Atwater City Council
April 10, 2023

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Atwater, California (City)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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 generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 31, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2023

City of Atwater
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2022
Assistance State
Listing Pass-through Program
Grantor Agency and Grant Title Number Number Expenditures U.S. Department of Transporation
Passed Through State of California Department of Transportation Highway Planning and Construction (Federal-Aid Highway Program) Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(028) 8,581 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(031) 14,602 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(021) 1,052 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(032) 34,396 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(030) 33,165 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(029) 1,777 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(026) 36,812 Total Highway Planning and Construction (Federal-Aid Highway Program) 130,385
Total Department of Transportation 130,385
Total Highway Planning and Construction Cluster 130,385 Other Programs
Department of Homeland Security
Direct Programs
Disaster Grants-Public Assistance (Presidentially Declared Disasters) 97.036 n/a 4,681 Total Disaster Grants-Public Assistance (Presidentially Declared Disasters) 4,681 Total Department of Homeland Security 4,681
United States Department of Justice
Direct Programs
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-DJ-BX-0128 4,745 Total Edward Byrne Memorial Justice Assistance Grant Program 4,745 Total United States Department of Justice 4,745
Department of Transportation
Passed Through California Office of Traffic Safety
National Highway Traffic Safety Administration (NHTSA) Discretionary Safety Grants and Cooperative Agreements 20.614 n/a 37,909 Total National Highway Traffic Safety Administration (NHTSA) Discretionary Safety Grants and Cooperative Agreements 37,909 Total Department of Transportation 37,909
Department of Health and Human Services
Direct Programs
Low-income Household Water Assistance Program 93.499 n/a 3,649 Total Low-income Household Water Assistance Program 3,649 Total Department of Health and Human Services 3,649
Department of the Treasury
Direct Programs
Coronavirus State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 1,394,879 Passed through State Water Resources Control Board
Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 273,466 Coronavirus State and Local Fiscal Recovery Funds 21.027 5B24NP00017 333,487 Total Coronavirus State and Local Fiscal Recovery Funds 2,001,832 Total Department of the Treasury 2,001,832
Total Other Programs 2,052,816
Total Expenditures of Federal Awards $ 2,183,201
The accompanying notes are an integral part of this schedule 6

City of Atwater
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2022
A. Reporting Entity
The financial reporting entity consists of (a) the primary government, City of Atwater, California (City), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

B. Basis of Accounting
Funds received under the various grant programs have been recorded within the general, special revenue, and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital projects funds. Expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred.

C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements The accompanying Schedule presents the activity of all federal financial assistance programs of the City.

Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule.

The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.

D. Pass-Through Entities’ Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

E. Indirect Costs
The City did not elect to use indirect costs.
7

City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section I – Summary of Auditor’s Results
Financial Statements
Types of auditors’ report issued on whether financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516(a)? No
Identification of major programs:

Assistance Listing
Number(s) Name of Federal Program or Cluster Expenditures

21.027 Coronavirus State and Local Fiscal Recovery Funds 2,001,832 $ Total Expenditures of All Major Federal Programs $ 2,001,832 Total Expenditures of Federal Awards $ 2,183,201
Percentage of Total Expenditures of Federal Awards 92%
Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under
section 200.520? No
8

City of Atwater
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2022
Section II – Current Year Findings
A. Financial Statement Audit
No current year financial statement findings.

B. Federal Award Program Audit
No current year federal award program audit findings.

Section III- Prior Year Findings
A. Financial Statement Audit
2021-001 – New Vendor Set up and Segregation of Duties (Significant Deficiency) Criteria:

An effective internal control system over financial reporting requires that sufficient segregation of duties exist in between vendor set up and accounts payable processing.

Condition:

The employee who has access to set up and edit vendors in the system also has access to accounts payable in the General Ledger and can perform check runs. The Finance Director performs only a high-level review on the check register, which is also certified by City Council. A fictitious vendor or improper change to an existing vendor would be difficult to detect.

Cause:

Duties in accounts payable are not adequately segregated.

Effect:

Unauthorized disbursements can be made through fictitious vendors or by making improper changes to existing vendor profiles.

Recommendation:

We recommend that the City print a change report from the accounts payable system for independent review, or that the check register with vendor information be reviewed in detail. We also recommend that the reviewers sign on the check log after each check run.

Management Response:

Beginning September 2021, the City of Atwater has segregated the vendor setup duty. In the interim, the Finance Director adds new vendors and updates vendor information. The Accounting 9

City of Atwater
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2022
Section III- Prior Year Findings, Continued
Technician who performs the check run does not add or update vendors in the Accounts Payable system. If the Finance Department is ever short staffed and in need of the Accounting Technician to perform both duties of adding vendors and performing check runs, management will be able to review the audit trail during that period of time. The City of Atwater has committed to this segregation of duty by budgeting a full time second Accounting Technician in FY 22-23.

The Finance Director has been reviewing the check register in detail on every warrant run. This includes reviewing the appropriate approvals on invoices for each vendor being paid. In addition to a fictitious vendor, a fictitious invoice and approvals will need to be created in order to pass the checks on the warrant run. Starting FY 21-22, the Finance Director has been signing off and dating the warrant run that includes all checks. The Finance Director also reviews all vendor change trail.

The City of Atwater management’s intent is to continue these checks and segregation of duties. We consider the procedures mitigated the deficiency without the second Accountant Technician.

Status:

Implemented.

B. Federal Award Program Audit
No prior year federal award program audit findings.
10

Atwater, California
Annual Financial Report
For the year ended June 30, 2022
Prepared by:

Finance Department

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v List of City Officials ................................................................................................................................................... viii City of Atwater Organizational Chart ....................................................................................................................... ix

FINANCIAL SECTION
Independent Auditor's Report ................................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ......................................... 5 Basic Financial Statements:

Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................................... 25 Statement of Activities .......................................................................................................................................... 26 Fund Financial Statements
Governmental Funds:

Balance Sheet ...................................................................................................................................................... 30 Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Position ................................................................................................................... 31 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 32 Reconciliation of Fund Basis Balance Sheet
to Government-wide Statement of Activities ............................................................................................. 33 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – General Fund ............................................................................ 34 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Measure H Special Revenue Fund ........................................ 35 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Measure V Special Revenue Fund ......................................... 36 Proprietary Funds
Statement of Net position – Proprietary Funds .......................................................................................... 37 Statement of Revenues, Expenses, and Changes in Fund Net position ................................................. 38 Statement of Cash Flows ................................................................................................................................ 39

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
ii
FINANCIAL SECTION, Continued
Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 39 Statement of Changes in Fiduciary Net Position........................................................................................ 40 Notes to the Basic Financial Statements ................................................................................................................ 43 Required Supplementary Information
Schedule of the City’s Proportionate Share of the
Net Pension Liability and Related Ratios – Last 10 years ............................................................................... 90 Schedule of Pension Contributions – Last 10 Years ............................................................................................ 92 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years .................................... 94 Schedule of OPEB Contributions – Last 10 Years ............................................................................................... 95 Other Supplementary Information
Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................................................... 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 99 Non-Major Special Revenue Funds:

Combining Balance Sheet ................................................................................................................................... 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 104 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Police Grants Fund ........................................................................................................................................... 108 Gas Tax Fund .................................................................................................................................................... 109 Local Transportation Fund ............................................................................................................................. 110 Facility Impact Fee Fund ................................................................................................................................. 111 Community Development Block Grants Fund ............................................................................................. 112 CDBG Program Income Fund ........................................................................................................................ 113 Home Investment Partnership Fund ............................................................................................................. 114 Housing Authority Fund ................................................................................................................................ 115 Narcotics Program Fund ................................................................................................................................. 116 Neighborhood Stabilization Fund ................................................................................................................. 117 Applegate Interchange Fund .......................................................................................................................... 118 Regional Surface Transportation Program Fund ......................................................................................... 119 ARPA Grant Fund ............................................................................................................................................ 120 Pension Rate Stabilization 115 Trust Fund ................................................................................................... 121 General Plan Update Grant Fund .................................................................................................................. 121

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
iii
FINANCIAL SECTION, Continued
Combining Balance Sheet – Maintenance District Special Revenue Funds ...................................................... 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Maintenance District Special Revenue Funds ................................................................. 132 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Maintenance District Special Revenue Funds .............................................................. 139 Internal Service Funds:

Combining Statement of Net Position .............................................................................................................. 172 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 173 Combining Statement of Cash Flows ............................................................................................................... 174 Custodial Funds:

Combining Statement of Fiduciary Net Position ........................................................................................... 175 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 176 Schedule of Debt Service Coverage ........................................................................................................................ 177

iv
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City of Atwater

OFFICE OF THE CITY MANAGER
750 BELLEVUE ROAD
ATWATER, CA 95301
(209) 357-6201
March 31, 2023
Honorable Mayor and Members
of the Atwater City Council
We are pleased to submit the City of Atwater’s Annual Financial Report for the fiscal year ended June 30, 2022. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards. It is the policy of the Council that a licensed certified public accountant conducts an annual audit at the end of each fiscal year and issue a complete set of financial statements to be submitted to them.

Management is responsible for the completeness and reliability of the information contained in this report, based on a comprehensive framework of internal control that has been established for this purpose. We believe the data presented in this report is accurate in all material respects and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included.

Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.

While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to the citizens of the City of Atwater, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.

The City’s financial statements have been audited by Badawi & Associates, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatements.

The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. v Page 167 of 349
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

Profile of the City of Atwater
The City of Atwater was incorporated in 1922 and is located on State Route 99 in Merced County, California in a 6 square mile area approximately 6 miles west-northwest of Merced. The City has a current population of 31,978. The City of Atwater operates under a Council-Manager form of government and provides municipal services that include public safety, public works, community development and parks and recreation. In addition, the City provides water, wastewater, and solid waste services in the form of enterprise activities. This report includes all funds of the City of Atwater and its blended component unit, the Successor Agency of the Atwater Redevelopment Agency, for which the City is financially accountable.

The City Council establishes annual budgets for the General Fund, Proprietary Funds, and all Special Revenue Funds. Budgetary control is legally maintained at the fund level for these funds.

Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The Atwater City Council consists of five members, elected by districts to four-year terms. Council members must be residents of the City. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions. The City Council serves as the policy board for the City of Atwater and provides policy direction, establishes goals, and sets priorities for the City government.

In addition to serving as the policy makers for the community, the City Council also is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, City Attorney, and all members of advisory boards, commissions, and committees.

Local Economy
The City of Atwater was in the middle of a financial recovery when the COVID-19 pandemic hit in March 2019. The City of Atwater’s General Fund finances have performed better than other Central Valley cities during fiscal years 2020-2021 and 2021-2022 due largely to the composition of the general fund revenue profile. The City’s principle general fund revenue sources are property tax and sales tax which account for almost 52.9 percent of total General Fund revenue. Property and sales tax revenues have remained strong and the City’s housing market has continued to grow throughout the COVID-19 pandemic.

Financial Information
During the past fiscal year, there were no changes to the City’s financial policies or items in which policies impacted the financial information or presentation. Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements.
vi

Acknowledgements
The preparation of this Annual Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department and the auditing firm of Badawi & Associates. I would also like to express my appreciation to the members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully submitted,
______________________________
Lori Waterman,
City Manager
vii

City of Atwater
For the year ended June 30, 2022
List of City Officials

CITY COUNCIL
¾ Paul Creighton, Mayor
¾ John Cale, Mayor Pro Tem
¾ Brian Raymond, Council Member
¾ Tyler BuƩon, Council Member
¾ Danny Ambriz, Council Member

CITY OFFICIALS
¾ Lori Waterman, City Manager
¾ Lucy Armstrong, City Clerk
¾ Mark Borba, City Treasurer
¾ Frank Splendorio, City AƩorney
¾ Greg Thompson, Public Works/Community Development Director ¾ Jeanna Del real, Deputy City Manager/HR Director
¾ Delilah Youmara, Finance Director
¾ Michael Salvador, Police Chief
viii

ix

CITY OF ATWATER

ORGANIZATIONAL CHART
2022
Council Committees
Audit & Finance
Citizens Oversight for Public Safety Transaction and Use Tax Commission Electorate
City Treasurer
Mark Borba
City Council
Paul Creighton, Mayor
Brian Raymond, Mayor Pro Tem (District 4)
Danny Ambriz, Council Member (District 3)
John Cale, Council Member (District 1)
Tyler Button, Council Member (District 2)
Commissions
Planning
City Manager
Personnel Director
Lori Waterman
Deputy City Manager /
Human Resources
Jeanna Del Real
Community
Development /
Public Works
Greg Thompson
Fire
CAL Fire
Robert Ayuso
Police
Michael Salvador
City Administration /
City Clerk
Finance
Delilah Youmara
Community Services
-Recreation
City Attorney
Frank Splendorio
City Clerk
Lucy Armstrong

x
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atwater (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements 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 (GAAS) 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s 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.

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

Auditor’s 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 GAAS 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 GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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.
x 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. x 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.
x 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required pension and other post-employment benefit (OPEB) information on pages 5-19 and 90-95 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

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

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 other budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, and schedule of debt service coverage are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds 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 section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2023

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
5 This section provides a narrative overview and analysis of the financial activities of the City of Atwater (City) for the fiscal year ended June 30, 2022. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide Highlights
i City’s net position (assets and deferred outflows in excess of liabilities and deferred inflows) at June 30, 2022, totaled $90.4 million. Governmental activities the net position was $5.8 million, while the business-type activities net position was $84.6 million. i Total City revenues, including program and general revenues, and business-type activities were $51.5 million; while total expenses were $44.8 million. i Governmental program and general revenues were $28.7 million compared to governmental program expenses of $23.9 million.
i Program revenues from business-type activities were $24.1 million, while expenses for businesstype activities were $21.0 million. i The City’s total net capital asset balance for governmental activities was $21.5 million and $30.6 million for business-type activities.

Fund Highlights
i Net General Fund revenues and other financing sources (uses) exceeded expenditures by $5.6 million as compared to the prior year when revenues and other financing sources (uses) exceeded expenditures by $4.0 million.
i At June 30, 2022, the General Fund has a positive fund balance of $12.4 million.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is in two major parts:
1) Introductory section, which includes the Transmittal Letter and general information; and, 2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole. ♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, public safety, highways and streets, urban redevelopment and housing, community services, and general administration. These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business-type activities – All the City’s enterprise activities are reported here, including Water, Sewer, and Sanitation Funds. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is 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 two categories: governmental funds and proprietary funds.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of the Governmental Fund Financial Statements 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 Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2022, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
i General Fund
i Measure H Special Revenue Fund
i Measure V Special Revenue Fund
PROPRIETARY FUNDS:
i Water Enterprise Fund
i Sewer Enterprise Fund
i Sanitation Enterprise Fund

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
8 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
For the fiscal year ended June 30, 2022, the City adopted annual appropriated budgets for all governmental funds.

Proprietary funds. The City maintains Enterprise-type and Internal Service 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 Water, Sewer, and Sanitation activities. Internal service funds are an accounting methodology used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet of vehicles and its information technology assets. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 43–87 of this report.

Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found on pages 98–176 of this report.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
9 GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City’s net position, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $90.4 million as of June 30, 2022. The Summary of Net position as of June 30, 2021 and 2022 follows:

Overall, the total net position increased by $6.6 million. The total net position of governmental activities increased by $5.5 million and total net position for business-type activities increased by $1.1 million.

The total restricted net position increased by $2.0 million and unrestricted net position experienced a decrease of $8.6M over the previous year.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business-type activities were $51.5 million for the fiscal year ended June 30, 2022. Significant revenues for the City for fiscal year 2021-22 were derived from charges for services 55%, sales and use tax 18%, operating/capital grants and contributions 9%, property taxes and assessments 12%.

The following discusses variances in key revenues from the prior fiscal year for governmental and business-type activities:

1. Charges for Services. Charges for services increased $2.1 million or 7% over last fiscal year. This is primarily due to adopted increases in water and sewer user charges.

2. Sales and Use Tax. Sales Tax revenue decreased by $1.1 million or 12% over last fiscal year. This is primarily due to Measure V Regional and Measure V regular apportionments being included in the total and coming in high for fiscal year 2020-21. The City does continue to see economic growth even during the COVID-19 pandemic.

3. Operating/Capital Grants and Contributions. Capital contributions represent 9% of overall total revenues for the City.

4. Property Taxes and Assessments. Property tax revenue increased by $218,906 or 4% over last fiscal year. This is due primarily to higher property values.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2021, and 2022, follows:

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
12 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Expenses
Governmental and business-type activity expenses of the City for the year totaled $44.8 million.

Governmental activity expenses totaled $24 million or 53% of total expenses. Business-type activities incurred $21 million or 47% of total expenses during the fiscal year. Public safety costs represented 48% of total governmental activities expenses.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities.

