JULY 11, 2022 – Regular Meeting Agenda – 7:00 p.m.
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July 11, 2022 – City Council Regular Meeting – 7:00 p.m.
City Council Chamber
390 Towne Centre Drive
Lathrop, California
(209) 941-7200
www.ci.lathrop.ca.us
City Council
Sonny Dhaliwal, Mayor
Diane Lazard, Vice Mayor
Paul Akinjo
Minnie Diallo
Jennifer Torres-O’Callaghan
City Staff
Stephen Salvatore, City Manager
Salvador Navarrete, City Attorney
Michael King, Assistant City Manager
Teresa Vargas, Government Services
Director / City Clerk
Brad Taylor, City Engineer
Tony Fernandes, Information Systems Director
Cari James, Finance Director
Theresa Roland, Human Resources Director
Mark Meissner, Community Development
Director
Todd Sebastian, Parks, Recreation and
Maintenance Services Director
Raymond Bechler, Chief of Police
General Order of Business
1. Preliminary
• Call to Order
• Closed Session
• Roll Call
• Invocation
• Pledge of Allegiance
• Announcements by Mayor/City Mgr.
• Informational Items
• Declaration of Conflict of Interest
2. Presentations
3. Citizen’s Forum
4. Consent Calendar
5. Scheduled Items
• Public Hearings
• Appeals
• Referrals and Reports from
Commissions and Committees
• All Other Staff Reports and/or Action
Items
• Study Sessions
6. Council Communications
7. Adjournment
Order of Discussion
Generally, the order of discussion after introduction
of an item by the Mayor will include comments and
information by staff followed by City Council
questions and inquiries. The applicant, or their
authorized representative, or interested residents,
may then speak on the item; each speaker may only
speak once to each item. At the close of public
discussion, the item will be considered by the City
Council and action taken.
Consent Calendar
Items on the Consent Calendar are considered
routine by the City Council and will be enacted by one
motion and one vote. There will be no separate
discussion of these items unless a Councilmember or
interested resident so requests, in which case the
item will be removed from the Consent Calendar and
considered separately.
1 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 1 IMPORTANT NOTICE REGARDING THIS MEETING & COVID-19
Executive Order N-29-20, issued by the Governor on March 17, 2020, set provisions which relaxed the teleconferencing requirements of the Brown Act to facilitate virtual meetings during the COVID-19 declared emergency, said provisions expired after September 30, 2021.
This public meeting will be conducted in person; all members of the City Council will attend in person. Members of the public are welcomed in person. COVID-19 and social distancing guidelines will be enforced. As a courtesy, this meeting will be available for public participation by teleconference via ZoomGov at the following link:
https://www.zoomgov.com/j/1600013321?pwd=bzdTV1NQNEcrZ3FJa G5EOHNGZnp5dz09
During the meeting, those joining by ZoomGov, will be allowed to speak prior to the close of public comment on an item. If you are using this method, please “raise the hand” feature to inform the City Clerk (meeting host) you wish to speak on the matter. Please ensure your computer speaker and microphone are fully functional.
For audio / calling in only, dial: +1 (669) 254-5252 or +1 (669) 216-1590 o To request to speak (same as the “raise hand” feature) press *9 / When the City Clerk calls your name, press *6 to unmute.
Meeting Webinar ID: 160 001 3321 / Passcode: 030828
If you are not able to attend the meeting in person or virtually - Public comment/questions will be accepted by email to City Clerk Teresa Vargas at [email protected] or by calling (209) 941-7230
Questions or comments must be submitted by 4:00 p.m., on the day of the meeting.
To address City Council in person, please submit a purple card to the City Clerk indicating name, address, and number of the item upon which a person wishes to speak.
Council Meetings are live-streamed (with Closed Captioning) on Comcast Cable Channel 97, and on the City Council Webpage: https://www.ci.lathrop.ca.us/citycouncil/page/live-stream Addressing the Council
Any person may speak once on any item under discussion by the City Council after receiving recognition by the Mayor. Purple speaker cards will be available prior to and during the meeting.
To address City Council, a card must be submitted to the City Clerk indicating name, address and number of the item upon which a person wishes to speak. When addressing the City Council, please walk to the lectern located in front of the City Council. State your name and address. In order to ensure all persons have the opportunity to speak, a time limit will be set by the Mayor for each speaker (see instructions on speaker form). In the interest of time, each speaker may only speak once on each individual agenda item; please limit your comments to new material; do not repeat what a prior speaker has said. If you challenge the nature of a proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing.
2 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 2 Citizen’s Forum
Any person desiring to speak on a matter, which is not scheduled on this agenda, may do so under the Citizen’s Forum section. Please submit your purple speaker card to the City Clerk prior to the commencement of Citizen’s Forum, or submit your request to speak via the “raise hand” feature in ZoomGov. Only those who have submitted speaker cards, or have expressed an interest to speak, prior to the conclusion of Citizen’s Forum will be called upon to speak. Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item, which does not appear on the agenda, unless the item meets stringent statutory requirements. The Mayor will limit the length of your presentation (see instructions on speaker form) and each speaker may only speak once on this agenda item. Please note, the Council Chamber has limited occupancy due to social distancing.
To leave a voice message for all Councilmembers simultaneously, dial (209) 941-7230. To send an e-mail for Councilmembers simultaneously email: [email protected]. This City Council Agenda and meeting materials can be accessed by computer or any smart device at:
https://www.ci.lathrop.ca.us/meetings
General Information
For reports citing supplemental documents relating to specific agenda items, these are available for review in the City Clerk’s Office. This agenda was posted at the following locations: City Hall, Community Center, Generations Center, Senior Center, and the Lathrop-Manteca Fire District “J" Street and Somerston Parkway Offices. The meetings of the Lathrop City Council are broadcast on Lathrop Comcast Cable Television Channel 97 and live streamed on the City’s website.
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility and/or accommodations to this meeting. [28 CFR 35.102-35.104 ADA Title II] Interested persons must request the accommodation at least 2 working days in advance of the meeting by contacting the City Clerk at (209) 941-7230. Information about the City or items scheduled on the Agenda may be referred to:
Teresa Vargas, MMC
Government Services Director / City Clerk
390 Towne Centre Drive
Lathrop, CA 95330
Telephone: (209) 941-7230
3 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 3
CITY OF LATHROP
CITY COUNCIL REGULAR MEETING
MONDAY, JULY 11, 2022
7:00 P.M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
AGENDA
PLEASE NOTE: There will be a Closed Session commencing at 5:00 p.m. The Regular Meeting will reconvene at 7:00 p.m., or immediately following the Closed Session, whichever is later.
1. PRELIMINARY
1.1 CALL TO ORDER
1.2 CLOSED SESSION
1.2.1 PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Pursuant to Government Code Section 54957
• City Manager
• City Attorney
1.2.2 CONFERENCE WITH LEGAL COUNSEL: Anticipated Litigation - Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(b)
• 2 Potential Case(s)
RECONVENE
1.2.3 REPORT FROM CLOSED SESSION
1.3 ROLL CALL
1.4 INVOCATION
1.5 PLEDGE OF ALLEGIANCE
1.6 ANNOUNCEMENT(S) BY MAYOR / CITY MANAGER
1.7 INFORMATIONAL ITEM(S) – None
1.8 DECLARATION OF CONFLICT(S) OF INTEREST
4 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 4
2. PRESENTATIONS
2.1 RECOGNITION OF THE LATHROP HIGH SCHOOL BOYS VOLLEYBALL TEAM
2.2 FRONTIER COMMUNICATIONS PRESENTATION PROVIDED BY DOUGLAS
MCALLISTER, VICE PRESIDENT, EXTERNAL AFFAIRS
2.3 INTRODUCTION OF NEW EMPLOYEES:
Public Works Department
• Carlos Carrillo, Management Analyst
• Steven Hollenbeck, Assistant Engineer
• Jason Reyes, Construction Inspector
• Ed Short, Chief Building Official
Police Department
• Jonathan Bengard, Police Officer
• Michael Bower, Police Officer
• Clinton Armstrong, Police Officer
• Coleman Elliott, Police Officer
• Nicole Valker-Taylor, Police Officer
• Nathanael Novello, Police Officer
• Amador Almanza, Police Officer
• Liliana Espinoza Hernandez, Community Services Officer • Roberto Franco, Community Services Officer
• Earleen Chambers, Records Assistant
2.4 LATHROP POLICE DEPARTMENT PRESENTATION
2.5 PROCLAMATION RECOGNIZING THE IMPORTANCE OF ACCESS TO LOCAL
PARKS, RECREATION, TRAILS, OPEN SPACE, AND FACILITIES FOR THE
POSITIVE DEVELOPMENT OF THE LATHROP COMMUNITY AND CITIZENS, AND DECLARING JULY 2022 AS PARKS AND RECREATION MONTH
2.6 MAYOR’S COMMITTEE REPORT(S)
• Parks, Recreation & Maintenance Services Update on Committee Events and Programs
3. CITIZEN’S FORUM
Any person desiring to speak on a matter, which is not scheduled on this agenda, may do so under Citizen’s Forum. Please submit a purple speaker card to the City Clerk prior to the commencement of Citizen’s Forum. Only those who have submitted speaker cards, or have expressed an interest to speak, prior to the conclusion of Citizen’s Forum will be called upon to speak. Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item, which does not appear on the agenda, unless the item meets 5 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 5 stringent statutory requirements. The City Council can, however, allow its members or staff to briefly (no more than five (5) minutes) respond to statements made, to ask questions for clarification, make a brief announcement or report on his or her own activities. (See California Government Code Section 54954.2(a)).
Unless directed otherwise by a majority of the City Council, all questions asked and not answered at the meeting will be responded to in writing within 10 business days. ALL PUBLIC COMMENTS MUST BE MADE IN COMPLIANCE WITH THE LATHROP CITY COUNCIL HANDBOOK OF RULES AND PROCEDURES!
4. CONSENT CALENDAR
Items on the Consent Calendar are considered routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless the Mayor, Councilmember, or citizen so requests, in which event the item will be removed from the Consent Calendar and considered separately.
4.1 WAIVING OF READING OF ORDINANCES AND RESOLUTIONS
Waive the Reading in Full of Ordinances and Resolutions on Agenda and Adopt by Reading of Title Only, Unless Otherwise Requested by the Mayor or a Councilmember
4.2 APPROVAL OF MINUTES
Approve Minutes for the Regular Council Meeting of June 13, 2022
4.3 ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2021
Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2021
4.4 ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21-08 Adopt Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc. for the Manthey Road Rehabilitation, CIP PS 21- 08, Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
4.5 ACCEPT PUBLIC IMPROVEMENTS FOR PHASE 1 OF THE GATEWAY
DEVELOPMENT AND AUTHORIZE RELEASE OF BONDS ASSOCIATED WITH THE SUBDIVISION IMPROVEMENT AGREEMENT FOR PARCEL MAP 19-03 Adopt Resolution Accepting Public Improvements for Phase 1 of the Gateway Development and Authorize the Release of Bonds Associated with the Subdivision Improvement Agreement for Parcel Map 19-03
4.6 ACCEPT PUBLIC IMPROVEMENTS WITH ASSOCIATED CONDITIONS FOR TRACT 4062, PHASE 1C, IN THE CENTRAL LATHROP SPECIFIC PLAN FROM
LATHROP LAND ACQUISITION, LLC
6 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 6 Adopt Resolution Accepting Public Improvements with Associated Conditions for Tract 4062, Phase 1C, in the Central Lathrop Specific Plan from Lathrop Land Acquisition, LLC
4.7 MUNICIPAL SERVICE REVIEW UPDATE AND SPHERE OF INFLUENCE PLAN Adopt Resolution Authorizing Staff to Submit the Municipal Service Review Update and Sphere of Influence Plan to the San Joaquin Local Agency Formation Commission for Review and Approval
4.8 CREATE CAPITAL IMPROVEMENT PROJECT PS 23-01 CITY-WIDE TRAFFIC
SYSTEMS AND SAFETY UPGRADES PROJECT, AND APPROVE RELATED
BUDGET AMENDMENT
Adopt Resolution Creating CIP PS 23-01 City-Wide Traffic Systems and Safety Upgrades Project, and Approve Related Budget Amendment
4.9 AMEND THE CITY OF LATHROP’S EMPLOYEE TRAVEL EXPENSE
REIMBURSEMENT POLICY AND PROCEDURE
Adopt a Resolution Amending the City of Lathrop Employee Travel/Expense Reimbursement Policy and Procedure
4.10 APPROVE THE RECLASSIFICATION OF ONE (1) PART-TIME SENIOR
RECREATION LEADER POSITION TO A FULL TIME SENIOR RECREATION LEADER POSITION IN THE RECREATION DIVISION, AND ONE (1) FULLTIME MAINTENANCE WORKER POSITION TO A FULL-TIME MAINTENANCE
SUPERVISOR POSITION IN THE STREETS AND MAINTENANCE DIVISION OF
THE PARKS, RECREATION, AND MAINTENANCE SERVICES DEPARTMENT Adopt a Resolution Approving the Reclassification of One (1) Part-Time Senior Recreation Leader Position to a Full-Time Senior Recreation Leader Position in the Recreation Division, and One (1) Full-Time Maintenance Worker to a Maintenance Supervisor in the Streets and Maintenance Division of the Parks, Recreation and Maintenance Services Department
RIVER ISLANDS CONSENT ITEM(S)
4.11 APPROVE FINAL MAP, CFD ANNEXATION, AND SUBDIVISION IMPROVEMENT AGREEMENT FOR 75 LOTS IN TRACT 4131 VILLAGE “KK”
WITHIN OLD RIVER DISTRICT OF RIVER ISLANDS
Adopt Resolution Approving Final Map for Tract 4131 Village “KK” within the Old River District, Totaling 75 Single Family Lots, CFD Annexation No. 25, and Subdivision Improvement Agreement with River Islands Stage 2B, LLC
4.12 ADOPT 2022 ADEQUATE PROGRESS FINDING TOWARD PROVISION OF 200-YEAR URBAN LEVEL OF FLOOD PROTECTION FOR ISLAND
RECLAMATION DISTRICT 2062 (RIVER ISLANDS PHASES 1 AND 2) Adopt Resolution Adopting 2022 Adequate Progress Findings toward providing a 200-Year Urban Level of Flood Protection in Phases 1 and 2 Levees of Island Reclamation District 2062 by the Year 2025, Acting as the Land Use Agency
7 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 7
5. SCHEDULED ITEMS
5.1 PUBLIC HEARING AND APPROVAL OF THE MOSSDALE TRACT ENHANCED
INFRASTRUCTURE FINANCING DISTRICT (MOSSDALE TRACT EIFD)
INFRASTRUCTURE FINANCING PLAN (IFP)
Conduct a Public Hearing and Consider Adoption of a Resolution Approving the Mossdale Tract Enhanced Infrastructure Financing District (Mossdale Tract EIFD) Infrastructure Financing Plan (IFP)
5.2 PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER ADOPTION OF THE
WEST/CENTRAL LATHROP REGIONAL TRANSPORTATION AND CENTRAL
LATHROP SPECIFIC PLAN CAPITAL FACILITY FEE UPDATE STUDIES AND
THE FEES RECOMMENDED THEREIN
City Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt a Resolution Approving the West/Central Lathrop Regional Transportation and Central Lathrop Specific Plan Capital Facility Fee Update Studies and the Fees
Recommended Therein
5.3 PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER APPROVAL OF A
CONDITIONAL USE PERMIT AND DEVELOPMENT AGREEMENT FOR THE
CENTRAL CALIFORNIA GREENS PROJECT
Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt a Resolution Approving a Conditional Use Permit for the Central California Greens Project to Operate a Cannabis Retail Dispensary and Delivery Facility in an Existing Multi-Tenant Building (CUP-22-58).
3. First Reading and Introduce an Ordinance to Approve a Development Agreement Between the City of Lathrop and
Central California Greens, Inc. (DA-22-81)
5.4 REVIEW AND CONSIDER TRAFFIC CALMING IMPROVEMENTS AT BARBARA
TERRY BOULEVARD AND ADOBE WAY, JOHNSON FERRY ROAD AND
VICTORIAN TRAIL, AND JOHNSON FERRY ROAD AND FORTY NINER TRAIL Council to Consider Options for Traffic Calming Improvements at Barbara Terry Boulevard and Adobe Way, Johnson Ferry Road and Victorian Trail, And Johnson Ferry Road and Forty Niner Trail
5.5 DISCUSS AND APPROVE AN OPTION AND LAND LEASE AGREEMENT FOR
THE CONSTRUCTION OF A NEW WIRELESS COMMUNICATIONS TOWER Discuss and Adopt Resolution Approving an Option and Land Lease Agreement for the Construction of a New Wireless Communications Tower 8 July 11, 2022 Lathrop City Council Regular Meeting Agenda Page 8
6. COUNCIL COMMUNICATIONS
6.1 MAYOR DHALIWAL REFERRAL - Appointment of Two (2) Members to the Parks and Recreation Commission with Term Ending June 30, 2025 • Two (2) Applications Received
6.2 MAYOR DHALIWAL REFERRAL - Appointment of Two (2) Members to the Planning Commission with Term Ending June 30, 2026
• Two (2) Applications Received
6.3 MAYOR DHALIWAL REFERRAL - Appointment of One (1) Member to the Measure C Oversight Committee with Term Ending June 30, 2025 • One (1) Application Received
6.4 MAYOR & COUNCILMEMBER COMMITTEE REPORT(S)
• Central Valley Executive Committee/LOCC (Akinjo/Diallo) • Council of Governments (Lazard/Diallo)
• Integrated Waste Management Solid Waste Division (Akinjo/Torres-O’Callaghan) • Reclamation District 17 Joint Powers Authority (Salvatore) • San Joaquin Partnership Board of Directors (Salvatore) • San Joaquin County Commission on Aging (Zavala)
• San Joaquin Valley Air Pollution Control District (Akinjo/Dhaliwal) • Water Advisory Board (Torres-O’Callaghan/Lazard)
• Tri Valley-San Joaquin Valley Regional Rail Authority (Akinjo) • San Joaquin Area Flood Control Agency (Akinjo & Lazard) • LAFCo (Diallo)
6.5 MAYOR & COUNCILMEMBER COMMENT(S)
7. ADJOURNMENT
/Teresa Vargas/
Teresa Vargas, MMC
Government Services Director/City Clerk
9 ITEM 4. 2
CITY OF LATHROP
CITY COUNCIL REGULAR MEETING
MONDAY, JUNE 13, 2022
7: 00 P. M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
MINUTES
PLEASE NOTE: There was a Closed Session, which commenced at 6: 04 n. m. The Reuular Meetinu reconvened at 7; 07 n. m.
1. PRELIMINARY
1. 1 CALL TO ORDER - Mayor Dhaliwal called the meeting to order at 6: 04 p. m.
1. 2 CLOSED SESSION
1. 2. 1 CONFERENCE WITH LEGAL COUNSEL: Anticipated Litigation - Significant Exposure to Litigation Pursuant to Government Code Section 54956. 9( b)
2 Potential Case( s)
RECONVENE - Mayor Dhaliwal reconvened the meeting at 7: 07 p. m.
1. 2. 2 REPORT FROM CLOSED SESSION
City Attorney Saivador Navarrete reported that direction was provided pursuant to Item 1. 2; no other reportable action taken.
1. 3 ROLL CALL Present: Mayor Dhaliwal; Vice Mayor Lazard; Councilmembers: Akinjo, Diallo, and
Torres- O' Callaghan
Absent: None
1. 4 INVOCATION - Pastor Nathanial Camarena, Abundant Life Center Church of Lathrop, provided the invocation.
1. 5 PLEDGE OF ALLEGIANCE - Pastor Nathanial Camarena led the pledge of allegiance.
1. 6 ANNOUNCEMENT( S) BY MAYOR / CITY MANAGER
City Manager Stephen Salvatore removed Item 2. 2 ofF the agenda, no action taken on the item. City Manager Stephen Salvatore also provided the following announcements: Grand Opening of the new Lathrop Police Station scheduled for ) une 25, 2022 and the Celebration of the City' s June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 1 10 Incorporation scheduled for July 1, 2022. A brief update on the transitioning of the new Lathrop Police Department was provided City Manager Stephen Salvatore, incoming Chief of Police Raymond Bechler, Commanders Sealy and Oki. Staff announced that the Police Department was on schedule to launch at the end of June. A question and answer period ensued throughout the City Manager announcements.
