HomeMy WebLinkAboutAgenda Report - January 19, 2022 H-02AGENDA ITEM e,2
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Receive and File City's Annual Comprehensive Financial Report (Fiscal Year
2020/21) by The Pun Group
MEETING DATE: January 19, 2022
PREPARED BY: Accounting Manager
RECOMMENDED ACTION: Receive and file the following reports and financial statements
submitted by The Pun Group, LLP and the Internal Services
Department for Fiscal Year 2020/21:
BACKGROUND INFORMATION: The annual audit was conducted to assure the City Council and
other interested parties that the City's financial records and reports
are prepared in accordance with generally accepted accounting
principles (GAAP), that internal controls are adequate to safeguard
the City against loss from unauthorized use or disposition of assets and that the City has compiled with
all agreements and covenants to obtain grant funds and debt financing. The Pun Group, LLP issued an
"unqualified opinion." Vanessa Burke, Managing Partner of the Pun Group, LLP and Kenneth Pun,
Managing Partner of the Pun Group, LLP will be present over zoom to answer questions during the
Council meeting.
The reports will be provided to federal and State oversight agencies, bond trustees and insurance
companies for their review and evaluation. Copies of the reports are provided to the City Council and
also available to the public by contacting the Financial Services Division or the City's website at
www.lodi.gov and at the Lodi Public Library.
The City received a Certificate of Achievement for Excellence in Reporting from the Government Finance
Officers Association of United States and Canada (GFOA) for the 28th year. A copy of the GFOA
certificate is included in the 2020/21 financial reports.
FISCAL IMPACT: By law and good management practice, the City's financial records are
audited by independent auditors according to Generally Accepted Auditing
Standards. Well-maintained financial records are the cornerstone by which
the City fulfills its fiduciary responsibilities to the public.
FUNDING AVAILABLE: Not applicable.
Melissa Munoz, Accounting Manager
Andrew Keys, Deputy City Manager
Stephen Schwabauer, City Manager
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CITY OF
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ALIFORNIA
ALAN NAKANISHI, MAYOR, DISTRICT 1
MARK CHANDLER, MAYOR PRO TEMPORE, DISTRICT 2
DOUG KUEHNE, COUNCIL MEMBER, DISTRICT 3
SHAK KHAN, COUNCIL MEMBER, DISTRICT 4
MIKEY HOTHI, COUNCIL MEMBER, DISTRICT 5
STEVE SCHWABAUER, CITY MANAGER
Prepared by the Financial Services Division
Melissa Munoz, Accounting Manager
Robin Xiang, Supervising Accountant
Harron Akbar, Accountant
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TABLE OF CONTENTS
Page
INTRODUCTORY SECTION (UNAUDITED)
Tableof Contents......................................................................................................................................................i
Letterof Transmittal.................................................................................................................................................iii
Certificate of Achievement for Excellence in Financial Reporting.........................................................................xiv
Cityof Lodi Organization Chart ...............................................................................................................................xv
Mayorand Council...................................................................................................................................................xvi
Advisory Bodies and Directory of Officials.............................................................................................................xvii
FINANCIAL SECTION
IndependentAuditor's Report .................................................................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED).......................................................5
BASIC FINANCIAL STATEMENTS............................................................................................................15
Government -Wide Financial Statements............................................................................................................17
Statementof Net Position..............................................................................................................................19
Statementof Activities..................................................................................................................................20
FundFinancial Statements.................................................................................................................................23
Balance Sheet — Governmental Funds...........................................................................................................27
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position....................28
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds ...................29
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities......................................................................................30
Statement of Net Position — Proprietary Funds..............................................................................................31
Statement of Revenues, Expenditures, and Changes in Net Position — Proprietary Funds ............................33
Statement of Cash Flows — Proprietary Funds...............................................................................................35
Statement of Fiduciary Net Position — Private — Purpose Trust Funds..........................................................39
Statement of Changes in Fiduciary Net Position..........................................................................................40
Notes to Basic Financial Statements..................................................................................................................41
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED).......................................................85
Schedule of Changes in Net Pension Liability and Related Ratios — Miscellaneous Plan .............................87
Schedule of Changes in Net Pension Liability and Related Ratios — Safety Plan.........................................89
Scheduleof Pension Contributions................................................................................................................91
Schedule of Changes in Net OPEB Liability and Related Ratios..................................................................93
Schedule of Employer OPEB Contributions..................................................................................................94
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual —
GeneralFund.................................................................................................................................................95
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual —
StreetsFund...................................................................................................................................................96
Note to the Required Supplementary Information.........................................................................................97
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES.....................................99
Nonmajor Governmental Funds.....................................................................................................................101
Combining Balance Sheet — Nonmajor Governmental Funds.......................................................................103
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
GovernmentalFunds......................................................................................................................................104
Nonmajor Governmental Funds — Special Revenue Funds...........................................................................105
Combining Balance Sheet — Nonmajor Governmental Funds — Special Revenue Funds ..............................106
TABLE OF CONTENTS
Page
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor
GovernmentalFunds......................................................................................................................................108
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Nonmajor
Governmental Funds — Special Revenue Funds:
Parks, Recreation, and Community Services Fund..................................................................................110
PublicSafety Fund...................................................................................................................................111
Community Development Fund...............................................................................................................112
TransportationFund.................................................................................................................................113
SpecialAssignments...............................................................................................................................114
HOME Program and Community Development Block Grants Fund.......................................................115
Nonmajor Governmental Funds — Capital Project Fund..........................................................................117
Combining Balance Sheet — Nonmajor Governmental Funds — Capital Projects ....................................119
Combining Satement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
Governmental Funds — Capital Projects..................................................................................................121
InternalService Funds.............................................................................................................................123
Combining Statement of Net Position — Internal Service Funds.............................................................125
Combining Statement of Revenues, Expenditures, and Changes in Net Position — Internal Service
Funds.......................................................................................................................................................126
Combining Statement of Cash Flows — Internal Service Funds...............................................................127
FiduciaryFunds.......................................................................................................................................129
Combining Statement of Fiduciary Net Position — Private — Purpose Trust Funds .................................131
Combining Statement of Changes in Fiduciary Net Position — Private — Purpose Trust Funds ..............132
STATISTICAL SECTION (UNAUDITED)
Government -Wide Information:
Net Position by Component — Last Ten Fiscal Years..........................................................................136
Changes in Net Position — Last Ten Fiscal Years................................................................................138
Fund Information:
Fund Balances, Governmental Funds — Last Ten Fiscal Years ...........................................................142
Changes in Fund Balances of Governmental Funds — Last Ten Fiscal Years .....................................144
Tax Revenues by Source, Governmental Funds — Last Ten Fiscal Years ..............................................146
Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years..................148
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ....................................................150
Principal property Taxpayers — Current Year and Nine Years AGo ......................................................151
Property Tax Levies and Collections — Last Ten Fiscal Years...............................................................152
Electricity Sold by Type of Customer — Last Ten Fiscal Years..............................................................153
Ratios of Outstanding Debt by Type......................................................................................................154
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years...................................................155
Legal Debt Margin Information — Last Ten Fiscal Years.......................................................................156
Direct and Overlapping Governmental Activities Debt..........................................................................158
Pledged -Revenue Coverage — Last Ten Fiscal Years.............................................................................159
Demographic and Economic Statistics — Last Ten Fiscal Years.............................................................160
Principal Employers — Current Year and Nine Years Ago.....................................................................161
Full -Time Equivalent City Government Employees by Department — Last Ten Fiscal Years ...............162
Operating Indicators by Function/Program/Department — Last Ten Fiscal Years ..................................163
Capital Asset Statistics by Function/Program/Department — Last Ten Fiscal Years ..............................165
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CITY COUNCIL
ALAN NAKANISHI, Mayor
MARK CHANDLER,
Mayor Pro Tempore
MIKEY HOTHI
SHAK KHAN
DOUG KUEHNE
December 31, 2021
CITY OF L OD I
2015 "Wine Region of the Year"
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov cityclerk cblodi.gov
Honorable Mayor, Members of the City Council:
STEPHEN SCHWABAUER
City Manager
JENNIFER CUSMIR
City Clerk
JANICE D. MAGDICH
City Attorney
I am pleased to present the City's Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ended June 30, 2021.
State law requires that every general purpose local government publish, within six months of the close of each fiscal year, a
complete set of audited financial statements. This report fulfills that requirement for the fiscal year (FY) ended June 30, 2021.
Management assumes full responsibility for the completeness and reliability of the information contained in this report,
based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of
internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements.
The data in this report is presented in a manner that is designed to fairly set forth the financial position and results of
operations of the City of Lodi (the City). It contains the disclosure necessary to promote in-depth understanding of the City's
financial affairs and evaluate its financial condition.
The City's financial statements have been audited by The Pun Group, LLP located in Walnut Creek, California. The
independent auditors concluded, based on their audit, that there was a reasonable basis for rendering an unmodified (or
"clean") opinion that the City of Lodi financial statements for the fiscal year (FY) ended June 30, 2021 are fairly presented in
conformity with generally accepted accounting principles. The independent auditor's report is the first item presented in the
financial section of this report.
In addition to the financial audit, each year the City is required to undergo an audit of federal grant expenditures. That report
is commonly referred to as a Single Audit report and is issued as a separate document and is not included herein. The Single
Audit report includes the Schedule of Expenditures of Federal Awards, Findings and Recommendations, and an auditor's
report on the internal control structure and compliance with applicable laws and regulations.
The provisions of Governmental Accounting Standards Board (GASB) State 34, "Basic Financial Statements -and Management's
Discussion & Analysis" (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with the MD&A, which can be found immediately following the report of the independent auditors in the
financial section of the ACFR.
Profile of the City of Lodi
The City of Lodi, was incorporated December 6, 1906, as a municipal corporation under the general laws of the State of
California. The City of Lodi is located on the northern boundary of San Joaquin County. The City of Lodi is a General Law City
and has the power to make and enforce ordinances and regulations with respect to municipal affairs to the extent expressly
permitted or implied by the California constitution or specific legislation. The City government is organized under the
Council -Manager form of government. The five -member City Council is elected by district by its voters for overlapping four-
year terms, with no term limits. Each year the Mayor and Mayor Pro -Tempore are chosen by the members of the City
Council. The Mayor presides at Council meetings and acts as the ceremonial head of the City, the Mayor Pro Tempore serves
as Mayor in his or her absence. The City Manager is responsible for carrying out the policies and ordinances of the City
Council, for appointing department heads, and overseeing the operations of the City. The City Manager, City Attorney and the
City Clerk are appointed by the City Council.
The City Council is responsible for adopting the budget on or before June 30 each fiscal year. The level of budgetary control
(that is, the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the fund level. The
City Manager is responsible for the preparation of the budget and its implementation after adoption. The City Council has the
authority to amend the budget at any time during the year. The City Manager may transfer resources within a fund.
Supplemental appropriations and budget transfers between funds and projects, however, need approval from the City
Council. During fiscal year 2020-21, the City Council and City Manager made several supplemental appropriations for
operating budgets and capital projects.
The City, with 412 full time equivalent employees, provide a wide rant of services to a residential population 68,751. These
service include public protection (police and fire), public utilities services (electric, water, and wastewater), public works,
transit services, parks and recreation, library, community development, and general government (City Manager, City Clerk,
City Attorney, human resources, information systems, financial services, and budget and treasury).
The City is also financially accountable for the following legally separate reporting entity the Lodi Public Financing Authority
(LPFA), which are reported within the City's financial statements as a blended component unit. Additional information on this
legally separate entity can be found in the notes to the financial statements (see Note 1A).
Local Economy
The information presented in the financial statements is perhaps better understood when it is considered from the broader
perspective of the specific environment within which the City operates.
The City of Lodi is located in California's fertile San Joaquin Valley, adjacent to State Highway Route 99, between Stockton, 10
miles to the south, and Sacramento, 35 miles to the north. The City population is estimated at approximately 68,800 and is
contained in an area of 13.98 square miles. The City has grown steadily since incorporation in 1906. The City's growth is
provided for in both the General Plan and the City's Growth Management Allocation Ordinance that allows an increase in
population of 2% per year until the growth limits are reached.
The City is built on a strong and diverse local economy. Lodi is best known for its Zinfandel wines; however, Lodi is an
authentic and dynamic wine region with more than 80 wineries within 10 miles of downtown. The City's employment base is
just as diverse with industry that includes agribusiness, biotechnology, distribution, food and beverage product
manufacturing, general service, government, health care, heavy manufacturing, and of course, wine based tourism and
lodging.
In addition, the City has a wide range of small, financially sound businesses that add to the economic strength of the City.
These companies range in size from approximately 10 to 3,500 employees and produce a wide variety of products, services
and commodities.
The City is growing. Over the last few years it has seen significant new commercial, industrial and residential development
projects come to fruition. The past few years have seen an average 200 new single family homes constructed and sold. The
City has entitled and granted growth allocations for more than 2,000 residential lots, providing for consistent residential
growth over the next eight to ten years. The City's first market rate apartment complex in over 25 years has completed
construction and is fully rented. A 150 unit senior apartment complex has completed construction and is now open for
occupancy. The City has also seen significant investment in expanding existing commercial developments. All this activity is a
positive indicator for the City moving forward. The City's focus on economic development, compact development and quality
of life has encouraged these investments within the City, collectively creating hundreds of new employment and housing
opportunities.
Even in the face of the COVID-19 pandemic, the most difficult budget issue facing the City is the California Public Employees'
Retirement System (CaIPERS) funding crisis. The City is well aware of this challenge and is taking aggressive steps to address
this concern. The City approved a Pension Stabilization Funding Policy in 2017 that requires unassigned reserves in excess of
the General Fund target be invested at Public Agency Retirement System (PARS) in an IRS Section 115 irrevocable trust known
as a Pension Rate Stabilization Program (PRSP). The City has amassed over $20 million in this fund to offset future pension
costs. Non General Funds must contribute their proportional share to the trust as well. Due to the COVID-19 pandemic, the
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City Council suspended this policy for fiscal year 2020-21, but it was reinstated with the adoption of the fiscal year 2021-22
budget. Lodi's General Fund revenues performed exceptionally well during the pandemic, resulting in significantly better
than expected fiscal year 2020-21 results. Substantial additional contributions to the PRSP will be made at what is estimated
to be the highest annual level since the policy was adopted. More details can be found in the Economic Factors and Next
Year's Budget section of the Management's Discussion and Analysis in this report.
Measure L, the City's general purpose sales tax approved by voters in 2018, continues performance above expectations. In
large part because of Measure L, the City in February 2021 was able to restore all seven positions in the police department
frozen at fiscal year 2020-21 budget adoption. More details can be found in the Economic Factors and Next Year's Budget
section of the Management's Discussion and Analysis in this report.
Economic Development
The City of Lodi is a city of many cultures, skill levels and political and social orientations; yet its citizens are inspired by a
shared vision and the certainty that this city of the north Central Valley is special. Lodi, deep-rooted in California's wine
country, is giving rival Napa Valley a run for its money. Lodi has been a major wine grape growing region since the 1850s and
today, the area has 100,000 acres of wine grapes farmed by over 750 growers. Lodi is best known for its full-bodied Old Vine
Zinfandel wines. There are six major wineries in the area—Robert Mondavi Woodbridge, Michael David, Turner Road
Vintners, Sutter Home Winery, Bear Creek Winery and Oak Ridge Winery. More than 60 leading California wineries buy
grapes from our region including E&J Gallo, Constellation, Fetzer, Delicato, Napa Ridge, Ravenswood and Beringer. Even the
City's industrial sector makes way for wine. Northeast of downtown Lodi is the Lodi Wine and Business Center. This former
winery has been converted to industrial space, a warehouse, office and wine cooperage. This busy industrial setting offers
lined wine storage tanks and chiller capacity for millions of gallons of local wine.
In recent decades, Lodi's agricultural roots have evolved. Lodi has developed an emerging concentration of related
manufacturing businesses who depend on reliable and affordable electric power, ample water, efficient transportation,
affordable real estate, and access to markets to control costs and prosper.
In addition to the robust viticulture, Lodi's economic drivers include manufacturers of rapid molecular diagnostic systems,
consumable plastics for use in research laboratories, the world's largest manufacturer of foam cups and disposable
containers, and food manufacturing. Over the next five years, the compound annual growth rates of these industries is
estimated to be 4.8 percent, 6.2 percent, and 11.2 percent, respectively.
A little over a year and a half ago, big cities were in, bustling with a prosperity they hadn't seen in many years. Then came the
lockdown attributable to COVID and many downtowns, including Lodi's, found themselves struggling. While it's true that
office -based, university and hospitality -centric cities were hit hard by the stay at home mandate, the City of Lodi showed
signs of resilience. Although restaurants and bars did close to indoor use, the City assisted as many establishments as it
could, by participating in the successful Great Plates program, a meals delivery program for senior citizens, which also served
as a restaurant stimulus program. Wherever possible, restaurants were permitted to set up outdoor dining by occupying
wider swaths of the public right of way onto streets and sidewalks. In addition to a buoyant restaurant industry, the local
economy fared better because of its variegated industry sectors. To help stimulate the local economy, the City offered small
business grants to businesses faced with closing their doors, and provided over $3 million in financial assistance to help pay
utility bills across customer classes.
It is expected the pandemic will significantly change how Americans live and work. According to the real estate site Zillow,
Americans are seeking out less expensive regions and more square feet of living space.
In June 2021, Lodi home prices were up 15.3 percent compared to last year, selling for a median price of $481,000. According
to Redfin, another full-service real estate brokerage firm, on average, homes in Lodi sold after about 7 days on the market
compared to 30 days last year. Many homes get multiple offers and 73.6 percent of homes sold above the list price in 2021
compared to a year ago.
Lodi is a large submarket relative to the national average and contains about 12.2 million square feet of industrial space. The
overwhelming majority of inventory remains full and the net absorption over the past year is substantially above the five year
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average. Industrial rents are slightly above the metro average, and the 12 -month rent growth is 5.5 percent. The vacancy
rate is currently about 2.4 percent. Multi -family, retail, and office rents all experienced greater than average rent growth and
slightly below average vacancy rates over the last 12 months.
In March 2021, Lodi published its first development prospectus which serves as a "prequalification statement" for a city to
attract capital and drive smart investments. The prospectus presents a granular assessment of our competitive position
which merits the additional application of new capital either from existing investors or external investors. The development
prospectus provides authentic evidence of the deployment of private capital which is happening now in Lodi. In addition to
labor and demographic statistics, the development prospectus gives our market strengths, our challenges, a view of Lodi's
catalytic private investments, and recommendations for growth in the near term.
Labor and Demoeraohic Statistics
After population growth, wage growth is an important private sector location factor. It determines what kinds of jobs are
being created and at what point workers begin to reap the benefits of economic growth. The Economic Policy Institute's
growth target for wages is 3.5 to 4 percent year over year. Lodi's wage growth is approximately 2.2 percent per year which
indicates growth below the target. Next to wage growth, job growth ranks high as a locational factor. According to the
Bureau of Labor Statistics, Lodi's job growth is also about two percent per year which is a growth rate a little higher than
average.
In 2020, Lodi's local economy employed just over 33 thousand people. Since 2016, the employment rate grew at a rate of
about 2.05 percent per year. The 2020 Occupational Employment and Wage Statistics, U.S. Bureau of Labor Statistics reports
the most common employment sectors for those who live in Lodi were Education, Health Care & Social Assistance (8,325
people), and Finance, Insurance, Real Estate, Rental, and Leasing (6,656 people). Other common employment sectors were
Retail (4,408), Manufacturing (3,498), Arts, Entertainment, Recreation, Accommodation and Food Services (2,489) and
Professional, Scientific, Management (1,519). In raw numbers, the biggest increases since 2016 have been in 1) finance,
insurance and real estate, 2) wholesale trade, 3) education, health care, and social assistance, and 4) manufacturing. The
biggest declines have been in agriculture, construction, transportation and warehousing.
The highest paid employment sectors are Management Occupations, Legal Occupations, and Healthcare Practitioners with
2020 mean annual earnings of $116,000, $109,060, and $103,000, respectively. The lowest paid employment sectors reported
are Farming, Food Preparing and Service -related occupations, and Healthcare Support with mean annual earnings of $31,360,
$32,230, and $33,350, respectively. Mean annual wages for Production -related occupations were $42,250 and $40,470 for
Transportation/Material Moving.
From 2019 to 2020, the median household income in Lodi was $59,151. In June 2021, Lodi home prices were up 15.2 percent,
compared to last year, and the median price of a home is $481,000. The homeownership rate remains unchanged from June
2020 to June 2021 at 57 percent. Of Lodi's population 25 years and older in 2020, 34.24 percent held Associate's degrees or
higher, and 19.2 percent held Bachelor's degrees or higher.
Lodi by the Numbers
Economic and business indicators which provide data at the city level are not abundant. Most data from traditional data
sources like the U.S Census Bureau and U.S Department of Labor assemble and publish data at the MSA and county level.
However, the Lodi Development Prospectus provides valuable business data from a variety of sources which authenticates
Lodi as a sustainable business location. For example, the U.S. Patent Office reports that from 2017-2020, an average of 17.6
patents were issued to entrepreneurs in Lodi. The Small Business Administration (SBA) reports that from 2017-2019, small
business loan activity was $34.7 million. Pitchbook, a venture capital, private equity and merger/acquisition database, reveals
that since 2018, $10.87 million in venture capital has been deployed in Lodi. The Opportunity Atlas, a collaboration between
researchers at the Census Bureau and Harvard University researching social mobility, reports the upward mobility rate in Lodi
is currently 19 percent. An upward mobility rate is a rate at which an individual moves to an increased socioeconomic status.
The City of Lodi reports that public infrastructure spending from 2015-2020 was $12 million from local sources, and building
permits were up 12 percent. Lodi's FY 2021-25 Capital Improvement Budget is $108.8 million. This represents an expenditure
of $1,601 per capita in public infrastructure spending, the highest among per capita spending among Sacramento, Modesto,
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Fresno, and Roseville.
In addition to economic data, site selectors determine car collision rates and crime statistics in a specific geographic area
before making a site selection. The reasons are obvious to business. The economic costs of car collisions and crime are lost
productivity, medical costs, legal and court costs, congestion, and workplace losses. Car collision rates in Lodi decreased 66
percent from 2015 to 2020. The crime index lowered from 330.6 to 236.1 during the same time period.
Market Strengths
In addition to steady job growth, other market strengths serving to attract investment to Lodi includes direct transportation
access to major state and interstate corridors, rail access, adjacency to cargo -centric Stockton Regional Airport and
Sacramento International Airport, and contiguousness to the Port of Stockton. These strengths provide for proximity to
markets and proximity to a highly functioning supply chain.
Lodi owns its own electric utility providing highly reliable power, and administers its own water and wastewater utility
delivering high quality and an abundant supply of potable water to Lodi's service territory. Governed locally, these utilities
strive to keep costs low to increase business profits.
Challenges
The primary business location factor today is workforce. While population growth has been consistent, a concern to new and
existing businesses is the talent pipeline. The growth of the 15 to 22 age group has been flat since 2010. Conversely, the
group retiring soon (ages 60 and over) has been slowly but steadily increasing.
Educational attainment, the share of the population with an associates or bachelor's degree, is below the statewide average.
However, from 2010 to present, there has been a slow but steady increase in the share of population with a college degree.
About 17 percent of Lodi's population live below the poverty level. The statewide average is about 15 percent.
Lodi and San Joaquin County are addressing industry skills needs through collaborative efforts among Lodi Unified School
District, San Joaquin County WorkNet, University of the Pacific (UOP), San Joaquin Delta Community College, and San Joaquin
Building Trades Council.
Catalytic Investments
More than $502.4 million in private investment will be invested within the city limits between 2014 and 2024. Supporting this
private investment, is an $87.5 million public investment in public infrastructure during the same timeframe. In Lodi's
industrial sector East of SR -99, Cepheid, a rapidly -growing manufacturer of molecular diagnostic systems, is adding at least
175,000 sf of new production space and will add over 2,500 new jobs in Lodi by 2024. The investment capital added is $250
million.
Recent construction activity in downtown across from the new restaurant, retail and office sector is estimated to be $8.6
million since 2018.
In the Northeast, the City has been anxiously awaiting the progression of The Lakehouse, a high value mixed-use of
hospitality, retail and residential valued at $65 million. Currently in the environmental review stage, the groundbreaking is
expected to be in 2022.
In the near east, the iconic Sunset Theater is undergoing renovation. Set to drastically change the landscape of Lodi Avenue,
the new Sunset on Ave will bring thousands back to Lodi to recapture a bit of the past while enjoying present-day
entertainment and retail. The Sunset on Ave will add nearly 21,000 sf of entertainment venue at an estimated cost of $5
million.
On the City's South side, a new Marriott Residence Inn is in the planning and development stage. The completion of this
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hotel will cost $13.4 million
In early 2021, a 150 unit market -rate apartment complex was completed at a cost of $28 million. Adjacent to Reynolds
Ranch, the newest of Lodi's mixed-use developments, LaVida Apartments of Lodi offers contemporary living and resort -style
amenities to active seniors. Contiguous to LaVida, is Oakmont Assisted Living, an 80 unit facility valued at $10 million.
By year-end 2021, a new luxury non -age restricted multi -family rental development will commence construction on the City's
Southwest side. Targeted for completion in 2023, this development will add $30 million in value.
While new market rate multi -family units are relatively new to the residential market in Lodi, its single family development in
2021 is unprecedented. In 2021, construction will start on over 1,400 market -rate single family homes valued at $65 million.
The estimated completion date for these additions is 2024.
Recommendations to Sustain Business and Stimulate Growth
Based upon the Lodi Development Prospectus, a number of recommendations have been made to sustain business and
stimulate greater growth. First, rebuild and expand fiber connectivity for speed, cloud access, reliability, signal strength and
security. Second, increase Lodi's size by strategic annexation adjacent to major transportation corridors. Third, explore
economic development incentives which build on existing incentives. Fourth, connect local business with greater export
resources. Fifth, develop a small business center satellite in partnership with the existing San Joaquin County SBDC. Sixth,
expand on the current Brownfield Program to include market studies, cleanup and demolition. And last, but not least, invest
in the availability of economic, labor, demographic, and industry data sources to provide interested investors and site
selectors in Lodi as a location to deploy investment capital.
MAJOR GOALS, OBJECTIVES AND PROJECTS
To assist the citizens of the City in understanding where the City intends to allocate available resources, the City Council, the
City Manager and Department Heads established in 2004 a hierarchy of major aspirational goals, objectives and major
projects that support and reinforce the City's mission statement. Council then set project specific goals at a series of
workshops in 2016.
1.) Aspirational Goals
Four major City goals were established as policy direction and focal points for the efforts of City staff.
These goals include:
• Ensure a High Quality of Life and a Safe Environment for Citizens,
• Ensure Efficient and Productive City Organization,
• Ensure Public Trust, and
• Ensure the Development of the Lodi Economy for a Fiscally Sound City Organization.
City Council, the City Manager and Department Heads established nineteen major City objectives:
• Maintain City's Sense of Community
• Provide Employee Training and Education
• Provide for a Balanced Community
• Evaluate Telecommunications Opportunities
• Enhance Access through Implementation of IT
Strategic Plan
• Provide Resources to Maintain City's
Infrastructure
• Promote Urban Forestry
• Promote Public Relations and Marketing
Efforts
• Attract, Retain and Invest in a Quality City
Work Force
• Ensure Open and Accessible Public Meetings
2.) Project Specific Goals
• Encourage Public Arts, Cultural and
Recreational Opportunities
• Pursue Efforts to be Entrepreneurial
• Provide Appropriate and Sufficient City
Facilities
• Improve Customer Service
• Develop Short and Long Range Operational
Plans
• Continue to use Partnerships to Advance City's
Objectives
• Develop Effective Records Management
Program
• Provide a Balanced Budget and Adhere to
Adopted Policies
• Promote Commercial/Industrial Base
These projects are designed to accomplish specific objectives and become the focus for organization -wide effort. Council set
the following priorities and categories in 2016:
• Economic development for "shovel ready" land
• Economic development and incentive program to focus on underutilized parcels
• Public Safety, Gang Reduction Intervention Program, training and increase in staffing
• Fiscal sustainability, asset preservation, CALPERS and Other Postemployment Benefits
• East side rehabilitation, incentive programs and infrastructure
Additional priorities that did not fit into the above categories include 1) addressing homelessness issues, 2) providing
downtown Wi-Fi and music, and 3) beautification of highway overpasses.
As discussed above, economic revitalization continued to be an active focal point of the City in fiscal year 2020-21. The
following projects were recently completed, are underway and will see significant progress, or be completed in 2021.
Residential Development
In fiscal year 2020-21, the City has accepted the following residential developments: Villa Fiore Unit 2 and Unit 3, Rose Gate II
Unit 1, Vineyard Terrace Unit 2, Iris Drive, and Interlaken subdivisions. The City also accepted the Rose Gate off-site Storm
Water and Wastewater improvements. The La Vida Senior Apartments and Oakmont Assisted Living Facility projects have
been completed as part of the Reynolds Ranch Development. In fiscal year 2020-21 the City finalized a total of 245 dwelling
units. Sales and construction in various development projects are ongoing. The City is considering the annexation of
additional land to support continued growth.
Downtown and Infill Development
COVID-19 has had a huge impact to the City's various businesses. The City has helped restaurants by allowing outdoor dining
in areas of on -street parking and by participating the in the Great Plates Delivered program that provides freshly prepared,
healthy meals to vulnerable populations (over age 60 with high risk factors, or anyone over age 65) to local residents
prepared by local restaurants.
The City has seen the interest in our downtown establishments, but due to COVID-19 impacts, the growth has been slow.
ix
There are new restaurants that are still under construction in downtown, including the Oxford and the very soon to be
completed expansion of the Lodi Beer Company.
In fiscal year 2021, Papapavlos Bistro & Bar officially opened. Still under construction, across Lockeford Street is the new Lodi
Bowling Alley. This project consists of a two-story bowling alley that will be equipped with 34 lanes, bar and banquet room.
Both projects have put vacant land to use, generating foot traffic on the edges of downtown.
Water Meters and Water Infrastructure
Under state law, all residential housing must be billed for water usage on a metered basis by 2025. In 2010, the City
embarked on a program to install meters on approximately 16,000 parcels over an eleven year period. A portion of this
project also included relocating water mains and service connections from alleys and rear yards to streets and sizing the new
water mains to improve fire flow. Construction began during fiscal year 2009-10 and will continue through fiscal year 2022-
23. To date, all single family dwelling water meters (approximately 16,000) have been installed. Estimated cost for the
complete program is $42.5 million. The final phase of construction will begin in fiscal year 2022-23.
The City has a water well rehabilitation program and Well 3R rehabilitation ($174,700) was completed this fiscal year. For the
Dibromo-chloropropane (DBCP), 123 Trichlorophenylmethyliodosalicyl (TCP) cleanup effort, the granular activated carbon
(GAC) at Well 16 ($134,700) was changed out. New GAC vessels at Well 27 ($1,064,000) were constructed and operational.
Wastewater Projects
The City has completed the Wastewater Rehabilitation Phase 8 project at a total construction cost of $2.24 million. The
Wastewater Rehabilitation Phase 9 is under design and expected to be completed by the end of 2022. The White Slough
Water Pollution Control Facility (WSWPCF) irrigation project ($946,000) was completed and accepted. Additional projects
planned for fiscal year 2021-22 and FY 2022-23 include the WSWPCF aeration and solids handling system improvements. The
design of a WSWPCF electrical room relocation is complete and is scheduled to start construction in the summer of 2022.
In compliance with the State Storm Water Trash policies, the City has started the multi -phase storm water trash collection
program. The first phase of the program is completed at the cost of $224,000. The second phase is expected to be
completed by June of 2022.
FINANCIAL INFORMATION, MANAGEMENT AND CONTROL
A detailed understanding of the financial position and change in financial position of the City is provided in the following
sections of this report. The following is a brief description of the City's financial condition, management practices and control
techniques.
Basis of Accounting
Basis of accounting refers to the policy as to when revenues, expenditures or expenses are recognized in the financial
accounts and reported in the financial statements. The City's accounting records for general government operations are
maintained on a modified accrual basis. Revenues are recorded when available and measurable. Expenditures are recorded
when the services or goods are received and the liability incurred. For proprietary fund types, the City uses the accrual basis
of accounting. As such, the measurement focus is on operating income in addition to financial position and changes in
financial position. Revenues are recognized when earned and expenses are recognized as the liability is incurred. We believe
that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Accounting System and Budgetary Control
In developing the City's accounting system, consideration is given to the adequacy of the internal controls. The objective of
the City's internal accounting controls is to provide reasonable, but not absolute, assurance that the assets are safeguarded
against loss from unauthorized use or disposition; and to ensure that transactions are properly recorded to permit the
x
preparation of financial statements in accordance with Generally Accepted Accounting Principles. The concept of reasonable
assurance recognizes that the cost of the controls should not exceed the benefits likely to be derived and that management
estimates and judgments are required in evaluating these costs and benefits.
In addition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal
provisions embodied in the annual appropriated budget approved by the City Council. The City Manager has the authority to
make adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-
end fund balances.
Long Term Financial Planning
The City has implemented a long-term financial planning practice to review the impact of current decisions on the City's
General Fund. This analysis can be found in the City's budget document and includes assumptions, revenue, expenditures,
and fund balance projections. In addition, there is discussion of risks and opportunities not modeled. The tool is a baseline
projection that provides management and policy makers a view of what the City's financial condition may be if current
operations are maintained and a reasonable set of economic assumptions are made. This plan is updated periodically as new
information is available that will materially impact the projection.
Fund Balance
It is the City's goal to target and maintain an unassigned fund balance in the General Fund of at least 16% of revenues and
working capital balances in the Water and Wastewater enterprise funds, and at least 25% of operating expenses. Based on a
reserve policy adopted in March 2018, the target for the Electric enterprise fund working capital was $29.9 million for fiscal
year 2020-21. In fiscal year 2020-21, the City has budgeted to take the final steps to fund another 16% Measure L Reserve
fund over three years. The goals allow for variations from year-to-year to account for economic and fiscal changes. The
General Fund maintained an unassigned fund balance of $24,437,033, or 30.87% of revenues at the end of fiscal year 2020-
21.
Cash Management
The City has written investment policies that address a wide range of investments. These policies describe the City's
investment objectives, investment authority, allowable investment vehicles, maturity terms and eligible financial institutions.
They also describe the City's capital preservation and cash management objectives. As provided in the policy, investments are
intended to be held until maturity and investment terms are to be consistent with the City's cash flow needs. Investment
reports are issued quarterly to the City Manager and City Council to provide detailed information regarding the City's
investments and compliance with City policy and state law. The policy has three objectives: (1) protect principle; (2) provide
for liquidity needs, and (3) obtain the most reasonable rate of return within the first two objectives. All investment activities
are to be undertaken and judged using the Prudent Investor Standard as described within the policy.
Appropriation Limitation
Article XIII B of the Constitution of the State of California (Proposition 4) provides for the limitation of expenditures by state
and local governments. Under the provisions of this article, City appropriations funded through tax sources may not exceed
fiscal year 1979 appropriation levels except as adjusted for increases in population and the growth in the California per capita
income or non-residential assessed valuation due to new construction within the City.
Excluded from the limitation are appropriations funded through charges for services, fines and forfeitures, grants, transfers of
service responsibilities between government agencies and indebtedness incurred prior to fiscal year 1979. Pursuant to
subsequent legislation adopted after Article XIII B, the City is required to annually establish and adopt its appropriations limit
by resolution. For fiscal year 2020-21, the City's appropriations subject to limit were $46,704,764 and the appropriation limit
was $116,864,705, leaving appropriations at $70,159,941 below the limit.
A
Debt Administration
At June 30, 2021, the City had outstanding Certificates of Participation and Revenue Bonds of $123,623,638. These liabilities
are discussed in Note 7 of the Basic Financial Statements and summarized below.
In 2004, the City issued $27,360,000 in Wastewater Certificates of Participation (2004A) to finance the costs of improvements
to the wastewater collection, treatment and disposal system. These bonds were partially refunded with the 2012 Refunding
Wastewater Revenue Bonds, Series A.
On October 1, 2010, the City issued $9,015,000 Water Revenue Certificates of Participation, 2010 Series A and $29,650,000
Water Revenue Bonds, 2010 Series B (Federally taxable - Build America Bonds) to finance the construction of the Surface
Water Treatment Facility, which is designed to pump water from the Mokelumne River, treat and deliver it to the City's water
distribution system. The Water Revenue Bonds 2010 Series B was refunded in the previous fiscal year and is now the 2020
Water Revenue Bonds. The Water Revenue Bonds 2010 Series A was paid off in fiscal year 2020-21.
On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to prepay and cause the
immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP). The 2002 COP were issued in
January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for
the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of
Participation.
The City also issued the $17,105,000 2012 Refunding Wastewater Revenue Bonds (2012 Bonds) in September 2012 to
advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation (2004 COP).
The 2004 COP were issued to provide funds to finance the costs of certain improvements to the wastewater collection,
treatment and disposal system of the City.
On March 10, 2016, the City issued the $20,295,000 2016 Refunding Wastewater Revenue Bonds, Series A (2016 Bonds) to
partially refund $21,415,000 outstanding principal of the 2007A COP.
On December 1, 2017, the City issued $7,762,794 Installment Purchase Agreement, refunding the Certificates of Participation,
2007 A (2007 COP).
On June 13, 2018 the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City prepay
and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue
Certifications of Participation 2008 Series A).
On April 8, 2020 the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City prepay and
cause the immediate defeasance of the outstanding $29,650,000 Lodi Public Financing Authority 2010 Water Revenue Bonds,
Series B (Federally Taxable — Build America Bonds).
The City's debt management policy includes a commitment to monitor all forms of debt annually during the preparation of
the City's Financial Plan and Budget to ensure compliance. Also, the City will generally conduct financing on a competitive
basis, will seek an investment grade rating on any direct debt and will obtain credit enhancements such as letters of credit or
insurance when necessary for marketing purposes, availability and cost effectiveness.
Competitive Biddine Polic
All required purchases for materials, equipment and services during fiscal year 2020-21 were made pursuant to competitive
bidding procedures as established under the City's purchasing ordinance. Contracts for construction projects were awarded
pursuant to competitive bidding procedures established by the State of California for projects in excess of $5,000.
xii
Risk Management
The City is self-insured for dental care, long-term disability, workers' compensation, general liability and unemployment
insurance. General liability and workers' compensation are administered by outside agencies. The City administers
unemployment insurance and long-term disability. Self-insurance transactions are accounted for under the Insurance Funds.
At June 30, 2021, the Insurance Fund had a net position of $7,798,135.
