HomeMy WebLinkAboutAgenda Report - December 7, 2022 H-01CITY OF
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AGENDA ITEM H
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COUNCIL COMMUNICATION
AGENDA TITLE: RECEIVE AND FILE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT
(FISCAL YEAR 2021/22) BY THE PUN GROUP
MEETING DATE: December 7, 2022
PREPARED BY: Accounting Manager
RECOMMENDED ACTION: Receive and file City's Annual Comprehensive Financial Report submitted
by The Pun Group, LLP and the Internal Services Department for Fiscal
Year 2021/22.
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.qov 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 29th year. A copy of the GFOA certificate is
included in the 2021/22 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.
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Andrew Keys
Deputy City Manager/Internal Services Director
APPROVED: •. 9 ZW2P!35711STs
Stephen Schwabauer, City Manager
Melissa Munoz, Accounting Manager
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CITY OF
CALIFORNIA
MARK CHANDLER, MAYOR, DISTRICT 2
MIKEY HOTHI, MAYOR PRO TEMPORE, DISTRICTS
SHAK KHAN, COUNCIL MEMBER, DISTRICT 4
DOUG KUEHNE, COUNCIL MEMBER, DISTRICT 3
ALAN NAKANISHI, MAYOR, DISTRICT 1
STEVE SCHWABAUER, CITY MANAGER
Prepared by the Financial Services Division
Melissa Munoz, Accounting Manager
Robin Xiang, Supervising Accountant
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TABLE OF CONTENTS
Page
INTRODUCTORY SECTION (UNAUDITED)
Tableof Contents......................................................................................................................................................i
Government -Wide Financial Statements............................................................................................................17
Letterof Transmittal.................................................................................................................................................iii
Statementof Net Position..............................................................................................................................19
Certificate of Achievement for Excellence in Financial Reporting.........................................................................xiv
Statementof Activities..................................................................................................................................20
Cityof Lodi Organization Chart ...............................................................................................................................xv
FundFinancial Statements.................................................................................................................................23
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).......................................................95
Schedule of Changes in Net Pension Liability and Related Ratios — Miscellaneous Plan........................................97
Schedule of Changes in Net Pension Liability and Related Ratios — Safety Plan.........................................99
Schedule of Pension Contributions................................................................................................................101
Schedule of Changes in Net OPEB Liability and Related Ratios..................................................................103
Schedule of Employer OPEB Contributions..................................................................................................104
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual —
GeneralFund.................................................................................................................................................106
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual —
StreetsFund...................................................................................................................................................107
Note to the Required Supplementary Information.........................................................................................108
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES .....................................109
NonmajorGovernmental Funds.....................................................................................................................111
Combining Balance Sheet — Nonmajor Governmental Funds.......................................................................113
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
GovernmentalFunds......................................................................................................................................114
Nonmajor Governmental Funds — Special Revenue Funds...........................................................................115
Combining Balance Sheet — Nonmajor Governmental Funds — Special Revenue Funds..............................116
TABLE OF CONTENTS
Page
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor
GovernmentalFunds......................................................................................................................................118
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Nonmajor
Governmental Funds — Special Revenue Funds:
Parks, Recreation, and Community Services Fund..................................................................................120
PublicSafety Fund...................................................................................................................................121
Community Development Fund...............................................................................................................122
TransportationFund.................................................................................................................................123
SpecialAssignments...............................................................................................................................124
HOME Program and Community Development Block Grants Fund ......................................................125
Nonmajor Governmental Funds — Capital Project Fund..........................................................................127
Combining Balance Sheet — Nonmajor Governmental Funds — Capital Projects ....................................129
Combining Satement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
Governmental Funds — Capital Projects..................................................................................................131
InternalService Funds.............................................................................................................................133
Combining Statement of Net Position — Internal Service Funds.............................................................135
Combining Statement of Revenues, Expenditures, and Changes in Net Position — Internal Service
Funds.......................................................................................................................................................136
Combining Statement of Cash Flows — Internal Service Funds...............................................................137
FiduciaryFunds.......................................................................................................................................139
Combining Statement of Fiduciary Net Position — Private — Purpose Trust Funds .................................141
Combining Statement of Changes in Fiduciary Net Position — Private — Purpose Trust Funds ..............142
STATISTICAL SECTION (UNAUDITED)
Government -Wide Information:
Net Position by Component — Last Ten Fiscal Years..........................................................................146
Changes in Net Position — Last Ten Fiscal Years................................................................................147
Fund Information:
Fund Balances, Governmental Funds — Last Ten Fiscal Years ...........................................................149
Changes in Fund Balances of Governmental Funds — Last Ten Fiscal Years .....................................150
Tax Revenues by Source, Governmental Funds — Last Ten Fiscal Years ..............................................151
Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years..................152
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ....................................................153
Principal property Taxpayers — Current Year and Nine Years AGo ......................................................154
Property Tax Levies and Collections — Last Ten Fiscal Years...............................................................155
Electricity Sold by Type of Customer — Last Ten Fiscal Years..............................................................156
Ratios of Outstanding Debt by Type......................................................................................................157
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years...................................................158
Legal Debt Margin Information — Last Ten Fiscal Years.......................................................................159
Direct and Overlapping Governmental Activities Debt..........................................................................160
Pledged -Revenue Coverage — Last Ten Fiscal Years.............................................................................161
Demographic and Economic Statistics — Last Ten Fiscal Years.............................................................162
Principal Employers — Current Year and Nine Years Ago.....................................................................163
Full -Time Equivalent City Government Employees by Department — Last Ten Fiscal Years ...............164
Operating Indicators by Function/Program/Department — Last Ten Fiscal Years ..................................165
Capital Asset Statistics by Function/Program/Department — Last Ten Fiscal Years ..............................167
CITY COUNCIL
Mark Chandler, Mayor
Mikey Hothi, Mayor Pro Tempore
Shak Khan
Doug Kuehne
Alan Nakanishi
December 7, 2022
CITY OF
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Honorable Mayor, Members of the City Council:
Stephen Schwabauer
City Manager
Olivia Nashed
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, 2022.
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, 2022.
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, 2022 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 2021-22, the City Council and City Manager made several supplemental appropriations for
operating budgets and capital projects.
The City, with 421 full time equivalent employees, provide a wide rant of services to a residential population 66,750. 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 66,750 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 230 new single family homes constructed and sold. The
City has entitled and granted growth allocations for more than 1,000 residential lots, providing for consistent residential
growth over the next four to five years. The City's first 100 percent affordable housing complex has been approved and will
add 12 units of much needed housing. The State of California passed several laws that encourage infill growth which has
prompted several new Accessary Dwelling Units as well as a couple of parcel splits that would not have been allowed under
our existing codes at the time and should prompt additional affordable living options for our most vulnerable citizens. Two
separate apartment projects are under way and will add 432 market rate units to the south west area of Lodi. The City
continues to see significant investment in expanding existing commercial developments with over 300,000 square feet of high
tech manufacturing having been added to the City. All this activity is a positive indicator for the City moving forward. The
update of the Municipal Service Review (MSR) document and the Sphere of Influence (SOI) will continue to allow the City to
grow in a reasonable manner. 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.
The most pressing budget and financial challenge facing the City is the California Public Employees' Retirement System
(CaIPERS) funding crisis. Since 2017, the City has taken on this problem aggressively through a Pension Stabilization Funding
Policy 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), mandatory Additional
iv
Discretionary Payments to CAPERS and the City has negotiated significant employee cost sharing of current pension
obligations. The City has amassed approximately $21 million in the stabilization fund to offset future pension costs. Non
General Funds must contribute their proportional share to the trust as well. Lodi's General Fund revenues performed
exceptionally well during fiscal year 2021-22, resulting in significantly better than expected results. Substantial additional
contributions to the PRSP will be 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.
Measure L was consistently presented as a means to "Maintain and Enhance" City services. The Council honored the
enhanced portion of that promise, by adding six new police officers and three new firefighters to fully fund Engine One, and
constructing a significant share of Candy Cane Park. 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
To ensure the City of Lodi is prepared to participate in the rapidly changing economic trends, and remain a destination of
choice for residents, visitors, talent and investment for years to come, the City of Lodi is exploring residential, commercial and
public investment opportunities. Located just under an hour's drive from Sacramento, and less than a two-hour drive from
the San Francisco Bay Area, Lodi is a small city alternative for talent looking for a more relaxed California lifestyle.
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 best known for its full-bodied Old Vine Zinfandel wines. The area has 100,000 acres of wine grapes farmed by over
750 growers. Major wineries that call Lodi home are 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.
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 are
estimated to be 11.1 percent, 11.2 percent, 9.5 percent and 15.26 percent, respectively. 1
Key Demographic, Industry and Economic Data
Lodi's population is expected to grow 5.7 percent between 2021 and 2026. In the same time period, its labor force is
expected to grow by 7.3 percent. Out of 2,510 total business establishments in Lodi, the top industries by number of
establishments in 2021 are health care and social services (329), retail (324), education (67), and manufacturing (324).
In terms of 2021 annual revenue generation, the top five industries in Lodi include wholesalers ($2.7 billion), retail ($1.3
billion), manufacturing ($1.02 billion), healthcare and social services ($653.6 million), and banking, finance and insurance
($389.6 million). Construction is a close sixth top industry in terms of sales revenue generation ($336.6 million).
In 2021, the highest paid employment sectors in terms of mean annual wages include management ($116,050), legal
occupations ($109,060), healthcare practitioners ($103,280) and architecture and engineering occupations ($92,300).
Construction occupations earned a mean annual wage of $42,250 while production occupations earned $42,250.
Industry clusters are groups of inter -related industries that drive wealth creation in a geographic region. These are
companies, suppliers, and service providers that support one another. Lodi's target industry clusters are identified as
1 www.stern.nvu.edu retrieved August 11, 2022
v
agriculture/agriculture technology, food processing, healthcare, biotech/biosciences, high-tech manufacturing and logistics.
In 2021, the total number of establishments in these clusters are 83, 7, 47, 39, 4 and 55 respectively.
In 2021, households in Lodi earned a median yearly income of $64,283. This median household income is expected to
increase by 15.3 percent by 2026 to $74,093. However, the 2021 median income is 10 percent less than the median county
income, 22 percent less than the state income, and 5 percent less than the nation. Household expenditures average $63,537
per year, and the majority of earnings get spent on shelter, transportation, food and beverages, health care and utilities.
In June 2022, Lodi home prices were up 24.5 percent compared to last year. According to Coldwell Banker, the median price
of a home in Lodi in June, 2022 is $599,000.
Lodi is a large submarket relative to the national average and contains about 12.6 million square feet of industrial space.
Logistics facilities account for the largest proportion of the local supply, or 7.4 million square feet. Industrial rents are
slightly above the metro average, and the 12 -month rent growth is 8.4 percent which is above the 7.4 percent average
growth over the last ten years. The vacancy rate has declined over the past year from 2.4 percent to 1.4 percent. 2
Multi -family investors have been active in the Lodi submarket over the past three years. While new supply will remain
under demand in the near-term, the asking rent has increased an average of 5.2 percent over the last 12 months. 3
Lodi Entrepreneur and Business Indicators
Economic and business indicators which provide data at the city level are not abundant. Most data from traditional sources
like the U.S. Census Bureau and U.S. Department of Labor assemble and publish data at the MSA and county level. However,
entrepreneurial activity in Lodi as measured by the US Patent Office reveals that from January 2017 to August 2020, 151
patent applications were received from inventors in Lodi. Out of the number of applications received, 27 patents were
granted consisting of both design and plant production patents. The patents range from universal vineyard tillage and spray
carrier to installation guard for overhead utility lines, and from cherry trees with specific names to an endothermic syringe
sleeve. The range of patents issued align with Lodi's targeted industry clusters.
From 2018 to 2020, Pitchbook reported that $10.87 million in venture capital had been deployed in Lodi. At the time of this
writing, data for 2021 is not available.
SBA lending activity in Lodi has increased. In the period, 2017-2019, small business lending was $34.7 million. In the period,
2020-2022 to date, SBA lending activity was $48.1 million which represents an increase of 38.6 percent. This lending
provided 44 loans, preserved 414 jobs and created 93 jobs. a
"Cities, states and metropolitan areas face an unprecedented economic, demographic, fiscal and environmental challenges
that make it imperative to ensure modern, efficient and reliable infrastructure. Concrete, steel and fiber-optic cable are the
essential building blocks of the economy. 5
The City of Lodi's fiscal year 2021-2025 Capital Improvement Budget is $108.8 million. This represents an expenditure of
$1,578 per capita in public infrastructure spending keeping pace with capital improvement spending in Modesto, Manteca,
Lathrop, and Roseville. Stockton's capital improvement budget includes the Port of Stockton and airport spending, and is
not included.
In 2021, the City of Lodi launched Phase I of its fiber optic upgrade and expansion project. Phase I will rebuild the existing
backbone of the City's obsolete fiber optic network. This investment will cost approximately $1 million. Future phases will
expand the fiber network to the industrial and residential customer.
2 www.costar.com Industrial Outlook Lodi Submarket Report, August 2022
3 www.costar.com Multi -family Outlook Lodi Submarket Report, August 2022
4 Small Business Administration Lending Report, Lodi, CA August 2022
S Robert Puentes "Why Infrastructure Matters: Rotten Roads, Bum Economy" Brookings Institute, Tuesday, January 20, 2015
Vi
Lodi's Market Strengths and Economic Assets
In addition, to increasing population, projected growth in Lodi's labor force, projected growth in target industries, other
market strengths serving to attract investment to Lodi includes direct transportation access to major state and interstate
corridors, rail access, and adjacency to cargo -centric Stockton Regional Airport and Sacramento International Airport and Port
of Stockton. These strengths provide for proximity to markets and proximity to a highly functioning supply chain.
Lodi owns its own electric utility (LEU) providing highly reliable power, affordable rates, economic development incentives,
personal customer service, and a highly responsive city government. In fiscal year 2021-22, the governing body, the Lodi City
Council, authorized $3 million in reserves to be used to provide residential and commercial electric customers with financial
relief during the pandemic. In addition, the City Council recently authorized the use of financial reserves to offset the high
cost of power attributable to inflation, fuel shortages and supply chain complexities. While electric rates stayed the same, the
financial reserves were applied to "buy -down" the Energy Cost Adjustment (ECA) factor which reflects fluctuations in a
customer's bill due to monthly variations in the cost of power and transmission.
The City Council recently authorized the formation of a Hometown Microloan program by allocating $470,000 to provide
entrepreneurs and micro businesses with 10 or fewer employees with loan products ranging from equipment loans to
working capital, and from life and safety improvements to inventory. The Economic Development Division staff is currently in
the planning stages of this program to include local lenders, and the region's new Small Business Development Center. The
anticipated launch of the new program is January 2023. Of particular emphasis will be downtown reinvestment.
Lodi's Challenges
A primary business location factor today is workforce. While Lodi's market strengths support the commercial and industrial
sector, the supply of a skilled talent pipeline is a major concern. However, the education attainment is projected to increase
among Lodi residents. By 2026, the number of residents with some college is expected to increase 6.8 percent, the number of
residents with an Associate's degrees is expected to increase by 6.8 percent, the number of residents with a Bachelor's
degree is expected to increase by 6.75 percent and the number of residents with a graduate degree is expected to increase by
7.1 percent. 6
Within a 50 -mile radius, there are three major universities, and one two-year college. In 2021, the University of California -
Davis produced 11,708 graduates; California State University -Sacramento produced 8,250 graduates, University of the Pacific
conferred 2,070 degrees, and San Joaquin Delta College conferred 4,905 degrees.'
The IHUB San Joaquin is a consortium of business, government, education and non -profits dedicated to the stimulation of
economic growth, creation of new jobs, nurturing entrepreneurship and emerging technologies and increasing the region's
preparedness among youth in three areas: health care, agri-business and sustainable construction technology. It hosts events
and programs to connect youth to business, youth to technology, business to local technology, and business to local talented
youth. Members and advisory committee of the IHUB San Joaquin include but are not limited to Lodi Unified School District,
San Joaquin County WorkNet, San Joaquin Health Department, municipalities in San Joaquin County, including the City of
Lodi, San Joaquin Delta Community College, San Joaquin Building Trade Council, and private sector stakeholders.
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 $87.5 million in 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, has completed
the addition of 175,000 of new production space and plans to add over 2,500 new jobs in Lodi by 2024. The investment
capital added is $250 million.
Not far from the Cepheid location in the industrial park, EI Gallo, a 20,683 square foot modern food truck commissary and
shopping experience, is currently under construction. With an estimated completion in 2023, the project will add $8.0
million in new capital to Lodi.
6 GIS Planning Economic Development Database retrieved August 13, 2022
' GIS Planning Economic Development Database retrieved August 13, 2022
vii
In the Northeast, the City has been anticipating the start of The Lakehouse, a high value mixed-use of hospitality, retail and
residential valued at $65 million. The environmental review stage is nearing completion. The projected completion date is
2024.
On the City's south side, a new Residence Inn at Reynolds Ranch has broken ground and construction is underway. When
completed, the new hotel will add $13.4 million in new capital.
To the west, a new 108 -unit market -rate apartment complex has broken ground in 2022. The Benjamin, when completed,
will add over $30 million in investment capital. The anticipated completion date is late 2023.
A second market -rate apartment complex, 12 West Apartments has just completed plan review. Located at the intersection
of Kettleman Lane and Westgate Avenue, the plan features a six (6) multi- storied apartment building, clubhouse and all
related site work.
Small Business
In 2021, the City Council approved a number of recommendations of the City's first Development Prospectus to sustain
business and stimulate greater stability and growth for Lodi small business. These recommendations included the
development of small business incentives, development of a partnership with the Small Business Development Committee
(SBDC) to prepare entrepreneurs and small business for servicing investment capital (debt), and to expand on the current
Brownfield Program to include market studies and to investment in the provision of economic, labor, demographic and
industry data sources to provide interested investors and site selectors in Lodi as a location to deploy investment capital.
These recommendations became goals of the Economic Development Division. To date, significant progress has been made.
Plans are underway to create a Hometown Microloan Program to entrepreneurs and small business with ten or fewer
employees. To this end, the City Council allocated $470,000 as seed funds. Staff is currently developing the program and is in
the process of forming partnerships with local lenders to increase this loan fund thereby providing greater capacity for
lending. The SBDC will provide pre-screening of applicants, aid in forming business plans and proformas, and prepare
applicants to become credit -worthy. Other local partnerships will be developed for loan origination and servicing.
In order to assure hometown business loans are met, Economic Development staff will survey small business in 2022 to
determine demand.
The current Brownfields program funded a preliminary highest and best use study of a group of city -owned properties in the
Heritage District near downtown for reuse beginning in 2021 and completed in early 2022. The study evaluated the
conversion of the City's recreation and parks maintenance facility and related offices, and vacant property into a mixed-use
development anchored by an indoor aquatics' facility. Staff is currently reviewing future steps.
A comprehensive GIS -based economic development search and analysis tool has been placed on the City's website, and is
accessible to internal and external stakeholders for research purposes
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 2021-22. The
following projects were recently completed, are underway and will see significant progress, or be completed in 2022.
Residential Development
In fiscal year 2021-22, the City has accepted the following residential developments: Gateway North Unit 1 and Unit 2: and
the Talavera subdivisions. Staff also amended the Southwest Trunk Line Master Plan. In fiscal year 2021-22 the City
continued to see a robust housing market. 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. Both the downtown outdoor dining expansion and Great Plates Delivered programs ended
during this fiscal year.
The City has seen an uptick in the activity of our downtown establishments as COVID-19 impacts seem to be waning. There
ix
are new downtown restaurants that have completed construction/expansion in downtown, including The Oxrford and the
Lodi Beer Company.
Still under construction, 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. The City rehabilitated the electrical system at Well No. 7, installed granular
activated carbon vessels at Well 28, and replaced existing carbon at Well 6 as part of the Dibromo-chloropropane (DBCP), 123
Trichlorophenylmethyliodosalicyl (TCP) treatment process.
Wastewater Projects
The 9" phase of the Wastewater Rehabilitation program will be completed by the end of fiscal year 2022-23. The original
project bid is $1,656,535 and includes the rehabilitation of over 3,000 LF of 24 -inch and 30 -inch pipelines. Additional projects
planned for fiscal year 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 fall of 2022.
Power Plant
During the 2022 Summer Heat Storm, Lodi staff learned of a significant power import constraint that caused rotating electric
outages over a 6.5 hour period. While Lodi generates or purchases all of its own electricity, Lodi is dependent on three PG&E
60kV lines to transmit the power Lodi generates into the city. The State of California has recognized its own generation
constraints on high power demand days and is looking to locate generation resources throughout the State of California at
the State's expenses through the State's contractor, Enchanted Rock Electric LLC. Under special legislation approved by the
Governor, the California Department of Water Resources proposes to construct a natural gas peaker plant within the City of
Lodi to be run during emergency situations to protect the integrity of the statewide power grid. This plant will be owned and
operated by the State of California for 5 years with an option for the City to purchase after 5 years. This plant will also benefit
the City of Lodi in the event of a transmission capacity shortage until such time as the 230 kV Project is constructed and
operational.
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
x
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
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 2021-22. 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 $23,388,654 or 39.70% of revenues at the end of fiscal year 2021-22.
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 2021-22, the City's appropriations subject to limit were $54,049,367 and the appropriation limit
was $124,907,868, leaving appropriations at $70,858,501 below the limit.
Debt Administration
At June 30, 2022, the City had outstanding Certificates of Participation, Revenue Bonds and Installment Purchase Agreement
of $131,410,589. These liabilities are discussed in Note 7 of the Basic Financial Statements and summarized below.
xi
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. These bonds were refunded with the 2022 Lease Revenue Bonds.
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).
On April 13, 2022 the City issued $28,250,000 Lease Revenue Bonds (2022 Bonds) to all the City to prepay and cause the
immediate defeasance of the outstanding $14,335,000 of the 2012 Lease Revenue 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 Bidding Policy
All required purchases for materials, equipment and services during fiscal year 2021-22 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. In May, units
were changed and construction projects were awarded pursuant to competitive bidding procedures established for projects
in excess of $10,000.
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.
xii
At June 30, 2022, the Insurance Fund had a net position of $7,140,137.
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, 2021. 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-nine 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 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, 2021
Executive Director/CEO
IVX
Community
Development Budget/Treasury
Electric Utility Services
Human
Public Works Resources
4IMMENO
Information
Fire Systems
Police
FY 2021-2022
Xv
MAYOR AND COUNCIL
F.
W a
Mark Chandler
Mayor
District 2
I
Mikey Hothi
Mayor Pro Tempore
District 5
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.
Xv
1
Alan Nakanishi
Council Member
District 1
Shak Khan
Council Member
District 4
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
Olivia Nashed
Akiliah Manuel Mills
Ken Johnson
Christina Jaromay
Charles Swimley
Jeff Berkheimer
John Della Monica
Sierra Brucia
xii
Lodi Improvement Committee
Lodi Arts Commission
Youth Commission
Lodi Senior Citizens' Commission
City Manager
Deputy City Manager
City Attorney
City Clerk
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.)
xviii
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.
(This page intentionally left blank.)
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
2121 North California, Suite 29
Walnut Creek, California 945966
www.pungroup.cpa (M
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City COUncil
of the City of Lodi
Lodi, California
Opinions
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, 2022, and the related notes to the basic financial statements, which collectively comprise
the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the 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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of
the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to
our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1 and Note 10 to the basic financial statements, the City implemented Governmental Accounting
Standards Board ("GASB") Statement No. 87, Leases during the year. As a result of the implementation, the City
reported the leases and related assets, liabilities, and deferred inflows of resources, and reported a restatement of its
net position. Our opinion is not modified with respect to this matter.
ORANGE COUNTY - SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California
Page 2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with auditing standards generally accepted in the United Stales of America and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with auditing standards generally accepted in the United States of America and
Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California
Page 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis, 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), ass listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and
Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the
basic financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, based on our audit, 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that
an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
To the Honorable Mayor and Members of the City Council
of the City of Lodi
Vodi, California
Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2022, on our
consideration of 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 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 City's internal control over financial reporting and compliance.
,,, �Zj�7, /-�
Walnut Creek, California
November 29, 2022
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2022
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, 2022.
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 $328,332,626 (net position). Of this amount, $8,228,733 is
unrestricted deficit.
• The City's total net position increased by $42,667,411 in fiscal year 2022.
• As of June 30, 2022, the City's governmental funds reported combined ending fund balances of $103,861,266,
an increase of $31,180,246 in comparison with the prior year. Of this amount, $23,388,654 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 $38,964,050, of which $23,388,654 is
unassigned or 39.70% of total general fund expenditures of $58,904,422. Of the $38,964,050 fund balance,
$24,321 is non -spendable for pre -paid expenses, $15,198,535 is restricted for Pensions and $352,540 is
committed for video related capital projects.
• The City's total long-term liabilities decreased by $38,611,753 or 10.92% during the current fiscal year. Other
liabilities decreased by $1,621,461 or 7.91%.
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
or a significant portion of their costs through user fees and charges (business -type activities). The governmental
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
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, 2022
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.
Assets:
Current and other assets
Capital assets
Total assets
Deferred outflows of
resources
Liabilities:
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, 2022 and 2021
Governmental Business -type
Activities Activities Total
2022 2021 2022 2021 2022 2021
$ 202,740,515 $ 107,397,365 $ 124,917,832 $ 121,120,296 $ 327,658,347 $ 228,517,661
140,904,371 136,983,261 255,374,437 253,309,985 396,278,808 390,293,246
343,644,886 244,380,626 380,292,269 374,430,281 723,937,155 618,810,907
16,960,996 17,279,260 7,314,051 11,267,852 24,275,047 28,547,112
156,475,569
169,375,236
139,486,779
163,577,404
295,962,348
332,952,640
9,677,369
11,445,566
9,193,365
9,046,629
18,870,734
20,492,195
166,152,938
180,820,802
148,680,144
172,624,033
314,833,082
353,444,835
96,922,967
6,786,958
8,123,527
1,461,011
105,046,494
8,247,969
111, 961, 3 02
122,205,737
159, 768, 2 29
151, 811, 9 71
271,729,531
274, 017, 708
42,296,979
37,536,500
6,077,383
18,859,974
48,374,362
56,396,474
(56,728,304)
(85,690,111)
64,957,037
40,941,144
8,228,733
(44,748,967)
$ 97,529,977
$ 74,052,126
$ 230,802,649
$ 211,613,089
$ 328,332,626
$ 285,665,215
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
1401TIO :1► I ► d 4 0 d►l►I 112 a 10 L1 P [411_11 <_1 P /_111'i-91,'.'
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 $328,332,626 at the
close of the current fiscal year.
Assets. The City's total assets increased by $105,126,248. The increase is primarily due to the following:
Governmental Activities. Total assets for governmental activities had an increase of $99,264,260 or 40.62%. Current
and other assets increased by $95,343,150 primarily resulting from the increase in lease receivables of $65,659,264,
$37,007,202 increase cash and investments. Capital assets increased by $3,921,110. Other insignificant activities make
up the difference.
Business -type Activities. Total assets for the business -type activities had an increase of $5,861,988 or 1.57%. Current
and other assets increased by $3,797,536 primarily due to increases in cash and investments of $4,083,162, increase in
accounts receivable of $2,134,713. Capital assets increased by $2,064,452. Other insignificant activities contributed to
the difference.
Deferred outflows of resources. The increase in total deferred outflows of resources of $96,798,525 is primarily from
the implementation of GASB 87 relating to leases.
Liabilities. The City's total liabilities decreased by $38,611,753 or 10.92%. The decrease is primarily due to the
following:
Governmental Activities. Total liabilities for the governmental activities had a decrease of $14,667,864 or 8.11%,
primarily from a decrease in long-term liabilities. Decreases in liabilities included a reduction in the pension liability in
the long-term liabilities.
Business -type Activities. Total liabilities for the business -type activities decreased by $23,943,889 or 13.87%. The
decrease is primarily attributable to a decrease in long-term liabilities. Decreases in other liabilities include accrued
salaries and wages, accounts payable and a decrease in unearned revenue. Other insignificant activities offset the
difference.
Deferred outflows of resources. The decrease in total deferred outflows of resources of $4,272,065 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, 2021.
