Escalon City Council
October 7, 2024

ITEM NO. 2

ITEM NO. 3

A PROCLAMATION OF THE ESCALON CITY COUNCIL RECOGNIZING THE MONTH OF OCTOBER, 2024, AS BREAST CANCER AWARENESS MONTH WHEREAS, Breast Cancer Awareness Month, held in October every year, aims to promote screening and prevention of the disease, which affects one in eight women in the United States every year and 2.3 million women worldwide; and
WHEREAS, Breast Cancer Awareness Month features a number of campaigns and programs conducted by groups ranging from breast cancer advocacy organizations to local community organizations to major retailers and professional sports leagues; and WHEREAS, thanks to early detection and better treatments, mortality rates for breast cancer have steadily decreased over the last decade; and WHEREAS, during National Breast Cancer Awareness Month, we stand with our grandmothers, mothers, daughters, sisters and friends, and we recognize all who have joined their loved ones in fighting their battle, as well as the advocates, researchers, and health care providers whose car and hard work gives hope to those living with breast cancer; and NOW, THEREFORE, I David Bellinger, Mayor of the City of Escalon, on behalf of the Escalon City Council, do recognize the month of October 2024 as Breast Cancer Awareness Month, and urge our fellow citizens to become aware of the impact that breast cancer has on our community and to take action to help diagnose early or seek preventative care for Breast Cancer, and to pay tribute to those who have lost their lives to this disease.

Dated this 7th day of October 2024
____________________________________
Mayor David Bellinger

ITEM NO. 4

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Jaylen French, Interim City Clerk
Date: October 1, 2024
Subject: Review and Approve the Minutes
Recommendation:

Approve the Minutes from the Regular Meeting of September 16, 2024

MINUTES
Escalon City Council
September 16, 2024

MINUTES

CITY COUNCIL OF THE CITY OF ESCALON
MEETING OF SEPTEMBER 16, 2024
City Council Chambers, 2060 McHenry Avenue -7:00 P.M.

Beginning Resolution No. 42-24
Beginning Ordinance No. 597
Beginning Minute Order No. 49-24
PRESENT: Mayor David Bellinger
Mayor Pro Tem Andrew Thomas Hagan
Councilmember Jeremy Engle
Councilmember Malinda Walker
Councilmember Shawn Strohman
STAFF PRESENT: Jaylen French, Interim City Manager
Diana Trejo, Assistant Planner
Celinda Bickner, Finance Director/HR Administrator (FDHRA) Robert Hardgraves, Chief of Police
Juston Collins, Public Works Superintendent/Manager (PWSM) Frank Splendorio, City Attorney

CONSENT CALENDAR
These items are considered routine in nature and are acted upon by a single action unless requested by an individual Council Member or member of the public for special consideration.

1. Approve the Minutes from the Meeting of August 19, 2024

2. Approve the Register of Demands for September 16, 2024 in the amount of $1,357,778.43

3. Adopt Resolution 42-24 Approving and Adopting an Amended Conflict of Interest Code Pursuant to the Political Reform Act of 1974

4. Accept the Crossroads Plaza Sidewalk Repair Project and Authorize the Deputy City Clerk to File the Notice of Completion

5. Adopt Resolution 43-24 Authorizing Submittal of Application and Acceptance of Grant Funding for the Bureau of Reclamation’s Watersmart Drought Response Program: Drought Resiliency Projects for Fiscal Year 2025 for the City of Escalon Connection to Nick DeGroot Water Treatment Plant Project
MOTION – It is moved/seconded by STROHMAN/HAGAN that items 1-5 of the consent calendar be approved as presented. Motion carried (5-0) MINUTE ORDER 49-24

MINUTES
Escalon City Council
September 16, 2024

STAFF COMMUNICATIONS & UPDATES

6. August Staff Updates
a. Treasurer’s Report for August
b. Police Department Report for August
c. Animal Control Report for August
d. Recreation Department Report for August
e. Development Services Report for August
f. Public Works Report for August
g. Building Department Report for August
h. Water Department Report for August
i. Waste Water Treatment Plant Report for August
j. Quarterly SJCOG Citizens Advisory Committee (CAC) Report k. City Manager’s Report (verbal)
FDHRA, Celinda Bickner noted that the register of demands included the full month as the last City Council meeting was canceled and therefore the prior register of demands was not approved.

Chief of Police, Robert Hardgraves notified the Council that the police officer recruitment had been extended, and provided an update on Oakdale Animal Shelter’s approach with feral cats and euthanasia.

PWSM, Juston Collins provided updates on the Carignane Lift Station and Crossroads Plaza sidewalk project.

Interim City Manager French informed the Council that:
- The FY 22-23 Audit would likely be before them for acceptance by October 7th Council meeting.
- The recruitment for the Administrative Assistant position was underway and that we had received strong interest thus far.
- The proposed Constitution training was being discussed with the labor units per the discussion at the prior Council meeting.
- The recently approved Fire 2+2 meetings would start after the new year as both Board and Council are in election season.
- The Baseball/Softball concept workshop was held recently and that the next step would be to take the item to the Recreation Commission and then to the City Council.

MATTERS PRESENTED FROM THE AUDIENCE
The public may address the City Council on any item that is on the Agenda at the time the item is called. The public may also address the City Council on any item not on the Agenda that is within the subject matter of the City of Escalon. Each speaker is limited to a maximum of five (5) minutes. Unused time may not be yielded to another speaker. You may state your name and address for the record; however, it is not required. Due to state law, action will not be taken on an item that is not on the Agenda and except for brief responses, the Council is prohibited from discussing any item not on the agenda. If it requires action, it will be referred to staff and/or

MINUTES
Escalon City Council
September 16, 2024

placed on a future Agenda. The determination of whether an item is within the subject matter of the City is a discretionary decision made by the Mayor.

Escalon resident Kurt Danziger inquired about the status of the Murphy Ranch Project.

Interim City Manager French indicated it was staff’s desire to hold a workshop with the community prior to any City decisions have been made and noted that City staff is coordinating with the applicant on this approach, who desired to hold the meeting after they have finalizing their application submittal.

ADMINISTRATIVE MATTERS

7. Introduce the Received Proposals from the Installation and Managed Operations of Wireless Networking Internet Services Backbone Request for Proposals and Seek Direction on Next Steps in the Selection Process
Interim City Manager French presented the staff report and introduced John Morriss from Spark Alliance, who assisted in preparing and managing the RFP.

Councilmember Engle inquired about the benefits of the T-Mobile option for local businesses, wondering if it would help expand business options in the City.

John Morriss explained that all businesses would have access to a wireless option, which is particularly helpful for those without wired options, which is common in rural areas. It would also enable business to increase their speed options and provide competitive options that drive down prices, making the internet more affordable.

Mayor Bellinger inquired about the $25,000 cost associated with T-Mobile. To which Interim City Manager French stated it was the cost to connect to T-Mobile’s system.

Mayor Pro Tem Hagan asked about the service level difference between T-Mobile and Ayera/EzWave.

John Morriss explained that T-Mobile is a competitive and robust Tier 1 option, while Tier 2 options like Ayera/EzWave may offer comparable technology, they may not be as scaled and robust and could coverage and redundancy.

Mayor Pro Tem Hagan further questioned the differences between the large and small providers. John Morriss highlighted that while performance might be similar when the technology runs, Tier 1 options like T-Mobile offer greater redundancy and reliability, with multiple towers and devices to maintain coverage even if one tower goes offline. Tier 2 options not have that level of redundancy.

Councilmember Engle confirmed that up and down speeds are the same across proposals.

Mayor Bellinger sought confirmation that the "City as an ISP" model would utilize an enterprise fund, and that revenue would not go to the General Fund and therefore expressed skepticism about its viability as an option due to its inability to benefit the City financially.

MINUTES
Escalon City Council
September 16, 2024

Mayor Pro Tem Hagan agreed with the Mayor's assessment on the City as an ISP option. As did Councilmember Engle, who believed that due to the upfront cost, this option did not make sense for the city at this time.

Councilmember Walker pointed out that revenue in an enterprise fund could cover technology costs for city facilities and contribute to covering some costs for the Police Department and Public Works.

Interim City Manager French mentioned in determining benefits of the City as an ISP option, some could consider the social benefit of offering low-cost internet to residents as a benefit.

Councilmember Walker acknowledged the potential future benefit but did not consider it a current option. She preferred City control over the price structure and independence from corporate control.

Mayor Pro Tem Hagan preferred the no-cost option and suggested that City staff further investigation any potential cost-sharing model with the local providers.

Councilmember Walker sought confirmation that any revenue sharing with EzWave or Ayera would go to the General Fund, not an enterprise fund. This was confirmed.

Mayor Bellinger preferred supporting local businesses and inquired about the ability to withdraw if dissatisfied with the service. Councilmember Strohman also asked about the City’s ability to end an agreement. Interim City Manager French explained that these were initial proposals and that any agreement would still needed to be negotiated and then approved by Council. The Council, at this meeting, could provide direction on specific terms they desired in a future agreement.

Councilmember Strohman inquired about which option would provide the city with the best technology into the future, considering the rapid pace of technological change. John Morriss assured that the RFP and the future agreement would require, to the greatest extent possible, each company to maintain its infrastructure and meet specific performance metrics for a particular class of service.

Councilmember Strohman asked if the city could consider other national companies besides T-Mobile.

City Attorney Frank Splendorio confirmed they could, but it would necessitate soliciting RFPs from those companies to obtain quotes and comparisons.

John Morriss mentioned the concept of Community Broadband, in which municipalities and schools cooperate to provide internet access to the community.

Councilmember Strohman suggested exploring whether other agencies would be interested in joining such an endeavor.

Mayor Bellinger inquired about required tower height. John Morriss explained that this varied depending on existing coverage and the technology utilized.

MINUTES
Escalon City Council
September 16, 2024

Councilmember Engle asked if it would be feasible to eliminate cellular service and rely solely on wireless internet, which he saw as a potential source of savings to the City. John Morriss acknowledged the potential for such a transition.

The item was then opened for public comments.

Escalon resident Cody Fowler clarified specifications with the consultant, and highlighted Ayera's advantage of having access to multiple providers. He also shared a negative experience working with EzWave. Mr. Fowler emphasized the need for redundancy and separate networks regardless of the chosen provider.

Escalon resident Sherry Hill expressed concerns about T-Mobile's being too large and impersonal, anticipating worse customer service than a local company.

City Attorney Frank Splendorio reviewed the Councilmembers positions and confirmed that the majority direction is to explore the two no cost/no monthly rate proposals from EzWave and Ayera.

8. Agenda Item Request – City Councilmember: Request to Explore Possibility of Installing Restroom in City Park
Interim City Manager French provided the presentation, which included potential location options and outline costs to install a new restroom at an existing park.

Councilmember Walker mentioned a grant used for the Hogan Park bathroom and suggested exploring similar funding for this project.

Mayor Bellinger appreciated the idea, but strongly felt it was not viable at this time due to the City’s financial position and encouraged the Council to not proceed.

Councilmember Walker agreed about the funding issue but wanted to continue researching funding options to address overcrowding in recreational areas. She expressed concerns about Shadowood Park's suitability as a recreation option.

Mayor Pro Tem Hagan supported the idea but acknowledged the funding constraints. He inquired about any concerns from Public Works or the Police Department regarding restrooms.

PWSM Juston Collins and Chief of Police Robert Hardgraves indicated no significant issues.

Councilmember Strohman suggested exploring funding options beyond the General Fund and inquired about possibly requiring Murphy Ranch to install a bathroom in a different park as part of their development agreement.

City Attorney Frank Splendorio explained the limitations of imposing such requirements on Murphy Ranch due to nexus obligations.

MINUTES
Escalon City Council
September 16, 2024

Interim City Manager French indicated that the project would include a Development Agreement and that the Development Agreement provided more flexibility. He further stated that staff is currently requesting the installation of a restroom in the to be expanded Shadowood Park as part of the Murphy Ranch development, should that project be approved.

Councilmember Strohman suggested exploring non-modular options for the bathroom.

Councilmember Walker mentioned ongoing efforts to address water fountain issues in other parks to facilitate hosting games at those locations.

Councilmember Engle inquired about the possibility of using portable toilets in other parks to enable hosting games there.

Escalon resident Kurt Danziger opposed the restroom due to cost concerns and potential issues with misuse, and maintenance challenges. He suggested not using further staff time for this project.

It was the consensus of Council to not move forward on this item at this time, but that staff would explore outside funding options.

COUNCIL COMMUNICATIONS
Councilmember Strohman attended the 9/11 Remembrance at the Escalon Fire District, acknowledge what he heard was a successful car show, and congratulated the Lions Club and the American Legion on their successful breakfast.

Councilmember Walker thanked the IT Consultant for his work on the wireless internet RFP.

Councilmember Engle hoped for a smooth and clean election season.

Mayor Pro Tem Hagan suggested the idea of dedicating the B field as Greg Largent Field, and to add this to a future Council agenda. He then commended the Lions Club for the successful car show.

Council provided a consensus to add the field dedication item to a future agenda.

Mayor Bellinger appreciated the before-and-after pictures for the sidewalk project and desired to see this be the approach for all future projects. He then acknowledged the success of the breakfast and the car show.

CLOSED SESSION

9. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Gov. Code Sec. 54956.9(d)(1))
David Leer, et al. vs City of Escalon, et al.

10. PUBLIC EMPLOYEE APPOINTMENT (Gov. Code Sec. 54957)
Title: City Manager

MINUTES
Escalon City Council
September 16, 2024

11. CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code Sec. 54957) Agency Negotiator: Mayor Bellinger
Unrepresented Employee: City Manager

12. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Code Sec. 54957) Title: Interim City Manager
There was no reportable action.

ADJOURNMENT
Mayor Bellinger adjourned the meeting at 10:00 pm.

Respectfully Submitted,
Jaylen French, Interim City Manager

ITEM NO. 5

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Celinda Bickner, Finance Director
Date: October 1, 2024
Subject: Approval of Register of Demands – October 7, 2024 for $1,267,499.72 Recommendation:

Approval of Register of Demands for October 7, 2024 for $1,267,499.72 pursuant to the Fiscal Year 2024-25 Budget adopted on 6/17/2024.

Attachments
Attached is the check register for the period of September 10, 2024 through September 30, 2024 which were paid in conformity with City policies and procedures from available funds.

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 1
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT SHR01 STERICYCLE INC
I-8007922292- PD & CH SHREDDING 7-15-24 D 9/18/2024 190.61 001157 190.61 AFL01 AFLAC
C-02 202409274947 SUPPLEMENTAL INSURANCE D 9/30/2024 114.92CR 001182 I-02 202409274946 SUPPLEMENTAL INSURANCE D 9/30/2024 211.90 001182 I-02 202409274948 SUPPLEMENTAL INSURANCE D 9/30/2024 114.92 001182 211.90 ANT01 ANTHEM BLUE CROSS (BILLING)
C-13 202409274947 MEDICAL INSURANCE D 9/30/2024 570.76CR 001183 I-13 202409274946 MEDICAL INSURANCE D 9/30/2024 5,405.03 001183 I-13 202409274948 MEDICAL INSURANCE D 9/30/2024 570.76 001183 I-13 202409304956 MEDICAL INSURANCE D 9/30/2024 502.53 001183 5,907.56 EDD01 EMPLOYMENT DEVELOPMENT DEPT
C-T2 202409274947 STATE WITH HOLDINGS D 9/30/2024 648.62CR 001184 C-T5 202409274947 SDI WITH HOLDINGS D 9/30/2024 251.91CR 001184 I-T2 202409274946 STATE WITH HOLDINGS D 9/30/2024 3,948.04 001184 I-T2 202409274948 STATE WITH HOLDINGS D 9/30/2024 648.62 001184 I-T2 202409304956 STATE WITH HOLDINGS D 9/30/2024 2,702.66 001184 I-T5 202409274946 SDI WITH HOLDINGS D 9/30/2024 1,364.52 001184 I-T5 202409274948 SDI WITH HOLDINGS D 9/30/2024 251.91 001184 I-T5 202409304956 SDI WITH HOLDINGS D 9/30/2024 775.04 001184 I-T6 202409274946 SUI WITH HOLDINGS D 9/30/2024 102.76 001184 I-T7 202409274946 ETT WITH HOLDINGS D 9/30/2024 4.68 001184 8,897.70 EFT01 ELECTRONIC FEDERAL TAX PAYMENT
C-T1 202409274947 FEDERAL WITHHOLDINGS D 9/30/2024 2,195.83CR 001185 C-T3 202409274947 FICA WITH HOLDINGS D 9/30/2024 2,815.96CR 001185 C-T4 202409274947 MEDICARE WITH HOLDINGS D 9/30/2024 658.58CR 001185 I-T1 202409274946 FEDERAL WITHHOLDINGS D 9/30/2024 11,714.57 001185 I-T1 202409274948 FEDERAL WITHHOLDINGS D 9/30/2024 2,195.83 001185 I-T1 202409304956 FEDERAL WITHHOLDINGS D 9/30/2024 7,641.02 001185 I-T3 202409274946 FICA WITH HOLDINGS D 9/30/2024 15,376.64 001185 I-T3 202409274948 FICA WITH HOLDINGS D 9/30/2024 2,815.96 001185 I-T3 202409304956 FICA WITH HOLDINGS D 9/30/2024 8,715.36 001185 I-T4 202409274946 MEDICARE WITH HOLDINGS D 9/30/2024 3,596.18 001185 I-T4 202409274948 MEDICARE WITH HOLDINGS D 9/30/2024 658.58 001185 I-T4 202409304956 MEDICARE WITH HOLDINGS D 9/30/2024 2,038.26 001185 49,082.03 ESC28 ESCALON POLICE OFFICERS ASSOCI
I-PD 202409274946 EPOA UNION DUES D 9/30/2024 78.10 001186 I-PD 202409304956 EPOA UNION DUES D 9/30/2024 781.00 001186 859.10

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 2
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT KAI02 KAISER FOUNDATION HEALTH PLAN
C-10 202409274947 MEDICAL INSURANCE D 9/30/2024 1,249.28CR 001187 I-10 202409274946 MEDICAL INSURANCE D 9/30/2024 7,538.11 001187 I-10 202409274948 MEDICAL INSURANCE D 9/30/2024 1,249.28 001187 I-10 202409304956 MEDICAL INSURANCE D 9/30/2024 3,982.12 001187 I-100202409304956 MEDICAL INSURANCE D 9/30/2024 172.41 001187 11,692.64 MIS05 MISSIONSQUARE - 301880
C-DC 202409274947 DEFERRED COMPENSATION D 9/30/2024 460.00CR 001188 C-RD 202409274947 DEFERRED COMPENSATION D 9/30/2024 208.01CR 001188 I-DC 202409274946 DEFERRED COMPENSATION D 9/30/2024 1,755.57 001188 I-DC 202409274948 DEFERRED COMPENSATION D 9/30/2024 460.00 001188 I-DC 202409304956 DEFERRED COMPENSATION D 9/30/2024 1,400.30 001188 I-RD 202409274946 DEFERRED COMPENSATION D 9/30/2024 1,153.58 001188 I-RD 202409274948 DEFERRED COMPENSATION D 9/30/2024 208.01 001188 I-RD 202409304956 DEFERRED COMPENSATION D 9/30/2024 2,640.26 001188 6,949.71 OAK15 OAK VALLEY COMMUNITY BANK
C-HSA202409274947 HSA CONTRIBUTION D 9/30/2024 594.58CR 001189 I-HSA202409274946 HSA CONTRIBUTION D 9/30/2024 2,926.24 001189 I-HSA202409274948 HSA CONTRIBUTION D 9/30/2024 594.58 001189 I-HSA202409304956 HSA CONTRIBUTION D 9/30/2024 1,776.83 001189 4,703.07 PUB01 PUBLIC EMPLOYEES RETIREMENT
C-05 202409274947 EMPLOYER PERS CONTRIBUTION D 9/30/2024 1,249.38CR 001190 C-42 202409274947 EMPLOYEE PERS CONTRIBUTION D 9/30/2024 1,230.34CR 001190 C-60 202409274947 EMPLOYEE PERS CONTRIBUTION MIS D 9/30/2024 361.11CR 001190 C-61 202409274947 EMPLOYER PERS CONTRIBUTION MIS D 9/30/2024 537.10CR 001190 I-05 202409274946 EMPLOYER PERS CONTRIBUTION D 9/30/2024 3,394.37 001190 I-05 202409274948 EMPLOYER PERS CONTRIBUTION D 9/30/2024 1,249.38 001190 I-094202409274946 EMPLOYER CONTRIBUTION D 9/30/2024 5,449.81 001190 I-194202409274946 EMPLOYER CONTRIBUTION D 9/30/2024 2,776.76 001190 I-284202409274946 EMPLOYEE CONTRIBUTION D 9/30/2024 954.42 001190 I-31 202409274946 EMPLOYER PERS CONTRIBUTION SAF D 9/30/2024 186.74 001190 I-31 202409304956 EMPLOYER PERS CONTRIBUTION SAF D 9/30/2024 6,562.88 001190 I-32 202409274946 EMPLOYEE PERS CONTRIBUTION SAF D 9/30/2024 185.90 001190 I-32 202409304956 EMPLOYEE PERS CONTRIBUTION SAF D 9/30/2024 6,533.19 001190 I-384202409274946 EMPLOYEE CONTRIBUTION D 9/30/2024 2,587.52 001190 I-42 202409274946 EMPLOYEE PERS CONTRIBUTION D 9/30/2024 3,342.61 001190 I-42 202409274948 EMPLOYEE PERS CONTRIBUTION D 9/30/2024 1,230.34 001190 I-60 202409274946 EMPLOYEE PERS CONTRIBUTION MIS D 9/30/2024 1,938.67 001190 I-60 202409274948 EMPLOYEE PERS CONTRIBUTION MIS D 9/30/2024 361.11 001190 I-61 202409274946 EMPLOYER PERS CONTRIBUTION MIS D 9/30/2024 2,851.57 001190 I-61 202409274948 EMPLOYER PERS CONTRIBUTION MIS D 9/30/2024 537.10 001190 36,764.44

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 3
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT SNA01 P & E ENTERPRISES LLC
C-52 202409274947 FITNESS MEMBERSHIPS D 9/30/2024 29.95CR 001191 I-52 202409274946 FITNESS MEMBERSHIPS D 9/30/2024 59.90 001191 I-52 202409274948 FITNESS MEMBERSHIPS D 9/30/2024 29.95 001191 I-52 202409304956 FITNESS MEMBERSHIPS D 9/30/2024 29.95 001191 89.85 SUT10 SUTTER HEALTH PLAN
C-16 202409274947 MEDICAL INSURANCE D 9/30/2024 2,991.90CR 001192 C-160202409274947 MEDICAL INSURANCE D 9/30/2024 76.40CR 001192 I-16 202409274946 MEDICAL INSURANCE D 9/30/2024 7,604.40 001192 I-16 202409274948 MEDICAL INSURANCE D 9/30/2024 2,991.90 001192 I-16 202409304956 MEDICAL INSURANCE D 9/30/2024 704.84 001192 I-160202409274946 MEDICAL INSURANCE D 9/30/2024 294.21 001192 I-160202409274948 MEDICAL INSURANCE D 9/30/2024 76.40 001192 8,603.45 VSP01 VISION SERVICE PLAN
C-17 202409274947 VISION COVERAGE D 9/30/2024 109.04CR 001193 I-17 202409274946 VISION COVERAGE D 9/30/2024 436.16 001193 I-17 202409274948 VISION COVERAGE D 9/30/2024 109.04 001193 I-17 202409304956 VISION COVERAGE D 9/30/2024 272.60 001193 708.76 ARC02 ARCO BUSINESS SOLUTIONS
I-202409244927 FUEL D 9/30/2024 5,357.40 001194 5,357.40 FRO03 FRONTIER COMMUNICATIONS
I-202409254939 MONTHLY 911 TELEPHONE D 9/30/2024 83.50 001195 83.50 MOD03 MODESTO IRRIGATION DISTRICT
I-202409244938 MODESTO IRRIGATION DISTRICT D 9/30/2024 17,200.66 001196 17,200.66 PAC02 PACIFIC GAS AND ELECTRIC
I-202409234926 PACIFIC GAS AND ELECTRIC D 9/30/2024 27,387.24 001197 27,387.24 USB01 U.S. BANK N.A.