INDEPENDENT AUDIT
The City Council requires an annual audit of the records and accounts of the City by an independent certified public
accountant. To ensure proper internal control, periodically the City conducts a request for proposal (RFP) process for auditing
services. The accounting firm of The Pun Group was selected to perform this audit. The independent auditor's report
precedes the basic financial statements and concludes that the City's basic financial statements are presented fairly, in all
material respects, in accordance with GAAP.
CERTIFICATES OF ACHIEVEMENT
The City has applied for the Government Finance Officers Association of the United States and Canada (GFOA) award for
Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report
(ACFR) for the year ended June 30, 2020. These Certificates of Achievement are prestigious national award recognizing
conformance with the highest standards for preparation of state and local government financial reports. In order to be
awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized ACFR,
whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the
last twenty-eight consecutive years. We believe our current report continues to conform to the Certificate of Achievement
program requirements and we are submitting it to GFOA this year.
ACKNOWLEDGMENTS
As always the professionalism, dedication and efficiency of the Financial Services Division Accounting staff made it possible
for the timely preparation of this report and are to be commended. I would also like to personally thank Melissa Munoz,
Accounting Manager, Robin Xiang, Supervising Accountant, Harron Akbar, Accountant and the entire Finance Team. Their
work in preparing this year's ACFR is greatly appreciated.
I would also like to thank you for your continued interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted,
Andrew Keys
Deputy City Manager/Internal Services Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lodi
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
XIV
-City of Lodi
Community
Development Budget/Treasury .�
Electric Utility Financial
Services
Human
Public Works Resources
Information
Fire Systems
Police
FY 2020-2021
Xv
Mayor and Council
Alan Nakanishi, Mayor
District 1
0 YAA&
Mark Chandler, Mayor Pro Tempore
District 2
Doug Kuehne, Council Member
District 3
Lodi City Council Members work to provide citizens
with a better, more attractive, and healthier place
in which to live. Council establishes local laws, sets
policies, approves programs, appropriates funds,
and supervises the operations of City government.
Council Members are elected on a by -district basis
from five single -member Council districts by voters
residing in the district in which the Council Member
resides. Council Members hold four-year terms and
elections are held in November of even numbered
years.
xvi
Shak Khan, Council Member
District 4
Mikey Hothi, Council Member
District 5
ADVISORY BODIES AND DIRECTORY OFFICIALS
ADVISORY BODIES
Planning Commission
Library Board
Recreation Commission
Site Plan and Architectural Review Committee
PRINCIPAL ADMINSTRATIVE OFFICERS
Steve Schwabauer
Andrew Keys
Janice Magdich
Jennifer Cusmir
Andrew Keys
Ken Johnson
Christina Jaromay
Charles Swimley
Jeff Berkheimer
John Della Monica
Sierra Brucia
xvii
Lodi Improvement Committee
Lodi Arts Commission
Youth Commission
Lodi Senior Citizens' Commission
City Manager
Deputy City Manager
City Attorney
City Clerk
Interim Library Services Director
Fire Chief
Parks, Recreation &
Cultural Services Director
Public Works Director
Electric Utility Director
Community Development Director
Police Chief
(This page intentionally left blank.)
FINANCIAL
SECTION
The Financial Section is comprised of
the Independent Auditor's Report,
Management's Discussion and Analysis,
Basic Financial Statements, including
the Notes, Required Supplementary
Information, and Supplementary
Information which includes Combining
and Individual Fund Statements and
Schedules.
1F!
(This page intentionally left blank.)
THE �
PUN GROUP
ACCOUNTANTS & ADVISORS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Lodi, California (the "City"), as of and
for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
2121 North California Blvd., Suite 290,Walnut Creek, California 94596
Tel: 925-974-3394 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California
Page 2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund
information of the City as of June 30, 2021, and the respective changes in financial position, and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Emphasis of Matter
Prior Period Adjustment
As discussed in Note 16 to the basic financial statements, compensated absences in the governmental activities were
overstated by $5,850,449. Accordingly, beginning net position as of July 1, 2020, of the governmental activities was
restated to reflect the correction of these errors. Our opinions are not modified with respect to these matters.
Implementation of GASB 84
As discussed in Note lx to the basic financial statements, the City implemented Governmental Accounting Standards
Board ("GASB") Statement No. 84, Fiduciary Activities. The adoption of the standard resulted in the reclassification
of the special assessment fund from fiduciary fund to a special revenue fund. Accordingly, the beginning net position
as of July 1, 2020, of the governmental activities and the beginning fund balance as of July 1, 2020 of the special
assessment special revenue fund was restated by $375,940. Our opinions are not modified with respect to these
matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis on pages 5 through 14 and the Schedule of Changes in Net Pension Liability and Related Ratios,
Schedule of Pension Contributions, Schedule of Changes in the Net OPEB Liability and Related Ratios, Schedule of
Employer OPEB Contributions and the Budgetary Comparison Schedules (General Fund and Streets Fund) on pages
87 through 97 are presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the Required Supplementary Information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City's basic financial statements. The Introductory Section, Combining and Individual Nomnajor Fund Financial
Statements and Budgetary Comparison Schedules, and Statistical Section, are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California
Page 3
The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund
Financial Statements and Budgetary Comparison Schedules are fairly stated in all material respects in relation to the
basic financial statements as a whole.
The Introductory and Statistical Sections have 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 them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 23, 2020, on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City's internal control over financial reporting and compliance.
,I;j-1 --
" A, IJP
Walnut Creek, California
December 31, 2021
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CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2021
This section of the Annual Comprehensive Financial Report is presented as discussion and analysis of the financial
performance of the City of Lodi (City) for the year ended June 30, 2021.
FINANCIAL HIGHLIGHTS
• The assets and the deferred outflows of resources of the City exceeded its liabilities and the deferred inflows
of resources at the close of the fiscal year by $285,665,215 (net position). Of this amount, ($44,748,967) is
unrestricted deficit.
• The City's total net position increased by $51,228,065 in fiscal year 2021.
• As of June 30, 2021, the City's governmental funds reported combined ending fund balances of $72,681,020,
an increase of $17,340,255 in comparison with the prior year. Of this amount, $24,437,033 is available for
spending at the City's discretion (unassigned fund balance).
• At the close of the fiscal year, fund balance for the General Fund was $40,690,098, of which $24,437,033 is
unassigned or 37.24% of total general fund expenditures of $65,603,592. Of the $40,690,098 fund balance,
$53,739 is non -spendable for pre -paid expenses, $15,641,640 is restricted for Pensions and $557,686 is
committed for video related capital projects.
• The City's total long-term liabilities decreased by $14,136,854 or 8.05% during the current fiscal year. Other
liabilities increased $2,287,789 or 12.57%.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic 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 Basic Financial Statements. This report also includes required supplementary
information and combining and individual fund statements and schedules in addition to the basic financial
statements.
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 statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities
and deferred inflow of resources, with the difference reported as net position. Overtime, increases or decreases in net
position may serve as a useful indicator of whether or not the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes, and
expenses pertaining to earned but unused vacation and sick leave.
Both of the government -wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
or a significant portion of their costs through user fees and charges (business -type activities). The governmental
activities of the City include general government, public protection, public works, community development, library,
parks and recreation. The business -type activities of the City include electric operations, wastewater operations, water
operations and public transit operations.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related accounts, which are used
to maintain control over resources that have been segregated for specific activities or objectives. The City, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City can be divided into the following three categories: Governmental funds,
Proprietary funds, and Fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. Most of the City's basic services are reported in
governmental funds. These statements, however, focus on (1) how cash and other financial assets can readily be
converted to available resources and (2) the balances left at year-end that are available for spending. Such information
may be useful in determining financial resources available in the near future to finance City programs.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and
the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains several individual governmental funds organized according to their type (general, special revenue,
capital projects and debt service). Information is presented separately in the governmental funds balance sheet and in
the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and
Streets Fund which are considered major funds. Data from the remaining governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of the non -major governmental funds is provided in the
form of combining statements elsewhere in this report.
The City adopts an annual budget for its General Fund and special revenue funds. Budgetary comparison statements
and schedules have been provided for the General Fund and the special revenue funds to demonstrate compliance
with this budget.
Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges customers,
either outside customers, or internal units or departments of the City. Proprietary funds provide the same type of
information as shown in the government -wide financial statements, only in more detail. The City maintains the
following two types of proprietary funds:
• Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The City uses enterprise funds to account for the operations of the
Electric, Wastewater, Water, all of which are considered to be major funds and the Transit system, which is
considered to be a non -major enterprise fund.
• Internal Service funds are used to report activities that account for various employee benefits, self-insurance,
fleet activities, and vehicle and equipment replacement of the City. Because these activities predominantly
benefit governmental rather than business -type functions, they have been included within the governmental
activities in the government -wide financial statements.
6
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The
activities of the Private -Purpose Trust and the Hutchins Street Square Bequest are also accounted for under the
fiduciary funds. Since the resources of these funds are not available to support the City's own programs, they are not
reflected in the government -wide financial statements. Fiduciary funds are accounted for using the accrual basis of
accounting.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report presents certain required
supplementary information concerning changes in net pension and other post -employment liabilities and related ratios
for the City's Miscellaneous and Safety pension plans, the City's progress in funding its obligation to provide other
postemployment benefits (OPEB) to its employees, and schedules comparing budget to actual amounts in the General
Fund and Streets Fund.
Combining Statements
The combining statements in connection with non -major governmental funds, internal service funds and fiduciary
funds are presented immediately following the required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Assets:
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Liabilities:
Net OPEB obligation
Net pension liability
Long-term liabilities outstanding
Other liabilities
Total liabilities
Deferred inflows of resources
Net position:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net position
City of Lodi's Net Assets
June 30, 2021 and 2020
Governmental
Activities
Business -type
Activities
Total
137,467,657
2021
2020
2021
2020
2021
2020
$ 107,397,365
136,983,261
$ 85,328,959
132,931,298
$ 121,120,296 $
253,309,985
109,002,767
247,071,050
$ 228,517,661
390,293,246
$ 194,331,726
380,002,348
244,380,626
218,260,257
374,430,281
356,073,817
618,810,907
574,334,074
17,279,260
16,721,382
11,267,852
9,424,449
28,547,112
26,145,831
19,969,043
114,251,141
35,155,052
11,445,566
21,227,058
111,492,523
41,948,772
9,068,858
4,389,389
32,904,069
126,283,946
9,046,629
5,037,553
30,331,747
133,627,080
9,135,548
24,358,432
147,155,210
161,438,998
20,492,195
26,264,611
141,824,270
175,575,852
18,204,406
180,820,802
183,737,211
172,624,033
178,131,928
353,444,835
361,869,139
6,786,958
8,260,604
1,461,011
2,139,401
8,247,969
10,400,005
122,205,737
117,009,601
151,811,971
137,467,657
274,017,708
254,477,258
37,536,500
33,229,610
18,859,974
19,594,455
56,396,474
52,824,065
(85,690,111)
(107,255,386)
40,941,144
28,164,825
(44,748,967)
(79,090,561)
$ 74,052,126
$ 42,983,825
$ 211,613,089
$ 185,226,937
$ 285,665,215
$ 228,210,762
N
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City's
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $285,665,215 at the
close of the current fiscal year.
Assets. The City's total assets increased by $44,476,833. The increase is primarily due to the following:
Governmental Activities. Total assets for governmental activities had an increase of $26,120,369 or 11.97%. Current
and other assets increased by $22,068,406 primarily resulting from the increase in restricted assets of $16,990,838,
$11,149,450 increase in due from other governmental agencies, and increase in accounts receivable of $10,345,939.
Capital assets increased by $4,051,963. Other insignificant activities make up the difference.
Business -type Activities. Total assets for the business -type activities had an increase of $18,356,464 or 5.16%. Current
and other assets increased by $12,117,529 primarily due to increases in cash and investments of $8,924,835, increase
in advance receivable of $248,957. Capital assets increased by $6,238,935. Other insignificant activities contributed to
the difference.
Deferred outflows of resources. The increase in total deferred outflows of resources of $2,401,281 is primarily from
changes in various components related to the Miscellaneous and Safety Plans in the CalPERS valuation reports and
current pension contributions made after the measurement date of June 30, 2020.
Liabilities. The City's total liabilities decreased by $8,424,303 or 2.33%. The decrease is primarily due to the following:
Governmental Activities. Total liabilities for the governmental activities had a decrease of $2,916,409 or 1.59%,
primarily from a decrease in long-term liabilities. Decreases in liabilities included a reduction in the compensated
absences in the long-term liabilities.
Business -type Activities. Total liabilities for the business -type activities decreased by $5,507,895 or 3.09%. The
decrease is primarily attributable to a decrease in long-term liabilities, which is an offset by the increase in net pension
liability. Decreases in other liabilities include accrued salaries and wages, accounts payable and a decrease in unearned
revenue. Other insignificant activities offset the difference.
Net position. The City's overall financial position increased during the fiscal year. The net position has increased by
$51,228,819, or 25.18%.
The largest portion ($274,017,708) of the City's net position reflects its investment in capital assets net of any
associated depreciation (e.g., land, buildings and improvements, machinery and equipment); less any related debt used
to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its capital assets are
reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources.
An additional portion of the City's net position, $56,396,474 (19.74%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position amounts to a deficit of
($44,748,967). At the end of the current fiscal year, the City is able to report positive balances in the General Fund and
all Enterprise activities. Unrestricted net position is negative for the governmental -type activities primarily as a result
of the City's outstanding pension and OPEB obligations.
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
Analysis of Changes in Net Position
Governmental Activities
Net position for the governmental activities increased by $24,841,912 in the current fiscal year. The change in net
position is an improvement over last year's increase of $16,124,046 by $8,717,866. The increase is primarily a result of
the following:
• The City receives other taxes, such as franchise tax, business licenses and tourism occupancy tax. These other
taxes increased by $404,313 or 2.22% compared to prior year. The economy continues to show evidence of
positive movement particularly in the housing market, businesses and tourism.
• Sales tax saw an increase of $4,218,571 or 21% from prior year. For General Fund, sales tax increased by
$2,576,718. For Measure L, sales tax increased by $1,641,854. Bradley Burns' general sales tax revenues
increased by $2,576,718 year over year.
• Property taxes increased by $1,070,083 from prior year.
• Capital grants and contributions decreased by $1,884,245 from the prior fiscal year. The difference is due to
departments projects being placed on hold during the COVID-19 pandemic. Public Works used Federal grants
to complete various projects in the prior fiscal year reducing the amount of grants in this fiscal year.
9
City of Lodi's Changes in Net Position
June 30, 2021 and 2020
Governmental
Business -type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
Revenues
Program revenues:
Charges for services
$ 9,930,463 $
9,555,445
$ 105,154,641
$ 102,596,417
$ 115,085,104
$ 112,151,862
Operating grants and contributions
4,582,051
3,426,206
6,866,098
7,034,631
11,448,149
10,460,837
Capital grants and contributions
8,417,830
10,302,125
5,120,055
2,893,597
13,537,885
13,195,722
General revenues:
Property taxes
13,050,417
11,980,334
-
-
13,050,417
11,980,334
Sales taxes
24,302,433
20,083,863
24,302,433
20,083,863
Other taxes
18,647,569
18,243,256
18,647,569
18,243,256
Grants and contributions not restricted to
specific programs
14,166,158
474,595
14,166,158
474,595
Other
4,536,154
4,567,817
6,160,060
7,917,094
10,696,214
12,484,911
Total revenues
97,633,075
78,633,641
123,300,854
120,441,739
220,933,929
199,075,380
Expenses
General government
24,867,053
13,156,177
-
-
24,867,053
13,156,177
Public protection
34,636,966
35,764,250
34,636,966
35,764,250
Public works
10,354,010
9,335,600
10,354,010
9,335,600
Community development
1,903,002
2,056,443
1,903,002
2,056,443
Library
1,152,899
1,881,688
1,152,899
1,881,688
Parks and recreation
3,670,846
3,873,477
3,670,846
3,873,477
Interest on long-term debt
654,504
712,187
654,504
712,187
Electric
-
-
68,306,979
71,757,740
68,306,979
71,757,740
Wastewater
11, 683, 283
18, 049,374
11, 683,283
18, 049, 374
Water
8,141,513
14,514,000
8,141,513
14,514,000
Transit
4,334,810
4,840,742
4,334,810
4,840,742
Total expenses
77,239,279
66,779,822
92,466,585
109,161,856
169,705,865
175,941,678
Changes in net position before transfers
20,393,796
11,853,819
30,834,269
11,279,883
51,228,064
23,133,702
Transfers
4,448,117
4,270,227
(4,448,117)
(4,270,227)
-
-
Changes in net position
24,841,912
16,124,046
26,386,152
7,009,656
51,228,064
23,133,702
Net position at beginning of year
42,983,825
26,859,779
185,226,937
178,217,281
228,210,762
205,077,060
Prior period adjustments
6,226,389
-
-
-
6,226,389
-
Net position at beginning of year, as restated
49,210,214
26,859,779
185,226,937
178,217,281
234,437,151
205,077,060
Net position at end of year
$ 74,052,126 $
42,983,825
$ 211,613,089
$ 185,226,937
$ 285,665,215
$ 228,210,762
Analysis of Changes in Net Position
Governmental Activities
Net position for the governmental activities increased by $24,841,912 in the current fiscal year. The change in net
position is an improvement over last year's increase of $16,124,046 by $8,717,866. The increase is primarily a result of
the following:
• The City receives other taxes, such as franchise tax, business licenses and tourism occupancy tax. These other
taxes increased by $404,313 or 2.22% compared to prior year. The economy continues to show evidence of
positive movement particularly in the housing market, businesses and tourism.
• Sales tax saw an increase of $4,218,571 or 21% from prior year. For General Fund, sales tax increased by
$2,576,718. For Measure L, sales tax increased by $1,641,854. Bradley Burns' general sales tax revenues
increased by $2,576,718 year over year.
• Property taxes increased by $1,070,083 from prior year.
• Capital grants and contributions decreased by $1,884,245 from the prior fiscal year. The difference is due to
departments projects being placed on hold during the COVID-19 pandemic. Public Works used Federal grants
to complete various projects in the prior fiscal year reducing the amount of grants in this fiscal year.
9
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
Expenses for governmental functions totaled $77,239,279, an increase of $10,459,457 or 15.66% relative to the prior
fiscal year. Increase in expenditures resulted from the City participating in the Great Plates program.
Business -type Activities
Business -type activities increased the City's net position by $26,386,152 in the current year, which is an increase of
$19,376,496 from last year's increase of $7,009,656. The key elements of this change are:
Charges for services in the Electric Fund increased by $2,015,604, Wastewater Fund increased by $683,896,
the Water Fund decreased by $85,179 and Non -major Transit decreased by $56,097.
Decrease in the greenhouse gas allowance (GHG) of $543,301 in the Electric Fund related to Assembly Bill 32:
Global Warming Act, which set the 2021 greenhouse gas emissions reduction into law and also adopted a
regulation that established a system of market-based declining annual aggregate emission limits for sources or
categories of sources that emit greenhouse gases. In 2011, the California Air Resources Board (ARB) adopted
the cap -and -trade regulation. This program covers major sources of GHG emissions in the State such as
refineries, power plants, industrial facilities, and transportation fuels. The cap -and -trade program includes an
enforceable emissions cap that will decline over time. The State distributes allowances which are tradable
permits, equal to emissions allowed under the cap.
Other revenues decreased by $1,782,297 primarily due to investment returns.
Bulk power cost increased by $638,454 compared to the prior year primarily attributable to overall increase in
generation and in third party increase in transmission, management services costs paid to NCPA.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
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 a government's net resources available for spending at the
end of the fiscal year. Types of governmental funds reported by the City include the General Fund, special revenue
funds, debt service fund and capital projects funds.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$72,681,020, for a net change in fund balances of $17,340,255. In comparison to the prior year, the change in fund
balance resulted from an increase in overall revenues and expenditures coming in under budget.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance
of the General Fund was $24,437,033 while total fund balance was $40,690,098. As a measure of the General Fund's
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance and total fund balance represent 60.18% and 37.33% of total General Fund expenditures,
respectively.
The fund balance of the General Fund increased by $12,787,057 during the current fiscal year, an increase of
$7,336,428 from last year's net change in fund balance of $5,450,629.
Key factors in this increase are:
• Total revenues increased by $21,424,773, primarily from the net increase of sales tax of $4,218,571, which
includes the additional revenue from Measure L sales tax, an increase of secured property tax of $1,070,085,
10
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
increase intergovernmental revenue of $14,177,450 (primarily the Great Plates program). Other insignificant
increases and decreases offset the difference.
• Total expenditures increased by $14,633,595 primarily from the City participating in the Great Plates program.
Due to management's decision to close certain City facilities and programs as a result of COVID-19, many
expenditures came in lower than expected.
Total fund balance of the Streets Funds was $14,133,853. Intergovernmental revenues of $6,774,637 offset by capital
expenditures of $4,743,316 were the largest components that resulted in the increase of $1,389,856 to fund balance.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide financial statements,
but in more detail.
Unrestricted net position at the end of the year for the Electric Fund was $31,797,182, Wastewater Fund was
$11,553,632, Water Fund was $(6,473,947), Transit Fund was $4,064,277 and the Internal Services Funds unrestricted
net position was $(19,839,332).
Other factors concerning the finances of these funds are discussed in the City's business -type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final budget in the General Fund were a net increase in appropriations
of $5,461,285. The increase in appropriations can be briefly summarized as follows:
• $12,087,720 increase in general revenues
• $17,549,005 increase in overall expenditures
Significant differences between the final budget and the actual revenues and expenditures can be briefly summarized
as follows:
Tax revenue experienced a favorable variance between the final budget and actual revenue of $2,254,246,
which resulted from an increase in property tax and special assessment taxes. Investment and rental income
had a favorable variance between the budget and actual of $2,782,422. Sales and use tax had a favorable
variance between the final budget and actual revenue of $4,344,433. All additional revenues had an
unfavorable variance between final budget and actuals but were not significant.
For expenditures, a favorable variance between the final budget and actual expenditures of $5,033,863 was
due savings from vacancies and the continued overall effort to reduce spending and costs. Overall
expenditures were additionally reduced due to management's decision to close certain City facilities and
programs as a result of COVID-19.
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, 2021, amounts to
$390,293,246 (net of accumulated depreciation). This investment in capital assets includes land, buildings and
improvements, machinery and equipment, vehicles, infrastructure, works of art, and construction in progress. The
is
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
total increase in the City's capital assets for the current fiscal year was $10,290,898, a 2.71% increase (a 3.05% increase
in governmental activities and 2.53% increase in business -type activities).
An increase in complete construction in progress compared to prior year was primarily from the Streets projects.
Additional information on the City's capital assets can be found in Note 6 on pages 61-62 of this report.
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $123,623,638. Of this amount,
$14,882,270 is the outstanding balance of the bonds issued to fund the new public safety building, refinancing of the
performing arts center and the downtown and Cherokee Lane improvements. The total of $108,741,368 from the
business -type activities consists of $28,618,047 for the Water Fund, $37,303,247 for the Wastewater Fund; and
$42,820,074 for the Electric Fund.
The City's total bonded debt decreased by $7,143,860 during the current fiscal year.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
On June 15, 2021, the State of California's COVID-19 response Blueprint for a Safer Economy was retired. At that point,
nearly all economic activity within the City of Lodi was allowed to proceed unimpeded. San Joaquin County lifted local
COVID-19 restrictions and has instead operated with an indoor masking recommendation, but no business closures
have been required since. Unemployment remains high and labor force participation low as the restructuring caused
by and recovery of the economy from COVID takes full shape.
Despite these challenges, Lodi's revenues performed greatly during fiscal year 2020-21 and it is anticipated they will
continue to perform well in the coming year. From the actuals for fiscal year 2020-21 to the adopted budget for fiscal
year 2021-22, it is estimated that sales tax and Measure L revenue will decrease by 7.89%, business license tax will
grow by 5.7%. Transient occupancy tax, the only major revenue source to see a significant pandemic influenced
decline, is anticipated to decrease by 11.1% and property tax will continue a steady increase of 4.25%, fueled by new
development, turnover of long term ownership and general appreciation in property values. General Fund base
revenue growth is projected to decrease by 5.93% from fiscal year 2020-21 actual revenue to the fiscal year 2021-22
budgeted revenue, totaling $58,827,000 when excluding pandemic related reimbursements. Given that fiscal year
2020-21 outperformed all expectations and outperformed budget by a substantial margin, it is likely that adopted
revenue estimates for fiscal year 2021-22 are conservative and actual performance should again exceed expectations.
`V,
CITY OF LODI'S CAPITAL ASSETS
(net of depreciation)
Governmental
Business -type
Activities
Activities
Total
Beginning of Year
$ 132,931,298
$ 247,071,050
$ 380,002,348
Land
25,238,390
5,535,718
30,774,108
Buildings and Improvements
33,808,085
36,281,687
70,089,772
Machinery and equipment
2,861,571
197,409,303
200,270,874
Vehicles
3,902,167
2,880,592
6,782,759
Infrastructure
67,847,737
-
67,847,737
Work of Art
304,907
-
304,907
Construction in Progress
3,020,404
11,202,685
14,223,089
End of Year
$ 136,983,261
$ 253,309,985
$ 390,293,246
An increase in complete construction in progress compared to prior year was primarily from the Streets projects.
Additional information on the City's capital assets can be found in Note 6 on pages 61-62 of this report.
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $123,623,638. Of this amount,
$14,882,270 is the outstanding balance of the bonds issued to fund the new public safety building, refinancing of the
performing arts center and the downtown and Cherokee Lane improvements. The total of $108,741,368 from the
business -type activities consists of $28,618,047 for the Water Fund, $37,303,247 for the Wastewater Fund; and
$42,820,074 for the Electric Fund.
The City's total bonded debt decreased by $7,143,860 during the current fiscal year.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
On June 15, 2021, the State of California's COVID-19 response Blueprint for a Safer Economy was retired. At that point,
nearly all economic activity within the City of Lodi was allowed to proceed unimpeded. San Joaquin County lifted local
COVID-19 restrictions and has instead operated with an indoor masking recommendation, but no business closures
have been required since. Unemployment remains high and labor force participation low as the restructuring caused
by and recovery of the economy from COVID takes full shape.
Despite these challenges, Lodi's revenues performed greatly during fiscal year 2020-21 and it is anticipated they will
continue to perform well in the coming year. From the actuals for fiscal year 2020-21 to the adopted budget for fiscal
year 2021-22, it is estimated that sales tax and Measure L revenue will decrease by 7.89%, business license tax will
grow by 5.7%. Transient occupancy tax, the only major revenue source to see a significant pandemic influenced
decline, is anticipated to decrease by 11.1% and property tax will continue a steady increase of 4.25%, fueled by new
development, turnover of long term ownership and general appreciation in property values. General Fund base
revenue growth is projected to decrease by 5.93% from fiscal year 2020-21 actual revenue to the fiscal year 2021-22
budgeted revenue, totaling $58,827,000 when excluding pandemic related reimbursements. Given that fiscal year
2020-21 outperformed all expectations and outperformed budget by a substantial margin, it is likely that adopted
revenue estimates for fiscal year 2021-22 are conservative and actual performance should again exceed expectations.
`V,
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
The City added a record annual amount to its General Fund reserve balance in fiscal year 2020-21, largely due to
revenues performing well above expectations, budgetary cuts due to pandemic uncertainty and continued difficulty
filling General Fund positions. Simply, the pandemic did not impact the City of Lodi's revenues to a large extent. As
the recovery continues, the City is projecting a balanced budget in the General Fund in fiscal year 2021-22, although
continued widespread labor market challenges make it likely the City will be able to contribute to its reserve balance.
The City's General Fund reserves are healthy, and with disciplined savings over the past 5 years driven by the City's
Pension Stabilization Policy, the City's Pension Stabilization Reserves are substantial as well. Projected CalPERS
unfunded accrued liability (UAL) cost of $11.2 million in fiscal year 2021-22 are anticipated to continue to grow to
approximately $14.6 million by 2027-28, for a 30% increase over the forecast term included in the most recent
actuarial reports provided by CAPERS to the City. Additionally, CalPERS will be utilizing a portion of the earnings in
excess of the discount rate achieved in the year ending June 30, 2021 to further buy down the discount rate used to
calculate UAL. CalPERS is also in the process of its Asset Liability Management review which may result in further
changes to actuarial assumptions including the discount rate. Clearly caution and fiscal prudence towards CAPERS will
be required in the coming years.
For fiscal year 2021-22, the City increased its workforce by a net of six positions; adding one Legal Secretary, one
Management Analyst, one Senior Customer Service Representative, one Network Administrator, one Code
Enforcement Officer, one Police Records Clerk, and one Assistant/Associate Civil Engineer and deleting one Utility
Billing Specialist. In addition all positions left vacant and unfunded during the fiscal year 2020-21 budget cycle due to
COVID uncertainties, were restored at mid -year fiscal year 2020-21 and are continuously funded into fiscal year 2021-
22. This includes six police officer and one police dispatcher positions.
The City has expanded capital project efforts in fiscal year 2021-22. Taking advantage of Measure L's tremendous
performance, general revenue growth and unprecedented federal funding, the City will be able to contribute $400,000
towards a parks capital fund this year, which is the first budgeted transfer to this program in well over a decade.
Significant projects expected to be undertaken include Grape Bowl Turf resurfacing, Hutchins Street Square roof
replacement, Rebuilding of Zupo Field, Garfield St. Safe Routes to School project, planning for a new Animal Shelter,
backbone Broadband installation, electrical overhead and underground maintenance, SCADA upgrades, various sewer
main line replacements, Intelligent Transportation System Improvements and various transit facility repairs and
upgrades.
Employee costs and retirement contributions —The City entered multi-year labor agreements with all of its represented
bargaining units that began in 2019 and offered employees the first significant salary increases since 2008. Employees
worked diligently through the pandemic to continue provision of critical City services. Bargaining is underway for the
first contract with the International Brotherhood of Electrical Workers that expires December 31, 2021. Public Safety
labor groups have their contracts expiring at the end of fiscal year 2021-22 and all other groups have contracts that
expire December 31, 2022.
Based on the City's aggressive funding actions over the past four years, by the end of fiscal year 2020-21, total funding
in the Pension Stabilization Fund (PSF) is estimated as follows: General Fund: $15.4 million; Other Funds $5.0 million.
Because results for fiscal year 2020-21 significantly exceeded expectations, it is anticipated that the City will make
additional contributions to the PSF in fiscal year 2021-22.
Economic Development
The City is deep-rooted in California's rival wine country, is as ripe for commercial and residential real estate
development as it is for its Zinfandel grapes. Because of its agricultural roots, the City has unfolded into an
international tourist destination and real estate market, attracting medical biotech and light industrial development to
the area. With San Joaquin County's charming architecture, and Lodi's awe-inspiring vineyards, almond, olive and fruit
orchards, it is easy to see why so many are drawn to the area for its beauty and abundance.
13
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021
Investors are beginning to look to the City as an opportunity for adding commercial real estate, residential, in -fill, and
mixed-use development to its picturesque agricultural setting. The City's strength as a real estate market lies in its
strong infrastructure, abundant water, wine tourism industry, and affordable real estate. The accessibility to Interstate
5 and Highway 99 allows manufacturers and distributors to get their product out to market quickly. The Lodi Energy
Center, located only about three miles outside the city on 1-5 provides consistent and dependable local electricity,
which is particularly crucial for its industrial thermoforming companies. The city -owned power is more reliable and less
expensive than the investor owned utilities in the area.
REQUEST FOR INFORMATION
This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a general
overview of the City's finances and to demonstrate the City' accountability for the money it receives. If you have any
questions about this report or need additional information, contact the Financial Services Division of the City of Lodi at
310 W. Elm Street, Lodi, California, 95240.
14
BASIC
FINANCIAL
STATEMENT'
The Government -wide Financial
Statements provide a broad overview
of the City's financial position and
operating results. Information is
grouped by governmental activities or
business -type activities.
The Fund Financial Statements report
information about the City's
Governmental Funds, Proprietary
Funds, and the Fiduciary Funds.
The notes have an integral role in
disclosing information essential to the
Basic Financial Statements.
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GOVERNMENT -WIDE
FINANCIAL
STATEMENTS
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ASSETS
Cash and investments
Restricted cash and investments
Accounts receivables (net)
Property tax receivable
Interest receivable
Due from other governmental agencies
Advance receivable - NCPA
Inventory
Other assets
Internal balances
Capital assets, net: Nondepreciable
Capital assets, net: Depreciable, net
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Unamortized losses on defeasance of debt
Total deferred outflows of resources
LIABILITIES
Accounts payable and accrued liabilities
Accrued salaries and wages
Accrued interest
Unearned revenue
Long term liabilities:
Due within one year
Due in more than one year
Other long-term obligations:
Net pension liability
Net OPEB liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted
Unrestricted (deficit)
Total net position
CITY OF LODI
Statement of Net Position
June 30, 2021
Primary Government
Governmental Business -type
Activities Activities Total
$ 68,569,596
16,990,838
9,869,692
92,539
21,421
11,625,698
205,119
171,337
(148,875)
28,563,701
108,419,560
244,380,626
15,454,389
1,551,024
273,847
17,279,260
11,029,953
166,413
165,303
83,897
9,105,409
26,049,643
114, 251,141
19,969,043
180,820,802
$ 71,186,590
18,859,974
10,250,492
26,153
3,380,389
12,189,516
5,058,525
19,782
148,875
16,738,405
236,571,580
374,430,281
5,588,332
340,931
5,338,589
11,267,852
7,201,401
119,667
1,065,457
660,104
7,643,492
118,640,454
32,904,069
4,389,389
172,624,033
$ 139,756,186
35,850,812
20,120,184
92,539
47,574
15,006,087
12,189,516
5,263,644
191,119
45, 302,106
344,991,140
618,810,907
21,042,721
1,891,955
5,612,436
28, 547,112
18,231,354
286,080
1,230,760
744,001
16,748,901
144,690,097
147,155,210
24,358,432
353,444,835
545,547 89,088 634,635
6,241,411 1,371,923 7,613,334
6,786,958 1,461,011 8,247,969
122,205,737
37,536,500
(85, 690,111)
$ 74,052,126
The notes to financial statements are an integral part of this statement.
19
151,811,971
18,859,974
40, 941,144
$ 211,613,089
274,017,708
56,396,474
(44,748,967)
$ 285,665,215
CITY OF LODI
Statement of Activities
For the Year Ended June 30, 2021
Functions/Programs Expenses
Primary government:
Governmental activities:
Program Revenues
Operating Grants and Capital Grants and
Charges for Services Contributions Contributions
General government
$ 24,867,053 $
2,119,439 $
- $
Public protection
34,636,966
1,064,575
1,266,125
769,568
Public works
10,354,010
1,484,056
3,178,320
5,554,281
Community development
1,903,002
4,086,353
29,447
-
Library
1,152,899
-
108,159
-
Parks and recreation
3,670,846
1,176,040
-
2,093,981
Debt Service
654,504
-
-
-
Total governmental activities
77,239,280
9,930,463
4,582,051
8,417,830
Business -type activities:
Electric
68,306,979
74,197,234
1,908,549
567,681
Wastewater
11,683,283
16,780,674
379,098
2,241,113
Water
8,141,513
14,106,809
260,505
1,165,001
Transit Funds
4,334,810
69,924
4,317,946
1,146,260
Total business -type activities
92,466,585
105,154,641
6,866,098
5,120,055
Total primary government
$ 169,705,865 $
115,085,104 $
11,448,149 $
13,537,885
General revenues:
Property taxes
Special assessments
Sales tax
Document transfer
Franchise taxes
Business license tax
Transient occupancy tax
Grants and contributions not restricted to specific programs
Investment earnings
Other
Transfers
Total general revenues, and transfers
Change in net position
Net position - beginning, as restated (Note 16)
Net position - ending
The notes to financial statements are an integral part of this statement.
20
CIN OF LODI
Statement of Activities (Continued)
For the Year Ended June 30, 2021
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Business -type
12,671,994
Activities
Activities
Total
$ (22,747,614)
$ $
(22,747,614)
(31,536,698)
(31,536,698)
(137,353)
(137,353)
2,212,798
2,212,798
(1,044,740)
(1,044,740)
(400,825)
-
(400,825)
(654,504)
2,223,031
(654,504)
(54,308,936)
3,937,029
(54,308,936)
4,448,117
8,366,485
8,366,485
79,150,848
7,717,602
7,717,602
7,390,802
7,390,802
26,386,152
1,199,320
1,199,320
185,226,937
24,674,209
24,674,209
(54,308,936)
24,674,209
(29,634,727)
12,671,994
12,671,994
378,423
378,423
24,302,433
24,302,433
6,073,416
6,073,416
9,581,892
9,581,892
2,092,327
2,092,327
899,934
899,934
14,166,158
-
14,166,158
3,686,178
2,223,031
5,909, 209
849,976
3,937,029
4,787,005
4,448,117
(4,448,117)
-
79,150,848
1,711,943
80,862,791
24,841,912
26,386,152
51,228,064
49,210,214
185,226,937
234,437,151
$ 74,052,126 $
211,613,089 $
285,665,215
The notes to financial statements are an integral part of this statement.
21
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FUND
FINANCIAL
STATEMENTS
Government Fund Types
• Major Funds:
o General Fund
o Streets Fund
Proprietary Fund Types
• Major Funds:
o Electric Fund
o Wastewater Fund
o Water Fund
• Nonmajor Enterprise Fund:
o Transit Fund
• Internal Service Funds
Private -purpose Trust Funds
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FINANCIAL
STATEMENT DESCRIPTIONS
Government Fund Types
Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Fund and
Capital Projects Funds.
Major Governmental Funds:
GENERAL FUND
This fund is maintained to account for all financial resources that are not restricted as to their
use. This includes property and sales taxes, business tax receipts, franchise taxes and various
subventions such as Motor Vehicle In -Lieu fees received from the State of California. With the
exception of grant programs, General Fund resources can be utilized for any legitimate
governmental purpose.
STREETS FUND
This fund was established to account for the following types of revenues and expenditures:
Gas Tax
To account for revenues and expenditures apportioned to the City under the Streets and
Highway Code. Portions of the tax rate levied by the State of California on all gasoline
purchases are allocated to cities throughout the State on a population basis. These funds
are restricted for expenditure by the State of California for street related purposes only.
Development Impact Mitigation Fees
To account for impact fees charged to provide for the building of various storm drains
and street improvements needed to serve new development. The fees are calculated on
a per acre basis and are collected at subdivision final map approval or with building
permit stage effective November 4, 1991.
Measure K Sales Tax
To accountfor revenues and expenditures apportioned to the Cityfor salestax collections
under Measure K. Expenditures for administration, maintenance and construction must
be for street -related projects.