Net position. The City's overall financial position increased during the fiscal year. The net position has increased by
$42,667,411, or 14.94%.
The largest portion ($271,729,531) 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, $48,374,362 (14.73%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position amounts to $8,228,733. At
the end of the current fiscal year, the City is able to report positive balances in the General Fund and all Enterprise
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
activities. Unrestricted net position is negative for the governmental -type activities primarily as a result of the City's
outstanding pension and OPEB obligations.
Analysis of Changes in Net Position
Governmental Activities
Net position for the governmental activities increased by $23,477,851 in the current fiscal year. The change in net
position is a decrease over last year's increase of $24,841,912 by $1,364,061. 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 $2,154,664 or 11.55% 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 $1,945,339 or 8% from prior year. For General Fund, sales tax increased by
$1,132,034. For Measure L, sales tax increased by $813,305. Bradley Burns' general sales tax revenues
decreased by $277,011 from prior year.
• Property taxes increased by $630,375 from prior year.
• Capital grants and contributions increased by $7,416,456 from the prior fiscal year. The difference is due to
departments projects being placed on hold during the COVID-19 pandemic. Public Works used grants to
complete various projects in the current fiscal year.
Expenses for governmental functions totaled $92,136,106, an increase of $14,896,826 or 19.29% relative to the prior
fiscal year. Increase in expenditures resulted from the capital projects and service costs.
City of Lodi's Changes in Net Position
June 30, 2022 and 2021
Governmental
Business -type
Activities
Activities
Total
2022
2021
2022
2021
2022
2021
Revenues
Program revenues:
Charges for services
$ 10,407,348 $
9,930,463
$ 111,939,682
$ 105,154,641
$ 122,347,030
$ 115,085,104
Operating grants and contributions
4,871,549
4,582,051
8,442,821
6,866,098
13,314,370
11,448,149
Capital grants and contributions
15,834,286
8,417,830
8,682,577
5,120,055
24,516,863
13,537,885
General revenues:
Property taxes
13,680,792
13,050,417
-
-
13,680,792
13,050,417
Sales taxes
26,247,772
24,302,433
26,247,772
24,302,433
Other taxes
20,802,233
18,647,569
20,802,233
18,647,569
Grants and contributions not restricted to
-
-
specific programs
7,884,584
14,166,158
7,884,584
14,166,158
Other
12,431,553
4,536,154
(31246,895)
6,160,060
9,184,658
10,696,214
Total revenues
112,160,117
97,633,075
125,818,185
123,300,854
237,978,302
220,933,929
Expenses
General government
14,493,009
24,867,053
-
-
14,493,009
24,867,053
Public protection
41,534,207
34,636,966
41,534,207
34,636,966
Public works
11, 799, 877
10, 354, 010
11, 799, 877
10, 354, 010
Community development
2,654,080
1,903,002
2,654,080
1,903,002
Library
1,448, 243
1,152, 899
1,448, 243
1,152, 899
Parks and recreation
4,317,544
3,670,846
4,317,544
3,670,846
Interest on long-term debt
15,889,146
654,504
15,889,146
654,504
Electric
-
-
74,001,860
68,306,979
74,001,860
68,306,979
Wastewater
11, 623, 599
11,683, 283
11, 623, 599
11, 683,283
Water
12,645,752
8,141,513
12,645,752
8,141,513
Transit
4,903,574
4,334,810
4,903,574
4,334,810
Total expenses
92,136,106
77,239,280
103,174,785
92,466,585
195,310,891
169,705,865
Changes in net position before transfers
20,024,011
20,393,795
22,643,400
30,834,269
42,667,411
51,228,064
Transfers
3,453,840
4,448,117
(3,453,840)
(4,448,117)
-
-
Changes in net position
23,477,851
24,841,912
19,189,560
26,386,152
42,667,411
51,228,064
Net position at beginning of year
74,052,126
42,983,825
211,613,089
185,226,937
285,665,215
228,210,762
Prior period adjustments
-
6,226,389
-
-
-
6,226,389
Net position at beginning of year, as restated
74,052,126
49,210,214
211,613,089
185,226,937
285,665,215
234,437,151
Net position at end of year
$ 97,529,977 $
74,052,126
$ 230,802,649
$ 211,613,089
$ 328,332,626
$ 285,665,215
Analysis of Changes in Net Position
Governmental Activities
Net position for the governmental activities increased by $23,477,851 in the current fiscal year. The change in net
position is a decrease over last year's increase of $24,841,912 by $1,364,061. 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 $2,154,664 or 11.55% 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 $1,945,339 or 8% from prior year. For General Fund, sales tax increased by
$1,132,034. For Measure L, sales tax increased by $813,305. Bradley Burns' general sales tax revenues
decreased by $277,011 from prior year.
• Property taxes increased by $630,375 from prior year.
• Capital grants and contributions increased by $7,416,456 from the prior fiscal year. The difference is due to
departments projects being placed on hold during the COVID-19 pandemic. Public Works used grants to
complete various projects in the current fiscal year.
Expenses for governmental functions totaled $92,136,106, an increase of $14,896,826 or 19.29% relative to the prior
fiscal year. Increase in expenditures resulted from the capital projects and service costs.
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
Business -type Activities
Business -type activities increased the City's net position by $19,189,560 in the current year, which is a decrease of
$7,196,592 from last year's increase of $26,386,152. The key elements of this change are:
Charges for services in the Electric Fund increased by $4,232,205, Wastewater Fund increased by $225,293,
the Water Fund decreased by $308,860 and Non -major Transit increased by $20,663.
Increase in the greenhouse gas allowance (GHG) of $2,086,893 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 $1,288,249 primarily due to a decrease in reimbursable charges.
Bulk power cost increased by $6,879,786 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
$103,861,266, for a net change in fund balances of $31,180,246. 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 $23,388,654 while total fund balance was $38,964,050. 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 66.14% and 39.70% of total General Fund expenditures,
respectively.
The fund balance of the General Fund decreased by $1,726,048 during the current fiscal year, a decrease of
$14,513,105 from last year's net change in fund balance of $12,787,057.
Key factors in this decrease are:
Total revenues decreased by $6,482,247, primarily from the net increase of other taxes of $4,730,378, which
includes the additional revenue from Measure L sales tax, and a decrease intergovernmental revenue of
$5,944,536 primarily the Great Plates program ending. Other insignificant increases and decreases offset the
difference.
10
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
• Total expenditures increased by $6,699,170 primarily from an increase in services relating to public protection.
Other insignificant increase and decreases offset the difference.
Total fund balance of the Streets Funds was $17,349,665. Intergovernmental revenues of $7,568,694 offset by capital
expenditures of $4,895,673 were the largest components that resulted in the increase of $3,215,812 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 $34,722,852, Wastewater Fund was
$19,006,912, Water Fund was $8,191,180, Transit Fund was $3,036,093 and the Internal Services Funds unrestricted
net position was $11,756,778.
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 $6,911,441. The increase in appropriations can be briefly summarized as follows:
• $19,498,833 increase in general revenues
• $12,587,392 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 $1,830,175,
which resulted from an increase in property tax, special assessment taxes and transient occupancy tax.
Investment and rental income had a variance between the budget and actual of ($2,060,895). Sales and use
tax had a favorable variance between the final budget and actual revenue of $1,942,052. Intergovernmental
had an unfavorable variance between the final budget and actual revenue of ($9,118,037). 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 $14,813,121 was
due to savings from vacancies and the continued overall effort to reduce spending and costs.
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, 2022, amounts to
$396,278,808 (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
total increase in the City's capital assets for the current fiscal year was $110,613,593, a 38.72% increase (a 90.28%
increase in governmental activities and 20.68% increase in business -type activities).
is
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
Work of Art 304,907 - 304,907
Construction in Progress 4,868,004 7,295,342 12,163,346
End of Year $ 140,904,369 $ 255,374,439 $ 396,278,808
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 65-66 of this report.
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $131,410,589. Of this amount,
$28,880,080 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 $102,530,509 from the
business -type activities consists of $27,517,401 for the Water Fund, $35,035,280 for the Wastewater Fund; and
$39,997,828 for the Electric Fund.
The City's total bonded debt increased by $7,782,688 during the current fiscal year.
Additional information on the City's long-term debt can be found in Note 7 pages 66-68 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Despite these challenges, Lodi's revenues performed greatly during fiscal year 2021-22 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 2022-23, it is estimated that sales tax and Measure L revenue will increase by $1.5 million, motor vehicle will
increase by $445,000. Transient occupancy tax, the only major revenue source to see a significant pandemic influenced
decline, is anticipated to increase by $775,000 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 revenues
are estimated at $3.4 million more than the current fiscal year 2021-22 estimates when adjusted for one time ARPA
revenues and the remaining FEMA reimbursements. As the recovery continues, the City is projecting a balanced
budget in the General Fund in fiscal year 2021-23, 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 $11.6 million in fiscal year
2022-23 are anticipated to continue to grow to approximately $15.8 million by 2027-28, for a 30% increase over the
forecast term included in the most recent actuarial reports provided by CalPERS 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, 2022 to further
buy down the discount rate used to calculate UAL. CalPERS is also in the process of its Asset Liability Management
`v:
CITY OF LODI'S CAPITAL ASSETS
(net
of depreciation)
Governmental
Business -type
Activities
Activities
Total
Beginning of Year
$ 74,052,126
$ 211,613,089
$ 285,665,215
Land
26,316,763
5,535,718
31,852,481
Buildings and Improvements
33,715,376
35,442,101
69,157,477
Machinery and equipment
2,093,770
204,260,545
206,354,315
Vehicles
5,633,954
2,840,733
8,474,687
Infrastructure
67,971,595
-
67,971,595
Work of Art 304,907 - 304,907
Construction in Progress 4,868,004 7,295,342 12,163,346
End of Year $ 140,904,369 $ 255,374,439 $ 396,278,808
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 65-66 of this report.
Long-term debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $131,410,589. Of this amount,
$28,880,080 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 $102,530,509 from the
business -type activities consists of $27,517,401 for the Water Fund, $35,035,280 for the Wastewater Fund; and
$39,997,828 for the Electric Fund.
The City's total bonded debt increased by $7,782,688 during the current fiscal year.
Additional information on the City's long-term debt can be found in Note 7 pages 66-68 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Despite these challenges, Lodi's revenues performed greatly during fiscal year 2021-22 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 2022-23, it is estimated that sales tax and Measure L revenue will increase by $1.5 million, motor vehicle will
increase by $445,000. Transient occupancy tax, the only major revenue source to see a significant pandemic influenced
decline, is anticipated to increase by $775,000 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 revenues
are estimated at $3.4 million more than the current fiscal year 2021-22 estimates when adjusted for one time ARPA
revenues and the remaining FEMA reimbursements. As the recovery continues, the City is projecting a balanced
budget in the General Fund in fiscal year 2021-23, 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 $11.6 million in fiscal year
2022-23 are anticipated to continue to grow to approximately $15.8 million by 2027-28, for a 30% increase over the
forecast term included in the most recent actuarial reports provided by CalPERS 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, 2022 to further
buy down the discount rate used to calculate UAL. CalPERS is also in the process of its Asset Liability Management
`v:
CITY OF LODI
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022
review which may result in further changes to actuarial assumptions including the discount rate. Clearly caution and
fiscal prudence towards CaIPERS will be required in the coming years. The City is 68.4% funded when combining
CalPERS and Pension Stabilization Fund assets.
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.
The City has expanded capital project efforts in fiscal year 2021-22. Conservative council fiscal management through
the pandemic combined with aggressive actions to infuse cash into the local economy through the American Rescue
Plan Act of 2021 (ARPA) and the grant allocations to businesses and strong local sales left the city with nearly $13
million dollars to address its capital needs and other unfunded needs. Over $7 million was dedicated to park
improvements and $1 million dedicated to economic development focused art projects. Significant projects are
expected to be undertaken during the next fiscal year. Including an estimated $13 million replacement of the animal
shelter, $2.4 million Lodi Lake renovation and $1.6 million in park play structure replacements throughout the City.
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.
Bargaining is underway for the Lodi City Mid -Management, AFSCME, Lodi Professional Firefighters that all expire
December 31, 2022. Lodi Police Dispatch Association current contract has expired. The City is in negotiations with Lodi
Police Dispatch Association and have reached a successor MOU.
Based on the City's aggressive funding actions over the past four years, by the end of fiscal year 2022-23, total funding
in the Pension Stabilization Fund (PSF) is estimated as follows: General Fund: $15.0 million; Other Funds $5.0 million.
Because results for fiscal year 2021-22 significantly exceeded expectations, it is anticipated that the City will make
additional contributions to the PSF in fiscal year 2022-23.
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.
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.
13
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14
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.
15
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ID
OF
I
%•
lis
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18
CITY OF LODI
Statement of Net Position
June 30, 2022
Bonds, notes, leases, claims, compensated absences
Primary Government
Due in more than one year
Governmental
Business -type
155,027,704
Other long-term obligations:
Activities
Activities
Total
ASSETS
87,919,010
14,811,526
102,730,536
Current Assets:
17,368,762
4,392,508
21,761,270
Cash and investments
$ 92,117,542
$ 75,269,752 $
167,387,294
Restricted cash and investments
31,545,711
17,822,565
49,368,276
Accounts receivables (net)
9,133,448
12,385,205
21,518,653
Property tax receivable
121,392
-
121,392
Interest receivable
148,357
53,202
201,559
Lease receivable
545,200
41,840
587,040
Due from other governmental agencies
3,602,492
1,473,884
5,076,376
Advance receivable - NCPA
-
10,922,475
10,922,475
Inventory
256,012
6,649,648
6,905,660
Other assets
133,864
23,992
157,856
Noncurrent Assets:
8,092,813
-
8,092,813
Lease receivable
65,114,064
163,092
65,277,156
Right to use leased assets, net of amortization
22,433
112,177
134,610
Capital assets, net: Nondepreciable
31,489,674
12,831,060
44,320,734
Capital assets, net: Depreciable, net
109,414,697
242,543,377
351,958,074
Total assets
343,644,886
380,292,269
723,937,155
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
14,016,662
2,232,559
16,249,221
Related to OPEB
1,323,256
334,647
1,657,903
Unamortized losses on defeasance of debt
1,621,078
4,746,845
6,367,923
Total deferred outflows of resources
16,960,996
7,314,051
24,275,047
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
8,397,038
6,934,051
15,331,089
Accrued salaries and wages
601,325
178,525
779,850
Accrued interest
239,284
1,420,686
1,659,970
Unearned revenue
439,722
660,104
1,099,826
Bonds, notes, leases, claims, compensated absences
Due within one year
7,848,708
8,594,129
16,442,837
Noncurrent liabilities:
Bonds, notes, leases, claims, compensated absences
Due in more than one year
43,339,089
111,688,615
155,027,704
Other long-term obligations:
Net pension liability
87,919,010
14,811,526
102,730,536
Net OPEB liability
17,368,762
4,392,508
21,761,270
Total liabilities
166,152,938
148,680,144
314,833,082
DEFERRED INFLOWS OF RESOURCES
Related to pensions
25,105,088
6,282,803
31,387,891
Related to OPEB
6,469,200
1,636,042
8,105,242
Leases
65,348,679
204,682
65,553,361
Total deferred inflows of resources
96,922,967
8,123,527
105,046,494
NET POSITION
Net investment in capital assets
111,961,302
159,768,229
271,729,531
Restricted
Capital projects
17,166,662
-
17,166,662
Community Development
8,092,813
-
8,092,813
Debt service
-
2,530,895
2,530,895
Pensions
16,347,990
3,546,488
19,894,478
Other purposes
689,514
-
689,514
Unrestricted (deficit)
(56,728,304)
64,957,037
8,228,733
Total net position $
97,529,977 $
230,802,649 $
328,332,626
The notes to financial statements are an integral part of this statement.
19
CITY OF LODI
Statement of Activities
For the Year Ended June 30, 2022
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 (loss)
Other
Transfers
Total general revenues, and transfers
Change in net position
Net position - beginning
Net position - ending
The notes to financial statements are an integral part of this statement.
20
Program Revenues
Operating Grants and
Capital Grants and
Functions/Programs
Expenses
Charges for Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
14,493,009
$ 2,056,080
$ -
$
Public protection
41,534,207
1,244,728
1,984,256
4,678,125
Public works
11,799,877
1,050,770
2,702,280
9,190,832
Community development
2,654,080
4,175,050
83,102
-
Library
1,448,243
12,494
87,127
-
Parks and recreation
4,317,544
1,868,226
14,784
1,965,329
Debt Service
15,889,146
-
-
-
Total governmental activities
92,136,106
10,407,348
4,871,549
15,834,286
Business -type activities:
Electric
74,001,860
80,342,751
5,035,197
1,185,639
Wastewater
11,623,599
17,145,038
354,134
4,356,958
Water
12,645,752
14,187,925
368,483
2,990,276
Transit Funds
4,903,574
263,968
2,685,007
149,704
Total business -type activities
103,174,785
111,939,682
8,442,821
8,682,577
Total primary government
$ 195,310,891
$ 122,347,030
$ 13,314,370
$ 24,516,863
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 (loss)
Other
Transfers
Total general revenues, and transfers
Change in net position
Net position - beginning
Net position - ending
The notes to financial statements are an integral part of this statement.
20
CITY OF LODI
Statement of Activities (Continued)
For the Year Ended June 30, 2022
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Business -type
13,680,792
Activities
Activities
Total
$ (12,436,929)
$ $
(12,436,929)
(33,627,098)
(33,627,098)
1,144,005
1,144,005
1,604,072
1,604,072
(1,348,622)
(1,348,622)
(469,205)
(469,205)
(15,889,146)
(1,498,177)
(15,889,146)
(61,022,923)
(1,748,718)
(61,022,923)
3,453,840
12,561,727
12,561,727
84,500,774
10,232,531
10,232,531
4,900,932
4,900,932
19,189,560
(1,804,895)
(1,804,895)
211,613,089
25,890,295
25,890,295
(61,022,923)
25,890,295
(35,132,628)
13,680,792
13,680,792
512,262
512,262
26,247,772
26,247,772
6,497,826
6,497,826
9,933,619
9,933,619
2,373,206
2,373,206
1,485,320
1,485,320
7,884,584
7,884,584
(3,474,490)
(1,498,177)
(4,972,667)
15,906,043
(1,748,718)
14,157,325
3,453,840
(3,453,840)
-
84,500,774
(6,700,735)
77,800,039
23,477,851
19,189,560
42,667,411
74,052,126
211,613,089
285,665,215
$ 97,529,977 $
230,802,649 $
328,332,626
The notes to financial statements are an integral part of this statement.
21
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22
Fund
Financial
Statements
15
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24
FUND 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, 2022
FUND BALANCES
Nonspendable
Inventory
Prepaid
Restricted
Road -related projects
Home and CDBG program
Public safety
Community development
Capital Projects
Pension
Special assessments
Committed
Video - related capital projects
Parks, recreation and community services
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
- - 4,500
4,500
24,321 200 2,015
26,536
- 17,055,042 111,620
Other Governmental
Total Governmental
ASSETS
336,052
General Fund
8,092,813
Streets
Funds
27,139,208
Funds
Cash and investments
$
20,814,748
$
17,197,958
$ 30,489,691
$
68,502,397
Accounts receivables, net
7,545,799
1,104,734
123,766
8,774,299
Property taxes receivables
121,392
-
-
121,392
Interest receivable
103,793
9,384
21,180
134,357
Lease receivable
65,611,920
-
47,344
65,659,264
Due from other funds
-
1,978,118
1,978,118
Home loan receivable
-
35,572
35,572
Due from other governmental agencies
1,403,511
2,198,981
3,602,492
Inventory
-
-
4,500
4,500
Prepaid
24,321
200
2,015
26,536
Restricted cash and investments
15,198,535
294,423
15,868,383
31,361,341
Total assets
$
110,824,019
$
18,606,699
$ 50,769,550
$
180,200,268
LIABILITIES
Accounts payable and other liabilities
$
5,778,918
$
1,239,110
$ 1,056,455
$
8,074,483
Accrued salaries and wages
514,615
14,315
63,639
592,569
Due to other funds
-
-
1,978,118
1,978,118
Unearned revenue
-
-
43,520
43,520
Total liabilities
6,293,533
1,253,425
3,141,732
10,688,690
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
261,282
3,609
36,742
301,633
Leases
65,305,154
-
43,525
65,348,679
Total deferred inflows of resources
65,566,436
3,609
80,267
65,650,312
FUND BALANCES
Nonspendable
Inventory
Prepaid
Restricted
Road -related projects
Home and CDBG program
Public safety
Community development
Capital Projects
Pension
Special assessments
Committed
Video - related capital projects
Parks, recreation and community services
Assigned
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
- - 4,500
4,500
24,321 200 2,015
26,536
- 17,055,042 111,620
17,166,662
- 10,338
10,338
336,052
336,052
8,092,813
8,092,813
- - 27,139,208
27,139,208
15,198,535 294,423 855,032
16,347,990
- - 343,124
343,124
352,540 - 352,540
- 409,176 409,176
- 10,243,673 10,243,673
23,388,654 - - 23,388,654
38,964,050 17,349,665 47,547,551 103,861,266
$ 110,824,019 $ 18,606,699 $ 50,769,550 $ 180,200,268
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, 2022
Fund balances - total governmental funds $ 103,861,266
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 31,489,674
Depreciable capital assets, net 109,414,697
Internal Service Fund capital asset (17,367)
Rigt to use assets at historical cost 22,433
Deferred outflows of resources related to pensions & OPEB reported in government -wide statement of net position
15,339,918
Deferred inflows of resources related to pensions & OPEB are reported in government -wide statement of net position
(31,574,288)
Deferred outflows of resources related to unamortized losses on defeasance are not reported in governmental funds.
1,621,078
Amounts reported in Internal Service Funds
Deferred outflows of resources related to pensions & OPEB
(128,336)
Deferred inflows of resources related to pensions & OPEB
389,155
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
(239,283)
Long-term liabilities - Due within one year
(7,848,708)
Long-term Liabilities - Due in more than one year
(43,339,090)
Net pension liability
(87,919,010)
Net OPEB liability
(17,368,762)
Long-term liabilities reported in the Internal Service Funds
Net pension liability
761,904
Net OPEB liability
177,111
Accrued compensated absences
284,795
Self-insurance liability
10,870,196
Unavailable revenue reported in governmental funds was
recorded as revenue in the statement of activities.
(41,551)
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.
11,774,145
Net position of governmental activities
$ 97,529,977
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, 2022
REVENUES
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Developer impact fees
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)
Transfers in
Transfers out
Proceeds from sale of property
Lease liabiities issued
Bond proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Other Governmental Total Governmental
General Fund Streets Funds Funds
$ 34,483,025 $
$
$
34,483,025
26,247,772
26,247,772
62,077
2,487,420
2,549,497
9,172,086
6,417,449
4,850,500
20,440,035
-
-
2,592,177
2,592,177
2,369,097
1,463,094
3,379,467
7,211,658
303,921
-
-
303,921
(303,334)
(450,865)
(369,815)
(1,124,014)
320,093
139,016
114,206
573,315
72,654,737
7,568,694
13,053,955
93,277,386
13,197,297
-
3,292,916
16,490,213
41,054,131
-
110,540
41,164,671
3,034,047
2,901,344
896,301
6,831,692
393,290
-
2,306,181
2,699,471
1,214,407
-
1,214,407
-
-
3,144,921
3,144,921
-
1,994,329
5,848,912
7,843,241
76
-
665,103
665,179
11,174
-
14,405,423
14,416,597
58,904,422
4,895,673
30,670,297
94,470,392
13,750,315
2,673,021
(17,616,342)
(1,193,006)
3,494,790
541,330
21,172,380
25,208,500
(19,004,760)
-
(2,749,900)
(21,754,660)
-
1,461
1,461
33,607
-
-
33,607
-
-
28,884,344
28,884,344
(15,476,363)
542,791
47,306,824
32,373,252
(1,726,048)
3,215,812
29,690,482
31,180,246
40,690,098
14,133,853
17,857,069
72,681,020
$ 38,964,050 $
17,349,665 $
47,547,551 $
103,861,266
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, 2022
Changes in fund balances - total governmental funds
$ 31,180,246
Amounts reported for governmental activities are different because:
11,174
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. In addition, contributed capital
assets do not impact the governmental funds however they are reported in the
statement of activities.
2,336,735
Capital outlays, capital asset contributions, and depreciation expense are as follows:
Capital outlays
7,843,241
Capital asset contributions
4,567,912
Depreciation expense
(8,490,043)
Less: Internal service fund depreciation
1,447
Amortization
(11,174)
Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt
proceeds increases long-term liabilites in the satement of net position.
Proceeds from long-term debt:
Refunding bond issued (28,250,000)
Bond premium, less amortization (634,343)
Cost of issuance 547,270
Payment to escrow agent for debt refunding - principal retirement 13,231,327
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
1,103,673
Lease payable
11,174
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.
2,336,735
Revenues reported in the funds since they provide current financial resources are not reported
as revenues in the statement of activities this year since they were reported in the previous year.
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
(121,240)
Amortization of loss on defeasance
(20,463)
Amortization of bond premium
58,090
Change in unavailable revenue
1,272,691
Change in accrued interest
73,981
Change in pension liability and related amounts
(137,372)
Change in OPEB obligation and related amounts
(1,085,301)
Change in net position of governmental activities
$ 23,477,851
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
Lease 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
Lease receivable
Right to use leased assets, net of amortization
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
Lease liability
Accrued compensated absences
Self insurance liability
Pollution remediation obligation
Certificates of participation and revenue
bonds payable
Total current liabilities
Noncurrent liabilities:
Self insurance liability
Lease 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
Leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Pensions
Unrestricted (deficit)
Total net position
CITY OF LODI
Statement of Net Position
Proprietary Funds
June 30, 2022
Business -type Activities
$ 26,819,525 $
30,394,163 $
16,696,736
-
-
11,745,182
7,912,688
1,883,965
1,099,227
16,801
18,289
17,192
10,922,475
-
-
6,075,609
52,000
522,039
8,378
833
13,226
51,755,476
32,349,250
30,093,602
4
2,530,823
68
1,998,398
725,219
725,219
22,446
22,446
67,285
5,549,947
6,476,980
404,133
42,025,419
84,006,469
101,364,359
49,596,214
93,761,937
102,561,064
101,351,690
126,111,187
132,654,666
3,699,058
1,404,668
(356,881)
79,230
163,118
92,299
1,324,652
693,033
160,542
5,102,940
2,260,819
(104,040)
2,443,070
665,072
3,267,055
106,840
57,693
10,973
591,204
746,378
83,104
-
-
660,104
229,405
-
-
11,217
11,217
32,250
810,245
463,708
60,773
400,000
2,962,247
2,443,708
1,140,646
7,154,228
4,387,776
5,654,905
11,217
11,217
34,986
413,551
310,219
44,604
37,015,580
32,591,572
26,376,755
8,788,172
4,597,808
1,065,088
1,039,957
2,141,049
1,211,502
-
-
14,639,357
47,268,477
39,651,865
43,372,292
54,422,705
44,039,641
49,027,197
3,727,796
1,950,314
451,793
387,345
797,459
451,238
4,115,141
2,747,773
903,031
11,195,530
59,321,638
73,703,931
4
2,530,823
68
1,998,398
725,219
725,219
34,722,852
19,006,912
8,191,180
$ 47,916,784 $
81,584,592 $
82,620,398
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, 2022
ASSETS
Current assets:
Cash and investments
Restricted cash and investments
Account receivables, net
Interest receivable
Lease 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
Lease receivable
Right to use leased assets, net of amortization
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
Lease liability
Accrued compensated absences
Self insurance liability
Pollution remediation obligation
Certificates of participation and revenue
bonds payable
Total current liabilities
Noncurrent liabilities:
Self insurance liability
Lease 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
Leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Pensions
Unrestricted (deficit)
Total net position
Governmental
Business -type Activities Activities
Non -Major
Transit Funds Total Enterprise Funds Internal Service Funds
$ 1,359,328 $
75,269,752 $
23,615,145
-
11,745,182
184,370
1,489,325
12,385,205
314,443
920
53,202
14,000
41,840
41,840
-
1,473,884
1,473,884
-
-
10,922,475
-
-
6,649,648
251,512
1,555
23,992
107,327
4,366,852
118,565,180
24,486,797
- 2,530,895
97,652 3,546,488
163,092 163,092
- 112,177
400,000
12,831,060
-
15,147,130
242,543,377
17,367
15,807,874
261,727,089
17,367
20,174,726
380,292,269
24,504,164
600,015
130,892,649
8,756,T46-
,756,3461,190,601
-
4,746,845
-
-
334,647
13,493
54,332
2,232,559
114,843
54,332
7,314,051
128,336
204,682
-
558,854
6,934,051
322,554
3,019
178,525
8,756
-
1,420,686
-
2,530,895
660,104
97,652
3,546,488
229,405
3,036,093
-
54,684
-
28,713
1,363,439
43,884
-
-
3,337,660
400,000
-
-
6,546,601
-
590,586
17,787,495
3,712,854
- 7,532,536
- 57,420 -
2 39, 55 7 1,007,931 284,795
-
95,983,907
-
360,458
14,811,526
761,904
-
4,392,508
177,111
-
14,639,357
-
600,015
130,892,649
8,756,T46-
,756,3461,190,601
1,190,601
148, 680,144
12,469, 200
152,900
6,282,803
323,187
-
1,636,042
65,968
204,682
204,682
-
357,582
8,123,527
389,155
15,547,130
159,768,229
17,367
-
2,530,895
-
97,652
3,546,488
-
3,036,093
64,957,037
11,756,778
$ 18,680,875 $
230,802,649 $
11,774,145
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, 2022
The notes to financial statements are an integral part of this statement.