1. 7 INFORMATIONAL ITEM( S) - None
1. 8 DECLARATION OF CONFLICT( S) OF INTEREST
Vice Mayor Lazard declared a conflict of interest with Item 4. 20, due to her employment with Dell' Osso Farms. Councilmember Diallo declared a conflict of interest with Item 4. 20. Councilmember Torres- O' Callaghan declared a conflict of interest with Item 5. 1, due to her place of residence within the Mossdale Landscape and Lighting Maintenance District area.
Later in the meeting, Councilmember Akinjo Item declared a conflict of interest with Item 5. 2, due to his place of residence within the Stonebridge Landscaping Maintenance District and Stonebridge Drainage and Lighting District- areas, and Mayor Dhaliwal declared a conflict of interest with Item
5. 3, due to his place of residence within the Landscape and Lighting Maintenance District No. 93- 1 ( Woodfield Park) area.
2. PRESENTATIONS
2. 1 RECOGNITION OF GLENN GEBHARDT FOR HIS YEARS OF SERVICE WITH
THE CITY OF LATHROP
City Manager Stephen Salvatore announced retirement of City Engineer Glenn Gebhardt' s and recognized him for his years of service in the City of Lathrop and locai jurisdictions. The Mayor and Councilmembers expressed appreciation to Mr. Gebhardt for his tenure with the City and wished him well in his future endeavors.
2. 2 RECOGNITION OF SAN JOAQUIN COUNTY SHERIFF DEPUTIES FOR
PROVIDING LAW ENFORCEMENT SERVICES TO THE CITY OF LATHROP Item 2. 2 pulled off the agenda by staff, no action taken.
City Council consensus directed staff to introduce proclamations under Items 2. 4, Z. 5 and 2. 6, before introduction of new employees listed under Item 2. 3.
2. 3 INTRODUCTION OF NEW EMPLOYEES
Information Systems Director Tony Fernandes introduced Management Analyst Hailey Emery, and Information Technology Engineers David Ruiz, Alex Gonzalez, and Brian Fabela.
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 2 11 Assistant City Manager Michael King introduced new Public Works employees: Construction Inspector, Tyler Milton, and Permit Technicians Keane Chua- Cabe and Isaac Toscano. New employee Carlos Carrillo, Management Analyst, was not available for introduction.
Parks, Recreation and Maintenance Services Director Todd Sebastian introduced Recreation Coordinator Destiny Johnson.
Incoming Chief of Police Raymond Bechler introduced Policer Officers:
Ricardo Altamirano, Carlos Gonzalez, Ashlyn Howard, Stephen Memory, Nam Nguyen, and Steven Poortinga; Property & Evidence Technician Melissa Dooley and Community Services Officer Mathew Davis. New employee Jonathan Bengard, Police Officer, was not available for introduction. Incoming Chief of Police Raymond Bechler also introduced newly promoted Police Sergeant Robert Dominguez.
2. 4 * PROCLAMATION DECLARING JUNE 2022 AS ELDER & DEPENDENT ADULT
ABUSE AWARENESS MONTH
Councilmember Akinjo provided the proclamation declaring June 2020 as Elder & Dependent Abuse Awareness Month to Social Worker Supervisor Tomeka Runner, with the San Joaquin County Human Services Agency. Ms.
Runner provided remarks on the matter.
2. 5 * PROCLAMATION DECLARING JUNE 2022 AS PRIDE MONTH
Councilmember Torres- O' Callaghan provided the proclamation declaring June 2022 as pride month. The proclamation was dedicated to the Lathrop High School LGBTQ+ Club.
2. 6 * PROCLAMATION DECLARING JUNE 19, 2022 AS CELEBRATION OF
JUNETEENTH NATIONAL FREEDOM DAY
Councilmember Dialio provided the proclamation declaring June 19, 2022 as celebration of Juneteenth National Freedom Day. The proclamation was presented to local Elementary School Principal Krystal Taylor. Ms. Taylor provided remarks on the matter.
3. CITIZEN' S FORUM
Michael Mark, San Joaquin Building Trades Council, provided information regarding apprentice trade programs offered in San Joaquin County.
4. CONSENT CALENDAR
On a motion by Vice Mayor Lazard, seconded by Councilmember Diallo, the City Council approved the Consent Calendar, except Item * 4. 18 and ** Item 4. 20, by the following roll call vote, unless otherwise indicated:
une 13, 2022 Lathrop City Council Regular Meeting Minutes Page 3 12 Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan and Dhaliwal Noes: None
Absent: None
Abstain: None
Item 4. 18 - item moved to the July 11, 2022 Regular Meeting Item 4. 20 - was voted on separately from the Consent Calendar.
4. 1 WAIVING OF READING OF ORDINANCES AND RESOLUTIONS
Waived the reading in full of ordinances and resolutions on agenda and adopt by reading of title only, unless otherwise requested by the Mayor or a Councilmember.
4. 2 APPROVAL OF MINUTES
Approved Minutes for the Special Council Meeting of May 16, 2022.
4. 3 SECOND READING AND ADOPTION OF ORDINANCE 22- 434 BY THE CITY
COUNCIL OF THE CITY OF LATHROP ACCEPTING REQUIREMENTS OF THE
PENAL CODE RELATING TO THE RECRUITMENT AND TRAINING OF LAW
ENFORCEMENT OFFICERS
Waived full reading and adopted Ordinance 22- 434 amending Title 9 Public Peace and Welfare" of the Lathrop Municipal Code by adding new Chapter 9. 02 titied " Peace Officer Standards and Training" to accept requirements of the penal code relating to the recruitment and training of law enforcement officers.
4. 4 SECOND READING AND ADOPTION OF ORDINANCE 22- 435 BY THE CITY
COUNCIL OF THE CITY OF LATHROP AMENDING THE LATHROP MUNICIPAL CODE TITLE 8 HEALTH AND SAFETY", CHAPTER 8. 16 ENTITLED " GARBAGE COLLECTION AND DISPOSAL", SECTION 8. 16. 010 ENTITLED
DEFINITIONS" AND ADDING A NEW SECTION 8. 16. 310 ENTITLED ' EDIBLE
FOOD RECOVERY
Pulied by Counciimember Akinjo. A question and answer period ensued.
Parks, Recreation and Maintenance Services Director Todd Sebastian provided additional information.
Waived full reading and adopted Ordinance 22- 435 amending the Lathrop Municipal Code Title 8 " Health and Safety", Chapter 8. 16 titled ' Garbage Collection and Disposal", Section 8. 16. 010 titled " Definitions" and adding a new Section 8. 16. 310 titled " Edible Food Recovery".
4. 5 SECOND READING AND ADOPTION OF ORDINANCE 22- 436 BY THE CITY
COUNCIL OF THE CITY OF LATHROP ADOPTING A POLICY FOR THE USE OF
MILITARY EQUIPMENT BY THE LATHROP POLICE DEPARTMENT
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 4 13 Pulled by Vice Mayor Lazard. A question and answer period ensued.
Incoming Chief of Police Raymond Bechler provided additional information.
Waived full reading and adopted Ordinance 22- 436 amending Title 9 Public Peace and Welfare" of the Lathrop Municipal Code by adding new Chapter 9. 20 titled Use of Military Equipment" to establish a policy for the proper use, funding and acquisition of military style equipment as set forth by Assembly Bill 481 ( Chieu).
4. 6 SECOND READING AND ADOPTION OF ORDINANCE 22- 437 BY THE CITY
COUNCIL OF THE CITY OF LATHROP ADOPTING A POLICY FOR THE ONLINE
SUBMITTAL OF DISCLOSURE DOCUMENTS
Waive Full Reading and Adopt Ordinance 22- 437 amending Title 2 Administration and Personnel" of the Lathrop Municipal Code By adding new Chapter 2. 60 titled " Electronic Filing" to accept electronic and paperless filing of Fair Political Practices Commission Disclosure Campaign Statements & Statements Of Economic Interest Forms.
4. 7 AWARD AGREEMENT TO MANTECA BULLETIN FOR PUBLICATION OF LEGAL
ADVERTISEMENTS
Adopted Resolution 22- 5084 awarding Agreement to the Manteca Bulletin for publication of legal advertisements for the period of July l, 2022 through June 30, 2023.
4. 8 GENERAL MUNICIPAL ELECTION - NOVEMBER 8, 2022
Council considered the following:
1. Adopted Resolution 22- 5085 calling for the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers as required by the provisions of the laws of the State of California relating to general law cities;
2. Adopted Resolution 22- 5086 requesting the San Joaquin County Board of Supervisors to consolidate a General
Municipal Election to be held on November 8, 2022, with the Statewide General Election to be held on the same date
pursuant to § 10403 of the Elections Code; and
3. Adopted Resolution 22- 5087 adopting regulations for candidates for elective office pertaining to candidates statements submitted to the voters at an election to be held on Tuesday, November 8, 2022.
4. 9 GANN APPROPRIATION LIMIT FOR FISCAL YEAR 2022- 23
Pulled by Councilmember Akinjo. A question and answer period ensued.
Deputy Finance Director Thomas Hedegard provided additional information.
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 5 14 Adopted Resolution 22- 5088 determining the total annual appropriations subject to limitation for Fiscal Year 2022- 23.
4. 10 TRANSPORTATION DEVELOPMENT ACT CLAIM FOR FISCAL YEAR 2021- 22 Adopted Resolution 22- 5089 authorizing the filing of a Transportation Development Act ( TDA) claim for Local Transportation Funds ( LTF) for Fiscai Year 21- 22.
4. 11 AUTHORIZE ADJUSTMENT TO THE REPUBLIC SERVICES SOLID WASTE COLLECTION RATES FOR FISCAL YEAR 2022- 2023
Pulled by Councilmembers Torres- O' Callaghan, Diallo and Akinjo. A question and answer period ensued. Parks, Recreation and Maintenance Services Director Todd Sebastian provided additional information. Kevin Basso, General Manager with Republic Services, also provided additional information.
Adopted Resolution 22- 5090 authorizing an increase to Republic Services collection rates based on the Consumer Price Index for San Francisco- Oakland- San Jose for all urban consumers for Fiscal Year 2022- 2023.
4. 12 ACCEPT PUBLIC IMPROVEMENTS FOR THE MOSSDALE LANDING
APARTMENTS IN THE MOSSDALE VILLAGE AND MOSSDALE LANDING
SPECIFIC PLANS FROM MOSSDALE LANDING OWNER, LLC
Adopted Resolution 22- 5091 accepting public improvements for the Mossdale Landing Apartments in the Mossdale Village and Mossdale Landing Specific Plans from Mossdale Landing Owner, LLC and release of performance and labor & material bonds.
4. 13 CREATE CAPITAL IMPROVEMENT PROJECT ( CIP) PK 22- 44 INSTALLATION
OF RUBBERIZED SURFACING, AWARD CONSTRUCTION CONTRACT TO FRONTLINE GENERAL ENGINEERING CONSTRUCTION, INC., AND APPROVE
RELATED BUDGET AMENDMENT
Pulled by Councilmembers Diallo. A question and answer period ensued.
Parks, Recreation and Maintenance Services Director Todd Sebastian provided additional information.
Adopted Resolution 22- 5092 creating CIP PK 22- 44 installation of rubberized surfacing, awarding construction contract to Frontline General Engineering Construction, Inc. for the installation of rubberized surfacing at Reflections Park, Tidewater Park, and Somerston Park, and approving related budget amendment.
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 6 15 4. 14 CREATE CAPITAL IMPROVEMENT PROJECT PS 22- 45 FOR FISCAL YEAR 2022- 23 ROAD MAINTENANCE AND REHABILITATION PROJECT,
AND APPROVE RELATED BUDGET AMENDMENT
City Clerk Teresa Vargas announced correction to the item updating the Fiscal Year from 2021- 22 to 2022- 23.
Pulled by Councilmember Akinjo. A question and answer period ensued.
Assistant City Manager Michael King provided additional information.
Adopted Resolution 22- 5093 creating Capital Improvement Project PS 22- 45 for Fiscal Year Z^' 2022- 23 Road Maintenance and Rehabilitation Project, and approving related budget amendment.
4. 15 AWARD CONSTRUCTION CONTRACT TO AMERICAN PAVEMENT SYSTEMS INC. FOR THE PAVEMENT MAINTENANCE AND REHABILITATION CAPITAL IMPROVEMENT PROJECT PS 21- 12 AND APPROVE RELATED BUDGET
AMENDMENT
Pulled by Councilmember Akinjo. A question and answer period ensued.
Assistant City Manager Michael King provided additional information.
Adopted Resolution 22- 5094 awarding a Construction Contract to American Pavement Systems Inc. for the pavement maintenance and rehabilitation, Capital Improvement Project PS 21- 12, and approving related budget amendment.
4. 16 APPROVE FISCAL YEAR 2022- 23 PROJECT LIST ASSOCIATED WITH SENATE BILL 1
Pulled by Councilmember Akinjo. A question and answer period ensued.
Assistant City Manager Michael King provided additional information.
Adopted Resolution 22- 5095 approving a list of projects for Fiscal Year 2022- 23, funded By Senate Bill 1, the Road Repair and Accountability Act of 2017.
4. 17 APPROVE AMENDMENT NO. 1 TO THE AGREEMENT WITH THE CITY OF
RIPON TO EXPAND SERVICES TO INCLUDE EVIDENCE STORAGE AND
MANAGEMENT IN SUPPORT OF THE LATHROP POLICE DEPARTMENT
Pulled by Councilmembers Diallo. A question and answer period ensued.
Incoming Chief of Police provided additional information.
Adopted Resolution 22- 5096 approving Amendment No. 1 to the Agreement with the City of Ripon, dated October 13, 2021, to expand services to include evidence storage and management in support of the Lathrop Police Department, with term ending June 30, 2023.
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 7 16 4. 18 APPROVE OPTION AND LAND LEASE AGREEMENT FOR THE CONSTRUCTION
OF A NEW WIRELESS COMMUNICATIONS TOWER
City Clerk Teresa Vargas introduced into the record the Option and Land Lease Agreement as " Attachment C" to the staff report. Copies were made available at the meeting and on the City' s website to the City Council and the public.
Pulled by Councilmember Akinjo. A question and answer period ensued.
City Attorney Salvador Navarrete, City Manager Stephen Salvatore and Information Systems Director Tony Fernandes provided additional information.
City Council consensus directed staff to pull Item 4. 18 and agendize the item on the July 11, 2022 regular meeting. No other action was taken on Item 4. 18.
Christina Laughlin ( zoom speaker) asked questions regarding ownership and maintenance of the tower, and potential company mergers. City Attorney Salvador Navarrete provided additional information.
Resolution not adopted approving an Option and Land Lease Agreement for the construction of a new wireless communications tower.
4. 19 APPROVE PURCHASE OF ONE ( 1) REPLACEMENT UTILITY WORK VEHICLE
FOR THE PARKS, RECREATION AND MAINTENANCE SERVICES
DEPARTMENT AND RELATED BUDGET AMENDMENT
Adopted Resolution 22- 5097 approving the purchase of one ( 1) replacement city vehicle from Elk Grove Auto/ Winner Chevrolet for the Parks, Recreation and Maintenance Services Department and related budget amendment.
RIVER ISLANDS CONSENT ITEM( S)
Vice Mayor Lazard and Councilmember Diallo recused themselves 9: 44 p. m., following the vote of the consent calendar ( Items 4. 1 to 4. 19), prior to the vote of Item 4. 20, due to declared conflict of interest as noted in Item 1. 8.
City Attorney Salvador Navarrete announced that Vice Mayor Lazard was stepping down due to receiving $ 500 or more, due to her employment with DeII' Osso Farms, and Councilmember Diallo was stepping down due to an agreement with the River Islands Development, and the Fair Political Practices Commission ( FPPC) determination/ legal opinion on the matter was pending.
On a motion by Councilmember Akinjo, seconded by Councilmember TorresO' Callaghan, the City Council approved Item 4. 20, by the following roll call vote, unless otherwise indicated:
une 13, 2022 Lathrop City Council Regular Meeting Minutes Page 8 17 Ayes: Akinjo, Torres- O' Callaghan and Dhaliwai
Noes: None
Absent: None
Abstain: Diallo and Lazard
4. 20 APPROVE THE 2022 JOINT COMMUNITY FACILITIES AGREEMENT WITH
RIVER ISLANDS PUBLIC FINANCING AUTHORITY FOR COMMUNITY
FACILITIES DISTRICT 2003- 1 RIVER ISLANDS
Adopted Resolution 22- 5098 approving the 2022 Joint Community Facilities Agreement between City of Lathrop and River Islands Public Financing Authority relating to its Community Facilities District No. 2003- 1 Public Improvements).
Vice Mayor Lazard and Councilmember Diallo returned to the dais at 9: 46 p. m.
5. SCHEDULED ITEMS
As it related to Items 5. 1, 5. 2 and 5. 3, City Attorney Salvador Navarrete explained for the benefit of the public that a qualifying conflict of interest existed when a member of Council resided within a District with less than 15% of the total number of residences within the City. Therefore, Councilmember Akinjo and Mayor Dhaliwal were legally required to step down due to qualifying conflicts of interest, as noted under Item 1. 8.
Councilmember Torres- O' Callaghan was not legally required to step down noted under Item 1. 8, however, decided to abstain from voting on Item 5. 1 as a precautionary measure.
5. 1 PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER FISCAL YEAR 2022/ 23 ASSESSMENTS FOR INDUSTRIAL LIGHTING MAINTENANCE DISTRICT; RESIDENTIAL LIGHTING MAINTENANCE DISTRICT; MOSSDALE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT; STORM DRAIN ZONE 1 AND lA
Deputy Finance Director Thomas Hedegard provided the presentation. A question and answer period ensued. Mayor Dhaliwal opened the public hearing. There were no speakers. Mayor Dhaliwal closed the public hearing.
On a motion by Councilmember Akinjo, seconded by Vice Mayor Lazard the City Council considered the following:
1. Held a public hearing; and
2. Adopted Resolution 22- 5099 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the City of Lathrop Industrial Lighting Maintenance District for Fiscal Year 2022/ 23; Maximum
Assessment for the District for Fiscal Year 2022/ 23 not to exceed Zone A $ 8. 34; Zone B $ 42. 52; Zone C $ 8. 34, and Proposed Annual Assessment for Fiscal Year 2022/ 23 Zone A
8. 34; Zone B $ 42. 52; Zone C $ 8. 34; and
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 9 18 3. Adopted Resolution 22- 5100 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the City of Lathrop Residential Lighting Maintenance District for Fiscal Year 2022/ 23; Maximum
Assessment for the District for Fiscal Year 2022J23 not to exceed Zone A $ 47. 57; Zone B $ 50. 97; Zone C $ 33. 51; Zone D $ 62. 34; Zone E $ 65. 54; Zone F $ 37. 69; Zone G $ 8. 62, and Proposed Annua) Assessment for Fiscal Year 2022/ 23 Zone A
47. 57; Zone B $ 50. 97; Zone C $ 33. 51; Zone D $ 62. 34; Zone E $ 65. 54; Zone F $ 37. 69; Zone G $ 8. 62; and
4. Adopted Resolution 22- 5101 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the Mossdale Landscape and Lighting
Maintenance District for Fiscal Year 2022/ 23; Maximum
Assessment for Fiscal Year 2022/ 23 not to exceed $ 301. 70, and Proposed Annual Assessment for Fiscal Year 2022/ 23 301. 70; and
5. Adopted Resolution 22- 5102 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the Storm Drain District Zone 1 and Zone 1A for Fiscal Year 2022/ 23; Proposed Annual Assessment for Fiscal Year 2022/ 23 for Storm Drain Zone 1 not to exceed 112. 52, and Proposed Annual Assessment for Fiscal Year 2022/ 23 for Storm Drain Zone 1A not to exceed $ 199. 92. seS rTr-.- rm-z F ArrrrcTa-irr- r.ir,ri FC- ' y n
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No. 6 is the same of No. 5; listed twice in error.
Ayes: Akinjo, Diallo, Lazard and Dhaliwal
Noes: None
Absent: None
Abstain: Torres- O' Callaghan ( due to her residence within the Mossdale Landscape and Lighting Maintenance District
area)
5. 2 PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER FISCAL YEAR 2022/ 23 ASSESSMENTS FOR THE STONEBRIDGE LANDSCAPING
DISTRICT; AND THE STONEBRIDGE DRAINAGE AND LIGHTING
MAINTENANCE DISTRICT
Councilmember Akinjo recused himself at 9: 54 p. m., following the vote of Item 5. 1, due to declared conflict of interest as noted in Item 1. 8.
June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 10 19 Deputy Finance Director Thomas Hedegard provided the presentation. A question and answer period ensued. Mayor Dhaliwal opened the public hearing. There were no speakers. Mayor Dhaliwal closed the public hearing.
