HomeMy WebLinkAboutCity of Fairfield - Public Financial ReportCity of Fairfield, California
Popular Annual Financial Report
Fiscal Year Ended June 30, 2021
Prepared by: Finance Department –AccounƟng Division
The Centennial Windmill — City Hall
Popular Annual Financial Report for FY 2020-21
City Council and Elected Officials
A Message to Our Readers Table of Contents
→ 2 - City Council and Elected Officials
→ 2 - Management Leadership Team
→ 3 - City and Government Profile
→ 4 - City and Demographic Information
→ 4 - Major Employers and Trend Information
→ 5 - Economic Summary
→ 6 - Summary Entity Financial Statements
→ 9 - Financial Overview and Long Term
Outlook for the City’s General Fund
→11 - Major Revenue Sources
→12 - Financial Long Term Outlook for the
City’s Other Funds
→14 - Cash and Investments
→15 - Long-Term Obligations
→16 - Capital Assets
→17 - Capital Improvement Plan
For additional details regarding information contained
in this PAFR, you can review the City’s most current
ACFR at
https://www.fairfield.ca.gov/home/showpublisheddocumen
t/6232/637756037543970000
and the operating budget and Capital Improvement
Plan at https://www.fairfield.ca.gov/government/city-
departments/finance/financial-reports.
The City is pleased to present its Popular Annual
Financial Report (PAFR) for the fiscal year ended
June 30, 2021. The purpose of the PAFR is to inform
the community of the City’s fiscal condition in an
easy to read format.
The City of Fairfield’s Annual Comprehensive
Financial Report for the year ended 2019-2020,
from which the information has been drawn, was
awarded the Certificate of Achievement for
Excellence in Financial Reporting by Government
Finance Officers Association of the United States
and Canada (GFOA). The Certificate of Achievement
is the highest form of recognition for excellence in
state and local government financial reporting.
In order to be awarded a Certificate of
Achievement, a government unit must publish an
easily readable and efficiently organized Annual
Comprehensive Financial Report (ACFR), whose
contents conform to program standards. Such an
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. We believe that our current ACFR
continues to conform to the Certificate of
Achievement Program’s requirements, and we are
submitting it to GFOA to determine its eligibility for
another Certificate. The City also received the
Award for Outstanding Achievement in Popular
Annual Financial Reporting for its PAFR for the prior
fiscal year.
Except for the General Fund information included in
this report, the financial numbers are presented
using the accrual method of accounting similar to
the private sector, where revenues are recognized
in the period in which they are earned and expenses
are recognized in the period in which the liability is
incurred. In addition, information is presented in a
summarized format and certain information and
disclosures required by GAAP are omitted.
1
Popular Annual Financial Report for FY 2020-21
City Council and Elected Officials
Harry T. Price Rick Vaccaro
Mayor Vice-Mayor
District 4
Chuck Timm Scott Tonnesen Catherine Moy Doriss Panduro Pam Bertani
Councilmember Councilmember Councilmember Councilmember Councilmember
District 1 District 2 District 3 District 5 District 6
Karen L. Rees Arvinda Krishnan
City Clerk City Treasurer Management Leadership Team
David Gassaway Anthony M. Velasquez Juan Gomez
Acting City Manager Fire Chief Interim Director of Finance
Greg W. Stepanicich Farbod Pirouzmand Paul Kaushal
City Attorney Director of Human Resources Director of Public Works
David Gassaway Deanna Cantrell LaTanna Jones
Assistant City Manager Police Chief Director of Housing Services
Kristina Chamberlin
Director of Parks and Recreation
2
Popular Annual Financial Report for FY 2020-21
City Profile and Demographic Information
City Profile
Government Profile
The City is a general law city, and was incorporated in 1903. It has a Council-Manager form of government with a
separately-elected Mayor and six Council members elected at large to staggered four-year terms. There are also two
citizen commissions whose members are appointed by the Council to fixed terms: Planning and Youth. The City also
has a five-member Fairfield Taxpayers Committee (the “Measure P Committee”) whose members are appointed by
Council to a fixed term. The City Clerk and Treasurer are elected. The City Council appoints the City Manager and
Attorney. Department heads are appointed by the City Manager.
The City is organized into eight departments: Public Works, Police, Fire, Finance, Community Development, Parks and
Recreation, Human Resources and Housing Services. In addition, City Administration comprises the executive,
information technology, legislative, and legal offices. The chart below shows the City’s full time staff levels during the
past ten years. The City’s employees are 0.5% of the total population of the City.
The City provides a broad range of services including police and fire protection; construction and maintenance of
streets, parks, storm drains and other infrastructure; recreational and cultural activities, including two 18-hole
championship golf courses; and administrative support services. Some major public services delivered within the
City’s boundaries, including library, wastewater, and education, are provided by other governmental agencies. The
City is not financially accountable for the operations of these franchises or government agencies.