The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2021, and 2022, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 5,121,443 $ 2,491,383 $ 6,976,469 $ 3,299,159 $ Public safety 8,695,486 8,030,392 11,447,544 8,638,860
Highway and streets 1,739,724 (3,665,334) 3,493,312 987,451 Urban revelopment and housing 875,920 728,319 1,146,702 1,005,143 Community services 273,648 27,542 770,751 767,594
Interest on long-term debt 40,542 40,452 19,430 19,430
Total 16,746,763 $ 7,652,754 $ 23,854,208 $ 14,717,637 $ 2021 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
13 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities, Continued
Revenues by source for the fiscal years ended June 30, 2021, and 2022, are as follows:

Charges for services
$3,873,618

12.4%
Operating grants
$1,296,316

4.2%
Capital grants
$3,924,136

12.6%
Property taxes
$5,885,979

18.8%
Transient
occupancy taxes
$69,857

0.2%
Sales and use tax
$10,290,754

33.0%
Franchise fees
$914,660

2.9%
Other taxes
$1,725,746

5.5%
Intergovernmental
$2,707,936

8.7%
Use of money and
property
$163,149

0.5%
Other general
$374,567

1.2%
Revenues by Source - Governmental Activities 2021
Charges for services
$4,649,769

16.1%
Operating grants
$3,439,563

11.9%
Capital grants
$1,047,239

3.6%
Property taxes
$6,104,885

21.1%
Transient
occupancy taxes
$76,224

0.3%
Sales and use tax
$9,187,635

31.8%
Franchise fees
$961,869

3.3%
Other taxes
$2,360,721

8.2%
Intergovernmental
$519,401

1.8%
Use of money and
property
$(72,670)
-0.3%
Other general
$454,791

1.6%
Revenues by Source - Governmental Activities 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
14 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities
The City has three business-type activities: Water, Sewer, and Sanitation Operations. The operating revenues and expenses for the business-type activities for the fiscal years ended June 30, 2021 and 2022 are as follows:
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business-type Activities
2021
Operating Revenues and Expenses
Business-type Activities
2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
15 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities, Continued
The revenues by source for the business-type activities for the fiscal years ended June 30, 2021, and 2022, are as follows:

Charges for
services,
22,444,216 ,

98.82%
Operating Grants
and Contributions,
268,985 , 1.18%
Revenues by Source - Business-type Activities 2021
Charges for
services,
23,760,407 ,

98.45%
Operating Grants
and Contributions,
374,740 , 1.55%
Revenues by Source - Business-type Activities 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
16 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of Atwater uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental Funds. The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2022, the City’s governmental funds reported combined fund balances of $33.1 million. The increase is due mainly to increased charges for services and other revenues.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2022, the General Fund had a fund balance of $12.4 million. The General Fund balance improved by $5.2 million from the prior fiscal year and is the fourth consecutive fiscal year with positive fund balance. The City continues to make positive progress.

Special Revenue Funds. The City’s special revenue funds include the Measure H major fund, gas tax funds, grant funds, facility impact fee funds, maintenance districts and other nonmajor funds.

As of June 30, 2022, the special revenue funds had a combined fund balance of $15.6 million.

Capital Projects Funds. The City’s capital projects funds consist of the general and performance bond nonmajor funds. As of June 30, 2022, the capital project funds had a combined negative fund balance of $49,342. This is due to pending reimbursements from MCAG.

Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statement. The City uses enterprise funds to account for its water, sewer and sanitation operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses the internal service funds to account for its building and equipment maintenances, as well as employee benefits fund. The City’s proprietary funds net position increased by $1.2 million for enterprise funds and increased by $498,818 for internal service funds in the fiscal year ended June 30, 2022. For the enterprise funds, the increase was due mainly to planned rate increases to utility users. The increase in the internal service funds net position was mainly the result of increase in interdepartmental charges.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
17 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, Continued General Fund Budgetary Highlights
General Fund actual revenues totaled $19.2 million which was 107.3 percent of the amended budget estimate. General Fund expenditures totaled $13.5 million or 85 percent of the approved amended budget. The General Fund balance increased by $5.2 million to a balance of $12.4 million.

CAPITAL ASSETS
The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $52.1 million. This investment in capital assets includes land, construction in progress, costs for buildings and improvements, infrastructure, roads, and equipment.

The June 30, 2022 total balance reflects addition to construction in progress of $13.2 million. Total depreciation for the year amounted to $5.2 million.

More detail of the capital assets and current activity can be found in the notes to the financial statements on page 50 for significant accounting policies and Note 3 on pages 62 and 63 for other capital asset information.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
18 DEBT ADMINISTRATION
At June 30, 2022, the City had $71.3 million in debt outstanding consisting of compensated absences, capital lease obligations and revenue bonds.

DEBT ADMINISTRATION, Continued
During the current fiscal year, the City’s net debt decreased by $2.1 million. The net decrease was due to scheduled principal payments and unamortized premium retirements. Additional information regarding each of the City’s debt issues as well as debt service requirements is discussed in greater detail in Note 4 to the financial statements on page 64.

NEXT YEARS BUDGET AND THE ECONOMY
The budget for Fiscal Year 2022-2023 budget was developed based on the City’s multi-year fiscal solvency recovery program and the lingering fiscal impacts of the COVID-19 pandemic. The City’s total Fiscal Year 2022-2023 adopted budget approves appropriations at $76.9 million. The budget provides funding for staffing of 105.5 positions and allocates funds for retirement and OPEB obligations.

After eight (8) years of operating at a deficit, the City’s General Fund has had a positive balance for four consecutive fiscal years and is projected to maintain a positive fund balance and continue to meet the reserve requirement as established by Council. The budget fulfills the goal of no new debt as well as allocating funds for General Fund reserves.

The City of Atwater is located in central California in Merced County. The City has experienced increases in economic activity, property and sales tax revenue, and an increased interest in development activity. Over the past several years, the City implemented a number of difficult cost saving and revenue measures which has stabilized the City’s financial situation.

As Atwater worked to climb out of the economic recession, we as well as our surrounding neighbors are faced with maintaining financial stability amidst the end of COVID-19 pandemic. Atwater continues to budget conservatively to not over-estimate our normally anticipated revenue.

Governmental Business-type
Activities Activities Total
Compensated absences $ 93,028 779,530 $ 872,558 $
Capital lease obligation - 669,720 669,720
2017A Wastewater Revenue Refunding Bonds 51,200,000 - 51,200,000 2018A Wastewater Revenue Refunding Bonds 13,870,000 - 13,870,000 Unamortized bond premium 4,689,354 - 4,689,354
Unamortized underwriting discount - -
Total 1,449,250 $ 69,852,382 $ 71,301,632 $
2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
19 In Fiscal Year 2022-2023, the citizens of the City of Atwater, approved a sales tax measure, Measure B, renewing the originally adopted Measure H that was scheduled to sunset by its terms on June 30, 2023. The renewal removed the sunset and increased the tax from half cent ($0.005) to one cent ($0.01). The existing Measure H has been providing much needed funding for enhanced public safety costs through FY 2022-2023. The newly adopted Measure B will continue to provide the necessary funding for enhanced public safety costs for years to come.

REQUESTS FOR INFORMATION
This Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Atwater Finance Department, 750 Bellevue Road, Atwater, CA 95301, or visit the City’s web page at www.atwater.org.

20 This page intentionally left blank

BASIC

FINANCIAL STATEMENTS
21

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22

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
23

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24

City of Atwater
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 37,615,33 $ 53,831,105 4 $ 91,446,43 $ 9 Restricted cash and investments - 975,129 975,129
Receivables:

Accounts 3,371,980 3,031,502 6,403,482
Prepaid items 136,820 3,009 139,829
Total current assets 41,124,134 57,840,745 98,964,879
Noncurrent assets:

Advances to Successor Agency Private Purpose Trust 77,491 - 77,491 Investment in land held for resale 159,364 - 159,364
Capital assets:

Nondepreciable 6,625,729 31,087,345 37,713,074
Depreciable 72,505,267 122,299,202 194,804,469
Lease assets 249,376 - 249,376
Less accumulated amortization (71,713) - (71,713)
Less accumulated depreciation (57,017,607) (53,018,775) (110,036,382) Total capital assets 22,291,052 100,367,772 122,658,824 Total noncurrent assets 22,527,907 100,367,772 122,895,679 Total assets 158,208,517 63,652,041 221,860,558

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 7,327,117 - 7,327,117
Deferred outflows - OPEB 4,381,598 - 4,381,598
Total deferred outflows of resources 11,708,715 - 11,708,715

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,231,526 1,904,428 4,135,954 Interest payable - 537,809 537,809
Deposits payable 290,450 498,648 789,098
Other liabilities 48,272 791,547 839,819
Unearned revenue 2,140,691 56,938 2,197,629
Compensated absences - current portion 58,676 10,072 68,748 Long-term debt - current portion - 1,680,000 1,680,000
Total current liabilities 4,769,615 5,479,442 10,249,057 Noncurrent liabilities:

Compensated absences 720,854 82,956 803,810
Net pension liability 18,401,458 - 18,401,458
Net OPEB liability 23,860,133 - 23,860,133
Lease liabilities 191,862 - 191,862
Long-term debt 477,858 68,079,354 68,557,212
Total noncurrent liabilities 43,652,165 68,162,310 111,814,475 Total liabilities 48,421,780 73,641,752 122,063,532

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 15,215,717 - 15,215,717 Deferred inflows of resources - OPEB 5,848,582 - 5,848,582 Total deferred inflows of resources 21,064,299 - 21,064,299

NET POSITION
Net investment in capital assets 21,541,733 30,608,418 52,150,151 Restricted 8,700,981 975,129 9,676,110
Unrestricted (24,368,037) 52,983,218 28,615,181
Total net position $ 84,566,765 5,874,677 $ 90,441,442 $ Primary Government
See accompanying Notes to Basic Financial Statements.
25

City of Atwater
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 6,976,469 $ 3,672,662 $ 4,648 $ - $ 3,677,310 $ Public safety 11,447,544 107,602 2,701,082 - 2,808,684
Highways and streets 3,493,312 866,348 733,833 905,680 2,505,861 Urban redevelopment and housing 1,146,702 - - 141,559 141,559 Community services 770,751 3,157 - - 3,157
Interest on long-term debt 19,430 - - - -
Total governmental activities 23,854,208 4,649,769 3,439,563 1,047,239 9,136,571 Business-type Activities:

Water 4,529,648 7,397,296 316,479 - 7,713,775
Sewer 12,295,830 11,722,088 12,402 - 11,734,490
Sanitation 4,130,522 4,641,023 45,859 - 4,686,882
Total Business-Type activities 20,956,000 23,760,407 374,740 - 24,135,147 Total primary government $ 28,410,176 44,810,208 $ 3,814,303 $ 1,047,239 $ 33,271,718 $ General Revenues:

Taxes:

Property taxes, levied for general purposes
Transient occupancy tax
Sales taxes
Franchise fes
Other taxes
Total taxes
Intergovernmental
Use of money and property
Other general revenues
Sale of real property
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
26

Governmental Business-Type
Activities Activities Total
$ - (3,299,159) $ (3,299,159) $
- (8,638,860) (8,638,860)
- (987,451) (987,451)
- (1,005,143) (1,005,143)
- (767,594) (767,594)
- (19,430) (19,430)
- (14,717,637) (14,717,637)
3,184,127 - 3,184,127
(561,340) - (561,340)
556,360 - 556,360
3,179,147 - 3,179,147
3,179,147 (14,717,637) (11,538,490)
- 6,104,885 6,104,885
- 76,224 76,224
- 9,187,635 9,187,635
- 961,869 961,869
- 2,360,721 2,360,721
- 18,691,334 18,691,334
- 519,401 519,401
(1,399,056) (72,670) (1,471,726)
- 154,791 154,791
- 300,000 300,000
(1,399,056) 901,522 (497,534)
(632,352) 632,352 -
(2,031,408) 1,533,874 (497,534)
1,147,739 5,507,571 6,655,310
83,419,026 367,106 83,786,132
$ 84,566,765 5,874,677 $ 90,441,442 $
and Changes in Net Position
Net (Expense) Revenue
27

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28

FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29

City of Atwater
Balance Sheet
Governmental Funds
June 30, 2022
Measure H Measure V Nonmajor Total
General Special Special Governmental Governmental
Fund Revenue Fund Revenue Fund Funds Funds
ASSETS
Cash and investments 12,372,894 $ 653,899 $ 3,675,127 $ 18,091,717 $ 34,793,637 $ Receivables:

Taxes 405,971 - - 6,955 412,926
Interest 13,242 646 4,109 20,023 38,020
Intergovernmental 4,789 - 338,144 486,861 829,794
Other receivable 1,414,570 511,330 - 155,431 2,081,331
Prepaid items 59,618 - - 855 60,473
Due from other funds - - - - -
Advance to Successor Agency Private Purpose Trust - - - 77,491 77,491 Investment in land held for resale - - - 159,364 159,364 Total assets 1,165,875 14,271,084 4,017,380 18,998,697 38,453,036

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,179,116 7,786 9,178 642,755 1,838,835 Accrued liabilities 211,633 23,569 - 14,120 249,322
Deposits payable 178,784 - - 111,666 290,450
Other liabilities - - - 48,272 48,272
Unearned revenue - - - 2,140,691 2,140,691
Total liabilities 31,355 1,569,533 9,178 2,957,504 4,567,570 Deferred Inflows of Resources
Unavailable revenues 270,426 - 51,604 464,739 786,769
Total deferred inflows of resources - 270,426 51,604 464,739 786,769 Fund Balances:

Nonspendable
Prepaid items 59,618 - - 294 59,912
Investment in land held for resale - - - 159,364 159,364 Restricted - 1,134,520 - 8,719,305 9,853,825
Assigned - - 3,956,598 6,866,368 10,822,966
Unassigned 12,371,507 - - (168,877) 12,202,630
Total fund balances 1,134,520 12,431,125 3,956,598 15,576,454 33,098,697 Total liabilities, deferred inflows of resources and
fund balances $ 1,165,875 14,271,084 $ 4,017,380 $ 18,998,697 $ 38,453,036 $ Major Funds
See accompanying Notes to Basic Financial Statements.
30

Total Fund Balances - Total Governmental Funds $ 33,098,697 Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable $ - 6,625,729 $ 6,625,729
Depreciable, net 15,665,323 (909,116) 14,756,207
Total capital assets $ (909,116 22,291,052 $ 21,381,936 ) Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the GovernmentWide Statement of Net Position. 3,657,700 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 786,769 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 7,327,117 Deferred outflows of resources related to OPEB 4,381,598 Deferred inflows of resources related to pension (15,215,717) Deferred inflows of resources related to OPEB (5,848,582) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (58,676) $ 2,778 $ (55,898) $ Compensated absences - due in more than one year (720,854) 13,222 (707,632) Net pension liability (18,401,458) - (18,401,458)
Net OPEB liability (23,860,133) - (23,860,133)
Lease liability (191,862) - (191,862)
Long-term debt - due in more than one year (477,858) - (477,858) Total long-term liabilities $ 16,000 (43,710,841) $ (43,694,841) Net Position of Governmental Activities $ 5,874,677
City of Atwater
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
31

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022
Measure H Measure V Nonmajor Total
General Special Special Governmental Governmental
Fund Revenue Revenue Funds Funds
REVENUES:

Taxes and assessments 9,826,093 $ 2,857,070 $ 1,572,881 $ 1,250,899 $ 15,506,943 $ Licenses and permits 418,713 - - - 418,713
Fines and forfeitures 84,527 - - - 84,527
Intergovernmental 4,186,471 - - 3,181,701 7,368,172
Use of money and property 89,326 (3,230) (20,588) (127,823) (62,315) Charges for services 3,950,521 - - - 3,950,521
Other revenues 602,841 - - 258,530 861,371
Total revenues 2,853,840 19,158,492 1,552,293 4,563,307 28,127,932 EXPENDITURES:

Current:

General government 4,744,968 - - 618,981 5,363,949
Public safety 6,518,492 2,831,611 - 1 9,350,104
Highways and streets 1,623,667 - - 891,158 2,514,825
Urban redevelopment and housing 21,088 - - 961,743 982,831 Community services 586,440 - - 61,408 647,848
Capital outlay - 211,962 356,274 2,673,024 3,241,260
Debt service
Principal 41,697 279,691 - - 321,388
Interest and fiscal charges - 19,430 - - 19,430
Total expenditures 3,342,694 13,536,352 356,274 5,206,315 22,441,635

REVENUES OVER (UNDER)
EXPENDITURES (488,854) 5,622,140 1,196,019 (643,008) 5,686,297 OTHER FINANCING SOURCES (USES):

Transfers in 651,445 - - 1,308,597 1,960,042
Transfers out (978,620) - - (499,070) (1,477,690)
Proceeds from capital lease - 138,478 - - 138,478
Proceeds from sale of capital assets 300,000 - - - 300,000 Total other financing sources (uses) 138,478 (27,175) - 809,527 920,830 Net change in fund balances (350,376) 5,594,965 1,196,019 166,519 6,607,127 FUND BALANCES:

Beginning of year 6,836,160 1,484,896 2,760,579 15,409,935 26,491,570 End of year $ 1,134,520 12,431,125 $ 3,956,598 $ 15,576,454 $ 33,098,697 $ Major Funds
See accompanying Notes to Basic Financial Statements.
32

City of Atwater
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds $ 6,607,127 Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 3,335,058
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (1,423,189) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (35,461) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased longterm liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 294,980
Issuance of new vehicle lease 138,478
Changes in the net pension liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. (4,304,665) Changes in the net OPEB liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. 207,898 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 322,348
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 364,997
Change in Net Position of Governmental Activities $ 5,507,571 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
33