On a motion by Vice Mayor Lazard, seconded by Mayor Dhaliwal the City Council considered the following:
1. Held a pubiic hearing; and
2. Adopted Resolution 22- 5103 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the Stonebridge Landscaping Maintenance District; Maximum Assessment for Fiscal Year 2022/ 23 not to exceed $ 483. 76, and the Proposed Annual Assessment for Fiscal Year 2022/ 23 is $ 370. 48; and
3. Adopted Resolution 22- 5104 approving the Final
Engineer' s Report and Ordering the Levy and Collection of Assessments for the Stonebridge Drainage and Lighting
District for Fiscal Year 2022/ 23; Maximum Assessment for Fiscal Year 2022/ 23 not to exceed $ 483. 76, and Proposed Annual Assessments for Fiscal year 2022/ 23 for Stonebridge Drainage and Lighting District is $ 300. 24.
Ayes: Diallo, Lazard, Torres- O' Cailaghan and Dhaliwal Noes: None
Absent: None
Abstain: Akinjo ( due to his residence within the Stonebridge Landscaping Maintenance District and Stonebridge
Drainage and Lighting District area)
CouncilmemberAkinjo returned to the dais at 10: 00 p. m.
5. 3 PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER FISCAL YEAR 2022/ 23 ASSESSMENTS FOR THE LANDSCAPE AND LIGHTING
MAINTENANCE DISTRICT NO. 93- 1 WOODFIELD PARK MAINTENANCE ZONE
Mayor Dhaliwal recused himself at 10: 00 p. m., following the vote of Item 5. 2, due to declared conflict of interest as noted in Item 1. 8. Vice Mayor Lazard presided over the matter.
Deputy Finance Director Thomas Hedegard provided the presentation. A question and answer period ensued. Vice Mayor Lazard opened the public hearing. There were no speakers. Vice Mayor Lazard ciosed the public hearing.
On a motion by Vice Mayor Lazard, seconded by Councilmember TorresO' Callaghan the City Council considered the following:
1. Held a public hearing; and
2. Adopted Resolution 22- 5104 the Final Engineer' s Report and Ordering the Levy and Collection of Assessments for the June 13, 2022 Lathrop City Council Regular Meeting Minutes Page 11 20 Landscape and Lighting Maintenance District No. 93- 1 Woodfield Park Maintenance Zone for Fiscal Year 2022/ 23; Proposed Annual Assessment for FY 2022/ 23 not to exceed 123. 90.
Ayes: Akinjo, Diallo, Torres- O' Callaghan and Lazard
Noes: None
Absent: None
Abstain: Dhaliwal ( due to his residence within the Landscape and Lighting Maintenance District No. 93- 1 Woodfield Park
Maintenance Zone area)
Mayor Dhaliwal returned to the dais at 10: 03 p. m.
6. COUNCIL COMMUNICATIONS
6. 1 MAYOR DHALIWAL REFERRAL - Appoint Three ( 3) Members to the Senior Advisory Commission, with Term Ending, ) une 30, 2025
Three ( 3) Applications Received
Mayor Dhaliwal made the following appointment:
Senior Advisory Commission Term Exuires
Teresa Provencio June 30, 2025
Nadine White June 30, 2025
Larry Belfield June 30, 2025
On a motion by Vice Mayor Torres- O' Callaghan, seconded by Councilmember Akinjo, the City Council approved the appointment made by Mayor Dhaliwal as noted above.
Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan, and Dhaliwal Noes: None
Absent: None
Abstain: None
6. 2 MAYOR DHALIWAL REFERRAL - Reappoint Marianne Hope Datoc to the San Joaquin County Mosquito & Vector Control District Board of Trustees, to Complete Term Ending December 31, 2024
Mayor Dhaliwal made the following reappointment:
S7C Mosquito & Vector Control District Term Exuires
Marianne Hope G. Datoc December 31, 2024
On a motion by Councilmember Akinjo, seconded by Vice Mayor TorresO' Callaghan, the City Council approved the appointment made by Mayor Dhaliwal as noted above.
June 13, Z022 Lathrop City Council Regular Meeting Minutes Page 12 21 Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan, and Dhaliwal Noes: None
Absent: None
Abstain: None
6. 3 MAYOR & COUNCILMEMBER COMMITTEE REPORT( S)
Councilmember Akinjo gave an overview of topics discussed during his attendance to the Cal Cities Environmental Quality Policy Committee and Tri Valley- San Joaquin Valley Regional Rail / Valley Link meetings.
6. 4 MAYOR & COUNCILMEMBER COMMENT( S)
Councilmember Torres- O' Callaghan congratulated recent high school, middle school and kindergarten graduates. Counciimember Diallo expressed appreciation to the San Joaquin County Sheriff' s Office for their service to the City of Lathrop over the past 33 years, and the LathropManteca Fire District and incoming Lathrop Police Department for their service to the community. Councilmember Diallo asked for an update on the CDBG projects and the City' s Travel Reimbursement Policy. Assistant City Manager Michael King responded to the questions, and City Clerk Teresa Vargas provided an update on the status of the Travel Reimbursement Policy. Councilmember Akinjo expressed the importance of pub ic engagement and working in a collaborate manner. Vice Mayor Lazard expressed appreciation to retiring City Engineer Glenn Gebhardt for his years of service with the city. Mayor Dhaliwal echoed similar sentiments; expressed appreciation to the San Joaquin County Sheriff' s Office and retiring City Engineer Glenn Gebhardt for their service to the City of Lathrop.
7. AD70URNMENT - There being no further business, Mayor Dhaliwal adjourned the meeting at 10: 18 p. m.
Teresa Vargas, M C
Government Services Director/ City Clerk
June 13, 2022 Lathrop City Councii Regular Meeting Minutes Page 13 22 23
CITY MANAGER' S REPORT ITEM 4.3
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPTANCE OF THE CITY OF LATHROP ANNUAL
COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR
THE FISCAL YEAR ENDING ) UNE 30, 2021
RECOMMENDATION: Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for
the Fiscal Year Ending ) une 30, 2021
SUMMARY:
The City' s auditor, Lance, Soll & Lunghard, LLP, has completed the review of the annual financial statements for the fiscal year ending June 30, 2021. The audited financial statements are incorporated into an Annual Comprehensive Financial Report ACFR). The auditors have issued an unmodified (" clean") audit opinion. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. These standards require that they plan and perform the audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement.
In addition to the opinion letter included in the ACFR document, Lance, Soll & Lunghard, LLP has prepared two separate reports on the required communications and the Memorandum on Internal Control ( MOIC) to the City Council. Staff received the finalized required communication report and the finalized MOIC from Lance, Soll Lunghard, LLP on ) une 29, 2022. The purpose of these reports to the City Council is to communicate the scope of audit procedures performed, significant findings, and other information, such as any disagreements with management, audit adjustments, and significant estimates that have not been communicated in the audited financial statements.
BACKGROUND:
Best financial practices as well as various financing covenants and regulations associated with restricted funding sources require the City to publish a complete set of financial statements each year presented in conformance with Generally Accepted Accounting Principles ( GAAP). The Government Code of the State of California requires general law cities, such as the City of Lathrop, to have its financial statements audited by an independent certified public accountant. Accordingly, this year' s audit was completed by the accounting firm of Lance, Soll & Lunghard, LLP.
The firm was contracted to render an opinion of the City' s financial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Lance, Soll & Lunghard, LLP presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council. 24 CITY MANAGER' S REPORT PAGE 2
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING 7UNE 30, 2021 The Annual Comprehensive Financial Report ( ACFR) for the fiscal year ended June 30, 2021 has been prepared by the City and audited by the certified public accounting firm of Lance, Soll & Lunghard, LLP. The ACFR and audit of the City' s financial statements were completed on June 29, 2022, and posted on the City' s website at that time. Lance, Soll & Lunghard, LLP has issued an unmodified ( clean") opinion of the ACFR which states that the financial statements are presented fairly, in all material respects.
In addition to the opinion letter included in the ACFR document, Lance, Soll & Lunghard, LLP has prepared two separate reports on the required communications and the Memorandum on Internal Control ( MOIC) to the City Council. StafF received the finalized required communication report and the finalized MOIC from Lance, Soll Lunghard, LLP on June 29, 2022. The purpose of these reports to the City Council is to communicate the scope of audit procedures performed, significant findings, and other information, such as any disagreements with management, audit adjustments, and significant estimates that have not been communicated in the audited financial statements.
Following completion of the ACFR, it was submitted to the Governmental Finance Officers Association ( GFOA) for the Certificate for Excellence in Financial Reporting program. The GFOA is a nationally recognized nonprofit professional association serving more than 20, 000 finance professionals in the United States and Canada, and the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. The City of Lathrop bas been awarded the prestigious Certificate for Excellence in Financial Reporting for 24 consecutive years. A Certificate of Achievement is valid for a period of one year only.
The City' s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the three sections summarized below.
The Introductory section includes this transmittal letter and general information on the City' s government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations ( GFOA) Certificate of Achievement for Excellence in Financial Reporting.
The Financial section contains the independent auditor' s report on the financial statement audit, the MD& A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.
The Statistical section includes selected financial and demographic information generally presented on a multi- year basis. This information includes financial 25 CITY MANAGER' S REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2021 trends, revenue capacity, debt capacity, demographics and economic and operating information.
REASON FOR RECOMMENDATION:
The auditors have issued an unmodified (" clean") audit opinion. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States.
FISCAL IMPACT:
There is no fiscal impact associated with this action. Unmodified audit reports are an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. They also help maintain the City' s favorable ratings for current and future debt issuances.
ATTACHMENTS:
A. Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for Fiscal Year Ending June 30, 2021.
B. City of Lathrop Annual Comprehensive Financial Report ( ACFR) for the Fiscal Year Ending June 30, 2021.
C. City of Lathrop Memorandum on Internal Control for the Fiscal Year Ending June 30, 2021
D. City of Lathrop June 30, 2021 Required Communications 26 CITY MANAGER' S REPORT PAGE 4
7ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING ) UNE 30, 2021 APPROVALS:
r ZuZ Z
Thomas Hedegard Date
Deputy Finance Director
i6
Ca ' J es Date
Dire r of Finance
7 - - zt.
Salvador Navarrete Date
City Attorney
7'' z2
Ste n ] Salvatore Date
City Manager
27 RESOLUTION NO. 22 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED ) UNE 30, 2021
WHEREAS, the financial statements of the City of Lathrop for the fiscal year ended June 30, 2021, have been prepared by the City' s Finance Department; and WHEREAS, the annual financial statements were examined by the independent public accounting firm of Lance, Soll & Lunghard, LLP; and WHEREAS, the City prepared the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021 and the auditor' s opinion is included therein; and
WHEREAS, it is the opinion of the auditors that the financial statements present fairly the financial position of the City as of June 30, 2021, and that the statements were prepared in accordance with accounting principles generally accepted in the United States of America; and
WHEREAS, the auditors have issued an unmodified (" clean") audit opinion; and
WHEREAS, in addition to the opinion letter included in the CAFR document, Lance, Soll & Lunghard, LLP has prepared two separate reports on the required communications and the Memorandum on Internal Control ( MOIC) to the City Council. Staff received the finalized required communication report and the finalized MOIC from Lance, Soll & Lunghard, LLP on June 29, 2022.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby accept the Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2021.
28 The foregoing resolution was passed and adopted this 11t'' day of July 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 29 r
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33 CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION:
Tableof Contents........................................................................................................................................... i Letterof Transmittal......................................................................................................................................... vi OrganizationalChart........................................................................................................................................ xi Directory of O cials and Advisory Bodies................................................................................................... xii Certificate of Achievement for Excellence in Financial Re P ortin 9.............................................................. xui FINANCIAL SECTION:
INDEPENDENT AUDITORS' REPORT.................................................................................................. 1 MANAGEMENT DISCUSSION AND ANALYSIS........................................................................................... 5
BASIC FINANCIAL STATEMENTS
Government- wide Financial Statements:
Statementof Net Position.............................................................................................................. 21 Statementof Activities....................................................................................................................... 22 Governmental Fund Financial Statements:
Balance Sheet- Governmental Funds.......................................................................................... 26 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position.................................................................................................... 29 Statement of Revenues Expenditures and Changes in Fund
Balances— Governmental Funds..................................................................................................... 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statementof Activities....................................................................................................................... 33 Proprietary Fund Financial Statements:
Statement of Net Position— Proprietary Funds............................................................................ 34 Statement of Revenues, Expenses and Changes in Fund
Net Position— Proprietary Funds..................................................................................................... 35 Statement of Cash Flows— Proprietary Funds............................................................................. 36 i
34 CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVEFINANCIALREPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position.............................................................................................. 38 Statement of Changes in Fiduciary Net Position............................................................................. 39 Notesto Financial Statements................................................................................................................. 41
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability— Miscellaneous Plan ..................... 74 Schedule of Plan Contributions— Miscellaneous Plan.................................................................... 76 Schedule of Changes in the Net OPEB Liability and Related Ratios.............................................. 78 Schedule of OPEB Contributions............................................................................................................ 79 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual:
GeneralFund.............................................................................................................................. 80 Developer Projects Special Revenue Fund ............................................................................... 82 Capital Facility Fees Special Revenue Fund................................................................................ 83 Building Safety& Inspection Special Revenue Fund.................................................................... 84 Development Engineering Special Revenue Fund....................................................................... 85 Developer Deposits Special Revenue Fund................................................................................. 86 Notes to Required Supplementary Information...................................................................................... 87
SUPPLEMENTAL INFORMATION
General Fund:
Descriptionof General Funds........................................................................................................... 91 CombiningBalance Sheet................................................................................................................ 92 Combining Statement of Revenues, Expenditures and Changes inFund Balance................................................................................................................................. 93 Schedules of Revenues, Expenditures and Change in Fund Balances— Budget and Actual General Purpose Fund.................................................................................................. 94 EconomicDevelopment................................................................................................ 96 MeasureC..................................................................................................................... 98 ii
35 CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Non- Major Governmental Funds:
Descriptionof Non- Major Funds..................................................................................................... 100 CombiningBalance Sheet........................................................................................................... 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................. 114 Schedules of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual:
Landscape Maintenance Fund.................................................................................... 124 GasTax Fund.............................................................................................................. 125 TrafficSafety Fund...................................................................................................... 126 LocalStreet Fund........................................................................................................ 127 PublicNuisance Fund.................................................................................................. 128 MeasureK Fund.......................................................................................................... 129 TransitLTF Fund......................................................................................................... 130 Streetsand Roads Fund ............................................................................................. 131 FederalGrant Fund..................................................................................................... 132 StormDrain Fund........................................................................................................ 133 StreetLight Fund......................................................................................................... 134 AB939Recycling Fund................................................................................................ 135 Community Development Block Grant Fund .............................................................. 136 ScholarshipFund......................................................................................................... 137 COPSFund .................................................................................................................138 Office of Traffic and Safety Fund ................................................................................ 139 RTIF San Joaquin County Fund.................................................................................. 140 RTIF Lathrop Local West Fund................................................................................... 141 RTIFSJCOG Fund...................................................................................................... 142 RTIF Lathrop Local East Fund.................................................................................... 143 LMFDMeasure C Fund............................................................................................... 144 StateGrants Fund....................................................................................................... 145 Citywide Economic Dev Fee 20% Fund...................................................................... 146 River Islands CFD 2013- 1 Fund.................................................................................. 147 ULOP RD- 17 Levee Impact Fund............................................................................... 148 CLSP Off- Site Roadway Improvement Fund.............................................................. 149 South Lathrop CFD 2019- 1 Fund................................................................................ 150 Central Lathrop CFD 2019- 2 Fund.............................................................................. 151 iii
36 CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Custodial Funds:
Combining Statement of Fiduciary Net Position— Custodial Funds.......................................... 154 Combining Statement of Changes in in Fiduciary Fund Net Position— Custodial Funds.......................................................................................................... 156
STATISTICAL SECTION
Financial Trends:
NetPosition by Component............................................................................................................ 160 Changesin Net Position................................................................................................................. 162 Fund Balances of Governmental Funds..................................................................................... 164 Changes in Fund Balances of Governmental Funds.................................................................... 166 Revenue Capacity Information:
Property Tax Levies and Collections.............................................................................................. 168 Assessed Value and Estimated Actual Value of Taxable Property.............................................. 169 PrincipalProperty Tax Payers........................................................................................................ 171 Debt Capacity Information:
Direct and Overlapping Governments............................................................................................ 172 Legal Debt Margin Information....................................................................................................... 174 OutstandingDebt............................................................................................................................ 176 Computation of Direct and Overlapping Debt................................................................................ 179 Pledged— Revenue Coverage....................................................................................................... 180 Demographic and Economic Information
Demographic and Economic Statistics .......................................................................................... 182 PrincipalEmployers......................................................................................................................... 183 iv
37 CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Operating Information:
Full- Time and Part- Time City Employees by Function.................................................................. 184 Operating Indicators by Function.................................................................................................... 186 Capital Asset Statistics by Function ............................................................................................ 187 WaterSold by Type of Customer................................................................................................... 188 WaterRates................................................................................................................................. 189 TenLargest Water Customers....................................................................................................... 190 Top25 Sales Tax Producers....................................................................................................... 191 v
38 THIS PAGE INTENTIONALLY LEFT BLANK
39 c, City of Lathrop t
f
Department ofFinance
390 Towne Centre Drive
Lathrop, California 95330
2,09- 94 I- 7320
y, w . www. ci. latl ro. ca. us
June 24, 2022
To the Honorable Mayor, Members of the City Council and Citizens of Lathrop Lathrop, California 95330
The Annual Comprehensive Financial Report of the City of Lathrop for the fiscal year( FY) ended June 30, 2021 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Lathrop. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds of the City of Lathrop. All disclosures necessary to enable the reader to gain an understanding of the City' s financial activities have been included.
This Annual Comprehensive Financial Report includes a summary of funds for the City of Lathrop and reports all activities considered to be a part of, controlled by, and dependent on the City. The accounts of the City are organized on the basis of fund accounting with each fund considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred outflows/ inflows of resources, fund equity, revenues and expenditures, or expenses as appropriate.
Government resources are allocated to, and accounted for, in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
The Annual Comprehensive Financial Report is prepared in accordance with Generally Accepted Accounting Principles ( GAAP) as set forth in pronouncements by the National Councii of Governmental Accounting ( NCGA) and the Governmental Accounting Standards Board ( GASB) and includes the report of the City' s independent certified public accountants, Lance, Soll and Lunghard, LLP. Based on the audit, the independent auditors concluded that there was reasonable basis for rendering an unmodified opinion which states that the City's financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditors report is presented as the first component of the financial section of this report.
ManagemenYs discussion and analysis ( MD&A) is required supplementary information and provides information and analysis that users need to interpret the basic financial statements. This transmittal letter is designed to complement the MD& A, and, therefore, should be read with it. The City' s MD& A can be found immediately following the independent auditor's report.
INTERNAL CONTROLS
To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP in the United States of America. vi
40 The internal control structure is designed to provide reasonable, but not absolute, assurance these objectives are met. The concept of reasonable assurance recognizes that( 1) the cost of control should not exceed the benefits likely to be derived from the control, and ( 2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above stated framework. We believe our internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.
INDEPENDENT AUDIT REPORT
The City Council is responsible for: 1) assuring the City administration fulfills its responsibilities in the preparation of the financial statements and 2) engaging certified public accountants to ensure sound audit and the accounting principles are applied in financial reporting.
The Government Code of the State of California requires general law cities, such as the City of Lathrop, to have its financial statements audited by an independent certified public accountant. Accordingly, this year's audit was completed by the accounting firm of Lance, Soll and Lunghard, LLP. The firm was engaged by the City Administration to render an opinion of the City' s financial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Lance, Soll and Lunghard, LLP presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council. The auditor's report on the basic financial statements is the first item in the accompanying Financial Section.
In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act, Title 2 U. S. Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ( Uniform Guidance).
The standards governing Single Audit engagements require the independent auditor to report not on y on the fair presentation of the financial statements, but also on the audited governmenYs internal controls and compliance with legal requirements.
REPORT ORGANIZATION:
The report is organized in three sections: introductory, financial, and statistical.
1. The Introductory section includes this transmittal letter and general information on the City' s government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations ( GFOA) Certificate of Achievement for Excellence in Financial Reporting.
2. The Financial section contains the independent auditor' s report on the financial statement audit, the MD& A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.
3. The Statistical section includes selected financial and demographic information generally presented on a multi- year basis. This information inciudes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.
