In-person participation by the public will be permitted. In addition, remote public participation is available in the following ways:
1. Livestream online at www.atwater.org (Please be advised that there is a broadcasting delay. If you would like to participate in public comment, please use the option below).
2. Submit a written public comment prior to the meeting: Public comments submitted to [email protected] by 4:00 p.m. on the day of the meeting will be distributed to the City Council, and made part of the official minutes but will not be read out loud during the meeting.
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Persons requesting accommodation should contact the City in advance of the meeting, and as soon as possible, at (209) 357-6241.
CITY OF ATWATER
City Council
AGENDA
Council Chambers
750 Bellevue Road
Atwater, California
August 26, 2024
CALL TO ORDER: 5:30 PM
ROLL CALL: (City Council)
Ambriz ____, Button ____, Cale ____, Raymond ____, Nelson _____ CLOSED SESSION:
Adjourn to Conference Room A
• Pursuant to Government Code Section 54956.8, Conference with Real Property Negotiations. Agency Negotiators: Deputy City
Manager/Community Development Director Thompson and City Manager Hoem. Negotiating Parties: Abbruzz Etti, Dole Packaged Foods, LLC and Pai Bulldog Ranches, LLC
City Council Agenda for Meeting of August 26, 2024 Page 2 Property Locations: APN 143-260-015
143-260-016
150-030-022
150-030-034
150-030-035
150-030-036
056-250-016
056-250-035
056-010-030
056-010-031
• Public Employee Performance Evaluation (pursuant to Government Code Section 54957): Title: City Manager
REGULAR SESSION: (Council Chambers)
CALL TO ORDER: 6:00 PM
INVOCATION:
PLEDGE OF ALLEGIANCE TO THE FLAG:
ROLL CALL: (City Council)
Ambriz ____, Button ____, Cale ____, Raymond ____, Nelson _____ MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION:
SUBSEQUENT NEED ITEMS: (The City Clerk shall announce any requests for items requiring immediate action subsequent to the posting of the agenda. Subsequent need items require a two-thirds vote of the members of the City Council present at the meeting.)
APPROVAL OF AGENDA AS POSTED OR AS AMENDED: (This is the time for the City Council to remove items from the agenda or to change the order of the agenda.) PRESENTATIONS:
• Monthly report by Merced County District 3 Supervisor McDaniel CONSENT CALENDAR:
NOTICE TO THE PUBLIC
Background information has been provided on all matters listed under the Consent Calendar, and these items are considered to be routine. All items under the Consent Calendar are normally approved by one motion. If a Councilmember requests separate discussion on any item, that item will be removed from the Consent Calendar for separate action.
City Council Agenda for Meeting of August 26, 2024 Page 3 TREASURER’S REPORT:
1. June 30, 2024
Staff's Recommendation: Acceptance of reports as listed.
WARRANTS:
2. August 26, 2024
Staff's Recommendation: Acceptance of reports as listed.
MINUTES: (City Council)
3. July 8, 2024 - Regular meeting
Staff's Recommendation: Approval of minutes as listed.
AGREEMENTS:
4. Approving and Authorizing a Purchase and Sale Agreement for APN 003-101-001 and Approving Expenditure of any Additional and Related Closing Expenses (Public Works Director Vinson)
Staff's Recommendation: Adoption of Resolution No. 3480-24 approving and authorizing a Purchase and Sale Agreement for sale of APN 003-101-001 for $5,000, in a form approved by the City Attorney, and approves the expenditure of any additional and related closing expenses; and authorizes and directs the City Manager, or his designee, to execute the Agreement on behalf of the City.
RESOLUTIONS:
5. Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/24 (Deputy City Manager/Community Development Director Thompson)
Staff's Recommendation: Adoption of Resolution No. 3481-24, authorizing and directing the City Manager to execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/2024; and adopt Resolution No. 3482-24, approving Budget Amendment No. 2 amending the Regional Surface Transportation Program (RSTP) Exchange Funds Claim.
***END OF CONSENT CALENDAR***
REPORTS AND PRESENTATIONS FROM STAFF:
6. Receiving and Accepting the City of Atwater's Annual Financial Report and Single Audit for Fiscal Year-End of June 30, 2023 (Finance Director Nicholas)
Staff's Recommendation: Motion to receive and accept the City of Atwater's Annual Financial Report and Single Audit for the Fiscal Year-End of June 30, 2023.
City Council Agenda for Meeting of August 26, 2024 Page 4 PUBLIC HEARINGS:
7. Resolution Adopting an Initial Study and Mitigated Negative Declaration in Accordance with the California Environmental Quality Act (CEQA) for the Project; and Approve a Tentative Parcel Map, General Plan Amendment, Variance and Site Plan; and Adoption of an Ordinance Approving Zone Change No. 23-19-0100 to Change the Zoning Designation from Residential Estate (R-E) to High Density Residential (R-3) for the Property Located on the Northwest Corner of Sunset Drive and Everett Street, Atwater (APN 056-540-004) (Deputy City Manager/Community Development Director Thompson)
Staff's Recommendation: Open the public hearing and receive any testimony given; and
Close the public hearing; and
Motion to adopt Resolution No. 3477-24 adopting an Initial Study and Mitigated Negative Declaration in accordance with the California Environmental Quality Act (CEQA) for a residential, multi-family project; and approve a Tentative Parcel Map, General Plan Amendment, Variance and Site Plan, located on the Northwest corner of Sunset Drive and Everett Street, Atwater (APN 056-540-004); and Motion to Adopt Ordinance No. CS 1068 approving Zone Change No. 23-19-0100 to change the zoning designation from Residential Estate (R-E) to High Density Residential (R-3) for the property located at the Northwest Corner of Sunset Drive and Everett Street, Atwater (APN 056-540-004); or
Motion to approve staff's recommendation as presented.
8. Resolution Adopting an Initial Study and Mitigated Negative Declaration in Accordance with the California Environmental Quality Act (CEQA) and Selecting Alignment Alternative 3 as the Preferred Alignment for the Bellevue Road Reconstruction/Realignment Project (Deputy City Manager/Community Development Director Thompson)
Staff's Recommendation: Open the public hearing and receive any testimony given; and
Close the public hearing; and
Motion to adopt Resolution No. 3483-24 adopting an Initial Study and Mitigated Negative Declaration for the Project in accordance with California Environmental Quality Act (CEQA) Guideline Section 15073 and selecting Alignment Alternative 3 as the preferred alignment for development of the Project; and
Motion to adopt Resolution 3484-24 approving Budget Amendment No. 3 amending the Fiscal Year 2024-25 Budget regarding the Bellevue Reconstruction/Realignment Project; or
City Council Agenda for Meeting of August 26, 2024 Page 5 Motion to accept staff's recommendation as presented.
CITY MANAGER REPORTS/UPDATES:
9. Update from the Office of the City Manager
COMMENTS FROM THE PUBLIC:
NOTICE TO THE PUBLIC
At this time any person may comment on any item which is not on the agenda. You may state your name and address for the record; however, it is not required. Action will not be taken on an item that is not on the agenda. If it requires action, it will be referred to staff and/or placed on a future agenda. Please limit comments to a maximum of three (3) minutes.
CITY COUNCIL REPORTS/UPDATES:
• City Council Member Cale, District 1
• City Council Member Button, District 2
• City Council Member Ambriz, District 3
• Mayor Pro Tem Raymond, District 4
• Mayor Nelson
CLOSED SESSION:
Adjourn to Conference Room A
ADJOURNMENT:
CERTIFICATION:
I, Kory J. Billings, City Clerk of the City of Atwater, do hereby certify that a copy of the foregoing agenda was posted at City Hall a minimum of 72 hours prior to the meeting. _______________________________
KORY J. BILLINGS
CITY CLERK
SB 343 NOTICE
In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the office of the City Clerk during normal business hours at 1160 Fifth Street, Atwater, California.
City Council Agenda for Meeting of August 26, 2024 Page 6 If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 750 Bellevue Road, Atwater, California.
In compliance with the federal Americans with Disabilities Act of 1990, upon request, the agenda can be provided in an alternative format to accommodate special needs. If you require special accommodations to participate in a City Council, Commission or Committee meeting due to a disability, please contact the City Clerk’s Office a minimum of three (3) business days in advance of the meeting at (209) 357-6241. You may also send the request by email to [email protected] .
Unless otherwise noted, City Council actions include a determination that they are not a “Project” within the meaning of the California Environmental Quality Act (CEQA), and therefore, that CEQA does not apply to such actions.
AUGUST 2024
S U N M O N T U E W E D T H U F R I S A T
5 19
12 26
11 25
18 4 6
20 27
13 28
7 21
14 9
23 16
10 24
17 8
22 15
29 30 31
1 2 3
Merced County
District 3 Supervisor
McDaniel Office
Hours - 1:30 PM -
3:30 PM
City Council
Meeting - 6:00 PM
City Council
Meeting - 6:00 PM
Planning
Commission
Meeting - 6:00
PM
Audit & Finance
Meeting - 4:30 PM
6 13
27 20
7 21
14 28
1 8
22 29
15 30
2 9
23 16
4 11
25 18
5 12
26 19
3 10
24 17
SEPTEMBER 2024
S U N M O N T U E W E D T H U F R I S A T
City Council
Meeting - 6:00 PM
City Council
Meeting - 6:00 PM
Audit & Finance
Meeting - 4:30 PM
Planning
Commission
Meeting - 6:00
PM
Merced County
District 3 Supervisor
McDaniel Office
Hours - 1:30 PM -
3:30 PM
Trash pick up
delayed - 1 day
City Holiday
Citizens’
Oversight Committee
Meeting - 5:30 PM
National Day of
Remembrance -
Community Center
8:30AM
Movies in the Park
Kung Fu Panda 4
(Veterans Park)
STATEMENT OF CHANGES IN CASH BALANCE, UNAUDITED
BY FUND
AS OF 6/30/2024
FUND BEG.BALANCE CASH DEBITS CASH CREDITS ENDING BAL.
0001 General Fund 17,095,055.24 5,333,935.55 3,466,092.17 18,962,898.62 0003 General Fund Capital (593,423.74) 574,645.07 0.00 (18,778.67) 0004 Public Safety Trans & Use Tax 1,942,892.98 426,519.89 276,901.32 2,092,511.55 0005 Ferrari Ranch Project Fund 2,360.27 0.00 0.00 2,360.27 0007 Measure V Fund 5,032,132.58 81,963.37 3,000.00 5,111,095.95 0008 Measure V 20% Alternative Modes 840,858.26 19,740.84 0.00 860,599.10 0009 Abandoned Veh Abatement Fund (1,957.54) 0.00 2,801.63 (4,759.17) 0010 Measure V Regional Fund (120,841.94) 0.00 0.00 (120,841.94) 1005 Police Grants Fund 102,123.53 0.00 0.00 102,123.53 1010 ARPA-American Rescue Plan Act 3,375,919.23 0.00 208,986.00 3,166,933.23 1011 Gas Tax/Street Improvement (269,353.54) 86,011.89 122,877.80 (306,219.45) 1013 Local Transportation Fund 600,432.16 0.00 3,891.44 596,540.72 1015 Traffic Circulation Fund 1,549,199.25 0.00 0.00 1,549,199.25 1016 Applegate Interchange 796,512.17 0.00 0.00 796,512.17 1017 RSTP-Regional Surface Transp Prag 2,707,192.35 0.00 0.00 2,707,192.35 1018 SB1-Road Maint & Rehab RMRA 2,340,143.86 74,181.83 105,874.88 2,308,450.81 1019 LPP-Local Partnership Prg Fund 0.00 0.00 0.00 0.00 1020 Parks and Recreation Fund 2,030,690.78 0.00 0.00 2,030,690.78 1021 Parks Grants Fund 0.00 0.00 0.00 0.00
1040 General Plan Update-Housing Element (10,800.00) 0.00 0.00 (10,800.00) 1041 General Plan Update Fund 1,913,933.03 0.00 0.00 1,913,933.03 1055 Neighborhood Stabilization 228,103.85 0.00 0.00 228,103.85 1059-80 Housing Grant Funds 841,900.16 159,209.00 8,270.30 992,838.86 1091 Police Facility Impact Fee 208,821.52 0.00 11,849.46 196,972.06 1093 Fire Facility Impact Fee 271,184.80 0.00 0.00 271,184.80 1095 Government Building Facility 289,646.64 0.00 0.00 289,646.64 3064-67 Redevelopment/Successor Agency Funds 1,723,507.35 71,008.84 0.00 1,794,516.19 4020 Performance Bond Trust 226,761.79 0.00 0.00 226,761.79 4030 Narcotics Program Trust 2,141.71 0.00 0.00 2,141.71 4060 Section 125 Medical 2,004.49 70.00 0.00 2,074.49
STATEMENT OF CHANGES IN CASH BALANCE, UNAUDITED
BY FUND
AS OF 6/30/2024
FUND
4070 Section 125 Dependent Care
4080 Pension Rate Stblztn 115 Trust
4090 CFO No. 1 Trust
5001-55 All Maintenance Districts
5050 CFO Districts
6000 Water Enterprise Fund
6001 Water Fund Capital Replacement
6002 DBCP Settlement
6004 Water Well- Buhach Colony
6005 Water Capital Impact Fees
6006 Water Operating Reserve Fund
6007 1,2,3-TCP Fund
6010 Sewer Enterprise Fund
6011 Sewer Fund Capital Replacement
6020 Sanitation Enterprise
7000 Internal Service Fund
7001 ISF Equipment/Bldg Replacement
7010 Employee Benefits Fund
7020 Risk Management
7030 Information Technology
9090 Accrued Interest Fund
TOTAL
BEG.BALANCE CASH DEBITS CASH CREDITS ENDING BAL.
0.00 0.00 0.00 0.00
408,833.12 105,598.71 0.00 514,431.83
135,211.57 0.00 0.00 135,211.57
1,282,891.40 101,202.45 29,779.57 1,354,314.28
(155,277.39) 311,709.08 62,228.32 94,203.37
14,705,230.40 832,131.74 939,385.13 14,597,977.01
(1,560,285.11) 0.00 81,960.07 (1,642,245.18)
21,241.78 0.00 0.00 21,241.78
190,160.05 0.00 0.00 190,160.05
2,787,123.74 0.00 0.00 2,787,123.74
186,143.27 0.00 0.00 186,143.27
13,994,379.88 99,639.21 6,286.50 14,087,732.59
15,531,798.50 1,168,408.01 1,381,794.62 15,318,411.89
3,883,345.23 0.00 0.00 3,883,345.23
2,659,464.32 290,090.22 558,277.75 2,391,276.79
577,126.68 507,879.03 195,277.43 889,728.28
206,143.88 0.00 0.00 206,143.88
682,389.26 396,655.49 279,157.83 799,886.92
423,046.95 481,277.75 18,354.50 885,970.20
501,661.63 199,966.25 40,787.15 660,840.73
0.00 4,665.75 0.00 4,665.75
99,587,770.40 11,326,509.97 7,803,833.87 103,110,446.50 Approvedby: ~
Mark Borba, City Treasurer
Prepared by: __ ---:a.-..t'---7- --....:::--=--------
Statement of Changes in Cash Balan~e
by Bank
As of 6/30/2024
Beg. Period
Balance
Cash
Debits
Cash
Credits
End Period
Balance
City- LAIF
City - RMA Long-Term Investment Fund
City Checking & Investment Accounts
Wastewater Checking
RA Obligation Retirement Fund
US Bank/Chandler Asset Mgt.
PARS Post-Employment Benefits Trust
Totals
65,412,110.24
1,189,391.76
8,244,553.44
1,449,811.22
32.73 22,883,037.89
408,833.12
4,665.75
6,018,861.59
5,072,183.83
25,560.88
99,639.21
105,598.71
7,433,140.01
370,683.86
10.00 65,412,110.24
1,194,057.51
6,830,275.02
6,151,311.19
25,583.61
22,982,677.10
514,431.83
99,587,770.40
Prepared by: __ r--r-'-'--,.__~---------
11,326,509.97 7,803,833.87 103,110,446.50
Approved by: _ ___,,, .c------~-.,------
(The following statements are required by California Govt. Code Section 53646 (b) (2,3)) Investments are made pursuant to the City Council approved Investment Policy and Guidelines.
The City of Atwater has the ability to meet its pooled expenditure requirements for the next six months.
Bank Account Detail
City LAIF
Chandler Asset Mgt.
US Bank/Chandler Asset Mgt.
PARS Post-Employment Benefits Trust
65,412,110.24
1,194,057.51
22,982,677.10
514,431.83
Chase General Checking
Chase Wastewater Checking
Chase Redevelopment Checking
Chase Savings Account
7,107,398.69
6,151,311.19
25,583.61
0.00
Warrant Summary August 26, 2024
Prepared By: Joseph Murillo, Accounting Technician
Accounts Payable Warrant
Amount
8/26/2024 Warrant $ 1,083,365.94
Prewrittens (Checks Processed Between Warrants) $ 10, 383.17 Total Accounts Payable Warrants: $ 1,093,749.11
Additional Warrants
Date Description Amount
8/13/2024 AFSCME District Council 57 $ 1,033.20
8/13/2024 Atwater Police Officers Association $ 3,265.19 8/13/2024 EPARS Employee 457 Plan (PNC Bank) $ 4,863.00 8/13/2024 PERS Retirement 7/18/24 - 7/31/24 $ 64, 525.74 8/13/2024 State Disbursement - Child Support $ 115.38
8/15/2024 Chevron USA $ 392.69
8/19/2024 Federal Taxes (Cash Out) $ 729.36
Total Additional Warrants: $ 74,924.56
Payroll
Date Description Amount
8/8/2024 Net Payroll $ 209,340.58
8/13/2024 Federal Taxes $ 71,839.49
8/1 3/2 024 State Taxes $ 9,096.26
Total Payroll: $ 290,276.33
Grand Total: $ 1,458,950.00
Anna Nicholas, Finance Director Mark Borba, City Treasurer
Accounts Payable
Checks for Approval
User:
Printed:
jmurillo
8/21/2024- 11:26 AM
City
twater a A,fnUh,J.d t 'IW/ #.T t' (. ii flid'
7&Q gelh'ttue Plod. f'tl tvtef CA 93Q1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25956 08/13/2024 General Fund Garnishments FRANCHISE TAX BOARD 100.00 Check Total: 100.00
25957 08/13/2024 General Fund Office Supplies KEN LEE 12.28 Check Total: 12.28
25958 08/13/2024 Sewer Enterprise Fund Special Departmental Expense NAPA AUTO PARTS 24.88 25958 08/13/2024 Internal Service Fund Operations & Maintenance NAPA AUTO PARTS 3.56 25958 08/13/2024 Internal Service Fund Operations & Maintenance NAPA AUTO PARTS 105.96 25958 08/13/2024 Sewer Enterprise Fund Special Departmental Expense NAPA AUTO PARTS 42.06 Check Total: 176.46
25959 08/13/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 23.34 25959 08/13/2024 General Fund Special Departmental Expense O'REILLY AUTO PARTS 33.44 25959 08/13/2024 General Fund Special Departmental Expense O'REILLY AUTO PARTS 26.09 25959 08/13/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 21.73 25959 08/13/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 19.56 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 34.85 25959 08/13/2024 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 198.15 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 37.49 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 87.54 25959 08/13/2024 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 47.84 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 703.10 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 27.87 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 116.41 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 169.49 25959 08/13/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 26.09 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 275.75 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 86.43 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 237.51 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 341.41 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS -86.43 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 92.05 AP-Checks for Approval (8/21/2024 - 11:26 AM) Page 1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25959 08/13/2024 Internal Service Fund Small Tools O'REILLY AUTO PARTS 17.39 25959 08/13/2024 Internal Service Fund Small Tools O'REILLY AUTO PARTS 195.75 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 79.47 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 50.87 25959 08/13/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 20.65 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 124.68 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 9.23 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 22.97 25959 08/13/2024 Internal Service Fund Small Tools O'REILLY AUTO PARTS 33.69 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 1,045.89 25959 08/13/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS -132.00 Check Total: 3,988.30
25960 08/13/2024 General Fund Office Supplies STAPLES 154.40 25960 08/13/2024 General Fund Office Supplies STAPLES 146.92 25960 08/13/2024 General Fund Office Supplies STAPLES 234.24 25960 08/13/2024 General Fund Office Supplies STAPLES 207.40 Check Total: 742.96
25961 08/15/2024 Water Enterprise Fund Training PAUL CABRERA 396.75 Check Total: 396.75
25962 08/15/2024 General Fund Office Supplies FEDEX 36.27 25962 08/15/2024 Internal Service Fund Operations & Maintenance FEDEX 23.89 25962 08/15/2024 General Fund Office Supplies FEDEX 2.90 Check Total: 63.06
25963 08/19/2024 Public Safety Trans & Use Tax Rents & Leases ENTERPRISE FM TRUST 4,823.36 Check Total: 4,823.36
25964 08/21/2024 General Fund Special Departmental Expense MERCED COUNTY RECORDER 80.00 Check Total: 80.00
Report Total: 10,383.17
AP-Checks for Approval (8/21/2024 - 11:26 AM) Page 2
Accounts Payable
Checks for Approval
User:
Printed:
jmurillo
8/21/2024- 11:38 AM
c rte i f
r f'►" r../r ( r.'i' &f'ad.'