I-1729331856 COMM/CIVIC CTR DEBT PAYMENT D 9/30/2024 13,648.00 001198 13,648.00 ENV04 ENVIROSUITE INC
I-202409124923 MAINTENANCE AGREEMENT R 9/12/2024 24,560.00 081368 24,560.00 ATT06 AT&T MOBILITY
I-X09102024 MONTHLY CELL PHONES R 9/12/2024 1,727.34 081369 1,727.34 HAR02 HARRISON, BENJAMIN
I-202409124921 MEALS/TRAINING 9/25/24-9/27/24 R 9/12/2024 45.00 081370 45.00

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 4
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT I.C01 I.C. INK
I-3870A (500) BUSINESS CARDS/BICKNER R 9/12/2024 55.26 081371 I-4126 (2500) LETTERHEAD-CH R 9/12/2024 360.73 081371 415.99 JUM01 JUMAOAS, SEAN
I-202409124922 MEALS/TRAINING 9/25/24-9/27/24 R 9/12/2024 45.00 081372 45.00 PAL01 PALOMINO, ABRAHAM
I-202409124920 MEALS/TRAINING 9/25/24-9/27/24 R 9/12/2024 45.00 081373 45.00 SAN01 SAN JOAQUIN CO AUDITOR-CONTROL
I-202409104918 CO PARKING CITE FEES AUG 2024 R 9/12/2024 85.00 081374 85.00 WIN05 WING, ANNETTE
I-202409114919 YOGA CLASS 7/18/24-8/22/24 R 9/12/2024 495.00 081375 495.00 BSK01 BSK ASSOCIATES
I-0107169 PROFESSIONAL SRVCS AUG 2024 R 9/17/2024 4,281.25 081376 I-0107176 PROFESSIONAL SRVCS AUG 2024 R 9/17/2024 2,607.25 081376 6,888.50 EVC01 EV CONNECT
I-INV8655 SRVC CALL-EV CHARGING STATION R 9/17/2024 2,610.00 081377 2,610.00 PAC03 AT&T
I-202409174924 MONTHLY TELEPHONE R 9/17/2024 206.04 081378 206.04 SAN15 SAN JOAQUIN VALLEY COMMUNITY S
I-ESCALONOPERATIONS2 AUG MONTHLY OPERATIONS R 9/17/2024 2,000.00 081379 2,000.00 USB02 U.S. BANK
I-2679302 ESCALON 2018 WW ADMIN FEES R 9/17/2024 188,172.72 081380 188,172.72 LAN01 LANDMARK HEALTHPLAN OF CA INC
I-202408294898 LANDMARK HEALTHPLAN OF CA INC R 9/19/2024 106.21 081381 I-50 202408294897 CHIROPRACTIC CARE R 9/19/2024 138.36 081381 244.57 4LEAF 4LEAF, INC.

I-J4190-24-08 6TH CYCLE HOUSING ELEMENT R 9/30/2024 3,063.75 081382 3,063.75 AME03 AMERICAN PAVEMENT SYSTEMS,INC.

I-5381 PAVEMENT RESTORATION PROJ R 9/30/2024 224,945.89 081383 224,945.89 AQU03 AQUA-AEROBIC SYSTEMS, INC
I-1043680 4 PARTS AERATORS FOR WWTP R 9/30/2024 19,828.04 081384 19,828.04

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 5
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT AXO01 AXON ENTERPRISE INC
I-INUS280763 Axon Fleet 3 R 9/30/2024 23,272.99 081385 23,272.99 AZC01 AZCO SUPPLY INC
I-454390 DECO LIGHT-ACCIDENT REP R 9/30/2024 8,909.85 081386 8,909.85 DIR03 DIRT DYNASTY, INC.

I-3010 PEDESTRIAN CROSSING R 9/30/2024 86,778.22 081387 86,778.22 ECO03 ECONOMIC & PLANNING SYSTEMS, I
I-242013-5 LBPSP FEE NEXUS STUDY R 9/30/2024 6,020.00 081388 6,020.00 FOW02 FOWLER BROTHERS FARMING INC
I-3076 POND RIPPING AT WWTP R 9/30/2024 37,332.00 081389 37,332.00 BCC01 BENEFIT COORDINATORS CORPORATI
C-51 202409274947 LIFE INSURANCE R 9/30/2024 29.60CR 081390 I-51 202409274946 LIFE INSURANCE R 9/30/2024 155.40 081390 I-51 202409274948 LIFE INSURANCE R 9/30/2024 29.60 081390 I-51 202409304956 LIFE INSURANCE R 9/30/2024 74.00 081390 229.40 BEN01 BENEFIT COORDINATORS CORP
C-12 202409274947 DENTAL INSURANCE R 9/30/2024 299.30CR 081391 I-12 202409274946 DENTAL INSURANCE R 9/30/2024 1,648.00 081391 I-12 202409274948 DENTAL INSURANCE R 9/30/2024 299.30 081391 I-12 202409304956 DENTAL INSURANCE R 9/30/2024 740.30 081391 2,388.30 LAN01 LANDMARK HEALTHPLAN OF CA INC
C-50 202409274947 CHIROPRACTIC CARE R 9/30/2024 26.32CR 081392 I-50 202409274946 CHIROPRACTIC CARE R 9/30/2024 127.30 081392 I-50 202409274948 CHIROPRACTIC CARE R 9/30/2024 26.32 081392 I-50 202409304956 CHIROPRACTIC CARE R 9/30/2024 61.97 081392 189.27 1 TATUM,RICHARD
I-202409254940 RV STORAGE RFND R 9/30/2024 100.00 081393 100.00 1 OCHOA,CHRISTOPHER
I-202409264941 FLAG FTBALL R 9/30/2024 88.00 081394 88.00 1 HAGAN,ANDREW
I-202409264943 FIELD DEP REFUND R 9/30/2024 200.00 081395 200.00 1 ROCHE, LISA
I-202409264944 DAMG DEPOSIT REFND R 9/30/2024 500.00 081396 500.00

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 6
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT ACC06 ACC BUSINESS
I-242548170 MONTHLY INTERNET SERVICE R 9/30/2024 891.96 081397 891.96 AGT01 AG TRANSMISSION REPAIR INC.

I-14531 DUMP TRUCK REPAIR R 9/30/2024 640.00 081398 640.00 ANI01 ANIMAL DAMAGE MANAGEMENT INC
I-8463C PEST CONTROL-TWICE PER MONTH R 9/30/2024 305.00 081399 305.00 ARD01 ARDURRA GROUP INC
I-153090 PROJ#22154 SSJID WATERLINE EXT R 9/30/2024 9,027.00 081400 I-153151 PROJ#21163MAIN ST SIDEWLK/CURB R 9/30/2024 11,275.00 081400 I-153510 PROJ#20150 MCHENRY SEWER LINE R 9/30/2024 1,710.00 081400 I-153511 PROJ#22104 CARIGNANE SEWR PUMP R 9/30/2024 10,635.00 081400 I-153518 PROJ#22148 MCHENRY SEWER LINE R 9/30/2024 3,535.00 081400 I-153520 PROJ#22168 WELL 1A R 9/30/2024 3,295.00 081400 I-153525 PROJ#23159 MICRO SLURRY R 9/30/2024 8,765.00 081400 I-153527 PROJ#24106 EHS PEDESTRIAN XING R 9/30/2024 5,915.00 081400 I-153529 PROJ#24108 ST. CLAIR WATERLINE R 9/30/2024 9,550.00 081400 I-153531 PROJ#24115 CRSRDS PLZA SIDEWLK R 9/30/2024 2,135.00 081400 I-153532 PROJ#24117 DENT SCHOOL SIDEWLK R 9/30/2024 23,935.00 081400 I-153535 PROJ#24118 IRWIN WTR/RDWY IMP. R 9/30/2024 890.00 081400 I-153540 PROJ#24125 MURPHY RANCH R 9/30/2024 460.00 081400 I-153893 MISC ENGINEERING SERVICES R 9/30/2024 11,825.00 081400 I-153919 PROJ#22154.2 SSJID WATER PROJ R 9/30/2024 4,420.00 081400 I-154017 PROJ#22154 SSJID WATERLINE EXT R 9/30/2024 19,810.00 081400 127,182.00 ARE02 AYALA-AREVALO, JADIERRE
I-202409244932 SOCCER REFEREE 9/21/24 R 9/30/2024 26.00 081401 I-202409244937 SOCCER REFEREE 9/14/24 R 9/30/2024 24.00 081401 I-202409304951 SOCCER REFEREE 9/28/24 R 9/30/2024 40.00 081401 90.00 ATT01 AT&T ONENET SERVICE
I-2178963277 USAGE CHARGE R 9/30/2024 1.22 081402 1.22
AUT03 AUTOMATION DIRECT,INC.

I-16961306 (1) ANALOG INPUT MODULE R 9/30/2024 387.90 081403 387.90 BES07 BEST BEST & KRIEGER LLP
I-1007037 PROFESSIONAL SERVICES AUG 2024 R 9/30/2024 12,882.90 081404 I-1007038 PROFESSIONAL SERVICES AUG 2024 R 9/30/2024 1,097.00 081404 I-1007039 PROFESSIONAL SERVICES AUG 2024 R 9/30/2024 19,757.99 081404 I-1007040 PROFESSIONAL SERVICES AUG 2024 R 9/30/2024 592.40 081404 34,330.29

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 7
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT BIC02 BICSEC SECURITY INC
I-220817 MONTHLY MONITORING R 9/30/2024 40.00 081405 40.00 BLA04 BLACKWATER CONSULTING ENGINEER
I-7132 PROFESSIONAL SERVICES AUG 2024 R 9/30/2024 5,455.50 081406 5,455.50 CAL13 CALNET
I-000022304209 SCADA PHONE LINE R 9/30/2024 139.50 081407 139.50 CAL61 CALIFORNIA BUILT-IN SYSTEMS, I
I-24065 SRVC CALL-ALARM READER R 9/30/2024 125.00 081408 125.00 CAP04 CAPITOL BARRICADE, INC.

I-169237 (4) 12X18 SIGNS R 9/30/2024 172.40 081409 172.40 CCP01 C&C PORTABLE TOILETS INC
I-20662 PORTABLE TOILET-SHOOTING RANGE R 9/30/2024 105.78 081410 105.78 CEN16 CENTRAL SAN JOAQUIN VALLEY RMA
I-INV0090 WRKS COMP,LIABILITY,ERMA R 9/30/2024 88,586.00 081411 88,586.00 CIN01 CINTAS CORP
I-5229334262 FIRST AID SUPPLIES R 9/30/2024 213.39 081412 213.39 CSG01 CSG CONSULTANTS INC
I-58267 PLAN CHECK & INSPECTIONS R 9/30/2024 5,115.00 081413 I-B241530 WELDWAY PAINT BUILDING SHELL R 9/30/2024 2,859.79 081413 7,974.79 CUB01 CUBIC TRANSPORTATION SYSTEMS I
I-90178864 SAAS SUPPORT/WIRELESS/SMS TEXT R 9/30/2024 252.00 081414 I-90181095 SAAS SUPPORT/SIGNS/WIRELESS R 9/30/2024 438.68 081414 690.68 DAT03 DATA TICKET INC
I-169650 MONTHLY DAILY CITATIONS R 9/30/2024 205.58 081415 205.58 DEP03 DEPARTMENT OF JUSTICE
I-758330 (7) BLOOD ALC ANALYSIS R 9/30/2024 245.00 081416 I-758431 FINGERPRINTS AUG 2024 R 9/30/2024 551.00 081416 I-765394 (4) BLOOD ALC ANALYSIS R 9/30/2024 140.00 081416 936.00 DIR03 DIRT DYNASTY, INC.

I-202409264942 HYDRANT METER DEPOSIT REFUND R 9/30/2024 2,308.00 081417 2,308.00

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 8
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT ESC21 209 MULTIMEDIA CORP
I-202409264945 ANNUAL SUBSCRIPTION R 9/30/2024 52.00 081418 52.00 ESC21 209 MULTIMEDIA CORP
I-370200 LEGAL AD 24-072 PUBLIC NOTICE R 9/30/2024 80.00 081419 80.00 FAR01 TILLEMS, BILL
I-749569 (10) BOX GLOVES/(8) BOX RAGS R 9/30/2024 290.93 081420 290.93 FGL01 FRUIT GROWERS LABORATORY INC
I-451602A WASTEWATER TESTING R 9/30/2024 614.00 081421
I-451777A DRINKING WATER TESTING R 9/30/2024 203.00 081421 I-452502A WASTEWATER TESTING R 9/30/2024 614.00 081421
I-452503A INDUSTRIAL TESTING R 9/30/2024 451.00 081421
I-452730A DRINKING WATER TESTING R 9/30/2024 203.00 081421 I-452864A WASTEWATER TESTING R 9/30/2024 663.00 081421
I-452865A INDUSTRIAL TESTING R 9/30/2024 451.00 081421
I-453013A DRINKING WATER TESTING R 9/30/2024 216.00 081421 I-453594A DRINKING WATER TESTING R 9/30/2024 203.00 081421 I-453651A DRINKING WATER TESTING R 9/30/2024 95.00 081421 I-453652A DRINKING WATER TESTING R 9/30/2024 36.00 081421 3,749.00 FRE09 FRESNO OXYGEN & WELDING SUPPLY
I-0091666984 CO2 RENTALS R 9/30/2024 67.01 081422 67.01 GEO01 GEORGE REED INC
I-100342362 ASPHALT R 9/30/2024 121.92 081423
I-100342637 ASPHALT R 9/30/2024 155.38 081423
I-100343527 ASPHALT R 9/30/2024 137.42 081423 414.72
GOR01 GORDON, ROGER
I-20249 GRAZING FOR WEED CONTROL WWTP R 9/30/2024 2,500.00 081424 2,500.00 GRA04 GRAHAM, NADIA
I-202409244936 SOCCER REFEREE 9/14/24 R 9/30/2024 24.00 081425 I-202409304952 SOCCER REFEREE 9/28/24 R 9/30/2024 32.00 081425 56.00 GRE06 GREEN VALLEY TREE SERVICE, INC
I-6194 MAIN ST PARK/PRUNED LRG TREE R 9/30/2024 2,400.00 081426 2,400.00 GRO02 GROVER LANDSCAPE SERVICES INC
I-0330064 REPAIR BRKN MAINLINE R 9/30/2024 1,504.85 081427 1,504.85

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 9
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT H2H01 MICHAEL ANTHONY HERRERA
I-2917 SERVICE HVAC- CITY HALL R 9/30/2024 395.00 081428 395.00 HAR26 HARRIS & ASSOCIATES
I-64361 ANNUAL MAINTENANCE REPORT R 9/30/2024 1,830.00 081429 1,830.00 INF01 INFOSEND INC
I-269823 REMINDER NOTICES R 9/30/2024 3,117.48 081430 3,117.48 INS03 RENTOKIL NORTH AMERICA INC
I-349508 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349509 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349520 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349521 MONTHLY PEST CONTROL SERV R 9/30/2024 93.17 081431 I-349532 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349614 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349615 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 I-349616 MONTHLY PEST CONTROL SERV R 9/30/2024 48.40 081431 431.97 JAC02 JACOBS, PEYTON
I-202409244933 SOCCER REFEREE 9/14/24 R 9/30/2024 30.00 081432 I-202409304950 SOCCER REFEREE 9/28/24 R 9/30/2024 32.00 081432 62.00 JAC11 JACOBS, ETHAN
I-202409244934 SOCCER REFEREE 09/14/24 R 9/30/2024 40.00 081433 I-202409244935 SOCCER REFEREE 9/21/24 R 9/30/2024 40.00 081433 I-202409304949 SOCCER REFEREE 9/28/24 R 9/30/2024 40.00 081433 120.00 KNI01 DSS COMPANY
I-8 PHASE 2 MCHRY SEWER PIPELINE R 9/30/2024 52,511.53 081434 52,511.53 KRA02 KRAZAN & ASSOCIATES, INC.

I-INV G600329-23207 COMPACTION TESTING/LAB TESTING R 9/30/2024 855.00 081435 855.00 LIN01 LINDE INC
I-45455388 LIQUID OXYGEN R 9/30/2024 14,078.25 081436 14,078.25 LNC01 L.N.CURTIS & SONS
I-INV863685 (12) BLACK COMBAT TOURNIQUET R 9/30/2024 372.47 081437 372.47 MCD01 MCDOWELL & DAVIS TOWING & AUTO
I-12731 OIL CHANGE UNIT 2127 R 9/30/2024 91.06 081438
I-12745 OIL CHANGE UNIT 2333 R 9/30/2024 91.04 081438 182.10

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 10
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT MID15 HALCYON CREEK INC
I-202144541 MONTHLY IT SERVICES R 9/30/2024 7,271.20 081439 7,271.20 MIS02 MISSION LINEN SUPPLY
I-522344896 RUG/TOWEL/UNIFORM-PW R 9/30/2024 86.09 081440 I-522344902 RUG/TOWEL/UNIFORM-COMM CTR R 9/30/2024 31.56 081440 I-522391934 RUG/TOWEL/UNIFORM-PW R 9/30/2024 120.66 081440 I-522437033 RUG/TOWEL/UNIFORM-PW R 9/30/2024 130.76 081440 I-522437038 RUG/TOWEL-COMM CTR R 9/30/2024 31.56 081440 I-522437042 RUG/TOWEL-CH R 9/30/2024 39.35 081440 439.98 MOT05 DAVID R. BALL
I-24-269-001 PD 8-HOUR MOTORCYCLE TRAINING R 9/30/2024 350.00 081441 350.00 MTM01 MTM TRANSIT LLC
I-072024 TRANSIT SERVICE JULY 2024 R 9/30/2024 18,334.82 081442 18,334.82 NAG00 NAGEL LANDSCAPING INC
I-51195 LANDSCAPE MAINTENANCE R 9/30/2024 875.00 081443 875.00 NEX05 NEXT LEVEL PARTS, INC
I-15892-58069 (2) BATTERY R 9/30/2024 321.63 081444
I-15892-59460 (10) GREASE-RED & TACKY R 9/30/2024 89.11 081444 I-15892-59484 (2) TEE CONNECTOR/BUG WASHER R 9/30/2024 27.47 081444 I-15892-59491 (2) BELTS R 9/30/2024 19.61 081444
I-15892-59497 (1) SPARK PLUG-MTRCYCLE R 9/30/2024 2.22 081444 460.04 NOR24 NORTHCUTT, CO
I-202409304953 SOCCER REFEREE 9/14/24 R 9/30/2024 30.00 081445 I-202409304954 SOCCER REFEREE 9/21/24 R 9/30/2024 80.00 081445 I-202409304955 SOCCER REFEREE 9/28/24 R 9/30/2024 50.00 081445 160.00 OLI01 OLIVER, HOLLEY
I-202409244928 SOCCER REFEREE 9/7/24 R 9/30/2024 32.00 081446 I-202409244929 SOCCER REFEREE 8/24/24 R 9/30/2024 42.00 081446 I-202409244930 SOCCER REFEREE 9/14/24 R 9/30/2024 24.00 081446 I-202409244931 SOCCER REFEREE 9/21/24 R 9/30/2024 40.00 081446 138.00 PAC01 PACIFIC STATES PETROLEUM
I-1558717-IN FUEL- POND 4 PUMP R 9/30/2024 1,889.61 081447 I-SEP715-IN 520 GALLON FUEL TANK RENTAL R 9/30/2024 177.73 081447 2,067.34 PAC06 PACE SUPPLY CORP.