33
Business -type Activities
Electric
Wastewater
Water
OPERATING REVENUES
Charges for services
$ 78,437,312
$ 17,005,967 $
13,797,949
Other operating revenue
1,905,439
139,071
389,976
Total operating revenue
80,342,751
17,145,038
14,187,925
OPERATING EXPENSES
Personnel services
6,419,399
621,779
3,389,438
Supplies, materials and services
14,887,163
3,410,361
3,884,298
Utilities
48,441,477
931,022
1,251,226
Depreciation
2,086,084
4,671,326
3,313,534
Claims
-
-
-
Total operating expenses
71,834,123
9,634,488
11,838,496
Operating income (loss)
8,508,628
7,510,550
2,349,429
NONOPERATING REVENUES (EXPENSES)
Investment income
(360,995)
(370,463)
(783,325)
Interest expense
(2,167,737)
(1,989,111)
(807,256)
Intergovernmental revenues
1,039,755
354,134
368,483
Greenhouse gas allowance
3,995,442
-
-
Other non-operating expenses
(1,039,755)
(354,134)
(368,483)
Gain on sale of city property
2,997
71
Total nonoperating revenues (expenses)
1,469,707
(2,359,503)
(1,590,581)
Income (loss) before contributions and
transfers
9,978,335
5,151,047
758,848
Capital contributions
1,185,639
4,356,958
2,990,276
Transfers out
(1,243,790)
(1,084,700)
(914,920)
Change in net position
9,920,184
8,423,305
2,834,204
Total net position (deficit) - beginning
37,996,600
73,161,287
79,786,194
Total net position (deficit) - ending
$ 47,916,784
$ 81,584,592 $
82,620,398
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, 2022
OPERATING REVENUES
Charges for services
Other operating revenue
Total operating revenue
OPERATING EXPENSES
Personnel services
Supplies, materials and services
Utilities
Depreciation
Claims
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Intergovernmental revenues
Greenhouse gas allowance
Other non-operating expenses
Gain on sale of city property
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Capital contributions
Transfers out
Change in net position
Total net position (deficit) - beginning
Total net position (deficit) - ending
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
$ 90,587
$ 109,331,815
$ 21,470,587
173,381
2,607,867
-
263,968
111,939,682
21,470,587
231,507
10,662,123
2,142,932
3,570,267
25,752,089
11,861,659
47,813
50,671,538
13,012
1,053,987
11,124,931
1,447
-
-
4,557,312
4,903,574
98,210,681
18,576,362
(4,639,606)
13,729,001
2,894,225
16,606
(1,498,177)
(571,594)
-
(4,964,104)
2,685,007
4,447,379
-
3,995,442
-
(1,762,372)
-
10,586
13,654
14,104
2,712,199
231,822
(557,490)
(1,927,407)
13,960,823
2,336,735
149,704
8,682,577
-
(210,430)
(3,453,840)
-
(1,988,133)
19,189,560
2,336,735
20,669,008
211,613,089
9,437,410
$ 18,680,875
$ 230,802,649
$ 11,774,145
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, 2022
The notes to financial statements are an integral part of this statement.
35
Business -type Activities - Enterprise Funds
Electric
Wastewater
Water
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
$
79,711,297
$
16,899,669
$
14,173,985
Cash from interfund customers
-
-
-
Payments to suppliers
(65,859,804)
(2,726,805)
(4,581,676)
Payments to employees
(9,075,411)
(5,148,837)
(3,284,593)
Due from other funds charges for services
(909,477)
(1,232,037)
Leases
-
-
-
Net cash provided (used) by operating activities
4,776,082
8,114,550
5,075,679
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grants
1,039,755
354,134
368,483
Grants expenses
(1,039,755)
(354,134)
(368,483)
Repaid from other funds
-
148,875
Received - greenhouse gas allowance
3,995,442
-
Transfers out
(1,243,789)
(1,084,700)
(914,920)
Net cash provided (used) by noncapital financing
activities
2,751,653
(1,084,700)
(766,045)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Fees received for water meter installations
-
10,269
Acquisition and construction of capital assets
(5,837,505)
(1,209,896)
(1,103,209)
Fees received from developers
426,581
1,998,643
1,198,960
Capital grants received
-
-
-
Sale of property
2,997
71
Principal payments on debt
(2,589,178)
(1,970,675)
(930,000)
Interest payments on debt
(1,833,952)
(1,356,072)
(977,550)
Net cash provided (used) by capital and related
financing activities
(9,831,057)
(2,537,929)
(1,801,530)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
(845,600)
(677,629)
(812,145)
Net cash provided by investing activities
(845,600)
(677,629)
(812,145)
Net increase (decrease) in cash and cash equivalents
(3,148,922)
3,814,292
1,695,959
Balances - beginning of year
31,966,849
27,666,063
27,471,246
Balances - end of the year
$
28,817,927
$
31,480,355
$
29,167,205
Reconciliation to the statement of net position:
Cash and investments
$
26,819,525
$
30,394,163
$
16,696,736
Restricted cash and investments
-
-
11,745,182
Restricted assets with fiscal agents
4
2,530,823
68
Restricted cash and investments
1,998,398
725,219
725,219
Less: Guaranteed Investment Contract
-
(2,169,850)
-
Total cash and cash equivalents
$
28,817,927
$
31,480,355
$
29,167,205
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, 2022
Business -type Activities - Enterprise Funds
Electric Wastewater Water
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:
Loans receivable
Accounts Receivables
Advance receivable - NCPA
Inventory
Other assets
Deferred inflows of resources - Lease related
Compensated absences
Accounts Payable and other liabilites
Accrued salaries and wages
Lease receivable, net
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
$ 8,508,628 $
7,510,550 $
2,349,429
2,074,923
4,671,326
3,301,686
35,344
-
-
(1,933,739)
(245,363)
(3,671)
1,267,041
-
(1,592,222)
(5,100)
6,200
5,112
(833)
(6,933)
641,566
16,283
4,526
(153,467)
386,728
(503,574)
36,709
14,795
3,855
(89)
(11,250)
(402)
(4,113,724)
(4,222,586)
268,030
-
-
(343,467)
$ 4,776,082 $
8,114,550 $
5,075,679
$ 1,185,639
4,356,958 $
2,990,276
(376,175)
297,292
190,346
477,246
-
-
Total noncash investing, capital and financing activities $ 1,286,710 $ 4,654,250 $ 3,180,622
The notes to financial statements are an integral part of this statement.
36
CITY OF LODI
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash from interfund customers
Payments to suppliers
Payments to employees
Due from other funds
Leases
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grants
Grants expenses
Repaid from other funds
Received - greenhouse gas allowance
Transfers out
Net cash provided (used) by noncapital financing
activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Fees received for water meter installations
Acquisition and construction of capital assets
Fees received from developers
Capital grants received
Sale of property
Principal payments on debt
Interest payments on debt
Net cash provided (used) by capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation to the statement of net position:
Cash and investments
Restricted cash and investments
Restricted assets with fiscal agents
Restricted cash and investments
Less: Guaranteed Investment Contract
Total cash and cash equivalents
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
$
263,967
$ 111,048,918
$ 498,058
-
-
20,884,586
(3,375,017)
(76,543,302)
(17,244,355)
(426,432)
(17,935,273)
(2,023,400)
(47,249)
(2,188,763)
(204,355)
(204,355)
-
(3,789,086)
14,177,225
2,114,889
4,604,229
6,366,601
-
-
(1,762,372)
148,875
3,995,442
(210,430)
(3,453,839)
4,393,799
5,294,707
-
10,269
(95,912)
(8,246,522)
-
3,624,184
149,704
149,704
-
10,586
13,654
14,104
-
(5,489,853)
-
-
(4,167,574)
-
64,378
(14,106,138)
14,104
15,333
(2,320,041)
(578,903)
15,333
(2,320,041)
(578,903)
684,424
3,045,753
1,550,090
772,556
87,876,714
22,249,425
$
1,456,980
$ 90,922,467
$ 23,799,515
$
1,359,328
$ 75,269,752
$ 23,615,145
-
11,745,182
184,370
-
2,530,895
-
97,652
3,546,488
-
(2,169,850)
-
$
1,456,980
$ 90,922,467
$ 23,799,515
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, 2022
Business -type Activities - Enterprise Funds
Non -Major
Transit Fund Total 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
Changes in assets, liabilities and deferred outflow/inflows
of resources:
Loans receivable
Accounts Receivables
Advance receivable - NCPA
Inventory
Other assets
Deferred inflows of resources - Lease related
Compensated absences
Accounts Payable and other liabilites
Accrued salaries and wages
Lease receivable
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
Governmental Activities
Internal Service Funds
$ (4,639,606) $
13,729,001 $
2,894,225
1,053,987
11,101,922
1,447
-
35,344
-
(2,182,773)
(87,943)
1,267,041
(1,591,122)
(48,169)
(1,555)
(4,209)
10,271
204,682
204,682
-
2,825
665,200
(3,459)
(7,313)
(277,626)
(15,506)
(124)
55,235
2,584
(204,355)
(216,096)
-
(197,627)
(8,265,907)
(2,026,221)
1,387,660
(343,467)
-
$ (3,789,086) $
14,177,225 $
2,114,889
$ 149,704 $
8,682,577 $
-
-
111,463
477,246
Total noncash investing, capital and financing activities $ 149,704 $ 9,271,286 $
The notes to financial statements are an integral part of this statement.
38
CITY OF LODI
Statement of Fiduciary Net Position
June 30, 2022
ASSETS
Cash and investments
Interest receivable
Total assets
Private -Purpose Trust
Funds
150,556
150,557
Restricted: for organizations $ 150,557
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, 2022
ADDITIONS
Investment income
DEDUCTIONS
Current:
Library
Change in Fiduciary Net Position
Net Position - beginning of the year
Net Position - end of the year
The notes to financial statements are an integral part of this statement.
40
Private -Purpose Trust
Funds
(20,727)
(22,239)
172,796
$ 150,557
CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies....................................................................................... 45
A. The Financial Reporting Entity..............................................................................................................45
B. Investments Authorized by Debt Agreements......................................................................................58
B. Government -Wide and Fund Financial Statements..............................................................................45
C. Restricted Cash......................................................................................................................................58
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation..............................46
D. Disclosure Relating to Interest Rate Risk and Credit Risk
D. Cash and Investments...........................................................................................................................47
E. Concentration of Credit Risk..................................................................................................................60
E. Restricted Cash and Investments..........................................................................................................47
F. Custodial Credit Risk..............................................................................................................................60
F. Restricted Cash and Investments with Fiscal Agents.............................................................................48
G. Investments in Investment Pools..........................................................................................................61
G. Receivables...........................................................................................................................................48
H. Investments in Guaranteed Investment Contracts...............................................................................61
H. Loan Receivables...................................................................................................................................48
I. Fair Value Measurements......................................................................................................................61
I. Property Taxes.......................................................................................................................................49
J. Due From/Due To Other Funds, Advances To/Advances From Other Funds, and Internal Balances
...49
K. Transfers................................................................................................................................................49
L. Long-term Obligations...........................................................................................................................50
M. Advance Receivable.............................................................................................................................50
N. Inventory...............................................................................................................................................50
0. Deferred Outflows and Inflows of Resources........................................................................................50
P. Capital Assets.........................................................................................................................................51
Q. Compensated Absences/Vacation and Sick Leave................................................................................51
R. Pensions................................................................................................................................................52
S. Other Post -Employment Benefits (OPEB).............................................................................................52
T. Self-Insurance........................................................................................................................................52
U. Net Position...........................................................................................................................................52
V. Statement of Cash Flows.......................................................................................................................54
W. Use of Estimates...................................................................................................................................54
X. Leases...................................................................................................................................................54
Y. New Governmental Pronouncements Adopted....................................................................................55
Z. Reclassification and Presentation..........................................................................................................57
Note 2 — Cash and Investments....................................................................................................................... 57
A. Authorized Investments........................................................................................................................58
B. Investments Authorized by Debt Agreements......................................................................................58
C. Restricted Cash......................................................................................................................................58
D. Disclosure Relating to Interest Rate Risk and Credit Risk
.....................................................................59
E. Concentration of Credit Risk..................................................................................................................60
F. Custodial Credit Risk..............................................................................................................................60
G. Investments in Investment Pools..........................................................................................................61
H. Investments in Guaranteed Investment Contracts...............................................................................61
I. Fair Value Measurements......................................................................................................................61
Note 3 — Allowance for Uncollectible Accounts............................................................................................... 62
Note 4 — Interfund Receivables/Payables........................................................................................................ 62
Note5 — Transfers........................................................................................................................................... 63
42
CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022
Note6 — Capital Assets.................................................................................................................................... 64
A. Capital Assets Activity...........................................................................................................................64
B. Depreciation Expense............................................................................................................................65
C. Amortization..........................................................................................................................................65
Note7 — Long-term Liabilities.......................................................................................................................... 65
A. Long-term Liability Transactions Summary...........................................................................................65
B. Long Term Liabilities..............................................................................................................................66
C. Loans Payables......................................................................................................................................67
D. Capital Lease.........................................................................................................................................67
E. Certificates of Participation and Revenue Bonds.................................................................................67
Note8 — Pension Plans.................................................................................................................................... 69
A. Plan Descriptions....................................................................................................................................69
B. Benefits Provided..................................................................................................................................70
C. Employees Covered...............................................................................................................................70
D. Contributions........................................................................................................................................71
E. Net Pension Liability..............................................................................................................................71
F. Actuarial Assumptions...........................................................................................................................71
G. Discount Rate........................................................................................................................................71
H. Changes in the Net Pension Liability......................................................................................................72
I. Sensitivity of the Net Pension Liability to Changes in the Discount Rate...............................................73
J. Pension Plan Fiduciary Net Position.......................................................................................................73
K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions ..........................73
Note 9 — Post Employment Benefits Other Than Pensions............................................................................... 74
A. Plan Description....................................................................................................................................74
B. Eligibility................................................................................................................................................75
C. Funding Policy.......................................................................................................................................75
D. Net OPEB Liability..................................................................................................................................75
E. Actuarial Methods and Assumptions.....................................................................................................76
F. Actuarial Valuations...............................................................................................................................76
G. Discount Rate........................................................................................................................................76
H. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate ............................77
I. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB........................77
Note 10 — Implementation of New GASB Pronouncements.............................................................................. 78
A. Lessee....................................................................................................................................................79
B. Lessor....................................................................................................................................................80
C. Activity................................................................................................................................................................83
Note11— Claims and Benefits......................................................................................................................... 83
43
CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022
Note 12 — Participaton in Joint Ventures......................................................................................................... 84
A. Northern California Power Agency........................................................................................................84
B. Transmission Agency of Northern California.........................................................................................88
Note 13 — Membership in Insurance Pools....................................................................................................... 89
A. California Joint Powers Risk Management Authority............................................................................89
B. Local Agency Workers' Compensation Excess Joint Powers Authority.................................................90
C. California Transit Insurance Pool...........................................................................................................90
Note 14 — Deficit in Net Position...................................................................................................................... 91
A. Deficit in Net Position............................................................................................................................91
B. Expenditures in Excess of Appropriations..............................................................................................91
Note 15 — Pollution Remediation Obligation.................................................................................................... 92
Note 16 — Commitments and Contingencies.................................................................................................... 92
A. Litigation and Claims.............................................................................................................................92
B. Water Purchase Agreement with Woodbridge Irrigation District.........................................................92
C. Arbitrage Earnings Rebate Liability.......................................................................................................92
D. Construction and Other Significant Commitments...............................................................................93
E. Power Supply Costs...............................................................................................................................93
Note 17 — Reclassification of Fund Balance...................................................................................................... 93
Note18 — Subsequent Events.......................................................................................................................... 94
44
CITY OF LODI
Notes to Basic Financial Statements
June 30, 2022
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 City is considered to be financially accountable for an organization if the City appoints a voting
majority of that organization's governing body and the organization is able to provide specific financial benefits to
or impose specific financial burdens on the City. The City is also considered to be financially accountable if an
organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue
bonded debt without approval from the City). In certain cases, other organizations are included as component units
if the nature and significance of their relationship with the City are such that their exclusion would cause the City's
financial statements to be misleading or incomplete.
The Lodi Public Financing Authority is considered to be a blended component unit of the reporting entity of the City
because its sole purpose is to finance and construct the City's public facilities. Blended component units, although
legally separate entities, are in substance, part of the City's operations and so data from these units are reported
within the funds of the primary government. The Lodi Public Financing Authority does not issue separate
component unit financial statements.
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.
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.
45
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
B. Government -Wide and Fund Financial Statements (Continued)
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.
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:
46
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
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.
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.
47
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
Restricted Cash and Investments (Continued)
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 $2,229,407 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 2020 Water Refunding
Series A Bonds for debt service. In the Capital Outlay fund, restricted assets represent the proceeds of the 2022
Lease Revenue 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 measurable 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.
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, 2022, the outstanding balance of these loans amounted to $35,572, which the City included in due
from other governmental agencies.
48
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
H. Loan Receivables (Continued)
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, 2022, a total of one loan to industrial and commercial customers have been approved. At June 30, 2022,
there were three outstanding loans, with a balance of $21,013.
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, 2022, upon which the 2021-22 levy was based, was $7,353,233,712.
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, 2022, 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.
L 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.
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.
49
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
K. Transfers (Continued)
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 13).
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 2022 Lease Refunding Bonds amortized over 31 years.
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 in accordance with GASB Statement No. 71 as of the CaIPERS'
valuation measurement date June 30, 2021. These amounts are to be recognized in future pension expense and the
amortization period differs depending on the source of the gain or loss.
50
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
O. Deferred Outflows and Inflows of Resources(Continued)
Related to OPEB
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, 2021. 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.
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.
51
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
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, 2020
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021
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, 2021
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021
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:
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.
52
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
U. Net Position (Continued)
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, 2022 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 determined by the adoption of an ordinance
committing fund balance for a specified purpose by City of Lodi's Council prior to the end of a fiscal year. Once
adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the
specified purpose or the Council adopts another ordinance to remove or revise the limitation.
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.
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.
53
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
U. Net Position (Continued)
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. Leases
Lessee
The City has a policy to recognize a lease liability and a right -to -use lease asset (lease asset) in the government -wide
financial statements. The City recognizes lease liabilities with an initial, individual value of $1,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments
expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of
lease payments made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease
payments made to the lessor at or before the commencement of the lease term, less any lease incentives received
from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary
charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method
over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase
option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is
amortized over the useful life of the underlying asset.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount
rate for leases.
54
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
X. Leases (Continued)
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the
lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to
exercise.
Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes
leases receivable and deferred inflows of resources in the financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion
of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the
lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently,
the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and
rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected
lease receipts to present value, (2) lease term, and (3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement
of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the
lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect
the amount of the lease receivable.
Y. New GASB Pronouncements Adopted
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. This implementation of this statement had a significant impact to the City's financial statements.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period (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 of implementing GASB Statement No. 89, the City did
not include interest cost incurred before the end of a construction period in the historical cost of a capital asset
reported at June 30, 2022.
55
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
Y. New GASB Pronouncements Adopted (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. This statement did not have a significant impact to the City's financial
statements.
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. The implementation of this statement did not have a significant impact
to the City's financial statements. This statement did not have a significant impact to the City's financial statements.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —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 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. The implementation of this statement did not have a significant impact to the City's
financial statements. This statement did not have a significant impact to the City's financial statements.
Upcoming New GASB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial
statements for the following GASB Statements:
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, originally
effective for the City's fiscal year ending June 30, 2022, has been postponed to fiscal year ending June 30, 2023.
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.
56
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
y,
Z.
New GASB Pronouncements Adopted (Continued)
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 information
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) provides 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 April 2022, GASB issued Statement No. 99, Omnibus 2022 (GASB Statement No. 99), to enhance comparability in
accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1)
practice issues that have been identified during implementation and application of certain GASB Statements and (2)
accounting and financial reporting for financial guarantees. GASB Statement No. 99 is effective for the City's fiscal
year ending June 30, 2023.
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB
Statement No. 62 (GASB Statement No. 100), to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and
comparable information for making decisions or assessing accountability. GASB Statement No. 100 is effective for
the City's fiscal year ending June 30, 2024.
In June 2022, GASB issued Statement No. 101, Compensated Absences (GASB Statement No. 101), to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a
unified model and by amending certain previously required disclosures. GASB Statement No. 100 is effective for the
City's fiscal year ending June 30, 2025.
Reclassification and Presentation
Certain reclassifications of prior year's balances have been made to conform with the current year presentation. The
reclassifications have no effect on the total net position, change in net position or net changes in cash equivalents.
Note 2 — Cash and Investments
Cash and investments as of June 30, 2022 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 $ 92,117,542 $ 75,269,752 $ 167,387,294 $ 150,556 $ 167,537,850
Restricted cash
and investments 31,545,711 17,822,565 49,368,276 - 49,368,276
Total $ 123,663,253 $ 93,092,317 $ 216,755,570 $ 150,556 $ 216,906,126
57
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 2 — Cash and Investments (Continued)
Cash and investments as of June 30, 2022 consist of the following:
Cash on hand
Demand deposits
Investments
Total cash and investments
A. Authorized Investments
B.
C.
3,746
7,107, 621
7,111, 367
209,794,759
$ 216,906,126
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.
Commercial Paper
California State Local Agency Investment Fund
Passbook Deposits
Mutual Funds & Money Market Mutual Funds
Medium Term Corporation Notes
Joint Powers Authority Pool
Certificates of Deposit Account Registry Service (CDARS)
Supranational Obligations
Municipal Securities (50 States or California Local Agencies)
(1) Funds held at NCPA shall not count to this limit)
Investments Authorized by Debt Agreements
Credit rating of P1/A1 or A1+/F1 or F1+ by
270 days
30%
Maximum %
Indefinite
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
Commercial Paper
California State Local Agency Investment Fund
Passbook Deposits
Mutual Funds & Money Market Mutual Funds
Medium Term Corporation Notes
Joint Powers Authority Pool
Certificates of Deposit Account Registry Service (CDARS)
Supranational Obligations
Municipal Securities (50 States or California Local Agencies)
(1) Funds held at NCPA shall not count to this limit)
Investments Authorized by Debt Agreements
Credit rating of P1/A1 or A1+/F1 or F1+ by
270 days
30%
Moody's S&P or Fitch
Indefinite
100%
None
Indefinite
100%
None
N/A
20%
Multiple Requirements per Gov't Code
5 years
30%
A-/A3/A- by Moody's, S&P, or Fitch
Indefinite
30%(1)
Multiple Requirements per Gov't Code
Indefinite
30%
None
5 years
30%
AA-/Aa3/AA- by Moody's, S&P, or Fitch
5 years
100%
None
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.
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.
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 $2,229,407 guaranteed
investment contract held in the Wastewater Fund which is a long-term investment.
58
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 2 — Cash and Investments (Continued)
C. Restricted Cash (Continued)
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 2020 Water Refunding
Series A Bonds for debt service. In the Capital Outlay fund, restricted assets represent the proceeds of the 2022
Lease Revenue Bonds
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+/AIA- BBB+/BBB/BBB-
Not Rated
Total
Investments by Fair Value:
Held by Trustee:
US Agency Securities
$ 1,372,871
$ 8,817,039
$ $
$ 1,331,053
$ 11,520,963
Money Market Mutual Funds
-
-
24,664,587
24,664,587
Municipal Securities
6,408,182
23,653,958
1,675,522
609,921
32,347,583
Corporate Securities
2,926,015
6,240,427
15,715,855 2,374,835
-
27,257,132
Negotiable Certificate of Deposits
-
-
- -
7,357,409
7,357,409
Sovereigns, Supranational & Agencies
4,894,807
811,732
5,706,539
Guaranteed Investments Contracts
-
2,229,407
2,229,407
Exempt from Credit Rating Disclosure:
U.S Treasury Notes
7,093,173
7,093,173
Held by City:
CALTRUST
10,154,702
10,154,702
PARS
20,037,023
20,037,023
Local Bank Certificate of Deposits
2,000,000
2,000,000
Demand Deposits
7,107,621
7,107,621
Cash on hand
3,746
3,746
LAIF
-
-
- -
59,426,241
59,426,241
Total Cash and Investments
$ 15,601,875
$ 38,711,424
$ 17,391,377 $ 2,374,835
$ 142,826,615
$ 216,906,126
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.
59
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 2 — Cash and Investments (Continued)
E. 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, CaITRUST,
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. There are no investments in aggregate that total is greater than 5%.
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 $19,704,909, 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
Investments by Fair Value:
Held by City:
CALTRUST
LAIF
PARS
Local Bank Certificate of Deposits
Cash on Hand
Demand Deposits
Held by Trustee:
Negotiable Certificate of Deposits
US Agency Securities
Money Market Mutual Funds
Municipal Securities
Corporate Securities
Sovereigns, Supranational & Agencies
Guaranteed Investments Contracts
U.S Treasury Notes
Total Investments
12 Months or Less 13 to 24 Months 25 to 36 Months 37 to 60 Months 61 + Months Total
$ 10,154,702 $ $ $ $ $ 10,154,702
59,426,241 59,426,241
20,037,023 20,037,023
2,000,000 2,000,000
3,746 3,746
7,107, 621 7,107, 621
3,507,365
1,253,533
719,366
1,877,145
7,357,409
1,500,692
1,083,029
2,255,326
6,681,917
11,520,964
9,664,587
-
-
-
15,000,000
24,664,587
4,145,569
4,528,677
8,368,392
8,486,477
6,818,469
32,347,584
3,051,873
6,643,933
6,109,889
6,736,827
4,714,609
27,257,131
-
774,966
1,206,234
3,725,338
-
5,706,538
-
-
-
2,229,407
-
2,229,407
2,738,701
482,871
938,457
2,473,076
460,068
7,093,173
$ 123,338,120
$ 14,767,009
$ 19,597,664
$ 32,210,187
$ 26,993,146
$216,906,126
60
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 2 — Cash and Investments (Continued)
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, 2022, the City's investment
position in LAIF was $59.4 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, 2022, the City's investment in CalTRUST is $10.1 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 $2,229,407 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, 2022:
61
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
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
$ $ 7,357,409
$ 7,357,409
11, 520, 964
11, 520, 964
5,706,538
5,706,538
7,093,173
7,093,173
32,347,584
32,347,584
27, 257,131
27, 257,131
91,282,799
91,282,799
2,229,407
10,154,702
20,037,023
59,426,241
2,000,000
24,664,587
3,746
7,107,621
$ - $ - $216,906,126
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
$ 90,103
Electric sales and services
422,395
Wastewater services
96,756
Water sales and services
69,394
Miscellaneous billing
380,990
Total uncollectibles, at end of fiscal year $ 1,059,638
Note 4 — Interfund Receivables/Payables
Due from
Due to
Amount
Non -major governmental Non -major governmental
Community Development HOME Program & CDBG $ 1,978,118
$ 1,978,118
62
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 5 —Transfers
Transfers for the year ended June 30, 2022, are summarized as follows:
During the year, various interfund transfers were made to finance expenditures, subsidize operating losses and
service debt.