T: LJ Dellecrue Ivocld, 13J ter u? 9 O1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 08/15/2024 Internal Service Fund Operations & Maintenance CHEVRON USA INC. 392.69 Check Total: 392.69
0 08/19/2024 General Fund Federal Income Tax Withheld PAYROLL TAXES-FEDERAL 224.02 0 08/19/2024 General Fund Fica/Medicare - Employee PAYROLL TAXES-FEDERAL 47.89 0 08/19/2024 General Fund Fica/Medicare - Employee PAYROLL TAXES-FEDERAL 204.78 0 08/19/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 47.89 0 08/19/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 204.78 Check Total: 729.36
0 08/13/2024 General Fund Miscellaneous Union Dues AFSCME DISTRICT COUNCIL 57 1,033.20 0 08/13/2024 General Fund Police Union Dues ATWATER POLICE OFFICERS ASSN. 3,265.19 0 08/13/2024 General Fund Fica/Medicare - Employee PAYROLL TAXES-FEDERAL 4,434.78 0 08/13/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 78.92 0 08/13/2024 General Fund Deferred Compensation PNC BANK 800.00 0 08/13/2024 General Fund Deferred Compensation PNC BANK 4,063.00 0 08/13/2024 General Fund Federal Income Tax Withheld PAYROLL TAXES-FEDERAL 24,947.70 0 08/13/2024 General Fund Fica/Medicare - Employee PAYROLL TAXES-FEDERAL 18,962.43 0 08/13/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 4,434.78 0 08/13/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 18.45 0 08/13/2024 General Fund Fica/Medicare-Employer PAYROLL TAXES-FEDERAL 18,962.43 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 10,364.65 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 3,245.31 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 6,579.14 0 08/13/2024 General Fund State Income Tax Withheld PAYROLL TAXES-STATE 9,096.26 0 08/13/2024 General Fund Pers Deduction PERS-RETIREMENT 2,199.23 0 08/13/2024 General Fund Pers Deduction PERS-RETIREMENT 740.40 0 08/13/2024 General Fund Pers Deduction PERS-RETIREMENT 22.37 0 08/13/2024 General Fund Pers Deduction PERS-RETIREMENT 9,075.94 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 17.44 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 10,525.12 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 15,913.09 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 17.18 AP-Checks for Approval (8/21/2024 - 11:38 AM) Page 1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 20.98 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 1,012.24 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 786.58 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 2,865.53 0 08/13/2024 General Fund Pers Benefits PERS-RETIREMENT 1,140.54 0 08/13/2024 General Fund Garnishments STATE DISBURSEMENT UNIT 115.38 Check Total: 154,738.26
Report Total: 155,860.31
AP-Checks for Approval (8/21/2024 - 11:38 AM) Page 2
Accounts Payable
Checks for Approval
User:
Printed:
jmurillo
8/22/2024 - 10:27 AM
~ r
twate r
Prick (ii i lei's x
7e0 Bellevue Ri3~.ie r CA 93Q1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 08/26/2024 Water Enterprise Fund Electronic Pmt Processing Exp BLUEFIN PAYMENT SYSTEMS 2,128.11 0 08/26/2024 Sewer Enterprise Fund Electronic Pmt Processing Exp BLUEFIN PAYMENT SYSTEMS 2,128.11 0 08/26/2024 General Fund Electronic Pmt Processing Exp GLOBAL PAYMENTS INTEGRATED 734.49 0 08/26/2024 Sanitation Enterprise Fund Electronic Pmt Processing Exp BLUEFIN PAYMENT SYSTEMS 2,128.12 Check Total: 7,118.83
Report Total: 7,118.83
AP-Checks for Approval (8/22/2024 - 10:27 AM) Page 1
Accounts Payable
Checks by Date - Detail by Check Date
User:
Printed:
750 Bellevue Road, Abuvafier CA 95301
Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
ACH CHA999 CHASE 08/26/2024
8042024 Sunny Truck & RV 65.00
8042024 J&J Ramos Farms 20.45
8042024 Electrify America 35.72
8042024 Electrify America 40.26
8042024 ESRI 1,100.00
8042024 Fresno City College 299.00
8042024 Sunny Truck & RV 44.00
8042024 Double Tree 150.00
8042024 Electrify America 31.58
8042024 Al Prestons Lock Shop 17.40
8042024 Jantz Cafe 116.68
8042024 Katom Restaurant Supply 2,391.41
8042024 Vdara Hotel 192.86
8042024 ETSY 33.28
8042024 CSMFO 75.00
8042024 Togo's 122.54
8042024 Save Mart 23.90
8042024 Tractor Supply Co. 128.30
8042024 PC Nation 466.43
8042024 Walmart.com 297.43
8042024 Paypal 1,400.00
8042024 AAME.org 600.00
8042024 Double Tree 45.00
8042024 KeyTracker 143.20
8042024 Mister Car Wash 22.00
8042024 Dora Fashion 95.00
8042024 Walmart 14.52
8042024 The Home Depot 8.31
8042024 Electrify America 23.29
8042024 The Home Depot 20.54
8042024 Vista Print 83.04
8042024 Electrify America 40.00
8042024 Double Tree 1,590.80
8042024 United States Postal Service 111.60
8042024 Dollar Tree 2.72
8042024 ESRI 1,100.00
8042024 CALPELRA 323.00
8042024 Lowes 71.42
8042024 Lowes 40.75
8042024 DJI Drone 11 1 .81
8042024 Walmart 22.89
8042024 Springbrook 895.00
8042024 Electrify America 23.74
8042024 Staples 119.00
8042024 Walmart 13.78
8042024 In-Shape 50.00
8042024 Target 44.57
8042024 Electrify America 38.64
jmurillo
8/21/2024 11:29 AM
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twater
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AP Checks by Date - Detail by Check Date (8/21/2024 11:29 AM) Page 1
Check No Vendor No Vendor Name Check Date Check Amount
Invoice No Description Reference
8042024 United States Postal Service 11.00
8042024 Pilot 56.93
8042024 Electrify America 33.15
8042024 Walmart 13.33
8042024 TLC Postal Center 48.94
8042024 Hilmar Lumber 789.87
8042024 California Building 85.00
Total for this ACH Check for Vendor CHA999: 13,744.08
Total for 8/26/2024: 13,744.08
Report Total (1 checks): 13,744.08
AP Checks by Date - Detail by Check Date (8/21/2024 11:29 AM) Page 2
Accounts Payable
Checks for Approval
User:
Printed:
jmurillo
8/21/2024 - 11:28 AM
zv 11
twater
Tto BOIk?vu Po ci. /~.r abet CA 93Q1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 08/26/2024 General Fund Special Departmental Expense CHASE 95.00 0 08/26/2024 General Fund Special Departmental Expense CHASE 11.00 0 08/26/2024 General Fund Special Departmental Expense CHASE 297.43 0 08/26/2024 General Fund Special Departmental Expense CHASE 128.30 0 08/26/2024 General Fund Special Departmental Expense CHASE 116.68 0 08/26/2024 General Fund Special Departmental Expense CHASE 2,391.41 0 08/26/2024 General Fund Office Supplies CHASE 119.00
0 08/26/2024 General Fund Training CHASE 85.00
0 08/26/2024 SB 1-Road Maint & Rehab RMRA Fruitland Ave Rd Improvements CHASE 111.60 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 38.64 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 40.26 0 08/26/2024 Information Technology Fund Special Departmental Expense CHASE 44.57 0 08/26/2024 General Fund Special Departmental Expense CHASE 23.90 0 08/26/2024 General Fund Special Departmental Expense CHASE 122.54 0 08/26/2024 General Fund Special Departmental Expense CHASE 48.94 0 08/26/2024 General Fund Memberships & Subscriptions CHASE 600.00 0 08/26/2024 General Fund Travel/Conferences/Meetings CHASE 192.86 0 08/26/2024 General Fund TravellConferences/Meetings CHASE 895.00 0 08/26/2024 General Fund Training CHASE 75.00
0 08/26/2024 General Fund Travel/Conferences/Meetings CHASE 323.00 0 08/26/2024 General Fund Special Departmental Expense CHASE 20.45 0 08/26/2024 General Fund Professional Services CHASE 50.00 0 08/26/2024 General Fund Special Departmental Expense CHASE 33.28 0 08/26/2024 General Fund Special Departmental Expense CHASE 2.72 0 08/26/2024 General Fund Special Departmental Expense CHASE 466.43 0 08/26/2024 General Fund Professional Services CHASE 65.00 0 08/26/2024 General Fund Special Departmental Expense CHASE 111.81 0 08/26/2024 General Fund Special Departmental Expense CHASE 143.20 0 08/26/2024 General Fund Special Departmental Expense CHASE 83.04 0 08/26/2024 General Fund Training CHASE 150.00
0 08/26/2024 General Fund Training CHASE 45.00
0 08/26/2024 General Fund Training CHASE 1,590.80
0 08/26/2024 General Fund Training CHASE 299.00
0 08/26/2024 Water Enterprise Fund Special Departmental Expense CHASE 44.00 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 1
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 08/26/2024 Water Enterprise Fund Memberships & Subscriptions CHASE 1,100.00 0 08/26/2024 Water Enterprise Fund Training CHASE 1,400.00 0 08/26/2024 Sewer Enterprise Fund Memberships & Subscriptions CHASE 1,100.00 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 14.52 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 8.31 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 13.33 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 22.89 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 71.42 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 13.78 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 40.75 0 08/26/2024 Internal Service Fund Small Tools CHASE 20.54 0 08/26/2024 Internal Service Fund Professional Services CHASE 17.40 0 08/26/2024 Internal Service Fund Special Departmental Expense CHASE 789.87 0 08/26/2024 Internal Service Fund Professional Services CHASE 22.00 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 31.58 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 33.15 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 23.74 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 40.00 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 56.93 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 35.72 0 08/26/2024 Internal Service Fund Operations & Maintenance CHASE 23.29 Check Total: 13, 744.08
25965 08/26/2024 General Fund Planning Deposits 25 CLEANING SERVICES INC 698.31 Check Total: 698.31
25966 08/26/2024 General Fund Planning Deposits 99 CENTS ONLY STORES LLC 1,035.61 Check Total: 1,035.61
25967 08/26/2024 General Fund Office Supplies AAA BUSINESS SUPPLIES & INTERIORS 65.20 25967 08/26/2024 General Fund Office Supplies AAA BUSINESS SUPPLIES & INTERIORS 130.39 25967 08/26/2024 General Fund Office Supplies AAA BUSINESS SUPPLIES & INTERIORS 65.20 25967 08/26/2024 General Fund Office Supplies AAA BUSINESS SUPPLIES & INTERIORS 65.20 Check Total: 325.99
25968 08/26/2024 Internal Service Fund Professional Services ADVANCED HEATING & AIR 250.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Special Departmental Expense ADVANCED HEATING & AIR 531.79 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 385.00 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 2
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 25968 08/26/2024 Water Enterprise Fund Professional Services ADVANCED HEATING & AIR 135.00 Check Total: 2,111.79
25969 08/26/2024 Internal Service Fund Professional Services AERIAL INSPECTION SERVICES 2,218.00 Check Total: 2,218.00
25970 08/26/2024 General Fund Training ABRAHAM AGUILAR 104.46 Check Total: 104.46
25971 08/26/2024 Sewer Enterprise Fund Special Departmental Expense AIRGAS USA, LLC 470.29 Check Total: 470.29
25972 08/26/2024 General Fund Special Departmental Expense ASSOCIATES LOCK & SAFE SERVICE 19.49 Check Total: 19.49
25973 08/26/2024 General Fund Communications AT&T 219.35 Check Total: 219.35
25974 08/26/2024 General Fund Professional Services AT&T 170.00 Check Total: 170.00
25975 08/26/2024 General Fund Communications AT&T CALNET 171 .22 25975 08/26/2024 Water Enterprise Fund Communications AT&T CALNET 340.88 25975 08/26/2024 Sewer Enterprise Fund Communications AT&T CALNET 527.92 25975 08/26/2024 Internal Service Fund Communications AT&T CALNET 610.62 Check Total: 1,650.64
25976 08/26/2024 General Fund Communications AT&T MOBILITY 372.84 25976 08/26/2024 General Fund Communications AT&T MOBILITY 280.38 25976 08/26/2024 General Fund Communications AT&T MOBILITY 821.32 25976 08/26/2024 Abandoned Veh Abatement Fund Communications AT&T MOBILITY 90.10 25976 08/26/2024 General Fund Communications AT&T MOBILITY 80.48 25976 08/26/2024 General Fund Communications AT&T MOBILITY 885.28 25976 08/26/2024 General Fund Communications AT&T MOBILITY 163.60 25976 08/26/2024 General Fund Communications AT&T MOBILITY 130.34 25976 08/26/2024 General Fund Communications AT&T MOBILITY 175.39 25976 08/26/2024 General Fund Communications AT&T MOBILITY 215.63 25976 08/26/2024 General Fund Communications AT&T MOBILITY 90.10 25976 08/26/2024 General Fund Communications AT&T MOBILITY 130.34 25976 08/26/2024 Gas Tax/Street Improvement Communications AT&T MOBILITY 45.05 25976 08/26/2024 Water Enterprise Fund Communications AT&T MOBILITY 130.34 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 3
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25976 08/26/2024 Internal Service Fund Communications AT&T MOBILITY 45.05 25976 08/26/2024 Information Technology Fund Communications AT&T MOBILITY 45.05 25976 08/26/2024 General Fund Communications AT&T MOBILITY 43.94 25976 08/26/2024 General Fund Communications AT&T MOBILITY 43.94 25976 08/26/2024 General Fund Communications AT&T MOBILITY 87.88 25976 08/26/2024 Gas Tax/Street Improvement Communications AT&T MOBILITY 263.64 25976 08/26/2024 Water Enterprise Fund Communications AT&T MOBILITY 527.28 25976 08/26/2024 Sewer Enterprise Fund Communications AT&T MOBILITY 483.34 25976 08/26/2024 Internal Service Fund Communications AT&T MOBILITY 43.94 25976 08/26/2024 Internal Service Fund Communications AT&T MOBILITY 43.94 25976 08/26/2024 Information Technology Fund Communications AT&T MOBILITY 129.46 Check Total: 5,368.65
25977 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense ATWATER TINT 320.00 25977 08/26/2024 Internal Service Fund Operations & Maintenance ATWATER TINT 300.00 Check Total: 620.00
25978 08/26/2024 Water Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 140.87 25978 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense BIG CREEK LUMBER COMPANY 8.32 25978 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 52.34 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 43.22 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 36.16 25978 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 14.74 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 11.63 25978 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 2.65 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 41.64 25978 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 7.12 25978 08/26/2024 Internal Service Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 9.68 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 44.59 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 16.73 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 6.78 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 55.71 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 25.82 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 6.45 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 17.44 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 12.58 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 58.06 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 71.47 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 28.44 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 183.56 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 301.69 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 73.64 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 127.26 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 4
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25978 08/26/2024 Water Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 34.84 25978 08/26/2024 Water Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 71.50 25978 08/26/2024 Water Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 8.72 25978 08/26/2024 General Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 37.10 25978 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 12.91 Check Total: 1,563.66
25979 08/26/2024 General Fund Planning Deposits BK INDUSTRIES INC. 426.74 Check Total: 426.74
25980 08/26/2024 Sewer Enterprise Fund Professional Services BLACK WATER CONSULTING ENGINEERING, 2,469.00 25980 08/26/2024 Water Enterprise Fund Professional Services BLACK WATER CONSULTING ENGINEERING, 3,159.00 Check Total: 5,628.00
25981 08/26/2024 General Fund Planning Deposits BLUEMARK PROPERTIES LLC 361.68 Check Total: 361.68
25982 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BOGIES PUMP SYSTEMS 110.04 25982 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BOGIES PUMP SYSTEMS 2,238.72 25982 08/26/2024 Sewer Enterprise Fund Special Departmental Expense BOGIES PUMP SYSTEMS 3,731.16 Check Total: 6,079.92
25983 08/26/2024 General Fund Special Departmental Expense BPS TACTICAL 1,994.98 Check Total: 1,994.98
25984 08/26/2024 Internal Service Fund Special Departmental Expense BRADY INDUSTRIES 83.74 Check Total: 83.74
25985 08/26/2024 General Fund Training DAVID BRUM 179.66 Check Total: 179.66
25986 08/26/2024 SB1-Road Maint & Rehab RMRA Fruitland Ave Rd Improvements BSK ASSOCIATES 2,786.75 25986 08/26/2024 Sewer Enterprise Fund Professional Services BSK ASSOCIATES 1,667.75 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 79.89 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 79.89 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 26.63 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 133.15 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 213.04 25986 08/26/2024 1,2,3-TCP Fund Professional Services BSK ASSOCIATES 999.40 25986 08/26/2024 1,2,3-TCP Fund Professional Services BSK ASSOCIATES 999.40 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 79.89 25986 08/26/2024 Water Enterprise Fund Professional Services BSK ASSOCIATES 79.89 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 5
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 7,145.68
25987 08/26/2024 Internal Service Fund Operations & Maintenance BURTONS FIRE INC 1,040.07 Check Total: 1,040.07
25988 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense CAL FARM SERVICES 88.19 25988 08/26/2024 Gas Tax/Street Improvement Professional Services CAL FARM SERVICES 160.00 25988 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense CAL FARM SERVICES 17.09 25988 08/26/2024 Gas Tax/Street Improvement Professional Services CAL FARM SERVICES 80.00 25988 08/26/2024 Water Enterprise Fund Special Departmental Expense CAL FARM SERVICES 78.14 Check Total: 423.42
25989 08/26/2024 General Fund Men's Summer Softball CALIFORNIA LANDSCAPE SUPPLY, INC. 451.61 25989 08/26/2024 General Fund Coed Summer Softball CALIFORNIA LANDSCAPE SUPPLY, INC. 451.61 Check Total: 903.22
25990 08/26/2024 Internal Service Fund Professional Services CENTRAL VALLEY MACHINE WORKS 165.00 Check Total: 165.00
25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 33.59 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 74.55 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 8.82 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 33.59 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 72.98 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.41 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 72.98 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 1 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 6
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.41 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 72.98 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 72.98 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.41 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 25991 08/26/2024 Internal Service Fund Special Departmental Expense CINTAS CORP 29.35 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 18.93 25991 08/26/2024 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 14.04 25991 08/26/2024 General Fund Uniform & Clothing Expense CINTAS CORP 38.38 25991 08/26/2024 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.41 25991 08/26/2024 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 72.98 25991 08/26/2024 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 88.54 Check Total: 1,820.53
25992 08/26/2024 General Fund Training CITY OF FRESNO 593.00 25992 08/26/2024 General Fund Training CITY OF FRESNO 593.00 Check Total: 1,186.00
25993 08/26/2024 Internal Service Fund Communications COMCAST 262.61 Check Total: 262.61