I-059716759 (10) ENCODER REGISTER R 9/30/2024 1,501.80 081448 1,501.80

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 11
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT PL01 PL CONCRETE PRODUCTS
I-0 OVERPAYMENT R 9/30/2024 695.00 081449
I-7001994 (.50YD) ROACK ROADBASE R 9/30/2024 37.71 081449 I-7001995 (2.5YD) SANDY LOAM TOP SOIL R 9/30/2024 145.46 081449 I-7002033 BENDER BOARD/3/4 YD CART-AWAY R 9/30/2024 221.37 081449 I-7002154 (1.5YD) SANDY LOAM TOP SOIL R 9/30/2024 87.28 081449 I-7002178 (1YD) ROACK ROADBASE R 9/30/2024 75.43 081449 I-7002179 (1YD) SANDY LOAM TOP SOIL R 9/30/2024 58.19 081449 I-7002313 (1YD) ROACK ROADBASE R 9/30/2024 75.43 081449 I-7002314 (3.5YD) SANDY LOAM TOP SOIL R 9/30/2024 203.65 081449 I-7002343 1/4YD CART-AWAY 5 SK R 9/30/2024 91.05 081449 I-7002504 1/2 YD CART-AWAY/DARASET 400 R 9/30/2024 140.61 081449 I-7002673 (5YD) SANDY LOAM TOP SOIL R 9/30/2024 290.93 081449 I-7002715 (3YD) ROACK ROADBASE R 9/30/2024 226.28 081449 I-7002716 (5YD) SANDY LOAM TOP SOIL R 9/30/2024 290.93 081449 I-7002844 (4.5YD)TOP SOIL/(1YD)ROADBASE R 9/30/2024 304.12 081449 2,943.44 POW02 POWERSCHOOL HOLDINGS LLC
I-INV422864 WEBSITE MAINT AUG 2024 R 9/30/2024 4,770.40 081450 4,770.40 QUA10 QUALITY SERVICE INC
I-35743- WWTP OPERATIONS R 9/30/2024 5,609.00 081451 5,609.00 QUE02 QUENCH USA, INC
I-INV07940949 WATER FILTER AC 9/12-12/11/24 R 9/30/2024 177.79 081452 I-INV07941007 WATER FILTER PW 9/12-12/11/24 R 9/30/2024 177.79 081452 I-INV07941339 WATER FILTER CH 9/12-12/11/24 R 9/30/2024 177.79 081452 I-INV07941620 WATER FILTER PD 9/12/-12/11/24 R 9/30/2024 177.79 081452 711.16 QUI03 QUILL CORPORATION
I-40470899 (3) CASES COPY PAPER R 9/30/2024 128.19 081453 I-40471155 (3) CASES COPY PAPER R 9/30/2024 126.04 081453 254.23 RAD05 THE RADAR SHOP
I-15430 (8) RECERTIFIED RADAR DEPT R 9/30/2024 752.00 081454 752.00 RBC01 CORE & MAIN LP
I-V402101 (300) PE TUBE BLK/(4) CPLG R 9/30/2024 606.96 081455 I-V532540 (6) BR SAD/(5) CORP NO LEAD R 9/30/2024 1,209.56 081455 I-V579957 (1) CORP NO LEAD/(1) BRS SAD R 9/30/2024 470.52 081455 2,287.04 RUD01 RUDD'S SPORTS SERVICE
I-3-2425 SEP SOCCER ASSIGN FEE/REFS R 9/30/2024 15,890.00 081456 15,890.00

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 12
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT SAF01 SAFE-T-LITE
I-400080 (10) SMALL ELECTROLIER ARM R 9/30/2024 234.36 081457 234.36 SAN03 SAN JOAQUIN CO
I-1748858 DOC#2024-066470 R 9/30/2024 28.00 081458
I-1755064 DOC#2024-073336 R 9/30/2024 25.00 081458 53.00 SAN30 SAN JOAQUIN CO ANIMAL CONTROL
I-5787 ARMOSINO-(2)COUNTY DOG LICENSE R 9/30/2024 70.00 081459 70.00 SHR01 STERICYCLE INC
I-8008227135 PD & CH SHREDDING 8/12/24 R 9/30/2024 190.61 081460 190.61 SOU01 SOUTH SAN JOAQUIN IRRIGATION D
I-0008681 FIXED COSTS- AUG 2024 R 9/30/2024 172.89 081461 172.89 STA01 STAPLES BUSINESS CREDIT
I-7002346469 WWTP SUPPLIES/FILE FOLDRS/PENS R 9/30/2024 178.59 081462 178.59 STR01 STRAND ACE HARDWARE INC.

I-661169 (1) ACE SHOVEL R 9/30/2024 23.69 081463
I-661349 (1) HP OIL 6PK R 9/30/2024 18.31 081463
I-661386 (3) O-RING R 9/30/2024 3.20 081463
I-661387 (1) 4PK INKZALL MARKR R 9/30/2024 7.53 081463
I-661470 (1) WOOD & (1) COMPOSITE SHIMS R 9/30/2024 5.37 081463 I-661474 (2) FASTENERS R 9/30/2024 3.43 081463
I-661494 (2) LTX FLD MRK WHT R 9/30/2024 106.87 081463
I-661512 (1) LTX FLD MRK WHT R 9/30/2024 53.43 081463
I-661726 16PK AA BATTERY R 9/30/2024 21.54 081463
I-661782 (1) GFCI OUTLET/PIPE GALV TUBE R 9/30/2024 52.33 081463 I-661795 CAP PVC/CAP SLIP/PLUG PVC R 9/30/2024 12.43 081463 I-661810 (2) FLD MRK WHT R 9/30/2024 106.87 081463
I-661832 (2) KEYFRAFTER-RANGE R 9/30/2024 8.60 081463
I-661842 (2) KEYKRAFTER R 9/30/2024 8.60 081463
I-662001 WINDEX/GLASS CLEANER R 9/30/2024 34.54 081463
I-662012 (1) ERGO WINDOW SQUEEGEE R 9/30/2024 16.15 081463 I-662015 ADHSV/INSUL.WIRE LUG/TERM RING R 9/30/2024 78.86 081463 I-662050 FASTENERS/MET FEND WASHER R 9/30/2024 34.58 081463 I-662085 (4) FASTENERS R 9/30/2024 19.78 081463
I-662098 SHARPENING R 9/30/2024 7.00 081463
I-662101 (15) MINI CLEAR LIGHTS R 9/30/2024 258.44 081463 I-662102 (1) PRIMER BULB R 9/30/2024 4.30 081463
I-662107 (1) THREAD TAPE/THREAD SEALANT R 9/30/2024 30.02 081463 I-662139 FLD MARKER WHT/ GRAPHITE SPRY R 9/30/2024 115.48 081463 I-662230 (1) RED SPRAYCHALK PNT R 9/30/2024 14.00 081463 I-662236 CABLE TIES R 9/30/2024 3.87 081463
I-662267 THREAD SEAL TAPE/SEALANT R 9/30/2024 77.78 081463 I-662278 (2) THREAD SEAL TAPE/FILL VLV R 9/30/2024 24.52 081463 1,151.52

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 13
VENDOR SET: 01 City of Escalon, CA
BANK: OPOOL OAK VALLEY POOL CASH
DATE RANGE: 9/10/2024 THRU 9/30/2024

CHECK INVOICE CHECK CHECK CHECK
VENDOR I.D. NAME STATUS DATE AMOUNT DISCOUNT NO STATUS AMOUNT SWI01 SWIFT, ROBERT
I-2864 COMM CTR STUMP GRINDING R 9/30/2024 100.00 081464 100.00 TON01 TONY FRAGA BUILDING SERVICE, I
I-1068 SEPT (2) EVENTS/RESTROOMS R 9/30/2024 734.20 081465 I-181 MONTHLY JANITORIAL SERV SEPT R 9/30/2024 2,827.70 081465 I-244 ADDTL CLEANING SEPT 2024 R 9/30/2024 312.00 081465 3,873.90 UBE01 UBER
I-12-2024-0000008 UBER TRANSPORTATION PROGRAM R 9/30/2024 280.00 081466 280.00 VAL11 VALLEY PACIFIC PETROLEUM SERVI
I-CL 24-799420 FUEL R 9/30/2024 804.61 081467 804.61
* * T O T A L S * * NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT REGULAR CHECKS: 100 1,069,162.10 0.00 1,069,162.10
HAND CHECKS: 0 0.00 0.00 0.00
DRAFTS: 18 198,337.62 0.00 198,337.62
EFT: 0 0.00 0.00 0.00
NON CHECKS: 0 0.00 0.00 0.00
VOID CHECKS: 0 VOID DEBITS 0.00
VOID CREDITS 0.00 0.00 0.00
TOTAL ERRORS: 0

NO INVOICE AMOUNT DISCOUNTS CHECK AMOUNT
VENDOR SET: 01 BANK: OPOOL TOTALS: 118 1,267,499.72 0.00 1,267,499.72 BANK: OPOOL TOTALS: 118 1,267,499.72 0.00 1,267,499.72
REPORT TOTALS: 118 1,267,499.72 0.00 1,267,499.72

10/01/2024 6:55 AM A/P HISTORY CHECK REPORT PAGE: 14

SELECTION CRITERIA
------------------------------------------------------------------------------------------------------------------------------------ VENDOR SET: 01-CITY OF ESCALON VENDORS
VENDOR: ALL
BANK CODES: All
FUNDS: All
------------------------------------------------------------------------------------------------------------------------------------

CHECK SELECTION
CHECK RANGE: 000000 THRU 999999
DATE RANGE: 9/10/2024 THRU 9/30/2024
CHECK AMOUNT RANGE: 0.00 THRU 999,999,999.99
INCLUDE ALL VOIDS: YES
------------------------------------------------------------------------------------------------------------------------------------

PRINT OPTIONS
SEQUENCE: CHECK NUMBER
PRINT TRANSACTIONS: YES
PRINT G/L: NO
UNPOSTED ONLY: NO
EXCLUDE UNPOSTED: NO
MANUAL ONLY: NO
STUB COMMENTS: NO
REPORT FOOTER: NO
CHECK STATUS: NO
PRINT STATUS: * - All
------------------------------------------------------------------------------------------------------------------------------------

ITEM NO. 6

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Jaylen French, Interim City Clerk
Date: September 25, 2024
Subject: Consider Approving Resolution No. XX-24 Approving a Cooperative Agreement with the City of Stockton, the Contract Administrator of the San Joaquin County Library System for San Joaquin County, for the Purposes of Managing Contractor Repairs to the Escalon Library, which is to be Funded by San Joaquin County
Recommendation:

Approve a Cooperative Agreement with the City of Stockton, the Contract Administrator of the San Joaquin County Library System for San Joaquin County, for the purposes of managing the selected contractor and the necessary repairs to the Escalon Library, which is to be funded by San Joaquin County.

Background and Discussion:

On February 8, 2011, the City of Stockton (Stockton) and the County of San Joaquin (County) entered an Agreement for library services, in which Stockton agrees to operate branch libraries, including the Escalon library, on behalf of the County.

The City of Escalon (City) is the owner of the Escalon Library building located at 1540 Second Street. This building requires repairs to the roof and the east facing wall.

On June 19, 2024, the County awarded Stockton $304,427 for the repairs of the Escalon Library.

The City has agreed to serve as the project manager for the work, including selecting a contractor, based on the lowest bids received, and manage the repair work.

Therefore, the purpose of this Agreement outlines the terms and conditions under which Stockton will allocate the available funds to the City to conduct repairs on the Escalon Library.

Fiscal Impact:

Outside of staff time to project manage the effort, this is expected to be a fiscally neutral venture fully funded by San Joaquin County. Should the repairs cost less than the budgeted amount, the City of Escalon will return any unused amount to the County. Should the repairs ultimately cost more

than the budgeted amount, the City will request an increase to the budget line item and the provided amount to cover the contractor work.

Attachments

1. Resolution No. XX-24

2. Cooperative Agreement Between the City of Escalon and the City of Stockton for Repairs to the Escalon Library

CITY OF ESCALON

CITY COUNCIL
RESOLUTION NO. xx-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ESCALON

APPROVING A COOPERATIVE AGREEMENT WITH THE CITY OF STOCKTON,

THE CONTRACT ADMINISTRATOR OF THE SAN JOAQUIN COUNTY LIBRARY

SYSTEM FOR SAN JOAQUIN COUNTY, FOR THE PURPOSES OF MANAGING

CONTRACTOR REPAIRS TO THE ESCALON LIBRARY, WHICH IS TO BE

FUNDED BY SAN JOAQUIN COUNTY
WHEREAS, on February 8, 2011, the City and the County of San Joaquin (“County”) entered an Agreement for library services; and
WHEREAS, The City, on behalf of the County, agrees to operate branch libraries, including the Escalon library, with the means at its disposal; and WHEREAS, Escalon is the owner of the Escalon Library located at 1540 Second Street, Escalon, CA 95320; and
WHEREAS, the Escalon Library requires repairs; and
WHEREAS, on June 19, 2024, the County awarded the City $304,427 for the repairs of the Escalon Library; and
WHEREAS, Escalon is responsible for the project management of repairs at the Escalon Library; and
WHEREAS, the purpose of this Agreement outlines the terms and conditions under which The City will allocate these funds to Escalon to conduct repairs on the Escalon Library; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ESCALON DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Escalon agrees to perform (or shall cause a third-party consultant to perform on Escalon's behalf) the work described in Attachment A. This includes the formal solicitation of the repair work.

Section 2. Stockton agrees to appropriate a one-time payment to Escalon for one hundred percent (100%) of the $304,427 award.

Section 3. Escalon shall consult with Stockton pertaining to the construction schedule.

Escalon shall notify Stockton at least thirty (30) days prior if any impacts would require the Escalon Library to be closed during construction.

Section 4. Escalon shall provide a detailed report of the use of funds on or before March 1, 2025, with subsequent monthly updates through completion of the repairs.

Section 5. If the repairs cannot be completed for any reason, Escalon shall notify Stockton in writing. The parties shall then discuss appropriate next steps, including, but not

limited to, the allocation and reporting of any remaining funds.

Section 6. If the repairs are completed for a cost under $304,427, Escalon shall reimburse Stockton for the difference. The City will report the return of these funds to the County.

Section 7. For the purposes of this Agreement, the repairs shall be considered complete when all items of Attachment A have been completed.

Section 8. The term of this Agreement shall be two years and begin when made and entered into above. A written amendment executed by both parties may extend the term up to one (1) additional year.

Section 9. Either Party has the right to terminate this Agreement upon six (6) months’ prior written notice, with an effective termination date at the end of the six (6) month period.

Section 10. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties.

Section 11. This Agreement sets forth the entire agreement between the parties regarding the repairs at the Escalon Library. To the extent that any terms or provisions of this Agreement are inconsistent with the terms or provisions set forth in any existing agreement related to the repairs at Escalon Library, such terms and provisions shall be deemed superseded by this Agreement to the extent of such inconsistency.

PASSED AND APPROVED this 7th day of October, 2024 by the following roll call vote:

ATTEST:

DAVID BELLINGER, Mayor
JAYLEN FRENCH, Interim City Clerk
AYES:

NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

ITEM NO. 7

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Jaylen French, Interim City Manager
Date: September 24, 2024
Subject: Consider Final Acceptance of the Escalon Phase 2 McHenry Sewer Pipeline Improvement Project and Authorize the Interim City Clerk to file the Notice of Completion
Recommendation:

Accept the Escalon Phase 2 McHenry Sewer Pipeline Improvement Project and authorize the Interim City Clerk to file the Notice of Completion.

Background and Discussion:

On November 6, 2023 Council awarded the Escalon Phase 2 McHenry Sewer Pipeline Improvement Project to Knife River Construction of Stockton, CA in the amount of $2,518,090.30 with a 15% contingency for construction and/or material costs, for a total project amount of $2,895,803.85.

Construction proceeded on January 17, 2024 and work concluded on July 30, 2024. All demolished and installed items were found to be acceptable by the City Staff.

During the course of construction, the City Manager authorized nine (9) change orders as outlined below.

Change Order Items
Change Order #1: The City delayed the award of the contract approximately four months after the bid opening date. Due to this delay of awarding the contract, various bid items had increased due to construction material inflation and labor wage increases. The items that were listed in the escalation are labor, trucking, demolition subcontractor, boring subcontractor, and striping subcontractor.

The cost of $100,080.00 covers the additional labor and material cost due to delay of contract.

Change Order #2: Union Pacific Rail Road requires flagging services and construction observations to be performed at all times when construction is being done within the Rail Road’s right-of-way.

The inspection services were contracted through a third party, Rail Pros.

The cost of $12,278.00 covers the additional labor cost for construction oversight.

Change Order #3: The San Joaquin County Public Works Department required a modification to the approved project plans that the Meyers Avenue roadway would need an additional 1” of asphalt due to the presents of an underground utility pipe.

The cost of $47,785.00 covers the additional labor and material costs for additional roadway asphalt thickness.

Change Order #4: It was discovered that a residential lot had allowed their frontage landscaping to spread into the roadway right-of-way and interfere with the installation of the Meyers Avenue edge of pavement and shoulder backing. Additional demolition labor was required to remove overgrown frontage landscaping vegetation.

The cost of $6,955.20 covers the additional labor and offhaul cost for additional vegetation clearing and grubbing.

Change Order #5: The existing industrial force main, at the Escalon Sportsman Club, was not in the location as shown on the available record drawings used for the civil improvement plan design. The contractor had to do a larger amount of potholing to confirm that the existing force main pipeline would not interfere with the proposed new gravity sewer line.

The cost of $5,268.33 covers the additional labor cost for potholing.

Change Order #6: During the winter months of late January and February, the project site suffered four rain events that required the use of storm water pumping. The bore pit, located in the Escalon Sportsman Club shooting range, was the low point in the area and collected a large amount of storm water runoff. Washed in sediment was also removed from the bore pit area and trench stabilizing aggregate base rock was installed.

The cost of $8,510.45 covers the additional labor, materials, and equipment cost for dewatering.

Change Order #7r1 & 7r3: The local orchard along the east side of the Meyers Avenue had planted almond trees beyond their right-of-way. It was discovered that the contractor could not grade the roadway and side swales without the removal of these trees. A field meeting was held with the farmer and he approved the removal of the trees that were planted within the San Jaquin County right-of-way. Additional demolition labor was required to remove overplanted almond trees.

The cost of $17,595.60 covers the additional labor and offhaul cost for additional almond tree clearing and grubbing.

Change Order #8: The San Joaquin County Public Works Construction Inspector required a proof roll of the compacted roadway base rock prior to approval of paving activities on Meyers Avenue.

An area near the Meyers and McHenry intersection had shown some prior instability and the contractor ripped and recompacted the area prior to placement of aggregate base rock installation.

The roadway section was found to be unstable and required the removal of the unstable subgrade and the installation of 24” of aggregate base rock and geogrid fabric, per the geotechnical engineer’s

recommendation. Once installed, this area was still found to be unstable. Per additional geotechnical engineer’s recommendation, 12” of aggregate base rock was removed and 12” of asphalt was installed. The roadway was found to be stable and paving of the roadway was approved by the County Inspector.

The cost of $32,393.29 covers the additional labor and material costs for roadway sub-grade stabilization.

Change Order #9: The contractor submitted a balancing change order to cover project items that were found to be unnecessary and material quantities that were overestimated values. During the potholing for the industrial force main, it was found to be at a deeper elevation than expected. No modification to the force main was required, the associated bid items were credited. The material tags for Meyers Roadway aggregate base rock and asphalt were found to be marginally over the estimated amount and additional billing was required at the bid unit price amount.

The credit of $75,060.80 covers the non-constructed items and material overage costs of the project.

The total contract amount, adjusting for the approved change orders, is $2,673,895.37, which is $221, 908.48 under the total approved contract amount. All work on the project was completed in accordance with the contract Specifications.

Fiscal Impact:

The project was included in the Fiscal Year 2023-2024 Budget within the Sewer Municipal Capital Fund (633). Sufficient funds are available, including the contingency amount to complete the project. The total cost of the project was $221,908.48 below the budgeted total.

DENT ELEMENTARY SCHOOL AREA

SIDEWALK PROJECT
October 7, 2024
ITEM NO. 9

ADA CURB RAMP

NEW SIDEWALK

PROJECT DESCRIPTION
The purpose of the project is to
improve pedestrian safety to and
from Dent Elementary School,
and to maintain city standards
through the installation of
sidewalks.

LEGEND

4 ITEM NO. 10

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Celinda Bickner, Finance Director
Date: September 27, 2024
Subject: Fiscal Year 2022-23 Final Audit Report
Recommendation:

Accept the fiscal year 2022-2023 Final Audit Report from Gallagher Gatewood received September 24, 2024.

Background and Discussion:

The Final Audit Report for fiscal year 2022-23 was prepared by the outside firm Gallagher Gatewood using data provided from the City’s financial system. This report provides a narrative of the business transactions that occurred in the time period between July 1, 2022 and June 30, 2023. There were no material reconciling items for fiscal year 2022-23.

Attachments

1. Final Audit Report file

CITY OF ESCALON

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023

CITY OF ESCALON, CALIFORNIA
Table of Contents
Page

FINANCIAL SECTION
Independent Auditor’s Report 1-2
Management’s Discussion And Analysis (unaudited) 3-16
Basic Financial Statements:

Government-wide Financial Statements:

Statement Of Net Position 17
Statement Of Activities 18-19
Fund Financial Statements:

Balance Sheet – Governmental Funds 20-21
Reconciliation Of The Governmental Funds Balance Sheet
To Statement Of Net Position 22
Statement Of Revenues, Expenditures, And Changes In
Fund Balances – Governmental Funds 23-24
Reconciliation Of The Statement Of Revenues, Expenditures, And Changes In Fund Balances Of Governmental Funds To
The Statement Of Activities 25
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – General Fund 26-27
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – Measure K 28
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – Transportation Mitigation 29 Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – Transportation Fund 30
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – City Hall Fees Fund 31
Statement Of Net Position – Proprietary Funds 32
Statement Of Revenues, Expenses, And Changes In Net
Position – Proprietary Funds 33
Statement Of Cash Flows – Proprietary Funds 34-35
Notes To The Basic Financial Statements 36-63

REQUIRED SUPPLEMENTAL FINANCIAL DATA
Schedule of Proportionate Share of Net Pension Liability – Miscellaneous 64 Schedule of Proportionate Share of Net Pension Liability – Safety 65 Schedule of Contributions – Miscellaneous 66
Schedule of Contributions – Safety 67

CITY OF ESCALON CALIFORNIA
Table of Contents
Page
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:

Definitions 68-69
Combining Balance Sheet – Non-major Governmental Funds 70-73 Combining Statement Of Revenues, Expenditures And Changes In Fund Balances – Non-major Governmental Funds 74-77

OTHER REPORTS
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 78-79
Report On Compliance With Laws And Regulations Based On An Examination Of General Purpose Financial Statements
Performed In Accordance With The California Transportation Development Act 80

1 INDEPENDENT AUDITOR'S REPORT
To The City Council
City of Escalon
State of California
We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Escalon, State of California, 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 as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Escalon, State of California as of June 30, 2020, and the respective changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 3 through 10, the City of Escalon’s Schedule of Proportionate Share of Net Pension Liability on pages 62 and 63, the City of Escalon’s Schedule of Contributions on pages 64 and 65 be presented to supplement the basic financial statements. Such information, 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 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.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Escalon, State of California’s basic financial statements. The introductory section, combining and individual non-major fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual non-major fund financial statements are the responsibility of management and were derived from and relate 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 non-major fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.

Gallagher Gatewood, A Professional Accountancy Corporation

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
August 27, 2024

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
3 This discussion and analysis section provides an overview of the City of Escalon's (City) performance and financial activities for the fiscal year ending June 30, 2023. The summary reports show comparisons of the current year's financial information alongside the previous year's financial information where possible for historical evaluation.

This report was prepared following Generally Accepted Accounting Principles (GAAP) established by the Governmental Accounting Standard Board (GASB). To gain a broader perspective of the City and its financial activities, readers are encouraged to consider the information presented with the accompanying basic financial statements and notes.

FINANCIAL HIGHLIGHTS
Net position trends are valuable indicators of a government's financial position over time. At the end of the fiscal year 2022-23, the net position of the City was $61.2 million.

Highlights of increases or decreases in the city-wide statements between fiscal years 2022-23 and 2021-22 are summarized in the following bullet points. Further information explaining these changes can be found throughout this section.
 The City's assets and deferred outflows of resources exceed its liabilities and deferred inflows of resources at the close of the 2022-23 fiscal year by $61.2 million (Net Position). Of this amount, $11.3 million (Unrestricted Net Position) is designated to be used to meet ongoing obligations to citizens and creditors; $7.3 million is restricted for capital projects, debt service, and legally segregated taxes and fees. $42.6 million is invested in capital assets.
 As of June 30, 2023, the governmental funds reported a combined Net Position of $33.7 million, of which $6.1 million is available to meet the City's current and future needs (Restricted, Committed, Assigned, and Unassigned balances).  As of June 30, 2023, the General Fund's fund balance was $3.6 million of which $308,999 is designated as Non-Spendable for items such as deposits, prepaid assets, loans, and inter-fund advances. The assigned fund balance, which may be used for any governmental purpose, was $2.4 million, and the unassigned balance was $405,310.  The City’s total liabilities were $19.9 million with $10.3 million in long-term liabilities.