PROFILE OF LATHROP
The City of Lathrop encompasses approximately 22 square miles. The City of Lathrop is located in San Joaquin County at the center of the Northern California metro market, close to the San Francisco Bay Area and Greater Sacramento regions, at the interchange of three major freeways: Interstate 5 ( I- 5), Interstate 205 ( I- 205), and the Highway 120 Freeway. As of January 1, 2021, the City had an estimated population of 28, 503.
The City of Lathrop is a general-law city incorporated under California law July 1, 1989. The City operates under the City Council / Manager form of government. Beginning with the municipai election in November 1996, the position of the Mayor is elected for a two- year term. Four Council Members are elected at- large and serve alternating four- year terms. Every two years in December, the Mayor and Council Members select a Council Member to serve as Vice- Mayor. The City Manager also serves as City Treasurer and the City Clerk is appointed by the City Manager. All municipal elections are non- partisan. vii
41 The City of Lathrop provides a wide range of municipal services, including police ( provided under contract by the San Joaquin County Sheriffs Department), water and sewer utilities, street maintenance, public transportation, parks and recreation, planning, building, code enforcement, and other general government services.
Fire services such as fire suppression and prevention are provided for the City by Lathrop- Manteca Fire Protection District and are funded separately by the Fire District. The Fire District provides specialized equipment and trained personnel 24 hours a day for emergency assistance to ail residents. The Fire District and the City work together for the mutual benefit of both agencies and the citizens they serve.
ECONOMIC CONDITION AND FINANCIAL OUTLOOK
Historically, Lathrop has been an agricultural- based community, however, the continuing dynamic outward growth of the San Francisco Bay Area has pushed industrial, warehousing, and logistics growth into the Northern San Joaquin Valley. This has benefited Lathrop due to its strategic location at the intersection of three major freeways. The City continues to experience a period of growth with consistently strong demand in residential construction to accommodate continuing job growth in the Northern San Joaquin Valley and in the neighboring Tri Valley Area of the East Bay. Permit issuance remained strong in FY 2020/21 with building permits continuing to increase year over year. Revenues, such as property tax, development related fees, community facility district revenues and sales tax are all positively impacted from increased development activity either directly from fees received or indirectly due to increased population.
The City has recently begun to enjoy a strong economic base from years of smart growth and planning initiatives resulting in stable property tax revenue, modest transient occupancy taxes and diverse sales tax revenues. The City' s sales tax revenues remain stable and, over the past several years, have continued to experience annual increases. The City' s sales tax revenues are expected to show modest annual increases as population and consumer activity continue to rise and businesses continue to view Lathrop as an attractive location.
Like all government agencies throughout California, the City is faced with increased ongoing annual operating costs and rising retirement related liabilities. For Lathrop, some of these challenges include increased funding needs for pavement maintenance, facility and park maintenance, new programs and departments, additional personnel, retiree health care costs, and rising pension costs due to new funding policies adopted by the California Public Employees Retirement System( CaIPERS). While the City has been successful over the years in balancing these issues with its strategic use of contract staffing and services, the City will continue to experience rising costs. Additionally, with the anticipation of significant impacts to revenues in the coming year, coupled with ongoing growth in expenditures over the next five years, the City will be challenged.
Sales tax growth in Lathrop was moored to commercial development throughout 2021 and is expected to grow slowly into 2022. This above average growth is the sign of recovery occurring as we emerge out of the early days of the pandemic. The City is currently navigating a situation that has not been encountered in recent history. The ability to budget conservatively has paid dividends with the uncertainty that has come with the COVID- 19 pandemic. This creates challenges but we remain vigilantly optimistic about Lathrop' s long- term outlook. The City' s future looks bright; with the creation of the City' s own Police Department opening in July of 2022.
City Council and Staff have been working diligently for the past decade or so, on achieving financial stability and are confident that today is the ideal time for Lathrop to transition to a City Police Department. A City Police Department will provide the community with more officers, personalized services, and predictable costs.
BALANCED BUDGET
The City' s Budget and Fiscal Policy requires the City to maintain a balanced General Fund budget over the annual period of the financial plan. This means that each fiscal year, current revenues must meet or exceed operating expenditures, including debt service. Use of fund balance commitments to offset non- operating expenditures may allow for current expenditures to exceed current revenues in the fiscal year. City staff presents General Fund budgets for City Council consideration that maintain an unassigned fund balance between 10- 50% of the annual operating appropriations and transfers. Lathrop maintains adequate fund balances for emergencies in a majority of its governmental operations funds and proprietary funds. viii
42 The adopted budget serves as the foundation for the City of Lathrop' s financial planning and control system. All departments of the City submit requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, department, program, and line- item.
The Council periodically reviews the City' s actual financial activity in relation to the original budget, and as necessary, adjustments are made to ensure that expenditures are not outpacing anticipated revenues. The level of budgetary control( the level at which expenditures cannot legally exceed the appropriated amount) is at the fund and department level with more stringent control over capital assets and fund balance categories, which are maintained at the line item level. The City Council must approve amendments or transfers of appropriations between funds or departments as well as items related to capitai assets or fund balances. The City Council has delegated authority to the City Manager to approve transfers of appropriations between programs and divisions within a City department and between appropriation units ( e. g., salaries and benefits, services and supplies, and capital outlay) within programs, excluding special designation or project appropriations.
LONG- TERM FINANCIAL PLANNING
The City incorporates long- term financial planning into its budget process in several ways. Each year, during the budget process the City Council receives an updated General Fund Ten- Year Forecast and CIP Five- Year Forecast that includes all special revenue funds associated with each project. The long-term financial model used for the General Fund and CIP looks forward ten years, because of the volatile nature of tax revenues in a commercial growth- based economy, and various one- time special revenue funds associated with development activity making it difficult to predict revenues with any certainty beyond the immediate term. The forecast is used as a tool and maintained by Finance staff.
These projections allow management to see what the future could look like given a set of assumptions and is evaluated in the context of whether decisions are sustainable over the long term. The ten- year financial forecast is a tool for strategic decision making and presents further context for balancing short- term and long- term goals and provides an " order of magnitude" feel for the General Fund' s ability to continue services and preserve fiscal sustainability. Management encourages its departments to project their resource needs for a period longer than the traditional annual budget. In addition, the City faces increasing expenses in several areas of operations, including the creation of the Police Department. The City has elected to proactively address its unfunded OPEB obligation by establishing an irrevocable trust and significantly increasing its contributions. At the same time, rising pension contribution requirements, while helping to reduce the unfunded pension liability, result in a decrease of financial resources available for other uses. The City will need to continue to explore options to increase its revenue base, while keeping expenses manageable.
COVID- 19 will have a lasting impact over the course of several years, possibly beyond the scale of the Great Recession. The significant revenue impacts to sales tax and TOT will likely continue through FY 2021/ 22 with gradual recovery, and full recovery back to FY 2018/ 19 revenue levels not anticipated until FY 2024/ 25. Property tax revenue has not been affected yet as the assessed values do not show the impact of economic volatility in a short period. Moreover, low interest rates and a short supply of homes available for sale has kept the local real estate market strong and robust. Vulnerable to an economic downturn are sales tax, TOT and development- related revenues. Over time, these revenue sources will continue to cause significant year-to-year variances and create challenges for long- term revenue forecasting.
Lastly, on November 6, 2012, the Citizens of Lathrop approved Measure C by 77%. Measure C is a general purpose 1% additional sales tax Measure to be used for the purpose of maintaining and enhancing essential City services, such as police and fire protection and youth and senior services within the City. During FY 2020/21, Measure C supported personnel and operating expenditures to manage the Lathrop Generations Center, a multipurpose facility aimed to promote healthy recreational opportunities for our youth. Furthermore, Measure C funded additional Lathrop Police personnel to strengthen prevention and intervention services around the community.
ix
43 The Government Finance Officers Association of the United States and Canada ( GFOA) has awarded the Certificate of Achievement for Excellence in Financial Reporting to City of Lathrop for its annual comprehensive financial report( ACFR) for the fiscal year ended June 30, 2020. The ACFR has been judged by an impartial panel to meet the uppermost standards of the program, which includes demonstrating a constructive " spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the ACFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. This was the 24th consecutive year that the City of Lathrop has received this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program' s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
The preparation of the Annual Comprehensive Financial Report was made possible by the special efforts of the entire staff of the Finance Department, working in conjunction with the City' s independent auditors and departmental staff. We would like to express our appreciation to the Mayor and City Councilmembers for their continued efforts in stewarding the financial operations of the City in a responsibie and enterprising manner.
Respectfully submitted,
Stephen J. Salvatore Cari Ja s
City Manager Director of Finance
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45 DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Sonny Dhaliwal, Mayor
JenniferTorres- 0' Callaghan, Council Member
Paul Akinjo, Council Member
Minnie Diallo, Council Member
Diane Lazard, Council Member
ADVISORY BODIES
Lathrop/ Manteca Fire District
Measure C Oversight Committee
Parks and Recreation Commission
Planning Commission
Senior Advisory Commission
Youth Advisory Commission
APPOINTED OFFICIALS AND DEPARTMENT/ DIVISION HEADS
City Manager/ Treasurer Stephen J. Salvatore
City Attorney Salvador Navarrete
Assistant City Manager Michael King
City Engineer Glenn Gebhardt
Director of Government Services/ City Clerk Teresa Vargas Director of Finance Cari James
Human Resources Director Theresa Roland
Parks, Recreation & Maintenance Services Director Todd Sebastian Chief of Police Raymond Bechler
Director of Community Development Mark Meissner
xii
46 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lathrop
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
P- 7.,: t
Executive Director/ CEO
xiii
47 INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of City of Lathrop, California, the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City' s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America ( GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor' s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generafly accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City' s ability to continue as a going concern for twelve months beyond the date of the financial statements.
PrimeGlobal
48 L L is
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Auditor' s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor' s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City' s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City' s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control- related matters that we identified during the audit.
Other Reporting Responsibilities
Required Supp/ ementary Information
Accounting principles generally accepted in the United States of America require that the management' s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, the schedule of proportionate share of the net pension liability, the schedule of plan contributions, the schedule of changes in the net OPEB liability and related ratios, and the schedule of OPEB plan contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally 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 managemenYs 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. 2 49
LSL::
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City' s basic financial statements. The combining and individual fund financial statements, and budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules 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. The 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 fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor' s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2022, on our consideration of the City' s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City' s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City' s internal control over financial reporting and compliance.
Sacramento, California
June 24, 2022
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rS",' .; City of Lathrop
Department oFFinar ce
390 Towne Centre Drive
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209- 9- I- 73Z0
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June 24, 2022
MANAGEMENT' S DISCUSSION AND ANALYSIS
As management of the City of Lathrop, we offer readers of the City of Lathrop' s ( City) financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021.
Please read the information presented in conjunction with additional information that we have furnished in our letter of transmittal, beginning on page vi, and the financial statements and disclosure notes beginning on page 41.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2021 by $ 577. 4 million ( net position). Of this amount, $ 95. 9 million unrestricted net position) may be used to meet the City' s ongoing obligations to residents and creditors.
During the fiscal year, the City' s governmental activities revenues exceeded expenses by$ 47. 4 million due in large part to$ 18. 2 million in sales and use taxes collected in the Fiscal Year.
The total revenue from all sources increased $ 10. 7 million from the prior year due to the recovering impacts associated with the coronavirus restrictions at the State and Federal level.
The General Fund reported excess revenues over expenditures ( including transfers) of $. 4 million, thereby increasing the fund balance.
Sales and use tax collections increased by $ 8. 4 million, a 47. 9 percent increase from the prior year.
At June 30, 2021, the City' s governmental funds reported combined ending fund balances of 142. 8 million, an increase of$ 37. 0 million in comparison with June 30, 2020. Of this $ 142. 8 million total amount, $ 5. 9 million or 4. 1 percent is unassigned fund balance.
At June 30, 2021, the unassigned fund balance for the General Fund was $ 6. 7 million, compared to last year's unassigned actual fund balance of$ 4. 3 million. The increase is due to general fund revenues recovering from the coronavirus pandemic.
OVERVIEW OF THE FINANCIAL STATEMENTS
This ManagemenYs Discussion and Analysis is intended to serve as an introduction to the financial statements of the City. This comprehensive annual financial report is comprised of five parts: ( 1) this management' s discussion and analysis( Pages 5- 17), ( 2) the basic financial statements and notes to the financial statements Pages 21 - 72), ( 3) statements of revenue, expenditures and changes in fund balance- budget to actual of major governmental funds ( Pages 80 - 86), and postemployment benefits other than pensions trend information Note 9, Pages 74— 79), ( 4) other combining statements for non- major governmental funds and agency funds Pages 100- 157) and ( 5) the statistical section ( Pages 160- 191).
The basic financial statements include two different views of the City's financial position. The government-wide financial statements provide both long-term and short-term information about the City' s overall financial status.
The City' s government-wide basic financial statements are described below with information in the accompanying text:
Statement of Net Position— a statement that combines the financial position as of June 30, 2021 for all activities on a government- wide basis.
Statement of Activities — a statement that combines the changes in financial position for the fiscal year ended June 30, 2021 on a government- wide basis.
5 52
Fund financial statements focus on individual parts of the City government, reporting the City' s operations in more detail than the government- wide statements.
Statements for Governmental Funds — these present the major governmental funds such as the general fund, developers projects special revenue fund, capital facilities fee special revenue fund, building and safety special revenue fund, development engineering special revenue fund, and all other governmental funds.
Statements for Business- type Funds— these present proprietary funds, such as the City' s water and sewer utility enterprise funds.
The fund financial statements are described below with information in the accompanying text:
Governmental funds statements tell how general government services, such as police and public works, were financed in the short- term, as well as what remains for future spending.
Proprietary funds statements offer short and long-term financial information about the activities the City operates like businesses, such as the water and sewer utilities.
Fiduciary funds statements are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government- wide financial statements because the resources of those funds are not available to support the City' s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The financial statements also include notes that explain the information in the financial statements and provide more detailed data. In addition to the required elements, combining statements are presented that provide details about the City's non- major governmental funds and agency funds, each of which are presented in consolidated columns in the basic financial statements.
Government- wide financial statements
The government- wide financial statements are designed to provide readers with a broad overview of the City' s finances using accounting methods similar to a private- sector business.
The statement of net position presents information on all the City' s assets, liabilities, and deferred outflows/ inflows on resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the governmenYs net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused compensated absences).
Both of these government- wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business- type activities). The governmental activities of the City include general government, community development, public safety, public works, culture and leisure, and debt service. The business- type activities of the City include the City' s water and sewer utility enterprise functions.
The government-wide financial statements include the operations of the City itself and the blended component unit of the Lathrop Public Facilities Financing Corporation. There are no discrete or component units. The government- wide financial statements can be found on Pages 21 — 23 of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives, or as required by legal enabling legislation. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
6 53
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government- wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end ot the fiscal year.
Such information may be useful in evaluating a governmenYs near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government- wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the governmenYs near-term financing decisions. Both the governmental fund balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmentwide activities.
The City maintained 42 individual governmental funds in 2021. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in funds balances for the general fund, developers projects special revenue fund, capital facilities fee special revenue fund, building and safety special revenue fund, development engineering special revenue fund, all of which are designated as major funds. Data from the remaining 37 non- major governmental funds are shown as other supplementary information.
The City adopts an annual appropriated budget for all of its funds. A budgetary comparison compliance schedule is provided for each of the major funds and a like schedule is provided for the non- major governmental funds shown as other supplementary information.
The governmental fund financial statements are found on Pages 26 - 33 of this report.
Proprietary funds. Proprietary funds provide the same type of information as the government-wide business- type activity financial statements, only in more detail, and are used to account for services for which customer fees are intended to finance the costs of operations. There are two types of proprietary funds — internal service funds and enterprise funds. Internal service funds account for services rendered between City departments. Enterprise funds are used to report the same functions presented as business- type activities in the government- wide financiai statements. The City has one internal service fund in its fund structure, which is used to quantify compensated absences activities between departments. The City uses enterprise funds to account for its water and sewer utility functions. These two major funds' financial statements are shown individually in the front of this report.
The basic proprietary fund financial statements can be found on Pages 34— 36 of this report.
Fiduciary funds. Fiduciary or agency funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government- wide financial statements because the resources of those funds are not available to support the City' s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has 12 fiduciary funds. The fiduciary fund financial statements can be found on Page 38— 39 of this report.
Notes to the financial statements
The notes provide additional information that are essential to a full understanding of the data provided in the government- wide, governmental, proprietary, and fiduciary fund financial statements. The notes to the financial statements are found on Pages 41 - 72 of this report.
Required and other information
Additional information is inc uded that provides both more detail, and complements the financial data provided in the previous financial statements. The combining statements, referred to earlier in connection with non- major governmental funds, are presented immediately following the required supplementary information. Combining and individual fund statements on the City' s 37 non- major governmental funds and 12 fiduciary funds are not a required part of the basic financial statements and are presented as other supplementary information. Original and final adopted budgets compared to actual financial information for each fund is included in this section.
Combining and individual fund statements and schedules can be found on Pages 92 - 157 of this report. 7 54
GOVERNMENT- WIDE F/NANCIAL ANALYSIS
Summary of Net Position
As noted earlier, net position may serve as a useful indicator of a government' s financial position since it represents the difference between the City' s resources and its obligations. In the case of the City, assets exceeded liabilities by$ 577 million at the close of Fiscal Year 2020/ 21.
Compared to the previous year, the City's total net position increased by 12. 2 percent. This increase is primarily due to developer contributions of capital assets that took place in Fiscal Year 2020/ 21.
By far the largest portion of this year's net position reflects the City' s investment in capital assets of$ 375 million e.g., utility system construction, utility plant improvements, water rights acquisition, land acquisition, building improvements, equipment, vehicles, roads and streets) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City' s net investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Additional capital asset information can be found in the Capital Asset and Debt Administration section of this report.
A portion of the City' s total net position represent resources that are subject to external and internal restrictions Municipal Code and/ or State mandates and reserves required by debt obligation covenants) on how they may be used. Restricted net position amount to $ 105 million or 18. 3 percent of total net position. The remaining balance of$ 95. 9 million ( 16. 6 percent of total net position) is unrestricted and may be used to meet the City' s ongoing obligations to residents and creditors.
The table below shows the government- wide assets, liabilities, deferred outflows/ inflows of resources and net position for both fiscal years ended June 30, 2020 and 2021. 8 55
City of Lathrop Summary of Net Position
For the Fiscal Years Ended June 30
in Thousands)
Governmental Business- Type Total Primary Total
Activities Activities Government Percent
2020 2021 2020 2021 2020 2021
Change
Assets:
Capital assets 209,561 $ 221, 944 $ 180, 233 $ 184, 986 $ 389, 794 $ 406, 930 4. 40% Otherassets 125, 064 163, 284 49, 248 58, 165 174, 312 221, 449 27. 04% Total Assets 334, 625 385, 228 229, 481 243, 151 564, 106 628, 379 11. 39% Deferred Outflows
Deferred Outflows Related
2 564 2, 310 212 288 2,776 2,598 - 6. 41%
to Pension& OPEB
Liabilities:
Current liabilities 15, 726 18, 929 3, 717 3, 097 19,443 22, 026 13. 28% Long- term liabilities 11, 244 11, 657 20,408 19, 139 31, 652 30, 796 - 2. 70°/o Total Liabilities 26, 970 30, 586 24, 125 22, 236 51, 095 52, 822 3. 38% Deferred Inflows
Deferred Inflows Related
to Pension& OPEB
989 630 62 86 1, 051 716 - 31. 87%
Net Position:
Net Investment
in Capital Assets 206, 211 218, 894 160, 481 166, 718 366, 692 385, 612 5. 16°/o Restricted 16, 013 103, 965 1, 652 1, 651 17, 665 105, 616 497. 88% Unrestricted 87, 006 33, 463 43, 373 52, 748 130, 379 86, 211 - 33. 88% Total Net Position 309, 230 $ 356, 322 $ 205, 506 $ 221, 117 $ 514, 736 $ 577, 439 12. 18% At the end of the fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business- type activities. Combined net position of the primary government increased by 12. 18 percent this year, from $ 514. 7 million at June 30, 2020 to$ 577. 4 million at June 30, 2021.
Although the net position of the City' s business- type activities are $ 221. 1 million, the City generally can only use net position to finance the continuing operations of the business- type activities.
Chanpes in net position
The City' s total program expenses of $ 62. 7 million are less than the total revenues of $ 127. 5 million for an increase in net position as of June 30, 2021 of$ 64. 7 million. The table on the next page shows the summarized revenues and expenses for both fiscal years 2019/ 20 and 2020/ 21.