Intermodal Surface Transportation Efficiency Act (ISTEA)
To account for revenues from the federal highway administration for programs including
surface transportation program (STP) for streets and roads, congestion mitigation and air
quality program (CMAQ) and hazard elimination safety (HES) for street lighting projects.
Nonmajor Governmental Funds can be found in supplementary information.
25
Proprietary Fund Types
Proprietary funds consist of the enterprise funds and the
Internal Service funds.
Major Enterprise Funds:
ELECTRIC FUND
The City established this fund in order to account for the provision of electric services to the
residents of the City. All activities necessary to provide such services are accounted for in this
fund, including but not limited to, source of supply, overhead, systems maintenance, customer
service, engineering, administration, capital improvements maintenance and debt service.
WASTEWATER FUND
This fund was established by the City in order to account for the provision of wastewater
collection and treatment services to the residents of the City. All activities necessary to provide
such services are accounted for in this fund, including, but not limited to, administration,
operations, maintenance, improvements and debt service.
WATER FUND
This fund was established by the City in order to account for the provision of water to the
residents of the City as well as some customers in the County. All activities to provide such
services are accounted for in this fund, including, but not limited to administration, operations,
distribution, maintenance, capital improvements and debt service.
Nonmajor Enterprise Fund:
TRANSIT FUND
This fund is used to account for the operations of the Dial -A -Ride and the Grapeline bus
system.
Internal Service Funds:
These funds are used to account for interdepartmental operations where it is the stated intent
that costs of providing services to the departments of the City on a continuing basis be financed
or recovered primarily by charges to the user departments.
Fiduciary Fund Types
PRIVATE-PURPOSRE TRUST FUNDS
These funds are used to account for assets held by the Library Board as trustee of the Lodi
Public Library and for assets held by the City in accordance with the trust agreement on behalf
of the Hutchins Street Square.
26
CITY OF LODI
Balance Sheet
Governmental Funds
June 30, 2021
The notes to financial statements are an integral part of this statement.
27
Other Governmental
Total Governmental
ASSETS
General Fund
Streets
Funds
Funds
Cash and investments
$
15,180,526
$
13,125,732
$
18,202,288
$
46,508,546
Accounts receivables, net
7,190,261
2,128,815
324,113
9,643,189
Property taxes receivables
92,539
-
-
92,539
Interest receivable
4,218
4,619
5,889
14,726
Due from other governmental agencies
10,651,086
908,795
65,817
11,625,698
Inventory
-
-
1,776
1,776
Prepaid
53,739
-
-
53,739
Restricted cash and investments
15,641,640
298,541
862,282
16,802,463
Total assets
$
48,814,009
$
16,466,502
$
19,462,165
$
84,742,676
LIABILITIES
Accounts payable and other liabilities
$
7,302,047
$
2,298,592
$
1,091,245
$
10,691,884
Accrued salaries and wages
107,840
10,020
42,381
160,241
Advances from other funds
-
-
148,875
148,875
Unearned revenue
-
-
83,897
83,897
Total liabilities
7,409,887
2,308,612
1,366,398
11,084,897
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
714,024
24,037
238,698
976,759
Total deferred inflows of resources
714,024
24,037
238,698
976,759
FUND BALANCES
Nonspendable
Inventory
-
-
1,776
1,776
Prepaid
53,739
-
-
53,739
Restricted
Road -related projects
-
13,835,312
85,231
13,920,543
Home and CDBG program
-
(585,276)
(585,276)
Public safety
165,163
165,163
Community development
6,410,945
6,410,945
Debt service
-
-
2,239
2,239
Pension
15,641,640
298,541
862,282
16,802,463
Special assessments
-
-
362,908
362,908
Committed
Video - related capital projects
557,686
-
557,686
Parks, recreation and community services
-
913,705
913,705
Assigned
Capital projects
-
9,638,096
9,638,096
Unassigned
24,437,033
-
-
24,437,033
Total fund balances
40,690,098
14,133,853
17,857,069
72,681,020
Total liabilities, deferred inflows of resources
and fund balances
$
48,814,009
$
16,466,502
$
19,462,165
$
84,742,676
The notes to financial statements are an integral part of this statement.
27
CITY OF LODI
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2021
Fund balances - total governmental funds
$ 72,681,020
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 funds.
Nondepreciable capital assets
28,563,701
Depreciable capital assets, net
108,419,560
Internal Service Fund capital asset
(18,814)
Deferred outflows of resources related to pensions & OPEB reported in government -wide statement of net position
17,005,414
Deferred inflows of resources related to pensions & OPEB are reported in government -wide statement of net position
(6,786,959)
Deferred outflows of resources related to unamortized losses on defeasance are not reported in governmental funds.
273,847
Amounts reported in Internal Service Funds
Deferred outflows of resources related to pensions & OPEB
(1,845,173)
Deferred inflows of resources related to pensions & OPEB
6,246,100
Long-term liabilities and related accounts are not due and payable in the current period
and therefore are not reported in the governmental funds as follows:
Accrued Interest
(165,303)
Long-term liabilities - Due within one year
(9,105,409)
Long-term Liabilities - Due in more than one year
(26,049,643)
Net pension liability
(114,251,141)
Net OPEB liability
(19,969,043)
Long-term liabilities reported in the Internal Service Funds
Net pension liability
1,731,939
Net OPEB liability
19,969,043
Accrued compensated absences
6,714,211
Self-insurance liability
9,482,536
Unavailable revenue reported in governmental funds was
recorded as revenue in the statement of activities.
976,759
Internal service funds are used by management to charge the costs of general
liability insurance, workers' compensation insurance, health benefits insurance,
other insurance, employee benefits and the cost of operating and maintaining the
City's fleet to individual funds. The assets and liabilities of the internal service funds
are included in governmental activities in the statement of net position.
(19,820,518)
Net position of governmental activities
$ 74,052,126
The notes to financial statements are an integral part of this statement.
28
CITY OF LODI
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2021
REVENUES
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits, and penalties
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
General government
Public protection
Public works
Community development
Library
Parks and recreation
Capital outlay
Debt service:
Interest
Principal retirement
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Other Governmental Total Governmental
General Fund Streets Funds Funds
$ 31,697,986 $
$
$
31,697,986
24,302,433
Transfers out
(5,458,817)
24,302,433
69,004
(6,340,176)
2,551,510
2,620,514
15,116,622
6,774,637
765,877
22,657,136
2,598,283
1,511,609
5,971,088
10,080,980
217,097
-
-
217,097
4,640,812
166,969
384,935
5,192,716
494,747
228,186
542,543
1,265,476
79,136,984
8,681,401
10,215,953
98,034,338
23,829,150
-
2,018,538
25,847,688
38,005,919
-
104,210
38,110,129
2,743,906
2,849,603
961,969
6,555,478
-
-
2,126,650
2,126,650
1,024,617
-
1,024,617
-
-
2,827,449
2,827,449
4,743,316
2,099,325
6,842,641
-
694,616
694,616
-
-
1,144,218
1,144,218
65,603,592
7,592,919
11,976,975
85,173,486
13,533,392
1,088,482
(1,761,022)
12,860,852
Transfers in
4,697,816
287,509
5,802,968
10,788,293
Transfers out
(5,458,817)
-
(881,359)
(6,340,176)
Proceeds from sale of property
14,666
13,865
-
28,531
Total other financing sources (uses)
(746,335)
301,374
4,921,609
4,476,648
Net change in fund balances
12,787,057
1,389,856
3,160,587
17,337,500
Fund balances - beginning, as restated (Note 16)
27,903,041
12,743,997
14,696,482
55,343,520
Fundbalances- ending $
40,690,098 $
14,133,853 $
17,857,069 $
72,681,020
The notes to financial statements are an integral part of this statement.
29
CITY OF LODI
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2021
Changes in fund balances - total governmental funds
$ 17,337,500
Amounts reported for governmental activities are different because:
(358,262)
Governmental funds report capital outlays as expenditures. However, in the
(26,936)
statement of activities the cost of those assets is allocated over their estimated
53,830
useful lives and reported as depreciation expense. In addition, contributed capital
(184,231)
assets do not impact the governmental funds however they are reported in the
(13,176)
statement of activities.
931,348
Capital outlays, capital asset contributions, and depreciation expense are as follows:
(2,462,912)
Capital outlays
6,842,641
Capital asset contributions
5,759,081
Depreciation expense
(8,607,648)
Less: Internal service fund depreciation
1,447
Repayments of the principal are expenditures in the governmental funds, but the repayments
reduce long-term liabilities in the statement of net position.
Principal payment
1,144,218
Internal service funds are used by management to charge the costs of general
liability insurance, workers' compensation insurance, health benefits insurance,
other insurance, employee benefits and the cost of operating and maintaining the
City's fleet to individual funds. The net loss income of the internal service
funds are reported with governmental activities. 3,224,327
Other expenses in the statement of activities that do not use current financial resources are not reported as
expenditures in the governmental funds.
Change in compensated absences and sick leave conversion balance
1,200,685
Less Internal Service Funds compensated absences
(358,262)
Amortization of loss on defeasance
(26,936)
Amortization of bond premium
53,830
Change in unavailable revenue
(184,231)
Change in accrued interest
(13,176)
Change in net pension liability and related amounts
931,348
Change in OPEB obligation and related amounts
(2,462,912)
Change in net position of governmental activities
$ 24,841,912
The notes to financial statements are an integral part of this statement.
30
ASSETS
Current assets:
Cash and investments
Restricted cash and investments
Account receivables, net
Interest Receivable
Due from other governmental agencies
Advance receivables - NCPA
Inventory
Other assets
Total current assets
Noncurrent assets:
Restricted assets with fiscal agents
Restricted cash and investments
Advances to other funds
Capital assets:
Nondepreciable
Depreciable, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasance of debt
Related to OPEB
Related to pensions
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable and other liabilities
Accrued salaries and wages
Accrued interest
Unearned revenue
Loans payable
Accrued compensated absences
Pollution remediation obligation
Certificates of participation and revenue
bonds payable
Total current liabilities
Noncurrent liabilities:
Loans payable
Self insurance liability
Accrued compensated absences
Certificates of participation and revenue
bonds payable
Net pension liability
Net OPEB liability
Pollution remediation obligation
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Pensions
Pollution Remediation
Unrestricted (deficit)
Total net position
CITY OF LODI
Statement of Net Position
Proprietary Funds
June 30, 2021
Business -type Activities
Electric
Wastewater
Water
$ 29,975,250
$ 26,591,516 $
13,946,796
-
-
12,790,247
6,014,293
1,638,602
1,095,555
9,443
8,417
8,068
12,189,516
-
-
4,483,387
46,900
528,238
13,490
787,219
6,292
52,685,379
28,285,435
28,375,196
4,207,819
58,363,258
4
2,510,196
2
1,991,595
734,201
734,201
-
-
148,875
1,677,348
6,081,478
7,195,478
41,376,378
85,493,919
94,980,181
45,045,325
94,819,794
103,058,737
97, 730, 704
12 3,105, 229
131,433,933
4,075,234
1,639,936
(376,581)
35,758
195,629
109,544
3,280, 677
1,986, 733
187,018
7,391,669
3,822,298
(80,019)
2,596,539
278,336
3,760,361
66,504
42,902
7,118
633,670
348,683
83,104
-
-
660,104
224,178
-
-
245,146
466,132
56,009
-
-
400,000
2,842,246
2,267,967
1,100,646
6,608,283
3,404,020
6,067,342
229,405
337,083 291,512 44,843
39,977,828
35,035,280
27,517,401
19,316,608
11,697,875
1,101,164
460,374
2,518,662
1,410,353
-
-
14,982,824
60,321,298
49,543,329
45,056,585
66,929,581
52,947,349
51,123,927
52,300
31,672
2,981
143,892
787,219
440,812
196,192
818,891
443,793
4,207,819
58,363,258
72,735,691
4
2,510,196
2
1,991,595
734,201
734,201
-
-
12,790,247
31,797,182
11,553,632
(6,473,947)
$ 37,996,600 $
73,161,287 $
79,786,194
The notes to financial statements are an integral part of this statement. 31
CITY OF LODI
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
ASSETS
Current assets:
Cash and investments
Restricted cash and investments
Account receivables, net
Interest Receivable
Due from other governmental agencies
Advance receivables - NCPA
Inventory
Other assets
Total current assets
Noncurrent assets:
Restricted assets with fiscal agents
Restricted cash and investments
Advances to other funds
Capital assets:
Nondepreciable
Depreciable, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasance of debt
Related to OPEB
Related to pensions
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable and other liabilities
Accrued salaries and wages
Accrued interest
Unearned revenue
Loans payable
Accrued compensated absences
Pollution remediation obligation
Certificates of participation and revenue
bonds payable
Total current liabilities
Noncurrent liabilities:
Loans payable
Self insurance liability
Accrued compensated absences
Certificates of participation and revenue
bonds payable
Net pension liability
Net OPEB liability
Pollution remediation obligation
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Pensions
Pollution Remediation
Unrestricted (deficit)
Total net position
Governmental
Business -type Activities Activities
Non -Major
Transit Funds Total Enterprise Funds Internal Service Funds
$ 673,028 $
71,186,590 $
22,061,050
-
12,790,247
188,375
1,502,042
10,250,492
226,503
225
26,153
6,695
3,380,389
3,380,389
-
-
12,189,516
-
5,058,525
203,343
-
19,782
117,598
5,555,684
114,901,694
22,803,564
- 2,510,202
99,528 3,559,525
- 148,875
1,784,101 16,738,405 -
14,721,102 236,571,580 18,814
16,604, 731 259,528, 587 18,814
22,160,415 374,430,281 22,822,378
5,338,589 -
- 340,931 1,551,025
133,904 5,588,332 294,148
133,904 11,267,852 1,845,173
566,165 7,201,401 338,068
3,143 119,667 6,172
- 1,065,457 -
660,104
- 224,178 -
41,168 808,455 57,443
- 400,000 -
- 6,210,859 -
610,476 16,690,121 401,683
229,405 -
- - 9,482,536
224,278 897,716 6,656,768
-
102,530,509
-
788,422
32,904,069
1,731,939
-
4,389,389
19,969,043
-
14,982,824
-
1,012,700
155,933,912
37,840,286
1,623,176
172,624,033
38,241,969
2,135
89,088
4,689
-
1,371,923
6,241,411
2,135
1,461,011
6,246,100
16, 505, 203
151, 811, 971
18,814
-
2,510,202
-
99,528
3,559,525
-
12,790,247
4,064,277
40,941,144
(19,839,332)
$ 20,669,008 $
211,613,089 $
(19,820,518)
The notes to financial statements are an integral part of this statement. 32
CITY OF LODI
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2021
The notes to financial statements are an integral part of this statement.
33
Business -type Activities
Electric
Wastewater
Water
OPERATING REVENUES
Charges for services
$ 74,197,234
$ 16,780,674 $
14,106,809
OPERATING EXPENSES
Personnel services
9,481,228
3,818,107
2,457,115
Supplies, materials and services
12,994,460
1,124,344
901,733
Utilities
41,562,943
863,579
727,216
Depreciation
1,978,200
4,647,540
3,212,895
Claims
-
-
-
Total operating expenses
66,016,831
10,453,570
7,298,959
Operating income (loss)
8,180,403
6,327,104
6,807,850
NONOPERATING REVENUES (EXPENSES)
Investment income
1,135,011
638,685
362,266
Interest expense
(2,290,148)
(1,229,713)
(842,554)
Operating grants
-
379,098
260,505
Greenhouse gas allowance
1,908,549
-
-
Other revenues
2,334,325
599,913
679,042
Gain on sale of city property
-
22
31,026
Total nonoperating revenues (expenses)
3,087,737
388,005
490,285
Income (loss) before contributions and
transfers
11,268,140
6,715,109
7,298,135
Capital contributions
567,681
2,241,113
1,165,001
Transfers In
-
41,600
-
Transfers out
(2,285,270)
(1,084,699)
(853,449)
Change in net position
9,550,551
7,913,123
7,609,687
Total net position (deficit) - beginning
28,446,049
65,248,164
72,176,507
Total net position (deficit) - ending
$ 37,996,600
$ 73,161,287 $
79,786,194
The notes to financial statements are an integral part of this statement.
33
CITY OF LODI
Statement of Revenues, Expenses, and Changes in Net Position (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
OPERATING REVENUES
Charges for services
OPERATING EXPENSES
Personnel services
Supplies, materials and services
Utilities
Depreciation
Claims
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Operating grants
Greenhouse gas allowance
Other revenues
Gain on sale of city property
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Capital contributions
Transfers In
Transfers out
Change in net position
Total net position (deficit) - beginning
Total net position (deficit) - ending
432,830 25,714,214
1,146,260 5,120,055
- 41,600
(266,299) (4,489,717)
1,312,791 26,386,152
3,224,327
3,224,327
19,356,217 185,226,937 (23,044,845)
$ 20,669,008 $ 211,613,089 $ (19,820,518)
The notes to financial statements are an integral part of this statement.
34
Governmental
Business -type Activities
Activities
Non -Major
Transit Funds
Total Enterprise Funds
Internal Service Funds
$ 69,924
$ 105,154,641
$ 18,112,304
467,122
16,223,572
(203,973)
2,800,465
17, 821, 002
10, 943, 011
49,920
43,203,658
11,927
1,017,303
10,855,938
1,447
-
-
4,941,487
4,334,810
88,104,170
15,693,899
(4,264,886)
17,050,471
2,418,405
87,069
2,223,031
199,438
-
(4,362,415)
-
4,317,946
4,957,549
-
1,908,549
-
290,709
3,903,989
596,868
1,992
33,040
9,616
4,697,716
8,663,743
805,922
432,830 25,714,214
1,146,260 5,120,055
- 41,600
(266,299) (4,489,717)
1,312,791 26,386,152
3,224,327
3,224,327
19,356,217 185,226,937 (23,044,845)
$ 20,669,008 $ 211,613,089 $ (19,820,518)
The notes to financial statements are an integral part of this statement.
34
CITY OF LODI
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Business -type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement.
35
Electric
Wastewater
Water
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
$
74,222,048
$
17,053,642
$
14,602,029
Cash from interfund customers
-
-
-
Payments to suppliers
(54,742,194)
(1,327,358)
(992,177)
Payments to employees
(9,640,634)
(4,201,536)
(3,910,135)
Due from other funds charges for services
-
(841,241)
(709,384)
Net cash provided (used) by operating activities
9,839,220
10,683,507
8,990,333
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating grants
-
379,098
260,505
Repaid from other funds
-
-
295,587
Received - greenhouse gas allowance
1,908,549
-
Sale of property
-
22
5,763
Transfers out
(9,244,649)
(1,084,699)
(853,449)
Transfer in
6,959,379
41,600
Net cash provided (used) by noncapital financing
activities
(376,721)
(663,979)
(291,594)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Fees received for water meter installations
71,322
Acquisition and construction of capital assets
(2,951,754)
(5,622,136)
(7,726,503)
Fees received from developers
567,681
2,241,113
1,165,001
Capital grants received
-
-
-
Principal payments on debt
(2,469,027)
(1,889,846)
(1,040,000)
Interest payments on debt
(1,954,477)
(1,431,810)
(1,016,233)
Net cash provided (used) by capital and related
financing activities
(6,807,577)
(6,702,679)
(8,546,413)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
668,952
349,961
355,416
Net cash provided by investing activities
668,952
349,961
355,416
Net increase (decrease) in cash and cash equivalents
3,323,874
3,666,810
507,742
Balances - beginning of year
28,642,975
23,999,253
26,963,504
Balances - end of the year
$
31,966,849
$
27,666,063
$
27,471,246
Reconciliation to the statement of net position:
Cash and investments
$
29,975,250
$
26,591,516
$
13,946,796
Restricted cash and investments
-
-
12,790,247
Restricted assets with fiscal agents
4
2,510,196
2
Restricted cash and investments
1,991,595
734,201
734,201
Less: Guaranteed Investment Contract
-
(2,169,850)
-
Total cash and cash equivalents
$
31,966,849
$
27,666,063
$
27,471,246
The notes to financial statements are an integral part of this statement.
35
CITY OF LODI
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
Business -type Activities - Enterprise Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation Expense
Other revenues
Changes in assets, liabilities and deferred outflow/inflows
of resources:
Loans receivable
Customer Receivables
Advance receivable
Inventory
Other assets
Deferred inflows of resources
Deferred outflows of resources
Compensated absences
Accounts Payable - Supplier
Accrued salaries and wages
Net pension liability, OPEB and related amounts
Self-insurance liability
Pollution remediation obligation
Net cash provided by operating activities
Noncash investing, capital and financing activities:
Capital asset contributions
Amortization of issuance premium
Amortization of losses on defeasance
Total noncash investing, capital and financing activities
Electric Wastewater Water
$ 8,180,403 $ 6,327,104 $ 6,807,850
1,978,200 4,647,540 3,212,895
2,334,325 599,913 607,720
52,196
(2,084,444) (326,939) (114,257)
(248,957) -
(286,537) 779 (54,181)
(13,490) - (3,780)
(286,825)
69,742
3,664
(49,882)
(177,209)
222,901
60,758
42,898
7,118
203,473
(500,321)
(811,215)
-
-
(888,382)
$ 9,839,220 $
10,683,507 $
8,990,333
$ 567,681
2,241,113 $
1,165,001
(376,175)
297,292
188,063
477,246
-
-
$ 668,752 $
2,538,405 $
1,353,064
The notes to financial statements are an integral part of this statement.
W,
CITY OF LODI
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
The notes to financial statements are an integral part of this statement.
37
Business -type Activities - Enterprise Funds
Governmental Activities
Non -Major
Transit Fund
Total
Enterprise Funds
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
$
360,649
$
106,238,368
$
837,396
Cash from interfund customers
-
-
17,791,751
Payments to suppliers
(2,528,346)
(59,590,075)
(15,148,292)
Payments to employees
(442,102)
(18,194,407)
(2,089,786)
Due from other funds
(42,540)
(1,593,165)
-
Net cash provided (used) by operating activities
(2,652,339)
26,860,721
1,391,069
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Operating grants
3,364,373
4,003,976
-
Repaid from other funds
(237,449)
58,138
Received - greenhouse gas allowance
-
1,908,549
Sale of property
1,992
7,777
Transfers out
(266,299)
(11,449,096)
Transfer in
-
7,000,979
Net cash provided (used) by noncapital financing
activities
2,862,617
1,530,323
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Fees received for water meter installations
-
71,322
Acquisition and construction of capital assets
(769,213)
(17,069,606)
Fees received from developers
-
3,973,795
Capital grants received
1,164,196
1,164,196
Principal payments on debt
-
(5,398,873)
Interest payments on debt
-
(4,402,520)
Net cash provided (used) by capital and related
financing activities
394,983
(21,661,686)
-
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
86,667
1,460,996
208,367
Net cash provided by investing activities
86,667
1,460,996
208,367
Net increase (decrease) in cash and cash equivalents
691,928
8,190,354
1,599,436
Balances - beginning of year
80,628
79,686,360
20,649,989
Balances - end of the year
$
772,556
$
87,876,714
$
22,249,425
Reconciliation to the statement of net position:
Cash and investments
$
673,028
$
71,186,590
$
22,061,050
Restricted cash and investments
-
12,790,247
188,375
Restricted assets with fiscal agents
-
2,510,202
-
Restricted cash and investments
99,528
3,559,525
Less: Guaranteed Investment Contract
-
(2,169,850)
-
Total cash and cash equivalents
$
772,556
$
87,876,714
$
22,249,425
The notes to financial statements are an integral part of this statement.
37
CITY OF LODI
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
Business -type Activities - Enterprise Funds Governmental Activities
Non -Major
Transit Fund Total Enterprise Funds Internal Service Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation Expense
Other revenues
Changes in assets, liabilities and deferred outflow/inflows
of resources:
Loans receivable
Customer Receivables
Advance receivable
Inventory
Other assets
Deferred inflows of resources
Deferred outflows of resources
Compensated absences
Accounts Payable - Supplier
Accrued salaries and wages
Net pension liability, OPEB and related amounts
Self-insurance liability
Pollution remediation obligation
Net cash provided (used) by operating activities
Noncash investing, capital and financing activities:
Capital asset contributions
Amortization of issuance premium
Amortization of losses on defeasance
Total noncash investing, capital and financing activities
$
(4,264,886) $
17,050,471
$
2,418,405
1,017,303
10,855,938
1,447
290,709
3,832,667
606,484
-
52,196
-
(2,525,640)
(89,644)
(248,957)
(339,939)
(27,801)
(17,270)
(1,491)
(369,789)
-
1,206
102,741
(110,678)
242,827
279,499
275,309
(77,580)
3,143
113,917
6,172
(80,848)
(1,188,911)
(2,136,618)
817,451
(888,382)
-
$
(2,652,339) $
26,860,721
$
1,391,069
$
1,146,260 $
5,120,055
$
-
-
109,180
-
477,246
$
1,146,260 $
5,706,481
$
The notes to financial statements are an integral part of this statement.
38
CITY OF LODI
Statement of Fiduciary Net Position
June 30, 2021
ASSETS
Cash and investments
Interest receivable
Total assets
LIABILITIES
Deposits payable
Private -Purpose Trust
Funds
172,795
172,796
NET POSITION $ 172,796
The notes to financial statements are an integral part of this statement.
39
CITY OF LODI
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2021
ADDITIONS
Investment and rental income
DEDUCTIONS
Current:
Library
Change in Fiduciary Net Position
Net Position - beginning of the year
Net Position - end of the year
Private -Purpose Trust
Funds
31,211
1,398
29,813
142,983
$ 172,796
The notes to financial statements are an integral part of this statement.
40
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CITY OF LODI
Notes to Basic Financial Statements
June 30, 2021
Note 1— Summary of Significant Accounting Policies
A. The Financial Reporting Entity
The City of Lodi (City) was incorporated on December 6, 1906, as a municipal corporation under the General Laws
of the State of California. The City operates under a Council -Manager form of government and provides the
following services: general government, public works, community development, public protection (police and fire),
public utilities, library, parks and recreation.
The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to
governments in the United States of America. The Governmental Accounting Standards Board (GASB) is the
accepted standard setting body for governmental accounting and financial reporting principles.
An elected five -member council governs the City of Lodi. As required by GAAP, these financial statements present
the City and its component units, entities for which the City is considered to be financially accountable. The
component units, although legally separate entities, are, in substance, part of the City's operations and therefore,
their activities are blended with data of the City.
Blended Component Units
The blended component units of the City are as follows:
The Lodi Public Financing Authority (LPFA) was created by a Joint Exercise of Powers Agreement between the City
and the Industrial Development Authority (IDA) on July 21, 2010, for the purpose of assisting the City in the
financings of public capital improvements. The 2010 Water Revenue Bonds Series A and B were issued in October
2010 to provide funds for a new water treatment facility. On September 1, 2012, the $19,080,000 Refunding Lease
Revenue Bonds (2012 LRB) were issued to prepay and cause the immediate defeasance of the outstanding
$21,025,000 Certificates of Participation (2002 COP). The 2002 COP were issued in January 2002 to provide funds to
finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to finance
portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation. The
$17,105,000 2012 Refunding Wastewater Revenue Bonds (2012 Bonds) were also issued in September 2012 to
advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation
(2004 COP). The 2004 COP were issued to provide funds to finance the costs of certain improvements to the
wastewater collection, treatment and disposal system of the City. The 2016 Refunding Wastewater Revenue Bonds
(2016 Bonds) were issued to refinance $21,415,000 principal amount of the 2007 Wastewater System Revenue
Certificates of Participation (2007 COP). On December 1, 2017 the City issued $7,762,794 2017 Installment
Purchase Agreement for a current refunding for the $7,555,000 principal amount of the 2007 Wastewater Revenue
Certificates of Participation. On June 13, 2018, the City issued $41,610,000 Electric System Revenue Bonds (2018
Bonds) to allow the prepayment and cause immediate defeasance of the outstanding $55,785,000 Certificates of
Participation (Electric System Revenue Certificates of Participation 2008 Series A). In April 2020, the City issued
$25,390,000 2020 Refunding Water Revenue Bonds, Series A (2020 Bonds) to redeem all of the outstanding
$29,650,000 principal of the 2010 Water Revenue Bonds Series B, (Federally Taxable — Build America Bonds —
Direct Payment).
The City Council constitutes the Board of Directors of LPFA. The funds of LPFA have been included in the
governmental activities, Enterprise (Wastewater and Water and Electric) Funds and in the accompanying basic
financial statements.
[y:
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the non -fiduciary activities of the primary government and its component units. For
the most part the effect of interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from business -
type activities that rely, to a significant extent, on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government -wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, as are the proprietary fund and private -purpose trust fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grant
and similar items are recognized as revenue as soon as all eligibility requirements have been met. Agency funds
use the accrual basis of accounting.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. The City considers property tax revenues to be available if
they are collected within 60 days of the end of the current fiscal year. All other revenues are considered to be
available if they are generally collected within 120 days of the end of the current fiscal period. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to vacation, sick leave, claims and judgments, are recorded only
when payment is due.
Property taxes, other local taxes, licenses, intergovernmental revenues, and interest associated with the current
fiscal period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal
period. All other revenues are considered to be measurable and available when the City receives cash.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services in connection with the fund's principal ongoing operations. The
principal operating revenues of the City's enterprise funds, and internal service funds are charges for customer
services including electric, wastewater, water and public transportation fees. Operating expenses for enterprise
funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
43
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the City except
those required to be accounted for in another fund.
The Streets Fund accounts for Gas Tax revenues apportioned to the City under the State Streets and Highway Code,
impact fees charged to provide for the building of various storm drains and street improvements needed to serve
new developments, and to account for funds apportioned to the City for sales tax collections under Measure K.
The City reports the following major proprietary (enterprise) funds:
The Electric Fund accounts for the provision of electric services to the residents of the City. All activities necessary
to provide such services are accounted for in this fund, including but not limited to, source of supply, overhead,
systems maintenance, customer service, engineering, administration, capital improvements, and maintenance and
debt service.
The Wastewater Fund accounts for the provision of wastewater collection and treatment services to the residents
of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited
to, administration, operations, maintenance, improvements and debt service.
The Water Fund accounts for the provision of water to the residents of the City as well as some customers in the
San Joaquin County (County). All activities to provide such services are accounted for in this fund, including, but not
limited to administration, operations, distribution, maintenance, capital improvements and debt service.
Additionally, the City reports the following fund types:
The Internal Service Funds account for the City's claims, benefits, fleet services and equipment/vehicle
replacement.
Private -Purpose Trust Funds are used to account for trust agreements under which the principal and income
benefit individuals, private organizations or other governments. They were established to account for assets held
and invested by the Library Board as trustee; and to account for assets held by the City in accordance with a trust
agreement on behalf of the Hutchins Square. These funds can only be spent in accordance with the trust
agreements.
The effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to
this rule are charges to other City departments from the Electric, Wastewater, Water and Transit Funds. These
charges have not been eliminated because elimination would distort the direct costs and program revenues
reported in the statement of activities.
D. Cash and Investments
The City maintains a cash and investment pool that is available for all funds of the City for the purpose of
increasing interest earnings through investment activities. Investments are generally stated at fair value with the
exception of guaranteed investment contracts, which are stated at cost. Income earned or losses arising from the
investment of pooled cash are allocated to various funds based on month-end cash balances in accordance with
California Government Code Section 53647. Changes in fair value of investments are recognized as a component of
investment income.
44
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
E. Restricted Cash and Investments
The City accounts for certain settlement payments for environmental remediation as restricted with the
understanding that these funds will be used exclusively for environmental cleanup, investigation or remediation
expenses incurred by the City in the specified areas and that they will not be used for the payment of legal or
technical fees. These funds are accounted for in the Water Fund.
The City has invested in the Public Agency Retirement Services (PARS) for the PARS Public Agencies Post -
Employment Benefits Trust. This trust is to be used only for the payment of such post -employment benefits for
retirees. These funds are accounted for in the General Fund; Streets; Parks, Recreation and Community Services;
Community Development; Electric Utility; Wastewater; Water; Fleet and Non -major Transit Funds.
F. Restricted Cash and Investments with Fiscal Agents
Restricted assets represent the proceeds from debt and other cash and investments held by fiscal agents by
agreement that meet the definition of cash and cash equivalents, with the exception of a $2,169,850 guaranteed
investment contract held in the Wastewater Fund which is a long-term investment.
In the Electric Fund, restricted assets represent the proceeds of the 2018 Electric Bonds restricted for debt service.
In the Wastewater Fund, the restricted assets represent the proceeds of the 2004A, the 2016A Refunding
Wastewater Revenue Bonds and the 2017 Installment Purchase Agreement issued for improvements to the City's
Wastewater collection, treatment and disposal system. In the Water Fund, restricted assets represent the proceeds
of the 2010A Revenue Bonds issued for the purpose of providing funds to pay the cost of a new Water Treatment
Facility and the 2020 Water Refunding Series A Bonds.
G. Receivables
Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end)
are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the
City, are sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue
and certain charges for services.
Federal and State grants are considered receivable and accrued as revenue when all eligibility requirements have
been met under the accrual basis of accounting in the government -wide statement of net positions. The amount
recognized as revenue under the modified accrual basis of accounting in the governmental funds is limited to the
amount that is deemed measureable and available.
Billed but not collected and unbilled utility revenue earned is recognized as revenue and accounts receivable in the
enterprise funds.
H. Loan Receivables
Loans receivable reported in the HOME Program and Community Development Block Grants Special Revenue Fund
represent funds loaned to first-time homebuyers. Loans receivable in the Electric Enterprise Fund represent loans
to eligible industrial and commercial customers participating in the Lodi Energy Efficiency Financing Pilot Project.
45
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
H. Loan Receivables (Continued)
In December 2009, the City entered into a contractual relationship with the California Department of Housing and
Community Development (HCD) to administer a First-time Homebuyers Program. The loan program is intended to
provide deferred down -payment assistance to first-time homebuyers who are at or below 80% of the median
income, for the purchase of homes within Lodi. The loan bears 2% interest and is due and payable 30 years from
close of escrow, upon transfer of the property or when the home is no longer owner -occupied, whichever comes
first. At June 30, 2021, the outstanding balance of these loans amounted to $65,816, which the City included in due
from other governmental agencies.
In December 2012, the City increased the loan funds in its public benefits program from which G2, G3, G4, G5 or 11
electric utility rate commercial and industrial customers may borrow money to implement energy conservation
projects in their facilities. The loan is at zero interest rate payable in two years capped at $150,000 per customer.
As of June 30, 2021, a total of twenty-three loans to industrial and commercial customers have been approved. At
June 30, 2021, there were three outstanding loans, with a balance of $37,899.
Property Taxes
The County is responsible for assessing, collecting and distributing property taxes in accordance with enabling
legislation. Revenue received is based on an allocation factor calculated by the County under the provisions of
Proposition 13, plus a percentage of the increase in market value in specific areas. The City's property tax lien is
based on the assessed value listed as of the prior January 1st for all real and personal property located in the City.
Property sold after the assessment date (January 1st) is reassessed and the amount of property tax assessed is
prorated. The assessed value at January 1, 2021, upon which the 2020-21 levy was based, was $6,900,922,739.
Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1.
The tax becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July
1, due on July 31 and becomes delinquent after August 31.
Property taxes levied for the year ended June 30, 2021, are recorded as receivables. Property taxes paid to the City
by the County within 60 days of the fiscal year-end are considered "available" and are, therefore, recognized as
revenue in governmental funds.
In 1993, the City made an agreement with the San Joaquin County to participate in the Teeter Plan. The Teeter plan
is an alternative method of apportioning property tax money. The City receives 95% of the property taxes in
advance from the County and the 5% remaining after reconciling the City's balance at June 30. As part of the
agreement, the County keeps the penalties and interest on the delinquent taxes.
J. Due From/Due To Other Funds, Advances To/Advances From Other Funds, and Internal Balances
During the course of operations, numerous transactions occur between individual funds for goods provided or
services rendered. In the fund financial statements, these receivables and payables are classified as "due from
other funds" or "due to other funds". Long-term interfund loans receivable are reported as "advances to other
funds". The corresponding long-term interfund loans payable are reported as "advances from other funds". In the
government -wide financial statements, these receivables and payables are eliminated within the governmental
activities and business -type activities columns. Receivables and payables between the governmental activities and
the business -type activities are classified as internal balances.
46
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
K. Transfers
In the fund financial statements, interfund transfers are recorded as transfers in (out) except for transactions that
are described below:
Charges for services are recorded as revenues of the performing fund and expenditures/expenses of the requesting
fund. Unbilled costs are recognized as an asset of the performing fund at the end of fiscal year.
Reimbursements for expenditures/expenses, initially made by one fund that is properly applicable to another fund,
are recorded as expenditures/expenses in the reimbursing fund and as a reduction of expenditures/expenses in the
fund that is reimbursed.
L. Long-term Obligations
In the government -wide financial statements and in the proprietary 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 statement of net position. Bond premiums are deferred and amortized over the life
of the bonds. Bonds payable are reported net of the applicable bond premium. Losses occurring from advance
refunding are reported as deferred outflows of resources and amortized as an expense for both governmental and
business -type activities.
M. Advance Receivable
Advance receivable reported in the Electric Enterprise Fund represents the City's portion of the Northern California
Power Agency's (NCPA) General Operating Reserve that is refundable upon demand by the City (See Note 11).
N. Inventory
Other governmental funds inventories are recorded at cost and are recognized as expenditures when consumed
rather than when purchased. For the proprietary fund types, inventories are recorded at cost using the weighted
average cost method, which approximates market, and expense is recognized when inventories are consumed in
operations.
O. Deferred Outflows and Inflows of Resources
Unamortized Losses on Defeasance
Deferred outflows of resources reported in the Wastewater Enterprise Fund include the refunding loss incurred on
the issuance of the 2012 Refunding Revenue Bonds amortized over 11 years, and the 2016 Refunding Revenue
Bonds amortized over 21 years. Deferred outflows of resources reported in the Electric Utility Enterprise Fund
include the 2018 Revenue Refunding Bonds amortized over 14 years. Deferred outflows of resources in the Water
Enterprise Fund include the 2020 Water Revenue Refunding Bonds amortized over 20 years. Deferred outflows of
resources reported in the governmental activities represent the refunding loss incurred with the issuance of the
2012 Refunding Lease Revenue Bonds.
Related to Pensions
Pension contributions made in the current year, changes of assumptions, difference between expected and actual
experience and the net difference between projected and actual earnings on plan investments are reported as
deferred outflows or deferred inflows of resources per GASB Statement No. 71 as the CalPERS' valuation
measurement date is June 30, 2020. These amounts are to be recognized in future pension expense and the
amortization period differs depending on the source of the gain or loss.
