Agenda packet — Cotati City Council, February 13, 2024 (part 1 of 2)

AGENDA

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE

FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, February 13, 2024
6:00 PM REGULAR MEETING
The Cotati City Council welcomes you to its meetings that are generally scheduled for the 2nd and 4th Tuesday of every month. Your interest and participation are encouraged and appreciated.

City Council meeting agendas, minutes and recordings are posted on the City’s Meeting Portal at www.cotaticity.org. For questions about the agenda or to receive the City Council agenda by e-mail, contact the Deputy City Clerk at [email protected] or 707-665-3622.

Cotati City Council Meetings will be conducted in person in the Council Chamber. To guarantee your ability to participate, you must attend the meeting in person. As a courtesy to the public, the City allows citizens the opportunity to view and offer public comments virtually through Zoom Online video conferencing platform. Technical difficulties may occur that make the Zoom platform unavailable. If Zoom is unavailable, the meeting will continue. Participants considering using Zoom should consider attending in person, if they desire to ensure their ability to view the meeting and offer public comments.

Subject to the above disclaimer, Zoom Online video conferencing is available to watch or listen in the following ways:

1. Using the following online livestream meeting portal link: https://cotaticity.primegov.com/public/portal

2. Cable T.V. Broadcast, local channel 28
Members of the public can participate in the meeting online by clicking the link below:
https://us02web.zoom.us/j/82512469838?pwd=ZTZsajN1ckprSC9EVFZoY0tEOFdMQT09 If you do not have the ability to join online, but would like to participate in the meeting, you can call into the meeting using your telephone, by dialing one of the following numbers and entering the meeting credentials:

Webinar ID: 825 1246 9838 Passcode: 803604
+1 (669) 900-6833 or +1 (346) 248-7799 or +1 (253) 215-8782 or +1 (301) 715-8592 or +1 (312) 626-6799 or +1 (929) 436-2866 Attendees may join the meeting any time after 5:45pm. Attendees will be muted until they are called upon for Public Comment. To make a public comment, use the “raise hand” icon on your smart device or desktop computer, or dial *9 if you are using just your telephone. Please listen carefully for the Mayor or Deputy City Clerk to address you by name (or phone number) and for the audible Zoom notification that you have been unmuted. Once you begin your public comment, your three minutes will begin.

If you would prefer to submit your public comment in writing, please email your comments to [email protected]. If you are commenting on a specific agenda item or items, please state the agenda item number(s) in the subject line of the email. All comments received via email will be provided to the City Council or Planning Commission in writing and included as part of the record of the meeting.

Notice is hereby given that Council may discuss and/or take action on any or all of the items listed on this agenda.

Any writings or documents provided to a majority of the Cotati City Council regarding any item on this agenda will be made available for inspection in the online Meeting Portal at www.cotaticity.org and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.

Disabled Accommodation: Upon request, this agenda will be made available in appropriate formats to persons with disabilities as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the Deputy City Clerk at (707) 665-3622 at least 48 hours in advance of the meeting.

Rules of Decorum: To avoid distraction, the following meeting etiquette shall be enforced. • Silence electronic devices, including cell phones.

Cotati City Council Packet February 13, 2024

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• Audience members are advised to keep conversations to a minimum or conduct them outside the building. • Photographs or video recordings using tri-pods or other means that would be distracting are to be taken only from the designated media area. • The Presiding Officer shall request that the audience withhold expressions of support or opposition for speakers in the interest of time and to encourage the full expression of differing views. (City Council Policy 2023-01 III.B.1.) Public Comment (Action items): Public comment on any one agenda item where the City Council will be taking some action is limited to no more than three (3) minutes per person. Action items are typically designated on the agenda title.

Public Comment (Non-Action items): Public comment on non- action agenda items shall be received during the designated portion of the agenda.

Comments shall be limited to no more than three (3) minutes for all non-action agenda items.

Waiver Warning: If you challenge decisions/direction of the City Council of the City of Cotati in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Cotati at, or prior to, the public hearing(s).

City Council meetings are conducted according to City Council Policy 2023-01: City Council Rules. This policy available for inspection in the online Meeting Portal at www.cotaticity.org and in the City Manager’s office located at 201 West Sierra Avenue, Cotati, California, during the City’s posted business hours.

Those wishing to address the Council are asked to complete a speaker card and give it to the City Clerk. When you are called, step to the podium and state your name and address for the record. Persons wishing to address the Council are not required to identify themselves or complete a speaker card; (Gov’t. Code § 54953.3); however, this information assists the Mayor by ensuring that all persons wishing to address the Council are recognized and it assists the City Clerk in preparing the City Council meeting minutes.

1. CALL TO ORDER

2. 3.

ROLL CALL

LAND ACKNOWLEDGEMENT
The City of Cotati recognizes that we’re on the ancestral lands of the Coastal Miwok, who are the original caretakers of this area. We respectfully acknowledge the Indigenous peoples who have been stewarding and maintaining a relationship on this land as knowledge keepers for millennia. This acknowledgement does not take the place of authentic relationships with Indigenous communities but serves as a gesture of respect to the land we are on.

4. PLEDGE OF ALLEGIANCE

5. APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
A. COTATI CITY COUNCIL – STRATEGIC PLANNING MEETING – APR 4, 2023 B. COTATI CITY COUNCIL – STRATEGIC PLANNING MEETING – APR 18, 2023 C. COTATI CITY COUNCIL – REGULAR MEETING – JAN 23, 2024

6. ANNOUNCEMENTS
A. Meeting Orientation for New Attendees/Viewers. In conformance with the Brown Act and the adopted City Council Rules, the meeting agenda includes items labeled as Action Items, where the City Council may consider the item. If the City Council considers the item, citizens will be afforded the opportunity to provide comments relevant to the item being discussed. The meeting agenda also includes a Citizens Business item, which is the designated place on the agenda where citizens have the right to say whatever they wish. However, the Brown Act prohibits the City Council from taking action or considering any item that is not this agenda, to ensure that other members of the community who wish to provide comment are notified in advance through a properly noticed meeting agenda.

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C. Citizens interested in receiving City of Cotati community alerts via text or email are encouraged to sign up with CivicReady, by signing up on the City’s website, www.cotaticity.org, under the “How do I” link at the top of the homepage.

D. Like always, we love to hear from you, so please feel free to contact the City at 707-792-4600 or [email protected].

If you have a non-emergency issue after normal business hours, you can contact us at 707-792-4611 and of course if you have an emergency, please contact 9-1-1. Continue to look for updates on the City's website and social media channels available on Facebook, Instagram, and CivicReady.

7. PROCLAMATIONS
A. PROCLAMING FEBRURARY 2024 AS BLACK HISTORY MONTH

8. PRESENTATIONS
A. INTRODUCTION OF THE NEW POLICE CHIEF FOR THE CITY OF COTATI An introduction and swearing in of the new Cotati Police Chief.

9. APPROVAL OF FINAL AGENDA (ACTION)
This item will only be opened for public comment if the City Council proposes to take any action to modify this agenda.

10. CITIZEN BUSINESS AND PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS Any member of the public wishing to speak to the Council on any item(s) listed on the Consent Calendar or any matter(s) not listed on the agenda that are within the subject matter jurisdiction of the Council may do so at this time. Pursuant to the Brown Act, the Council is not allowed to consider issues or take action on any item not listed on the agenda during this period. Pursuant to City Council Policy 2023-01, comments of any member of the public are normally restricted to a total of three (3) minutes in length per person for matters not on the agenda and a total of three (3) minutes per person in length for any and all items on the Consent Calendar. The Mayor may extend the time limit for a reasonable time where a disability accommodation has been requested. To facilitate public comment, the Deputy City Clerk will alert speakers when there are thirty seconds remaining.

11. CONSENT CALENDAR (ACTION)
A. 2024 ROLLIN' ROSIES CAR CLUB CAR SHOW FUNDRAISER
It is recommended that the City Council of the City of Cotati adopt a resolution approving the 2nd Annual Rollin’ Rosies Car Club Car Show Fundraiser in La Plaza Park.

B. PROFESSIONAL SERVICES AGREEMENT WITH M GROUP FOR CEQA REVIEW FOR COTATI VILLAGE 2 PROJECT
It is recommended that the City Council of the City of Cotati approve by resolution a professional services agreement with M Group for CEQA review of the Cotati Village 2 project, and authorize the City Manager to execute a professional services agreement and any needed amendments up to an amount not to exceed $69,500.

C. ANNUAL CANCELLATION OF CITY COUNCIL MEETINGS AND HOLIDAY

CLOSURE OF CITY HALL
It is recommended that the City Council adopt a motion to cancel the regular City Council meetings of July 23 and December 24, 2024, and authorize the annual holiday closure of City Hall.

D. ACCEPTANCE OF THE DOWNTOWN CIVIC CENTER CONNECTIVITY AND

SAFETY PROJECT
It is recommended the City of Cotati City Council adopt a resolution accepting the Downtown Cotati City Council Packet February 13, 2024

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Civic Center Connectivity and Safety Project, authorizing the City Clerk to file the Notice of Completion with the County Clerk, and authorizing the release of retention after the 35-day noticing period with no protests.

E. ACCEPTANCE OF THE 2024 STREET IMPROVEMENTS PROJECT
It is recommended the City of Cotati City Council adopt a resolution accepting the 2024 Street Improvements Project, authorizing the City Clerk to file the Notice of Completion with the County Clerk, and authorizing the release of retention after the 35-day noticing period with no protests.

F. MAIN CLEANING AND WATER TREATMENT SERVICES FOR THE WATER

DISTRIBUTION SYSTEM
It is recommended the City of Cotati City Council by motion approve a Standard Service Agreement with No-Des, Inc., to complete water main flushing services.

G. RECEIVE AND FILE THE FISCAL YEAR 2022/23 AUDITED ANNUAL

COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE CITY OF COTATI It is recommended that the City Council receive and file the Fiscal Year 2022/23 audited Annual Comprehensive Financial Report (ACFR) and related audit letters.

H. ACCEPTANCE OF KESSING RANCH PUBLIC IMPROVEMENTS
It is recommended the City of Cotati City Council adopt a resolution accepting the Kessing Ranch Subdivision Public Improvements and authorizing the City Clerk to record the notice of completion and to release any Subdivision Improvement Agreement Securities upon the passage of 35 days.

12. DIRECTION ON FUTURE AGENDA ITEMS

13. REGULAR AGENDA (ACTION)
A. RECOGNITION OF CARL SCHOLLMANN
It is recommended that the City Council adopt a resolution recognizing Carl Schollmann’s extraordinary contributions to the City and community of Cotati.

B. PRESENTATION OF COMMUNITY POLLING RESULTS
It is recommended that the City Council receive and discuss the community polling results.

C. 2024 VERONDA-FALLETTI RANCH WORKPLAN, LICENSE AGREEEMENT

AMENDMENT AND MOU TO ESTABLISH A PILOT COMPOST HUB IN COTATI It is recommended that the City Council review and approve, by motion: 1. The proposed 2024 workplans for Farmster and Sandy Loam; and 2. Authorize the City Manager to execute the amended license agreement substantially in the form attached as approved by the City Attorney; and 3. Authorize the City Manager to execute a Memorandum of Understanding with Zero Waste Sonoma to run a pilot Compost Hub in Cotati substantially in the form attached as approved by the City Attorney.

D. APPROVAL OF A DESIGN CONTRACT FOR THE VERONDA FALLETTI RANCH BARNS
It is recommended that the City Council adopt a motion authorizing the City Manager to execute an agreement with ArchiLOGIX for the schematic design of the Veronda Falletti Ranch barn and brooder house.

Cotati City Council Packet February 13, 2024

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E. CONSIDERATION OF A RESOLUTION TO DETERMINE 120 E. COTATI AVENUE

AS EXEMPT SURPLUS LAND AND DIRECTING STAFF TO MOVE FORWARD

WITH ISSUANCE OF AN REQUEST FOR QUALIFICATIONS FROM DEVELOPERS

INTERESTED IN DEVELOPING THE PROPERTY
It is recommended by the Community Development Department that the City Council adopt a resolution determining that the three parcels located at 120 E Cotati Avenue are exempt surplus land under the Surplus Land Act under Government Code 54221(f)(1)(F), adopt a motion authorizing the issuance of a separate notice that the property is exempt surplus land under Government Code 54221(f)(1)(A), and provide direction on the draft Request for Qualifications (RFQ) for developers interested in developing the property and authorize staff is issue the RFQ once finalized.

F. RECEIVE AND FILE THE FISCAL YEAR 2022/23 POPULAR ANNUAL FINANCIAL

REPORT (PAFR)
It is recommended the City Council receive and file the Fiscal Year 2022/23 Popular Annual Financial Report (PAFR).

14. CITY MANAGER'S REPORT

15. CITY COUNCIL MEMBER REPORTS

16. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS

17. CLOSED SESSION
A. PUBLIC EMPLOYEE APPOINTMENT TITLE: CITY ATTORNEY
B. CONFERENCE WITH CITY LABOR NEGOTIATORS (GOVERNMENT CODE SECTION 54957.6) CITY DESIGNATED REPRESENTATIVE: CITY MANAGER OR DESIGNEE. EMPLOYEE ORGANIZATION: COTATI POLICE OFFICERS

ASSOCIATION (CPOA) AND COTATI POLICE MANAGEMENT ASSOCIATION (CPMA)

18. REPORT OUT OF CLOSED SESSION

19. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
A. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

20. ADJOURNMENT
Certification of Posting of the Notice: I declare under penalty of perjury that I am employed by the City of Cotati and that I posted this notice on the City’s website, bulletin boards of City Hall, Veterans’ Memorial Building and the SMART Train Depot, on or before February 9, 2024. /s/ Kevin Patterson, Deputy City Clerk

MINUTES

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR

AGENCY TO THE FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday April 4, 2023
6:30 PM STRATEGIC PLANNING SPECIAL MEETING
I. CALL TO ORDER
Mayor Harvey called the meeting to order at 6:00pm.

Attendee Name Title Status
Susan Harvey Mayor Present
Laura Sparks Vice Mayor Present
Ben Ford Councilmember Present
Sylvia Lemus Councilmember Present
Kay Rivers Councilmember Present
II. PUBLIC COMMENT
No public comment.

III. APPROVAL OF MINUTES (ACTION)

1. COTATI CITY COUNCIL - STRATEGIC PLANNING SPECIAL MEETING - MAR 7, 2023 6:00 PM
RESULT: ACCEPTED AS AMENDED [4 TO 0]
MOVER: Ben Ford, Councilmember
SECONDER: Laura Sparks, Vice Mayor
AYES: Harvey, Sparks, Ford, Lemus
ABSTAIN: Rivers
IV. STUDY SESSION

1. PRESENTATION OF THE 2023-2033 GENERAL FUND LONG RANGE

FINANCIAL FORECAST
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

No public comment.
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Council directed staff to create a framework plan for spending fund balance in the event of a severe recession, including metrics that would trigger potential reductions to City services/staff.

2. DISCUSS REVISED CITY COUNCIL GOALS FOR FISCAL YEAR 2023-2024 Presentation by City Manager Damien O'Bid.

Councilmembers comment.

No public comment.

3. BUDGET STUDY SESSION FOR GENERAL FUND FOR FISCAL YEAR 2023/24
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

No public comment.

Councilmembers indicated their priority projects for City Departments for FY 23/24:

Community Development:

Bike and Ped Master Plan
SB 9 objective design criteria
Digital permit management
Santero Way master plan
Housing administration program
City Manager:

Explore placing a repeal of Roundabout Ban on ballot
Investigate potential of a library in Cotati
Update Public Safety messaging procedures
Economic Development
Veronda-Falletti Ranch programming
Emergency operations systems planning
Investigate options for civilian police oversight
Police
Community outreach
Increased data in Police Annual Report
Public Works
Creating maintenance plan for bicycle/walking paths
Bicycle/Pedestrian safety improvements
V. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
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1. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
VI. ADJOURNMENT
Mayor Harvey adjourned the meeting at 9:36pm.
/s/ Kevin Patterson, Deputy City Clerk
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MINUTES

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR

AGENCY TO THE FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday April 18, 2023
6:00 PM STRATEGIC PLANNING SPECIAL MEETING
I. CALL TO ORDER
Mayor Harvey called the meeting to order at 6:00pm
Attendee Name Title Status
Susan Harvey Mayor Present
Laura Sparks Vice Mayor Present
Ben Ford Councilmember Present
Sylvia Lemus Councilmember Present
Kay Rivers Councilmember Present
II. PUBLIC COMMENT
No public comment.

III. STUDY SESSION

1. BUDGET STUDY SESSION FOR SPECIAL REVENUES AND INTERNAL SERVICE FUNDS (FISCAL YEAR 2023/24)
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

2. BUDGET STUDY SESSION FOR ENTERPRISE (WATER, SEWER) FUNDS AND CAPITAL FUNDS FOR FISCAL YEAR 2023/24
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

IV. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

1. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
V. ADJOURNMENT
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Mayor Harvey adjourned the meeting at 6:59pm.
/s/ Kevin Patterson, Deputy City Clerk
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MINUTES

JOINT MEETING OF THE COTATI CITY COUNCIL AND THE SUCCESSOR AGENCY TO

THE FORMER COTATI COMMUNITY REDEVELOPMENT AGENCY
City Council Chamber, City Hall 201 W. Sierra Avenue
Tuesday, January 23, 2024
6:00 PM REGULAR MEETING

1. CALL TO ORDER
Mayor Sparks called the meeting to order at 6:00pm.

ROLL CALL
Attendee Name Title Status
Laura Sparks Mayor Present
Ben Ford Vice Mayor Present
Susan Harvey Councilmember Absent
Sylvia Lemus Councilmember Present
Kathleen Rivers Councilmember Present
Staff Present: City Manager Damien O’Bid, City Attorney John Bakker, Deputy City Clerk Kevin Patterson, Director of Administrative Services Angela Courter, Director of Community Development Noah Housh, Director of Public Works/City Engineer Craig Scott, Lieutenant Paul Goodin, Senior Planner JP Harries

3. 4.

LAND ACKNOWLEDGEMENT

PLEDGE OF ALLEGIANCE

5. APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING OF ALL

RESOLUTIONS AND ORDINANCES INTRODUCED AND/OR ADOPTED UNDER THIS

AGENDA (ACTION)
RESULT: Approve [4 TO 0]
MOVER: Sylvia Lemus, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Lemus, Rivers
NAYS: None
ABSENT: Harvey
Vice Mayor Ford requested that the Council titles on the minutes for January 9, 2024, on item 10A, be updated to the correct titles.

6. ANNOUNCEMENTS

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A. Meeting Orientation for New Attendees/Viewers. In conformance with the Brown Act and the adopted City Council Rules, the meeting agenda includes items labeled as Action Items, where the City Council may consider the item. If the City Council considers the item, citizens will be afforded the opportunity to provide comments relevant to the item being discussed. The meeting agenda also includes a Citizens Business item, which is the designated place on the agenda where citizens have the right to say whatever they wish. However, the Brown Act prohibits the City Council from taking action or considering any item that is not this agenda, to ensure that other members of the community who wish to provide comment are notified in advance through a properly noticed meeting agenda..

B. Measure S supports police services, a variety of recreation programs for all ages, and the maintenance of our streets, parks, and public buildings. See details on the web at cotaticity.org C. Citizens interested in receiving City of Cotati community alerts via text or email are encouraged to sign up with CivicReady, by signing up on the City’s website, www.cotaticity.org, under the “How do I” link at the top of the homepage.

D. Like always, we love to hear from you, so please feel free to contact the City at 707-792-4600 or [email protected].

7. APPROVAL OF FINAL AGENDA (ACTION)
No changes.

8. CITIZEN BUSINESS AND PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS Any member of the public wishing to speak to the Council on any item(s) listed on the Consent Calendar or any matter(s) not listed on the agenda that are within the subject matter jurisdiction of the Council may do so at this time. Pursuant to the Brown Act, the Council is not allowed to consider issues or take action on any item not listed on the agenda during this period. Pursuant to City Council Policy 2023-01, comments of any member of the public are normally restricted to a total of three (3) minutes in length per person for matters not on the agenda and a total of three (3) minutes per person in length for any and all items on the Consent Calendar. The Mayor may extend the time limit for a reasonable time where a disability accommodation has been requested. To facilitate public comment, the Clerk will alert speakers when there are thirty seconds remaining.

9. CONSENT CALENDAR (ACTION)
A. RESOLUTION APPOINTING THE ENGINEER OF WORK FOR PREPARING THE COTATI LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT FOR FY 24-25 B. AWARD OF THE CYPRESS AVENUE SEWER REPAIR PROJECT
C. APPOINTMENT OF JOINT REPRESENTATIVES FROM COTATI AND ROHNERT

PARK TO THE HOMELESS COALITION BOARD OF DIRECTORS
D. PROCLAMATION SCHEDULE FOR 2024
RESULT: Adopt [4 TO 0]
MOVER: Sylvia Lemus, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Lemus, Rivers
NAYS: None
ABSENT: Harvey

10. DIRECTION OF FUTURE AGENDA ITEMS
None.
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11. PUBLIC HEARINGS (ACTION)
A. CONSIDERATION OF A RESOLUTION APPROVING ENTITLEMENTS TO ALLOW CONSTRUCTION OF A 35-LOT SINGLE-FAMILY SUBDIVISION AT 8841 OLD

REDWOOD HIGHWAY AND FINDING THE PROJECT CONSISTENT WITH THE

COTATI GENERAL PLAN ENVIRONMENTAL IMPACT REPORT AND EXEMPT FROM FUTHER REVIEW UNDER CEQA GUIDELINES SECTION 15183 (PA# 16-17) RESULT: Adopt [4 TO 0]
MOVER: Sylvia Lemus, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Lemus, Rivers
NAYS: None
ABSENT: Harvey
Presentation by Senior Planner JP Harries.

Councilmembers comment.

Public Comment:

Brian Flahaven

12. REGULAR AGENDA (ACTION)
A. MID-YEAR BUDGET REVIEW FOR FISCAL YEAR 2023-2024
RESULT: Adopt [4 TO 0]
MOVER: Sylvia Lemus, Councilmember
SECONDER: Ben Ford, Vice Mayor
AYES: Sparks, Ford, Lemus, Rivers
NAYS: None
ABSENT: Harvey
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

No public comment.

B. PRESENTATION OF THE 2023-2033 GENERAL FUND LONG RANGE FINANCIAL

FORECAST
Presentation by Director of Administrative Services Angela Courter.

Councilmembers comment.

Public Comment:

Laurie Alderman of Cotati 13 of 458
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C. DISCUSSION ON CITY'S PUBLIC MEETING AUDIO-VISUAL SYSTEM Presentation by City Manager Damien O’Bid.

Councilmembers comment.

Public Comment:

Laurie Alderman of Cotati
Council directed Staff to explore options for upgrading the Audio/Video system in the Council Chambers.

13. CITY MANAGER'S REPORT
Report by City Manager Damien O’Bid.

14. CITY COUNCIL MEMBER REPORTS
Councilmembers report out on local and regional events and meetings.

15. PUBLIC COMMENT ON NON-ACTION AGENDA ITEMS
Public Comment:

Laurie Alderman of Cotati

16. A.

17. 18.

CLOSED SESSION

CONFERENCE WITH CITY LABOR NEGOTIATORS (GOVERNMENT CODE SECTION 54957.6) CITY DESIGNATED REPRESENTATIVE: CITY MANAGER OR DESIGNEE. EMPLOYEE ORGANIZATION: COTATI POLICE OFFICERS

ASSOCIATION (CPOA) AND COTATI POLICE MANAGEMENT ASSOCIATION (CPMA)
Mayor Sparks adjourned to closed session at 8:19pm.

REPORT OUT OF CLOSED SESSION
Council returned from closed session at 9:54pm. Mayor Sparks announced there was nothing to report out of closed session.

INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED
A. INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED

19. ADJOURNMENT
Mayor Sparks adjourned the meeting at 9:55pm.
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/s/ Kevin Patterson, Deputy City Clerk
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PROCLAMATION

OF THE CITY COUNCIL OF THE CITY OF COTATI
DECLARING THE MONTH OF FEBRUARY 2024 BLACK HISTORY MONTH WHEREAS, National African American History Month first originated as Negro History Week in 1926 as part of an initiative by writer and educator Dr. Carter G. Woodson to recognize the heritage and achievements of African Americans and to enhance knowledge about African American history; and
WHEREAS, the national theme for 2024 is “African Americans and the arts.” This year’s theme examines the varied history and life of African American arts and artisans and celebrate African American art which is infused with African, Caribbean, and the Black American lived experiences; and
WHEREAS, in the fields of visual and performing arts, literature, fashion, folklore, language, film, music, architecture, culinary and other forms of cultural expression, the African American influence has greatly influenced American culture; and WHEREAS, African American artists have used art to preserve history and community memory as well as for empowerment. Artistic and cultural movements such as the Black Arts, Black Renaissance, and hip-hop, have been led by people of African descent and set the standard for popular trends around the world; and
WHEREAS, in celebrating the entire history of African Americans and the arts, the community places into the national spotlight the richness of the past and present with an eye towards what the rest of the twenty-first century will bring.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of Cotati proclaims the month of February as Black History Month in Cotati and calls on the community to study African American history, arts and culture, by visiting sites such as asalh.org (Association for the Study of African American Life and History), to attend local Black History Month events, and to acknowledge the value African American community members add to the vibrancy and culture of our city.

Approved:______________________________
Mayor
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Agenda Staff Report
Item type: PRESENTATIONS
To: City Council
Subject: INTRODUCTION OF THE NEW POLICE CHIEF FOR THE

CITY OF COTATI
Date: February 13, 2024
Written by: Damien O'Bid, City Manager
Recommendation
An introduction and swearing in of Chief Simmons, the new Cotati Police Chief. No action will be taken
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Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: 2024 ROLLIN' ROSIES CAR CLUB CAR SHOW FUNDRAISER Date: February 13, 2024
Written by: Ashley Wilson, Recreation Manager
Recommendation
It is recommended that the City Council of the City of Cotati adopt a resolution approving the 2nd Annual Rollin’ Rosies Car Club Car Show Fundraiser in La Plaza Park.

Background
The Rollin’ Rosies Car Club is an all-female car club based in Sonoma County. They are a 501c3 nonprofit organization supporting mental health awareness and suicide prevention in the community. Given their success last year, they are proposing to host their large fundraiser event in La Plaza Park again this year on Saturday May 11, 2024.

Analysis/Discussion
Rollin’ Rosies Car Clubs has requested the following: 1) exclusive use of La Plaza Park; 2) food truck and vendor sales of food and beverages; 3) live, amplified entertainment; 4) alcoholic beverage sales; 5) street closures of La Plaza between West Sierra Ave and Old Redwood Highway; 6) parking lot closure of the public parking lot on the corner of La Plaza Street and West Sierra Ave.

The event is a “Poker Run” fundraiser event, which begins in Healdsburg and travels to four other stops, will end in La Plaza Park, where they will have live music, food, and drink vendors. Classic cars will be parked on La Plaza Street between Old Redwood Highway and West Sierra Avenue, as well as in the public parking lot adjacent to the park on West Sierra Avenue.
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This event is family friendly and free to the public to attend but there will be a fee charged to participants of the “Poker Run” portion of the event. The event will feature music and vendors between 2:00pm-6:00pm. Rollin’ Rosies Car Club is requesting exclusive use of the park, closed street/parking lot, and bandstand from 12:00pm-7:00pm to allow for setup, breakdown, and cleanup. They will remain in the park until 8:00pm for cleanup but the street and parking lot can reopen by 7:00pm. The event at La Plaza Park will be free of charge to attend. The event will include vendors and food trucks selling food, beverages, and merchandise. Alcoholic beverages will be sold in association with the festival.

Rollin’ Rosies Car Club has reviewed the City’s insurance requirements and has indicated that they will provide adequate insurance. A Condition of Approval has been included which requires proof of insurance be supplied to the City before the event.

A Condition of Approval has been included which requires a California Department of Alcohol and Beverage Control approved temporary permit to allow for the sale of alcohol to be supplied to the City before the events.

Financial Considerations
Rollin’ Rosies Car Club has requested fee waivers for their event. Financial considerations for the City would be a 50% fee waiver per the City Park Use and Special Event Policy since they are a registered nonprofit organization.

In accordance with the Park Use and Special Event Policy, fees will be assessed as follows:
$26 – Special Event Application Fee
$365.50 – Small Street Closure Fee
$30 – Restroom Cleaning Fee
$250 – Large Event Non-Resident Permit Fee
TOTAL FEE: $671.50 ($1343 prior to 50% fee waiver)
Special Event Refundable Security Deposit - $500
TOTAL FEES COLLECTED (including refundable deposit): $1,171.50 Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
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RESOLUTION NO.
2024 ROLLIN' ROSIES CAR CLUB CAR SHOW FUNDRAISER RESOLUTION WHEREAS, the Rollin’ Rosies Car Club submitted an application to the City for the Car Show Fundraiser on August 28, 2023; and
WHEREAS, it will be necessary to conform to certain conditions as described in “Exhibit A,” attached hereto, to facilitate this event; and WHEREAS, the City Council finds that this event is part of a comprehensive economic development strategy by the City in that it will increase visitation to the City, promote the Cotati community and result in increased sales tax revenues; and WHEREAS, the City Council further finds that the health, safety, and welfare of the citizens of the City of Cotati will not be jeopardized by the approval of this event; and WHEREAS, the application for these events is attached as Exhibit B; and WHEREAS, in accordance with the adopted Park Use policy, groups with an IRS nonprofit designation, or other governmental organizations, can request a 50% discount in the permit fees if there are no admission fees associated with the planned event; and WHEREAS, the action of approving a Car Show Fundraiser event does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Cotati as follows:

Section 1. Findings. The above recitals are declared to be true and correct and are incorporated herein as findings of the City Council.

Section 2. Approval of Conditions. The City Council hereby approves the conditions of approval for these events, attached as Exhibit A.

Section 3. Approval of Fee Waivers for the Rollin Rosies Car Club. The 50% fee waivers (per the City Park Use Policy), as described in the accompanying Staff Report, is hereby approved to facilitate these events.

Section 4. Effective Date of this Resolution. This Resolution shall become effective immediately.

Section 5. Severability. Each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The City Council of the City of Cotati hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase and other portion thereof, irrespective of the fact that one or 20 of 458
more section, subsection, clause, sentence, phrase or other portion may be held invalid or unconstitutional.

IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on February 13, 2024, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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EXHIBIT A

CONDITIONS OF APPROVAL

1. The applicant is granted exclusive use of La Plaza Park from Saturday, May 11th, 2024, at 12:00 p.m. through 8:00 p.m. for the event scheduled from 2:00 p.m. to 6:00 p.m. This approval includes amplified live entertainment.

2. The applicant shall submit a deposit of $500 within 30 days of approval of this event.

3. Applicant shall provide the City with proof of insurance for all events and vendors, as required, to the satisfaction of the City, prior to the event.

4. Applicant shall provide the City with a map of the event, specifically where vehicles will be parked for the car show, no later than 7 days prior to the event.

5. Applicant shall obtain a Daily License from the Department of Alcoholic Beverage Control (ABC). The City authorizes the sale and consumption of beer and wine and margaritas only; a copy of the license, as well as evidence of responsible beverage service training, shall be provided to the City prior to the event date.

6. Applicant shall notify all neighboring businesses and residents of the event and street closures, no later than 14 days prior to the event.