The remaining notable components are $6.4 million in net pension liability, $874,672 in current payables, and $485,639 in compensated absences.

Revenues
City revenues totaled $12.5 million for the fiscal year 2022-23. Governmental activity revenues were $7.0 million, an increase of $1.2 million from 2021-22. Business-type activities collected $5.4 million, an increase of $230 thousand dollars over the prior year.

Expenses
City expenses totaled $13.0 million for the fiscal year 2022-23. Governmental activities incurred $6.8 million of expenses while business-type activities incurred $6.1 million.

Expenses increased slightly from the previous year in governmental activities while business-type activities showed an increase of $2.3 million over the previous year.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
4 OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s annual financial report consists of the following components:

1. Independent Auditor’s report

2. Management’s Discussion and Analysis

3. The Basic Financial Statements are divided into three parts. a. The Government-wide Financial Statements consist of a Statement of Net Position and a Statement of Activities. These statements provide a broad overview of City finances in a manner similar to private-sector statements. b. The Fund Financial Statements focus on individual parts of the City’s operations in more detail than the government-wide statements.
c. The Notes to Basic Financial Statements explains the information found in the financial statements in more detail where available.

4. Required Supplemental Information which further explains and supports the data presented in the financial statements.

5. Combining statements for Non-major Governmental Funds and Internal Service Funds

6. Report on Internal Control Over Financial Reporting and Compliance with Laws and Regulations

THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two views of the City's business activities and financial position.

Government-wide Financial Statements.

The Government-Wide Financial Statements provide the City's financial status. These statements present both long-term and short-term overall data and are comprised of the following:

The Statement of Net Positions presents information on all City assets and liabilities and deferred, with the difference between the two reported as Net Position. Over time, increases or decreases in net position may serve as a valuable indicator of whether the City's financial position is improving or declining.

The Statement of Activities reflects changes in the government's net position during the fiscal year. All net position changes are reported when they occur, regardless of related cash flows.

Revenues and expenses recorded on a cash basis may result in future cash flows (e.g., revenues earned but uncollected, employee vacation and compensated time leave earned but unused).

Government-wide financial statements distinguish City functions supported by taxes and intergovernmental revenues (Government activities) from business functions intended to recover all or signification portions of costs through user fee collections (Business-type activities).  Governmental activities – The City’s essential services are considered governmental activities, including general government, community development, library, public safety,

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
5 public works, parks and recreation, and streets. These services are supported by general city revenues such as taxes and specific program revenues such as developer fees.  Business-type activities – The City’s enterprise activities are reported here, including sewer, water, storm, and transit. Unlike governmental services, these services are supported by user rates and fees based on the amount of the service they use.

Fund Financial Statements.

Fund Financial Statements provide information about the City’s significant funds. A fund is a group of related ledger accounts that help control resources segregated for specific activities or objectives. Like other local government entities, the City uses fund accounting to demonstrate compliance with finance-related regulations and legal requirements.

City funds are commonly divided into three main categories: Governmental, Proprietary, and Fiduciary.
 Governmental Funds account for essential services reported as governmental activities in the Government-Wide financial statements. Governmental fund financial statements measure current revenues, expenditures, and fund balances, excluding capital assets and long-term debt. The governmental fund balance sheet, governmental fund statement of revenues, and expenditure change in fund balance reports provide a reconciliation between governmental funds and governmental activities.  Proprietary Funds account for services for which the City charges outside customers.

Proprietary funds report the same “business-type activities” seen in the Government-wide Financial Statements but are prepared on a full accrual basis and include all current and long-term assets and liabilities.
 Fiduciary Funds account for resources held for the benefit of parties outside the government. These fund types are not shown in the Government-wide statements. The City of Escalon has $0 held in Fiduciary Funds at this time.

Notes to the Financial Statements
Notes provide additional information facilitating a better understanding of the data provided in the Government-wide and Fund Financial Statements.

Required Supplemental Information
In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information concerning the City's economic activities.

Combining Statements
This report section includes detailed information about non-major governmental, internal service, and agency funds.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
6 GOVERNMENT-WIDE FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net position - The following combined statement provides a two-year comparison of governmental and business-type activities expressed as the change in revenues and expenditures through June 30, 2023. This information is further reflected in the Statement of Activities.

City of Escalon
Net Position as of June 30, 2023
(in millions of dollars)
Net Position
Total
% Chg.
2022 2023 2022 2023 2022 2023 2023
Cash and Investments $ 10.5 $ 11.7 $ 13.5 $ 13.5 $ 24.0 $ 25.2 5% Other Assets 1.1 1.1 1.0 1.1 2.1 2.2 5%
Capital Assets 34.2 32.9 21.0 20.1 55.2 53.0 -4%
TOTAL ASSETS 45.8 45.7 35.5 34.7 81.3 80.4 -1%
Deferred Outflows Related to Pensions $ 0.6 $ 2.0 $ 0.1 $ 0.5 $ 0.7 $ 2.5 267% Long-term Liabilities outstanding $ 8.2 $ 5.3 $ 6.3 $ 4.9 $ 14.5 $ 10.2 -30% Net Pension Liability $ 2.6 $ 5.1 $ 0.6 $ 1.2
Other Liabilities 1.6 2.3 0.20 1.0 1.8 3.3 83%
TOTAL LIABILITIES 12.4 12.7 7.1 7.1 16.3 13.5 -17%
Deferral Of Pension Expense $ 2.8 $ 1.2 $ 1.0 $ 0.5 $ 3.8 $ 1.7 -55% Net Position:

Invested in capital assets, net of Related debt $ 28.7 $ 27.6 $ 15.4 $ 14.9 $ 44.1 $ 42.5 -4% Restricted 7.1 7.3 0.0 0.0 7.1 7.3 3%
Unrestricted -2.2 -1.2 12.8 12.6 10.6 11.4 8%
TOTAL NET ASSETS 33.6 33.7 28.2 27.5 61.8 61.2 -1%
Governmental
Activities
Business-type
Activities
Total
Some columns may not total due to rounding
The City's Government-wide Net Position as of June 30, 2023, comprised the following:
 Cash and investments comprised $25.4 million in the city treasury.  Government-wide current receivables totaled $1.4 million.  Net capital assets total $53.4 million, including infrastructure.  Restricted Net Position, $7.3 million - subject to external restrictions  Unrestricted Net Position totals $11.3 million – most funds committed by Council action.

Net position is classified as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents capital assets net of accumulated depreciation. Capital assets are used to provide services to citizens and are not available for future spending.

Restricted net assets represent resources subject to external restrictions on their use. These restrictions may be imposed by creditors, grantors, or state and federal laws and regulations. Net assets are restricted for capital projects, debt service, public safety, street improvements and other specific purposes.

Unrestricted net position is the "residual" component of net position. This unrestricted amount does not meet the definitions of "invested in capital assets" or "restricted assets" and may be used to meet the City's ongoing obligations.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
7 City of Escalon
2022 2023 2022 2023 2022 2023
Revenues
Program Revenues - - Charges for Services $ 1.28 $ 1.07 $ 5.10 $ 5.09 6.38 6.16 Operating Grants & Contributions

0.12 0.20 0.38 0.18 0.50 0.38
Capital Grants & Contributions 0.78 0.44 - - 0.78 0.44
Total Program Revenues 2.18 1.71 5.48 5.27 7.66 6.98
General Revenues
Taxes:

Property Tax 2.09 2.20 2.09 2.20
Sales Tax 1.52 1.56 1.52 1.56
Other Tax 0.70 1.41 0.70 1.41
Other Revenues:

Interest Income (0.22) 0.14 (0.25) 0.17 (0.47) 0.31
Other Revenue - - - 0.02 - 0.02
Total General Revenues 4.09 5.31 (0.25) 0.19 3.84 5.50
Total Revenue 6.27 7.02 5.23 5.46 11.50 12.48
Expenses
General government 0.22 0.63 0.22 0.63
Public Safety 3.30 3.26 3.30 3.26
Public Works 1.30 1.39 1.30 1.39
Community Development 1.04 0.60 1.04 0.60
Culture and Leisure 0.64 0.86 0.64 0.86
Interest & Fiscal Charges 0.15 0.14 0.15 0.14
Water 1.34 2.25 1.34 2.25
Sewer 2.02 3.22 2.02 3.22
Storm 0.23 0.26 0.23 0.26
Transit 0.25 0.40 0.25 0.40
Total Expenses 6.65 6.87 3.84 6.13 10.49 13.00
Change in Net Position - Before
Transfers (0.38) 0.15 1.39 (0.67) 1.01 (0.52)
Transfers (1.45) 1.45 - - Change in Net Position - After Transfers (1.83) 0.15 2.84 (0.67) 1.01 (0.52)
Net Position-Beginning 35.45 33.62 25.34 28.18 60.79 61.80 Prior Period Adjustments - - - - - Net Position at End of Year $ 33.62 $ 33.77 $ 28.18 $ 27.51 $ 61.80 $ 61.28 Governmental Activities Business-Type Activities Total
Statement of Activities
Fiscal Year Ended June 30, 2023
(in millions of dollars)
Some columns may not total due to rounding

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
8 Business-Type Activities
Business-Type Activities provided services to the citizens in exchange for fees and includes Water, Sewer, Storm Drain, and Transit services.

Total Revenues for business activities were $5.2 million with total expenditures of $6.1 million.

This is an increase of $2.2 million in expenses over the previous year. The following pie chart and related table show the expenses by type with percentage of total costs.

Water Services
$2,255,479
37%
Sewer Services
3,222,580
53%
Storm Drain Services
256,320
4%
Transit Services
400,101
6%
City of Escalon
Expenses by Function - Business Activies
For the Year Ended June 30, 2023
Water Services Sewer Services Storm Drain Services Transit Services Expense Source 2022 2023 % of Total
Water Services $ 1,338,535 $ 2,255,479 37%
Sewer Services 2,015,538 3,222,580 53%
Storm Drain Services 234,977 256,320 4%
Transit Services 255,435 400,101 7%
Total 3,844,485 $ $ 6,134,480 100%
Increase/ (Decrease) over Prior Year 2,289,995 37%
City of Escalon
Program Expenditures - Business Type Activities
For the Year Ended June 30, 2023

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
9 Governmental Activities
Governmental Activities represent services provided to the citizens and includes public safety, public works, development services, culture and leisure and general government services.

Total Revenues for governmental activities were $7.0 million, 11% more revenue over the prior fiscal year figures due primarily to increases in property tax collected. The following pie chart and table show the revenue received by type with percentages of total fiscal year collections.

Charges for Services
$1,075,535
15%
Grants and
Contributions
643,520
9%
Property Tax
2,214,079
32%
Sales Tax
1,566,046
22%
Other tax and
Franchise Fees
1,371,010
20%
Interest Earnings
141,490
2%
City of Escalon
Revenues by Source - Governmental Activies
For the Year Ended June 30, 2023
Charges for Services Grants and Contributions Property Tax Sales Tax Other tax and Franchise Fees Interest Earnings Revenues Source Revenue % of Total
Charges for Services $ 1,075,535 15.34%
Grants and Contributions 643,520 9.18%
Property Tax 2,214,079 31.58%
Sales Tax 1,566,046 22.33%
Other tax and Franchise Fees 1,371,010 19.55%
Interest Earnings 141,490 2.02%
Total $ 7,011,680 100.00%
City of Escalon
Revenues by Source - Governmental Activities
For the Year Ended June 30, 2023

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
10 Governmental activity expenditures for fiscal year 2022-23 were $6.8 million. Public Safety was 47% of total expenditures which includes Police, Code Enforcement, and Animal Control.

The pie chart and table that follows shows expenditures by department with a percentage of total expenses.

General Government
$627,040
9%
Public Safety
3,255,594
47%
Public Works
1,386,013
20%
Development Services
602,546
9%
Culture and Liesure
864,612
13%
Fiscal Charges
138,173
2%
City of Escalon
Expenses by Function - Governmental Activies
For the Year Ended June 30, 2023
General Government Public Safety Public Works
Development Services Culture and Liesure Fiscal Charges Revenues Source Expenses % of Total
General Government $ 627,040 9.12%
Public Safety 3,255,594 47.36%
Public Works 1,386,013 20.16%
Development Services 602,546 8.77%
Culture and Liesure 864,612 12.58%
Fiscal Charges 138,173 2.01%
Total $ 6,873,978 100.00%
City of Escalon
Program Expenditures - Governmental Activities
For the Year Ended June 30, 2023

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to demonstrate compliance with finance-related legal requirements. The focus of the City's Governmental Fund is to provide information on near-term inflows, outflows, and balances of spending resources.

GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type definitions establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The statement provides fund balance categories and classifications as non-spendable, restricted, committed, assigned or unassigned. Detailed information regarding the fund balance classifications can be found in Note 1 in the Notes to Basic Financial Statements.

Change in governmental fund balance is calculated as revenues and transfers in minus expenditures and transfers out. On June 30, 2023, the City's governmental funds reported combined fund balances of $29.2 million, an increase of $1.2 million compared to fiscal year 2021-22 at $27.9 million. This increase is due to ongoing capital project additions to fixed assets.

The General Fund and all other funds had positive fund balances.

General Fund
General Fund revenues increased by $1.01 million compared to fiscal year 2021-22 due to onetime ARPA funding. Sales tax collections increased by $109 thousand, and Property tax collected increased by $124 thousand. General Fund expenses of $5.4 million increased by $248 thousand over the previous year’s expenditures of $5.2 million. This modest expense increase was primarily seen in Public Safety and Public Works.

On June 30, 2023, the General Fund balance of $3.6 million contained $309 thousand in nonspendable balances, $405 thousand in assigned balances, and $2.4 million in reserves. Fund balances have been classified following GASB 54. While amounts have been categorized as unassigned, they may be earmarked by the city council for specific purposes.

Proprietary Funds
The City's Proprietary Funds provide the same information found in the Government-Wide Financial Statements but in more detail. The City's Proprietary Funds comprise the Water Fund, the Sewer Fund, the Storm Drain Fund, and the Transit Fund. On June 30, 2023, net position totaled $27.5 million. Proprietary operating revenues were $5.2 million, and operating expenses were $6.1 million.

Water Fund
The net position of the Water Fund is $14.40 million. Approximately $5.5 million was unrestricted at the fiscal year-end, with net investment in capital assets of $8.8 million.

The year's activities were $1.5 million in operating revenues and $ 1.4 million in operating expenses. Charges for services showed an increase resulting from the schedule of rates adopted in 2019.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
12 Sewer
The net position of the Sewer Fund is $10.5 million for the fiscal year 2022-23. $3.0 million of the fund's net position is invested in capital assets, with $ 6.6 million unrestricted. Operating revenues were $2.7 million, while operating expenditures were $3.1 million.

Storm Drain
The net position of the Storm Drain Fund is $2.4 million for the fiscal year 2022-23. A total of $2.0 million is invested in capital assets, with $324 thousand unrestricted. Operating revenues were $188 thousand while operating expenses totaled $275 thousand.

Transit Fund
The net position of the Transit Fund is $100 thousand for fiscal year 2022-23. Operating revenue was $220 thousand and operating expenses were $231 thousand. A total of $ 121 thousand of the fund's net position is vested in capital assets, with ($20,721) dollars as unrestricted.

General Fund Budgetary Highlights
The General Fund's amended budget totaled $4.7 million in revenues and $5.1 million in expenditures. At the end of the year, the total actual revenues of $5.9 million exceeded the final amended budget due to a one-time federal ARPA grant for $900 thousand.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2023, the city had $53.1 million, net of depreciation, invested in capital assets, including land, construction in progress, building, equipment, and infrastructure.

Governmental Funds totaled $33 million, and the Business-type activities totaled $20.1 million.

Capital Assets
As of June 30, 2023
(In millions)
Capital Assets
Total
% Chg
2022 2023 2022 2023 2022 2023 2022
Land 9.9 9.9 4.8 4.7 14.7 14.6 0%
Infrastructure 24.6 24.6 20.2 20.1 44.8 44.7 0%
Construction in Progress 0.10 0.55 0.40 0.44 0.5 1.0 99% Buildings and Improvements 14.0 14.0 1.4 1.4 15.4 15.4 0% Equipment 4.6 4.6 5.3 5.2 9.9 9.8 -1%
Accumulated Depreciation -19.0 -20.8 -11.1 -11.7 -30.1 -32.5 8% TOTAL CAPITAL ASSETS 34.2 33.0 21.0 20.1 55.2 53.1 -3.75% Governmental
Activities
Business-type
Activities
Total
Some columns may not total due to rounding

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
13 Long-Term Debt
Each of the City’s debt centers is discussed in Note III G in the Notes to the Basic Financial Statements. At year-end, the City’s governmental activities totaled $15.0 million in long-term debt with $6.4 million in net pension liability. Business-type funds totaled $6.5 million in outstanding long-term debt with $1.2 million in net pension liability. The overall long-term debt increased from the prior fiscal year by $0.37 million due to updates of the unfunded pension liability balances and increases in capital expenditures.

Long-Term Debt
June 30, 2023
(In millions)
Long-term Debt
Total
% Chg
2022 2023 2022 2023 2022 2023 2022
Refunding Lease 0.00 0.00 0.00 0.00 0.00 0.00 0%
Capital Lease - SRF 2.70 2.60 0.08 0.00 2.78 2.60 -6%
Net Pension Liability 2.68 5.17 0.60 1.26 3.28 6.43 96% Revenue Bonds 0.00 0.00 3.10 2.80 3.10 2.80 -10%
Equipment Lease 2.82 0.35 2.47 2.40 5.29 2.75 -48%
Compensated Absences 0.18 0.42 0.06 0.06 0.24 0.48 102% TOTAL 8.38 8.54 6.31 6.52 14.69 15.06 2.55%
Governmental
Activities
Business-type
Activities
Total
Some columns may not total due to rounding
The City’s long-term liabilities, except compensated absences and pension liability, relate to the acquisition and maintenance of capital assets. Capital assets are created to provide services to citizens. The repayment of the debt on these assets must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.

Inter-fund Loans
Government Code Section 66006(b)(1)(G), part of the Mitigation Fee Act, allows cities to make transfers or loans between development impact fee accounts as needed. To meet expenses relating to a fund's general activities, a city may enter into an inter-fund loan agreement supplying financial assistance. Below is a listing of outstanding inter-fund loans, including the initial date, maturity date, interest, and payments with the current outstanding balance.

General Fund inter-fund loan to Library Development Fund This loan is a result of payments made on the library building's financing payments between 2006 and 2011. Additionally, in Fiscal Year 2018, the library roof rehabilitation project for $49,479 was paid for through the General Fund.

As developer fees are contributed to the Library Developer Fund, repayments are made to the General Fund. The total due to the General Fund is $157,134 for the outstanding inter-fund loans at the end of fiscal year 2022-23.

The table below shows the historical activity for the Library Development Fund loan.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
14 General Fund Loan to Library DIF Fund
Initial Date: July 2011 Maturity Date: July 2026
Date Loan Interest Payment Balance
7/1/2011 $ 175,428 $ 175,428
6/30/2013 $ (1,645) $ 173,783
6/30/2014 $ (11,569) $ 162,213
6/30/2015 $ 162,213
6/30/2016 $ 162,213
6/30/2017 $ 162,213
6/30/2018 $ 162,213
6/30/2019 $ (1,895) $ 160,318
6/30/2020 $ (1,550) $ 158,768
6/30/2021 $ (964) $ 157,805
6/30/2022 $ (671) $ 157,134
6/30/2023 $ - $ - $ 157,134
Some columns may not total due to rounding
Transportation Impact Fund inter-fund loan to City Hall Impact Fund The Transportation Impact Fund provided two inter-fund loans to the City Hall Impact fund. The initial loan in 2011 for the City Hall Tenant Improvement project and a paydown of the Civic Center Loan in 2013.

Transportation Impact Fund to City Hall Impact Fund
Initial Date: October 2011 Maturity Date: June 2031
Initial Date: June 2013 Maturity Date: June 2033
Date Loan Interest Payment Balance
11/1/2011 $ 1,300,000 $ 1,300,000
6/30/2013 $ 3,991 $ 1,303,991
1/31/2014 $ 450,000 $ 1,753,991
6/30/2014 $ 4,358 $ 1,758,349
6/30/2015 $ 4,708 $ (49,942) $ 1,713,114
6/30/2016 $ 7,399 $ (2,151) $ 1,718,362
6/30/2017 $ 12,921 $ (1,321) $ 1,729,961
6/30/2018 $ 17,943 $ 1,747,904
6/30/2019 $ 42,439 $ (4,604) $ 1,785,739
6/30/2020 $ 34,536 $ (7,028) $ 1,813,247
6/30/2021 $ 9,465 $ (4,284) $ 1,818,428
6/30/2022 $ 7,001 $ (2,986) $ 1,822,443
6/30/2023 $ - $ - $ 1,822,443
Some columns may not total due to rounding

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
15 Public Works Impact Fund inter-fund loan to City Hall Impact Fund The Public Works Impact Fund provided an inter-fund loan to the City Hall Impact fund assisting with the paydown of the Civic Center loan in 2013.

Public Works Impact Fund to City Hall Impact Fund
Initial Date: June 2013 Maturity Date: June 2033
Date Loan Interest Payment Balance
1/31/2014 $ 300,000 $ 747 $ 300,747
6/30/2015 $ 807 $ (8,562) $ 292,992
6/30/2016 $ 1,265 $ (368) $ 293,890
6/30/2017 $ 2,210 $ (226) $ 295,874
6/30/2018 $ 4,044 $ 299,918
6/30/2019 $ 7,282 $ (790) $ 306,410
6/30/2020 $ 5,926 $ (1,206) $ 311,130
6/30/2021 $ 1,624 $ (735) $ 312,019
6/30/2022 $ 1,201 $ (513) $ 312,707
6/30/2023 $ - $ - $ 312,707

Some columns may not total due to rounding
In Lieu Low Income Housing Fund inter-fund loan to City Hall Impact Fund The In Lieu Low Income Housing Fund provided an inter-fund loan to the City Hall Impact fund. The loan assisted with the paydown of the Civic Center loan in 2013.

In Lieu Low Income Funds to City Hall Fund
Initial Date: June 2013 Maturity Date: June 2033
Date Loan Interest Payment Balance
1/31/2014 $ 800,000 $ 800,000
6/30/2014 $ 1,992 $ 801,992
6/30/2015 $ 2,152 $ (22,831) $ 781,313
6/30/2016 $ 3,375 $ (981) $ 783,707
6/30/2017 $ 5,893 $ (603) $ 788,997
6/30/2018 $ 10,784 $ 799,781
6/30/2019 $ 19,419 $ (2,106) $ 817,094
6/30/2020 $ 15,803 $ (3,216) $ 829,681
6/30/2021 $ 4,331 $ (1,960) $ 832,051
6/30/2022 $ 3,202 $ (1,366) $ 833,887
6/30/2023 $ - $ - $ 833,887

Some columns may not total due to rounding
The City Hall Impact Fund has a total of $2,969,036 in outstanding inter-fund loan balance at the end of fiscal year 2022-23.