Transfers out of $1,218,470 from the Electric Fund, $1,084,700 from the Wastewater Fund, $914,920 from the Water
Fund and $210,430 from the Transit Fund represent operating contributions to the General Fund.
The transfer of $541,330 from the General Fund to the Streets Fund is for operations and for various streets projects.
The transfer of $18,463,430 from the General Fund to other governmental funds represents transfer of $1,023,555
to the Debt Service Fund for the interest required to pay the 2012 Refunding Lease Revenue Bonds; $6,805,875 to
Parks, Recreation, and Community Services Fund for operating costs; $3,354,000 to Capital Outlay Fund for capital
projects; and $7,280,000 to Parks Capital Fund for one-time funding of parks projects.
In addition, Community Development transferred to the General Fund $66,270 for normal operating costs.
The transfer out of $2,683,630 from other governmental funds to other governmental funds includes $656,190
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; $1,680,000 from Parks, Recreation and Community Services Fund
to Parks Capital for tree trimming and capital projects; and $347,440 from Public Safety Fund to Capital Outlay Fund
for the police training facility.
The transfer of $25,320 was transferred from the Electric Fund, to Parks, Recreation, and Community Services Fund
for $4,320 and $21,000 to the Capital Outlay Fund for lighting projects.
63
Transfers In
Other
General
Streets Governmental
Total
Transfers Out:
General
$ -
$ 541,330 $ 18,463,430
$ 19,004,760
Other governmental
66,270
- 2,683,630
2,749,900
Electric
1,218,470
25,320
1,243,790
Wastewater
1,084,700
-
1,084,700
Water
914,920
914,920
Transit
210,430
-
210,430
Total
$ 3,494,790
$ 541,330 $ 21,172,380
$ 25,208,500
During the year, various interfund transfers were made to finance expenditures, subsidize operating losses and
service debt.
Transfers out of $1,218,470 from the Electric Fund, $1,084,700 from the Wastewater Fund, $914,920 from the Water
Fund and $210,430 from the Transit Fund represent operating contributions to the General Fund.
The transfer of $541,330 from the General Fund to the Streets Fund is for operations and for various streets projects.
The transfer of $18,463,430 from the General Fund to other governmental funds represents transfer of $1,023,555
to the Debt Service Fund for the interest required to pay the 2012 Refunding Lease Revenue Bonds; $6,805,875 to
Parks, Recreation, and Community Services Fund for operating costs; $3,354,000 to Capital Outlay Fund for capital
projects; and $7,280,000 to Parks Capital Fund for one-time funding of parks projects.
In addition, Community Development transferred to the General Fund $66,270 for normal operating costs.
The transfer out of $2,683,630 from other governmental funds to other governmental funds includes $656,190
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; $1,680,000 from Parks, Recreation and Community Services Fund
to Parks Capital for tree trimming and capital projects; and $347,440 from Public Safety Fund to Capital Outlay Fund
for the police training facility.
The transfer of $25,320 was transferred from the Electric Fund, to Parks, Recreation, and Community Services Fund
for $4,320 and $21,000 to the Capital Outlay Fund for lighting projects.
63
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 6 — Capital Assets
A. Capital Assets Activity
Capital assets activity of the primary government for the year ended June 30, 2022, was as follows:
Governmental activities
July 1, 2021
Additions
Retirements Transfers
June 30, 2022
Capital assets, not being depreciated:
Land
$ 25,238,390
$ 1,078,373
$ - $
$ 26,316,763
Work of Art
304,907
-
- -
304,907
Construction in progress
3,020,404
5,120,781
- (3,273,181)
4,868,004
Total capital assets, not being depreciated
28,563,701
6,199,154
- (3,273,181)
31,489,674
Capital assets, being depreciated:
Buildings and improvements
78,176,039
1,025,016
- 938,294
80,139,349
Machinery and equipment
16,857,465
58,338
- -
16,915,803
Vehicles
13,972,017
2,239,100
(267,532) -
15,943,585
Infrastructure
191,106,454
2,889,545
- 2,334,887
196,330,886
Total capital assets, being depreciated
300,111,975
6,211,999
(267,532) 3,273,181
309,329,623
Less accumulated depreciation for:
Buildings and improvements
44,367,954
2,056,019
- -
46,423,973
Machinery and equipment
13,995,893
826,139
- -
14,822,032
Vehicles
10,069,852
507,312
(267,532) -
10,309,632
Infrastructure
123,258,716
5,100,573
- -
128,359,289
Total accumulated depreciation
191,692,415
8,490,043
(267,532)
199,914,926
Leased assets
33,607
(11,174)
-
22,433
Total capital assets, being depreciated, net
108,419,560
(2,278,044)
- 3,273,181
109,414,697
Governmental activities capital assets, net
$ 137,016,868
$ 3,909,936
$ - $ -
$ 140,926,804
July 1, 2021
Additions
Retirements Transfers
June 30, 2022
Capital assets, not being depreciated:
Land
$ 5,535,718
$ -
$ $
$ 5,535,718
Construction in progress
11,202,687
8,039,692
(11,947,037)
7,295,342
Total capital assets, not being depreciated
16,738,405
8,039,692
- (11,947,037)
12,831,060
Capital assets, being depreciated:
Buildings and improvements
62,309,758
-
- 970,570
63,280,328
Machinery and equipment
335,229,247
4,673,894
(6,200) 10,976,467
350,873,408
Vehicles
15,100,372
441,627
(96,735) -
15,445,264
Total capital assets, being depreciated
412,639,377
5,115,521
(102,935) 11,947,037
429,599,000
Less accumulated depreciation for:
Buildings and improvements
26,028,073
1,810,155
- -
27,838,228
Machinery and equipment
137,819,944
8,799,120
(6,200)
146,612,864
Vehicles
12,219,780
481,486
(96,735) -
12,604,531
Total accumulated depreciation
176,067,797
11,090,761
(102,935)
187,055,623
Leased assets
146,347
(34,170)
-
112,177
Total capital assets, being depreciated, net
236,571,580
(5,975,240)
- 11,947,037
242,543,377
Business -type activities capital assets, net
$ 253,456,332
$ 2,030,282
$ - $ -
$ 255,486,614
64
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 6 — Capital Assets (Continued)
B. Depreciation Expense
Depreciation expense was charged to function/programs of the primary government as follows:
Governmental Activities
General government
$ 377,792
Public protection
1,187,045
Public works
5,402,198
Library
261,654
Parks and recreation
1,259,907
Internal service funds
1,447
Total depreciation expense $ 8,490,043
C. Lease Amortization
Business -type Activities
Electric $ 11,161
Wastewater 11,161
Water 11,848
$ 34,170
Note 7 — Long — Term Liabilities
A. Long -Term Liability Transactions Summary
Business -type Activities
Electric
$ 2,074,923
Wastewater
4,660,165
Water
3,301,686
Transit
1,053,987
Total depreciation expense $ 11,090,761
The following is a summary of long-term liability transactions of the City for the year ended June 30, 2022:
Governmental activities:
Compensated absences
Sick leave conversion
Self-insurance liability (Note 11)
Lease payable (Note 10)
Publicly offered:
2012 Lease Revenue Bonds
Issuance premium
Total
2022 Lease Revenue Bonds
Issuance premium
Total
Capital lease
Governmental activities long-term liabilities
14,335,000
(14,335,000)
Amounts Due
July 1, 2021
Additions
Reductions
June 30, 2022
Within One Year
$ 3,965,182
$ 6,543,523
$ (6,435,888)
$ 4,072,817
$ 3,733,958
6,655,965
600,878
7,256,843
-
9,482,536
3,186,469
(1,798,809)
10,870,196
3,337,660
33,607
-
(11,173)
22,434
11,201
14,335,000
(14,335,000)
547,270
(547,270)
14,882,270
(14,882,270)
-
-
-
28,250,000
28,250,000
660,000
634,343
(4,263)
630,080
20,462
-
28,884,343
(4,263)
28,880,080
680,462
169,099
-
(83,672)
85,427
85,427
$ 35,188,659
$ 39,215,213
$ (23,216,075)
$ 51,187,797
$ 7,848,708
65
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 7 — Long — Term Liabilities
A. Long -Term Liability Transactions Summary (Continued)
Amounts Due
July 1, 2021 Additions Reductions June 30, 2022 Within One Year
Business -type activities:
Compensated absences
$ 872,584 $ 3,428,117
$ (2,827,801)
$ 1,472,900
$ 1,363,439
Sick leave conversion
833,587 64,883
898,470
-
Lease payable (Note 10)
146,347 -
(34,244)
112,103
54,685
Pollution remediation obligation (Note 15)
15,382,824
(343,467)
15,039,357
400,000
Loan payable
453,583
(224,178)
229,405
229,405
Publicly offered:
Certificates of Participation, Revenue Bonds, and Installment Purchase Agreement:
2004 Certificates of Participation A
2,070,000
2,070,000
-
2012 Wastewater Refunding Revenue Bonds A
5,405,000
(1,725,000)
3,680,000
1,885,000
Issuance premium
374,206
(166,313)
207,893
166,313
Total
5,779,206
(1,891,313)
3,887,893
2,051,313
2016 Wastewater Refunding Revenue Bonds A
19,960,000
(125,000)
19,835,000
140,000
Issuance premium
2,062,918
(130,979)
1,931,939
130,979
Total
22,022,918
(255,979)
21,766,939
270,979
2017 Installment Purchase Agreement
7,431,123
(120,675)
7,310,448
121,416
2018 Electric System Refunding Revenue Bonds
37,650,000
(2,365,000)
35,285,000
2,485,000
Issuance premium
5,170,074
(477,246)
4,692,828
477,246
Total
42,820,074
(2,842,246)
39,977,828
2,962,246
2020 Water Refunding Revenue Bonds
25,390,000
(930,000)
24,460,000
970,000
Issuance premium
3,228,047
(170,646)
3,057,401
170,646
Total
28,618,047
(1,100,646)
27,517,401
1,140,646
Certificates of Participation, Revenue Bonds, and
Installment Purchase Agreement:
Business -type activities long-term liabilities
B. Other Long -Term Liabilities
108,741,368 (6,210,859) 102,530,509 6,546,600
$126,430,293 $ 3,493,000 $ (9,640,549) $ 120,282,744 $ 8,594,129
For compensated absences, the general fund normally liquidates 84%. The Community Development fund and
Parks, Recreation and Cultural Services Fund normally liquidate 3% and 4%. The remaining 8% is liquidated by other
governmental funds and the internal service fund. The net pension liability and OPEB liability will be liquidated from
the general fund, approximately 35%. The Community Development fund and Parks, Recreation and Cultural
Services fund will liquidate approximately 4.8% and 7.26% and a portion from the internal service fund. Proprietary
funds pay their appropriate share of the liabilities. Electric Utility will normally liquidate 4.78%, Water will normally
liquidate 5.57%, Wastewater will liquidate 9.84% and Transit will liquidate 2.92%.
66
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 7 — Long — Term Liabilities
C. Loans Payables
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 $234,755 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
2023
Total
D. Capital Lease
$ 229,405 $ 5,350
$ 229,405 $ 5,350
On June 22, 2016, the City entered into a lease -purchase agreement for the acquisition of Dispatch Console
equipment for the Police Department. The equipment is providing the City with a more flexible system for better
connectivity between the Lodi Police Department dispatch operators and field personnel. The annual payments are
paid from Police department appropriations.
The present values of future minimum capital lease payments as of June 30, 2022, are as follows:
Year Ending, June 30
2023 $ 86,540
Total minimum lease payments 86,540
Less amounts representing interest (1,113)
Present value of minimum capital lease payments $ 85,427
E. Certificates of Participation, Revenue Bonds and Installment Purchase Agreement
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, 2022, 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. In March 2022, these bonds were refunded.
67
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 7 — Long — Term Liabilities (Continued)
E. Certificates of Participation, Revenue Bonds and Installment Purchase Agreement (Continued)
On March 2, 2022, the City issued $28,250,000 Lease Revenue Bonds (2022 Bonds) to prepay and cause the
immediate defeasance of the outstanding $19,080,000 2012 Refunding Lease Revenue Bonds and to finance the
acquisition and construction of capital improvements of the City, including a new animal shelter and parks and
playground improvements and upgrades. The refunding allowed the City to keep debt service payments consistent
with the previous schedule, while allowing the City to fund much need capital projects. The total principle and
interest remaining is $44,995,723. Principal is payable annually commencing 2022 on October 1 in amounts from
$660,000 to $1,255,000 with final payment due October 1, 2052.
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 $2,266,652. Interest paid
for the current year and total net revenues were $98,326 and $13,891,223, respectively.
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 $3,956,250.
Principal and interest paid for the current year and total net revenues were $1,943,500 and $13,891,223,
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
$27,198,906. Interest paid for the current year and total net revenues were $839,050 and $13,891,223, respectively.
At June 30, 2022, the remaining balance of the refunded debt is $19,835,000.
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 $9,059,378. The outstanding notes
from direct borrowings related to business -type activities of $7,762,794 contain a provision that in an event of
default, the timing of repayment of outstanding amounts, principal and interest, become immediately due and
payable.
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 $46,728,250.
68
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 7 — Long — Term Liabilities (Continued)
Certificates of Participation, Revenue Bonds and Installment Purchase Agreement (Continued)
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 $34,407,300.
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
2023
$ 660,000
$ 978,117
$ 5,511,416
$ 3,995,169
2024
655,000
986,000
5,767,098
3,729,702
2025
680,000
959,300
6,511,831
3,401,684
2026
705,000
931,600
6,818,707
3,187,421
2027
735,000
902,800
7,132,980
2,874,747
2028-2032
4,140,000
4,039,500
31,918,153
9,933,609
2033-2037
5,030,000
3,145,300
21,515,113
3,329,129
2038-2042
4,000,000
2,395,750
7,465,150
434,827
2043-2047
4,730,000
1,655,694
-
-
2048-2052
5,660,000
729,700
2053-2057
1,255,000
21,963
-
-
Total
$ 28,250,000
$ 16,745,724
$ 92,640,448
$ 30,886,288
Note 8 — Pension Plans
A. 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 CAPERS website.
69
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 8 — Pension Plans (Continued)
B. 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, 2022, 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
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%
C. Employees Covered
At June 30, 2022, 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
70
Prior to
December 22, 2012 to
On or after
Hire date
22 -Dec -12
31 -Dec -12
1 -Jan -13
Benefit formula
3% @ 50
3% @ 55
2.7% @ 57
Benefit vesting schedule
5 years of service
5 years of service
5 years of service
Benefit payments
monthly for life
monthly for life
monthly for life
Retirement age
50-55
50-55
50-57
Monthly benefits, as a % of eligible compensation
3%
2.4% to 3%
2% to 2.7%
Required employee contribution rates
9%
9%
11.25%
Required employer contribution rates
44.75%
44.75%
44.75%
C. Employees Covered
At June 30, 2022, 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
70
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 8 — Pension Plans (Continued)
D. 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:
Aggregate
Miscellaneous Safetv Total
Contributions - employer $ 5,449,075 $ 8,162,996 $ 13,612,071
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, 2021, using an annual
actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.
F. Actuarial Assumptions
The total pension liabilities in the June 30, 2020 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, 2020 June 30, 2020
June 30, 2021 June 30, 2021
Entry -Age Normal Cost Method
7.15%
7.15%
2.50% 2.50%
7.00%(1) 7.00%(1)
Based on rates of CAPERS Experience Study
(1) Net of pension plan investment expenses, including inflation
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 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.
G. 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.
71
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 8 — Pension Plans (Continued)
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.
H. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2020 $ 209,775,815 $ 146,446,488 $ 63,329,327
Changes in the year:
Service cost
Interest on the total pension liability
Differences between expected and actual
experience
Contribution - employer
Contribution - employee
Net investment income Ill
Benefit payments, including refunds of employee
contributions
Other changes in fiduciary net position
Net changes during measurement period 6,849,521 31,045,964 (24,196,443)
Balance at June 30, 2021 $ 216,625,336 $ 177,492,452 $ 39,132,884
3,122,428
14,741,817
699,175
(11,713,899)
7,699,946
2,129,311
33,076,897
(11,713,899)
(146,291)
3,122,428
14, 741, 817
699,175
(7,699,946)
(2,129,311)
(33,076,897)
146,291
72
Current Target
Real Return
Real Return
Asset Class
Allocation
Years 1 - 10 Ill
Years 11 +Izl
Public Equity
50.20%
50.00%
-0.60%
Private Equity
7.10%
8.00%
Fixed Income
28.70%
28.00%
-7.00%
Liquidity
1.00%
1.00%
1.00%
Real Estate
11.00%
13.00%
5.40%
Trust Level
2.00%
0.00%
0.00%
(l) An expected inflation of 1.55% used for this period.
Izl An expected inflation of 1.50% used for this period.
H. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2020 $ 209,775,815 $ 146,446,488 $ 63,329,327
Changes in the year:
Service cost
Interest on the total pension liability
Differences between expected and actual
experience
Contribution - employer
Contribution - employee
Net investment income Ill
Benefit payments, including refunds of employee
contributions
Other changes in fiduciary net position
Net changes during measurement period 6,849,521 31,045,964 (24,196,443)
Balance at June 30, 2021 $ 216,625,336 $ 177,492,452 $ 39,132,884
3,122,428
14,741,817
699,175
(11,713,899)
7,699,946
2,129,311
33,076,897
(11,713,899)
(146,291)
3,122,428
14, 741, 817
699,175
(7,699,946)
(2,129,311)
(33,076,897)
146,291
72
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 8 — Pension Plans (Continued)
H. Changes in the Net Pension Liability (Continued)
Safety Plan:
Balance at June 30, 2020
Changes in the year:
Service cost
Interest on the total pension liability
Differences between expected and actual
experience
Contribution - employer
Contribution - employee
Net investment income (1)
Benefit payments, including refunds of employee
contributions
Other changes in fiduciary net position
Net changes during measurement period
Balance at June 30, 2021
(1) Net of administrative expenses.
2,342,238 - 2,342,238
- 9,831,931 (9,831,931)
- 2,238,261 (2,238,261)
29,108,868 (29,108,868)
(11,326,169) (11,326,169) -
- (126,704) 126,704
9,497,956 29,726,187 (20,228,231)
$ 220,161,980 $ 156,564,328 $ 63,597,652
1. 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:
Increase (Decrease)
Safety Plan
Total Pension
Plan Fiduciary Net
Net Pension
Liability
Position
Liability
$ 210,664,024
$ 126,838,141
$ 83,825,883
3,530,630
$39,132,884
3,530,630
14,951,257
8.15%
14,951,257
2,342,238 - 2,342,238
- 9,831,931 (9,831,931)
- 2,238,261 (2,238,261)
29,108,868 (29,108,868)
(11,326,169) (11,326,169) -
- (126,704) 126,704
9,497,956 29,726,187 (20,228,231)
$ 220,161,980 $ 156,564,328 $ 63,597,652
1. 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:
L Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS
financial reports.
K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $5,449,075 and $8,162,996 for the
Miscellaneous and Safety Plans, respectively.
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
73
Miscellaneous Plan
Safety Plan
1% Decrease
6.15%
6.15%
Net Pension Liability
$66,054,054
$93,309,844
Current Discount Rate
7.15%
7.15%
Net pension Liability
$39,132,884
$63,597,652
1% Increase
8.15%
8.15%
Net Pension Liability
$16,772,833
$39,201,926
L Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS
financial reports.
K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $5,449,075 and $8,162,996 for the
Miscellaneous and Safety Plans, respectively.
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
73
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 8 — Pension Plans (Continued)
K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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 $ 5,898,545 $ 16,599,517 $ 10,350,676 $ 14,788,374 $ 16,249,221 $ 31,387,891
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
$ 5,449,075 $ $ 8,162,996 $ - $ 13,612,071 $ -
- - 16,622 - 16,622
449,470 81,221 2,187,680 167,922 2,637,150 249,143
- 16,518,296 - 14,603,830 - 31,122,126
The $5,449,075 and $8,162,996 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
for the year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ending
Miscellaneous
Safety
30 -Jun
Plan
Plan
Total
2022
(4,036,865)
(2,883,263)
$ (6,920,128)
2023
(3,620,717)
(2,919,925)
(6,540,642)
2024
(3,955,578)
(2,955,477)
(6,911,055)
2025
(4,536,887)
(3,842,029)
(8,378,916)
Total
$ (16,150,047)
$ (12,600,694)
$(28,750,741)
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.
74
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
A.
B.
Plan Description (Continued)
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
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, 201, the date of the latest actuarial valuation.
Eligibility
Plan
Active plan members
288
Inactive plan members entitled to, but not yet
receiving benefits
87
Retirees electing coverage
212
Retirees
6
Total
593
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 $1,836,904.
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) $ 24,157,531
Actuarial value of plan assets 2,396,261
Unfunded actuarial accrued liability (UAAL) $ 21,761,270
75
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
F.
G.
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.
Actuarial Valuations
The net OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Methods and Assumptions Used to Determine Total OPEB Liability
Valuation date: June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Wage Inflation
Expected Rate of Return
Healthcare Trend Rate
Discount Rate
Measurement date: June 30, 2021
Entry Age Normal level percent of pay cost method
3.22%
2.25%
2.75%
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.
An annual healthcare cost trend rate of 6.7% initially
reduced by decrements to an ultimate of 3.7%
therefore.
The discount rate used to measure the net OPEB liability was 3.22%. 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
Global equity
Fixed income
TIPS
Commodities
Cash
Global Real estate (REITs)
Target Allocation
34.00%
41.00%
5.00%
3.00%
0.00%
17.00%
1 - Long term expected rate of return in 5.9%
76
Long-term Expected Real
Rate of Returnl
4.40%
-1.00%
-1.80%
0.80%
0.00%
3.00%
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
G. Discount Rate (Continued)
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 (2.22%) or 1 -percentage point higher (4.22%) than
the current discount rate:
Plan's Net OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(2.22%) Rate (3.22%) (4.22%)
$ 24,527,882 $ 21,761,270 $ 19,463,635
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 healthcare cost trend rates 1 -percentage point lower (5.0%HM0/5.5%PP0 decreasing to
4.0%HMO/4.5%PP0) or 1 -percentage point higher (7.0%HM0/6.5%PP0 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 $ 19,342,918 $ 21,761,270 $ 24,716,916
1. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total OPEB liability
Differences between expected and actual
experience
Changes of assumptions
Employer contributions
Net investment income
Benefit payments, including refunds of member
contributions
Administrative expenses
$ 26,361,543 $
2,003,111 $ 24,358,432
745,536
- 745,536
932,315
932,315
(2,659,765)
(2,659,765)
614,806
- 614,806
-
1,836,904 (1,836,904)
393,880 (393,880)
(1,836,904) (1,836,904) -
(730) 730
Net Changes during July 1, 2020 to June 30, 2021 (2,204,012) 393,150 (2,597,1
Balance at June 30, 2021 (Measurement Date) $ 24,157,531 $ 2,396,261 $ 21,761,270
77
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 9 — Post Employment Benefits Other Than Pensions (Continued)
1. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB (Continued)
For the year ended June 30, 2022, the City recognized OPEB expense of $1,872,451 for the City Plan. At June 30,
2022 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 $ 1,657,903 $ -
Change of assumptions - 1,967,815
Difference between expected and
actual liability 5,929,182
Difference between expected and
actual investment earnings 208,245
$ 1,657,903 $ 8,105,242
The $1,657,903 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, 2022. 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
2023
(1,811,905)
2024
(1,813,086)
2025
(1,485,110)
2026
(1,433,081)
2027
(1,032,884)
Thereafter
(529,176)
Total $
(8,105,242)
Note 10 — Implementation of New GASB Pronouncements
For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases.
The primary objective of this statement is to enhance the relevance and consistency of information about
governments' leasing activities. This statement establishes a single model for lease accounting based on the principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to
recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.
Leases
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure
any lease asset, liability, and deferred inflows if certain changes occur that are expected to significantly affect the
amount of the lease liability.
78
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 — Implementation of New GASB Pronouncements (Continued)
A. Lessee
Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long-
term debt on the statement of net position.
For the year ended June 30, the financial statements include the adoption of GASB Statement No. 87, Leases. The
primary objective of this statement is to enhance the relevance and consistency of information about governments'
leasing activities. This statement establishes a single model for lease accounting based on the principle that leases
are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease
liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources. For additional information, refer to the disclosures below.
On July 1, 2021, Lodi, CA entered into a 36 month lease as Lessee for the use of City Base. An initial lease liability
was recorded in the amount of $134,429. As of June 30, the value of the lease liability is $89,733. Lodi, CA is
required to make monthly fixed payments of $3,750. The lease has an interest rate of 0.2850%. The Equipment
estimated useful life was 24 months as of the contract commencement. The value of the right to use asset as of June
30 of $134,429 with accumulated amortization of $44,644 is included with Equipment on the Lease Class activities
table found below. Lodi, CA has 1 extension option(s), each for 12 months.
On July 1, 2021, Lodi, CA entered into a 795 month lease as Lessee for the use of Woodbridge Irrigation District -
Pumping Plant. An initial lease liability was recorded in the amount of $45,526. As of June 30, the value of the lease
liability is $44,802. Lodi, CA is required to make annual fixed payments of $1,000. The lease has an interest rate of
1.2120%. The Land estimated useful life was 795 months as of the contract commencement. The value of the right
to use asset as of June 30 of $45,526 with accumulated amortization of $687 is included with Land on the Lease
Class activities table found below. Lodi, CA has 1 extension option(s), each for 480 months.
79
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 — Implementation of New GA56 Pronouncements (Continued)
A. Lessee (Continued)
Principal and interest expected to maturity:
Governmental Activities
Fiscal Year Principal Payments Interest Payments
Total Payments
2023
$ 545,200
$ 1,037,058
$ 1,582,258
2024
639,987
1,022,308
1,662,295
2025
546,384
1,012,708
1,559,092
2026
552,352
1,003,090
1,555,442
2027
562,149
993,293
1,555,442
2028-2032
2,948,236
4,813,015
7,761,251
2033-2037
3,127,894
4,541,423
7,669,317
2038-2042
2,205,388
4,318,593
6,523,981
2043-2047
2,316,724
4,146,328
6,463,052
2048-2052
2,423,140
3,966,114
6,389,254
2053-2057
2,572,316
3,773,551
6,345,867
2058-2062
2,780,154
3,565,713
6,345,867
2063-2067
3,004,785
3,341,082
6,345,867
2068-2072
3,247,566
3,098,301
6,345,867
2073-2077
3,509,963
2,835,904
6,345,867
2078-2082
3,793,561
2,552,306
6,345,867
2083-2087
4,100,073
2,245,794
6,345,867
2088-2092
4,431,351
1,914,516
6,345,867
2093-2097
4,789,395
1,556,472
6,345,867
2098-2102
5,176,369
1,169,498
6,345,867
2103-2107
5,594,609
751,258
6,345,867
2108-2112
6,046,643
299,225
6,345,868
2113-2114
745,026
3,788
748,814
Total
$ 65,659,265
$ 53,961,338
$ 119,620,603
Principal and interest expected to maturity:
Business -Type Activities
Fiscal Year
Principal Payments
Interest Payments
Total Payments
2023
$ 41,840
$ 2,770
$ 44,610
2024
42,454
2,156
44,610
2025
43,081
1,529
44,610
2026
43,719
891
44,610
2027
33,837
247
34,084
Total
$ 204,931
$ 7,593
$ 212,524
B. Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes
leases receivable and deferred inflows of resources in the financial statements.
On July 1, 2021, Lodi, CA entered into a 117 month lease as Lessor for the use of Adopt -A -Child. An initial lease
receivable was recorded in the amount of $127,928. As of June 30, the value of the lease receivable is $115,408. The
80
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 — Implementation of New GASB Pronouncements (Continued)
B. Lessor (Continued)
lessee is required to make monthly fixed payments of $1,140. The lease has an interest rate of 1.0400%. The value
of the deferred inflow of resources as of June 30 was $114,904, and Lodi, CA recognized lease revenue of $13,024
during the fiscal year.