Fairfield sits at the northeastern portion of the
San Francisco Bay Area. The county seat of Solano
County since 1858, Fairfield has the vision of a
progressive city. Founded in 1856 by Captain
Robert Waterman, the City was named after
Fairfield, Connecticut. Community amenities
include an enclosed regional shopping mall with
over one million square feet and 150 stores, an
adult recreation center, the 650-acre Rockville
Hills Park, and a weekly farmer's market in
season. Situated between two of the fastest
growing areas in California, Fairfield bridges the
gap between the San Francisco Bay Area and the
Sacramento metropolitan region. The Napa and
Sonoma wineries lie an hour to the west, and Lake
Tahoe two hours to the east.
400
500
600
700
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
523 501 510 527 534 541 553 559 571 585
Total Authorized Full-Time Employees
3
Popular Annual Financial Report for FY 2020-21
City Profile and Demographic Information
City and Demographic Information
Major Employers as of June 30, 2021
Trend Information / Comparison of Cities
Travis Air Force Base U.S. Military 12,864
County of Solano Government 3,133
NorthBay Healthcare Center Healthcare 2,824
Fairfield-Suisun Unified School District Education 2,235
City of Fairfield Government 602
Jelly Belly Candy Co.Manufacturing 426
Paradise Valley Estates Senior Housing 401
Fedex Ground Package System Inc #945 Transportation 396
Walmart Supercenter #2048 Retail 369
Partnership HealthPlan Insurance 350
See the City’s original budget for fiscal years 2020-21 and 2021-22 for more information regarding these trends
among comparable cities:
The City’s population growth rate is average.
The City’s per capita revenues from tax revenues is below average.
The City has had significant swings in its property and sales tax revenues,
building and foreclosure activity, unemployment rates, transit ridership
and golf rounds played.
The City’s pension obligation contribution rate has increased significantly over the past ten years.
The City’s Other Post-Employment Benefits (OPEB) liability is below the average.
The City has a low industrial vacancy rate, but a high office vacancy rate.
Fairfield is an ethnically diverse community (U.S. Census Bureau data from 2010 indicates that of the total
population, 16% is black, 15% is Asian, 27% is Hispanic, 35% is white and 7% is other/mixed). Local educational
institutions include Solano Community College, and campuses of St. Mary’s College, Golden Gate University,
University of Phoenix, Chapman University, California Maritime Academy, and Touro University. The University of
California Berkeley and Davis are within 40 minute drive.
Size:37.4 square miles
Population:118,005
Population Ranking CA Cities:55
Median Age:35 years
Per Capita Personal Income:$53,505
Unemployment Rate (EDD 10/21):7.8%
% of Pop. High School / College Degree:87.5% / 28.3%
Part 1 Crime Rate (2020):33.3 per 1,000 persons
Elevation:15 to 400 ft. above sea level
Fire Protection:ISO Rating 3 fire class
Sales Tax Rate:8.375%
Median Price of Home Sales:$570,000
4
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Economic Summary for FY 2020-2021 (as of June 2021)
Below is a summary analysis of some key indicators of the region’s economic environment.
Stock and Financial Markets
The value of the stock markets increased for the fiscal year. Interest rates declined during the year. The U.S. Economy is
recovering from the impact of the coronavirus pandemic, and industry analysts are forecasting a growth rate in GDP of
4.5% for 2022, an increase from an estimated increase of 3.8% for 2021.
Stock / Financial Markets Index / Rate Fiscal Year Change
Dow Jones 34,503 8,690
S&P 500 4,298 1,198
2 Year Treasury 0.3%0.1%
30 Year Home Mortgage 3.2%0.3%
Employment
The U.S. and regional job market continues to recover from the impact of the coronavirus pandemic on employment, as
evidenced by decreasing unemployment numbers in recent labor reports. Industry analysts expect the unemployment
rate to continue to decline in FY 21-22.
Unemployment Rate Fiscal Year Change
United States 5.9%-5.2%
California 8.0%-6.9%
Solano County 7.7%-5.9%
Fairfield 7.5%-5.9%
Inflation
Inflation continues at an increasing rate when compared to past years due to the recovery of the coronavirus pandemic,
representing some pressure from food prices and high energy prices. Oil prices have increased over the previous year,
resulting in gasoline prices increasing 70% in FY 20-21.
