Parks
Ward
2
Jefferson Park ADA
Imprv. & Basketball
Court Light Rehab.
$250,000 $0 Yes 23/30 $250,000
Accessibility
Improvements
Dev.
Services All Home Accessibility
Imprv. 70,000 40,000 Yes 26/30 $40,000
Capital Improvement Projects Funding Requested: $3,613,243 Funding Recommended: $2,320,000
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MEMORANDUM
DATE: February 23, 2021
TO: Budget & Finance Committee
FROM: Jacqui Kitchen, Assistant City Manager & Acting Economic & Com Development Director
SUBJECT: Recommended Cares Act – Community Development Block Grant Funding
Background. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was approved on March 27,
2020, to respond to the growing effects of this historic public health crisis. In response to COVID -19, the
US Congress has authorized the US Department of Housing and Urban Development (HUD) to provide
supplemental Community Development Block Grant (CDBG-CV) and Emergency Solutions Grant (ESG-CV)
funding to entitlement communities such as the City of Bakersfield. These funds are to be used to prevent,
prepare for, and respond to the impacts of COVID-19; and are distributed nationally in accordance to the
most recent formula that HUD uses which includes - poverty, age of housing, and population factors.
Other CARES Funds. Throughout 2020, the City received multiple rounds of one-time funds to respond to
the COVID-19 crisis. Due to the federal deadlines associated with spending this funding, the unique
program criteria and the urgency in which the City needed to administer these funds, the City Council has
acted to allocate a majority of these funds separately throughout the last year, as detailed in listed in
Attachment A. All ESG-CV funding recommendations were made in collaboration with the Bakersfield Kern
Regional Homeless Collaborative (BKRHC), homeless service providers, and in consideration of the needs
of the City’s own Brundage Lane Navigation Center (BLNC).
CDBG CV Funds (Existing “Bakersfield ReSTART” Program). As it relates to the CDBG funds, the City
previously received a “CDBG-CV” allocation in the amount of $2,272,347. On May 20, 2020, the City
Council approved amendments to several federal documents (the 2015-2020 Consolidated Plan, 19-20
Action Plan and Citizens Participation Plan) to allocate those funds to a business assistance program,
grants for micro-enterprises, technical assistance, and senior services and operations. Those programs are
currently ongoing to serve members of the community, and details are listed in Table 1, below.
CDBG CV-3 Funds (Proposed expansion of “Bakersfield ReSTART” Program). HUD is providing additional
funds totaling $2,532,071 to the City of Bakersfield. City staff recommend these funds be allocated
towards additional business assistance, senior services, expansion of CAPK food bank storage (do to the
increasing demand of emergency food distribution), and new coolers at the Homeless Intervention
Services Center. Details of the recommendations are included in Table 2, below.
Table 1. Bakersfield ReSTART Program
Micro-enterprise Expansion Grants
1. Launches February 24, 2021 with a one-week application period.
2. Provider: Access Plus Capital
3. For profit business physically located and operating in the City of Bakersfield.
4. Demonstrated economic need and negatively impacted by COVID-19; business operation
expansions to respond to COVID-19.
5. Grant funds for micro-enterprises where owner qualifies as a low/moderate income (LMI)
household or if the grant funds are used to retain/create LMI jobs.
6. Business must have five full-time equivalent employees or less; Self-employed business owners are
eligible for up to $3,500.
7. Business applicant will NOT be eligible to apply, if business has been approved or has received other
disaster relief funding.
8. Business applicant must demonstrate and certify that it has been operating for at least one full year.
Small Business Forgivable Loans
1. Launches March 15, 2021 with a two-week application period
2. Provider: Access Plus Capital
3. For every $85,000 spent, one job must be retained or created. 51% must be LMI jobs.
4. For-profit Business physically located in the City of Bakersfield.
5. A current and valid City of Bakersfield Business License.
6. Demonstrate that business has been operating for a minimum of one year.
7. Annual revenues should not exceed $2,000,000 and must have 25 or fewer employees.
8. Must have been negatively impacted by the COVID-19 pandemic.
9. Applicant will make small, good-faith repayments over the first year of the loan that will include
interest. If the applicant meets repayment and other requirements, and programmatic guidelines,
the loan will convert to a grant.