25994 08/26/2024 General Fund Planning Deposits COMPLETE WIRELESS CONSULTING INC 848.71 Check Total: 848.71
25995 08/26/2024 General Fund Various Recreation Classes MARY ANN DAVIS 250.25 Check Total: 250.25
25996 08/26/2024 Sewer Enterprise Fund Special Departmental Expense DOMS ELECTRIC - MERCED BEARING OPERA 230.16 Check Total: 230.16
25997 08/26/2024 Internal Service Fund Operations & Maintenance DONS MOBILE GLASS 343.00 Check Total: 343.00
25998 08/26/2024 General Fund Community Center Deposits DARWIN DUNCAN 350.00 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 7
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 25998 08/26/2024 General Fund Community Center Deposits DARWIN DUNCAN 210.00 Check Total: 560.00
25999 08/26/2024 General Fund Community Center Deposits SARA DURAN 210.00 Check Total: 210.00
26000 08/26/2024 General Fund Community Center Deposits BRIAN DYCK 210.00 Check Total: 210.00
26001 08/26/2024 Water Enterprise Fund Professional Services E SOURCE COMPANIES LLC 2,700.00 Check Total: 2,700.00
26002 08/26/2024 General Fund Uniform & Clothing Expense ELITE UNIFORMS 353.58 26002 08/26/2024 General Fund Uniform & Clothing Expense ELITE UNIFORMS 386.76 26002 08/26/2024 General Fund Uniform & Clothing Expense ELITE UNIFORMS 261.03 26002 08/26/2024 General Fund Uniform & Clothing Expense ELITE UNIFORMS 283.15 26002 08/26/2024 General Fund Uniform & Clothing Expense ELITE UNIFORMS 374.85 Check Total: 1,659.37
26003 08/26/2024 General Fund Planning Deposits EDITH ESPINOSA 1,267.80 Check Total: 1,267.80
26004 08/26/2024 ARPA-American Rescue Plan Act City Bldg - Civic Center #2 FACILITY DESIGNS INC 10,382.81 Check Total: 10,382.81
26005 08/26/2024 Internal Service Fund Operations & Maintenance DONALD GARCIA 1,249.45 Check Total: 1,249.45
26006 08/26/2024 Sewer Enterprise Fund Special Departmental Expense GARTON TRACTOR INC 549.54 Check Total: 549.54
26007 08/26/2024 SB 1-Road Maint & Rehab RMRA Project Retention GEORGE REED INC -33,997.76 26007 08/26/2024 SB1-Road Mamt & Rehab RMRA Fruitland Ave Rd Improvements GEORGE REED INC 679,955.20 Check Total: 645,957.44
26008 08/26/2024 Sewer Enterprise Fund Lower Shaffer Storm Drain Imp GHD 59,185.65 Check Total: 59,185.65
26009 08/26/2024 Water Enterprise Fund Special Departmental Expense GRAINGER 283.19 26009 08/26/2024 Water Enterprise Fund Special Departmental Expense GRAINGER 94.89 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 8
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 378.08
26010 08/26/2024 Public Safety Trans & Use Tax Professional Services GRIFFIN STRUCTURES INC 25,000.00 Check Total: 25,000.00
26011 08/26/2024 General Fund Planning Deposits LISANDRA GUERRERO 1,045.07 Check Total: 1,045.07
26012 08/26/2024 General Fund Special Departmental Expense HENRY SCHEIN, INC. 978.76 Check Total: 978.76
26013 08/26/2024 Internal Service Fund Operations & Maintenance HI-TECH EVS INC 215.85 Check Total: 215.85
26014 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense HORIZON 385.82 26014 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense HORIZON 38.54 26014 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense HORIZON 385.82 26014 08/26/2024 Water Enterprise Fund Special Departmental Expense HORIZON 86.83 Check Total: 897.01
26015 08/26/2024 General Fund Professional Services INDEPENDENT INVESTIGATIONS LLC 1,210.05 Check Total: 1,210.05
26016 08/26/2024 General Fund Uniform & Clothing Expense INSIDELINES GRAPHIX INC. 608.26 Check Total: 608.26
26017 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense JAM SERVICES INC 88.09 Check Total: 88.09
26018 08/26/2024 Internal Service Fund Special Departmental Expense JOHNSTONE SUPPLY 159.56 26018 08/26/2024 Internal Service Fund Special Departmental Expense JOHNSTONE SUPPLY 96.03 26018 08/26/2024 Internal. Service Fund Special Departmental Expense JOHNSTONE SUPPLY 214.93 Check Total: 470.52
26019 08/26/2024 Sewer Enterprise Fund Special Departmental Expense JORGENSEN COMPANY 215.00 Check Total: 215.00
26020 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense KELLOGG SUPPLY 182.91 26020 08/26/2024 Water Enterprise Fund Special Departmental Expense KELLOGG SUPPLY 95.86 26020 08/26/2024 Water Enterprise Fund Special Departmental Expense KELLOGG SUPPLY 101.73 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 9
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 380.50 ^'
26021 08/26/2024 RSTP-Regional Surf Transp Prog Ace Train Platform KRAZAN-VEIR 792.50 26021 08/26/2024 RSTP-Regional Surf Transp Prog Ace Train Platform KR.AZAN-VEIR 9,815.00 Check Total: 10,607.50
26022 08/26/2024 General Fund Community Center Deposits ANDY KROTIK 350.00 26022 08/26/2024 General Fund Community Center Deposits ANDY KROTIK 210.00 26022 08/26/2024 General Fund Community Center Deposits ANDY KROTIK 210.00 26022 08/26/2024 General Fund Community Center Rental ANDY KROTIK 565.00 26022 08/26/2024 General Fund Community Center Rental ANDY KROTIK 225.00 26022 08/26/2024 General Fund Community Center Rental ANDY KROTIK 240.00 26022 08/26/2024 General Fund Community Center Rental ANDY KROTIK -80.00 Check Total: 1,720.00 —
26023 08/26/2024 General Fund Memberships & Subscriptions LAFCO 8,936.28 Check Total: 8,936.28
26024 08/26/2024 Internal Service Fund Operations & Maintenance LAWSON PRODUCTS 983.52 Check Total: 983.52
26025 08/26/2024 General Fund Professional Services LEXISNEXIS RISK DATA MANAGEMENT 7.25 26025 08/26/2024 General Fund Professional Services LEXISNEXIS RISK DATA MANAGEMENT 960.00 Check Total: 967.25
26026 08/26/2024 Public Safety Trans & Use Tax Reserve Fire Fighter Program LN CURTIS & SONS 192.39 Check Total: 192.39
26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 61.13 26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 179.23 26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 175.88 26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 105.53 26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 239.53 26027 08/26/2024 General Fund Special Departmental Expense MC REGIONAL WASTE MGMT. AUTH. 231.99 Check Total: 993.29
26028 08/26/2024 Internal Service Fund Operations & Maintenance MCAULEY MOTORS 59.75 26028 08/26/2024 Internal Service Fund Professional Services MCAULEY MOTORS 79.98 26028 08/26/2024 Internal Service Fund Operations & Maintenance MCAULEY MOTORS 262.58 Check Total: 402.31 •_,
AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 10
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 26029 08/26/2024 General Fund Printing & Advertising MCCLATCHY COMPANY LLC 278.20 26029 08/26/2024 General Fund Printing & Advertising MCCLATCHY COMPANY LLC 241.00 26029 08/26/2024 General Fund Printing & Advertising MCCLATCHY COMPANY LLC 348.88 26029 08/26/2024 Measure V 20% AlternativeModes Phase 2 Ped Imp Proj Downtown MCCLATCHY COMPANY LLC 1,079.32 Check Total: 1,947.40
26030 08/26/2024 General Fund Planning Deposits ALEXANDRIA MEDINA 1,627.05 Check Total: 1,627.05
26031 08/26/2024 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 308.00 26031 08/26/2024 General Fund Men's Summer Softball MERCED AREA SPORTS OFFICIALS, INC 385.00 26031 08/26/2024 General Fund Coed Summer Softball MERCED AREA SPORTS OFFICIALS, INC 280.00 26031 08/26/2024 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 308.00 26031 08/26/2024 General Fund Men's Summer Softball MERCED AREA SPORTS OFFICIALS, INC 385.00 26031 08/26/2024 General Fund Coed Summer Softball MERCED AREA SPORTS OFFICIALS, INC 280.00 26031 08/26/2024 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 308.00 Check Total: 2,254.00
26032 08/26/2024 General Fund Utilities MERCED IRRIGATION DISTRICT 1,477.33 26032 08/26/2024 Gas Tax/Street Improvement Utilities MERCED IRRIGATION DISTRICT 979.81 26032 08/26/2024 Price Annexation LD Utilities MERCED IRRIGATION DISTRICT 216.86 26032 08/26/2024 Price Annexation LMA Utilities MERCED IRRIGATION DISTRICT 117.15 26032 08/26/2024 Mello Ranch LD Utilities MERCED IRRIGATION DISTRICT 509.69 26032 08/26/2024 Mello Ranch LNDSCP Utilities MERCED IRRIGATION DISTRICT 59.77 26032 08/26/2024 Camellia Estates LD Utilities MERCED IRRIGATION DISTRICT 72.28 26032 08/26/2024 Juniper Meadows LD Utilities MERCED IRRIGATION DISTRICT 36.14 26032 08/26/2024 Camellia Meadows LD Utilities MERCED IRRIGATION DISTRICT 72.28 26032 08/26/2024 Stone Creek LD Utilities MERCED IRRIGATION DISTRICT 330.26 26032 08/26/2024 Stone Creek LNDSCP Utilities MERCED IRRIGATION DISTRICT 19.92 26032 08/26/2024 America West LD Utilities MERCED IRRIGATION DISTRICT 160.25 26032 08/26/2024 Bell Crossing LD Utilities MERCED IRRIGATION DISTRICT 355.47 26032 08/26/2024 Bell Crossing LNDSCP Utilities MERCED IRRIGATION DISTRICT 19.92 26032 08/26/2024 Atwater South LD Utilities MERCED IRRIGATION DISTRICT 445.96 26032 08/26/2024 Mello Ranch 2 LD Utilities MERCED IRRIGATION DISTRICT 685.39 26032 08/26/2024 Meadow View LD Utilities MERCED IRRIGATION DISTRICT 594.76 26032 08/26/2024 Aspenwood LD Utilities MERCED IRRIGATION DISTRICT 258.61 26032 08/26/2024 Applegate Ranch LD Utilities MERCED IRRIGATION DISTRICT 373.75 26032 08/26/2024 Applegate Ranch Lndscp Utilities MERCED IRRIGATION DISTRICT 19.92 26032 08/26/2024 Water Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 403.14 26032 08/26/2024 Sewer Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 682.14 26032 08/26/2024 Sewer Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 6,439.19 26032 08/26/2024 Sewer Enterprise Fund Professional Services MERCED IRRIGATION DISTRICT 475.87 26032 08/26/2024 Sewer Enterprise Fund Professional Services MERCED IRRIGATION DISTRICT 341.21 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 11
Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 15,147.07
26033 08/26/2024 Internal Service Fund Operations & Maintenance MERCED TRUCK & TRAILER INC. 7.65 Check Total: 7.65
26034 08/26/2024 Sewer Enterprise Fund Small Tools NAPA AUTO PARTS 25.61 26034 08/26/2024 Sewer Enterprise Fund Special Departmental Expense NAPA AUTO PARTS 35.73 Check Total: 61.34
26035 08/26/2024 General Fund Castle Park Deposits MIKE NELSON 200.00 Check Total: 200.00
26036 08/26/2024 General Fund Special Departmental Expense O'REILLY AUTO PARTS 100.03 26036 08/26/2024 Water Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 163.09 26036 08/26/2024 Water Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS -163.09 26036 08/26/2024 General Fund Special Departmental Expense O'REILLY AUTO PARTS 70.68 26036 08/26/2024 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 19.00 26036 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 9.37 26036 08/26/2024 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 16.30 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 27.88 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 77.71 26036 08/26/2024 Water Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 27.18 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 626.74 26036 08/26/2024 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 8.78 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 18.48 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 22.97 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 199.23 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 308.75 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 50.62 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 125.04 26036 08/26/2024 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 46.29 Check Total: 1,755.05
26037 08/26/2024 Gas Tax/Street Improvement Utilities PACIFIC GAS & ELECTRIC 133.46 26037 08/26/2024 Sewer Enterprise Fund Utilities PACIFIC GAS & ELECTRIC 78,618.71 26037 08/26/2024 Internal Service Fund Utilities PACIFIC GAS & ELECTRIC 283.20 Check Total: 79,035.37
26038 08/26/2024 General Fund Castle Park Deposits MARISSA PAZ 200.00 Check Total: 200.00
26039 08/26/2024 General Fund Training PRI MANAGEMENT GROUP 458.00 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 12
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-
Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 458.00
26040 08/26/2024 Sewer Enterprise Fund Castle Sewer Interceptor QUAD KNOPF 362.50 Check Total: 362.50
26041 08/26/2024 General Fund Special Departmental Expense QUADIENT, INC. 114.15 26041 08/26/2024 General Fund Rents & Leases QUADIENT, INC. 36.00 Check Total: 150.15
26042 08/26/2024 Water Enterprise Fund Professional Services RAFTELIS FINANCIAL 2,405.62 26042 08/26/2024 Sewer Enterprise Fund Professional Services RAFTELIS FINANCIAL 2,405.63 Check Total: 4,811.25
26043 08/26/2024 General Fund Community Center Deposits KARINA RAMIREZ 350.00 Check Total: 350.00
26044 08/26/2024 General Fund Uniform & Clothing Expense RDR CUSTOM KYDEX, INC 204.80 Check Total: 204.80
26045 08/26/2024 General Fund Planning Deposits ADAM REED 1,701.70 Check Total: 1,701.70
26046 08/26/2024 Sewer Enterprise Fund Professional Services ROLFE CONSTRUCTION 6,180.00 Check Total: 6,180.00
26047 08/26/2024 Internal Service Fund Professional Services ROTO ROOTER PLUMBERS 2,542.76 Check Total: 2,542.76
26048 08/26/2024 RDVLPMNT Obligation Retirement Professional Services RSG INC 350.00 26048 08/26/2024 RDVLPMNT Obligation Retirement Professional Services RSG INC 75.00 Check Total: 425.00
26049 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense SAFE-T-LITE 1,084.51 26049 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense SAFE-T-LITE 267.13 26049 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense SAFE-T-LITE 859.60 26049 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense SAFE-T-LITE 987.27 Check Total: 3,198.51
26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 188.75 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 166.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 250.00 AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 13
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 242.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 158.46 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 248.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 82.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 248.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 234.01 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 248.00 26050 08/26/2024 General Fund Professional Services SANTA FE PET HOSPITAL 166.00 Check Total: 2,231.22
26051 08/26/2024 General Fund Training DAVE SARGINSON 81.01 Check Total: 81.01
26052 08/26/2024 Sewer Enterprise Fund Special Departmental Expense SHANNON PUMP CO. 33.08 Check Total: 33.08
26053 08/26/2024 Sewer Enterprise Fund Utilities SIEMENS FINANCIAL SERVICES, INC. 17,194.24 Check Total: 17,194.24
26054 08/26/2024 Gas Tax/Street Improvement Special Departmental Expense SIERRA AIRLESS 41.59 26054 08/26/2024 Gas Tax/Street Improvement Professional Services SIERRA AIRLESS 90.00 Check Total: 131.59
26055 08/26/2024 General Fund Planning Deposits RAVINDER SINGH 563.98 Check Total: 563.98
26056 08/26/2024 Gas Tax/Street Improvement Professional Services ST FRANCIS ELECTRIC 2,208.00 Check Total: 2,208.00
26057 08/26/2024 Internal Service Fund Professional Services STATE PRO BUILDERS INC. 350.00 Check Total: 350.00
26058 08/26/2024 General Fund Special Departmental Expense STILES TRUCK BODY & EQUIPMENT INC 3,445.88 Check Total: 3,445.88
26059 08/26/2024 General Fund Professional Services STREAMLINE AUTOMATION SYSTEMS, LLC 3,466.00 Check Total: 3,466.00
26060 08/26/2024 Water Enterprise Fund Special Departmental Expense SUNBELT RENTALS INC 141.38 Check Total: 141.38
AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 14
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_
'
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 26070 08/26/2024 SB1-Road Maint & Rehab RMRA Fruitland Ave Rd Improvements VVH CONSULTING SERVICES 14,742.50 26070 08/26/2024 SB1-Road Maint & Rehab RMRA Fruitland Ave Rd Improvements VVH CONSULTING SERVICES 6,272.50 26070 08/26/2024 General Fund Professional Services VVH CONSULTING SERVICES 3,555.00 26070 08/26/2024 Water Enterprise Fund Professional Services VVH CONSULTING SERVICES 14,220.00 26070 08/26/2024 General Fund Professional Services VVH CONSULTING SERVICES 11,475.00 26070 08/26/2024 Sewer Enterprise Fund Atwater Blvd Drainage Imprvmts VVH CONSULTING SERVICES 3,665.00 Check Total: 56,402.10
26071 08/26/2024 General Fund Special Departmental Expense WARD ENTERPRISES 43.34 26071 08/26/2024 Internal Service Fund Special Departmental Expense WARD ENTERPRISES 21.04 Check Total: 64.38
26072 08/26/2024 Water Fund Capital Replacement Installation-New Water Meters WATERFORD IRRIGATION SUPPLY, INC 18.62 Check Total: 18.62
26073 08/26/2024 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 1.92 26073 08/26/2024 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 72.69 26073 08/26/2024 General Fund Special Departmental Expense WINTON HARDWARE 63.59 26073 08/26/2024 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 48.46 26073 08/26/2024 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 2.89 26073 08/26/2024 Sewer Enterprise Fund Special Departmental Expense WINTON HARDWARE 35.65 Check Total: 225.20
26074 08/26/2024 General Fund Special Departmental Expense WORK WELLNESS 648.00 Check Total: 648.00
26075 08/26/2024 General Fund Planning Deposits XTREME POWER GAS FOOD & LIQUOR 476.51 Check Total: 476.51
26076 08/26/2024 General Fund Community Center Deposits JORGE YEPEZ 210.00 Check Total: 210.00
Report Total: 1,076,247.11
AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 16
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—
Check Number Check Date Fund Name Account Name Vendor Name Void Amount 26061 08/26/2024 Water Enterprise Fund Special Departmental Expense SUPERIOR POOL PRODUCTS LLC 1,965.66 26061 08/26/2024 Water Enterprise Fund Special Departmental Expense SUPERIOR POOL PRODUCTS LLC 1,065.32 Check Total: 3,030.98
26062 08/26/2024 Internal Service Fund Professional Services TRANE U.S. INC. 1,316.11 Check Total: 1,316.11
26063 08/26/2024 Internal Service Fund Utilities TRIPP SECURITY SYSTEMS 33.00 Check Total: 33.00
26064 08/26/2024 Water Enterprise Fund Special Departmental Expense TURLOCK TRUCK STUFF LLC 912.73 26064 08/26/2024 Water Enterprise Fund Special Departmental Expense TURLOCK TRUCK STUFF LLC 135.00 Check Total: 1,047.73
26065 08/26/2024 General Fund Special Departmental Expense TYLER TECHNOLOGIES, INC. 6,379.29 Check Total: 6,379.29
26066 08/26/2024 General Fund Professional Services UNITED WAY OF MERCED COUNTY 100.00 Check Total: 100.00
26067 08/26/2024 General Fund Rents & Leases US BANK EQUIPMENT FINANCE 156.94 Check Total: 156.94
26068 08/26/2024 Internal Service Fund Operations & Maintenance VAN DE POL 12,005.99 26068 08/26/2024 Internal Service Fund Operations & Maintenance VAN DE POL 256.60 Check Total: 12,262.59
26069 08/26/2024 General Fund Communications VERIZON WIRELESS 342.09 26069 08/26/2024 General Fund Communications VERIZON WIRELESS 760.20 26069 08/26/2024 General Fund Communications VERIZON WIRELESS 38.01 26069 08/26/2024 General Fund Communications VERIZON WIRELESS 51.64 26069 08/26/2024 Water Enterprise Fund Communications VERIZON WIRELESS 52.02 26069 08/26/2024 Sewer Enterprise Fund Special Departmental Expense VERIZON WIRELESS 38.07 26069 08/26/2024 Sewer Enterprise Fund Communications VERIZON WIRELESS 52.02 26069 08/26/2024 Sewer Enterprise Fund Utilities VERIZON WIRELESS 40.01 26069 08/26/2024 Internal Service Fund Special Departmental Expense VERIZON WIRELESS 40.01 26069 08/26/2024 Internal Service Fund Utilities VERIZON WIRELESS 80.13 Check Total: 1,494.20
26070 08/26/2024 General Fund Capital Phase 2 Ped Imp Proj Downtown VVH CONSULTING SERVICES 2,188.55 26070 08/26/2024 Measure V 20% AlternativeModes Phase 2 Ped Imp Proj Downtown VVH CONSULTING SERVICES 283.55 -
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-
AP-Checks for Approval (8/21/2024 - 11:28 AM) Page 15
CITY OF ATWATER
Minutes
CITY COUNCIL
ACTION MINUTES
July 8, 2024
OPEN SESSION: (Council Chambers)
The City Council of the City of Atwater met in Open Session this date at 5:30 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Nelson presiding.