On July 1, 2021, Lodi, CA entered into a 37 month lease as Lessor for the use of Ascend Fitness. An initial lease
receivable was recorded in the amount of $63,665. As of June 30, the value of the lease receivable is $47,344. The
lessee is required to make monthly fixed payments of $1,825. The lease has an interest rate of 0.1980%. The value
of the deferred inflow of resources as of June 30 was $43,525, and Lodi, CA recognized lease revenue of $20,140
during the fiscal year.
On July 1, 2021, Lodi, CA entered into a 67 month lease as Lessor for the use of World of Wonders Science Museum.
An initial lease receivable was recorded in the amount of $68,631. As of June 30, the value of the lease receivable is
$56,389. The lessee is required to make monthly variable principal and interest payments of $1,000 based on a CPI
index of 3.00%. The lease has an interest rate of 0.1980%. The value of the deferred inflow of resources as of June
30 was $56,339, and Lodi, CA recognized lease revenue of $12,292 during the fiscal year. The lessee has 1 extension
option(s), each for 36 months.
On July 1, 2021, Lodi, CA entered into a 345 month lease as Lessor for the use of McCaw Communications - AT&T.
An initial lease receivable was recorded in the amount of $416,090. As of June 30, the value of the lease receivable
is $402,341. The lessee is required to make monthly variable principal and interest payments of $1,249 based on a
CPI index of 2.16%. The lease has an interest rate of 0.4170%. The value of the deferred inflow of resources as of
June 30 was $401,637, and Lodi, CA recognized lease revenue of $14,453 during the fiscal year.
On July 1, 2021, Lodi, CA entered into a 264 month lease as Lessor for the use of NCPA. An initial lease receivable
was recorded in the amount of $4,616,866. As of June 30, the value of the lease receivable is $4,432,549. The lessee
is required to make monthly fixed payments of $20,310. The lease has an interest rate of 1.4330%. The value of the
deferred inflow of resources as of June 30 was $4,407,326, and Lodi, CA recognized lease revenue of $209,540
during the fiscal year.
On July 1, 2021, Lodi, CA entered into a 1098 month lease as Lessor for the use of NCPA Ground Lease. An initial
lease receivable was recorded in the amount of $61,336,378. As of June 30, the value of the lease receivable is
$60,097,664. The lessee is required to make annual fixed payments of $20,310. The lessee is required to make
annual variable principal and interest payments of $1,188,686.16 based on a CPI index of 2.50%. The lease has an
interest rate of 1.5550%. The value of the deferred inflow of resources as of June 30 was $60,666,604, and Lodi, CA
recognized lease revenue of $669,774 during the fiscal year. The lessee has 1 extension option(s), each for 600
months.
On July 1, 2021, Lodi, CA entered into a 36 month lease as Lessor for the use of Verizon. An initial lease receivable
was recorded in the amount of $146,156 As of June 30, the value of the lease receivable is $97,553. The lessee is
required to make monthly variable principal and interest payments of $3,932 based on a Prime Rate of 3.67%. The
lease has an interest rate of 0.2850%. The value of the deferred inflow of resources as of June 30 was $97,438, and
Lodi, CA recognized lease revenue of $48,719 during the fiscal year.
On May 1, 2022, Lodi, CA entered into a 60 month lease as Lessor for the use of THE VILLAGE. An initial lease
receivable was recorded in the amount of $153,458. As of June 30, the value of the lease receivable is $148,543. The
lessee is required to make monthly fixed payments of $2,688. The lease has an interest rate of 1.9770%. The value
of the deferred inflow of resources as of June 30 was $148,343, and Lodi, CA recognized lease revenue of $5,115
during the fiscal year.
81
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 - Implementation of New GASB Pronouncements (Continued)
B. Lessor (Continued)
On May 29, 2022, Lodi, entered into a 180 month lease as Lessor for the use of Judicial Council of California. An
initial lease receivable was recorded in the amount of $2,890,306. As of June 30, the value of the lease receivable is
$2,890,306. The lessee is required to make monthly variable principal and interest payments of $19,747. The lease
has an interest rate of 2.3060%. The value of the deferred inflow of resources as of June 30 was $2,873,178, and
Lodi, CA recognized lease revenue of $17,128 during the fiscal year. The lessee has 1 extension option(s), each for
120 months.
Principal and interest requirements to maturity:
Governmental Activities
Fiscal Year Principal Payments Interest Payments Total Payments
2023 $ 11,201 $ 49 $ 11,250
2024 $ 11,233 17 11,250
Total $ 22,434 $ 66 $ 22,500
Amount of lease assets by major classes of underlying asset:
As of Fiscal Year-end
Asset Class Lease Asset Value Accumulated Amortization Net
Equipment $ 134,429 $ 44,644 $ 89,785
Land 45,526 687 44,839
Total Leases $ 179,955 $ 45,331 $ 134,624
82
Business -Type Activities
Fiscal Year
Principal Payments
Interest Payments
Total Payments
2023
$ 34,059 $
691 $
34,750
2024
34,161
590
34,751
2025
468
532
1,000
2026
474
526
1,000
2027
480
520
1,000
2028-2032
2,486
2,514
5,000
2033-2037
2,641
2,359
5,000
2038-2042
2,805
2,195
5,000
2043-2047
2,979
2,021
5,000
2048-2052
3,164
1,836
5,000
2053-2057
3,360
1,640
5,000
2058-2062
3,569
1,431
5,000
2063-2067
3,791
1,209
5,000
2068-2072
4,026
974
5,000
2073-2077
4,276
724
5,000
2078-2082
4,541
459
5,000
2083-2087
4,823
177
5,000
Total
$ 112,103 $
20,398 $
132,501
Amount of lease assets by major classes of underlying asset:
As of Fiscal Year-end
Asset Class Lease Asset Value Accumulated Amortization Net
Equipment $ 134,429 $ 44,644 $ 89,785
Land 45,526 687 44,839
Total Leases $ 179,955 $ 45,331 $ 134,624
82
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 - Implementation of New GASB Pronouncements (Continued)
C. Activity
Governmental Activities:
The following is a summary of lease transactions of the City for the year ended June 30, 2022:
Lessor
Lease receivable
Governmental activities:
Buildings:
Adopt -A -Child
Ascend Fitness
Judicial Council of California
Land:
McCaw Communications - AT&T
NCPA
NCPA Ground Lease
T -Mobile
Verizon
Business -type activities:
Buildings:
World of Wonders Science Museum
The Village
Total lease receivable
Balance as of Balance as of
July 1, 2021 Additions Reductions June 30, 2022
$ 127,928
$ $ (12,521)
$ 115,407
63,665
(16,320)
47,345
-
2,890,306
2,890,306
416,090
- (13,749)
402,341
401,235
(20,310)
380,925
62,042,868
(388,283)
61,654,585
104,538
(33,735)
70,803
146,156
(48,603)
97,553
68,631 - (12,242) 56,389
- 153,458 (4,916) 148,542
$ 63,371,111 $ 3,043,764 $ (550,679) $ 65,864,196
Lessor
Balance as of
Balance as of
Deferred inflow of resources
July 1, 2021
Additions
Reductions
June 30, 2022
Business -type activities:
Buildings:
World of Wonders Science Museum
$ 68,631
$ -
$ (12,292)
$ 56,339
The Village
-
153,458
(5,115)
148,343
Governmental activities:
Buildings:
Adopt -A -Child
127,928
-
(13,024)
114,904
Ascend Fitness
63,665
-
(20,140)
43,525
Judicial Council of California
-
2,890,306
(17,128)
2,873,178
Land:
McCaw Communications - AT&T
416,090
-
(14,453)
401,637
NCPA
401,235
(18,210)
383,025
NCPA Ground Lease
62,042,868
(677,489)
61,365,379
T -Mobile
104,538
(34,944)
69,594
Verizon
146,156
-
(48,719)
97,437
Total deferred inflow of resources
$ 63,371,111
$ 3,043,764
$ (861,514)
$ 65,553,361
Note 11- 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.
83
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 11— Claims and Benefits (Continued)
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 13).
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 13).
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 $10,870,196 at June 30, 2022, 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, 2022, 2021, and 2020 are as follows:
FY21-22 FY20-21 FY19-20
Beginning Balance
$ 9,482,536
$ 8,665,085
$ 8,065,374
Current Year Claims &
Changes In Estimates
3,186,469
3,528,844
1,979,746
Claim Payments
(1,798,809)
(2,711,393)
(1,380,035)
Ending Balance
$ 10,870,196
$ 9,482,536
$ 8,665,085
Note 12 — Participation in Joint Ventures
A. 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.
84
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 12 — Participation in Joint Ventures (Continued)
A. 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 Proiect Participant's Original Proiect 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, 2022, the City's advance receivable in the NCPA General Operating Reserve, which has been credited
with annual interest earnings and settlements, is $10,922,475.
Project Participation
The NCPA members and their percentage share at June 30, 2022, which is the most recent available data, are as
follows:
85
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 12 - Participation in Joint Ventures (Continued)
A. Northern California Power Agency (Continued)
NCPA MEMBERS
Alameda
Bay Area Rapid Transit
Biggs
Gridley
Healdsburg
Lodi
Lompoc
Palo Alto
Plumas-Sierra Rural Electric Coop
Roseville
Santa Clara
Ukiah
OTHER PARTICIPANTS
Azusa
California Department of Water Resources
Modesto Irrigation District
Power & Water Resources Pooling Agency
Turlock Irrigation District
Bulk power purchased by the City through NCPA amounted to $48,380,956 during the year ended June 30, 2022 and
is reflected in utilities expense in the Electric Enterprise Fund.
NCPA Geothermal Proiect
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 $10.8 million at June 30, 2022.
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
10.56% of the debt service. At June 30, 2022, approximately $228.4 million in long-term debt used to finance this
project was outstanding.
86
Hydro
Combustion
Multiple
Lodi
Geothermal
Electric
Turbine
Capital
Transmission
Energy
Project
Project
Project #1
Facilities
Project
Center
16.88%
10.00%
21.82%
19.00%
30.36%
0.00%
-
-
-
-
-
6.60
0.23
0.20
0.41
0.27
0.34
-
0.35
0.60
1.96
3.67
1.66
5.83
-
6.61
1.64
10.28
10.37
13.39
39.50
18.49
9.50
3.68
2.30
5.83
5.00
6.62
2.04
-
22.92
-
-
-
0.70
1.69
1.82
-
1.26
0.79
7.88
12.00
-
36.50
14.18
-
44.39
37.02
41.67
-
-
25.75
5.61
2.04
9.09
10.10
1.79
-
-
-
2.79
33.50
10.71
-
2.67
6.33
11.38
-
Bulk power purchased by the City through NCPA amounted to $48,380,956 during the year ended June 30, 2022 and
is reflected in utilities expense in the Electric Enterprise Fund.
NCPA Geothermal Proiect
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 $10.8 million at June 30, 2022.
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
10.56% of the debt service. At June 30, 2022, approximately $228.4 million in long-term debt used to finance this
project was outstanding.
86
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 12 — Participation in Joint Ventures (Continued)
A. Northern California Power Agency (Continued)
NCPA Combustion Turbine Proiect #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, 2022, there was no outstanding long-term debt related to this project.
Capital Facilities Proiect
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 $14.7 million at June 30, 2022.
Transmission Proiect
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, 2022 there was no outstanding long-
term debt related to this project.
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, 2022, approximately
$293.6 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, 2022, NCPA's total net outstanding long-term debt was $547,666,000 at an average interest rate of 5%.
The current portion of long-term debt at June 30, 2022, was $44,314,000.
Complete financial information for NCPA may be obtained at the following administration office:
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678-6411
87
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 12 — Participation in Joint Ventures (Continued)
A. Northern California Power Agency (Continued)
Condensed Statement of Net Position
Condensed Statement of Revenues, Expenses
June 30, 2022
and Changes in Net Position
(in thousands)
Year ended June 30, 2022
Assets and Deferred Outflows of Resources
(in thousands)
Current assets
$
177,909
Sales for resale
$
879,672
Restricted assets
140,337
Operating expenses
(842,096)
Electric plant, net
518,691
Other expenses
(35,049)
Other assets
197,060
Future recoverable costs
(12,122)
Total assets
1,033,997
Net revenues before refunds
(9,595)
Deferred outflows of resources
77,321
Refunds to participants
(1,336)
Total assets and deferred outflows of resources
$
1,111,318
Increase in net position
(10,931)
Liabilities, Deferred Inflows of Resources and Net Position
Net position, beginning of year
27,628
Long-term debt, net
$
503,352
Net position, end of year
$
16,697
Current liabilities
137,039
Non-current liabilities
340,297
Combined Statement of Cash Flows
Deferred inflows of resources
113,933
Year ended June 30, 2022
Net position
(in thousands)
Net investment in capital assets
(18,234)
Net cash from operating activities
$
36,358
Restricted
43,734
Net from investing activities
13,008
Unrestricted
(8,803)
Net cash from capital and related
Total liabilities, deferred inflows
financing activities
(87,002)
of resources and net position
$
1,111,318
Net cash from noncapital
and related financing activities
9,272
Increase in cash and cash equivalents
(28,364)
Cash and cash equivalents, beginning
ofyear
137,236
Cash and cash equivalents end of year
$
108,872
B. Transmission Agency of Northern California
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.
88
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 12 — Participation in Joint Ventures (Continued)
B. Transmission Agency of Northern California (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, 2022 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 13 — Membership in Insurance Pools
A. 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, 2022, premiums of $668,405 were paid to CJPRMA for the
liability program.
The participants at June 30, 2022, are as follows: Alameda, Chico, Fairfield, Fremont, Livermore, Lodi, Livermore
Pleasanton Fire Department, Northern California Cities Self Insurance Fund, Petaluma, Redding, Richmond, Roseville,
San Leandro, San Rafael, Santa Rosa, Small Cities Organized Risk Effort, Stockton, Sunnyvale, Vacaville, 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
89
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 13 — Membership in Insurance Pools (Continued)
B. 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
$663,761 in premiums to LAWCX during the year ended June 30, 2022.
The participants at June 30, 2022, 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 (FASIS), City of Gilroy, City of Livermore, City of Lodi, Town of Los Gatos, City of Merced, City of
Morgan Hill, City of Newark, City of Placentia, City of Pleasanton, 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, 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
C. 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.
90
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 13 — Membership in Insurance Pools (Continued)
C. California Transit Insurance Pool (Continued)
The City paid $101,590 in premiums to Cal TIP during the year ended June 30, 2022. 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 14 — Deficit in Net Position
A. Deficit in Net Position
The City has a deficit net position in its governmental activities in the amount of ($56,728,304) which is primarily
attributable to the net pension and OPEB obligations outstanding as of June 30, 2022.
A deficit in net position in the amount of ($667,858) in the ISF Fleet Services Fund at June 30, 2022, 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.
B. Expenditures in Excess Of Appropriations
Expenditures In Excess Of Appropriations For the year ended June 30, 2022, expenditures exceeded appropriations
in the following programs/functions/fund (legal level of budgetary control) of the respective funds:
The General Fund expenditures for the Financial Services division were higher than anticipated for this department
due to additional expenditures relating to salaries and benefits. Expenditures for debt service were higher than
anticipated due to expenditures relating to the implementation of GASB 87 leases. The General Fund, however, did
not have excess expenditures over appropriations at the fund level.
Funds
General Fund:
Financial Services
Debt service
Excess Expenditures
Appropriations Expenditures over Appropriations
1,129,110 $ 1,138,329 $ (9,219)
- 11,250 (11,250)
91
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 15 — Pollution Remediation Obligation
The City relies on groundwater for its drinking water and in the late 1980's, Perch loroethylene (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, 2022, is $15,039,357. This amount is an
estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable
laws or regulations.
Note 16—Commitments and Contingencies
A. 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 13) would not materially affect the
financial position of the City.
B. 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.
C. 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, 2022, for any of the City's outstanding Certificates of Participation and
Revenue Bonds.
92
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 16 —Commitments and Contingencies (Continued)
D. 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, 2022 are as follows:
Governmental Activities: Business -type Activities:
General Fund $ 650,154 Electric Fund $ 1,836,642
Other governmental funds 5,256,623 Wastewater Fund 1,197,646
Water Fund 804,104
Transit Fund 30,205
Total governmental activities $ 5,906,777 Total business -type activities $ 3,868,597
E. Power Supply Costs
On August 18, 2021, the Lodi City Council took action to approve the use of $2 million in General Operating Reserves
(GOR) to reduce the August 2021 and September 2021 Energy Cost Adjustment (ECA) charge applied to Lodi Electric
Utility (LEU) customer energy bills. The ECA, approved by the Lodi City Council in 2007, is a monthly charge or credit
applied to customer utility bills based on corresponding increases or decreases in power supply costs. The ECA is a
cost recovery mechanism which mitigates the need to consider more frequent changes to base electric rates.
Without the ECA, electric rates would need to be adjusted on a more frequent basis to ensure sufficient reserves are
available to address unforeseen cost increases. During the summer of 2021, LEU experienced an increase in market
power purchases due to worsening drought conditions and limited resources. Recognizing the impact of higher than
average ECA amounts on customers and their utility bills over summer months when usage is at its highest, the Lodi
City Council approved the use of Lodi's GOR funds held at Northern California Power Agency to reduce the August
2021 and September 2021 ECA. Lodi's GOR provides funding for, among other things, business related areas of risk
such as market power volatility and the cost of replacement power during dry year conditions for which costs
cannot reasonably be forecasted and budgeted. Sufficient funding was available in Lodi's GOR which had a balance
of $10,922,475 at June 30, 2022.
Note 17 — Reclassification of Fund Balance
Net Position
Net Position July 1, 2021
Reclassification Adjustment
July 1, 2021, as restated
Internal Service Fund
(28,926,492)
29,257,928
$ 331,436
Internal Services Fund - Benefits
OPEB Liability
The OPEB liability was recorded in the Benefits Internal Services Fund. It was also presented in the government
wide financial statement. The prior period restatement is to restate the Benefits Internal Services Fund and remove
the OPEB liability from this fund.
93
CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 18 — Subsequent Events
American Rescue Plan Act (ARPA)
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 was allocated $15.7 million
dollars, with the first portion of $7.8 million received in July 2021. The City received the second portion of funding in
July 2022. The City has worked on finalizing exactly how the complete funding package will be spent. The ARPA
money is being allocated to an Access center to address the homelessness, a citywide broadband project, small
business loans and providing utility relief, in addition to other projects.
Initially, Council approved a portion of the funding to be spent on, utility relief, vaccine incentives and community
grants to local businesses. Additional funding will be spent on the Access Center, Citywide Broadband project, Loel
Senior Center restroom and accessibility expansion project and the remaining funding will go towards revenue loss.
Labor Agreements
On June 30, 2022, the employment contract, Memorandum of Understanding (MOU), between the City of Lodi and
the Lodi Police Dispatch Association (LPDA) expired. The City is currently in negotiations with LPDA and has reached
a successor MOU. The following employment contracts expire December 31, 2022, and the City is currently in
negotiations with Lodi City Mid -Management, AFSCME, Lodi Professional Firefighters on a successor MOU. This will
have an impact on the next fiscal year's budgets for the increase in salary and benefit costs.
CAISO Unsecured Credit
The Northern California Power Agency (NCPA) transacts in the California Independent System Operator (CAISO)
markets and serves as the Scheduling Coordinator (SC) for Lodi Electric Utility. As such, Lodi through NCPA is
required to post sufficient credit with the CAISO to secure its Estimated Aggregate Liability (EAL) required under
CAISO's tariffs and protocols. As a member of NCPA (operating as a Joint Power Agency), Lodi is assigned $1 million
of CAISO unsecured credit by default, which contributes towards Lodi's EAL collateral requirements. However, due
to rising energy and transmission costs in Fiscal Year 2022, Lodi received notice from NCPA that Lodi was required to
further supplement its collateral deposit with the CAISO (based on Lodi's increased EAL requirements). Lodi's
options for satisfying the additional collateral requirements were 1) Lodi could submit a request to the CAISO for
additional CAISO unsecured credit, and upon CAISO granting such additional unsecured credit to Lodi, all or a portion
of that unsecured credit could then be assigned to NCPA, or 2) Lodi could provide cash or a letter or credit to be
posted with the CAISO on behalf of NCPA. On June 27, 2022, Lodi submitted an application for Unsecured Credit to
the CAISO requesting additional CAISO unsecured credit. On July 12, 2022, in response to Lodi's request the CAISO
assigned approximately $9 million of additional unsecured credit to Lodi.
Lodi in turn executed a Guaranty with the CAISO, for the benefit of NCPA, to assign $3 million of Lodi's unsecured
credit on July 18, 2022 to NCPA to satisfy Lodi's current EAL credit requirements.
94
ir
y
(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 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 Ill
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
2020-21
2019-20
2018-19
2017-18
$ 3,122,428
$ 3,061,982
$ 2,951,947
$ 3,020,122
14,741,817
14,272, 357
13,863, 223
13,374,883
-
-
-
47,853
699,175
(261,709)
621,792
830,292
-
-
(950,894)
(11,713,899)
(11,281,823)
(10,490,850)
(9,814,728)
6,849,521
5,790,807
6,946,112
6,507,528
209,775,815
203,985,008
197,038,896
190,531,368
216,625,336
209,775,815
203,985,008
197,038,896
7,699,946
5,480,277
5,002,406
4,208,873
2,129,311
1,743,741
1,372,046
1,364,684
33,076,897
7,191,594
9,071,083
11,191,848
(11,713,899)
(11,281,823)
(10,490,850)
(9,814,728)
(206,493)
(146,291)
(202,321)
(98,627)
(391,520)
31,045,964
2,931,468
4,856,058
6,352,664
146,446,488
143,515,020
138,658,962
132,306, 298
177,492,452
146,446, 488
143, 515, 020
138, 658, 962
$ 39,132,884
$ 63,329,327
$ 60,469,988
$ 58,379,934
81.94%
69.81%
70.36%
70.37%
$ 19,662,644
$ 19,355,131
$ 18,257,959
$ 18,995,671
199.02%
327.20%
331.20%
307.33%
Notes to Schedule:
I'l 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), CAPERS 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).
IZl Includes ny beginning of year adjustment.
(3) 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 presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.
97
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 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 lal
Plan Net Pension Liability as a Percentage of
Covered Payroll
2016-17
2015-16
2014-15
2013-14
$ 2,862,495
$ 2,464,894
$ 2,358,112
$ 2,478,901
12,923,048
12,565, 553
12,061, 399
11,705,179
(398,276)
542,177
(1,655,012)
10,541,016
-
(2,903,507)
(9,129,724)
(8,641,550)
(8,208,103)
(7,729,680)
16,798,559
6,931,074
1,652,889
6,454,400
173,732,809
166,801, 735
165,148,846
158,694,446
190,531,368
173,732,809
166,801, 735
165,148,846
3,950,727
3,500,179
2,994,958
2,694,850
1,341,146
1,241,136
1,183,452
1,237,916
13,581,013
643,509
2,829,910
19,249,151
(9,129,724)
(8,641,550)
(8,208,103)
(7,729,680)
(181,224)
(76,838)
(145,538)
9,561,938
(3,333,564)
(1,345,321)
15,452,237
122,744, 360
126,077,924
127,423, 245
111,971,008
132,306,298
122,744, 360
126,077,924
127,423, 245
$ 58,225,070
$ 50,988,449
$ 40,723,811
$ 37,725,601
69.44%
70.65%
75.59%
77.16%
$ 17,970,339 $ 17,423,446 $ 16,572,579 $ 16,669,363
324.01% 292.64% 245.73% 226.32%
Notes to Schedule:
I'l 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), CAPERS 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).
IZl 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 presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is
presented.
98
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
Differences Between Expected and Actual Experience
Changes of Assumptions
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)1�1
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
2020-21
2019-20
2018-19
2017-18
$ 3,530,630
$ 3,251,866
$ 3,005,853
$ 3,385,583
14,951,257
14, 313, 890
13,882,332
13, 288, 494
2,342,238
(329,854)
1,853,213
(122,816)
-
-
(681,450)
(11,326,169)
(10,940,141)
(10,350,986)
(9,712,985)
9,497,956
6,295,761
8,390,412
6,156,826
210,664,024
204,368,263
195,977,851
189,821,025
220,161,980
210,664,024
204,368,263
195,977,851
9,831,931
6,927,425
6,462,421
5,549,746
2,238,261
1,835,228
1,173, 690
1,079,094
29,108,868
6,175,068
7,740,905
9,544,033
(11,326,169)
(10,940,141)
(10,350,986)
(9,712,985)
(174,988)
(126,704)
(173,420)
(83,983)
(331,781)
29,726,187
3,824,160
4,942,047
5,953,119
126,838,141
123,013,981
118,071,934
112,118,815
156,564,328
126,838,141
123,013,981
118,071,934
$ 63,597,652
$ 83,825,883
$ 81,354,282
$ 77,905,917
71.11%
60.21%
60.19%
60.25%
$ 13,061,895
$ 11,816,374
$ 10,779,847
$ 11,518,923
486.89%
709.40%
754.69%
676.33%
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).
121 Includes any beginning of year adjustment.
131 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 lune 30, 2014-17.
Information in this schedule is presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.
99
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
Differences Between Expected and Actual Experience
Changes of Assumptions
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 (2)
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 (3)
Plan Net Pension Liability as a Percentage of
Covered Payroll
2016-17 2015-16 2014-15 2013-14
$ 3,336,917 $ 2,890,607 $ 2,968,819 $ 3,048,048
12, 869,943 12, 357,788 11,827,918 11, 390,793
1,123,761 600,847 (932,918) -
10,945,791 - (2,939,033)
(9,433,148) (8,730,081) (8,134,067) (7,448,361)
18,843,264 7,119,161 2,790,719 6,990,480
170, 977,761 163,858, 600 161,067,881 154,077,401
189, 821, 025 170, 977, 761 163, 858, 600 161, 067, 881
5,220,306 4,660,278 4,176,197 4,106,044
1,095,689 1,062, 984 1,007,876 1,058, 376
11,443,777 558,434 2,397,191 16,070,261
(9,433,148) (8,730,081) (8,134,067) (7,448,361)
(153,469) (64,882) (119,971)
8,173,155 (2,513,267) (672,774) 13,786,320
103,945, 660 106,458,927 107,131, 701 93, 345,381
112,118,815 103,945, 660 106,458,927 107,131, 701
$ 77,702,210 $ 67,032,101 $ 57,399,673 $ 53,936,180
59.07% 60.79% 64.97% 66.51%
$ 11,518,923 $ 11,106,615 $ 11,293,867 $ 11,194,123
674.56% 603.53% 508.24% 481.83%
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).
Ill 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 presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of
data is presented.
100
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS
Miscellaneous Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions 1zl
Contribution Deficiency (Excess)
Covered Payroll 13,41
Contributions as a Percentage of Covered Payroll
Safety Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions I21
Contribution Deficiency (Excess)
Covered Payroll 13,41
Contributions as a Percentage of Covered Payroll
2021-22 Ill
2020-21111
2019-201�1
For details, see June 30, 2018 Funding Valuation Report.
2018-1911)
$ 5,736,690
$ 5,323,688
$ 4,879,985
$
4,907,206
(7,699,946)
(9,611,114)
(5,496,434)
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
(5,002,406)
$ (1,963,256)
$ (4,287,426)
$ (616,449)
$
(95,200)
$ 19,662,644
$ 19,355,131
$ 18,257,959
$
18,995,671
39.16%
49.66%
30.10%
25.83%
$ 7,189,903
$ 6,739,342
$ 6,311,400
$
6,195,073
(9,831,931)
(7,955,910)
(6,847,548)
(6,462,421)
$ (2,642,028)
$ (1,216,568)
$ (536,148)
$
(267,348)
$ 13,061,895
$ 11,816,374
$ 10,779,847
$
11,886,327
75.27%
67.33%
63.52%
52.12%
Notes to Schedule:
111 Historical information is presented only for measurement periods for which GASB 68 is implemented
121 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.
131 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.
141 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, 2018 Funding Valuation Report.
Asset Valuation Method
Market value of assets.
Inflation
2.5%
Salary Increases
Varies by Entry Age and Service
Payroll Growth
2.75%
Investment Rate of Return
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age
The probabilities of Retirement are based on the 2017 CAPERS Experience Study for the period from 1997 to 2015.