10. Grant/Loan amounts range from $5,000 to $50,000.
11. Interest only payments for the first twelve months at an interest rate of 3%, fixed rate.
12. Loan proceeds can be used for working capital and may go toward business expenses, such as:
Payroll costs, including costs for employee vacation, parental, family, medical, and sick leave,
employee related insurance, rent, inventory, supplies/materials, utilities, professional services, and
more.
Small Business Technical Assistance
1. Launched January 21, 2021 with ongoing services.
2. Provider: Mission Community Services Corporation (MCSC) Kern Women’s Business Center (KWBC)
3. Resources: Small Business or Micro-enterprise training courses, mentorship, technical assistance,
disaster preparedness/recovery, loan/grant readiness technical assistance, invaluable business
consulting, and current business topic educational workshops.
4. Technical assistance during the loan/grant process, to help clients obtain the much needed funding
to continue to operate their business. After the loan/grant has been awarded, MCSC will work with
the lender and client to ensure adherence to the loan/grant guidelines the lender provides.
CDBG CV-3 Funds – Staff Recommendations. Staff recommend using the additional CDBC- CV3 funds to
expand the Bakersfield ReSTART Program to address impacts from COVID-19 on businesses and sensitive
communities. The projects listed in Table 2 limit the amount of City administration dollars and maximize
funds going directly to communities and service providers implementing the programs.
In compliance with 24 CFR Part 91.505, the City is required to publicly notice an amendment when a HUD
funded project is created, canceled, a substantial change in funding is proposed, or an existing project has
substantially changed in purpose or scope. The following is a list of amendments associated with accepting
and programming the CARES Act funds.
Table 2. CDBG CV-3 Budget (Recommended)
Activity/Project Budget
Admin $47,071
Small Business Assistance Program (Expand Forgivable Loans program and target %
MBE/WBE, Artists, Patio)
$650,000
Micro-enterprise Expansion and COVID-19 Response Grants (Expand Micro-enterprise
Grant program and target % MBE/WBE, Artists)
$500,000
Small Business Technical Assistance (target MBE/WBE) $50,000
Bakersfield Senior Center Covid-19 Impacted Operations $60,000
CAPK Food Bank Expansion $1,200,000
Purchase Cooling Units for Mission at Kern County Homeless Intervention Services
Center
$25,000
$2,532,071
In May 2020, the City amended the 2015-2020 Consolidated Plan to include language amending the
Citizen Participation Process. The amendment allows for alternate regulations during an emergency crisis
declaration. It included a revised citizen participation process which will reduce the 30-day comment
period to no less than five (5) days. A limited application process, or informal selection process, will be
used to select sub-recipients to carry out specific activities that address community needs related to the
emergency. Staff proposes the use of all HUD issued waivers that help speed implementation and recovery
efforts to address the unprecedented impacts from the COVID-19 pandemic.
Date Action Plan Amendment Timeline
February 23, 2021 Budget and Finance Committee Meeting
March 12, 2021 Draft Action Plan Amendment Notice Begins
March 17, 2021 City Council Public Hearing on Draft Action Plan Amendment
March 19, 2021 Submit Amended AP to HUD
Recommendation. Staff recommends funding the activities outlined in Table 2 be incorporated into the
proposed amendment to the 19-20 Action Plan.
Attachment A – HUD Cares Act funds
Date Agreement Entitlement Admin Sub-Recipients Summary Amount
CDBG CV (Round 1)
5/20/2020 $2,272,347 $ 0
$2,272,347
2021-015 Small Business Assistance
Loans
Loans to help businesses that have been
negatively impacted by COVID-19
$2,090,000
2021-014 Start Up Grants Grants for micro-enterprises $70,000
1/20/2021 2021-013 Mission Comm. Services Corp.
Sm. Business Mentorship
Technical assistance & workshops to help
businesses navigate the impacts of COVID-19
$87,347
10/10/2020 2020-087 Bakersfield Senior Center
Operations
Provide services to low income seniors, including
food storage and distribution.