ROLL CALL:
Present: City Council Members Ambriz, Cale, Mayor Pro Tem Raymond, Mayor Nelson
Absent: City Council Member Button
Staff Present: City Manager Hoem, City Attorney Splendorio, Deputy City Manager/Community Development Director Thompson,
Assistant City Clerk Martin
CLOSED SESSION: (Conference Room A)
Pursuant to Government Code Section 54956.8, Conference with Real Property Negotiator regarding price and terms of payment. Agency Negotiators: Deputy City Manager/Community Development Director Thompson and City Manager Hoem.
Negotiating Party: Les Nickerson
Property Location: APN 003-101-001
Pursuant to Government Code Section 54956.8, Conference with Real Property Negotiations. Agency Negotiators: Deputy City Manager/Community Development Director Thompson and City Manager Hoem. Negotiating Parties: Abbruzz Etti, Dole Packaged Foods, LLC and Pai Bulldog Ranches LLC
City Council Meeting Action Minutes for July 8, 2024 Page 2 Property Locations: APN 143-260-015
143-260-016
150-030-022
150-030-034
150-030-035
150-030-036
056-250-016
056-250-035
056-010-030
056-010-031
Mayor Nelson invited public comment on Closed Session items.
No one came forward to speak.
Mayor Nelson adjourned the meeting to Conference Room A for Closed Session at 5:31 PM. Closed Session was called to order at 5:37 PM. Closed Session adjourned at 5:57 PM.
REGULAR SESSION: (Council Chambers)
The City Council of the City of Atwater met in Regular Session this date at 6:02 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Nelson presiding.
INVOCATION:
The Invocation was led by Josh Davis.
PLEDGE OF ALLEGIANCE TO THE FLAG:
The Pledge of Allegiance was led by Battalion Chief Aysuo.
ROLL CALL: (City Council)
Present: City Council Members Ambriz, Button, Mayor Pro Tem Raymond, Mayor Nelson
Absent: City Council Member Button
Staff Present: City Manager Hoem, City Attorney Splendorio, Deputy City Manager Thompson, Police Chief Salvador, Battalion Chief Ayuso, Finance Director Nicholas, Public Works Director Vinson, City Clerk Billings, Assistant City Clerk Martin
City Council Meeting Action Minutes for July 8, 2024 Page 3 MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION:
City Attorney Splendorio reported that the City Council received information regarding two items listed on the Closed Session calendar, provided direction, and there was no reportable action.
SUBSEQUENT NEED ITEMS: None
APPROVAL OF AGENDA AS POSTED OR AS AMENDED:
MOTION: City Council Member Cale moved to approve the agenda as posted. The motion was seconded by Mayor Pro Tem Raymond and the vote was: Ayes: Cale, Ambriz, Raymond, Nelson; Noes: None; Absent: Button. The motion passed.
CONSENT CALENDAR:
Mayor Nelson opened public comment regarding items on the Consent Calendar.
Mayor Nelson closed the public comment.
MOTION: Mayor Pro Tem Raymond moved to approve the Consent Calendar as amended. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Raymond, Nelson; Noes: None; Absent: Button. The motion passed.
Item #5 was pulled from the consent calendar for separate action and possible direction.
WARRANTS:
1. July 8, 2024
ACTION: Approval of warrants as listed.
MINUTES: (City Council)
2. June 12, 2024 – Special meeting
ACTION: Approval of minutes as listed.
AGREEMENTS:
3. Approving a Purchase Order to Aqua Metric for a New Basestation (Public Works Director Vinson)
City Council Meeting Action Minutes for July 8, 2024 Page 4 ACTION: Awards a purchase to Aqua Metric of Sacramento, California for a new basestation, in an amount not to exceed $53,287.50; and authorizes and directs the City Manager, or his designee, to execute the Purchase Order on behalf of the City.
4. Authorizing and Approving a Cooperative Purchase, Purchase Agreement (Purchase Order) to Montrose Ford for the Purchase of One (1) New 2023 Dodge Charger Police Vehicle and Equipment (Police Chief Salvador) ACTION: Authorizes and approves a Cooperative Purchase, Purchase Agreement (Purchase Order) to Montrose Ford, Akron, Ohio, for the purchase of one (1) new 2023 Dodge Charger Pursuit with Police Equipment, in the combined amount not to exceed $56,100; and authorizes and directs the City Manager or designee to execute the Agreement (Purchase Order) on behalf of the City.
This item was removed from the consent calendar for separate action and possible direction.
RESOLUTIONS:
Approving Budget Amendment for PA&ED Services with Mark Thomas and De Novo Planning Group (Deputy City Manager Thompson)
Deputy City Manager Thompson provided background information on this item.
Mayor Nelson opened public comment regarding this item.
No one came forward to speak.
Mayor Nelson closed public comment.
MOTION: Mayor Pro Tem Raymond moved to adopt Resolution No. 3473- 24 approving Budget Amendment No. 1 amending Fiscal Year 2024-25 Budget regarding the Bellevue Road Realignment Project. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Raymond, Nelson; Noes: None; Absent: Button. The motion passed.
PUBLIC HEARINGS:
Approving the Plans and Specifications for the Pre-approved Accessory Dwelling Units (ADUs) and to Initiate the ADU program (Deputy City Manager Thompson) Deputy City Manager Thompson provided background information on this item.
Mayor Nelson opened the public hearing regarding this item.
No one came forward to speak.
City Council Meeting Action Minutes for July 8, 2024 Page 5 Mayor Nelson closed the public hearing.
MOTION: Mayor Pro Tem Raymond moved to Adopt Resolution No. 3472-24 approving the plans and specifications for the pre-approved ADU plans and initiate the ADU program. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent:
Button. The motion passed.
REPORTS AND PRESENTATIONS FROM STAFF:
Awarding Construction Services Agreement with Lawrence Backhoe Service, Inc of Atwater, California for the Water Meter Installation Project (Public Works Director Vinson) Public Works Director Vinson provided background information on this item.
Mayor Nelson opened public comment regarding this item.
No one came forward to speak.
Mayor Nelson closed public comment.
MOTION: City Council Member Cale moved to to award a General Construction Agreement, in a form approved by the City Attorney, to Lawrence Backhoe Service, Inc. of Atwater, California, for the Water Meter Installation Project, City Project 24- 10, in an amount not to exceed $1,387,300 and authorize construction contract change orders up to an aggregate amount of $138,730.00 (10%); and authorizes and directs the City Manager or designee to execute all contract documents on behalf of the City. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent:
Button. The motion passed.
CITY MANAGER REPORTS/UPDATES:
Updates from the Office of the City Manager
City Manager Hoem reported the following:
• 4
th of July update from Police Chief Salvador and Battalion Chief Ayuso COMMENTS FROM THE PUBLIC:
Notice to the public was read.
Mayor Nelson clarified that under the Brown Act, members of the public are entitled to directly address the City Council and are not entitled to address their comments to other members of the public or to staff.
City Council Meeting Action Minutes for July 8, 2024 Page 6 Mayor Nelson opened public comment.
Amanda Sandavol spoke regarding ongoing issues.
Jim Price spoke regarding fireworks and the fireworks application.
Adam Reed spoke regarding a community issue.
Cindy thanked public safety for a great 4th of July.
Mayor Nelson closed the public comment.
CITY COUNCIL REPORTS/UPDATES:
City Council comments
Mayor Pro Tem Raymond had nothing to report.
City Council Member Ambriz had nothing to report.
City Council Member Cale spoke regarding the great job that Public Safety did during the 4th of July holiday and thanked the 4th of July committee.
Mayor Nelson thanked the 4th of July committee for all they did and especially the cleanup efforts.
ADJOURNMENT:
Mayor Nelson adjourned the meeting at 6:47 PM.
APPROVED:
________________________________
MIKE NELSON
MAYOR
ATTEST:
________________________________
JANELL MARTIN
ASSISTANT CITY CLERK
CITY COUNCIL
AGENDA REPORT
MEETING
DATE:
August 26, 2024
TO: Mayor and City Council
FROM: Justin Vinson, Public Works Director
PREPARED
BY:
Justin Vinson, Public Works Director
SUBJECT: Approving and Authorizing a Purchase and Sale Agreement for APN 003-101-001 and Approving Expenditure of any Additional and Related Closing Expenses (Public Works Director Vinson)
RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. 3480-24 approving and authorizing a Purchase and Sale Agreement for sale of APN 003-101-001 for $5,000, in a form approved by the City Attorney, and approves the expenditure of any additional and related closing expenses; and authorizes and directs the City Manager, or his designee, to execute the Agreement on behalf of the City.
I. BACKGROUND/ANALYSIS:
In 1954, the City of Atwater drilled a water production well on Castle St at APN 003-101- 001. This well was used to help supply potable water to the residents of the city. In August 2006, the well went offline and was no longer a viable well to be used to deliver water. In December 2014, the well was officially destroyed. Since then, the property has been vacated and not used. The city has no use for this property anymore, and it is not necessary for any future use of the city.
The California Surplus Lands Act requires the city to declare the property surplus due to its size and access. The city must give written notice of its availability to public entities within the city's jurisdiction, hosting sponsors, and the California Department of Housing and Community Development, among others. The property is approximately .23 acres and its estimated worth is $25,000. The estimated $25,000 didn't consider that there is no sewer service to the lot. To get sewer service to this lot would require extending the sewer main from E. Juniper to the edge of the property line, as well as running a sewer lateral, which are both very costly and hinders development.
After declaring the property surplus, the city only received an offer from one interested party, the owner of the property adjacent to the parcel. After negotiations, the buyer agreed to purchase the property for $5,000, to merge their property with the city's property, and to split the closing cost. After the agreement is signed, the city will hold
CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond
Agenda Report - Approving and Authorizing a Purchase and Sale Agreement for APN 003-101-001 and Approving Expenditure of any Additional and Related Closing Expenses (Public Works Director Vinson) Page 2
escrow for 90 days per the Surplus Lands Act and then close escrow.
II. FISCAL IMPACTS:
There is sufficient funding for closing costs in the Water Enterprise Fund Special Department Expense Account No. 6000.7010.2021 and revenue for the sale of the property will be deposited into the Water Enterprise Fund Other Revenue Account No. 6000-0000-6091.
This item has been reviewed by the Finance Department.
III. LEGAL REVIEW:
This item has been reviewed by the City Attorney's Office.
IV. EXISTING POLICY:
This item is consistent with goal numbers one (1) and two (2) of the City's 2020-2025 Strategic Plan: to ensure the City's continued financial stability and to improve public safety, respectively.
V. ALTERNATIVES:
N/A
VI. INTERDEPARTMENTAL COORDINATION:
This item has been routed and reviewed by all departments.
VII. PUBLIC PARTICIPATION:
The public will have an opportunity to provide comments on this item prior to City Council action.
VIII. ENVIRONMENTAL REVIEW:
The sale of the Property as surplus is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15312 (Surplus Government Property Sales).
IX. STEPS FOLLOWING APPROVAL:
Following approval, staff will route the agreement for signatures.
Submitted by:
Justin Vinson, Public Works Director
Agenda Report - Approving and Authorizing a Purchase and Sale Agreement for APN 003-101-001 and Approving Expenditure of any Additional and Related Closing Expenses (Public Works Director Vinson) Page 3
Approved by:
Chris Hoem, City Manager
Attachments:
1. Resolution No. XXXX-24 Approves and Authorizes Purchase and Sale Agreement & Authorizes City Manager execute Agreement
2. Atwater - Purchase and Sale Agreement Les and Kathy Nickerson
3. Plat and Legal for APN 003-101-001_signed
CITY COUNCIL
OF THE
CITY OF ATWATER
RESOLUTION NO. XXXX-24
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ATWATER APPROVING AND
AUTHORIZING THE PURCHASE AND SALE
AGREEMENTS FOR APN 003-101-001;
APPROVING THE EXPENDITURE OF ANY
ADDITIONAL AND RELATED CLOSING
EXPENSES; AND AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, TO EXECUTE
THE AGREEMENT ON BEHALF OF THE CITY
WHEREAS, on December 16, 2014 the City destroyed Well 6 in accordance with Merced County guidelines due to ruptured casing; and
WHEREAS, Well 6 was located on APN 003-101-001; and
WHEREAS, the property was too small to drill a new well on and had no functional use to the City anymore; and
WHEREAS, at the January 22, 2024 council meeting, the city council declared the property surplus; and
WHEREAS, after a 60 day review period, the city received one offer on the property; and WHEREAS, the city entered into negotiations to sell the property to the owner of the property adjacent to the city’s property; and
WHEREAS, the City Council desires to execute the Purchase and Sale Agreement for APN 003-101-001.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby resolve, declare, and determine as follows:
1. The above recitals are true and correct and are incorporated herein by reference.
2. The City Council hereby approves and authorizes the Purchase and Sale Agreement for APN 003-101-001, in a form approved by the City Attorney, and authorizes the expenditure of any necessary and related closing costs.
Resolution No. XXXX-24 Page 2
3. The City Manager, or her designee, is authorized and directed to execute such document and perform such actions as are necessary to carry out the purpose and intent of this resolution.
The foregoing resolution is hereby adopted this 26th day of August 2024.
AYES:
NOES:
ABSENT:
APPROVED:
________________________________
MIKE NELSON, MAYOR
ATTEST:
_______________________________
KORY J. BILLINGS, CITY CLERK
3695867.1
1 PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is entered into as of August 26th, 2024 (the “Effective Date”), by and between the City of Atwater, a California municipal corporation (“Seller”), and Les and Kathy Nickerson (“Buyer”). Seller and Buyer may each be referred to herein as a “Party” or collectively as the “Parties.”
RECITALS
A. Seller, acting in its capacity as the housing successor to the Redevelopment Agency of the City of Atwater, is the owner of that certain real property approximately .23 acres in size and located south of Juniper Dr and west of Castle Street, in Atwater, California, also known as Merced County Assessor’s Parcel Number 003-101-001, and more particularly described in Exhibit A, attached hereto and incorporated herein (the “Property”).
B. Buyer has offered to purchase the Property for five thousand dollars ($5,000).
C. Buyer agrees to merge the real property known as 003-101-001 with property 003-101-002.
D. Buyer agrees that seller will preserve all existing easements.
E. Buyer agree to take possession in an “as is condition”.
F. Buyer agrees to purchase the Property, and Seller agrees to sell the Property to Buyer, subject to the terms and conditions of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by the parties, Seller and Buyer hereby agree as follows:
1. INCORPORATION OF RECITALS AND EXHIBITS. The Recitals set forth above and the Exhibits attached to this Agreement are each incorporated into the body of this Agreement as if set forth in full.
2. PURCHASE AND SALE.
2.1 Agreement to Buy and Sell. Subject to the terms and conditions set forth herein, Seller agrees to sell the Property to Buyer, and Buyer hereby agrees to acquire the Property from Seller.
3695867.1
2 2.2 Purchase Price. The purchase price for the Property to be paid by Buyer to Seller (the “Purchase Price”) is Five Thousand Dollars ($5,000). The Purchase Price will be paid in immediately available funds to Seller on the Closing Date at the address of Seller as provided in Section 10.8 of this Agreement.
2.3 Buyer agrees to merge the real property known as 003-101-001 with property 003-101-002.
3. ESCROW.
3.1 Escrow Account. Seller has opened, or within three (3) business days of the Effective Date shall open, an escrow account (the “Escrow”) maintained by First American Title Co. (the “Title Company”), 17 W Alexander Ave, Merced, CA 95348 Attn: Rosalba Ramirez, or such other title company as selected by the City (the “Escrow Holder”), with interest accruing to the benefit of Buyer. Escrow Holder shall perform all escrow and title services in connection with this Agreement.
3.2 Opening of Escrow. Within three (3) business days after the Effective Date, the Parties will deposit into Escrow the fully executed Agreement, or executed counterparts thereto. The date such fully executed Agreement is received by Escrow Holder will be deemed the “Opening of Escrow” and Escrow Holder will give written notice to the Parties of such occurrence.
3.3 Satisfaction of Due Diligence Contingency. Buyer shall have the right, in its sole discretion, to terminate this Agreement for any reason prior to the expiration of the Due Diligence Contingency Period (as defined in Section 5(a) below).
Buyer hereby agrees to provide written notice to Seller prior to the expiration of the Due Diligence Contingency Period if Buyer disapproves any due diligence items or approves all due diligence items (“Approval Notice”). If Buyer disapproves any items through the delivery of the Approval Notice to Seller before 5:00 p.m. on the last day of the Due Diligence Contingency Period, this Agreement shall terminate, and all amounts deposited by Buyer into escrow, together with interest thereon, if any, will be returned to Buyer, and neither party shall have any further rights or obligations hereunder except those which expressly survive the termination hereof. Notwithstanding the foregoing, if Buyer fails to timely deliver the Approval Notice to Seller, it will be conclusively presumed that Buyer has approved all such items, matters or documents.
4. PROPERTY DISCLOSURE REQUIREMENTS.
4.1 Condition of Title/Preliminary Title Report. Escrow Holder shall deliver a Preliminary Title Report for the Property (the “Preliminary Report”) to Buyer within three (3) days after the Opening of Escrow. Buyer shall have until the end of the Due Diligence Contingency Period to approve the condition of title to the Property. If Buyer delivers the Approval Notice, Buyer agrees to take title to the Property subject to the
3695867.1
3 following “Permitted Exceptions:” (a) standard printed exceptions in the Preliminary Report; (b) general and special real property taxes and assessments constituting a lien not yet due and payable; and (c) the exceptions to the title referenced in the Approval Notice.
4.2 Environmental and Natural Hazards Disclosure. California Health & Safety Code section 25359.7 requires owners of non-residential real property who know, or have reasonable cause to believe, that any release of hazardous substances are located on or beneath the real property to provide written notice of same to the buyer of real property. Other applicable laws require Seller to provide certain disclosures regarding natural hazards affecting the Property. Seller agrees to make all necessary disclosures required by law within ten (10) business days of the effective date.