7. The applicant shall obtain the required permits and follow all regulations from the Sonoma County Environmental Health Department, and shall ensure each food vendor complies with Health Department requirements.

8. The applicant shall ensure that all vendors follow Cotati Municipal Code 8.20.030 (Prohibited food service ware and products), which bans the selling or serving of food ware that contains polystyrene foam or PFAS.

9. The applicant shall comply with all local, state, and federal laws regarding trash, recycling, and composting collection and sorting.

10. The applicant shall ensure the public facilities (park, parking spaces, and streets) are cleaned completely and returned to pre-event condition within 2 hours of event end time.

11. The event shall be carried out as described in the written descriptions submitted by the applicant and in compliance with these Conditions of Approval.

12. The applicant shall contact the Rancho Adobe Fire Protection District and comply with any permit requirements of the District.
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: PROFESSIONAL SERVICES AGREEMENT WITH M GROUP
FOR CEQA REVIEW FOR COTATI VILLAGE 2 PROJECT
Date: February 13, 2024
Written by: Autumn Buss, Associate Planner
Recommendation
It is recommended that the City Council of the City of Cotati approve by resolution a professional services agreement with M Group for CEQA review of the Cotati Village 2 project, and authorize the City Manager to execute a professional services agreement and any needed amendments up to an amount not to exceed $69,500.

Background
The Cotati Village 2 project proposes 126 residential units and a 2,250-square foot commercial building at 7515 Alder Avenue. The project requires Design Review approval, a Density Bonus, and a Tree Removal Permit from the City. In addition, environmental review per the California Environmental Quality Act (CEQA) is required.

Analysis/Discussion
In November 2023, the Community Development Department issued a request for proposals for CEQA review for the Cotati Village 2 project. Seven consulting firms submitted proposals in response, including detailed scopes of work, budgets, and qualifications. After evaluating the proposals, staff determined that M Group is highly qualified and submitted the lowest cost proposal ($69,500) for the required CEQA review.

The City will use its standard Professional Services Agreement (PSA) for these services.

The CEQA review process will commence shortly after execution of the PSA, and is expected to 27 of 458
conclude in May 2024. The Cotati Village 2 project is expected to be presented to the Planning Commission and to the City Council for approvals in June or July 2024.

Financial Considerations
The proposal from M Group is $69,500. The review of private development projects such as Cotati Village 2 is conducted on a cost-recovery basis, which means that all expenses incurred by the City, including CEQA review, are paid by the project applicant. Therefore, there is no financial impact to the City for this action.

Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
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RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING A

PROFESSIONAL SERVICES AGREEMENT WITH M GROUP TO CONDUCT CEQA REVIEW FOR THE COTATI VILLAE 2 PROJECT AND AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT AND ANY NEEDED AMENDMENTS UP TO AN AMOUNT NOT TO EXCEED $69,500 WHEREAS, the City has received a proposal for Cotati Village 2, a new development project (the “Project”) including 126 residential units and a 2,250-square foot commercial building, at 7515 Alder Avenue; and
WHEREAS, the City’s review of the proposed Project includes environmental review under the California Environmental Quality Act (CEQA); and WHEREAS, in November 2023, the City released a Request for Proposals for the needed CEQA review services, and received seven proposals from qualified consulting firms; and
WHEREAS, the proposal from M Group, the scope of work and cost proposal for which are attached to this resolution, proposed the lowest cost ($69,500) for the needed CEQA review services; and
WHEREAS, the City uses a cost-recovery system for review of private development projects, and therefore no cost will be incurred by the City for the Project’s CEQA review as all associated costs will be borne by the Project applicant; and WHEREAS, this action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.

NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Cotati hereby

1. Approves entering a Professional Services Agreement with M Group for CEQA review of the Cotati Village 2 project, and

2. Authorizes the City Manager, or designee, to execute the subject agreement and any needed amendments up to $69,500.

IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the February 13, 2024 by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:________________________________
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Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:

Proposed Scope of Work
Cost Proposal
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3. SCOPE OF WORK & SCHEDULE

SCOPE OF WORK
The following describes M-Group’s scope of work to complete a 15183 consistency analysis for the proposed CV2 Project:

TASK 1: PROJECT MANAGEMENT + KICK-OFF MEETING
Our team will be available throughout the environmental review process to correspond with city staff, and/or the applicant team (as appropriate), gather information, and address any concerns. Heather Gurewitz will serve as the Project Manager and primary point of contact for the City. She will provide routine updates on progress and oversee coordination of the environmental team. This task includes one kick-off meeting with City staff to finalize the scope, schedule, and budget. This task also includes routine and ongoing check-ins, progress updates, coordination, and general correspondence over the course of the project.

Task 1 Deliverables: Kick-off meeting detailing finalized project scope, schedule, and budget; kick-off meeting summary memo; bi-weekly status updates (via email or conference call) to keep the City informed of project progress.

TASK 2: BACKGROUND RESEARCH
M-Group will conduct a full review of all available information on the project site and vicinity including a records search of relevant documents, the history and past uses of the site, and applicable regulations. M-Group will provide recommendations to the City for notifying environmental agencies, any referrals, and support with the AB 52 consultation process.

Task 2 Deliverable: Memorandum outlining additional information or data needed to fill in identified gaps, if applicable.

TASK 3: PROJECT DESCRIPTION
M-Group will prepare a CEQA-compliant project description and coordinate with the City to confirm adequate scope and detail. The project description will describe the proposed project and include background and site history information, environmental and regulatory conditions, location graphics, and other pertinent project details. Prior to proceeding with the environmental analysis, M-Group will secure confirmation that the project description has been prepared to the City’s satisfaction and fully reflects the proposed project.

Task 3 Deliverable: Electronic version of the Administrative Draft Project Description including supporting graphics.
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SCOPE OF WORK & SCHEDULE
TASK 4: TECHNICAL STUDIES

4.1 Technical Studies Review and Recommendations (M-GROUP) M-Group will thoroughly review studies submitted by the applicant team. We will notify the City and applicant of any additional data needs or clarification necessary to ensure that all technical studies are prepared utilizing appropriate modeling, methodology, and industry standards. M-Group will prepare a memo summarizing the technical studies and identifying any recommended revisions or clarifications. M-Group will incorporate results of the Technical Studies into the environmental document.

Task 4.1 Deliverables: A memo summarizing the results of the technical studies and any additional information or clarification required.

4.2 Air Quality, GHG Analysis, and Health Risk (ILLINGWORTH & RODKIN) Illingworth & Rodkin (I&R) will conduct air quality, GHG, and health risk modeling in accordance with BAAQMD recommended methodology for construction and operation. The analysis will rely on the California Emissions Estimator Model (CalEEMod) and the Environmental Protection Agency (EPA) AERMOD model. Results of the analysis will be integrated into the environmental document. I&R’s proposal is included in full in Appendix C.

Task 4.2 Deliverable: Air Quality and GHG Analysis prepared by I&R.

Task 4.3 Acoustical Analysis (ILLINGWORTH & RODKIN)
Illingworth & Rodkin will perform an Acoustical Analysis to document ambient noise conditions and provide recommendation to ensure that noise levels achieve 45 dBA for all habitable rooms and 60 dBA in private and shared recreational spaces. As part of the analysis Illingworth & Rodkin will measure ambient noise levels, calculate future noise levels, assess noise compatibility, and develop noise control recommendations. I&R’s proposal is included in full in Appendix C.

Task 4.3 Deliverable: Acoustical Analysis prepared by Illingworth & Rodkin.

Task 4.4 Cultural Resources (EVANS & DE SHAZO)
Evans & De Shazo (EDS) will evaluate the project site for Cultural and Tribal Cultural Resources relative to the 2016 Cultural Resources Report prepared by Origer & Associates. A review of site conditions and resources, as well as the regulatory context will be provided. An update to date database records search and literature review will be conducted. EDS will prepare a letter report summarizing results and recommendations related to cultural and tribal cultural resources.

EDS has also included two optional tasks in their scope of work, depending on the needs and outcome of the initial investigation and tribal consultation process. As an optional task 4.4a, EDS will be available to support the City with the AB 52 consultation process, as needed. Optional task 4.4b provides for an extended phase 1 (XPI) archaeological study, which includes test pit excavation, and report out on findings. EDS’ proposal is included in full in Appendix C.
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SCOPE OF WORK & SCHEDULE
Task 4.4 Deliverable: Cultural Resources Study Report prepared by Evans & De Shazo.

Task 4.5 Focused Traffic Study (W-TRANS)
W-Trans will prepare a Focused Traffic Study for the proposed project. Traffic counts will be conducted for a 24 hour period on Alder Avenue and turning movements collected during peak am and pm hours. Recommendations regarding sight distances for ingress and egress at the site’s driveways will be provided, as well as an evaluation of adequacy for pedestrian, bicycle and transit facilities. The Project’s Vehicle Miles Traveled (VMT) generation will be calculated based on adopted standards. The draft Focused Traffic Study will be presented to the City for review. Comments received will be addressed prior to finalizing. W-Trans’ proposal is included in full in Appendix C.

Task 4.5 Deliverable: Focused Traffic Study prepared by W-Trans.

TASK 5: CEQA ANALYSIS
M-Group will prepare an Initial Study using a modified CEQA Guidelines Appendix G Environmental Checklist. The Initial Study will characterize the existing physical and regulatory setting, identify potential impacts, and provide documentation to support a CEQA determination.

For purposes of this proposal, it is presumed that M-Group will conclude that a General Plan EIR Consistency Review under CEQA Guidelines 15183 is the appropriate environmental document. M-Group will complete the analysis and provide an administrative draft to the City for review and comment. M-Group will address City comments on the administrative draft and prepare a public document for the City’s use. M-Group will post materials to the State Clearinghouse.

Task 5 Deliverables: Administrative Draft and Public Initial Study/15183 (electronic); and Submittal to SCH.

TASK 6: PUBLIC HEARINGS + CEQA NOTICES
Attendance at up to two public meetings is assumed as part of this scope of work. Additional public meetings will be charged on an hourly basis as needed.

M-Group will draft CEQA notices for the project and will post CEQA documents to the State Clearinghouse. It is assumed that the City will carry out all local noticing and filing requirements including with the County Clerk.

Task 6 Deliverables: Draft CEQA Notices and Posting to State Clearinghouse. 33 of 458
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SCOPE OF WORK & SCHEDULE

SCHEDULE
We have dedicated sufficient staff resources to complete the environmental review as expeditiously as possible. At project kickoff, specific target dates will be established in close coordination with City staff to identify calendar days for deliverables and reasonable response times from the City.

Task Target Date

1. Project Management + Kick-off Meeting
• Project Management and Team Coordination
• Kick-off Meeting/ Confirm Scope
• Project Coordination Meetings
• Ongoing
• Week 1
• Bi-weekly Remote

2. Background Research
• Complete Background Research
• Noticing and Referrals
• Week 2
• Week 2

3. Project Description
• Admin Draft Project Description to City
• City to Provide Comments
• Week 4
• Week 5

4. Technical Studies
• Summary Memo + Data Needs
• Air Quality + GHG
• Noise Study
• Traffic Study
• Cultural Resources
• Week 4
• Week 4
• Week 4
• Week 5
• Week 4

5. CEQA Analysis
• Administrative Draft Initial Study/15183
• Public Initial Study/15183
• Week 8
• Week 10

6. Public Hearings + Notices
• Public Hearing #1
• Public Hearing # 2
• NOE
• TBD
• TBD
• Within 5 days of approval
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COST PROPOSAL & COMPENSATION
We have prepared a budget that includes the cost estimates for completing the work for Tasks 1 through 6, as described above. We anticipate a not-to-exceed budget of $69,500 inclusive of technical studies identified as well as a 10% contingency budget. With the addition of the identified optional tasks the total budget would be $82,390.

M-Group understands that the project specific contract will be on a percentage basis within the total not-to-exceed budget amount. M-Group will bill the City by percent complete on a monthly basis. M-Group reserves the right to reallocate funds within the total overall budget.

4. COST
Principal-In-Charge,
Olivia Ervin
Senior
Planner/Project
Manager
Associate
Planner
Subtotal
Task $300 $175 $145
1 Project Management 6 16 2 $4,890
2 Background Research 0 6 6 $1,920
3 Project Description 4 12 6 $4,170
4 Technical Study Review 2 14 4 $3,630
5 CEQA Analysis 6 68 12 $15,440
6 Public Hearings/NOE 2 8 4 $2,580
20 124 34 $32,630

4.2 $5,300

4.3 $4,000

4.4 \ $3,220

4.5 $15,250
10% Admin Fee $2,780
$30,550
$63,180
10% Contingency on M-Group Tasks $6,320
Optional Tasks 4.4a and 4.4b (AB 52 Advisory + Phase 1 XPI $12,890 $82,390
Date:

Cotati Village 2 CEQA Review
GRAND TOTAL:

TOTAL COST WITHOUT CONTINGENCY:

M-GROUP SUBTOTAL:

Traffic Impact Study (W-Trans)
TECHNICAL STUDIES SUBTOTAL:

Technical Studies (Subconsultants)
AQ, GHG, HRA (Illingworth & Rodkin)
Noise and Land Use Compatibility Assessment (Illingworth & Rodkin) Cultural Resources Evaluation (Evans & De Shazo, Inc.)
January 4, 2024

3. Contingency will only to be used with the City's approval.

5. Unexpected delays in the project schedule, high levels of controversy or public comments, may result in a cost increase. A revised scope and budget will be discussed with the City if necessary.

Notes

4. Cost proposal does not include any filing or other types of fees, including permit fees from other government agencies.

1. M-Group reserves the right to re-allocate task completion as necessary but within the total budget.

2. Cost Proposal is for a not-to-exceed amount with monthly invoicing based on percent of tasks completed. 35 of 458
Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ANNUAL CANCELLATION OF CITY COUNCIL MEETINGS

AND HOLIDAY CLOSURE OF CITY HALL
Date: February 13, 2024
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a motion to cancel the regular City Council meetings of July 23 and December 24, 2024, and authorize the annual holiday closure of City Hall.

Background
Historically, due to the high volume of budget meetings in April, May and June and busy summer schedules, the City Council has canceled one meeting in July or August, after the beginning of the new fiscal year. Additionally, the last scheduled meeting of the year is close to Christmas, when many people are on vacation and out of town, so this meeting has also traditionally been canceled.

In past years, the City Council has adopted a holiday closure for City Hall during the Christmas/New Year holiday season. The last weeks of December are the slowest time of the year for City Hall. City commission and board meetings, if previously scheduled, are typically cancelled. Generally, there are no pressing City Council matters needing to be addressed at the second meeting in December and the staff is not aware of any public or vendor complaints about previous years’ City Hall closures. The schedule would be posted on the City’s website and signs placed on the City Hall entrance doors.

Analysis/Discussion
The City Council generally meets on the 2nd and 4th Tuesday of each month. Although not required by state open meeting laws, in accordance City Council Rules of Conduct, section I.A.3, “Any meeting of the Council may be canceled in advance by a majority vote of the Council.” 36 of 458
This is intended to provide ample notice for the public when there is a changed or canceled meeting date. For 2024, it is proposed to cancel the regular City Council meetings on July 23 and December 24.

The proposed City Hall holiday closure schedule is similar to previous years and consists of the closure of City Hall starting Monday, December 23, 2024 and reopening on January 6, 2025 for normal City Hall hours (7:30 a.m. to 12:00 noon and 1:00 p.m. to 5:30 p.m. Monday through Thursday).

The holiday closure would consist of five regular workdays and three paid holidays (Christmas Eve, Christmas Day, and New Years Day). Employees who choose to take this time off during this period would utilize individual accrued vacation or other leave time. The proposed schedule would not affect the Public Works Department, nor would it affect the Police Department. Both departments will remain open, and employees will continue to work regular schedules on those days.

Financial Considerations
If staff take paid leave during the proposed closure, it will result in reductions in accrued compensatory absence liability for City Hall employees.

Environmental Issues
The action of cancelling City Council meeting dates and holiday closure of City Hall does not constitute a project as defined by California Environmental Quality Act. 37 of 458
Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ACCEPTANCE OF THE DOWNTOWN CIVIC CENTER

CONNECTIVITY AND SAFETY PROJECT
Date: February 13, 2024
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended the City of Cotati City Council adopt a resolution accepting the Downtown Civic Center Connectivity and Safety Project, authorizing the City Clerk to file the Notice of Completion with the County Clerk, and authorizing the release of retention after the 35-day noticing period with no protests.

Background
The City’s Five-Year Capital Improvements Program includes a list of street paving projects.

The paving projects are based on a Pavement Management Program (PMP), updated every 2 years, which guides the identification and prioritization of street pavement maintenance projects.

The PMP provides strategies to prioritize the annual roadway projects based on their condition and treatment costs.

Pavement maintenance projects are significantly funded by, and made possible by, Measure S, the City’s local revenue measure; and City Council continues to prioritize street repair and maintenance. Expenditures are detailed in the annual Measure S reports. This project is to be additionally funded using the Streets Improvements Lease issued in January of 2022 and State and Federal roadway grants. The City has completed approximately $5.7 million of roadway rehabilitation in the last two years and has made considerable progress in improving the condition of its roadways. Today, due to the City Council’s sustained commitment to road maintenance, Cotati has among the best roads in Sonoma County.

Analysis/Discussion
The Project consists of pavement rehabilitation of all six segments of La Plaza and the length of 38 of 458
West Sierra Avenue from Old Redwood Highway west to the City limits (just past the Highway 101 overpass). On January 24, 2023, the Project was awarded to JV Lucas Paving, Inc, and the Notice to Proceed was issued on March 1, 2023. On July 28, 2023, a walk-through was conducted and generated a punch list. By September 2023, the punch list items had been addressed and the City Engineer determined the work had been completed in accordance with the contract plans and specifications and recommends it for City acceptance.

Financial Considerations
Accounting for the design, construction contract, engineering support services during construction and Construction Management professional services, additional design fee to address unforeseen environmental requirements and change orders, amendments, and a 15 percent contingency, the total project budget is $2,878,703. the actual expenditures are as follows:

Design $ 189,158
Construction Contract $ 1,910,297
Construction Mgmt. & Eng. Support $ 434,169
Contingency Used $ 0
Total $ 2,533,624
The actual total Project expenditures are 12 percent below the authorized budget amount.

The City’s budget includes State and Federal matching grants which have been awarded to the City and consist of $1,008,000 from One Bay Area Grant 2 (OBAG2) and $242,000 from a Coronavirus Response and Relief Supplemental Appropriations Act, 2021, (CRRSA) grant. The City is in good standing on delivering prior grant funded projects and follows strict and extensive procedural and reporting requirements to remain eligible for this grant funding.

Environmental Issues
The Project is subject to the National Environmental Protection Act (NEPA) and California Environmental Act requirements (CEQA). The City completed necessary documents and the Project was found to be Categorically Exempt under CEQA under Sections 15301, 15302, and 15303, and the Project is a Categorically Exclusion under NEPA 23 CFR 771.117(c): activity (c)(3).
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RESOLUTION NO. (XX)

RESOLUTION OF THE CITY OF COTATI CITY COUNCIL ACCEPTING THE

DOWNTOWN CIVIC CENTER CONNECTIVITY AND SAFETY PROJECT,

AUTHORIZING THE CITY CLERK TO FILE THE NOTICE OF COMPLETION

WITH THE COUNTY CLERK, AND AUTHORIZING THE RELEASE OF
RETENTION AFTER THE 35 DAY NOTICING PERIOD WITH NO PROTESTS.

WHEREAS, the City’s Five-Year Capital Improvements Program includes a list of street paving projects, and the paving projects are based on a Pavement Management Program (PMP), updated every 2 years, which guides the identification and prioritization of street pavement maintenance projects; and
WHEREAS, the PMP provides strategies to prioritize the annual roadway projects based on their condition and treatment costs; and
WHEREAS, pavement maintenance projects are significantly funded by, and made possible by, Measure S, the City’s local revenue measure; and City Council continues to prioritize street repair and maintenance; and
WHEREAS, expenditures are detailed in the annual Measure S reports, and this project is to be additionally funded using the Streets Improvements Lease issued in January of 2022, and State and Federal roadway grants; and
WHEREAS, the City has made considerable progress in improving the condition of its roadways in the last several years; and
WHEREAS, the Project consists of pavement rehabilitation of all six segments of La Plaza and the length of West Sierra Avenue from Old Redwood Highway west to the City limits (just past the Highway 101 overpass); and
WHEREAS, on January 24, 2023, the Project was awarded to JV Lucas Paving, Inc and the Notice to Proceed was issued on March 1, 2023, and, on July 28, 2023, a walk-through was conducted and generated a punchlist, and by September, 2023, the punch list items had been addressed and the City Engineer determined the work had been completed in accordance with the contract plans and specifications and recommends it for City acceptance; and WHEREAS, accounting for the design, construction contract, engineering support services during construction and Construction Management professional services, additional design fee to address unforeseen environmental requirements and change orders, amendments, and a 15 percent contingency, the total project budget is $2,878,703. the actual expenditures are as follows:

Design
Construction Contract
Construction Mgmt. & Eng. Support
$189,158
$1,910,297
$434,169
Contingency $0
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Total $2,533,624
and;
WHEREAS, the actual total Project expenditures are 12 percent below the authorized budget amount; and
WHEREAS, the City’s budget includes State and Federal grants which have been awarded to the City and consist of $1,008,000 from One Bay Area Grant 2 (OBAG2) and $242,000 from a Coronavirus Response and Relief Supplemental Appropriations Act, 2021, (CRRSA) grant; and
WHEREAS, the City is in good standing on delivering prior grant funded projects and follows strict and extensive procedural and reporting requirements to remain eligible for this grant funding; and
WHEREAS, the Project is subject to the National Environmental Protection Act (NEPA) and California Environmental Act requirements (CEQA), and the City completed necessary documents and the Project was found to be Categorically Exempt under CEQA under Sections 15301, 15302, and 15303, and the Project is a Categorically Exclusion under NEPA 23 CFR 771.117(c): activity (c)(3).

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Cotati hereby takes the following actions:

1. Finds that the above recitals are true and correct and incorporated herein by reference; and

2. Accepts the contract work performed on the Downtown Civic Center Connectivity and Safety Project; and

3. Directs the City Clerk to record the attached Notice of Completion for said contract work within 15 days of the date of resolution and provide a copy to the contractor (Cal. Civil Code §9204); and

4. Authorizes the City Manager to release any remaining contract retention to JV Lucas Paving, Inc., thirty-five (35) days after the recordation of the Notice of Completion, provided that no liens or stop notices have been filed against the Project.

IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on February 13, 2024, by the following vote, to wit:
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Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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After recording, return to:

Kevin Patterson, Deputy City Clerk
City of Cotati
201 W. Sierra Avenue
Cotati, CA 94931-4217

NOTICE OF COMPLETION
(ACCEPTANCE OF IMPROVEMENTS)
NOTICE IS HEREBY GIVEN THAT:

1. The City Council of the City of Cotati has accepted the improvements at the City Council meeting of February 13, 2024 for the Downtown Civic Center Connectivity and Safety Project. The nature of the City of Cotati’s interest, as owner, of the property is as public right-of-way.

2. The improvements were completed and deemed complete by the Director of Public Works/City Engineer on September 5, 2023.

3. The name of the original contractor for the work of improvement was JV Lucas Paving, Inc. for a total constructed amount of $1,910,297.

4. The Contractor has provided the City with a maintenance bond and guaranty in the amount of 10 percent of the construction contract amount ($191,029.70) for a period of one (1) year from the date of City Council acceptance of the improvements.

5. This Notice of Completion constitutes the City’s acceptance of the improvements for this project.

I am the City Engineer/Public Works Director for the City of Cotati, a Municipal Corporation. I make this verification on behalf of the City of Cotati. I have read the Notice and know its contents. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Dated: _________________ ___________________________
Craig A Scott
City Engineer/Public Works Director
T:\PROJECTS\Departments\Streets\2020 Street Construction & Improvements\Construction\Closeout\2020 Streets NOC.doc
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Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: ACCEPTANCE OF THE 2024 STREET IMPROVEMENTS

PROJECT
Date: February 13, 2024
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended the City of Cotati City Council adopt a resolution accepting the 2024 Street Improvements Project, authorizing the City Clerk to file the Notice of Completion with the County Clerk, and authorizing the release of retention after the 35-day noticing period with no protests.

Background
The City’s Five-Year Capital Improvements Program includes a list of paving projects. The paving projects are based on a Pavement Management Program (PMP), updated every 2 years, which guides identification and prioritization of pavement maintenance projects. The PMP provides strategies to prioritize annual roadway projects based on condition and treatment costs.

Pavement maintenance projects are significantly funded by, and made possible by, Measure S, the City’s local revenue measure; and City Council continues to prioritize street repair and maintenance. Since July 2020, the City has completed approximately $11.6 million in roadway improvements. These investments have considerably improved our roadway conditions and today Cotati has among the best roads in Sonoma County.

Analysis/Discussion
The 2024 Street Improvements (Project) included pavement preservation treatments for the following streets: Village Ct, Gravenstein Way, Gilbert Way, Pinewood Way, Pinewood Ct, Wilford Ln, Gilbert Ct, Ahlstrom Cir, Woodland Hills Dr, E School St, Christensen Ln, and Christensen Ct. The pavement preservation treatments consist of repair of failed areas (dig outs/repairs), slurry seal and restriping. On September 12, 2023, City Council awarded the construction contract to American Asphalt Repair & Resurfacing Co. On November 21, 2023.

The total constructed amount was $505,796.50 and the City Engineer determined the work to 44 of 458
have been completed in accordance with the Project Plans and Specifications and recommends it for City acceptance.

Financial Considerations
The Project’s total authorized budget is $688,000, and accounts for design, construction, construction management and inspection, and direct costs. The actual project total cost is $674,636, which is 2 percent below the authorized budget. The remaining funds will be returned to the unappropriated General Fund.

Environmental Issues
This action is found to qualify for a Class 1 Categorical Exemption under CEQA Section 15301 in that the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. 45 of 458
RESOLUTION NO. (XX)
RESOLUTION OF THE CITY OF COTATI CITY COUNCIL ACCEPTING THE 2024

STREET IMPROVEMENTS PROJECT IMPROVEMENTS, AUTHORIZING THE

CITY CLERK TO FILE THE NOTICE OF COMPLETION WITH THE COUNTY CLERK, AND AUTHORIZING THE RELEASE OF RETENTION AFTER THE 35 DAY NOTICING PERIOD WITH NO PROTESTS.

WHEREAS, the City’s Five-Year Capital Improvements Program includes a list of paving projects, and the paving projects are based on a Pavement Management Program (PMP), updated every 2 years, which guides identification and prioritization of pavement maintenance projects; and
WHEREAS, the PMP provides strategies to prioritize annual roadway projects based on condition and treatment costs; and
WHEREAS, pavement maintenance projects are significantly funded by, and made possible by, Measure S, the City’s local revenue measure; and City Council continues to prioritize street repair and maintenance, and, since July 2020, the City has completed approximately $11.6 million in roadway improvements, and these investments have considerably improved roadway conditions; and
WHEREAS, the 2024 Street Improvements (Project) included pavement preservation treatments for the following streets: Village Ct, Gravenstein Way, Gilbert Way, Pinewood Way, Pinewood Ct, Wilford Ln, Gilbert Ct, Ahlstrom Cir, Woodland Hills Dr, E School St, Christensen Ln, and Christensen Ct; and
WHEREAS, the pavement preservation treatments consist of repair of failed areas (dig outs/repairs), slurry seal and restriping; and
WHEREAS, on September 12, 2023, City Council awarded the construction contract to American Asphalt Repair & Resurfacing Co for a total constructed amount of $505,796.50.; and WHEREAS, on November 21, 2023, the City Engineer determined the work to have been completed in accordance with the Project Plans and Specifications and recommends it for City acceptance; and
WHEREAS, the Project’s total authorized budget is $688,000, and accounts for design, construction, construction management and inspection, and direct costs; and WHEREAS, the actual Project total cost is $674,636, which is 2 percent below the authorized budget, and the remaining funds will be returned to the unappropriated General Fund; and
WHEREAS, this action is found to qualify for a Class 1 Categorical Exemption under CEQA Section 15301 in that the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion 46 of 458
of the existing or former use.

NOW THEREFORE BE IT RESOLVED, that

1. Finds that the above recitals are true and correct and incorporated herein by reference; and

2. Accepts the contract work performed on the 2024 Street Improvements Project; and

4. Authorizes the City Manager to release any remaining contract retention to American Asphalt Repair & Resurfacing Co., thirty-five (35) days after the recordation of the Notice of Completion, provided that no liens or stop notices have been filed against the Project.

IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on February 13, 2024, by the following vote, to wit:

Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney
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After recording, return to:

Kevin Patterson, Deputy City Clerk
City of Cotati
201 W. Sierra Avenue
Cotati, CA 94931-4217

NOTICE OF COMPLETION
(ACCEPTANCE OF IMPROVEMENTS)
NOTICE IS HEREBY GIVEN THAT:

1. The City Council of the City of Cotati has accepted the improvements at the City Council meeting of February 13, 2024 for the 2024 Street Improvements Project.

The nature of the City of Cotati’s interest, as owner, of the property is as public right-of-way.

2. The improvements were completed and deemed complete by the Director of Public Works/City Engineer on November 21, 2023.

3. The name of the original contractor for the work of improvement was American Asphalt Repair & Resurfacing, Co. for a total constructed amount of $505,796.50.

4. The Contractor has provided the City with a maintenance bond and guaranty in the amount of 10 percent of the construction contract amount ($50,579.65) for a period of one (1) year from the date of City Council acceptance of the improvements.

5. This Notice of Completion constitutes the City’s acceptance of the improvements for this project.

Dated: _________________ ___________________________
Craig A Scott
City Engineer/Public Works Director
T:\PROJECTS\Departments\Streets\2020 Street Construction & Improvements\Construction\Closeout\2020 Streets NOC.doc 48 of 458
Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: MAIN CLEANING AND WATER TREATMENT SERVICES

FOR THE WATER DISTRIBUTION SYSTEM
Date: February 13, 2024
Written by: Craig Scott, Director of Public Works/City Engineer Recommendation
It is recommended the City of Cotati City Council by motion approve a Standard Service Agreement with No-Des, Inc., to complete water main flushing services.

Background
The City owns and operates a public drinking water system and is regulated by the State Water Resources Control Board. Proper maintenance of the water system requires regular flushing of the distribution system and particularly the pipelines with low points and dead ends. The flushing maintains water clarity and discharges sediment that may collect in the system.

Analysis/Discussion
With the increased frequency and severity of droughts, and the increased costs of treating and delivering drinking water, owners and operators of public water systems are increasingly using closed system flushing techniques, instead of flushing water, to conserve water. The City used the closed system technique in 2016, and 2023, and is again proposing its use.

The closed system flushing method consists of hiring a service which provides a trailer mounted water filtration system, real time water quality measurement and pumping equipment to draw water from one hydrant, treat the water, and return the treated water to the system via a second hydrant. Strategically shutting water valves enables cleaning many thousands of feet of main with a single set up location for the treatment system. Ther treatment system uses filters which remove sediment, not harmful to customers, but does lead to discoloration and has the potential 49 of 458
to clog water meters.

The City has researched providers of this service and have only found the one provider, No-Des, Inc. Some cities, Petaluma for instance, have chosen to purchase and operate their own trailer mounted treatment unit. Their system is large enough for a crew to be kept busy year-round operating the unit. This may be an option for the City in the future, but the infrequency of the cleanings, and the high cost of the units, has made this option cost prohibitive.