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 8,819,783 $ 8,819,783 $ 9,826,093 $ 1,006,310 $ Licenses and permits 311,830 311,830 418,713 106,883
Fines and forfeitures 80,500 80,500 84,527 4,027
Intergovernmental 4,056,863 4,056,863 4,186,471 129,608 Use of money and property 144,493 144,493 89,326 (55,167) Charges for services 3,885,725 3,885,725 3,950,521 64,796 Other revenues 609,757 609,757 602,841 (6,916)
Total revenues 17,908,951 17,908,951 19,158,492 1,249,541 EXPENDITURES:

Current:

General government 5,109,523 5,109,523 4,744,968 364,555 Public safety 7,831,914 7,831,914 6,518,492 1,313,422
Public works 2,185,908 2,185,908 1,623,667 562,241
redevelopment and housing 21,089 21,089 21,088 1
Community services 783,500 783,500 586,440 197,060
Debt Service
Principal 41,697
Interest and charges -
Total expenditures 15,931,934 15,931,934 13,536,352 2,437,279

REVENUES OVER (UNDER)
EXPENDITURES 1,977,017 1,977,017 5,622,140 3,686,820
OTHER FINANCING SOURCES (USES):

Transfers in 674,435 674,435 651,445 (22,990)
Transfers out (1,331,926) (1,331,926) (978,620) 353,306 Sale of capital assets 300,000 300,000 300,000 -
Total other financing sources (uses) (357,491) (357,491) (27,175) 330,316 Net change in fund balances $ 1,619,526 1,619,526 $ 5,594,965 4,017,136 $ FUND BALANCES:

Beginning of year 6,836,160
End of year $ 12,431,125
Budget Amounts
34

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure H Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,500,000 $ 2,500,000 $ 2,857,070 $ 357,070 $ Use of money and property 1,000 1,000 (3,230) (4,230)
Total revenues 2,501,000 2,501,000 2,853,840 352,840
EXPENDITURES:

Current:

Public safety 2,909,541 2,909,541 2,831,611 77,930
Capital outlay:

General capital outlay 186,500 186,500 211,962 (25,462) Debt service
Principal 305,016 305,016 279,691 25,325
Interest and fiscal charges - - 19,430 (19,430)
Total expenditures 3,401,057 3,401,057 3,342,694 52,468

REVENUES OVER (UNDER)
EXPENDITURES (900,057) (900,057) (488,854) 405,308
OTHER FINANCING SOURCES (USES):

Proceeds from leases - - 138,478 138,478
Total other financing sources (uses) - - 138,478 138,478 Net change in fund balances $ (900,057) (900,057) $ (350,376) 543,786 $ FUND BALANCES:

Beginning of year 1,484,896
End of year $ 1,134,520
Budget Amounts
35

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure V Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 1,030,147 $ 1,030,147 $ 1,572,881 $ 542,734 $ Use of money and property 2,700 2,700 (20,588) (23,288) Total revenues 1,232,847 1,232,847 1,552,293 319,446
EXPENDITURES:

Capital outlay:

General capital outlay 1,873,063 1,873,063 356,274 1,516,789 Total expenditures 1,873,063 1,873,063 356,274 1,516,789 Net change in fund balances $ (640,216) (640,216) $ 1,196,019 1,836,235 $ FUND BALANCES:

Beginning of year 2,760,579
End of year $ 3,956,598
Budget Amounts
36

City of Atwater
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
ASSETS
Current Assets:

Cash and investments 31,014,972 $ 20,165,046 $ 2,651,087 $ 53,831,10 $ 2,821,697 5 $ Restricted cash and investments - 975,129 - 975,129 -
Receivables:

Accounts 921,666 1,432,304 616,255 2,970,225 7,210
Interest 35,364 22,834 3,079 61,277 2,699
Due from other funds - - - - -
Prepaid expenses 1,003 1,003 1,003 3,009 76,347
Total current assets 31,973,005 22,596,316 3,271,424 57,840,745 2,907,953 Noncurrent:

Capital assets:

Nondepreciable 29,070,954 1,931,047 85,344 31,087,345 - Depreciable 19,918,761 101,813,770 566,671 122,299,202 2,685,031 Less accumulated depreciation (17,100,742) (35,462,736) (455,297) (53,018,775) (1,775,915) Net capital assets 31,888,973 68,282,081 196,718 100,367,772 909,116 Total noncurrent assets 31,888,973 68,282,081 196,718 100,367,772 909,116 Total assets 90,878,397 63,861,978 3,468,142 158,208,517 3,817,069

LIABILITIES
Current liabilities:

Accounts payable 887,824 977,078 2,147 1,867,049 137,078 Accrued payroll 14,424 20,932 2,023 37,379 6,291
Due to other funds - - - - -
Interest payable - 537,809 - 537,809 -
Deposits payable 498,648 - - 498,648 -
Other liabilities 741,655 49,892 - 791,547 -
Unearned revenue - 56,938 - 56,938 -
Compensated absences - current 3,542 5,727 803 10,072 2,778 Long-term debt - current - 1,680,000 - 1,680,000 -
Total current liabilities 2,146,093 3,328,376 4,973 5,479,442 146,147 Noncurrent liabilities:

Compensated absences 29,163 53,699 94 82,956 13,222
Long-term debt - 68,079,354 - 68,079,354 -
Total noncurrent liabilities 29,163 68,133,053 94 68,162,310 13,222 Total liabilities 71,461,429 2,175,256 5,067 73,641,752 159,369

NET POSITION
Net investment in capital assets 31,888,973 (1,477,273) 196,718 30,608,418 909,116 Restricted for capital projects - 975,129 - 975,129 -
Unrestricted 29,797,749 19,919,112 3,266,357 52,983,218 2,748,584 Total net position $ 19,416,968 61,686,722 $ 3,463,075 $ 84,566,765 $ 3,657,700 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
37

City of Atwater
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
OPERATING REVENUES:

Charges for services $ 11,722,088 7,397,296 $ 4,641,023 $ 23,760,407 $ 4,233,448 $ Other operating revenue 316,479 12,402 45,859 374,740 155,284 Total operating revenues 11,734,490 7,713,775 4,686,882 24,135,147 4,388,732 OPERATING EXPENSES:

Salaries and benefits 586,588 1,074,521 112,148 1,773,257 491,816 Contractual services 414,981 2,202,241 3,091,788 5,709,010 501,202 Materials and supplies 232,108 134,921 15,819 382,848 7,742 Repairs and maintenance - 82,415 - 82,415 708,706
Utilities 1,170,277 1,001,381 - 2,171,658 109,297
Insurance - - - - 1,865,514
Other operating costs 1,775,650 1,857,425 892,670 4,525,745 193,782 Depreciation 350,044 3,309,258 18,097 3,677,399 145,676 Total operating expenses 9,662,162 4,529,648 4,130,522 18,322,332 4,023,735 Operating income (loss) 2,072,328 3,184,127 556,360 5,812,815 364,997 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues (expenses) - - - - (4,200)
Interest revenue (1,275,544) (108,777) (14,735) (1,399,056) (11,979) Interest expense - (2,633,668) - (2,633,668) -
Total nonoperating revenues (expenses) (2,742,445) (1,275,544) (14,735) (4,032,724) (16,179) Income before contributions and transfers (670,117) 1,908,583 541,625 1,780,091 348,818 CONTRIBUTIONS AND TRANSFERS:

Transfers in 52,801 67,222 - 120,023 200,000
Transfers out (452,375) (300,000) - (752,375) (50,000)
Total contributions and transfers (232,778) (399,574) - (632,352) 150,000 Change in net position (902,895) 1,509,009 541,625 1,147,739 498,818 NET POSITION:

Beginning of year 60,177,713 20,319,863 2,921,450 83,419,026 3,158,882 End of year $ 19,416,968 61,686,722 $ 3,463,075 $ 84,566,765 $ 3,657,700 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
38

City of Atwater
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 7,502,160 $ 11,480,617 $ 4,527,334 $ 23,510,11 $ 4,407,683 1 $ Cash paid to suppliers for goods and services (8,779,626) (4,982,202) (4,000,500) (17,762,328) (3,360,838) Cash paid to employees for services (572,415) (1,108,680) (111,771) (1,792,866) (482,346) Net cash provided by (used in) operating activities 5,389,735 (1,849,881) 415,063 3,954,917 564,499 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 52,801 67,222 - 120,023 200,000
Cash transfers out (452,375) (300,000) - (752,375) (50,000) Advance from other funds 562,140 (549,699) 12,441 -
Subsidy from grants - - - - (4,200)
Net cash provided by (used in)
noncapital financing activities 329,362 (399,574) (549,699) (619,911) 145,800 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Note principal payments (18,090) (1,823,099) (1,841,189) - Interest paid on capital debt - (2,645,097) (2,645,097) - Purchase of capital assets (11,553,232) (1,444,260) - (12,997,492) (115,689) Net cash provided by (used in)
capital and related financing activities (5,912,456) (11,571,322) - (17,483,778) (115,689) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received (1,283,179) (120,431) (16,252) (1,419,862) (11,979) Net cash provided by (used in) investing activities (120,431) (1,283,179) (16,252) (1,419,862) (11,979) Net cash flows (313,790) (15,103,956) (150,888) (15,568,634) 582,631 CASH AND INVESTMENTS - Beginning of year 21,453,965 46,118,928 2,801,975 70,374,868 2,239,066 CASH AND INVESTMENTS - End of year $ 21,140,175 31,014,972 $ 2,651,087 $ 54,806,234 $ 2,821,697 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 2,072,328 3,184,127 $ 556,360 $ 5,812,815 $ 364,997 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 350,044 3,309,258 18,097 3,677,399 145,676 (Increase) decrease in accounts receivable (211,127) (252,870) (158,545) (622,542) 41,499 (Increase) decrease in prepaid expense (488) (1,003) (1,003) (2,494) (22,548) Increase (decrease) in accounts payable (5,336,066) 267,639 (223) (5,068,650) 43,406 Increase (decrease) in accrued payroll 6,788 3,451 631 10,870 Increase (decrease) in accrued liabilities 103,001 28,542 - 131,543 (687) Increase (decrease) in deposits payable 46,455 - - 46,455 - Increase (decrease) in compensated absences 7,385 (37,610) (254) (30,479) (7,844) Net cash provided by (used in) operating activities $ 5,389,735 (1,849,881) $ 415,063 $ 3,954,917 $ 564,499 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
39

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40

City of Atwater
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Current assets:

Cash and investments $ 131,857 682,488 $
Cash and investments with trustee/fiscal agent - -
Interest receivable 1,033 146
Loans/notes receivable 111,437 -
Total current assets 794,958 132,003
Land 706,256
Property, plant and equipment 8,839,611 -
Less accumulated depreciation (6,600,724) -
Property, plant and equipment 2,945,143 -
Total assets 132,003 3,740,101

LIABILITIES
Current liabilities:

Accounts payable 681 -
Due to others - 2,023
Due within one year 931,000 -
Total current liabilities 931,681 2,023
Long-term liabilities:

Advance from governmental funds/activities 77,491 -
Due after one year 2,940,000 -
Total long-term liabilities 3,017,491 -
Total liabilities 2,023 3,949,172

NET POSITION
Held in trust for dissolution of RDA (209,071) -
Held for the CFD Bond holders - 129,980
Total Net Position $ 129,980 (209,071) $
See accompanying notes to Basic Financial Statements.
41

City of Atwater
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS:

Property taxes $ - 1,132,850
Investment income 905 (717)
Other additions 1,203,118 -
Total additions (717) 2,336,873
DEDUCTIONS:

Depreciation expense - -
Urban redevelopment and housing 1,154,782 -
Interest expense 61,648 -
Total deductions - 1,216,430
Change in net position (717) 1,120,443
NET POSITION:

Beginning of year, as restated (1,329,514) 130,697
End of year $ 129,980 (209,071) $
See accompanying notes to Basic Financial Statements.
42

43 NOTES TO BASIC

FINANCIAL STATEMENTS

44 This page intentionally left blank.

45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Atwater (City) was incorporated in 1922, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: public safety (Police), highways and streets, solid waste, storm water utility, public improvements, planning and zoning, and general administration.

The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.

A. Financial Reporting Entity
The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

The basic financial statements of the City include only the financial activities of the City. The City does not have component units.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation
Government Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.

Certain types of transactions reported as program revenues for the City are reported in three categories:
x Charges for services
x Operating grants and contributions
x Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except for those representing balances between the governmental activities and business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/from other funds
x Advances to/from other funds
x Transfer in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means the amount is collectible within the current period or soon enough thereafter to pay current liabilities. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year end, with the exception of grant revenues and Transportation Development Act (TDA) revenues. Grant revenues are considered to be available if collected within 190 days and TDA revenues are considered to be available if collected within 90 days of the end of the current fiscal period.

The City reports the following major governmental funds:
x General Fund – used for all activities except those legally or administratively required to be accounted for in other funds.
x Measure H Special Revenue Fund – accounts for Measure H, a voter approved sales tax measure, to provide enhanced public safety costs.
x Measure V Special Revenue Fund - accounts for Measure V, a voter approved sales tax measure, to provide enhanced public safety costs.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The City reports the following proprietary funds as major:
x Water Enterprise Fund – accounts for the operation and maintenance of the City’s water treatment and distribution system.
x Sewer Enterprise Fund – accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.
x Sanitation Enterprise Fund – accounts for all activities associates with the operation and maintenance of providing solid waste services.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
Internal service fund balances and activities have been combined with governmental and business-type activities in the Government-Wide Financial Statements. These funds account for building maintenance, employee benefits, risk management and information technology.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has one private-purpose trust fund. The private-purpose trust fund accounts for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property).

Fiduciary funds are accounted for using the accrual basis of accounting.

The funds of the financial reporting entity are described below:
x Successor Agency – Former Atwater Community Development Agency Fund - accounts for funds collected and disbursed for the dissolution of the former Atwater Development Agency related to Administration and Retirement of enforceable obligations. x Custodial Funds - account for assets held by the City in a purely custodial capacity and are not presented in the government-wide financial statements.

C. Cash Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.

The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.

In accordance with GASB Statement No. 40, Deposit, and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash Deposits and Investments, Continued
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

D. Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net position. See Note 7 for details of interfund transactions, including receivables and payables at year-end.

E. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, utility user taxes, intergovernmental subventions, interest earnings, and expense reimbursements.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, utility user tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The loans receivable are recorded in the fund statements, but are deferred to indicate they do not represent current financial resources. The loans are recognized when advanced in the government-wide statements. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

F. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a reservation of fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated Capital Assets which are recorded at their estimated fair value at the date of donation. Policy has set the capitalization threshold for reporting at $5,000 for non-infrastructure capital assets and $25,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. No depreciation is recorded in the year of acquisition or in the year of disposition.

The range of estimated useful lives by type of asset is as follows:

H. Compensated Absences
Employees accrue vacation, sick, holiday, and compensatory time off benefits. City employees have vested interests in the amount of accrued time off, with the exception of sick time, and are paid on termination. Also, annually an employee may elect to be compensated for 40 to 120 hours of unused annual leave depending upon their length of service. All vacation pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements and is currently payable. The City had no employee resignations or retirements for which compensated absences should be accrued in governmental funds at year-end. The general fund is typically used to liquidate compensated absences.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Government of Example's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

K. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or bylaws or regulations of other governments or law through constitutional provisions or enabling legislation. c. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned, or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –
x Assets that will never convert to cash (prepaid items, inventory). x Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
x Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted Fund Balance –
x Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments). x Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g. Gas Tax).

Committed Fund Balance –
x Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
x Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
x Council resolution is required to be taken to establish, modify or rescind a fund balance commitment

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance, Continued
Assigned Fund Balance –
x Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance. x Assigned amounts for a specific purpose are as authorized by the City’s City Treasurer through its fund balance policy.

Unassigned Fund Balance –
x Residual net resources
x Total fund balance in the general fund in excess of nonspendable, restricted, committed, and assigned fund balance (surplus).
x Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

M. Revenues, Expenditures, and Expenses
Property Tax
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes.

Property Valuations – are established by the Assessor of the County of Merced (County) for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by voters on June 6, 2078) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.

Personal property is excluded from these limitations, and is subject to annual reappraisal.

Tax Levies – are limited to 1% of full value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Levy Dates – are attached annually on January 1 proceeding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Revenues, Expenditures, and Expenses, Continued
Tax Collections – are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments: The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.

The County levies, bills, and collects property taxes and special assessments for the City. Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the “alternate method of property tax distribution”, known as the Teeter Plan, by the City and the County.

The Teeter Plan authorizes the Auditor/Controller of the County to allocate 100% of the secured property taxes billed, but not yet paid. The County remits tax monies to the City in three installments as follows:
50 percent remitted in December
45 percent remitted in April
5 percent remitted in June
N. Budgetary Accounting
The City Council establishes budgets for the General Fund and all Special Revenue Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds.

Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2022. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

P. New Accounting Pronouncements
In 2022, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
¾ GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements 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.
¾ GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of the Construction Period – The objective of this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year. ¾ GASB Statement No. 92, Omnibus 2020 – The objectives of this statement are 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. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 99, Omnibus 2022 – The primary objectives of this statement are to enhance the comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during the implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
56 2. CASH AND INVESTMENTS
Cash, cash equivalents, and investments are reported in the accompanying basic financial statements as follows:

Summary of Cash and Investments
At June 30, 2022, the City’s pooled cash and investments consist of the following:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
57 2. CASH AND INVESTMENTS, Continued
Deposits
The carrying amount of the City’s cash deposit was $14,480,455 at June 30, 2022.