CITY OF ESCALON
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
16 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for the fiscal year 2023-24, the city considered the following factors:

REVENUE
 Sales tax decrease expected due to loss of major retailer.  Property tax collections increase projected by the county.  General Fund estimated revenue increases not likely to meet expense increases.

EXPENDITURES
 Increase for Public Employee Retirement System (PERS) costs.  Increase in Unfunded Pension Liabilities due to economic factors.  Increase in personnel costs for administrative and police staff.  Increased costs for police vehicle and body camera annual license  Increased costs for maintenance and operations due to economic factors  Conservative approach continues when applying administrative charges to Capital Improvement Projects.

The City’s annual budget for fiscal year 2023-24 general fund expenses is projected to exceed revenues. Total operational budgeted revenues and expenses for the fiscal year were budgeted at $4.8 million and $5.8 million, respectively. The budget provides the City with the direction and tools necessary to maintain consistent City services levels.

The City’s budget may be viewed online at
GetFile.ashx (cityofescalon.org)
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of City finances and to demonstrate the accountability taken for the monies it receives. If you have questions about this report or need additional information, contact the Finance Director, City of Escalon, 2060 McHenry Ave., Escalon, California 95320.

Financial reports are available on the City’s website at:

Administration - City Of Escalon, CA

JUNE 30, 2023
Primary Government
Governmental Proprietary
Activities Activities 2023 2022
ASSETS
Cash And Investments 11,797,679 13,562,448 25,360,127 23,990,989 Accounts Receivable 725,379 699,881 1,425,260 1,932,445 Loans Receivable 0 175,342 175,342 624
Bond Issue Cost 17,224 17,224 0 99,023
Sewer Fund Loan 0 0 0 0
Prepaid Expenses 68,469 68,469 0 33,054
Capital Assets (Net Of Accumulated
Depreciation):

Land 9,927,214 4,757,505 14,684,719 14,684,719
Construction In Progress 553,395 441,547 994,942 504,856 Buildings And Improvements 9,078,892 648,328 9,727,220 10,139,587 Equipment And Vehicles 2,289,024 2,902,200 5,191,224 5,749,665 Infrastructure 11,339,259 11,516,383 22,855,642 24,169,637 Total Assets 45,796,535 34,703,633 80,500,168 81,304,599

DEFERRED OUTFLOWS OF RESOURCES
Current Pension Plan Contribution 2,015,011 508,354 2,523,365 688,390

LIABILITIES
Accounts Payable And Other 409,460 465,212 874,672 586,652 Current Liabilities 1,265,153 49,945 1,315,098 1,084,760 Compensated Absences 424,992 60,647 485,639 240,483
Net Pension Liability 5,176,273 1,264,121 6,440,394 3,283,313 Long-Term Liabilities:

Due Within One Year 175,045 333,459 508,504 516,554
Due In More Than One Year 5,339,910 4,978,918 10,318,828 10,658,302 Total Liabilities 12,790,833 7,152,302 19,943,135 16,370,064

DEFERRED INFLOWS OF RESOURCES
Deferral Of Pension Expense 1,255,183 544,549 1,799,732 3,826,511

NET POSITION
Invested In Capital Assets
Net Of Related Debt 27,672,829 14,953,585 42,626,414 44,073,607 Restricted For:

Capital Projects 9,127,505 9,127,505 0 8,878,756
Community Development Projects ( 1,814,159) 1,814,159) 0 ( ( 1,745,188) Debt Service 0 0 0 0
Unrestricted ( 1,220,645) 12,561,551 11,340,906 10,589,238 Total Net Position 33,765,530 27,515,136 61,280,666 61,796,413

CITY OF ESCALON

STATEMENTS OF NET POSITION
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Totals

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS

17 of 133

CITY OF ESCALON

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Functions/Programs Expenses
Primary Government:

Governmental Activities:

General Government 627,040
Public Safety 3,255,594
Public Works 1,386,013
Community Development 602,546
Culture And Leisure 864,612
Interest on Long-Term Debt 138,173
Total Governmental Activities 6,873,978
Business-Type Activities
Water Services 2,255,479
Sewer Services 3,222,580
Storm Drain Services 256,320
Transit Services 400,101
Total Business-Type Activities 6,134,480
Total Primary Government 13,008,458
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
18

Changes In Net Assets
Fines, Fees And Operating Capital Primary Government
Charges Grants And Grants And Governmental Proprietary
For Services Contributions Contributions Activities Activities 2023 2022 301,742 0 325,298) 0 ( 325,298) 0 ( 119,164
77,316 201,671 2,976,607) 0 ( 2,976,607) 0 ( ( 3,091,435) 28,664 441,849 0 ( 915,500) 915,500) 0 ( ( 465,315)
356,948 0 245,598) 0 ( 245,598) 0 ( ( 687,533)
310,865 0 553,747) 0 ( 553,747) 0 ( ( 195,102)
0 0 138,173) 0 ( 0 138,173) ( ( 153,306)
1,075,535 201,671 441,849 ( 5,154,923) 0 5,154,923) ( ( 4,473,527) 2,062,518 0 0 192,961) 0 ( ( 192,961) 730,158
2,844,193 0 0 378,387) 0 ( ( 378,387) 803,906
183,030 0 0 73,290) 0 ( ( 73,290) ( 44,895)
2,367 185,792 0 211,942) 0 ( ( 211,942) 142,293
5,092,108 185,792 0 856,580) 0 ( ( 856,580) 1,631,462
6,167,643 387,463 441,849 ( 5,154,923) ( 856,580) 6,011,503) ( ( 2,842,065) General Revenues:

Taxes:

Property Tax 2,214,079 2,214,079 0 2,094,540
Sales Tax 1,566,046 1,566,046 0 1,520,602
Motor Vehicle Tax 7,625 7,625 0 8,666
Franchise Tax 203,113 203,113 0 180,346
Other Taxes 1,160,272 1,160,272 0 512,592
Investment Earnings 141,490 171,787 313,277 ( 481,265)
Gain (Loss) On Sale Of Property 31,346 0 31,346 8,990
Transfers 0 0 0 ( 2)
Total General Revenues And Transfers 5,292,625 203,133 5,495,758 3,844,469 Change In Net Position 137,702 ( 653,447) ( 515,745) 1,002,404 Net Postion - Beginning 33,627,828 28,168,583 61,796,411 60,794,007 Prior Period Adjustment 0 0 0 0
Net Postion - Beginning Adjusted 33,627,828 28,168,583 61,796,411 60,794,007 Net Postion - Ending 33,765,530 27,515,136 61,280,666 61,796,411 Program Revenues
Net (Expense) Revenue And
Total

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
19

JUNE 30, 2023
Transportation
Measure Mitigation
General K Fund
Assets
Cash And Investments 4,541,143 1,728,107 1,525,390
Accounts Receivable 466,418 201,792 6,341
Loans Receivable 0
Due From Other Funds 158,416 1,822,443 0
Sewer Fund Loan 0 0
Prepaid Expenses 68,469 0 0
Total Assets 5,234,446 1,929,899 3,354,174
Liabilities
Accounts Payable 364,442 17,452 0
Compensated Absences 0 0 0
Due To Other Funds 0 0 0
Loans Payable 0 0 0
Other Liabilities 1,265,153 0 0
Total Liabilities 1,629,595 17,452 0
Fund Balances
Nonspendable 226,885 0 0
Restricted 0 1,912,447 3,354,174
Committed 0 0 0
Assigned 0 0 0
Unassigned 3,377,966 0 0
Total Fund Balances 3,604,851 1,912,447 3,354,174
Total Liabilities And Fund Balances 5,234,446 1,929,899 3,354,174

CITY OF ESCALON

BALANCE SHEET

GOVERNMENTAL FUNDS
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
20

City
Transportation Hall Fees Other
Fund Fund Funds 2023 2022
1,697,896 1,615 2,303,528 11,797,679 10,454,790
7,071 3 43,754 725,379 1,012,925
0 0 0 0 0
0 6,661,548 0 8,642,407 8,835,141
0 0 0 0 0
0 0 0 68,469 33,054
1,704,967 1,618 9,008,830 21,233,934 20,335,910
0 0 27,566 409,460 419,588
0 0 0 0 0
2,969,036 0 157,133 3,126,169 3,126,169
0 5,514,955 0 5,514,955 5,514,955
0 0 0 1,265,153 1,037,469
2,969,036 0 5,699,654 10,315,737 10,098,181
0 0 0 226,885 191,119
1,704,967 2,821,745 0 9,793,333 9,631,257
0 0 497,802 497,802 491,523
0 0 146,521 146,521 136,957
2,967,418) 0 ( ( 156,892) 253,656 ( 213,127)
1,704,967 ( 2,967,418) 3,309,176 10,918,197 10,237,729
1,704,967 1,618 9,008,830 21,233,934 20,335,910
Total Governmental Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
21

CITY OF ESCALON

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Total fund balances - governmental funds 10,918,197
Total net position reported for governmental activities in the statement of net position is different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of:

Land 9,927,214
Construction In Progress 553,395
Infrastruture net of $13,306,413 accumulated depreciation 11,339,259 Buildings and Improvements, net of $4,938,766 accumulated depreciation 9,078,892 Equipment and Vehicles, net of $2,340,962 accumulated depreciation 2,289,024 Total capital assets 33,187,784
Deferred Outflow of Resources 2,015,011
Long-term liabilities applicable to the City's governmental activities are due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the statement of net assets.

Notes payable ( 5,516,238)
Compensated absences ( 424,992)
Net Pension Liability ( 5,176,273)
Deferred Inflows of Resources ( 1,255,183)
Total long-term liabilities ( 12,372,686)
Deferred Bond issuance cost are not current assets or financial resources and, therefore, are not reported in the Governmental Fund Balance Sheet 17,224 Total net position - governmental activities 33,765,530

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
22

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Transportation
Measure Mitigation
General K Fund
Revenues
Property Tax 2,214,079 0 0
Sales Tax 1,566,046 0 0
Other Tax And Franchises 1,021,614 0 0
Licenses And Permits 213,552 0 0
Fines And Forfeitures 33,723 0 0
Investment Earnings 48,147 21,749 18,575
Intergovernmental 26,441 419,457 0
Impact Fees 0 0 8,005
Service Charges And Miscellaneous 646,223 0 0
Total Revenues 5,769,825 441,206 26,580
Expenditures
Current
General Government 414,749 0 0
Public Safety 3,393,284 0 0
Public Works 356,032 0 0
Community Development 423,877 0 0
Culture And Leisure 581,275 0 0
Debt Service
Principal 0 0 0
Interest & Other Charges 0 0 0
Capital Outlay 0 490,086 0
Total Expenditures 5,169,217 490,086 0
Excess (Deficiency) Of Revenues
Over Expenditures 600,608 ( 48,880) 26,580
Other Financing Sources (Uses)
Sale Of Property 0 0 0
Operating Transfers In 204,500 0 0
Operating Transfers Out ( 304,418) 0 0
Total Other Financing Sources (Uses) ( 99,918) 0 0
Net Change In Fund Balances 500,690 ( 48,880) 26,580
Fund Balance - Beginning 3,104,161 1,961,327 3,327,594
Fund Balance- Ending 3,604,851 1,912,447 3,354,174

CITY OF ESCALON

GOVERNMENTAL FUNDS

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
23

City
Transportation Hall Fees Other
Fund Fund Funds 2023 2022
0 0 0 2,214,079 2,094,540
0 0 0 1,566,046 1,520,602
0 0 0 1,021,614 356,223
0 0 0 213,552 239,883
0 0 0 33,723 52,015
19,888 4 33,127 141,490 ( 226,734)
0 0 547,018 992,916 1,241,176
0 1,614 19,016 28,635 120,861
0 0 153,402 799,625 866,956
19,888 1,618 752,563 7,011,680 6,265,522
0 0 0 414,749 0
0 0 160,619 3,553,903 3,005,192
0 0 0 356,032 299,876
0 0 206,870 630,747 780,894
0 0 0 581,275 525,330
0 0 166,245 166,245 163,271
0 0 138,173 138,173 153,306
0 0 0 490,086 1,173,986
0 0 671,907 6,331,210 6,101,855
19,888 1,618 80,656 680,470 163,667
0 0 0 0 0
0 0 304,418 508,918 1,684,807
0 0 ( 204,500) ( 508,918) ( 3,134,808)
0 0 99,918 1,450,001) 0 (
19,888 1,618 180,574 680,470 ( 1,286,334)
1,685,079 ( 2,969,036) 3,128,602 10,237,727 11,565,452
1,704,967 ( 2,967,418) 3,309,176 10,918,197 10,279,118
Total Governmental Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
24

CITY OF ESCALON

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net change in fund balances - total governmental funds 680,470 The changes in net position reported for governmental activities in the statement of activities is different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense ($1,534,683) exceeded capital outlay ($490,086) in the current period. ( 1,044,597) The net effect of various miscellaneous transactions involving capital assets 0 (i.e., sales, trade-ins and contributions) is to increase (decrease) net position.

Repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions do not have any affect on net assets. 166,245
Bond Issuance Cost Expense ( 3,831)
The recording of accrued compensated absences does not require the use of current financial resources and, therefore, is not reported ( 424,992) as expenditures in governmental funds. The liability is included in the statement of activities.

The net change in pension expense either contributed to pension plan in current fiscal year not included on statement of activities; or expenses reported in statement of activities that do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 558,085 Changes in net position of governmental activities ( 68,620)

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
25

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual

REVENUES
Property Tax 2,114,516 0 2,214,079 2,094,540 99,563
Sales Tax 1,506,222 0 1,566,046 1,520,602 59,824
Other Tax And Franchise Fees 253,200 1,021,614 463,100 558,514 356,223 Licenses And Permits 221,250 0 213,552 ( 239,883 7,698) Intergovernmental 16,500 0 26,441 10,017 9,941
Fines And Forfeitures 5,000 20,500 33,723 13,223 52,015 Investment Earnings 12,000 0 48,147 36,147 ( 88,730)
Service Charges And Miscellaneous 192,600 435,050 646,223 211,173 536,736 Total Revenues 4,789,138 450,800 5,769,825 4,721,286 980,687

EXPENDITURES
General Government 8,300 0 414,749 406,449 0
Public Safety 3,180,286 192,734 3,393,284 3,000,028 212,998 Public Works 327,014 326,814 356,032 299,876 29,218
Community Development 688,744 688,744 423,877 ( 264,867) 611,299 Culture And Leisure 628,995 628,995 581,275 ( 525,330 47,720) Capital Outlay 239,240 239,240 239,240) 0 ( 115,690
Total Expenditures 2,076,727 5,072,379 5,169,217 4,552,223 96,838 Excess (Deficiency) Of Revenues
Over Expenditures ( 1,625,927) ( 283,241) 600,608 883,849 169,063

OTHER FINANCING SOURCES (USES)
Transfers In 251,941 251,941 204,500 ( 242,705 47,441)
Transfers Out ( 1,690,316) ( 1,690,316) ( 1,385,898 304,418) ( 1,756,363) Total Other Financing Sources And (Uses) ( 1,438,375) ( 1,438,375) ( 1,338,457 99,918) ( 1,513,658) Net Change In Fund Balance ( 3,064,302) ( 1,721,616) 2,222,306 500,690 ( 1,344,595) Fund Balance - Beginning 3,104,161 3,104,161 3,104,161 4,448,756 0 Fund Balance - Ending 1,382,545 39,859 3,604,851 2,222,306 3,104,161 Budgeted Amounts

CITY OF ESCALON
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
26

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual
General Government
Legislative 0 173,975 0 173,975 0
Management And Support 8,300 0 240,774 232,474 31,583
Total General Government 8,300 0 414,749 232,474 31,583 Public Safety
Police 0 2,987,552 3,117,826 130,274 2,861,105
Street Lights 104,463 104,463 120,371 15,908 88,292
Animal Control 167,217 167,217 153,975 ( 13,242) 131,415 Code Enforcement 12,294 12,294 11,182) 1,112 ( 3,323
Total Public Safety 283,974 3,271,526 3,393,284 121,758 3,084,135 Public Works
Street Maintenance (Trees) 31,507 31,507 33,798 2,291 36,910 Street Maintenance 403,507 403,307 322,234 ( 81,073) 262,966 Total Public Works 435,014 434,814 356,032 ( 78,782) 299,876 Community Development
Planning 250,937 250,937 138,551 ( 112,386) 193,576
Building Regulation 210,643 210,643 127,155 ( 83,488) 205,188 Engineering 227,164 227,164 158,171 ( 68,993) 212,535
Total Community Development 688,744 688,744 423,877 ( 264,867) 611,299 Culture And Leisure
Parks 160,612 160,612 162,986 152,911 2,374
Recreation 289,694 289,694 299,918 10,224 244,145
Library 63,932 63,932 47,519 ( 16,413) 48,608
Community Center 114,757 114,757 70,852 ( 43,905) 79,666 Total Culture And Leisure 628,995 628,995 581,275 ( 47,720) 525,330 Total General Fund 2,036,727 5,032,379 5,169,217 ( 4,552,223 37,137) Budgeted Amounts

CITY OF ESCALON

GENERAL FUND
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
27

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual

REVENUES
Interest Income 3,000 21,749 3,000 41,471) 18,749 (
Intergovernmental 300,000 314,500 419,457 301,919 104,957 Total Revenues 303,000 317,500 441,206 123,706 260,448

EXPENDITURES
Supplies And Services 0 0 0 0 0
Capital Outlay 416,500 416,500 490,086 188,865 73,586
Total Expenditures 416,500 416,500 490,086 73,586 188,865 Excess (Deficiency) Of Revenues
Over Expenditures ( 113,500) ( 99,000) ( 48,880) 50,120 71,583

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 0
Total Other Financing Sources And (Uses) 0 0 0 0 0
Net Change In Fund Balance ( 113,500) ( 99,000) ( 48,880) 71,583 50,120 Fund Balance - Beginning 1,961,327 1,961,327 1,961,327 1,889,744 0 Fund Balance - Ending 1,847,827 1,862,327 1,912,447 1,961,327 50,120

CITY OF ESCALON

MEASURE K
Budgeted Amounts
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
28

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual

REVENUES
Interest Income 4,000 18,575 4,000 25,272) 14,575 (
Impact Fees 10,000 10,000 8,005 ( 20,868 1,995)
Total Revenues 14,000 26,580 14,000 12,580 ( 4,404)

EXPENDITURES
Supplies And Services 0 0 0 0 0
Capital Outlay 0 0 0 0 0
Total Expenditures 0 0 0 0 0
Excess (Deficiency) Of Revenues
Over Expenditures 14,000 26,580 14,000 12,580 ( 4,404)

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 0
Total Other Financing Sources And (Uses) 0 0 0 0 0
Net Change In Fund Balance 14,000 26,580 14,000 12,580 ( 4,404) Fund Balance - Beginning 3,327,594 3,327,594 3,327,594 3,331,998 0 Fund Balance - Ending 3,341,594 3,354,174 3,341,594 3,327,594 12,580

CITY OF ESCALON

TRANSPORTATION MITIGATION
Budgeted Amounts
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
29

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual

REVENUES
Interest Income 3,000 19,888 3,000 24,778) 16,888 (
Intergovernmental 243,500 243,500 243,500) 0 ( 474,200
Miscellaneous Revenues 0 0 0 0 0
Total Revenues 246,500 246,500 19,888 ( 226,612) 449,422

EXPENDITURES
Supplies And Services 100,000 100,000 100,000) 0 ( 41,389 Capital Outlay 0 0 0 0 0
Total Expenditures 100,000 100,000 100,000) 0 ( 41,389
Excess (Deficiency) Of Revenues
Over Expenditures 146,500 146,500 19,888 ( 126,612) 408,033

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 0
Total Other Financing Sources And (Uses) 0 0 0 0 0
Net Change In Fund Balance 146,500 146,500 19,888 ( 408,033 126,612) Fund Balance - Beginning 1,685,079 1,685,079 1,685,079 1,277,046 0 Fund Balance - Ending 1,831,579 1,831,579 1,704,967 ( 1,685,079 126,612)

CITY OF ESCALON

TRANSPORTATION FUND
Budgeted Amounts
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
30

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Variance
With Final
Budget
Over 2022
Original Final Actual (Under) Actual

REVENUES
Interest Income 0 0 4 64) 4 (
Impact Fees 3,000 0 1,614 ( 1,386) 4,930
Total Revenues 3,000 0 1,618 ( 1,382) 4,866

EXPENDITURES
Supplies And Services 0 0 0 0 0
Interest 0 0 0 11,404 0
Capital Outlay 0 0 0 0 0
Total Expenditures 0 0 0 0 11,404
Excess (Deficiency) Of Revenues
Over Expenditures 3,000 0 1,618 ( 1,382) ( 6,538)

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 0
Total Other Financing Sources And (Uses) 0 0 0 0 0
Net Change In Fund Balance 3,000 0 1,618 ( 1,382) ( 6,538) Fund Balance - Beginning ( 2,969,036) ( 2,969,036) ( 2,969,036) 2,962,498) 0 ( Fund Balance - Ending ( 2,969,036) ( 2,966,036) ( 2,967,418) ( 2,969,036) 1,382) (

CITY OF ESCALON

CITY HALL FEES
Budgeted Amounts
2023

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
31

JUNE 30, 2023
Storm
Sewer Water Drain Transit
Fund Fund Fund Fund 2023 2022
Assets
Cash And Investments 7,214,845 5,965,798 471,160 ( 13,562,448 89,355) 13,536,199 Accounts Receivable 305,057 392,681 2,143 699,881 0 919,520 Loan Receivable 77,871 0 97,471 0 175,342 624
Prepaids 0 0 0 0 0 0
Fixed Assets 13,562,208 14,306,382 3,309,992 31,617,231 438,649 31,617,229 Accumulated Depreciation ( 6,124,608) ( 4,101,256) ( 1,249,547) ( 11,792,816) 317,405) ( ( 11,042,697) Loan Fees 0 0 0 0 77,968 0
Work In Progress 222,064 219,483 0 441,547 0 441,548
Total Assets 15,257,437 16,783,088 2,533,748 34,703,633 129,360 35,550,391 Deferred Outflows Of Resources
Current Pension Plan
Contribution 207,852 252,154 48,348 0 508,354 126,638
Liabilities
Accounts Payable 389,162 47,955 26,039 2,056 465,212 167,064 Customer Deposits 47,147 0 0 47,147 0 42,602
Compensated Absences 26,693 26,841 7,113 60,647 0 60,647 General Fund Loan 0 0 0 0 0 0
Other Liabilities 0 0 2,798 0 2,798 4,690
Net Pension Liability 499,495 633,264 131,362 1,264,121 0 607,375 Loan Payable 0 0 0 0 0 0
Lease Payable 884,774 1,562,201 0 2,446,975 0 2,481,180 Bond Payable 2,865,402 0 0 2,865,402 0 3,178,721
Total Liabilities 4,665,526 2,317,408 140,531 7,152,302 28,837 6,542,278 Deferred Inflows Of Resources
Deferral Of Pension Expense 232,688 255,667 56,194 0 544,549 966,166 Net Position
Invested In Capital Assets,
Net Of Related Debt 3,909,488 8,862,408 2,060,445 121,244 14,953,585 15,356,179 Restricted For Debt Service 0 0 0 0 0 0
Unrestricted 6,657,587 5,599,759 324,926 ( 12,561,551 20,721) 12,812,406 Total Net Position 10,567,075 14,462,167 2,385,371 27,515,136 100,523 28,168,585 Totals