City Staff requested and No-Des, Inc. provided a quote to provide the treatment trailer, replacement filters, appurtenant equipment including hoses and fittings, and a crew of two for approximately a two-week period. The process begins with “burndown” of the equipment which sanitizes the trailer mounted equipment prior to use, then the flushing operation including moving from one location to another, and replacement filters. City Staff expects this year’s operation to be similar to last year where 5.7 miles of pipeline were cleaned which is about 20% of the system.

Financial Considerations
The City’s adopted FY23/24 Budget includes $100,000 for main flushing contract services which was based on a prior quote received in 2023. The updated quote for services attached from No-Des, Inc. is for an amount of $99,721.26, which is within the budgeted amount and no budgetary adjustments or actions are required from the City Council at this time.

Bosque Farms
NM 87068
United States
Estimate
#2383
1/29/2024
Pricing estimates are subject to change based on availability of parts and specification change requests.

Bill To Ship To TOTAL
City of Cotati
201 W Sierra Ave
Cotati CA 94931-4217
United States
City of Cotati
201 W Sierra Ave
Cotati CA 94931-4217
United States
$99,721.26
Expires: 2/29/2024
Expires Exp. Close Project Sales Rep Partner Shipping Method 2/29/2024 4/30/2024 Ohm Kongtang
Quantity Item Options Tax Rate Amount
1 Flushing Package No
10 Flushing
Standard NO-DES flushing process includes 1 NO-DES
unit operated by 2 NO-DES employees and all
necessary equipment to perform the flushing
operation in a normal potable water distribution
system in x1 8hr Day.

Yes $6,000.00 $60,000.00
1 Fuel Surcharge
Fuel Surcharge
Yes $145.00 $145.00
1 Burndown
Burndown fee - disinfection of NO-DES equipment
prior to use in customer system.

Yes $3,500.00 $3,500.00
1 Move On/Off
Mobilization fee to move NO-DES equipment to/from
customers site.

Yes $3,500.00 $3,500.00
850 1Micron MultiLayer (OHM)
Polypropylene #2 Size Bag, 1 micron absolute 7" X 32"
PLASTIC SURE SEAL, filter bag
(shipped 20 per box)
Yes $35.00 $29,750.00
No $96,895.00
Subtotal $96,895.00
Tax Total (9.5%) $2,826.26
Total $99,721.26
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Cotati City Council
Agenda Staff Report
Item type: CONSENT AGENDA (ACTION)
To: City Council
Subject: RECEIVE AND FILE THE FISCAL YEAR 2022/23 AUDITED

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)

FOR THE CITY OF COTATI
Date: February 13, 2024
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended that the City Council receive and file the Fiscal Year 2022/23 audited Annual Comprehensive Financial Report (ACFR) and related audit letters.

Background
The Annual Comprehensive Financial Report (ACFR) is an audited summary report of the financial transactions of the City for the Fiscal Year 2022/23, ending June 30, 2023. The report is presented to the City Council and is designed to provide summary financial information for citizens, other government agencies, municipal lenders, and other interested parties. The format of this report complies with the Generally Accepted Accounting Principles (GAAP) and reporting requirements of the national Governmental Accounting Standards Board (GASB).

Badawi & Associates, licensed Certified Public Accountants who specialize in governmental audits, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.

The ACFR is intended to improve access and transparency by providing ten years of historical financial information, as well as expert narrative analysis of the finances of the City. This provides a multi-year look at the City finances and helps the reader understand the information presented in the Basic Financial Statements section of the ACFR. 52 of 458
For fiscal years 2017/18, 2018/19, 2019/20, 2020/21, and 2021/22 the City received the Government Finance Officers Association (GFOA) ACFR award called the Certificate of Achievement for Excellence in Financial Reporting and will continue to apply for this award, which has historically been awarded to less than 1% of cities our size.

Analysis/Discussion
The City’s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the four sections summarized below. The full financial statements have been provided as attached and are also available online through a digital formal at hhttp://tinyurl.com/CotatiACFR2022-23.

Introductory Section
• Letter of Transmittal - which is designed to complement Management’s Discussion and Analysis (the MD&A) and is prepared by management and used to communicate information on areas that may have an impact on the City’s finances now and in the future. This includes economic, budget and management factors. Both should be read together to understand the City’s financial position.

Financial Section (the main body of the ACFR for current year information) • Independent Auditors’ Report – the City’s report card on the content of the ACFR. • Management’s Discussion and Analysis (MD&A) – provides an analytical overview of the City’s financial status and results for the year.
• Basic Financial Statements – reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures), and cash flows. o Government-Wide Statements – overview of financial information including all the City’s operations by financial activity.
o Fund Financial Statements – a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance. o Notes to the Financial Statements (Notes) – a narrative explanation that accompanies the Basic Financial Statements.

Required Supplementary Information
• Budget to Actual Comparisons – for all governmental funds with a legally adopted budget.
• Pension Information – schedule of changes in the pension liability and related ratios; schedule of contributions by plan.
• OPEB Information – schedule showing Other Post-Employment Benefits Other Than Pensions since fiscal year 2017/18.

Other Supplementary Information
• Non-Major Funds combining financial statements including the balance sheet and statements of revenues, expenditures, and changes in fund balances. • Budget to Actual Comparisons – for non-major governmental funds with a legally adopted budget.
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• Statements for Internal Service Funds.
• Schedule of Measure S Revenues and Uses for the fiscal year.

Statistical Section (current and historical information – up to 10 years) The last section of the ACFR, which is unaudited, contains schedules of statistical data about the City of Cotati in five major categories:

1. Financial Trends

2. Revenue Capacity

3. Debt Capacity

4. Demographic and Economic Information

5. Operating Information
These schedules, covering a ten-year period, provide operating context for the financial data presented in the financial section of the ACFR.

The ACFR is available on the City’s Financial Information webpage and attached to this staff report. Copies can be made available for review in the City Manager’s Office and in the Administrative Services Office.

Financial Highlights
Badawi & Associates, the independent auditor, has issued the City a clean audit opinion. This independent audit includes an evaluation of the appropriateness of accounting policies used by the City, evaluation of any significant accounting estimates made by City management as well as verification that the financial statements are free from material misstatement. The attached ACFR has no material misstatements. The “corrected misstatements” on the Letter to those Charged with Governance relate to correcting the recording of the new debt for the pension and street project as well as correcting the deferred loss on the same refunding.

Government-Wide Financial Statements (ACFR pages 18 - 21) • At the close of the fiscal year, the assets and deferred outflows of the City exceeded liabilities and deferred inflows of resources by $57.9 million (Total net position in the government-wide) compared to $54.9 million in FY 2021/22. The two significant contributing factors to the change in fund balance are as follows:
o Net increase of approximately $0.4 million or net investment in capital assets was due to the completion of streets and park capital improvement projects offset by increases in increasing debt services (See ACFR page 12 for list of significant capital assets additions).
o The Restricted Net Position of $14.2 million represents resources that are subject to external restrictions on their use, or by enabling legislation. Restricted net position is comprised of amounts restricted for housing ($4.5 million or 32.0%) capital and street projects ($7.1 million or 49.7%), public safety ($2.4 million or

17.0%), other restricted ($0.1 million, or 1.3%). Restricted net position increased by $6.8 million, or 91.9%, primarily due to $3.4 million in funds held in the street bonds project funding and reserved to pay for future street improvements and $2.4 million held in escrow for Caltrans Park and Ride developments. o The Unrestricted Net Position of ($0.2) million represents a net position of the 54 of 458
City not restricted for any project or purpose. The decrease of $4.5 million, or 90%, was primarily due to the use of funds for operations for business type activities as well as increased restricted funds for capital projects, housing, and public safety.
• As of June 30, 2023, the City’s governmental activities reported a net position of approximately $43.2 million compared to $39.4 million in FY 2021/22, a $3.8 million

9.6% increase.
• As of June 30, 2023, the City’s business-type activities reported a net position of $14.6 million compared to $15.5 million in FY 2021/22, a $0.9 million or 5.5% decrease.

Fund Financial Statements (ACFR pages 23 - 37)
• As of the close of the current fiscal year, the City’s Governmental Funds reported a combined ending fund balance of approximately $18.5 million, a $3.2 million increase from the prior year. This change is primarily due to the increase in fund balances from the Streets Bonds Project Fund, which provided $1.7 million and the General Fund, which provided $1.2 million. The Nonmajor Governmental Funds are restricted for use primarily for street projects, community development projects and other special purposes. • Within the Governmental Funds ending fund balances were primarily made up of the following; (See Governmental Funds Balance Sheet on page 26). o $2.8 million for capital projects ($2.5 restricted for the park and ride lots, $0.1 restricted and $0.2 committed for other capital projects) o $4.3 million restricted for streets,
o $3.4 million restricted for affordable housing,
o $2.4 million committed for emergencies per required reserve policy. o $5.2 million is unassigned.

As of the close of the current fiscal year, the City’s General Fund reported an ending fund balance of $10.2 million compared to $9.0 million in FY 2021/22, a $1.2 million net change.

The City’s General Fund continued to maintain a significant balance above the 25% required reserve.

Financial Considerations
The audit report included at ACFR pages 1-4 provides reasonable assurance that the financial statements are free of any material misstatements and found no material weaknesses. This report signals the City’s quality of accounting and financial reporting and is an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. It also helps maintain the City’s favorable bond ratings.

Environmental Issues
The creation of a Consolidated Annual Financial Reporting document is not a project under the California Environmental Quality Act (CEQA), per the definition of a project identified in Section 15378 of CEQA in that there will be no direct, or reasonably foreseeable indirect physical change in the environment.
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City of Cotati
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page

INTRODUCTORY SECTION
City Council ................................................................................................................................................................ vii Management Team .................................................................................................................................................... viii City Organization Chart .............................................................................................................................................. ix GFOA Certificate ............................................................................................................................................................ x Letter of Transmittal ..................................................................................................................................................... xi

FINANCIAL SECTION
Independent Auditor's Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................................... 18 Statement of Activities .......................................................................................................................................... 20 Fund Financial Statements
Governmental Funds:

Balance Sheet ...................................................................................................................................................... 26 Reconciliation of the Balance Sheet
to the Government-Wide Statement of Net Position ................................................................................. 28 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................... 32 Proprietary Funds
Statement of Net Position .............................................................................................................................. 34 Statement of Revenues, Expenses, and Changes in Fund Net Position .................................................. 36 Statement of Cash Flows ................................................................................................................................ 37 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 40 Statement of Changes in Fiduciary Net Position........................................................................................ 41 Notes to the Basic Financial Statements ................................................................................................................ 45 i
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City of Cotati
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION, Continued
Required Supplementary Information
Budget and Budgetary Accounting ........................................................................................................................ 83 Budgetary Comparison Schedules
General Fund ......................................................................................................................................................... 84 Inclusionary Housing Fund ................................................................................................................................. 85 Low Income Housing Fund ................................................................................................................................. 86 Grants Fund ........................................................................................................................................................... 87 Schedule of the City’s Proportionate Share of Net Pension Liability – Last Ten Fiscal Years ....................... 88 Schedule of the City's Pension Contributions – Last Ten Fiscal Years ............................................................. 88 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios – Last Ten Fiscal Years .......... 90 Other Supplementary Information
Budgetary Comparison Schedule:

Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................................................... 95 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 99 Budgetary Comparison Schedules:

Landscape and Lighting ..................................................................................................................................... 102 Gas Tax ............................................................................................................................................................... 103 Bed Tax ............................................................................................................................................................... 104 Park In Lieu .......................................................................................................................................................... 105 MTC Street ............................................................................................................................................................ 106 Traffic Mitigation ................................................................................................................................................. 107 Road Maintenance and Rehabilitation Administration ................................................................................. 108 Community Development Projects ................................................................................................................... 109 CDBG .................................................................................................................................................................... 110 Public Safety ......................................................................................................................................................... 111 K-9 Program ......................................................................................................................................................... 112 Affordable Housing Linkage ............................................................................................................................. 113 PEG ........................................................................................................................................................................ 114 Community Facilities District ............................................................................................................................ 115 Debt Service Fund ............................................................................................................................................... 116 Internal Service Funds:

Combining Statement of Net Position .............................................................................................................. 118 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 119 Combining Statement of Cash Flows ............................................................................................................... 120 ii
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City of Cotati
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION, Continued
Other Supplementary Information, Continued
Schedule of Measure S Revenues and Uses ........................................................................................................ 123

STATISTICAL SECTION
Summary of Contents ............................................................................................................................................ 127 Financial Trends
Net Position by Component ........................................................................................................................... 129 Changes in Net Position .................................................................................................................................. 130 Fund Balance of Governmental Funds ......................................................................................................... 132 Revenue, Expenditures, Changes in Fund Balance and Debt Service Ratio of Governmental Funds ............................................................................................................................... 133 Revenue Capacity
Use Category Summary .................................................................................................................................. 134 Property Tax Dollar Breakdown .................................................................................................................... 135 Roll Summary ................................................................................................................................................... 136 Net Taxable Assessed Value History ............................................................................................................ 137 Assessed Value of Taxable Property ............................................................................................................. 138 Top Ten Property Taxpayers .......................................................................................................................... 139 Direct & Overlapping Property Tax Rates ................................................................................................... 141 Sales Value History .......................................................................................................................................... 142 Top 25 Sales Tax Producers ............................................................................................................................ 143 Taxable Sales by Category .............................................................................................................................. 145 Debt Capacity
Direct and Overlapping Governmental Activities Debt ............................................................................. 146 Legal Debt Margin Information – Last Ten Fiscal Years ............................................................................ 147 Demographic and Economic Information
Demographic and Economic Statistics .......................................................................................................... 148 Full-Time and Part-Time City Employees by Function .............................................................................. 149 Operating Information
Operating Indicators by Function .................................................................................................................. 150 Capital Asset Statistics by Function .............................................................................................................. 151 iii
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iv
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v
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vi
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Other Commissions or Committees:

Planning Commission
Measure S Citizen Oversight Committee
201 West Sierra Ave.

Cotati, California 94931
www.cotaticity.org
Phone: 707-792-4600
Email: [email protected]

MEET THE COTATI CITY COUNCIL
Susan Harvey
Mayor (2023)
[email protected]
707-792-4600 (ext. 193)
Elected Term:(2020-2024)
Laura Sparks
Vice Mayor (2023)
[email protected]
707-792-4600 (ext. 194)
Elected Term:(2020-2024)
Ben Ford
Council Member
[email protected]
707-792-4600 (ext.196)
Elected Term:(2020-2024)
Sylvia Lemus
Council Member
[email protected]
707-792-4600 (ext. 201)
Elected Term:(2022-2026)
Kay Rivers
Council Member
[email protected]
707-792-4600 (ext. 202)
Elected Term:(2022-2026)
vii
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201 West Sierra Ave.

Cotati, California 94931
www.cotaticity.org
Phone: 707-792-4600
Email: [email protected]

MEET THE COTATI CITY

MANAGEMENT TEAM
Damien O’Bid
City Manager
[email protected]
Noah Housh
Director of
Community
Development
[email protected]
Craig Scott
Director of
Public Works /
City Engineer
[email protected]
Michael Parish
Chief of Police
[email protected]
Angela Courter
Director of
Administrative
Services
[email protected]
viii
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Citizens
of
Cotati
City Council
City
Attorney
City
Manager
Police
-Chief of Police
-Sergeants
-Corporals
-Officers
-Reserve Officer
-Dispatchers
-Police Services
Aide
Engineering
/ Public
Works
-Director
-P.W. Supt.
-Maintenance
-Workers
-Laborer
-Engineering
.Technicians
-Intern
City
Managers
Office
-City Clerk
-Admin.
.Assistant
-Sr.Management
.Analyst
-Intern
Recreation
-Rec & Facilities
.Manager
-Rec. Coord.
-Camp Dir.
-Camp Staff
Community
Developmen
t
-Director
-Sr. Planner
-Assistant
.Planner
-Permit Tech
-Planning
.Techicians
Admin.

Services
-Director
-Sr. Accountant
-Accountants
-Account Clerk
-Intern

ORGANIZATIONAL CHART
ix
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cotati
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
x
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City of Cotati
Sonoma County, California
_______________________________________________________________________ January 30, 2024
The Honorable City Council
Cotati, California
Members of the City Council and Citizens of the City of Cotati:

The City of Cotati is pleased to present our Annual Comprehensive Financial Report (ACFR or Annual Report) for the fiscal year ended June 30, 2023. The fiscal year covers financial transactions from July 1, 2022, to June 30, 2023, on a modified or full accrual basis, depending on the fund type. While the City is only required to present a basic financial audit, the City has provided award-winning and comprehensive Annual Reports to provide the highest level of financial transparency to the City Council and community. The City follows a policy of preparing and submitting a complete set of financial statements, with the independent auditor’s report which are in conformity with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB) and compliant with City and California Government Code Sections 25250 and 25253.

To the best of our knowledge and belief, the data as presented is accurate in all material aspects and presented in a manner designed to fairly set forth the financial position and changes in financial position of the City as measured by the financial activity of its various funds. This information includes disclosures that are necessary to enable the maximum understanding of the City’s financial affairs.

City management assumes full responsibility for the completeness and reliability of the information provided in this report. The City has established a comprehensive framework of internal controls to provide a reasonable basis for asserting that the financial statements are fairly presented. The independent auditor’s report presents an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2023. The independent auditor’s report is located at the front of the financial section of this report.

The City has prepared the Annual Report using the financial reporting requirements as prescribed by GASB Statement No. 34, Basic Financial Statements – Management’s Discussion and Analysis – for State and Local Governments. This GASB Statement requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

The MD&A can be found immediately following the report of the independent auditors.

Badawi & Associates, an independent and licensed certified public accountant firm, has audited the City of Cotati’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Cotati for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by the management; and evaluating the overall financial presentation. Badawi & Associates has concluded, based upon the audit, that there is a reasonable basis for rendering an unmodified audit opinion that the City of Cotati’s financial statements for the fiscal year that ended June 30, 2023, are fairly presented in all material respects in conformity with generally accepted accounting principles in the United States. The independent auditor’s report is presented as the first component of the financial section of this report.

In accordance with Government Finance Officers Association (GFOA) best practices, which recommend changing auditors every five years1, this is the fourth year that the City is using a new auditor to review the financial statements of the City.
1 https://www.gfoa.org/materials/audit-procurement
Auditor’s Report Summary
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The Annual Report includes the funds of the primary government, which includes the General Fund and several enterprise activities, as well as all its component units. Component units include legally separate entities for which the primary government is financially accountable and that have the same board as the City or provide services entirely to the City.

The Annual Report is presented in four sections: Introductory, Financial, and Statistical. The introductory section includes this transmittal letter, the City’s organizational chart and a list of municipal officers and officials. The financial section includes the MD&A, government-wide financial statements, fund financial statements, notes to the financial statements, and required supplementary information, as well as the auditor’s report on the financial statements and schedules. The MD&A provides additional information regarding management of the City’s finances and should be read in conjunction with this transmittal letter. The statistical section includes selected financial and demographic information about the City, presented on a multi-year basis.

City Profile: The City of Cotati (City) voted for incorporation in 1963 as a general law city in the County of Sonoma, State of California. The City is located about forty-five miles north of San Francisco on the US 101 corridor between Rohnert Park and Petaluma. The City is approximately 1.88 square miles with an estimated population of 7,317, making it among the smallest incorporated communities in Sonoma County. Community amenities include a charming downtown along the historical Old Redwood Highway, with various shops and restaurants.

The City is also known for festivals that draw international visitors and a weekly farmer's market during the summer. Many Sonoma County wineries are located within minutes from the City, making this community an ideal vacation destination.

City Council: The City is established as a Council-Manager form of local government and governed by a fivem e m b e r City Council. The Mayor and Vice Mayor are selected by the City Council each year from among the five City Council members. The Council is elected on a non-partisan at-large basis. Council members serve four- year staggered terms, with two or three members elected every two years.

The City Council is the legislative and policy-making body of the City. The City Council formulates City policies in the form of motions, resolutions and ordinances which reflect the needs, wishes and priorities of the citizens of Cotati; promotes the economic, cultural, and governmental well-being of the City; and provides for the orderly operations and development of the City. The City Council also serves as the Successor Agency to the former Cotati Community Redevelopment Agency.

City Services: The City provides a full range of municipal services, including police, water, sewer, streets and sidewalks, cultural and recreation facilities, public works and parks, planning, and economic development.

Fire services are provided by the Rancho Adobe Fire District.

Size: 1.88 square miles
Population:
2 7,317
Population Ranking of CA cities3
: 559 of 1,578
Race & Ethnicity: White-70.2%, Hispanic-22.3%,
Asian-2.1%, African American-1.0%, Two or More
Races-4.0%, Others-0.4%
Median Age: 38.7 years, Aged 18-64: 64.5%
Highschool graduate or higher: 91.5%
(State: 83.9%)
Median Household Income (2020): $86,982
(State:$78,362)
Estimated Median House: $642,000
(State: $538,500)
2 See statistical data after basic financial statements. 3 https://www.california-demographics.com/cities_by_population Annual Comprehensive Financial Report
The Reporting Entity and Services Provided
Demographic Information
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The City’s annual budget starts with an annual strategic planning session with the City Council and the public. Following this strategic planning process, the departments take these priorities to develop initial operating and capital budget requests. The City Manager reviews these requests with the Administrative Services Department and the respective department heads. The City Manager and Director of Administrative Services then make recommendations to the City Council regarding the development of the City’s annual budget. After public discussion and evaluation of their recommendations, the City Council adopts a budget. After adoption, the Council periodically reviews the financial activity in relationship to the original budget and amends the original budget as necessary to reflect changing conditions.

Expenditures are controlled at the fund level for all budgeted departments within the City and may not legally exceed appropriations. The budgets are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Any amendments to the total appropriations of a fund must be approved by the City Council.

Long-term revenue continues to be a challenge for the City. Measure G, a 1% sales tax was passed by Cotati voters on June 3, 2014. On November 3, 2020, with an approval of 74.5%, the voters agreed to extend the add-on sales tax with the approval of Measure S. These funds are now secured to support essential City services. Even with the renewal of Measure S, the City continues to face challenges related to the rising costs of general insurance for the City, the reduced CalPERS discount rate for pensions (and the corresponding higher annual payments) and the necessary replacement and upgrades of city infrastructure.

With compounded inflation since 2022, the City continues to experience rising costs for all things, including labor and materials as well as large increases in liability and property insurance costs across the cities in our insurance pool. We need to stay cognizant of those trends and make pragmatic decisions accordingly as the actual impacts become known, while remaining fiscally prudent and focused on using our resources to maintaining core services.

While we prioritize keeping our community safe and continuing to provide high quality essential municipal services; we are also focused on the future and continuing to move forward on City Council priorities. The City Council has clearly communicated the need for many years to continue to invest heavily in repairing and maintaining our infrastructure, with a focus on new housing development across all income levels and adaptation and mitigation to climate change.

As the City looks to continue balancing growth and managing revenue and expenses, there are key variables in planning long-term financial forecasts, including operating costs (primarily payroll growth, pension and health premium rates), revenue projections for property taxes, sales taxes, and other revenue sources. Moreover, Cotati continues to focus on maintaining sufficient financial reserves, diversification of revenue, paying for capital improvements and improving levels of service to the residents.

Accounting System and Budgetary Control
Long-Term Financial Planning
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The City is located in beautiful Sonoma County, approximately forty-five miles north of San Francisco on US Highway 101. Just minutes from popular destinations including hundreds of local wineries, the Pacific Ocean, and giant redwoods, Cotati's strategic location in the heart of Sonoma County and its natural beauty has made it an attractive location as a place to work and live. Families continue to be attracted to the City of Cotati's historic charm, quiet neighborhoods, good schools, and low crime rate.

The City Council continues to prioritize economic development, infrastructure, community engagement and equity.

General Fund revenue continues to be an area that the City needs to bolster and diversify to be able to provide the infrastructure and services the community expects. The short-term strategy for revenue augmentation has focused on cannabis business taxes and transient occupancy taxes by developing these business sectors. This goes together with a “stop loss” approach to address areas of excess service costs to make them revenue neutral.

The medium to long term strategy continues to be diversification of the existing sales and property tax base to provide more stability, primarily through a more flexible business and development environment to encourage a wide array of businesses that fit into the fabric of Cotati and provides the jobs, services, and revenue needed by the community.

Below is a summary analysis of some key indicators of the region’s economic environment.

Employment
Unemployment in the nation droped to 3.7% in November 2023, and 3.7% overall in the third quarter of 2023. In October, there were 0.7 unemployed persons for every job opening, indicating a tight labor market, despite higher interest rates4. At the local level unemployment rates are also declining and have been reduced to below the pre-COVID levels as of June 2023. According to the Sonoma Count Indicators Report for 2023 as prodiced by the Sonoma County Economic Development Board5, the County experienced the largest percent change in jobs from 2017 to 2022 in Public Safety (21%), followed by Life, Physical, & Social Sciences Occupations (20%), Management (15%), Military-Only (11%), Business & Financial Operations (9%), and Healthcare Support (6%). In the next five years the county anticipates Healthcare, Protective Services, and Food Preparation Occupations to experience the highest amount of growth. Cotati has similar trends with unemployment at 3.5% and a labor force participation rate of 70.8%. Overall, the top industries or employment are Transportation and Warehousing (22%), Construction and Retail Trade (both at 14%), Accommodation and Food (10%) and Other Services (8%)6.

Unemployment Rate7:

United States 3.7%, California 4.7%, Sonoma County 4.0%, Cotati 3.5% Inflation
Inflation is the rate at which the general level of prices for goods and services is increasing and consequently results in a decline in the purchasing power of money. The annual calendar year average inflation rate in the US has calmed back to a reduced 3.7% as of September 2023 compared to the high of 8.2% in September 2022.8.

This is consistent with inflation within the state of California and the Bay Area9 where the calendar year average inflation for the state was at 6.9% in 2022, and then slowed to a 4.4% increase in 2023. In December 2023, the Federal Open Market Committee stated, “they are seeking to achieve a maximum employment and inflation rate of 2 percent over the longer run”.

Personal Saving Rate
The personal saving rate is calculated as the ratio of personal saving to disposable personal income. In September 2023, the personal saving rate in the U.S. increased to 3.8%10. In 2022, the personal saving rate was 3.1%. By comparison, in 1970, the personal saving rate was 12.9%. The personal saving rate is a significant economic indicator, as it is a measure of the accumulation of money for future use. 4 HdL Companies California Forecast December 2023
5 https://sonomaedb.org/Microsites/Economic%20Development%20Board/Documents/Reports/2023/2023%20Indicators%20FINAL%20ADA.pdf 6 https://sonomaedb.org/Microsites/Economic%20Development%20Board/Documents/Reports/2023/City%20Reports%20Cotati%202023_ADA_v3.pdf 8 https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/ 9 https://dof.ca.gov/forecasting/economics/economic-indicators/inflation/ 10 https://www.bea.gov/data/income-saving/personal-saving-rate Economic Overview of the City and Region
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Consumer Spending Rate
Consumer Spending in the United States is a significant component of Gross Domestic Production (GDP) and a leading economic indicator of recession or economic growth. Personal consumption expenditures continue to increase and in September of 2023 saw month over month growth of $138.7 billion or 0.7%.

Sales Tax
Sales tax revenue (combined Bradley Burns and Measure S) accounts for approximately 62% of General Fund revenues.
• Bradley Burns - State Sales Tax: The Bradley-Burns Uniform Sales and Use Tax Law provides the State a 6% rate and a city/county rate of 1.25%. Out of the 1.25% city/county rate, one-quarter cent of the levy is sent to the county transportation fund and the 1% balance goes to support local government general funds. • Measure G/S - Local Sales Tax: In the June 2014 election, Cotati voters approved a ballot measure, Measure G, to increase sales tax by 1%. In November of 2020, the citizens of Cotati voted overwhelmingly to continue this special tax as Measure S until the voters repeal it. These additional sales tax dollars help ensure the City's financial viability as a fullservice city, improve infrastructure, and protect the small-town quality of life.

For FY 22/23, the City collected approximately $3.1 million in Measure S sales tax revenues. The revenue collected was used to maintain current service and operation levels in the General Fund as well as fund City recreation, public safety, and capital projects including parks and streets.

Sales Tax Breakdown: As of June 30, 2023, the total sales tax rate in Cotati was 9.50%11 as follows:

California Sales and Use Tax Rates
State 6.00%
County Transportation Funds 0.25%
Local-City of Cotati (Bradley Burns) 1.00%
Total State-Wide Sales and Use Tax Rate 7.25%
Add: County (SMART, Measure M & Y, O & Open Space) 1.25% Add: Cotati Measure S 1.00%
Total Sales Tax Rate in Cotati 9.50%
11 https://www.cdtfa.ca.gov/taxes-and-fees/rates.aspx
County-wide sales tax measures include Sonoma Marin Area Rail Transit [SMART] (0.25%), the Agricultural Preservation and Open Space District (0.25%), Measures M (Transportation) (0.25%), Measure M (Parks) (0.125%) & Measure Y (Libraries) (0.125%).

Measure O - Sonoma County Local Mental Health, Addiction and Homeless Services Measure Transactions and Use Tax (0.25%) (SOMT) Combined, they total 1.250% of the overall sales tax rate in Cotati. xv
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Property Taxes
The City of Cotati receives approximately 10% of the property taxes collected within the City. The other 90% of property taxes collected support the Cotati-Rohnert Park School District, the County of Sonoma, and to a lesser degree, the Rancho Adobe Fire District. There are also a variety of special district property direct tax assessments, school district bonds assessments, and a special property tax assessment by Rancho Adobe Fire District. Properties in Cotati experienced a net taxable value increase of 4.5% or $1.4 billion for the 2022/23 tax roll.

Overall property values increased by $61.2 million. Growth in values was attributed to a combination of the sale of single-family residential property ($17.8 million) and the completion of a new subdivision by Richmond American Homes, which added $11.5 million. Other increases included multi-family unit sales which added $8.9 million.

Residential values continued to increase from their 2021/22 levels by almost $33.1 million. This increase was primarily driven by the sale of new homes which increased the value by $15 million, and the resale of existing housing as well as the up to 2% valuation increases allowed by the County under Proposition 13.

Commercial values grew by only a minor amount ($855,000). Slow commercial growth was attributed to the reduction of $1.0 million for Lowes under Proposition 8 review. For the next fiscal year, the City is expecting a significant increase due to the development of new commercial business within the industrial area, most notably two new warehouses for PODS storage.

As of June 2023, statewide home sales volume has declined for the prior 9 months, due to high interest rates and low inventory. There were 19.7% fewer home sales in June 2023 than in June 2022; 46.5% fewer than at the peak in 2021. The state median home price in June was $838,260. This is 2.4% below the median a year ago, a smaller annual decline than in recent months. 2022 sale prices impacted values on the 2023/24 tax rolls. Value changes from 2023 sales through June are trending up each month but are below 2022 levels. The median sale price of Cotati detached single-family homes from January through August 2023 was $717,000, a decrease of -$43,000 (-

5.7%) from 2022's median sale price.

Housing/Building Permits
Building improvements and construction declined within the City in Fiscal Year 2022/23, with the number of building permits issued (293 permits totaling $21,927,027 in value) decreasing by approximately 26%, but with an increase in valuation of more than 430% compared to Fiscal Year 2021/22 (397 permits totaling $11,041,988 in value). This increase is primarily related to the completion of larger single building permit projects and a decrease in smaller home improvement projects which require building permits.