Bank balances before reconciling items were a positive amount of $15,186,643 at June 30, 2022. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
58 2. CASH AND INVESTMENTS, Continued
Investments
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code of the City’s investment policy. During the year ended June 30, 2022, the City’s permissible investments included the following instruments:

Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum
Maximum Minimum Credit Maximum % Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer Bankers' Accepances 180 days A-1, P-1 40% 5%
Certificates of Deposits 2 years N/A 20% $500,000 per entity Negotiable Certificates of Deposit 2 years A 30% $1m per entity Commercial Paper 270 days A-1 25% 10%
State of California Local Agency 10%
Investment Fund (State Pool) N/A N/A N/A N/A
Medium Term Notes 5 years A N/A 5%
Money Market Funds N/A Aaa 20% 20%
U.S. Treasury Securities 5 years N/A N/A N/A
U.S. Treasury Obligations None N/A N/A N/A
U.S. Government Agency Issues 5 years A 30% 5%
U.S. Government Agency Sponsored
Enterprise Securities 5 years N/A N/A N/A
Repurchase Agreements 1 year N/A 10% 10%
Mortgage pass-through and
asset backed securities 5 years AA 20% 5%
Supranational Obligations 5 years AA 30% N/A

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
59 2. CASH AND INVESTMENTS, Continued
Investments, Continued
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $54,398,105 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 was used to calculate the fair value of the investments in LAIF.

Risk Disclosures
Interest rate 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 evenly over time as necessary to provide the cash flow and liquidity needed for operations.
12 Months 13 to 36 More than
Investment Type Total or less Months 36 Months
Government bonds 3,319,433 $ - $ 2,161,619 $ 1,157,814 $ Corporate bonds 5,662,360 - 3,269,782 2,392,578
Asset-backed securities 2,624,043 - 1,459,711 1,164,332 Suprational obligation 1,156,592 - 554,526 602,066
CMO 1,731,092 - 1,581,197 149,895
Money Market Fund 94,940 94,940 - -
Agency Obligation 7,413,078 - 5,329,797 2,083,281
Subtotal 22,001,538 94,940 14,356,632 7,549,966
Joint investment pools:

Local Agency Investment Fund 54,398,105 54,398,105 - -
CSJVRMA Investment Pool 1,135,569 1,135,569 - -
Total 77,535,212 $ 55,628,614 $ 14,356,632 $ 7,549,966 $ Investment Maturities (in Months)

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
60 2. CASH AND INVESTMENTS, Continued
Risk Disclosures, Continued
Credit risk – 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 a nationally recognized statistical rating organization. Presented below is the actual rating at June 30, 2022 for each investment type:

Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

Custodial credit risk – investments. For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the City, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security.

Investment Total A3 A2 A1 Aa3 Aa1 Aaa
Governent bonds 3,319,433 $ - $ - $ - $ - $ - $ 3,319,433 $ Corporate bonds 5,662,360 263,219 5,399,141 - - - -
Suprational obligation 1,156,592 - - - - - 1,156,592
CMO 1,731,092 - - - - - 1,731,092
Money Market Fund 94,940 - - - - - 94,940
Agency Obligation 7,413,078 - - - - - 7,413,078
Subtotal 19,377,495 $ 263,219 $ 5,399,141 $ - $ - $ - $ 13,715,135 $ Not Rated:

Joint Investment Pool:

Local Agency Investment Fund 54,398,105
CSJVRMA Investment Pool 1,135,569
Asset-backed securities 2,624,043
Total Investments 77,535,212
Rating as of June 30, 2022

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
61 2. CASH AND INVESTMENTS, Continued
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
62 3. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2022, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
63 3. CAPITAL ASSETS, Continued
Business-type capital asset activity for the year ended June 30, 2022, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
64 4. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022:

The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2022:

Governmental Activities:

Lease-Purchase financing:

The City of Atwater has entered into two separate lease agreements as lessee for financing the acquisition of five patrol vehicles valued at $204,276 and ladder fire truck valued at $783,751. The interest rates on the leases are 1.98% and 2.65%, respectively. The patrol vehicles have a 5-year estimated useful life and the ladder truck has a 15-year estimated useful life. Title reverts to the City after payment of the minimum lease payments, and, therefore, have been recorded at the present value of future minimum lease payments.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
65 4. LONG-TERM LIABILITIES, Continued
Lease-Purchase financing, Continued
In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee for financing the acquisition of police bodycam equipment valued at $105,012. The bodycams have 5-year estimated useful life.

Lease liabilities
Pursuant to the GASB 87, the City has following lease liabilities:

In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2053-23C8PN) valued at $45,349. As of June 30, 2022, the value of the lease liability is $30,077. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $944. The value of the right to use the asset as of June 30, 2022 of $30,077 is included in the intangible assets on the capital assets activities table found in Note 3 above.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
66 4. LONG-TERM LIABILITIES, Continued
In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2045-239MBF) valued at $46,033. As of June 30, 2022, the value of the lease liability is $21,994. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $1,198. The value of the right to use the asset as of June 30, 2022 of $21,994 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2047-23C8Q4) valued at $25,785. As of June 30, 2022, the value of the lease liability is $12,876. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $667. The value of the right to use the asset as of June 30, 2022 of $12,876 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2048-23C8Q3) valued at $25,785. As of June 30, 2022, the value of the lease liability is $12,929. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $669. The value of the right to use the asset as of June 30, 2022 of $12,929 is included in the intangible assets on the capital assets activities table found in Note 3 above.

Year Ending
June 30, Principal Interest
2023 7,129 $ 909 $
2024 5,800 228
Total 12,929 $ 1,137 $

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
67 4. LONG-TERM LIABILITIES, Continued
In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2056-239MBD) valued at $36,406. As of June 30, 2022, the value of the lease liability is $22,696. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $919. The value of the right to use the asset as of June 30, 2022 of $22,696 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2051-23XZTS) valued at $36,778. As of June 30, 2022, the value of the lease liability is $30,262. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $931. The value of the right to use the asset as of June 30, 2022 of $30,262 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2052-23XZTV) valued at $36,778. As of June 30, 2022, the value of the lease liability is $30,446. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $936. The value of the right to use the asset as of June 30, 2022 of $30,446 is included in the intangible assets on the capital assets activities table found in Note 3 above.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
68 4. LONG-TERM LIABILITIES, Continued
In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2050-252ZQB) valued at $36,778. As of June 30, 2022, the value of the lease liability is $30,570. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $940. The value of the right to use the asset as of June 30, 2022 of $30,570 is included in the intangible assets on the capital assets activities table found in Note 3 above.

Business-type Activities
2017A Wastewater Revenue Refunding Bonds (Sewer)
In August 2017, the City issued the 2017A Wastewater Revenue Refunding Bonds in the amount of $56,600,000 to defease the 2008 Wastewater Revenue Refunding Bonds and the 2010 Wastewater Revenue Bonds by placing funds in separate escrow accounts to prepay the obligations. Each payment includes interest at an annual rate between 3.125% to 5.000%. Interest on the bonds is payable on May 1 and November 1 of each year. Principal of the bonds is payable on May 1 of each year beginning May 1, 2019. The bonds fully mature on May 1, 2045. An original issue premium of $5,619,924 and an underwriting discount of $509,400 was included in the sales of the bonds.

The annual debt service requirements for the 2017A Bonds are as follow:

Year Ending
June 30, Principal Interest
2023 9,064 $ 2,224 $
2024 9,856 1,432
2025 10,716 572
2026 934 6
Total 30,570 $ 4,234 $

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
69 4. LONG-TERM LIABILITIES, Continued
2018A Wastewater Revenue Refunding Bonds (Sewer)
In April 2019, the City issued the 2019A Wastewater Revenue Refunding Bonds in the amount of $16,255,000 to defease the 2011 Wastewater Revenue Bonds by placing funds in an escrow account to prepay the obligation. Each payment includes interest at an annual rate between 2.75% to 4.00%. Interest on the bonds is payable on May 1 and November 1 of each year. Principal of the bonds is payable on May 1 of each year beginning June 30, 2022, Interest payments began on November 1, 2019. The bonds fully mature on May 1, 2038. An original issue premium of $2,064,063 and an underwriting discount of $146,295 was included in the sales of the bonds.

The annual debt service requirements for the 2018A Bonds are as follow:

Year Ending
June 30,
Principal Interest
2023 660,000 480,369
2024 690,000 453,969
2025 715,000 426,369
2026 740,000 397,769
2027 775,000 368,168
2028-2032 4,230,000 1,483,992
2033-2037 4,960,000 742,046
2038-2042 1,100,000 40,700
2032-2045 - -
$ 4,393,38 13,870,000 $ 2
2018A Wastewater Revenue
Refunding Bonds

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
70 5. COMPENSATED ABSENCES
The City’s compensated absences payable activity for the year ended June 30, 2022 was as follows:

6. NET POSITION/ FUND BALANCES
Net position
Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
71 6. NET POSITION/ FUND BALANCES, Continued
Fund Balance
Nonspendable and Restricted fund balance consisted of the following at June 30, 2022:

Nonspendable:

Prepaid items 59,912 $
Investment in land held for resale 159,364
Total Nonspendable 219,276
Restricted:

Governmental Funds:

Measure H 1,134,520
General Plan Update 1,192,042
Gas Tax 174,303
Facility Impact Fee 6,377,716
HOME Investment Partnership Program 511,364
Neigbour Stabilization 219,213
Pension Rate Stabilization 244,667
Total Restricted 9,853,825 $
Assigned:

Measure V 3,956,598
Police Grant 83,721
Local Transportation 596,944
CDBG Program Income 239,221
Housing Authority 1,222,115
Narcotics Program 2,059
Applegate Exchange 764,209
Reginal Surface Transportation Program 2,305,609
Maintenance Districts 1,546,233
Performance Bond 106,257
Total Assigned 10,822,966 $

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
72 6. NET POSITION/ FUND BALANCES, Continued
The following describe the purpose of each nonspendable, restricted, and committed category used by the City:

Nonspendable
x Prepaid items - used to segregate that portion of fund balance to indicate that prepaid amounts do not represent available, spendable resources even though they are components of assets. x Investment in land held for resale – includes properties held for the purpose of redevelopment either through resale or conversion to public use, which do not represent available, spendable resources even though they are components of assets.

Restricted
x Gas Tax – represents amounts restricted for street maintenance purposes as defined in Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highway Code. x Facility Impact Fee – represents amounts restricted to capital projects through AB1600. x HOME Investment Partnership Program – represents amounts restricted for the City’s HOME revolving loan program as this program is supported by specific grants requiring the restriction. x Neighborhood Stabilization – represents restricted amounts received from Federal Grants for neighborhood revitalization programs.

Deficit fund balances consisted of the following:

The above deficit fund balances have occurred due to the spending of funds prior to the receipt of revenues (cost reimbursements). The fund balances will be restored in the near future as revenues are received.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
73 7. INTERFUND TRANSACTIONS
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers consisted of the following at June 30, 2022:

The transfer from Nonmajor Governmental Funds, Sewer Fund and $300,000 transfer from the Water Fund to the General Fund were for the contributions toward the General Plan Update. The remaining $152,375 Water Fund transfer from proprietary funds to governmental funds was to fund hydrant maintenance paid from General Fund. The transfers from General Fund to Nonmajor Governmental funds are for the contributions to the Gas tax fund for road maintenance, and to General Capital Improvement Funds for capital improvement projects. The transfers from General fund to Nonmajor Proprietary Funds are for the contributions to internal service fund for equipment replacement and unfunded OPEB liabilities.

8. RISK MANAGEMENT
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes. The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each worker’s compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $50,000 and worker’s compensation losses under $100,000. The CSJVRMA participates in an excess pool which provides worker’s compensation coverage from $500,000 to $4,500,000 and purchases excess insurance above the $5,000,000 to the statutory limit.

The CSJVRMA is a consortium of fifty-four (54) cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et. seq. The CSJVRMA is governed by a Board of Directors, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
74 8. RISK MANAGEMENT, CONTINUED
At the termination of the joint venture agreement and after all claims has been settled, any excess or deficit will be divided among the cities in proportion to the aggregate amount of contribution made by each. The financial position results of operations of CSJVRMA are as follows for June 30, 2022, the most recent available:

9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, costsharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 2057 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.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
75 9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Benefits Provided
The Plans' provisions and benefits in effect at June 30, 2022, are summarized as follows:

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 CaIPERS. 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.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Miscellaneous
PEPRA Classic Miscellaneous - Tier 2
Prior to Prior to Prior to
Hire date January 1, 2013 January 1, 2013 January 1, 2013 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 62 55-60 60
Monthly benefits, as a % of eligible compensation 2.00% 2.00%-3.00% 2.00% Required employee contribution rates 6.75% 8.00%
Required employer contribution rates 7.59% 16.30% 8.65% Safety - Classic Safety - PEPRA
Prior to Prior to
Hire date January 1, 2013 January 1, 2013
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 57
Monthly benefits, as a % of eligible compensation 3.00% 2.70% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 25.43% 13.75%

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
76 9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:

For the year ended June 30, 2022, the City recognized pension expense of $3,902,805. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
77 9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$3,715,339 reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions -The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. More details of the table can be found in December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015).

Discount Rate -The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the 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 out of assets.

Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent 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.

Actuarial Assumptions
Actuarial cost method Entry-age normal cost method
Actuarial assumptions
Discount rate 7.15%
Inflation 2.50%
Salary increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funs Contract COLA up to 2.5% until purchasing power protection Post-retirement benefit increase allowance floor on purchasing power applies, 2.75% thereafter.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
78 9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, 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 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.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
79 9. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the 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:

Payable to the Pension Plan
At June 30, 2022 the City reported a payable of $0 outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

10. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The City of Atwater Retired Employees Healthcare Plan is a single-employer defined benefit healthcare plan administered by CalPERS. The City provides medical benefits to eligible retirees, their spouses and dependents. To earn this benefit, employees must have reached the age of fifty with five years of service to the City. The City provides coverage for surviving family members of an enrollee who dies while covered under the plan. Coverage for the enrolled family members then continues until any one of a specific set of circumstances occurs. The Retiree Health Plan does not issue a financial report.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
80 10. OTHER POSTEMPLOYMENT BENEFITS, Continued
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2022, the City contributed $732,277 to the plan, the entire amount for current premiums. The City pays the full benefit cost of health care coverage premiums for retired members receiving benefits. The City does not pay for dental and vision insurance premiums for retiree.

Those retirees wishing to be covered by dental and vision insurance benefits must pay 100% of the cost for the retirees and their dependents.

At June 30, 2022, the following employees were covered by the benefit terms:

City Contribution to the Plan
The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2022, the City’s cash contributions were $732,277 cash benefit payments.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 that was rolled forward to determine the June 30, 2022 total OPEB liability, based on the following actuarial methods and assumptions:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
81 10. OTHER POSTEMPLOYMENT BENEFITS, Continued
Net OPEB Liability, Continued
The long-term expected rate of return on OPEB plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Actuarial Valuation Date June 30, 2021
Contribution Policy City plans to contribute $50,000 into the trust every year after June 30, 2021, pay benefit payments outside of the trust, and not seek reimbursements
Discount Rate 2.21% at June 30, 2020
(Bond Buyer 20-bond Index)
General Inflation 2.50% per annum
Mortality, Retirement, CalPERS 2000-2019 experience study Disability, Termination
Salary Increases Aggregate - 2.75% annually
Merit - Table from CalPERS 2000-2019 Experience Study
Medical Trend 6.50% - 3.75%
Participation at Retirement Active & surviving spouse:

Participating & Waived:
- Percentage of premium - 100%
- PEMHCA minimum - 60%
Retirees & surviving spouse:

Participating - 100%
Waived < 65 - 20% at 65
Waived > 65 - 0 %
Actuarial Assumptions:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
82 10. OTHER POSTEMPLOYMENT BENEFITS, Continued
Discount Rate
The discount rate used to measure the total OPEB liability was 2.16 percent. The projection of cash flows used to determine the discount rate assumed that Authority contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2022 is 2.16%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
83 10. OTHER POST EMPLOYMENT BENEFITS, Continued
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021 (Healthcare Cost Trend Rate was assumed to start at 7% and grade down to 4% for years 2076 and thereafter):

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $502,367. As of fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to OPEB from the following sources:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
84 10. OTHER POST EMPLOYMENT BENEFITS, Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued The $710,265 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

11. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atwater that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2015, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 112-10.

After enactment of the law on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
85 11. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELPMENT AGENCY, Continued The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:
2017 Tax Allocation Refunding Bonds – Series A and B
In September 2017, the Successor Agency to the Atwater Redevelopment Agency issued $7,524,000 Tax Allocation Refunding Bonds, Series A, in the amount of $5,999,000 and Series B in the amount of $1,525,000. The were used to defease all of the outstanding 2098 A Bonds and the 2007, Series A and B Bonds. The final maturity date on the bonds is June 2026.