5. CLOSING AND PAYMENT OF PURCHASE PRICE.
5.1 Closing. The closing (the “Closing” or “Close of Escrow”) will occur no later than 120 (120) days after the Effective Date (“Closing Date”). The Closing Date may be extended by mutual agreement of the Parties in writing. If Close of Escrow has not occurred by the Closing Date, Seller or Buyer may elect to terminate this Agreement.
5.2 Buyer’s Conditions to Closing. Buyer's obligation to purchase the Property is subject to the satisfaction of all of the following conditions or Buyer's written waiver thereof (in Buyer’s sole discretion) on or before the Closing Date:
(a) Buyer will have thirty (90) days from the Opening of Escrow (the “Due Diligence Contingency Period”) to complete physical inspections of the Property and due diligence related to the purchase of the Property. Seller shall provide to Buyer copies of all reasonably available and known documents relating to the ownership and operation of the Property, including but not limited to plans, permits and reports (environmental, structural, mechanical, engineering and land surveys) that Seller has in its possession not later than five (5) business days following the execution and delivery of this Agreement. The Parties acknowledge and agree that Buyer has current possession of the Property and may conduct any physical inspections at its discretion in accordance with the provisions of the Lease.
(b) Seller has performed all obligations to be performed by Seller pursuant to this Agreement.
(c) Seller's representations and warranties herein are true and correct in all material respects as of the Closing Date. (d) The Title Company is irrevocably committed to issue a CLTA Title Policy to Buyer, effective as of the Closing Date, insuring title to Buyer in the full amount of the Purchase Price subject only to the Permitted Exceptions.
3695867.1
4 5.3 Seller’s Conditions to Closing. The Close of Escrow and Seller's obligation to sell and convey the Property to Buyer are subject to the satisfaction of the following conditions or Seller's written waiver (in Seller’s sole discretion) of such conditions on or before the Closing Date:
(a) Buyer has performed all obligations to be performed by Buyer pursuant to this Agreement before Closing Date.
(b) Buyer's representations and warranties set forth herein are true and correct in all material respects as of the Closing Date.
5.4 Conveyance of Title. Seller will deliver marketable fee simple title to Buyer at the Closing, subject only to the Permitted Exceptions. The Property will be conveyed by Seller to Buyer in an “as is” condition, with no warranty, express or implied, by Seller as to the physical condition including, but not limited to, the soil, its geology, or the presence of known or unknown faults or Hazardous Materials or hazardous waste (as defined by state and federal law); provided, however, that the foregoing shall not relieve Seller from disclosure of any such conditions of which Seller has actual knowledge. The Parties acknowledge that Buyer has been in actual possession of the Property for over one (1) year and has personal knowledge of the conditions of the Property.
5.5 Deliveries at Closing.
(a) Deliveries by Seller. Seller shall deposit into the Escrow for delivery to Buyer at Closing:
(i) a grant deed;
(ii) an affidavit or qualifying statement which satisfies the requirements of paragraph 1445 of the Internal Revenue
Code of 1986, as amended, any regulations thereunder (the “Non-Foreign Affidavit”);
(iii) a California Franchise Tax Board form 590 to satisfy the requirements of California Revenue and Taxation Code
Section 18805(b) and 26131;
(iv) such resolutions, authorizations, or other documents or agreements relating to Seller as shall be reasonably required by Title Company; and
(v) all other documents required by this Agreement to
complete the Closing.
(b) Deliveries by Buyer. Buyer shall deposit into the Escrow at Closing immediately available funds in the amount, which together with the Independent Consideration and the Deposit plus interest thereon, if any, is equal to:
(i) the Purchase Price as adjusted by any prorations between the Parties;
3695867.1
5 (ii) Buyer’s share of the escrow fees and recording fees; and (iii) the cost of the Title Policy;
(iv) such resolutions, authorizations, or other documents or agreements relating to Buyer as shall be reasonably required by Title Company; and
(v) all other documents required by this Agreement to
complete the Closing.
(c) Closing. Upon Closing, Escrow Holder shall: (i) record the grant deed; (ii) disburse to Seller the Purchase Price, less Seller’s share of any escrow fees, costs and expenses; (iii) deliver to Buyer the Non-Foreign Affidavit, the California Certificate and the original recorded grant deed; and (iv) distribute to itself the payment of escrow fees and expenses required hereunder.
(d) Closing Costs. Buyer and Seller will equally split all escrow fees (including the costs of preparing documents and instruments), title report costs, and recording fees. Buyer will pay title insurance and any applicable transfer tax. Seller is a public agency and is exempt from the payment of transfer taxes. All other costs and fees shall be paid in accordance with custom and practice in Merced County. (e) Pro-Rations. At the close of escrow, the Escrow Agent shall make the following prorations: (i) property taxes will be prorated as of the Close of Escrow based upon the most recent tax bill available, including any property taxes which may be assessed after the close of escrow but which pertain to the period prior to the transfer of title to the Property to Buyer, regardless of when or to whom notice thereof is delivered (Seller is a public agency exempt from the payment of property taxes and shall not be responsible for the payment of any portion of property taxes assessed on the Property); and (ii) any bond or assessment that constitutes a lien on the Property at the Close of Escrow will be assumed by Buyer. Seller is a public agency exempt from the payment of property taxes and shall not be responsible for the payment of any property taxes through prorations.
6. REPRESENTATIONS, WARRANTIES AND COVENANTS.
6.1 Seller’s Representations, Warranties and Covenants. In addition to the representations, warranties and covenants of Seller contained in other sections of this Agreement, Seller hereby represents, warrants and covenants to Buyer that the statements below in this Section 6.1 are each true and correct as of the Closing Date:
(a) Authority. Seller is a municipal corporation, lawfully formed, in existence and in good standing under the laws of the State of California. Seller has the full right, capacity, power and authority to enter into and carry out the terms of this Agreement. The Seller explicitly represents and warrants that it has the full right to sell or otherwise dispose the Property to Buyer. This Agreement has been duly executed by Seller, and upon delivery to and execution by Buyer is a valid and binding agreement of Seller.
3695867.1
6 (b) Encumbrances. Seller has not alienated, encumbered, transferred, mortgaged, assigned, pledged, or otherwise conveyed its interest in the Property or any portion thereof, nor entered into any Agreement to do so, and there are no liens, encumbrances, mortgages, covenants, conditions, reservations, restrictions, easements or other matters affecting the Property, except as disclosed in the Preliminary Report and the Lease. Seller will not, directly or indirectly, alienate, encumber, transfer, mortgage, assign, pledge, or otherwise convey its interest prior to the Close of Escrow, as long as this Agreement is in force.
(c) There are no agreements affecting the Property except those which have been disclosed by Seller and the Lease. There are no agreements which will be binding on the Buyer or the Property after the Close of Escrow, which cannot be terminated on thirty (30) days prior written notice.
The truth and accuracy of each of the representations and warranties, and the performance of all covenants of Seller contained in this Agreement are conditions precedent to Buyer’s obligation to proceed with the Closing hereunder. The foregoing representations and warranties shall survive the expiration, termination, or close of escrow of this Agreement and shall not be deemed merged into the deed upon closing.
6.2 Buyer’s Representations and Warranties. In addition to the representations, warranties and covenants of Buyer contained in other sections of this Agreement, Buyer hereby represents, warrants and covenants to Seller that the statements below in this Section 6.2 are each true as of the Closing Date:
(a) Buyer is a California corporation. Buyer has the full right, capacity, power and authority to enter into and carry out the terms of this Agreement. This Agreement has been duly executed by Buyer, and upon delivery to and execution by Seller shall be a valid and binding agreement of Buyer.
The truth and accuracy of each of the representations and warranties, and the performance of all covenants of Buyer contained in this Agreement are conditions precedent to Seller’s obligation to proceed with the Closing hereunder.
7. REMEDIES In the event of a breach or default under this Agreement by Seller, if such breach or default occurs prior to Close of Escrow, Buyer reserves the right to either (a) seek specific performance from Seller or (b) to do any of the following: (i) to waive the breach or default and proceed to close as provided herein; (ii) to extend the time for performance and the Closing Date until Seller is able to perform; or (iii) to terminate this Agreement upon written notice to Seller, whereupon Seller shall cause Escrow Holder to return to Buyer any and all sums placed into the Escrow by Buyer, and except for the rights and obligations expressly provided to survive termination of this Agreement, neither party shall have any further obligations or liabilities hereunder. In the event of a breach or default hereunder by Buyer and the closing does not occur due to such default, the Lease shall remain in full force and effect, and Buyer shall be responsible
3695867.1
7 for any fees owed to the Title Company and Escrow Officer. The Parties agree that Seller shall have no other remedies. IN NO EVENT SHALL EITHER PARTY BE ENTITLED TO
LOST PROFITS OR CONSEQUENTIAL DAMAGES AS A RESULT OF THE OTHER PARTY’S BREACH OF THIS AGREEMENT.
8. BROKERS. Each party represents that no real estate broker has been retained by the Party in the sale of the Property or the negotiation of this Agreement.
Buyer shall indemnify, hold harmless and defend the Seller from any and all claims, actions and liability for any breach of the preceding sentence, and any commission, finder’s fee, or similar charges arising out of Buyer’s conduct.
9. ASSIGNMENT. Neither Seller nor Buyer may assign its rights or delegate its duties under this Agreement without the express written consent of the other, which consent may be withheld for any reason.
10. MISCELLANEOUS.
10.1 Attorneys’ Fees. If any party employs counsel to enforce or interpret this Agreement, including the commencement of any legal proceeding whatsoever (including insolvency, bankruptcy, arbitration, mediation, declaratory relief or other litigation), the prevailing party shall be entitled to recover its reasonable attorneys’ fees and court costs (including the service of process, filing fees, court and court reporter costs, investigative fees, expert witness fees, and the costs of any bonds, whether taxable or not) and shall include the right to recover such fees and costs incurred in any appeal or efforts to collect or otherwise enforce any judgment in its favor in addition to any other remedy it may obtain or be awarded. Any judgment or final order issued in any legal proceeding shall include reimbursement for all such attorneys’ fees and costs. In any legal proceeding, the “prevailing party” shall mean the party determined by the court to most nearly prevail and not necessarily the party in whose favor a judgment is rendered.
10.2 Interpretation. This Agreement has been negotiated at arm’s length and each party has been represented by independent legal counsel in this transaction and this Agreement has been reviewed and revised by counsel to each of the Parties. Accordingly, each party hereby waives any benefit under any rule of law (including Section 1654 of the California Civil Code) or legal decision that would require interpretation of any ambiguities in this Agreement against the drafting party.
10.3 Survival. All indemnities, covenants, representations and warranties contained in this Agreement shall survive Close of Escrow.
10.4 Successors. Except as provided to the contrary in this Agreement, this Agreement shall be binding on and inure to the benefit of the Parties and their successors and assigns.
10.5 Governing Law & Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of California. Venue for any dispute
3695867.1
8 arising out of this Agreement shall be the state or federal courts in Merced County, California.
10.6 Integrated Agreement; Modifications. This Agreement contains all the agreements of the Parties concerning the subject hereof any cannot be amended or modified except by a written instrument executed and delivered by the parties. There are no representations, agreements, arrangements or understandings, either oral or written, between or among the parties hereto relating to the subject matter of this Agreement that are not fully expressed herein.
10.7 Severability. If any term or provision of this Agreement is determined to be illegal, unenforceable, or invalid in whole or in part for any reason, such provisions or part thereof shall be stricken from this Agreement, any such provision shall not be affected by the legality, enforceability, or validity of the remainder of this Agreement.
10.8 Notices. Any delivery of this Agreement, notice, modification of this Agreement, consent, approval, waiver, or other communication that either party desires or is required to give to the other party or any other person shall be in writing. Any such communication may be served personally, or by nationally recognized overnight delivery service (i.e., Federal Express) which provides a receipt of delivery, or sent by prepaid, first class mail, return receipt requested to the party’s address as set forth below:
To Seller City of Atwater
750 Bellevue Road
Atwater, CA 95301
Attn: Chris Hoem, City Manager
To Buyer: Les and Kathy Nickerson
1645 Castle Street
Atwater, CA 95301
To Escrow Holder: First American Title Co.
17 W Alexander Ave
Merced, CA 95348
Attn: Rosalba Ramirez
Any such communication shall be deemed effective upon personal deliver or on the date of first refusal to accept delivery as reflected on the receipt of delivery or return receipt, as applicable.
10.9 Time. Time is of the essence to the performance of each and every obligation under this Agreement.
3695867.1
9 10.10 Days of Week. If any date for exercise of any right, giving of any notice, or performance of any provision of this Agreement falls on a Saturday, Sunday or holiday, the time for performance will be extended to 5:00 p.m. on the next business day of the City of Atwater.
10.11 Waivers. Any waiver by any party shall be in writing. No waiver will be implied from any delay or failure to take action on account of any default by any party. Consent by any party to any act or omission by another party shall not be construed to be a consent to any other subsequent act or omission.
10.12 Signatures/Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any one of such completely executed counterparts shall be sufficient proof of this Agreement.
10.13 Date and Delivery of Agreement. Notwithstanding anything to the contrary contained in this Agreement, the parties intend that this Agreement shall be deemed effective, and delivered for all purposes under this Agreement, and for the calculation of any statutory time periods based on the date an agreement between parties is effective, executed, or delivered, as of the Effective Date.
10.14 Representation on Authority of Parties. Each person signing this Agreement represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Agreement
SIGNATURES ON FOLLOWING PAGE
3695867.1
10 IN WITNESS WHEREOF, this Agreement is executed by Buyer and Seller as of the Effective Date.
BUYER SELLER
Les and Kathy Nickerson City of Atwater,
a California Municpal Corporation
By:_________________________ By:_________________________ Les and Kathy Nickerson Chris Hoem, City Manager
Approved as to Form:
Frank Splendorio, City Attorney
- A-1 -
EXHIBIT A
LEGAL DESCRIPTION
EXHIBIT A
LEGAL DESCRIPTION
FOR APN 003-101-001
Being a portion of Lot 14, in Block 2, as shown on that certain Map of Castle Park Acres, filed in Volume 11 of Maps, at Page 7, Merced County Records, situate in the City of Atwater, County of Merced, State of California, lying in section 1, Township 7 South, Range 12 East, Mount Diablo Base and Meridian, being more particularly described as follows:
The North 98.64 feet of the West 100.0 feet of Lot 14, in Block 2, according to map referred to above, and the East line thereof being parallel to the West line of said Lot 14 and the South line thereof being parallel to the North line of said Lot 14.
Containing 0.23 acres, more or less.
Subject to all easements and rights-of-way of record.
A plat (Exhibit B) showing the above-described area is attached hereto and made a part hereof.
Prepared by:
__________________________ ______________
Ryan Vance, L. S. 8225 Date
5/2/2023
APN 003-101-002
0.82 ACRES± NICKERSON LESLIE M &
35,542 SF± KATHRYN L
MANUEL GUISAR BAUTISTA
APN 003-023-002 MANUEL GUISAR JR
APN 003-023-003 SAUL HERNANDEZ
APN 003-023-004 NICOLAS VARGAS
ANGELA VARGAS
APN 003-023-005 PEDRO VARGAS MARIA ELENA VARGAS
APN 003-023-006
JOEL VARGAS
APN 003-272-007
JOHN RIIS-CHRISTENSEN
BARBARA RIIS-CHRISTENSEN
APN 003-272-006 ANTHONY MENDEZ
APN 003-272-005
IRENE M CRAWFORD
APN 003-272-004
JESUS G LOPEZ
ARTURO
HIGH STREET
CASTLE STREET
APN 003-023-007 LOT 14 11-OP-07 PARCEL 2 21-PM-42 PARCEL 1 W:\10930300\CASTLE STREET ALLEY ABANDONMENT\survey\DRAWING\SHEET FILES\Exhibit B.dwg 5/3/23 15:14 EXHIBIT APN 003-101-001 B EXHIBIT FOR ATWATER, MERCED COUNTY, CALIFORNIA 95301 PROPERTY INBETWEEN 1645 CASTLE ST. AND 1798 HIGH ST. CITY OF ATWATER NRS APRIL 2023
HIGH STREET
0 50 100 SCALE: 1" = 50'
N EXHIBIT B
CASTLE STREET
APN 003-101-003 NATHAN M BANUELOS PARCEL 1 21-PM-42
JUNIPER AVENUE PRELIMINARY
ALLEY WAY APN 003-101-001 0.23 ACRES± 9,864 SF± CITY OF ATWATER
CITY COUNCIL
AGENDA REPORT
MEETING
DATE:
August 26, 2024
TO: Mayor and City Council
FROM: Greg Thompson, Deputy City Manager/Community Development Director
PREPARED
BY:
Julia Coronado
SUBJECT: Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/24 (Deputy City Manager/Community Development Director Thompson)
RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. 3481-24, authorizing and directing the City Manager to execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/2024; and adopt Resolution No. 3482-24, approving Budget Amendment No. 2 amending the Regional Surface Transportation Program (RSTP) Exchange Funds Claim.
I. BACKGROUND/ANALYSIS:
1. BACKGROUND:
Annually, Merced County Association of Governments (MCAG) provides the City of Atwater (“City”) the opportunity to participate in the exchange of unobligated federal transportation funds for state funds under the Regional Surface Transportation Program (RSTP) Exchange Funds Program. Exchanging federal funds for state funds provides for more flexibility in the use of such transportation monies.
The claim form requires the City to designate project(s) that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highway Code.
The City of Atwater will produce application(s) by way of claim form(s) to the Regional Surface Transportation Program to perform a grind and overlay on Olive Avenue. A portion of this claim will also be used to assist in funding the environmental portion of the Ace Train Platform Project.
CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond
Agenda Report - Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/24 (Deputy City Manager/Community Development Director Thompson)
1. ANALYSIS:
The allocation of RSTP exchange funds to each jurisdiction is calculated by population.
In order to obtain these funds as quickly as possible, it is necessary to file an exchange claim form with an authorizing resolution from the City Council. The claim form and resolution must be filed and returned to MCAG for processing. The MCAG Governing Board adopted their resolution approving the disbursement of FY 2023/2024 RSTP funds at their May 23, 2024 meeting.
II. FISCAL IMPACTS:
By adopting this resolution and filing an exchange form, the City will receive $444,743.
III. LEGAL REVIEW:
This item has been reviewed by the City Attorney’s Office IV. EXISTING POLICY:
This item is consistent with goal number one (1) of the City's Strategic Plan: to ensure the City's continued financial stability.
V. ALTERNATIVES:
N/A
VI. INTERDEPARTMENTAL COORDINATION:
This item has been reviewed by all departments.
VII. PUBLIC PARTICIPATION:
The public will have an opportunity to provide comments on this item prior to City Council action.
VIII. ENVIRONMENTAL REVIEW:
This item is not a “project” under the California Environmental Quality Act (CEQA) as this activity does not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to Public Resources Code section 21065.
IX. STEPS FOLLOWING APPROVAL:
Upon adoption of the resolutions, the City Manager shall execute and file the Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/2024.