47
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
O. Deferred Outflows and Inflows of Resources(Continued)
Ralatarl to nPFR
OPEB contributions made in the current year are reported as deferred outflows of resources per GASB Statement
No. 71 as the CalPERS' valuation measurement date is June 30, 2020. Those contributions will be recognized as a
reduction of the net OPEB liability in the year ending June 30, 2021. Plan earnings in excess of earnings projected,
changes in assumptions, differences between expected and actual experience in the OPEB actuarial report are
reported as deferred outflows or inflows of resources.
Unavailable Revenue
The unavailable revenue in the governmental funds is related to the HCD's First-time Homebuyers Program,
Development Impact Fees, and miscellaneous revenue for various projects. All fees are expected to be repaid in
full.
P. Capital Assets
Capital assets, which include land, works of art, buildings and improvements, machinery and equipment, vehicles,
infrastructure (e.g., streets, streetlights, traffic signals, sidewalks, and bridges), and electric lines, wastewater lines
and storm drains are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements and in the proprietary funds financial statements. Capital assets are defined
by the City as assets with individual cost of $10,000 or more and have an estimated useful life in excess of two
years. Such assets are recorded at historical cost. Donated capital assets are recorded at acquisition value at the
date of donation. Capital outlay is recorded as expenditures in the General Fund and other governmental funds
and as assets in the government -wide financial statements to the extent the City's capitalization threshold is met.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset
useful lives are not capitalized. As required by the Governmental Accounting Standards Board Statement No. 34,
beginning July 1, 2002, the City has capitalized infrastructure, primarily its network of streets, as part of the capital
assets shown in the governmental activities column on the government -wide statement of net position. This
capitalization included infrastructure that could be identified and has been acquired since July 1, 1980.
Depreciation of capital assets is provided on the straight-line basis over the following estimated useful lives:
Years
Buildings and improvements 3-40
Machinery and equipment 2-40
Vehicles 5-15
Infrastructure 10-50
Q. Compensated Absences/Vacation and Sick Leave
The City accrues for compensated absences, in the government -wide financial statements and the proprietary
funds financial statements, to pay its employees for the unused vacation, compensatory time, and miscellaneous
leave. The City is not obligated to pay for unused sick leave if employees terminate prior to retirement.
48
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
Q. Compensated Absences/Vacation and Sick Leave (Continued)
Employees hired prior to July 1, 1994, after 10 years with the City and only upon retirement, may convert their
accumulated sick leave time to medical insurance premiums under the following options: bank or conversion. The
bank option converts the unused sick leave into a dollar amount that will be placed into a "bank" to be used for
medical insurance premiums for the employee. The conversion option takes the unused sick leave and converts it
to days and the City will pay the medical insurance premiums for the employee for each day after conversion until
the balance is exhausted.
R. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the
Miscellaneous and Safety Plans (Plans) and additions to/deductions from the Plans' fiduciary net position have
been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value.
The following timeframes are used for Pensions reporting:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020
S. Other Post -Employment Benefits (OPEB)
For purposes of measuring the Net OPEB liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and OPEB expense, information about the fiduciary net position of the plans and additions
to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported
by the plans.
The following timeframes are used for OPEB reporting:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020
T. Self -Insurance
The City is self-insured for general liability, workers' compensation, dental benefits, unemployment and long-term
disability. Various City funds are charged premiums for the City's self-insurance liability, which is accounted for in
an internal service fund. The accrued liability for estimated self-insured claims represents an estimate of the
eventual loss on claims arising prior to year-end including claims incurred but not reported.
U. Net Position
In the government -wide and proprietary funds financial statements, net position is reported in one of three
categories:
49
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
U. Net Position (Continued)
Net Investment in Capital Assets — This category consists of capital assets net of accumulated depreciation and
reduced by deferred outflows of resources and outstanding debt that is attributed to the acquisition, construction,
or improvement of the assets.
Restricted Net Position — Assets restricted by external creditors, grantors, contributors, enabling legislation or laws
or regulations of other governments reduced by liabilities related to those assets.
Unrestricted Net Position — This category consists of all net position that does not meet the definition of net
investment in capital assets or restricted net position.
Fund balances presented in the governmental fund financial statements represent the difference between assets,
liabilities and deferred inflows of resources. GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions, establishes the criteria for classifying fund balances into specifically defined classifications
and clarifies definitions for governmental funds. GASB Statement No. 54 requires that the fund balances be
classified in categories based upon the type of constraints imposed on the use of funds. The City evaluated each of
its funds at June 30, 2021 and classified fund balances into the following five categories:
Non -spendable — Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items,
inventories and long-term receivables for which the payment of proceeds are not restricted or committed with
respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to remain
intact.
Restricted — Amounts that are restricted by external parties such as creditors or imposed by grants, laws or
regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The
City has legislative restrictions on amounts collected and reported in the City's various governmental funds.
Committed — Amounts that can only be used for specific purposes pursuant to constraints imposed by a formal
resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the
same formal action that imposed the constraint originally.
Assigned — Amounts that have been allocated by the City's intent to be used for specific purposes. The intent can
be established at either the highest level of decision making, which includes City Council or by an official
designated such as the City Manager for such purpose.
Unassigned — Amounts that constitute the residual balances that have no restrictions placed upon them and are
reported in the General Fund. For other governmental funds, as restrictions exceed available resources only deficit
amounts are reported in the unassigned category.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, and then unrestricted resources as they are needed.
The City does not have a policy on the order of spending unrestricted amounts when an expenditure is incurred for
which amounts in any of the unrestricted fund balance classifications could be used. Therefore, by default under
GASB Statement No. 54, the City uses committed resources first, then assigned resources and unassigned resources
last as they are needed.
50
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
U. Net Position (Continued)
It is the City's policy to maintain an unassigned fund balance in the General Fund of at least 16% of revenues and
working capital balances in the Water and Wastewater enterprise funds of at least 25% of operating expenses and
the target for the Electric Enterprise Fund working capital is $29.9 million. The policy allows for variations from
year -to year to account for economic and fiscal changes. The City Council also adopted a policy to establish the
following reserves:
Catastrophic reserve — To maintain the ability of the City to meet operational costs during times of declared
emergency or major catastrophe, the City shall designate General Fund balance of a minimum of 8% of annual
General Fund revenues reported as unassigned fund balance. This reserve may only be drawn upon pursuant to an
emergency as declared under the Municipal Code.
Economic reserve — To maintain the City's economic viability and to meet seasonal cash flow shortfalls, the City
shall designate General Fund economic reserve balance of a minimum of 8% of annual General Fund revenues
reported as unassigned fund balance. Funding the economic reserve will begin in the fiscal year following full
funding of the catastrophic reserve. Funding may only be disbursed upon a resolution of the City Council.
Once fully funded, if these reserves fall below 5% of annual revenues, the City Manager shall prepare a plan within
three months of approval of the City's financial statements. This plan will restore the 5% within 12 months and the
8% within 24 months.
V. Statement of Cash Flows
A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City
considers all highly liquid investments with maturities of three months or less when purchased and investments
maintained in the pool to be cash equivalents.
W. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.
X. Current & Future Implementation of New Governmental Accounting Standards
Current Implementations:
The City is currently analyzing its accounting practices to determine the potential impact on the financial
statements for the following GASB Statements:
In January 2017, GASB issued Statement No. 84, Fiduciary Activities (GASB Statement No. 84), to improve guidance
regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those
activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and
local governments. It also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an
event has occurred that compels the government to disburse fiduciary resources. The implementation of this
standard did not have significant impact on the City's financial statements.
51
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
X. Current & Future Implementation of New Governmental Accounting Standards (Continued)
In August 2018, the GASB issued Statement No. 90, Majority Equity Interests — an Amendment of GASB Statements
No. 14 and No. 61 (GASB Statement No. 90), 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. This statement requires that a component unit in which a
government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and
deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity
interest in the component unit. The implementation of this standard did not have significant impact on the City's
financial statements.
In April 2021, the GASB issued statement No. 98, The Annual Comprehensive Financial report (GASB Statement No.
98), is to address references in authoritative literature to the term comprehensive annual financial report. This
statement establishes the annual comprehensive financial report and ACFR in generally accepted accounting
principles (GAAP) for state and local governments and eliminates the prior name and acronym. This statement was
developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for
comprehensive annual financial report sounds like a profoundly objectionable racial slur. The statement's
introduction of the new term in founded on a commitment to promoting inclusiveness. The implementation of
this standard did not have significant impact on the City's financial statements.
Future Implementations:
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), 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 also establishes a single
model for lease accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. GASB Statement No. 87 is effective for the City's fiscal year ending June 30, 2022.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period (GASB Statement No. 89), to (1) enhance the relevance and comparability of information about capital
assets and the cost of borrowing for a reporting period and (2) simplify accounting for interest cost incurred before
the end of a construction period. This statement requires that interest cost incurred before the end of a
construction period be recognized as an expense in the period in which the cost is incurred for financial statements
prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a
construction period will not be included in the historical cost of a capital asset reported in a business -type activity
or enterprise fund. GASB Statement No. 89 is effective for the City's fiscal year ending June 30, 2022.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a
single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with
(1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related
note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt
obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for
accounting and financial reporting of additional commitments and voluntary commitments extended by issuers
and arrangements associated with conduit debt obligations; and improving required note disclosures. GASB
Statement No. 91 is effective for the City's fiscal year ending June 30, 2023.
52
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1— Summary of Significant Accounting Policies (Continued)
X. Current & Future Implementation of New Governmental Accounting Standards (Continued)
In January 2020, GASB issued Statement No. 92, Omnibus 2020 (GASB Statement No. 92), to enhance comparability
in accounting and financial reporting and to improve the consistency of authoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB statements. This
Statement addresses a variety of topics. GASB Statement No. 92 originally effective for the City's fiscal year ending
June 30, 2021, has been postponed to the fiscal year ending June 30, 2022.
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates (GASB Statement No. 93),
to address those and other accounting and financial reporting implications that result from the replacement of an
interbank offered rate (IBOR) — most notably, the London Interbank Offered Rate (LIBOR) which is expected to
cease to exist in its current form at the end of 2021. GASB Statement No. 93 originally effective for the City's fiscal
year ending June 30, 2021, has been postponed to fiscal year ending June 30, 2022.
In March 2020, GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability
Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to
public-private and public -public partnership arrangements (PPPs). This Statement also provides guidance for
accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 94 is
effective for the City's fiscal year ending June 30, 2023.
In May 2020, GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements (GASB
Statement No. 96), to provide guidance on the accounting and financial reporting for subscription -based
technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA;
(2) establishes that a SBITA results in a right -to -use subscription asset — an intangible asset — and a corresponding
subscription liability; (3) provide the capitalization criteria for outlays other than subscription payments, including
implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 is
effective for the City's fiscal year ending June 30, 2023.
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 — An Amendment of GASB
Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 (GASB Statement No.97), to (1)
increase consistency and comparability related to the reporting of fiduciary component units; (2) mitigate costs
associated with the reporting of certain defined contribution pension plans, defined contribution other
postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other
employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the
relevance, consistency, and comparability of the accounting and financial reporting for the Internal Revenue Code
(IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and
for benefits provided through those plans. GASB Statement No. 97 is effective for the City's fiscal year ending June
30, 2022.
53
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 — Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Fiduciary Funds
Governmental Business -type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 68,569,596 $ 71,186,590 $ 139,756,186 $ 172,795 $ 139,928,981
Restricted cash
and investments 16,990,838 18,859,974 35,850,812 35,850,812
Total $ 85,560,434 $ 90,046,564 $ 175,606,998 $ 172,795 $ 175,779,793
Cash and investments as of June 30, 2021 consist of the following:
Cash on hand
Demand deposits
Investments
Total cash and investments
A. Authorized Investments
$ 3,696
6,377,457
6,381,153
169,398,640
$ 175,779,793
The City has adopted an investment policy pursuant to Government Code Section 53601, which authorizes the City
to invest surplus funds in the City Treasury in certain investment categories authorized by the California
Government Code and the City's Investment Policy. The City's Investment Policy is more restrictive than the
Government Code.
The following table identifies the permitted investment types authorized per the City's investment policy. The table
also identifies certain provisions that address interest rate risk and concentration of credit risk.
(1) Funds held at NCPA shall not count to this limit)
54
Maximum
Permitted Investments
Maturity
of Portfolio
Minimum Quality Requirements
U.S. Treasury Obligations
5 years
100%
None
US Government Agency Securities & Instrumentalities
5 years
100%
None
Bankers Acceptances
180 days
40%
None
Certificates of Deposit
5 years
100%
None
Negotiable Certificates of Deposit
5 years
30%
None
Credit rating of P1/A1 or A1+/F1 or F1+
Commercial Paper
270 days
30%
by Moody's S&P or Fitch
California State Local Agency Investment Fund
Indefinite
100%
None
Passbook Deposits
Indefinite
100%
None
Mutual Funds & Money Market Mutual Funds
N/A
20%
Multiple Requirements per Gov't Code
Medium Term Corporation Notes
5 years
30%
A-/A3/A- by Moody's, S&P, or Fitch
Joint Powers Authority Pool
Indefinite
30%(1)
Multiple Requirements per Gov't Code
Certificates of Deposit Account Registry Service (CDARS)
Indefinite
30%
None
Supranational Obligations
5 years
30%
AA-/Aa3/AA- by Moody's, S&P, or Fitch
Municipal Securities (50 States or California Local Agencies)
5 years
100%
None
(1) Funds held at NCPA shall not count to this limit)
54
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 — Cash and Investments (Continued)
B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements as to
the extent that they are permissible investments of funds of the City.
C. Restricted Cash
The City has established a pension stabilization account with Public Agency Retirement Services (PARS), which
invests in a Balanced Index PLUS Fund. The investments made by the City to this fund, are in restricted cash and
investments.
D. Disclosure Relating to Interest Rate Risk and Credit Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the
cash flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by
measuring the weighted average maturity of its portfolio, as well as limiting a securities maturity to five years or
less for investments in the investment pool. Investments held outside the investment pool can have longer
maturities as these funds are restricted by bond covenants and are held to the maturity of the bonds.
Investment Type
AAA/Aaa
AA+/AA/AA-
A+/A/A- BBB+/BBB/BBB-
Not Rated
Total
Investments by Fair Value:
Held by Trustee:
US Agency Securities
$
$ 7,966,550
$ $
$ 758,500
$ 8,725,050
Money Market Mutual Funds
-
6,555,515
6,555,515
Municipal Securities
2,383,811
17,320,553
1,085,443
2,268,835
23,058,642
Corporate Securities
821,360
4,903,876
12,654,135 3,299,015
-
21,678,386
Negotiable Certificate of Deposits
-
-
- -
7,766,100
7,766,100
Sovereigns, Supranational & Agencies
419,046
994,200
1,413,246
Guaranteed Investments Contracts
-
2,169,850
2,169,850
Exempt from Credit Rating Disclosure:
U.S Treasury Notes
6,744,115
6,744,115
Held by City:
CALTRUST
10,518,243
10,518,243
PARS
20,499,725
20,499,725
Local Bank Certificate of Deposits
2,000,000
2,000,000
Demand Deposits
6,377,457
6,377,457
Cash on hand
3,696
3,696
LAIF
58,269,768
58,269,768
Total Cash and Investments
$ 3,205,171
$ 30,610,025
$ 13,739,578 $ 3,299,015
$ 124,926,004
$ 175,779,793
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by nationally recognized statistical rating organization.
Presented below and on the following page is the minimum rating required by the California Government Code,
the City's investment policy, or debt agreements and the actual rating at year end for each investment type.
55
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 — Cash and Investments (Continued)
Concentration of Credit Risk
The California Government Code and the investment policy of the City contain limitations on the amount that can
be invested in any one issuer. Investments in any one issuer (other than investments issued by or explicitly
guaranteed by the US Government and investments in mutual funds, external investment pools, and other pooled
investments) that represent 5% or more of the total City investments are required to be disclosed. Investments in
LAIF, CalTRUST, and money market mutual funds are not subject to the concentration of credit risk disclosure. The
City holds 53.76% of its investments in the various securities. These investments in aggregate total are greater than
5% of the total investments, and no one individual holding is greater than 5% of the total investments.
Reporting Unit Issuer Investment Type Reported Amount
Entity Wide: United States Treasury US Treasury Notes $ 6,744,115
Federal Home Loan Bank US Agency Securities 5,672,775
F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover collateral securities that are in the possession of an outside party. The
California Government Code and the City's investment policy do not contain legal or policy requirements that
would limit the exposure to custodial risk for deposits, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a depository regulated under
state law. The market 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 deposits. The City's deposits with
financial institutions, exceeded federal depository insurance limits by $14,658,254, and was collateralized.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-
dealer) to a transaction, a government will not be able to recover the value of the investment or collateral
securities that are in the possession of another party. The California Government Code and the City's investment
policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for
investments. With respect to investments, custodial credit risk generally applies only to direct investments in
marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities
through the use of mutual funds or government investment pools such as LAIF.
Investment Type 12 Months or Less 13 to 24 Months 25 to 36 Months 37 to 60 Months 61 + Months Total
Investments by Fair Value:
Held by City:
CALTRUST $ 10,518,243 $ $ $ $ $ 10,518,243
LAIF 58,269,768 58,269,768
PARS 20,499,725 20,499,725
Local Bank Certificate of Deposits 2,000,000 2,000,000
Cash on Hand 3,696 3,696
Demand Deposits 6,377,457 6,377,457
Held by Trustee:
Negotiable Certificate of Deposits
1,513,725
3,636,150
1,337,625
776,850
501,750
7,766,100
US Agency Securities
2,021,625
1,555,925
263,450
-
4,884,050
8,725,050
Money Market Mutual Funds
6,555,515
-
-
-
-
6,555,515
Municipal Securities
4,780,542
3,981,824
3,716,480
6,210,981
4,368,815
23,058,642
Corporate Securities
3,333,365
3,571,958
6,019,211
4,082,622
4,671,230
21,678,386
Sovereigns, Supranational & Agencies
-
-
-
-
1,413,246
1,413,246
Guaranteed Investments Contracts
-
-
-
2,169,850
-
2,169,850
U.S Treasury Notes
2,673,465
2,820,150
255,100
-
995,400
6,744,115
Total Investments
$ 118,547,126
$ 15,566,007
$ 11,591,866
$ 13,240,303
$16,834,491
$175,779,793
56
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 — Cash and Investments (Continued)
G. Investments in Investment Pools
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by the
California Government Code under the oversight of the Treasurer of the State of California. The fair value of the
City's investment in this pool is reported in the accompanying financial statements at amounts based upon the
City's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio. At June 30, 2021, the City's
investment position in LAIF was $58.3 million. Of the investment with LAIF, 1.10% is invested in structured notes
and 3.37% is invested in asset-backed securities. The City is also a voluntary participant in the CalTRUST which is a
Joint Powers Authority governed by a Board of Trustees made up of local treasurers and investment officers. The
Board of Trustees sets overall policy for CaITRUST, and selects and supervises the activities of the Investment
Manager and other agents. As of June 30, 2021, the City's investment in CalTRUST is $10.5 million; all of which is
invested in the Medium term fund.
H. Investments in Guaranteed Investment Contracts
The City has entered into nonparticipating guaranteed investment contracts (GICs), which are authorized under
bond documents as outlined in the City's investment policy or the debt agreement. GICs are non -marketable
interest bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a
guaranteed return on principal over a specified period. A GIC is a general obligation instrument issued by a
financial institution, subject to applicable legal restrictions. The City's investments in GIC's represent proceeds
from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves and
proceeds of bonds that have been invested until used on the projects being financed. The investment contracts
holding debt service reserves are held long-term and bear interest 5.455%, while most project funds are invested
short-term with lower rates. All of the investment contracts are collateralized by investments, with $2,169,850
collateralized at 104% to 105%, as set forth in the legal agreements.
Fair Value Measurements
In accordance with GASB Statement 72, fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a
market-based measurement for a particular asset or liability based on assumptions that market participants would
use in pricing the asset or liability.
Valuation inputs are assumptions that market participants use in pricing an asset or liability. The hierarchy of
inputs used to generate the valuation is classified into three different levels.
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities at the
measurement date.
• Level 2 inputs include 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; and inputs other than quoted
prices that are observable for an asset, either directly or indirectly.
• Level 3 inputs are unobservable inputs from the asset or liability where there is very little market activity
and they should be used only when relevant Level 1 and Level 2 inputs are unavailable.
The City uses the market approach for determining the fair value levels. The market approach uses the prices
associated with actual market transactions for similar or identical assets and liabilities to derive a fair value. The
City has the following fair value measurements as of June 30, 2021:
57
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 — Cash and Investments (Continued)
1. Fair Value Measurements (Continued)
Investment Type
Investments by Fair Value:
Held by City:
Negotiable Certificate of Deposits
US Agency Securities
Sovereigns, Supranational & Agencies
U.S Treasury Notes
Municipal Securities
Corporate Securities
Subtotal
Investments Exempt from Fair Value Hierarchy:
Held by City
Guaranteed Investments Contracts
CALTRUST
PARS
LAIF
Local Certificate of Deposits
Money Market
Cash on Hand
Demand Deposits
Total Investments
Note 3 — Allowance for Uncollectible Accounts
Level Level Total
$ - $ 7,766,100
$ 7,766,100
- 8,725,050
8,725,050
- 1,413,246
1,413,246
- 6,744,115
6,744,115
- 23,058,642
23,058,642
- 21,678,386
21,678,386
- 69,385,539
69,385,539
- - 2,169,850
- - 10,518,243
- - 20,499,725
- - 58,269,768
- - 2,000,000
- - 6,555,515
- - 3,696
- - 6,377,457
$ - $ - $175,779,793
Receivables of the General Fund, Electric, Wastewater and Water funds, as well as the miscellaneous receivables are
reported net of uncollectible amounts. The write off policy for the City is all receivables over 120 days are considered an
uncollectible account. Total allowance provided for uncollectible amounts related to receivables of the current period are
as follows:
Uncollectibles related to:
Late charges and services
$ 62,497
Electric sales and services
312,011
Wastewater services
73,738
Water sales and services
61,531
Miscellaneous billing
686,948
Total uncollectibles, at end of fiscal year
$ 1,196,725
Note 4 — Interfund Receivables/Payables
Advances to Advances from
Amount
Other governmental Water
$ 148,875
58
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 4 — Interfund Receivables/Payables (Continued)
The advances from the Water Fund were used for the construction of Fire Station #4. In fiscal year 2019, the interfund loan
was taken to Council to establish interest terms and repayment terms. The repayment terms include a quarterly payment
of all fee revenue collected, to be applied to outstanding principle prior to calculation of quarterly interest calculation.
Interest is calculated on a quarterly compounded basis after payment is applied at the rate of the Variable -1 year United
States Treasury Note. The final payment to be made by June 30, 2024.
Note 5 — Transfers
Transfers for the year ended June 30, 2021, are summarized as follows:
Transfers In
Other
General Streets Governmental Wastewater Total
Transfers Out:
General
$ - $ 287,509 $ 5,148,908
$ 22,400
$ 5,458,817
Other governmental
227,299 - 654,060
-
881,359
Electric
2,275,670 - -
9,600
2,285,270
Wastewater
1,084,699 - -
-
1,084,699
Water
843,849 - -
9,600
853,449
Transit
266,299 - -
-
266,299
Total
$4,697,816 $ 287,509 $ 5,802,968
$ 41,600
$10,829,893
During the year, various interfund transfers were made to finance expenditures, subsidize operating losses and service
debt.
Transfers out of $2,275,670 from the Electric Fund, $1,084,699 from the Wastewater Fund, $843,849 from the Water Fund
and $269,299 from the Transit Fund represent operating contributions to the General Fund. In addition, Community
Development transferred to the General Fund $127,299 for normal operating costs and Library Capital transferred to
Library $100,000 for a capital project that did not occur, that was funded in a previous fiscal year.
The transfer of $287,509 from the General Fund to the Streets Fund is for operations and for various streets projects.
The transfer of $5,148,908 from the General Fund to other governmental funds represents transfer of $1,098,460 to the
Debt Service Fund for the interest required to pay the 2012 Refunding Lease Revenue Bonds; $4,050,448 to Parks,
Recreation, and Community Services Fund for operating costs.
The transfer out of $654,060 from other governmental funds to other governmental funds includes $654,060 transferred
from Parks, Recreation, and Community Services Fund to the Debt Service Fund for the interest required to pay the 2012
Refunding Lease Revenue Bonds.
The transfer of $22,400 was transferred from the General Fund, the $9,600 from the Electric and $9,600 from Water Fund
to the Wastewater Fund for the purchase of equipment.
59
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 6 — Capital Assets
Capital assets activity of the primary government for the year ended June 30, 2021, was as follows:
Governmental activities July 1, 2020 Additions Retirements Transfers
June 30, 2021
Capital assets, not being depreciated:
Retirements
Transfers June 30, 2021
Capital assets, not being depreciated:
Land
$ 24,886,595
$ 351,795
$ $
$ 25,238,390
Work of Art
304,907
-
Construction in progress
304,907
Construction in progress
1,126,756
5,709,815
(3,816,167)
3,020,404
Total capital assets, not being depreciated
26,318,258
6,061,610
(3,816,167)
28,563,701
Capital assets, being depreciated:
Buildings and improvements
57,580,080
Buildings and improvements
77,869,002
57,889
249,148
78,176,039
Machinery and equipment
16,430,432
266,979
160,054
16,857,465
Vehicles
13,061,565
1,135,463
(225,011) -
13,972,017
Infrastructure
182,561,819
5,137,670
- 3,406,965
191,106,454
Total capital assets, being depreciated
289,922,818
6,598,001
(225,011) 3,816,167
300,111,975
Less accumulated depreciation for:
- 26,028,073
Machinery and equipment *
129,398,989
Buildings and improvements
42,300,774
2,067,180
-
44,367,954
Machinery and equipment
13,211,811
784,082
Total accumulated depreciation
13,995,893
Vehicles
9,678,730
616,133
(225,011)
10,069,852
Infrastructure
118,118,463
5,140,253
Business -type activities capital assets, net
123,258,716
Total accumulated depreciation
183,309,778
8,607,648
(225,011)
191,692,415
Total capital assets, being depreciated, net
106,613,040
(2,009,647)
3,816,167
108,419,560
Governmental activities capital assets, net
$ 132,931,298
$ 4,051,963
$ $ -
$ 136,983,261
Business -type activities
(Restated)
July 1, 2020
Additions
Retirements
Transfers June 30, 2021
Capital assets, not being depreciated:
Land
$ 5,535,718
$ -
$
$ - $ 5,535,718
Construction in progress
11,724,120
12,454,145
(12,975,578) 11,202,687
Total capital assets, not being depreciated
17,259,838
12,454,145
(12,975,578) 16,738,405
Capital assets, being depreciated:
Buildings and improvements
57,580,080
-
4,729,678 62,309,758
Machinery and equipment *
322,435,164
4,573,447
(25,264)
8,245,900 335,229,247
Vehicles
15,043,274
67,281
(10,183)
- 15,100,372
Total capital assets, being depreciated
395,058,518
4,640,728
(35,447)
12,975,578 412,639,377
Less accumulated depreciation for:
Buildings and improvements
24,514,273
1,513,800
- 26,028,073
Machinery and equipment *
129,398,989
8,446,219
(25,264)
137,819,944
Vehicles
11,334,044
895,919
(10,183)
12,219,780
Total accumulated depreciation
165,247,306
10,855,938
(35,447)
176,067,797
Total capital assets, being depreciated, net
229,811,212
(6,215,210)
12,975,578 236,571,580
Business -type activities capital assets, net
$ 247,071,050
$ 6,238,935
$
$ - $ 253,309,985
*Machinery and equipment and related accumulated depreciation for July 1, 2020 were restated in the amount of
$4,875,057 and $4,875,057 respectively as a result of City-wide inventory of its Electric Utility and other infrastructure
assets.
60
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 6 — Capital Assets (Continued)
Depreciation expense was charged to function/programs of the primary government as follows:
Governmental Activities:
General government
Public protection
Public works
Community development
Library
Parks and recreation
$ 627,654
971,777
Busin
Electric
Wastewater
Activities:
$ 1,978,200
4,647,540
5,506,182 Water 3,212,895
11,514 Transit 1,017,303
263,677 Total depreciation expense $ 10,855,938
1,225,397
Internal service funds 1,447
Total depreciation expense $ 8,607,648
Note 7 — Long — Term Liabilities
The following is a summary of long-term liability transactions of the City for the year ended June 30, 2021:
*Compensated absences balances restated as of July 1, 2020 in the amount $(5,025,939), from $9,013,756 to $3,987,816. Sick Leave
Conversion balances restated as of July 1, 2020 in the amount of $(824,509), from $8,020,515 to $7,196,006, for a net amount to restate
of $428,857.
61
(Restated)
Amounts Due
Governmental activities:
July 1, 2020
Additions
Reductions
June 30, 2021
Within One Year
Compensated absences *
$ 3,987,816
$ 6,117,458
$ (6,140,092)
$ 3,965,182
$ 3,601,611
Sick leave conversion *
7,196,006
75,635
(615,676)
6,655,965
-
Self-insurance liability
8,665,085
3,528,844
(2,711,393)
9,482,536
4,346,295
Publicly offered:
2012 Lease Revenue Bonds
15,300,000
-
(965,000)
14,335,000
1,020,000
Issuance premium
601,100
(53,830)
547,270
53,830
Total
15,901,100
(1,018,830)
14,882,270
1,073,830
Loan payable
97,263
(97,263)
-
-
Capitallease
251,054
(81,955)
169,099
83,673
Governmental activities long-term liabilities
$ 36,098,324
$ 9,721,937
$ (10,665,209)
$ 35,155,052
$ 9,105,409
*Compensated absences balances restated as of July 1, 2020 in the amount $(5,025,939), from $9,013,756 to $3,987,816. Sick Leave
Conversion balances restated as of July 1, 2020 in the amount of $(824,509), from $8,020,515 to $7,196,006, for a net amount to restate
of $428,857.
61
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 7 — Long — Term Liabilities (Continued)
Business -type Activities:
In August 2015, the City obtained a loan in the amount of $1.5 million to finance the Electric Enterprise Fund's LED Street
Light Retrofit project. Annual principal and interest payment is approximately $235,000 with final payment due December
1, 2022. The annual payments will be paid from the Greenhouse Gas Free Allowance proceeds. Annual payments are
pledged from revenue in the Electric Utility.
Annual debt service requirements to maturity of the loans payables are as follows:
Year Ending
Business -type Activities
June 30,
Principal Interest
Amounts Due
224,178 10,577
July 1, 2020
Additions Reductions
June 30, 2021
Within One Year
Business -type activities:
Compensated absences
$ 1,816,867
$ 987,794 $ (1,932,077)
$ 872,584
$ 808,455
Sick leave conversion
-
833,587
833,587
-
Pollution remediation obligation (Note 14)
16,271,205
10,439 (898,820)
15,382,824
400,000
Loan payable
672,610
- (219,027)
453,583
224,178
Publicly offered:
Certificates of Participation and Revenue Bonds:
2004 Certificates of Participation A
2,070,000
2,070,000
-
2010 Water Revenue Bonds A & B
1,040,000
(1,040,000)
-
Issuance premium
-
Total
1,040,000
(1,040,000)
-
-
2012 Wastewater Refunding Revenue Bonds A
7,065,000
(1,660,000)
5,405,000
1,725,000
Issuance premium
540,519
(166,313)
374,206
166,313
Total
7,605,519
(1,826,313)
5,779,206
1,891,313
2016 Wastewater Refunding Revenue Bonds A
20,075,000
(115,000)
19,960,000
125,000
Issuance premium
2,193,897
(130,979)
2,062,918
130,979
Total
22,268,897
(245,979)
22,022,918
255,979
2017 Installment Purchase Agreement
7,545,969
(114,846)
7,431,123
120,675
Issuance premium
-
-
-
Total
7,545,969
(114,846)
7,431,123
120,675
2018 Electric System Refunding Revenue Bonds
39,900,000
(2,250,000)
37,650,000
2,365,000
Issuance premium
5,647,320
(477,246)
5,170,074
477,246
Total
45,547,320
(2,727,246)
42,820,074
2,842,246
2020 Water Refunding Revenue Bonds
25,390,000
25,390,000
930,000
Issuance premium
3,398,693
(170,646)
3,228,047
170,646
Total
28,788,693
(170,646)
28,618,047
1,100,646
Total Certificates of Participation and Revenue Bonds
114,866,398
(6,125,030)
108,741,368
6,210,859
Business -type activities long-term liabilities
$133,627,080
$ 1,831,820 $ (9,174,954)
$126,283,946
$ 7,643,492
Loans Payables
Governmental Activities:
In September 2015, the City obtained a loan
in the amount
of $468,000 to finance the purchase of a fire
engine. Annual
principal and interest payment is $99,172. The final payment
of $99,172 was made on
December 1, 2020 from the Fire
department appropriations.
Business -type Activities:
In August 2015, the City obtained a loan in the amount of $1.5 million to finance the Electric Enterprise Fund's LED Street
Light Retrofit project. Annual principal and interest payment is approximately $235,000 with final payment due December
1, 2022. The annual payments will be paid from the Greenhouse Gas Free Allowance proceeds. Annual payments are
pledged from revenue in the Electric Utility.
Annual debt service requirements to maturity of the loans payables are as follows:
Year Ending
Business -type Activities
June 30,
Principal Interest
2022
224,178 10,577
2023
229,405 5,350
2024 -
Total $ 453,583 $ 15,927
62
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 7 — Long — Term Liabilities (Continued)
Capital Lease
On June 22, 2016, the City entered into a lease -purchase agreement for the acquisition of Dispatch Console equipment for
the Police Department. The new equipment will provide the City with a more flexible system for better connectivity
between the Lodi Police Department dispatch operators and field personnel. The annual payments will be paid from Police
department appropriations. The pledge of payment is for annual appropriation and payment from all sources up to and
including the General Fund.
The present values of future minimum capital lease payments as of June 30, 2021, are as follows:
Year Ending, June 30
2022
2023
2024
Total minimum lease payments
Less amounts representing interest
86,540
86,540
173,080
(3,981)
Present value of minimum capital lease payments $ 169,099
Certificates of Participation and Revenue Bonds
Governmental Activities:
On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to allow the City to prepay
and cause the immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP). The 2002 COP
were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police
building and jail for the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996
Certificates of Participation. As of June 30, 2021, there are no outstanding balances of these refunded Certificates. The 1995
Certificates of Participation (1995 COP) were sold in October 1995 to finance the City Downtown Revitalization and the
Cherokee Lane Beautification projects. The 1996 Certificates of Participation (1996 COP) were sold in August 1996 to
finance the construction of the Hutchins Square Conference and Performing Arts Center. The total principal and interest
remaining to be paid on the 2012 LRB is $18,088,931. Principal is payable annually on October 1 in amounts ranging from
$260,000 to $1,605,000 beginning in 2016 with final payment due in 2031. Interest paid for the current year was $685,338.
The pledge of payment is for annual appropriation and payment from all sources up to and including the General Fund.
Business -type Activities:
On May 12, 2004, the City issued $27,360,000 Certificates of Participation (2004A COP) to provide funds to finance the costs
of certain improvements to the wastewater collection, treatment and disposal system of the City. Principal is payable
annually commencing 2024 on October 1 in amounts from $170,000 to $2,070,000 with final payment due October 1, 2024.
The City has pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total
principal and interest remaining to be paid on the certificates is $2,364,978. Interest paid for the current year and total net
revenues were $98,326 and $11,947,780, respectively.
On October 1, 2010, the City issued $9,015,000 Water Revenue Bonds, 2010 Series A and $29,650,000 Water Revenue
Bonds, 2010 Series B (Federally taxable - Build America Bonds) (2010 Bonds) to finance the construction of the Surface
Water Treatment Facility which is designed to pump water from the Mokelumne River, treat and deliver it to the City's
water distribution system. Principal is payable annually on June 1 in amounts ranging from $775,000 to $2,210,000 with
final payment due June 1, 2040. The City has pledged future water revenues, net of operation and maintenance costs, to
repay these certificates. In fiscal year 2020, the Series B Bonds were refunded, see new debt below. The 2010 Water
Revenue Bonds Series A final principal payment was made in June 2021.
63
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 7 — Long — Term Liabilities (Continued)
On August 16, 2012, the City issued $17,105,000 2012 Refunding Wastewater Revenue Bonds Series A (2012 Bonds) to
advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation. Principal is
payable annually on October 1 in amounts ranging from $1,280,000 to $1,885,000 beginning in 2013 with final payment due
in 2023. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The
total principal and interest remaining to be paid on the 2012 Bonds is $5,809,750. Principal and interest paid for the
current year and total net revenues were $1,951,400 and $11,947,780, respectively.
On March 10, 2016, the City issued $20,295,000 2016 Refunding Wastewater Revenue Bonds Series A (2016 Bonds) for an
advance refunding of the $21,415,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation.
Principal is payable annually on October 1 in amounts ranging from $110,000 to $2,175,000 beginning in 2018 with final
payment due in 2037. The City pledged future wastewater revenues, net of specified operating expenses, to repay these
certificates. The total principal and interest remaining to be paid on the 2016 bonds is $28,162,956. Interest paid for the
current year and total net revenues were $846,950 and $9,321,460, respectively. At June 30, 2020, the remaining balance of
the refunded debt is $19,960,000.
On December 1, 2017, the City issued $7,762,794 2017 Installment Purchase Agreement for an advance refunding of the
$7,555,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation. Principal is payable annually on
October 1 in amounts ranging from $107,000 to $545,000 beginning in 2018 with final payment due in 2037. The City
pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal
and interest remaining to be paid on the 2017 Agreement is $9,382,749.
On June 13, 2018, the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City to
prepay and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System
Revenue Certificates of Participation 2008 Series A). Principal is payable annually on September 1 in amounts ranging from
$1,710,000 to $4,045,000 beginning in 2019 with final payment due in 2032. The City has pledged future electric revenues,
net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the
certificates is $50,034,500.
On April 8, 2020, the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City to prepay and
cause the immediate defeasance of the outstanding $29,650,000 principal of Lodi Public Financing Authority 2010 Water
Revenue Bonds, Series B (Federally Taxable — Build America Bonds). Principal is payable annually on June 1 in amounts
ranging from $930,000 to 1,835,000 beginning in 2021 with final payment due in 2040. The City has pledged future water
revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be
paid on the certificates is $36,334,550.
The various indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of
and flow of moneys through various restricted accounts and minimum revenue bond coverage. The City is in compliance
with all such significant limitations and restrictions.