Future debt service for Fiduciary Activities at June 30, 2022, is as follows:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
86 12. COMMITMENTS AND CONTINGENCIES
Litigation
The City is involved in litigation incurred in the normal course of conducting City business. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and Allocations
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Trichloro propane (TCP) Contamination, Settlement and Remediation Efforts he City of Atwater was awarded a $63 million dollar jury award in 2019 after suing Shell Oil Company and DOW Chemical for marketing and selling a pesticide fumigant used in agricultural applications that contained TCP and over the years infiltrated the groundwater system, thereby contaminating the City’s domestic water system wells.

The City’s net settlement was $43 million after legal costs. The City Council of the City of Atwater adopted Resolution No. 3130-20 on January 13, 2020, committing the proceeds of the TCP settlement towards the remediation of TCP from the City’s water system. Under the Resolution the funds will be utilized towards long-term well-head treatment, closure and/or abandonment of existing well sites, and the drilling of new wells.

The City completed the 1, 2, 3 -TCP Central Treatment Plant in 2021. The City oversees the operations and maintenance of the TCP Central Treatment plant and performs testing as required utilizing the TCP Settlement Funds.

Currently the annual cost of maintenance is approximately $100,000 based upon once a month testing requirements and filter replacements. The cost of testing can fluctuate depending upon levels of TCP present in the monthly samples. Should the levels of TCP increase, more frequent testing would be required, therefore resulting in higher costs.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
87 13. DEFERRED COMPENSATION PLAN
The City has two 457 Deferred Compensation Plans implemented. In October, 1999, the City established a 457(b) Deferred Compensation Plan with Mission Square Retirement (ICMA) to provide retirement income and other deferred benefits to the Employee of the Employer and the Employees’ Beneficiaries in accordance with the provisions of Section 457 of the IRC, Sections 1.457-4 through 1.457-10. Approximately 81 employees were eligible to participate in this plan. In fiscal year 2022, the employees were able to contribute to the plan up to a maximum of $19,500. The City did not match or provide any employer paid contributions to the plan during fiscal year 2022.

Effective in January, 2015, the City established another 457(b) Deferred Compensation Plan with Orion Portfolio Solutions. Approximately 81 employees were eligible to participate in this plan. In fiscal year 2021, the employees were able to contribute to the plan up to a maximum of $19,500. The City did not match or provide any employer paid contributions to the plan during fiscal year 2022.

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89 REQUIRED

SUPPLEMENTARY INFORMATION

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Last 10 Years*
Fiscal year 2022 2021 2020 2019
Measurement date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Proportion share of the net pension liability / (asset) 0.34025% 0.25529% 0.26482% 0.27549% Proportionate share of the net pension liability / (asset) $ 27,776,819 18,401,458 $ 27,135,766 $ 26,546,855 $ Covered payroll 5,414,479 4,846,107 4,869,106 4,301,273 Proportionate share of the net pension liability / (asset) as a percentage of its covered-employee payroll 29.42% 17.45% 17.94% 16.20% Proportionate share of the fiduciary net position as a percentage of the City's net pension liability 100.00% 75.10% 75.26% 75.26% Notes to Schedule
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. 90

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022
Fiscal year 2018 2017 2016
Measurement date 6/30/2017 6/30/2016 6/30/2015
Proportion share of the net pension liability / (asset) 0.27768% 0.29319% 0.32718% Proportionate share of the net pension liability / (asset) $ 25,370,399 27,538,451 $ 22,457,323 $ Covered-employee payroll 4,352,437 4,645,102 4,635,102
Proportionate share of the net pension liability / (asset) as a percentage of its covered-employee payroll 15.80% 18.31% 20.64% Proportionate share of the fiduciary net position as a percentage of the City's net pension liability 73.31% 74.06% 78.40%
91

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022
Schedule of Pension Contributions - Last 10 Years*
Fiscal year 2022 2021 2020 2019
Actuarially determined contribution 3,715,339 $ 3,689,23 $ 3,671,000 1 $ 3,103,630 $ Contributions in relation to actuarially deemed contributions (3,715,339) (3,689,231) (3,671,000) (3,103,630) Contribution deficiency (excess) - $ - $ - $ - $
Covered payroll 4,846,107 $ 4,869,106 $ 4,301,273 $ 4,352,437 $ Contributions as a percentage of covered payroll 76.67% 75.77% 85.35% 71.31% 92

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022
Fiscal year 2018 2017 2016
Actuarially determined contribution 2,892,846 $ 2,734,672 $ 1,645,317 $ Contributions in relation to actuarially deemed contributions (2,892,846) (2,734,672) (1,645,317) Contribution deficiency (excess) - $ - $ - $
Covered payroll 4,645,102 $ 4,635,102 $ 4,635,102 $
Contributions as a percentage of covered payroll 62.28% 59.00% 35.50% 93

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022

OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES
OPEB Plan, an Agent Multiple-Employer Defined Benefit Plan Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability
Service cost 1,052,679 737,612 $ 986,349 $ 1,028,487 $ 1,200,000 $ Interest 552,930 678,894 949,529 872,785 746,000
Assumption changes (495,797) 4,517,566 1,230,191 (1,089,852) (2,981,000) Differences between expected and actual experience (674,772) - (7,433,570) - - Benefit payments (630,738) (622,521) (622,296) (604,000) (627,000) Net change in the total OPEB liability 5,311,551 (195,698) (4,889,797) 207,420 (1,662,000) Total OPEB liability - beginning 18,970,623 24,282,174 23,860,420 23,653,000 25,315,000 Total OPEB liabilty - ending (a) 24,282,174 24,086,476 $ 18,970,623 $ 23,860,420 $ 23,653,000 $ Plan Fiduciary Net Position
Contributions - employer 732,277 $ 724,186 $ - $ - $ - $ Contributions - employee - - - - -
Net investment income 26,549 76 - - -
Administrative expense (1,821) (1,665) - - -
Benefit payments (630,738) (622,521) - - -
Net change in the total OPEB liability 100,076 126,267 - - - Plan fidcuiary net position - beginning - 100,076 - - - Plan fidcuiary net position - ending (b) $ 100,076 226,343 $ - $ - $ - $ Net OPEB liability - ending (a) - (b) 23,860,133 $ 24,182,098 $ 18,970,623 $ 23,860,420 $ 23,653,000 $ Plan fiduciary net position as a percentage
percentage of the total OPEB liability 0.94% 0.41% 0.00% 0.00% 0.00% Covered employee payroll 5,925,878 $ 5,993,342 $ N/A N/A 5,940,000 $ Net OPEB liability as a percentage of
covered employee payroll 402.64% 403.48% N/A N/A 398.20% 94

City of Atwater
Required Supplementary Information
For the year ended June 30, 2022

OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULES
Schedule of OPEB Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2022 6/30/2021
Actuarially determined contribution $ 724,186 732,277 $ Contributions in relation to the actuarially
determined contribution (732,277) (724,186)
Contribution deficiency (excess) - $ - $
Covered - employee payroll 5,925,878 $ 5,993,342 $
Contribution as a percentage
of covered-employee payroll 12% 12%
Notes:

Actuarial Assumptions:

Actuarial Valuation Date June 30, 2021
Contribution Policy
Discount Rate 2.16% at June 30, 2021
Long-term Expected Rate of Return on Assets 5.75% for 2021/22 General Inflation 2.5% annually
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Salary Increases Aggregate - 2.75% annually
Merit - Table from CalPERS 2000-2019 Experience Study
Medical Trend 6.50% - 4.60%
Participation at Retirement Active & surviving spouse:

Participating & Waived:
- Percentage of premium 100%
- PEMHCA minimum - 60%
Retirees & surviving spouse:

Participating - 100%
Waived < 65 - 20% at 65
Waived > 65 - 0%
*fiscal year 2021 is the first year that the City has actuarially determined contribution City plans to contribute $50,000 into the trust every
year after June 30, 2021, pay benefit payments outside
of the trust, and not seek reimbursements.
95

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96

SUPPLEMENTARY INFORMATION
97

City of Atwater
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Total Nonmajor
Revenue Performance Governmental
Funds General Bond Funds
ASSETS
Cash and investments 17,995,633 $ (121,594) $ 217,678 $ 18,091,717 $ Receivables:

Taxes 6,955 - - 6,955
Interest 19,568 210 245 20,023
Intergovernmental 486,861 - - 486,861
Other receivable 107,112 48,319 - 155,431
Prepaid items 855 - - 855
Advance to Successor Agency Private Purpose Trust 77,491 - - 77,491 Investment in land held for resale 159,364 - - 159,364
Total assets (73,065) 18,853,839 217,923 18,998,697

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 633,358 9,397 - 642,755
Accrued liabilities 14,120 - - 14,120
Due to other funds - - - -
Deposits payable - - 111,666 111,666
Other liabilities 23,454 24,818 - 48,272
Total liabilities 34,215 2,811,623 111,666 2,957,504
Deferred Inflows of Resources
Unavailable revenues 416,420 48,319 - 464,739
Total deferred inflows of resources 48,319 416,420 - 464,739 Fund Balances:

Nonspendable
Prepaid items 294 - - 294
Investment in land held for resale 159,364 - - 159,364
Restricted 8,719,305 - - 8,719,305
Assigned 6,760,111 - 106,257 6,866,368
Unassigned (13,278) (155,599) - (168,877)
Total fund balances (155,599) 15,625,796 106,257 15,576,454 Total liabilities, deferred inflows of resources and
fund balances $ (73,065) 18,853,839 $ 217,923 $ 18,998,697 $ Capital Projects Fund
98

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Special Total Nonmajor
Revenue Performance Governmental
Funds General Bond Funds
REVENUES:

Taxes and assessments 1,250,899 $ - $ - $ 1,250,899 $
Intergovernmental 2,805,113 376,588 - 3,181,701
Use of money and property (127,665) 1,043 (1,201) (127,823) Other revenues 258,530 - - 258,530
Total revenues 377,631 4,186,877 (1,201) 4,563,307
EXPENDITURES:

Current:

General government 618,981 - - 618,981
Public safety 1 - -1
Highways and streets 891,158 - - 891,158
Urban redevelopment and housing 961,743 - - 961,743
Capital outlay 1,358,997 1,314,027 - 2,673,024
Total expenditures 1,314,027 3,892,288 - 5,206,315

REVENUES OVER (UNDER)
EXPENDITURES (936,396) 294,589 (1,201) (643,008)
OTHER FINANCING SOURCES (USES):

Proceeds from capital lease - - - -
Proceeds from sale of capital assets - - - -
Transfers in - 1,308,597 - 1,308,597
Transfers out (449,070) (50,000) - (499,070)
Total other financing sources (uses) (449,070) 1,258,597 - 809,527 Net change in fund balances (1,385,466) 1,553,186 (1,201) 166,519 FUND BALANCES:

Beginning of year, as restated 14,072,610 1,229,867 107,458 15,409,935 End of year $ (155,599 15,625,796 $ 106,257 ) $ 15,576,454 $ Capital Projects Fund
99

City of Atwater
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
Facility Community
Police Gas Local Impact Development
Grants Tax Transportation Fee Block Grants
ASSETS
Cash and investments 83,627 $ 193,357 $ 614,952 $ 6,410,922 $ - $ Receivables:

Taxes - - - - -
Interest 94 144 692 7,196 -
Intergovernmental - - - 111,427 -
Other receivable - 99,617 - - -
Prepaid items - 855 - - -
Advance to Successor Agency Private Purpose Trust - - - - - Investment in land held for resale -----
Total assets 293,973 83,721 615,644 6,529,545 -

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - 72,015 18,700 143,069 -
Accrued liabilities - 5,494 ---
Due to other funds - - - - -
Advances from other funds - - - - -
Deposits payable -----
Other liabilities - - - 8,760 -
Unearned revenue - - - - -
Total liabilities 77,509 - 18,700 151,829 -
Deferred Inflows of Resources
Unavailable revenues - 41,867 - - -
Total deferred inflows of resources 41,867 - - - -
Fund Balances:

Nonspendable
Prepaid items - 294 ---
Investment in land held for resale -----
Restricted - 174,303 - 6,377,716 -
Assigned 83,721 - 596,944 --
Unassigned - - - - -
Total fund balances 174,597 83,721 596,944 6,377,716 -
Total liabilities, deferred inflows of resources and
fund balances $ 293,973 83,721 $ 615,644 $ 6,529,545 $ - $ Special Revenue Funds
100

HOME Investment
CDBG Program Partnership Housing Narcotics
Income Program Authority Program
$ 510,78 238,993 $ 1,140,208 9 $ 2,05 $ 6
--- -
199 575 1,321 3
--- -
- - 7,495 -
--- -
- - 77,491 -
- - 159,364 -
511,364 239,192 1,385,879 2,059
- - 4,400 -
--- -
--- -
--- -
--- -
- - - -
- - - -
- - 4,400 -
- (29) - -
- (29) - -
--- -
- - 159,364 -
- 511,364 --
239,221 - 1,222,115 2,059
--- -
511,364 239,221 1,381,479 2,059
$ 511,364 239,192 $ 1,385,879 $ 2,059 $
Special Revenue Funds
101

City of Atwater
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
Regional Surface
Neighborhood Applegate Transportation ARPA
Stabilization Exchange Program Fund
ASSETS
Cash and investments 218,96 $ 763,35 6 $ 2,306,44 1 $ 2,509,883 4 $ Receivables:

Taxes - - - -
Interest 247 858 2,594 3,223
Intergovernmental - - 374,582 852
Other receivable - - --
Prepaid items - - - -
Advance to Successor Agency Private Purpose Trust - - - - Investment in land held for resale - - --
Total assets 764,209 219,213 2,683,620 2,513,958

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - - - 372,800
Accrued liabilities - - - -
Due to other funds - - - -
Advances from other funds - - - -
Deposits payable - - --
Other liabilities - - 3,429 11,265
Unearned revenue - - - 2,140,691
Total liabilities - - 3,429 2,524,756
Deferred Inflows of Resources
Unavailable revenues - - 374,582 -
Total deferred inflows of resources - - 374,582 -
Fund Balances:

Nonspendable
Prepaid items - - - -
Investment in land held for resale - - --
Restricted 219,213 - - -
Assigned - 764,209 2,305,609 -
Unassigned - - - (10,798)
Total fund balances 764,209 219,213 2,305,609 (10,798)
Total liabilities, deferred inflows of resources and
fund balances $ 764,209 219,213 $ 2,683,620 $ 2,513,958 $ Special Revenue Funds
102

Pension Rate General Maintenance Total Nonmajor
Stablization Plan Update District Special Revenue
115 Trust Fund Funds Funds
$ 1,195,818 244,667 $ 1,561,60 $ 17,995,633 0 $
- - 6,955 6,955
- 726 1,696 19,568
- - - 486,861
- - - 107,112
- - - 855
- - - 77,491
- - - 159,364
1,196,544 244,667 1,570,251 18,853,839
- 4,502 17,872 633,358
- - 8,626 14,120
-- - -
-- - -
-- - -
- - - 23,454
- - - 2,140,691
4,502 - 26,498 2,811,623
- - - 416,420
- - - 416,420
- - - 294
- - - 159,364
244,667 1,192,042 - 8,719,305
- - 1,546,233 6,760,111
- - (2,480) (13,278)
1,192,042 244,667 1,543,753 15,625,796
$ 1,196,544 244,667 $ 1,570,251 $ 18,853,839 $
Special Revenue Funds
103

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2022
Facility
Police Gas Local Impact
Grants Tax Transportation Fee
REVENUES:

Taxes and assessments - $ - $ 16,814 $ 488,397 $
Intergovernmental 7,390 728,629 32,391 641,823
Use of money and property (457) (1,260) (3,365) (35,001) Other revenues - 355 - 4,849
Total revenues 727,724 6,933 45,840 1,100,068
EXPENDITURES:

Current:

General government - - - 127
Public safety 1---
Highways and streets - 891,158 - -
Urban redevelopment and housing ----
Community services - - - -
Capital outlay 4,745 - 20,105 520,522
Total expenditures 891,158 4,746 20,105 520,649

REVENUES OVER (UNDER)
EXPENDITURES (163,434) 2,187 25,735 579,419
OTHER FINANCING SOURCES (USES):

Proceeds from capital lease - - - -
Proceeds from sale of capital assets - - - -
Transfers in 142,327 - - 111,000
Transfers out - - - -
Total other financing sources (uses) - 142,327 - 111,000 Net change in fund balances (21,107) 2,187 25,735 690,419 FUND BALANCES:

Beginning of year 81,534 195,704 571,209 5,687,297
End of year $ 174,597 83,721 $ 596,944 $ 6,377,716 $
Special Revenue Funds
104

Community HOME Investment
Development CDBG Program Partnership Housing Narcotics
Block Grants Income Program Authority Program
$ - - $ - $ - $ - $
-----
- (1,445) (2,752) (6,103) (11)
- 111,075 119,761 22,490 -
109,630 - 117,009 16,387 (11)
-----
-----
-----
- - - 25,073 -
- - - - -
-----
- - - 25,073 -
109,630 - 117,009 (8,686) (11)
- - - - -
- - - - -
- 12,441 - - -
- - - (50,000) -
12,441 - - (50,000) -
109,630 12,441 117,009 (58,686) (11)
(12,441) 129,591 394,355 1,440,165 2,070
$ 239,22 - $ 511,364 1 $ 1,381,479 $ 2,059 $
Special Revenue Funds
105