$25,000
ESG CV (Round 1)
6/24/2020 2020-100 $1,125,407 $(10,000) Bethany BHC Provide homelessness prevention assistance -
including housing relocation/stabilization and
short to medium term rental assistance to
mitigate COVID-19 impacts.
$1,115,407
HOPWA CV (Round 1)
6/24/2020 2020-102 $91,916 $(2,757.48) County of Kern Public Health
Department
Prevent homelessness and improve access to
treatment among persons living with HIV/AIDS.
$89,158.52
ESG CV (Round 2)
9/23/2020 $3,465,304 $(345,000) $3,120,304
1/20/2021 2021-016 Flood Ministries Homeless
Outreach Services
Respond to increased needs due to COVID-19,
including street outreach, supportive services,
and other assistance.
$253,532
1/20/2021 2021-017 CAPK Coordinated Entry
System
Respond to increased needs due to COVID-19,
including data entry for coordinated assessment.
$120,000
1/20/2021 2021-018 KCSOS Youth Rental
Assistance
Rapid rehousing services to respond to increased
homelessness needs due to COVID-19.
$58,400
1/20/2021 2021-019 Bakersfield Homeless Center Rapid rehousing services to respond to increased
homelessness needs due to COVID-19.
$1,500,304
1/20/2021 2021-020 Mercy House Coved Related
Operations BLNC
COVID-19 related upgrades at BLNC. $761,214
12/20/2020 DS 20-048 Mercy House Coved Related
Operations PPE BLNC
Provide staff PPE items and COVID-19 upgrades
at BLNC to create a quarantine area to minimize
spread of the disease.
$31,451
Date Agreement Entitlement Admin Sub-Recipients Summary Amount
CDBG CV 3 (Round 3)
3/17/2021 $2,532,071 $(47,071) $2,485,000
TBD Expand Business Forgivable
Loans (% MBE/WBE, Artists,
Patio)
Short-term working capital assistance such as
rent, payroll, utilities, services & supplies.
($5,000-$50,000)
$650,000
TBD Business Expansion Grants (%
MBE/WBE, Artists)
Micro-Business Start-Up or Business Expansion
Grants addressing COVID-19 pandemic (Up to
$5,000)
$500,000
TBD Small Business Technical
Assistance
Mentorship, Technical Assistance and initial
loan/grant underwriting
$50,000
TBD Bakersfield Senior Center
Covid-19 Impacted Operations
Improving public services and facility, prevention,
preparedness and response to current Covid-19
issues among seniors.
$60,000
TBD CAPK Food Bank Expansion Increase warehouse by 40,000 sq. ft. adding
capacity to expand services to better serve
community needs and significant increase in food
assistance due to impact of Covid-19.
$1,200,000
TBD Mission Cooling Units Replace evaporative coolers in Homeless
Intervention Services Buildings, a designated
cooling station for the homeless population.
$25,000
Documents
Presented At The
Budget and Finance
Committee
February 23, 2021 Meeting
2/23/2021
1
2021-22 HUD BUDGET
& ACTION PLAN
Budget and Finance Committee – February 23, 2021
ANTICIPATED RESOURCES
2021-22 Action Plan
CDBG:
$3,870,192
TOTAL
HOME:
TOTAL
HOPWA:
HOME
Admin:
$772,438
(Section 108
$375,200)
Projects:
$2,722,554
HOME:
$3,416,991
(includes prior years
uncommitted funds)
Admin:
$152,727
Projects:
$3,264,264
HOPWA:
$631,602
Admin:
$18,948
Projects:
$612,654
ESG:
$326,368
Admin:
$24,478
Projects:
$301,890
2/23/2021
2
2020-2025 CONSOLIDATED
PLAN GOALS
•Increase and preserve affordable housing for low-
and-moderate income households
•Prevent and reduce homelessness.
•Improve public infrastructure and facilities to
promote safe and vibrant communities.
•Foster community and economic development.
•Enhance facilities and services for the non-homeless
special needs population.