Annual debt service requirements to maturity for certificates of participation and bonds are as follows:
Year Ending Governmental Activities Business -type Activities
June 30, Principal Interest Principal Interest
2022
1,020,000
635,712
5,265,675
4,238,323
2023
1,065,000
583,587
5,511,416
3,995,169
2024
1,120,000
528,962
5,767,098
3,729,702
2025
1,175,000
470,119
6,511,831
3,401,684
2026
1,240,000
406,726
6,818,707
3,187,421
2027-2031
7,110,000
1,095,722
32,078,166
11,414,485
2032-2036
1,605,000
33,103
24,756,596
4,339,541
2037-2040
-
-
11,196,634
817,926
Total
$ 14,335,000
$ 3,753,931
$ 97,906,123
$ 35,124,251
64
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 — Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City's separate Miscellaneous and
Safety Plans (Plans), agent multiple -employer defined benefit pension plans administered by the California Public
Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating
member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues
publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and
membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan
members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one
year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily
reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one
of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost
of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2021, are summarized as follows:
Miscellaneous Plan
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Prior to On or after
1 -Jan -13 1 -Jan -13
2% @ 55
5 years of service
monthly for life
50-67
1.426%-2.418%
7%
21.80%
Safety Plan
2% @ 62
5 years of service
monthly for life
52-67
1% to 2.5%
6.75%
21.80%
Prior to December 22, 2012 to On or after
22 -Dec -12 31 -Dec -12 1 -Jan -13
3%@50
5 years of service
monthly for life
50-55
3%
9%
44.75%
65
3%@55
5 years of service
monthly for life
50-55
2.4% to 3%
9%
44.75%
2.7% @ 57
5 years of service
monthly for life
50-57
2% to 2.7%
11.25%
44.75%
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 — Pension Plans (Continued)
Employees Covered
At June 30, 2021, the most recent actuarial valuation available, the following employees were covered by the benefits of
the City's Plans:
Miscellaneous Safety
Plan Plan
Inactive employees or beneficiaries currently receiving benefits 135 115
Inactive employees entitled but not yet receiving benefits 116 46
Active employees 269 24
Total 520 185
Aggregate
Miscellaneous Safety Total
Contributions - employer $ 9,611,114 $ 7,955,910 $ 17,567,024
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all
public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a
change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by
CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees. The
contributions for the measurement period were as follows:
Net Pension Liability
The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan's fiduciary net
position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation
as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures.
Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial
assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Investment Rate of
Return
Mortality
Miscellaneous Plan Safety Plan
June 30, 2019 June 30, 2019
June 30, 2020 June 30, 2020
Entry -Age Normal Cost Method
7.15%
2.63%
7.25% 111
7.15%
2.63%
7.25% 111
Based on rates of CalPERS Experience Study
(1) Net of pension plan investment expenses, including inflation
66
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 — Pension Plans (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based
on the 2016 CalPERS Experience Study for the period from 1997 to 2011. Further details of the Experience Study can be
found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for each Plan. 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% discount rate is adequate and the use of the
municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65% will be applied to all plans
in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be
obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS 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 (11-60 years) using a building-block approach. Using the expected nominal returns
for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return
was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash
flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set
equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using
the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of
administrative expenses.
67
Current Target
Real Return
Real Return
Asset Class
Allocation
Years 1- 10 (1)
Years 11 +(Z)
Global Equity
50.20%
50.00%
0.60%
Fixed Income
28.70%
28.00%
12.50%
Inflation
0.00%
0.00%
0.00%
Sensitive
Private Equity
7.10%
8.00%
-5.10%
Real Estate
11.00%
13.00%
4.60%
Liquidity
1.00%
1.00%
1.60%
Trust Level
2.00%
0.00%
0.00%
67
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 — Pension Plans (Continued)
Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Plan:
Balance at June 30, 2019
Changes in the year:
Service cost
Interest on the total pension liability
Changes in assumptions
Changes in benefit terms
Differences between expected and actual
experience
Contribution - employer
Contribution - employee
Net investment income(')
Benefit payments, including refunds of employee
contributions
Other changes in fiduciary net position
Net changes during measurement period
Balance at June 30, 2020
Safety Plan:
Balance at June 30, 2019
Changes in the year:
Service cost
Interest on the total pension liability
Changes in assumptions
Changes in benefit terms
Differences between expected and actual
experience
Contribution - employer
Contribution - employee
Net investment income(')
Benefit payments, including refunds of employee
contributions
Other changes in fiduciary net position
Net changes during measurement period
Balance at June 30, 2020
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
$ 203,985,008 $ 143,515,020 $ 60,469,988
3,061,982 3,061,982
14,272,357 14,272,357
(261,709) - (261,709)
5,480,277 (5,480,277)
1,743,741 (1,743,741)
7,191,594 (7,191,594)
(11,281,823) (11,281,823) -
- (202,321) 202,321
5,790,807 2,931,468 2,859,339
$ 209,775,815 $ 146,446,488 $ 63,329,327
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
$ 204,368,263 $ 123,013,981 $ 81,354,282
3,251,866 3,251,866
14,313,890 14,313,890
(329,854) - (329,854)
6,927,425 (6,927,425)
1,835,228 (1,835,228)
6,175,068 (6,175,068)
(10,940,141) (10,940,141) -
- (173,420) 173,420
6,295,761 3,824,160 2,471,601
$ 210,664,024 $ 126,838,141 $ 83,825,883
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is 1 -percentage point
lower or 1 -percentage point higher than the current rate:
68
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Miscellaneous Plan Safety Plan
1% Decrease 6.15% 6.15%
Net Pension
Liability $89,685,828 $112,354,313
Current Discount Rate 7.15% 7.15%
Net pension
Liability $63,329,327 $83,825,883
1% Increase 8.15% 8.15%
Net Pension
Liability $41,451,990 $60,406,238
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CAPERS financial
reports.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense of $5,496,434 and $6,847,548 for the Miscellaneous
and Safety Plans, respectively.
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Pension contributions subsequent to
measurement date
Changes of assumptions
Difference between expected and
actual experience
Net differences between projected
and actual earnings on plan
investments
Total
Miscellaneous Plan Safety Plan Total
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
$ 9,611,114 $ $ 7,955,910 $
- 521,227 182,829
177,654 171,465 931,350 280,341
$ 17,567,024 $ -
521,227 182,829
1,109,004 451,806
966,902 878,564 1,845,466
$ 10,755,670 $ 171,465 $ 10,287,051 $ 463,170 $ 21,042,721 $ 634,635
The $9,611,114 and $7,955,910 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the next measurement period or the year
ending June 30, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions
will be recognized as pension expense as follows:
69
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 — Pension Plans (Continued)
Year Ending
Miscellaneous
Safety
July 1, 1994
30 -Jun
Plan
Plan
Total
2020
$ (574,946)
$ 244,437
$ (330,509)
2021
250,319
577,470
827,789
2022
716,407
540,808
1,257,215
2023
581,311
505,256
1,086,567
Total
$ 973,091
$ 1,867,971
$ 2,841,062
Note 9 — Post Employment Benefits Other Than Pensions
A. Plan Description
The City sponsors a single -employer defined -benefit postemployment healthcare plan (Retiree Health Plan) to
provide medical insurance benefits to eligible retired employees and their spouses. The Plan does not issue a
publicly available financial report. Medical coverage is provided through CalPERS healthcare program. Employees
who retire from the City and receive a CalPERS pension are eligible for postemployment medical benefits. The City
contributes the minimum amount provided under Government Code Section 22825 of the Public Employees
Medical and Hospital Care Act. In general, retirees must contribute any premium amounts in excess of the City
contribution. However, as described below, a closed group of active employees and retirees receive additional
postemployment benefits.
Employees hired prior to the dates shown in the following table are allowed to convert their accumulated sick
leave into postemployment medical benefits at retirement as long as they have ten or more years of service with
the City.
Group
Hired prior to:
Executive Management
July 1, 1994
Mid -Management
July 1, 1994
Fire Mid -Management
December 6, 1995
Police Mid -Management
July 1, 1994
General Services
July 1, 1995
IBEW
July 1, 1995
Maintenance and Operators
July 1, 1995
Dispatchers
July 9, 1994
Police
October 10, 1994
Fire
December 6, 1995
B. Eligibility
Employees of the City are eligible for retiree health benefits if they retire from the City and commence pension
benefits under PERS (typically on or after age 50 with at least five years of PERS eligible service). Membership in
the plan consisted of the following at June 30, 2019, the date of the latest actuarial valuation.
70
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
B. Eligibility (Continued)
Eligibility Plan
Active plan members 282
Inactive plan members entitled to, but not yet
receiving benefits 93
Retirees electing coverage 204
Retirees 8
Total 587
C. Funding Policy
Contribution requirements of the Retiree Health Plan are based on pay-as-you-go financing. The City's policy is to
fund the normal cost (current accrual for benefits being earned) plus an amortization of the net (unfunded
accrued) OPEB liability. For fiscal year 2020-21, the City contributed $1,772,822.
D. Net OPEB Liability
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the City's net OPEB obligation:
Actuarial accrued liability (AAL) $ 26,361,543
Actuarial value of plan assets 2,003,111
Unfunded actuarial accrued liability (UAAL) $ 24,358,432
E. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contribution of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. Projections of benefits for
financial purposes are based on the substantive plan (the plan as understood by the employer and plan members)
and include types of benefits provided at the time of each valuation and the historical pattern of sharing benefit
costs between the employer and the plan members to that point. The actuarial methods and the assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
F. Actuarial Valuations
The net OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
71
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
F. Actuarial Valuations (Continued)
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability
Valuation date: June 30, 2019 Measurement date: June 30, 2020
Actuarial Cost Method Entry Age Normal level percent of pay cost method
Actuarial Assumptions:
Discount Rate 3.56%
Inflation 2.50%
Wage Inflation 2.75%
Expected Rate of Return 6.00% per annum. This discount rate assumes the City continues to
fully fund for its retiree benefits through the California Employers'
Retiree Benefit Trust (CERBT) under its investment strategy 2.
G.
Healthcare Trend Rate An annual healthcare cost trend rate of 6.4% initially reduced by
decrements to an ultimate of 4.0% therefore.
Discount Rate
The discount rate used to measure the net OPEB liability was 3.56%. This discount rate assumes the City continues
to fully fund for its retiree health benefits through the "California Employers Retiree Benefit Trust" (CERBT) under
its investment allocation strategy 2. The rate reflects the OPEB published median interest rate for strategy 1 of
7.28% with an additional margin for adverse deviation.
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. These geometric
rates of return are net of administrative expenses.
Asset Class
Target Allocation _
Global equity
40.00%
Fixed income
43.00%
TIPS
5.00%
Commodities
4.00%
Real estate
8.00%
1- Long term expected rate of return in 6.00%
Long-term Expected Real
Rate of Returnl
4.76%
2.01%
1.20%
2.39%
4.53%
H. Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it
were calculated using a discount rate 1 -percentage point lower (2.56%) or 1 -percentage point higher (4.56%) than
the current discount rate:
Plan's Net OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(2.56%) Rate (3.56%) (4.56%)
$ 27,181,396 $ 24,358,432 $ 21,984,101
72
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
1. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it
were calculated using healthcare cost trend rates 1 -percentage point lower (5.0%HMO/5.5/`PPO decreasing to
4.0%HMO/4.5/`PPO) or 1 -percentage point higher (7.0%HMO/6.5`/`PPO decreasing to 6.0%HMO/6.5`/`PPO) than
the current healthcare cost trend rates:
1% Decrease Current Discount Rate 1% Increase
HMO 4.00% 5.00% 6.00%
PPO 4.50% 5.50% 6.50%
City Plan $ 21,666,382 24,358,432 27,607,284
J. Change in Net OPEB Liability
For the year ended June 30, 2021, the City recognized OPEB expense of $1,836,904 for the City Plan. At June 30,
2021 the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to measurement date $ 1,885,306 $ -
Change of assumptions - 3,220,278
Difference between expected and actual liability - 4,393,056
Difference between expected and actual investment earnings 6,649 -
$ 1,891,955 $ 7,613,334
The $1,885,306 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized as OPEB expense as follows:
Measurement Period
Ended June 30
2022 $
(1,498,756)
2023
(1,490,544)
2024
(1,491,725)
2025
(1,163,749)
2026
(1,111,720)
Thereafter
(850,191)
Total $
(7,606,685)
73
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 10 — Claims and Benefits
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 is self-insured as discussed in the following paragraphs for
which liabilities are recorded in the Internal Service Fund -Insurance Fund.
The City is self-insured for general liability up to the first $500,000 per occurrence with claims from $500,000 to
$40,000,000 per occurrence and in the aggregate insured through the California Joint Powers Risk Management Authority.
The City has not had any settlements that exceeded its general liability insurance coverage (See Note 12).
The City is self-insured for workers' compensation up to the first $250,000 per claim. Any claims of $250,000 up to California
statutory limits are covered under a purchased policy through the membership with the Local Agency Workers'
Compensation Excess Joint Powers Authority with coverage up to $300,000,000 in the current year. The City has not had any
settlements that exceeded its workers' compensation insurance coverage (See Note 12).
The City is fully self-insured for dental and unemployment for its employees.
General liability and workers' compensation claims are administered by an outside agency and all other claims are
administered by the City. The City has accrued a liability of $9,482,536 at June 30, 2021, for all self-insured claims in the
Internal Service Fund -Insurance Funds that includes an amount for incurred but not reported claims. The liability amount is
based on the requirements of GASB Statement No. 62, 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. In the opinion of the City, the amounts
accrued are adequate to cover claims incurred but not reported in addition to known claims.
Changes in the self-insurance liability for the years ended June 30, 2021, 2020, and 2019 are as follows:
FY20-21 FY19-20 FY18-19
Beginning Balance
$ 8,665,085
$ 8,065,374
$ 7,994,536
Current Year Claims &
Changes In Estimates
3,528,844
1,979,746
2,042,840
Claim Payments
(2,711,393)
(1,380,035)
(1,972,002)
Ending Balance
$ 9,482,536
$ 8,665,085
$ 8,065,374
Note 11— Participation in Joint Ventures
Northern California Power Agency
The City, along with fifteen other public agencies, is a member of the Northern California Power Agency (NCPA) that was
formed in 1968 as a joint powers agency. Its membership consists of twelve cities with publicly owned electric utility
distribution systems, one port authority, a transit authority, one public utility district and on associate member. NCPA is
generally empowered to purchase, generate, transmit, distribute and sell electrical energy. Members participate in the
projects of NCPA on an elective basis. A commission comprising of one representative from each member organization
governs NCPA. The commission is responsible for the general management of the affairs, property, and business of NCPA.
Under the direction of the General Manager, the staff of NCPA is responsible for providing various administrative, operating
and planning services for NCPA, its associated power corporations and its members.
NCPA's project construction and development programs have been individually financed by project revenue bonds
collateralized by NCPA's assignment of all payments, revenues and proceeds associated with its interest in each project.
74
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11- Participation in Joint Ventures (Continued)
Northern California Power Agency (Continued)
Each Project Participant has agreed to pay its proportionate share of debt service and other costs of the related project,
notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project for any
reason. Certain of the revenue bonds are additionally supported by municipal bond insurance credit enhancements.
Project Financing and Construction
Increase in Non -defaulting; Prosect Participant's Original Protect Entitlement Percentage
Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member
Agreement for the projects, and except as sales and transfers are made pursuant thereto, the Member Agreements provide
that Project Entitlement for each non -defaulting Project Participant shall be automatically increased for the remaining term
of the Member Agreement; pro rata with those of the non -defaulting Project Participant thereunder; provided, however,
that the sum of such increase for any non -defaulting Project Participant shall not exceed, without written consent of such
non -defaulting Project Participant, an accumulated maximum of 25% of the non -defaulting Project Participant's original
Project Entitlement Percentage Share.
General Operating; Reserve with NCPA
Members of NCPA established a general operating reserve in 1992 for the purposes of providing a vehicle to fund
reasonably foreseeable contingent liabilities. It was set up primarily to provide the following advantages: minimizes the
number and dollar amount of reserve that might otherwise be funded separately in connection with NCPA's individually
financed operating plants, projects and programs; and provides each member with flexibility and unilateral control over the
determination of what they will fund, how they will fund it and what expenditures from the reserve will be made on their
individual behalf. It provides funding for contingent liabilities that are not budgeted but that may require significant future
expenditures. The reserve is segregated by participant and is refundable on demand by the participant.
As of June 30, 2021, the City's advance receivable in the NCPA General Operating Reserve, which has been credited with
annual interest earnings and settlements, is $12,189,516.
Protect Participation
The NCPA members and their percentage share at June 30, 2021, which is the most recent available data, are as follows:
75
Hydro
Combustion
Multiple
Lodi
Geothermal
Electric
Turbine
Capital
Transmission
Energy
NCPA MEMBERS
Project
Project
Project#1
Facilities
Project
Center
Alameda
16.88%
10.00%
21.82%
19.00%
30.36%
0.00%
Bay Area Rapid Transit
-
-
-
-
-
6.60
Biggs
0.23
0.20
0.41
0.27
Gridley
0.34
-
0.35
0.60
1.96
Healdsburg
3.67
1.66
5.83
-
6.61
1.64
Lodi
10.28
10.37
13.39
39.50
18.49
9.50
Lompoc
3.68
2.30
5.83
5.00
6.62
2.04
Palo Alto
-
22.92
-
-
-
Plumas-Sierra Rural Electric Coop
0.70
1.69
1.82
-
1.26
0.79
Roseville
7.88
12.00
-
36.50
14.18
-
Santa Clara
44.39
37.02
41.67
-
-
25.75
Ukiah
5.61
2.04
9.09
10.10
1.79
OTHER PARTICIPANTS
-
Azusa
-
-
-
2.79
California Department of Water Resources
33.50
Modesto Irrigation District
10.71
Power & Water Resources Pooling Agency
-
2.67
Turlock Irrigation District
6.33
11.38
-
75
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11— Participation in Joint Ventures (Continued)
Project Financing and Construction (Continued)
Bulk power purchased by the City through NCPA amounted to $41,501,170 during the year ended June 30, 2021 and is
reflected in utilities expense in the Electric Enterprise Fund.
NCPA Geothermal Prosect
In addition to federal geothermal leasehold, steam wells, gathering system and related facilities, the project consists of two
electric generating stations (Plant 1 and Plant 2). With combined 165 MW turbine generator units utilizing low temperature
geothermal steam; associated electrical, mechanical and control facilities; a heat dissipation system; a steam gathering
system; a transmission tap line; and, other related facilities. Geothermal steam for the project is derived from the
geothermal property, which includes well pads, access roads, steam wells and re-injection wells.
Under a power purchase agreement with NCPA, the City is obligated to pay 10.28% of the operating and debt service costs.
Outstanding long-term debt related to this project was approximately $15.5 million at June 30, 2021.
Calaveras Hydroelectric Proiect
NCPA contracted to finance, manage, construct and operate Hydroelectric Project Number One for the licensed owner,
Calaveras County Water District. In exchange, NCPA has the right to the electric output of the project for 50 years from
February 1982. NCPA has also the option to purchase power from the project in excess of the District's requirements for the
subsequent 50 years, subject to regulatory approval.
Under a power purchase agreement, the City is obligated to pay 10.37% of the operating costs and approximately 10.63% of
the debt service. At June 30, 2021, approximately $255.8 million in long-term debt used to finance this project was
outstanding.
NCPA Combustion Turbine Prosect #1
The original project consisted of five combustion turbine units; each nominally rated at 25 MW. Concurrent with the final
project bond maturity, two units located in Roseville were acquired by an NCPA member. The remaining project consists of
two units in Alameda and one in Lodi. The project provides capacity during peak load periods and emergency capacity
reserves. Excess capacity and energy from the project are also sold to other entities from time to time.
Under the NCPA power agreement, the City is obligated to pay 13.39% of the debt service and operating costs. At June 30,
2021, there was no outstanding long-term debt related to this project.
Capital Facilities Prosect
The Project consists of one 49.9 MW natural gas-fired steam injected combustion turbine generator unit located in Lodi,
California. Wastewater is reclaimed from the City of Lodi's White Slough water pollution control facility, processed to
eliminate contaminants, and used in the turbine to produce steam for power enhancement and emissions control.
Under a power purchase agreement with NCPA, the City is obligated to pay 39.5% of the operating and debt service costs.
Outstanding long-term debt related to this project was approximately $19.3 million at June 30, 2021.
Transmission Prosect
The project was undertaken to meet certain obligations of NCPA under the NCPA/PG&E Interconnection Agreement. The
project includes co -tenancy interest in PG&E's 230 kV Castle Rock to Lakeville Substation Transmission Line in Sonoma
County, additional firm transmission rights in that transmission line and a central dispatch facility. The City is obligated to
pay 18.49% of the operating and debt service costs. At June 30, 2021 there was no outstanding long-term debt related to
this project.
76
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11— Participation in Joint Ventures (Continued)
Project Financing and Construction (Continued)
Lodi Energy Center
The Lodi Energy Center project is a 304 MW natural gas-fired, combined -cycle power generation plant located in Lodi on
City property. Pursuant to a power sales agreement, NCPA owns and operates the project, selling the capacity and energy to
various project participants, including both members and non-members of NCPA. This project is located next to the Capital
Facilities Projects listed above.
The City is obligated to pay 17.03% of the debt service and 9.5% of operating costs. At June 30, 2021, approximately $306.5
million in long-term debt was outstanding.
Audited Statements
The following are the most recent available audited condensed financial statements of NCPA:
At June 30, 2021, NCPA's total net outstanding long-term debt was $597,178,000 at an average interest rate of 5%. The
current portion of long-term debt at June 30, 2021, was $43,400,000.
Complete financial information for NCPA may be obtained at the following administration office:
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678-6411
Condensed Statement of Net Position
June 30, 2021
(in thousands)
Assets and Deferred Outflows of Resources
Current assets
Restricted assets
Electric plant, net
Other assets
Total assets
Deferred outflows of resources
Total assets and deferred outflows of resources
Liabilities, Deferred Inflows of Resources and Net Position
Long-term debt, net
Current liabilities
Non-current liabilities
Deferred inflows of resources
Net position
Net investment in capital assets
Restricted
Unrestricted
Total liabilities, deferred inflows
of resources and net position
77
$ 206,369
146,024
449,256
210,264
1,011,913
91,950
$ 1,103,863
$ 553,778
136,520
291,632
94,305
(25,088)
42,444
10,272
$ 1,103,863
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11— Participation in Joint Ventures (Continued)
Project Financing and Construction (Continued)
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Year ended June 30, 2021
(in thousands)
Sales for resale
Operating expenses
Other expenses
Future recoverable costs
Net revenues before refunds
Refunds to participants
Increase in net position
Net position, beginning of year
Net position, end of year
Combined Statement of Cash Flows
Year ended June 30, 2021
(in thousands)
Net cash from operating activities
Net from investing activities
Net cash from capital and related
financing activities
Net cash from noncapital
and related financing activities
Increase in cash and cash equivalents
Cash and cash equivalents, beginning
of year
Cash and cash equivalents end of year
Transmission Agency of Northern California
$ 807,535
(768,694)
(21,501)
(15,622)
1,718
(14,481)
(12,763)
40,391
$ 27,628
$ 91,973
11,764
(72,926)
(6,263)
24,548
112,688
$ 137,236
The City of Lodi is a member of the Transmission Agency of Northern California (TANC), a California Joint Powers Agency
formed in the early 1980's to build the California Oregon Transmission Project (COTP) — a transmission line connecting the
Pacific Northwest with Central California.
On April 2, 2014, the Lodi City Council approved a 25 -year layoff of the City's share of the COTP transfer capability, effective
July 1, 2014, whereby the City and all of the TANC members who are in the CAISO Balancing Authority lay off their interests
to certain other COTP participants. In exchange, these entities pay the City's allocated share of COTP costs. This layoff
arrangement does not change Lodi's membership status in TANC and does not relieve the City of its obligations under the
TANC Agreement in the event of any default in payment by an acquiring party.
78
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11— Participation in Joint Ventures (Continued)
Project Financing and Construction (Continued)
TANC and certain TANC members have arranged for Pacific Gas & Electric (PG&E) to provide TANC and its members with
300 MW of firm bi-directional transmission capacity on its transmission system between its Midway Substation near
Buttonwillow, CA and its Tesla Substation near Tracy, CA, near the southern terminus of the COTP under an agreement
known as the South of Tesla (SOT) Principles. The City has utilized its full allocation of Tesla -Midway Transmission Service
for power transactions in the past. The City is responsible for 2.07% of TANC's SOT debt service which as of June 30, 2021
had an outstanding balance of approximately $2.5 million.
Complete financial information for TANC may be obtained at the following administration office:
Transmission Agency of Northern California
35 Iron Point Circle, Suite 225
Folsom, CA 95630
Note 12 — Membership in Insurance Pools
California Joint Powers Risk Management Authority
The City is a member, along with sixteen other individual cities and four joint powers authorities, of California Joint Powers
Risk Management Authority (CJPRMA) organized under a Joint Powers Agreement pursuant to the California Government
Code for the purpose of sharing the risk of catastrophic general liability, automobile liability and public officials' errors and
omissions losses. CJPRMA has a twenty-one member Board of Directors, including a director from the City of Lodi. The
Board members elect officers of CJPRMA every two years.
The ultimate cost of the program to the City depends on the catastrophic losses of all members, as well as the City's own
loss experience and will be determined through an actuarial analysis of loss history during the ten-year period preceding
the three years prior to the end of the current program year. The City periodically pays premiums to the CJPRMA. These
premiums are recorded as expenses in the year paid, as they are a reasonable estimate of the actual cost of the program.
During the year ended June 30, 2021, premiums of $385,861 were paid to CJPRMA for the liability program.
The participants at June 30, 2021, are as follows: Alameda, Chico, Fairfield, Fremont, Livermore, Lodi, Northern California
Cities Self Insurance Fund, Petaluma, Redding, Redwood Empire Municipal Insurance Fund, Richmond, Roseville, San
Leandro, San Rafael, Santa Rosa, Small Cities Organized Risk Effort, Stockton, Sunnyvale, Vacaville, Vallejo, and Yolo County
Public Agencies Risk Management Insurance Authority.
Complete financial information for CJPRMA may be obtained at the following administration office:
California Joint Powers Risk Management Authority
3252 Constitution Dr.
Livermore, CA 94551
79
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 12 — Membership in Insurance Pools (Continued)
Local Agency Workers' Compensation Excess Joint Powers Authority
The City, along with thirty-three other public agencies, is a member of the Local Agency Workers' Compensation Excess
Joint Powers Authority (LAWCX), which was formed July 1992, for the purpose of sharing the risk of workers' compensation
losses. LAWCX offers $150,000, $250,000, $350,000, $500,000 and $1 million self-insured retentions (SIR) or a member can
attach directly to the purchased excess insurance. LAWCX covers the layer above the member SIR up to $5 million. The
City's self-insured retention is $250,000. LAWCX participates in the California State Association of Counties Excess Insurance
Authority (CSAC-EIA) to obtain coverage up to statutory limits. The City paid $544,871 in premiums to LAWCX during the
year ended June 30, 2021.
The participants at June 30, 2021, are as follows: City of Alameda, Association of Bay Area Governments Shared Risk Pool
(ABAG SHARP), Bay Cities Joint Powers Insurance Authority (BCJPIA), City of Benicia, Central Contra Costa County Transit
Agency (CCCTA), California Housing Workers' Compensation Authority (CHWCA), Central San Joaquin Valley Risk
Management Authority (CSJVRMA), City of Clovis, City of Coronado, City of Encinitas, Fire Agencies Self Insurance System
(FASTS), City of Gilroy, City of Livermore, City of Lodi, Town of Los Gatos, City of Merced, Monterey County Local Agencies
Insurance Authority (MCLAIA), City of Morgan Hill, City of Newark, City of Placentia, City of Pleasanton, Public Agency Risk
Sharing Authority of California (PARSAC), City of Roseville, Public Entity Risk Management Authority (PERMA), City of San
Leandro, City of Santa Maria, City of Santee, Small Cities Organized Risk Effort (SCORE), City of South Lake Tahoe, City of
Suisun City, City of Vacaville, City of Vallejo, Vector Control Joint Powers Agency (VCJPA) and City of Vista.
Complete financial information for LAWCX may be obtained at the following administration office:
Local Agency Workers' Compensation Excess Joint Powers Authority
1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833
California Transit Insurance Pool
The City, along with thirty-three other public agencies is a member of the California Transit Insurance Pool (Cal TIP), a joint
powers insurance authority which was formed for the purpose of sharing the risk of property damage, bodily injury,
personal injury and public officials errors and omissions losses for public transit systems.
Liability protection coverage is provided under two programs:
Program I applies to members who choose to utilize Cal Tip's claims administrator services.
Program II applies to members with self-insured retentions who choose to provide their own claims administrator
services.
Cal TIP purchases excess insurance over its $1,000,000 retention up to $20 million per occurrence. Each member is provided
with $4 million in excess of the pooled retention for a total of $5 million in coverage and has the option to choose one or
both of two additional layers for the full $20 million.
Cal TIP also provides physical damage coverage to its members. This coverage program is optional for all members and
offers damage or loss protection for transit, staff and maintenance vehicles to transit operators. Cal TIP self -insures up to
$100,000, under which members have the option of five levels of deductible ranging from $500 to $10,000 per vehicle.
Claims are administered by the Cal Tip's adjuster.
80
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 12 — Membership in Insurance Pools (Continued)
California Transit Insurance Pool (Continued)
The City paid $131,470 in premiums to Cal TIP during the year ended June 30, 2021. There have been no reductions in
insurance coverage from the prior year and there were no insurance settlements in excess of insurance coverage in any of
the last three years.
Self -Insured Limit Physical
Program Retention (in millions) Damage
City of Lodi Transit System I Prefunded 20 Yes
Complete financial information for Cal Tip may be obtained at the following administration office:
California Transit Insurance Pool
1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833
Note 13 — Deficit in Net Position
A. Deficit in Net Position
The City has a deficit net position in its governmental activities in the amount of ($85,690,111) which is primarily
attributable to the net pension and OPEB obligations outstanding as of June 30, 2021.
A deficit in net position in the amount of ($1,015,259) in the ISF Fleet Services Fund at June 30, 2021, is attributed
to the increase in personnel expenses. The City will evaluate the rates charged to departments to eliminate the
deficit during the budget process.
A deficit in net position in the amount of ($28,926,492) in the ISF Benefits Fund at June 30, 2021, is attributed to
the OPEB Liability as required by GASB 75.
B. Expenditures in Excess Of Appropriations
Expenditures In Excess Of Appropriations For the year ended June 30, 201, expenditures exceeded appropriations
in the following programs/functions/fund (legal level of budgetary control) of the respective funds:
The General Fund expenditures for the Budget and Treasury division were higher than anticipated for these
departments due to additional expenditures relating to salaries and benefits. The General Fund, however, did not
have excess expenditures over appropriations at the fund level.
Funds
General Fund:
Budget and Treasury
Appropriations Expenditures
$ 357,037 $ 357,897
81
Excess Expenditures
over Appropriations
$ (860)
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 14 — Pollution Remediation Obligation
The City relies on groundwater for its drinking water and in the late 1980's, Perchloroethylene (PCE) and Trichloroethylene
(TCE) pollution was discovered in several municipal water supply wells. Investigations conducted by the California Regional
Water Quality Control Board (RWQCB) in the early 1990's under the Well Investigation program revealed numerous areas
where TCE was discharged, or where PCE from dry cleaning operations was discharged to the sewer system. In 1997, the
Department of Toxic Substances Control (DTSC) and the City entered into a cooperative agreement whereby the City
assumed a lead role in the cleanup and agreed to pursue legal action against potentially responsible parties (PRPs). The
City's estimate of the pollution remediation obligation was $70 million. The City has settled with all the involved parties.
The City received a draft cleanup and abatement order to investigate the discharges of waste, clean up the waste and abate
the effects of the discharges of waste in conformance with the State Water Resources Control Board's (SWRCB) Resolution
No. 92-49 Policies and Procedures for Investigation and Cleanup and Abatement of Discharges Under the Water Code
Section 13304 and with the RWQCB's Water Quality Control Plan for the Sacramento River and San Joaquin River. The City
then engaged the services of Treadwell and Rollo to advise the City on courses of action in the preparation of feasibility
studies, remedial design, and remedial action plan to comply with the technical and reporting requirements of the SWRCB.
The City's estimated total pollution remediation obligation as of June 30, 2021, is $15,382,824. This amount is an estimate
and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or
regulations.
Note 15 — Commitments and Contingencies
Litigation and claims — The City from time to time is a party to various claims, legal actions, and complaints arising in the
ordinary course of business. In the opinion of the City's administration, the various claims, legal actions, and complaints
resulting from such litigation not covered by the City's self-insurance program (see Note 12) would not materially affect the
financial position of the City.
Water Purchase Agreement with Woodbridge Irrigation District — The City obtains its municipal water supply from wells
located within the City, extracting water from the underground aquifer, which is replenished in part by flows of the
Mokelumne River. To avoid being wholly dependent upon wells and the possible impacts of eventual overdraft of the
groundwater supply, the City made a commitment in 2003 to purchase surface water supply from Woodbridge Irrigation
District for an initial term of 40 years. The agreement provides for the purchase of 6,000 acre feet per year and the City
pays the District $1.2 million annually. The initial term of the agreement was for 40 years. In January 2008, the District and
the City of Lodi amended the 2003 water sale contract to, among other matters, extend that agreement for four years to
October 2047.
Arbitrage Earnings Rebate Liability — Arbitrage earnings are defined as income earned on the unexpended tax-exempt
certificate proceeds in excess of that which would have been earned had the moneys been invested in securities with a
yield of the effective rate of the certificates. Currently, arbitrage earnings must be rebated to the United States Treasury
every five years. There is no cumulative arbitrage liability as of June 30, 2021, for any of the City's outstanding Certificates
of Participation and Revenue Bonds.
Construction and Other Significant Commitments — Commitments are existing arrangements to enter into future
transactions or events, such construction contracts for ongoing projects and long-term contractual obligations with
suppliers for future purchases at specified prices and sometimes specified quantities. Significant commitments as of June
30, 2021 are as follows:
82
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 15 — Commitments and Contingencies (Continued)
Governmental Activities:
General Fund $ 681,775
Other governmental funds 2,140,876
Total governmental activities $ 2,822,651
Note 16 — Restatement of Fund Balance
Net Position
Business -type Activities:
Electric Fund $ 3,486,254
Wastewater Fund 1,199,797
Water Fund 2,073,564
Transit Fund 127,127
Total business -type activities $ 6,886,742
Governmental
Activities
Net Position July 1, 2020
$ 42,983,825
Prior Period Adjustment
Sick Leave Conversion
5,850,449
GASB 84
375,940
July 1, 2020, as restated
$ 49,210,214
Governmental Activities
Sick leave conversion
During the implementation of GASB 75, entries were made to correctly state the new balances of the accrued liability for the
City's sick leave conversion balances. The City currently has two sick leave conversion programs: sick leave conversion and
sick leave conversion bank. The sick leave conversion program required a prior period adjustment to recognize the liability
balances to be used for future conversions. The City recorded a prior period adjustment to the government wide statement
of activities to reinstate the fund balance.
Business -type Activities
Capital assets
In the process of recording the current year capital assets, the City recorded prior period adjustments to the beginning net
position of the Governmental Activities. During the analysis of the information provided by the departments for their capital
assets, it was determined that certain capital improvement projects and certain machinery and equipment was either
completed or placed into service in prior years and not yet capitalized or was not properly valued utilizing a current
replacement or actual cost. An adjustment to capital assets was booked to correctly report the value of completed projects,
placing the machinery and equipment in service.
Governmental funds
The Special Assessment fund was established to account for the special assessments collected on the property tax roll by the
City on behalf of the property owners within the Industrial Way Beckman districts and the Downtown and Cherokee Lane
Districts. In the previous fiscal years, the Special Assessment fund was accounted for in the Agency Funds. In the current
fiscal year, the Special Assessment fund was reclassified to the Special Revenue Funds. The beginning fund balance
restatement was $373,185.
83
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 16 — Restatement of Fund Balance (Continued)
Governmental funds (Continued)
Net Position
Other Total
Governmental funds Governmental funds
Net Position July 1, 2020 $ 14,320,542 $ 54,967,580
Prior Period Adjustment
GASB 84 375,940 375,940
July 1, 2020, as restated $ 14,696,482 $ 55,340,520
Note 17 — Subsequent Events
In March 2021, Congress passed the American Rescue Plan Act (ARPA). ARPA is intended to provide direct relief to the
American people, rescue the American economy, and work to end the COVID-19 pandemic. Under ARPA more than $360
billion in emergency funding for state, local, territorial, and Tribal governments was distributed to ensure that they are in a
position to keep front line public workers on the job and paid, while also effectively distributing the vaccine, scaling testing,
reopening schools, and maintaining other vital services. The City will receive $15.7 million dollars, with the first portion of
$7.8 million being received in July 2021. The City is working on finalizing exactly how the complete funding package will be
spent. A portion has been approved by Council to be spent on, utility relief, vaccine incentives and community grants to local
businesses.
The Lodi Public Finance Authority 2012 Lease Revenue Bonds are callable April 1, 2022. Current projections suggest it is
financially advantageous for the City to execute the call option on the bonds. Staff will recommend the bonds be called and
refunded in the Spring of 2022 to create interest savings that will be accrued to the City's General Fund.
On December 31, 2021, the employment contract, Memorandum of Understanding (MOU), between the City of Lodi and the
International Brotherhood of Electrical Workers (IBEW) expires. The City is currently in negotiations with IBEW on a
successor MOU.
84
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(This page intentionally left blank.)
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
MISCELLANEOUS PLAN
Measurement Period
Total Pension Liability
Service Cost
Interest
Changes of Benefit Terms
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability- Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Other Changes in Fiduciary Net Position
Other Miscellaneous Income/(Expense) Ill
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning (Z)
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll Iii
Plan Net Pension Liability as a Percentage of
Covered Payroll
2019-20
2018-19
2017-18
2016-17
$ 3,061,982
$ 2,951,947
$ 3,020,122
$ 2,862,495
14,272,357
13,863,223
13, 374, 883
12, 923, 048
-
-
47,853
-
(261,709)
621,792
830,292
(398,276)
-
(950,894)
10,541,016
(11,281,823)
(10,490,850)
(9,814,728)
(9,129,724)
5,790,807
6,946,112
6,507,528
16,798,559
203, 985,008
197, 038,896
190, 531, 368
173, 732,809
209,775,815
203,985,008
197,038,896
190,531,368
5,480,277
5,002,406
4,208,873
3,950,727
1,743,741
1,372,046
1,364,684
1,341,146
7,191,594
9,071,083
11,191,848
13,581,013
(11,281,823)
(10,490,850)
(9,814,728)
(9,129,724)
(206,493)
(181,224)
(202,321)
(98,627)
(391,520)
2,931,468
4,856,058
6,352,664
9,561,938
143, 515,020
138, 658,962
132, 306, 298
122, 744, 360
146,446,488
143, 515,020
138, 658,962
132, 306, 298
$ 63,329,327 $ 60,469,988 $ 58,379,934 $ 58,225,070
69.81% 70.36% 70.37% 69.44%
$ 19,355,131 $ 18,257,959 $ 18,995,671 $ 17,970,339
327.20% 331.20% 307.33% 324.01%
Notes to Schedule:
(') During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment
Benefit Plans Other than Pensions (GASB 75), CaIPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB
plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CaIPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CaIPERS recorded a correction to previously
reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial
Reporting for Pensions (GASB 68).