CITY OF ESCALON

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Business-Type Activities-Enterprise Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
32

FOR THE YEAR ENDED JUNE 30, 2023
Storm
Sewer Water Drain Transit
Fund Fund Fund Fund 2023 2022
Operating Revenues
Service Charges 2,796,762 2,047,048 183,030 2,367 5,029,207 4,925,689 Intergovernmental 0 0 185,792 0 185,792 379,123
Miscellaneous Revenues 0 0 0 0 7,049 0
Total Operating Revenues 2,796,762 2,047,048 188,159 183,030 5,214,999 5,311,861 Operating Expenses
Employee Services 292,667 326,749 15,624 58,499 693,539 965,147 Supplies And Services 2,427,600 1,593,602 347,704 156,102 4,525,008 1,986,956 Depreciation 377,748 293,879 36,773 41,719 750,119 710,498 Total Operating Expenses 3,098,015 2,214,230 400,101 256,320 5,968,666 3,662,601 Operating Income (Loss) ( 301,253) ( 167,182) ( 211,942) 73,290) ( ( 753,667) 1,649,260 Nonoperating Revenues (Expenses)
Investment Earnings 92,168 73,293 5,921 171,787 405 ( 254,531) Connection Fees 47,431 15,470 0 0 62,901 164,086
Development Fees 0 0 0 0 0 0
Gain/Loss on Sale of Assets 0 0 31,346 0 31,346 4,979
Development Contribution 0 0 0 0 0 0
Amortization of Bond Issuance Cost ( 2,250) 0 0 0 2,250) ( ( 8,373) Interest Expense ( 122,315) ( 41,249) 0 0 163,564) ( ( 173,511) Total Nonoperating Revenues (Expenses) 15,034 47,514 31,751 5,921 100,220 ( 267,350) Income Before Transfers ( 286,219) ( 119,668) ( 180,191) 67,369) ( ( 653,447) 1,381,910 Operating Transfer In 0 0 0 0 2,297,716 0
Operating Transfer Out 0 0 0 0 847,717) 0 (
Total Other Financing Sources (Uses) 0 0 0 0 1,449,999 0 Change In Net Position ( 286,219) ( 119,668) ( 180,191) 67,369) ( ( 653,447) 2,831,909 Total Net Postion - Beginning 10,853,294 14,581,835 2,452,740 280,714 28,168,583 25,336,676 Total Net Position - Ending 10,567,075 14,462,167 2,385,371 100,523 27,515,136 28,168,585 Totals
Business-Type Activities-Enterprise Funds

CITY OF ESCALON

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
33

FOR THE YEAR ENDED JUNE 30, 2023
Storm
Sewer Water Drain Transit
Fund Fund Fund Fund 2023 2022

CASH FLOWS FROM OPERATING

ACTIVITIES
Receipts From Customers And Users 2,776,565 2,113,539 267,481 181,388 5,338,973 5,060,012 Payments To Suppliers ( 2,133,751) ( 1,576,858) ( 358,510) 156,893) ( 4,226,012) ( ( 1,993,367) Payments To Employees ( 358,017) ( 393,001) ( 73,484) ( 15,624) ( 840,126) ( 875,742) Net Cash Provided By Operating Activities 284,797 143,680 ( 48,989) ( 106,653) 272,835 2,190,903

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfer Ins 0 0 0 0 2,297,716 0
Transfer Out 0 0 0 0 0 ( 847,717)
Net Cash Provided (Used) By Capital
And Related Financing Activities 0 0 0 0 0 1,449,999

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Connection Fees 47,431 15,468 0 0 62,899 164,084
Development Fees 0 0 0 0 0 0
Due to Other Funds 0 0 0 0 0 0
Purchase Of Capital Assets 0 0 0 0 784,870) 0 (
Gain/Loss On Sale Of Capital Assets 0 0 31,346 0 31,346 4,979 Proceeds from New Loan 0 0 0 0 0 0
Principal Paid On Capital Debt ( 258,855) ( 90,200) 0 0 349,055) ( ( 328,755) Interest Paid On Capital Debt ( 122,315) ( 41,249) 0 0 163,564) ( ( 173,511) Net Cash Provided (Used) By Capital
And Related Financing Activities ( 333,739) ( 115,981) 31,348 0 418,374) ( 1,118,073) (

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Received 92,168 73,293 5,921 171,787 405 ( 254,530) Net Cash Provided By Investing Activities 92,168 73,293 5,921 171,787 405 ( 254,530) Net Increase In Cash And Cash Equivalents 43,226 100,992 ( 74,900) 43,068) ( 2,268,301 26,250 Cash And Equivalents, July 1 7,171,619 5,864,804 514,229 ( 14,453) 13,536,199 11,279,397 Cash And Equivalents, June 30 7,214,845 5,965,796 89,353) 471,161 ( 13,562,449 13,547,698

CITY OF ESCALON

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Business-Type Activities-Enterprise Funds
Totals

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
34

Storm
Reconciliation Of Operating Income To Sewer Water Drain Transit Net Cash Provided (Used) By Operating Fund Fund Fund Fund 2023 2022 Activities
Operating Income ( 301,253) ( 167,182) ( 211,942) 73,290) ( ( 1,649,260 753,667) Adjustments To Reconcile Operating
Income
To Net Cash Provided (Used) By
Operating Activities
Depreciation Expense 377,748 293,879 36,773 41,719 750,119 710,498 Receipts From Interfund Services Provided
Deferred Outflows of Resources ( 170,170) ( 172,522) ( 39,024) 381,716) 0 ( 41,550 Accounts Receivable ( 20,197) 64,685 ( 1,642) 79,322 122,168 ( 243,469) Increase (Decrease) In
Accounts Payable 293,849 14,004 ( 10,806) 791) ( 296,256 ( 9,815) Compensated Absences 0 0 ( 0 0) ( 2,262 0)
Loan Receivables 0 0 0 0 0 0
Deferred Inflows of Resources ( 187,959) ( 190,555) ( 43,103) 421,617) 0 ( 786,682 Net Pension Liability 292,780 296,825 67,141 656,746 0 ( 741,090) Customer Deposits 4,545 0 0 0 4,545 ( 4,974)
Net Cash Provided (Used) By Operating
Activities 284,798 143,680 ( 106,653) 48,990) ( 2,190,903 272,835 Totals
Business-Type Activities-Enterprise Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
35

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

36 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Escalon, California (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).

The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. In June 1999, the GASB unanimously approved Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. Certain of the significant changes in the Statement include the following:
 A Management and Discussion and Analysis (MD&A) section providing an analysis of the City’s overall financial position and results of operations.  Financial statements prepared using the full accrual accounting for all of the City’s activities, except for infrastructure (roads, streets, bridges, etc.)  A change in the fund financial statements to focus on the major funds.

These and other changes are reflected in the accompanying financial statements (including notes to financial statements). The more significant of the City’s accounting policies are described below:

A. Financial Reporting Entity
The accompanying basic financial statements present the financial activity of the City of Escalon (primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Discretely presented component units represent other legally separate organizations for which the primary government is financially accountable or for which the nature and significance of their relationship to the primary government are such that exclusion would cause the City’s reporting entity to be misleading or incomplete. The City has one component unit, Escalon Public Facilities Corporation (the Corporation). The City Council serves as the Board of the Public Facilities. Therefore, this entity is reported as blended component unit within the City’s comprehensive annual financial report (CAFR). Both the City and its blended component unit have a June 30 year-end.

City of Escalon
The City (primary government) was incorporated on March 12, 1957 under the general laws of the State of California. The City provides the full range of municipal services as contemplated by statute. Services provided include sewer, water, storm drain, transit, public safety (police and civil defense), street construction and maintenance, culture-recreation, public improvements, planning and zoning, and general administrative and support services.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

37 City of Escalon (continued)
The City operates under a Council-Manager form of government. The City Council consists of five members elected at large for overlapping four-year terms. The Mayor is appointed by the City Council for a two-year term. The City Council appoints a City Manager and City Attorney. In addition the City Council sits as the governing board of the City’s one component unit, Escalon Public Facilities Corporation.

Component Unit – Escalon Public Facilities Corporation was established on January 11, 2008 and is a separate governmental entity. The Corporation is responsible for the administration and providing services for the public facilities. The Corporation financial data and transactions are included within the Debt Service Fund; no separate financial report is issued for the Corporation.

B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

38 C. Measurement Focus, Basis of Accounting and Basis of Presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental longterm debt and acquisitions under capital leases are reported as other financing sources. Property taxes and taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.) net of estimated refunds and uncollectible amounts, and interest associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered measurable and available only when cash is received by the City. The City reports the following major governmental funds:

The General Fund is 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.

The Measure K Fund- To account for receipts and disbursements of the Measure K funds.

The Transportation Mitigation Fund- To account for development impact fees collected.

These fees are used for infrastructure and capital expenditure resulting from new developments.

Transportation Fund - To account for the City’s allocation of local transportation revenues for streets, roads, and sidewalk improvements, and payments for rail services.

City Hall Fund - To account for funds received from developer fees collected to mitigate the additional impact on the City’s administration functions as a result of the anticipated growth in the community.

The city reports the following major proprietary funds.

The Water Fund accounts for the activities of the City’s water service.

The Sewer Fund accounts for the activities of the City’s sewer service.

The Storm Drain Fund accounts for the activities of the City’s storm drain operation.

The Transit Fund accounts for the activities of the City’s transit service.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

39 C. Measurement Focus, Basis of Accounting and Basis of Presentation (continued) Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Amounts reported as program revenues include 1) charges to customers and applicants, for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principle operating revenues of the enterprise and internal service funds are charges for sales and services.

Operating expenses for enterprise funds include salaries and employee benefits, maintenance and operation of systems and facilities, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources, as they are needed.

D. Assets, Liabilities, Net Position or Equity

1. Cash and Investments
In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund’s equity share of the City’s cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund’s equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated quarterly. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

40 1. Cash and Investments (continued)
In accordance with the State of California Government Code, the City adopts an investment policy annually that, among other things, authorizes types of investments. Authorized investments include:
 Securities of the U.S. government or its agencies
 Certificates of Deposit (or time deposits) placed with commercial banks and/or savings and loan associations
 Bankers Acceptances
 State Treasurer’s Local Agency Investment Fund (LAIF)  Passbook savings account demand deposits
 Small Business Administration Loans
 Other products which are totally guaranteed and insured by the U.S government.

Investments for the City are reported at fair value. LAIF operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

For purposes of the statement of cash flows, the city has defined cash and cash equivalents to be change and petty cash funds, equity in the City’s cash and investment pool and restricted, nonpooled investment with initial maturities of three months or less.

2. Receivables and Payables
Activity between funds that are representative of lending/borrowing outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans).

All other outstanding balances between funds are reported as “due to/from other funds”.

Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and tax receivables are shown net of an allowance for uncollectible accounts and estimated refunds due.

3. Property Taxes
Property taxes are levied on the first day of January by the county assessor and are payable to the county tax collector in two installments.

The first installment is due November 1st, and is delinquent on December 10th, the second installment is due February 1st and is delinquent on April 10th. Taxes become a lien on the property on January 1st, and on the date of transfer of title, and the date of new construction.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

41 3. Property Taxes (continued)
The minimum property value which is taxed is $2,000; however, tax bills are prepared for properties valued at less than $2,000 if there is a special assessment to be collected. Article 13A of the California Constitution states, "The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent tax is to be collected by the counties and apportioned according to law to the districts within the counties." The City has elected under state law (TEETER) to receive all of the annual property assessments in three installments as follows:

December 55%
April 40%
June 5%
100%

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

5. Restricted Assets
Certain proceeds of revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

6. Capital Assets
Capital assets, which include property, plant, and equipment and infrastructure assets (e.g. roads, bridges, sidewalks, traffic lights and signals, street lights and similar items), are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 for property, plant, equipment and infrastructure. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation is recorded in amounts sufficient to relate the cost of the depreciable assets to operations over their estimated service life using the straight-line method.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

42 6. Capital Assets (Continued)
Assets are depreciated as follows:

Buildings and Improvements 50 years
Machinery and Equipment 3-15 years
Improvements 40 years
Streets and Roads 40 years
Traffic Signals 30 years
Curb, Gutter, Sidewalks, & Median Curbs 50 years
Storm Drains 100 years
Water System 50 years
Sewer System 50-65 years

7. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits. All vacation and sick leave benefits are accrued as earned by employees. All vacation and sick leave pay is accrued when incurred in the government-wide financial statements. A liability for vacation pay is reported in the governmental and proprietary funds. The changes of the compensated absences were as follows:

Governmental Business Type
Activities Activities Totals
Beginning Balance 179,836 60,647 240,483
Additions 334,024 48,439 382,463
Deletions ( 158,364) ( 39,591) ( 197,955)
Ending Balance 355,496 69,495 424,991

8. Pensions
For purposes of on liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Escalon’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ 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.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

43 9. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position.

Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

10. Net Position and Fund Equity
In the government-wide financial statements, net position are reported in three categories: net position invested in capital assets, net of related debt; restricted net position and unrestricted net position. Restricted net position represent net position restricted by parties outside the City (such as creditors, grantors, contributors, laws and regulations of other governments) and include unspent proceeds of bonds issued to acquire or construct capital assets. The City’s other restricted net position are temporarily restricted (ultimately expendable assets). All other net position are considered unrestricted.

In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Non-spendable, Restricted, Committed, Assigned, and Unassigned. Non-spendable and Restricted fund balances represent the restricted classifications, and Committed, Assigned, and Unassigned represent the unrestricted classifications.
 Non-spendable fund balance includes amounts that cannot be spent because either 1) it is not in a spendable form, such as inventory or prepaid items or 2) legally or contractually required to be maintained intact.
 Restricted fund balance includes amounts that are constrained for specific purposes which are externally (outside the City) imposed by creditors, grantors, contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling legislation.  Committed fund balance includes amounts that are constrained for specified purpose that are internally imposed by the government through formal action of the highest level of decisionmaking authority and does not lapse at year-end.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

44 10. Net Position and Fund Equity (continued)
 Assigned fund balance represents limitations imposed by management.  Unassigned fund balance represents the residual net resources in excess of the other classifications. The General Fund is the only fund that can report a positive unassigned fund balance and any governmental fund can report a negative unassigned fund balance.

When both restricted and unrestricted resources are available for specific expenditures, restricted resources are considered spent before unrestricted resources, unless there are legal documents/contracts that prohibit doing this, such as a grant agreement requiring dollar for dollar spending. Within unrestricted resources, committed and assigned are considered spent (if available) before unassigned amounts.

Transportation
Measure Mitigation Transportation City Hall Other
General K Fund Fund Fees Funds Totals
Fund Balances:

Nonspendable 226,885 0 0 0 0 226,885 0
Restricted To:

Streets and Highway 1,912,447 0 3,354,174 1,704,967 1,753,511 0 8,725,099 Housing 0 0 0 0 900,914 0 900,914
Public Safety 0 0 0 0 124,879 0 124,879
Community Development 0 0 0 0 42,441 0 42,441
Committed To:

Capital Projects 0 0 0 0 420,000 0 420,000
Community Development 0 0 0 0 12,498 0 12,498
Park and Recreation 0 0 0 0 65,304 0 65,304
Reserves 0 0 0 0 0 0 0
Assigned To
Equipment Reserve 0 0 0 0 0 0 0
Debt Services 0 0 0 0 0 0 0
CalPERS Reserve 0 0 0 0 0 0 0
Streets and Highway 0 0 0 0 0 0 0
Park and Recreation 0 0 0 0 146,521 0 146,521
Unassigned 3,377,966 0 0 2,967,418) 0 ( ( 156,892) 253,656 Total Fund Balances 3,604,851 1,912,447 3,354,174 1,704,967 ( 2,967,418) 10,918,197 3,309,176

11. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principals requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

45 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the general fund, and special revenue, capital projects, debt service, and enterprise funds. These budgets are adopted and presented for reporting purposes on a basis consistent with generally accepted accounting principles.

The appropriated budget is prepared by fund, function, and department. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. The council can make supplemental budgetary appropriations throughout the year.

B. Deficit Fund Equity
For the year ended June 30, 2023, the following funds have a deficit fund balance:

Library Fees Fund $ 156,892
City Hall Fund $ 2,967,421
Future revenues are expected to offset the Library Fees and City Hall Funds.

III. DETAILED NOTES ON ALL FUNDS
A. Cash And Investments
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments 25,360,127
Total cash and investments 25,360,127
Cash and investments as of June 30, 2023 consist of the following:

Cash on hand 500
Deposits with financial institutions 572,230
Investments in CSJVRMA 10,869,501
Investments in LAIF 13,917,896
Total cash and investments 25,360,127

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

46 Investments Authorized by the City’s Investment Policy The City’s investment policy authorizes investment in the local government investment pool administered by the State of California (LAIF). The City’s investment policy also authorizes cash to be invested in Certificates of Deposits, Bankers Acceptances, and Passbook Savings Demand Deposits. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of year-end, the weighted average maturity of the investments contained in the LAIF investment pool is approximately 8.54 months.

Maturity Date
State investment pool 13,917,896 8.54 months average maturity Total 13,917,896
Disclosures Relating to 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. LAIF does not have a rating provided by a nationally recognized statistical rating organization.

Concentration of Credit Risk
The investment policy of the City’s contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

47 Custodial Credit Risk (continued)
Beginning January 1, 2013, funds deposited in a non-interest - bearing transaction account no longer will receive unlimited deposit insurance covered by FDIC. All depositor’s accounts at an insured depository institution including all non-interest- bearing transactions accounts will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000) for each deposit insurance ownership category.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Investment in State Investment Pool
The City’s is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Deferred Compensation Plan
The City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them and distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for exclusive benefit of plan participants and their beneficiaries. Since the assets held under the plan are not the City’s property and are not subject to claims by general creditors of the City, does not report the deferred compensation plan assets on its financial statements.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

48 B. Accounts Receivable
Receivables at June 30, 2023 for the City’s individual major funds and non-major funds in the aggregate, including applicable allowances for uncollectible accounts, are as follows. All receivables are expected to be collected within one year.

City Non-Major
Measure Transport. Transport. Hall Fees GovernGeneral K Mitigation Fund Fund mental Total Governmental
Activities:

Utility Billing 66,494 0 0 0 0 0 66,494
Intergovermental 20,773 75,000 0 0 0 43,754 139,527
Other 379,151 126,792 6,341 7,071 4 0 519,359
Total 466,418 201,792 6,341 7,071 4 43,754 725,380
Sewer Water
Storm
Drain Transit Total
Business-Type Activities:

Utility Billing 214,842 368,572 0 0 583,414
Intergovermental 0 0 0 0 0
Other 90,215 24,109 2,143 0 116,467
Total 305,057 392,681 2,143 0 699,881

C. Loans Receivable
The City has a loan program to assist employees with purchase of personal computers. These loans are for a maximum of $3,000, bear no interest and are repaid by monthly payroll deductions. As of June 30, 2023, the outstanding is $0.00.

D. Evaluation of Subsequent Events
The City has evaluated subsequent events through August 27, 2024 the date which the financial statements were available to be issued.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

49 E. Capital Assets
Capital asset activity for the year ended June 30, 2023 was as follows:

Beginning
Balance Increases Decreases
Ending
Balance
Governmental-type Activities
Capital assets not being depreciated:

Land 9,927,214 0 9,927,214 0
Construction in progress 490,086 63,309 553,395 0 Total capital assets not being depreciated 9,990,523 490,086 10,480,609 0 Capital assets being depreciated:

Infrastructure 24,645,672 0 24,645,672 0 Equipment and vehicles 4,629,986 0 4,629,986 0 Building and improvements 14,017,658 0 14,017,658 0 Total capital assets being depreciated 43,293,316 0 43,293,316 0 Less accumulated depreciation for:

Infrastructure ( 12,427,477) ( 878,935) 13,306,412) 0 ( Equipment and vehicles ( 2,251,395) ( 271,246) 2,522,641) 0 ( Building and improvements ( 4,554,264) ( 384,202) 4,938,466) 0 ( Total accumulated depreciation 19,233,136) ( ( 1,534,383) 20,767,519) 0 ( Net capital assets being depreciated 24,060,180 ( 1,534,383) 22,525,797 0 Total net capital assets - Governmental-type activities 34,050,703 ( 1,044,297) 33,006,406 0 Depreciation was charged to functions/programs of the primary government as follows:

Government Activities:

General Government 188,646
Public Safety 88,501
Public Works 949,770
Community Development 217
Culture and Leisure 307,450
Total Depreciation Expense – Government Activities 1,534,584

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

50 E. Capital Assets (continued)
Capital asset activity for the year ended June 30, 2023 was as follows:

Beginning
Balance Increases Decreases
Ending
Balance
Business-type Activities
Capital assets not being depreciated:

Land 4,757,505 0 4,757,505 0
Construction In Progress 441,548 0 441,548 0 Total capital assets not being depreciated 5,199,053 0 5,199,053 0 Capital assets being depreciated:

Infrastructure 20,169,326 0 20,169,326 0 Equipment and vehicles 5,275,154 0 5,275,154 0 Building and improvements 1,415,245 0 1,415,245 0 Total capital assets being depreciated 26,859,725 0 26,859,725 0 Less accumulated depreciation for:

Infrastructure ( 8,217,883) ( 435,059) 8,652,942) 0 (
Equipment and vehicles ( 2,085,762) ( 287,196) 2,372,958) 0 ( Building and improvements ( 739,052) ( 27,864) 766,916) 0 ( Total accumulated depreciation 11,042,697) ( ( 750,119) 11,792,816) 0 ( Net capital assets being depreciated 15,817,028 ( 750,119) 15,066,909 0 Total net capital assets - Business-type activities 21,016,081 ( 750,119) 20,265,962 0 Depreciation was charged to functions/programs of the primary government as follows:

Business - Type Activities:

Water 293,879
Sewer 377,748
Storm Drain 41,719
Transit 36,773
Total Depreciation Expense – Business-Type Activities 750,119

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

51 F. Transfers
Interfund transfers for the year ended June 30, 2023 consisted of the following amounts:

Transfer Transfer
Fund In Out
General Fund 204,500 304,418
Gas Tax 0 104,000
SLESF 0 80,500
Civic/Comm Ctr Debt 163,776 0
Traffic Safety 0 20,000
Energy Lease Debt Services 140,642 0
Total 508,918 508,918

G. Long-Term Debt
Governmental-Type Activities:

Capital Lease
The City entered into a capital lease agreement with the Escalon Public Facilities Corporation for the purchase of and improvements to the Civic Center and renovation of the Community Center. At the end of the lease term the City will take ownership of all leased property. The City refinanced this lease on September 25, 2013. Under the new agreement the City will make monthly installments of $10,417 per month of principal and interest at 2.50% until September 25, 2015, then monthly installments of $13,648 per month until September 25, 2043. The capital lease outstanding balance is $2,600,363 as of June 30, 2023.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

52 G. Long-Term Debt (continued)
Year Ending
June 30
Principal Interest Total
2024 99,907 63,869 163,776
2025 102,433 61,343 163,776
2026 105,024 58,752 163,776
2027 107,681 56,095 163,776
2028 110,492 53,284 163,776
2029-2033 595,337 223,543 818,880
2034-2038 674,518 144,362 818,880
2039-2043 764,232 54,648 818,880
2044 40,739 169 40,908
Total 2,600,363 716,065 3,316,428
Equipment Lease
The City entered into a equipment lease agreement with the Sterling National Bank for the purchase of solar improvements to the Civic Center and renovation of the Community Center. At the end of the lease term the City will take ownership of all leased property. The City financed this lease on November 05, 2020. Under the new agreement the City will make payments are due annual installments, ranging from $45,207 to $83,742 through 2041 with interest of 2.57%. The principal amounts unpaid at June 30, 2023 are $2,748,467.