Inflation Rates Rate Fiscal Year Change
Bay Area CPI 3.2%1.6%
Turner Building CPI 1.3%2.3%
Personal Savings Rate 9.4%-9.3%
Oil Prices (as of 6/30/21)$73 $34
Rental Vacancy Rates
Fairfield’s office vacancy rates increased during the fiscal year by 20.6%. Fairfield’s industrial vacancy rates decreased
during the fiscal year and remained slightly above the County rate of 3.1%. Apartment vacancy rates and retail vacancy
rates for the Fairfield/Vallejo region increased slightly for the period.
Vacancy Rates Rate Fiscal Year Change
Office - Fairfield 27.2%2.2%
Industrial - Fairfield 3.4%-3.2%
Apartment - Fairfield/Vallejo Region 3.2%0.5%
Retail - Fairfield/Vallejo Region 11.6%0.8%
5
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Government-Wide Financial Analysis
2021 2020 $%
Current and other assets 458$ 425$ 33$ 8%
Long-Term Assets 537 528 9 2%
Total assets 995 953 42 4%
Total deferred outflows of resources 42 40 2 5%
Long term liabilites outstanding 325 319 6 2%
Current and other liabilities 88 69 19 28%
Total liabilities 413 388 25 6%
Total deferred inflows of resources 1 5 (4) -80%
Net position:
Net investment in capital assets 469 455 14 3%
Restricted 196 184 12 7%
Unrestricted (42) (39) (3) -8%
Total net position 623$ 600$ 23$ 4%
Change from 2020Totals - All Funds
Summary Statements of Net Position (in millions) - All Activities
•Current Assets – This includes cash and investments, and items such as receivables, inventory and prepaid items
expected to be converted into cash within one year. See the cash and investments section of this PAFR for additional
information on these assets.
•Long-Term Assets – Includes land held for redevelopment and capital assets consisting of land, buildings,
improvements, infrastructure, vehicles and equipment. These items provide services to the community and are not
available for future spending. See the capital assets section of the PAFR for additional information.
•Current Liabilities – Represents liabilities expected to be paid with cash within one year, including accounts payable,
interest payable and unearned revenue.
•Long Term Liabilities – Includes the outstanding obligations for the City, including the City’s long-term debt for
pensions, OPEB, compensated absences, claims outstanding and bonded debt. See the long-term obligations section
of this PAFR for additional details on these liabilities.
•Deferred Outflows/Inflows of Resources – Represents a consumption or acquisition of net position that applies to a
future period and will not be recognized as an outflow of resources (expense/expenditure) or an inflow of resources
(revenue) until that time.
•Net Position – Net investment in capital assets represents the City’s capital assets net of accumulated depreciation
and related debt. The restricted portion is subject to externally imposed restrictions for activities such as capital
projects, debt service, and community development and is not available for general operations. The unrestricted
portion is available for general operations. The deficit amount shown is due to the City’s outstanding pension
obligation.
The Statement of Net Position (Statement) presents information on the City’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may serve as
a useful indicator as to whether the City’s financial position is improving or weakening. The Statement reflects the
fact that the City’s net position increased by $23 million in the current fiscal year, due to increase in development of
new homes along with additional sales tax revenue due to the pandemic and citizens being at home. Below are
descriptions of items included in the Statements.
6
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Government-Wide Financial Analysis (Continued)
Description of Items in Statement of Activities
The following provides a brief description of the key items included in the Statement of Activities:
Revenues
Charges for Services – These revenues are collected for services to the public
such as recreational classes, water fees and transit fares.
Grants and Contributions – Represents funding received from other
governments and organizations for the purpose of financing the operating and
capital costs of a special program, such as the City’s affordable housing program.
Taxes – Includes property, sales and transaction, franchise, transient occupancy
and business license other taxes, which are described in more detail in a
subsequent section of this PAFR.
Expenses
Admin / Finance – Includes the City Council, City Manager, Risk Management, Human Resources, contract
City Attorney services, Information Technology, Finance and non-departmental programs.
Police and Fire – Includes Patrol, Dispatch, Investigations, Crime Prevention, Code Enforcement, Fire
Suppression, Prevention, and Inspection.
Public Works – Includes Maintenance of Trees, Streets, Parks, Facilities, Sewer, Building and Equipment,
Assessment Districts.
Community Development – Includes Planning, Building and Economic Development.
Housing – Includes Affordable Housing, Community Development Block Grant, Housing Authority and
Community Resources.
Recreation / Golf – Includes Adult and Youth Activities, Aquatics and the City’s two golf courses.
Water Treatment Plants – Accounts for the City’s two water treatment plants.
Transportation – Accounts for the operations of the City’s transit system.
The City’s Statement of Activities is shown on the following page (in millions) for FY 2021 and 2020. The Statement
of Activities summarizes by major revenues and expenses categories the receipt and expenditure of all funds during
the year for governmental and business-type activities. Business-type activities include the City’s Water Utility,
North Bay Water Treatment Plant, Golf and Transit Funds.