The City' s fiscal year 2020/ 21 change in net position was 3. 4 percent higher than fiscal year 2019/ 20, due to an increase of 9. 1 percent in total revenues and an increase of 15. 2 percent in total expenditures in fiscal year 2020/ 21. The expenditure increase is largely found in the governmental activities, which is a result of capital projects in the area.
Governmental program activities and general revenues of $ 95. 5 million and transfers in of $ 1. 8 million, supported expenses of $ 48. 1 million, for a total net increase in net position in tax- supported activities of 49 million. The reason for the increase in the governmental net position is due to an increase in one- time capital contributions from development activity.
9 56
Business- type activities revenues of $ 31. 9 million supported expenses of $ 14. 7 million and transfers out of
1. 7 million, for a total change in net position in utility enterprise activities of$ 15. 5 million. The reason for the increase in the business- type net position is due to the continued growth of the City' s customer base paired with developer contributions of capital assets. The increase of net position of$ 15. 5 million is available for future water and sewer improvement needs as required by projected City population increases and development needs.
City of Lathrop Changes in Net Position
For the Fiscal Years Ended June 30
in ThousandsJ
Governmental Business- Type Total Primary Total
Activities Activities Government Percent
Change
2020 2021 2020 2021 2020 2021
Revenues:
Program revenues:
Charges for services 8, 236 $ 14, 791 $ 18,986 $ 19, 016 $ 27, 222 $ 33,807 24. 19°/o Operating grants and contributions 6, 106 2, 710 6, 106 2, 710 - 55. 62°/o Capital grants and contributions 43, 292 16, 740 11, 692 6, 863 54,984 23,603 - 57. 07% General revenues:
Sales and use taxes 12, 696 18, 190 12, 696 18, 190 43. 27% Propertyta s 5, 334 8, 613 5, 334 8, 613 61. 47%
Franchise taxes 1, 241 1, 531 4, 910 5, 692 6, 151 7, 223 17. 43% Transientoccupancytaxes 583 739 583 739 26. 76%
Other ta s 30,621 30, 621
Nbtor Vehicle in lieu 0. 00%
Othermiscellaneous 184 945 184 945 413. 59%
Unrestricted im,estmentearnings 2, 786 701 741 364 3, 527 1, 065 - 69. 80% Total Revenues 80, 458 95,581 36, 329 31, 935 116, 787 127, 516 9. 19% 6cpenses:
Governmental activities:
General go ernment 5, 944 6,544 5, 944 6, 544 10.09%
Communitydevelopment 1, 318 8,228 1, 318 8, 228 524. 28% Publicsafety 12, 121 11, 729 12, 121 11, 729 - 3. 23%
Publicworks 19, 196 19,893 19, 196 19,893 3. 63%
Cultureandleisure 1, 468 1, 466 1, 468 1, 466 - 0. 14%
Interest on long- term debt 89 241 89 241 170.79%
Business- type activities:
Water enterprise 6, 906 6, 767 6, 906 6, 767 - 2. 01%
Sewerenterprise 7, 477 7, 926 7, 477 7, 926 6. 01%
Total expenses 40, 136 48, 101 14, 383 14, 693 54, 519 62, 794 15. 18% Excess before transfers 40, 322 47, 480 21, 946 17, 242 62, 268 64, 722 3. 94% Transfers 3, 255 1, 778 ( 3, 255) ( 1, 778)
Change in Net Position 43, 577 49, 258 18, 691 15, 464 62,268 64,722 3. 94% Net Position- Beginning 265, 700 309, 230 186, 815 205, 506 452, 515 514, 736 13. 75% Prior Period Adjustment 47) ( 2, 166) 147 47) ( 2, 019) - Net Position, Beginning, Restated 265, 653 307,064 186, 815 205, 653 452, 468 512, 717 13. 32% Net Position- Ending 309, 230 $ 356, 322 $ 205, 506 $ 221, 117 $ 514, 736 $ 577, 439 12. 18% 10 57
Governmental Activities
Following are illustrative summaries of governmental activities separating program revenues and expenses.
The difference between the program revenue and expense bars by activity illustrates the amount the respective activity is supported by general revenues ( e. g. taxes or investment earnings). 2021 EXPENSE AND PROGRAM REVENUES -
GOVERNMENTAL ACTIVITIES
P ogram Revenues Expenses
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Normally, governmental funds' expenditures match or exceed program revenues. Under full accrual accounting, developer contributions are program revenues, yet their contributed assets are not shown as a corresponding expense on the City' s financial statements. Program revenues for public works excluding infrastructure contributions resulted in expenditures in excess of revenues. General government services delivery costs exceeded program revenues by$ 1. 3 million.
2021 REVENUES BY SOURCE- GOVERNMENTAL ACTIVITIES
C'apital grants and Propertytaxes
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1% Mator Vehitle in lieu
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11 58
Revenues and expenditures in the governmental funds continue to increase as the population of Lathrop has grown. Property tax revenue is a major revenue source for the General Fund. During fiscal year 2020/ 21, property tax revenues increased by$ 3. 2 million.
The following table shows the cost of the City' s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City' s taxpayers by each of the programs. The cost of all governmental activities this year was $ 48. 1 million. The net cost of all services indicates that the overall cost of government is less than revenue generated to support it. However, the higher revenue reflected in FY2020/ 21 is due to the contributions from developer built capital improvement projects.
City of Lathrop Net Cost of Governmental Activities
For the Fiscal Years Ended June 30
in Thousands)
Total Cost of Services Net( Expense) Revenue of Services 2020 2021 Percent 2020 2021 Percent
Change Change
Generalgo, ernment 5, 944 $ 6, 545 10. 11% $ ( 5, 476) $ 1, 320 - 124. 11% Communitydevelopment 1, 318 8,228 524. 28% 5, 254 4, 167) - 179. 31% Publicsafety 12, 121 11, 730 - 3. 23°/o 11, 031) ( 11, 282) 2. 28% Publicworks 19, 196 19, 893 3. 63°/a 29, 981 1, 850 - 93. 83% Culture and leisure 1, 468 1, 466 - 0. 14% 1, 142) ( 1, 342) 17. 51% Other 89 241 170. 79% 89) 241) 170. 79%
Total 40, 136 $ 48, 103 19. 85°/ a $ 17, 497 $ ( 13, 862) - 179. 23% Business- type Activities
Business- type activities increased the City' s net position by $ 15. 5 million. The bar chart below illustrates how total program revenues and expenses compare and includes both current operating and capital categories combined. The pie chart shows the distribution of business-type revenues by category. 2021 EXPENSES& PROGRAM REVENUES 2021 REVENUES BY SOURCEBUSINES5- TYPEACTIVITIES ia rt°p x gU51NE5S- TYPEACTIVITIES tlRh p, anRti. ninic • ExFv me
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Water Fund
The Water Utility Enterprise treats and distributes clean drinking water to Lathrop' s residential and commercial customers and performs repair and maintenance functions of existing water lines, as well as builds additional water distribution systems through its capital improvement master plan. 12 59
The bar chart above illustrates program revenues exceeding program expenses by $ 3. 4 million. In the Water Utility Enterprise Fund, a monthly service availability fee and usage rate is charged to residential and commercial customers to meet the Water Fund' s operating expenses. Under full accrual accounting, developer contributions are program revenues, yet contributed assets are not shown as a corresponding expense.
Program revenues excluding developer contributions and bond proceeds were $ 10. 2 million. This shows operating revenues exceeding operating expenses by$ 3.4 million. In February 2016, the City adopted a 5- Year water rate program based on the Water Rate Study findings.
Sewer Fund
The Sewer Utility Enterprise collects and treats sewer for Lathrop' s residential and commercial customers and performs repair and maintenance functions of existing sewer mains, as well as builds additional system capital improvements. In the Sewer Utility Enterprise Fund, a monthly service fee is charged to residential and commercial customers. The bar chart on the previous page illustrates program expenditures exceeding program revenues by$. 9 million. This signifies that sewer operating income is meeting standard operating and infrastructure renewal and replacement costs. In February 2016, the City adopted a 5- Year sewer rate program based on the Sewer Rate Study findings.
F/NANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmenta/ funds
The focus of the City' s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the City' s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government' s net resources available for spending at the end of the fiscal year.
As of June 30, 2021, the City' s governmental funds ( general, special revenue, and capital project funds) reported combined ending fund balances of$ 142. 8 million, an increase of$ 37. 0 million in comparison with the prior fiscal year. Approximately 4. 1 percent of this total amount ($ 5. 9 million) constitutes unassigned fund balance, which is available for spending, at the City' s governing body' s discretion. Of the remainder fund balance, $ 3. 3 million is nonspendable, $ 104. 0 million is restricted and $ 29. 6 million is committed and is not available for new spending.
The General Fund is the chief operating fund of the City. At the end of the 2021 fiscal year, fund balance of the general fund was$ 43. 9 million, of which $ 6. 7 million is unassigned fund balance. The increase in unassigned fund balance of the General Fund for Fiscal Year 2020/21 was due to increase sales and property taxes collected due to the economic recovery from Fiscal Year 2019/ 20. As a measure of the General Fund' s liquidity, it may be useful to compare fund balance to total fund expenditures. Total general fund balance represents 205 percent of total General Fund expenditures of $ 19. 4 million in 2021. This means the City's general governmental operations could continue for about 25- months without any additional revenue generation.
In Fiscal Year 2020/21, taxes are the General Fund' s largest source of revenue at 86. 1 percent, or$ 26. 1 million, of total revenues of$ 30. 3 million. Property taxes represent 32 percent, or$ 8. 6 million, of this total tax amount in the General Fund.
The Developer Projects fund had an ending fund balance of$ 1. 0 million at June 30, 2021. The monies in this fund are collected from developers for specific projects. The committed fund balance can only be used to fund specific developer projects in future fiscal years.
The Capital Facilities Fees fund had an ending fund balance of$ 41. 5 million as of June 30, 2021. The monies in this fund are collected from developers for specific projects. The committed fund balance can only be used to fund specific developer projects in future fiscal years. 13 60
The Building Safety and Inspection and Development Engineering funds had a combined ending fund balance of$ 4. 2 million as of June 30, 2021. The monies in these fund are collected from cost recovery fee sources for specific projects and operations associated with the fee nexus. The committed fund balance can only be used to fund specific projects in future fiscal years.
Proprietary funds
The City proprietary funds provide similar information to that which is found in the government- wide financial statements, but in more detail. Each fund' s financial transactions, both near- term and historic, are provided in the statement of net position and the statement of revenues, expenses, and changes in net position. In addition, these proprietary funds also present a statement of cash flows.
In Fiscal Year 2020/ 21, the water utility enterprise fund increased its net position from $ 69. 4 million to
79. 9 million. Unrestricted net position at the end of the fiscal year amounted to$ 32. 6 million, and are available for future capital water system improvements. $ 45. 6 million of the Water Fund' s net position are net investment in capital assets and are not available for liquidation to support operations. The remaining $ 1. 7 million is restricted to satisfy debt service obligations and covenants.
In Fiscal Year 2020/ 21, the sewer utility fund increased its net position from $ 136. 2 million to $ 141. 2 million.
Unrestricted net position at the end of the fiscal year amounted to $ 20. 1 million and, are available for future capital sewer system improvements. $ 121, 093 million of the Sewer Fund' s net position are net investment in capital asset and are not available for liquidation to support operations.
Other factors concerning the finances of these funds have already been reviewed in the discussion of the City' s business-type activities. The capital assets section on the following pages will provide additional discussion and analysis of the business- type financial activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During Fiscal Year 2020/ 21, the General Fund' s original budgeted expenditures of$ 18. 5 million increased to
21. 7 million at Final Amended Budget. Original adopted revenue estimates were $ 22. 2 million. The table below illustrates the General Fund' s original and final budget levels by function of government categories e. g. Public Works, Community Development, Culture and Leisure) and the total budget levels for Fiscal Year 2020/ 21.
GENERAL FUND FISCAL YEAR 2020/ 21 ORIGINAL AND FINAL BUDGETS
BY GOVERNMENTAL FUNCTION CATEGORY
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14 61
Over the course of the year, the City Council revised the City budget with adjustments that are comprised within the following two categories:
Changes made in the mid- year report to adjust revenues, augment current year expenditure appropriations, and establish or increase designation of fund balance.
Other revenue adjustments and expenditure appropriations approved after the original budget is adopted, and before or after the mid- year report is approved.
Amendments to the General Fund increased budgeted expenditures by $ 3. 2 million and are primarily a result of increased costs to carry out operations for public purposes and the purchase of replacement fleet vehicles.
Budgeted General Fund revenues were increased by $ 1. 1 million to reflect revenues collected through increases in Measure C, Property and Sales Taxes.
After taking these adjustments into account, actual expenditures came in 23 percent below the final budget, at
16. 8 million. Capital Outlay expenditure savings contributed to this reduced spending level. Actual revenues in the General Fund were $ 8. 4 million higher than the final budget revenue estimate. The result of the higher revenues and significantly lower spending increased the ending fund balance of the General Fund.
The City' s General Fund revenue structure slightly changed compared to Fiscal Year 2019/ 20. The two pie charts below present total actual revenues for Fiscal Years 2019/ 20 and 2020/ 21 by revenue category. Total actual taxes comprised 76 percent of total General Fund revenues in Fiscal Year 2019/ 20 and 86 percent in Fiscal Year 2020/ 21.
FISCAL YEAR 2019120 GENERAL FUND REVENUE FISCAL YEAR 2020/ 21 GENERAL FUND REVENUE Uu ot MonnY R Charg s ur 5ervicws Use of Money&
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CAPITAL ASSET AND DEBT ADM/ NISTRATION
Capital Assets
At the end of Fiscal Year 2020/ 21, the City had $ 406. 9 million ( net of accumulated depreciation) invested in a broad range of capital assets, including equipment, vehicles, buildings, parks, streets, water and sewer transmission and distribution systems. This amount represents a net increase ( including additions and deductions) of$ 17. 1 million, or a 4. 4 percent increase, over Fiscal Year 2019/ 20. 15 62
The table below outlines net capital assets by asset-type classification and by governmental or business-type activity.
City of Lathrop Capital Assets
For Fiscal Years Ended June 30
net of depreciation)
in Thousands)
Governmental Business- Type
Tota I
Activities Activities
2020 2021 2020 2021 2020 2021
Capital Assets Not Being Depreciated
Land 9, 630 $ 9, 630 $ 3, 565 $ 3, 565 $ 13, 195 $ 13, 195 Construction in progress 15, 944 19, 874 3, 360 6, 190 19, 304 26, 064 Depreciable Capital Assets
Buildings 8, 182 7, 956 0 0 8, 182 7, 956
Improvements 46, 905 50, 383 172, 674 174, 658 219, 579 225, 041 Equipmentand vehicles 1, 846 1, 486 634 575 2480 2, 061 Infrastructure 127, 056 132, 616 127, 056 132, 616
Total 209, 563 $ 221, 945 $ 180, 233 $ 184, 988 $ 389, 796 $ 406, 933 This year' s major capital additions included:
Infrastructure 9, 211, 642
Water and Sewer Systems Improvements 6, 702, 980
Equipment& Vehicles 556, 620
More detailed information about the City's capital assets is presented in Note 4 to the financial statements on Pages 56- 57.
Debt Administration
At the end of the current fiscal year, the City had a total of $ 21. 3 million in outstanding debt. The total outstanding at June 30, 20 was $ 23. 1 million. Overall in Fiscal Year 2019/ 20, the City' s outstanding debt was reduced by$ 1. 8 million.
City of Lathrop Outstanding Debt
For Fiscal Years Ended June 30
in Thousands)
Governmental Business- Type
Activities Activities
Total
2020 2021 2020 2021 2020 2021
Revenue Bonds - Water $
2017 Bank Loan 9, 550 8, 874 9, 550 8, 874
State Revolving Fund Loan 6,456 6, 010 6, 456 6, 010
Compass Bank Loan 3, 745 3, 384 3, 745 3, 384
Capital Lease- City Hall 3, 350 3, 050 3, 350 3, 050
Total 3, 350 $ 3, 050 $ 19, 751 $ 18, 268 $ 23, 101 $ 21, 318 The City continues to maintain its credit ratings on all of its rated debt. Note 6 to the financial statements presents more detail about the debt position of the City on Pages 58- 60. 16 63
ECONOMIC FACTORS AND NEXT YEAR' S BUDGETS AND RATES
The City Council considered many factors when setting the Fiscal Year 2020/ 21 budget. The City primarily relies on property tax and sales tax revenues to provide services and amenities to the community. Lathrop' s population has experienced significant growth. Just last year, the City experienced a 6. 3 percent increase in its population making it one of the fastest growing cities in California. While higher population is an exciting sign of growth, the City also recognizes some of the challenges such growth brings in the planning and management of serving our new residents. With City Council' s guidance, the City has built strong financial reserves to draw from in unknown times, we have been able to maintain our sound financial position.
In March of 2021, the City Council approved moving forward to establish a new City of Lathrop Police Department. This important decision has not been made quickly; in fact, years of financial analysis have indicated the City can save money and provide more staff in police services tailored to meet the needs of the community. The City Council' s decision reflects a commitment to take action when it is in the long- term interest of our citizens.
Over the past decade, the City Council and City staff have focused on ensuring a sustainable economic future for the City of Lathrop supporting steady growth projections for the future. The City has a goal to provide an environment for strong industrial, commercial and residential growth that has resulted in a solid financial foundation. The California State Auditor Office, in its most recent report, has ranked Lathrop in the top 3% of fiscally sound cities, out of 471 cities throughout California. This has been possible because of stability in City Hall staffing, with a skilled and committed City staff team. These factors have positioned the City to be able to stand up a new Police Department to provide services that continue to meet the needs of residents, businesses, schools, community groups and visitors in Lathrop in a cost- effective manner.
Building permit issuance by the City for new residential and commercial development is the key driver used to estimate various revenue streams. These revenues are deposited into various funds. Examples of these revenues include: sales and use taxes on construction materials and equipment; capital facility fees charged to mitigate the impact of new development- driving a need for more parks and street capital investments; system development charges( investment/tap fees) assessed to finance future capital investment for water, sewer, and storm drainage systems.
As mentioned above, the level of single-family dwelling unit building permits issued, measured at 879 in Fiscal Year 2020/ 21, this level exceeds the 334 issued years earlier in Fiscal Year 2006/ 07 during the height of the previous housing boom.
These major economic indicators were all considered when adopting the General Fund budget for Fiscal Year 2020/ 21.
CONTACTING THE CITY F/NANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, investors and creditors with a general overview of the City' s finances and to show the City' s accountability and transparency for the money it receives. If you have questions about this report or need additional financial information, contact the City of Lathrop- Finance Department, 390 Towne Centre Drive, Lathrop, California 95330, ( 209) 941- 7320. 17 64
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18 65
STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The purpose of the Statement of Net Position and the Statement of Activities is to summarize the entire City' s financial activities and financial position.
The Statement of Net Position reports the difference between the City' s total assets and deferred outflows and the City' s total liabilities and deferred inflows, including all the City' s capital assets and all its long- term debt. The Statement of Net Position focuses the reader on the composition of the City' s net position, by subtracting total liabilities and deferred inflows from total assets and deferred outflows and summarizes the financial position of all the City' s Governmental Activities in a single column, and the financial position of all the City's Business-Type Activities in a single column; these columns are followed by a Total column that presents the financial position of the entire City.