2021-22 ACTION PLAN
Recommended CDBG Budget
2,032,554
400,000
240,000
50,000
Curb, Gutter, Sidewalk,
ADA
Park Improvements
Public Services &
Community Infrastructure
Home ADA Improvements
2/23/2021
3
CURB, GUTTER, SIDEWALK
& ADA IMPROVEMENTS
•Union & Brundage: $502,514 (W1)
•Madison Area: $382,510 (W1)
•Oleander Area: $382,510 (W2)
•Union & E. Truxtun Area: $382,510 (W2)
•Benton Area: $382,510 (W7)
UNION & BRUNDAGE-V St - Brundage to 4th St; 4th St, 3rd St to
V St to Union; 2nd & 1st St to V St to Union
2/23/2021
4
MADISON AREA -Madison Street to Cottonwood Road
between Casa Loma and Brook Street
OLEANDER AREA -H St to A St
California Ave to Palm St
2/23/2021
5
UNION & E. TRUXTUN -E Truxtun to E California
Union Ave to Baker St
BENTON AREA -Ming Ave to Planz Rd
S H St to Hughes Ln
2/23/2021
6
PARK IMPROVEMENTS
Pool shade structure
improvements
$150,000
McMurtrey Aquatic Center
PARK IMPROVEMENTS
ADA improvements
and basketball court
light rehabilitation
$250,000
Jefferson Park
2/23/2021
7
HOME ADA IMPROVEMENTS
•City-Run Program
•Low-income
•$3,500 Grants
•Goal: 15 Households
•$50,000
PUBLIC SERVICES
•Bakersfield Senior Center
Support Services - $90,000
•GBLA Fair Housing: $100,000
2/23/2021
8
COMMUNITY INFRASTRUCTURE
PROJECTS
•Mercy House BLNC Art and Murals -
$25,000
•MLK Community Initiative Community
Garden
o (Land lease of city CDBG lot only)
•Bakersfield Senior Center
o Building Demolition - $25,000
2021-22 ACTION PLAN
Recommended HOME Budget
229,091
2,785,173
250,000
CHDO Set-Aside
New Construction
Down Payment
Assistance
2/23/2021
9
HOME PROJECTS
1. Pacific Southwest Community Development
Corp/Chelsea - $1,000,000
o 72-unit new construction
o NE corner of Stine and Berkshire
o PSVS FY21-22 funding request
$1,500,000
2. Cesar Chavez Foundation/HACK - $1,650,000
o 84-unit new construction, mixed-use
o 1001 Baker St
o PSVS FY20-21 funding $1,500,000
3. Ventura County Community Development
Corporation (VCCDC) Down Payment Assistance
Program - $250,000
2021-22 ACTION PLAN
Recommended ESG Budget
Rapid
Rehousing/Prevention
Homeless Outreach
Shelter Operations
171,500
24,000
106,390
2/23/2021
10
2021-22 ACTION PLAN
Recommended ESG Budget
•Flood Outreach - $24,000
•BHC Shelter - $70,000
•Mission Shelter - $70,000
•AAFVSA Shelter - $31,500
•BHC RRH & Prevention: $106,390
ANTICIPATED TIMELINE
2021-22 Action Plan
HOME
•Budget & Finance Committee Meeting February 23, 2021
•Draft Action Plan Complete February 26, 2021
•Action Plan Public Notice Period March 5-April 26, 2021
•Community Meetings March 16-18, 2021
•Public Hearing before City Council May 5, 2021
•Action Plan due to HUD May 15, 2021
2/23/2021
11
QUESTIONS?