The total cost of all services this year was $239 million, with the amount for all governmental activities totaling $172
million and related program revenues covering $73 million (42%), resulting in a net cost of $99 million. The City paid
for the remaining portion of governmental activities with taxes (some of which could only be used for certain
programs) and other revenues, such as interest, general entitlements, the sale of property, and transfers. The cost
for business-type activities this year was $67 million. Revenues received to offset these activities include charges for
services of $56 million and $19 million from operating and capital grants and contributions. There was an increase
of $9 million in the net position for business-type activities (including investment earnings and transfers) of $152
million.
7
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
22%
12%
21%3%5%
6%
20%
6%
5%0%
Government-Wide Expenses by Source
$239 Million
Police
Fire
Public Works
Community Development
Recreation / Golf
Housing
Water treatment plants
Transportation
Admin / Finance
Interest on debt
23%
14%
19%
14%
19%
6%5%
Government-Wide Revenues by Source
$262 Million
Charges for services
Operating grants/contributions
Capital grants/contributions
Property taxes
Sales/transaction taxes
Other taxes
Other
2021 2020 $%
Revenues:
Program Revenues:
Charges for services 61$ 56$ 5$ 9%
Operating grants and contributions 37 27 10 37%
Capital grants and contributions 50 26 24 92%
General Revenues:
Property taxes 37 35 2 6%
Sales and transaction taxes 50 43 7 16%
Other taxes 14 15 (1) -7%
Other revenues 13 19 (6) -32%
Total revenues 262 221 41 19%
Expenses:
Administration 11 13 (2) -15%
Finance 2 2 - 0%
Police 53 50 3 6%
Fire 28 25 3 12%
Public works 49 45 4 9%
Community development 7 16 (9) -56%
Housing 15 15 100%
Parks and recreation 6 8 (2) -25%
Interest on debt 1 1 - 0%
Water utility 37 37 - 0%
North bay treatment plant 10 9 1 11%
Transportation 14 13 1 8%
Golf courses 6 4 2 50%
Total expenses 239 223 16 7%
Increase (decrease) in net position 23 (2) 25 -1250%
Net position July 1, as restated 600 602 (2) 0%
Net position June 30 623$ 600$ 23$ 4%
Total - All Funds Change from 2020
Summary Statements of Activities (in millions)
8
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Financial Overview – General Fund
The General Fund is the main operating fund of the City. General Fund revenues exceeded the final budget by $9.5
million or 9%, due mainly to higher than anticipated collections of the City’s sales and transactions and use taxes,
higher assessed property valuations, and an increase in development-related revenues. General Fund expenditures
were under budget by $4 million or 3.5%, due mainly to City staff vacancies, offset by increased fire personnel
overtime costs.
$ Variance
Positive 2020
Budget Actual (Negative)Actual
Revenues:
Property taxes 36,341,000$ 36,479,332$ 138,332$ 34,836,685$
Sales tax 23,503,000 26,261,101 2,758,101 23,170,304
Transaction and use taxes (Measure P)20,772,000 23,328,607 2,556,607 19,704,286
Utility and franchise taxes 9,385,000 9,618,196 233,196 9,481,483
Other taxes 4,920,000 5,771,919 851,919 5,643,063
Licenses, permits and fines 2,659,000 4,078,924 1,419,924 2,920,083
Intergovernmental 431,984 573,360 141,376 605,418
Charges for services 4,886,867 6,310,413 1,423,546 6,171,143
Investment income 687,371 1,348,034 660,663 2,328,286
Miscellaneous 2,402,117 1,758,025 (644,092) 1,483,304
Total Revenues 105,988,339 115,527,911 9,539,572 106,344,055
Expenditures:
Current:
Administration 4,225,842 3,817,451 408,391 5,310,485
Finance 1,778,909 1,398,721 380,188 1,019,171
Police 47,481,857 47,189,271 292,586 44,173,273
Fire 22,926,183 24,600,363 (1,674,180) 21,575,867
Public works 13,181,048 13,262,014 (80,966) 11,878,627
Parks and recreation 7,567,747 4,719,771 2,847,976 6,121,707
Community development 4,600,569 4,108,255 492,314 3,314,942
Non-departmental 8,937,717 9,882,129 (944,412) 8,737,622
Total Expenditures 110,699,872 108,977,975 1,721,897 102,131,694
Excess revenues over expenditures (4,711,533) 6,549,936 11,261,469 4,212,361
Other Financing Sources (Uses):
Transfers in 1,248,863 1,248,863 - 811,291
Transfers out (4,640,406) (4,623,503) 16,903 (3,612,025)
Total other financing sources (uses)(3,391,543) (3,374,640) 16,903 (2,800,734)
Net change in fund balance (8,103,076) 3,175,296 11,278,372 1,411,627
Fund Balance - Beginning of Year 49,119,997 49,119,997 - 47,708,370
Fund Balance - End of Year 41,016,921$ 52,295,293$ 11,278,372$ 49,119,997$
2021
9
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Financial Long Term Outlook – General Fund
The General Fund’s major revenue sources
include property and sales / Measure P local
taxes, utility users and franchise taxes, transfer
and vehicle taxes and hotel taxes. Together
these groups comprise 87% of total budgeted
revenues for FY 20-21. The remaining 13%
includes revenues such as licenses and permits,
charges for services, miscellaneous income,
interest/rental income, and transfers.