The City' s Governmental Activities include the activities of its General Fund, along with all its Special Revenue and Capital Projects Funds. Since the City' s Internal Service Fund services these Funds, their activities are consolidated with Governmental Activities, after eliminating interFund transactions and balances. The City' s Business-Type Activities include all its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the City' s Net Position. It is also prepared on the full accrual basis, which means it includes all the City' s revenues and all its expenses, regardless of when cash changes hands. This differs from the modified accrual basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the City's expenses first, listed by program, and follows these with the expenses of its business- type activities. Program revenues— that is, revenues which are generated directly by these programs— are then deducted from program expenses to arrive at the net expense of each governmental and business- type program. The City' s general revenues are then listed in the Governmental Activities or Business- type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the Lathrop Public Facilities Financing Corporation ( Corporation). The Corporation is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of these entities. 19 66
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20 67
CIN OF LATHROP
STATEMENT OF NET POSITION
JUNE 30, 2021
Primary Government
Governmental Business- Type
Activities Activities Total
Assets:
Cash and investments 152, 148, 446 $ 55, 882, 198 $ 208, 030, 644 Receivables:
Accounts( net of allowance for uncollectibles) 7, 789, 523 3, 554, 804 11, 344, 327 Notes and loans 20, 350 20, 350
Accrued interest 43, 372 15, 863 59, 235
Internal balances 2, 938, 423 2, 938, 423)
Prepaid costs 343, 888 343, 888
Restricted assets:
Cash with fiscal agent 1, 650, 458 1, 650, 458
Capital assets not being depreciated 29, 503, 693 9, 754, 370 39, 258, 063 Capital assets, net of depreciation 192, 440, 710 175, 231, 715 367, 672, 425 Total Assets 385, 228, 405 243, 150, 985 628, 379, 390
Deferred Outflows of Resources:
Deferred pension related items 1, 817, 627 209, 659 2, 027, 286 Deferred OPEB related items 492, 678 77, 945 570, 623
Total Deferred Outflows of Resources 2, 310, 305 287, 604 2, 597, 909 Liabilities:
Accounts payable 6, 330, 330 1, 783, 599 8, 113, 929
Accrued liabilities 468, 087 468, 087
Accrued interest 101, 245 101, 245
Unearned revenue 5, 623, 252 5, 623,252
Deposits payable 6, 507, 634 913, 504 7, 421, 138
Due to other governments 298, 787 298, 787
Noncurrent liabilities:
Due within one year
Compensated absences 277, 899 10, 305 288, 204
Capital leases& loans payable 305, 000 1, 531, 418 1, 836, 418 Due in more than one year
Compensated absences 1, 574, 760 58, 394 1, 633, 154
Capital leases& loans payable 2, 745, 000 16, 736, 835 19, 481, 835 Net pension liability 5, 770, 332 646, 207 6, 416, 539
Net OPEB liability 983, 722 155, 631 1, 139, 353
Total Liabilities 30, 586, 016 22, 235, 925 52, 821, 941 Deferred Inflows of Resources:
Deferred pension related items 301, 256 33, 736 334, 992 Deferred OPEB related items 329, 026 52, 054 381, 080
Total Deferred Inflows of Resources 630, 282 85, 790 716, 072 Net Position:
Net investment in capital assets 218, 894, 403 166, 717, 832 385, 612, 235 Restricted for:
Communitydevelopment 1, 510, 898 1, 510, 898
Publicsafety 1, 949, 578 1, 949, 578
Culture and leisure 939, 711 939, 711
Public works 99, 564, 736 99, 564, 736
Debtservice 1, 650, 648 1, 650, 648
Unrestricted 33, 463, 086 52, 748, 394 86, 211, 480
Total Net Position 356, 322, 412 $ 221, 116, 874 $ 577, 439, 286 See Notes to Financial Statement. 2
68 CITY OF LATHROP
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/ Programs
Primary Government:
Governmental Activities:
General government 6, 544, 720 $ 6, 961, 502 $ 331, 311 $ 572, 616 Public safety 11, 729, 668 243, 035 204, 697
Community development 8, 227, 717 3, 88Q053 180, 431
Culture and leisure 1, 466, 177 124, 652
Public works 19, 892, 748 3, 581, 829 1, 993, 545 16, 167, 683 Interest on long- term debt 241, 454
Total Governmental Activities 48, 102, 484 14, 791, 071 2, 709, 984 16, 740, 299 Business- Type Activities:
Water 6, 767, 503 10, 239, 976 6, 045, 615
Sewer 7, 926, 063 8, 776, 287 817, 222
Total Business- Type Activities 14, 693, 566 19, 016, 263 6, 862, 837 Total Primary Government 62, 796, 050 $ 33, 807, 334 $ 2, 709, 984 $ 23, 603, 136 General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes& assessments
Use of money and property
Other
Transfers
Total General Revenues
and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
See Notes to Financial Statement. 22
69 Net( Expenses) Revenues and Changes in Net Position
Primary Government
Governmental Business- Type
Activities Activities Total
1, 320, 709 $ 1, 320, 709
11, 281, 936) 11, 281, 936)
4, 167, 233) 4, 167, 233)
1, 341, 525) 1, 341, 525)
1, 850, 309 1, 850, 309
241, 454) 241, 454)
13, 861, 130) 13, 861, 130)
9, 518, 088 9, 518, 088
1, 667, 446 1, 667, 446
11, 185, 534 11, 185, 534
13, 861, 130) 11, 185, 534 2, 675, 596)
8, 613, 482 8, 613, 482
738, 708 738, 708
18, 190, 475 18, 190, 475
1, 530, 878 1, 530, 878
30, 620, 998 5, 692, 221 36, 313, 219
701, 941 341, 762 1, 043, 703
945, 547 22, 641 968, 188
1, 777, 930 1, 777, 930)
63, 119, 959 4, 278, 694 67, 398, 653
49, 258, 829 15, 464, 228 64, 723, 057
309, 229, 780 205, 505, 829 514, 735, 609
2, 166, 197) 146, 817 2, 019, 380)
356, 322, 412 $ 221, 116, 874 $ 577, 439, 286
See Notes to Financial Statement. 23
70 FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2021. Individual non- major funds may be found in the Supplemental section.
GENERALFUND
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
DEVELOPER PROJECTS SPECIAL REVENUE FUND
This fund accounts for revenues received and expenditures spent associated with various developer projects.
CAPITAL FACILITY FEE SPECIAL REVENUE FUND
To account for the financial resources associated with the capital facility fees for Traffic Mitigation includes Regional Traffic), Storm Drain, Culture and Leisure, City Service, and Administration.
BUILDING SAFETY& INSPECTION SPECIAL REVENUE FUND
This fund accounts for building safety and inspection permit fee revenue and activity.
DEVELOPMENT ENGINEERING SPECIAL REVENUE FUND
This fund accounts for the development engineering fee revenue and activity.
DEVELOPER DEPOSITS SPECIAL REVENUE FUND
This fund accounts for the activity relating to developer deposits for development projects ongoing within the City.
STREETS AND ROADS CAPITAL PROJECTS FUND
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year.
24 71
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
ENTERPRISE FUNDS:
Water Fund
This fund accounts for the revenues and expenses of the City' s water operations.
SewerFund
This fund accounts for the revenues and expenses of the City's sewer operations.
NONMAJOR INTERNAL SERVICE FUND
INTERNAL SERVICE FUND:
Compensated Absences Fund
This fund accounts for compensated absences activities, which are provided to other departments on a cost- reimbursement basis.
25 72
CITY OF LATHROP
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2021
Special Revenue Funds
Developer Capital Facility Building Safety
General Projects Fees Inspection
Assets:
Pooled cash and investments 34, 961, 602 $ 3, 672, 283 $ 41, 476, 606 $ 8, 660, 929 Receivables:
Accounts( net of allowance for uncollectibles) 4, 803, 639 30, 207 4, 027 Notes and loans
Accrued interest 12, 486 1, 710 12, 269 2, 310
Prepaid costs 343, 888
Due from other funds 903, 148
Advances to other funds 2, 938, 423
Total Assets 43, 963, 186 $ 3, 704, 200 $ 41, 492, 902 $ 8, 663, 239 Liabilities and Fund Balances:
Liabilities:
Accounts payable 2, 480, 369 $ 392, 565
Accrued liabilities 468, 087
Unearned revenues 710, 235 3, 808, 940
Deposits payable 677, 447 2, 672, 097 214, 485
Due to other funds
Total Liabilities 4, 336, 138 2, 672, 097 4, 415, 990
Fund Balances( Deficits):
Nonspendable 3, 282, 311
Restricted 1, 032, 103 41, 492, 902 4, 247, 249
Committed 29, 664, 824
Unassigned 6,679,913
Total Fund Balances( Deficits) 39, 627, 048 1, 032, 103 41, 492, 902 4, 247, 249 Total Liabilities
and Fund Balances( Deficits) 43, 963, 186 $ 3, 704, 200 $ 41, 492, 902 $ 8, 663, 239 See Notes to Financial Statement. 2g
73 CITY OF LATHROP
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Capital Project
Special Revenue Funds Fund
Other
Development Developer Streets and Governmental
Engineering Deposits Roads Funds
Assets:
Pooled cash and investments 5, 779, 381 $ 1, 304, 506 $ 11, 310, 704 $ 43, 446, 420 Receivables:
Accounts( net of allowance for uncollectibles) 1, 027, 445 44 1, 924, 161 Notes and loans 20, 350
Accrued interest 1, 726 511 2, 723 9, 637
Prepaid costs
Due from other funds
Advancesto otherfunds
Total Assets 5, 781, 107 $ 2, 332, 462 $ 11, 313, 471 $ 45,400,568 Liabilities and Fund Balances:
Liabilities:
Accounts payable 85, 698 $ 181, 382 $ 667, 964 $ 2, 522, 352 Accrued liabilities
Unearned revenues 1, 104, 077
Deposits payable 2, 754, 750 188, 855
Due to other funds 903, 148
Total Liabilities 1, 189, 775 2, 936, 132 667, 964 3, 614, 355 Fund Balances( Deficits):
Nonspendable
Restricted 4, 591, 332 10, 645, 507 41, 955, 830
Committed
Unassigned 603, 670) 169, 617)
Total Fund Balances( Deficits) 4, 591, 332 603, 670) 10, 645, 507 41, 786, 213 Total Liabilities
and Fund Balances( Deficits) 5, 781, 107 $ 2, 332, 462 $ 11, 313, 471 $ 45,400,568 See Notes to Financial Statement. 27
74 CITY OF LATHROP
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2021
Total
Governmental
Funds
Assets:
Pooled cash and investments 150, 612, 431
Receivables:
Accounts( net of allowance for uncollectibles) 7, 789, 523 Notes and loans 20, 350
Accrued interest 43, 372
Prepaid costs 343, 888
Due from other funds 903, 148
Advances to other funds 2, 938, 423
Total Assets 162, 651, 135
Liabilities and Fund Balances:
Liabilities:
Accounts payable 6, 330, 330
Accrued liabilities 468, 087
Unearned revenues 5, 623, 252
Deposits payable 6, 507, 634
Due to other funds 903, 148
Total Liabilities 19, 832, 451
Fund Balances( Deficits):
Nonspendable 3, 282, 311
Restricted 103, 964, 923
Committed 29, 664, 824
Unassigned 5, 906, 626
Total Fund Balances( Deficits) 142, 818, 684
Total Liabilities
and Fund Balances( Deficits) 162, 651, 135
See Notes to Financial Statement. 28
75 CITY OF LATHROP
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund balances of governmental funds 142, 818, 684
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 221, 944, 403
Capital leases and compensated absences that are not due and payable in the current period, and therefore, are not reported in the funds:
Capital leases payable 3, 050, 000)
Compensated absences 316,644) 3, 366,644)
Deferred outflows related to the net pension liability:
Differences between expected& actual experience 297, 362 Adjustment due to differences in proportions 399, 099
Net difference between projected and actual earnings on pension plan investments 171, 417 Contributions made subsequent to measurement date 949, 749 1, 817, 627 Deferred inflows related to the net pension liability:
Difference in actual to proportionate share contribution 260, 100) Changes of assumptions 41, 156) 301, 256)
Net pension liability 5, 770, 332)
Deferred outflows related to the net OPEB liability:
Changes of assumptions 19, 242
Net difference between projected and actual earnings on OPEB plan investments 97, 572 Contributions made subsequent to measurement date 375, 864 492, 678 Deferred inflows related to the net OPEB liability:
Differences between expected& actual experience 287, 216) Changes of assumptions 41, 810) 329, 026)
Net OPEB liability 983, 722)
Net Position of Governmental Activities 356, 322, 412
See Notes to Financial Statement. 29
76 CITY OF LATHROP
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Developer Capital Facility Building Safety
General Projects Fees Inspection
Revenues:
Taxes and assessments 26, 126, 244 $ 20, 093, 761 $
Licenses and permits 296, 475 954, 803
Intergovernmental 2, 827, 889
Charges for services 351, 155 3, 979, 978
Use of money and propeRy 57, 203 34, 656 268, 998 42, 751 Fines and forFeitures 204, 959
Oeveloper participation 2, 712, 202
Miscellaneous 495, 831 8, 188
Total Revenues 30, 359, 756 2, 746, 858 20, 362, 759 4,985, 720 Expenditures:
Current:
General government 6, 241, 381
Public safety 8, 240, 579
Community development 1, 151, 959
Culture and leisure 1, 285, 822
PubliC works 2, 053, 414 243, 763 2, 066, 007
Capital outlay 68, 849
Debt service:
Principal retirement 300, 000
Interest and fiscal charges 81, 600
Total Expenditures 19, 423, 604 243, 763 2, 066, 007
Excess( Deficiency) of Revenues
Over( Under) Expenditures 10, 936, 152 2, 746, 858 20, 118, 996 2, 919, 713 Other Financing Sources( Uses):
Transfers in 4, 743, 526
Transfers out 15, 311, 350) 2, 100, 141) 9, 925, 031) 364, 287) Total Other Financing Sources
Uses) 10, 567, 824) 2, 100, 141) 9, 925, 031) 364, 287) Net Change in Fund Balances 368, 328 646, 717 10, 193, 965 2, 555, 426 Fund Balances, Beginning of Year, as
previously reported 40, 055, 897 385, 386 31, 298, 937 1, 691, 823 Restatements 797, 177)
Fund Balances( Deficit), Beginning of Year, as restated 39, 258, 720 385, 386 31, 298, 937 1, 691, 823 Fund Balances( Deficit), End of Year 39, 627, 048 $ 1, 032, 103 $ 41, 492, 902 $ 4, 247, 249 See Notes to Financial Statement. 30
77 CITY OF LATHROP
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2021
Capital Project
Special Revenue Funds Funds
Other
Development Developer Streets and Governmental
Engineering Deposits Roads Funds
Revenues:
Taxes and assessments 13, 474, 536
Licenses and permits 280
Intergovernmental 4, 217, 147
Charges for services 3, 817, 841
Use of money and property 41, 894 12, 644 52, 408 191, 387 Fines and forteitures 1, 423, 144
Developer participation 4, 883, 345
Miscellaneous 24, 748 416, 780
Total Revenues 3, 884, 483 4, 895, 989 52, 408 19, 723, 274 Expenditures:
Current:
General government
Public safety 3, 267, 273
Community development 68, 556
Culture and leisure 37, 220
Public works 2, 208, 426 2, 957, 572 10, 098, 591
Capital outlay 8, 650, 612 2, 580, 560
Debt service:
Principal retirement
Interest and fiscal charges 159, 854
Total Expenditures 2, 208, 426 3, 117, 426 8, 650, 612 16, 052, 200 Excess( Deficiency) of Revenues
Over( Under) Expenditures 1, 676, 057 1, 778, 563 8, 598, 204) 3, 671, 074 Other Financing Sources( Uses):
Transfers in 11, 736, 398 18, 652, 039
Transfers out 5, 653, 224)
Total Other Financing Sources
Uses) 11, 736, 398 12, 998, 815
Net Change in Fund Balances 1, 676, 057 1, 778, 563 3, 138, 194 16, 669, 889 Fund Balances, Beginning of Year, as
previously reported 2, 915, 275 7, 507, 313 24, 103, 111 Restatements 2, 382, 233) 1, 013, 213
Fund Balances( Deficit), Beginning of Year, as restated 2, 915, 275 2, 382, 233) 7, 507, 313 25, 116, 324 Fund Balances( Deficit), End of Year 4, 591, 332 $ ( 603, 670) $ 10, 645, 507 $ 41, 786, 213 See Notes to Financial Statement. 31
78 CITY OF LATHROP
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2021
Total
Governmental
Funds
Revenues:
Taxes and assessments 59, 694, 541
Licenses and permits 1, 251, 558
Intergovernmental 7, 045, 036
Charges for services 8, 148, 974
Use of money and property 701, 941
Fines and forteitures 1, 628, 103
Developer participation 7, 595, 547
Miscellaneous 945, 547
Total Revenues 87, 011, 247
Expenditures:
Current:
General government 6, 241, 381
Public safety 11, 507, 852
Community development 1, 220, 515
Culture and leisure 1, 323, 042
Public works 19, 627, 773
Capital outlay 11, 300, 021
Debt service:
Principal retirement 300, 000
Interest and fiscal charges 241, 454
Total Expenditures 51, 762, 038
Excess( Deficiency) of Revenues
Over( Under) Expenditures 35, 249, 209
Other Financing Sources( Uses):
Transfers in 35, 131, 963
Transfers out 33, 354, 033)
Total Other Financing Sources
Uses) 1, 777, 930
Net Change in Fund Balances 37, 027, 139
Fund Balances, Beginning of Year, as
previously reported 107, 957, 742
Restatements 2, 166, 197)
Fund Balances( Deficit), Beginning of Year, as restated 105, 791, 545 Fund Balances( Deficit), End of Year 142, 818, 684
See Notes to Financial Statement. 32
79 CITY OF LATHROP
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net change in fund balances- total governmental funds 37,027, 139 Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlay in the current period.