Izl Includes ny beginning of year adjustment.
Iii Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal
years ended June 30, 2014-17.
Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented.
87
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
MISCELLANEOUS PLAN (Continued)
Measurement Period
Total Pension Liability
Service Cost
Interest
Changes of Benefit Terms
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Other Changes in Fiduciary Net Position
Other Miscellaneous Income/(Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning i�1
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability- Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll 131
2015-16 2014-15 2013-14
$ 2,464,894 $ 2,358,112 $ 2,478,901
12,565,553 12,061,399 11,705,179
542,177 (1,655,012)
- (2,903,507)
(8,641,550) (8,208,103) (7,729,680)
6,931,074 1,652,889 6,454,400
166,801,735 165,148,846 158,694,446
173,732,809 166,801,735 165,148,846
3,500,179 2,994,958 2,694,850
1,241,136 1,183,452 1,237,916
643,509 2,829,910 19,249,151
(8,641,550) (8,208,103) (7,729,680)
(76,838) (145,538)
(3,333,564) (1,345,321) 15,452,237
126,077, 924 127,423, 245 111,971, 008
199 Inn 2Cr 19G — 09A 197 A94 1—
70.65% 75.59% 77.16%
$ 17,423,446 $ 16,572,579 $ 16,669,363
Plan Net Pension Liability as a Percentage of
Covered Payroll 292.64% 245.73% 226.32%
Notes to Schedule:
111 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting
for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment
benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a
correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with
GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
1�1 Includes ny beginning of year adjustment.
Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll
growth assumption for fiscal years ended June 30, 2014-17.
Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10
years of data is presented.
88
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
SAFETY PLAN
Measurement Period
Total Pension Liability
Service Cost
Interest
Changes of Benefit Terms
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability- Beginning
Total Pension Liability- Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Other Changes in Fiduciary Net Position
Other Miscellaneous Income/(Expense) Ill
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning IZI
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll I3I
Plan Net Pension Liability as a Percentage of
Covered Payroll
2019-20
2018-19
2017-18
2016-17
1,835,228
1,173, 690
1,079,094
1,095,689
$ 3,251,866
$ 3,005,853
$ 3,385,583
$ 3,336,917
14,313,890
13,882, 332
13,288,494
12,869,943
(329,854)
1,853,213
(122,816)
1,123,761
(173,420)
-
(681,450)
10,945,791
(10,940,141)
(10,350,986)
(9,712,985)
(9,433,148)
6,295,761
8,390,412
6,156,826
18,843,264
204,368, 263
195,977,851
189,821,025
170,977, 761
210,664,024
204,368,263
195,977,851
189,821,025
6,927,425
6,462,421
5,549,746
5,220,306
1,835,228
1,173, 690
1,079,094
1,095,689
6,175,068
7,740,905
9,544,033
11,443,777
(10,940,141)
(10,350,986)
(9,712,985)
(9,433,148)
(174,988)
(153,469)
(173,420)
(83,983)
(331,781)
3,824,160
4,942,047
5,953,119
8,173,155
123,013,981
118,071,934
112,118,815
103,945, 660
126,838,141
123,013,981
118,071,934
112,118,815
$ 83,825,883
$ 81,354,282
$ 77,905,917
$ 77,702,210
60.21% 60.19% 60.25% 59.07%
$ 11,816,374 $ 10,779,847 $ 11,518,923 $ 11,518,923
709.40% 754.69% 676.33% 674.56%
Notes to Schedule:
Ill During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit
Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan.
Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported
financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for
Pensions (GASB 68).
IZI Includes any beginning of year adjustment.
I3l Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years
ended June 30, 2014-17.
Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented.
89
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
SAFETY PLAN (Continued)
Measurement Period
Total Pension Liability
Service Cost
Interest
Changes of Benefit Terms
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments, Including Refunds of Employee
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Other Changes in Fiduciary Net Position
Other Miscellaneous Income/(Expense) Ill
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning 121
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll 131
Plan Net Pension Liability as a Percentage of
Covered Payroll
2015-16
2014-15
2013-14
$ 2,890,607
$ 2,968,819
$ 3,048,048
12,357, 788
11,827,918
11,390, 793
600,847
(932,918)
-
(2,939,033)
(8,730,081)
(8,134,067)
(7,448,361)
7,119,161
2,790,719
6,990,480
163, 858, 600
161, 067, 881
154, 077, 401
170, 977, 761
163, 858, 600
161, 067, 881
4,660,278
4,176,197
4,106,044
1,062,984
1,007, 876
1,058,376
558,434
2,397,191
16,070,261
(8,730,081)
(8,134,067)
(7,448,361)
(64,882)
(119,971)
(2,513,267) (672,774) 13,786,320
106,458,927 107,131,701 93,345, 381
103,945,660 106,458,927 107,131,701
$ 67,032,101 $ 57,399,673 $ 53,936,180
60.79% 64.97% 66.51%
$ 11,106,615 $ 11,293,867 $ 11,194,123
603.53% 508.24% 481.83%
Notes to Schedule:
Ili During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting
for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment
benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CaIPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a
correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with
GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
121 Includes any beginning of year adjustment.
I31 Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth
assumption for fiscal years ended June 30, 2014-17.
Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this
schedule until 10 years of data is presented.
90
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS
Miscellaneous Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions (2)
Contribution Deficiency (Excess)
Covered Payroll (3,4)
Contributions as a Percentage of Covered Payroll
Safety Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions (2)
Contribution Deficiency (Excess)
Covered Payroll (3,4)
Contributions as a Percentage of Covered Payroll
2020-21 I11 2019-2011) 2018-19(1) 2017-18
111
$ 5,323,688 $ 4,879,985 $ 4,907,206 $ 4,208,873
(9,611,114) (5,496,434) (5,002,406) (4,208,873)
$ (4,287,426) $ (616,449) $ (95,200) $ -
$ 19,355,131 $ 18,257,959 $ 18,995,671 $ 17,970,339
49.66% 30.10% 25.83% 23.42%
$ 6,739,342 $ 6,311,400 $ 6,195,073 $ 5,549,746
(7,955,910) (6,847,548) (6,462,421) (5,549,746)
$ (1,216,568) $ (536,148) $ (267,348) $ -
$ 11,816,374 $ 10,779,847 $ 11,886,327 $ 11,518,923
67.33% 63.52% 52.12% 48.18%
Notes to Schedule:
(1) Historical information is required only for measurement periods for which GASB 68 is applicable
(2) Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to
make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined
contributions.
(3) Covered -Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines
covered -employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable
earnings aredifferent than total earnings for covered -employers, the employer should display in the disclosure footnotes the payroll
based on total earnings for the covered group and recalculate the required payroll -related ratios.
(4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth
assumption for fiscal years ended June 30, 2014-17.
Actuarial Cost Method
Entry Age Normal
Amortization Method/Period
For details, see June 30, 2017 Funding Valuation Report.
Asset Valuation Method
Market value of assets.
Inflation
2.625%
Salary Increases
Varies by Entry Age and Service
Payroll Growth
2.875%
Investment Rate of Return
7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age
The probabilities of Retirement are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015.
Mortality
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre -retirement
and Post-retirement mortality rates include 15 years of projected on-going mortality improvement using Scale BB published by
the Society of Actuaries.
Other information: For changes in previous years' information, refer to past GASB 68 reports.
91
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS (Continued)
Miscellaneous Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions IZI
Contribution Deficiency (Excess)
Covered Payroll (3,4)
Contributions as a Percentage of Covered Payroll
Safety Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions IZI
Contribution Deficiency (Excess)
Covered Payroll (3,4)
Contributions as a Percentage of Covered Payroll
2016-17(1) 2015-16(1) 2014-15(1) 2013-14(1)
$ 3,880,495 $ 3,500,179 $ 2,994,958 $ 2,694,850
(3,880,495) (3,500,179) (2,994,958) (2,694,850)
$ 17,802,886 $ 17,423,446 $ 16,572,579 $ 16,669,363
21.80% 20.09% 18.07% 16.17%
$ 5,136,610 $ 4,660,278 $ 4,176,197 $ 4,106,044
(5,136,610) (4,660,278) (4,176,197) (4,106,044)
$ 11,477,432 $ 11,106,615 $ 11,293,867 $ 11,194,123
44.75% 41.96% 36.98% 36.68%
Notes to Schedule:
Ill Historical information is required only for measurement periods for which GASB 68 is applicable
IZI Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to
make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined
contributions.
(3) Covered -Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines
covered -employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable
earnings aredifferent than total earnings for covered -employers, the employer should display in the disclosure footnotes the payroll
based on total earnings for the covered group and recalculate the required payroll -related ratios.
(4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth assumption for fiscal years
ended June 30, 2014-17.
Actuarial Cost Method
Entry Age Normal
Amortization Method/Period
For details, see June 30, 2017 Funding Valuation Report.
Asset Valuation Method
Market value of assets.
Inflation
2.625%
Salary Increases
Varies by Entry Age and Service
Payroll Growth
2.875%
Investment Rate of Return
7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre -retirement and
Post-retirement mortality rates include 15 years of projected on-going mortality improvement using Scale BB published by the Society
of Actuaries.
Other information: For changes in previous years' information, refer to past GASB 68 reports.
92
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2021
Measurement period, year ending:
Total OPEB liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
OPEB fiduciary net position
Contributions - employer
Net investment income
Benefit payments, including refunds of member contributions
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net OPEB liability - ending (a) - (b)
Plan fiduciary net position as a percentage of the total OPEB liability
Covered -employee payroll
Plan net OPEB liability as a percentage of covered -employee payroll
6/30/2020 (1) 6/30/2019 ill 6/30/2018 ill 6/30/2017 ill
$ 757,587
$ 1,092,362
$ 1,042,935
$ 1,139,099
87S,524
1,269,S94
1,240,787
1,073,783
(28,866)
(5,914,145)
(958,836)
(1,584,690)
(209,408)
(2,518,711)
(1,772,822)
(1,940,352)
(1,862,969)
(1,947,260)
(1,127,413)
(7,077,231)
211,345
(2,253,089)
27,488,956
34,566,187
34,354,842
36,607,931
$ 26,361,543
$ 27,488,956
$ 34,566,187
$ 34,354,842
$ 2,470,847
$ 1,940,352
$ 1,862,969
$ 2,947,260
81,556
80,425
66,683
79,789
(1,772,822)
(1,940,352)
(1,862,969)
(1,947,260)
(815)
(246)
(1,997)
(309)
778,766
80,179
64,686
1,079,480
1,224,345
1,144,166
1,079,480
-
7.60% 4.45% 3.31% 3.14%
$ 34,262,678 $ 32,883,009 $ 33,204,023 $ 35,314,645
71.09% 79.87% 100.66% 94.23%
Notes to Schedule:
(1) Information in this schedule is not available prior to FY2017-18 measurement period. Additional years will be added to this schedule until 10 years
of data is presented
93
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2021
Notes to Schedule
al Information in this schedule is not available prior to FY2017-18 measurement period. Additional years will be added to this schedule until 10 years of data is presented
Ixl Per GASB 75 paragraph 57c., these disclosure are only required if the employer calculates an Actuarially Determined Contribution (ADC). The City does not currently calculate an ADC.
94
2021
2020
2019
2018
2017
Actuarially Determined Contribution Izl
$ -
$ -
$ -
$ -
$ -
Contributions in Relation to the
Actuarially Determined Contribution
(1,885,306)
(2,046,385)
(1,940,352)
(1,862,949)
(2,947,260)
Contribution Deficiency (Excess)
$ (1,885,306)
$ (2,046,385)
$ (1,940,352)
$ (1,862,949)
$ (2,947,260)
Covered -employee payroll
34,262,678
32,883,009
33,204,023
34,286,063
34,286,063
Contributions as a percentage of
covered -employee payroll
79.9%
79.9%
100.7%
97.1%
97.1%
Actuarially determined contribution
for fiscal year
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
Valuation date:
June 30, 2019
June 30, 2019
June 30, 2017
June 30, 2017
June 30, 2017
Actuarial cost method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Asset valuation method
Straight line 5 year period
Straight line 5 year period
Straight line 5 year period
Straight line 5 year period
Straight line 5 year period
Discount rate
3.56%
3.56%
3.66%
3.60%
3.60%
Inflation
2.50%
2.50%
2.75%
2.75%
2.75%
Payroll increases
Mortality
Based on assumptions for PERS,
Based on assumptions for PERS,
Based on assumptions for PERS,
Based on assumptions for PERS,
Based on assumptions for PERS,
Police & Fire members
Police & Fire members
Police & Fire members
Police & Fire members
Police & Fire members
June 30, 2016 CaIPERS actuarial
June 30, 2016 CalPERS actuarial
June 30, 2016 CalPERS actuarial
June 30, 2016 CalPERS actuarial
June 30, 2016 CalPERS actuarial
valuation
valuation
valuation
valuation
valuation
Notes to Schedule
al Information in this schedule is not available prior to FY2017-18 measurement period. Additional years will be added to this schedule until 10 years of data is presented
Ixl Per GASB 75 paragraph 57c., these disclosure are only required if the employer calculates an Actuarially Determined Contribution (ADC). The City does not currently calculate an ADC.
94
CITY OF LODI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2021
REVENUES
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits, and penalties
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
City Manager
City Clerk
City Attorney
Internal Services Admin
Human Resources
Information Systems
Financial Services
Revenue Services
Budget and Treasury
Non Departmental
Total general government
Public protection:
Police
Fire
Total public protection
Public works
Library
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Gain on sale of property
Amounts
Variance with
Original Final Actual Final Budget
$ 29,443,740 $ 29,443,740 $ 31,697,986 $ 2,254,246
17,535,870 19,958,000 24,302,433 4,344,433
91,550 91,550 69,004 (22,546)
1,166,920 11,640,910 15,116,622 3,475,712
1,783,570 1,974,570 2,598,283 623,713
1,300,100 300,700 217,097 (83,603)
1,858,390 1,858,390 4,640,812 2,782,422
296,280 296,280 494,747 198,467
53,476,420 65,564,140 79,136,984 13,572,844
956,510 1,021,010 983,634 37,376
770,040 770,040 556,367 213,673
615,140 646,620 588,955 57,665
241,130 241,130 238,076 3,054
695,240 695,240 664,156 31,084
1,693,020 1,693,020 1,586,133 106,887
1,039,770 1,039,770 1,031,848 7,922
1,296,610 1,296,610 1,257,070 39,540
338,580 357,037 357,897 (860)
1,452,430 18,367,987 16,565,014 1,802,973
9,098,470 26,128,464 23,829,150 2,299,314
24,921,930 25,061,761 23,894,807 1,166,954
14,461,600 14,751,320 14,111,112 640,208
39,383,530 39,813,081 38,005,919 1,807,162
2,891,680 2,941,680 2,743,906 197,774
1,714,770 1,754,230 1,024,617 729,613
53,088,450 70,637,455 65,603,592 5,033,863
387,970 (5,073,315) 13,533,392 18,606,707
4,697,816 4,697,816 4,697,816 -
(5,458,817) (5,458,817) (5,458,817) -
1,000 1,000 14,666 13,666
Total other financing sources (uses) (760,001) (760,001) (746,335) 13,666
Net changes in fund balance (372,031) (5,833,316) 12,787,057 $ 18,620,374
FUND BALANCES, BEGINNING OF YEAR 27,903,041 27,903,041 27,903,041
FUND BALANCES, END OF YEAR $ 27,531,010 $ 22,069,725 40,690,098
Basis adjustment:
Cummulative pension set aside (15,641,640)
Fund balance (budgetary basis) $ 25,048,458
See accompanying notes to the required supplementary information.
95
CITY OF LODI
Streets
Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
Basis adjustment:
Cummulative pension set aside
Fund balance (budgetary basis)
See accompanying notes to the required supplementary information.
(298,541)
$ 13,835,312
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 5,007,680 $
8,050,060 $
6,774,637
$ (1,275,423)
Charges for services
1,471,380
1,471,380
1,511,609
40,229
Investment and rental income
223,760
223,760
166,969
(56,791)
Miscellaneous revenue
30,000
30,000
228,186
198,186
Total revenues
6,732,820
9,775,200
8,681,401
(1,093,799)
EXPENDITURES
Current:
Public works
2,866,100
3,051,730
2,849,603
202,127
Capital outlay
2,755,000
8,501,504
4,743,316
3,758,188
Total expenditures
5,621,100
11,553,234
7,592,919
3,960,315
Excess (deficiency) of revenues over
expenditures
1,111,720
(1,778,034)
1,088,482
2,866,516
OTHER FINANCING SOURCES (USES)
Transfers in
687,440
698,360
287,509
(410,851)
Transfers out
(399,930)
(410,850)
-
410,850
Proceeds from sale of property
-
-
13,865
13,865
Total other financing sources (uses)
287,510
287,510
301,374
13,864
Net change in fund balance
1,799,160
(1,079,674)
1,389,856
$ 2,455,665
FUND BALANCES, BEGINNING OF YEAR
12,743,997
12,743,997
12,743,997
FUND BALANCES, END OF YEAR
$ 14,543,157 $
11,664,323
14,133,853
Basis adjustment:
Cummulative pension set aside
Fund balance (budgetary basis)
See accompanying notes to the required supplementary information.
(298,541)
$ 13,835,312
CITY OF LODI
Notes to the Required Supplementary Information
June 30, 2021
Budgetary Data
The City adopts an annual budget for the General Fund and special revenue funds. These budgets are prepared in accordance
with generally accepted accounting principles with the exception of deposits into the pension stabilization account that the
City budgeted for as expenditures in the General Fund; Streets; Parks, Recreation, and Community Services; and Community
Development funds. As part of the City's internal controls, the City maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with the legal provisions embodied in the annual appropriated budget approved
by the City Council. The budgetary comparison schedules present budget and actual data only of funds for which an annual
budget was adopted. The budgets for capital projects are primarily "long-term" budgets that emphasize the major programs
and capital project plans extending over a number of years. Due to the long-term nature of these projects, "annual" budget
and actual comparisons are not considered meaningful. Formal budgetary integration is not employed for debt service funds
since effective budgetary control is alternatively achieved through the bond indenture provisions. Accordingly, no budgetary
information is included in the combining and individual fund statements and schedules for capital projects and debt service
funds.
The City Council follows the following procedures in establishing the budgetary data reflected in the accompanying required
supplementary information and in the budgetary comparison schedules for nonmajor special revenue funds:
Original Budget
On or prior to the first regular Council meeting in June of each year, the City Manager submits to the City Council a proposed
Financial Plan and Budget for the fiscal year commencing July 1. The budget includes proposed expenditures and the means
of financing them.
Budgeted revenues are adopted by the City Council at the time the budget is approved. Budgeted revenues are modified
when the tax base changes, when fees are modified or when new revenue sources are identified.
Public hearings are conducted during meetings of the City Council to obtain citizens' comments. Prior to July 1, the budget is
legally enacted through passage of a resolution.
Final Budget
The final budgetary data presented in the required supplementary information and in the budgetary comparison schedules
for nonmajor special revenue funds reflects the following changes to the original budget:
Budgeted expenditures represent original appropriations adjusted by budget transfers and appropriation
amendments. The legal level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is at the department level. The operating budget is prepared and controlled at the
department level (e.g., city clerk, city manager, etc.) for the General Fund. Special revenue fund expenditures,
including transfers out, are approved by Council at the fund level.
The City Manager may transfer appropriations from one activity to another within a department without approval
from the City Council. All other appropriation adjustments during the year, whether transfers, increases or
decreases, require City Council approval.
97
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COMBINING &
INDIVIDUAL FUND
STATEMENTS &
SCHEDULES
rIA&sem.
(This page intentionally left blank.)
NONMAJOR
GOVERNMEK
FUNDS
Nonmajor Governmental Funds
include:
Special Revenue Funds account for
the proceeds of specific revenue
sources that are restricted or
committed by law or administrative
action to expenditures for specified
purposes, other than those for major
capital projects:
Debt Service Fund account for the
accumulation of resources for the
repayment of principal and interest on
general long-term debt:
Capital Projects Funds account for the
financial resources to be used for the
acquisition or construction of major
capital facilities, other than those
financed by proprietary funds.
(This page intentionally left blank.)
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable, net
Interest Receivables
Due from other governmental agencies
Inventory
Total assets
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Due to other funds
Advances from other funds
Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Inventory
Restricted
Road -related projects
Public safety
Home and CDBG program
Community development
Debt service
Pension
Speical assessments
Committed
Parks, recreation and community services
Assigned
Capital projects
Total fund balances
Total liabilities and fund balances
CITY OF LODI
Combining Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
June 30, 2021
$ 992,555
42,381
83,897
1,118,833
$ 98,690 $
148,875
247
65,816 172,882
65,816 172,882
$ 1,091,245
42,381
148,875
83,897
1,366,398
238,698
238,698
1,776
1,776
Total Other
Special revenue funds
Capital projects funds
Debt service funds Governmental Funds
$ 8,316,729
$ 9,883,320
$ 2,239 $ 18,202,288
862,282
-
- 862,282
152,001
172,112
324,113
2,778
3,111
5,889
65,817
-
65,817
1,776
-
- 1,776
$ 9,401,383
$ 10,058,543
$ 2,239 $ 19,462,165
$ 992,555
42,381
83,897
1,118,833
$ 98,690 $
148,875
247
65,816 172,882
65,816 172,882
$ 1,091,245
42,381
148,875
83,897
1,366,398
238,698
238,698
1,776
1,776
85,231
85,231
165,163
165,163
(585,276)
(585,276)
6,410,945
- 6,410,945
-
2,239 2,239
862,282
- 862,282
362,908
362,908
913,705 913,705
- 9,638,096 9,638,096
8,216,734 9,638,096 2,239 17,857,069
$ 9,401,383 $ 10,058,543 $ 2,239 $ 19,462,165
103
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Summary by Fund Type
For the Year Ended June 30, 2021
REVENUES
Licenses and permits
Intergovernmental revenues
Charges for services
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
General government
Public protection
Public works
Community development
Parks and recreation
Capital outlay
Debt service:
Interest
Principal retirement
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning, as restated (Note 16)
Fund balances - ending
Total Other
Special revenue funds Capital projects funds Debt service funds Governmental Funds
$ 2,551,510 $
$
$
2,551,510
765,877
765,877
2,700,494
3,270,594
5,971,088
309,327
75,608
384,935
186,537
356,006
542,543
6,513,745
3,702,208
10,215,953
2,018,538
-
2,018,538
104,210
104,210
961,969
961,969
2,126,650
2,126,650
2,827,449
-
2,827,449
1,391,503
707,822
2,099,325
4,585
243
689,788
694,616
81,955
-
1,062,263
1,144,218
9,516,859
708,065
1,752,051
11,976,975
(3,003,114)
2,994,143
(1,752,051)
(1,761,022)
4,050,448
-
1,752,520
5,802,968
(781,359)
(100,000)
-
(881,359)
3,269,089
(100,000)
1,752,520
4,921,609
265,975 2,894,143
469 3,160,587
7,950,759 6,743,953 1,770 14,696,482
$ 8,216,734 $ 9,638,096 $ 2,239 $ 17,857,069
104
NONMAJOR
SPECIAL REVENUE
qr
Parks, Recreation, and Community Services
This fund was established to account for the revenues and expenditures related to the activities of the
Hutchins Street Square and Performing Arts Theater and the wide -range of parks and recreation activities
and programs offered to the public.
Public Safety
This fund was established to account for the revenues and expenditures related to the City's share of
property forfeited by persons convicted of possession and selling illegal drugs and the State of California
auto theft prosecution monies along with State and Federal grants related to public safety operations.
Community Development
This fund was established to account for development planning and project review services including land
use entitlements, permit processing and review/inspection of public improvements to ensure orderly
physical growth and development of the City.
Transportation
This fund was established to account for the receipt of monies from the State of California apportioned to
the City for transportation purposes. The State has designated 1/4% of the 6% sales tax levied statewide for
local transportation purposes. Funding for this program was provided during the 1971 legislative session
with the enactment of the Transportation Development Act, which extended the 6% sales tax to include
purchases of gasoline. Revenues allocated to the City of Lodi under this program are divided into two
categories: Article 8 funds, which are restricted for the improvement and maintenance of street systems;
and Article 4 funds, which are restricted for public transit systems.
Special Assessment Fund
This was established to account for special assessments collected in the property tax roll by the City on
behalf of the property owners within the Industrial Way Beckman districts and the Downtown and
Cherokee Lane districts.
HOME Program and Community Development Block Grant
This fund was established to account for the City's HOME Program that provides adequate and affordable
housing for low and very low-income residents, and Community Development Block Grants provided to
the City principally for low and moderate income residents to develop a suitable living environment and
expand economic opportunities.
CITY OF LODI
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2021
106
Parks, Recreation &
Community
Community Services
Public Safety
Development
ASSETS
Cash and investments
$ 1,043,855
$
256,237
$
6,544,967
Restricted cash and investments
547,313
-
314,969
Accounts receivables, net
76,794
-
-
Interest receivables
369
102
2,059
Due from other governmental agencies
-
-
-
Inventory
1,776
-
-
Total assets
$ 1,670,107
$
256,339
$
6,861,995
LIABILITIES
Accounts payable and other liabilities
$ 92,287
$
90,313
$
125,692
Accrued salaries and wages
31,129
863
10,389
Unearned revenue
83,897
-
-
Total liabilities
207,313
91,176
136,081
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
-
Total deferred inflow of resources
-
-
-
Total liabilities and deferred inflows of
resources
207,313
91,176
136,081
FUND BALANCES
Nonspendable
Inventory
1,776
Restricted
Road -related projects
-
-
Public safety
165,163
Home and CDBG program
-
-
Community development
-
6,410,945
Pension
547,313
314,969
Special assessments
-
-
Committed
Parks, recreation and community services
913,705
-
Total fund balances
1,462,794
165,163
6,725,914
Total liabilities, deferred inflows of resources and
fund balances
$ 1,670,107
$
256,339
$
6,861,995
106
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivables, net
Interest receivables
Due from other governmental agencies
Inventory
Total assets
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflow of resources
Total liabilities and deferred inflows of resources
FUND BALANCES
Nonspendable
Inventory
Restricted
Road -related projects
Public safety
Home and CDBG program
Community development
Pension
Special assessments
Committed
Parks, recreation and community services
Total fund balances
Total liabilities, deferred inflows of resources and
fund balances
CITY OF LODI
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2021
- - 913,705
85,231 362,908 (585,276) 8,216,734
$ 116,995 $ 365,523 $ 130,424 $ 9,401,383
107
HOME Program and
Community
Development Block
Total Nonmajor
Transportation
Special Assessments
Grants
Special Revenue Funds
$ 41,788
$ 365,351
$ 64,531
$ 8,316,729
-
-
-
862,282
75,207
-
-
152,001
-
172
76
2,778
-
65,817
65,817
-
-
-
1,776
$ 116,995
$ 365,523
$ 130,424
$ 9,401,383
$ 31,764
$ 2,615
$ 649,884
$ 992,555
-
-
-
42,381
-
-
-
83,897
31,764
2,615
649,884
1,118,833
-
-
65,816
65,816
-
-
65,816
65,816
31,764
2,615
715,700
1,184,649
-
-
-
1,776
85,231
85,231
-
165,163
(585,276)
(585,276)
6,410,945
-
862,282
362,908
362,908
- - 913,705
85,231 362,908 (585,276) 8,216,734
$ 116,995 $ 365,523 $ 130,424 $ 9,401,383
107
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2021
EXPENDITURES
Current:
General government
Public protection
Public works
Community development
Parks and recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
1,709,609 259,252
- 104,210
- 2,126,650
2,827,449 -
35,545
81,955
- 4,585 -
4,572,603 450,002 2,126,650
(3,068,710) (213,312) 2,157,460
4,050,448
(654,060)
3,396,388
327,678
(213,312)
(127,299)
(127,299)
2,030,161
1,135,116 378,475 4,695,753
$ 1,462,794 $ 165,163 $ 6,725,914
108
Parks, Recreation &
Community
Community Services
Public Safety
Development
REVENUES
Licenses and permits
$ -
$ -
$ 2,551,510
Intergovernmental revenues
32,575
232,841
29,447
Charges for services
1,165,651
-
1,534,843
Investment and rental income
184,860
3,849
102,580
Miscellaneous revenue
120,807
-
65,730
Total revenues
1,503,893
236,690
4,284,110
EXPENDITURES
Current:
General government
Public protection
Public works
Community development
Parks and recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
1,709,609 259,252
- 104,210
- 2,126,650
2,827,449 -
35,545
81,955
- 4,585 -
4,572,603 450,002 2,126,650
(3,068,710) (213,312) 2,157,460
4,050,448
(654,060)
3,396,388
327,678
(213,312)
(127,299)
(127,299)
2,030,161
1,135,116 378,475 4,695,753
$ 1,462,794 $ 165,163 $ 6,725,914
108
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2021
109
HOME Program and
Community
Development Block
Total Nonmajor
Transportation
Special Assessments
Grants
Special Revenue Funds
REVENUES
Licenses and permits
$ -
$ -
$ -
$ 2,551,510
Intergovernmental revenues
75,207
33,785
362,022
765,877
Charges for services
-
-
-
2,700,494
Investment and rental income
591
2,860
14,587
309,327
Miscellaneous revenue
-
-
-
186,537
Total revenues
75,798
36,645
376,609
6,513,745
EXPENDITURES
Current:
General government
-
49,677
-
2,018,538
Public protection
-
-
104,210
Public works
961,969
961,969
Community development
-
2,126,650
Parks and recreation
-
-
2,827,449
Capital outlay
63,399
1,292,559
1,391,503
Debt service:
Principal
-
-
81,955
Interest
-
-
-
4,585
Total expenditures
63,399
49,677
2,254,528
9,516,859
Excess (deficiency) of revenues over
expenditures
12,399
(13,032)
(1,877,919)
(3,003,114)
OTHER FINANCING SOURCES (USES)
Transfers in
-
4,050,448
Transfers out
(781,359)
Total other financing sources (uses)
-
3,269,089
Net change in fund balances
12,399
(13,032)
(1,877,919)
265,975
Fund balances - beginning
72,832
375,940
1,292,643
7,950,759
Fund balances - ending
$ 85,231
$ 362,908
$ (585,276)
$ 8,216,734
109
CITY OF LODI
Parks, Recreation & Community Services
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
REVENUES
Charges for services
Intergovernmental revenues
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
General government
Parks and recreation
Capital Outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Basis adjustment:
Cummulative pension set aside
Amounts
Original
Final
Actual
Variance with
Final Budget
2,130,620 $
2,130,620 $
1,165,651 $
(964,969)
200,000
200,000
32,575
(167,425)
545,810
545,810
184,860
(360,950)
27,500
27,500
120,807
93,307
2,903,930
2,903,930
1,503,893
(1,400,037)
2,973,400
2,973,400
1,709,609
1,263,791
3,075,630
3,295,804
2,827,449
468,355
140,000
1,852,773
35,545
1,817,228
6,189,030
8,121,977
4,572,603
3,549,374
(3,285,100)
(5,218,047)
(3,068,710)
2,149,337
4,880,450
5,050,890
4,050,448
(1,000,442.00)
(1,747,800)
(1,747,800)
(654,060)
1,093,740
3,132,650
3,303,090
3,396,388
93,298
(152,450)
(1,914,957)
327,678 $
2,242,635
1,135,116
1,135,116
1,135,116
$ 982,666 $
(779,841)
1,462,794
(547,313)
Fund balance (budgetary basis) $ 915,481
110
CITY OF LODI
Public Safety
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
111
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 323,000 $
495,917 $
232,841
$ (263,076)
Investment and rental income
18,650
18,650
3,849
(14,801)
Total revenues
341,650
514,567
236,690
(277,877)
EXPENDITURES
Current:
General government
-
284,707
259,252
25,455
Public protection
296,500
914,046
104,210
809,836
Debt service:
Principal retirement
-
-
81,955
(81,955)
Interest expense
-
-
4,585
(4,585)
Total expenditures
296,500
1,198,753
450,002
748,751
Net change in fund balances
45,150
(684,186)
(213,312)
$ 470,874
FUND BALANCES, BEGINNING OF YEAR
378,475
378,475
378,475
FUND BALANCES, END OF YEAR
$ 423,625 $
(305,711) $
165,163
111
CITY OF LODI
Community Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
112
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Licenses and permits
$ 1,408,200 $
1,408,200 $
2,551,510
$ 1,143,310
Intergovernmental revenues
-
300,000
29,447
(270,553)
Charges for services
880,300
880,300
1,534,843
654,543
Investment and rental income
83,960
83,960
102,580
18,620
Miscellaneous revenue
-
-
65,730
65,730
Total revenues
2,372,460
2,672,460
4,284,110
1,611,650
EXPENDITURES
Current:
Community development
2,255,090
2,657,580
2,126,650
530,930
Total expenditures
2,255,090
2,657,580
2,126,650
530,930
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
117,370
14,880
2,157,460
2,142,580
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
-
-
Transfers out
(66,730)
(127,300)
(127,299)
1
Total other financing sources (uses)
(66,730)
(127,300)
(127,299)
1
Net change in fund balances
50,640
(112,420)
2,030,161
$ 2,142,581
FUND BALANCES, BEGINNING OF YEAR
4,695,753
4,695,753
4,695,753
FUND BALANCES, END OF YEAR
$ 4,746,393 $
4,583,333
6,725,914
Basis adjustment:
Cummulative pension set aside
(314,969)
Fund balance (budgetary basis)
$
6,410,945
112
CITY OF LODI
Transportation
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
113
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 35,000 $
35,000 $
75,207
$ 40,207
Investment and rental income
220
220
591
371
Total revenues
35,220
35,220
75,798
40,578
EXPENDITURES
Capital outlay
30,000
63,398
63,399
(1)
Total expenditures
30,000
63,398
63,399
(1)
Net change in fund balances
5,220
(28,178)
12,399
$ 40,577
FUND BALANCES, BEGINNING OF YEAR
72,832
72,832
72,832
FUND BALANCES, END OF YEAR
$ 78,052 $
44,654 $
85,231
113
CITY OF LODI
Special Assessments
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
IM
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 33,830 $
33,830 $
33,785
$ (45)
Investment and rental income
4,760
4,760
2,860
(1,900)
Total revenues
38,590
38,590
36,645
(1,945)
EXPENDITURES
General government
76,000
76,000
49,677
26,323
Total expenditures
76,000
76,000
49,677
26,323
Net change in fund balances
(37,410)
(37,410)
(13,032)
$ 24,378
FUND BALANCES, BEGINNING OF YEAR
375,940
375,940
375,940
FUND BALANCES, END OF YEAR
$ 338,530 $
338,530 $
362,908
IM
CITY OF LODI
HOME Program and Community Development Block Grants
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2021
115
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 647,280 $
1,443,688 $
362,022
$ (1,081,666)
Investment and rental income
25,350
25,350
14,587
(10,763)
Total revenues
672,630
1,469,038
376,609
(1,092,429)
EXPENDITURES
Public works
647,280
5,891,908
961,969
4,929,939
Total expenditures
647,280
5,891,908
961,969
4,929,939
Net change in fund balances
25,350
(4,422,870)
(585,360)
$ 3,837,510
FUND BALANCES, BEGINNING OF YEAR
1,292,643
1,292,643
1,292,643
FUND BALANCES, END OF YEAR
$ 1,317,993 $
(3,130,227) $
707,283
115
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NONMAJOR
GOVERNMENTAL
FUNDS CAPITAL
PROJECT F'IND04
Library
This fund is used to account for the
acquisition, construction and installation of
capital facilities for the Library.
Hutchins Street Square
When the old Lodi High School burned
down, the City purchased the property and
renamed it Hutchins Street Square. The Old
Lodi High Site Foundation was established
which organizes events to raise money for
the capital restoration of Hutchins Street
Square.
Capital Outlay Reserve
This fund was established to account for the
entire City's construction projects and
capital purchases in excess of $10,000 with
the exception of those funded through
Enterprise Funds. Financing is provided
primarily through transfers from other funds
and from State and Federal grants.
Parks Capital
This fund was established to account for the
acquisition, construction and installation of
capital facilities for the various City parks.
(This page intentionally left blank.)
CITY OF LODI
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2021
ASSETS
Cash and investments
Accounts receivables, net
Interest receivables
Total assets
LIABILITIES
Accounts payable and other liabilities
Advances from other funds
Total liabilities
DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Assigned
Capital projects
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Library Hutchins Street Square
$ 80,382 $ 1,212
25 1
$ 80,407 $ 1,213
80,407
1,213
80,407 1,213
$ 80,407 $ 1,213
M
CITY OF LODI
Combining Balance Sheet (Continued)
Nonmajor Capital Projects Funds
June 30, 2021
LIABILITIES
Accounts payable and other liabilities $
42,922 $
55,768
Total Nonmajor Capital
Advances from other funds
Capital Outlay Reserve
Parks Capital
Projects Funds
ASSETS
191,797
55,768
247,565
Cash and investments
$ 9,178,007
$ 623,719
$ 9,883,320
Accounts receivables, net
171,712
400
172,112
Interest receivables
2,889
196
3,111
Total assets
$ 9,352,608
$ 624,315
$ 10,058,543
LIABILITIES
Accounts payable and other liabilities $
42,922 $
55,768
98,690
Advances from other funds
148,875
-
148,875
Total liabilities
191,797
55,768
247,565
DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue
171,712
1,170
172,882
Total deferred inflows of resources
171,712
1,170
172,882
FUND BALANCES
Assigned
Capital projects
8,989,099
567,377
9,638,096
Total fund balances
8,989,099
567,377
9,638,096
Total liabilities, deferred inflows of resources and
fund balances $
9,352,608 $
624,315 $
10,058,543
120
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Year Ended June 30, 2021
REVENUES
Charges for services
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
Capital outlay
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Change in fund balances
Library Hutchins Street Square
25
25
25
(100,000)
(100,000)
(99,975)
11
Fund balances - beginning 180,382 1,202
Fund balances - ending $ 80,407 $ 1,213
1W
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Capital Projects Funds
For the Year Ended June 30, 2021
EXPENDITURES
Current:
Capital outlay
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources
(uses)
Change in fund balances
Fund balances - beginning
Fund balances - ending
590,274 117,548 707,822
243 243
590,517 117,548 708,065
3,066,776 (72,669) 2,994,143
3,066,776 (72,669)
(100,000)
(100,000)
2,894,143
5,922,323 640,046 6,743,953
$ 8,989,099 $ 567,377 $ 9,638,096
`"61
Total Nonmajor Capital
Capital Outlay Reserve
Parks Capital
Projects Funds
REVENUES
Charges for services
$ 3,270,594
$ -
$ 3,270,594
Investment and rental income
69,589
5,983
75,608
Miscellaneous revenue
317,110
38,896
356,006
Total revenues
3,657,293
44,879
3,702,208
EXPENDITURES
Current:
Capital outlay
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources
(uses)
Change in fund balances
Fund balances - beginning
Fund balances - ending
590,274 117,548 707,822
243 243
590,517 117,548 708,065
3,066,776 (72,669) 2,994,143
3,066,776 (72,669)
(100,000)
(100,000)
2,894,143
5,922,323 640,046 6,743,953
$ 8,989,099 $ 567,377 $ 9,638,096
`"61
INTERNA
SERVICE
FUNDS
Internal Service Funds are maintained to account
for the internal transfer of services between
operating units of the City and to achieve a level
of operating efficiency that may not be available if
the same activities were performed by multiple
organizations.