Budget and Finance Committee – February 23, 2021
2019-20 ACTION PLAN AMENDMENT
HUD Cares Act Funds
To be used to prevent, prepare for, and respond to the impacts of COVID-19
Three rounds received to date:
•Round 1
•$2,272,347 CDBG
•$1,125,407 ESG
•$91,916 HOPWA
•Round 2
•$3,465,304 ESG
•Round 3
•$2,532,071 CDBG
2/23/2021
12
2019-20 ACTION PLAN AMENDMENT
Recommended CDBG-CV3 Budget
•Admin - $47,071
•Small Business Forgivable Loans - $650,000 ($2,090,000 in CV 1)
•Microenterprise Expansion Grants - $500,000 ($70,000 in CV 1)
•Small Business Technical Assistance - $50,000 ($87,347 in CV 1)
•Bakersfield Senior Center COVID-19 Impacts Operations - $60,000
•CAPK Food Bank Storage Expansion – $1,200,000
•Purchasing Cooling Units for Mission at Kern County Homeless Intervention
Services Center - $25,000
2019-20 ACTION PLAN AMENDMENT
Small Business Assistance
•With the City’s first round of CDBG CV funds the City amended its 19-20 Action
Plan to establish a business assistance program.
•A limited/informal application process was done.
•City Council approved agreements with Access Plus Capital:
o a Community Development Financial Institution founded in 2008
o provides capital to small businesses and startups with a focus on
underserved communities, particularly female, low income, and minority
entrepreneurs.
•Mission Community Services Corporation (MCSC) Kern Women’s Business
Center (KWBC) is providing technical assistance to Small Business and
Microenterprises.
2/23/2021
13
2019-20 ACTION PLAN AMENDMENT
Small Business Assistance – Bakersfield ReSTART Program
Microenterprise Expansion Grants
(add $650,000 in CDBG CV funding)
•Microenterprises where owner
qualifies as a low/moderate income
household or to retain/create low
income moderate jobs.
•Business must have 5 full time
equivalent employees or less;
Eligible up to $5,000 & self-
employed eligible for up to $3,500.
•Goes live Feb. 24th! Bakersfield Office Opening in 2017
2019-20 ACTION PLAN AMENDMENT
Small Business Assistance – Bakersfield ReSTART Program
Small Business Forgivable Loans (add $500,000 in CDBG CV funding)
•For every $85,000 spent one job must be retained or created. 51% must be LMI jobs.
•Annual revenues not exceeding $2,000,000 and must have 25 or fewer employees.
•Grant/Loan amounts range from $5,000 to $50,000.
•Goes live March 15th!
2/23/2021
14
2019-20 ACTION PLAN AMENDMENT
Small Business Assistance – Bakersfield ReSTART Program
Technical Assistance (add $50,000 in CDBG
CV funding)
•Technical assistance during the loan/grant
process, also training courses,
mentorship, disaster
preparedness/recovery, business
consulting, as well as educational
workshops.
•Program started January 21, 2021.
2019-20 ACTION PLAN AMENDMENT
Public Services – Senior Center
COVID-19 Impacts to Operations
•Can not hold fundraising events.
•Due to increase demand had to
hire 2 low-income staff members
to help prepare meals.
•More reliance on volunteers.
•Need more food storage to
prepare and maintain health
standards in food distribution.
2/23/2021
15
2019-20 ACTION PLAN AMENDMENT
Community Projects – Food Bank Expansion
COVID-19 Impacts to Operations
•Need to expand warehouse by
40,000 sq. ft.
•106% increase in 2-1-1 calls since
last year, top request is food
assistance.
•Increased need causing increase in
food volume.
•More than 33 million pounds of
food distributed in 2020, a 61%
increase from the year prior.
•Food assistance has become so
urgent due to COVID-19.
2019-20 ACTION PLAN AMENDMENT
Community Projects – Install Cooler Units
COVID-19 Impacts to Operations
•Purchase and Install Cooling Units
for Mission at Kern County
Homeless Intervention Services
Center.
•Assisting a sensitive community
impacted by COVID-19.
•Increased demands on services.
•Can not hold fundraising events.
•No alternatives for replacing the
coolers at this time.
2/23/2021
16
ANTICIPATED TIMELINE
2019-20 Action Plan Amendment
HOME
•Budget & Finance Committee Meeting February 23, 2021
•Action Plan Public Notice Period March 12 – 17, 2021
•Public Hearing before City Council March 17, 2021
•Action Plan Amendment submitted to
HUD
March 19, 2021
QUESTIONS?
Budget and Finance Committee – February 23, 2021