Agenda Report - Authorizing Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2023/24 (Deputy City Manager/Community Development Director Thompson)
Submitted by:
Greg Thompson, Deputy City Manager/Community Development Director Approved by:
Chris Hoem, City Manager
Attachments:
1. Resolution No XXXX-24 Authorizing RSTP Submittal for FY 23-24
2. Resolution No. XXXX-24 Budget Amendment No X RSTP 2023-24 FY Claim
3. City of Atwater FY 23-24 RSTP Claim Form
CITY COUNCIL
OF THE
CITY OF ATWATER
RESOLUTION NO. XXXX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATWATER AUTHORIZING THE CITY MANAGER TO
EXECUTE AND FILE THE REGIONAL SURFACE
TRANSPORTATION PROGRAM (RSTP) EXCHANGE FUNDS
CLAIM FOR FISCAL YEAR 2023-24
WHEREAS, the the Merced County Association of Governments (MCAG) and the California Department of Transportation (CalTrans) have entered into an Standard Agreement contract to exchange unobligated balances of federally funded Regional Surface Transportation Program (RSTP) funds with non-federal State Highway Account funds; and WHEREAS, CalTrans Division of Programming releases a 5-year ESTIMATE of RSTP Exchange Program apportionments for inclusion in the Federal Transportation Improvement Program (FTIP) Programming document every 2-years to California Metropolitan Planning Organizations (MPOs); and
WHEREAS, MCAG is the designated MPO for Merced County; and WHEREAS, the Annual RSTP Exchange Program fund apportionment is an estimate and subject to change during the fiscal year (FY) due to many Federal Surface Transportation Bill variables including the annual appropriations act as well as other Congressional action (i.e. rescissions); and
WHEREAS, a FINAL RSTP Exchange apportionment amount is published at the end of the FY 23/24 and can be different than the ESTIMATE RSTP Exchange apportionment figure; and WHEREAS, annually, CalTrans sends MCAG a Standard Agreement contract that includes an RSTP Exchange Program apportionment figure; and
WHEREAS, MCAG applies a RSTP population based distribution formula using current Department of Finance (DOF) population estimates (May 2023) to the RSTP apportionment to determine the amount of RSTP Exchange funds to be distributed to MCAG member jurisdictions; and
WHEREAS, the City of Atwater has an ESTIMATE RSTP Exchange Program fund apportionment amount available to claim in FY 23/24 of $444,743.00; and
Resolution No. XXXX-24 Page 2
WHEREAS, payment of the ESTIMATE RSTP Exchange fund claim will be subject to all conditions specified in the fully executed standard contract agreement between MCAG and CalTrans, as well as the MCAG RSTP Exchange claim form requirements: Projects to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code; and
WHEREAS, if the FINAL RSTP Exchange apportionment figure is higher for FY 23/24 than the ESTIMATE RSTP Exchange apportionment figure, CalTrans would have to revise the RSTP Exchange Standard Agreement contract with the higher RSTP figure before MCAG could instruct the Merced County Auditor Controller’s Officer to distribute a greater amount of RSTP Exchange Program funds to member agencies, than identified in this resolution; and WHEREAS, if the FINAL RSTP Exchange apportionment figure is lower for FY 23/24 than the ESTIMATE RSTP Exchange apportionment amount, CalTrans does not have to revise the RSTP Exchange contract with the lower amount before MCAG could recalculate the available RSTP Exchange Program funds using the same population based formula and then instruct the Merced County Auditor Controller’s Officer to distribute the lower FY 23/24 FINAL RSTP Exchange program fund amount to member agencies; and
WHEREAS, the City of Atwater has established special gas tax street improvement fund as a requirement to receive the RSTP Exchange Program funds; and WHEREAS, it is deemed in the best interest of the City of Atwater that the City Manager be authorized to sign the RSTP exchange fund claim for FY 23/24 and to submit said claim to MCAG for processing.
NOW, THEREFORE, BE IT RESOLVED that the City Manager is authorized and directed to sign and file the above described FY 23/24 RSTP exchange fund claim on behalf of the City of Atwater in the amount of $444,743.00.
The foregoing resolution is hereby adopted this 26th day of August, 2024.
AYES:
NOES:
ABSENT: APPROVED:
_____________________________
MIKE NELSON, MAYOR
ATTEST:
______________________________
Resolution No. XXXX-24 Page 3
KORY BILLINGS
CITY CLERK
RESOLUTION NO. XXXX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATWATER APPROVING BUDGET AMENDMENT NO. X
AMENDING 24-25 FISCAL YEAR BUDGET REGARDING
REGIONAL SURFACE TRANSPORTATION PROGRAM (RSTP)
FUND
WHEREAS, the City Council of the City of Atwater adopted Resolution No. 3461-24 adopting the 2024-25 Fiscal Year Budget on June 10, 2024; and
WHEREAS, from time to time, and in order to operate effectively, it is necessary to amend said budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby approve Budget Amendment No. X to the 2024-25 Fiscal Year Budget as follows:
SECTION 1: Increasing budget appropriation in the RSTP Fund for Fiscal Year 2024-2025.
Establish Budget
(Revenue) 1017-0000-3147 RSTP $444,743
Increase Budget
(Expense) 1017-1080-V003 RSTP- Ace Train Platform $244,743 Establish Budget
(Expense) 1017-1080-X014 RSTP- Olive Avenue Reconstruction $200,000 BE IT FURTHER RESOLVED that a copy of this resolution appends to the original budget document that is available in the Finance Department and the City Clerk/Board Clerk’s office.
The foregoing resolution is hereby adopted this 26th day of August 2024.
AYES:
NOES:
ABSENT:
APPROVED:
________________________________
MIKE NELSON, MAYOR
ATTEST:
CITY COUNCIL
OF THE
CITY OF ATWATER
______________________________
KORY J. BILLINGS, CITY CLERK
PH: 209.723.3153
FAX: 209.723.0322
www.mcagov.org
369 W, 18th Street
Merced, Ca. 93540
P a r t n e r i n g f o r R e g i o n a l S o l u t i o n s Claim to the Merced County Association of Governments
for Regional Surface Transportation Program (RSTP) Funds in Exchange for State Highway Account Funds FY 2023/2024
Project Cost of
Project
Air
Quality
Exempt
1. Grind and Overlay on Olive Avenue
$200,000.00
2. Ace Train Platform Project (Environmental portion)
$244,743.00
3. $
4. $
FY 23/24 Claim Amount: $444,743.00
Claimant: City of Atwater
Claim Guidelines:
Projects outlined in the table below to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.
Claim Instructions:
1. List (print or type) each INDIVIDUAL project to be funded with this claim.
2. List the amount of funds to be used for each project.
3. If the project is not a capacity expanding project and is exempt from the air quality conformance analysis check the “Exempt” box. ()
4. If the project is a capacity expanding project and the “build” alternative of the air quality conformance analysis has been completed for the project as required check the “Air Quality” box. ()
It is understood by this claimant (City of Atwater) that payment of this claim is subject to approval by the MCAG Governing Board and must be in accordance with the MCAG and Caltrans Agreement. Said monies (and the interest earned on such monies subsequent to allocation) will be used only for those purposes for which the claim is approved.
The undersigned claimant, by accepting these funds agrees to establish a special account for the purpose of depositing funds received from MCAG pursuant to this agreement:
a. For cities, within their Special Gas Tax Street Improvement Fund; or b. For the county, within their County Road Fund
The undersigned claimant, by accepting these funds, agrees to grant the State of California auditors access to their books and records for the purpose of verifying that funds paid hereunder are properly accounted for and proceeds are expended in accordance with the terms of this agreement. All documents will be available for inspection by authorized Caltrans agents at any time during the project development and for a four-year period from the date of completion of the project, or one year after the audit is completed or waived by Caltrans, whichever is later.
If the undersigned claimant fails to use funds received hereunder in accordance with the terms of the agreement, the claimant agrees to return the exchange funds to MCAG for credit to the special account described above.
Further, the Chief Financial Officer of the claimant certifies that the financial information contained herein, is reasonable and accurate to the best of his/her knowledge.
Authorized Representative:
Signature
Chris Hoem
Print Name
City Manager
Title
Date
Signature of Chief Financial Officer
Print Name
CITY COUNCIL
AGENDA REPORT
MEETING
DATE:
August 26, 2024
TO: Mayor and City Council
FROM: Anna Nicholas, Finance Director
PREPARED
BY:
Anna Nicholas, Finance Director
SUBJECT: Receiving and Accepting the City of Atwater's Annual Financial Report and Single Audit for Fiscal Year-End of June 30, 2023 (Finance Director Nicholas)
RECOMMENDED COUNCIL ACTION
Motion to receive and accept the City of Atwater's Annual Financial Report and Single Audit for the Fiscal Year-End of June 30, 2023.
I. BACKGROUND/ANALYSIS:
Background:
Each year, the City's financial records are audited by an independent Certified Public Accounting firm. For the financial records of Fiscal Year 2022-23 (FY 23), the independent external auditing firm of Badawi & Associates performed the annual audit.
Using Generally Accepted Accounting Principles (GAAP) and Generally Accepted Government Auditing Standards (GAGAS), the firm reviewed the financial records of the City and issued the FY 23 Single Audit Report and the FY 23 Annual Financial Report, which includes the Independent Auditor's Report. In addition, the Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for FY 23 has been completed. This report is to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution, as it pertains to the Appropriations Limit and the calculations to be reviewed as part of the annual audit process. All of these reports are used by internal and external stakeholders to evaluate the fiscal condition of the City.
Analysis:
The City received an unmodified (clean) audit opinion for the FY 23 Annual Financial Report. This is the best audit opinion the City can receive. The opinion indicates the auditor found the financial statements to be fairly presented in all material respects, in accordance with the applicable financial reporting framework; there have been no findings of material misstatements; and the City has adhered to GAAP in the preparation of the financial statements.
CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond
Agenda Report - Receiving and Accepting the City of Atwater's Annual Financial Report and Single Audit for Fiscal Year-End of June 30, 2023 (Finance Director Nicholas) Page 2
Along with the Annual Financial Report, the auditor includes an Independent Auditor's Report which addresses internal controls over financial reporting. There were no findings of material weaknesses. However, it should be noted there were two findings of significant deficiencies. The difference between a material weakness and a significant deficiency is that a material weakness is a deficiency (or a combination of deficiencies) in internal controls severe enough that there could be a reasonable conclusion that a material misstatement of the financial statements may not be prevented or detected and corrected timely. A significant deficiency is a deficiency (or combination of deficiencies) in internal controls, while less severe than a material weakness, warrants consideration and correction. The goal should be to implement a plan to correct the significant deficiencies soon so they do not turn into material weaknesses in the internal control framework of an organization. The findings and the Management Response to the findings can be located in the Independent Auditor's Report on Internal Control over Compliance.
Going into FY 23, during the annual budget process, the City anticipated ending FY 23 with an estimated $9.4 million in positive fund balance. The completed Annual Financial Report shows the General Fund ended with a positive fund balance of $15.6 million.
The increase in the actual versus estimated amount is due to revenues coming in higher than anticipated and expenses coming in lower than anticipated. A more detailed analysis of the City's total net position and additional explanation of the financial statements can be located in the Management Discussion & Analysis (MD&A). The MD&A provides a useful narrative and overview of some of the highlights of the Annual Financial Report.
II. FISCAL IMPACTS:
There is no fiscal impact with the acceptance of the Annual Financial Report and Single Audit. The fiscal impact for the preparation of the Annual Financial Report is planned for and included in the annual operating budget. The cost to complete this audit and related reports was $37,160 and came in on budget without any exceedance of the estimated budget amount.
III. LEGAL REVIEW:
This item has been reviewed by the City Attorney's Office.
IV. EXISTING POLICY:
Not Applicable
V. ALTERNATIVES:
Agenda Report - Receiving and Accepting the City of Atwater's Annual Financial Report and Single Audit for Fiscal Year-End of June 30, 2023 (Finance Director Nicholas) Page 3
No Applicable
VI. INTERDEPARTMENTAL COORDINATION:
Not Applicable
VII. PUBLIC PARTICIPATION:
The public will have an opportunity to provide comments on this item prior to City Council action.
VIII. ENVIRONMENTAL REVIEW:
Not Applicable
IX. STEPS FOLLOWING APPROVAL:
The City Clerk's Office will post the audited Annual Financial Report and Single Audit to the City's website where it will be accessible to all stakeholders.
Submitted by:
/s/Anna Nicholas, Finance Director
Approved by:
Chris Hoem, City Manager
Attachments:
1. City of Atwater Gann 2023 - Final
2. City of Atwater Single Audit Report FY2023 - FINAL
3. City of Atwater AFR FY2023 - FINAL
City of
Atwater
Atwater, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the year ended June 30, 2023
INDEPENDENT ACCOUNTANTS’ REPORT
To the Honorable Mayor and City Council
of the City of Atwater
Atwater, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Atwater (City) for the fiscal year ended June 30, 2023. The City’s management is responsible for the accompanying Appropriations Limit Schedule.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and our findings are described below:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ended June 30, 2023, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
To the Honorable Mayor and Members of City Council
of the City of Atwater
Atwater, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited.
Badawi & Associates, CPAs
Berkeley, California
July 2, 2024
2
City of Atwater
Appropriations Limit Schedule
For the year ended June 30, 2023
Amount Source
A. Appropriations limit for the year ended June 30, 2022 $ 54,952,850 Prior year schedule B. Calculation factors:
1. Population increase 0.9880 State Department of Finance
2. Inflation increase (deflation decrease) 1.0755 State Department of Finance
3. Total adjustment factor 1.0625 B1 * B2
C. Annual adjustment increase (decrease) 3,434,553 [(B3-1)*A)] D. Other adjustments:
Loss responsibility (-) - N/A
Transfers to private (-) - N/A
Transfers to fees (-) - N/A
Assumed responsibility (+) - N/A
E. Total adjustments 3,434,553 (C+D)
F. Appropriations limit for the year ended June 30, 2023 $ 58,387,403 (A+E) 3
City of Atwater
Notes to Appropriations Limit Schedule
For the year ended June 30, 2023
1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes.
Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to this agreed upon procedures engagement.
2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.
3. INFLATION FACTORS
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Atwater for the fiscal year 2022-2023 represents the change in per capita income in the State of California.
4. POPULATION FACTORS
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City of Atwater for fiscal year 2022-2023 represents the population change in the County.
5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the fiscal year ended June 30, 2023. 4
Atwater, California
Single Audit Reports
For the year ended June 30, 2023
City of Atwater
Single Audit Reports
For the year ended June 30, 2023
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................... 1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .............................................. 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 7 Schedule of Findings and Questioned Costs ....................................................................................................... 8
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, 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, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated July 2, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Badawi & Associates, CPAs
Berkeley, California
July 2, 2024
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, 2023. 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, 2023.
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
4 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
5 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, 2023, 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, 2024, 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
July 2, 2024
City of Atwater
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2023
6
City of Atwater
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2023
7 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.
City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
8 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:
x Material weakness(es) identified? No
x Significant deficiency(ies) identified? Yes
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
x Material weakness(es) identified? No
x 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:
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
City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
9 Section II – Current Year Findings
A. Financial Statement Audit
2023-001 – Financial Closing and Audit Preparedness (Significant Deficiency) Criteria
The City is responsible for a timely preparation and presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. In addition, an effective internal control system over financial closing and reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.
Condition
During the performance of the audit, we noted that the City was not fully prepared for the audit. Several of the documents requested for the audit were not provided timely. Several issues were identified and adjusted during the year. This resulted in significant delays in the audit process. Listed below are some of those adjustments made during the audit.
x Correction of Interest Payable for Proprietary Bonds
x Correction of FMV adjustments of investments
x Reclassification of ARPA revenue to unearned revenue
x Correction of Lease Liability outstanding as of June 30, 2023 x Correction of RDA capital assets account
Cause
The City has experienced staff turnover in key positions involved in the closing and financial reporting process.
Effect
The City’s trial balance was provided late, and City was not ready for the audit. This resulted in a significant delay to complete the audit.
Recommendation
We recommend that the City enhance its internal control over financial reporting and its closing procedures to ensure its books are thoroughly completed before the commencement of the audit.
City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
10 Section II – Current Year Findings, Continued
A. Financial Statement Audit, Continued
Management Response
The City will take the Auditor's recommendation into consideration and perform an analysis to determine where optimal improvements can be made to help mitigate this concern in the future. The City is in agreement that staff turnover contributed to the delinquency of the audit process, including the year-end closing preparations. In addition to the turnover of staff, the City has limited staff dedicated to the accounting functions of the department for the City. In order to meet the timely deadline requirements necessary for the annual audit process, it will be imperative to add additional finance personnel dedicated to general ledger, accounting and audit functions, or acquire these services through professional contract.
While the conditions were not optimal in completing the audit this year, City staff made every effort possible to continue moving the process forward with the available resources.
City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
11 Section II – Current Year Findings, Continued
A. Financial Statement Audit, Continued
2023-002: Capital Assets Roll Forward Schedule (Significant Deficiency) Criteria
The City is responsible for maintaining records of capital assets, creating, and updating roll forward schedules and reconciling the records frequently to the financial statements to ensure the accuracy of the accounting records.
Condition
During the performance of the audit, we noted the City’s capital assets records did not tie to the prior year audited financial statements specifically in classification of assets.
Cause
Roll Forward schedules are not prepared by the City. Frequent reconciliations of capital assets were not performed on the capital assets to ensure the accuracy of the presentation of the capital assets.
Effect
Detailed Asset listing classifications doesn’t tie to the prior year audited financial statements capital assets schedule.
Recommendation
We recommend that the City implement internal controls to ensure frequent reconciliation of the capital asset records to the financial statements.
Management Response
The City will take the Auditor's recommendation into consideration and perform an analysis to determine where optimal improvements can be made to help mitigate this concern in the future. The City is in agreement that staff turnover contributed to the delinquency of the audit process, including the year-end closing preparations. In addition to the turnover of staff, the City has limited staff dedicated to the accounting functions of the department for the City. In order to meet the timely deadline requirements necessary for the annual audit process, it will be imperative to add additional finance personnel dedicated to general ledger, accounting and audit functions, or acquire these services through professional contract.
While the conditions were not optimal in completing the audit this year, city staff made every effort possible to continue moving the process forward with the available resources.
City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
12 Section II – Current Year Findings, Continued
B. Federal Award Program Audit
No current year federal award program audit findings.
Section III- Prior Year Findings
A. Financial Statement Audit
No prior year financial statement findings.
B. Federal Award Program Audit
No prior year federal award program audit findings.