Y 01
Fleet Services is used to account for the operation,
maintenance and timely replacement of the City's
fleet of vehicles which serve the transportation needs
of all City departments.
Benefits is used to account for the following
employee benefits:
• Dental
• Employee Assistance Program
• Chiropractic
• Employee Recognition Program
• Life/Accidental Insurance
• Unemployment Insurance
• Medical
• Flexible Spending Program
• Vision
• Long Term Disability
Insurance is used to account for the following
insurances:
• General Liability
• Worker's Compensation
• ,Other Insurance
Vehicle and Equipment
This fund was established to account for the financing
and replacement of vehicles and equipment for all
funds of the City with the exception of the Enterprise
Funds.
(This page intentionally left blank.)
ASSETS
Current assets:
Cash and investments
Restricted cash and investments
Receivables: Accounts, net
Receivables: Interest
Inventory
Prepaid
Capital assets, net
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable and other liabilities
Accrued salaries and wages
Accrued compensated absences
Noncurrent liabilities:
Self insurance liability
Accrued compensated absences
Net OPEB Liability
Net pension liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to OPEB
Total deferred inflows of resources
NET POSITION
Investment in capital assets
Unrestricted (deficit)
Total net position (deficit)
CITY OF LODI
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
125
Vehicle and
Total Internal Service
Fleet Services
Benefits
Insurance
Equipment
Funds
$ 777,576 $
1,803,998
$ 17,077,712
$ 2,401,764
$ 22,061,050
137,737
-
50,638
-
188,375
208
60,327
165,968
-
226,503
-
567
5,372
756
6,695
203,343
-
-
-
203,343
-
117,598
117,598
18,814
-
-
18,814
1,137,678
1,982,490
17,299,690
2,402,520
22,822,378
294,148
-
-
-
294,148
14,379
1,536,646
1,551,025
308,527
1,536,646
1,845,173
132,740
88,073
19,019
98,236
338,068
6,172
-
-
-
6,172
57,443
-
57,443
-
-
9,482,536
9,482,536
266,682
6,390,086
-
6,656,768
185,124
19,783,919
19,969,043
1,731,939
-
-
1,731,939
2,380,100
26,262,078
9,501,555
98,236
38,241,969
4,689
-
-
-
4,689
57,861
6,183,550
6,241,411
62,550
6,183,550
6,246,100
18,814
-
-
-
18,814
(1,015,259)
(28,926,492)
7,798,135
2,304,284
(19,839,332)
$ (996,445) $
(28,926,492)
$ 7,798,135
$ 2,304,284
$ (19,820,518)
125
CITY OF LODI
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2021
126
Vehicle and
Total Internal Service
Fleet Services
Benefits
Insurance
Equipment
Funds
OPERATING REVENUES
Charges for services
$ 3,023,822 $
8,518,969
$ 5,724,643
$ 844,870
$ 18,112,304
Total operating revenues
3,023,822
8,518,969
5,724,643
844,870
18,112,304
OPERATING EXPENSES
Personnel services
981,977
(1,496,690)
310,740
-
(203,973)
Supplies, materials and services
1,017,223
6,077,705
1,981,245
1,866,838
10,943,011
Utilities
11,927
-
-
-
11,927
Depreciation
1,447
-
-
1,447
Claims/premiums
42,300
1,370,343
3,528,844
4,941,487
Total operating expenses
2,054,874
5,951,358
5,820,829
1,866,838
15,693,899
Operating income (loss)
968,948
2,567,611
(96,186)
(1,021,968)
2,418,405
NONOPERATING REVENUES (EXPENSES)
Investment income
19,864
14,834
137,130
27,610
199,438
Other revenues / (expenses)
11,406
-
561,493
23,969
596,868
Gain on sale of City property
1,256
-
8,360
9,616
Total nonoperating revenues (expenses)
32,526
14,834
698,623
59,939
805,922
Change in net position
1,001,474
2,582,445
602,437
(962,029)
3,224,327
Total net position - beginning
(1,997,919)
(31,508,937)
7,195,698
3,266,313
(23,044,845)
Total net position - ending
$ (996,445) $
(28,926,492)
$ 7,798,135
$ 2,304,284
$ (19,820,518)
126
CITY OF LODI
Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash from interfund customers
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income (loss) to net cash provided (used) by
operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used)
by operating activities:
Depreciation Expense
Changes in assets, liabilities and deferred outflow/inflows of resources:
Customer Receivables
Inventory
Other assets
Accounts Payable - Supplier
Accrued salaries and wages
Net pension and OPEB liability
Compensated absences
Self-insurance liability
Deferred inflows of resources
Deferred outflows of resources
Other revenues
Net cash provided (used) by operating activities
IPPA
Fleet Services Benefits
$ 12,510 $
(60,327)
3,023,822
8,518,972
(1,000,699)
(7,556,756)
(1,010,324)
(768,722)
1,025,309
133,167
(100,301)
(2,036,317)
19,862
15,522
19,862
15,522
1,045,171 148,689
(129,858) 1,655,309
$ 915,313 $ 1,803,998
968,948 2,567,611
1,447
(152)
(60,327)
(27,801)
(1,491)
64,740
(110,959)
6,172
(100,301)
(2,036,317)
242,827
(38,372)
(331,417)
(104,861)
106,067
12,662
-
$ 1,025,309 $
133,167
CITY OF LODI
Statement of Cash Flows
Internal Service Funds (Continued)
For the Year Ended June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash from interfund customers
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income (loss) to net cash provided (used) by
operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used)
by operating activities:
Depreciation Expense
Changes in assets, liabilities and deferred outflow/inflows of resources:
Customer Receivables
Inventory
Other assets
Accounts Payable - Supplier
Accrued salaries and wages
Net pension and OPEB liability
Compensated absences
Self-insurance liability
Deferred inflows of resources
Deferred outflows of resources
Otherrevenues
Net cash provided (used) by operating activities
Insurance
Vehicle and Equipment
Total
$ 852,884
$ 32,329 $
837,396
5,404,087
844,870
17,791,751
(4,740,157)
(1,850,680)
(15,148,292)
(310,740)
(2,089,786)
1,206,074
(973,481)
1,391,069
143,878
29,105
208,367
143,878
29,105
208,367
1,349,952
(944,376)
1,599,436
15,778,398
3,346,140
20,649,989
$ 17,128,350
$ 2,401,764 $
22,249,425
(96,186)
(1,021,968) $
2,418,405
1,447
( 29,165) (89, 644)
(27,801)
(1,491)
(47,519) 16,158 (77,580)
- 6,172
(2,136,618)
- 242,827
817,451 817,451
- (369,789)
1,206
561,493 32,329 606,484
$ 1,206,074 $ (973,481) $ 1,391,069
128
J
AND
(This page intentionally left blank.)
ASSETS
Cash and investments
Interest receivable
Total assets
CITY OF LODI
Combining Statement of Fiduciary Net Position
Private -Purpose Trust Funds
June 30, 2021
Hutchins St Sq/Holz Total Private -Purpose
Library Bequest Trust Funds
171,126 $ 1,669 $ 172,795
1 1
171,126 1,670 172,796
Fiduciary Net Position $ 171,126 $ 1,670 $ 172,796
131
CITY OF LODI
Combining Statement of Changes in Fiduciary Net Position
Private -Purpose Trust Funds
For the Year Ended June 30, 2021
ADDITIONS
Investment and rental income
DEDUCTIONS
Current:
Library
Changes in fiduciary net position
Fiduciary Net Position - beginning of the year
Fiduciary Net Position - end of the year
Hutchins St Sq/Holz Total Private -Purpose
Library Bequest Trust Funds
$ 31,196 $ 15 $ 31,211
1,398
29,798
1,398
15 29,813
141,328 1,655 142,983
$ 171,126 $ 1,670 $ 172,796
132
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.... .. LODI ORA
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(This page intentionally left blank.)
STATISTICAL SECTION
The Statistical Section provides detailed information as a framework
for understanding the information in the financial statements, notes and required supp ementary
information. This section presents additional data and analysis that may provide the reader with
valuable insight regarding the demographics and the overall health of the City.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being has changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's most
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
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 and to help make comparisons over
time and with other governments.
Operating Information
These schedules contain information about the City's operations and resources to help the reader
understand how the City's financial information relates to the services the city provides and the
activities it performs.
Sources
Unless otherwise noted, the information in these schedules are derived from the comprehensive
annual financial report.
135
CITY OF LODI
NET POSITION BY COMPONENT
Governmental activities:
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities:
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
W-51111111111140 IaWWIIWIF_1C41
(Dollar amounts in thousands)
Fiscal Year
2021 2020 2019 2018 (2) 2017
$ 122,206
$ 117,010
$ 116,179
$ 119,222
$ 117,196
37,536
33,230
25,751
25,904
15,545
(85,690)
(107,255)
(115,043)
(117,535)
(77,162)
74,052
42,985
26,887
27,591
55,579
151,812
137,468
135,175
137,291
129,086
18,860
19,594
7,230
20
3,929
40,941
28,164
35,812
24,584
16,463
211,613
185,226
178,217
161,895
149,478
Primary government:
Net investment in capital assets
274,018
254,478
251,354
256,513
246,282
Restricted
56,396
52,824
32,981
25,924
19,474
Unrestricted
(44,749)
(79,091)
(79,231)
(92,951)
(60,699)
Total primary government net position
$ 285,665 $
228,211
$ 205,104
$ 189,486
$ 205,057
ili Fiscal year 2015 beginning net position was restated due to the implementation of GASB 68
(Z) Fiscal year 2018 beginning net position was restated due to the implementation of GASB 75
Source: City of Lodi Financial Services Division
136
CITY OF LODI
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
2016 2015(1) 2014 2013 2012
Governmental activities:
Net investment in capital assets
$ 111,256
$ 105,944
$ 105,462
$ 106,828
$ 107,587
Restricted
13,911
12,001
11,809
12,601
16,176
Unrestricted
(76,984)
(74,146)
2,551
1,157
(3,606)
Total governmental activities net position
48,183
43,799
119,822
120,586
120,157
Business -type activities:
Net investment in capital assets
121,468
119,924
116,156
113,008
109,582
Restricted
3,893
6,810
6,703
6,600
6,533
Unrestricted
14,427
892
16,535
14,827
(34,563)
Total business -type activities net position
139,788
127,626
139,394
134,435
81,552
Primary government:
Net investment in capital assets
232,724
225,868
221,618
219,836
217,169
Restricted
17,804
18,811
18,512
19,201
22,709
Unrestricted
(62,557)
(73,254)
19,086
15,984
(38,169)
Total primary government net position
$ 187,971
$ 171,425
$ 259,216
$ 255,021
$ 201,709
(1) Fiscal year 2015 beginning net position was restated due to the implementation of GASB 68
(Z) Fiscal year 2018 beginning net position was restated due to the implementation of GASB 75
Source: City of Lodi Financial Services Division
137
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
138
Fiscal Year
2021
2020
2019
2018
2017
Expenses
Governmental activities:
General government
$ 24,866 $
13,156
$ 11,390
$ 11,601
$ 9,650
Public protection
34,637
35,764
33,396
38,795
33,239
Public works
10,354
9,336
10,986
9,823
10,614
Community development
1,903
2,056
2,187
1,999
1,709
Library
1,152
1,882
785
1,753
1,253
Parks and recreation
3,671
3,873
4,142
4,672
3,663
Interest and fiscal charges
656
712
782
768
824
Total governmental activities expenses
77,239
66,779
63,668
69,411
60,952
Business -type activities:
Electric
68,307
71,758
64,104
67,943
62,791
Wastewater
11,683
18,049
14,410
16,008
16,318
Water
8,142
14,514
12,138
11,776
11,961
Transit
4,335
4,841
5,086
5,233
4,925
Total business -type activities expenses
92,467
109,162
95,738
100,960
95,995
Total primary government expenses
169,706
175,941
159,406
170,371
156,947
Program Revenues
Governmental activities:
Charges for services:
General government
2,119
3,240
323
3,670
3,246
Public protection
1,065
619
619
1,000
779
Public works
1,484
1,302
2,631
990
1,209
Community development
4,086
2,805
1,059
2,665
2,838
Library
-
38
-
37
43
Parks and recreation
1,176
1,551
1,286
1,698
1,660
Operating grants and contributions
4,582
3,426
7,968
2,287
2,391
Capital grants and contributions
8,418
10,302
6,861
8,737
12,830
Total governmental activities program revenues
22,930
23,283
20,747
21,084
24,996
Business -type activities:
Charges for services:
Electric
74,197
72,182
67,961
69,247
65,848
Wastewater
16,781
16,097
15,904
14,914
15,106
Water
14,107
14,192
13,345
13,005
12,474
Transit
70
126
216
227
220
Operating grants and contributions
6,866
7,034
8,261
5,969
4,514
Capital grants and contributions
5,120
2,894
2,092
11,307
7,972
Total business -type activities program revenues
117,141
112,525
107,779
114,669
106,134
Total primary government program revenues
140,071
135,808
128,526
135,753
131,130
Net (Expense)/Revenue
Governmental activities
(54,309)
(43,496)
(42,919)
(48,327)
(35,956)
Business -type activities
24,674
3,363
12,041
13,709
10,139
Total primary government net expense
$ (29,635) $
(40,133)
$ (30,878)
$ (34,618)
$ (25,817)
138
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
2016 2015 2014 2013 2012
Expenses
Governmental activities:
General government
$ 10,369
$ 9,109 $
9,580
$ 8,943 $
9,381
Public protection
31,395
27,426
27,884
25,930
25,432
Public works
10,326
10,281
10,644
10,546
10,248
Community development
11792
1,165
1,174
1,050
1,003
Library
11389
1,324
1,282
1,342
1,381
Parks and recreation
4,262
3,116
3,164
2,933
2,913
Interest and fiscal charges
822
818
825
416
1,033
Total governmental activities expenses
60,355
53,239
54,553
51,160
51,391
Business -type activities:
Electric
61,764
64,367
61,974
61,106
62,599
Wastewater
14,024
12,912
12,527
13,423
17,441
Water
10,967
9,905
11,014
(34,877)
7,953
Transit
4,415
4,134
3,834
4,141
4,256
Total business -type activities expenses
91,170
91,318
89,349
43,793
92,249
Total primary government expenses
151,525
144,557
143,902
94,953
143,640
Program Revenues
Governmental activities:
Charges for services:
General government
1,490
1,971
1,955
2,337
1,718
Public protection
740
609
582
538
500
Public works
734
832
415
224
166
Community development
2,292
1,378
1,219
1,458
993
Library
63
43
43
44
43
Parks and recreation
11637
1,360
1,479
1,404
1,241
Operating grants and contributions
2,596
3,369
2,686
2,341
2,300
Capital grants and contributions
10,559
3,131
5,359
4,216
5,025
Total governmental activities program revenues
20,111
12,693
13,738
12,562
11,986
Business -type activities:
Charges for services:
Electric
67,507
65,237
64,693
63,230
64,251
Wastewater
14,960
14,714
14,305
13,747
13,280
Water
12,161
12,723
12,756
12,441
12,083
Transit
210
230
203
185
186
Operating grants and contributions
5,089
5,186
4,431
5,178
4,214
Capital grants and contributions
2,860
5,284
2,846
4,715
3,206
Total business -type activities program revenues
102,787
103,374
99,234
99,496
97,220
Total primary government program revenues
122,898
116,067
112,972
112,058
109,206
Net (Expense)/Revenue
Governmental activities
(40,244)
(40,546)
(40,815)
(38,598)
(39,405)
Business -type activities
11,617
12,056
9,885
55,703
4,971
Total primary government net expense
$ (28,627)
$ (28,490) $
(30,930)
$ 17,105 $
(34,434)
139
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property
Special assessments Ill
Sales Ill
Document transferlll
Franchise
Business license
Transient occupancy
Grants and contributions not restricted to specific programs(l)
Investment earnings
Rent
Other
Special item -gain on sale of parkland
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Litigation- environmental lawsuits proceeds
Rent
Other
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
(l) Certain tax amounts have been reclassified in fiscal year 2013.
Source: City of Lodi Financial Services Division
2021 2020 2019 2018 2017
$ 12,672 $ 11,728 $ 11,050 $ 10,325 $ 9,984
378
252
139
44
-
24,303
20,084
14,287
11,333
11,749
6,073
5,760
5,399
5,147
4,903
9,582
9,612
9,212
9,218
9,099
2,092
1,884
1,887
1,822
1,736
900
988
736
867
849
14,166
475
441
601
2
1,966
1,921
1,576
311
257
1,721
1,693
1,553
-
-
850
953
353
933
722
4,448 4,270 4,233 4,252 4,051
79,151 59,620 50,866 44,853 43,352
2,223 4,816 1,584 716 816
3,937
3,101
2,321
2,244
2,786
(4,448)
(4,270)
(4,233)
(4,252)
(4,051)
1,712
3,647
(328)
(1,292)
(449)
80,863
63,267
50,538
43,561
42,903
24,843 16,124 7,696 (3,474) 7,396
26,386 7,010 11,712 12,417 9,690
$ 51,229 $ 23,134 $ 19,408 $ 8,943 $ 17,086
140
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property
Special assessments Ill
Sales Ill
Document transferlll
Franchise
Business license
Transient occupancy
Grants and contributions not restricted to specific programs(l)
Investment earnings
Rent
Other
Special item -gain on sale of parkland
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Litigation- environmental lawsuits proceeds
Rent
Other
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
(l) Certain tax amounts have been reclassified in fiscal year 2013.
Source: City of Lodi Financial Services Division
2016 2015 2014 2013 2012
$ 9,373 $ 8,969 $ 8,290 $ 8,075 $ 12,103
11,808
10,624
10,111
9,349
566
4,572
4,559
4,315
4,176
-
9,073
8,976
8,838
8,735
8,712
1,552
1,486
1,528
1,524
1,628
783
666
594
546
486
-
1
180
-
9,277
326
145
203
44
132
1,954
1,942
1,906
1,370
-
719
605
528
610
2,052
4,469 7,514 4,792 5,682 1,261
44,629 45,487 41,285 40,111 35,651
952
632
757
497
566
100
-
-
1,107
-
4
4
4
3,957
2,745
2,370
1,258
1,244
(4,469)
(7,514)
(4,792)
(5,682)
(1,261)
544
(4,133)
(1,661)
(2,820)
549
45,173
41,354
39,624
37,291
36,200
4,385 4,941 470 1,513 (3,754)
12,161 7,923 8,224 52,883 5,520
$ 16,546 $ 12,864 $ 8,694 $ 54,396 $ 1,766
Mil
CITY OF LODI
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
All other governmental funds
Fiscal Year
Reserved
2021
2020
2019
2018
2017
General Fund
Reserved
$ 15,641
$ 12,671
$ 10,717
$
$ -
Unreserved
-
-
-
-
Nonspendable
54
-
-
-
-
Committed
558
712
563
9,031
3,520
Assigned
-
-
-
-
-
Unassigned
24,437
14,520
11,172
9,737
11,448
Total General Fund
40,690
27,903
22,452
18,768
14,968
All other governmental funds
Reserved
-
-
Unreserved, reported in:
Special revenue funds
-
-
Debt service funds
-
-
Capital projects funds
-
-
-
-
-
Nonspendable
2
2
1
1
1
Assigned
9,638
6,744
8,979
-
-
Committed
914
690
716
-
-
Restricted
21,437
19,629
14,202
16,062
15,263
Unassigned
-
-
-
-
-
Total all other governmental funds
31,991
27,065
23,898
16,063
15,264
$ 72,681
$ 54,968
$ 46,350
$ 34,831
$ 30,232
Source: City of Lodi Financial Services Division
IEE
CITY OF LODI
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
2016 2015 2014 2013 2012
General Fund
Reserved
$ -
$
$ -
$ $
Unreserved
-
-
-
-
-
Nonspendable
33
-
10
9
6
Committed
465
345
301
277
-
Assigned
1,564
26
29
65
50
Unassigned
11,185
12,107
9,134
7,614
6,233
Total General Fund
13,247
12,478
9,474
7,965
6,289
All other governmental funds
Reserved
-
-
-
-
-
Unreserved, reported in:
Special revenue funds
-
Debt service funds
-
-
Capital projects funds
-
-
-
-
-
Nonspendable
1
1
4
3
1
Assigned
-
-
-
-
-
Committed
-
-
-
-
-
Restricted
13,867
11,957
11,764
12,556
15,017
Unassigned
-
-
(99)
(512)
(863)
Total all other governmental funds
13,868
11,958
11,669
12,047
14,155
Source: City of Lodi Financial Services Division
$ 27,115 $ 24,436 $ 21,143 $ 20,012 $ 20,444
143
CITY OF LODI
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
Revenues:
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits, and penalties
Investment and rental income
Contributions and donations
Miscellaneous revenue
Total revenues
Expenditures:
Current:
General government
Public protection
Public works
Community development
Library
Parks and recreation
Capital outlay
Debt service:
Interest
Principal payments
Advance refunding escrow
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from sale
Refunding bonds issued
Payment to refunded bond escrow agent
Capital lease proceeds
Loan proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of yearltl
Fund balances, end of year
Debt service as a percentage of noncapital expenditures
2021 (2) 2020111 2019 2018 2017
$ 31,698 $ 30,224 $ 28,423 $ 27,423 $ 26,491
24,302
20,084
14,287
-
-
2,621
1,774
1,570
1,764
2,015
22,657
10,499
9,213
20,807
23,975
10,081
8,333
6,558
6,020
5,722
217
1,053
1,274
1,396
906
5,193
4,728
2,994
2,325
2,319
-
-
-
-
818
1,265
845
812
1,206
-
98,034
77,540
65,131
60,941
62,246
25,845
13,019
9,609
9,738
9,499
38,110
37,410
31,949
30,788
30,201
6,555
5,436
5,452
4,628
4,608
2,127
2,249
2,112
1,756
1,651
1,025
1,181
1,166
1,058
1,153
2,827
2,764
2,680
2,497
2,378
6,843
4,679
3,380
8,296
11,592
696
732
821
805
858
1,142
1,106
1,080
1,028
1,240
85,170
68,576
58,249
60,594
63,180
12,864
8,964
6,882
347
(934)
10,788
10,735
13,201
13,863
11,723
(6,340)
(6,464)
(8,968)
(9,611)
(7,672)
28
404
4,476
4,271
4,637
4,252
4,051
17,340
13,235
11,520
4,599
3,117
55,341
41,733
34,831
30,232
2,963
$ 72,681
$ 54,968
$ 46,351 $
34,831 $
6,080
2.3% 2.9% 3.5% 3.5% 4.1%
')The beginning of year fund balance change was due to a reclassification of the Vehicle and Equipment Fund to an Internal Service Fund.
(Z) The beginning of year fund balance change was due to a reclassification of the Special Assessments Fund to a Special Revenue Fund.
144
CITY OF LODI
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
Revenues:
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits, and penalties
Investment and rental income
Contributions and donations
Miscellaneous revenue
Total revenues
Expenditures:
Current:
General government
Public protection
Public works
Community development
Library
Parks and recreation
Capital outlay
Debt service:
Interest
Principal payments
Advance refunding escrow
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from sale
Refunding bonds issued
Payment to refunded bond escrow agent
Capital lease proceeds
Loan proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of yearlti
Fund balances, end of year
Debt service as a percentage of noncapital expenditures
2016 2015 2014 2013 2012
$ 25,327 $ 24,631 $ 23,719 $ 23,022 $ 22,928
1,646
967
852
921
686
21,083
17,557
17,392
14,625
15,289
5,830
3,827
3,558
3,880
3,427
1,495
1,573
1,557
1,632
1,3S7
2,155
2,029
2,025
1,389
1,264
-
282
1,003
-
-
1,116
538
-
1,078
813
58,652
51,404
50,106
46,547
45,764
9,360
9,151
9,019
8,522
8,820
28,821
26,646
27,093
26,282
25,249
4,070
4,508
4,393
4,532
4,174
1,601
1,226
1,192
1,111
1,037
1,153
1,311
1,268
1,411
1,381
2,369
2,145
2,299
2,370
2,254
13,117
9,842
7,652
6,271
2,961
847 845 851 483 1,039
260 - - 245 630
- - - 1,689 -
61,598 55,674 53,767 52,916 47,545
(2,946) (4,270) (3,661) (6,369) (1,781)
13,310
15,599
11,596
12,546
14,486
(8,716)
(8,036)
(6,804)
(6,864)
(11,348)
20,103
-
(19, 848)
563
468
-
-
5,625
7,563
4,792
5,937
3,138
2,679
3,293
1,131
(432)
1,357
284
(3,009)
(4,140)
(3,708)
(5,065)
$ 2,963
$ 284 $
(3,009)
$ (4,140) $
(3,708)
2.3%
1.8%
1.8%
5.2%
3.7%
')The beginning of year fund balance change was due to a reclassification of the Vehicle and Equipment Fund to an Internal Service Fund.
(Z) The beginning of year fund balance change was due to a reclassification of the Special Assessments Fund to a Special Revenue Fund.
145
CITY OF LODI
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
2021 2020 2019 2018 2017
Property
$ 13,050
$ 11,980 $
11,050
$ 10,043
$ 9,744
Sales and Use
24,302
20,084
14,286
11,333
11,750
Transient Occupancy
899
987
735
867
849
Franchise
2,207
2,338
2,128
2,059
1,915
Documentary Transfer
86
(25)
230
281
240
Motor Vehicle in Lieu
6,073
5,760
5,399
5,176
4,904
Public Protection
527
462
441
401
378
Business License
2,092
1,884
1,887
1,822
1,736
In Lieu Franchise
7,375
7,274
7,197
7,159
7,131
Totals
$ 56,611
$ 50,744 $
43,353
$ 39,141
$ 38,647
Note: General governmental tax revenues are included in taxes, licenses and permits, intergovernmental
revenues and miscellaneous revenues.
146
CITY OF LODI
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
2016 2015 2014 2013 2012 % Change 2012
to 2021
Property
$ 9,151
$ 8,810
$ 8,314
$ 7,955
$ 7,861
19.98%
Sales and Use
11,809
10,625
10,111
9,350
9,246
53.68%
Transient Occupancy
783
666
594
545
486
85.61%
Franchise
1,990
1,942
1,862
1,758
1,734
118.03%
Documentary Transfer
223
159
155
120
91
84.00%
Motor Vehicle in Lieu
4,572
4,533
4,289
4,143
4,151
12.55%
Public Protection
365
362
341
325
295
30.47%
Business License
1,552
1,133
1,220
1,187
1,182
65.53%
In Lieu Franchise
7,082
7,033
6,977
6,977
6,977
-13.93%
Totals
$ 37,527
$ 35,263
$ 33,863
$ 32,360
$ 32,023
25%
Note: General governmental tax revenues are included in taxes, licenses and permits, intergovernmental
revenues and miscellaneous revenues.
IEE
CITY OF LODI
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
ill All exemptions (secured, utility, and unsecured rolls) are homeowners exemption $58,335 and other
exemption of $295,226 =$353,561
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of the property being taxed.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum
increase of 2%). With few exceptions, property is only assessed at the time that it is sold to a new owner. At
that point, the property being sold is reassessed at the purchase price. 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.
(Z) 2019 & 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
148
Fiscal Year
2021
2020
2019 (2)
2018 12i
2017
Secured roll
$
6,962,679
$ 6,566,183
$
6,174,155
$ 5,903,144
$ 5,603,023
Utility roll
2,047
1,901
2,299
2,299
2,299
Unsecured roll
231,423
247,608
258,682
266,956
254,946
Gross assessed value
7,196,149
6,815,692
6,435,136
6,172,399
5,860,268
Less exemptions (1)
353,561
338,170
345,178
339,542
334,485
Net assessed value
$
6,842,588
$ 6,477,522
$
6,089,958
$ 5,832,857
$ 5,525,783
Land
$
2,077,223
$ 1,971,712
$
1,873,216
$ 1,812,408
$ 1,711,208
Improvements
4,894,256
4,614,260
4,286,480
4,042,264
3,854,604
Personal property
224,670
229,720
275,440
317,727
294,457
Gross assessed value
7,196,149
6,815,692
6,435,136
6,172,399
5,860,269
Less exemptions (1)
353,561
338,170
345,178
339,542
334,485
Net assessed value
$
6,842,588
$ 6,477,522
$
6,089,958
$ 5,832,857
$ 5,525,784
Total Direct Tax Rate
1.00%
1.00%
1.00%
1.00%
1.00%
ill All exemptions (secured, utility, and unsecured rolls) are homeowners exemption $58,335 and other
exemption of $295,226 =$353,561
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of the property being taxed.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum
increase of 2%). With few exceptions, property is only assessed at the time that it is sold to a new owner. At
that point, the property being sold is reassessed at the purchase price. 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.
(Z) 2019 & 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
148
CITY OF LODI
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
ill All exemptions (secured, utility, and unsecured rolls) are homeowners exemption $58,335 and other exemption of
$295,226 =$353,561
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum
rate of 1% based upon the assessed value of the property being taxed.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%).
With few exceptions, property is only assessed at the time that it is sold to a new owner. At that point, the property being
sold is reassessed at the purchase price. 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.
(Z) 2019 & 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
149
Fiscal Year
2016
2015
2014
2013
2012
Secured roll
$
5,394,659
$ 5,156,704
$ 4,895,091
$ 4,737,807
$ 4,738,823
Utility roll
3,490
3,490
3,490
2,382
2,382
Unsecured roll
250,160
257,856
230,827
233,398
226,651
Gross assessed value
5,648,309
5,418,050
5,129,408
4,973,587
4,967,856
Less exemptions (1)
331,562
326,833
324,439
327,783
314,448
Net assessed value
$
5,316,747
$ 5,091,217
$ 4,804,969
$ 4,645,804
$ 4,653,408
Land
$
1,601,581
$ 1,469,347
$ 1,364,401
$ 1,227,969
$ 1,264,884
Improvements
3,736,867
3,610,391
3,443,266
3,445,328
3,401,792
Personal property
309,861
338,312
321,741
300,290
301,180
Gross assessed value
5,648,309
5,418,050
5,129,408
4,973,587
4,967,856
Less exemptions (1)
331,562
326,833
324,439
327,783
314,448
Net assessed value
$
5,316,747
$ 5,091,217
$ 4,804,969
$ 4,645,804
$ 4,653,408
Total Direct Tax Rate
1.00%
1.00%
1.00%
1.00%
1.00%
ill All exemptions (secured, utility, and unsecured rolls) are homeowners exemption $58,335 and other exemption of
$295,226 =$353,561
Note: In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum
rate of 1% based upon the assessed value of the property being taxed.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%).
With few exceptions, property is only assessed at the time that it is sold to a new owner. At that point, the property being
sold is reassessed at the purchase price. 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.
(Z) 2019 & 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
149
CITY OF LODI
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(Rate per $100 of assessed value)
(1) Amounts restated based on new assessed value information provided.
Source: San Joaquin County Auditor data, MuniServices, LLC / Avenu Insights
& Analytics
Table has been reformatted to comply with GASB No. 44.
TRA represented: 1-001.
150
Basic
Fiscal Year
Countywide Levy
School
All Other
Total
2021
1.0000
0.0829
0.0183
1.1012
2020
1.0000
0.0806
0.0199
1.1005
2019
1.0000
0.0843
0.0225
1.1068
2018
1.0000
0.0857
0.0180
1.1037
2017
1.0000
0.0371
0.0180
1.0551
2016
1.0000
0.0401
0.0198
1.0599
2015
1.0000
0.0425
0.0233
1.0658
2014 (1)
1.0000
0.0574
0.0000
1.0574
2013
1.0000
0.0646
0.0000
1.0646
2012
1.0000
0.0658
0.0000
1.0658
(1) Amounts restated based on new assessed value information provided.
Source: San Joaquin County Auditor data, MuniServices, LLC / Avenu Insights
& Analytics
Table has been reformatted to comply with GASB No. 44.
TRA represented: 1-001.
150
CIN OF LODI
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Dollar amounts in thousands)
*Includes Secured and Unsecured Property.
Source: San Joaquin County Assessor data, MuniServices, LLC / Avenue Insights & Analytics
151
Fiscal Year
2021
2012
Percent of Total
Percent of Total
Taxable Assessed
City Taxable Taxable
Assessed
City Taxable
Taxpayer
Value
Rank
Assessed Value
Value
Rank
Assessed Value
Pacific Coast Producers
112,642
1
1.650 % $
67,027
1
1.480
Calif Physicians Service Corp
54,565
2
0.800
55,304
2
1.220
Reynolds Ranch Sr Development Company LP
41,631
3
0.610
Big Box Property Owner E LLC
39,130
4
0.570
CaLPurnia Associates LP
34,545
5
0.510
Wal Mart Real Est Business Trust
32,665
6
0.480
Cepheid
32,217
7
0.470
Cottage Bakery Inc Et al
30,274
8
0.440
21,944
3
0.480
Winterfell Vintage CA Owner LP
30,134
9
0.410
Sandpiper Pennebaker Group LLC
28,272
10
0.300
Dart Container Corporation
18,093
4
0.400
Wine & Roses LLC
15,984
5
0.350
Lowes HIW Inc
13,718
6
0.300
First Lodi Plaza Associates
12,642
7
0.280
Lakeview Mills Assoc LP Et al
12,612
8
0.280
Target Corp
12,334
9
0.270
Fountains At Lodi LLC
8,606
10
0.190
Principal Secured Property Valuation
436,075
6.240
238,265
5.355
Other Secured Taxpayers
6,526,604
95.382
4,525,684
101.712
Exemptions relative to secured tax roll
120,091
1.620
314,448
7.067
Total Secured Property Valuation
$ 6,842,588
100.000 % $
4,449,501
100.000
*Includes Secured and Unsecured Property.
Source: San Joaquin County Assessor data, MuniServices, LLC / Avenue Insights & Analytics
151
CITY OF LODI
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Ill Per agreement with San Joaquin County, the County provides the City of Lodi
with 100% of the amount owed to the City for secured properties, regardless of
collection status. In exchange, the County is entitled to 100% of revenues
collected for interest and penalties. This agreement is commonly referred to as the
Teeter Plan.
Source: San Joaquin County Auditor/Controller's Office
152
Taxes
Collected Within the
Total Collections
Levied for
Fiscal Year of the Levy
to Date
the Fiscal
Percent of
Percent of
Fiscal Year
Year
Amount
Levy (l)
Amount
Levy
2021
$ 12,526
$ 12,526
100.0%
$ 12,526
100.0%
2020
11,642
11642
100.0%
11,642
100.0%
2019
10,883
10,883
100.0%
10,883
100.0%
2018
10,222
10,222
100.0%
10,222
100.0%
2017
9,821
9,821
100.0%
9,821
100.0%
2016
9,117
9,117
100.0%
9,117
100.0%
2015
8,742
8,742
100.0%
8,742
100.0%
2014
8,353
8,353
100.0%
8,353
100.0%
2013
7,865
7,865
100.0%
7,865
100.0%
2012
7,754
7,754
100.0%
7,754
100.0%
Ill Per agreement with San Joaquin County, the County provides the City of Lodi
with 100% of the amount owed to the City for secured properties, regardless of
collection status. In exchange, the County is entitled to 100% of revenues
collected for interest and penalties. This agreement is commonly referred to as the
Teeter Plan.
Source: San Joaquin County Auditor/Controller's Office
152
CITY OF LODI
ELECTRICITY SOLD BY TYPE OF CUSTOMER
LAST TEN FISCAL YEARS
Notes:
"Large commercial" previously had medium commercial combined now "Medium Commercial" stated separately.
Small, Medium, Large Industrial now combined into one "Industrial'.
Source: City of Lodi Financial Services Division
Intranet Dashboard Stats Util by Month and Sch
Ill Large Industrial for 2018 reported as N/A in 2018 - correct number is 55.
Ill Small Industrial for 2018 reported as N/A in 2018 - correct number is 11.
153
Billed Accounts
Type of Customer
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
City Accounts
325
231
248
223
217
213
212
207
204
195
Contract Large Industrial
-
-
-
-
-
-
-
-
-
-
Contract Medium Industrial
Contract Small Industrial
-
-
-
-
-
-
Domestic Residential
24,675
23,234
22,228
22,041
21,917
22,497
22,393
22,623
22,541
22,361
Domestic Mobile Home Park
13
13
13
13
13
13
13
13
13
13
Dusk to Dawn
90
89
91
92
85
85
88
89
88
92
Industrial
-
-
-
43
-
-
Large Commercial
402
394
383
96
355
348
337
339
344
336
Large Industrial (t)
16
38
69
55
35
44
41
39
40
38
Medium Commercial
-
-
-
375
-
-
Medium Industrial
11
23
14
10
10
11
12
11
11
9
Residential Low Income
2,725
2,248
2,796
2,539
2,669
2,688
2,798
2,788
2,582
2,531
Small Commercial
3,619
3,254
2,795
3,148
3,434
3,416
3,332
3,367
3,358
3,340
Small Industrial (2)
6
7
11
11
10
11
7
8
9
11
Total
31,882
29,531
28,648
28,646
28,745
29,326
29,233
29,484
29,190
28,926
Notes:
"Large commercial" previously had medium commercial combined now "Medium Commercial" stated separately.