The City’s estimated ending General Fund Balance in the FY2023/24 Budget is $4.6 million, which is equivalent to 53% of total operating expenses. This estimated reserve exceeds the required budgetary 25% reserve, set by City Council resolution. The significant reserve is primarily due to the City’s ability to efficiently manage costs while it continues to improve the services provided to its citizens.

The General Fund’s economic condition and economic outlook includes the following assumptions for the FY2023/24 Budget:
 Property tax growth of around 3.2% based on 2% assessor applied CPI plus change in assessed value due to transfer of ownership as well as new construction.
 Sales tax increase by less than 1.0% due to change in consumer spending towards services which are not subject to sales tax as well as countering impacts from inflation where both consumer spending is decreased but the cost of goods purchased are increased.  Cannabis business tax reducing to $650,000 due to expected continued declines in sales across the state.  Staffing Costs increased by 12% based on an employee vacancy rate of 0%, set pension required payments, and programed salary increases contained in the approved MOUs.  Increased cost of City-Wide insurance estimated at 13%.  Increased cost of contract services and utilities of 11.2% and 15% based on contracts and noticed rate changes.

Economic Condition and Outlook for the General Fund
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 ENSURE LONG-TERM VITALITY FOR THE CITY
a. Promote a balanced budget that meets the community vision for City services. b. Economic Development.
 Business Attraction/Retention program.
 Removing barriers to market entry.
 Promotion of Cotati for businesses.
 Revenue enhancement.
c. Facilitate affordable housing and new development and infrastructure consistent with vision and goals of the General Plan and Environmental Impact Report (EIR). d. Preserve City infrastructure to meet community needs. e. Actively pursue all feasible grant opportunities to implement identified project. f. Actively work to mitigate and adapt to the impact of climate change, in accordance with adopted City Council policies.
 PROVIDE CORE SERVICES CONSISTENT WITH STANDARD COMMUNITY SERVICE LEVELS a. Ensure community safety and quality (Police, Planning, Building, Public Works, and Code Enforcement).
b. Maintain core day-to-day services in all departments. c. Improve emergency preparedness, including wildfire preparedness. d. Update City regulations to respond to applicable legislative and legal changes. e. Provide convenient and reliable zoning, permitting, and development services. f. Represent City’s interest by participation in region-wide issues. g. Pursue opportunities to improve service delivery, including joint procurement, leveraging internal and external staffing resources, and developing systems, policies, and procedures to streamline processes and expand capabilities of staff.
 COMMUNITY ENGAGEMENT
a. Develop programs, projects & processes to increase and enhance community engagement. b. Continue to improve public information and awareness of programs and services. c. Explore the possibility of incorporating neighborhood level programming into City activities.  PROMOTE AN EQUITABLE, COMPASSIONATE, AND HEALTHY COMMUNITY THAT HONORS

DIVERSITY AS A SOURCE OF STRENGTH
a. Ensure that all city government operations are inclusive and equitable: Fairness in hiring and promotions, greater opportunities in contracting, and equitable services to all residents. b. Advance equity and health in partnership with Cotati residents and stakeholders, other jurisdictions, and non-governmental organizations.

Financial and Operational Stability

1. Received the Government Finance Officers Association (GFOA) Triple Crown Award for completing awards in the same year for the Distinguished Budget Presentation Award, Certificate of Achievement for Excellence in Financial Reporting, and the Certificate of Outstanding Achievement for Popular Financial Reporting.

2. Implemented an Investment Policy update and engaged a more active investment management mindset to facilitate the best use of funds on hand while optimizing safety, liquidity, and yield.

3. Expanded communication with our citizens by supporting both in person and online City Council meetings including moving the City internet over to fiber service to build resiliency and required internet speeds for meeting streams to YouTube, the City Website, and the cable broadcast station. These meetings were also updated to have live captioning that is available in multiple languages through zoom participation.

4. Approved a move to monthly utility billing to implement best practices and allow for more typical cycled bills for customers.

Strategic Goals
Significant Events and Accomplishments
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Economic Development

1. Completed to 6th cycle housing element update as well as implemented the 5th cycle housing element program which is used to plan how to meet the housing needs of our community.

2. Created a Woonerf Ordinance to outline requirements for multi-use space for multimodal transportation and blend pedestrian and vehicle space in a more people friendly open space.

3. Updated the Urban Agriculture rezoning allowing for more specialized agricultural activities in specific zones around the City.

4. Continued work on the accessory dwelling unit (ADU) housing by creating a marketing and support program which includes easy to permit pre-approved plans.

5. Established the City’s parklet and outdoor dining standards to allow for more outdoor business space that adheres to the aesthetics and safety of the community.

Community Safety

1. Police Enforcement: Continue efforts to maintain a safe community including partnering with the City of Rohnert Park and Sonoma State University with the SAFE (Specialized Assistance for Everyone) Team which provides 24/7 mobile mental health crisis responses to both Cities and the University.

2. Training of our new K9 officer Dolly who is the first scent tracking dog in the region. She will be put to work both in Cotati as well as supporting other departments in need of finding high risk missing persons.

3. Implementation of robust training on de-escalation, implicit bias, and support for individuals in mental health crisis.

4. Facilitated and coordinated with local other public safety organizations the community’s first Public Safety Blood Drive and second annual Hi-Lo emergency drill.

5. Purchased equipment and started training on 360 digital crime and vehicle accident scene mapping technology. This technology will allow for ease of investigation and evidence retention.

6. Deployed the City’s first all-electric patrol vehicle. Since implementation, the City has purchased and upfit four more EV’s in our effort to reduce greenhouse gases.

7. Continue to maintain and build relationships with residents through support of “National Night Out” and “Coffee with a Cop.”

8. Continued collaboration with Sonoma State University safety and dispatch operations.

Infrastructure

1. Completed major infrastructure projects including significant restoration of streets with pavement preservation work with the Old Redwood Highway Traffic Flow Improvements as well as the planned 2023 Pavement Rehabilitation and Preservation throughout the City. With each street project the City also incorporated bicycle and pedestrian improvements.

2. Completion of the City Hall and Civic Center Window Replacement and Repainting revitalizing the core buildings for City Operations outside of public works and the police department.

3. Revitalized Kotate Park with fun new playground equipment, an outside workout center, a shaded picnic area, and restroom facilities.
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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2022.

This marks the fourth consecutive year the City has received this award.

The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. To receive this award, the City published an easily readable and efficiently organized ACFR. The report satisfied accounting principles generally accepted in the United States of America and applicable legal requirements. We believe this ACFR also meets the requirements of the program, and we will be submitting it to the GFOA to determine its eligibility for the certificate.

The professionalism, commitment, and effort of each employee of the entire staff of the Administrative Services Department have made this report possible. We also want to thank the other employees in the other City Departments who contributed to the preparation of this report and their dedication to the City. Finally, we thank the Mayor and City Council for their continuing commitment and support in planning and conducting the City's financial operations in a responsible manner, consistent with the City's mission to protect, preserve and enhance the quality of life for present and future generations.

I would like to express my special appreciation to the Administrative Services Team, specifically Angela Courter, Neil Tomlinson, and Rosie Speranza. I would also like to thank the Mayor and City Council Members for their support, stewardship and commitment in planning and conducting financial affairs and the long-term fiscal health of the City in a responsible and efficient manner.

For more information about the City of Cotati or to view the ACFR online, visit the City website at www.cotaticity.org
Respectfully submitted,
Damien O'Bid
City Manager
Awards and Acknowledgements
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Cotati
Cotati, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cotati (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, 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 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. 82 of 458
To the Honorable Mayor and Members
of the City Council of the City of Cotati
Cotati, California

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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:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  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.
 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.  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.
 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 budgetary comparison information on pages 5–14 and 83–90 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 auditing standards generally 83 of 458
To the Honorable Mayor and Members
of the City Council of the City of Cotati
Cotati, California

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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 combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and budgetary comparison schedules are 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. 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 combining and individual nonmajor fund financial statements and budgetary comparison schedules 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 and statistical sections 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.
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To the Honorable Mayor and Members
of the City Council of the City of Cotati
Cotati, California

Page 4 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 26, 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 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
January 26, 2024
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Management Discussion & Analysis
As management of the City of Cotati (City), we offer readers of the City’s financial statements this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the City’s basic financial statements, which immediately follow this section.

Government-Wide Financial Statements
 At the close of the fiscal year, the assets and deferred outflows of the City exceeded liabilities and deferred inflows of resources by $57.9 million (Total net position in the government wide.)
 As of June 30, 2023, the City’s governmental activities reported a net position of $43.25 million (See Table 2).
 As of June 30, 2023, the City’s business-type activities reported a net position of $14.6 million (See Table 2).

Fund Financial Statements
 As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $18.5 million.
 Within the governmental funds ending fund balance, $6.8 million was restricted for capital projects including streets, parks, and ride lot, $3.4 million is reserved for housing, and $5.2 million is unassigned. (See Governmental Funds Balance Sheet June 30, 2023).

The General Fund reported total fund balance of $10.2 million of which $0.2 million is non-spendable, $2.4 million is committed for emergencies and $7.6 million is unassigned. The continuing overall increase in governmental fund balance indicates financial success for the year.

This annual report consists of five parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, a supplemental informational section that presents combining statements for non-major governmental funds as well as the schedule of Measure S revenues and uses, and the statistical section. The financial statements include two kinds of statements that present different views of the City:
 The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status.
 The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements.  The governmental funds statements tell how general government services like public safety were financed in the short term as well as what remains for future spending.  Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the water and wastewater system.

The financial statements also include notes that explain some of the information in the financial statements and provide data that are more detailed. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, we have included a section with combining statements that provide details about the City’s non-major funds, each of which are added together and presented in single columns in the basic financial statements.

Financial Highlights
Overview of Financial Statements
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Management Discussion & Analysis
Table 1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.

Table 1
Major Features of City of Cotati’s Government-Wide and Fund Financial Statements Fund Statements

Government Wide Statements Governmental Funds Proprietary Funds Scope Entire City Government The activities of the City that are not proprietary or fiduciary, such as police, public works and parks
Activities the City operates similar to private
businesses: the water and wastewater systems.

Required financial
statements
Statement of Net Position Balance sheet Statement of net position Statement of Activities Statement of revenues, expenditures and changes in fund balances
Statement of revenues expenses, and changes in
net position
Statement of cash flows

Accounting basis and
measurement focus
Accrual accounting and economic
resources focus
Modified accrual accounting and current financial resources focus
Accrual accounting and economic resources focus

Type of asset/liability
information
All assets and liabilities, both
financial and capital, and short-term
and long-term
Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included
All assets and liabilities, both financial and capital, and short-term and long-term

Type of inflow/outflow
information
All revenues and expenses during
year, regardless of when cash is
received or paid
Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter
All revenues and expenses
during year, regardless of when cash is received or
paid
Government-Wide Statements:

The government-wide statements report information about the City using accounting methods like those used by private-sector companies. The statement of net position includes all the government’s assets and liabilities. All the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City’s net position and its respective changes.

The Statement of Net Position – presents information on all of the City’s Assets and Deferred Outflows of Resources, and Liabilities and Deferred Inflows of Resources with the difference reported as Net Position and is one way to measure the City's financial health, or position. Over time, increases or decreases in the City's net position are an indicator of whether its financial health is improving or deteriorating, respectively.

The Statement of Activities presents the most recent fiscal year changes in the City’s net position. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. The statement reports items resulting in cash flows in future fiscal periods (e.g., uncollected taxes, and earned but unused vacation leave) as revenues and expenses.

The government-wide financial statements of the City are divided into two categories:
 Governmental activities – Most of the City's basic services are included here, such as police, streets, parks, community development, and general administration. Property taxes, sales taxes, and state and federal grants finance most of these activities.
 Business-type activities – The City charges fees to customers to help it cover the costs of certain services it provides. The City's water and wastewater system are included here. 6 87 of 458
Management Discussion & Analysis
Fund Financial Statements:

The fund financial statements provide detailed information about the City's significant funds, not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for those purposes. The City has two kinds of funds:
 Governmental funds – Most of the City's basic services are included in governmental funds. The City supports individual governmental funds organized according to their type (special revenue, debt service, capital projects and permanent funds). Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues for the City’s General Fund, Inclusionary Housing Fund, Low Income Housing Fund, Grants Fund, City Capital Projects Fund, and the Streets Bond Project Fund all of which are major funds. All other governmental type funds are aggregated and are presented in a separate single column in the fund financial statements.

The Governmental Funds Statements focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending.

Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether there are more or fewer financial resources that can be spent soon to finance the City's programs.

Because this information does not encompass the additional long-term focus of the government-wide statements, we supply additional information at the bottom of the governmental funds statement, or on the subsequent page, that explains the relationship (or differences) between them.

Individual and combining fund data for each of these non-major governmental funds is provided as supplementary information in this report.
 Proprietary funds are used to account for services for which the City charges external, or internal customers with the intent to recover all or most of their costs through user fees and charges. The City supports the following two types of proprietary funds:
 Enterprise Funds report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses enterprise funds to account for Water and Wastewater.  Internal Service Funds are an accounting device used to accumulate and distribute costs internally among the City’s various functions. The City’s internal service funds account for Vehicle Replacement, and Compensated Absences. Since these services benefit governmental rather than business-type functions, they are consolidated within governmental activities in the Government-wide Financial Statements Proprietary funds supply the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary funds financial statements provide separate information for Water and Wastewater. The two internal service funds are combined into a single, aggregated presentation in the proprietary funds’ financial statements.

Fiduciary Funds account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the Government-wide Financial Statements because the resources of those funds are not available to support the City’s own programs. Fiduciary fund accounting is like proprietary fund accounting. The City reported two fiduciary funds. One Private Purpose Trust Fund and one Custodial Fund.

Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information (RSI) is presented in addition to the basic financial statements and accompanying notes. This required information includes the Budgetary Comparison Schedules for General Fund and major Special Revenue Funds, the Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of Proportionate Share of the Net Pension Liability, Schedule of Employer Plan Contributions for Pension, and the Schedule of Changes in Net OPEB Liability and Related Ratios. 7 88 of 458
Management Discussion & Analysis
This section provides analysis of the government-wide financial statements including long-term and short-term information about the City’s overall financial condition. The following tables address the financial results of the City as a whole.

The following table is a condensed comparative analysis of the net position of governmental and business-type activities as of June 30, 2022, and June 30, 2023:

TABLE 2
Summary of Net Position
As of June 30, 2022, and 2023
(in million dollars)
Governmental Activities Business Type Activities TOTAL Change 2023 2022 $ Change 2023 2022 $ Change 2023 2022 % $

ASSETS
Current and Other Assets $ 18.8 $ 14.8 $ 4.0 $ 7.3 $ 6.7 $ 0.6 $ 26.1 $ 21.5 21.4% $ 4.6 Internal Balances 3.7 1.9 1.8 (3.7) (1.9) (1.8) - - 0.0 % - Long Term Receivables 1.1 1.1 - - - - 1.1 1.1 0.0 % -
Leases Receivable - - - 0.8 0.8 - 0.8 0.8 0.0 % -
Capital Assets 40.1 32.2 7.9 12.5 12.0 (0.5) 52.6 44.2 19.0 % 8.4 Total Assets 63.7 50.0 13.7 16.9 17.6 (0.7) 80.6 67.6 19.2 % 13.0

DEFERRED OUTFLOWS OF RESOURCES
Pension Plan Contributions and
Timing Differences 5.6 6.9 (1.3) 1.3 1.5 (0.2) 6.9 8.4 (17.9) % (1.5)

LIABILITIES
Current Liabilities 4.3 1.3 3.0 0.4 0.4 - 4.7 1.7 176.5 % 3.0 Noncurrent Liabilities 16.8 11.6 5.2 1.2 1.2 - 18.0 12.8 40.6 % 5.2 Total Liabilities 21.1 12.9 8.2 1.6 1.6 - 22.7 14.5 56.6 % 8.2

DEFERRED INFLOWS OF RESOURCES
Pension Plan Differences in Projections 4.9 4.6 0.2 2.0 1.9 0.1 6.9 6.5 6.2 % 0.4

NET POSITION
Invested in Capital Assets 29.2 30.5 0.1 12.5 12.0 0.5 43.1 42.5 1.4 % 0.6 Restricted 14.2 7.4 6.8 - - - 14.2 7.4 91.9 % 6.8
Unrestricted (0.2) 1.5 (3.1) 2.1 3.5 (1.4) 0.5 5.0 (90.0)% (4.5) Total Net Position $ 43.2 $ 39.4 $ 3.8 $ 14.6 $ 15.5 $ (0.9) $ 57.9 $ 54.9 5.5 % $ 3.0

Analysis of the total net position: (Refer to Table 2 above for all balances discussed.) The City’s total net position (government and business-type activities) increased by $3.0 million, or 5.5% during the fiscal year.

Net investment in Capital Assets is the largest portion of the City’s net position. It is comprised of capital assets (i.e., land, building, roads, machinery, and equipment) less any related outstanding long-term debt used to acquire those assets, which the City has incurred with the lease obligations for the streets improvements. The City uses these capital assets to provide services to citizens; as such, these assets are not available for future spending. The $1.3 million, or 4% decrease in net investment in capital assets was due to purchases of updated fleet as the city expands its replacement of aged vehicles with all electric vehicles other improvements include the completion of Kotate Park and continued work on the streets maintenance and phased rehab offset by the additional drawdown for lease obligation bond related to street improvement project.

Restricted Net Position of $14.2 million represents resources that are subject to external restrictions on their use, or by enabling legislation. Restricted net position is comprised of amounts restricted for housing ($4.5 million or 32.0%) capital and street projects ($7.1 million or 49.7%), public safety ($2.4 million or

Financial Analysis of the City as a Whole
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Management Discussion & Analysis
Unrestricted Net Position in the amount of ($0.2) million represents a net position of the City that is not restricted for any project or purpose. The decrease of $1.7 million, or 113%, was primarily due to the use of funds for operations for business type activities as well as increased restricted funds for capital projects, housing, and public safety.

Total Current and Other Assets increased by $4.6 million, or 21.4% due to; a $4.0 million increase in governmental activities related to cash equivalents of $1.8 million held in escrow for the construction of two park and ride lots as well as funding for streets construction provided by the 2022 Street Bonds Project Fund which holds a remaining cash and cash equivalents balance of $3.4 million. Other significant increases in assets were made up of increases in capital assets of $8.4 million or 19.0% over the prior year.

Most capital assets were city improvements for streets and parks as described on page 15.

Total Current and Other Liabilities increased over the prior year with a change of $8.2 million or 56.6%. The variance is primarily due to the final drawdown of the issuance of the $6.0 million lease-backed bonds for streets improvements. In Fiscal Year 2021/22 the City drew down an initial $2.0 million of the Tax-Exempt Streets Improvement Bonds for projects. Subsequently in Fiscal Year 2022/23 the remaining $5.7 million was distributed to the City and is now subject to inclusion within the debt service and available funding for identified streets improvement projects. This deferred drawdown of funds saved the City approximately $0.1 million in interest. Other significant changes in Liabilities includes a $2.2 million increase in current accounts payable, $0.4 million increase in accrued liabilities, and $0.1 increase in Net pension liabilities. Accounts payable and accrued liabilities primarily increased related to the capital projects in place as of the end of the fiscal year.

Deferred Outflows of Resources decreased $1.5 million and Deferred Inflows of Resources increased $0.4 million due to changes in pension plan contributions and future liabilities.

The following table is a condensed comparative analysis of the changes in net position of governmental and business type activities for fiscal years ended June 30, 2022, and 2023.

TABLE 3
Changes in Net Position
For the Fiscal Years Ended June 30, 2022, and 2023.
(in million dollars)
Governmental Activities Business Type Activities TOTAL
2023 2022 %
Change
$
Change 2023 2022 % Change
$
Change 2023 2022 % Change
$
Change

REVENUES
Program Revenues
Charges for Services $ 2.1 $ 2.1 $ - $ 5.0 $ 5.4 $ (0.4) $ 7.1 $ 7.5 (5.3)% $ (0.4) Operating Grants and Contributions 1.5 2.3 (0.8) - - - 1.5 2.3 (34.8)% (0.8) Capital Grants and Contributions - - - - - - - - 0.0 % - General Revenues
Property Taxes 2.0 1.9 0.1 - - - 2.0 1.9 5.3 % 0.1
Sales and Other Taxes 7.5 7.8 (0.3) - - - 7.5 7.8 (3.8)% (0.3) Other 2.8 - 2.8 0.2 - 0.2 3.0 - 100.0% 3.0
Total Revenues 15.9 14.1 12.8 % 1.8 5.2 5.4 (3.7)% (0.2) 21.1 19.5 8.2 % 1.6

EXPENSES
General Government 3.2 1.8 1.4 - - - 3.2 1.8 77.8 % 1.4 Public Safety 4.4 4.2 0.2 - - - - 4.4 4.2 4.8 % 0.2
Public Works 2.3 2.4 (0.1) - - - 2.3 2.4 (4.2)% (0.1)
Community Development 1.6 1.7 (0.1) - - - 1.6 1.7 (5.9)% (0.1) Interest on Long Term Debt 0.5 0.2 0.3 0.5 0.2 150.0 % 0.3 Water - - - 2.3 2.0 0.3 2.3 2.0 15.0 % 0.2
Sewer - - - 3.8 3.6 0.2 3.8 3.6 5.6 % 0.3
Total Expenses 12.0 10.3 16.5 % 1.7 6.1 5.6 8.9 % 0.5 18.1 15.9 13.8 % 2.2 Revenue over (under) expenses 3.9 3.8 0.1 (0.9) (0.2) (0.7) 3.0 3.6 (16.7)% (0.6) Change in net position 3.9 3.8 2.6 % 0.1 (0.9) (0.2) (350.0)% (0.7) 3.0 3.6 (16.7)% (0.6) Net position, beginning of period, 39.4 35.6 3.8 15.5 15.7 (0.2) 54.9 51.3 7.0 % 3.6 Net position, end of period $ 43.3 $ 39.4 9.9 % $ 3.9 $ 14.6 $ 15.5 (1.3)% $ (0.9) $ 57.9 $ 54.9 5.5 % $ 3.0 9 90 of 458
Management Discussion & Analysis
Analysis of the changes in Net Position
Governmental and Business Type Activities increased the City’s net position by $3.0 million, or 5.5% to $57.9 million for the year ended June 30, 2023, with Governmental Activities accounting for 74.8% of the City’s total net position. These changes are discussed in more detail below.

Analysis of Governmental Activities
Governmental activities: Net position of the City's governmental activities increased by $3.9 million to $43.3 million in the current year.

Revenues: Total revenues for governmental activities increased by $1.8 million or 12.8% when compared with the prior year. Revenues are divided into two categories: Program Revenues, which derive from the program itself such as fees and charges or from outside the City’s tax base, and General Revenues that are not program related such as taxes.

Program Revenues showed an overall decrease from the previous year of $0.8 million, or 34.8%, to $4.6 million.  Charges for services remained consistent with prior years with no growth.  Operating grants and contributions decreased by $0.8 million primarily related to the one-time grant funds received in fiscal year 2021/22 for ARPA grant of $1.7 million offset by Public Works grants for streets projects and other one-time regional grants for housing.

General Revenues had an overall increase of approximately $2.6 million or 26.8%. This increase is primarily related to the sale of the park and ride lot which is to be developed into a hotel. The proceeds from this sale are held in an escrow account to be used for two replacement park and ride lots for Caltrans. Other changes included Sales taxes decreases of $0.2 million and Property taxes increases of $0.1 million. The decrease in sales tax was due to changes in consumer spending post COVID-19 on transactions that are not subject to this revenue source.

Property tax increases are consistent with the valuations of property assessments and inclusion of new housing developments at higher valuations. The other major change in revenues came from Interest and rents which increased by $0.8 million due to higher interest earnings as a result of higher interest rates and improved implementation of active investment management. Facility rental fees have also increased as demand for meeting and event spaces has increased following the closures that occurred during COVID-19.

Expenses Total expenses for governmental activities increased $1.7 million from the prior year, a 16.5% increase.

The primary reason for this increase is due to the 1.4 million increased general government expenses related to it. Interest and expense on long-term debt also increased by $0.3 million or 166% due to the interest on the full draw down of the Streets Bonds Project Fund. Other general government expenditures increased for Community Development related to funding provided to Burbank Housing of almost $0.3 million to support sustaining affordable housing within the City. Additionally, Community Development provided more State Mandated Projects around housing development which required more consultants work previously not required. Lastly, the Public Works Department has also increased expenses related to maintenance projects around the City.

Analysis of Business Type Activities
These resources cannot be used for governmental activities, as they are restricted for the continuing operations of the water and wastewater systems. The net position of business-type activities decreased by $0.9 million, or

6.2% to $14.6 million due to the following:

Revenues: Total revenues for business-type activities decreased $0.2 million or 3.7% due to continued decreased Water Consumption and connection fees. The decreased consumption was partially offset by increased Water and Wastewater rates for consumption as well as base charges for service. The utility revenues are in line with our water and sewer rate plan but with decreased connection fees which are dependent on development.

Expenses: Total expenses for business-type activities increased by approximately $0.5 million or 8.9%. This increase is primarily due to payments for debt service to the general government funds and increased personnel and insurance and other contract services costs.
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Management Discussion & Analysis
TABLE 4
Government Wide – Percentage of Revenues and Expenses by Account Type As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for purposes. The fund financial statements focus on individual parts of the City government, reporting City operations in more detail than the government-wide statements.

Governmental Funds
The City’s governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. The City’s governmental funds reported a combined fund balance on June 30, 2023, of $18.5 million, an increase of $3.1 million over the end of the previous fiscal year. (See Statement of Revenues Expenditures and Changes in Fund Balance Government Funds for the year ending June 30, 2023).

The General Fund is the chief operating fund of the City and the overall fund balance increased by just over $1.2 million or 13.7%. This increase is mostly attributed to the miscellaneous one-time revenues of approximately $2.2 million derived from the planning of the development of the park and ride lot to a hotel. Interest and rents increased by $0.3 million due to active investment management of funds as well as increased rental income for events. The expenditure for the general fund significantly decreased due to the onetime $2.0 million additional discretionary pension payment made in the prior year. The City has also continued to fund significant community infrastructure projects including streets and parks which made up most of the transfers out of $4.0 million just down $0.1 million from the prior year.

The changes within the City’s other major funds include:
 Inclusionary Housing Fund with a year-end fund balance of $3.1 million, an increase of $0.1 million due to outstanding interest accruals for the outstanding affordable housing loans to Burbank Housing. This balance is fully reserved for affordable housing.
 Low Income Housing Fund has an ending fund balance of $0.0 million. The Low-Income Housing Fund balance is accrued and has been deferred for a future period to be used for low-income housing projects.  Grants Fund has a year ending fund balance of $33.1 thousand due to transfers of funds from the General Fund for matching grant purposes. These funds are expected to be expended within the next fiscal year.  The City Capital Projects Fund with a year-end fund balance of approximately $0.2 million, which is consistent with the prior year, and is retained for future capital projects.  Streets Bonds Project Fund has a fund balance of $3.4 million which is reserved for funding streets capital projects.

Financial Analysis of the City’s Fund Statements
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Management Discussion & Analysis
See additional detail at the Statement of Revenues Expenditures and Changes in Fund Balance Government Funds for the year ending June 30, 2023.

The City’s non-major funds ended Fiscal Year 2022/23 with a fund balance of under $1.6 million, an increase of less than $10 thousand. Most of these resources are restricted for use on street capital projects ($0.9 million), affordable housing projects ($0.3 million), and other special purposes. (See Statement of Revenues Expenditures and Changes in Fund Balance Government Funds for the year ending June 30, 2023).

Proprietary Funds
The City’s proprietary funds provide the same type of information found in the Government-Wide Financial Statements, but in more detail. Factors concerning these funds have been previously addressed in the discussion of business-type activities under the Government-Wide Statements.

Over the course of the year, the City Council revised the City budget several times. These budget amendments fall into two categories; (1) Changes made at the mid-year budget review for unanticipated revenues and costs; (2) Increases in appropriations for projects or contracts as needed to manage and prevent budget overruns.

For the General Fund actual revenues exceeded the budget by $2.5 million, while actual operating expenditures were over budget by $0.3 million due to previously encumbered funds for contract services being released. The final ending fund balance for the fiscal year compared to the final budget had a positive variance of $5.1 million.

For a more detailed description of budgetary changes and variances, please see the Budgetary Comparison Schedule for the General Fund, included within the Required Supplementary Information section of this report.

At the end of 2022/23, the City had invested $50.2 million (net of accumulated depreciation) in a broad range of capital assets, including equipment, vehicles, buildings, park facilities, and water and wastewater systems (See Table 5). This year’s major capital assets additions included:
 Kotate Park Revitalization $2,437,000
 City Streets Rehabilitation and Maintenance for $3,228,000  City Hall and Police Department Electric Vehicle procurement and Upfitting $153,000 The City’s Capital Assets as of June 30, 2022, and 2023 is provided next and additional information relative to capital assets is contained in Note 1 Section F and Note 6 of the general-purpose financial statements.

General Fund Budgetary Highlights
Capital Assets and Debt Administration
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Management Discussion & Analysis
TABLE 5
Capital Assets
As of June 30, 2022 and 2023
(in million dollars)
Governmental
Activities
Business Type
Activities TOTAL
2023 2022 2023 2022 2023 2022 % Change $ Change
Capital assets
Land $ 8.6 $ 8.6 $ - $ - $ 8.6 $ 8.6 0 % $ -
Construction in progress 5.5 5.2 - - 5.5 5.2 5.8 % 0.3
Buildings 10.0 10.0 - - 10.0 10.0 5.0 % 0.5
Vehicles 2.0 1.7 0.1 0.1 2.1 1.8 16.7 % 0.3
Equipment 0.7 0.7 0.1 0.1 0.8 0.8 0 % -
Water and Sewer Lines - - 20.2 19.2 20.2 19.2 5.2 % 1.0 Improvements 30.5 22.7 1.3 1.3 31.8 24.0 32.5 % 7.8
Leased Assets - - - - - - 0 % -
Total Capital Assets $ 57.8 $ 48.9 $ 21.7 $ 20.7 $ 79.5 $ 69.6 14 % $ 9.9 * This table does not include accumulated depreciation or amortization.

For further financial data see footnote 6 within the basic financial statements.

Long-term Obligations
2022 Lease Obligations
As of June 30, 2023, the City holds lease obligation debt in the amount just under $11.4 million, of which approximately $0.5 million is considered a current liability. The 2022A Lease obligation was for $7.7 million for street improvements and the 2022B Lease obligation in the amount of $4.0 million was for a CalPERS UAL Prepayment. See footnote 8 within the basic financial statements for further detail.

Compensated absences:

As of June 30, 2023, approximately $0.5 million was owed to government employees for vacation leave and other compensated absences. These benefits are recorded as a liability to the City as the benefits are earned by the employees if the leave is attributable to past service and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means, such as cash payments at termination or retirement.

Net Pension and Other Post-Employment Benefits (OPEB) Liability GASB Statement No. 68 significantly revamped the accounting and financial reporting for government employees that provide pension benefits and other post-employment benefits. Statement 68 as it pertains to the CalPERS Pension Benefit has required a “net pension liability” of $6.8 million to be reported on the statement of net position for the City as of June 30, 2023.