Year Ending
June 30
Principal Interest Total
2024 75,137 70,086 145,223
2025 81,826 68,170 149,996
2026 88,887 66,083 154,970
2027 96,339 63,817 160,156
2028 104,202 61,360 165,562
2029-2033 654,941 262,534 917,474
2034-2038 927,061 165,884 1,092,945
2039-2041 720,074 37,502 757,575
Total 2,748,467 795,435 3,543,902

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

53 Business-Type Activities:

The City entered into an agreement with the California State Water Resource Control Board (State Water Board) as part of the construction/implementation project know as the Well No. 1 Improvement Project. Under the agreement, the State Water Board approved funding up to $450,000. The City agreed to repay semi-annual with an interest rate of 1.70% per annum. The term of this agreement is from the state date of the project to the end date of January 1, 2024. The principal unpaid at June 30, 2023 is $26,389.

Year Ending
June 30
Principal Interest Total
2024 26,389 223 26,612
Total 26,389 223 26,612

During the current fiscal year, the City refinanced the 2000 Water and Wastewater Revenue Bonds into a new bond called 2018 Wastewater Revenue Refunding. The original proceeds were used for wastewater pipe improvements and other related capital improvements. The new proceeds were used to expand the financing to construct a new lift station and replace wastewater lines on South McHenry. Payments are due semi-annual installments, ranging from $142,082.33 to $195,348.90 through 2033 with interest of 3.27%. The principal amounts unpaid at June 30, 2023 are $357,117 and $2,508,288.

Principal Interest Total
2024 37,099 11,085 48,184
2025 41,232 11,085 52,317
2026 40,381 8,456 48,837
2027 44,889 7,062 51,951
2028 44,307 5,604 49,911
2029-2031 149,209 7,439 156,648
Total 357,117 50,731 407,848

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

54 G. Long-Term Debt (continued)
Year Ending
June 30
Principal Interest Total
2024 203,797 80,368 284,165
2025 210,517 73,650 284,167
2026 217,456 66,709 284,165
2027 224,625 59,541 284,166
2028 232,031 52,135 284,166
2029-2033 1,280,065 140,766 1,420,831
2024 139,797 2,286 142,083
Total 2,508,288 475,455 2,983,743
Equipment Lease
The City entered into an equipment lease agreement with the Sterling National Bank for the purchase of solar improvements to the Sewer Treatment center. At the end of the lease term the City will take ownership of all leased property. The City financed this lease on November 5, 2020. Under the new agreement the City will make payments are due annual installments, ranging from $45,207 to $83,742 through 2041 with interest of 2.57%. The principal amounts unpaid at June 30, 2023 are $884,774.

Year Ending
June 30
Principal Interest Total
2024 24,188 22,562 46,750
2025 26,341 21,945 48,286
2026 28,614 21,273 49,887
2027 31,013 20,544 51,557
2028 33,544 19,753 53,297
2029-2033 210,836 84,514 295,349
2034-2038 298,425 53,301 351,726
2039-2041 231,813 12,072 243,885
Total 884,774 255,963 1,140,737

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

55 G. Long-Term Debt (continued)
Equipment Lease
The City entered into a equipment lease agreement with the Sterling National Bank for the purchase of water meters improvements to the water system. At the end of the lease term the City will take ownership of all leased property. The City refinanced this lease on November 5, 2020. Under the new agreement the City will make payments are due annual installments, ranging from $79,011 to $146,359 through 2041 with interest of 2.57%. The principal amounts unpaid at June 30, 2023 is $1,574,258.

Year Ending
June 30
Principal Interest Total
2024 41,986 39,163 81,149
2025 45,723 38,093 83,816
2026 49,669 36,927 86,596
2027 53,833 35,660 89,493
2028 58,227 32,803 91,030
2029-2033 365,974 146,701 512,674
2034-2038 518,031 92,694 610,725
2039-2041 402,369 20,955 423,325
Total 1,535,812 442,995 1,978,808

The following is a summary of changes in the City’s long-term debt and other long-term liabilities during the year ended June 30, 2023:

Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental Activities:

Energy Lease 2,817,269 68,802) 0 ( 2,748,467 75,137
Civic Center Lease 2,697,686 0 97,443) ( 2,600,243 99,908 Long-term liabilities of
Governmental Activities: 5,514,955 0 ( 166,245) 5,348,710 175,045

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

56 G. Long-Term Debt (continued)
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business-Type Activities:

Water Loan SRF-18 78,143 51,754) 0 ( 26,389 26,389
Water Meter Lease 1,574,258 38,446) 0 ( 1,535,812 41,986 Water and Wastewater Bonds 394,996 37,879) 0 ( 357,117 37,099 Sewer Solar Lease 906,922 22,145) 0 ( 884,777 24,188
Sewer Bonds 2,705,582 0 197,294) ( 2,508,288 203,797
Long-term liabilities of
Business-Type activities: 5,659,901 0 ( 347,518) 5,312,383 333,459 H. Payables And Other Liabilities
Payables at June 30, 2023 for the City’s individual major funds and non-major funds in the aggregate are as follows:

General Transportation Measure K
Non-major
Governmental Total
Governmental
Activities:

Vendors 364,442 0 17,452 27,566 409,460
Other Payables 0 0 0 0 0
Developer Deposits 0 0 0 0 0
Total 364,442 0 17,452 27,566 409,460
Storm
Sewer Water Drain Transit Total
Business-Type
Activities:

Vendors 389,162 47,955 2,056 26,039 465,212
Customer Deposits 0 47,147 0 0 47,147
Other Payables 0 0 0 2,798 2,798
Total 389,162 95,102 2,056 28,837 515,157

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

57 IV. OTHER INFORMATION
A. Risk Management
The City of Escalon participates with other public entities in a joint exercise of powers agreement, which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $250,000 of each workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $10,000 and workers’ compensation losses under $10,000.

The CSJVRMA participates in an excess pool which provides general liability coverage from $1,000,000 to $10,000,000. The CSJVRMA participates in an excess pool that provides workers’ compensation coverage from $250,000 to $500,000 and purchases excess insurance above the $500,000 to the statutory limit.

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

The financial position and results of operations for the CSJVRMA, as of June 30, 2023, are presented below:

Total Assets 153,984,502
Total Liabilities 120,022,096
Total Net Assets 33,962,406
Total Liabilities & Net Assets 153,984,502
Total Revenues for Year 73,088,767
Total Expenses for Year 71,300,255
Net Income for Year 1,788,512
At the termination of the joint powers agreement and after all claims have been settled, any excess deficit will be divided among the cities in accordance with its governing documents.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

58 B. Commitments and Contingencies
The City of Escalon is a party in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City.

C. Employee Retirement Systems and Plans
The City contributes to the California Public Employees’ Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. All qualified permanent and probationary employees are eligible to participate in the Local Government’s separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the C. Employee Retirement Systems and Plans (Continued)
Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

59 C. Employee Retirement Systems and Plans (Continued) The Plans’ provisions and benefits in effect as of June 30, 2020, are summarized as follows:

Miscellaneous
Hire date
Prior to October
1, 2011
On or After
October 1, 2011
On or After
January 1, 2013
Benefit formula 3% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years 5 years 5 years
Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 52
Monthly benefits, as a % of eligible compensation 2% - 3% 1.092% - 2.418% 1.0% - 2.5% Required employee contribution rates 8.00% 7.00% 6.25%
Required employer contribution rates 35.027% 6.70% 6.25% Safety
Hire date
Prior to October
1, 2011
On or After
October 1, 2011
On or After
January 1, 2013
Benefit formula 3% @ 50 2% @ 55 2% @ 57
Benefit vesting schedule 5 years 5 years 5 years
Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation 3% 1.426% - 2.0% 1.426% - 2.0% Required employee contribution rates 9.00% 7.00% 9.50%
Required employer contribution rates 34.850% 11.53% 9.50% Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contributions rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during that year, with an additional amount to finance any unfunded accrued liability. The Local Government is required to contribute the difference between actuarially determined rate and the contribution rate of employees.

On August 15, 2011, the City approved a second tier to the PERS plan. The new provisions state that employees hired after October 1, 2011 will have different contribution rates. Effective January 1, 2013, the Public Employees’ Pension Reform Act (PEPRA) implemented new benefit formulas, final compensation period, and new contribution requirements for new employees hired on or after January 1, 2013, who meet the definition of new member as per PEPRA.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

60 C. Employee Retirement Systems and Plans (Continued) For the year ended June 30, 2023, the contribution recognized as part of pension expense for each Plan were as follows:

Miscellaneous Safety
Contributions - employer $ 136,358 $ 115,987
Lump Sum Contributions 418,965 354,454
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, the Local Government reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous $ 4,321,410
Safety 2,118,984
Total Net Pension Liability $ 6,440,394
The Local Government’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as on June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The Local Government’s proportion of the net pension liability was based on a projection of the Local Government’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The Local Government’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2022 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2022 0.13947% 0.01809% 0.06071%
Proportion - June 30, 2023 0.09235% 0.03084% 0.05576%
Change - Increase/(Decrease) 0.04571% -0.01520% 0.00397% Note: Due to the nature of calculating proportionate share of the Net Pension Liability/(asset), total proportion for all employer plans will not equal the sum of the miscellaneous proportion percentage and the safety proportion percentage.

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

61 C. Employee Retirement Systems and Plans (Continued) At June 30, 2021, the Local Government reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Change of Assumptions $ 656,476 $ 0
Differences Between Expected and Actual Experiences 174,479 81,134 Differences Between Projected and Actual
Investment Earnings 1,126,185 0
Differences Between Employer's Contributions and
Proportionate Share of Contributions 0 958,435
Change in Employer's Proportion 313,878 760,166
Pension Contributions Made Subsequent to Measurement Date 252,345 0 $ 2,523,363 $ 1,799,735
$688,386 reported as deferred outflows of resources relation to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Ending June 30: Miscellaneous Safety Total
2024 $ (169,906) $ (8,492) $ (178,398)
2025 (97,562) 30,670 (66,892)
2026 (45,419) 73,721 28,302
2027 484,150 204,121 688,271
2028 - - - Thereafter - - - $ 171,263 $ 300,020 $ 471,283

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

62 C. Employee Retirement Systems and Plans (Continued) Actuarial Assumptions – The total pension liabilities was determined by rolling forward the total pension liability determined in the June 30, 2020 actuarial accounting valuations to June 30, 2021.

The June 30, 2020, total pension liability was based on the following actuarial methods and assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Acturarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.30%
Salary Increases Varied by Entry Age and Service
Mortality Rate Table Derived using CalPERS' membership data for all funds Post Retirement Benefit Contract COLA up to 2.50% until purchasing power Increase Protection allowance floor on power applies, 2.50% thereafter The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return – The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows.

Using historical returns of all funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits of cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then

CITY OF ESCALON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

63 set equivalent to the single equivalent rate calculated above and adjusted to account for assumed C. Employee Retirement Systems and Plans (Continued)
administrative expenses. The expected real rates of return by asset class are as followed:

Assumed Asset
Allocation Real Return(1),(2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporate 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(1) An expected price inflation of 2.30% used for this period. (2) Firgures are based on the 2021-22 Asset Liability Management study.

Asset Class
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Local Government’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Local Government’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:

Employer's Net Pension Discount Rate -1% Current Discount Rate Discount Rate +1% Liability/(Asset) 6.15% 7.15% 8.15%
Miscellaneous 6,226,402 4,321,410 2,754,075
Safety 3,541,939 2,118,984 956,039
Total 9,768,341 6,440,394 3,710,114
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

REQUIRED SUPPLEMENTAL FINANCIAL DATA

CITY OF ESCALON

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - MISCELLANOUS
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.0652% 0.0647% 0.0649% 0.0657% 0.0668% 0.0754% 0.0821% 0.0506% 0.05792% Proportion share of the net pension liablity $ 4,321,417 $ 2,648,307 $ 3,955,104 $ 3,802,855 $ 3,632,713 $ 3,728,981 $ 3,334,984 $ 2,366,853 $ 2,613,459 Covered - employee payroll $ 2,885,271 $ 2,827,964 $ 2,698,758 $ 2,595,036 $ 2,532,613 $ 2,738,104 $ 2,405,712 $ 1,004,378 $ 986,220 Proportionate share of the net pension liability as 149.78% 93.65% 146.55% 146.54% 143.44% 136.19% 138.63% 235.65% 265.00% percentage of covered-employee payroll
Plan's fiduciary net position $ 9,653,198 $ 10,266,789 $ 8,331,828 $ 8,014,555 $ 7,643,821 $ 8,345,894 $ 7,566,692 $ 6,141,333 $ 6,302,141 Plan fiduciary net position as a percentage of the total pension liability 69.08% 79.49% 67.81% 67.82% 67.79% 69.12% 69.41% 72.18% 75.80% Notes to Schedule:

Change in assumptions. In 2016, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees. 64

CITY OF ESCALON

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - SAFETY
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.0367% 0.0349% 0.0345% 0.0348% 0.0336% 0.0337% 0.0473% 0.0341% 0.03961% Proportion share of the net pension liablity $ 2,118,984 $ 2,218,117 635,006 $ $ 1,993,679 $ 1,885,853 $ 1,917,754 $ 1,702,901 $ 1,402,956 $ 1,632,087 Covered - employee payroll $ 1,625,318 $ 1,466,988 $ 1,433,326 $ 1,375,515 $ 1,275,791 $ 1,224,683 $ 1,130,445 $ 662,916 $ 705,770 Proportionate share of the net pension liability as 130.37% 43.29% 154.75% 144.94% 147.82% 156.59% 150.64% 211.63% 231.25% percentage of covered-employee payroll
Plan's fiduciary net position $ 8,184,937 $ 8,617,247 $ 6,329,365 $ 6,171,262 $ 5,530,807 $ 5,212,273 $ 5,212,273 $ 4,418,594 $ 4,948,867 Plan fiduciary net position as a percentage of the total pension liability 79.44% 93.14% 74.05% 75.58% 74.57% 73.10% 72.48% 75.90% 75.20% Notes to Schedule:

Benefit Changes. In 2016, benefit terms were modified to base public safety employee pensions on a final three-year average salary instead of a final five-year average salary.

Change in assumptions. In 2016, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees. 65

CITY OF ESCALON

SCHEDULE OF CONTRIBUTIONS - MISCELLANEOUS
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015 2014
Contractually required contribution (actuarially determined) $ 1,488,403 $ 1,242,716 $ 1,037,181 $ 876,282 $ 789,561 $ 647,565 $ 546,477 $ 203,824 280,615 $ Contributions in relation to the actuarially determined contributions (2,055,384) (1,619,910) (1,280,446) (1,042,165) (946,868) (721,149) (667,674) (203,824) (523,563) Contribution deficiency (excess) $ (566,981) $ (377,194) $ (243,265) $ (165,883) $ (157,307) $ (73,584) $ (121,197) $ (242,948) $ - Covered - employee payroll $ 2,885,271 $ 2,827,964 $ 2,698,758 $ 2,595,036 $ 2,532,613 $ 2,738,104 $ 2,405,712 $ 1,004,378 $ 986,220 Contributions as a percentage of covered-employee payroll 51.59% 43.94% 38.43% 33.77% 31.18% 23.65% 22.72% 27.94% 20.67% percentage of covered-employee payroll
Notes to Schedule:

Valuation Date: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to determine cotnribution rates:

Actuarial Cost Method Entry age
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Asset valuation method Market Value
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.00%, net of pension plan investment and administrative expense, including inflation
66

CITY OF ESCALON

SCHEDULE OF CONTRIBUTIONS - SAFETY
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015 2014
Contractually required contribution (actuarially determined) $ 838,440 $ 563,789 $ 550,853 $ 464,479 $ 397,737 $ 289,639 $ 256,790 $ 237,553 $ 241,124 Contributions in relation to the actuarially determined contributions (1,157,830) (883,952) (680,052) (552,406) (476,980) (322,551) (287,809) (222,053) (241,124) Contribution deficiency (excess) $ (319,389) $ (320,163) $ (129,199) $ (87,927) $ (79,243) $ (32,912) $ (31,019) $ 15,500 $ - Covered - employee payroll $ 1,625,318 $ 1,466,988 $ 1,433,326 $ 1,375,515 $ 1,275,791 $ 1,224,683 $ 1,130,445 $ 662,916 $ 705,770 Contributions as a percentage of covered-employee payroll 51.59% 38.43% 38.43% 33.77% 31.18% 23.65% 22.72% 35.83% 34.16% percentage of covered-employee payroll
Notes to Schedule:

Valuation Date: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to determine cotnribution rates:

Actuarial Cost Method Entry age
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Asset valuation method Market Value
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.00%, net of pension plan investment and administrative expense, including inflation
67

68 COMBINING FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Police Department Fees - To account for funds received from developer fees, to be used to finance police facilities upgrades to serve the growth anticipated in the community.

Public Works - To account for funds received from developer fees collected to mitigate the additional impact on the City’s public works departments as a result of the anticipated growth in the community.

Park Fund - To account for park development fees used for acquisition, improvement, and expansion of public parks and playgrounds.

Planning Fee DIF - To account for monies received and expended by the City under the Development Initiatives Fund as a component under OTELP to provide participatory planning process expressed by the community.

CDBG - HUD - To account for monies received and expended by the City under Section 8 of the Federal Housing and Urban Development Act for housing assistance to low and moderate income families.

In-Lieu Low Income Housing Program – To account for monies received and expended by the City to support for affordable housing.

Recreation Fund - To account for funds received from user fees, developer fees, and facility lease proceeds for the City’s recreation programs.

Library Fees Fund- To account for the special sales tax surcharge fee collected and used for additional funding of the libraries.

RTIF Fund - To account for monies received and expended by the City under the Regional Transportation Impact Fee program.

SLESF Fund – Federal Special Law Enforcement Services Fund to assist local agencies in acquiring equipment, technology and police services.

Auto Theft Fund - To account for funds received from the San Joaquin County District Attorney’s Office designated for the deterring and investigating of auto theft crimes.

Gas Tax Funds- To account for funds received from the State from gas taxes collected on a per gallon basis. These funds are used for street construction and street maintenance.

69 COMBINING FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Traffic Safety Fund - To account for funds received from fines from Vehicle Code violations, to be used for traffic safety, but exclusive of compensation of traffic or other police officers.

Traffic Congestion Fund - To account for monies received and expended by the City to fund projects to minimize traffic congestion.

Lighting and Landscaping District - To account for the money received from the Sunrise Terrace Lighting and Landscape District, Belle Terra Estates, and Westwood Country Estates, for special residential maintenance projects.

Transit Security Fund - To account for money received and expended by the City under the California Transit Security Grant Program.

Capital Project Fund
St John at BNSF Fund - To account for money received and expended by the City for the Street improvements at St John Street.

Debt Services
Civic/COMM Center - To account for monies for the accumulation of resources for, and the payment of, general long-term debt principal and interest for the Civic Community Center construction project.

Energy Lease - To account for monies for the accumulation of resources for, and the payment of, general long-term debt principal and interest for the Energy Lease construction project.

