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Definition Of Primary Government : The City Of Bakersfield Essay

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1. Introductory Section
Definition of primary government:
The City of Bakersfield is located south of the San Joaquin Valley and is approximately 100 miles north of Los Angeles. The City had an estimated population of 367, 315 as of January 2014.

Government’s Financial Condition as of the balance sheet date:
According to the letter of transmittal provided in the CAFR the finance director states the city is showing signs of recovery after the recent recession. The letter states that the City has been really careful managing their budget and ensuring they have a cushion to rely on in case of emergencies.
Significant changes in financial conditions:
Based on the letter of transmittal some of the most significant changes in financial conditions are the growth of property and sales tax revenue. These two areas not only had growth for the 2013-2014 fiscal year but are expected to have greater growth for the 2014-2015 fiscal year. Secured property tax revenues grew 3.5% in the 2013-2014 fiscal year and are expected to increase about 5% for the next fiscal year. Also the sales tax revenue grew by 2.8% and they estimate it will grow by an additional 3% for the next fiscal year. Another issue that affects the financial condition of the City of Bakersfield is the higher retirement costs that will increase due to the changes in California Public Employees’ Retirement System’s (CalPERS). They City has been setting funds aside to be able to cover the cost when the full implementation

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