For the City's OPEB benefits, as now defined for reporting under GASB Statement No. 75, a $0.2 million liability was also reported within the total OPEB liability as of June 30, 2023 (see Statement of Net Position). More detailed information about long-term debt activity is included in Notes 9 and 10. 13 94 of 458
Management Discussion & Analysis
The City annually prepares a financial plan, which focuses on the long-term financial viability and allows decision makers to understand the future impact of policy decisions made today. Multi-year planning provides both an early warning of adverse financial trends and more time to implement changes to ensure better outcomes.

Budget development is guided by a series of policies adopted by the City Council, which guides long-term planning, minimum reserve levels, employee compensation, cash and debt management, and utility rates. The City's FY 2023/24 budget which includes the Five-Year Capital Improvement Program budget can be found at https://www.cotaticity.org/188/City-Budgets.

The budget was based on these key assumptions:
 Property Tax - The budget projection for 2023/24 assumes 3.1% increases in property tax collections, due to improved resale market and county assessor appraisals.  Sales Tax (Bradley Burns and Measure S) - The budget projection for 2023/24 assumes continued modest growth during this recovery period from COVID-19 as well as offsetting increased cost of sales and decline in customer purchases related to inflation.
 Water and Wastewater revenues increase slightly due to increased rates offset by continued decreased consumption and connection fees due to uncertain timing of new development projects.  Usage of up to $3.4 million for continued street improvement projects funded by the tax-exempt streets bond.
 Salaries and benefits were projected to increase based on negotiations with labor unions as well as increased staffing costs such as workers compensation insurance, health benefits and pension contributions.
 Increased general liability insurance for the City due to increasing rates in the insurance market.

Although the City has made considerable progress, unfunded liabilities will continue to present challenges to longterm financial solvency and service level solvency. As such the City is committed to applying financial strategies as outlined in our Unfunded Liability Management Policy to address this ongoing risk area.

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Admin Services, City of Cotati, 201 W. Sierra Ave, Cotati, CA 94931.

Economic Factors and Next Year’s Budgets
Contacting the City’s Financial Management
14 95 of 458
BASIC

FINANCIAL STATEMENTS
15 96 of 458
16 97 of 458

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
17 98 of 458
City of Cotati
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and cash equivalents 13,259,858 $ 6,383,193 $ 19,643,051 $ Restricted cash 2,375,000 - 2,375,000
Net receivables 2,924,669 881,073 3,805,742
Internal balances 3,668,213 (3,668,213) -
Prepayments 213,011 109,485 322,496
Total current assets 22,440,751 3,705,538 26,146,289
Noncurrent assets:

Long-term notes receivable 1,183,438 - 1,183,438
Leases receivable - 737,441 737,441
Capital assets:

Nondepreciable 14,137,234 - 14,137,234
Depreciable, net 25,943,164 12,519,601 38,462,765
Total capital assets 40,080,398 12,519,601 52,599,999
Total noncurrent assets 41,263,836 13,257,042 54,520,878 Total assets 63,704,587 16,962,580 80,667,167

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 5,541,596 1,277,132 6,818,728 Deferred outflows of resources - OPEB 16,091 - 16,091
Total deferred outflows of resources 5,557,687 1,277,132 6,834,819

LIABILITIES
Current liabilities:

Accounts payable 2,466,640 103,670 2,570,310
Accrued liabilities 606,516 69,298 675,814
Compensated absences 233,340 148,884 382,224
Deposits 385,369 86,538 471,907
Lease liability - due within one year 501,110 - 501,110 Claims and judgements - due within one year 18,535 5,536 24,071 Total current liabilities 4,341,685 413,926 4,755,611
Noncurrent liabilities:

Lease liability - due in more than one year 10,858,830 - 10,858,830 Compensated absences 67,200 20,032 87,232
Claims and judgements - - -
Net pension liability 5,640,017 1,174,566 6,814,583
Total OPEB liability 217,445 - 217,445
Total noncurrent liabilities 16,783,492 1,194,598 17,978,090 Total liabilities 21,125,177 1,608,524 22,733,701
Primary Government
See accompanying Notes to Basic Financial Statements
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City of Cotati
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
Primary Government

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - leases 40,144 797,481 837,625 Deferred inflows of resources - pension 4,772,843 1,214,637 5,987,480 Deferred inflows of resources - OPEB 75,640 - 75,640
Total deferred inflows of resources 4,888,627 2,012,118 6,900,745

NET POSITION
Net investment in capital assets 29,236,283 12,519,601 41,755,884 Restricted for:

Capital projects 383,300 - 383,300
Housing 4,548,348 - 4,548,348
Public safety 2,406,793 - 2,406,793
Park and ride lot 2,496,694 - 2,496,694
Streets 4,290,610 - 4,290,610
Public communications 68,854 - 68,854
Total restricted 14,194,599 - 14,194,599
Unrestricted (182,412) 2,099,469 1,917,057
Total net position $ 43,248,470 $ 14,619,070 $ 57,867,540 19 100 of 458
City of Cotati
Statement of Activities
For the year ended June 30, 2023
Operating
Charges for Grants and
Functions/Programs Expenses Services Contributions Total Primary Government:

Governmental activities:

General government 3,199,265 $ $ 1,240,293 $ 285,950 $ 1,526,243 Public safety 4,404,168 294,419 964,777 1,259,196
Community development 1,110,855 410,008 128,079 538,087 Public works 2,825,128 144,361 146,234 290,595
Interest expense on long-term debt 506,426 - - -
Total governmental activities 12,045,842 2,089,081 1,525,040 3,614,121 Business-type activities
Water 2,301,068 2,087,050 - 2,087,050
Wastewater 3,726,683 2,911,124 - 2,911,124
Total business-type activities 6,027,751 4,998,174 - 4,998,174 Total primary government $ 7,087,255 18,073,593 $ 1,525,040 $ 8,612,295 $ General Revenues:

Taxes:

Property taxes
Sales taxes
Cannabis business tax
Franchise taxes
Other taxes
Total taxes
Interest and rents
Proceeds from sale of property
Transfers
Total general revenues
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements
20 101 of 458
Governmental Business-Type
Activities Activities Total
$ (1,673,022) $ (1,673,022) - $
(3,144,972) - (3,144,972)
(572,768) - (572,768)
(2,534,533) - (2,534,533)
(506,426) - (506,426)
(8,431,721) - (8,431,721)
- (214,018) (214,018)
- (815,559) (815,559)
- (1,029,577) (1,029,577)
(8,431,721) (1,029,577) (9,461,298)
2,002,321 - 2,002,321
6,217,892 - 6,217,892
619,670 - 619,670
595,296 - 595,296
87,386 - 87,386
9,522,565 - 9,522,565
568,048 174,012 742,060
2,000,000 - 2,000,000
194,721 - 194,721
12,285,334 174,012 12,459,346
3,853,613 (855,565) 2,998,048
39,394,857 15,474,635 54,869,492
$ 43,248,470 $ 14,619,070 $ 57,867,540
Net (Expense) Revenue
and Changes in Net Position
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22 103 of 458
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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24 105 of 458

GOVERNMENTAL FUND FINANCIAL STATEMENTS
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Inclusionary Housing Fund is a special revenue fund used to account for in lieu impact fees restricted in use to inclusionary housing purposes.

The Low Income Housing Fund is a fund which was established to conduct the dissolution operations related to low income housing assets and activities of the former Redevelopment Agency.

Grant Fund is used to account for the construction of projects that utilize federal, state, regional, and local grantsfunds other than CDBG. City staff applies for and receives competitive funding grants for various City projects that meet specific criteria.

The City Capital Project Fund consists of various types of financial resources that are utilized to build, renovate or purchase equipment, property, or facilities, including buildings, parks, information technology systems, and non water/sewer infrastructure and which are to be used to benefit the public.

Streets Bond Project Fund is a fund designed to account for the construction of streets projects using the funding obtained from the 2022 Street debt service
25 106 of 458
City of Cotati
Balance Sheet
Governmental Funds
June 30, 2023
Inclusionary Low Income
General Housing Housing Grants City Capital
Fund Fund Fund Fund Project Fund
ASSETS
Cash and investments 4,119,972 $ 2,277,988 $ 1,084 $ 339,498 $ 1,065,998 $ Restricted cash 2,375,000 - - - -
Taxes receivable 1,245,650 - - - -
Accounts receivable 270,092 24,718 - 15,185 -
Leases receivable 38,239 - - - -
Due from other governments 30,784 - 1,194,596 - -
Interfund loans 783,432 - - - -
Due from other funds 2,956,601 - - - -
Notes receivable - 1,183,438 - - -
Prepayments 213,011 - - - -
Total assets $ 11,249,349 $ 3,086,138 $ 1,184,522 $ 1,534,094 $ 1,081,183

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES
Liabilities:

Accounts payable $ 255,866 $ - $ 1,318,602 - $ $ 761,356 Accrued liabilities 346,802 - 152,600 - 102,900
Deposits 385,369 - - - -
Due to other funds - - 29,755 - -
Total liabilities 988,037 - 1,500,957 - 864,256
Deferred inflows of resources:

Related to leases 40,144 - - - -
Unavailable revenues (2,113) 1,184,526 - - -
Total deferred inflows
of resources 38,031 1,184,526 - - -
Fund Balances:

Nonspendable 248,017 - - - -
Restricted for affordable housing 3,086,138 - - - -
Restricted for public safety - - - - -
Restricted for streets - - - - -
Restricted for park and ride lot 2,375,000 - - - -
Restricted for public education - - - - -
Restricted for capital projects - - - - -
Committed for capital projects - - 33,137 - 216,927
Committed for emergencies 2,361,957 - - - -
Assigned for encumbrances - - - - -
Unassigned 5,238,307 - (4) - -
Total fund balances 10,223,281 3,086,138 (4) 33,137 216,927 Total liabilities, deferred inflows
of resources, and fund balances $ 11,249,349 $ 3,086,138 $ 1,184,522 $ 1,534,094 $ 1,081,183 See accompanying Notes to Basic Financial Statements
26 107 of 458
Other Total
Streets Bonds Governmental Governmental
Project Fund Funds Funds
$ 1,550,132 3,363,337 $ 12,718,009 $
- - 2,375,000
45,693 - 1,291,343
55,498 - 365,493
- 38,239 -
- 1,225,380 -
- 783,432 -
- 2,956,601 -
- 1,183,438 -
- 213,011 -
$ 3,363,337 $ 1,651,323 $ 23,149,946
$ 13,863 - $ $ 2,349,687
- 602,302 -
- 385,369 -
42,065 - 71,820
55,928 - 3,409,178
- 40,144 -
- 1,182,413 -
- 1,222,557 -
- 248,017 -
300,694 - 3,386,832
44,836 - 44,836
3,363,337 927,273 4,290,610
121,694 - 2,496,694
68,854 - 68,854
133,236 - 133,236
- 250,064 -
- 2,361,957 -
- - -
- (1,192) 5,237,111
3,363,337 1,595,395 18,518,211
$ 3,363,337 $ 1,651,323 $ 23,149,946
27 108 of 458
Total Fund Balances - Total Governmental Funds $ 18,518,211 Other long-term assets are not available to pay for current period expenditures and are therefore reported as asset, but offset by deferred inflows of resources in the governmental funds. 1,184,526 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 $ - 14,137,234 $ 14,137,234
Depreciable, net 25,943,164 (532,660) 25,410,504
Total capital assets $ 40,080,398 $ (532,660) 39,547,738 Internal service funds were used by management to charge the costs of certain activities, such as vehicle replacement and compensated absences, 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. 657,016
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 5,541,596 Deferred outflows of resources related to OPEB 16,091
Deferred inflows of resources related to pension (4,772,843) Deferred inflows of resources related to OPEB (75,640)
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
Lease liability - due within one year $ (501,110) $ - (501,110) Claims and judgements payable - due within one year - (18,535) (18,535) Lease liability - due in more than one year - (10,858,830) (10,858,830) Claims and judgements payable - due in more than one year - - - Interest payable - (130,175) (130,175)
Net pension liability - (5,640,017) (5,640,017)
Total OPEB liability - (217,445) (217,445)
Total long-term liabilities $ - (17,366,112) $ (17,366,112) Net Position of Governmental Activities $ 43,248,470
City of Cotati
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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29 110 of 458
City of Cotati
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Inclusionary Low Income
General Housing Housing Grant City Capital
Fund Fund Fund Fund Project Fund
REVENUES:

Property taxes $ - 1,967,056 $ $ - $ - $ -
Sales taxes 6,024,055 - - - -
Other taxes 651,507 - - - -
Licenses and permits 684,245 - - - -
Intergovernmental 161,573 - - 1,281,911 -
Charges for services 737,190 - - - 179,256
Interest and rents 336,127 83,039 (4) 88 6,688
Miscellaneous 299,096 - - - -
Total revenues 10,860,849 83,039 (4) 1,281,999 185,944
EXPENDITURES:

Current:

General government 1,252,473 - - - -
Public safety 4,077,803 - - 195,487 -
Community development 921,758 - - 63,475 -
Public works 1,720,195 - - 499,721 -
Capital outlay - - - 3,136,881 5,466,877
Debt service:

Principal - - - - -
Interest - - - - -
Total expenditures 7,972,229 - - 3,895,564 5,466,877

REVENUES OVER (UNDER)
EXPENDITURES 2,888,620 83,039 (4) (2,613,565) (5,280,933)

OTHER FINANCING
SOURCES (USES):

Proceeds from sale of property 2,000,000 - - - -
Proceeds from long term debt 714 - - - -
Transfers in 391,208 - - 2,770,884 5,412,276
Transfers (out) (4,052,652) - - (124,182) -
Total other financing
sources (uses) (1,660,730) - - 2,646,702 5,412,276
Net change in fund balances 1,227,890 83,039 (4) 33,137 131,343 FUND BALANCES:

Beginning of year, as restated 8,995,391 3,003,099 - - 85,584 End of year $ 10,223,281 $ 3,086,138 $ (4) $ 33,137 $ 216,927 See accompanying Notes to Basic Financial Statements
30 111 of 458
Nonmajor Total
Streets Bonds Governmental Governmental
Project Fund Funds Funds
$ 35,265 - $ $ 2,002,321
- 193,837 6,217,892
- - 651,507
- - 684,245
- 384,012 1,827,496
- 348,862 1,265,308
77,253 47,522 550,713
- 167,923 467,019
77,253 1,177,421 13,666,501
- 52,128 1,304,601
- 14,699 4,287,989
- - 985,233
- 93,087 2,313,003
- - 8,603,758
- 487,633 487,633
- 376,251 376,251
- 1,023,798 18,358,468
77,253 153,623 (4,691,967)
- - 2,000,000
- 5,847,573 5,848,287
5,653,566 715,545 14,943,479
(4,058,212) (6,708,433) (14,943,479)
1,595,354 (145,315) 7,848,287
1,672,607 8,308 3,156,320
1,690,730 1,587,087 15,361,891
$ 3,363,337 $ 1,595,395 $ 18,518,211
31 112 of 458
City of Cotati
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 $ 3,156,320 Governmental funds report long-term receivables but defer revenue from them until collections are actually received. In the Government-Wide Statement of Activities, principal collections on receivables are not reported as revenues. Disbursements made for long-term loans are recorded as expenditures in the funds, but are not recorded as additions to receivables in the Government-Wide Statement of Activities. 20,897 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. 8,603,758 Depreciation/Amortization expense on capital assets was reported in the GovernmentWide 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. (856,949) 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.

Lease liability repayments 3,993
Special assessment bonds activity (5,169,925)
Claim payments are recorded as expenditures in the governmental funds, however claim expense is recognized as claims are incurred on the Government-Wide Statement of Activities 31,985
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. (1,766,753)
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 1,899
Internal service funds were used by management to charge the costs of certain activities, such as compensated absences and fleet management, to individual funds.

The net revenue of the internal service funds was reported with governmental activities. (41,437)
Interest payments are recorded as expenditures in the governmental funds, however interest expense is recognized as expenses are incurred on the Government-Wide Statement of Activities (130,175)
Change in Net Position of Governmental Activities $ 3,853,613 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
32 113 of 458

PROPRIETARY FUND FINANCIAL STATEMENTS
The Water Fund accounts for the operations of the City's water distribution system.

The Wastewater Fund accounts for the operations of the City's wastewater collection activities Internal Service Funds account for vehicle replacement and compensated absences provided to other departments or agencies of the government on a cost-reimbursement basis. 33 114 of 458
City of Cotati
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Total Enterprise Internal Service
Water Wastewater Funds Funds
ASSETS
Current assets:

Cash and cash equivalents $ 3,281,796 3,101,397 $ 6,383,193 $ 541,849 $ Accounts receivable 458,540 338,075 796,615 4,214
Due from other governments 36,567 - 36,567 -
Leases receivable 33,706 - 33,706 -
Notes receivable 8,396 5,789 14,185 -
Interfund loans - - - -
Prepayments 26,408 83,077 109,485 -
Total current assets 3,845,413 3,528,338 7,373,751 546,063 Noncurrent assets:

Interfund loans - - - -
Leases receivable 737,441 - 737,441 -
Capital assets:

Nondepreciable: - - - -
Depreciable
Reservoirs - 1,650,972 1,650,972 -
Pipelines and meters 11,134,309 6,094,058 17,228,367 -
Water wells - 1,451,506 1,451,506 -
Improvements 224,807 1,061,845 1,286,652 -
Equipment 109,822 - 109,822 1,961,784
Less accumulated depreciation (5,479,579) (3,728,139) (9,207,718) (1,429,124) Net capital assets 4,778,802 7,740,799 12,519,601 532,660 Total noncurrent assets 4,778,802 8,478,240 13,257,042 532,660 Total assets 8,307,140 12,323,653 20,630,793 1,078,723

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 638,566 638,566 1,277,132 - Total deferred outflows of resources 638,566 638,566 1,277,132 - Business-type Activities
See accompanying Notes to Basic Financial Statements
34 115 of 458
City of Cotati
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Total Enterprise Internal Service
Water Wastewater Funds Funds
Business-type Activities

LIABILITIES
Current liabilities:

Accounts payable 30,757 72,913 103,670 116,953
Accrued liabilities 53,553 15,745 69,298 4,214
Due to other funds 1,411,371 1,473,410 2,884,781 -
Claims and judgements 2,768 2,768 5,536 -
Compensated absences 74,442 74,442 148,884 233,340
Interfund loans 43,181 - 43,181 -
Deposits - 86,538 86,538 -
Total current liabilities 1,616,072 1,725,816 3,341,888 354,507 Noncurrent liabilities:

Claims and judgements - - - -
Interfund loans 740,251 - 740,251 -
Compensated absences 10,016 10,016 20,032 67,200
Net pension liability 587,283 587,283 1,174,566 -
Total noncurrent liabilities 1,337,550 597,299 1,934,849 67,200 Total liabilities 2,953,622 2,323,115 5,276,737 421,707

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - leases receivable 797,481 - 797,481 - Deferred inflows of resources - pension 589,982 624,655 1,214,637 - Total deferred inflows of resources 624,655 1,387,463 2,012,118 -

NET POSITION
Net investment in capital assets 4,778,802 7,740,799 12,519,601 532,660 Restricted 228,919 378,722 607,641 -
Unrestricted 990,215 501,613 1,491,828 124,356
Total net position $ 5,997,936 $ 8,621,134 $ 14,619,070 $ 657,016 See accompanying Notes to Basic Financial Statements
35 116 of 458
City of Cotati
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities
Total Enterprise Internal Service
Water Wastewater Funds Funds
OPERATING REVENUES:

Charges for services $ 2,910,513 2,100,679 $ 5,011,192 $ 214,523 $ Other operating revenues 611 (13,629) (13,018) -
Total operating revenues 2,911,124 2,087,050 4,998,174 214,523 OPERATING EXPENSES:

Personnel services 774,962 776,951 1,551,913 158,640
Contractual services 152,640 374,425 527,065 -
Intergovernmental treatment costs 2,372,316 - 2,372,316 - Utilities 95,853 20,848 116,701 -
Purchased water 511,724 - 511,724 -
Supplies and materials 218,971 86,063 305,034 -
Depreciation 296,578 272,160 568,738 114,656
Total operating expenses 2,274,502 3,678,989 5,953,491 273,296 OPERATING INCOME (LOSS) (187,452) (767,865) (955,317) (58,773) NONOPERATING REVENUES (EXPENSES):

Interest and investment revenues 77,203 96,809 174,012 17,336 Interest expense (47,694) (26,566) (74,260) -
Total nonoperating revenues (expenses) 49,115 50,637 99,752 17,336 Income before contributions and transfers (718,750) (136,815) (855,565) (41,437) Change in net position (718,750) (136,815) (855,565) (41,437) NET POSITION:

Beginning of year 9,339,884 6,134,751 15,474,635 698,453 End of year $ 5,997,936 $ 8,621,134 $ 14,619,070 $ 657,016 Business-type Activities
See accompanying Notes to Basic Financial Statements
36 117 of 458
City of Cotati
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities
Total Internal
Enterprise Service
Water Wastewater Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 2,882,248 2,049,909 $ 4,932,157 $ - $ Interfund charges for services - - - 214,523
Payments to suppliers (2,547,410) (1,162,269) (3,709,679) 116,953 Payments to employees 271,852 199,807 471,659 (214,523) Net cash provided by (used in) operating activities 1,159,492 534,645 1,694,137 116,953 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund loans - 550,090 550,090 -
Interfund interest (26,566) (47,694) (74,260) -
Repayments of interfund balances (43,181) (550,090) (593,271) - Net cash provided by (used in) noncapital financing activities 459,215 (576,656) (117,441) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchase of capital assets (959,996) (90,382) (1,050,378) (270,401) Net cash provided by (used in)
capital and related financing activities (959,996) (90,382) (1,050,378) (270,401) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest receipts 77,203 96,808 174,011 17,336
Net cash provided by (used in) investing activities 77,203 96,808 174,011 17,336 Net cash flows 569,657 130,672 700,329 (136,112)
CASH AND CASH EQUIVALENTS - Beginning of year 2,531,740 3,151,124 5,682,864 677,961 CASH AND CASH EQUIVALENTS - End of year $ 3,281,796$ 6,383,193 3,101,397 $ 541,849 $

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

Operating income (loss) $ (187,452) $ (767,865) $ (955,317) $ (58,773) Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense 296,578 272,160 568,738 114,656
Changes in assets and liabilities:

Receivables, net 6,395 (27,203) (20,808) (4,214)
Prepayments 26,064 40,068 66,132 -
Due from other governments 5,836 (29,491) (23,655) -
Accounts payable (9,164) (3,105) (12,269) 116,953
Accrued liabilities 15,745 53,553 69,298 -
Net pension liability 132,018 97,344 229,362 -
Other liabilities 901,011 871,645 1,772,656 (51,669)
Net cash provided by (used in) operating activities $ 534,645 1,159,492 $ $ 116,953 1,694,137 $ Business-type Activities
See accompanying Notes to Basic Financial Statements
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38 119 of 458

FIDUCIARY FUND FINANCIAL STATEMENTS
The Private Purpose Trust Fund, a fiduciary fund type, accounts for all of the assets, liabilities, and financial activities of the Successor Agency to the City's former Redevelopment Agency that was dissolved effective February 1, 2012.

Custodial Fund, a custodial fund that is used to facilitate a special assessment debt service charged to land owners for the financing provided to develop the business park.
39 120 of 458
City of Cotati
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Private Purpose Custodial
Trust Fund
ASSETS
Cash and cash equivalents $ 1,971,031 $ 329,801
Cash with trustees 59 279,162
Prepayments 3,956 -
Tax receivable - 951
Accounts receivable (6,096) -
Notes receivable 1,493,571 -
Capital assets:

Land 287,048 -
Total assets 3,749,569 609,914

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding 83,378 -
Total deferred outflows of resources 83,378 -

LIABILITIES
Accounts payable 1,365 -
Accrued liabilities 68,424 -
Interest payable 24,700 -
Tax allocation bonds 7,658,781 -
Total liabilities 7,753,270 -
NET POSITION (DEFICIT):

Held in trust for :

Successor agency (3,920,323) -
Bondholders - 609,914
Total net position (deficit) $ (3,920,323) $ 609,914
See accompanying Notes to Basic Financial Statements
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City of Cotati
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Private Purpose Custodial
Trust Fund Fund
ADDITIONS:

Net investment income $ - 70,151 $
Assessment revenue 126,735 -
Interest and rent 2,139 -
Interest on long-term notes - -
Accounts receivable - 927,226
Total additions 128,874 997,377
DEDUCTIONS:

Bond interest (128,180) 99,108
Bond principal 231,343 -
Administrative costs 4,316 62,757
Payments on pass-through agreements - 64,405
Bond disclosure - 3,000
Bond trustee - 8,691
Total deductions 107,479 237,961
Change in net position 21,395 759,416
NET POSITION (DEFICIT):

Beginning of year, as restated 588,519 (4,679,739)
End of year $ 609,914 (3,920,323) $
See accompanying Notes to Basic Financial Statements
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42 123 of 458

NOTES TO BASIC

FINANCIAL STATEMENTS
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44 125 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Cotati, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
he City is a municipal corporation governed by an elected five member City Council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City has no component units that are blended or discretely presented in these financial statements. The City’s former redevelopment agency was dissolved by law effective February 1, 2012. The City elected to serve as the successor custodian of the residual assets and obligations of the former agency. Accordingly, the assets, liabilities and financial transactions of the former agency were transferred on the effective date to a fiduciary fund (private purpose trust fund) and are accounted for in these financial statements as a fiduciary fund. These fiduciary funds are excluded from the City’s government-wide statement of net position, statement of activities, and fund statements because fiduciary funds are not available for use by the City.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues, and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred inflows/outflows of resources, and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liabilities are incurred.

Certain types of transactions reported as program revenues for the City are reported in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, 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 those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transaction balances have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfers 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 nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position 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 in the current period.

The City reports the following major governmental funds in the accompanying financial statements:

General Fund – the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Inclusionary Housing Fund – is a special revenue fund used to account for in lieu impact fees restricted in use to inclusionary housing purposes.

Low Income Housing Fund – is a fund which was established to conduct the dissolution operations related to low-income housing assets and activities of the former Redevelopment Agency.

Grants Fund – is a fund which was established to account for the the construction of projects that utilize federal, state, regional, and local grants funds other than CDBG. City staff applies for and receives competitive funding grants for various City projects that meet specific criteria. 46 127 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued
City Capital Project Fund – consists of various types of financial resources that are utilized to build, renovate, or purchase equipment, property, or facilities, including buildings, parks, information technology systems, and non-water/sewer infrastructure and which are to be used to benefit the public.

Streets Bonds Project Fund – is a fund which was established to account for the construction of streets projects using the funding obtained from the 2022 Street debt service Revenues are recorded when received in cash, except that revenues subject to accrual (generally those received within 60 days after year-end) are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.), grant revenues and earnings on investments.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided.

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.

A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the GovernmentWide Financial Statements.

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 increase (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which a liability is incurred.

Operating revenues in the proprietary funds 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 operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following enterprise funds as proprietary funds of the City:

Water Fund – accounts for the operations of the City’s water distribution system.

Wastewater Fund – accounts for the operation of the City’s wastewater collection activities. 47 128 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued
Additionally, the City reports the following fund type:

Internal service funds – account for vehicle replacement and compensated absences provided to other departments or agencies of the government on a cost-reimbursement basis.

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 two types of fiduciary funds, a private-purpose trust fund and a custodial fund. Private purpose trust funds account for all other trust arrangements in which principal and income benefit individuals, private organizations, and other governments (i.e. unclaimed property/escheat property). Custodial funds are used to account for the assets held for distribution by the City as an agent for another entity for which the City has a custodial responsibility and accounts for the flow of assets. Fiduciary funds are accounted for using the accrual basis of accounting.

The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate fiduciary fund financial statements. The City reports the following fiduciary funds:

The Private-Purpose Trust Fund – accounts for all of the assets, liabilities, and financial activity of the Successor Agency to the City’s former Redevelopment Agency that was dissolved effective February 1, 2012.

The Custodial Fund – is a fund that is used to facilitate a special assessment debt service charged to landowners for the financing provided to develop the business park.

C. Cash and Investments
The City maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed as cash and investments on the balance sheets for the governmental funds and the statements of net position for the proprietary fund and agency funds as cash and investments.

Investments are stated at fair value.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements for deposits and investment risks were made in the following areas:
 Interest Rate Risk
 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. 48 129 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED C. Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, 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. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not have any investments measured using Level 1, Level 2, or Level 3 inputs as of June 30, 2023.

The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and AssetBacked Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “cash and investments” in the accompanying basic financial statements.

For the purpose of the Statement of Cash Flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements.

E. Leases Receivable
The City’s leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Deferred inflows of resources are recorded for the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable.
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental-type or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($25,000 for infrastructure type assets) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2002 at the date these new financial reporting standards were implemented; and the City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives:

G. Compensated Absences Payable
The City records a liability to recognize the financial effect of unused vacation and other compensated leaves. The City typically uses the General Fund, Water Fund, and Wastewater Fund to liquidate the majority of its compensated absences.

H. Long-Term Debt
In the government-wide financial statements and in the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position.

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 or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

Asset Type Useful Life
Buildings and improvements 30 years
Public domain infrastructure 50 years
System infrastructure 10-40 years
Vehicles and equipment 5-10 years
Other Assets 2+ years
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED I. Deferred Outflows/Inflows of Resources, Continued
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 or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Net Position and Fund Balances
Net position is measured on the full accrual basis, while fund balance is measured on the modified accrual basis.

Government-Wide Financial Statements
Net position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position, which is determined only at the government-wide level, and are described below:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of governments.

Unrestricted – This amount is all net position that does not meet the definition of “investment in capital assets” or “restricted net position” as defined above.

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply to restricted net position first.

Fund Financial Statements
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified based on spending constraints imposed on the use of resources.

For programs with multiple funding sources, the City prioritizes and expends funds in the following order: restricted, committed, assigned, and unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable amounts are generally items not expected to be converted into cash such as inventories, prepaid items, and long-term receivables.

Restricted fund balances include those where constraints are placed on the uses of the resources externally imposed by grantors, contributors, other governments, or bylaws or regulations.

Committed fund balances are those that can only be used for a specific purpose as determined by resolution of the City Council. Such committed amounts may be redeployed for other uses only by resolution of the City Council.
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED J. Net Position and Fund Balances, Continued
Assigned fund balances amounts constrained by the City’s intent to be used for specific purposes as determined by the City Manager or Director of Administrative Services.

Unassigned fund balance amounts are the residual amounts reported only in the General Fund or amounts in funds reporting deficit fund balances.

When expenditures are incurred for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first. When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts, and then unassigned amounts.

K. Property Taxes
Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt.

Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April

10. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

L. Pension
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 Agency's California Public Employees' Retirement System (CalPERS) plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS.

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. The pension liability are allocated across the governmental, proprietary and fiduciary funds. The governmental portion is liquidated by the General Fund.
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED M. 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 required that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

The governmental portion is liquidated by the General Fund N. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

O. New Accounting Pronouncements
In 2023, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 91, Conduit Debt Obligations – The objective of this statement is 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.
 GASB Statement 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The 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.

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED O. New Accounting Pronouncements, Continued
 GASB Statement No. 96, Subscription-Based Information Technology Arrangements – The objective of this statement is to provide 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 rightto-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 as the balance was immaterial.

2. CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments held by trustees.

A. Summary of Cash and Investments
The following is a summary of the cash and investments at June 30, 2023:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 13,259,858 $ 6,383,193 $ 2,300,832 $ 21,943,883 $ Restricted Cash 2,375,000 - - 2,375,000
Cash with trustees - - 279,221 279,221
Total cash and investments $ 15,634,858 $ 6,383,193 $ 2,580,053 $ 24,598,104 Government-Wide Statement
of Net Position
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City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, CONTINUED
A. Summary of Cash and Investments, Continued
Cash and investments at June 30, 2023 consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was -$576,584 as of June 30, 2023. Bank balances before reconciling items were a positive amount of $2,080,307 at June 30, 2023. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Commission. 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.

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

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Pooled deposits $ (576,584)
Total cash on hand and deposits (576,584)
Local Agency Investment Funds (LAIF) 15,447
Sonoma County Investment Pool 204,691
California Asset Management Porgram (CAMP) 8,298,435
U.S. Treasury Bill 5,421,721
Liquidity Plus Program - Class Y 13,817
U.S. Treasury Bond / Note 795,528
Federal Agency Bond / Note 3,058,085
Corporate Bond / Note 4,712,743
Total investments 22,520,467
Total City Treasury 21,943,883
Investments with trustees 279,221
Cash held in escrow 2,375,000
Total cash and investments $ 24,598,104
55 136 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, CONTINUED
C. Investments Authorized by the Code and the City’s Investment Policy Investments are stated at fair value using the aggregate method in all funds, resulting in the following investment income in all funds for the year ended June 30, 2023:

The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. Generally, the City’s practice is to buy and hold investments until maturity and carry such investments at fair value.

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 included structure notes and asset-backed securities described below.

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.

Maximum Minimum Credit Maximum % Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer Bank/Time Deposits 5 years N/A None None
Treasury Obligations (bills, notes, & bonds) 5 years N/A 100% N/A U.S. Government Agency and Federal Agency Securities 5 years N/A 100% N/A Money Market Funds N/A N/A 20% 10%
Bankers Acceptances 180 days A1/P1 20% 5%
Commercial Paper 270 days A1/P1 25% 5%
Negotiable Certificates of Deposit 5 years N/A 30% N/A
Local Agency Investment Fund (LAIF) Upon Demand N/A Per Statute N/A Sonoma County Investment Pool (SCIP) Upon Demand N/A Per Statute N/A Joint Powers Authority Pool N/A Per Statute None N/A
California Asset Management Porgram (CAMP)/Caltrust N/A N/A None None CDs Nonnegotiable / CDARS 3 years N/A 30% 5%
Municipal Obligations 5 years A 5% 5%
Medium Term Notes 5 years A 30% 30%
Placement Service Deposits 5 years N/A 50% N/A
Supranational 5 years AAA 2% 2%
Interest income $ 462,611
Unrealized gain (loss) on changes in fair value of investments (75,582) Total investment income $ 387,029
56 137 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, CONTINUED
C. Investments Authorized by the Code and the City’s Investment Policy, Continued At June 30, 2023, the City had $15,447 invested in LAIF, which had invested 2.78% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.88% in the previous year. The LAIF fair value factor of 0.984828499 was used to calculate the fair value of the investments in LAIF.

The City is also a voluntary participant in the Sonoma County Investment Pool (County Pool) that is regulated by the County’s Investment Policy under the oversight of the Treasury of the County. The County does not provide the City with a fair value factor, and the City’s fair value of its position in the pool is the same as the value of the pool shares.

The City also participated in the California Asset Management Program (CAMP) which seeks to maintain a constant net asset value (NAV) per share of $1.00. The City had $8,298,435 invested in CAMP as of June 30, 2023.

The City held cash in escrow in the amount of $2,375,000 with an agreement with Caltrans to sell a property used as a park and ride lot within the City of Cotati and replacing it with two other park-andride lots within the County. The property sold is to be developed into a hotel with the objective of improved economic development.

D. Risk Disclosures
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates.

The City’s investment policy limits the City’s investment portfolio to maturities prescribed in Sections 53600 through 53609 of the California Government Code which for the City is securities with a maturity of five years or less at the time of purchase.

Investments held in the City Treasury grouped by maturity date at June 30, 2023 are as follow:
12 Months 13 to 24 More than
Investment Type Total or less Months 24 Months
Local Agency Investment Fund (LAIF) $ 15,447 $ 15,447 $ - $ - Sonoma County Investment Pool 204,691 204,691 - -
California Asset Management Porgram (CAMP) 8,298,435 8,298,435 - - U.S. Treasury Bill 5,421,721 5,421,721 - -
Liquidity Plus Program - Class Y 13,817 13,817 - -
U.S. Treasury Bond / Note 795,528 - 795,528 -
Federal Agency Bond / Note 3,058,085 - 1,529,605 1,528,480 Corporate Bond / Note 4,712,743 1,570,202 973,174 2,169,367 Total $ 22,520,467 $ 15,524,313 $ 973,174 $ 2,964,895
Investment Maturities (in Months)
57 138 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, CONTINUED
D. Risk Disclosures, Continued
The following table identifies the Standard & Poor’s credit quality ratings for those investments requiring this disclosure as of June 30, 2023:

Credit Risk: Generally, 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. It is the City’s policy to comply with state law as regards security ratings.

The City’s investment in mutual funds was rated Aaa by Moody’s Investor Service. LAIF and the Sonoma County Investment Pool are unrated.

Custodial Credit Risk: For an investment, custodial credit risk 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 party. The City’s investments in LAIF, the County Pool, and mutual funds are not subject to custodial credit risk.

E. Investment Valuation
Investments (except for money and market accounts, time deposits, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements are those that GASB Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Sonoma County Investment Pool, the State of California Local Agency Investment Fund Pool, the CAMP, the U.S.

Treasury Bill, and the Liquidity Plus Program – Class Y are not subject to levelling.

Type of Investment Rating Total
Federal Agency Bonds / Notes AA+ $ 3,058,085
Not Applicable:

U.S. Treasury Bill 5,421,721
Not Rated:

State Local Agency Investment Fund 15,447
Sonoma County Investment Pool 204,691
California Asset Management Porgram (CAMP) 8,298,435
Liquidity Plus Program - Class Y 13,817
U.S. Treasury Bond / Note 795,528
Corporate Bond / Note 4,712,743
Total Investments 22,520,467 $
58 139 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, CONTINUED
E. Investment Valuation, Continued
The following is a summary of the fair value measurements as of June 30, 2023:

F. Cash and Investments Held in Trust
The Cash and investments of the Successor Agency at June 30, 2023 consisted of $1,971,031 in bank deposits held by the City.

3. INTERFUND ACTIVITIES
A. Due To/From Other Funds
At June 30, 2023, the City had the following due to/from other funds:

Fair Value
Investments by fair value hierarchy
U.S. Treasury Bond / Note 795,528 $ $ - $ 795,528 $ -
Federal Agency Bond / Note 3,058,085 - 3,058,085 -
Corporate Bond / Note 4,712,743 - 4,712,743 -
Total investments by fair value hierarchy 8,566,356 $ - $ 8,566,356 $ - Investments not subject to fair value hierarchy
State Local Agency Investment Fund 15,447
Sonoma County Investment Pool 204,691
California Asset Management Porgram (CAMP) 8,298,435
U.S. Treasury Bill 5,421,721
Liquidity Plus Program - Class Y 13,817
Total investments not subject to fair value hierarchy 13,954,111 Total investments measured at fair value $ 22,520,467
Fair Value Measurements Using
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservab
le Inputs
(Level 3)
Due From
General
Due To Fund
Grants Fund 29,755 $
Nonmajor Governmental Funds 42,065
Water Fund 1,473,410
Wastewater Fund 1,411,371
Total 2,956,601 $
59 140 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

3. INTERFUND ACTIVITIES, CONTINUED
B. Advances to/From Other Funds
At June 30, 2023, the City had the following advances to/from other funds:

In October 2014, the City initiated an interfund loan between the Wastewater Fund to the Water Fund which was used to finance the Phase 2 meter replacement project. The advance is due in quarterly installments of $26,117 through September 30, 2030 and bears annual interest at a rate of 1.5%.

On May 15, 2019, upon completion of P-1 Wastewater Pipeline project, as adopted by Council Resolution 2019-18, the City initiated an inter-fund loan between In-lieu Inclusionary Housing to the Wastewater Fund for a total of $1,000,000 to be repaid over a period of 20 years in annual installments of $67,498 annually and at an annual interest rate of 3%.

C. Transfers
During the year ended June 30, 2023, the City had the following transfers in/out:

The transfers out of the General Fund and nonmajor governmental funds were primarily to provide funds to the City’s capital projects for infrastructure projects.

Inclusionary
Advance To Housing Fund Total
Wastewater Fund $ 783,432 $ 783,432
Total $ 783,432 $ 783,432
Advance From
General City Capital Grants Streets Bonds Nonmajor
Transfers Out Fund Projects Fund Fund Projects Fund Governmental Total General Fund - $ 1,127,421 $ 2,209,686 $ - $ 715,545 $ 4,052,652 $ Inclusionary Housing Fund - - - - - -
Grants Fund 124,182 - - - - 124,182
Street Bonds Project Fund - 3,497,014 561,198 - - 4,058,212 Nonmajor Governmental Funds 267,026 787,841 - 5,653,566 - 6,708,433 Total 391,208 $ 5,412,276 $ 2,770,884 $ 5,653,566 $ 715,545 $ 14,943,479 $ Transfers In
60 141 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

4. NOTES RECEIVABLE
The City’s loans receivable were comprised of the following at June 30, 2023:

The notes receivable consists of two notes with original principal of $767,000 plus $393,428 in deferred interest payable at maturity. The notes bear interest at 3% deferred until maturity of 2041 ($370,000) and 2058 ($397,000) and are secured by deeds of trust on housing projects.

5. LEASES RECEIVABLE
County of Sonoma Leachate Transfer
In October 2014, the City entered into a lease with the County of Sonoma. Under the lease, the lessee pays the City $34,673 per year through 2045 in exchange for the lessee’s right to connect to the City sewer and use excess capacity for transferring leachate. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 0.37% which is the Local Agency Investment Fund rate as of the implementation date. For the year ended June 30, 2023, the City recognized $34,673 of lease revenue and $2,986 of interest revenue under the lease.

Cingular Wireless
In August 2004, the City entered into a lease with Cingular Wireless. Under the lease, the lessee pays the City $2,200 per year for 5 years, in exchange for use of the cell tower site. The lease term shall be automatically extended for up to 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The City estimates that the lessee will extend the lease term until 2041. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 0.37% which is the Local Agency Investment Fund rate as of the implementation date. For the year ended June 30, 2023, the City recognized $2,113 of lease revenue and $149 of interest revenue under the lease.

Balance as of Accrued Total
Description June 30, 2023 interest Receivable
Note receivable, original principal $370,000 $ 370,000 $ 276,397 $ 646,397 Note receivable, original principal $397,000 397,000 140,041 537,041 Totals $ 767,000 $ 416,438 $ 1,183,438
61 142 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

5. LEASES RECEIVABLE, CONTINUED
The future lease payments on the leases as of June 30, 2023 were as follows:

6. CAPITAL ASSETS
Capital assets activity relating to governmental activities for the year ended June 30, 2023 was as follows:

Construction in progress at June 30, 2023 represents primarily costs incurred related to construction improvements to the City’s street system.

Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2024 33,706 $ 2,861 $ 2,058$ 142$ 35,764$ $ 3,003
2025 33,831 2,736 2,066 134 35,897 2,870
2026 33,957 2,610 2,073 127 36,030 2,737
2027 34,083 2,484 2,081 119 36,164 2,603
2028 34,209 2,358 2,089 111 36,298 2,469
2029-2033 172,958 9,877 10,561 183,519 439 10,316
2034-2038 176,191 6,644 10,758 186,949 242 6,886
2039-2043 179,483 3,352 6,553 186,036 47 3,399
2044-2045 72,729 406 - - 72,729 406
Total 771,147 $ $ 33,328 38,239$ 1,361$ 809,386$ 34,689$ Leachate Cell Tower Total
Balance at Balance at
July 1, 2022, Additions Retirements Transfers June 30, 2023 Governmental activities:

Nondepreciable capital assets:

Land 8,631,561 $ - $ $ - $ - $ 8,631,561
Construction in progress 5,194,204 8,446,520 (410,099) (7,724,952) 5,505,673 Total nondepreciable capital assets 13,825,765 8,446,520 (410,099) (7,724,952) 14,137,234 Depreciable capital assets:

Buildings 9,981,703 73,041 - 486,304 10,541,048
Machinery and equipment 722,586 - - - 722,586
Vehicles 1,691,384 270,402 - - 1,961,786
Improvements 22,726,098 529,171 - 7,238,648 30,493,917
Lease assets 34,874 - (34,874) - -
Total depreciable capital assets 35,156,645 872,614 (34,874) 7,724,952 43,719,337 Less accumulated depreciation:

Buildings (3,400,216) (207,839) - - (3,608,055)
Machinery and equipment (663,414) (70,521) - - (733,935) Vehicles (1,314,468) (63,254) - - (1,377,722)
Improvements (11,402,122) (654,339) - (12,056,461) -
Lease assets (24,347) - 24,347 - -
Total accumulated depreciation (16,804,567) (995,953) 24,347 - (17,776,173) Total depreciable capital assets, net 18,352,078 (123,339) (10,527) 7,724,952 25,943,164 Total capital assets $ 32,177,843 $ 8,323,181 $ (420,626) $ - $ 40,080,398 62 143 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. CAPITAL ASSETS, CONTINUED
For the year ended June 30, 2023, depreciation expense by program/function for capital assets was as follows:

Capital assets activity relating to business-type activities for the year ended June 30, 2023 was as follows:

For the year ended June 30, 2023, depreciation expense by program/function for capital assets was as follows:

Governmental activities:

General government 127,369 $
Public safety 116,179
Public works 512,126
Community development 125,622
Other internal service 114,657
Total depreciation expense $ 995,953
Balance at
July 1, 2022 Balance at
(as restated) Additions Retirements Transfers June 30, 2023 Business-type activities:

Nondepreciable capital assets:

Construction in progress $ - $ - $ - $ - $ -
Total nondepreciable capital assets - - - - -
Depreciable capital assets:

Water wells 1,451,506 - - - 1,451,506
Reservoirs 1,650,972 - - - 1,650,972
Improvements 1,311,602 - - - 1,311,602
Pipelines and collection system 16,177,988 1,050,379 - - 17,228,367 Equipment 84,872 - - - 84,872
Total depreciable capital assets 20,676,940 1,050,379 - - 21,727,319 Less accumulated depreciation:

Water wells (1,148,187) (31,228) - - (1,179,415)
Reservoirs (1,197,629) (28,334) - - (1,225,963)
Improvements (722,796) (102,132) - - (824,928)
Pipelines and collection system (5,525,963) (399,284) - - (5,925,247) Equipment (44,405) (7,760) - - (52,165)
Total accumulated depreciation (8,638,980) (568,738) - - (9,207,718) Total depreciable capital assets, net 12,037,960 481,641 - - 12,519,601 Total capital assets $ 12,037,960 $ 481,641 $ - $ - $ 12,519,601 Business-type activities:

Water 296,578 $
Wastewater 272,160
Total depreciation expense $ 568,738
63 144 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

7. COMPENSATED ABSENCES
Compensated absences activity for the year ended June 30, 2023 was as follows:

8. LONG-TERM DEBT
The following is a summary of the City’s long-term debt activity for the year ended June 30, 2023:

A. Lease Obligation
The City in fiscal year 2018 entered into a $34,474 lease agreement for the use of two copy machines. The lease arrangement is a right to use arrangement and ownership of the assets does not pass to the City.

The term is for 5 years, bears interest at 6.215 percent and is payable in monthly installments of $678.

There were no variable payments, residual value guarantee payments or penalty payments not previously included in the lease arrangement. The lease agreement was paid off in FY2023.

Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year Governmental Activities:

Compensated absences payable 355,725 $ 310,754 $ (365,939) $ 300,540 $ 233,340 $ Business-Type Activities:

Compensated absences payable 196,009 60,983 (88,076) 168,916 148,884 Total 551,734 $ 371,737 $ (454,015) $ 469,456 $ 382,224 $ Balance at Balance at Due Within
July 1, 2022 Additions Reductions June 30, 2023 One Year Governmental Activities:

Lease obligation $ 3,993 $ - $ (3,993) $ - $ -
City of Cotati Series 2022A lease obligaion 2,102,254 5,653,566 (271,110) 7,484,710 279,920 City of Cotati Series 2022B lease obligaion 4,087,760 - (212,530) 3,875,230 221,190 Total $ 6,194,007 $ 5,653,566 $ (487,633) $ 11,359,940 $ 501,110 64 145 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

8. LONG-TERM DEBT, CONTINUED
B. Series 2022A Lease Obligation
In 2022, the City entered into a lease/leaseback agreement with First Foundation Public Finance to finance the streets improvement project. Under the agreement, the City leased certain real property situated in the City of Cotati to First Foundation Public Finance. The City then leased back the property in exchange for lease payments due semiannually through 2041. The lease has a stated discount rate of

2.45%.

C. Series 2022B Lease Obligation
In 2022, the City entered into a lease/leaseback agreement with First Foundation Public Finance to finance a portion of its unfunded Accrued Liability to California Public Employees Retirement System.

Under the agreement, the City leased certain real property situated in the City of Cotati to First Foundation Public Finance. The City then leased back the property in exchange for lease payments due semiannually through 2036. The lease has a stated discount rate of 3.33%.

Fiscal Year Principal Interest Total
2024 $ 279,920 $ 181,661 $ 461,581
2025 286,820 174,761 461,581
2026 293,890 167,690 461,580
2027 301,130 160,446 461,576
2028 308,550 153,022 461,572
2029-2033 1,660,680 647,201 2,307,881
2034-2038 2,139,740 430,552 2,570,292
2039-2043 2,213,980 114,065 2,328,045
Totals $ 7,484,710 $ 2,029,398 $ 9,514,108
Fiscal Year Principal Interest Total
2024 $ 221,190 $ 127,204 $ 348,394
2025 228,620 119,777 348,397
2026 236,300 112,099 348,399
2027 244,230 104,165 348,395
2028 252,430 95,963 348,393
2029-2033 1,395,150 346,830 1,741,980
2034-2038 1,297,310 96,271 1,393,581
Totals $ 3,875,230 $ 1,002,309 $ 4,877,539
65 146 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

9. LONG-TERM DEBT WITH NO CITY COMMITMENT
The special assessment bonds were issued in an original amount of $4,007,977 for the purpose of refunding the Cotati 2001 Limited Obligation Improvement Bonds which were issued to facilitate a wetlands mitigation project. The bonds are secured solely by assessments levied against property owners within the assessment district and from monies on deposit in a reserve fund. The City has no obligation to advance funds for payment of bond debt service. The City has indicated, however, that it may at its own option and in its sole discretion, elect to advance funds to pay bond debt service to the extent of delinquencies and has done so in previous years. The bonds bears an interest rate of 2.95% and matures in 2034. The outstanding balance as of June 30, 2023 was $3,272,610.

10. DEFINED BENEFIT PENSION PLANS
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors six rate plans (three miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan 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 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law. 66 147 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. DEFINED BENEFIT PENSION PLANS, CONTINUED
Benefits Provided, Continued
The rate plan provisions and benefits in effect at June 30, 2023 are summarized as follows:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are to be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the measurement period ended June 30, 2022 were $1,372,022.

Tier 1 Tier 2 PEPRA
Hire date Prior to 4/27/2011 4/27/2011 to 12/31/2012 On or after 1/1/2013 Benefit formula 2.7% @ 55 with 2% COLA 2.0% @ 60 with 2% COLA 2.0% @ 62 with 2% COLA Final average compensation period 12 months 12 months 36 months Benefit vesting schedule 5 year service 5 year service 5 year service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 556062
Monthly benefits as a % of eligible
compensation 2.70% 2.00% 2.00%
Required employee contribution rates 8.00% 7.00% 6.75%
Required employer contribution rates 14.03% 9.12% 7.47% Required unfunded liability payment $663,899 $8,159 $10,299 Tier 1 Tier 2 PEPRA
Hire date Prior to 7/1/2011 7/1/2011 to 12/31/2012 On or after 1/1/2013 Benefit formula 3.0% @ 50 with 2% COLA 2.0% @ 50 with 2% COLA 2.7% @ 57 with 2% COLA Final average compensation period 36 months 36 months 36 months Benefit vesting schedule 5 year service 5 year service 5 year service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 505057
Monthly benefits as a % of eligible
compensation 3.00% 2.00% 2.70%
Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 22.47% 18.17% 12.78% Required unfunded liability payment $385,125 $5,169 $6,206 Miscellaneous Plans
Safety Plans
67 148 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. DEFINED BENEFIT PENSION PLANS, CONTINUED
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $6,814,583.

The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportionate share of the net pension liability was based on the City’s plan liability and asset-related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City’s proportionate share of the net pension liability for the Plan as of the measurement date of June 30, 2021 and 2022 were as follows:

For the year ended June 30, 2023, the City recognized pension expense of $2,929,470. At June 30, 2023 the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Proportion - June 30, 2022 0.05900%
Proportion - June 30, 2021 0.12436%
Change - Increase (decrease) -0.06536%
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience 202,086 $ (83,723) $
Changes in assumptions 693,273 -
Net differences between projected actual earnings
and actual earnings on plan investments 1,170,903
Changes in employer's proportion - (5,788,732)
Differences between the employer's
contributions and the employer's
proportionate share of contributions 3,853,786 (115,025) Pension contributions subsequent to
the measurement date 898,680 -
Total $ 6,818,728 $ (5,987,480)
68 149 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. DEFINED BENEFIT PENSION PLANS, CONTINUED
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The City reported $898,680 as deferred outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

Fiscal Year
Ending June 30,
2024 (300,825) $
2025 (286,875)
2026 (229,785)
2027 750,053
2028 -
Thereafter -
Investment Rate of Return 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality (1) Derived using CalPERS Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
(1)Derived using CalPERS’ Membership Data for all Funds. The mortality table was developed based on CalPERS specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website 69 150 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. DEFINED BENEFIT PENSION PLANS, CONTINUED
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

The expected real rates of return by asset class are as follows:

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Agency’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Agency’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Payable to the Pension Plan
At June 30, 2023 the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

Assumed Asset
Asset Class (1) Allocation Real Return (1)(2)
Global Equity - cap-weighted 30.00% 4.45%
Global Equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study. 1% Decrease Current Discount Rate 1% Increase

5.90% 6.90% 7.90%
Net Pension Liability $ 12,637,312 $ 6,814,583 $ 2,038,569 70 151 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City’s defined benefit OPEB Plan provides OPEB for all eligible full-time general and public safety employees of the City. The City’s plan is a single-employer defined benefit OPEB Plan administered by the City. The City Council, through resolutions and regulations, has the authority to establish and amend the benefit terms. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement Number 75.

Benefits Provided
The City’s OPEB Plan provides healthcare benefits to eligible retirees and their dependents. Benefits are provided through third party insurers, and the full cost of the benefits is provided by the Plan Participants.

Employees Covered by the Benefit Terms – At June 30, 2023, the following employees were covered by the benefit terms:

The City’s OPEB Plan is closed to new entrants. The OPEB Plan amortization period is closed.

Contributions – The City’s plan is affiliated with the Redwood Empire Municipal Insurance Fund (REMIF) insofar as the City’s health insurance premium payments are paid to REMIF. REMIF, through an aggregation of single employer plans, pools administrative functions in regard to purchases of commercial health insurance policies and coverages. City regulations grant authority to the City Council to establish and amend contribution requirements. Employees are not required to contribute to the plan. Plan contributions are based upon an actuarially determined rate. For the year ended June 30, 2023, the City’s average contribution rate was .003 percent of covered employee payroll. The amount contributed for fiscal 2023 was $11,440 which amount was the amount of City paid benefit payments.

Actuarial Assumptions – The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement unless otherwise specified:

Inactive employees or beneficiaries currently receiving benefits 3 Inactive employees entitled to but not yet receiving benefit payments - Active employees 37
Total 40
Actuarial Assumptions
Inflation 2.30% per year
Salary increases 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021
Discount rate 4.13%
Healthcare cost trend rates Based on 2022 Getzen model that reflects actual premium increases from 2022 to 20231, followed by 6.50% non-Medicare / 5.40% Medicare decreasing gradually to an ultimate rate of 3.94% in 2075 71 152 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
Changes in the Total OPEB Liability
The changes in the total OPEB liability during the measurement period were as follows:

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.13 percent) or 1-percentage point higher (5.13 percent) than the current discount rate.

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates 1-percentage point (1 percent) lower or higher than the current healthcare cost trend rates:

Total OPEB
Liability
Balance at June 30, 2022 207,715 $
Changes for the year:

Service cost 8,782
Interest 8,623
Changes in assumptions (698)
Differences between expected and actual experience 4,463 Benefit payments (11,440)
Net changes 9,730
Balances at June 30, 2023 217,445 $
1% Decrease Current Discount Rate 1% Increase

3.13% 4.13% 5.13%
Total OPEB Liability $ 235,830 $ 217,445 $ 200,909
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase

5.50% non-Medicare /

4.40% Medicare- 2.94%

6.50% non-Medicare /

5.40% Medicare- 3.94%

7.50% non-Medicare /

6.40% Medicare - 4.94%
Total OPEB Liability $ 195,819 $ 217,445 $ 242,784
72 153 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST-EMPLOYMENT BENEFITS (OPEB), CONTINUED
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of negative $9,541. At June 30, 2023, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Payable to the OPEB Plan
At June 30, 2023, no amount was payable to the OPEB Plan.

12. DEFICIT FUND BALANCE AND NET POSITION AND EXPENDITURES IN EXCESS OF

APPROPRIATIONS
The following funds reported deficit fund balances or net positions at June 30, 2023:
 Low Income Housing Fund – Negative $4 is primarily due to the allocation of Fair Market Value adjustments for LAIF and the US Bank Trust Account.
 Community Facilities District Fund – Negative $112 is primarily due to zero out the negative claim on cash prior to allocation of interest and Fair Market Value.  RMRA Fund – Negative $395 is primarily due to the reversal and repost of interest allocation.  Private Purpose Trust Fund – Negative $3,920,323 is primarily due to the outstanding tax allocation bond liability, (see note 15).

The following funds had expenditures in excess of appropriations:
 General Fund has expenditures in excess of appropriations of $338,406.  Landscape and Lighting Fund has expenditures in excess of appropriations of $40.  K-9 Program Fund has expenditures in excess of appropriations of $859.  Debt Service Fund has expenditures in excess of appropriations of $379,344.

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience 4,120 $ (64,076) $
Changes in assumptions 11,971 (11,564)
Total $ (75,640) 16,091 $
Fiscal Year
Ending June 30,
2024 (7,864) $
2025 (7,864)
2026 (7,864)
2027 (7,864)
2028 (7,864)
Thereafter (20,229)
73 154 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

13. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City, due to the costs of available coverage, participates as a member of the California Intergovernmental Risk Authority (CIRA).

CIRA provides joint protection programs for public entities covering automobile, general liability, errors and omissions, property and workers compensation claims. Under the program, the City has a $5,000 retention limit similar to a deductible with CIRA being responsible for losses above that amount up to $500,000 for liability losses, $1,000,000 for workers compensation claims, and $25,000 for property damage. The Fund carries purchased excess commercial liability insurance of $39.5 million in excess of its $500,000 limit, and a commercial property policy for $300 million. Financial information pertaining to CIRA can be obtained from its administrative offices at 2330 Eat Bidwell Suite 150, Folsom, CA 95630 Liabilities of the City are reported in the statement of net assets for when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are re-evaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors.

The City’s only exposure to claim liabilities would be for losses, if any, not covered by CIRA. There have been no significant changes in insurance coverages in fiscal 2023. Settlements have not exceeded coverage for each of the past four fiscal years. The City has no material claim liabilities at June 30, 2023. However, during the fiscal year 2019, the Redwood Empire Municipal Insurance Fund, the predecessor joint power authority to CIRA board approved both a workers compensation and general liability fund assessments covering a period of six and five years respectively.

Changes in the balance of claims liabilities during the year ended June 30, 2023 were as follows:

14. CONTINGENCIES AND COMMITMENTS
Litigation - The City is involved in litigation incurred in the normal course of conducting City business.

Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

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

Workers
Compensation
General
Liability Totals
Liability - July 1, 2022 48,143 $ $ 17,467 $ 65,610
Claims Incurred - - -
Claims Payments (24,072) (17,467) (41,539)
Changes to prior year estimates - - -
Liability - June 30, 2023 $ 24,071 $ - $ 24,071
74 155 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

14. CONTINGENCIES AND COMMITMENTS, CONTINUED
Encumbrances - The City establishes encumbrances to record the amount of purchase orders, contracts, and other obligations, which have not yet been fulfilled, cancelled or discharged, at June 30, 2023, total governmental funds encumbrance balances for the City were:

15. JOINTLY GOVERNED ORGANIZATIONS AND OPERATING AGREEMENTS Jointly governed organizations are legal entities or other organizations that result from a contractual arrangement and that are owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing financial responsibility. The City is a participant in the following organizations other than the insurance authority described in the preceding notes. The City is a party to the following agreement:

Sonoma County Water Agency - The City has an agreement with the agency for the purchase of water as the City does not have sufficient capacity to operate its own water service. The City's obligations under this agreement are to pay to the Agency its share of the costs of providing the water and operating related systems.

The City records these payments as operating expenses in its water enterprise fund.

Sonoma County Public Safety Consortium (SCPSC) - was formed by a joint powers agreement on July 1, 2008 to efficiently and effectively operate, maintain and improve a public safety communication and data management system in Sonoma County. As a member, the City pays its proportionate share percentage of the total costs incurred by the SCPSC and records these payments as operating expenses within the general fund.

16. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY A. The Dissolution Process
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the financial reporting entity of the City of Cotati that previously had reported a redevelopment agency within the financial reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the Successor Agency to hold assets until they are distributed to other units of State and local government. The City Council of Cotati elected to have the City become the Successor Agency for the former Redevelopment Agency.

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

Encumbrances
General fund $ 266,873
Grants fund 909,057
City capital project fund 648,719
75 156 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

16. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY,

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

The bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

The City’s position on these issues is not a position of settled law and there is considerable legal uncertainty regarding these issues. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority or other authorized body that would resolve any of the dissolution matters unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and financial activities of the dissolved Redevelopment Agency are reported in a fiduciary fund (the private–purpose trust fund) in the financial statements of the City of Cotati. The assets and liabilities of the privatepurpose trust are excluded from the Government-wide Statement of Net Position of the City of Cotati and the Statement of Activities of the City of Cotati because fiduciary fund assets are not available in any fashion for use by the City.

B. Enforceable Obligations
Changes in enforceable obligations for the year ended June 30, 2023 were as follows:

Balance Balance Due Within
Private Purpose Trust Fund: July 1, 2022 Additions Deletions June 30, 2023 One Year 2020 Tax Allocation Bond $ 7,754,781 $ - $ (96,000) $ 7,658,781 $ 667,827 Total $ 7,754,781 $ - $ (96,000) $ 7,658,781 $ 667,827
76 157 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

16. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY,

CONTINUED
B. Enforceable Obligations, Continued
Tax Allocation Refunding Bonds 2020
On July 1, 2020, the California Department of Finance approved the issuance and sale of tax allocation refunding bonds by the Cotati Community Successor Agency to the Former Redevelopment Agency.