A significant portion of the City’s General Fund
revenue is dependent on Measure P, a 1% local
transaction and use tax, which went into effect
April 1, 2013 and will expire in 2033. Measure P
revenue stabilized the General Fund and has
enabled the City to provide services that keep
the community safe and address infrastructure
needs.
The City was able to maintain General Fund
reserves at the City Council’s established level
of 20% of expenditures during FY 20-21, and to
present a balanced budget for the General Fund
for FY 21-22.
The below table provides an overview of the
City’s General Fund reserve levels over the next
four years. The City is currently projecting
several years of deficits, primarily due to rising
pension costs combined with the loss of
revenues resulting from COVID-19.
$47
$25
$13
$15
$5 $5 $4
General Fund Expenditures by Department
FY 2020-21
(in Millions)
Police 42%
Fire 22%
Public Works 11%
Admin/Finance/Non-Dept
13%
Transfer Out 4%
Parks and Recreation 4%
Community Development
4%
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $116.8 $114.0 $118.3 $123.3 $125.8
Expenditures / Transfers Out 113.6 120.9 121.3 122.1 124.6
(Deficit)/Surplus for Year 3.2 (6.9) (3.0) 1.2 1.2
Available Ending Reserves $41.7 $34.8 $31.8 $33.0 $34.2
% of Expenditures 37% 29% 26% 27% 27%
General Fund Five Year Trend through Fiscal Year 2024-25
(In Millions)
$36
$26
$23
$10
$6 $14
General Fund Revenues by Category FY
2020-21
(in Millions)
Property Taxes 32%
Sales Tax 22%
Measure P Taxes 20%
Utility / Franchise Taxes
9%
Vehicle / Other Taxes5%
Other 12%
10
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Government-Wide Financial Analysis General Fund Major Revenue Sources
• • 4
Sales Taxes - Sales and local sales transaction taxes are the City’s other major sources of revenue. The sales tax rate
in Solano County is 8.375%, of which 1% is the "local" or City share and 1% reflects the local use tax. Retail sales
nationwide for the year ended June were up 18.9% over the same month in the previous year. The chart below
shows the change in sales tax for the past 10 years, including a comparison of FY 19-20 to FY 20-21 where the City’s
sales tax collections were up 13%. Sales tax and Measure P taxes are projected to increase in FY 2021-22 by 3%, and
increase by 4% in FY 2022-23 largely due to the opening of auto dealerships, fuel sales, and increased activity in
building and construction.
Property Taxes - Pursuant to Proposition 13, passed by California voters in 1978, countywide property taxes are set
at 1% of assessed value. Upon change of ownership, the property value will be reassessed to the current market
value (sales price). The City receives approximately 17% of the 1% countywide property tax collected in the
City. Property taxes are the largest source of revenue to the General Fund since the State passed legislation
regarding the collection of the Vehicle License Fee previously collected separately from property taxes. Property
taxes, excluding Motor Vehicle in Lieu Tax are approximately 21% of the City’s total General Fund revenues for FY
20-21. The collection of secured property taxes are expected to increase by approximately 4% for FY 21-22 and for
future years, resulting from the increase in assessed values for properties within the city. It should be noted that
residential properties represent approximately 70% of the total assessed property valuation within the City.