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2022
Regional Surface
Neighborhood Applegate Transportation ARPA
Stabilization Exchange Program Fund
REVENUES:

Taxes and assessments - $ 3,789 $ - $ - $
Intergovernmental - - - 1,394,880
Use of money and property (1,208) (4,210) (12,515) (10,799) Other revenues - - --
Total revenues (421) (1,208) (12,515) 1,384,081
EXPENDITURES:

Current:

General government - - - 568,854
Public safety - - --
Highways and streets - - --
Urban redevelopment and housing - - --
Community services - - - 61,408
Capital outlay - - - 764,617
Total expenditures - - - 1,394,879

REVENUES OVER (UNDER)
EXPENDITURES (421) (1,208) (12,515) (10,798)
OTHER FINANCING SOURCES (USES):

Proceeds from capital lease - - - -
Proceeds from sale of capital assets - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - --
Net change in fund balances (421) (1,208) (12,515) (10,798) FUND BALANCES:

Beginning of year 220,421 764,630 2,318,124 -
End of year $ 764,209 219,213 $ 2,305,609 $ (10,798 $ ) Special Revenue Funds
106

Pension Rate General Maintenance Total Nonmajor
Stablization Plan Update District Special Revenue
115 Trust Fund Funds Funds
$ - - $ 741,899 $ 1,250,899 $
- - - 2,805,113
(31,676) (8,023) (8,840) (127,665)
- - - 258,530
(8,023) (31,676) 733,059 4,186,877
- 50,000 - 618,981
-- - 1
- - - 891,158
- - 936,670 961,743
- - - 61,408
- - 49,008 1,358,997
50,000 - 985,678 3,892,288
(58,023) (31,676) (252,619) 294,589
- -
- - - -
900,000 50,000 92,829 1,308,597
- - - (50,000)
50,000 900,000 92,829 1,258,597
841,977 18,324 (159,790) 1,553,186
226,343 350,065 1,703,543 14,072,610
$ 1,192,042 244,667 $ 1,543,753 $ 15,625,796 $
Special Revenue Funds
107

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Grants Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 19,125 19,125 $ 7,390 $ $ (11,735) Fines, forfeitures and assessments - - (457) (457)
Miscellaneous ----
Total revenues 19,125 19,125 6,933 (12,192)
EXPENDITURES:

Current:

Public safety - - 1 (1)
Capital outlay:

General capital outlay 19,125 19,125 4,745 14,380
Total expenditures 19,125 19,125 4,746 14,379

REVENUES OVER (UNDER)
EXPENDITURES - - 2,187 2,187
OTHER FINANCING SOURCES (USES):

Capital lease - - - -
Total other financing sources (uses) - - - -
Net change in fund balances $ - - $ 2,187 2,187 $
FUND BALANCES:

Beginning of year 81,534
End of year $ 83,721
Budget Amounts
108

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 733,623 733,623 $ 728,629 $ $ (4,994) Fines, forfeitures and assessments - - (1,260) (1,260)
Miscellaneous - - 355 355
Total revenues 733,623 733,623 727,724 (5,899)
EXPENDITURES:

Current:

Public works 929,086 929,086 891,158 37,928
Total expenditures 929,086 929,086 891,158 37,928

REVENUES OVER (UNDER)
EXPENDITURES (195,463) (195,463) (163,434) 32,029
OTHER FINANCING SOURCES (USES):

Transfers in 142,327 142,327 142,327 -
Total other financing sources (uses) 142,327 142,327 142,327 - Net change in fund balances $ (53,136) (53,136) $ (21,107) 32,029 $ FUND BALANCES:

Beginning of year 195,704
End of year $ 174,597
Budget Amounts
109

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Transportation Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 16,814 $ 16,814 $
Charges for services 32,391 32,391 32,391 -
Fines, forfeitures and assessments 500 500 (3,365) (3,865) Total revenues 32,891 32,891 45,840 12,949
EXPENDITURES:

Capital outlay:

General capital outlay 432,410 432,410 20,105 412,305
Total expenditures 432,410 432,410 20,105 412,305

REVENUES OVER (UNDER)
EXPENDITURES (399,519) (399,519) 25,735 425,254
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Total other financing sources (uses) - - - -
Net change in fund balances $ (399,519) (399,519) $ 25,735 425,254 $ FUND BALANCES:

Beginning of year 571,209
End of year $ 596,944
Budget Amounts
110

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Facility Impact Fee Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 488,397 $ 488,397 $
Charges for services 745,143 745,143 641,823 (103,320)
Fines, forfeitures and assessments 18,200 18,200 (35,001) (53,201) Miscellaneous 4,425 4,425 4,849 424
Total revenues 767,768 767,768 1,100,068 332,300
EXPENDITURES:

Current:

General government - - 127 (127)
Capital outlay:

General capital outlay 3,060,726 3,060,726 520,522 2,540,204 Total expenditures 3,060,726 3,060,726 520,649 2,540,077

REVENUES OVER (UNDER)
EXPENDITURES (2,292,958) (2,292,958) 579,419 2,872,377
OTHER FINANCING SOURCES (USES):

Sale of capital assets - - - -
Total other financing sources (uses) 111,000 111,000 111,000 - Net change in fund balances $ (2,181,958) (2,181,958) $ 690,419 2,872,377 $ FUND BALANCES:

Beginning of year 5,687,297
End of year $ 6,377,716
Budget Amounts
111

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grants Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Licenses and permits ----
Intergovernmental ----
Charges for services ----
Fines, forfeitures and assessments ----
Use of money and property ----
Loan payments ----
Miscellaneous ----
Total revenues - - - -
EXPENDITURES:

Current:

General government ----
Public safety ----
Public works ----
Community development ----
Non-departamental ----
Capital outlay:

General capital outlay ----
Street improvements ----
Total expenditures - - - -

REVENUES OVER (UNDER)

EXPENDITURES - - - -
OTHER FINANCING SOURCES (USES):

Transfers in 12,441 12,441 12,441 -
Transfers out - - - -
Sale of capital assets - - - -
Total other financing sources (uses) 12,441 12,441 12,441 - Special item - - - -
Net change in fund balances $ 12,441 12,441 $ 12,441 - $ FUND BALANCES:

Beginning of year (12,441)
End of year $ -
Budget Amounts
112

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CDBG Program Income Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 100 100 $ $ (1,445) $ (1,545) Miscellaneous 21,110 21,110 111,075 89,965
Total revenues 21,210 21,210 109,630 88,420

REVENUES OVER (UNDER)
EXPENDITURES 21,210 21,210 109,630 88,420
Net change in fund balances $ 21,210 21,210 $ 109,630 88,420 $ FUND BALANCES:

Beginning of year 129,591
End of year $ 239,221
Budget Amounts
113

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Home Investment Partnership Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 1,100 1,100 $ $ (2,752) $ (3,852) Miscellaneous 119,761 119,761 119,761 -
Total revenues 120,861 120,861 117,009 (3,852)

REVENUES OVER (UNDER)
EXPENDITURES 120,861 120,861 117,009 (3,852)
Net change in fund balances $ 120,861 120,861 $ 117,009 (3,852) $ FUND BALANCES:

Beginning of year 394,355
End of year $ 511,364
Budget Amounts
114

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Authority Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 1,000 1,000 $ $ (6,103) $ (7,103) Total revenues 31,120 31,120 16,387 (14,733)
EXPENDITURES:

Current:

Community development 40,120 40,120 25,073 15,047
Total expenditures 40,120 40,120 25,073 15,047

REVENUES OVER (UNDER)
EXPENDITURES (9,000) (9,000) (8,686) 314
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (50,000) (50,000) (50,000) -
Sale of capital assets - - - -
Total other financing sources (uses) (50,000) (50,000) (50,000) - Net change in fund balances $ (59,000) (59,000) $ (58,686) 314 $ FUND BALANCES:

Beginning of year 1,440,165
End of year $ 1,381,479
Budget Amounts
115

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Narcotics Program Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (11) $ (11) Total revenues - - (11) (11)

REVENUES OVER (UNDER)
EXPENDITURES - - (11) (11)
Net change in fund balances $ - - $ (11) (11) $
FUND BALANCES:

Beginning of year 2,070
End of year $ 2,059
Budget Amounts
116

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Neighborhood Stablization Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 1,000 1,000 $ $ (1,208) $ (2,208) Total revenues 1,000 1,000 (1,208) (2,208)
Net change in fund balances $ 1,000 1,000 $ (1,208) (2,208) $ FUND BALANCES:

Beginning of year 220,421
End of year $ 219,213
Budget Amounts
117

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Applegate Interchange Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 5,000 5,000 $ $ (4,210) $ (9,210) Total revenues 5,000 5,000 (421) (5,421)

REVENUES OVER (UNDER)
EXPENDITURES 5,000 5,000 (421) (5,421)
Net change in fund balances $ 5,000 5,000 $ (421) (5,421) $ FUND BALANCES:

Beginning of year 764,630
End of year $ 764,209
Budget Amounts
118

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Regional Surface Transportation Program
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 380,159 380,159 $ - $ $ (380,159) Fines, forfeitures and assessments 5,000 5,000 (12,515) (17,515) Total revenues 385,159 385,159 (12,515) (397,674)
EXPENDITURES:

Capital outlay:

General capital outlay 1,747,644 1,747,644 - 1,747,644
Total expenditures 1,747,644 1,747,644 - 1,747,644

REVENUES OVER (UNDER)
EXPENDITURES (1,362,485) (1,362,485) (12,515) 1,349,970 Net change in fund balances $ (1,362,485) (1,362,485) $ (12,515) 1,349,970 $ FUND BALANCES:

Beginning of year 2,318,124
End of year $ 2,305,609
Budget Amounts
119

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ARPA Grant
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Licenses and permits ----
Intergovernmental ----
Charges for services $ 3,535,57 3,535,571 $ 1,394,880 1 $ (2,140,691 $ ) Fines, forfeitures and assessments - - (10,799 $ (10,799 ) ) Total revenues 3,535,571 3,535,571 1,384,081 (2,151,490) EXPENDITURES:

Current:

General government 782,373 782,373 568,854 213,519
Community development - - 61,408 (61,408)
Non-departamental 70,060 70,060 - 70,060
Capital outlay:

General capital outlay 1,989,903 1,989,903 764,617 1,225,286 Total expenditures 2,842,336 2,842,336 1,394,879 1,447,457

REVENUES OVER (UNDER)
EXPENDITURES 693,235 693,235 (10,798) (704,033)
Net change in fund balances $ 693,235 693,235 $ (10,798) (704,033) $ FUND BALANCES:

Beginning of year -
End of year $ (10,798)
Budget Amounts
120

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Pension Rate Stablization 115 Trust Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - - $ $ (31,676) $ (31,676) Total revenues - - (31,676) (31,676)
Net change in fund balances $ 50,000 50,000 $ 18,324 (31,676) $ FUND BALANCES:

Beginning of year 226,343
End of year $ 244,667
Budget Amounts
121

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Plan Update Grant Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 160,000 160,000 $ - $ (160,000)
Use of money and property - - (8,023) (8,023)
Total revenues 160,000 160,000 (8,023) (168,023)
EXPENDITURES:

Current:

General government 1,560,000 1,560,000 50,000 1,510,000 General capital outlay 150,000 150,000 - 150,000
Total expenditures 1,710,000 1,710,000 50,000 1,660,000

REVENUES OVER (UNDER)
EXPENDITURES (1,550,000) (1,550,000) (58,023) 1,491,977 OTHER FINANCING SOURCES (USES):

Transfers in 900,000 900,000 900,000 -
Transfers out - - - -
Sale of capital assets - - - -
Total other financing sources (uses) 900,000 900,000 900,000 - Special item - - - -
Net change in fund balances $ (650,000) (650,000) $ 841,977 1,491,977 $ FUND BALANCES:

Beginning of year 350,065
End of year $ 1,192,042
Budget Amounts
122

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123

City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds
June 30, 2022
Northwood Orchard Parks Wildwood Woodview
Village Estates Estates Garland
ASSETS
Cash and investments 20 $ 95,030 $ 7,607 $ 4 $
Receivables:

Taxes 57 3 1 -
Interest - 107 4 -
Prepaid items - - - -
Total assets 95,140 77 7,612 4

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 324 121 45 12
Accrued liabilities - - - -
Due to other funds - - - -
Total liabilities 121 324 45 12
Fund Balances:

Assigned - 95,019 7,567 -
Unassigned (247) - - (8)
Total fund balances 95,019 (247) 7,567 (8)
Total liabilities, deferred inflows of resources and
fund balances $ 95,140 77 $ 7,612 $ 4 $
Special Revenue Funds
124

Shaffer Lakes Sierra Shaffer Lakes Price Sandlewood
West Woodhaven Parks East Annexation Square
$ 17,250 24,857 $ 4 $ 106,139 $ 19,585 $ 16,689 $
- 126 1 161 627 2
19 28 - 118 22 18
- - - - - -
17,269 25,011 5 106,418 20,234 16,709
13 40 2,230 160 5,151 370
- - - - - -
- - - - - -
13 40 2,230 160 5,151 370
17,256 24,971 - 106,258 15,083 16,339
- - (2,225) - - -
17,256 24,971 (2,225) 106,258 15,083 16,339
$ 17,269 25,011 $ 5 $ 106,418 $ 20,234 $ 16,709 $
Special Revenue Funds
125

City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds
June 30, 2022
Airport
Pajaro Redwood Cottage Business
Dunes Estates Gardens Park
ASSETS
Cash and investments 43,272 $ 64,253 $ 27,833 $ 11,927 $ Receivables:

Taxes 122 36 - 618
Interest 49 72 32 10
Prepaid items - - - -
Total assets 64,361 43,443 27,865 12,555

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 340 269 159 59
Accrued liabilities - - - -
Due to other funds - - - -
Total liabilities 269 340 159 59
Fund Balances:

Assigned 43,103 64,092 27,706 12,496
Unassigned - - - -
Total fund balances 64,092 43,103 27,706 12,496
Total liabilities, deferred inflows of resources and
fund balances $ 64,361 43,443 $ 27,865 $ 12,555 $
Special Revenue Funds
126

Silva Mello Camelia Juniper Camelia Stone
Ranch Ranch Estates Meadows Meadows Creek
$ 85,228 72,192 $ 21,769 $ 13,300 $ 39,643 $ 158,029 $
110 - - - - 89
96 83 24 13 45 178
- - - - - -
85,434 72,275 21,793 13,313 39,688 158,296
845 473 61 159 382 1,128
- - - - - -
- - - - - -
845 473 61 159 382 1,128
84,589 71,802 21,732 13,154 39,306 157,168
- - - - - -
84,589 71,802 21,732 13,154 39,306 157,168
$ 85,434 72,275 $ 21,793 $ 13,313 $ 39,688 $ 158,296 $
Special Revenue Funds
127

City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds
June 30, 2022
America Bell Atwater Beluga
West Crossing South Court
ASSETS
Cash and investments 58,415 $ 11,463 $ 107,808 $ 6,525 $ Receivables:

Taxes - 9 5 -
Interest 66 14 123 7
Prepaid items - - - -
Total assets 11,486 58,481 107,936 6,532

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 135 532 1,470 -
Accrued liabilities - - - -
Due to other funds - - - -
Total liabilities 532 135 1,470 -
Fund Balances:

Assigned 58,346 10,954 106,466 6,532
Unassigned - - - -
Total fund balances 10,954 58,346 106,466 6,532
Total liabilities, deferred inflows of resources and
fund balances $ 11,486 58,481 $ 107,936 $ 6,532 $
Special Revenue Funds
128

Mello Meadow Applegate
Ranch 2 View Aspenwood Ranch Reserve CFD District
$ 95,011 196,779 $ 112,933 $ 29,984 $ 12,971 $ 74,740 $ - 5 - 64 - 4,918
108 221 128 34 15 31
- - - - - -
95,119 197,005 113,061 30,082 12,986 79,689
898 1,122 645 729 - -
- - - - - 8,626
- - - - - -
898 1,122 645 729 - 8,626
94,221 195,883 112,416 29,353 12,986 71,063
- - - - - -
94,221 195,883 112,416 29,353 12,986 71,063
$ 95,119 197,005 $ 113,061 $ 30,082 $ 12,986 $ 79,689 $ Special Revenue Funds
129

City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds
June 30, 2022
Simon Simon Juniper Total Maintenance
Annexation Annexation Meadows 2 District Special
Lighting District Landscape District Lighting District Revenue Funds ASSETS
Cash and investments 12,561 $ 6,222 $ 11,557 $ 1,561,600 $ Receivables:

Taxes - - 1 6,955
Interest 13 7 11 1,696
Prepaid items - - - -
Total assets 6,229 12,574 11,569 1,570,251

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - - - 17,872
Accrued liabilities - - - 8,626
Due to other funds - - - -
Total liabilities - - - 26,498
Fund Balances:

Assigned 12,574 6,229 11,569 1,546,233
Unassigned - - - (2,480)
Total fund balances 6,229 12,574 11,569 1,543,753
Total liabilities, deferred inflows of resources and
fund balances $ 6,229 12,574 $ 11,569 $ 1,570,251 $
Special Revenue Funds
130

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131

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds
For the year ended June 30, 2022
Northwood Orchard Parks Wildwood Woodview
Village Estates Estates Garland
REVENUES:

Taxes and assessments 4,534 $ 211 $ 3,492 $ 391 $
Use of money and property - (525) (52) -
Total revenues (314) 4,534 3,440 391
EXPENDITURES:

Current:

Public safety ----
Urban redevelopment and housing 9,120 4,674 1,869 976
Total expenditures 4,674 9,120 1,869 976

REVENUES OVER (UNDER)
EXPENDITURES (4,988) (4,586) 1,571 (585)
OTHER FINANCING SOURCES (USES):

Transfers in 350 4,795 5,688 627
Total other financing sources (uses) 4,795 350 5,688 627 Net change in fund balances (4,638) 209 7,259 42
FUND BALANCES:

Beginning of year (456) 99,657 308 (50)
End of year $ 95,019 (247) $ 7,567 $ (8 $ )
Special Revenue Funds
132

Shaffer Lakes Sierra Shaffer Lakes Price Sandlewood
West Woodhaven Parks East Annexation Square
$ - 2,283 $ 2,021 $ 12,435 $ 55,593 $ 7,073 $
(139) (96) - (594) (123) (95)
(96) 2,144 2,021 11,841 55,470 6,978
------
2,213 1,339 8,313 9,612 104,485 9,893
1,339 2,213 8,313 9,612 104,485 9,893
(1,435) (69) (6,292) 2,229 (49,015) (2,915)
279 280 4,210 1,460 46,774 3,674
280 279 4,210 1,460 46,774 3,674
(1,156) 211 (2,082) 3,689 (2,241) 759
24,760 18,412 (143) 102,569 17,324 15,580
$ 17,256 24,971 $ (2,225 $ 106,258 ) $ 15,083 $ 16,339 $ Special Revenue Funds
133

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds
For the year ended June 30, 2022
Airport
Pajaro Redwood Cottage Business
Dunes Estates Gardens Park
REVENUES:

Taxes and assessments 3,440 $ 3,630 $ 402 $ 5,374 $
Use of money and property (239) (355) (153) (72)
Total revenues 3,275 3,201 249 5,302
EXPENDITURES:

Current:

Public safety ----
Urban redevelopment and housing 6,065 8,982 3,108 5,139 Total expenditures 8,982 6,065 3,108 5,139

REVENUES OVER (UNDER)
EXPENDITURES (5,707) (2,864) (2,859) 163
OTHER FINANCING SOURCES (USES):

Transfers in 3,276 1,057 594 3,369
Total other financing sources (uses) 1,057 3,276 594 3,369 Net change in fund balances (2,431) (1,807) (2,265) 3,532 FUND BALANCES:

Beginning of year 44,910 66,523 29,971 8,964
End of year $ 64,092 43,103 $ 27,706 $ 12,496 $
Special Revenue Funds
134

Silva Mello Camelia Juniper Camelia Stone
Ranch Ranch Estates Meadows Meadows Creek
$ 7,966 - $ - $ - $ - $ 10,490 $
(398) (476) (121) (77) (218) (878)
7,490 (398) (121) (77) (218) 9,612
------
13,102 17,533 1,846 1,973 5,110 22,175
17,533 13,102 1,846 1,973 5,110 22,175
(10,043) (13,500) (1,967) (2,050) (5,328) (12,563)
1,184 364 312 2,768 312 949
364 1,184 312 2,768 312 949
(8,859) (13,136) (1,655) 718 (5,016) (11,614)
84,938 93,448 23,387 12,436 44,322 168,782
$ 84,589 71,802 $ 21,732 $ 13,154 $ 39,306 $ 157,168 $
Special Revenue Funds
135

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds
For the year ended June 30, 2022
America Bell Atwater Beluga
West Crossing South Court
REVENUES:

Taxes and assessments - $ 2,954 $ 650 $ - $
Use of money and property (323) (62) (594) (36)
Total revenues 2,892 (323) 56 (36)
EXPENDITURES:

Current:

Public safety ----
Urban redevelopment and housing 2,401 17,454 22,652 120 Total expenditures 17,454 2,401 22,652 120

REVENUES OVER (UNDER)
EXPENDITURES (14,562) (2,724) (22,596) (156)
OTHER FINANCING SOURCES (USES):

Transfers in 1,875 415 1,638 15
Total other financing sources (uses) 415 1,875 1,638 15 Net change in fund balances (12,687) (2,309) (20,958) (141) FUND BALANCES:

Beginning of year 60,655 23,641 127,424 6,673
End of year $ 10,954 58,346 $ 106,466 $ 6,532 $
Special Revenue Funds
136

Mello Meadow Applegate
Ranch 2 View Aspenwood Ranch Reserve CFD District
$ - 13,677 $ 6 $ 3,933 $ - $ 599,011 $
(1,092) (524) (615) (165) (72) (572)
(524) 12,585 (609) 3,768 (72) 598,439
------
18,765 17,865 9,551 8,086 157 601,761
17,865 18,765 9,551 8,086 157 650,769
(18,389) (6,180) (10,160) (4,318) (229) (52,330)
754 986 377 523 126 -
986 754 377 523 126 -
(17,635) (5,194) (9,783) (3,795) (103) (52,330)
201,077 111,856 122,199 33,148 13,089 123,393
$ 94,22 195,883 $ 112,416 1 $ 29,353 $ 12,986 $ 71,063 $ Special Revenue Funds
137

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2022
Simon Simon Juniper Total Maintenance
Annexation Annexation Meadows 2 District Special
Lighting District Landscape District Lighting District Revenue Funds REVENUES:

Taxes and assessments - $ - $ 2,333 $ 741,899 $
Use of money and property (71) (34) (69) (8,840)
Total revenues (34) (71) 2,264 733,059
EXPENDITURES:

Current:

Public safety ----
Urban redevelopment and housing 33 60 238 936,670
Total expenditures 60 33 238 985,678

REVENUES OVER (UNDER)
EXPENDITURES (94) (104) 2,026 (252,619)
OTHER FINANCING SOURCES (USES):

Transfers in 4 1,045 2,749 92,829
Total other financing sources (uses) 1,045 4 2,749 92,829 Net change in fund balances (90) 941 4,775 (159,790)
FUND BALANCES:

Beginning of year 11,633 6,319 6,794 1,703,543
End of year $ 6,229 12,574 $ 11,569 $ 1,543,753 $
Special Revenue Funds
138

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Northwood Village - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 4,534 $ 4,534 $
Total revenues - - 4,534 4,534
EXPENDITURES:

Current:

Community development - - 9,120 (9,120)
Total expenditures - - 9,120 (9,120)

REVENUES OVER (UNDER)
EXPENDITURES - - (4,586) (4,586)
OTHER FINANCING SOURCES (USES):

Transfers in - - 4,795 4,795
Total other financing sources (uses) - - 4,795 4,795
Net change in fund balances $ - - $ 209 209 $
FUND BALANCES:

Beginning of year (456)
End of year $ (247)
Budget Amounts
139

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Orchard Pakrs Estates - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 211 $ 211 $
Fines, forfeitures and assessments - - (525) (525)
Total revenues - - (314) (314)
EXPENDITURES:

Current:

Community development - - 4,674 (4,674)
Total expenditures - - 4,674 (4,674)

REVENUES OVER (UNDER)
EXPENDITURES - - (4,988) (4,988)
OTHER FINANCING SOURCES (USES):

Transfers in - - 350 350
Total other financing sources (uses) - - 350 350
Net change in fund balances $ - - $ (4,638) (4,638) $
FUND BALANCES:

Beginning of year 99,657
End of year $ 95,019
Budget Amounts
140

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Wildwood Estates - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 3,492 $ 3,492 $
Total revenues - - 3,440 3,440
EXPENDITURES:

Current:

Community development - - 1,869 (1,869)
Total expenditures - - 1,869 (1,869)

REVENUES OVER (UNDER)
EXPENDITURES - - 1,571 1,571
OTHER FINANCING SOURCES (USES):

Transfers in - - 5,688 5,688
Total other financing sources (uses) - - 5,688 5,688
Net change in fund balances $ - - $ 7,259 7,259 $
FUND BALANCES:

Beginning of year 308
End of year $ 7,567
Budget Amounts
141

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Woodview Garland - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 391 $ 391 $
Total revenues - - 391 391
EXPENDITURES:

Current:

Community development - - 976 (976)
Total expenditures - - 976 (976)

REVENUES OVER (UNDER)
EXPENDITURES - - (585) (585)
OTHER FINANCING SOURCES (USES):

Transfers in - - 627 627
Total other financing sources (uses) - - 627 627
Net change in fund balances $ - - $ 42 42 $
FUND BALANCES:

Beginning of year (50)
End of year $ (8)
Budget Amounts
142

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Shaffer Lake West - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 2,283 $ 2,283 $
Fines, forfeitures and assessments - - (139) (139)
Total revenues - - 2,144 2,144
EXPENDITURES:

Current:

Community development - - 2,213 (2,213)
Total expenditures - - 2,213 (2,213)

REVENUES OVER (UNDER)
EXPENDITURES - - (69) (69)
OTHER FINANCING SOURCES (USES):

Transfers in - - 280 280
Total other financing sources (uses) - - 280 280
Net change in fund balances $ - - $ 211 211 $
FUND BALANCES:

Beginning of year 24,760
End of year $ 24,971
Budget Amounts
143

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Woodhaven - Maintenance District Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (96) $ (96) Total revenues - - (96) (96)
EXPENDITURES:

Current:

Community development - - 1,339 (1,339)
Total expenditures - - 1,339 (1,339)

REVENUES OVER (UNDER)
EXPENDITURES - - (1,435) 1,243
OTHER FINANCING SOURCES (USES):

Transfers in - - 279 279
Total other financing sources (uses) - - 279 279
Net change in fund balances $ - - $ (1,156) 1,522 $
FUND BALANCES:

Beginning of year 18,412
End of year $ 17,256
Budget Amounts
144

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sierra Parks - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 2,021 $ 2,021 $
Total revenues - - 2,021 2,021
EXPENDITURES:

Current:

Community development - - 8,313 (8,313)
Total expenditures - - 8,313 (8,313)

REVENUES OVER (UNDER)
EXPENDITURES - - (6,292) (6,292)
OTHER FINANCING SOURCES (USES):

Transfers in - - 4,210 4,210
Total other financing sources (uses) - - 4,210 4,210
Net change in fund balances $ - - $ (2,082) (2,082) $
FUND BALANCES:

Beginning of year (143)
End of year $ (2,225)
Budget Amounts
145

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Shaffer Lakes East - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 12,435 $ 12,435 $
Fines, forfeitures and assessments - - (594) (594)
Total revenues - - 11,841 11,841
EXPENDITURES:

Community development - - 9,612 (9,612)
Total expenditures - - 9,612 (9,612)

REVENUES OVER (UNDER)
EXPENDITURES - - 2,229 2,229
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,460 1,460
Total other financing sources (uses) - - 1,460 1,460
Net change in fund balances $ - - $ 3,689 3,689 $
FUND BALANCES:

Beginning of year 102,569
End of year $ 106,258
Budget Amounts
146

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Price Annexation - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 55,593 $ 55,593 $
Fines, forfeitures and assessments - - (123) (123)
Total revenues - - 55,470 55,470
EXPENDITURES:

Current:

Community development - - 104,485 (104,485)
Total expenditures - - 104,485 (104,485)

REVENUES OVER (UNDER)
EXPENDITURES - - (49,015) (49,015)
OTHER FINANCING SOURCES (USES):

Transfers in - - 46,774 46,774
Total other financing sources (uses) - - 46,774 46,774
Net change in fund balances $ - - $ (2,241) (2,241) $
FUND BALANCES:

Beginning of year 17,324
End of year $ 15,083
Budget Amounts
147

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sandalwood Square - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 7,073 $ 7,073 $
Fines, forfeitures and assessments - - (95) (95)
Total revenues - - 6,978 6,978
EXPENDITURES:

Current:

Community development - - 9,893 (9,893)
Total expenditures - - 9,893 (9,893)

REVENUES OVER (UNDER)
EXPENDITURES - - (2,915) (2,915)
OTHER FINANCING SOURCES (USES):

Transfers in - - 3,674 3,674
Total other financing sources (uses) - - 3,674 3,674
Net change in fund balances $ - - $ 759 759 $
FUND BALANCES:

Beginning of year 15,580
End of year $ 16,339
Budget Amounts
148

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Pajaro Dunes - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 3,440 $ 3,440 $
Fines, forfeitures and assessments - - (239) (239)
Total revenues - - 3,201 3,201
EXPENDITURES:

Current:

Community development - - 6,065 (6,065)
Total expenditures - - 6,065 (6,065)

REVENUES OVER (UNDER)
EXPENDITURES - - (2,864) (2,864)
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,057 1,057
Total other financing sources (uses) - - 1,057 1,057
Net change in fund balances $ - - $ (1,807) (1,807) $
FUND BALANCES:

Beginning of year 44,910
End of year $ 43,103
Budget Amounts
149

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Redwood Estates - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 3,630 $ 3,630 $
Fines, forfeitures and assessments - - (355) (355)
Total revenues - - 3,275 3,275
EXPENDITURES:

Current:

Community development - - 8,982 (8,982)
Total expenditures - - 8,982 (8,982)

REVENUES OVER (UNDER)
EXPENDITURES - - (5,707) (5,707)
OTHER FINANCING SOURCES (USES):

Transfers in - - 3,276 3,276
Total other financing sources (uses) - - 3,276 3,276
Net change in fund balances $ - - $ (2,431) (2,431) $
FUND BALANCES:

Beginning of year 66,523
End of year $ 64,092
Budget Amounts
150

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cottage Gardens - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 402 $ 402 $
Fines, forfeitures and assessments - - (153) (153)
Total revenues - - 249 249
EXPENDITURES:

Current:

Community development - - 3,108 (3,108)
Total expenditures - - 3,108 (3,108)

REVENUES OVER (UNDER)
EXPENDITURES - - (2,859) (2,859)
OTHER FINANCING SOURCES (USES):

Transfers in - - 594 594
Total other financing sources (uses) - - 594 594
Net change in fund balances $ - - $ (2,265) (2,265) $
FUND BALANCES:

Beginning of year 29,971
End of year $ 27,706
Budget Amounts
151

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Airport Business Park - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 5,374 $ 5,374 $
Fines, forfeitures and assessments - - (72) (72)
Total revenues - - 5,302 5,302
EXPENDITURES:

Current:

Community development - - 5,139 (5,139)
Total expenditures - - 5,139 (5,139)

REVENUES OVER (UNDER)
EXPENDITURES - - 163 163
OTHER FINANCING SOURCES (USES):

Transfers in - - 3,369 3,369
Total other financing sources (uses) - - 3,369 3,369
Net change in fund balances $ - - $ 3,532 3,532 $
FUND BALANCES:

Beginning of year 8,964
End of year $ 12,496
Budget Amounts
152

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Silva Ranch - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (398) $ (398) Total revenues - - (398) (398)
EXPENDITURES:

Current:

Community development - - 13,102 (13,102)
Total expenditures - - 13,102 (13,102)

REVENUES OVER (UNDER)
EXPENDITURES - - (13,500) (13,500)
OTHER FINANCING SOURCES (USES):

Transfers in - - 364 364
Total other financing sources (uses) - - 364 364
Net change in fund balances $ - - $ (13,136) (13,136) $ FUND BALANCES:

Beginning of year 84,938
End of year $ 71,802
Budget Amounts
153

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Mello Ranch - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 7,966 $ 7,966 $
Fines, forfeitures and assessments - - (476) (476)
Total revenues - - 7,490 7,490
EXPENDITURES:

Current:

Community development - - 17,533 (17,533)
Total expenditures - - 17,533 (17,533)

REVENUES OVER (UNDER)
EXPENDITURES - - (10,043) (10,043)
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,184 1,184
Total other financing sources (uses) - - 1,184 1,184
Net change in fund balances $ - - $ (8,859) (8,859) $
FUND BALANCES:

Beginning of year 93,448
End of year $ 84,589
Budget Amounts
154

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Camelia Estates - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (121) $ (121) Total revenues - - (121) (121)
EXPENDITURES:

Current:

Community development - - 1,846 (1,846)
Total expenditures - - 1,846 (1,846)

REVENUES OVER (UNDER)
EXPENDITURES - - (1,967) (1,967)
OTHER FINANCING SOURCES (USES):

Transfers in - - 312 312
Total other financing sources (uses) - - 312 312
Net change in fund balances $ - - $ (1,655) (1,655) $
FUND BALANCES:

Beginning of year 23,387
End of year $ 21,732
Budget Amounts
155

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Juniper Meadows - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Fines, forfeitures and assessments - - (77) (77)
Total revenues - - (77) (77)
EXPENDITURES:

Current:

Community development - - 1,973 (1,973)
Total expenditures - - 1,973 (1,973)

REVENUES OVER (UNDER)
EXPENDITURES - - (2,050) (2,050)
OTHER FINANCING SOURCES (USES):

Transfers in - - 2,768 2,768
Total other financing sources (uses) - - 2,768 2,768
Net change in fund balances $ - - $ 718 718 $
FUND BALANCES:

Beginning of year 12,436
End of year $ 13,154
Budget Amounts
156

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Camelia Meadows - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Fines, forfeitures and assessments - - (218) (218)
Total revenues - - (218) (218)
EXPENDITURES:

Current:

Community development - - 5,110 (5,110)
Total expenditures - - 5,110 (5,110)