Capital outlay 11, 576, 486
Miscellaneous capital asset adjustments 50, 731
Developer contributions 8, 572, 137
Depreciation 7, 512, 093)
Gain/( loss) on disposal of capital assets 304,207) 12, 383,054 Repayment of capital leases is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Principal repayments of capital leases 300, 000
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 70, 945)
Pension obligation expenses are expenditures in governmental funds, but reduce the net pension liability in the statement of net position. 391, 099) OPEB obligation expenses are expenditures in governmental funds, but reduce the net OPEB liability in the statement of net position. 10, 680 Change in Net Position of Governmental Activities 49,258,829 See Notes to Financial Statement. 33
80 CITY OF LATHROP
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Governmental
Business- Type Activities- Enterprise Funds Activities
Compensated
Absences
Internal
Water Sewer Totals Service Fund
Assets:
Current:
Cash and investments 32,750, 204 $ 23, 131, 994 $ 55, 882, 198 $ 1, 536,015 Receivables:
Accounts 2, 289, 069 1, 265,735 3, 554, 804
Accrued interest 9, 201 6, 662 15, 863
Restricted:
Cash with fiscal agent 1, 650, 458 1, 650, 458
Total Current Assets 36, 698, 932 24,404,391 61, 103,323 1, 536,015 Noncurrent:
Advances to other funds 170, 000 170,000
Capital assets, not being depreciated 4, 107,738 5, 646, 632 9, 754, 370 Capital assets, net of depreciation 59, 785, 523 115,446, 192 175, 231, 715 Total NoncurrentAssets 63,893, 261 121, 262,824 185, 156, 085 Total Assets 100, 592, 793 145, 667, 215 246,259, 408 1, 536,015 Deferred Outflows of Resources:
Deferred pension related items 125, 575 84, 084 209,659 Deferred OPEB related items 47,626 30, 319 77, 945
Total Deferred Outflows of Resources 173, 201 114, 403 287, 604 Liabilities:
Current:
Accounts payable 714, 696 1, 068, 903 1, 783, 599
Accrued interest 101, 245 101, 245
Deposits payable 882, 216 31, 288 913,504
Due to other governments 298, 787 298,787
Accrued compensated absences 6, 749 3, 556 10, 305 230, 402 Capitalleases 1, 531, 418 1, 531, 418
Total Current Liabilities 3, 535, 111 1, 103,747 4, 638,858 230,402 Noncurrent:
Advances from other funds 3, 108,423 3, 108,423
Accrued compensated absences 38, 245 20, 149 58, 394 1, 305, 613 Net pension liability 386, 548 259,659 646, 207
Net OPEB liability 95, 095 60, 536 155,631
Capitalleases 16, 736, 835 16, 736,835
Total Noncurrent Liabilities 17, 256, 723 3, 448, 767 20, 705, 490 1, 305, 613 Total Liabilities 20, 791, 834 4, 552, 514 25, 344, 348 1, 536, 015 Deferred Inflows of Resources:
Deferred pension related items 20, 181 13, 555 33, 736
Deferred OPEB related items 31, 807 20, 247 52, 054
Total Deferred InFlows of Resources 51, 988 33,802 85, 790 Net Position:
Net investment in capital assets 45, 625, 008 121, 092, 824 166,717, 832 Restricted for debt service 1, 650,648 1, 650,648
Unrestricted 32, 645, 916 20, 102,478 52, 748, 394
Total Net Position 79,921, 572 $ 141, 195,302 $ 221, 116, 874 $ See Notes to Financial Statement. 34
81 CITY OF LATHROP
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
overnmen a
Business-Type Activities- Enterprise Funds Activities
Compensated
Absences
Internal
Water Sewer Totals Service Fund
Operating Revenues:
Sales and service charges 10, 239, 976 $ 8, 776, 287 $ 19, 016, 263 $ Other income 1, 206 21, 435 22, 641
Total Operating Revenues 10, 241, 182 8, 797, 722 19, 038, 904 Operating Expenses:
General and administrative 1, 002, 577 625,301 1, 627,878 Maintenance and operations 3, 431, 687 4, 252,525 7, 684,212 Depreciation expense 1, 782, 565 3, 048, 237 4, 830,802 Total Operating Expenses 6, 216, 829 7, 926, 063 14, 142, 892 Operating Income( Loss) 4, 024, 353 871, 659 4, 896, 012 Nonoperating Revenues( Expenses):
Taxes and assessments 2, 485,259 3, 206, 962 5, 692, 221 Investment earnings 198, 475 143, 287 341, 762
Interest expense 550,674) 550, 674)
Contributions 6, 045,615 817,222 6, 862, 837
Total Nonoperating
Revenues( Expenses) 8, 778, 675 4, 167, 471 12, 346, 146 Income( Loss) Before Transfers 12, 203, 028 5, 039, 130 17, 242, 158 Transfers in 3, 660, 048 3, 656,299 7, 316, 347
Transfers out 5, 351, 807) 3, 742,470) 9, 094, 277)
Changes in Net Position 10, 511, 269 4, 952,959 15, 464,228 Net Position:
Beginning ot Year, as
previously reported 69,263,486 136, 242,343 205,505,829 Restatements 146, 817 146, 817
Beginning of Fiscal Year, as restated 69, 410, 303 136, 242,343 205, 652,646 End of Fiscal Year 79,921, 572 $ 141, 195,302 $ 227, 116,874 $ See Notes to Financial Stateme t. 35
82 CITY OF LATHROP
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2027
Governmental
Business-Type Activities- Enterprise Funds Activities
Compensated
Absences
Internal
Water Sewer Totals Service Fund
Cash Flows from Operating Activities:
Cash received from customers and users 12, 603,980 $ 8, 719, 685 $ 21, 323,665 $ Cash paid to suppliers for goods and services 4, 131, 869) 4, 055, 321) 8, 187, 190) Cash paid to employees for services 859, 901) 631, 615) 1, 491, 516) Cash received from( payments to) others 1, 206 21, 435 22, 641 156, 738 Net Cash Provided( Used) by Operating Activities 7, 613,476 4,054,184 11, 667,600 156, 738 Cash Flows from Non- Capital
Financing Activities:
Cash transfers in 3, 660,048 3, 656,299 7, 316, 347
Cash transfers out 5, 351, 807) 3, 742,470) 9, 094,277) Repayment made to other funds 362, 559) 362,559)
Taxes and assessments 2, 485, 259 3, 206, 962 5, 692, 221 Advance to other funds 170, 000) 170, 000)
Net Cash Provided( Used) by
Non- Capital Financing Activities 793,500 2, 588,232 3, 381, 732 Cash Flows from Capital
and Related Financing Activities:
Capital contributions 6, 045,615 817,222 6, 862, 837
Acquisition and construction of capital assets 6, 111, 382) 3, 472, 818) 9, 584, 200) Principal paid on capital debt 1, 483, 360) 1, 483, 360) Interest paid on capital debt 550,674) 550, 674)
Net Cash Provided( Used) by
Capital and Related Financing Activities: 2, 099,801) 2, 655, 596) 4,755, 397) Cash Flows from Investing Activities:
Interest received 219, 925 172, 558 392, 483
Net Cash Provided( Used) by
Investing Activities 219, 925 172, 558 392, 483
Net Increase( Decrease) in Cash
and Cash Equivalents 6, 527, 040 4, 159, 378 10, 686, 418 156, 738 Cash and Cash Equivalents at Beginning of Year 27,873,622 18, 972,616 46, 846,238 1, 379, 277 Cash and Cash Equivalents at End of Year 5 34,400, 662 $ 23, 131, 994 $ 57, 532, 656 $ 1, 536, 015 Reconciliation of Operating Income to Net Cash
Provided( Used) by Operating Activities:
Operating income( loss) 4, 024, 353 $ 871, 659 $ 4, 896,012 $ Adjustments to Reconcile Operating Income( Loss)
Net Cash Provided( Used) by Operating Activities:
Depreciation 1, 782, 565 3, 048,237 4, 830, 802
Changes in Pension related items 61, 963 52, 110) 9, 853 Changes in OPEB related items 79, 276 50, 464 129, 740
Increase) decrease in accounts receivable 2, 297, 514 45, 452) 2, 252, 062 Increase( decrease) in accounts payable 700, 182) 197, 204 502, 978) Increase( decrease) in deposits payable 66, 490 11, 150) 55, 340 Increase( decrease) in compensated absences 1, 437 4, 668) 3, 231) 156, 738 Total Adjustments 3, 589, 063 3, 182, 525 6, 771, 588 156, 738 Net Cash Provided( Used) by
Operating Activities 7, 613, 416 $ 4,054, 184 $ 11, 667, 600 $ 156, 738 Non- Cash Investing, Capital, and Financing Activities:
Accrued interest adjustment 146, 817) $ 146, 817) $
See Notes to Financial Statement. 36
83 FIDUCIARY FUNDS
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments, that are not held in a trust or equivalent arrangement. The financial activities of these funds are excluded from the Entity- wide financial statements but are presented in separate Fiduciary Fund financial statements.
37 84
CITY OF LATHROP
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2021
Custodial Funds
Assets:
Pooled cash and investments 5, 641, 663
Receivables:
Accrued interest 1, 104
Restricted assets:
Cash and investments with fiscal agents 3, 004, 732
Total Assets 8, 647, 499
Liabilities:
Accounts payable 172, 025
Deposits payable 30, 747
Due to other governments 77,987
Long- term liabilities:
Bonds due in one year 1, 385,000
Bonds due in more than one year 73, 095, 000
Total Liabilities 74, 760, 759
Net Position( Deficit):
Restricted for:
Individuals, organziations and other governments 66, 113, 260) Total Net Position( Deficit) 66, 113, 260)
See Notes to Financial Statement. 38
85 CITY OF LATHROP
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
Custodial Funds
Additions:
Collections for assessment districts 6, 348, 585
Investment earnings 17, 096
Total Additions 6, 365, 681
Deductions:
Administrative expenses 71, 323
Contractual services 102, 012
Interest expense 4, 667, 544
Total Deductions 4, 840, 879
Changes in Net Position 1, 524, 802
Net Position- Beginning of the Year
Restatements 67, 638, 062)
Net Position( Deficit)- Beginning of the Year, as restated 67, 638, 062) Net Position( Deficit)- End of the Year 66, 113, 260)
See Notes to Financial Statement. 39
86 THIS PAGE INTENTIONALLY LEFT BLANK
40 87
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The City of Lathrop, California, ( the City) was incorporated July 1, 1989, under the general laws of the State of California. The City operates under a Council- Manager form of government and provides the following services: general government, public safety, public ways and facilities/transportation, culture and leisure, and public utilities.
The financial statements of the primary government of the City of Lathrop include the activities of the City as well as the Lathrop Public Facilities Financing Corporation, which is controlled by and dependent on the City. While it is a separate legal entity, its financial activities are integral to those of the City. Its financial activities have been aggregated and merged ( termed " blending") with those of the primary government of the City in the accompanying financial statements.
On April 11, 2000, the City Council formed the Lathrop Public Facilities Financing Corporation ( Corporation), a non- profit public benefit corporation. The Corporation was formed to assist the City in financing the acquisition, construction, and improvement of municipal facilities. The Corporation is also empowered to acquire property. The Corporation is governed by a Board of Directors consisting of the City Council members.
b. Basis of Presentation
The City' s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U. S. A.
These Standards require that the financial statements described below be presented.
Government- wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government ( the City and its component unit). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. However, the interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business- type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business- type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City' s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include ( a) charges paid by the recipients of goods or services offered by the programs, ( b) grants and contributions that are restricted to meeting the operational needs of a particular program and ( c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
41 88
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies ( Continued) Fund Financial Statements: The fund financial statements provide information about the City' s funds, including fiduciary funds and blended component units. Separate statements for each fund category - govemmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
c. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/ expenses equal to ten percent of their fund- type total and five percent of the grand total. Major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non- major funds, are combined and reported in a single column, regardless of their fund- type.
The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
Develoqers Proiects Special Revenue Fund
This fund accounts for developer paid fees restricted to/ committed expenditures associated with various developer projects.
Capital Facilitv Fees Suecial Revenue Fund
To account for the financial resources associated with the capital facility fees for Traffic Mitigation ( includes Regional Traffic), Storm Drain, Culture and Leisure, City Service, and Administration.
Buildinqs Safetv 8 Inspection Special Revenue Fund
This fund accounts for building safety and inspection permit fee revenue and activity.
Development Enqineerinq Special Revenue Fund
This fund accounts for the development engineering fee revenue and activity. 42 89
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies ( Continued) Developer Deposits Special Revenue Fund
This fund accounts for the activity relating to developer deposits for development projects ongoing within the City.
Streets and Roads Capital Proiects Fund
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year.
The City reported both of its enterprise funds as major funds in the accompanying financial statements:
Water Fund
This fund accounts for the revenues and expenses of the City' s water operations.
Sewer Fund
This fund accounts for the revenues and expenses of the City' s sewer operations.
The City also reports the following fund types:
Internal Service Fund
The fund accounts for compensated absences activities, which are provided to other departments on a cost- reimbursement basis.
Fiduciary Funds
Custodial funds are used to account for assets held by the City as an agent for certain special assessment districts The financial activities of these funds are excluded from the entity- wide financial statement, but are presented in separate Fiduciary Fund financial statements.
d. Basis of Accounting
The government- wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year- end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long- term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as otherfinancing sources.
43 90
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally resuit from providing services and producing and delivering goods in connection with a proprietary fund' s principal ongoing operations. The principal operating revenues of the water fund, sewer fund, and internal service funds are charges to customers for sales and services. Operating expenses tor enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Non- exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City may fund programs with a combination of cost- reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted Net Position may be available to finance program expenditures. The City' s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
Those revenues susceptible to accrual are use of money and property revenue, charges for services and fines and penalties. Sales taxes collected and held by the State at year- end on behalf of the City also are recognized as revenue. e. Property Tax
The City's property taxes are levied each July 1, on the assessed values as of the prior January 1 for all real and personal property located in the City. Property sold after the assessment date ( January 1) is reassessed and the amount of property tax levied is prorated.
The City has elected to receive property taxes from the County of San Joaquin ( County) under the Teeter Plan. Under this program, the City receives 100% of the levied property taxes in periodic payments with the County assuming responsibility for delinquencies.
Secured property taxes are due in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31. The City accrues only taxes which are received from the County within 60 days after fiscal year end.
44 91
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies ( Continued) f. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles ( GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
g. Cash and Cash Equivalents
The City' s cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturities of three months or less from the date of acquisition.
h. Accounts Receivable
In the government- wide statements, receivables consist of all revenues earned at year- end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due.
Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred.
Business- type activities report utilities and interest earnings as their major receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. i. Prepaid Expenses
Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government- wide and fund financial statements.
j. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government- wide or fund financial statements.
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at the estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not availabte. The City's policy is to capitalize all capital assets with costs exceeding certain minimum thresholds.
The City has recorded all its public domain ( infrastructure) capital assets placed in service, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems.
45 92
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. Generally accepted accounting principles require that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which means the cost of the capital asset is divided by its expected useful life in years and the result is charged to expense each year until the capital asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.
Buildings 10 - 30 years
Improv ements 5- 50 years
Equipment and Vehicles 5- 30 years
Infrastructure 5 - 40 years
The City capitalizes all capital assets with a useful life of more than one year. Prior to July 1, 2019, the City capitalized all capital assets with a cost greater than $ 3, 000.
Subsequent to that date, the City capitalizes all land purchases and all other capital assets as follows:
Land I mprovements 50, 000
Buildings 50, 000
Building Improvements 50, 000
I nfrastructure 50, 000
Equipment, Furniture and Vehicles 10, 000
Intangible Assets 10, 000
Leasehold Improvements 50, 000
Construction in Progress for Year End Reporting 50, 000 will exceed at completion k. Compensated Absences
City employees accumulate earned but unused vacation which can be converted to cash at termination of employment. For governmental funds, a liability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements. The remaining amounts are reported as a liability in the Statement of Net Position. Proprietary funds' liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.
I. Long Term Liabilities
In the government- wide financial statements and the proprietary fund types in the fund financial statements, long- term liabilities, and other long- term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net position.
In the fund financial statements the face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 46 93
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies ( Continued) m. Net Pension Liability
For purposes of ineasuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/ deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office. For this purpose, benefit payments ( including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS' website under Forms and Publications. n. Other Post-Employment Benefits ( OPEB)
For purposes of ineasuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
o. Deferred Outflows/ Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period( s) and so will not be recognized as an outflow of resources ( expense/ expenditure) until then.
In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period( s) and so will not be recognized as an inflow of resources ( revenue) until that time.
p. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either " due to/from other funds" i. e., the current portion of interfund loans) or " advances to/ from other funds" i. e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business- type activities are reported in the government- wide financial statements as" internal balances". 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 available financial resources.
47 94
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies ( Continued) Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/ expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government- wide presentation.
q. Net Position and Fund Balance
Net Position
Net position is the excess of all the City' s assets all deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net position is divided into three captions on the Statement of Net Position. These captions apply only to net position, which is determined only at the Government-wide level, and business type activities and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City' s capital assets, less the outstanding balance of any debt issued to finance these assets and related deferred inflow of resources.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
Fund Balance
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund' s cash and receivables, less its liabilities.
The City' s fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.
48 95
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Committed fund balances include amounts that can be used only for the specific purposes determined by a formal action of the City Council' s highest level of decision- making authority. The City Council can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken ( the adoption of another resolution) to remove or revise the limitation.
Assigned fund balances are amounts constrained by the City' s intent to be used for a specific purpose, but are neither restricted nor committed. The Authority for assigning fund balance is expressed by the City Council or its designee ( i. e., City Manager), as established in the City' s Reserve Policy. This category includes nonspendables, when it is the City' s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Further detail about the City' s fund balance classification is described in Note 8. r. New, Closed and Renamed Funds
The following funds were established during the fiscal year:
The State Grants Special Revenue Fund is used to account for state grant expenditures and related activities.
s. New Accounting Pronouncement
In FY 2020/21, the City of Lathrop implemented the provisions of GASB Statement No. 84, Fiduciary Activities. This statement changes the definition of fiduciary activities, providing more refined guidance on how to determine if an activity is fiduciary in nature and therefore should be reported as such. The statement defines types of fiduciary funds, eliminating agency funds and replacing them with Custodial Funds. Under this guidance, all fiduciary funds will now report a net position and a statement of changes in net position.
Implementation of this guidance resulted in reclassification of several programs in governmental activities to fiduciary activities and the creation of additional funds to account for these programs. The change in accounting princip e resulted in a prior period adjustment in the amount of $( 67,638, 062) being reported for the custodial funds in the Statement of Changes in Fiduciary Net Position, and of$( 1, 369, 020) in the Statement of Revenues, Expenditures and Changes in Fund Balances.
In FY 2020/ 21, the City of Lathrop adopted the provisions of GASB Statement No. 98, the Annual Comprehensive Financial Report. This statement establishes the annual comprehensive financial report and ACFR in generally accepted accounting principles GAAP) for state and local governments and eliminates the prior name and acronym.
The following pronouncements have been postponed as a temporary relieve to governments and other stakeholders in light of the COVID- 19 pandemic and the new effective date are reflected in the following fiscal years:
GASB 87 — Leases — The requirements of this statement are effective for reporting periods beginning on or after June 15, 2021.
49 96
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments
a. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.
California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City' s cash on deposit or first trust deed mortgage notes with a value of 150% of the City' s cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the City' s name and places the City ahead of general creditors of the institution pledging the collateral.
The City' s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Investment income is allocated among funds on the basis of average monthly cash and investment balances in these funds. Interest income on certain investments is allocated based on the source of the investment and legal requirements which apply.
Cash and investments with an original maturity of three months or less are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year. b. Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments. Cash and investments as of June 30, 2021, are as follows:
City cash and in, estments in primary go, ernment:
Cash and irn,estments 208, 030, 644
Cash and irnnestments, restricted, with fiscal agents 1, 650, 458 Total Cas h 209, 681, 102
Cash and in estments in Fiduciary Funds ( separate statement):
Cash and in stments 5, 641, 663
Cash and irnestments, restricted, with fiscal agents 3, 004, 732 Total Fiduciary Funds cash and in estments 8, 646, 395
Total cash and inuestments 218, 327, 497
Cash and Investments as of June 30, 2021, consist of the following:
Cash on hand 6, 260
Cash with financial institutions 97, 638, 169
Irnestments 120, 683, 068
Total Cash and Irnestments 218, 327, 497
50 97
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments ( Continued)
c. Investments Authorized by the California Government Code and the City' s Investment Policy
The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City' s Investment Policy where it is more restrictive that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City' s investment policy.
The City' s investment policy states that all investments and deposits shall be made in accordance to the California Government Code Sections 16429. 1, 53600- 53609 and 53630- 53686, except for the reserve funds from proceeds of debt issues may be invested in permitted investments specified in the indenture of the debt issue. The City has further restricted authorized investments to the following:
Maximum Maximum
Percentage/ In estment Minimum
Maximum Amount of in One Credit
Authorized Irnestment Type Maturity Portfolio Issuer Ratings Local Go ernment Bonds 5 years 30% None A
State Bonds 5 years 30% None A
US Treasury Obligations 5 years None None N/ A
US Go ernment Agency Issues 5 years None None N/ A
Banker' s Acceptance 180 days 40% 30% A
Commercial Paper, Prime Quality 270 days 25% 10% A
Negotiable Certificates of Deposit 5 years 30°/ a None N/ A Repurchase and Rewerse Repurchase Agreements 30 days None None A Medium - Term Notes 5 years 30% 10% A
Money Market Funds N/ A 20% None AAAm
Mutual Funds 5 years 20% 10% AAAm
Local Agency Irnestment Fund (" LAIF") N/ A None None N/ A Joint Power Authority Pool N/ A None None N/ A
Supranational Obligations 5 years 30% None AA
d. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:
51 98
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments (Continued)
Maximum Maximum
Percentage/ In estment
Maximum Amount of in One
Authorized Irnestment Type Maturity Portfolio Issuer
US Treasury Obligations None None None
US Agency Securities None None None
Mortgage- caked Securities 3 years None None
Banker' s Acceptance ( must be dollar denominated) 360 days None None Certificates of Deposit None None None
Commercial Paper 180 days None None
Money Market Funds N/ A None None
Local Go ernment Bonds None None None
County Pool N/ A None None
Local Agency In estment Fund (" LAIF") N/ A None None
e. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City' s investments including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City' s investments by maturity or earliest call date:
Measurement Input
12 Months or
Irnestment Type Less 13 to 24 Months 25 to 60 Months Total U. S. Treasury Obligations 587, 975 $ 8, 491, 520 $ 6, 804, 832 $ 9, 079, 495 U. S. Go. emmentAgencies Issues 3, 867, 083 5, 187, 200 6, 438, 952 9, 054, 283 SupranationalObligations 1, 086, 109 314, 095 1, 086, 109 Local Agency Imestment Fund 73, 884, 337 73,884,337
Asset Management Program 10, 255, 647 10, 255,647
Money Market Mutual Funds 2, 893, 391 2, 893, 391
Irnestments in County Pool 382, 806 382, 806
Certificate of Deposit 489, 121 489, 121
Totallm, estments 92, 360, 360 $ 14, 764, 829 $ 13, 557, 879 120, 683, 068 Cash in Banks and On Hand 97,644, 429
Total City Cash and In estments 218, 327, 497
52 99
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments ( Continued)
The City is a participant in the Local Agency Investment Fund ( LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $ 5, 000, a maximum transaction amount of$ 75 million and at least 24 hours advance notice for withdrawals of$ 10 million or more. Bond proceeds accounts are subject to a one- time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF' s investment portfolio are collateralized mortgage obligations, mortgage- backed securities, other asset- backed securities, loans to certain state funds, United States Treasury Notes and Bills and floating rate securities issued by federal agencies, government- sponsored enterprises, and corporations. At June 30, 2021, these investments have an average maturity of 191 days.