13%
-2%
6%
2%
-2%
2%
-2%
7%
9%
12%
5%
-5%-3%-1%1%3%5%7%9%11%13%15%
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Average
% C
h
a
n
g
e
i
n
S
a
l
e
s
T
a
x
R
e
v
e
n
u
e
1%
7%
6%
7%
7%
6%
6%
9%
9%
-2%
6%
-4%-2%0%2%4%6%8%10%
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Average
% C
h
a
n
g
e
i
n
A
s
s
e
s
s
e
d
V
a
l
u
a
t
i
o
n
11
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Financial Long Term Outlook – Other Funds
The following is a brief summary of the forecasts for the City’s enterprise and internal service funds, for
which detailed information can be found in the City’s FY 20-21 ACFR:
The Water Utility operates two treatment plants, the Waterman Plant
located off of Vista Grande and the North Bay Water Treatment Plant
(NBR) located off of Peabody Road. The Water Funds’ forecast
(excluding NBR) through FY 24-25 is below. The deficits shown below
are due to the use of existing capital reserves for one-time projects
including the Water Ozone Improvements project and North Texas
Street water main replacement. The Water Utility will continue to
monitor its revenues to maintain adequate reserve levels needed for future capital replacement
requirements and maintain its required debt service coverage ratios required under its outstanding
bonds:
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $45.1 $38.9 $40.3 $41.0 $41.9
Expenses / Transfers Out 37.5 49.0 45.5 39.8 39.6
(Deficit)/Surplus for Year 7.6 (10.1) (5.2) 1.2 2.3
Ending Working Capital 72.4 62.3 57.1 58.3 60.6
Water Funds Five Year Trends through FY 2024-25
(in millions)
These funds account for the operations of the City’s Paradise Valley and
Rancho Solano golf courses. The total number of taxable rounds
increased at the City’s golf courses by 46% during the past fiscal year. The
revenues for the Golf Course Funds have performed well during the
coronavirus pandemic since it is one of the few sports that can be played
socially distanced. Despite cost saving measures implemented by City staff
in previous years, both Paradise Valley and Rancho Solano require
financial support from the City. In addition, the clubhouses and other
ancillary buildings are showing their age and are in need of
rehabilitation. The City’s forecast for its Golf Funds through FY 24-25 is shown below:
20-21 21-22 22-23 23-24 24-25 Trend
Revenues $6.5 $5.6 $5.8 $5.9 $6.0
Transfer In from Admissions Tax 0.0 0.6 0.6 0.0 0.0
Expenses / Transfers Out 5.5 6.8 6.0 5.6 5.6
(Deficit)/Surplus for Year 1.0 (0.6) 0.4 0.3 0.4
Ending Working Capital 0.9 0.3 0.7 1.0 1.4
Golf Funds Five Year Trends through FY 2024-25
(in millions)
12
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
140%104%
340%
30%0%
50%
100%
150%
200%
250%
300%
350%
400%
Workers'Compensation GeneralLiability OPEB CompensatedAbsences
% of Liability Funded
Financial Long-Term Outlook – Other Funds (Continued)
These funds account for the operations of the City’s fixed route and
demand response bus service, which receive grants for its operations
and capital needs from federal, state and local governments. The
forecast for the Transit Division projects that it will have sufficient
funding to satisfy operational and bus replacement needs. Transit relies
heavily on grants to satisfy its equipment replacement and capital
needs, and there is no guarantee that these grants will be available in
the future. In the event grant funds are not available, Transit will have
to explore alternatives to reduce operating expenses and/or grow
revenues. The City’s forecast for its Transit Fund through FY 24-25 is
shown below, which assumes that grant funds will be received for the
replacement of the bus fleet:
(in millions)
20-21 21-22 22-23 23-24 24-25 Trend
Revenues / Transfers In $12.4 $23.7 $23.6 $19.4 $20.2
Expenses / Transfers Out 13.7 23.7 23.6 19.4 20.2
(Deficit) / Surplus for Year (1.4) 0.0 0.0 0.0 0.0
Ending Working Capital $0.2 $0.2 $0.2 $0.2 $0.2
Transit Fund Five Year Trends through FY 2024-25
These funds account for many services provided to all
departments within the City, including the funding for
insurance and compensated absences. Since the City is
self-insured, it is prudent to fund a portion or all of the
liability owed over time so other funds are not heavily
affected in any one year. See Notes 9 and 13 in the
City’s FY 20-21 ACFR for the actuarial assumptions
used. The major self-insurance liabilities, other post-
employment benefits (OPEB), and compensated
absences with their corresponding funding reserves as
of June 30, 2021 are listed below:
Workers'
Compensation
General
Liability
Other Post-
Employment
Benefits (OPEB)
Compensated
Absences
(Governmental
Activities only)
Cash Reserve $15,934,496 $3,748,385 $1,553,615 $5,570,126
Actuarial Liability $11,398,421 $3,597,828 $457,067 $18,815,275
% of Liability Funded 140%104%340%30%
13
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Cash and Investments (As of June 2021)
The City's investments listed below are in accordance with City's investment policy, which emphasizes the safety,
liquidity and return of its investments. The portion of the portfolio not invested in the State Local Agency Investment
Fund (LAIF) is invested with the City’s two investment advisors, Public Financial Management (PFM) and Chandler
Asset Management (Chandler). The City also held $13.0 million in bank balances and $15.7 million in bond reserves in
its California Asset Management Program (CAMP) portfolio as of 6/30/21. All of the City’s rated investments are
rated “A” or higher at 6/30/21. See Note 4 in the City’s FY 20-21 ACFR for additional information regarding the City’s
investments.