Mortality
The probabilities of mortality are based on the 2017 CAPERS 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 90% of
Scale MP -2016 published by the Society of Actuaries.
Other information: For changes in previous years' information, refer to past GASB 68 reports.
101
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS (Continued)
Miscellaneous Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll 13'4I
Contributions as a Percentage of Covered Payroll
Safety Plan:
Actuarially Determined Contributions
Contributions in Relation to the Actuarially Determined Contributions al
Contribution Deficiency (Excess)
Covered Payroll 13'4)
Contributions as a Percentage of Covered Payroll
2017-18I'I
2016-17")
2015-16 Ill
2014-15
2013-14")
2013-14")
$ 4,208,873
$ 3,880,495
$ 3,500,179
$
2,994,958
$
2,694,850
(4,208,873)
(3,880,495)
(3,500,179)
(2,994,958)
(2,694,850)
$ 17,970,339
$ 17,802,886
$ 17,423,446
$
16,572,579
$
16,669,363
23.42%
21.80%
20.09%
18.07%
16.17%
$ 5,549,746
$ 5,136,610
$ 4,660,278
$
4,176,197
$
4,106,044
(5,549,746)
(5,136,610)
(4,660,278)
(4,176,197)
(4,106,044)
$ -
$ -
$ -
$
-
$
-
$ 11,518,923
$ 11,477,432
$ 11,106,615
$
11,293,867
$
11,194,123
48.18%
44.75%
41.96%
36.98%
36.68%
Notes to Schedule:
(') Historical information is presented only for measurement periods for which GASB 68 is implemented
121 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.
iii 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, 2018 Funding Valuation Report.
Asset Valuation Method Market value of assets.
Inflation 2.5%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age The probabilities of Retirement are based on the 2017 CAPERS Experience Study for the period from 1997 to 2015.
Mortality The probabilities of mortality are based on the 2017 CAPERS 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 90% of Scale MP -2016 published by the Society of Actuaries.
Other information: For changes in previous years' information, refer to past GASB 68 reports.
102
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, 2022
Measurement period, year ending:
Total OPEB liability
Service cost
Interest
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
6/30/2021 Ill
6/30/2020 Ill
6/30/2019 Ill
6/30/2018 Ill
6/30/2017 ill
$ 745,536
$ 757,587
$ 1,092,362
$ 1,042,935
$ 1,139,099
932,315
875,524
1,269,594
1,240,787
1,073,783
(2,659,765)
(28,866)
(5,914,145)
-
-
614,806
(958,836)
(1,584,690)
(209,408)
(2,518,711)
(1,836,904)
(1,772,822)
(1,940,352)
(1,862,969)
(1,947,260)
(2,204,012)
(1,127,413)
(7,077,231)
211,345
(2,253,089)
$ 1,836,904 $ 2,470,847 $ 1,940,352 $ 1,862,969 $ 2,947,260
393,880 81,556 80,425 66,683 79,789
(1,836,904) (1,772,822) (1,940,352) (1,862,969) (1,947,260)
2,003,111 1,224,345 1,144,166 1,079,480
9.92% 7.60% 4.45% 3.31% 3.14%
$ 36,431,628 $ 34,262,678 $ 32,883,009 $ 33,204,023 $ 35,314,645
59.73% 71.09% 79.87% 100.66% 94.23%
Notes to Schedule:
(1) Information in this schedule is presented only for periods after GASB 75 implementation. Additional years will be added to this schedule until 10 years of data is
presented
103
Contributions in Relation to the
Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered -employee payroll
Contributions as a percentage of
covered -employee payroll
Actuarially determined contribution
for fiscal year
Valuation date:
Actuarial cost method
Asset valuation method
Discount rate
Inflation
Payroll increases
Mortality
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2022
2022 2021
(1,826,983) (1,885,306)
$ (1,826,983) $ (1,885,306)
36,431,628 34,262,678
June 30, 2022
June 30, 2021
Entry Age Normal Cost Method
Straight line 5 year period
3.22%
2.25%
Pub -2010 General and Safety above
median income Employee and Retiree
mortality tables projected with
generational mortality
improvement using 80% of scale MP -2020.
Notes to Schedule:
'1) Information in this schedule is presented only for period after GASB 75 implementation.
Additional years will be added to this schedule until 10 years of data is presented
The City does not currently calculate an ADC.
104
59.7%
June 30, 2021
June 30, 2019
Entry Age Normal Cost Method
Straight line 5 year period
3.56%
2.50%
Based on assumptions for PERS,
Police & Fire members
June 30, 2016 CalPERS actuarial
valuation
79.9%
CITY OF LODI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2022 (Continued)
2020 2019 2018 2017
(2,046,385)
(1,940,352)
(1,862,949)
(2,947,260)
$ (2,046,385) $
(1,940,352) $
(1,862,949) $
(2,947,260)
32,883,009
33,204,023
34,286,063
34,286,063
79.9%
June 30, 2020
June 30, 2019
Entry Age Normal Cost Method
Straight line 5 year period
3.56%
2.50%
Based on assumptions for PERS,
Police & Fire members
June 30, 2016 CalPERS actuarial
valuation
100.7%
June 30, 2019
June 30, 2017
Entry Age Normal Cost Method
Straight line 5 year period
3.66%
2.75%
Based on assumptions for PERS,
Police & Fire members
June 30, 2016 CalPERS actuarial
valuation
June 30, 2018
June 30, 2017
Entry Age Normal Cost Method
Straight line 5 year period
3.60%
2.75%
Based on assumptions for PERS,
Police & Fire members
June 30, 2016 CalPERS actuarial
valuation
97.1%
June 30, 2017
June 30, 2017
Entry Age Normal Cost Method
Straight line 5 year period
3.60%
2.75%
Based on assumptions for PERS,
Police & Fire members
June 30, 2016 CalPERS actuarial
valuation
Notes to Schedule:
'1) Information in this schedule is presented only for period after GASB 75 implementation.
Additional years will be added to this schedule until 10 years of data is presented
The City does not currently calculate an ADC.
105
97.1%
CITY OF LODI
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual
For the Year Ended June 30, 2022
EXPENDITURES
Budgeted Amounts
Variance with
Current:
Original
Final
Actual
Final Budget
REVENUES
1,338,780
1,808,780
1,277,837
530,943
Taxes
$ 32,652,850 $
32,652,850 $
34,483,025
$ 1,830,175
Sales and use tax
21,775,960
24,305,720
26,247,772
1,942,052
Licenses and permits
63,500
60,500
62,077
1,577
Intergovernmental revenues
1,326,050
18,290,123
9,172,086
(9,118,037)
Charges for services
1,915,860
1,948,860
2,369,097
420,237
Fines, forfeits, and penalties
868,100
843,100
303,921
(539,179)
Investment and rental income
1,785,050
1,785,050
(303,334)
(2,088,384)
Miscellaneous revenue
287,260
287,260
320,093
32,833
Total revenues
60,674,630
80,173,463
72,654,737
(7,518,726)
EXPENDITURES
Current:
City Manager
1,338,780
1,808,780
1,277,837
530,943
City Clerk
704,500
704,500
667,702
36,798
City Attorney
706,690
706,690
591,419
115,271
Internal Services Admin
253,220
255,720
253,360
2,360
Human Resources
748,410
748,410
704,692
43,718
Information Systems
1,816,720
1,933,222
1,680,672
252,550
Financial Services
1,129,110
1,129,110
1,138,329
(9,219)
Revenue Services
1,426,800
2,926,100
1,359,322
1,566,778
Budget and Treasury
425,080
425,080
406,556
18,524
Non Departmental
3,702,250
12,849,449
5,117,408
7,732,041
Total general government
12,251,560
23,487,061
13,197,297
10,289,764
Public protection:
Police
27,157,950
28,058,038
25,409,787
2,648,251
Fire
16,392,350
16,810,274
15,644,344
1,165,930
Total public protection
43,550,300
44,868,312
41,054,131
3,814,181
Public works
3,175,320
3,204,200
3,034,047
170,153
Library
1,613,230
1,618,230
1,214,407
403,823
Community Development
-
539,741
393,290
146,451
Debt service
Interest
-
-
76
(76)
Principal retirement
-
-
11,174
(11,174)
Total debt service
-
-
11,250
(11,250)
Total expenditures
60,590,410
73,717,544
58,904,422
14,813,122
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
84,220
6,455,919
13,750,315
7,294,396
OTHER FINANCING SOURCES (USES)
Transfers in
3,494,790
3,494,790
3,494,790
-
Transfers out
(19,004,760)
(19,004,760)
(19,004,760)
Lease liability issued
-
-
33,607
Gain on sale of property
1,000
1,000
-
(1,000)
Total other financing sources (uses)
(15,508,970)
(15,508,970)
(15,476,363)
(1,000)
Net changes in fund balance
(15,424,750)
(9,053,051)
(1,726,048) $
7,293,396
FUND BALANCES, BEGINNING OF YEAR
40,690,098
40,690,098
40,690,098
FUND BALANCES, END OF YEAR $
25,265,348 $
31,637,047
38,964,050
Basis adjustment:
Cummulative pension set aside
(15,198,535)
Fund balance (budgetary basis)
$
23,765,515
See accompanying notes to the required supplementary information. 106
CITY OF LODI
Streets
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2022
REVENUES
Intergovernmental revenues
Charges for services
Investment income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Proceeds from sale of property
Total other financing sources (uses)
Net change in fund balance
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
Basis adjustment:
Cummulative pension set aside
Fund balance (budgetary basis)
Original
Amounts
Final
Actual
Variance with
Final Budget
$ 5,586,680 $
6,999,140 $
6,417,449 $
(581,691)
1,168,610
1,168,610
1,463,094
294,484
146,660
146,660
(450,865)
(597,525)
35,000
35,000
139,016
104,016
6,936,950
8,349,410
7,568,694
(780,716)
2,893,770
3,011,355
2,901,344
110,011
2,895,000
6,138,718
1,994,329
4,144,389
5,788,770
9,150,073
4,895,673
4,254,400
1,148,180
(800,663)
2,673,021
3,473,684
258,620
520,620
541,330
20,710
-
-
1,461
1,461
258,620
520,620
542,791
22,171
1,406,800
(280,043)
3,215,812 $
3,495,855
14,133,853
14,133,853
14,133,853
$ 15,540,653 $
13,853,810
17,349,665
See accompanying notes to the required supplementary information.
107
(294,423)
$ 17,055,242
CITY OF LODI
Notes to the Required Supplementary Information
June 30, 2022
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.
Pension Set Aside
The City has invested in the Public Agency Retirement Services (PARS) for the PARS Public Agency Post -Employment Benefit
Trust. The trust is to be used only for the payment of such post -employment benefits for retirees. This amount is restricted
in the applicable funds for this purpose.
108
too
Aiw
too
(This page intentionally left blank.)
IM
111111te]
0
Nonmajor Governmental Funds include:
r eSpecial Revenue Funds account for the proceeds
of specific revenue sources that are restricted or
' I 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.
111
(This page intentionally left blank.)
"m
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable, net
Interest receivables
Lease receivables
Prepaid
Due to other funds
Home loan receivable
Due from other governmental agencies
Inventory
Total assets
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Due to other funds
Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Leases
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Inventory
Prepaid
Restricted
Road -related projects
Public safety
Home and CDBG program
Community development
Capital projects
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, 2022
Special revenue funds Capital projects funds
$ 7,641,172 $
22,848,519
855,032
15,013,351
123,366
400
7,129
14,051
47,344
-
2,015
855,032
1,978,118
343,124
35,572
2,198,981
4,500
-
$ 12,893,229 $
37,876,321
$ 564,185 $
492,270
63,639
-
1,978,118
43,520
2,649,462
492,270
35,572
43,525
79,097
1,170
1,170
Total Other
Debt service funds Governmental Funds
$ $ 30,489,691
15,868,383
123,766
21,180
47,344
2,015
1,978,118
35,572
2,198,981
4,500
$ $ 50,769,550
$ $ 1,056,455
63,639
1,978,118
43,520
3,141,732
36,742
43,525
80,267
4,500 4,500
2,015 2,015
111,620
111,620
336,052
336,052
10,338
10,338
8,092,813 -
8,092,813
- 27,139,208
27,139,208
855,032 -
855,032
343,124
343,124
409,176 409,176
- 10,243,673 10,243,673
10,164,670 37,382,881 47,547,551
$ 12,893,229 $ 37,876,321 $ $ 50,769,550
113
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, 2022
REVENUES
Licenses and permits
Developer impact fees
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
Bond procceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Total Other
Special revenue funds Capital projects funds Debt service funds Governmental Funds
$ 2,487,420 $
- $
$
2,487,420
-
2,592,177
2,592,177
4,850,500
-
4,850,500
3,379,467
3,379,467
239,460
(609,275)
(369,815)
72,707
41,499
114,206
11,029,554
2,024,401
13,053,955
2,747,303
545,613
3,292,916
110,540
-
110,540
896,301
896,301
2,306,181
2,306,181
3,144,921
-
3,144,921
3,850,127
1,998,785
-
5,848,912
2,867
252
661,984
665,103
83,673
13,301, 750
1,020,000
14,405,423
13,141,913
15,846,400
1,681,984
30,670,297
(2,112,359)
(13,821,999)
(1,681,984)
(17,616,342)
6,810,195
12,682,440
1,679,745
21,172,380
(2,749,900)
-
-
(2,749,900)
-
28,884,344
28,884,344
4,060,295
41,566,784
1,679,745
47,306,824
1,947,936
27,744,785
(2,239)
29,690,482
8,216,734
9,638,096
2,239
17,857,069
$ 10,164,670 $
37,382,881 $
- $
47,547,551
114
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, 2022
116
Parks, Recreation &
Community
Community Services
Public Safety
Development
ASSETS
Cash and investments
$ 731,374
$
335,739
$
6,194,500
Restricted cash and investments
541,977
-
313,055
Accounts receivables, net
43,421
-
Due from other funds
-
1,978,118
Prepaid
2,015
-
-
Interest receivables
1,284
513
5,091
Lease receivable
47,344
-
-
Home loan receivable
-
Due from other governmental agencies
-
Inventory
4,500
-
-
Total assets
$ 1,371,915
$
336,252
$
8,490,764
LIABILITIES
Accounts payable and other liabilities
$ 278,973
$
-
$
69,686
Accrued salaries and wages
48,229
200
15,210
Due to other funds
-
-
-
Unearned revenue
43,520
-
Total liabilities
370,722
200
84,896
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
-
Leases
43,525
Total deferred inflow of resources
43,525
-
-
Total liabilities and deferred inflows of
resources
414,247
200
84,896
FUND BALANCES
Nonspendable
Inventory
4,500
Prepaid
2,015
Restricted
Road -related projects
-
-
Public safety
336,052
Home and CDBG program
-
-
Community development
-
8,092,813
Pension
541,977
313,055
Special assessments
-
-
Committed
Parks, recreation and community services
409,176
-
-
Total fund balances
957,668
336,052
8,405,868
Total liabilities, deferred inflows of resources and
fund balances
$ 1,371,915
$
336,252
$
8,490,764
116
CITY OF LODI
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2022
117
HOME Program and
Community
Development Block
Total Nonmajor
Transportation
Special Assessments
Grants
Special Revenue Funds
ASSETS
Cash and investments
$
36,619
$
342,940
$
$
7,641,172
Restricted cash and investments
-
-
855,032
Accounts receivables, net
79,945
123,366
Due from other funds
-
1,978,118
Prepaid
-
2,015
Interest receivables
184
57
7,129
Lease receivable
-
-
47,344
Home loan receivable
35,572
35,572
Due from other governmental agencies
2,198,981
2,198,981
Inventory
-
-
-
4,500
Total assets
$
116,564
$
343,124
$ 2,234,610
$
12,893,229
LIABILITIES
Accounts payable and other liabilities
$
4,944
$
-
$ 210,582
$
564,185
Accrued salaries and wages
-
-
63,639
Due to other funds
1,978,118
1,978,118
Unearned revenue
-
-
43,520
Total liabilities
4,944
2,188,700
2,649,462
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
35,572
35,572
-
43,525
Total deferred inflow of resources
35,572
79,097
Total liabilities and deferred inflows of resources
4,944
2,224,272
2,728,559
FUND BALANCES
Nonspendable
Inventory
4,500
Prepaid
-
2,015
Restricted
Road -related projects
111,620
111,620
Public safety
-
-
336,052
Home and CDBG program
10,338
10,338
Community development
-
8,092,813
Pension
-
855,032
Special assessments
343,124
343,124
Committed
Parks, recreation and community services
-
-
-
409,176
Total fund balances
111,620
343,124
10,338
10,164,670
Total liabilities, deferred inflows of resources and
fund balances
$
116,564
$
343,124
$ 2,234,610
$
12,893,229
117
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
EXPENDITURES
Current:
General government
Parks, Recreation &
50,690
Community
Public protection
Community Services
Public Safety
Development
REVENUES
-
-
Licenses and permits
$ -
$ -
$ 2,487,420
Intergovernmental revenues
122,019
782,181
83,101
Charges for services
1,661,040
-
1,687,629
Investment and rental income
425,581
(16,082)
(238,670)
Miscellaneous revenue
39,782
-
32,925
Total revenues
2,248,422
766,099
4,052,405
EXPENDITURES
Current:
General government
2,651,019
50,690
Public protection
-
110,540
Public works
-
-
Community development
-
2,306,181
Parks and recreation
3,144,921
-
Capital outlay
1,431,613
-
Debt service:
Principal retirement
-
83,673
Interest
-
2,867
-
Total expenditures
7,227,553
247,770
2,306,181
Excess (deficiency) of revenues over
expenditures
(4,979,131)
518,329
1,746,224
OTHER FINANCING SOURCES (USES)
Transfers in
6,810,195
-
-
Transfers out
(2,336,190)
(347,440)
(66,270)
Total other financing sources (uses)
4,474,005
(347,440)
(66,270)
Net change in fund balances
(505,126)
170,889
1,679,954
Fund balances - beginning
1,462,794
165,163
6,725,914
Fund balances - ending $
957,668 $
336,052 $
8,405,868
118
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
119
HOME Program and
Community
Development Block
Total Nonmajor
Transportation
Special Assessments
Grants
Special Revenue Funds
REVENUES
Licenses and permits
$ -
$ -
$ -
$ 2,487,420
Intergovernmental revenues
79,945
33,785
3,749,469
4,850,500
Charges for services
-
-
30,798
3,379,467
Investment and rental income
(508)
(7,975)
77,114
239,460
Miscellaneous revenue
-
-
-
72,707
Total revenues
79,437
25,810
3,857,381
11,029,554
EXPENDITURES
Current:
General government
-
45,594
-
2,747,303
Public protection
-
-
110,540
Public works
896,301
896,301
Community development
-
2,306,181
Parks and recreation
-
-
3,144,921
Capital outlay
53,048
2,365,466
3,850,127
Debt service:
Principal retirement
-
-
83,673
Interest
-
-
-
2,867
Total expenditures
53,048
45,594
3,261,767
13,141,913
Excess (deficiency) of revenues over
expenditures
26,389
(19,784)
595,614
(2,112,359)
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
6,810,195
Transfers out
(2,749,900)
Total other financing sources (uses)
-
-
4,060,295
Net change in fund balances
26,389
(19,784)
595,614
1,947,936
Fund balances - beginning
85,231
362,908
(585,276)
8,216,734
Fund balances - ending
$ 111,620
$ 343,124
$ 10,338
$ 10,164,670
119
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, 2022
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
Fund balance (budgetary basis)
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
1,906,090 $
1,913,590 $
1,661,040 $
(252,550)
1,952,020
1,952,020
122,019
(1,830,001)
288,960
288,960
425,581
136,621
27,500
36,300
39,782
3,482
4,174,570
4,190,870
2,248,422
(1,942,448)
3,010,080
3,010,080
2,651,019
359,061
3,150,660
3,354,521
3,144,921
209,600
212,440
2,049,258
1,431,613
617,645
6,373,180
8,413,859
7,227,553
1,186,306
(2,198,610)
(4,222,989)
(4,979,131)
(756,142)
4,228,830
6,810,195
6,810,195
(2,336,190)
(2,336,190)
(2,336,190)
1,892,640
4,474,005
4,474,005
(305,970)
251,016
(505,126) $
(756,142)
1,462, 794
1,462,794
1,462,794
$ 1,156,824 $
1,713,810
957,668
120
(541,977)
$ 415,691
CITY OF LODI
Public Safety
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2022
REVENUES
Intergovernmental revenues
Investment income
Total revenues
EXPENDITURES
Current:
General government
Public protection
Debt service:
Principal retirement
Interest expense
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING (USES)
Transfers out
Total other financing (uses)
Budgeted Amounts
(172,380)
(584,276)
Variance with
Original
Final
Actual
Final Budget
FUND BALANCES, END OF YEAR
$ (7,217) $
(419,113) $
$ 425,320 $
652,840 $
782,181
$ 129,341
4,690
4,690
(16,082)
(20,772)
430,010
657,530
766,099
108,569
24,000
54,337
50,690
3,647
401,320
662,959
110,540
552,419
173,080
173,080
83,673
89,407
3,990
3,990
2,867
1,123
602,390
894,366
247,770
646,596
(172,380)
(236,836)
518,329
(538,027)
(347,440) (347,440)
(347,440) (347,440)
Net change in fund balances
(172,380)
(584,276)
170,889 $ (538,027)
FUND BALANCES, BEGINNING OF YEAR
165,163
165,163
165,163
FUND BALANCES, END OF YEAR
$ (7,217) $
(419,113) $
336,052
121
CITY OF LODI
Community Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2022
122
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Licenses and permits
$ 1,599,300 $
1,599,300 $
2,487,420
$ 888,120
Intergovernmental revenues
239,180
239,180
83,101
(156,079)
Charges for services
959,500
959,500
1,687,629
728,129
Investment income
61,830
61,830
(238,670)
(300,500)
Miscellaneous revenue
-
-
32,925
32,925
Total revenues
2,859,810
2,859,810
4,052,405
1,192,595
EXPENDITURES
Current:
Community development
2,692,770
2,745,270
2,306,181
439,089
Total expenditures
2,692,770
2,745,270
2,306,181
439,089
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
167,040
114,540
1,746,224
1,631,684
OTHER FINANCING SOURCES (USES)
Transfers out
(90,170)
(90,170)
(66,270)
23,900
Total other financing sources (uses)
(90,170)
(90,170)
(66,270)
23,900
Net change in fund balances
76,870
24,370
1,679,954
$ 1,655,584
FUND BALANCES, BEGINNING OF YEAR
6,725,914
6,725,914
6,725,914
FUND BALANCES, END OF YEAR
$ 6,802,784 $
6,750,284
8,405,868
Basis adjustment:
Cummulative pension set aside
(313,055)
Fund balance (budgetary basis)
$
8,092,813
122
CITY OF LODI
Transportation
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2022
123
Budgeted Amounts
Variance with
Original Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 68,140 $
68,140 $
79,945
$ 11,805
Investment income
480
480
(508)
(988)
Total revenues
68,620
68,620
79,437
10,817
EXPENDITURES
Capital outlay
30,000
75,207
53,048
22,159
Total expenditures
30,000
75,207
53,048
22,159
Net change in fund balances
38,620
(6,587)
26,389
$ 32,976
FUND BALANCES, BEGINNING OF YEAR
85,231
85,231
85,231
FUND BALANCES, END OF YEAR
$ 123,851 $
78,644 $
111,620
123
CITY OF LODI
Special Assessments
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
For the Year Ended June 30, 2022
`11M
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 33,830 $
33,830 $
33,785
$ (45)
Investment income
4,020
4,020
(7,975)
(11,995)
Total revenues
37,850
37,850
25,810
(12,040)
EXPENDITURES
General government
76,000
76,000
45,594
30,406
Total expenditures
76,000
76,000
45,594
30,406
Net change in fund balances
(38,150)
(38,150)
(19,784)
$ 18,366
FUND BALANCES, BEGINNING OF YEAR
362,908
362,908
362,908
FUND BALANCES, END OF YEAR
$ 324,758 $
324,758 $
343,124
`11M
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, 2022
125
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
REVENUES
Intergovernmental revenues
$ 1,842,720 $
5,997,850 $
3,749,469
$ (2,248,381)
Charges for services
-
-
30,798
30,798
Investment income
12,420
12,420
77,114
64,694
Total revenues
1,855,140
6,010,270
3,857,381
(2,152,889)
EXPENDITURES
Public works
1,442,070
2,176,100
896,301
1,279,799
Capital outlay
-
5,256,325
2,365,466
2,890,859
Total expenditures
1,442,070
7,432,425
3,261,767
4,170,658
Net change in fund balances
413,070
(1,422,155)
595,614
$ (6,323,547)
FUND BALANCES, BEGINNING OF YEAR
(585,276)
(585,276)
(585,276)
FUND BALANCES, END OF YEAR
$ (172,206) $
(2,007,431) $
10,338
125
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126
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 School
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, impact fees, and 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.
127
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128
CITY OF LODI
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2022
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivables, net
Interest receivables
Totalassets
LIABILITIES
Accounts payable and other liabilities
Total liabilities
DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Assigned
Capital projects
Restricted
Capital projects
Total fund balances
Library Hutchins Street Square
$ 101,382 $ 1,185
61 1
$ 101,443 $ 1,186
101,443
101,443
1,186
186
Total liabilities, deferred inflows of
resources and fund balances $ 101,443 $ 1,186
129
CITY OF LODI
Combining Balance Sheet (Continued)
Nonmajor Capital Projects Funds
June 30, 2022
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivables, net
Interest receivables
Total assets
LIABILITIES
Accounts payable and other liabilities
Total liabilities
DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Assigned
Capital projects
Restricted
Capital projects
Total fund balances
Total liabilities, deferred inflows of resources and
fund balances
Total Nonmajor Capital
Capital Outlay Reserve Parks Capital Projects Funds
$ 14,275,134 $ 8,470,818 $ 22,848,519
15,013,351 - 15,013,351
- 400 400
8,693 5,296 14,051
$ 29,297,178 $ 8,476,514 $ 37,876,321
$ 63,797 $ 428,473 492,270
63,797 428,473 492,270
1,170
1,170
70
70
2,094,173 8,046,871 10,243,673
27,139,208 - 27,139,208
29,233,381 8,046,871 37,382,881
$ 29,297,178 $ 8,476,514 $ 37,876,321
130
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Year Ended June 30, 2022
REVENUES
Developer impact fees
Investment income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current:
General government
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES
Transfers in
Bond proceeds
Total other financing sources
Change in fund balances
Fund balances - beginning
Fund balances - ending
Library Hutchins Street Square
36 (27)
36 (27)
36 (27)
21,000 -
21,000 -
21,036 (27)
80,407 1,213
$ 101,443 $ 1,186
131
CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Capital Projects Funds
For the Year Ended June 30, 2022
132
Total Nonmajor Capital
Capital Outlay Reserve
Parks Capital
Projects Funds
REVENUES
Developer impact fees
$ 2,592,177
$
$ 2,592,177
Investment income
(351,302)
(257,982)
(609,275)
Miscellaneous revenue
-
41,499
41,499
Total revenues
2,240,875
(216,483)
2,024,401
EXPENDITURES
Current:
General government
545,613
-
545,613
Capital outlay
734,762
1,264,023
1,998,785
Debt service:
Principal
13,301,750
-
13,301,750
Interest
252
252
Total expenditures
14,582,377
1,264,023
15,846,400
Excess (deficiency) of revenues
over expenditures
(12,341,502)
(1,480,506)
(13,821,999)
OTHER FINANCING SOURCES
Transfers in
3,701,440
8,960,000
12,682,440
Bond proceeds
28,884,344
-
28,884,344
Total other financing sources
32,585,784
8,960,000
41,566,784
Change in fund balances
20,244,282
7,479,494
27,744,785
Fund balances - beginning
8,989,099
567,377
9,638,096
Fund balances - ending
$ 29,233,381
$ 8,046,871
$ 37,382,881
132
I
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.
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/Accidentallnsurance
• Unemployment Insurance
• Medical
• Flexible Spending Program
• Vision
"- • Long Term Disability
Insurance is used to account for the following insurances:
• General Liability
• Worker's Compensation
• Otherinsurance
4• '
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.