Atwater, California
Annual Financial Report
For the year ended June 30, 2023
Prepared by:
Finance Department
City of Atwater
Annual Financial Report
For the year ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal .................................................................................................................................................... iv List of City Officials ................................................................................................................................................... viii City of Atwater Organizational Chart ........................................................................................................................ x
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 ...................................................................................................................................................... 32 Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Position ................................................................................................................... 34 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 36 Reconciliation of Fund Basis Balance Sheet
to Government-wide Statement of Activities ............................................................................................. 38 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – General Fund ............................................................................ 39 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Public Safety Transaction & Use Special Revenue Fund ... 40 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – ARPA Grant Fund ................................................................... 41 Proprietary Funds
Statement of Net position – Proprietary Funds .......................................................................................... 43 Statement of Revenues, Expenses, and Changes in Fund Net position ................................................. 44 Statement of Cash Flows ................................................................................................................................ 45 Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................................ 47 Statement of Changes in Fiduciary Net Position........................................................................................ 48 Notes to the Basic Financial Statements ................................................................................................................ 51 i
City of Atwater
Annual Financial Report
For the year ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION, Continued
Required Supplementary Information
Schedule of the City’s Proportionate Share of the
Net Pension Liability and Related Ratios – Last 10 years ............................................................................... 94 Schedule of Pension Contributions – Last 10 Years ............................................................................................ 96 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years .................................... 98 Schedule of OPEB Contributions – Last 10 Years ............................................................................................... 99 Other Supplementary Information
Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds:
Combining Balance Sheet ................................................................................................................................... 103 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 104 Non-Major Special Revenue Funds:
Combining Balance Sheet ................................................................................................................................... 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 110 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Measure V Fund ............................................................................................................................................... 114 Police Grants Fund ........................................................................................................................................... 115 Gas Tax Fund .................................................................................................................................................... 116 Local Transportation Fund ............................................................................................................................. 117 Facility Impact Fee Fund ................................................................................................................................. 118 CDBG Program Income Fund ........................................................................................................................ 119 Home Investment Partnership Fund ............................................................................................................. 120 Housing Authority Fund ................................................................................................................................ 121 Narcotics Program Fund ................................................................................................................................. 122 Neighborhood Stabilization Fund ................................................................................................................. 123 Applegate Interchange Fund .......................................................................................................................... 124 Regional Surface Transportation Program Fund ......................................................................................... 125 Pension Rate Stabilization 115 Trust Fund ................................................................................................... 126 General Plan Update Grant Fund .................................................................................................................. 127 Combining Balance Sheet – Maintenance District Special Revenue Funds .................................................. 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Maintenance District Special Revenue Funds .............................................................. 136 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Maintenance District Special Revenue Funds ........................................................... 143 ii
City of Atwater
Annual Financial Report
For the year ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION, Continued
Internal Service Funds:
Combining Statement of Net Position .............................................................................................................. 177 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 178 Combining Statement of Cash Flows ............................................................................................................... 179 Custodial Funds:
Combining Statement of Fiduciary Net Position ........................................................................................... 181 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 182 Schedule of Debt Service Coverage ........................................................................................................................ 183 iii
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iv
v Page 99 of 730
vi
vii
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viii
City of Atwater
For the year ended June 30, 2023
List of City Officials
CITY COUNCIL
¾ Mike Nelson, Mayor
¾ Brian Raymond, Mayro Pro Term
¾ John Cale, Council Member
¾ Tyler BuƩon, Council Member
¾ Danny Ambriz, Council Member
CITY OFFICIALS
¾ Lori Waterman, City Manager
¾ Greg Thompson, Deputy City Manager/Community Development Manager ¾ Kory J. Billings, City Clerk
¾ Mark Borba, City Treasurer
¾ Frank Splendorio, City AƩorney
¾ JusƟn Vinson, Public Works Director
¾ Jana Sousa, HR Director
¾ Delilah Youmara, Finance Director
¾ Michael Salvador, Police Chief
ix
CITY OF ATWATER
ORGANIZATIONAL CHART
2023
Council Committees
Audit & Finance
Citizens Oversight for Public Safety Transaction and Use Tax Commission Electorate
City Treasurer
Mark Borba
City Council
Mike Nelson, 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 /
Community Developement
Manager
Greg Thompson
HR Manager
Jana Sousa
Fire
CAL Fire
Robert Ayuso
Police
Michael Salvador
City Administration /
City Clerk
Community Services Finance
-Recreation
City Attorney
Frank Splendorio
City Clerk
Kory J. Billings
x Page 104 of 730
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, 2023, 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, 2023, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons for the General Fund, Public Safety Transactions and Use Tax Fund and ARPA Grant Fund 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 94-99 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 2
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 July 2, 2024, 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 purpose of 3
To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California
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
July 2, 2024
4
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis
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, 2023. 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, 2023, totaled $109.6 million. Governmental activities the net position was $21.8 million, while the business-type activities net position was $87.8 million. i Total City revenues, including program and general revenues, and business-type activities were $54.9 million, while total expenses were $35.7 million. i Governmental program and general revenues were $28.9 million compared to governmental program expenses of $13.7 million.
i Program revenues from business-type activities were $25.9 million, while expenses for businesstype activities were $21.9 million. i The City’s total net capital asset balance for governmental activities was $24.4 million and $33.6 million for business-type activities.
Fund Highlights
i Net General Fund revenues and other financing sources (uses) exceeded expenditures by $3.2million as compared to the prior year when revenues and other financing sources (uses) exceeded expenditures by $5.6 million.
i At June 30, 2023, the General Fund has a positive fund balance of $15.6 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.
5
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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.
6
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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, 2023, the City’s major funds are as follows:
GOVERNMENTAL FUNDS:
i General Fund
i Public Safety Transactions and Use Tax Fund
i ARPA Grant Fund
PROPRIETARY FUNDS:
i Water Enterprise Fund
i Sewer Enterprise Fund
i Sanitation Enterprise Fund
7
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
For the fiscal year ended June 30, 2023, 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.
Fiduciary funds. The City maintains a private-purpose trust fund and custodial funds that are classified as fiduciary funds. The private-purpose trust fund the City maintains is the Successor Agency to the Atwater Redevelopment Agency (RDA) and the City serves as the custodian to the assets of the dissolved RDA and administers the retirement of enforceable obligations. The custodial funds the City maintains are related to assets held in employee benefit trust.
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 51–89 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 103–182 of this report. 8
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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 $109.6 million as of June 30, 2023. The Summary of net position as of June 30, 2022, and 2023 follows:
Overall, the total net position increased by $21.1 million. The total net position of governmental activities increased by $17.8 million and total net position for business-type activities increased by $3.3 million.
The total restricted net position increased by $13.9 million, and the unrestricted net position experienced an increase in deficit of $1.1 million over the previous year. 9
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business-type activities were $54.9 million for the fiscal year ended June 30, 2023. Significant revenues for the City for fiscal year 2022-23 were derived from charges for services 53%, sales and use tax 17%, operating/capital grants and contributions 6%, 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 for governmental activities decreased by $478K or 11% over last fiscal year. This is primarily due to decreases in revenue from Community Development Department activities. Charges for services related to business-type activities increased slightly by $550K or 4% due to sanitation rate increases.
2. Sales and Use Tax. Sales Tax revenue increased very slightly by $16,526 or .18% (just less than 2/10’s of a percent) over last fiscal year. The City is and will be experiencing a “flattening” of Sales and Use Tax revenue Post Covid and will experience a period of no growth in the next few fiscal years. This is primarily due to inflation and citizens are having to utilize more of their disposable income towards groceries, utilities, rents, and other nontaxable items.
3. Operating/Capital Grants and Contributions. Capital contributions represent 8% of overall total revenues for the City.
4. Property Taxes and Assessments. Property tax revenue increased by $583,846 or 12% over last fiscal year. This is due primarily to higher property values. 10
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2022, and 2023, follows:
Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Revenues:
Program revenues:
Charges for services $ 23,760,407 4,649,769 $ 28,410,176 $ 4,171,579 $ $ 28,960,539 24,788,960 $ Grants and contributions:
Operating 3,439,563 374,740 3,814,303 2,549,146 553,293 3,102,439 Capital 1,047,239 1,047,239 1,307,173 1,307,173 -
General revenues:
Property taxes
and assessments 6,104,885 6,104,885 - 6,688,731 6,688,731 - Transient occupancy taxes 76,224 76,224 - 43,921 - 43,921 Sales and use tax 9,187,635 9,187,635 - 9,204,161 9,204,161 - Franchise taxes 961,869 961,869 - 1,023,347 1,023,347 - Other taxes 2,360,721 2,360,721 - 1,935,430 1,935,430 - Intergovernmental 519,401 519,401 - 1,214,785 1,214,785 - Use of money and property (72,670) (1,399,056) (1,471,726) 627,063 652,877 1,279,940 Other 154,791 154,791 - 201,822 201,822 -
Sale of real property 300,000 300,000 - - - -
Total revenues 22,736,091 28,729,427 51,465,518 28,967,158 25,995,130 54,962,288 Expenses:
Governmental activities:
General government 6,976,469 6,976,469 - 3,088,191 3,088,191 Public safety - 11,447,544 11,447,544 6,867,369 6,867,369 Highways and streets 3,493,312 3,493,312 - 2,122,879 2,122,879 Urban redevelopment
and housing 1,146,702 1,146,702 - 647,257 647,257
Community services 770,751 770,751 - 940,277 940,277
Interest on long-term debt 19,430 19,430 - 119,819 119,819 Business-type activities:
Water 4,529,648 - 4,529,648 5,095,232 5,095,232
Sewer 12,295,830 - 12,295,830 12,657,347 12,657,347
Sanitation 4,130,522 - 4,130,522 4,181,081 4,181,081
Total expenses 20,956,000 23,854,208 44,810,208 13,785,792 21,933,660 35,719,452 Change in net position
before transfers 4,875,219 1,780,091 6,655,310 15,181,366 4,061,470 19,242,836 Transfers 632,352 (632,352) - 752,375 (752,375) -
Change in net position 5,507,571 1,147,739 6,655,310 15,933,741 3,309,095 19,242,836 2022 2023
Changes in Net Position
11
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Expenses
Governmental and business-type activity expenses of the City for the year totaled $35.7 million.
Governmental activity expenses totaled $13.7 million or 39% of total expenses. Business-type activities incurred $21.9 million or 61% of total expenses during the fiscal year. Public safety costs represented 49% 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, 2022, and 2023, are as follows:
Net cost of the City’s major programs can fluctuate greatly from one fiscal year to the next due to GASB’s standards associated with the reporting of pension expense in the City’s financial statements. The components of pension expense include many factors: service cost, interest on the total pension liability, changes in the net pension liability, employee contributions, and expected return on plan assets. When investment returns come in higher than expected, the City will experience a reduction in pension expense. Conversely, if returns on plan assets fall short of the expected return, the City will realize an increase in pension expense. The first situation occurred in FY 22/23, when CalPERS net return on plan assets came in higher than anticipated resulting in a reduction of pension expense for the City. 12
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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
Charges for services
$4,171,579
14.4%
Operating grants
$2,549,146
8.8%
Capital grants
$1,307,173
4.5%
Property taxes
$6,688,731
23.1%
Transient
occupancy taxes
$43,921
0.2%
Sales and use tax
$9,204,161
31.8%
Franchise fees
$1,023,347
3.5%
Other taxes
$1,935,430
6.7%
Intergovernmental
$1,214,784
4.2%
Use of money and
property
$627,063
2.2%
Other general
$201,822
0.7%
Revenues by Source - Governmental Activities 2023
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities, Continued
Revenues by source for the fiscal years ended June 30, 2022, and 2023, are as follows:
13
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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, 2022 and 2023 are as follows:
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
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
2023
14
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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, 2022, and 2023, are as follows:
Charges for
services,
23,760,4…
Operating Grants
and
Contributions,
374,740, 1.55%
Revenues by Source - Business-type Activities 2022
Charges for
services,
24,788,960,
97.82%
Operating Grants
and Contributions,
553,293, 2.18%
Revenues by Source - Business-type Activities 2023
15
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
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, 2023, the City’s governmental funds reported combined fund balances of $38.1 million. The increase is due mainly to departments not expending the approved appropriations contained within the adopted/amended budget.
The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2023, the General Fund had a fund balance of $15.6 million. The General Fund balance improved by $3.2 million from the prior fiscal year and is the fifth consecutive fiscal year with positive fund balance. The increase of $3.2 million was due to $1.6 million more revenue being received than estimated and $1.6 million of approved appropriations weren’t expended.
The Public Safety Transactions and Use Tax Fund is defined as a major fund of the City and had a fund balance of $1.5 million as of June 30, 2023. The Public Safety Transactions and Use Tax Fund balance improved by $400,000 from the prior year.
The ARPA Grant Fund is the final major fund of the City and had a fund balance of $38,000 as of June 30, 2023. The ARPA Grant Fund balance improved by $48,000 from the prior year as it closed June 30, 2022 with a negative fund balance of $10,000.
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 maintenance, as well as employee benefits fund. The City’s proprietary funds net position increased by $3.3 million for enterprise funds and increased by $104,333 for internal service funds in the fiscal year ended June 30, 2023. 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 an 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. 16
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, Continued General Fund Budgetary Highlights
General Fund actual revenues totaled $19.2 million which was 109.8 percent of the amended budget estimate. General Fund expenditures totaled $14.9 million or 90 percent of the approved amended budget. The General Fund balance increased by $3.2 million to a balance of $15.6 million.
CAPITAL ASSETS
The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2023 amounted to $58.1 million. This investment in capital assets includes land, construction in progress, costs for buildings and improvements, infrastructure, roads, and equipment.
The June 30, 2023, total balance reflects addition to construction in progress of $7.1 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 49 for significant accounting policies and Note 3 on pages 66 and 67 for other capital asset information.
17
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
LONG-TERM LIABILITIES
At June 30, 2023, the City had $69.1 million in debt outstanding consisting of compensated absences, lease obligations and revenue bonds.
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 67.
NEXT YEARS BUDGET AND THE ECONOMY
The budget for Fiscal Year 2023-24 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 2023-24 adopted budget approves appropriations at $95.0 million. The budget provides funding for staffing of 111 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 fund balance for five 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 does not contain plans for new debt. In addition, the estimated budget allows for maintaining funds for General Fund reserves. As with many cities, the City of Atwater is experiencing the effects of increased inflation with impacts on operating expenses in the delivery of municipal services. In addition, primary sources of General Fund revenue, such as sales tax, have slowed in recent quarters.
The City of Atwater is located in Merced County, which lies in the great Central Valley of California. Prior to the COVID-19 pandemic, the City was experiencing increases in economic activity, property and sales tax revenue, and an increased interest in development activity. Property and sales tax revenue maintained favorable levels during the pandemic; however, sales tax in Governmental Business-type
Activities Activities Total
Compensated absences
Lease Obligations (includes lease purchases) -
2017A Wastewater Revenue Refunding Bonds -
2018A Wastewater Revenue Refunding Bonds -
Unamortized bond premium -
Unamortized underwriting discount - -
Total $ $ $
2023
18
City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
particular has noted a recent decline and will likely impact the estimating of future budgets. The City continues to pursue viable economic development activities that will position the City advantageously for future revenue growth.
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.
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20
BASIC
FINANCIAL STATEMENTS
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22
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
23
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24
City of Atwater
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 45,835,201 $ 52,435,012 $ 98,270,213 Restricted cash and investments - 1,035,567 1,035,567
Receivables:
Accounts 4,510,886 3,820,446 8,331,332
Prepaid items 111,348 2,888 114,236
Total current assets 50,457,435 57,293,913 107,751,348
Noncurrent assets:
Investment in land held for resale 159,364 - 159,364
Capital assets:
Nondepreciable 9,411,610 33,242,545 42,654,155
Depreciable 74,147,484 124,839,061 198,986,545
Lease assets 249,376 - 249,376
Less accumulated amortization (143,430) - (143,430)
Less accumulated depreciation (58,678,592) (56,568,082) (115,246,674) Total capital assets 24,986,448 101,513,524 126,499,972 Total noncurrent assets 25,145,812 101,513,524 126,659,336 Total assets 75,603,247 158,807,437 234,410,684
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 12,490,161 - 12,490,161
Deferred outflows - OPEB 3,532,562 - 3,532,562
Total deferred outflows of resources 16,022,723 - 16,022,723
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 3,541,366 1,753,734 5,295,100 Interest payable - 449,842 449,842
Deposits payable 309,300 525,002 834,302
Other liabilities 37,291 136,935 174,226
Unearned revenue 4,547,097 56,938 4,604,035
Compensated absences - current portion 69,793 18,277 88,070 Lease liabilities - current portion 70,622 - 70,622
Long-term debt - current portion 212,621 1,755,000 1,967,621 Total current liabilities 8,788,090 4,695,728 13,483,818 Noncurrent liabilities:
Compensated absences 597,608 116,504 714,112
Net pension liability 28,802,661 - 28,802,661
Net OPEB liability 19,916,628 - 19,916,628
Lease liabilities 48,363 - 48,363
Long-term debt 184,403 66,119,345 66,303,748
Total noncurrent liabilities 49,549,663 66,235,849 115,785,512 Total liabilities 58,337,753 70,931,577 129,269,330
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 3,787,630 - 3,787,630 Deferred inflows of resources - OPEB 7,692,169 - 7,692,169 Total deferred inflows of resources 11,479,799 - 11,479,799
NET POSITION
Net investment in capital assets 24,470,439 33,639,179 58,109,618 Restricted 22,603,301 1,035,567 23,638,868
Unrestricted (25,265,322) 53,201,114 27,935,792
Total net position $ 87,875,860 21,808,418 $ 109,684,278 $ Primary Government
See accompanying Notes to Basic Financial Statements
25
City of Atwater
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:
General government 3,088,191 $ 3,199,394 $ 5,004 $ - $ 3,204,398 $ Public safety 6,842,033 165,222 1,763,536 14,353 1,943,111 Highways and streets 2,122,879 646,594 780,606 1,243,596 2,670,796 Urban redevelopment and housing 647,257 - - - -
Community services 940,277 160,369 - 49,224 209,593
Interest on long-term debt 145,155 - - - -
Total governmental activities 13,785,792 4,171,579 2,549,146 1,307,173 8,027,898 Business-type Activities:
Water 5,095,232 8,212,323 103,531 - 8,315,854
Sewer 12,657,347 11,911,022 449,762 - 12,360,784
Sanitation 4,181,081 4,665,615 - - 4,665,615
Total Business-Type activities 21,933,660 24,788,960 553,293 - 25,342,253 Total primary government $ 28,960,539 35,719,452 $ 3,102,439 $ 1,307,173 $ 33,370,151 $ 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
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
26
Governmental Business-Type
Activities Activities Total
$ 116,207 $ 116,207 - $
(4,898,922) (4,898,922) -
547,917 547,917 -
(647,257) (647,257) -
(730,684) (730,684) -
(145,155) (145,155) -
(5,757,894) (5,757,894) -
3,220,622 - 3,220,622
(296,563) - (296,563)
484,534 - 484,534
3,408,593 - 3,408,593
(5,757,894) 3,408,593 (2,349,301)
6,688,731 - 6,688,731
43,921 - 43,921
9,204,161 - 9,204,161
1,023,347 - 1,023,347
1,935,430 - 1,935,430
18,895,590 18,895,590 -
1,214,785 1,214,785 -
627,063 652,877 1,279,940
201,822 201,822 -
- - -
2,043,670 652,877 2,696,547
752,375 (752,375) -
2,796,045 (99,498) 2,696,547
15,933,741 3,309,095 19,242,836
5,874,677 84,566,765 90,441,442
$ 21,808,418 $ 87,875,860 $ 109,684,278
and Changes in Net Position
Net (Expense) Revenue
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28
FUND
FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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31
City of Atwater
Balance Sheet
Governmental Funds
June 30, 2023
Public Safety
Transaction & ARPA
General Use Special Tax Grant
Fund Revenue Fund Fund
ASSETS
Cash and investments 16,621,262 $ 537,352 $ $ 4,815,565 Receivables:
Taxes 673,871 - -
Interest 73,706 2,321 21,665
Intergovernmental 6,672 - -
Other receivable 1,173,644 1,041,271 -
Prepaid items 28,677 - -
Investment in land held for resale - - -
Total assets $ 18,577,832 $ 1,580,944 $ 4,837,230
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 2,088,940 $ 3,825 $ 243,564
Accrued liabilities 268,235 70,383 -
Deposits payable 197,634 - -
Other liabilities - - 8,999
Unearned revenue - 4,547,097 -
Total liabilities 2,554,809 74,208 4,799,660
Deferred Inflows of Resources
Unavailable revenues 330,919 - -
Total deferred inflows of resources 330,919 - -
Fund Balances:
Nonspendable
Prepaid items 28,677 - -
Investment in land held for resale - - -
Restricted 1,506,736 - 37,570
Assigned - - -
Unassigned 15,663,427 - -
Total fund balances 15,692,104 1,506,736 37,570
Total liabilities, deferred inflows of resources and fund balances $ 18,577,832 $ 1,580,944 $ 4,837,230
Major Funds
See accompanying Notes to Basic Financial Statements
32
Nonmajor Total
Governmental Governmental
Funds Funds
$ 42,543,592 20,569,413 $
682,232 8,361
188,797 91,105
844,989 838,317
2,632,685 417,770
28,989 312
159,364 159,364
$ 47,211,954 22,215,948 $
$ 2,742,089 405,760 $
359,459 20,841
309,300 111,666
37,291 28,292
4,547,097 -
7,995,236 566,559
1,046,177 715,258
1,046,177 715,258
28,971 294
159,364 159,364
22,603,301 21,058,995
108,704 108,704
15,270,201 (393,226)
20,934,131 38,170,541
$ 47,211,954 22,215,948 $
33
Total Fund Balances - Total Governmental Funds $ 38,170,541 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 $ 9,411,610 $ 9,411,610 - $
Depreciable, net 15,574,838 (818,636) 14,756,202
Total capital assets $ 24,986,448 $ (818,636) 24,167,812 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 Government-Wide Statement of Net Position. 3,762,033
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. 1,046,177 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 12,490,161 Deferred outflows of resources related to OPEB 3,532,562 Deferred inflows of resources related to pension (3,787,630) Deferred inflows of resources related to OPEB (7,692,169) 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 $ (69,793) $ 2,778 $ (67,015) Compensated absences - due in more than one year (597,608) 18,852 (578,756) Net pension liability (28,802,661) - (28,802,661)
Net OPEB liability (19,916,628) - (19,916,628)
Lease liability (48,363) - (48,363)
Long-term lease liability - due in more than one year (70,622) - (70,622) Long-term debt - due in more than one year (184,403) - (184,403) Total long-term liabilities $ 21,630 (49,902,699) $ (49,881,069) Net Position of Governmental Activities $ 21,808,418
City of Atwater
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Public Safety
Transaction & ARPA
General Use Special Tax Grant
Fund Revenue Fund
REVENUES:
Taxes and assessments 9,911,473 $ 3,462,052 $ $ -
Licenses and permits 372,475 - -
Fines and forfeitures 86,880 - -
Intergovernmental 4,916,665 - 1,129,165
Use of money and property 306,235 9,073 39,967
Charges for services 3,555,535 - -
Other revenues 101,866 - -
Total revenues 19,251,129 3,471,125 1,169,132
EXPENDITURES:
Current:
General government 4,672,966 210 166,044
Public safety 7,574,516 2,451,380 -
Highways and streets 1,764,958 - -
Urban redevelopment and housing ---
Community services 902,941 247,738 12,869
Capital outlay - 290,096 941,851
Debt service
Principal 64,383 219,997 -
Interest and fiscal charges - 14,486 -
Total expenditures 14,979,764 3,223,907 1,120,764
REVENUES OVER (UNDER)
EXPENDITURES 4,271,365 247,218 48,368
OTHER FINANCING SOURCES (USES):
Transfers in 202,375 - -
Transfers out (1,212,761) - -
Proceeds from capital lease - 124,998 -
Total other financing sources (uses) (1,010,386) 124,998 - Net change in fund balances 3,260,979 372,216 48,368
FUND BALANCES:
Beginning of year 12,431,125 1,134,520 (10,798)
End of year $ 15,692,104 $ 1,506,736 $ 37,570
Major Funds
See accompanying Notes to Basic Financial Statements
36
Nonmajor Total
Governmental Governmental
Funds Funds
$ 15,236,404 1,862,879 $
- 372,475
- 86,880
2,530,153 8,575,983
241,773 597,048
133,827 3,689,362
69,377 171,243
4,838,009 28,729,395
86,520 4,925,740
32 10,025,928
1,177,449 2,942,407
944,857 944,857
27 1,163,575
2,801,603 4,033,550
- 284,380
14,486 -
5,010,488 24,334,923
(172,479) 4,394,472
1,612,761 1,815,136
(50,000) (1,262,761)
- 124,998
1,562,761 677,373
1,390,282 5,071,845
19,543,849 33,098,696
$ 38,170,541 20,934,131 $
37
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, 2023
Net Change in Fund Balances - Total Governmental Funds $ 5,071,845 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. 4,365,829
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. (1,579,954)
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. 117,759
Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long-term 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 284,380
Issuance of Debt (124,998)
Long-term debt adjustments (5,671)
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. 6,189,928 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. 1,250,882 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. 259,408
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. 104,333
Change in Net Position of Governmental Activities $ 15,933,741 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:
See accompanying Notes to Basic Financial Statements.