31%
12%48%
1%
7%
Investment Type
Agencies Supranationals
MTN Treasury
Corporate CDs / MM
$33 , 9%
$87 , 24%
$77 , 21%
$71 , 20%
$28 ,
8%
$64 , 18%
By Fund (In Millions)
General Fund Special Revenue
Water Utility Internal Service
NBR Other
$325
$299
$328
$347
$290 $305 $320 $335 $350
Ju
n
2
0
Oc
t
2
0
Fe
b
2
1
Ju
n
2
1
Portfolio Size (In Millions)
Grand Percent
Summary by Maturity LAIF CAMP Chandler PFM Total of Total
0-1 month $72,005,974 $1,854,905 $2,346,568 $256,102 $76,463,549 22%
1-12 months 25,840,905 17,852,632 43,693,537 13%
1-2 years 38,619,875 64,100,561 102,720,436 30%
2-3 years 36,782,230 44,415,518 81,197,748 23%
3-4 years 22,067,685 9,189,057 31,256,742 9%
4-5 years 12,046,611 12,046,611 3%
Total Market Value $72,005,974 $1,854,905 $137,703,874 $135,813,870 $347,378,623 100%
Total Amortized Cost 72,000,000 1,854,905 135,496,284 135,181,013 344,532,202
Amount Market Value Over / (Under) Cost $5,974 $0 $2,207,590 $632,857 $2,846,421
Estimated GASB 31 YTD Market Value Entry ($239,666)$0 ($2,075,434) ($2,088,337) ($4,403,437) -1.28%
% of Portfolio 20.7% 0.5%39.6% 39.1% 100.0%
Average Maturity (years)0.81 0.14 2.16 1.91 1.77
Investment ManagersMoney Market Funds
Grand Percent
Summary by Instrument Type LAIF CAMP Chandler PFM Total of Total
Agencies $9,483,187 $59,587,967 $40,528,154 $109,599,308 31%
Treasury 50,555,394 55,067,149 59,662,612 165,285,155 48%
Medium Term Notes (MTN)20,527,531 22,495,030 43,022,561 12%
Certificate of Deposits (CDs)7,531,825 999,930 10,632,143 19,163,898 6%
Commercial Paper (CP)4,133,143 4,133,143 1%
Supranationals 2,239,829 2,239,829 1%
Money Market (MM) / Other 302,425 $1,854,905 1,521,297 256,102 3,934,729 1%
Total Market Value $72,005,974 $1,854,905 $137,703,874 $135,813,870 $347,378,623 100%
Yield to Maturity 0.26% 0.05%1.33% 0.66% 0.84%
Trailing 12 month yield 0.52% 0.15%1.54% 1.04% 1.19%
Money Market Funds Investment Managers
14
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Long-Term Obligations
The City continues to maintain good credit ratings on all of its debt issues, as evidenced by the AA rating assigned by
Standard and Poor’s to its Pension Obligation Bonds (with AAA being the highest rating). The graph below
summarizes the City’s long-term obligations (in millions). The City’s net OPEB liability, covering retiree health and
dental payments is $.5 million. The City set aside $3.0 million in an internal service fund and in March 2018, the City
established an irrevocable trust to help offset this liability. The City’s net OPEB liability relates to a closed plan with
24 members. The actuarial study prepared in the analysis of this obligation assumes a long-term rate of return of
5.85%. The health costs will decrease annually from 5.8% until the rate reaches 4.0%. The dental rate of 4% will
increase annually. Annual payments for FY 20-21 totaled $240,812. See Note 13 in the City’s FY 20-21 ACFR for more
information regarding the City’s net OPEB Liability.
The City’s total net pension liability with CalPERS for FY 20-21 was $198 million, based upon a measurement date of
June 30, 2020. This represents a 72% funding of the total pension liability of $696 million. In addition, the City has
pension obligation bonds totaling $29.2 million of principal and interest with annual debt service of $3.0 million.
See Note 12 of the City’s FY 20-21 ACFR for more information regarding the City’s pension obligation.
The City’s long-term obligations of governmental activities show an increase during FY 20-21 with an outstanding
balance of $240 million as of June 30, 2021. The increase of $11 million to the net pension liability was due to
CalPERS lowering the discount rate. Long-term obligations for business-type activities decreased in FY 20-21 by $2
million, to $98 million, a result of scheduled annual debt service payments. Refer to Note 8 in the footnote section
of the City’s FY 20-21 ACFR for a more detailed listing of the City’s outstanding debt and Notes 18 and 19 in the
City’s FY 20-21 ACFR for more information on Successor Agency debt as well as non-commitment debt.