133
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134
CITY OF LODI
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
135
Vehicle and
Total Internal Service
Fleet Services
Benefits
Insurance
Equipment
Funds
ASSETS
Current assets:
Cash and investments
$ 591,855
$ 2,236,460
$ 17,735,943
$ 3,050,887
$ 23,615,145
Restricted cash and investments
142,544
-
41,826
-
184,370
Receivables: Accounts, net
107
91,419
222,917
-
314,443
Receivables: Interest
-
1,452
11,306
1,242
14,000
Inventory
251,512
-
-
-
251,512
Prepaid
-
106,780
547
107,327
Capital assets, net
17,367
17,367
Total assets
1,003,385
2,436,111
18,012,539
3,052,129
24,504,164
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
114,843
-
-
-
114,843
Related to OPEB
13,493
13,493
Total deferred outflows of resources
128,336
128,336
LIABILITIES
Current liabilities:
Accounts payable and other liabilities
133,974
91,139
2,206
95,235
322,554
Accrued salaries and wages
8,756
-
-
-
8,756
Accrued compensated absences
43,884
-
43,884
Self insurance liability
3,337,660
3,337,660
Noncurrent liabilities:
Self insurance liability
-
7,532,536
7,532,536
Accrued compensated absences
284,795
-
284,795
Net OPEB Liability
177,111
177,111
Net pension liability
761,904
761,904
Total liabilities
1,410,424
91,139
10,872,402
95,235
12,469,200
DEFERRED INFLOWS OF RESOURCES
Related to pensions
323,187
-
-
-
323,187
Related to OPEB
65,968
65,968
Total deferred inflows of resources
389,155
389,155
NET POSITION
Investment in capital assets
17,367
-
-
-
17,367
Unrestricted (deficit)
(685,225)
2,344,972
7,140,137
2,956,894
11,756,778
Total net position (deficit)
$ (667,858)
$ 2,344,972
$ 7,140,137
$ 2,956,894
$ 11,774,145
135
CITY OF LODI
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2022
136
Vehicle and
Total Internal Service
Fleet Services
Benefits
Insurance
Equipment
Funds
OPERATING REVENUES
Charges for services
$ 2,120,031
$ 9,161,712
$ 6,079,621
$ 4,109,223
$ 21,470,587
Total operating revenues
2,120,031
9,161,712
6,079,621
4,109,223
21,470,587
OPERATING EXPENSES
Personnel services
476,011
1,283,232
383,689
-
2,142,932
Supplies, materials and services
1,231,159
4,505,847
2,727,256
3,397,397
11,861,659
Utilities
13,012
-
-
-
13,012
Depreciation
1,447
-
-
1,447
Claims/premiums
50,590
1,303,383
3,203,339
-
4,557,312
Total operating expenses
1,772,219
7,092,462
6,314,284
3,397,397
18,576,362
Operating income (loss)
347,812
2,069,250
(234,663)
711,826
2,894,225
NONOPERATING REVENUES (EXPENSES)
Investment income
(19,452)
(55,714)
(423,335)
(73,093)
(571,594)
Other revenues/(expenses)
-
-
-
Gain on sale of City property
227
13,877
14,104
Total nonoperating revenues (expenses)
(19,225)
(55,714)
(423,335)
(59,216)
(557,490)
Change in net position
328,587
2,013,536
(657,998)
652,610
2,336,735
Total net position - beginning, as restated
(996,445)
331,436
7,798,135
2,304,284
9,437,410
Total net position - ending
$ (667,858)
$ 2,344,972
$ 7,140,137
$ 2,956,894
$ 11,774,145
136
CITY OF LODI
Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
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 CAPITAL RELATED FINANCING ACTIVITIES
Sale of property
Net cash provided (used) by noncapital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash (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
Accrued salaries and wages
Net pension liability, OPEB liability and related amounts
Compensated absences
Self-insurance liability
Deferred inflows of resources
Deferred outflows of resources
Net cash provided (used) by operating activities
137
Fleet Services Benefits
$ 100 $ (31,093)
2,120,031 9,161,712
(1,342,620) (7,941,043)
(939,199) (700,512)
(161,688) 489,064
227
227
(19,453) (56,602)
(19,453) (56,602)
(180,914) 432,462
915,313 1,803,998
$ 734,399 $ 2,236,460
347,812 2,069,250
1,447
100
(31,093)
(48,169)
-
-
10,818
1,238
3,069
2,584
-
(970,035)
(1,562,980)
(3,459)
326,604
180,190
-
$ (161,688) $
489,064
CITY OF LODI
Statement of Cash Flows
Internal Service Funds (Continued)
For the Year Ended June 30, 2022
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 NONCAPITAL FINANCING ACTIVITIES
Sale of property
Net cash provided (used) by noncapital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Net cash (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
Accrued salaries and wages
Net pension liability, OPEB liability and related amounts
Compensated absences
Self-insurance liability
Deferred inflows of resources
Deferred outflows of resources
Net cash provided (used) by operating activities
Insurance
$ 461,038
5,561,633
(4,560,294)
(383,689)
1,078,688
Vehicle and Equipment
$ 68,013
4,041,210
(3,400,398)
708,825
Total
$ 498,058
20,884,586
(17,244,355)
(2,023,400)
2,114,889
13,877 14,104
13,877 14,104
(429,269) (73,579) (578,903)
(429,269) (73,579) (578,903)
649,419 649,123 1,550,090
17,128,350 2,401,764 22,249,425
$ 17,777,769 $ 3,050,887 $ 23,799,515
(234,663) 711,826 $ 2,894,225
1,447
(56,950)
(87,943)
-
(48,169)
(547)
10,271
(16,812)
(3,001) (15,506)
2,584
(2,533,015)
-
(3,459)
1,387,660
1,387,660
-
326,604
-
180,190
$ 1,078,688 $
708,825 $ 2,114,889
138
I
I
Private -Purpose Trust Funds account for trust
agreements under which the principal and
income benefit individuals, private organizations
or other governments.
139
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140
ASSETS
Cash and investments
Interest receivable
Total assets
Restricted: for organizations
CITY OF LODI
Combining Statement of Fiduciary Net Position
Private -Purpose Trust Funds
June 30, 2022
Hutchins St Sq/Holz Total Private -Purpose
Library Bequest
148,925 $ 1,631
1
148,925 1,632
Trust Funds
$ 150,556
1
150,557
$ 148,925 $ 1,632 $ 150,557
`ffiI
CIN OF LODI
Combining Statement of Changes in Fiduciary Net Position
Private -Purpose Trust Funds
For the Year Ended June 30, 2022
ADDITIONS
Investment 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
$ (20,689) $
1,512
(22,201)
uest Trust Funds
(38) $ (20,727)
- 1,512
(38) (22,239)
171,126 1,670 172,796
$ 148,925 $ 1,632 $ 150,557
IEE
imm'FF
��
Statistical
Section
(Unaudited)
.. a...i= 143
Statistical
Section
(Unaudited)
(This page intentionally left blank.)
144
STATISTICAL SECTION
The Statistical Section provides detailed information as a framework
for understanding the information in the financial statements, notes and required supp emen ary
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.
145
CITY OF LODI
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
2022 2021 2020 2019 2018 "' 2017 2016 2015 "' 2014 2013
Governmental activities:
Net investment in capital assets
5 111,961
$ 120,763
$ 117,010 $
116,179 $
119,222 $
117,196 $
111,256 $
105,944
$ 105,462
$ 106,828
Restricted
42,297
37,505
33,230
25,751
25,904
15,545
13,911
12,001
11,809
12,601
Unrestricted
(56,728)
(84,870)
(107,255)
(115,043)
(117,535)
(77,162)
(76,984)
(74,146)
2,551
1,157
Total governmental activities net position
97,530
73,398
42,985
26,887
27,591
55,579
48,183
43,799
119,822
120,586
Business -type activities:
Net investment in capital assets
159,768
137,219
137,468
135,175
137,291
129,086
121,468
119,924
116,156
113,008
Restricted
6,077
18,860
19,594
7,230
20
3,929
3,893
6,810
6,703
6,600
Unrestricted
64,957
55,534
28,164
35,812
24,584
16,463
14,427
892
16,535
14,827
Total business -type activities net position
230,802
211,613
185,226
178,217
161,895
149,478
139,788
127,626
139,394
134,435
Primary government:
Net investment in capital assets
271,729
257,982
254,478
251,354
256,513
246,282
232,724
225,868
221,618
219,836
Restricted
48,374
56,365
52,824
32,981
25,924
19,474
17,804
18,811
18,512
19,201
Unrestricted
8,229
(29,336)
(79,091)
(79,231)
(92,951)
(60,699)
(62,557)
(73,254)
19,086
15,984
Total primary government net position
$ 328,332
$ 285,011
$ 228,211 $
205,104 $
189,486 $
205,057 $
187,971 $
171,425
$ 259,216
$ 255,021
i'i Fiscal year 2015 beginning net position was restated due to the implementation of GASB 68.
(2) Fiscal year 2018 beginning net position was restated due to the implementation of GASB 75.
Source: City of Lodi Financial Services Division
146
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
147
Fiscal Year
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Expenses
Governmental activities:
General government
$ 14,493 $
25,410 $
13,156 $
11,390 $
11,601 $
9,650 $
10,369
$ 9,109 $
9,580 $
8,943
Public protection
41,534
34,716
35,764
33,396
38,795
33,239
31,395
27,426
27,884
25,930
Public works
11,800
12,387
9,336
10,986
9,823
10,614
10,326
10,281
10,644
10,546
Community development
2,654
1,752
2,056
2,187
1,999
1,709
1,792
1,165
1,174
1,050
Library
1,448
1,052
1,882
785
1,753
1,253
1,389
1,324
1,282
1,342
Parks and recreation
4,318
3,379
3,873
4,142
4,672
3,663
4,262
3,116
3,164
2,933
Interest and fiscal charges
15,889
656
712
782
768
824
822
818
825
416
Total governmental activities expenses
92,136
79,352
66,779
63,668
69,411
60,952
60,355
53,239
54,553
51,160
Business -type activities:
Electric
74,001
68,307
71,758
64,104
67,943
62,791
61,764
64,367
61,974
61,106
Wastewater
11,624
11,683
18,049
14,410
16,008
16,318
14,024
12,912
12,527
13,423
Water
12,646
8,142
14,514
12,138
11,776
11,961
10,967
9,905
11,014
(34,877)
Transit
4,904
4,335
4,841
5,086
5,233
4,925
4,415
4,134
3,834
4,141
Total business -type activities expenses
103,175
92,467
109,162
95,738
100,960
95,995
91,170
91,318
89,349
43,793
Total primary government expenses
195,311
171,819
175,941
159,406
170,371
156,947
151,525
144,557
143,902
94,953
Program Revenues
Governmental activities:
Charges for services:
General government
2,056
2,119
3,240
323
3,670
3,246
1,490
1,971
1,955
2,337
Public protection
1,245
1,065
619
619
1,000
779
740
609
582
538
Public works
1,051
1,484
1,302
2,631
990
1,209
734
832
415
224
Community development
4,175
4,086
2,805
1,059
2,665
2,838
2,292
1,378
1,219
1,458
Library
12
-
38
-
37
43
63
43
43
44
Parks and recreation
1,868
1,176
1,551
1,286
1,698
1,660
1,637
1,360
1,479
1,404
Operating grants and contributions
4,872
4,582
3,426
7,968
2,287
2,391
2,596
3,369
2,686
2,341
Capital grants and contributions
15,834
8,418
10,302
6,861
8,737
12,830
10,559
3,131
5,359
4,216
Total governmental activities program revenues
31,113
22,930
23,283
20,747
21,084
24,996
20,111
12,693
13,738
12,562
Business -type activities:
Charges for services:
Electric
80,343
74,197
72,182
67,961
69,247
65,848
67,507
65,237
64,693
63,230
Wastewater
17,145
16,781
16,097
15,904
14,914
15,106
14,960
14,714
14,305
13,747
Water
14,187
14,112
14,192
13,345
13,005
12,474
12,161
12,723
12,756
12,441
Transit
264
70
126
216
227
220
210
230
203
185
Operating grants and contributions
8,443
6,866
7,034
8,261
5,969
4,514
5,089
5,186
4,431
5,178
Capital grants and contributions
8,683
5,145
2,894
2,092
11,307
7,972
2,860
5,284
2,846
4,715
Total business -type activities program revenues
129,065
117,171
112,525
107,779
114,669
106,134
102,787
103,374
99,234
99,496
Total primary government program revenues
160,178
140,101
135,808
128,526
135,753
131,130
122,898
116,067
112,972
112,058
Net
Governmental activities
(61,023)
(56,422)
(43,496)
(42,919)
(48,327)
(35,956)
(40,244)
(40,546)
(40,815)
(38,598)
Business -type activities
25,890
24,704
3,363
12,041
13,709
10,139
11,617
12,056
9,885
55,703
Total primary government net expense
$ (35,133) $
(31,718) $
(40,133) $
(30,878) $
(34,618) $
(25,817) $
(28,627)
$ (28,490) $
(30,930) $
17,105
147
CITY OF LODI
CHANGES IN NET POSITION
LASTTEN FISCALYEARS (CONTINUED)
(Dollar amounts in thousands)
Source: City of Lodi Financial Services Division
'Certain tax amounts have been reclassified in fiscal year 2013.
148
Fiscal Year
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property
$ 13,681 $
12,672 $
11,728 $
11,050 $
10,325 $
9,984 $
9,373
$ 8,969 $
8,290 $
8,075
Special assessments'
512
378
252
139
44
-
-
-
-
-
Sales'
26,248
24,303
20,084
14,287
11,333
11,749
11,808
10,624
10,111
9,349
Document transfer[
6,498
6,073
5,760
5,399
5,147
4,903
4,572
4,559
4,315
4,176
Franchise
9,934
9,582
9,612
9,212
9,218
9,099
9,073
8,976
8,838
8,735
Business license
2,373
2,092
1,884
1,887
1,822
1,736
1,552
1,486
1,528
1,524
Transient occupancy
1,485
899
988
736
867
849
783
666
594
546
Grants and contributions not restricted to specific programs'
7,885
14,166
475
441
601
2
-
1
180
-
Investment earnings
(6,303)
1,966
1,921
1,576
311
257
326
145
203
44
Rent
2,828
1,721
1,693
1,553
-
-
1,954
1,942
1,906
1,370
Other
15,906
850
953
353
933
722
719
605
528
610
Transfers
3,454
4,448
4,270
4,233
4,252
4,051
4,469
7,514
4,792
5,682
Total governmental activities
84,501
79,150
59,620
50,866
44,853
43,352
44,629
45,487
41,285
40,111
Business -type activities:
Investment earnings
(1,498)
2,223
4,816
1,584
716
816
952
632
757
497
Litigation- environmental lawsuits proceeds
-
-
-
-
-
-
100
-
-
1,107
Rent
-
-
-
-
-
-
4
4
4
-
Other
(1,749)
3,906
3,101
2,321
2,244
2,786
3,957
2,745
2,370
1,258
Transfers
(3,454)
(4,448)
(4,270)
(4,233)
(4,252)
(4,051)
(4,469)
(7,514)
(4,792)
(5,682)
Total business -type activities
(6,701)
1,681
3,647
(328)
(1,292)
(449)
544
(4,133)
(1,661)
(2,820)
Total primary government
77,800
80,831
63,267
50,538
43,561
42,903
45,173
41,354
39,624
37,291
Change in Net Position
Governmental activities
23,478
22,729
16,124
7,696
(3,474)
7,396
4,385
4,941
470
1,513
Business -type activities
19,190
26,386
7,010
11,712
12,417
9,690
12,161
7,923
8,224
52,883
Total primary government
$ 42,668 $
49,115 $
23,134 $
19,408 $
8,943 $ 17,086 $ 16,546
$ 12,864 $
8,694 $ 54,396
Source: City of Lodi Financial Services Division
'Certain tax amounts have been reclassified in fiscal year 2013.
148
CITY OF LODI
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
General Fund
Reserved
$ 15,199
$ 15,641 $
12,671
$ 10,717
$
$
$
$
$ -
$
Nonspendable
24
-
-
-
33
10
9
Committed
352
558
712
563
9,031
3,520
465
345
301
277
Assigned
-
-
-
-
-
-
1,564
26
29
65
Unassigned
23,389
24,491
14,520
11,172
9,737
11,448
11,185
12,107
9,134
7,614
Total General Fund
38,964
40,690
27,903
22,452
18,768
14,968
13,247
12,478
9,474
7,965
All other governmental funds
Nonspendable
7
2
2
1
1
1
1
1
4
3
Assigned
10,244
9,638
6,744
8,979
-
-
-
-
-
-
Committed
409
914
690
716
-
-
-
-
-
-
Restricted
54,237
21,439
19,629
14,202
16,062
15,263
13,867
11,957
11,764
12,556
Unassigned
-
-
-
-
-
-
-
-
(99)
(512)
Total all other governmental funds
64,897
31,993
27,065
23,898
16,063
15,264
13,868
11,958
11,669
12,047
$ 103,861
$ 72,683 $
54,968
$ 46,350
$ 34,831
$ 30,232
$ 27,115
$ 24,436
$ 21,143
$ 20,012
Source: City of Lodi Financial Services Division
149
Revenues:
Taxes
Sales and use tax
Licenses and permits
Intergovernmental revenues
Charges for services
Developer impact fees
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
Lease liabilities issued
Payment to refunded bond escrow agent
Capital lease proceeds
Loan proceeds
Total other financing sources (uses)
Special item -sale of parkland
Net change in fund balances
Fund balances, beginning of year 1�1
Fund balances, end of year
Debt service as a percentage of noncapital expenditures
CIN OF LODI
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
2022 1') 2021121 2020 i'i 2019 2018 2017 2016 2015 2014 2013
$ 34,483 $ 31,698 $ 30,224 $ 28,423 $ 27,423 $ 26,491 $ 25,327 $ 24,631 $ 23,719 $ 23,022
26,248 24,302 20,084 14,287 - - - - - -
2,549 2,621 1,774 1,570 1,764 2,015 1,646 967 852 921
20,440 22,657 10,499 9,213 20,807 23,975 21,083 17,557 17,392 14,625
7,212 10,056 8,333 6,558 6,020 5,722 5,830 3,827 3,558 3,880
2,592 - - - - - - - - -
304 217 1,053 1,274 1,396 906 1,495 1,573 1,557 1,632
(1,124) 5,193 4,728 2,994 2,325 2,319 2,155 2,029 2,025 1,389
- - - - - 818 - 282 1,003 -
573 1,290 845 812 1,206 1,116 538 1,078
93,277 98,034 77,540 65,131 60,941 62,246 58,652 51,404 50,106 46,547
16,490 25,847 13,019 9,609 9,738 9,499 9,360 9,151 9,019 8,522
41,165 38,110 37,410 31,949 30,788 30,201 28,821 26,646 27,093 26,282
6,832 6,555 5,436 5,452 4,628 4,608 4,070 4,508 4,393 4,532
2,699 2,127 2,249 2,112 1,756 1,651 1,601 1,226 1,192 1,111
1,214 1,024 1,181 1,166 1,058 1,153 1,153 1,311 1,268 1,411
3,145 2,827 2,764 2,680 2,497 2,378 2,369 2,145 2,299 2,370
7,843 6,843 4,679 3,380 8,296 11,592 13,117 9,842 7,652 6,271
665 696 732 821 805 858 847 845 851 483
1,115 1,144 1,106 1,080 1,028 1,240 260 - - 245
13,302 1,689
94,470 85,173 68,576 58,249 60,594 63,180 61,598 55,674 53,767 52,916
(1,193) 12,861 8,964 6,882 347 (934) (2,946) (4,270) (3,661) (6,369)
25,209 10,788 10,735 13,201 13,863 11,723 13,310 15,599 11,596 12,546
(21,755) (6,340) (6,464) (8,968) (9,611) (7,672) (8,716) (8,036) (6,804) (6,864)
1 28 - 404 - - - - - -
28,884 - - - - - - - - 20,103
34 - - - - - - - - -
- - - - - - - - - (19,848)
- - - - - - 563 - - -
468
32,373 4,476 4,271 4,637 4,252 4,051 5,625 7,563 4,792 5,937
31,180 17,337 13,235 11,520 4,599 3,117 2,679 3,293 1,131 (432)
72,681 55,344 41,733 34,831 30,232 2,963 284 (3,009) (4,140) (3,708)
$ 103,861 $ 72,681 $ 54,968 $ 46,351 $ 34,831 $ 6,080 $ 2,963 $ 284 $ (3,009) $ (4,140)
17.4% 2.3% 2.9% 3.5% 3.5% 4.1% 2.3% 1.8% 1.8% 5.2%
(')The beginning of year fund balance change was due to a reclassification of the Vehicle and Equipment Fund to an Internal Service Fund.
(2) The beginning of year fund balance change was due to a reclassification of the Special Assessments Fund to a Special Revenue Fund.
131 Developer impact fees shown as its own revenue category
150
CITY OF LODI
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 % Change 2013
to 2022
Property $ 14,193 $ 13,050 $ 11,980 $ 11,050 $ 10,043 $ 9,744 $ 9,151 $ 8,810 $ 8,314 $ 7,955
Sales and Use 26,248 24,302 20,084 14,286 11,333 11,750 11,809 10,625 10,111 9,350
Transient Occupancy 1,485 899 987 735 867 849 783 666 594 545
Franchise 2,501 2,207 2,338 2,128 2,059 1,915 1,990 1,942 1,862 1,758
Documentary Transfer 81 86 (25) 230 281 240 223 159 155 120
Motor Vehicle in Lieu 6,498 6,073 5,760 5,399 5,176 4,904 4,572 4,533 4,289 4,143
Public Protection 704 527 462 441 401 378 365 362 341 325
Business License 2,373 2,092 1,884 1,887 1,822 1,736 1,552 1,133 1,220 1,187
In Lieu Franchise 7,433 7,375 7,274 7,197 7,159 7,131 7,082 7,033 6,977 6,977
Totals $ 61,516 $ 56,611 $ 50,744 $ 43,353 $ 39,141 $ 38,647 $ 37,527 $ 35,263 $ 33,863 $ 32,360
Note: General governmental tax revenues are included in taxes, licenses and permits, intergovernmental revenues and miscellaneous revenues.
151
30.08%
116.05%
149.24%
139.55%
-120.00%
20.08%
36.69%
65.26%
-13.01%
46%
CITY OF LODI
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
12'2019& 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
152
Fiscal Year
2022
2021
2020
2019 (2)
2018 (2)
2017
2016
2015
2014
2013
Secured roll $
7,425,099
$ 6,962,679
$ 6,566,183
$ 6,174,155
$ 5,903,144
$ 5,603,023
$ 5,394,659
$ 5,156,704
$ 4,895,091
$ 4,737,807
Utility roll
2,046
2,047
1,901
2,299
2,299
2,299
3,490
3,490
3,490
2,382
Unsecured roll
232,613
231,423
247,608
258,682
266,956
254,946
250,160
257,856
230,827
233,398
Gross assessed value
7,659,758
7,196,149
6,815,692
6,435,136
6,172,399
5,860,268
5,648,309
5,418,050
5,129,408
4,973,587
Less exemptions 111
364,661
353,561
338,170
345,178
339,542
334,485
331,562
326,833
324,439
327,783
Net assessed value $
7,295,097
$ 6,842,588
$ 6,477,522
$ 6,089,958
$ 5,832,857
$ 5,525,783
$ 5,316,747
$ 5,091,217
$ 4,804,969
$ 4,645,804
Land $
2,144,590
$ 2,077,223
$ 1,971,712
$ 1,873,216
$ 1,812,408
$ 1,711,208
$ 1,601,581
$ 1,469,347
$ 1,364,401
$ 1,227,969
Improvements
5,282,139
4,894,256
4,614,260
4,286,480
4,042,264
3,854,604
3,736,867
3,610,391
3,443,266
3,445,328
Personal property
233,029
224,670
229,720
275,440
317,727
294,457
309,861
338,312
321,741
300,290
Grass assessed value
7,659,758
7,196,149
6,815,692
6,435,136
6,172,399
5,860,269
5,648,309
5,418,050
5,129,408
4,973,587
Less exemptions (1)
364,661
353,561
338,170
345,178
339,542
334,485
331,562
326,833
324,439
327,783
Net assessed value $
7,295,097
$ 6,842,588
$ 6,477,522
$ 6,089,958
$ 5,832,857
$ 5,525,784
$ 5,316,747
$ 5,091,217
$ 4,804,969
$ 4,645,804
Total Direct Tax Rate
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
"' 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.
12'2019& 2018 figures updated per San Joaquin County amounts
Source: San Joaquin County Auditor -Controller's Office
152
CITY OF LODI
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(Rate per $100 of assessed value)
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.
(l) Amounts restated based on new assessed value information provided.
153
Basic
Fiscal Year
Countywide Levy
School
All Other
Total
2022
1.0000
0.1028
0.0163
1.1191
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
2014M
1.0000
0.0574
0.0000
1.0574
2013
1.0000
0.0646
0.0000
1.0646
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.
(l) Amounts restated based on new assessed value information provided.
153
General Mills Cereals Prop LLC
Pacific Coast Producers
Calif Physicians Service Corp
Stag Ca Holdings LP
Reynolds Ranch Sr Development Company LP
Cepheid
Big Box Property Owner E LLC
Wal Mart Real Est Business Trust
Cal-Purnia Associates LP
Kdk Land Company
Winterfell Vintage Ca Owner LP
Westcore Vine LP
Cottage Bakery Inc
Costco Wholesale Corp
Dart Container Corporation
Wine & Roses LLC
Lowes Hiw Inc
Target Corp
Principal Secured Property Valuation
Other Secured Taxpayers
Exemptions relative to secured tax roll
Total Secured Property Valuation
CITY OF LODI
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Dollar amounts in thousands)
Fiscal Year
2022 2013
Percent of Total Percent of Total
Taxable Assessed City Taxable Taxable Assessed City Taxable
Value Rank Assessed Value Value Rank Assessed Value
$ - $ - % $ 82,357 1 1.823 %
114,217 1 1.650 70,257 2 1.555
52,754 2 0.800 55,332 3 1.225
44,600 3 0.610
44,077 4 0.570
39,878 5 0.510
39,535 6 0.480
36,828 7 0.470
34,903 8 0.440
30,780 9 0.410
30,490 10 0.300
Source: San Joaquin County Assessor data, MuniServices, LLC / Avenue Insights & Analytics
154
0.523
0.479
0.431
0.403
0.359
0.303
99.864
7.245
100.000 %
23,637 4
21,662 5
19,473 6
18,211 7
16,231 8
13,690 9
13,094 10
468,062
6.416
333,944
6,957,037
95.366
4,518,010
130,002
1.782
327,783
$ 7,295,097
100.000 % $
4,524,171
Source: San Joaquin County Assessor data, MuniServices, LLC / Avenue Insights & Analytics
154
0.523
0.479
0.431
0.403
0.359
0.303
99.864
7.245
100.000 %
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
155
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
2022
$ 13,679
$ 13,679
100.0%
$ 13,679
100.0%
2021
12,526
12,526
100.0%
12,526
100.0%
2020
11,642
11,642
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%
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
155
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
(" Large Industrial for 2018 reported as N/A in 2018 - correct number is 55.
I21 Small Industrial for 2018 reported as N/A in 2018 - correct number is 11.
156
Billed Accounts
Type of Customer
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
City Accounts
258
325
231
248
223
217
213
212
207
204
Domestic Residential
26,237
24,675
23,234
22,228
22,041
21,917
22,497
22,393
22,623
22,541
Domestic Mobile Home Park
13
13
13
13
13
13
13
13
13
13
Dusk to Dawn
87
90
89
91
92
85
85
88
89
88
Industrial
-
-
-
-
43
-
-
-
-
-
Large Commercial
471
402
394
383
96
355
348
337
339
344
Large Industrial ("
18
16
38
69
55
35
44
41
39
40
Medium Commercial
-
-
-
-
375
-
-
-
-
-
Medium Industrial
6
11
23
14
10
10
11
12
11
11
Residential Low Income
2,043
2,725
2,248
2,796
2,539
2,669
2,688
2,798
2,788
2,582
Small Commercial
3,589
3,619
3,254
2,795
3,148
3,434
3,416
3,332
3,367
3,358
Small Industrial (2)
6
6
7
11
11
10
11
7
8
9
Total
32,728
31,882
29,531
28,648
28,646
28,745
29,326
29,233
29,484
29,190
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
(" Large Industrial for 2018 reported as N/A in 2018 - correct number is 55.