38
City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 8,501,647 $ 8,501,647 $ 9,911,473 $ 1,409,826 $ Licenses and permits 337,780 337,780 372,475 34,695
Fines and forfeitures 120,300 120,300 86,880 (33,420)
Intergovernmental 4,155,571 4,155,571 4,916,665 761,094 Use of money and property 166,135 166,135 306,235 140,100 Charges for services 4,083,494 4,083,494 3,555,535 (527,959) Other revenues 163,320 163,320 101,866 (61,454)
Total revenues 17,528,247 17,528,247 19,251,129 1,722,882 EXPENDITURES:
Current:
General government 5,074,598 5,074,598 4,672,966 401,632 Public safety 8,225,181 8,225,181 7,574,516 650,665
Public works 2,230,066 2,230,066 1,764,958 465,108
redevelopment and housing ----
Community services 1,112,006 1,112,006 902,941 209,065
Debt Service
Principal - - 64,383 (64,383)
Total expenditures 16,641,851 16,641,851 14,979,764 1,726,470
REVENUES OVER (UNDER)
EXPENDITURES 886,396 886,396 4,271,365 3,449,352
OTHER FINANCING SOURCES (USES):
Transfers in 202,375 202,375 202,375 -
Transfers out (736,775) (736,775) (1,212,761) (475,986) Total other financing sources (uses) (534,400) (534,400) (1,010,386) (475,986) Net change in fund balances $ 351,996 351,996 $ 3,260,979 2,973,366 $ FUND BALANCES:
Beginning of year 12,431,125
End of year $ 15,692,104
Budget Amounts
See accompanying Notes to Basic Financial Statements.
39
City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Transaction & Use Special Revenue Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 2,110,725 $ 2,110,725 $ 3,462,052 $ 1,351,327 $ Use of money and property 1,000 1,000 9,073 8,073
Total revenues 2,111,725 2,111,725 3,471,125 1,359,400
EXPENDITURES:
Current:
General government - - 210 (210)
Public safety 2,604,336 2,604,336 2,451,380 152,956
Non-departamental - - 247,738 (247,738)
Capital outlay:
General capital outlay 307,000 307,000 290,096 16,904
Debt service
Principal 217,916 217,916 219,997 (2,081)
Total expenditures 3,129,252 3,129,252 3,223,907 (78,088)
REVENUES OVER (UNDER)
EXPENDITURES (1,017,527) (1,017,527) 247,218 1,281,312
OTHER FINANCING SOURCES (USES):
Proceeds from leases - - 124,998 124,998
Total other financing sources (uses) - - 124,998 124,998 Net change in fund balances $ (1,017,527) (1,017,527) $ 372,216 1,406,310 $ FUND BALANCES:
Beginning of year 1,134,520
End of year $ 1,506,736
Budget Amounts
See accompanying Notes to Basic Financial Statements.
40
City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ARPA Grant
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ - $ - $ 1,129,165 $ 1,129,165
Fines, forfeitures and assessments 4,000 4,000 - (4,000) Use of money and property - - 39,967 39,967
Total revenues 4,000 4,000 1,169,132 1,165,132
EXPENDITURES:
Current:
General government 278,784 278,784 166,044 112,740
Community development - - 12,869 (12,869)
Non-departamental 10,000 10,000 - 10,000
Capital outlay:
General capital outlay 2,076,577 2,076,577 941,851 1,134,726 Total expenditures 2,365,361 2,365,361 1,120,764 1,244,597
REVENUES OVER (UNDER)
EXPENDITURES (2,361,361) (2,361,361) 48,368 2,409,729
Net change in fund balances $ (2,361,361) (2,361,361) $ 48,368 2,409,729 $ FUND BALANCES:
Beginning of year (10,798)
End of year $ 37,570
Budget Amounts
See accompanying Notes to Basic Financial Statements.
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42
City of Atwater
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
ASSETS
Current Assets:
Cash and investments 31,002,476 $ 18,445,663 $ 2,986,873 $ 52,435,012 $ 3,291,609 $ Restricted cash and investments - 1,035,567 - 1,035,567 - Receivables:
Accounts 1,241,772 1,525,383 818,541 3,585,696 19,413
Interest 139,159 82,325 13,266 234,750 11,464
Prepaid expenses 2,888 - - 2,888 82,359
Total current assets 32,386,295 21,088,938 3,818,680 57,293,913 3,404,845 Noncurrent:
Capital assets:
Nondepreciable 29,628,718 3,528,483 85,344 33,242,545 - Depreciable 21,826,563 102,445,827 566,671 124,839,061 2,747,299 Less accumulated depreciation (17,297,049) (38,797,650) (473,383) (56,568,082) (1,928,663) Net capital assets 34,158,232 67,176,660 178,632 101,513,524 818,636 Total noncurrent assets 34,158,232 67,176,660 178,632 101,513,524 818,636 Total assets 66,544,527 88,265,598 3,997,312 158,807,437 4,223,481
LIABILITIES
Current liabilities:
Accounts payable 1,084,533 604,356 18,424 1,707,313 430,328 Accrued payroll 15,963 30,458 46,421 - 9,490
Interest payable 449,842 - 449,842 - -
Deposits payable 525,002 - 525,002 - -
Other liabilities 89,303 47,632 136,935 - -
Unearned revenue 56,938 - 56,938 - -
Compensated absences - current 7,012 11,265 18,277 - 2,778 Long-term debt - current 1,755,000 - 1,755,000 - -
Total current liabilities 1,721,813 2,955,491 18,424 4,695,728 442,596 Noncurrent liabilities:
Compensated absences 34,814 81,690 116,504 - 18,852
Long-term debt 66,119,345 - 66,119,345 - -
Total noncurrent liabilities 34,814 66,201,035 66,235,849 - 18,852 Total liabilities 1,756,627 69,156,526 18,424 70,931,577 461,448
NET POSITION
Net investment in capital assets 34,158,232 (697,685) 178,632 33,639,179 818,636 Restricted for capital projects 1,035,567 - 1,035,567 - - Unrestricted 30,629,668 18,771,190 3,800,256 53,201,114 2,943,397 Total net position $ 64,787,900 $ 19,109,072 $ 3,978,888 $ 87,875,860 $ 3,762,033 Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
43
City of Atwater
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
OPERATING REVENUES:
Charges for services $ 11,911,022 8,212,323 $ 4,665,615 $ 24,788,960 $ 4,435,844 $ Other operating revenue 103,531 449,762 - 553,293 83,472 Total operating revenues 8,315,854 12,360,784 4,665,615 25,342,253 4,519,316 OPERATING EXPENSES:
Salaries and benefits 761,400 1,441,015 (897) 2,201,518 513,208 Contractual services 561,401 2,373,761 3,282,116 6,217,278 503,339 Materials and supplies 365,879 183,161 32,400 581,440 5,557 Repairs and maintenance - 13,528 - 13,528 655,273
Utilities 1,305,734 1,013,245 - 2,318,979 149,405
Insurance - - - - 2,385,166
Other operating costs 1,904,512 1,814,244 849,376 4,568,132 278,645 Depreciation 196,306 3,334,913 18,086 3,549,305 152,745 Total operating expenses 5,095,232 10,173,867 4,181,081 19,450,180 4,643,338 Operating income (loss) 3,220,622 2,186,917 484,534 5,892,073 (124,022) NONOPERATING REVENUES (EXPENSES):
Intergovernmental revenues (expenses) - - - - (1,660)
Interest revenue 332,931 288,667 31,279 652,877 30,015
Interest expense - (2,483,480) - (2,483,480) -
Total nonoperating revenues (expenses) 332,931 (2,194,813) 31,279 (1,830,603) 28,355 Income before contributions and transfers 3,553,553 (7,896) 515,813 4,061,470 (95,667) CONTRIBUTIONS AND TRANSFERS:
Transfers in - - - - 300,000
Transfers out (452,375) (300,000) - (752,375) (100,000) Total contributions and transfers (452,375) (300,000) - (752,375) 200,000 Change in net position 3,101,178 (307,896) 515,813 3,309,095 104,333 NET POSITION:
Beginning of year 61,686,722 19,416,968 3,463,075 84,566,765 3,657,700 End of year $64,787,900 $ 3,978,888 19,109,072 $ $ 3,762,033 87,875,860 $ Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
44
City of Atwater
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users $ 7,993,863 $ 12,268,708 $ 4,464,332 $ 24,726,903 $ 4,492,336 Cash paid to suppliers for goods and services (4,566,815) (5,772,921) (4,147,615) (14,487,351) (3,700,133) Cash paid to employees for services (750,740) (1,397,960) (2,023) (2,150,723) (488,381) Net cash provided by (used in) operating activities 2,676,308 5,097,827 314,694 8,088,829 303,822 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers in - - - - 300,000
Cash transfers out (452,375) (300,000) (752,375) - (100,000) Subsidy from grants - - - - (1,660)
Net cash provided by (used in)
noncapital financing activities (452,375) (300,000) (752,375) - 198,340 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Note principal payments (1,680,000) - (1,680,000) - -
Interest paid on capital debt (2,776,456) - (2,776,456) - - Purchase of capital assets (2,465,565) (2,229,492) (4,695,057) - (62,265) Net cash provided by (used in)
capital and related financing activities (2,465,565) (6,685,948) (9,151,513) - (62,265) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 229,136 229,176 21,092 479,404 30,015 Net cash provided by (used in) investing activities 229,136 229,176 21,092 479,404 30,015 Net cash flows (12,496) (1,658,945) 335,786 (1,335,655) 469,912 CASH AND INVESTMENTS - Beginning of year 31,014,972 21,140,175 2,651,087 54,806,234 2,821,697 CASH AND INVESTMENTS - End of year $ 31,002,476 $ 19,481,230 $ 2,986,873 $ 53,470,579 $ 3,291,609
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ 3,220,622 $ 2,186,917 $ 484,534 $ 5,892,073 (124,022) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 196,306 3,334,913 18,086 3,549,305 152,745 (Increase) decrease in accounts receivable (320,106) (93,079) (202,286) (615,471) (20,968) (Increase) decrease in prepaid expense (1,885) 1,003 1,003 121 (6,012) Increase (decrease) in accounts payable 196,709 (372,722) 16,277 (159,736) 293,250 Increase (decrease) in accrued payroll 1,539 9,526 (2,023) 9,042 - Increase (decrease) in accrued liabilities (652,352) (2,260) (654,612) - 3,199 Increase (decrease) in deposits payable 26,354 - - 26,354 - Increase (decrease) in compensated absences 9,121 33,529 (897) 41,753 5,630 Net cash provided by (used in) operating activities $ 2,676,308 $ 5,097,827 $ 314,694 $ 8,088,829 $ 303,822 Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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46
City of Atwater
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Current assets:
Cash and investments $ 132,763 542,662 $
Interest receivable 5,191 580
Loans/notes receivable 111,437 -
Total current assets 659,290 133,343
Land 706,256
Property, plant and equipment 8,670,932 -
Less accumulated depreciation (6,754,734) -
Property, plant and equipment 2,622,454 -
Total assets 3,281,744 133,343
LIABILITIES
Current liabilities:
Accounts payable 3,365 -
Due to others -1,943
Due within one year 956,000 -
Total current liabilities 959,365 1,943
Long-term liabilities:
Due after one year 1,984,000 -
Total long-term liabilities 1,984,000 -
Total liabilities 2,943,365 1,943
NET POSITION
Held in trust for dissolution of RDA 338,379 -
Held for the CFD Bond holders -131,400
Total Net Position $ 338,379 $ 131,400
See accompanying Notes to Basic Financial Statements.
47
City of Atwater
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS:
Property taxes $ 1,008,710 $ -
Investment income 12,245 1,460
Other additions 1,132,998 -
Total additions 2,153,953 1,460
DEDUCTIONS:
Depreciation expense 322,689 -
Urban redevelopment and housing 1,183,074 40
Interest expense 100,740 -
Transfers Out - -
Total deductions 40 1,606,503
Change in net position 1,420 547,450
NET POSITION:
Beginning of year (209,071) 129,980
End of year 338,379 $ 131,400 $
See accompanying Notes to Basic Financial Statements.
48
NOTES TO BASIC
FINANCIAL STATEMENTS
49
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50
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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.
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
51
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
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.
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. 52
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
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 Public Safety Transaction & Use Tax Special Revenue Fund – accounts for Measure H and Measure B, a voter approved sales tax measure, to provide enhanced public safety costs. x ARPA Grant Fund-accounts for ARPA money received from Federal government.
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.
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. 53
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
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
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. 54
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Receivables, Continued
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.
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 acquisitions value for noninfrastructure 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:
55
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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.
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:
56
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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
57
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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.
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. 58
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Revenues, Expenditures, and Expenses, Continued
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, 2023. 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.
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.
59
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. New Accounting Pronouncements
¾ In 2023, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
¾ GASB Statement No. 91, Conduit Debt Obligations – The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this statement did not apply to the City for the current fiscal year. ¾ GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs).
As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 96, Subscription-based Information Technology Arrangements – This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this statement did not apply to the City for the current fiscal year.
2. CASH AND INVESTMENTS
Cash, cash equivalents, and investments are reported in the accompanying basic financial statements as follows:
60
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
2. CASH AND INVESTMENTS, Continued
Summary of Cash and Investments
At June 30, 2023, the City’s pooled cash and investments consist of the following:
Deposits
The carrying amount of the City’s cash deposit was $13,350,501 at June 30, 2023.
Bank balances before reconciling items were a positive amount of $13,838,619 at June 30, 2023. 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.
61
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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, 2023, 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.
62
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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, 2023, 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, 2023, the City had $62,106,591 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 0.984828499 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. 63
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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, 2023 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. 64
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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, 2023:
65
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
3. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2023, was as follows:
Depreciation expense for capital assets was charged to functions as follows:
66
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
3. CAPITAL ASSETS, Continued
Business-type capital asset activity for the year ended June 30, 2023, was as follows:
Depreciation expense for capital assets was charged to functions as follows:
4. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023:
67
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
4. LONG-TERM LIABILITIES, Continued
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2023:
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. In 2019, City of Atwater entered into agreement with Sun Ridge systems for lease RMIS system and US Bank equipment finance for purchase of radios. The table below shows the lease-Purchase liability related to radios, fire truck and RMIS system.
In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee for financing the acquisition of police bodycam equipment. The remaining liability as of June 30,2023 amounted to $150,172. The bodycams have 5-year estimated useful life. s
68
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
4. LONG-TERM LIABILITIES, Continued
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, 2023, the value of the lease liability is $20,855. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $944. The net value of the right to use the asset as of June 30, 2023 of $18,487 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 #2045-239MBF) valued at $46,033. As of June 30, 2023, the value of the lease liability is $9,236. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $1,198. The net value of the right to use the asset as of June 30, 2023 of $7,338 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, 2023, the value of the lease liability is $5,776. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $667. The net value of the right to use the asset as of June 30, 2023 of $4,689 is included in the intangible assets on the capital assets activities table found in Note 3 above. 69
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
4. LONG-TERM LIABILITIES, Continued
Lease liabilities, Continued
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, 2023, the value of the lease liability is $5,800. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $669. The net value of the right to use the asset as of June 30, 2023 of $4,709 is included in the intangible assets on the capital assets activities table found in Note 3 above.
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, 2023, the value of the lease liability is $13,097. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $919. The net value of the right to use the asset as of June 30, 2023 of $8,460 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, 2023, the value of the lease liability is $21,290. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $931. The net value of the right to use the asset as of June 30, 2023 of $18,776 is included in the intangible assets on the capital assets activities table found in Note 3 above. 70
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
4. LONG-TERM LIABILITIES, Continued
Lease liabilities, Continued
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, 2023, the value of the lease liability is $21,419. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $936. The net value of the right to use the asset as of June 30, 2023 of $18,759 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 #2050-252ZQB) valued at $36,778. As of June 30, 2023, the value of the lease liability is $21,512. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $940. The net value of the right to use the asset as of June 30, 2023 of s$18,747 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. 71
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
4. LONG-TERM LIABILITIES, Continued
2017A Wastewater Revenue Refunding Bonds (Sewer), Continued The annual debt service requirements for the 2017A Bonds are as follow:
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, 2023, 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:
72
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
5. COMPENSATED ABSENCES
The City’s compensated absences payable activity for the year ended June 30, 2023 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. 73
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
6. NET POSITION/ FUND BALANCES, Continued
Fund Balance
Nonspendable and Restricted fund balance consisted of the following at June 30, 2023:
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.
74
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
6. NET POSITION/ FUND BALANCES, Continued
Fund Balance, Continued
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.
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, 2023:
75
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
7. INTERFUND TRANSACTIONS, Continued
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.
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, 2023, the most recent available:
76
City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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. 77