REVENUES OVER (UNDER)
EXPENDITURES - - (5,328) (5,328)
OTHER FINANCING SOURCES (USES):

Transfers in - - 312 312
Total other financing sources (uses) - - 312 312
Net change in fund balances $ - - $ (5,016) (5,016) $
FUND BALANCES:

Beginning of year 44,322
End of year $ 39,306
Budget Amounts
157

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Stone Creek - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 10,490 $ 10,490 $
Fines, forfeitures and assessments - - (878) (878)
Total revenues - - 9,612 9,612
EXPENDITURES:

Current:

Community development - - 22,175 (22,175)
Total expenditures - - 22,175 (22,175)

REVENUES OVER (UNDER)
EXPENDITURES - - (12,563) (12,563)
OTHER FINANCING SOURCES (USES):

Transfers in - - 949 949
Total other financing sources (uses) - - 949 949
Net change in fund balances $ - - $ (11,614) (11,614) $ FUND BALANCES:

Beginning of year 168,782
End of year $ 157,168
Budget Amounts
158

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual America West - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (323) $ (323) Total revenues - - (323) (323)
EXPENDITURES:

Current:

Community development - - 2,401 (2,401)
Total expenditures - - 2,401 (2,401)

REVENUES OVER (UNDER)
EXPENDITURES - - (2,724) (2,724)
OTHER FINANCING SOURCES (USES):

Transfers in - - 415 415
Total other financing sources (uses) - - 415 415
Net change in fund balances $ - - $ (2,309) (2,309) $
FUND BALANCES:

Beginning of year 60,655
End of year $ 58,346
Budget Amounts
159

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Bell Crossing - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 2,954 $ 2,954 $
Fines, forfeitures and assessments - - (62) (62)
Total revenues - - 2,892 2,892
EXPENDITURES:

Current:

Community development - - 17,454 (17,454)
Total expenditures - - 17,454 (17,454)

REVENUES OVER (UNDER)
EXPENDITURES - - (14,562) 20,346
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,875 1,875
Total other financing sources (uses) - - 1,875 1,875
Net change in fund balances $ - - $ (12,687) 22,221 $
FUND BALANCES:

Beginning of year 23,641
End of year $ 10,954
Budget Amounts
160

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Atwater South - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 650 $ 650 $
Fines, forfeitures and assessments - - (594) (594)
Total revenues - - 56 56
EXPENDITURES:

Current:

Community development - - 22,652 (22,652)
Total expenditures - - 22,652 (22,652)

REVENUES OVER (UNDER)
EXPENDITURES - - (22,596) 22,708
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,638 1,638
Total other financing sources (uses) - - 1,638 1,638
Net change in fund balances $ - - $ (20,958) 24,346 $
FUND BALANCES:

Beginning of year 127,424
End of year $ 106,466
Budget Amounts
161

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Beluga Court - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Fines, forfeitures and assessments - - (36) (36)
Total revenues - - (36) (36)
EXPENDITURES:

Current:

Community development - - 120 (120)
Total expenditures - - 120 (120)

REVENUES OVER (UNDER)
EXPENDITURES - - (156) 84
OTHER FINANCING SOURCES (USES):

Transfers in - - 15 15
Total other financing sources (uses) - - 15 15
Net change in fund balances $ - - $ (141) 99 $
FUND BALANCES:

Beginning of year 6,673
End of year $ 6,532
Budget Amounts
162

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Mello Ranch 2 - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 13,677 $ 13,677 $
Fines, forfeitures and assessments - - (1,092) (1,092)
Total revenues - - 12,585 12,585
EXPENDITURES:

Current:

Community development - - 18,765 (18,765)
Total expenditures - - 18,765 (18,765)

REVENUES OVER (UNDER)
EXPENDITURES - - (6,180) (6,180)
OTHER FINANCING SOURCES (USES):

Transfers in - - 986 986
Total other financing sources (uses) - - 986 986
Net change in fund balances $ - - $ (5,194) (5,194) $
FUND BALANCES:

Beginning of year 201,077
End of year $ 195,883
Budget Amounts
163

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Meadow View - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (524) $ (524) Total revenues - - (524) (524)
EXPENDITURES:

Current:

Community development - - 17,865 (17,865)
Total expenditures - - 17,865 (17,865)

REVENUES OVER (UNDER)
EXPENDITURES - - (18,389) (18,389)
OTHER FINANCING SOURCES (USES):

Transfers in - - 754 754
Total other financing sources (uses) - - 754 754
Net change in fund balances $ - - $ (17,635) (17,635) $ FUND BALANCES:

Beginning of year 111,856
End of year $ 94,221
Budget Amounts
164

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Aspenwood - Maintenance District Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 6 $ 6 $
Fines, forfeitures and assessments - - (615) (615)
Total revenues - - (609) (609)
EXPENDITURES:

Current:

Community development - - 9,551 (9,551)
Total expenditures - - 9,551 (9,551)

REVENUES OVER (UNDER)
EXPENDITURES - - (10,160) (10,160)
OTHER FINANCING SOURCES (USES):

Transfers in - - 377 377
Total other financing sources (uses) - - 377 377
Net change in fund balances $ - - $ (9,783) (9,783) $
FUND BALANCES:

Beginning of year 122,199
End of year $ 112,416
Budget Amounts
165

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Applegate Ranch - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 3,933 $ 3,933 $
Fines, forfeitures and assessments - - (165) (165)
Total revenues - - 3,768 3,768
EXPENDITURES:

Current:

Community development - - 8,086 (8,086)
Total expenditures - - 8,086 (8,086)

REVENUES OVER (UNDER)
EXPENDITURES - - (4,318) (4,318)
OTHER FINANCING SOURCES (USES):

Transfers in - - 523 523
Total other financing sources (uses) - - 523 523
Net change in fund balances $ - - $ (3,795) (3,795) $
FUND BALANCES:

Beginning of year 33,148
End of year $ 29,353
Budget Amounts
166

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Reserve - Maintenance District Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ - $ - $
Fines, forfeitures and assessments - - (72) (72)
Total revenues - - (72) (72)
EXPENDITURES:

Current:

Community development - - 157 (157)
Total expenditures - - 157 (157)

REVENUES OVER (UNDER)
EXPENDITURES - - (229) (229)
OTHER FINANCING SOURCES (USES):

Transfers in 136,775 136,775 126 (136,649)
Total other financing sources (uses) 136,775 136,775 126 (136,649) Net change in fund balances $ 136,775 136,775 $ (103) (136,878) $ FUND BALANCES:

Beginning of year 13,089
End of year $ 12,986
Budget Amounts
167

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CFD Districts - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 599,011 $ 599,011 $
Fines, forfeitures and assessments 100 100 (572) (672)
Total revenues 100 100 598,439 598,339
EXPENDITURES:

Current:

Public safety ----
Community development 643,036 643,036 601,761 41,275
Capital outlay:

General capital outlay 50,000 50,000 49,008 992
Total expenditures 693,036 693,036 650,769 42,267

REVENUES OVER (UNDER)
EXPENDITURES (692,936) (692,936) (52,330) 640,606
Net change in fund balances $ (692,936) (692,936) $ (52,330) 640,606 $ FUND BALANCES:

Beginning of year 123,393
End of year $ 71,063
Budget Amounts
168

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Simon Annexation Lighting District - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ $ (71) $ (71) Total revenues - - (71) (71)
EXPENDITURES:

Current:

Community development - - 33 (33)
Total expenditures - - 33 (33)

REVENUES OVER (UNDER)
EXPENDITURES - - (104) (104)
OTHER FINANCING SOURCES (USES):

Transfers in - - 1,045 1,045
Total other financing sources (uses) - - 1,045 1,045
Net change in fund balances $ - - $ 941 941 $
FUND BALANCES:

Beginning of year 11,633
End of year $ 12,574
Budget Amounts
169

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Simon Annexation Landscaping District - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - - $ (34 $ (34 ) $ ) Total revenues - - (34) (34)
EXPENDITURES:

Current:

Community development - - 60 (60)
Total expenditures - - 60 (60)

REVENUES OVER (UNDER)
EXPENDITURES - - (94) (94)
OTHER FINANCING SOURCES (USES):

Transfers in - - 4 4
Total other financing sources (uses) - - 4 4
Net change in fund balances $ - - $ (90) (90) $
FUND BALANCES:

Beginning of year 6,319
End of year $ 6,229
Budget Amounts
170

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Juniper Meadows 2 Lighting District - Maintenance District Special Revenue Fund For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - - $ 2,333 $ 2,333 $
Fines, forfeitures and assessments - - (69) (69)
Total revenues - - 2,264 2,264
EXPENDITURES:

Current:

Community development - - 238 (238)
Total expenditures - - 238 (238)

REVENUES OVER (UNDER)
EXPENDITURES - - 2,026 2,026
OTHER FINANCING SOURCES (USES):

Transfers in - - 2,749 2,749
Total other financing sources (uses) - - 2,749 2,749
Net change in fund balances $ - - $ 4,775 4,775 $
FUND BALANCES:

Beginning of year 6,794
End of year $ 11,569
Budget Amounts
171

City of Atwater
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
ASSETS
Current Assets:

Cash and investments $ 793,223 633,594 $ 927,586 $ 467,294 $ $ 2,821,697 Receivables:

Accounts - - - - -
Interest 628 816 813 442 2,699
Other 3,980 3,230 - - 7,210
Due from other funds - - - - -
Prepaid expenses 114 4,697 - 71,536 76,347
Total current assets 638,316 801,966 928,399 539,272 2,907,953 Noncurrent:

Capital assets:

Depreciable 1,980,589 - 103,094 601,348 2,685,031
Less accumulated depreciation (1,220,569) - (38,662) (516,684) (1,775,915) Net capital assets 760,020 - 64,432 84,664 909,116
Total noncurrent assets 760,020 - 64,432 84,664 909,116 Total assets 801,966 1,398,336 992,831 623,936 3,817,069

LIABILITIES
Current liabilities:

Accounts payable 78,551 11,070 23,218 24,239 137,078
Accrued payroll 6,291 --- 6,291
Compensated absences - current 2,778 - - - 2,778
Total current liabilities 87,620 11,070 23,218 24,239 146,147 Noncurrent liabilities:

Compensated absences 13,222 - - - 13,222
Total noncurrent liabilities 13,222 - - - 13,222
Total liabilities 11,070 100,842 23,218 24,239 159,369

NET POSITION
Net investment in capital assets 760,020 - 64,432 84,664 909,116 Restricted for capital projects ---- -
Unrestricted 537,474 790,896 905,181 515,033 2,748,584
Total net position $ 790,896 1,297,494 $ 969,613 $ 599,697 $ 3,657,700 $ 172

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds
For the year ended June 30, 2022
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
OPERATING REVENUES:

Interdepartmental charges $ 710,458 1,456,905 $ 1,294,987 $ 771,098 $ 4,233,448 $ Other operating revenue 2,729 54,869 97,686 - 155,284
Total operating revenues 765,327 1,459,634 1,392,673 771,098 4,388,732 OPERATING EXPENSES:

Salaries and benefits 310,114 50,000 - 131,702 491,816
Contractual services 257,312 22,450 73,432 148,008 501,202 Materials and supplies 7,742 - - - 7,742
Repairs and maintenance 708,706 - - - 708,706
Utilities 109,297 - - - 109,297
Insurance - 676,526 1,188,988 - 1,865,514
Other operating costs (18,001) - 2,445 209,338 193,782
Depreciation 81,805 - 3,143 60,728 145,676
Total operating expenses 748,976 1,456,975 1,268,008 549,776 4,023,735 Operating income (loss) 16,351 2,659 124,665 221,322 364,997 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues (expenses) (4,200) - - - (4,200) Interest revenue 723 (4,518) (5,561) (2,623) (11,979)
Total nonoperating revenues (expenses) (4,518) (3,477) (5,561) (2,623) (16,179) Income before contributions and transfers 11,833 (818) 119,104 218,699 348,818 CONTRIBUTIONS AND TRANSFERS:

Transfers in 100,000 100,000 - - 200,000
Transfers out - (50,000) - - (50,000)
Total contributions and transfers 50,000 100,000 - - 150,000 Change in net position 61,833 99,182 119,104 218,699 498,818 NET POSITION:

Beginning of year, as restated 1,198,312 729,063 850,509 380,998 3,158,882 End of year $ 790,896 1,297,494 $ 969,613 $ 599,697 $ 3,657,700 $ 173

City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds
For the year ended June 30, 2022
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 1,481,75 $ 758,488 1 $ 1,413,780 $ 753,664 $ 4,407,683 $ Cash paid to suppliers for goods and services (1,068,228) (691,502) (1,249,216) (351,892) (3,360,838) Cash paid to employees for services (290,803) (50,000) - (141,543) (482,346) Net cash provided by (used in) operating activities 16,986 122,720 164,564 260,229 564,499 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 100,000 100,000 - - 200,000
Advance from other funds -
Subsidy from grants (4,200) --- (4,200)
Net cash provided by (used in)
noncapital financing activities 50,000 95,800 - - 145,800 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (115,690) - -1 (115,689)
Net cash provided by (used in)
capital and related financing activities - (115,690) - 1 (115,689) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 723 (4,518) (5,561) (2,623) (11,979)
Net cash provided by (used in) investing activities (4,518) 723 (5,561) (2,623) (11,979) Net cash flows 62,468 103,553 159,003 257,607 582,631
CASH AND INVESTMENTS - Beginning of year 730,755 530,041 768,583 209,687 2,239,066 CASH AND INVESTMENTS - End of year $ 793,223 633,594 $ 927,586 $ 467,294 $ 2,821,697 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 16,35 2,659 $ 124,665 1 $ 221,322 $ 364,997 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 81,805 - 3,143 60,728 145,676
(Increase) decrease in accounts receivable 22,117 (2,142) 21,107 417 41,499 (Increase) decrease in prepaid expense - (4,697) - (17,851) (22,548) Increase (decrease) in accounts payable 14,829 7,474 15,649 5,454 43,406 Increase (decrease) in accrued payroll 1,733 - - (2,420) (687) Increase (decrease) in compensated absences (423) -- (7,421) (7,844) Net cash provided by (used in) operating activities $ 16,986 122,720 $ 164,564 $ 260,229 $ 564,499 $ 174

City of Atwater
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
Section 125 Community Total
Section 125 Dependent Facility District Custodial
Medical Care No.1 Funds
ASSETS
Cash and investments held for others, restricted $ - 2,023 $ 129,834 $ $ 131,857 Interest receivables - - 146 146
Total assets - 2,023 129,980 132,003

LIABILITIES
Other Liabilities - 2,023 - 2,023
Total liabilities - 2,023 - 2,023

NET POSITION
Restricted for
Bondholders - - 129,980 129,980
Total net position $ - - $ 129,980 $ 129,980 $
175

City of Atwater
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
Section 125 Community Total
Section 125 Dependent Facility District Custodial
Medical Care No.1 Funds

ADDITIONS
Property taxes revenue $ - - $ - $ $ -
Interest income - - (716) (716)
Total additions - - (716) (716)

DELETIONS
Urban Development and Housing - - - -
Total deletions - - - -
Changes in net position - - (716) (716)
Beginning of the year, as restated - - 98,697 98,697
End of year - $ - $ 97,981 $ 97,981 $
176

City of Atwater
Schedule of Debt Service Coverage
June 30, 2022 and 2021
2022 2021
Service charges $ 11,051,639 11,386,274 $
Connection fees 335,813 317,176
Total service charges 11,368,815 11,722,087
Investment income 49,714 88,905
Other income 12,878 7,193
Total miscellaneous revenue 62,592 96,098
Total Revenue $ 11,464,913 11,784,679 $
Personnel costs 1,074,520 1,433,572
Supplies (1) 131,290 108,396
Professional Services (2) 2,344,229 1,816,868
Wastewater Treatment Plant Mgmt. Service (3) 2,004,910 2,065,281 Other Charges (1), (4) 516,299 584,188
Total Operations and Maintenance 6,008,305 6,071,248
Net Revenue Available For Debt Service $ 5,456,608 5,713,431 $ Debt service:
2008 Wastewater Bond $ - - $
2010 Wastewater Bond - -
2011 Wastewater Bond - -
2017A Wastewater Revenue Refunding Bonds 3,506,636 3,293,535 2018A Wastewater Revenue Refunding Bonds 1,137,049 1,126,412 Total debt service $ 4,419,947 4,643,685 $
Net Revenue After Debt Service
Calculated coverage 1.23 1.32
Meets covenant restrictions Yes Yes
Notes:
(1) Includes Entries for Both Sewer Enterprise Fund and Wastewater Treatment Plant.

Capital Expenses are funded by transfers from the Sewer Enterprise Capital Fund (2) Includes Communications, Utilities, Memberships, Subscriptions, Travel, Conference, Meetings, Training, Rents, Leases and Miscellaneous
(3) Paid to Private Operator
(4) Includes Equipment, Streets, Water, Parks and Building Maintenance The City has covenanted in the Installment Sale Agreement, to the extent permitted by law, to fix, prescribe and collect rates and charges for the Wastewater System, respectively, which will be at least sufficient to yield "Net Revenues" equal to 120% of debt service (including the Installment Payments and debt service on other Parity Debt) coming due and payable during such Fiscal Year.
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