We’re near the end of 2024 and obtaining fiscal data for 2019 has been like pulling teeth.
There are no penalties for providing untimely Annual Comprehensive Financial Reports (ACFRs) to a city’s residents. With homeownership becoming a massive investment for most Californians, it seems odd that a higher priority is not placed on publishing fiscal reports for those paying substantial real property taxes.
With 58 unique counties in California, the fun job is breaking its 482 cities into manageable regions. For Central California, there are 78 cities in the swath that goes north of the Southern California border established by the northern borders of San Luis Obispo, Kern, and San Bernardino Counties. They then circle around the Bay Area counties in Caltrans’ District 4 and include the Gold Country counties below the counties of Sacramento and El Dorado. Using the Caltrans’ district areas, this central zone includes the top half of Areas 5, 6 and 9, and Area 10.
The counties in this section of the Golden State, and the number of incorporated cities they contain, are Alpine (0), Amador (5), Calaveras (1), Fresno (15), Inyo (1), Kings (4), Madera (2), Mariposa (0), Merced (6), Mono (1), Monterey (12), San Benito (2), San Joaquin (7), Santa Cruz (4), Stanislaus (9), Tuolumne (1), and Tulare (8).
Providing an accurate financial ranking for an area is only possible if all the ACFRs are available. So, one laggard city can hold up an entire region. Amador City, with around a couple hundred residents, hasn’t audited its financial statements in years. On Dec. 18, the city provided unaudited reports. Merry Christmas.
But its annual fiscal reports did not follow the guidelines for ACFR preparation, perhaps the only city in California with this distinction.
The Treasurer of Amador City, Holly Groth, shared positive news about the most recent fiscal year in an email: “The [fiscal year] ending 2024 financial statements are currently being audited and should be complete near the end of January.”
But, five years later, we finally have a complete listing for 2019 for this region and do not anticipate receiving adjusted ACFRs of a significant nature. So, let’s jump in.
With a significant number of cities making big moves in the rankings provided in the graph below, let’s review why for the benefit of its residents. This will allow them to engage in specific conversations with their elected city council members.
Kingsburg, also in Fresno County, followed the same strategy, reducing restricted net assets by $4.9 million and increasing its unrestricted net assets by $5.4 million. The reclassification raised its ranking by 16 places.
Marina, in Monterey County, moved up 11 places the old fashioned way. It had a very good tourism season in 2019 and kept expenditures in check.
Angels Camp, the only city in Calaveras County, moved up 10 places thanks to $545,676 in excess revenues over expenditures.
Mammoth Lakes, the only city in Mono County, moved up 14 places thanks to revenues exceeding expenditures by $14.8 million, thus improving its unrestricted net position by $8.7 million. Not bad for a city that filed for Chapter 9 bankruptcy in 2012 due to a $42 million judgment against this popular Sierra ski and mountain biking destination.
Bishop, the only incorporated city in Inyo County, was able to reduce its liabilities by $2.8 million and improved by 10 places. Jackson, in Amador County, moved up 10 places by reclassifying $6.3 million from restricted to unrestricted.
The city of Gonzales, in Monterey County, saw its unrestricted net position for governmental activities go down by $388,628, thanks to expenditures in excess of revenues of $888,628, offset by a reduction in its unfunded liability for pensions of $525,212. It dropped 8 places.
The city of Waterford, in Stanislaus County, saw its unrestricted net position decrease by nearly $1 million. Its revenues exceeded expenditures by $342,000, but it reclassified $780,000 into restricted funds and shifted $450,000 in long-term liabilities from its business-type activities to governmental activities. The net result dropped it seven places.
Lemoore in Kings County moved down 10 places for placing $3.6 million more in restricted net assets.
Tracy in San Joaquin County saw its unrestricted net deficit double, growing by $11.9 million. Its revenues in excess of expenditures was $22.8 million, but it moved $15.6 million into restricted accounts, invested $17.1 million in capital assets and saw its pension liabilities grow by $2.1 million. It dropped nine places.
Ione in Amador County dropped 40 places for moving $7.9 million into restricted funds. Nearby Sutter Creek, just 2 miles down the road from Amador City on Old Highway 49 in the Gold Country, saw its unrestricted net deficit double, growing by $1.2 million, even while its revenues exceeded expenditures by $3.7 million. Its investment in capital assets of $5 million explains why and dropped it 11 places.
Del Rey Oaks in Monterey County dropped nine places by reclassifying more than $4 million into restricted accounts. Thanks to its small population, its per capita decreased enough to drop it 10 places and put it in last place.
The good news is that California is perhaps days away from having almost all of its 482 cities providing their annual audits for the fiscal year ending June 30, 2019. The bad news is having to wait five years is inexcusable.