Refunding Bonds under the Dissolution Act - Section 34177.5 of the Health & Safety Code, which was added to the Dissolution Act by AB 1484, authorizes the Successor Agency to issue bonds for the purpose of refunding outstanding obligations of the Redevelopment Agency or the Successor Agency to provide savings to the Successor Agency. On July 28, 2021, the Agency refunded the obligations issued by the former Redevelopment Agency reducing the interest rate. Interest and principal on the bonds is payable each March 1 and September 1 through 2035. The bonds bear interest at rate of 1.290%percent. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $102,619, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $2,557,497 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1,859,770.

Tax Allocation Pledged Revenues
The former Redevelopment Agency had pledged future tax increment revenues to pay debt service on the 2020 Tax Allocation Bonds. At June 30, 2023, total principal and interest remaining on the Successor Agency’s bonds is $8,213,455.

Fiscal Year Principal Interest Total
2024 $ 667,827 $ 94,491 $ 762,318
2025 672,278 85,847 758,125
2026 698,995 77,002 775,997
2027 710,093 67,914 778,007
2028 719,948 58690 778,638
2029-2033 3,294,326 131,349 3,425,675
2034-2037 895,314 39,381 934,695
Totals $ 7,658,781 $ 554,674 $ 8,213,455
77 158 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

17. FUND BALANCE CLASSIFICATION
As of June 30, 2023, fund balances were classified as shown below.

Committed
Contingency Reserve
The City Council has established by resolution to allow the City to weather unpredicted cyclical and rapid downtowns in the economy. These funds would be available for use in such conditions to mitigate negative economic fiscal impact or State takeaways. An economic downtown would entail a projected and/or sudden drop in core revenues of equal to or greater than 10% and/or a change in economic parameters that cause a material change in expenditures of 10% or more, or the occurrence of local natural disaster or unexpected financial claim requiring the immediate use of cash balances.

18. DEFERRED COMPENSATION PLAN
The City established a Mission Square 457 deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan available to all City employees, provides tax-deferred savings and/or a retirement supplement. Employees made contributions through payroll deductions, and the City provides matching contribution for certain groups of employees as negotiated within each MOU. Full-time regular employees with Tier 2 or Tier 3 ("PEPRA") pension benefits are eligible to participate in a City matching deferred compensation plan. Provided the total City contribution to Tier 2 or Tier 3 pension benefits remains under twenty percent (20%) of the employee's base salary, the City will match employee contributions to the City's deferred compensation plan, up to a maximum of three percent (3%) of base salary. During fiscal year 2023, the City incurred $58,793 of expense and had a zero related liability as of June 30, 2023.

Inclusionary Low Income Nonmajor
General Housing Housing Grants City Capital Streets Bonds Governmental Fund Fund Fund Fund Project Fund Project Fund Funds Total Nonspendable: $ 248,017 $ - $ - $ - $ - $ - $ 248,017 - $ Subtotal 248,017 - - - - - 248,017 -
Restricted:

Affordable housing 3,086,138 - - - - 300,694 - 3,386,832 Public safety - - - - - - 44,836 44,836
Streets - - - - 3,363,337 - 927,273 4,290,610
Park and ride lot 2,375,000 - - - - 121,694 - 2,496,694 Public education - - - - - - 68,854 68,854
Capital projects - - - - - 133,236 - 133,236
Subtotal 2,375,000 3,086,138 - - 3,363,337 - 1,596,587 10,421,062 Committed:

Emergencies 2,361,957 - - - - - 2,361,957 -
Capital projects - - - 33,137 216,927 - 250,064 -
Subtotal 2,361,957 - - 33,137 216,927 - 2,612,021 -
Unassigned 5,238,307 - (4) - - - (1,192) 5,237,111
Total $ 10,223,281 $ 3,086,138 $ (4) $ 33,137 $ 216,927 $ 3,363,337 $ 1,595,395 $ 18,518,211 78 159 of 458
City of Cotati
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

19. SUBSEQUENT EVENT
The City purchased a land at La Plaza View for $1,652,350 on December 19, 2023. 79 160 of 458
80 161 of 458
81 162 of 458
82 163 of 458

BUDGET AND BUDGETARY ACCOUNTING
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund, inclusionary housing fund, and debt service fund. The capital projects fund is appropriated on a project-length basis. Other special revenue funds do not have appropriated budgets since other means control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year. Low income housing fund holds balance sheet activity for notes issued for inclusionary housing projects, as such it does not have revenue and expenditures or related adopted budget.

The appropriated budget is prepared by fund, function, and department. The government’s department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.

Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds. Encumbrances outstanding at year end are reported as a restriction, commitment or assignment of fund balances since they do not constitute expenditures or liabilities and are reappropriated in the following year. Unexpended appropriations lapse at year end and must be reappropriated in the following year. 83 164 of 458
City of Cotati
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ 2,066,039 2,012,395 $ 1,967,056 $ (98,983) $ Sales taxes 6,040,000 6,070,000 6,024,055 (15,945)
Other taxes 611,000 751,000 651,507 40,507
Licenses and permits 566,350 539,100 684,245 117,895
Intergovernmental 359,407 359,342 161,573 (197,834)
Charges for services 526,355 406,050 737,190 210,835
Interest and rents 119,400 103,900 336,127 216,727
Miscellaneous 76,709 23,700 299,096 222,387
Total revenues 10,365,260 10,265,487 10,860,849 495,589 EXPENDITURES:

General government:

City Council (597,464) (629,257) 141,150 (738,614)
City manager/city clerk 655,376 626,989 689,672 (34,296) Administrative services 303,418 293,745 421,651 (118,233) Public safety:

Police 4,240,298 4,496,125 4,077,803 162,495
Community development 923,725 1,136,689 921,758 1,967
Public works:

Public works, parks, buildings 1,883,791 1,868,024 1,720,195 163,596 Total expenditures 8,018,594 7,633,823 7,972,229 (338,406)

REVENUES OVER (UNDER)
EXPENDITURES 2,246,893 2,731,437 2,888,620 157,183
OTHER FINANCING SOURCES (USES):

Proceeds from sale of capital assets - 2,000,000 - 2,000,000 Proceeds from long term debt - - 714 714
Transfers in 179,322 906,493 391,208 (515,285)
Transfers (out) (4,506,629) (6,070,204) (4,052,652) 2,017,552 Total other financing sources (uses) (4,327,307) (5,163,711) (1,660,730) 3,502,981 Net change in fund balances (2,080,414) (2,432,274) 1,227,890 3,660,164 FUND BALANCES:

Beginning of year 7,557,839 4,003,704 8,995,391 1,437,552 End of year $ 1,923,290 $ 5,125,565 $ 10,223,281 $ 5,097,716 Budgeted Amounts
84 165 of 458
City of Cotati
Required Supplementary Information
Budgetary Comparison Schedule - Inclusionary Housing Fund For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 100,624 67,499 $ 83,039 $ (17,585) $ Total revenues 100,624 67,499 83,039 (17,585)
EXPENDITURES:

General government:

City Council 250,000 - - 250,000
Total expenditures 250,000 - - 250,000

REVENUES OVER (UNDER)
EXPENDITURES (149,376) 67,499 83,039 232,415
Net change in fund balances (149,376) 67,499 83,039 232,415 FUND BALANCES:

Beginning of year 1,729,544 2,287,188 3,003,099 1,273,555 End of year $ 2,354,687 $ 1,580,168 $ 3,086,138 $ 1,505,970 Budgeted Amounts
85 166 of 458
City of Cotati
Required Supplementary Information
Budgetary Comparison Schedule - Low Income Housing Fund For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ - $ - $ (4) $ (4)
Total revenues - - (4) (4)

REVENUES OVER (UNDER)
EXPENDITURES - - (4) (4)
Net change in fund balances - - (4) (4)
FUND BALANCES:

Beginning of year - - -
End of year $ - $ - $ (4) $ (4)
Budgeted Amounts
86 167 of 458
City of Cotati
Required Supplementary Information
Budgetary Comparison Schedule - Grants Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 1,242,501 (2,662,100) $ 1,281,911 $ 39,410 $ Total revenues 1,242,501 (1,562,100) 1,281,911 39,410
EXPENDITURES:

Public safety:

Police - 112,421 195,487 (83,066)
Community development 160,000 90,000 63,475 26,525
Capital outlay 2,387,900 5,439,860 3,136,881 2,302,979
Total expenditures 2,547,900 5,642,281 3,395,843 2,246,438

REVENUES OVER (UNDER)
EXPENDITURES (4,110,000) (4,399,780) (2,113,932) 2,285,848 OTHER FINANCING SOURCES (USES):

Transfers in 4,110,000 4,471,960 2,770,884 (1,701,076)
Transfers (out) - - (124,182) (124,182)
Total other financing sources (uses) 4,110,000 4,471,960 2,646,702 (1,825,258) Net change in fund balances $ - $ 72,180 33,137 $ 460,590 FUND BALANCES:

Beginning of year -
End of year $ 33,137
Budgeted Amounts
87 168 of 458
City of Cotati
Required Supplementary Information
For the year ended June 30, 2023

DEFINED BENEFIT PENSION PLANS
Schedule of the City's Proportionate Share of the Net Pension Liability - Last Ten Fiscal Years Fiscal Year End: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 City's proportion of the net pension liability 0.05900% 0.12436% 0.99640% 0.10214% City's proportionate share of the net pension liability 6,814,583 $ 6,725,519 $ 10,841,096 $ 10,466,093 $ City's covered payroll (plan year) 3,794,622 $ 3,810,492 $ 3,601,857 $ 3,297,800 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 179.59% 176.50% 300.99% 317.37% City's fiduciary net position as a percentage of the
total pension liability 76.68% 88.29% 75.10% 75.26%
Notes to the schedule:
*Benefit changes: In fiscal year 2022-2023 there were no benefit changes. *Changes in assumptions: In fiscal year 2019-2020, the plan's discount rate was changed to 7.00%. *Fiscal year 2015 was the 1st year of implementation, therefore there are fewer than 10 years shown.

Schedule of Pension Contributions - Last Ten Fiscal Years Contributions for the fiscal year
ending June 30, 2023 2022 2021 2020
Contractually required contribution 898,680 $ 1,372,022 $ 1,272,801 $ 1,144,938 $ Contributions in relation to the
contractually required contribution (898,680) (7,372,022) (1,272,801) (1,144,938) Contribution deficiency (excess) - $ (6,000,000) $ - $ - $ City's covered payroll (City's fiscal year) 3,945,112 $ 3,794,622 $ 3,810,492 $ 3,601,857 $ Contributions as a percentage of covered payroll 22.78% 194.28% 33.40% 31.79% Notes to the schedule:
*Fiscal year 2015 was the 1st year of implementation, therefore there are fewer than 10 years shown.

Actuarial cost method
Amortization method/period
Inflation
Investment rate of return
Salary increase
Mortality Derived using CalPERS' Membership Data for all funds.

The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90% of
Scale MP 2016 published by the Society of Actuaries
The actuarial methods and assumptions used to set the actuarially determined contribution for FY2021 were derived from June 30, 2019 funding valuation report.

Entry age normal cost method
Level percent of pay, direc rate smoothing; Period differs by employer rate paln but not more than 30 years

2.500%

7.00% net of investment and administrative expense
Vary by category, entry age, and duration of service
88 169 of 458
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.10525% 0.10666% 0.11214% 0.12248% 0.11983%
$ 10,577,410 10,142,246 $ 9,703,297 $ 8,406,983 $ 7,456,420 $ $ 2,921,800 3,066,402 $ 2,935,345 $ 2,789,822 $ 2,224,998 $ 330.75% 362.02% 330.57% 301.34% 335.12%

75.26% 73.31% 74.06% 78.40% 79.82%
2019 2018 2017 2016 2015
$ 1,293,940 $ 1,153,203 $ 1,004,742 1,069,601 $ 771,201 $ (1,293,940) (1,153,203) (1,069,601) (1,004,742) (771,201) $ - $ - $ - $ - $ -
$ 3,297,800 $ 3,066,402 $ 2,935,345 2,921,800 $ 2,789,822 $

39.24% 37.61% 36.61% 34.23% 27.64%
89 170 of 458
City of Cotati
Required Supplementary Information
For the year ended June 30, 2023

OTHER POST EMPLOYMENT BENEFIT PLANS (OPEB)
Schedule of Changes in the City's Total OPEB Liability and Related Ratios - Last Ten Fiscal Years FY2022/23 FY2021/22 FY2020/21 FY 2019/20 FY 2018/19 FY 2017/18 Total OPEB liability -
beginning of year $ 218,599 207,715 $ 276,582 $ 299,337 $ 289,775 $ 361,662 $ Service cost 11,414 8,782 10,515 10,004 9,106 13,394
Interest 4,922 8,623 7,403 10,563 11,183 12,975
Changes in benefit terms - - (61,104) - - -
Changes in assumptions (1,324) (698) 8,266 (2,762) 9,123 (14,780) Differences between
expected and actual
experience (15,324) 4,463 (5,375) (23,630) - (57,987)
Benefit payments (10,572) (11,440) (17,688) (16,930) (19,850) (25,489) Net change in total OPEB
liability (10,884) 9,730 (57,983) (22,755) 9,562 (71,887) Total OPEB liability - end of
year $ 207,715 217,445 $ 218,599 $ 276,582 $ 299,337 $ 289,775 $ Covered employee payroll $ 3,660,240 3,973,105 $ 3,640,289 $ 3,542,830 $ 3,143,993 $ 3,143,993 $ City's total OPEB liability as a
percentage of covered payroll 5.5% 5.7% 6.0% 7.8% 9.5% 9.2% Notes to the schedule:
*Changes in assumptions: In fiscal year 2022-2023, discount rate changed from 4.09% to 4.13% *Fiscal year 2018 was the 1st year of implementation, therefore there are fewer than 10 years shown. *Plan assets: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits.
90 171 of 458
91 172 of 458
92 173 of 458

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Landscape and Lighting Fund accounts for funds received through parcel tax assessments that are used for the purpose of financing the maintenance costs and improvement expenses of each district's landscaping and lighting zones.

Gas Taxes Fund accounts for funds received from the City of Cotati's share of the Highway Users Tax collected by the State from gasoline sales. The Highway Users Tax is also known as the "Motor Vehicle Fuel Tax" and "Gasoline Excise Tax." Proceeds are restricted to the operation and maintenance of city streets.

Bed Tax is a building permit fee which is required to be used for the acquisition, improvement, expansion, and maintenance of public parks, playgrounds, open spaces, recreation facilities, and community facilities.

Park In-Lieu Fee Fund accounts for funds received from development and used for park development and improvements as specified in the fee program.

MTC Street Fund is utilized for revenues received for transportation and streets programs and funded by the Metropolitan Transportation Commission (MTC) or the Sonoma County Transportation Authority (SCTA). The MTC is the transportation planning, financing, and coordinating agency for the nine-county San Francisco Bay Area. In November of 2004, Sonoma County passed the Traffic Relief Act (Measure M) which provides 0.25% sales tax that is used to maintain local streets, accelerate the widening of Highway 101, restore and enhance transit services, support the development of passenger rail service, and build safe bicycle and pedestrian routes.

The Sonoma County Transportation Authority (SCTA) administers sales tax receipts and distributions of the Sonoma County Measure M revenues.

Traffic Mitigation Fund accounts for funds received from development and used for street improvements as specified in the fee program.

Road Maintenance Rehabilitation Account (RMRA) Fund is used to account for funding received from the State related to Senate Bill 1 - The Road Repair and Accountability Act of 2017. This new fuel tax, which began on November 1, 2017, is to be used to fund local streets and roads maintenance and rehabilitation projects including streets, traffic signals, and drainage improvements.

Congress in March 2021 called the American Rescue Plan Act (ARPA). Of the Act's $1.9 trillion, $350 billion is being distributed to state and local governments as part of the Fiscal Recovery Fund which is to be expended to provide governmental services to the extent of the reduction in revenue due to COVID-19.

Community Development Special Projects Fund is a special revenue fund that holds restricted funding for various minor funding sources.

Community Development Block Grant (CDBG) funds are administered by the county and may be used for projects that benefit low and moderate income residents or increase accessibility. The funding is used to improve accessibility or remove barriers to accessibility in public facilities, streets, and parks.

Special Revenue Funds are a group of accounts established by a government for restricted use to ensure that certain revenue sources are used or earmarked only for their specific purpose. This Special Revenue Fund type may be used to account for the proceeds of specific revenue sources that are legally restricted by City Council policy for a specific purpose. The City's reports the following nonmajor special revenue funds:
93 174 of 458

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds (Continued)
Public Safety Fund accounts for the Citizens Option for Public Safety (COPS) program and other Public Safety related grants. The COPS program provides funding to local agencies for the purpose of public safety. The funds are to supplement and not supplant existing funding for front line services.

K-9 Program accounts for funds received from private donations that are utilized for the Police Department K-9 program which provides for police officers safety, narcotics enforcement, and community relations.

Affordable Housing-Linkage accounts for a fee charged to developers, which is then spent on affordable housing preservation or production.

PEG Grant Fund accounts for Public Education and Government access (PEG) grant funding special funds that are received by the City to support public, educational, and government transparency by broadcasting public meetings.

Community Facilities District Fund accounts for financing district that provides for funding specific facilities and services related to growth and development.

Capital Projects:

Capital Projects Unspent Bond Proceeds Fund accounts for excess funds available from previously issued bonds that are used for strategic one-time investments for economic development.

Capital Project Funds are established by a government to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary and trust funds). Not all government capital acquisitions need to be accounted for in that fund, such as police vehicles or copiers. 94 175 of 458
City of Cotati
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Landscape Parks Traffic
and Lighting Gas Taxes Bed Tax In-Lieu MTC Street Mitigation ASSETS
Cash and investments $ 87,524 $ 56,299 $ 33,062 $ 88,632 $ 86,261 $ 662,254 Taxes receivable 1,156 - - - 18,849 -
Accounts receivable 424 17,208 - - - -
Due from other governments - - - - - -
Total assets 89,104 73,507 33,062 88,632 105,110 662,254

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES
Liabilities:

Accounts payable 2,702 - - - - -
Due to other funds - - - - - -
Total liabilities 2,702 - - - - -
Fund Balances:

Restricted for affordable housing - - - - - -
Restricted for public safety - - - - - -
Restricted for streets 86,402 73,507 - - 105,110 662,254 Restricted for parks - - 33,062 88,632 - -
Restricted for public education - - - - - -
Restricted for capital projects - - - - - -
Unassigned - - - - - -
Total fund balances 86,402 73,507 33,062 88,632 105,110 662,254 Total liabilities, deferred inflows
of resources, and fund balances $ 89,104 $ 73,507 $ 33,062 $ 88,632 $ 105,110 $ 662,254 95 176 of 458
City of Cotati
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Community
Development Public
RMRA Projects ARPA 2021 CDBG Safety K-9 Program
ASSETS
Cash and investments $ - $ 19,843 $ - $ - $ 24,996 $ 41 Taxes receivable - 25,688 - - - -
Accounts receivable 15,182 - - - - -
Due from other governments - - - - - -
Total assets 15,182 45,531 - - 24,996 41

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES
Liabilities:

Accounts payable - - - - - 41
Due to other funds 15,577 26,376 - - - -
Total liabilities 15,577 26,376 - - - 41
Fund Balances:

Restricted for affordable housing - - - - - -
Restricted for public safety - 19,840 - - 24,996 -
Restricted for streets - - - - - -
Restricted for parks - - - - - -
Restricted for public education - - - - - -
Restricted for capital projects - - - - - -
Unassigned (395) (685) - - - -
Total fund balances (395) 19,155 - - 24,996 -
Total liabilities, deferred inflows
of resources, and fund balances $ 15,182 $ 45,531 $ - $ - $ 24,996 $ 41 96 177 of 458
Affordable Community Capital Projects Total Nonmajor
Housing Facilities Debt Service Unspent Bond Governmental Linkage PEG District Fund Proceeds Funds
$ 300,694 $ 46,170 $ - $ - 144,356 $ $ 1,550,132
- - - - - 45,693
- 22,684 - - - 55,498
- - - - - -
300,694 68,854 - - 144,356 1,651,323
- - - - 11,120 13,863
- - 112 - - 42,065
- - 112 - 11,120 55,928
300,694 - - - 300,694 -
- - - - - 44,836
- - - - 927,273 -
- - - - 121,694 -
- 68,854 - - - 68,854
- - - - 133,236 133,236
- (112) - - - (1,192)
300,694 68,854 (112) - 133,236 1,595,395
$ 300,694 $ 68,854 $ - $ - 144,356 $ $ 1,651,323
97 178 of 458
98 179 of 458
City of Cotati
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Landscape Parks Traffic
and Lighting Gas Taxes Bed Tax In-Lieu MTC Street Mitigation REVENUES:

Property taxes $ - $ - $ - $ - $ - $ -
Sales taxes - - - - 81,928 -
Intergovernmental - 197,760 - - - -
Charges for services 52,036 - - - - 150,964
Interest and rents 2,938 1,339 1,087 2,344 1,138 16,426 Miscellaneous - - - - - -
Total revenues 54,974 199,099 1,087 2,344 83,066 167,390 EXPENDITURES:

Current:

General government - - - - - -
Public safety - - - - - -
Community development - - - - - -
Public works 84,931 5,235 - - - -
Capital outlay - - - - - -
Debt service:

Cost of issuance - - - - - -
Principal - - - - - -
Interest - - - - - -
Total expenditures 84,931 5,235 - - - -

REVENUES OVER (UNDER)
EXPENDITURES (29,957) 193,864 1,087 2,344 83,066 167,390

OTHER FINANCING
SOURCES (USES):

Proceeds from long term debt - - - - - -
Transfers in 25,274 - - - - -
Transfers (out) (10,945) (134,943) - - - (100,000)
Total other financing
sources (uses) 14,329 (134,943) - - - (100,000)
Net change in fund balances 58,921 (15,628) 1,087 2,344 83,066 67,390 FUND BALANCES (DEFICITS):

Beginning of year 102,030 14,586 31,975 86,288 22,044 594,864 End of year $ 86,402 $ 73,507 $ 33,062 $ 88,632 $ 105,110 $ 662,254 99 180 of 458
City of Cotati
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Community
Development Public
RMRA Projects ARPA 2021 CDBG Safety K-9 Program
REVENUES:

Property taxes $ - $ - $ - $ - $ - $ -
Sales taxes - 111,909 - - - -
Intergovernmental - - - - 186,252 -
Charges for services - 2,618 - - - -
Interest and rents 2,517 7,324 - - 3,142 -
Miscellaneous 167,377 - - - - 546
Total revenues 169,894 121,851 - - 189,394 546
EXPENDITURES:

Current:

General government - - - - - -
Public safety - - - - - 14,699
Community development - - - - - -
Public works - - - - - -
Capital outlay - - - - - -
Debt service:

Cost of issuance - - - - - -
Principal - - - - - -
Interest - - - - - -
Total expenditures - - - - - 14,699

REVENUES OVER (UNDER)
EXPENDITURES 169,894 121,851 - - 189,394 (14,153)

OTHER FINANCING
SOURCES (USES):

Proceeds from long term debt - - - - - -
Transfers in- - - - - 20,394
Transfers (out) (197,882) (344,070) - (77) (215,000) -
Total other financing
sources (uses) (197,882) (344,070) - (77) (215,000) 20,394 Net change in fund balances (222,219) (27,988) - (77) (25,606) 6,241 FUND BALANCES (DEFICITS):

Beginning of year 27,593 241,374 - 77 50,602 (6,241)
End of year $ (395) $ 19,155 $ - $ - $ 24,996 $ -
100
181 of 458
Affordable Community Capital Projects Total Nonmajor
Housing Facilities Debt Service Unspent Bond Governmental Linkage PEG District Fund Proceeds Funds
$ - $ - $ 35,265 $ - $ - $ 35,265
- - - - 193,837 -
- - - - 384,012 -
87,695 55,549 - - 348,862 -
6,335 803 879 - 1,250 47,522
- - - - 167,923 -
94,030 56,352 36,144 - 1,250 1,177,421
- 14,695 - - 37,433 52,128
- - - - - 14,699
- - - - - -
- - 2,921 - - 93,087
- - - - - -
- - - 376,251 - 376,251
- - - 487,633 - 487,633
- - - - - -
- 14,695 2,921 863,884 37,433 1,023,798
94,030 41,657 33,223 (863,884) (36,183) 153,623
- - - 5,847,573 5,847,573 -
- - - 669,877 - 715,545
- - (51,950) (5,653,566) (6,708,433) -
- - (51,950) 863,884 (145,315) -
94,030 41,657 (18,727) - (36,183) 8,308
206,664 27,197 18,615 - 169,419 1,587,087
$ 300,694 $ 68,854 $ (112) $ - $ 133,236 $ 1,595,395
101
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City of Cotati
Budgetary Comparison Schedule - Landscape and Lighting
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 53,124 51,168 $ 52,036 $ (1,088) $ Interest and rents 348 510 2,938 2,590
Total revenues 100,452 51,678 54,974 48,482
EXPENDITURES:

Public works:

Public works, parks, buildings 84,853 69,625 84,931 (78) Total expenditures 84,891 69,625 84,931 (40)

REVENUES OVER (UNDER)
EXPENDITURES 15,561 (17,947) (29,957) 48,442
Net change in fund balances $ 2,053 $ 15,561 (15,628) $ 62,771 FUND BALANCES:

Beginning of year 102,030
End of year $ 86,402
Budgeted Amounts
102
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City of Cotati
Budgetary Comparison Schedule - Gas Taxes
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 200,976 218,900 $ 197,760 $ (3,216) $ Interest and rents 300 300 1,339 1,039
Total revenues 201,276 219,200 199,099 (2,177)
EXPENDITURES:

Public works:

Public works, parks, buildings 5,240 5,200 5,235 5
Total expenditures 5,240 5,200 5,235 5

REVENUES OVER (UNDER)
EXPENDITURES 196,036 214,000 193,864 (2,172)
OTHER FINANCING SOURCES (USES):

Transfers (out) (135,000) (135,000) (134,943) 57
Total other financing sources (uses) (135,000) (135,000) (134,943) 57 Net change in fund balances $ 79,000 $ 61,036 58,921 $ (2,115) FUND BALANCES:

Beginning of year 14,586
End of year $ 73,507
Budgeted Amounts
103
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City of Cotati
Budgetary Comparison Schedule - Bed Tax
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 500 4,000 $ 1,087 $ 587 $
Total revenues 500 4,000 1,087 587
Net change in fund balances $ 44,000 $ 30,500 1,087 $ (29,413) FUND BALANCES:

Beginning of year 31,975
End of year $ 33,062
Budgeted Amounts
104
185 of 458
City of Cotati
Budgetary Comparison Schedule - Park In-Lieu
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ - 26,000 $ - $ - $
Interest and rents 150 - 2,344 2,194
Total revenues 150 26,000 2,344 2,194
Net change in fund balances $ (119,000) $ (144,850) 2,344 $ 147,194 FUND BALANCES:

Beginning of year 86,288
End of year $ 88,632
Budgeted Amounts
105
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City of Cotati
Budgetary Comparison Schedule - MTC Street
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales taxes $ 80,700 79,700 $ 81,928 $ 1,228 $
Interest and rents 70 - 1,138 1,068
Total revenues 80,770 79,700 83,066 2,296

REVENUES OVER (UNDER)
EXPENDITURES 80,770 79,700 83,066 2,296
Net change in fund balances $ 79,700 $ 80,770 83,066 $ 2,296 FUND BALANCES:

Beginning of year 22,044
End of year $ 105,110
Budgeted Amounts
106
187 of 458
City of Cotati
Budgetary Comparison Schedule - Traffic Mitigation
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ - 54,000 $ 150,964 $ 150,964 $
Interest and rents 1,000 - 16,426 15,426
Total revenues 1,000 54,000 167,390 166,390

REVENUES OVER (UNDER)
EXPENDITURES 1,000 54,000 167,390 166,390
OTHER FINANCING SOURCES (USES):

Transfers (out) (434,800) (434,800) (100,000) 334,800
Total other financing sources (uses) (434,800) (434,800) (100,000) 334,800 Net change in fund balances $ (380,800) $ (433,800) 67,390 $ 501,190 FUND BALANCES:

Beginning of year 594,864
End of year $ 662,254
Budgeted Amounts
107
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City of Cotati
Budgetary Comparison Schedule - Road Maintenance and Rehabilitation (RMRA) For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and rents $ 100 - $ 2,517 $ 2,417 $
Miscellaneous 155,000 135,000 167,377 12,377
Total revenues 155,100 135,000 169,894 14,794
OTHER FINANCING SOURCES (USES):

Transfers (out) (182,000) (135,000) (197,882) (15,882)
Total other financing sources (uses) (135,000) (182,000) (197,882) (15,882) Net change in fund balances $ - $ (26,900) (27,988) $ (1,088) FUND BALANCES:

Beginning of year 27,593
End of year $ (395)
Budgeted Amounts
108
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City of Cotati
Budgetary Comparison Schedule - Community Development Projects For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Sales taxes $ 85,000 85,000 $ 111,909 $ 26,909 $
Charges for services 2,500 2,500 2,618 118
Interest and rents 400 - 7,324 6,924
Total revenues 87,900 87,500 121,851 33,951
OTHER FINANCING SOURCES (USES):

Transfers (out) 260,000 260,000 (344,070) (84,070)
Total other financing sources (uses) 260,000 260,000 (344,070) (84,070) Net change in fund balances $ 347,500 $ 347,900 (222,219) $ (50,119) FUND BALANCES:

Beginning of year 241,374
End of year $ 19,155
Budgeted Amounts
109
190 of 458
City of Cotati
Budgetary Comparison Schedule - CDBG
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
OTHER FINANCING SOURCES (USES):

Transfers (out) - - (77) (77)
Total other financing sources (uses) - - (77) (77)
Net change in fund balances $ - $ - (77) $ (77)
FUND BALANCES:

Beginning of year 77
End of year $ -
Budgeted Amounts
110
191 of 458
City of Cotati
Budgetary Comparison Schedule - Public Safety
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 172,000 164,000 $ 186,252 $ 14,252 $ Interest and rents 120 - 3,142 3,022
Total revenues 172,120 164,000 189,394 17,274
OTHER FINANCING SOURCES (USES):

Transfers (out) (215,000) (179,000) (215,000) -
Total other financing sources (uses) (179,000) (215,000) (215,000) - Net change in fund balances $ (15,000) $ (42,880) (25,606) $ 17,274 FUND BALANCES:

Beginning of year 50,602
End of year $ 24,996
Budgeted Amounts
111
192 of 458
City of Cotati
Budgetary Comparison Schedule - K-9 Program
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Miscellaneous $ 550 - $ 546 $ (4) $
Total revenues 550 - 546 (4)
EXPENDITURES:

Public safety:

Police 7,340 7,340 14,699 (7,359)
Total expenditures 13,840 13,840 14,699 (859)

REVENUES OVER (UNDER)
EXPENDITURES (13,290) (13,840) (14,153) (863)
Net change in fund balances $ - $ 550 6,241 $ 5,691
FUND BALANCES:

Beginning of year (6,241)
End of year $ -
Budgeted Amounts
112
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City of Cotati
Budgetary Comparison Schedule - Affordable Housing Linkage For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ - - $ 87,695 $ 87,695 $
Interest and rents 350 - 6,335 5,985
Total revenues 350 - 94,030 93,680
Net change in fund balances $ - $ 350 94,030 $ 93,680
FUND BALANCES:

Beginning of year 206,664
End of year $ 300,694
Budgeted Amounts
113
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City of Cotati
Budgetary Comparison Schedule - PEG
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 20,000 20,000 $ 55,549 $ 35,549 $ Interest and rents 50 - 803 753
Total revenues 20,050 20,000 56,352 36,302
EXPENDITURES:

General government:

City Council 20,000 20,000 14,695 5,305
Total expenditures 20,000 20,000 14,695 5,305

REVENUES OVER (UNDER)
EXPENDITURES 50 - 41,657 41,607
Net change in fund balances $ - $ 50 41,657 $ 41,607
FUND BALANCES:

Beginning of year 27,197
End of year $ 68,854
Budgeted Amounts
114
195 of 458
City of Cotati
Budgetary Comparison Schedule - Community Facilities District For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property taxes $ 36,780 10,400 $ 35,265 $ 82,445 $
Interest and rents - - 879 879
Total revenues 36,780 10,400 36,144 83,324
EXPENDITURES:

Public works:

Public works, parks, buildings 4,200 10,078 2,921 1,279 Total expenditures 4,200 10,078 2,921 1,279

REVENUES OVER (UNDER)
EXPENDITURES 32,580 322 33,223 82,045
OTHER FINANCING SOURCES (USES):

Transfers (out) 50,000 322 (51,950) (101,950)
Total other financing sources (uses) 322 50,000 (51,950) (101,950) Net change in fund balances $ 644 $ 82,580 (18,727) $ (19,905) FUND BALANCES:

Beginning of year 18,615
End of year $ (112)
Budgeted Amounts
115
196 of 458
City of Cotati
Budgetary Comparison Schedule - Debt Service Fund
For the year ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
EXPENDITURES:

General government:

Administrative services $ 900 - $ - $ 900
Principal 483,640 - 487,633 (3,993)
Cost of issuance $ - - $ 376,251.00 (376,251) $
Total expenditures 484,540 - 863,884 (3,093)

REVENUES OVER (UNDER)
EXPENDITURES (484,540) - (863,884) 3,093
OTHER FINANCING SOURCES (USES):

Proceeds from sale of capital assets - - - -
Proceeds from long term debt - - 5,847,573 5,847,573
Transfers in 809,975 809,975 669,877 (140,098)
Transfers (out) (5,720,730) - (5,653,566) 67,164
Total other financing sources (uses) 809,975 (4,910,755) 863,884 5,774,639 Net change in fund balances $ 809,975 $ (5,395,295) 5,777,732 - $ FUND BALANCES:

Beginning of year -
End of year $ -
Budgeted Amounts
116
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INTERNAL SERVICE FUNDS
The Vehicle Replacement Fund accounts for vehicle replacement costs provided to other departments or other agencies of the government on a cost reimbursement basis.