I21 Small Industrial for 2018 reported as N/A in 2018 - correct number is 11.
156
CITY OF LODI
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Dollar amounts in thousands, except per capita)
Governmental Activities Business -type Activities
Details regarding the City's outstanding debt can be found in Note 7 of these financial
statements.
") See Demographic and Economic Statistics table for personal income and population.
Source: City of Lodi Financial Services Division
157
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 ")
Capita Itl
2022
$ 28,880
$
$ -
$ 85
28,965
$ 102,530
$229
102,759
131,724
3.96 %
$ 1,979
2021
14,882
169
15,051
108,741
454
109,195
124,246
4.15 %
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
Details regarding the City's outstanding debt can be found in Note 7 of these financial
statements.
") See Demographic and Economic Statistics table for personal income and population.
Source: City of Lodi Financial Services Division
157
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
(1) 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
158
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
(1) of Property
Capita
2022
$ 28,880
$ - $ 28,880
$ 12.4
$ 420.07
2021
14,882
- 14,882
0.2
219.08
2020
15,901
- 15,901
4.4
232.91
2019
16,885
- 16,885
0.2
251.56
2018
17,839
- 17,839
0.3
278.48
2017
18,753
- 18,753
0.4
296.64
2016
19,637
- 19,637
0.4
308.18
2015
19,950
- 19,950
0.4
313.43
2014
20,004
- 20,004
0.4
317.88
2013
20,058
10 20,048
0.4
319.11
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
(1) 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
158
CITY OF LODI
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(Dollar amounts In thousands)
FISCAL YEAR
2022 2021 2020 201911 20181'J 2017 2016 2015 2014 2013
Assessed valuation 1�J $ 7,353,234 $ 6,900,923 $ 5,891,914 $ 5,584,838 $ 5,375,564 $ 5,585,242 $ 5,377,266 $ 5,152,666 $ 4,867,731 $ 4,709,916
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt Limit
Total net debt applicable to limit
Legal debt margin
25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
1,838,309 1,725,231 1,472,979 1,396,210 1,343,891 1,396,311 1,344,317 1,288,167 1,216,933 1,177,479
15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
275,746 258,785 220,947 209,431 201,584 209,447 201,647 193,225 182,540 176,622
28,880 14,882 15,901 16,885 17,839 18,753 19,637 19,950 20,004 20,048
$ 246,866 $ 243,903 $ 205,046 $ 192,546 $ 183,745 $ 190,694 $ 182,010 $ 173,275 $ 162,536 $ 156,574
Total net debt applicable to the limit as
a percent of debt limit 10.5% 5.8% 7.2% 8.1%
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 las 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.
i'i All exemptions (secured, utility, and unsecured rolls) are homeowners which is added to Net Assessed Value
ai 2019 & 2018 figures updated per San Joaquin County amounts
Source: California Municipal Statistics Inc.
159
8.8% 9.0% 9.7% 10.3% 11.0% 11.4%
CITY OF LODI
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
June 30. 2022
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)
2020-22 Gross Assessed Valuation $ 7,353,233,712
2020-21 Population 66,570
DEBT RATIOS
Total Gross Debt
Percentage City's Share
Total Debt Applicable Ili of Debt
$ 188,480,000
7.469 % $
14,077,571
300,695,000
36.895
110,941,420
60,400,000
8.095
4,889,380
10,065,000
36.895
3,713,482
133,621,853
28,250,000
100.00
28,250,000
85,427
100.00
85,427
28,335,427
$
161,957,280
Per Capita
Value
161,957,280
2,433
2.20%
Ili Percent of overlapping agency's assessed valuation located within the boundaries of the City.
Ili 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
160
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.
(l) Total operating revenues including investment earnings, operating grants, capital contributions
(including developer impact fees) and other revenue.
(Z) Total operating expenses including cost of services paid to the General Fund and excluding in -lieu fees,
depreciation and amortization.
131 Net of Build America Bonds interest subsidy - Water Revenue Bonds.
(4) Adjusted Annual Revenues restated for correction to developer impact fees.
161
Adjusted
Adjusted
Net
Fiscal
Annual
Operating
Available
Debt Service
Year
Revenues(l)
Expenses (Z)
Revenue
Principal
Interest (3)
Total
Coverage
Electric Revenue Certificates of Participation
2022
$ 81,327
$ 62,414
$ 18,913
$ 2,365
$ 1,823
$ 4,188
4.52
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
Wastewater Certificates
of Participation and Revenue
Bonds
2022
$ 19,127
$ 5,236
13,891
$ 1,971
1,359
3,330
4.17
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
Water Revenue Bonds
2022
$ 14,915
$ 9,226
$ 5,689
$ 930
$ 997
$ 1,927
2.95
2021 (4)
16,642
4,932
11,710
1,040
1,033
2,073
5.65
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
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.
(l) Total operating revenues including investment earnings, operating grants, capital contributions
(including developer impact fees) and other revenue.
(Z) Total operating expenses including cost of services paid to the General Fund and excluding in -lieu fees,
depreciation and amortization.
131 Net of Build America Bonds interest subsidy - Water Revenue Bonds.
(4) Adjusted Annual Revenues restated for correction to developer impact fees.
161
CITY OF LODI
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
162
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
2022
13.98
66,570
-1.2%
784,298
8.5%
136
$ 3,328
$ 49,991
3.7%
2021
13.98
68,751
-1.2%
783,534
8.8%
131
2,992
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%
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
162
Employer
Pacific Coast Producers
Lodi Unified School District
Adventist Health Lodi Memorial
Blue Shield of CA
Walmart Supercenter
City of Lodi
Rich Products formerly known as Cottage Bakery
Costco Wholesale
Scientific Specialties Inc.
Arbor Rehabilitation & Nursing Center
General Mills Ili
Farmers & Merchant Bank
Target
CITY OF LODI
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Current Nine Years
Total o,7 -)L
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.
I�1 General Mills permanently closed.
163
435 6
190 9
160 10
LL..7/70 25,u47
1.67%
0.73
n f,1 %
33.1170
Labor Force
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
Percent
Percent
of Total City
of Total City
Employees
Rank
Employment
Employees
Rank
Employment
1,486
1
4.82% %
1,000
3
3.83%
1,363
2
4.43%
3,650
1
13.97%
1,242
3
4.03%
1,320
2
5.05%
1,084
4
3.52%
778
4
2.98%
403
5
1.31%
230
8
0.88%
395
6
1.28%
377
7
1.44%
276
7
0.90%
509
5
1.95%
278
8
0.90%
215
9
0.70%
210
10
0.68%
Total o,7 -)L
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.
I�1 General Mills permanently closed.
163
435 6
190 9
160 10
LL..7/70 25,u47
1.67%
0.73
n f,1 %
33.1170
Labor Force
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
28,700
CITY OF LODI
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY DEPARTMENT- LAST TEN FISCAL YEARS
Fiscal Year
Community Center, Human Resources and Information Systems were previously included in Administration. Budget, Financial Services,
Human Resources and Information Services are now Internal Services.
Community Center, Parks & Recreation are now Parks, Recreation and Cultural Services.
Source: City of Lodi Budget Document
164
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Department:
Administration
12
12
9
9
9
10
10
10
10
10
Community Development
20
13
11
11
11
11
11
11
9
9
Electric
54
52
52
52
52
51
49
44
43
40
Fire
57
57
57
53
53
54
54
57
53
53
Internal Services
36
35
34
31
31
32
31
31
31
31
Library
8
8
8
7
7
7
10
11
10
11
Parks, Recreation and Cultural Services
27
24
24
24
24
24
26
28
27
27
Police
112
111
109
103
103
103
102
107
104
104
Public Works
116
109
103
101
101
101
100
97
95
92
Total
442
421
407
391
391
393
393
396
382
377
Community Center, Human Resources and Information Systems were previously included in Administration. Budget, Financial Services,
Human Resources and Information Services are now Internal Services.
Community Center, Parks & Recreation are now Parks, Recreation and Cultural Services.
Source: City of Lodi Budget Document
164
CITY OF LODI
OPERATING INDICATORS BY FUNCTION/PROGRAM/DEPARTMENT
LAST TEN FISCAL YEARS
Public safety:
Fiscal Year
2022
2021
2020
2019
General government:
Major reported crimes
1,631
1,643
1,938
Building permits issued
3,569
3,017
2,500
2,502
Business tax certificates:
Dispatched calls for service
43,357
34,046
36,053
Retail sales and service
3,515
3,008
2,755
3,014
Manufacturers and processors
59
167
81
87
Professions
283
328
315
330
Miscellaneous contractors, peddlers,
Hazardous materials calls
95
78
64
delivery vehicles, etc.
264
1,464
1,518
1,986
Utility billing/customer service:
Total emergency calls
7,647
7,206
7,211
Number of customers
27,747
25,166
24,764
24,576
Energy sales (KWH)
450,539,324
439,083,721
417,003,511
410,566,814
Peak demand (MW)
125.40
132.50
126
117.9
Public safety:
Police:
Major reported crimes
1,631
1,643
1,938
1,943
Total arrests
3,078
3,432
3,792
3,611
Dispatched calls for service
43,357
34,046
36,053
37,806
Fire:
Interior structure fire calls
136
130
133
70
Non-structural fire calls
236
192
188
255
Hazardous materials calls
95
78
64
87
Emergency medical calls
4,218
3,866
3,557
3,915
Total emergency calls
7,647
7,206
7,211
7,600
Total number of units dispatched
6,946
7,629
8,317
7,701
Public works:
Miles of streets resurfaced
6.8
6.5
7
3
Fleet job orders completed
2303
2147
2,106
1,866
Trees planted
65
245
657
500
Water utility:
New connections
249
227
189
290
Water main breaks
2
6
5
1
Wastewater utility:
Average daily treatment (million gal/day)
4.50MG
4.50MG
4.55MG
4.6MG
Library:
Registered borrowers
27,857
54,263
64,864
67,334
Circulation of library materials
86,509
35,528
134,950
168,793
Reference, research and informational
questions answered
1818
2495
8,024
11,296
Annual attendance at libraries
50,318
67,892
172,631
231,391
Number of programs offered
197
265
653
715
Annual attendance at programs
2305
4168
14,863
18,825
Public access computer usage
27,000
12,376
24,033
27,603
Community center:
Community center bookings
365
307
501
809
Instructional classes
406
59
481
616
Registered students
584
157
1,172
2,546
Yearly attendance
11,270
2,663
9,521
14,220
Parks and recreation:
CITY after school program
202/4
230/5
2,474/4
2,950/4
LUSD After School Program
960/12
3993/12
9,944/12
9,867/10
Camps
157/4
284/3
225/3
631/3
Adult sports
Program/Participation
360
240
1,176
2,045
Programs offered
14
6
6
14
Partnerships
1
0
-
2
Tournaments
0
0
-
7
Youth/Teen sports
Program attendance
934
128
1,165
3,517
Programs offered
15
2
11
18
Aquatics
Program attendance
18,691
4,937
18,336
18,202
Number of programs
13
8
13
12
Source: City of Lodi
165
CITY OF LODI
OPERATING INDICATORS BY FUNCTION/PROGRAM/DEPARTMENT
LAST TEN FISCAL YEARS (CONTINUED)
2,062
2,025
Fiscal Year
2,268
2,268
2018
2017
2016
2015
2014
2013
2,699
2,447
2,482
2,404
2,404
1,578
2,137
2,443
2,288
2,281
2,281
2,526
75
76
78
23
23
78
294
308
316
323
323
362
1,232
949
1,268
1,256
1,256
1,456
24,259
26,018
26,034
25,912
25,912
23,927
425,157,874
425,410,574
437,246,335
438,780,911
438,780,911
435,822,465
131
129
124
134
134
122
2,062
2,025
3,068
2,268
2,268
2,643
3,460
4,226
4,083
3,690
3,690
3,825
37,301
37,866
40,390
35,992
35,992
50,124
56
51
33
32
32
67
235
177
154
143
143
209
55
90
73
65
65
58
5,364
3,572
3,123
3,418
3,418
3,882
6,996
5,869
5,238
3,666
3,666
5,823
8,230
7,225
7,430
5,727
5,727
7,954
0
6
6
6
6
6
1,744
2,129
2,162
2,500
2,500
1,803
372
135
135
135
135
131
180
205
69
8
8
8
2
2
3
16
16
14
4.51MG
4.65MG
4.61MG
4.6MG
4.61MG
5.10MG
63,631
64,742
60,362
58,824
58,824
51,594
162,796
187,853
199,096
197,673
197,673
215,293
9,852
9,695
11,109
13,189
13,189
16,270
225,558
231,602
245,936
224,762
789
764
456
432
432
407
24,682
23,960
15,452
12,888
12,888
14,443
25,825
31,205
34,071
34,071
41,180
45,871
595
597
758
794
769
718
438
554
518
500
553
580
2,695
3,010
2,744
2,586
3,269
2,819
11,011
13,925
13,925
13,925
13,925
13,925
2,705/4
1,964/4
1,898/4
1,679/4
1,630/4
1,811/4
12,985/13
13,016/3
12,318/13
12,001/13
12,878/13
11,800/13
71
103
67
74
89
45
1,990
1,895
1,976
2,106
2,082
2,246
14
14
15
18
17
16
2
2
2
2
2
2
4
6
8
10
5
6
3,480
3,496
3,652
3,621
3,672
3,643
11
18
18
18
18
19
26,571
28,974
28,195
28,009
27,731
23,414
8
14
14
15
13
13
Source: City of Lodi
166
CIN OF LODI
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM/DEPARTMENT
LASTTEN FISCALYEARS
167
Fiscal Year
2022
2021
2020
2019
General government:
Total square miles
13.98
13.98
13.98
13.98
Public safety:
Police:
Facilities:
Stations
1
1
1
1
Animal control facility
1
1
1
1
Police training facility (pistol range)
1
1
1
1
Vehicles:
Marked patrol cars
26
29
27
21
Motorcycles and scooters
6
5
5
5
Animal control vehicles
2
2
2
2
Other automobiles
35
37
35
36
Fire:
Facilities:
Fire stations
4
4
4
4
Vehicles:
Fire engines
7
8
7
6
Trucks/Trailers
7
5
5
5
Other automobiles
8
8
6
5
Boat
1
1
Public works:
Miles of streets
198
198
194
190
Miles of alley ways
12
12
12
12
Traffic signals
70
70
70
69
Street lights
8,304
7,910
7,776
7,739
Parks and recreation:
Parks and squares
30
29
29
28
Park acreage
375
371
371
367
Boating facilities - launch lanes
1
1
1
1
Senior center
1
1
1
1
Community Centers
1
1
1
1
Swimming pools
4
4
4
4
Baseball/softball diamonds
18
18
18
20
Tennis courts
9
9
9
11
Pickleball courts
6
6
6
-
Skateboard park
1
1
1
1
Playgrounds
21
22
22
20
Ballpark
24
24
24
24
Soccer Field
22
22
22
22
Football Field
1
1
1
1
Handball/Basketball/Volleyball Courts/
Bocce Courts
15
15
15
15
Horseshoe Pits
9
9
9
9
Library:
Central library
1
1
1
1
Total items in collection
106,729
106,975
108,750
110,000
Integrated library system
1
1
1
1
Microfilm readers
0
0
0
0
Microfilm readers/printers
0
0
0
0
Self check out machines
3
3
3
3
Electric utility:
Overhead lines 12kv (miles)
116.87
116.98
117
117
Overhead lines 60kv (miles)
14
14
14
14
Underground lines (miles)
143.85
138.69
133
129
Water utility:
Water main lines
251
248
245
245
Water storage capacity (gallons)
5,100,000
5,100,000
4,100,000
4,100,000
Water wells
28
28
28
28
Water reservoirs
4
4
3
3
Water Treatment Plant
1
1
1
1
Wastewater utility:
Wastewater main lines (miles)
203
205
203
203
Treatment capacity
8.5MG
8.5MG
8.5MG
8.5MG
Wastewater treatment plant
1
1
1
1
Wastewater Pump Stations
13
13
13
13
Stormwater utility:
Stormwater main drain lines (miles)
135
132
130
130
Stormwater pump stations
17
17
17
17
Central parking district:
Parking structure
1
1
1
1
Parking spaces
2450
2450
2450
2,450
Parking lots
25
25
25
25
Source: City of Lodi Departments
167
CIN OF LODI
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM/DEPARTMENT
LASTTEN FISCAL YEARS (CONTINUED)
Fiscal Year
2018
2017
2016
2015
2014
2013
13.98
13.98
13.98
13.98
13.98
13.98
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
23
23
23
23
23
23
6
7
7
7
5
5
2
2
2
2
2
2
37
37
37
37
37
37
4
4
4
4
4
4
6
7
6
6
6
6
5
8
6
6
6
6
8
5
11
11
11
11
190
202
202
202
202
202
12
16
16
16
16
16
69
68
67
67
67
67
7,697
7,270
7,270
7,270
7,270
7,270
28
26
26
26
26
26
366
361
361
361
361
361
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
4
4
4
4
4
4
20
20
20
20
20
20
11
11
11
11
11
11
1
1
1
1
1
1
17
20
20
20
20
20
24
24
24
24
24
24
22
22
22
22
22
22
1
1
1
1
1
1
12
12
12
12
12
12
8
8
8
8
8
8
1
1
1
1
1
1
111,544
125,730
130,657
119,554
148,287
149,243
1
1
1
1
1
1
0
0
0
1
1
1
0
1
1
1
1
1
3
3
3
2
2
2
117.19
117
117
117
117
133
13.56
14
14
14
14
14
128.36
123
121
118
115
159
245
243
240
236
236
236
4,100,000
4,100,000
4,100,000
4,100,000
4,100,000
4,100,000
28
28
28
28
28
28
3
3
3
3
3
3
1
1
1
0
0
0
203
196
196
196
196
196
8.5MG
8.5MG
8.5 MG
8.5 MG
8.5 MG
8.5 MG
1
1
1
1
1
1
13
9
9
0
0
0
130
128
126
124
124
124
17
16
16
14
14
14
1
1
1
1
1
1
2,450
2,450
2,450
2,450
2,450
2,453
25
25
25
25
25
25
Source: City of Lodi
Departments
168
THE �
PUN GROUP
ACCOUNTANTS & ADVISORS
CITY OF LODI
Presentation to the City Council
Agenda Item: H-1
For the Fiscal Year Ended June 30, 2022
December 7, 2022
r,
Emi
CONTENTS
• Scope of Work
• Required Communications (AU -C 260)
• Overview of Financial Statements
• Key Financial Indicators
• Audit Results
• Thank You!
THE
PUN GROL11
ACCOUNTANTS& ADIdSORS
2
SCOPE OF WORK
THE
GROUP
ACCOUNTANTS& ADVJSOPS
SCOPE OF WORK
For the fiscal year ended June 30, 2022:
• 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
• Appropriations Limit Agreed -Upon Procedures Report (GANN Limit) for the year
ending June 30, 2023
• Single Audit — Federal Expenditures Audit (Finalizing)
MN GROUV
AC COU NTA NTS & ADV ISO KS
THE
GROUP
ACCOUNTANTS& ADVJSOPS
ANNUAL REQUIRED COMMUNICATIONS
1
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 cOUF
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 cOUF
ACCOUNTANTS & ADVISORS
E
Annual Required Communications (continued)
Ethics and Independence
Complied with ALL relevant ethical
requirements regarding independence
ThN GROUP
ACCOUNTANTS & ADVISORS
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 Assets
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 10— Implementation of New GASB Pronouncements (GASB 87, Leases)
Note 14 — Deficit in Net Position
Note 15 — Commitments and Contingencies
Note 17 — Reclassification of Fund Balance (OPEB)
0
Note 18 — Subsequent Events
Q
MN GRQUV
AC COU NTA NTS & ADV ISO KS
Annual Required Communications (continued)
A% Consultation with Other No outside consultations with other
�� Accountants accountants regarding auditing and
other matters.
ASignificant Difficulties No significant difficulties encountered
during the audit.
S":%*
Disagreement with No disagreement over accounting
Mana ement treatments or audit procedures
g performed.
ThN GROUP
ACCOUNTANTS & ADVISORS
Annual Required Communications (continued)
• Corrected / Uncorrected Audit Adjustments — Representation Letter
• All proposed audit entries were posted
• Immaterial unposted entries (1)
• Other Audit Findings or Issues
• Reportable Conditions, if any, in Internal Controls are Reported within Single Audit
• Other Matters —Auditors' Responsibility
• Required Supplementary Information
• Supplementary Information
MN GRQUV
AC COU NTA NTS & ADV ISO KS
AUDIT RESULT
PUN GROUP
ACCOUNTANTS& ADVJSOPS
12
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
• GANN Limit
• No exceptions were found
• Single Audit (Finalizing)
MN GROUV
AC COU NTA NTS & ADV ISO KS
OVERV
STATEM
PUN GROUP
ACCOUNTANTS& ADVJSOPS
NTS
City of Lodi
Government -Wide Financial Statements
Summary Statement of Net Position
June 30, 2022
Governmental Business -Type
Activities Activities Total
Current Assets
Noncurrent Assets
Total Assets
Deferred Outflows of Resources
Current Liabilities
Noncurrent Liabiltiies
Total Liabilities
Deferred Inflows of Resources
Net Position:
Net investments in capital assets
Restricted
Unrestricted
Total Net Position
ThN GROUP
ACCOUNTANTS & ADVISORS
$ 137,604,018 $
124,642,563 $
262,246,581
206,040,868
255,649,706
461,690,574
343, 644, 886
380, 292, 269
723, 937,155
16, 960, 996
7,314,051
24, 275, 047
17, 526, 077
17, 787,495
35, 313, 572
148,626,861
130,892,649
279,519,510
166,152,938
148,680,144
314,833,082
96,922,967
8,123,527
105,046,494
111, 961, 302
159, 768, 229
271, 729, 531
42,296,979
6,077,383
48,374,362
(56,728,304)
64,957,037
8,228,733
$ 97,529,977 $
230,802,649 $
328,332,626
City of Lodi
Government -Wide Financial Statements
Summary Statement of Activities
For the Year Ended June 30, 2022
General Revenues
Investment Income
Other
Transfers
Changes in Net Position
ThN GROUP
ACCOUNTANTS & ADVISORS
68,615,381 -
(3,474,490) (1,498,177)
15,906,043 (1,748,718)
3,453,840 (3,453,840)
$ 23, 477, 851 $ 19,189, 560 $
68,615,381
(4,972,667)
14,157,325
42,667,411
Governmental
Business -Type
Activities
Activities
Total
Expenses
$ 92,136,106
$ 103,174,785 $
195,310,891
Program Revenues
Charges for Services
10,407,348
111,939,682
122,347,030
Operating Grants and Contributions
4,871,549
8,442,821
13,314,370
Capital Grants and Contributions
15,834,286
8,682,577
24,516,863
Total Program Revenues
31,113,183
129,065,080
160,178,263
Net Cost of Services
(61,022,923)
25,890,295
(35,132,628)
General Revenues
Investment Income
Other
Transfers
Changes in Net Position
ThN GROUP
ACCOUNTANTS & ADVISORS
68,615,381 -
(3,474,490) (1,498,177)
15,906,043 (1,748,718)
3,453,840 (3,453,840)
$ 23, 477, 851 $ 19,189, 560 $
68,615,381
(4,972,667)
14,157,325
42,667,411
City of Lodi
General Fund
Summary Balance Sheet
June 30, 2022 and 2021
Assets
Liabilities
Deferred Inflows of Resources
Fund Balance:
Nonspendable
Restricted
Commited
Unassigned
Total Fund Balance
ThN GROUP
ACCOUNTANTS & ADVISORS
2022
2021
$ 110, 824, 019 $ 48, 814, 009
6,293,533 7,409,887
65,566,436 714,024
24,321
15,198, 535
352,540
53,739
15, 641, 640
557,686
23,388,654 24,437,033
$ 38,964,050 $ 40,690,098
City of Lodi
General Fund
Summary Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2022 and 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
Community development
Library
Debt service
2022
$ 34,483,025
26,247,772
2,369,097
365,998
9,172,086
16,759
72,654,737
13,197,297
41,054,131
3,034,047
393,290
1,214,407
11.250
2021
$ 31,697,986
24,302,433
2,598,283
286,101
15,116,622
5,135,560
79,136,985
23,829,150
38,005,919
2,743,906
1,024,617
Total expenditures 58,904,422 65,603,592
Proceeds from Capital Lease 33,607 14,666
Net Transfers In (Out) (15,509,970) (761,002)
EffiNGROUP Changes in Fund Balance $ (1,726,048) $ 12,787,057
KEY FII
PUN GROUP
ACCOUNTANTS& ADVJSOPS
City of Lodi
Sales Tax Trend
Fiscal Years Ended June 30,2015 to 2022
(In millions)
28,000
27,000
26,000
25,000
24,000
23,000
22,000
21,000
20,000
19,000
18,000
c
17,000
16,000
N
15,000
14,000
13; 000
F>'1,
000
10, 000
9, 000
8, 000
S7,000
6, 000
5, 000
4,000
3, 000
2,000
(;1,000
By Fiscal Year
ThN GROUP
ACCOUNTANTS & ADVISORS
2015 2016 2017 2018 2019 2020 2021 2022
City of Lodi
Governmental Activities
Net Cost of Services to Tax Revenues
For the Fiscal Year Ended June 30, 2022
Expenses
Less: Program Revenues
Net Cost of Services
Tax Revenues
Ratio
ThN GROUP
ACCOUNTANTS & ADVISORS
$ 92,136,106
(32,113,103)
60,023,003
60,730,797
City of Lodi
General Fund Reserves
Available Fund Balance to Annual Expenditures
Fiscal Years 2020 to 2022
2022
Unassigned Fund Balance $ 23,388,654
Annual Expenditures 58,904,422
General Fund Reserves Ratio
ThN cOUF
ACCOUNTANTS & ADVISORS
39.71%
2021
$ 24,437,033
65,603,592
37.25%
2020
$ 14,519,980
50,969,997
28.49%
City of Lodi
GASB 68 - The Pension Standard
Net Pension Liablity @ 7.15%
Discount Rate
Funded Ratio - 2020-21
June 30, 2022
Miscellaneous
Safety Total
$ 39,132,884 $ 63,597,652 $ 102,730,536
81.94%
Sensitivity Analysis:
Net Pension Liability @ 6.15% (-1 %) $ 66,054,054 $ 93,309,844 $ 159,363,898
Net Pension Liability @ 8.15% (+1 %) $ 16,772,833 $ 39,201,926 $ 55,974,759
ThN GROUP
ACCOUNTANTS & ADVISORS
City of Lodi
GASB 75 - The OPEB Standard
June 30, 2022
Net OPEB Liablity @ 3.22%
Discount Rate
Funded Ratio
Sensitivity Analysis:
Net OPEB Liability @ 2.22% (-1 %)
Net OPEB Liability @ 4.22% (+1 %)
ThN GROUP
ACCOUNTANTS & ADVISORS
Total
$ 21,761,270
9.92%
$ 24,527,882
$ 19,463,635
Summary of PY Findings and Recommendations - 2021
Section II - Financial Statement Findings
2021-001 Internal Control over Financial Reporting
• Payroll timecards were missing proper approvals in 4 of 40 selected for testing.
Current Status: Implemented
ThN GROUP
ACCOUNTANTS & ADVISORS
Summary of Unposted Audit Adjustments
Governmental / Business -Type Activities
1) Entry to correct amortization of deferred costs on debt issuance ($60,000)
MTbNGR0UV
ACCOUNTANTS & AOVISO KS
THE
PUN
GROUP
ACCOUNTANTS & ADVISORS
HQ - ORANGE COUNTY
200 E. Sandpointe Avenue
Suite 600
Santa Ana, CA 92707
SAN DIEGO
4365 Executive Drive
Suite 710
San Diego, CA 92121
BAY AREA
2121 North California Blvd.
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Walnut Creek, CA 94596
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1050 Indigo Drive
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Las Vegas, NV 89145
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4742 North 24th Street
Suite 300
Phoenix, AZ 85016