CITY OF ESCALON

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Police Public
Dept Works Park Planning
Fees Fees Fees Fees
Fund Fund Fund Fund
Assets
Cash And Investments 40,009 106,852 71,416 12,447
Cash with Fiscal Agent 0 0 0 0
Accounts Receivable 183 441 269 51
Loans Receivable 0 0 0 0
Due From Other Funds 312,707 0 0 0
Total Assets 40,192 420,000 71,685 12,498
Liabilities And Fund Balances
Liabilities
Accounts Payable 0 6,381 0 0
Compensated Absences 0 0 0 0
Other Liabilities 0 0 0 0
Loans Payable 0 0 0 0
Due To Other Funds 0 0 0 0
Total Liabilities 0 6,381 0 0
Fund Balances
Nonspendable 0 0 0 0
Restricted 40,192 0 0 0
Committed 420,000 0 65,304 12,498
Assigned 0 0 0 0
Unassigned 0 0 0 0
Total Fund Balances 40,192 420,000 65,304 12,498
Total Liabilities
And Fund Balances 40,192 420,000 71,685 12,498
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Special Revenue
70

In-Lieu
Low Income Auto
Housing Recreation Library RTIF SLESF Theft
Program Fund Fund Fund Fund Fund
66,750 145,908 371,834 240 84,353 0
0 0 0 0 0 0
278 613 1,535 1 334 0
0 0 0 0 0 0
833,886 0 0 0 0 0
900,914 146,521 373,369 241 84,687 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 157,133 0 0 0 0
0 157,133 0 0 0 0
0 0 0 0 0 0
900,914 0 373,369 0 84,687 0
0 0 0 0 0 0
146,521 0 0 0 0 0
0 156,892) 0 ( 0 0 0
900,914 146,521 ( 156,892) 373,369 84,687 0
900,914 146,521 373,369 241 84,687 0
Special Revenue
71

CITY OF ESCALON

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Lighting
Landscape Gas Traffic Traffic CDBG
District Tax Safety Congestion Comm Dev
Fund Funds Fund Fund Grant
Assets
Cash And Investments 52,800 1,230,185 28,822 90,666 1,246 Cash with Fiscal Agent 0 0 0 0 0
Accounts Receivable 196 36,705 1,624 1,146 378
Loans Receivable 0 0 0 0 0
Due From Other Funds 0 0 0 0 0
Total Assets 52,996 1,266,890 30,446 91,044 2,392
Liabilities And Fund Balances
Liabilities
Accounts Payable 12,947 7,884 354 0 0
Compensated Absences 0 0 0 0 0
Other Liabilities 0 0 0 0 0
Loans Payable 0 0 0 0 0
Due To Other Funds 0 0 0 0 0
Total Liabilities 12,947 7,884 354 0 0
Fund Balances
Nonspendable 0 0 0 0 0
Restricted 40,049 1,259,006 30,092 91,044 2,392
Committed 0 0 0 0 0
Assigned 0 0 0 0 0
Unassigned 0 0 0 0 0
Total Fund Balances 40,049 1,259,006 30,092 91,044 2,392 Total Liabilities
And Fund Balances 52,996 1,266,890 30,446 91,044 2,392
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Special Revenue
72

Capital Project
St John Civic Energy
At BNSF Center Lease
Fund Debt Service Debt Service 2023 2022
0 0 2,303,528 0 1,973,935
0 0 0 0 0
0 0 0 43,754 20,885
0 0 0 0 0
2,697,686 0 2,817,269 6,661,548 6,854,633
2,697,686 0 2,817,269 9,008,830 8,849,453
0 0 0 27,566 48,761
0 0 0 0 0
0 0 0 0 0
2,697,686 0 2,817,269 5,514,955 5,514,955
0 0 157,133 0 157,133
2,697,686 0 2,817,269 5,699,654 5,720,849
0 0 0 0 0
0 0 2,821,745 0 2,657,257
0 0 497,802 0 491,523
0 0 146,521 0 136,957
0 0 156,892) 0 ( ( 157,133)
0 0 3,309,176 0 3,128,604
2,697,686 0 2,817,269 9,008,830 8,849,453
Total
Non-Major
Funds
Debt Service
73

CITY OF ESCALON

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Police Public
Dept Works Park Planning
Fees Fee Fee Fees
Fund Fund Fund Fund
Revenues
Investment Earnings 755 1,287 276 152
Intergovernmental 0 20,000 0 0
Property Taxes 0 0 0 0
Other Taxes 0 0 0 0
Impact Fees 3,985 1,886 7,642 0
Fines And Forfeitures 0 0 0 0
Licenses And Permits 0 0 0 0
Service Charges And Miscellaneous 0 21,791 0 0
Total Revenues 4,740 3,173 49,709 152
Expenditures
General Government 0 0 0 0
Public Safety 52,721 0 0 0
Public Works 0 0 0 0
Community Development 0 46,755 0 0
Culture And Leisure 0 0 0 0
Debt Service
Principal 0 0 0 0
Interest & Other Charges 0 0 0 0
Capital Outlay 0 0 0 0
Total Expenditures 52,721 46,755 0 0
Excess(Deficiency) Of Revenues
Over Expenditures ( 47,981) 3,173 2,954 152
Other Financing Sources (Uses)
Operating Transfers In 0 0 0
Operating Transfers Out 0 0 0 0
Total Other Financing Sources (Uses) 0 0 0 0
Net Change In Fund Balances ( 47,981) 3,173 2,954 152
Fund Balance - Beginning 88,173 416,827 62,350 12,346
Fund Balance - Ending 40,192 420,000 65,304 12,498
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Special Revenue

74 of 133
In-Lieu
Low Income Auto
Housing Recreation Library RTIF SLESF Theft
Program Fund Fund Fund Fund Fund
815 1,922 1 4,532 614 0
0 0 0 152,771 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 240 5,263 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 7,642 0 0 0 0
815 9,564 241 9,795 153,385 0
0 0 0 0 0 0
0 0 0 107,898 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 107,898 0 0
815 9,564 241 9,795 45,487 0
0 0 0 0 0 0
0 0 0 80,500) 0 ( 0
0 0 0 80,500) 0 ( 0
815 9,564 241 9,795 ( 35,013) 0
900,099 136,957 ( 157,133) 363,574 119,700 0
900,914 146,521 ( 156,892) 373,369 84,687 0
Special Revenue

75 of 133

CITY OF ESCALON

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Lighting
Landscape Gas Traffic Traffic CDBG
District Tax Safety Congestion Comm Dev
Fund Funds Fund Fund Grant
Revenues
Investment Earnings 434 21,232 0 1,107 0
Intergovernmental 349,396 0 22,459 2,392 0
Property Taxes 0 0 0 0 0
Other Taxes 0 0 0 0 0
Impact Fees 0 0 0 0 0
Fines And Forfeitures 0 0 0 0 0
Licenses And Permits 0 0 0 0 0
Service Charges And Miscellaneous 123,969 0 0 0 0
Total Revenues 124,403 370,628 22,459 1,107 2,392
Expenditures
General Government 0 0 0 0 0
Public Safety 0 0 0 0 0
Public Works 0 0 0 0 0
Community Development 130,421 29,694 0 0 0
Culture And Leisure 0 0 0 0 0
Debt Service
Principal 0 0 0 0 0
Interest & Other Charges 0 0 0 0 0
Capital Outlay 0 0 0 0 0
Total Expenditures 130,421 29,694 0 0 0
Excess(Deficiency) Of Revenues
Over Expenditures ( 6,018) 340,934 22,459 1,107 2,392
Other Financing Sources (Uses)
Operating Transfers In 0 0 0 0 0
Operating Transfers Out 104,000) 0 ( ( 20,000) 0 0
Total Other Financing Sources (Uses) 104,000) 0 ( ( 20,000) 0 0 Net Change In Fund Balances ( 6,018) 236,934 2,459 1,107 2,392 Fund Balance - Beginning 46,067 1,022,072 27,633 89,937 0 Fund Balance - Ending 40,049 1,259,006 30,092 91,044 2,392 WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2022
Special Revenue

76 of 133
Capital Project
St John Civic Energy
At BNSF Center Lease
Fund Debt Service Debt Service 2023 2022
0 0 33,127 0 ( 46,419)
0 0 547,018 0 455,040
0 0 0 0 0
0 0 0 0 0
0 0 19,016 0 95,063
0 0 0 0 0
0 0 0 0 0
0 0 153,402 0 330,220
0 0 752,563 0 833,904
0 0 0 0 0
0 0 160,619 0 5,164
0 0 0 0 0
0 0 206,870 0 169,595
0 0 0 0 0
0 97,443 68,802 166,245 163,271
0 66,333 71,840 138,173 141,902
0 0 0 869,431 0
0 163,776 140,642 671,907 1,349,363
0 ( 163,776) ( 140,642) 80,656 ( 515,459)
0 163,776 140,642 304,418 1,442,102
0 0 204,500) 0 ( ( 1,378,445)
0 163,776 140,642 99,918 63,657
0 0 180,574 0 ( 451,802)
0 0 3,128,602 0 3,580,406
0 0 3,309,176 0 3,128,604
Total
Non-Major
Funds
Debt Service

77 of 133

OTHER REPORTS

78 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

To The City Council
City of Escalon
State of 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 aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Escalon, State of California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City of Escalon, State of California’s basic financial statements, and have issued our report thereon dated August 27, 2024 Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Escalon, State of California’s internal control over financial reporting to determine the 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 City of Escalon, State of California’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Escalon, State of California’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

79 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Escalon, State of California’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gallagher Gatewood, A Professional Accountancy Corporation

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
August 27, 2024

80 REPORT ON COMPLIANCE WITH LAWS AND

REGULATIONS BASED ON AN EXAMINATION OF

GENERAL-PURPOSE FINANCIAL

STATEMENT PERFORMED IN ACCORDANCE WITH THE

CALIFORNIA TRANSPORTATION DEVELOPMENT ACT
To The City Council
City of Escalon
State of California
We have audited the general-purpose financial statements of the City of Escalon, State of California for the year ended June 30, 2023, and have issued our report thereon dated March 15, 2023. Our audit was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the California Administrative Code Section 6664 of the Transportation Development Act and the allocation instructions of the Stanislaus Area Association of Governments, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

The management of the City of Escalon is responsible for the City’s compliance with laws and regulations. In connection with our audit referred to above, we selected and tested transactions and records to determine the City’s compliance with laws and regulations, noncompliance with which could have a material effect on the general-purpose financial statements of the City.

In our opinion the City of Escalon Transportation Development Act funds were accounted for in conformance with the applicable laws, rules and regulations of the Transportation Development Act and the allocation instructions of the Stanislaus Council of Governments.

Gallagher Gatewood, A Professional Accountancy Corporation

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
August 27, 2024

ITEM NO. 11

COUNCIL AGENDA ITEM
FOR OCTOBER 7, 2024
Prepared By: Frank Splendorio, City Attorney
Date: October 7, 2024
Subject: Employment Agreement for City Manager
Recommendation:

Consider and approve Employment Agreement between the City and Jaylen French for the position of City Manager.

Background and Discussion:

The previous City Manager resigned her position April 14, 2024. Since that time, Mr. Jaylen French, who was serving as the City’s Development & Community Services Manager, agreed to serve as the Interim City Manager. Since that time, Mr. French has served as the Interim City Manager while also continuing to manage projects as the Development and Community Services Manager. The City has received the benefit of salary savings from Mr. French serving in both positions during this time.

The current Interim City Manager contract is set to expire on November 15, 2024.

In recognition of his successful efforts thus far in managing the City’s day-to-day operations, his hard work, skills and experience, and the Council’s good working relationship with Mr. French, the Council has offered Mr. French to serve as the permanent, appointed City Manager for the City.

Other than updates to conform to best practices and procedures, and to ensure the contract is legally up to date, the proposed contract is substantially similar to contracts with past City Managers. There is no salary increase contemplated and Mr. French will continue to serve as City Manager at his current salary. Also, similar to past contracts, this contract is for a five-year term and it includes a six month severance (unless he has less than six months on his contract, in which case it will be equivalent to the remaining months, or is released for cause).

Fiscal Impact:

No fiscal impact.

Attachments

1. Proposed Contract

82108.00101\42744714.1

CITY OF ESCALON

CITY MANAGER EMPLOYMENT AGREEMENT
Section 1. At Will Employment
This City Manager Employment Agreement (“Agreement”) is entered into by and between the City of Escalon (“City”) and Jaylen French (“Manager”). Under this Agreement, the City offers, and Manager accepts, employment as City Manager of the City. Manager is an “at will” employee, serving at the pleasure of the City Council. Accordingly, the City may terminate Manager’s employment at any time, with or without cause. Manager understands he has no constitutionally protected property or other interest in his employment as City Manager, and nothing herein shall be construed to create a property interest where one does not exist by rule or law. This provision may not be altered except by a written instrument executed by the Mayor or designee and formally approved by the City Council.

Section 2. Duties
Manager agrees to perform the duties and responsibilities that are commonly assigned to the city manager of a general law city in California, and as may be further set forth in the Municipal Code of the City of Escalon. In addition, City Council may assign other legally permissible and proper duties and functions consistent with the office of the City Manager. Manager may represent the City at various events during non-operating hours and may make adjustments during office hours accordingly. Manager will observe the tenets of the international City/County Management Association’s Code of Ethics.

Section 3. Devotion to City Business
Manager’s position is full time and necessitates Manager to remain in exclusive employment of the City during the term of this Agreement. As used in this section, the term "employment" shall not be construed to include occasional teaching, writing, or consulting on Manager's time off, which may be undertaken by the Manager, provided they are conducted with persons, businesses, or organizations not within the City limits. Manager shall not engage in any business, educational, professional, charitable, or other activities that would conflict or materially interfere with performance of his City Manager duties, except as may be specifically authorized by City Council.

Section 4. Term

4.1 Manager’s employment will commence effective October 8th, 2024 (“Effective Date”) and shall continue in effect until October 8th, 2029 or the date of earlier termination in accordance with provisions of this Agreement.

4.2 Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the services of Manager and this Agreement, at any time, subject only to the provisions set forth in this Agreement. In the event the City Council intends not to extend the term of this Agreement, the Manager will be provided written notice four (4) months prior to expiration.

82108.00101\42744714.1

4.3 Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Manager to resign at any time from his position with City, subject only to the provisions set forth in this Agreement. In the event the Manager resigns from his position with the City, then the Manager shall endeavor to provide at least sixty (60) days' written notice to the City Council.

Manager shall be entitled to receive such accrued unused leave(s) and other such benefits as may be due and payable under this contract and/or applicable City rule, regulation or policy and/or under applicable local, state or federal law.

4.4 The term of this agreement may be extended at any time by mutual agreement.

Section 5. City Council Commitments

5.1 Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consultants solely through the Manager or the Manager’s designee, and neither the City Council nor any member thereof shall give direction to any subordinate of the Manager, either publicly or privately.

5.2 No member of the City Council will order the appointment or removal of any person to any office or employment under the supervision and control of the Manager.

5.3 Neither the City Council nor any of its members shall interfere with the execution of the powers and duties of the Manager, as specified in the Municipal Code, this Agreement, or any other lawfully adopted and authorized document.

Section 6. Termination of Employment and this Agreement, General Release, and Severance

6.1 Manager serves at the will and pleasure of the City Council and may be terminated with or without cause. Manager understands and agrees that Employee has no constitutionallyprotected property or other interest in Manager’s employment as City Manager. Manager understands and agrees that Manager works at the will and pleasure of the City Council, and that Manager may be terminated, or asked to resign, at any time with or without cause, by a majority vote of its members. Nothing in this Agreement, any statute, ordinance, or rule shall prevent, limit or otherwise interfere with the right of the City Council to terminate Manager’s employment.

6.2 In the event that Manager is terminated or asked to resign without cause, as determined by the City Council, and upon execution by Manager of a full and complete release of any and all claims, as detailed in a Release Agreement provided by the City, City agrees to provide Manager with severance pay in a lump sum benefit equal to six (6) months base salary (or for the remaining term of this Agreement, whichever is less), and reimburse Manager for the monthly COBRA premium for continued health benefits under the benefit plans in which Manager and his dependents are then enrolled for not greater than six (6) months (or for the remaining term of this Agreement, whichever is less) (the cash payment and continuing benefits, collectively “Severance”).

6.3 In the event that Manager’s employment and this Agreement are terminated for cause, as determined by the affirmative votes of a majority of the members of the City Council at a Regular or Special Meeting of the City Council, Manager shall not be entitled to any additional

82108.00101\42744714.1

compensation or payment, including Severance, but shall be entitled only to accrued leave(s) and unused benefit allowances according to their terms under law. As used in this Agreement, “cause” includes but is not limited to any of the following:
(a) Conviction of, or plea of guilty or nolo contender to, any crime or offense (other than minor traffic violations of similar offenses) which is likely to have a material adverse impact on the City or the Manager’s reputation; (b) Proven failure of the Manager to observe or perform any of his duties and obligations, if that failure continues for a period of thirty (30) business days from the date of his receipt of notice from the City Council specifying the acts or omissions deemed to amount to that failure;
(c) Conviction of any crime involving an “abuse of office or position,” as that term is defined in Government Code Section 53243.4;
(d) Repeated failure to carry out a directive or directives of the City Council made by the City Council as a body at a Brown Act-compliant meeting; or (e) Any grossly negligent action or inaction by Manager that materially and adversely:
(a) impedes or disrupts the operations of City or its organizational units; (b) is detrimental to employees or public safety; or (c) violates City’s properlyestablished rules or procedures.

6.4 In the event that the City Council votes to terminate Manager’s employment and this Agreement for cause, Manager will be presented with a general description, via the City Attorney, of the basis for said cause. Manager will have five (5) days to request an opportunity to address the City Council to present information in closed session before final action is taken; provided, however, that nothing herein prohibits Manager from exercising his right, if applicable, to have heard in open session rather than closed session (pursuant to Government Code section 54957(b)(2)), complaints or charges brought against him by another person or employee.

6.5 In no event may Manager be terminated within 120 days after any municipal election for the selection or recall of one or more of the members of the City Council.

6.6 In the event Manager is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, or mental incapacity for a period of three consecutive months beyond any provided sick leave, the City may terminate Manager’s employment and this Agreement. The parties agree that a leave of absence extending beyond three months would not be a reasonable accommodation, given the nature of Manager’s role with the City and essential functions.

Section 7. Compensation, Benefits and Annual Evaluation

7.1 Manager will be compensated for his services at an annual base salary of $152,202.00. Said amount shall be payable at the same time and in the same manner as other employees of the City are paid.

7.2 City shall provide Manager with benefits consistent with the City’s Personnel System Rules and Regulation (non-sworn, exempt), except as otherwise stated herein. Manager shall be entitled to 100 hours of annual administrative leave each fiscal year (and shall be provided with a full balance of 100 hours upon the Effective Date of this Agreement). Thereafter, 100 hours will be provided on July 1st of each calendar year. Manager may elect to receive cash payment at

82108.00101\42744714.1

his regular salary rate for any portion of administrative leave (Manager is not required to maintain a minimum balance of administrative leave). In accordance with section 8.18 of the City’s Personnel Rules and Regulations, Manager may elect this option by December 31 of each year for the cash payment to be made in the following calendar year. The cash out election is irrevocable, and the City will follow IRS regulations regarding cash payment of administrative leave.

7.3 Notwithstanding Manager’s annual base salary as set forth herein, the annual salary of Manager shall never be, within the Term of this Agreement, less than 10% above the annual base salary (excluding overtime, other pay and/or any incentive compensation) of the City’s next highest paid employee. In the event that a promotion, an adjustment to City salary schedules, or a management salary reduction would result in Manager being paid less than 10% of the next highest paid employee’s annual base salary, Manager’s annual base salary will be adjusted by action of the City Council at a public meeting as soon thereafter as practicable to approve an adjustment to Manager’s annual base salary (as determined and set by Council) that would no longer be less than 10% above the next highest paid employee.

7.4 To the extent the City's approved annual budget designates sufficient funds for the purposes identified in this section, the City agrees to pay for the professional dues and subscriptions necessary for the Manager's continued and full participation in national, state, regional and local associations and organizations necessary and/or desirable for his continued professional participation, growth and advancement, and for the good of the City.

7.5 To the extent the City's approved annual budget designates sufficient funds for the following purposes, the City agrees to pay registration fees and travel subsistence expenses of the Manager for professional and official travel, meetings, and occasions adequate to continue the professional development of the Manager and to adequately pursue necessary and/or appropriate official business and other functions for the City.

7.6 City, by the City Council, and Manager may set mutually-agreed-upon objectives for each year under this Agreement. The City Council shall evaluate Manager’s performance at least annually . Each annual review and evaluation shall occur in the last fiscal quarter of each fiscal year (ie., April – June), including the first review and evaluation which shall occur in the last quarter of FY 24-25. The annual review and evaluation shall be in accordance with specific criteria developed jointly by the City Council and the Manager. Such criteria may from time to time be added to or deleted as the City Council determines in consultation with the City Manager. In the City Council and the Manager’s further establishment of annual goals and performance objectives, a relative priority among those various goals and objectives shall also be established. They shall generally be challenging but attainable within the time limitations as specified, and the annual operation budget and capital budget and appropriations provided. Said goals and objectives shall be reduced to writing. The Parties may use a mutually agreed upon outside facilitator paid for by City to assist them in conducting the City Manager’s annual performance evaluation. Outside of the formal evaluation process, the City Council has the discretion to provide informal input about Manager’s performance at any times chosen by Council.

7.7 Merit-Based Salary Increases. Manager may receive a merit-based salary increase upon the recommendation of the City Council, after a “satisfactory” (as opposed to “nonsatisfactory”) performance evaluation, as determined in the sole judgment of the City Council.

82108.00101\42744714.1

Section 8. Assembly Bill 1344 Compliance; Abuse of Office or Position If Manager is convicted of a crime involving an abuse of his office or position, Manager shall fully reimburse City for all amounts paid to the extent City provides: (a) Manager with administrative leave pay pending an investigation, ; (b) if City pays for the criminal legal defense of Manager (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), and (c) if this Agreement is terminated, any Severance Pay and Severance Benefits related to the termination that Manager may receive from City shall be fully reimbursed to City or shall be void if not yet paid to Manager. For purposes of this Section, abuse of office or position means either; (i) and abuse of public authority, including waste, fraud, and violation of the law under color of authority; or (ii) a crime against public justice.

Section 9. Training
Manager is encouraged to maintain memberships in and to attend conferences of appropriate professional organizations including but not limited to, the League of California Cities and the International City/County Management Association. Manager’s annual budget for such memberships and conferences, including travel and related expenses shall be as they appear in the City’s adopted annual budget. Additionally, and in order to encourage Manager’s continued professional development, the City will reimburse Manager for Manager’s expenses in attending any conferences, committee meetings or trainings put on by the League of California Cities and the International City/County Management Association (ICMA), and will pay Manager’s ICMA annual membership dues. All expense reimbursements are subject to the City policies and limited by budget line items approved by the City Council for the City Manager from time to time.

Section 10. Notices
Any notices to be given hereunder by either party to the other in writing may be effected either by personal delivery, mail, or email. Mailed notices shall be addressed to the parties as set forth below, but each party may change her/its address by written notice given in accordance with this Section. Notices delivered personally or by email will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated and received as of three (3) calendar days following the date of mailing.

City: City of Escalon
Attention: Mayor
2060 McHenry Ave.

Escalon, CA 95320
Manager: Jaylen French
2060 McHenry Ave.

Escalon, CA 95320
Section 11. Conflict with Municipal Code
The City personnel ordinances, resolutions, rules and policies shall apply to Manager in the same manner as applied to other management employees, provided, however, in the event of a conflict

82108.00101\42744714.1

between the provisions of this Agreement and the Municipal Code, thee Municipal Code shall prevail over this Agreement.

Section 12. General Provisions

12.1 This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or written, between the parties with respect to the employment of Manager by City, and contains all of the covenants and agreements between the parties with respect to that employment.

12.2 Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by either party, or by anyone acting on behalf of either party, which are not embodied herein, and that no other employment agreement, statement, or promise not contained in this Agreement shall be valid or binding upon either party.

12.3 Any modification of this Agreement will be effective only if in writing and signed by both Manager and City.

12.4 The failure of either party to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

12.5 If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

12.6 This Agreement shall be governed by and construed in accordance with the law of the State of California, and any dispute shall be venued in San Joaquin County.

12.7 The parties agree that any ambiguity in this Agreement shall not be construed or interpreted against, or in favor of, either party. This Agreement may be executed in counterparts, all in which together shall be considered an original.

12.8 Revolving Door. Employee shall comply with Government Code §87406.3 for a period of one year after separating from service with City. This section will survive termination of this Agreement.

This Agreement is entered into this ___ day of October, 2024.

Dated:____________________ City of Escalon

By: ______________________________
David Bellinger, Mayor
Dated:____________________ Manager

82108.00101\42744714.1

By: ______________________________
Jaylen French
Attest:
______________________________
_______________, Deputy City Clerk
Approved as to form:
______________________________
Frank Splendorio, City Attorney