Small, Medium, Large Industrial now combined into one "Industrial'.
Source: City of Lodi Financial Services Division
Intranet Dashboard Stats Util by Month and Sch
Ill Large Industrial for 2018 reported as N/A in 2018 - correct number is 55.
Ill Small Industrial for 2018 reported as N/A in 2018 - correct number is 11.
153
CITY OF LODI
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Dollar amounts in thousands, except per capita)
Details regarding the City's outstanding debt can be found in Note 7 of these financial statements.
I1I See Demographic and Economic Statistics table for personal income and population.
Source: City of Lodi Financial Services Division
154
Governmental Activities
Business -type Activities
Lease
Total
Certificates of
Notes/
Total
Total
Percent of
Fiscal
Revenue
Loan
Notes
Capital Governmental
Participation and
Loan
Business -type
Primary
Personal
Per
Year
Bonds
Payable
Payable
Lease
Activities
Revenue Bonds
Payable
Activities
Government
Income Ill
Capita (1)
2021
$ 14,882
$ -
$ -
$ 169
15,051
$ 108,741
$454
109,195
124,246
4.54 %
$ 1,807
2020
15,901
97
251
16,249
114,866
673
115,539
131,788
4.81
1,940
2019
16,885
193
331
17,409
121,566
887
122,453
139,862
5.03
2,049
2018
17,839
286
410
18,535
125,062
1,096
126,158
144,693
5.56
2,156
2017
18,753
378
487
19,618
138,193
1,300
139,493
159,111
6.41
2,484
2016
19,637
468
245
562
20,912
143,417
1,500
144,917
165,829
7.49
2,603
2015
19,950
-
245
-
20,195
149,767
-
149,767
169,962
7.67
2,667
2014
20,004
245
20,249
157,297
157,297
177,546
8.45
2,789
2013
20,058
245
20,303
167,743
167,743
188,046
9.63
2,988
2012
21,025
245
21,270
173,241
173,241
194,511
10.07
3,096
Details regarding the City's outstanding debt can be found in Note 7 of these financial statements.
I1I See Demographic and Economic Statistics table for personal income and population.
Source: City of Lodi Financial Services Division
154
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
ili Assessed value has been used because the actual value of taxable property is not readily
available in the State of California.
Source: City of Lodi Financial Services Division
155
CITY OF LODI
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Dollar amounts in thousands, except per capita)
Less Amounts
Percent of
Fiscal
Lease Revenue
Available for
Assessed Value
Per
Year
Bonds
Debt Service Net
of Property
Capita
2021
$ 14,882
$ - $ 14,882
$ 6.4
$ 216.46
2020
15,901
- 15,901
0.2
234.08
2019
16,885
- 16,885
4.8
247.32
2018
17,839
- 17,839
0.3
265.77
2017
18,753
- 18,753
0.4
292.75
2016
19,637
- 19,637
0.4
310.62
2015
19,950
- 19,950
0.4
313.09
2014
20,004
- 20,004
0.4
314.28
2013
20,058
10 20,048
0.4
318.58
2012
21,025
1,692 19,333
0.4
307.73
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
ili Assessed value has been used because the actual value of taxable property is not readily
available in the State of California.
Source: City of Lodi Financial Services Division
155
Assessed valuation (1)
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit as
a percent of debt limit
CITY OF LODI
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
FISCAL YEAR
2021 2020 2019 2018 2017
$ 6,900,923 $ 6,149,015 $ 5,891,912 $ 5,584,600 $ 5,585,242
25% 25% 25% 25% 25%
1,725,231 1,537,254 1,472,978 1,396,150 1,396,311
15% 15% 15% 15% 15%
258,785 230,588 220,947 209,423 209,447
14,882 15,901 16,885 17,839 18,753
$ 243,903 $ 214,687 $ 204,062 $ 191,584 $ 190,694
5.8% 6.9% 7.6% 8.5% 9.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted
when assessed valuation was based upon 25% of market value. Effective with the 1982 fiscal year, each parcel is now assessed at 100% of market value
(as of the most recent change in ownership for that parcel). The computation shown above reflect a conversion of assessed valuation data for each fiscal
year from the current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California
for local governments located within the state.
ili All exemptions (secured, utility, and unsecured rolls) are homeowners which is added to Net Assessed Value
* - 2019 & 2018 figures updated per San Joaquin County amounts
Source: California Municipal Statistics Inc.
156
Assessed valuation (1)
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit as
a percent of debt limit
CITY OF LODI
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
FISCAL YEAR
2016 2015 2014 2013 2012
$ 5,377,266
$ 5,152,666 $
4,867,731
$ 4,709,916
$ 4,718,766
25%
25%
25%
25%
25%
1,344, 317
1,288,167
1,216,933
1,177,479
1,179, 692
15%
15%
15%
15%
15%
201,647 193,225 182,540 176,622 176,954
19,637 19,950 20,004 20,048 19,333
$ 182,010 $ 173,275 $ 162,536 $ 156,574 $ 157,621
9.7% 10.3% 11.0% 11.4% 10.9%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was
enacted when assessed valuation was based upon 25% of market value. Effective with the 1982 fiscal year, each parcel is now assessed at 100% of
market value (as of the most recent change in ownership for that parcel). The computation shown above reflect a conversion of assessed valuation
data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted
by the State of California for local governments located within the state.
ili All exemptions (secured, utility, and unsecured rolls) are homeowners which is added to Net Assessed Value
* - 2019 & 2018 figures updated per San Joaquin County amounts
Source: California Municipal Statistics Inc.
157
CITY OF LODI
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
June 30. 2021
OVERLAPPING DEBT:
San Joaquin Community College District
Lodi Unified School District
San Joaquin County Certificates of Participation
Lodi Unified School District Certificates of Participation
SUBTOTAL OVERLAPPING DEBT
DIRECT DEBT:
City of Lodi Lease Revenue Bonds
City of Lodi -Capital lease
SUBTOTAL DIRECT DEBT
TOTAL DIRECT AND OVERLAPPING DEBT (2)
2020-21 Gross Assessed Valuation $ 6,900,922,739
2020-21 Population 68,751
DEBT RATIOS
Total Gross Debt
Percentage City's Share
Total Debt Applicable (') of Debt
$ 200,205,000
7.459 % $
14,933,291
227,060,000
36.547
82,983,618
65,595,000
8.105
5,316,475
11,480,000
36.547
4,195,596
107,428,980
14,335,000
100.00
14,335,000
169,099
100.00
169,099
14,504,099
$
121,933,079
Per Capita
Value
121,933,079
1,774
1.77%
i1 Percent of overlapping agency's assessed valuation located within the boundaries of the City.
x1 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease
obligations.
SOURCE: California Municipal Statistics, San Francisco, CA
San Joaquin County Auditors -Controller Office
State of California, Department of Finance, Demographic Research Unit
158
CITY OF LODI
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Dollars amounts in thousands)
Includes all nongeneral obligation long-term debt backed by pledged revenues.
Details regarding the City's outstanding debt can be found in Note 8 to the basic financial statements.
Ill Total operating revenues including investment earnings, operating grants, capital contributions
(including developer impact fees) and other revenue.
IZI Total operating expenses including cost of services paid to the General Fund and excluding in -lieu fees,
depreciation and amortization.
ii Net of Build America Bonds interest subsidy - Water Revenue Bonds.
159
Adjusted
Adjusted
Net
Fiscal
Annual
Operating
Available
Debt Service
Year
Revenues(l)
Expenses IZI
Revenue
Principal
Interest (3)
Total
Coverage
Electric Revenue Certificates of Participation
2021
$ 77,896
$ 58,841
$ 19,055
$ 2,250
$ 1,938
$ 4,188
4.55
2020
76,445
64,558
11,887
1,710
3,747
5,457
2.18
2019
69,846
58,916
10,930
-
1,497
1,497
7.30
2018
73,505
50,317
23,188
2,510
2,788
5,298
4.38
2017
67,815
52,259
15,556
2,390
2,898
5,288
2.94
2016
70,440
51,205
19,235
5,195
3,094
8,289
2.32
2015
67,132
52,116
15,016
4,960
3,358
8,318
1.81
2014
67,144
50,349
16,795
4,750
3,606
8,356
2.01
2013
63,974
51,209
12,765
4,575
3,839
8,414
1.52
2012
65,220
50,164
15,056
3,270
4,021
7,291
2.07
Wastewater Certificates
of Participation and Revenue
Bonds
2021
$ 17,949
$ 6,001
11,948
$ 1,899
1,434
3,333
3.58
2020
19,441
10,119
9,322
1,819
1,506
3,325
2.80
2019
17,864
8,301
9,563
1,753
1,573
3,326
2.88
2018
19,317
7,302
12,015
1,650
954
2,604
4.61
2017
16,707
10,128
6,579
1,575
1,492
3,067
2.15
2016
16,941
7,237
9,704
1,535
2,131
3,666
2.65
2015
15,845
6,335
9,510
1,500
2,172
3,672
2.59
2014
15,186
6,003
9,183
4,610
2,294
6,904
1.33
2013
14,305
5,674
8,631
1,500
2,560
4,060
2.13
2012
13,787
6,659
7,128
1,430
2,688
4,118
1.73
Water Revenue Bonds
2021
$ 16,095
$ 4,932
$ 11,163
$ 1,040
$ 1,033
$ 2,073
5.38
2020
17,061
11,316
5,745
1,010
1,422
2,432
2.36
2019
15,509
7,173
8,336
980
1,368
2,348
3.55
2018
17,187
10,895
6,292
950
1,356
2,306
2.73
2017
13,844
7,733
6,111
915
1,393
2,308
2.65
2016
13,025
6,801
6,224
870
1,482
2,352
2.65
2015
13,370
5,815
7,555
850
1,506
2,356
3.21
2014
14,166
6,835
7,331
825
1,530
2,355
3.11
2013
13,367
6,899
6,468
800
1,535
2,335
2.77
2012
13,275
5,392
7,883
775
1,530
2,305
3.42
Includes all nongeneral obligation long-term debt backed by pledged revenues.
Details regarding the City's outstanding debt can be found in Note 8 to the basic financial statements.
Ill Total operating revenues including investment earnings, operating grants, capital contributions
(including developer impact fees) and other revenue.
IZI Total operating expenses including cost of services paid to the General Fund and excluding in -lieu fees,
depreciation and amortization.
ii Net of Build America Bonds interest subsidy - Water Revenue Bonds.
159
CITY OF LODI
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
160
Personal
Per
Population
San Joaquin
Population
Rank in Size
Income
Capita
Fiscal
Square
City
Percent
County
Percent
of California
(millions of
Personal
Unemployment
Year
Miles
Population
Change
Population
of County
Cities
dollars)
Income
Rate
2021
13.98
68,751
-1.2%
783,534
8.8%
131
$ 2,739
$ 43,523
10.0%
2020
13.98
67,930
0.5%
773,632
8.8%
133
2,739
40,322
14.4%
2019
13.98
68,272
0.8%
770,385
8.9%
134
2,779
40,707
6.1%
2018
13.98
67,121
0.7%
758,744
8.8%
136
2,602
38,769
6.9%
2017
13.98
64,058
0.7%
746,868
8.6%
139
2,483
38,769
6.9%
2016
13.98
63,219
0.7%
733,383
8.6%
139
2,284
36,136
7.8%
2015
13.98
63,719
0.4%
719,511
8.9%
138
2,215
34,755
7.8%
2014
13.98
63,651
0.2%
710,731
9.0%
135
2,102
33,024
8.8%
2013
13.98
62,930
0.2%
698,414
9.0%
137
1,952
31,013
9.0%
2012
13.98
62,825
0.8%
695,750
9.0%
136
1,931
30,732
11.3%
160
Employer
Lodi Unified School District
Pacific Coast Producers
Adventist Health Lodi Memorial
Blue Shield of CA
Walmart Supercenter
City of Lodi
Rich Products formerly known as Cottage Bakery
Costco Wholesale
Frank C Alegre Trucking Inc
Farmers & Merchant Bank
Cottage Bakery
General Mills Ill
Target
Total
CITY OF LODI
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Current
Nine Years Ago
Percent
Percent
of Total City
of Total City
Employees
Rank Employment
Employees
Rank
Employment
Labor Force
1,389
1 4.63 %
3,687
1
12.85 %
28,700
1,298
2 4.33
1,000
3
3.48
28,700
1,204
3 4.01
1,340
2
4.67
28,700
1,042
4 3.47
915
4
3.19
28,700
439
5 1.46
240
9
0.84
28,700
415
6 1.38
383
7
1.33
28,700
276
7 0.92
28,700
265
8 0.88
28,700
210
9 0.70
28,700
191
10 0.64
283
8
0.99
28,700
-
527
5
1.84
28,700
-
478
6
1.67
28,700
205
10
0.71
28,700
6,729
22.42
9,058
31.56
Note: Principal employers are based on the best available information.
Source: MuniServices, LLC / an Avenu Insights & Analytics Company
Results based on direct correspondence with city's local businesses.
* Count includes FTE, PTE, Temporary & Seasonal Employees.
Ill General Mills permanently closed.
161
CITY OF LODI
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY DEPARTMENT - LAST TEN FISCAL YEARS
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Department:
Administration
Community Development
Electric
Fire
Internal Services
Library
Parks, Recreation and Cultural Services
Police
Public Works
Total
12
9
9
9
10
10
10
10
10
12
13
11
11
11
11
11
11
9
9
9
52
52
52
52
51
49
44
43
40
40
57
57
53
53
54
54
57
53
53
54
35
34
31
31
32
31
31
31
31
29
8
8
7
7
7
10
11
10
11
12
24
24
24
24
24
26
28
27
27
29
111
109
103
103
103
102
107
104
104
103
109
103
101
101
101
100
97
95
92
93
421 407 391 391 393 393 396 382 377 381
Internal Services consists of Budget, Financial Services, Human Resources, and Information Services
Source: City of Lodi Budget Document
162
CITY OF LODI
OPERATING INDICATORS BY FUNCTION/PROGRAM/DEPARTMENT
LAST TEN FISCAL YEARS
Source: City of Lodi
163
Fiscal Year
2021
2020
2019
2018
2017
General government:
Building permits issued
3,017
2,500
2,502
2,699
2,447
Business tax certificates:
Retail sales and service
3,008
2,755
3,014
2,137
2,443
Manufacturers and processors
167
81
87
75
76
Professions
328
315
330
294
308
Miscellaneous contractors, peddlers,
delivery vehicles, etc.
1,464
1,518
1,986
1,232
949
Utility billing/customer service:
Number of customers
25,166
24,764
24,576
24,259
26,018
Energy sales (KWH)
439,083,721
417,003,511
410,566,814
425,157,874
425,410,574
Peak demand (MW)
132.50
125.90
118
130.9
129
Public safety:
Police:
Major reported crimes
1,643
1,938
1,943
2,062
2,025
Total arrests
3,432
3,792
3,611
3,460
4,226
Dispatched calls for service
34,046
36,053
37,806
37,301
37,866
Fire:
Interior structure fire calls
130
133
70
56
51
Non-structural fire calls
192
188
255
235
177
Hazardous materials calls
78
64
87
55
90
Emergency medical calls
3,866
3,557
3,915
5,364
3,572
Total emergency calls
7,206
7,211
7,600
6,996
5,869
Total number of units dispatched
7,629
8,317
7,701
8,230
7,225
Public works:
Miles of streets resurfaced
6.5
6.6
3
0
6
Fleet job orders completed
2147
2106
1,866
1,744
2,129
Trees planted
245
657
500
372
135
Water utility:
New connections
227
189
290
180
205
Water main breaks
6
5
1
2
2
Wastewater utility:
Average daily treatment (million gal/day]
4.50MG
4.55MG
4.6MG
4.5MG
4.65MG
Library:
Registered borrowers
54,263
64,864
67,334
63,631
64,742
Circulation of library materials
35,528
134,950
168,793
162,796
187,853
Reference, research and informational
questions answered
2495
8024
11,296
9,852
9,695
Annual attendance at libraries
67,892
172,631
231,391
225,558
231,602
Number of programs offered
265
653
715
789
764
Annual attendance at programs
4168
14863
18,825
24,682
23,960
Public access computer usage
12,376
24,033
27,603
25,825
31,205
Community center:
Community center bookings
307
501
809
595
597
Instructional classes
59
481
616
438
554
Registered students
157
1,172
2,546
2,695
3,010
Yearly attendance
2,663
9,521
14,220
11,011
13,925
Parks and recreation:
CITY after school program
230/5
2,474/4
2,950/4
2,705/4
1,964/4
LUSD After School Program
3993/12
9,944/12
9,867/10
12,985/13
13,016/3
Camps
284/3
225/3
631/3
702/3
103
Adult sports
Program/Participation
240
1,176
2,045
1,990
1,895
Programs offered
6
6
14
14
14
Partnerships
0
0
2
2
2
Tournaments
0
0
7
4
6
Youth/Teen sports
Program attendance
128
1,165
3,517
3,480
3,496
Programs offered
2
11
18
11
18
Aquatics
Program attendance
4,937
18,336
18,202
26,571
28,974
Number of programs
8
13
12
8
14
Source: City of Lodi
163
CITY OF LODI
OPERATING INDICATORS BY FUNCTION/PROGRAM/DEPARTMENT
LAST TEN FISCAL YEARS (CONTINUED)
Source: City of Lodi
164
Fiscal Year
2016
2015
2014
2013
2012
General government:
Building permits issued
2,482
2,404
2,404
1,578
1,461
Business tax certificates:
Retail sales and service
2,288
2,281
2,281
2,526
2,485
Manufacturers and processors
78
23
23
78
77
Professions
316
323
323
362
364
Miscellaneous contractors, peddlers,
delivery vehicles, etc.
1,268
1,256
1,256
1,456
1,362
Utility billing/customer service:
Number of customers
26,034
25,912
25,912
23,927
23,761
Energy sales (KWH)
437,246,335
438,780,911
438,780,911
435,822,465
435,655,731
Peak demand (MW)
124
134
134
122
116
Public safety:
Police:
Major reported crimes
3,068
2,268
2,268
2,643
3,573
Total arrests
4,083
3,690
3,690
3,825
4,350
Dispatched calls for service
40,390
35,992
35,992
50,124
46,756
Fire:
Interior structure fire calls
33
32
32
67
57
Non-structural fire calls
154
143
143
209
163
Hazardous materials calls
73
65
65
58
41
Emergency medical calls
3,123
3,418
3,418
3,882
3,820
Total emergency calls
5,238
3,666
3,666
5,823
5,620
Total number of units dispatched
7,430
5,727
5,727
7,954
7,855
Public works:
Miles of streets resurfaced
6
6
6
6
6
Fleet job orders completed
2,162
2,500
2,500
1,803
1,953
Trees planted
135
135
135
131
131
Water utility:
New connections
69
8
8
8
7
Water main breaks
3
16
16
14
10
Wastewater utility:
Average daily treatment (million gal/day]
4.6MG
4.6MG
4.6MG
5.10MG
5.5MG
Library:
Registered borrowers
60,362
58,824
58,824
51,594
47,147
Circulation of library materials
199,096
197,673
197,673
215,293
217,742
Reference, research and informational
questions answered
11,109
13,189
13,189
16,270
14,463
Annual attendance at libraries
245,936
224,762
222,148
Number of programs offered
456
432
432
407
432
Annual attendance at programs
15,452
12,888
12,888
14,443
12,993
Public access computer usage
34,071
34,071
41,180
45,871
47,428
Community center:
Community center bookings
758
794
769
718
698
Instructional classes
518
500
553
580
307
Registered students
2,744
2,586
3,269
2,819
3,713
Yearly attendance
13,925
13,925
13,925
13,925
13,925
Parks and recreation:
CITY after school program
1,898/4
1,679/4
1,630/4
1,811/4
1,783/4
LUSD After School Program
12,318/13
12,001/13
12,878/13
11,800/13
8,285/9
Camps
67
74
89
45
71
Adult sports
Program/Participation
1,976
2,106
2,082
2,246
2,420
Programs offered
15
18
17
16
15
Partnerships
2
2
2
2
3
Tournaments
8
10
5
6
12
Youth/Teen sports
Program attendance
3,652
3,621
3,672
3,643
3,889
Programs offered
18
18
18
19
24
Aquatics
Program attendance
28,195
28,009
27,731
23,414
34,366
Number of programs
14
15
13
13
25
Source: City of Lodi
164
CITY OF LODI
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM/DEPARTMENT
LAST TEN FISCAL YEARS
Source: City of Lodi Departments
165
Fiscal Year
2021
2020
2019
2018
2017
General government:
Total square miles
13.98
13.98
13.98
13.98
13.98
Public safety:
Police:
Facilities:
Stations
1
1
1
1
1
Animal control facility
1
1
1
1
1
Police training facility (pistol range)
1
1
1
1
1
Vehicles:
Marked patrol cars
29
27
21
23
23
Motorcycles and scooters
5
5
5
6
7
Animal control vehicles
2
2
2
2
2
Other automobiles
37
35
36
37
37
Fire:
Facilities:
Fire stations
4
4
4
4
4
Vehicles:
Fire engines
8
7
6
6
7
Trucks/Trailers
5
5
5
5
8
Other automobiles
8
6
5
8
5
Boat
1
Public works:
Miles of streets
198
194
190
190
202
Miles of alley ways
12
12
12
12
16
Traffic signals
70
70
69
69
68
Street lights
7,910
7,776
7,739
7,697
7,270
Parks and recreation:
Parks and squares
29
29
28
28
26
Park acreage
371
371
367
366
361
Boating facilities - launch lanes
1
1
1
1
1
Senior center
1
1
1
1
1
Community Centers
1
1
1
1
1
Swimming pools
4
4
4
4
4
Baseball/softball diamonds
18
18
20
20
20
Tennis courts
9
9
11
11
11
Pickleball courts
6
6
-
-
-
Skateboard park
1
1
1
1
1
Playgrounds
22
22
20
17
20
Ballpark
24
24
24
24
24
Soccer Field
22
22
22
22
22
Football Field
1
1
1
1
1
Handball/Basketball/Volleyball Courts/
Bocce Courts
15
15
15
12
12
Horseshoe Pits
9
9
9
8
8
Library:
Central library
1
1
1
1
1
Total items in collection
106,975
108,750
110,000
111,544
125,730
Integrated library system
1
1
1
1
1
Microfilm readers
0
0
0
0
0
Microfilm readers/printers
0
0
0
0
1
Self check out machines
3
3
3
3
3
Electric utility:
Overhead lines 12kv (miles)
116.98
117
117
117.19
117
Overhead lines 60kv(miles)
14
14
14
13.56
14
Underground lines (miles)
138.69
133
129
128.36
123
Water utility:
Water main lines
248
245
245
245
243
Water storage capacity (gallons)
5,100,000
4,100,000
4,100,000
4,100,000
4,100,000
Waterwells
28
28
28
28
28
Water reservoirs
4
3
3
3
3
Water Treatment Plant
1
1
1
1
1
Wastewater utility:
Wastewater main lines (miles)
205
203
203
203
196
Treatment capacity
8.5MG
8.5MG
8.5MG
8.5MG
8.5MG
Wastewater treatment plant
1
1
1
1
1
Wastewater Pump Stations
13
13
13
13
9
Stormwater utility:
Stormwater main drain lines (miles)
132
130
130
130
128
Stormwater pump stations
17
17
17
17
16
Central parking district:
Parking structure
1
1
1
1
1
Parking spaces
2450
2450
2,450
2,450
2,450
Parking lots
25
25
25
25
25
Source: City of Lodi Departments
165
CITY OF LODI
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM/DEPARTMENT
LASTTEN FISCALYEARS (CONTINUED)
Source: City of Lodi Departments
166
Fiscal Year
2016
2015
2014
2013
2012
General government:
Total square miles
13.98
13.98
13.98
13.98
13.98
Public safety:
Police:
Facilities:
Stations
1
1
1
1
1
Animal control facility
1
1
1
1
1
Police training facility (pistol range)
1
1
1
1
1
Vehicles:
Marked patrol cars
23
23
23
23
23
Motorcycles and scooters
7
7
5
5
5
Animal control vehicles
2
2
2
2
2
Other automobiles
37
37
37
37
37
Fire:
Facilities:
Fire stations
4
4
4
4
4
Vehicles:
Fire engines
6
6
6
6
6
Trucks/Trailers
6
6
6
6
5
Other automobiles
11
11
11
11
9
Boat
Public works:
Miles of streets
202
202
202
202
202
Miles of alley ways
16
16
16
16
16
Traffic signals
67
67
67
67
67
Street lights
7,270
7,270
7,270
7,270
7,270
Parks and recreation:
Parks and squares
26
26
26
26
26
Park acreage
361
361
361
361
373
Boating facilities - launch lanes
1
1
1
1
1
Senior center
1
1
1
1
1
Community Centers
1
1
1
1
1
Swimming pools
4
4
4
4
4
Baseball/softball diamonds
20
20
20
20
24
Tennis courts
11
11
11
11
11
Pickleball courts
-
-
-
-
-
Skateboard park
1
1
1
1
1
Playgrounds
20
20
20
20
22
Ballpark
24
24
24
24
24
Soccer Field
22
22
22
22
22
Football Field
1
1
1
1
1
Handball/Basketball/Volleyball Courts/
Bocce Courts
12
12
12
12
10
Horseshoe Pits
8
8
8
8
8
Library:
Central library
1
1
1
1
1
Total items in collection
130,657
119,554
148,287
149,243
135,113
Integrated library system
1
1
1
1
1
Microfilm readers
0
1
1
1
1
Microfilm readers/printers
1
1
1
1
1
Self check out machines
3
2
2
2
2
Electric utility:
Overhead lines 12kv (miles)
117
117
117
133
133
Overhead lines 60kv (miles)
14
14
14
14
14
Underground lines (miles)
121
118
115
159
159
Water utility:
Water main lines
240
236
236
236
236
Water storage capacity (gallons)
4,100,000
4,100,000
4,100,000
4,100,000
1,100,000
Waterwells
28
28
28
28
27
Water reservoirs
3
3
3
3
2
Water Treatment Plant
1
0
0
0
0
Wastewater utility:
Wastewater main lines (miles)
196
196
196
196
196
Treatment capacity
8.5 MG
8.5 MG
8.5 MG
8.5 MG
8.5 MG
Wastewater treatment plant
1
1
1
1
1
Wastewater Pump Stations
9
0
0
0
0
Stormwater utility:
Stormwater main drain lines (miles)
126
124
124
124
124
Stormwater pump stations
16
14
14
14
14
Central parking district:
Parking structure
1
1
1
1
1
Parking spaces
2,450
2,450
2,450
2,453
2,453
Parking lots
25
25
25
25
25
Source: City of Lodi Departments
166
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
CITY OF LODI
I IL
Presentation to City Council
Agenda Item: H-2
For the Fiscal Year Ended June 30, 2021
January 19, 2022 in
!7
CONTENTS
• Scope of Work
• Annual Required Communications (AU -C 260)
• Audit Approach
• Audit Results
• Overview of Financial Statements
• Key Pension and OPEB Information
Thank You!
PURI GROUP
AC COU NTA NTS & ADVISORS
2
SCOPE OF WORK
EffiNGROUV
ACCOUNTANTS & ADVISORS
SCOPE OF WORK
For the fiscal year ended June 30, 2021:
• Audit of Annual Comprehensive Financial Report (ACFR)
• Report on Internal Control over Financial Reporting and on Compliance and Other
Matters in accordance with Government Auditing Standards
• Required Communications Report to Board of Directors (AU -C 260)
• Single Audit — Federal Expenditures Audit (Finalizing)
• Appropriations Limit Agreed -Upon Procedures Report (GANN Limit) for the yea
ending June 30, 2022 (Finalizing)
ThN GR UP
ACCOUNTANTS & ADVISORS
ANNUAL REQUIRED COMMUNICATIONS (AUMC 260)
EffiNGROUV
ACCOUNTANTS & ADVISORS
Annual Required Communications
• Responsible for the Financial Statements
• Present the Financial Statements in accordance with Accounting Principles Generally
Accepted in the United States of America
• Adopt sound accounting policies
• Establish and maintain internal controls over financial reporting and compliance
• Provide evidence supporting the amounts and disclosures in the financial statements
• Fair presentation of financial statements that are free from material misstatements,
whether due to fraud or error
• Prevent and detect fraud
ThN GROUP
ACCOUNTANTS & ADVISORS
Annual Required Communications (continued)
• Perform the audit in conformity with Auditing Standards Generally Accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United
States
• Communicate with "Those Charged with Governance"
• Assess audit risk of internal control over financial reporting
• Determine fair presentation of the financial statements
• Render an opinion on the Basic Financial Statements
• Issue report on control weaknesses and recommendations to Management, if any
ThN GROUP
ACCOUNTANTS & ADVISORS
E
0
U
CL
7
O
0)
C:
7
CL
I
Annual Required Communications (continued)
Ethics and Independence
Complied with ALL relevant ethical
requirements regarding independence
ThN GROUP
ACCOUNTANTS & ADVISORS
Lu
Significant Accounting Policies
The City disclosed the summary of
significant accounting policies in Note 1 to
the ACFR
The City implemented GASB Statements No.
84, Fiduciary Activities and No. 90, Majority
Equity Interest
Significant Estimates
Fair Value of Investments
Depreciation of Capital
Net Pension Liability
Net OPEB Liability
Annual Required Communications (continued)
• Sensitive Disclosures
Note 1 — Summary of Significant Accounting Policies
Note 8 — Pension Plans
Note 9 — Post Employment Benefits Other Than Pensions (OPEB)
Note 12 — Other Postemployment Benefits — MCP Bonus Program
Note 13 — Deficit in Net Position
Note 15 — Commitments
Note 16 — Restatement
E
Q
Note 17 — Subsequent Events
0
0)
Q
I
ThN GROUP
ACCOUNTANTS & ADVISORS
Annual Required Communications (continued)
& Consultation with Other No outside consultations with other
Accountants accountants regarding auditing and
other matters.
Significant Difficulties No significant difficulties encountered
during the audit.
,,�� Disagreement with No disagreement over accounting
0 treatments or audit procedures
0)
Management performed.
Q
ThN GR4, UP
ACCOUNTANTS & ADVISORS
Annual Required Communications (continued)
Corrected /Uncorrected Audit
� Adjustments -Representation Letter
COther Audit Findings or Issues
Other Matters -Auditors'
0 Responsibility
ThN GR4, UP
ACCOUNTANTS & ADVISORS
All proposed audit entries were posted.
Immaterial unposted entries (1)
Reportable Conditions in Internal Controls are
Reported within Single Audit
Required Supplementary Information
Supplementary Information
AUDIT APPROACH
EffiNGROUV
ACCOUNTANTS & ADVISORS
Audit Approach
Planning (May/June) - Meet with City's Management to update City policies and procedures, establish any specific requirements
Management may have, identification of unique transactions, implementation of new GASB pronouncements, and develop the audit
work plan for the engagement.
Interim (June)
Assess accounting policies adopted by the City, obtain an understanding of the City and its operating
environment, review internal controls on all significant transaction classes, perform walkthroughs and/or tests
of internal control, perform preliminary analytical procedures, develop initial risk assessment, evaluate Single
Audit compliance (if needed), identify any audit issues, and prepare confirmation correspondence. Also
establish expectations including responsibilities and assignments for the year-end audit and hold a progress
status meeting at the end of the Interim phase.
Year -End (October/November)
Conduct audit procedures on account balances in the general ledger, finish confirmation procedures, search
for unrecorded liabilities, perform substantive analytical review procedures, complete work on compliance over
Federal awards, and conclude fieldwork. Exit conference held at the end of the Year -End phase and
communicate audit progress to management.
Reporting (December)
Review and prepare audit reports and perform quality control procedures over financial statements and audit
work in accordance with the Quality Control Standards issued by the AICPA and GALAS.
Audit
Closeout
Reporting
Audit Closeout (January/February)
Written reportable conditions (prior year and current year) are presented in draft to management for review, response, and
corrective action. At the City's request, the Engagement Partner and Manager will present the audit to the City's governing body.
THE
GROUP
ACCOUNTANTS & ADVISORS
Planning
Year End
Interin
AUDIT RESULTS
EffiNGROUV
ACCOUNTANTS & ADVISORS
Flo
14
Audit Results
• Financial Statements
• Unmodified opinion
• Financial Statements are fairly presented in all material respects
• Significant accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements
• The City complied, in all material respects, with the compliance requirements
that could have a direct and material effects on its major federal program
ThN GROUP
ACCOUNTANTS & ADVISORS
EffiNGROUV
ACCOUNTANTS & ADVISORS
OVERVIEW OF THE FINANCIAL
STATEMENTS
Annual Comprehensive Financial Report
• Letter of Transmittal
• Certificate of Achievement for Excellence in Financial Reporting
-Organization Chart
• Directory of Officials and Advisory Bodies
• Independent Auditors' Report
• Management's Discussion and Analysis — RSI (Unaudited)
• Basic Financial Statements
•Government -Wide Financial Statements
• Fund Financial Statements
• Notes to Basic Financial Statements
• GASB 68 Schedules on Pensions
• GASB 75 Schedules on OPEB
• Budgetary Comparison Schedules — General Fund and Streets Fund
-Combining and Individual Fund Statements and Schedules — Non -major Funds
• Financial Trends
• Revenues Capacity
• Debt Capacity
• Demographic Information
-Operating Information
THE CROUP
ACCOUNTANTS & ADVISORS
ANNUAL CITY OF
COMPREHENSIVE�'aCo
FINANCIAL REPORT s_ CALIFORNIA
FOR THE YEAR ENDED JUNE 30, 2021
City of Lodi
Government -Wide Financial Statements
Summary Statement of Net Position
June 30, 2021
ThN CR UP
ACCOUNTANTS & ADVISORS
Governmental
Business -Type
Activities
Activities
Total
Assets
$ 244,380,626
$ 374,430,281 $
618,810,907
Deferred Outflows of Resources
17,279,260
11,267,852
28,547,112
Liabilities
180,820,802
172,624,033
353,444,835
Deferred Inflows of Resources
6,786,958
1,461,011
8,247,969
Net Position:
Net investments in capital assets
122,205,737
151,811,971
274,017,708
Restricted
37,536,500
18,859,974
56,396,474
Unrestricted
(85,690,111)
40,941,144
(44,748,966)
Total Net Position
$ 74,052,126
$ 211,613,089 $
285,665,216
ThN CR UP
ACCOUNTANTS & ADVISORS
City of Lodi
Government -Wide Financial Statements
Summary Statement of Activities
For the Year Ended June 30, 2021
Expenses
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net Cost of Services
General Revenues
Transfers
Changes in Net Position
ThN CROUP
ACCOUNTANTS & ADVISORS
Governmental
Business -Type
Activities
Activities
Total
$ 77,239,280
$ 92,466,585 $
169,705,865
9,930,463
105,154,641
115,085,104
4,582,051
6,866,098
11,448,149
8,417,830
5,120,055
13,537,885
22,930,344
117,140,794
140,071,138
(54,308,936) 24,674,209
74,702,731 6,160,060
4,448,117 (4,448,117)
$ 24,841,912 $ 26,386,152 $
(29,634,727)
80,862,791
51,228,064
City of Lodi
General Fund
Summary Balance Sheet
June 30, 2021
Assets $
Liabilities $
Deferred Inflows of Resources
Fund Balance:
Nonspendable
Restricted
Com m ited
Unassigned
Total Fund Balance
Total Liabilities, Deferred Outflow
and Fund Balance $
ThN GROUP
ACCOUNTANTS & ADVISORS
48, 814, 009
7,409,887
714,024
537739
15, 641, 640
5577686
24,437,033
Cf:0:11[��I�I'7
City of Lodi
General Fund
Summary Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2021
Revenues:
Taxes
Sales use tax
Charges for services
Licenses, permits, fines, fees
Intergovernmental revenues
Other
Total revenues
Expenditures:
General governments
Public protection
Public Works
Library
Total expenditures
Proceeds from property sale
Net Transfers In (Out)
Changes in Fund Balance
ThN GROUP
ACCOUNTANTS & ADVISORS
$ 31,697,986
24,302,433
2,598,283
69,004
15,116,622
5,352,657
79,136,985
23,829,150
38,005,919
2,743,906
1.024.617
65,603,592
14,666
61,002
$ 12,787,057
KEY FINANCIAL INDICATORS AND
PENSION & OPEB
EffiNGROUV
ACCOUNTANTS & ADVISORS
$30,000
$25,000
$20,000
U)
0
z
can $15,000
Z)
O
2 •
H
$10,000
$5,000
ThN CROUP
ACCOUNTANTS & ADVISORS
City of Lodi
Sales Tax
For the Last Six Fiscal Years Ended June 30,
By Fiscal Year
❑ 2015 E:12016 ❑2017 ❑ 2018 ❑ 2019 ❑ 2020 ❑ 2021
City of Lodi
Governmental Activities
Net Cost of Services to Tax Revenues
For the Fiscal Year Ended June 30, 2020
Expenses $ 77,2391280
Less: Program Revenues (22,930,344)
Net Cost of Services 54,308,936
Tax Revenues 56,0005419
Ratio
ThN GROUP
ACCOUNTANTS & ADVISORS
City of Lodi
General Fund Reserves
Available Fund Balance to Annual Expenditures
As of and for the Fiscal Year Ended June 30,
Unassigned Fund Balance
Annual Expenditures
General Fund Reserves Ratio
ThN GROUP
ACCOUNTANTS & ADVISORS AA
2021
2020
$ 24,437,033 $ 14,519,980
65,603,592 50,969,997
37.25% 28.49%
Change
68.3%
28.7%
30.8%
City of Lodi
GASB 68 - The Pension Standard
Net Pension Liablity @ 7.15%
Discount Rate
Funded Ratio
June 30, 2021
Miscellaneous
Safety
$ 63,329,327 $ 83,825,883
69.81% 60.21%
Total
$ 147,155,210
Sensitivity Analysis:
Net Pension Liability @ 6.15% (-1 %) $ 89,685,828 $ 112,354,313 $ 202,040,141
Net Pension Liability @ 8.15% (+1%) $ 41,451,990 $ 60,406,238 $ 101,858,228
ThN GROUP
ACCOUNTANTS & ADVISORS
City of Lodi
GASB 75 - The OPEB Standard
June 30, 2021
Net OPEB Liablity @ 3.56%
Discount Rate
Funded Ratio
Sensitivity Analysis:
Net OPEB Liability @ 2.56% (-1 %)
Net OPEB Liability @ 3.56% (+1 %)
ThN CROUP
ACCOUNTANTS & ADVISORS
Total
$ 24,358,432
7.60%
$ 27,181,396
$ 21,984,101
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
Thank You !
447
HQ - ORANGE COUNTY
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