The Compensated Absences Fund accounts for compensated absence costs provided to other departments or other agencies of the government on a cost reimbursement basis. 117
198 of 458
City of Cotati
Combining Statement of Net Position
Internal Service Funds
For the year ended June 30, 2023
Vehicle Compensated
Replacement Absences Total
ASSETS
Current assets:

Cash and cash equivalents $ 486,840 55,009 $ 541,849 $
Accounts receivable 4,214 - 4,214
Prepayments - - -
Total current assets 491,054 55,009 546,063
Noncurrent assets:

Capital assets:

Equipment - 1,961,784 1,961,784
Less accumulated depreciation - (1,429,124) (1,429,124) Net capital assets - 532,660 532,660
Total assets 491,054 587,669 1,078,723

LIABILITIES
Current liabilities:

Accounts payable - 116,953 116,953
Accrued liabilities 4,214 - 4,214
Claims and judgements - - -
Compensated absences 233,340 - 233,340
Interfund loans - - -
Deposits - - -
Total current liabilities 237,554 116,953 354,507
Noncurrent liabilities:

Compensated absences 67,200 - 67,200
Total noncurrent liabilities 67,200 - 67,200
Total liabilities 304,754 116,953 421,707

NET POSITION
Net investment in capital assets - 532,660 532,660
Unrestricted 186,300 (61,944) 124,356
Total net position $ 186,300 470,716 $ 657,016 $
118
199 of 458
City of Cotati
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2023
Vehicle Compensated
Replacement Absences Total
OPERATING REVENUES:

Charges for services $ 214,523.00 - $ 214,523 $
Total operating revenues 214,523 - 214,523
OPERATING EXPENSES:

Personnel services 158,640 - 158,640
Supplies and materials - - -
Depreciation - 114,656 114,656
Total operating expenses 158,640 114,656 273,296
OPERATING INCOME (LOSS) 55,883 (114,656) (58,773)
NONOPERATING REVENUES (EXPENSES):

Interest and investment revenues 12,873 4,463 17,336
Total nonoperating revenues (expenses) 12,873 4,463 17,336 Change in net position 68,756 (110,193) (41,437)
NET POSITION:

Beginning of year 117,544 580,909 698,453
End of year $ 470,716 $ 186,300 $ 657,016
119
200 of 458
City of Cotati
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2023
Total
Vehicle Compensated Internal Service
Replacement Absences Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Interfund charges for services $ 214,523 - $ 214,523 $
Payments to suppliers - 116,953 116,953
Payments to employees (214,523) - (214,523)
Net cash provided by (used in) operating activities - 116,953 116,953

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchase of capital assets - (270,401) (270,401)
Net cash provided by (used in)
capital and related financing activities - (270,401) (270,401) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest receipts 12,873 4,463 17,336
Net cash provided by (used in) investing activities 12,873 4,463 17,336 Net cash flows 12,873 (148,985) (136,112)
CASH AND CASH EQUIVALENTS - Beginning of year 473,967 203,994 677,961 CASH AND CASH EQUIVALENTS - End of year $ 486,840 55,009 $ 541,849 $

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

Operating income (loss) $ 55,883 (114,656) $ (58,773) $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense - 114,656 114,656
Changes in assets and liabilities:

Receivables, net (4,214) - (4,214)
Prepayments - - -
Accounts payable - 116,953 116,953
Net pension liability - - -
Other liabilities (51,669) - (51,669)
Net cash provided by (used in) operating activities $ 116,953 $ 116,953 - $ 120
201 of 458
121
202 of 458
122
203 of 458
City of Cotati
Schedule of Measure S Revenues and Uses
For the year ended June 30, 2023
REVENUES:

Measure S revenues $ 3,097,031
Total Measure S revenues 3,097,031
USES:

Operations and maintenance:

Street, sidewalk and storm drain 154,563
Public safety program 890,447
Recreation program 394,148
Park and landscape program 117,998
Public building program 121,366
Capital improvements and equipment:

Street, sidewalk and storm drain 576,026
Public safety program 140,451
Park and landscape program 409,563
Public building program 277,599
State administrative fees 14,870
Total Measure S uses $ 3,097,031
123
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124
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125
206 of 458
126
207 of 458
Index
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Cotati’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 127
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128
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2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Restated Restated Restated Restated
Governmental Activities
Net Investment in capital assets 13,276,973 $ 13,863,366 $ 16,517,962 $ 18,192,860 $ 20,039,682 $ 21,808,218 $ 25,878,148 $ 27,881,695 $ 30,483,120 $ 29,236,283 $ Restricted 6,013,891 5,253,384 5,648,440 6,775,373 7,450,051 5,830,201 5,595,389 5,697,447 7,419,345 14,194,599 Unrestricted 3,410,860 (2,719,089) (1,392,655) (957,876) (257,960) 1,822,203 231,153 2,041,252 1,492,392 (182,412) Total governmental activities net position 22,701,724 $ 16,397,661 $ 20,773,747 $ 24,010,357 $ 27,231,773 $ 29,460,622 $ 31,704,690 $ 35,620,394 $ 39,394,857 $ 43,248,470 $ Business-type activities
Net Investment in capital assets 7,290,428 $ 7,474,048 $ 9,001,287 $ 9,250,509 $ 8,864,388 $ 13,104,759 $ 12,534,830 $ 12,602,934 $ 12,037,960 $ 12,519,601 $ Restricted 6,797,239 6,153,822 4,535,027 3,783,904 4,517,050 102,103 Unrestricted 3,223,345 2,463,815 2,753,618 3,486,382 2,735,965 2,710,421 3,852,645 3,109,741 3,436,675 2,099,469 Total business-type activities net position 17,311,012 $ 16,091,685 $ 16,289,932 $ 16,520,795 $ 16,117,403 $ 15,917,283 $ 16,387,475 $ 15,712,675 $ 15,474,635 $ 14,619,070 $ Primary government
Net Investment in capital assets 20,567,401 $ 21,337,414 $ 25,519,249 $ 27,443,369 $ 28,904,070 $ 34,912,977 $ 38,412,978 $ 40,484,629 $ 42,521,080 $ 41,755,884 $ Restricted 12,811,130 11,407,206 10,183,467 10,559,277 11,967,101 5,932,304 5,595,389 5,697,447 7,419,345 14,194,599 Unrestricted 6,634,205 (255,274) 1,360,963 2,528,506 2,478,005 4,532,624 4,083,798 5,150,993 4,929,067 1,917,057 Total primary government net position 40,012,736 $ 32,489,346 $ 37,063,679 $ 40,531,152 $ 43,349,176 $ 45,377,905 $ 48,092,165 $ 51,333,069 $ 54,869,492 $ 57,867,540 $ Note: The city implemented GASB Statement Number 34 in fiscal year ending June 30, 2004. The information in this schedule is therefore set forth prospectively from the initial year of implementation.Source of information: Audited financial statements

CITY OF COTATI
TABLE 1

NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
129
210 of 458
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Expenses: Restated Restated Restated Restated
Governmental Activities
General government 1,357,022 $ 1,837,502 $ 1,729,742 $ 1,311,401 $ 1,382,139 $ 2,499,291 $ 1,808,561 $ 1,332,803 $ 1,804,038 $ 3,199,265 $ Public safety 2,680,871 3,041,510 2,676,142 2,628,760 3,733,774 3,410,242 4,081,647 4,186,303 4,219,712 4,404,168 Community development 349,845 610,472 1,070,087 427,963 439,133 581,558 644,933 972,578 1,672,689 1,610,576 Public works 944,288 1,258,811 1,844,032 1,736,094 1,830,007 1,948,935 1,993,763 1,857,882 2,406,759 2,325,407 Interest on long-term debt 329,055 315,034 306,313
- 1,911 965 190,521 506,426
Total governmental activities expenses 5,661,081 $ 7,063,329 $ 7,626,316 $ 6,104,218 $ 7,385,053 $ 8,440,026 $ 8,530,815 $ 8,350,531 $ 10,293,719 $ 12,045,842 $ Business-type activities
Water 1,490,030 $ 1,289,046 $ 1,422,854 $ 1,623,862 $ 1,816,685 $ 1,737,323 $ 2,086,615 $ 2,324,983 $ 2,040,153 $ 2,301,068 $ Wastewater 2,116,443 2,153,501 2,224,574 2,421,786 2,723,983 2,734,699 2,931,726 3,439,883 3,617,797 3,726,683 Total business-type activities expenses 3,606,473 $ 3,442,547 $ 3,647,428 $ 4,045,648 $ 4,540,668 $ 4,472,022 $ 5,018,341 $ 5,764,866 $ 5,657,950 $ 6,027,751 $ Total primary government expenses 9,267,554 $ 10,505,876 $ 11,273,744 $ 10,149,866 $ 11,925,721 $ 12,912,048 $ 13,549,156 $ 14,115,397 $ 15,951,669 $ 18,073,593 $ Program revenues:

Governmental Activities
Charges for services
General government 172,858 $ 457,148 $ 112,018 $ 165,292 $ 165,598 $ 554,930 $ 930,779 $ 995,882 $ 1,360,912 $ 1,240,293 $ Public safety 65,070 92,496 121,292 120,841 95,170 437,647 328,557 309,572 248,916 294,419 Community development 333,856 198,539 783,105 770,643 734,913 271,021 304,005 908,994 447,194 410,008Public works 254,078 567,312 94,862 394,040 679,712 114,508 117,783 109,433 56,890 144,361 Operating grants and contributions 390,886 342,433 431,468 679,146 428,962 301,544 850,304 743,354 2,274,436 1,525,040 Capital grants and contributions 1,587,557 136,500 4,113,824 697,062 2,122,200 - - - - -
Total governmental activities program revenues 2,804,305 $ 1,794,428 $ 5,656,569 $ 2,827,024 $ 4,226,555 $ 1,679,650 $ 2,531,428 $ 3,067,235 $ 4,388,348 $ 3,614,121 $ Business-type activities
Charges for services
Water 1,365,452 $ 1,301,372 $ 1,371,858 $ 1,559,828 $ 1,694,915 $ 1,733,794 $ 2,137,569 $ 2,214,793 $ 2,334,947 $ 2,087,050 $ Wastewater 2,194,823 2,101,749 2,360,902 2,048,481 2,214,960 2,381,342 3,205,145 2,822,407 3,083,753 2,911,124 Operating grants and contributions -
-
- 30,000
- - - - - -
Capital grants and contributions 251,155 90,457 112,915 701,166 610,674 - - - - -
Total business-type activities program revenues 3,811,430 $ 3,493,578 $ 3,845,675 $ 4,339,475 $ 4,520,549 $ 4,115,136 $ 5,342,714 $ 5,037,200 $ 5,418,700 $ 4,998,174 $ Total primary government revenues 6,615,735 $ 5,288,006 $ 9,502,244 $ 7,166,499 $ 8,747,104 $ 5,794,786 $ 7,874,142 $ 8,104,435 $ 9,807,048 $ 8,612,295 $ Net revenues (expenses)
Governmental Activities (2,856,776) $ (5,268,901) $ (1,969,747) $ (3,277,194) $ (3,158,498) $ (6,760,376) $ (5,999,387) $ (5,283,296) $ (5,905,371) $ (8,431,721) $ Business-type activities 204,957 51,031 198,247 293,827 (20,119) (356,886) 324,373 (727,666) (239,250) (1,029,577) Total net revenues (expenses) (2,651,819) $ (5,217,870) $ (1,771,500) $ (2,983,367) $ (3,178,617) $ (7,117,262) $ (5,675,014) $ (6,010,962) $ (6,144,621) $ (9,461,298) $ General revenues and other changes in net position

CITY OF COTATI
TABLE 2

CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
130
211 of 458
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23

CITY OF COTATI
TABLE 2

CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental Activities Restated Restated Restated Restated Taxes:

Property taxes 1,673,084 $ 1,266,681 $ 1,652,877 $ 1,472,627 $ 1,544,849 $ 1,734,281 $ 1,813,280 $ 1,774,242 $ 1,902,006 $ 2,002,321 $ Sales taxes 2,902,504 3,616,732 4,075,204 4,222,473 4,145,877 5,109,211 5,091,824 6,004,019 6,418,733 6,217,892 Other taxes 598,985 567,114 603,792 678,955 829,535 907,508 1,054,055 1,192,032 1,344,773 1,302,352 Incremental property taxes -
Interest and rents 104,179 92,831 44,094 76,785 137,294 339,211 286,349 228,707 14,322 568,048 Other general revenues 179,822 31,169
- 2,000,000
Special item (420,000)
Extraordinary item -
Transfers 60,500 90,500 - 62,964 161,053
- 194,721
Total governmental activities 5,099,074 $ 5,665,027 $ 6,375,967 $ 6,513,804 $ 6,818,608 $ 8,090,211 $ 8,245,508 $ 9,199,000 $ 9,679,834 $ 12,285,334 $ Business-type activities
Other revenues - $
- $ 156,766 $ 145,819 $ 52,866 $ 1,210 $ 174,012 $
Transfers (60,500) (90,500) - (62,964) (161,053)
Total business-type activities (60,500) $ (90,500) $ - $ (62,964) $ (161,053) $ 156,766 $ 145,819 $ 52,866 $ 1,210 $ 174,012 $ Total primary government 5,038,574 $ 5,574,527 $ 6,375,967 $ 6,450,840 $ 6,657,555 $ 8,246,977 $ 8,391,327 $ 9,251,866 $ 9,681,044 $ 12,459,346 $ Changes in net position
Governmental Activities 2,242,298 $ 396,126 $ 4,406,220 $ 3,236,610 $ 3,660,110 $ 1,329,835 $ 2,246,121 $ 3,915,704 $ 3,774,463 $ 3,853,613 $ Business-type activities 144,457 (39,469) 198,247 230,863 (181,172) (200,120) 470,192 (674,800) (238,040) (855,565) Total primary government 2,386,755 $ 356,657 $ 4,604,467 $ 3,467,473 $ 3,478,938 $ 1,129,715 $ 2,716,313 $ 3,240,904 $ 3,536,423 $ 2,998,048 $ Source of information: Audited financial statements
131
212 of 458
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Restated Restated Restated Restated
General fund:

Reserved - $ - $ - $ - $ - $ - $ - $ - $ - $ - $Unreserved - - - - - - - - - - Nonspendable 55,152 60,517 42,311 26,778 51,017 51,112 82,937 95,835 485,752 248,017 Restricted for park and lot - - - - - - - - - 2,375,000 Committed for special projects 45,000 45,000 45,000 45,000 - - - - - - Committed for emergencies 120,000 120,000 120,000 120,000 1,400,254 1,700,118 1,910,969 1,910,969 2,131,107 2,361,957 Assigned for encumbrances - - - - - - - - 142,939 -
Unassigned 2,951,695 2,738,671 3,753,034 4,362,879 4,286,690 5,498,960 5,297,547 7,210,913 6,235,593 5,238,307 Total general fund 3,171,847 $ 2,964,188 $ 3,960,345 $ 4,554,657 $ 5,737,961 $ 7,250,190 $ 7,291,453 $ 9,217,717 $ 8,995,391 $ 10,223,281 $ All other governmental funds:

Reserved - - - - - - - - - -
Unreserved - - - - - - - - - - Nonspendable
Restricted for affordable housing 3,446,494 3,252,244 3,101,038 $ 3,136,427 3,272,449 3,314,901 $ 3,397,943 $ 3,489,015 $ 3,466,109 $ 3,386,832 $ Restricted for community development - - - - - - - - - - Restricted for public safety 88,827 44,420 141,656 149,404 113,934 23,243 35,328 15,307 58,528 44,836 Restricted for streets 481,733 350,947 332,857 490,272 1,055,063 777,091 690,712 607,918 761,117 4,290,610 Restricted for parks
472
2,108 2,317 314,861 281,825 188,139 31,114 123,264 345,470 121,694 Restricted for public education 65,535 2,332 7,214 15,665 23,325 10,290 14,678 20,053 27,197 68,854 Restricted for debt service 764,912 850,397 919,278 930,095 943,984 - - - - - Restricted for recycling 115,283 115,283 5,310 - - - - - - - Restricted for special projects 633,476 637,761 1,141,087 701,184 689,995 550,549 - - - - Restricted for capital projects 534,791 1,044,483 754,678 293,080 - - 308,410 272,082 1,878,764 133,236 Committed for capital projects - - - - 568,484 269,262 298,205 274,728 274,805 250,064 Assigned - - - - - - 24,718 55,435 - -
Unassigned - - - - - - (479,495) (94,058) (445,490) (1,196) Total other governmental funds' net position 6,131,523 $ 6,299,975 $ 6,405,435 $ 6,030,988 $ 6,949,059 $ 5,133,475 $ 4,321,613 $ 4,763,744 $ 6,366,500 $ 8,294,930 $ Total Governmental Funds 9,303,370 $ 9,264,163 $ 10,365,780 $ 10,585,645 $ 12,687,020 $ 12,383,665 $ 11,613,066 $ 13,981,461 $ 15,361,891 $ 18,518,211 $ Note: The city of Cotati implemented GASB Statement Number 54 in fiscal year 2011. Implementation is done prospectively as the City did not have the information to restate prior year fund balance classifications.Source of information: Audited financial statements

CITY OF COTATI
TABLE 3

FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
132
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2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Restated Restated Restated Restated
Revenues:

Property taxes 1,673,084 $ 1,266,681 $ 1,652,877 $ 1,472,627 $ 1,544,847 $ 1,734,281 $ 1,813,280 $ 1,774,242 $ 1,902,006 $ 2,002,321 $ Sales taxes 2,904,515 3,667,261 4,128,500 4,332,626 4,261,452 5,172,427 5,154,685 6,004,019 6,418,733 6,217,892 Other taxes 105,204 110,345 46,314 44,041 173,119 401,685 509,572 646,454 720,920 651,507 Licenses and permits 440,722 402,151 502,033 521,507 544,780 515,547 546,010 624,513 689,807 684,245 Fines and forfeits 42,429 109,435 235,551 4,839 - - - - - - Intergovernmental 2,012,895 575,014 1,350,366 998,301 424,872 643,120 779,480 1,612,970 2,432,231 1,827,496 Charges for services 885,542 908,956 1,201,768 1,450,185 1,515,847 699,800 717,283 1,551,512 1,467,493 1,265,308 Interest and rents 122,575 106,107 85,921 112,270 206,880 332,626 297,910 223,267 19,684 550,713 Miscellaneous 203,606 341,905 107,382 150,298 222,104 270,375 431,445 296,622 399,661 467,019 Total revenues 8,390,572 $ 7,487,855 $ 9,310,712 $ 9,086,694 $ 8,893,901 $ 9,769,861 $ 10,249,665 $ 12,733,599 $ 14,050,535 $ 13,666,501 $ Expenditures:

Current:

General government 1,110,637 1,442,092 1,635,238 1,276,704 879,854 1,126,300 1,189,649 1,385,817 2,012,707 1,304,601 Public safety 2,551,265 2,831,831 2,915,581 2,991,798 3,349,442 3,715,188 3,607,872 3,965,857 7,581,747 4,287,989 Community development 335,514 610,472 476,483 427,963 439,133 581,558 644,933 719,621 1,340,858 1,484,954 Public works 568,563 855,454 1,088,141 1,137,856 1,074,822 1,458,531 1,390,244 1,430,423 2,254,601 1,813,282 Capital Outlay 2,159,960 1,429,863 2,320,464 2,650,334 795,748 2,020,839 4,178,919 2,853,309 5,472,060 8,603,758 Debt Service:

Principal retirement 158,506 130,000 135,000 145,000 158,022 6,331 6,736 7,167 197,636 487,633 Interest and fiscal charges 331,655 317,850 309,238 300,138 291,432 1,801 1,911 965
507376,251
Total Expenditures 7,216,100 $ 7,617,562 $ 8,880,145 $ 8,929,793 $ 6,988,453 $ 8,910,548 $ 11,020,264 $ 10,363,159 $ 18,860,116 $ 18,358,468 $ 1,174,472 (129,707) 430,567 156,901 1,905,448 859,313 (770,599) 2,370,440 (4,809,581) (4,691,967) Other financing sources (uses):

Contributions from successor agency
$ -
- $ 701,184 $ - $ - $ - $ - $ - $ - $ - $
Proceeds of sale of property - - - - - - - -
-2,000,000
Right of use lease financing - - - - 34,874 - - - - -
Proceeds from long term debt - - - - - - - - 6,190,011 5,848,287Transfers in 975,604 1,264,468 1,612,149 2,383,566 910,786 2,237,319 3,537,819 2,317,805 13,380,782 14,943,479 Transfers out (915,104) (1,173,968) (1,612,149) (2,320,602) (749,733) (2,452,003) (3,537,819) (2,317,805) (13,380,782) (14,943,479) Total business-type activities net position 60,500 90,500 701,184 62,964 195,927 (214,684) - - 6,190,011 7,848,287Net change in fund balances 1,234,972 $ (39,207) $ 1,131,751 $ 219,865 $ 2,101,375 $ 644,629 $ (770,599) $ 2,370,440 $ 1,380,430 $ 3,156,320 $

9.7% 7.2% 6.8% 7.1% 7.3% 0.1% 0.1% 0.1% 1.5% 8.9% Debt service as a percentage of noncapital expenditures

CITY OF COTATI
TABLE 4

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND DEBT SERVICE RATIO OF GOVERNMENTAL FUNDS Last Ten Fiscal Years
(modified accrual basis of accounting)
Excess (deficiency) of revenues over (under) expenditures 133
214 of 458

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THE CITY OF COTATI

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
FOR FISCAL YEAR 2022/23
2022/23 Assessed Valuation: $1,371,391,219
Total Debt Percent City’s Share
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/23 Applicable (1) of Debt 6/30/23
Sonoma County Joint Community College District $ 397,820,000 1.251% $ 4,976,728 Cotati-Rohnert Park Unified School District 160,099,505 16.157 25,867,277 City of Cotati 1915 Act Bonds 3,272,610 100.000 3,272,610

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $34,116,615
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Sonoma County General Fund Obligations $ 7,046,000 1.260% $ 88,780 Sonoma County Pension Obligation Bonds 204,945,000 1.260 2,582,307 Sonoma County Office of Education General
Fund Obligations 2,936,277 1.260 36,996
Cotati-Rohnert Park Unified School District
General Fund Obligations 1,365,403 16.157 220,608
City of Cotati General Fund Obligations 11,359,940 100.000 11,359,940 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $14,288,631 OVERLAPPING TAX INCREMENT DEBT (Successor Agency):$7,658,781 99.807% $7,644,000 TOTAL DIRECT DEBT $ 11,359,940
TOTAL OVERLAPPING DEBT $ 44,689,306
COMBINED TOTAL DEBT $ 56,049,246(2)
NOTES:
(1)
Ratios to 2022/23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt ....... 2.49% Total Direct Debt .................................................. 0.82% Combined Total Debt ............................................. 4.09% Ratios to Redevelopment Successor Agency Incremental Valuation ($631,748,704):

Total Overlapping Tax Increment Debt ................. 1.21% AB:($500)
146
227 of 458
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Total Assessed Value (A) 825,300,368 $ 889,389,372 $ 935,315,057 $ 994,845,787 $ 1,059,631,651 $ 1,138,272,113 $ 1,198,404,748 $ 1,243,952,169 $ 1,280,873,015 $ 1,371,391,219 $ Debt Limit (15% of Assessed Value) 123,795,055 133,408,406 140,297,259 149,226,868 158,944,748 170,740,817 179,760,712 186,592,825 192,130,952 205,708,683 Debt applicable to Limit:

General Obligation Bonds - - - - - - - - - -
Legal Debt Margin: 123,795,055 $ 133,408,406 $ 140,297,259 $ 149,226,868 $ 158,944,748 $ 170,740,817 $ 179,760,712 $ 186,592,825 $ 192,130,952 $ 205,708,683 $ Total net debt applicable to the limit as a
percentage of debt limit. 0.00% 0.00% 0.00% 0.00% 0.02% 0.01% 0.01% 0.01% 3.22% 5.52% Primary Government Long Term Debt
Lease Obligation - $ - $ - $ - $ 34,874 $ 25,521 $ 18,785 $ 11,618 $ 3,993 $ - $ City of Cotati Series 2022A - - - - - - - - City of Cotati Series 2022B - - - - - - - - Total - $ - $ - $ - $ 34,874 $ 25,521 $ 18,785 $ 11,618 $ 6,194,007 $ 11,359,940 $ Ratios of Total Long Term Debt
Personal Income 0.00% 0.00% 0.00% 0.00% 0.01% 0.01% 0.01% 0.00% 2.11% 3.57%Per Capita - $ - $ - $ - $ 5 $ 3 $ 2 $ 2 $ 837 $ 1,543 $ Supporting Demographic Information (B) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Population (Calendar Year)
7,288 7,302 7,153 7,272 7,716 7,919 7,533 7,429 7,397 7,360 Personal Income 265,458,000 $ 249,130,000 $ 241,231,000 $ 237,228,000 $ 253,562,000 $ 266,954,000 $ 270,187,000 $ 279,386,000 $ 293,587,000 $ 318,159,000 $ Per Capita Personal Income 36,424 34,118 33,724 32,622
32,861 33,710 35,867 37,607 39,689 43,228
(A) Source of information: Sonoma County Auditor-Controller-Treasurer-Tax Collector (B) See Demographic Statistics for personal income and population data.

CITY OF COTATI

LEGAL DEBT MARGIN AND INFORMATION
Last Ten Fiscal Years
147
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148
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Elected Officials
Staff Positions
City Manager

3.50 3.50 3.50 3.50 3.50 3.50 4.50 4.50 3.00 4.50
Recreation
-

1.00 1.50 2.50 2.30 3.20 2.70 2.80 2.80 2.70
Administrative Services

4.00 4.50 4.50 4.50 4.50 3.00 4.50 4.00 4.00 5.50
Planning & Building

3.00 4.00 4.00 4.00 3.00 3.00 3.00 3.70 3.50 4.50
Public Works

8.00 8.00 8.00 8.00 8.00 8.00 9.50 7.60 7.00 9.00
Police Services 25.00 25.50 20.50 19.50 19.50 20.50 20.50 18.60 16.40 22.20 Total 48.50 51.50 47.00 47.00 45.80 46.20 47.20 43.70 39.20 50.90

CITY OF COTATI
TABLE 13

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION
by Function
Last Ten Fiscal Years
149
230 of 458

THE CITY OF COTATI

OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
Percentage of Water
Total Operating Sales to Operating
Fiscal Year Water Sales Revenue Revenues
2012/13 1,240,584 1,312,403 94.5%
2013/14 1,277,987 1,361,650 93.9%
2014/15 1,195,750 1,296,539 92.2%
2015/16 1,260,006 1,363,734 92.4%
2016/17 1,358,350 1,548,697 87.7%
2017/18 1,658,332 1,675,135 99.0%
2018/19 1,731,383 1,733,795 99.9%
2019/20 1,866,191 1,929,407 96.7%
2020/21 2,046,966 2,214,793 95.8%
2021/22 1,919,788 2,334,947 82.2%
2022/23 2,025,933 2,087,050 97.1%
150
231 of 458

THE CITYOF COTATI

CAPITAL ASSETS STATISTICS BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Police Vehicles 5 5 5 5 6 6 6 6 6 6Public Works:

Street Miles 22 22 22 22 22 22 22 22 23 23Streetlights & vintage street lights 277 277 277 312 312 312 312 331 331 331Traffic Signals 7 7 7 8 8 8 8 8 8 8 Parks:

Parks 4 4 4 4 4 4 4 4 4
4 Community Center 1 1 1 1 1 1 1 1 1 1Community Garden 1 1 1 1 1 1 1 1 1 1Park Acreage 30.4 30.4 30.4 30.4 30.4 30.4 30.4 30.4 30.4 30.4Tennis Court 1 1 1 1 1 1 1 1 1 1Museum 1 1 1 1 1 1 1 1 1 1 Water:

Water main (miles) 30 30 30 30 30 30 30 30 30 30Fire hydrants 431 431 431 432 432 432 432 438 438 438 151
232 of 458
233 of 458
City of
Cotati
Cotati, California
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
For the year ended June 30, 2023
234 of 458
235 of 458

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 Cotati
Cotati, 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 Cotati, 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 January 26, 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 or significant deficiencies may exist that have not been identified. 236 of 458
To the Honorable Mayor and Members of the City Council
of the City of Cotati
Cotati, California

Page 2 ends

Cotati City CouncilFebruary 13, 2024

Cotati City Council
February 13, 2024