59%9%
20%
5%4%
1%2%
Pension
Pension Bonds
Water
Leave
Insurance
Golf
Other
Long Term Debt by Type
2021 2020 2021 2020 2021 2020
General Obligation Bonds 7$ 7$ 7$ 7$
Pension Obligation Bonds 29 31 29 31
Utility-Water Revenue Bonds 67$ 71$ 67 71
Recreational Revenue Bonds 1 2 1 2
Long-Term Notes Payable 1 - 1
Compensated Absences 19 18 2 2 21 20
Claims and Judgments 15 15 15 15
Net OPEB Liability 1 - 1
Net Pension Liability 170 159 28 25 198 184
Total Indebtedness 240$ 232$ 98$ 100$ 338$ 332$
Governmental Activities Business-Type Activities Total
Summary of Long-Term Indebtedness (in millions)
15
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Capital Assets
For FY20-21, the value of the City’s capital assets at cost before depreciation was $1.1 billion, with the changes detailed
by category in the table below. Major capital projects in FY20-21 include:
• West Texas Gateway Project - $1.3
million
• North Texas Water Main
Replacement - $6.0 million
• Various Street Resurfacing and
Pavement Maintenance Projects -
$3.3 million
• Allan Witt Community Park
Projects - $3.6 million
Asset Type
Original Cost as
Reported 6/30/2021 % of Total
Net Additions
(Deletions) for
Fiscal Year
Annual
Depreciation
at Cost
Governmental Activities
Land / Construction in Progress 59,596,247$ 5% (16,833,698)$ N/A
Buildings / Improvements 293,349,118 27% 22,066,814 7,520,535
Vehicles and Equipment 53,692,802 5%6,975,712 2,902,602
Infrastructure
Streets 187,598,050 17%6,127,411 4,215,340
Storm Drains 49,268,247 5%1,780,923 852,795
Sewer Pipes/Pump Stations 16,137,335 1%563,887 286,059
Streetlights/Traffic Signals 28,136,797 3%1,893,413 464,854
Bridges/Retention Basins 30,356,768 3%350,452 513,279
718,135,364 66% 22,924,914 16,755,464
Business-type Activities
Water Utility 230,210,068 21%7,704,453 6,078,005
North Bay Treatment Plant (NBR)67,048,838 6%2,105,975 1,613,712
Transit 37,083,847 3%154,240 1,418,907
Golf Land and Improvements 31,321,078 3%77,609 299,321
365,663,831 33% 10,042,277 9,409,945
Total Capital Assets 1,083,799,195 32,967,191$ 26,165,409$
Less Accumulated Depreciation (547,071,362)
Net Capital Assets 536,727,833$
6%
35%
9%
48%
2%
Fixed Assets by Type -At Cost
Land / Non Depreciable
Buildings / Improvements
Equipment / Vehicles
Infrastructure
Construction in Progress
16
Popular Annual Financial Report for FY 2020-21
Financial and Budgetary Information
Capital Improvement Plan
Some of the major projects for fiscal year 2021-22 (and their estimated costs) include the following:
• Various City Park Improvements (Allan Witt, Linear Trail) ($3.8 million), which includes improvements to play areas
and skate park, as well as improvements to the Linear Park Trail to add amenities. This project is funded with AB
1600 Park funds and Quimby Act funds.
• North Texas Water Main Replacement ($6.0 million). This project is funded with water fees.
• Various Street Resurfacing and Pavement Maintenance Project ($4.0 million), which includes East Travis Blvd
(North Texas to Sunset, and Air Base Parkway (Peabody Rd to Air Force Base). This project is funded primarily with
General and gas tax funds.
• West Gateway Project ($2.7 million) which will modify the eastbound I-80 off-ramp to provide direct bus access to
the Fairfield Transportation Center (FTC), modify three signalized intersections along the Beck Avenue
corridor. This project is funded with AB 1600 Streets funds and State and regional grants.
The City’s adopted capital improvement program (CIP) for FY 21-22 totals $62.9 million. The CIP is designed to meet
community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality
of life, including Fire Station 39, Fire Station 36, Westnet Alerting System, West Texas Gateway Project, Annual
Street Pavement Maintenance, Water Ozone Improvements, North Texas Water Main Replacement, New Enterprise
Resource Planning (ERP) System, as well as improvements at Allan Witt, Linear Trail and other community and
neighborhood parks. It should be noted that there is approximately $82 million of unfunded capital and maintenance
projects outstanding over the next five years, the largest being Streets and Public Buildings.
27%
1%26%8%
9%
8%
21%
Capital Improvement Plan FY 2021-22
(In millions)Water/NBR $16.7
Streets $0.4
Transit $16.5
Technology $5.0
Parks $5.6
Public Buildings $5.2
Other $13.5
17