Money market mutual funds are available for withdrawal on demand and at June 30, 2021, have an average maturity of 105 days.
f. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:
Investments by Fair Value Level: Le el 1 Le el 2 Total
U. S. Treasury Obligations 15, 884, 327 $ 15, 884, 327
U. S. Go emment Agencies Issues 15, 493, 235 15,493,235 SupranationalObligations 1, 400, 204 1, 400, 204
Total Im,estments by Fair Value Le el 15, 884, 327 $ 16, 893, 439 32, 777, 766 InvestmentsMeasured atAmortized Cost:
Local Agency Im,estment Fund 73,884,337
Asset Management Program 10, 255, 647
Money Market Mutual Funds 2, 893,391
In estments in County Pool 382, 806
Certificates of Deposit 489, 121
Cash in Banksand On Hand 97,644, 429
Total City Cash and Im,estments 218, 327, 497
53 100
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments( Continued)
US Treasury Obligations classified in Level 1 of the fair value hierarchy are valued using a quoted price in an active market for an identical asset. For investments classified within Level 2 of the fair value hierarchy, the City' s custodians generally use a multi- dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker dealer quotes, issuer spreads and benchmark securities, among others. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.
g. 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. The actual ratings as of June 30, 2021, as provided by Standard and Poor's, are as follows:
Imestment Type AAAm AA+ AAA Total
SupranationalObligations 1, 400, 204 $ 1, 400, 204
Money Market Mutual Funds 2, 893, 391 2, 893, 391
Totals 2, 893, 391 $ 1, 400, 204 4, 293, 595
Not Rated:
Local Agency In estment Fund 73, 884, 337
Asset Management Program 10, 255, 647
Im,estments in County Pool 382, 806
Certificates of Deposit 489, 121
Excempt from Credit Rating Disclosure:
U. S. Go ernment Agencies Issues 15, 493, 235
US Treasury Obligations 15, 884, 327
Totallm, estments
120, 683, 068
h. Concentration of Credit Risk
There were no Investments in any one issuer, other than U. S. Treasury securities, money market mutual funds, and California Local Agency Investment Funds that represent 5% or more of total City- wide investments at June 30, 2021.
Note 3: Interfund Transactions
a. Long- Term Advances
As of June 30, 2021, the General Fund had advanced $ 2, 938, 423 to the Sewer Enterprise Fund, which was used to cover capital construction and other related costs. The advances will be repaid with future operating revenues, but not within the next fiscal year.
54 101
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Interfund Transactions( Continued)
b. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another.
Transfers between funds during the fiscal year ended June 30, 2021, were as follows:
Transfers In Transfers Out
Major Go aernmental Funds:
General 4, 743, 526 $ 15, 311, 350
De eloper Projects Special Revenue Fund 2, 100, 141
Capital Facilities Fee Special Revenue Fund 9, 925, 031 Building Safety & Inspection Special Re enue Fund 364, 287 Streets and Roads Capital Projects Fund 11, 736, 398
Major Enterprise Funds:
Water 3, 660, 048 5, 351, 807
Sewer 3, 656, 299 3, 742, 470
Non Major Go ernmental Funds 18, 652, 039 5, 653, 224
Total Interfund Transfers 42, 448, 310 $ 42,448, 310
The purposes of the above transfers were to fund operations, capital projects and debt service.
c. Internal Balances
Internal balances are presented in the Entity- wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business- type activities. d. Due To( From) Other Funds
The City provides short-term interfund loans to cover cash flows which are expected to be repaid within the next year. As of June 30, 2021, Due To( From) Other Funds were as follows:
Due From Other Funds Due To Other Funds Amount
General Fund Nonmajor Go ernmental Funds 903, 148
Total $ 903, 148
55 102
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Capital Assets
a. Capital Asset Additions and Retirements
Capital assets activity for the year ended June 30, 2021, is as follows:
Balance Balance
Go emmenlal Actiutes July 1, 2020 Adjustments Additions Retirements Transfers June 30, 2021 Capital assets not being depreciated:
Land 9, 629, 503 $ 9, 629, 503
Constructionin Progress 15, 943, 873 1, 250) 9, 610, 414 5, 678, 847 19, 874, 190 Total capital assets not being depreciated 25, 573, 376 1, 250) 9, 610, 414 5, 678, 847 29, 503, 693 Capital assets being depreciated:
Buildings 11, 716, 095 11, 716, 095
Impro ements 68, 709, 715 241, 181) 1, 240, 822 368, 329) ( 5, 678, 847) 75, 019, 874 Equipment and Vehicles 3, 851, 852 51, 638 85, 745 52, 265) 3, 936, 970 Infrastructure 191, 357, 657 241, 524 9, 211, 642 200, 810, 823 Total capital assets being depnciated 275, 635, 319 51, 981 10, 538, 209 420, 594) ( 5, 678, 847) 291, 483, 762 Less accumulated depreciation:
Buildings 3, 533, 560 226, 303 3, 759, 863
Impro ements 21, 805, 224 2, 947, 719 115, 761) 24, 637, 182 Equipment and Vehicles 2, 006, 465 444, 825 626) 2, 450, 664 Infrastructure 64, 302, 097 3, 893, 246 68, 195, 343
Total accumulated depreciation 91, 647, 346 7, 512, 093 116, 387) 99, 043, 052 Net capital assets being depreciated 183, 987, 973 51, 981 18, 050, 302 536, 981) ( 5, 678, 847) 192, 44Q710 Governmental Activities Capital Assets, Net 209, 567, 349 $ 50, 731 $ 27, 660, 716 5 ( 536, 981) $ 221, 944, 403 Balance Balance
Business- typeAcitivies Juy 1, 2020 Additions Retirements Transfers June 30, 2021 Capital assets not being depreciated:
Land 3, 565, 179 $ 3, 565, 179
Constructian in Progress 3, 359, 944 2, 829, 247 6, 189, 191 Total capital assets not being depreciated 6, 925, 123 2, 829, 247 9, 754,370 Capital assets being depreciated:
Buildings 3, 072 3, 072
Improvements 222, 896, 677 6, 702, 980 229, 599, 657
Equipment and Vehicles 1, 522, 366 51, 973 1, 574, 339
Net capital assets being depriciated 224, 422, 115 6, 754, 953 231, 177, 068 Less accumulated depreciation:
Buildings 3, 013 15 3, 028
Improvements 50, 223, 446 4, 718, 992 54, 942, 438
EquipmentandVehicles 888, 092 111, 795 999$$
Total accumulated depreciation 51, 114, 551 4, 830, 802 55, 945, 353 Net capital assets being depreciated 173, 307, 564 11, 585, 755 175, 231, 715 Business- type Activkies Capital Assets, Net 180, 232, 687 5 14, 415, 002 a s a sa, 986, 085 56 103
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Capital Assets ( Continued)
b. Capital Asset Contributions
Some capital assets may be acquired using federal and State grant funds, or they may be contributed by developers or other governments. These contributions are required to be accounted for as revenues at the time the capital assets are contributed. c. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:
Go, ernmental Activities
General go nernment 112, 681
Community de elopment 169, 773
Public safety 130, 710
Public works 7, 047, 095
Culture and leisure 51, 834
Total Governmental Activities 7, 512, 093
Business- Type Activities
Water 1, 782, 565
Sewer 3, 048, 237
Total Business- Type Activities 4, 830, 802
Note 5: Compensated Absences
The following is a summary of changes in the City' s compensated absences for the fiscal year ended June 30, 2021:
Balance Balance Due within
June 30, 2020 Net Change June 30, 2021 one year
Go emmental actiuties 1, 624, 976 $ 227, 683 $ 1, 852, 659 $ 277, 899 Business- type activities 71, 930 3, 231) 68, 699 10, 305 Total 1, 249, 919 $ 224, 452 $ 1, 921, 358 $ 288, 204
57 104
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 6: Capital Leases 8 Loans Payable
The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. a. The City' s Capital Leases& Loans Payable
The City' s long-term debt activities for the year ended June 30, 2021, is as follows:
Balance Balance
Go ernmental Activities Long- Term Debt June 30, 2020 Retirements June 30, 2021 Current Portion Capital Lease Obligation
2016 Lease Agreement
2. 55%, due 07/ 15/ 2029 3, 350, 000 $ 300, 000 $ 3, 050, 000 $ 305,000 Total Go ernmental ActiNties 3, 350, 000 $ 300, 000 $ 3, 050, 000 $ 305, 000 Balance Balance
Business- type Activities Long- Term Debt June 30, 2020 Retirements June 30, 2021 Current Portion Capital Lease Obligation
2017 Bank Loan
2. 89%, due 06/ 01/ 2032 9, 550, 312 $ 676,344 $ 8, 873, 968 $ 696, 032 State Rewlving Fund Loan
2. 3086%, due 07/ 01/ 2032 6, 456, 406 445, 961 6, 010, 445 461, 583 Compass Bank Loan
3. 50%, due 06/ 01/ 2029 3, 744, 895 361, 055 3, 383, 840 373, 803 Total Business- type Activities 19, 751, 613 $ 1, 483, 360 $ 18, 268, 253 $ 1, 531, 418 b. Debt Service Requirements
Future principal and interest payments on all Governmental and Business- type long- term debt were as follows at June 30, 2021:
Go emmental Actiuties Business- Type ActiHties
Direct Borrowings Direct Borrowings
City Hall Lease 2017 Bank Loan State Rewlung Fund Loan Compass Bank Loan For the Year
Ending June 30 Principal Interest Pnncipal Interest Pnncipal Interesf Pnncipal Interest 2022 $ 305,000 $ 73, 886 $ 696, 032 $ 251, 429 $ 461, 583 $ 135, 990 $ 373, 803 $ 115, 197 2023 315, 000 65, 981 716, 293 231, 167 472, 301 125, 272 387, 001 101, 999 2024 320, 000 57, 885 737, 145 210, 316 483, 267 114,306 400, 664 88, 336 2025 330, 000 49, 598 758, 604 188, 857 494, 489 103,084 414, 810 74, 190 2026 340, 000 41, 055 780,687 166, 774 500, 217 97, 376 429, 456 59, 544 2027- 2031 1, 440, 000 74, 588 4,257, 848 479, 457 2, 717, 383 270, 468 1, 378, 106 85, 498 2032- 2033 927, 359 20, 101 881, 205 20, 302
Total $ 3, 050, 000 $ 362, 993 $ 8, 873, 968 $ 1, 54$ 101 $ 6, 010, 445 $ 866, 798 $ 3, 383, 840 $ 524, 764 58 105
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 6: Capital Leases 8 Loans Payable( Continued)
c. Description of the City' s Capital Leases 8 Loans Payable Issues 2016 Lease Agreement — On June 1, 2016, the City entered into a capital lease with the Lathrop Financing Authority ( Authority) for the existing City Hall building, in the amount of $ 4, 190, 000 with a 2. 55% annual interest rate. On the same date, the Authority assigned its rights under the lease agreement to Capital One Public Funding, LLC. The proceeds of the capital lease, together with available funds from the City, were used to advance refund the outstanding 2004 Capital Lease Obligation amounted to $ 6, 640, 000. A total of $ 6, 787, 680 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2004 Capital Lease. As a result, the 2004 Capital Lease was considered defeased and the liability for the 2004 Capital Lease has been removed from the Statement of Net Position as of June 30, 2016. On July 15, 2016, the 2004 Capital Lease Obligation was prepaid fully. This advance refunding reduced the City' s total debt service payments over 15 years by $ 2,901, 765 and obtained an economic gain ( difference between the present values of the debt service payments on the old and new debt) of 950,783. Due to the timing of debt service payments on July 15th of each year, the City prepays the principal and interest.
The 2016 City Hall Lease is secured by the City Hall building at 390 Towne Centre Drive, Lathrop, California. The outstanding lease amount contains a provision that in an event of default, Lathrop Financing Authority may terminate the lease, re- lease all or any portion of the leased property or hoid the City liable for the payment of all base rental obligations and be reimbursed for any deficiency arising out of re-leasing the property. 2017 Bank Loan — On May 18, 2017, the City entered into a loan agreement with Opus Bank, in the amount of $ 11, 455, 000 with a 2. 89% annual interest rate. The purpose of the loan proceeds is to refinance the 2003 Revenue Bonds. A total of 11, 328,241 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2003 Bonds. As a resuit, the 2003 Bonds were considered defeased and the liability for the 2003 Bonds has been removed from the Statement of Net Position as of June 30, 2017. On June 1, 2017, the 2003 Bonds were repaid fully. This refunding reduced the City' s total debt service payments over 15 years by $ 6, 829,468 and obtained an economic gain ( difference between the present values of the debt service payments on the old and new debt) of 3, 857, 309. The interest and principal payments are due June 1 and December 1, commenced December 1, 2017.
State Revolving Fund Loan — The City entered into an agreement with the California Department of Public Health in the amount of $ 10, 929, 000. Funds are for the Water Supply Arsenic Reduction Project. Repayment of this loan started on January 1, 2013. Terms of the note include a twenty- year repayment period and a
2. 3°/a interest rate. Principal and interest payments are to be paid semiannually. The City' s net water system revenues have been pledged for the repayment of debt service on loan.
59 106
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 6: Capital Leases 8 Loans Payable( Continued)
Compass Bank Loan — During fiscal 2011- 12, the City entered into a loan agreement with Compass Bank in the amount of $ 6, 203,000. The proceeds from the loan were used to refund the 2000A Certificates of Participation ( 2000A COPs). Interest on the Compass Loan is payable semi- annually on December 1 and June 1 of each year through the year 2029. Repayment of this loan started on December 1, 2012.
The 2017 Bank Loan and Compass Bank Loan are secured by a pledge of and lien on the net revenues of the Water System. The outstanding loan amount contains a provision that in an event of default, the loan will bear interest at the default rate, a rate of interest equal to the interest rate plus 3 percent and 5 percent respectively or the outstanding loan amount may become immediately due and payable.
The State Revolving Fund Loan is secured by a promissory note. The outstanding loan amount contains a provision that in an event of default, the State can declare the City' s obligation immediately due and payable.
For the fiscal year 2021, net revenues of the Water Enterprise Fund amounted to 4, 024, 353 which represented coverage of 3. 45 over the $ 1, 165, 343 debt service on the 2017 Bank Loan and Compass Bank Loan.
Note 7: Special Assessment Debt Without City Commitment Special Assessment Districts in various parts of the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debt issued by these Districts, but has no direct or contingent liability or moral obligation for the payment of this debt. Therefore, this debt is not included as long-term debt of the City. The outstanding balance of each of these issues as of June 30, 2021 is as follows:
Mossdale Assessment District Refunding 2015 5, 160, 000 Lathrop Financing Authority Special Tax Re enue Bonds
Mossdale Village Reassessment District No. 2013- 1) 2013 8, 595, 000 Lathrop Financing Authority Special Tax Re enue Bonds
Community Facilities No. 2003- 1) 2013 Series A 5, 245, 000 Crossroad Assessment District Series 2015 9, 250, 000
Joint Wastewater Project CFD 2003- 2 5, 175, 000
Lathrop Sanitary Sewer Assessment District No. 1 585, 000 City Hall Refinancing 3, 050, 000
Community Facilities District No. 2018- 1 45, 715, 000 "' The Mossdale Assessment District Refunding 2015 bond issue refunded the Mossdale Village Assessment District No. 03- 1 Series 2005 bond issue.
The Community Facilities District No. 2018- 1 and 2018- 2 bond issues were issued to restructure and extinguish the Communities Facilities District No. 2006- 1. 60 107
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 8: Fund Balances
Detailed classifications of the City' s fund balances, as of June 30, 2021, are below:
Building Other
De eloper Capital Safety& Deeelopment Deeeloper Streets and Goeemmental General Fund Projects Facilities Fee Inspection Engineering Deposits Roads Funds Total Nonspendables:
Items not in spendable fortn:
Prepaid costs 343, 888 $ S S S 343, 888
Aduances to other funds 2, 938, 423 2, 938, 423
Total Nonspendable 3, 282, 311 3, 282, 311
ResVicted for:
Recyling projects
937, 125 937, 125
Community impro ements
4, 232 4, 232
Capital projects 1, 032, 103 41, 492, 902 37, 120, 758 79, 645, 763 Public safety 4, 247, 249 1, 225, 329 5, 472, 578
Traific and transportation 84, 948 84, 948
Parks and recreation
355, 523 355, 523
Streets and roads contracts 4, 591, 332 10, 645, 507 1, 600, 901 16, 837, 740 Measure K
627, 014 627, 014
ToWI ResVicted 1, 032, 103 41, 492, 902 4, 247, 249 4, 591, 332 10, 645, 507 41, 955, 830 103, 964, 923 Commited to:
Contingency/ emergency 7, 045, 537 7, 045, 537
Economic stability 1, 850, 000 1, 850, 000
Capital projects 9, 91Q040 9, 910, 040
Retirementstability 3, 100, 000 3, 100, 000
Waterbonds 747, 725 747, 725
Capital equipment 3, 824, 224 3, 824, 224
Measure C essential city sen.ices 2, 749, 848 2, 749, 848 Economic de elopment 437, 450 437, 450
ToWI Commited 29, 664, 824 29, 664, 824
Unassigned:
Fund deficits 603, 670) 169, 617) $ ( 773, 287)
Residual fund balance 6, 679, 913 6, 679, 913
ToWI Unassigned 6. 679, 913 603, 670) 169, 617) 5, 906, 626 Total Fund Balances 39, 627, 048 $ 1, 032, 103 $ 41, 492, 902 $ 4, 247, 249 $ 4, 591, 332 $ ( 603, 670) $ 10, 645, 507 $ 41, 786, 213 $ 142, 818, 684 a. Minimum Fund Balance Policies
The City Council has established a fund balance reserve policy with the adoption of resolution 10- 3102 that deemed it desirable for the City to retain a contingency reserve level of 50% of the adjusted appropriation for any given year. The reserve balance shall not be reduced below 10% of the General Fund adjust appropriations. The contingency reserve is allocated to two categories, Economic Uncertainty Reserve and Exposure and Emergency Reserves.
The Economic Uncertainty Reserve consists of 75% of the Contingency Reserve Balance. It will be maintained to minimize the effects of major economic uncertainties, including local disasters, State budget deficits and other severe financial hardships or unforeseen changes in revenues and/ or expenditures and will be available for budget stabilization. At June 30, 2021, the Economic Uncertainty Reserve amounted to$ 5, 284, 153.
The Exposure and Emergency Reserves consist of 25% of the Contingency Reserve Balance. Exposure Reserves will be maintained to minimize the immediate financial impact of potential costs not covered by the City' s insurance program, such as claim costs within the City' s deductibles, major costs associate with disasters and other events which wiil not be reimbursable by insurance or Federal or State Government.
Emergency Reserve will be maintained to minimize all unforeseen events not covered in the Economic Uncertainty Reserve and Exposure Reserves. At June 30, 2021, the Exposure and Emergency Reserves amounted to$ 1, 761, 384. 61 108
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 8: Fund Balances ( Continued)
b. Encumbrances
The City utilized an encumbrance system during fiscal year 2021 to assist in controlling expenditures. Under this system, governmental funds are encumbered when purchase orders, contracts, or other commitments are signed or approved. The following are encumbrances at June 30, 2021, that will be carried over to fiscal year 2022:
General Fund 4, 595, 160
Building Safety & Inspection Special Re, enue Fund 792, 228 De elopment Engineering Special Re enue Fund 1, 760, 420 De eloper Deposits Special Re, enue Fund 46, 140
Streets and Roads Capital Projects Fund 4, 200, 167
Non- Major Funds 2, 532, 696
c. Restatement of Fund Balance
During the fiscal year 2021 fieldwork, a prior year audit entry to record a fair value adjustment was determined to be recommended in error. The reversal of this entry required a restatement of $( 797, 177) to correct the fair value adjustment within the General Fund. In addition, the Water Fund net position was restated by $ 146, 817 due to interest not being accrued in previous years.
Note 9: Pension Plan
a. General Information about the Pension Plan
Plan Description — All qualified permanent and probationary employees are eligible to participate in the City' s Miscellaneous Tier I, Tier II and PEPRA Employee Pension Rate Plan. The City's Miscellaneous Rate Plan is part of the public agency cost-sharing multiple- employer defined benefit pension plan ( PERF C), which is administered by the California Public Employees' Retirement System ( CaIPERS). PERF C consists of a miscellaneous pool and a safety pool ( also referred to as " risk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively.
Individual employers may sponsor more than one miscellaneous and safety rate plan.
The employer participates in one cost- sharing multiple- employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS website.
Benefits Provided — CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non- duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
62 109
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 9: Pension Plan ( Continued)
The Plan' s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Miscellaneous
Tier 1 Tier 2 Tier 3
Prior to July 1, 2010 to After
Hire date July 1, 2010 December 31, 2012 December 31, 2012 Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit v+esting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 52
Monthly benefits, as a% of annual salary 1. 426%- 2. 418% 1. 092%- 2. 418% 1. 0%- 2. 5% Required employee contribution rates 7. 00% 7. 00% 6. 75% Required employer contribution rates 10. 484% 8. 794% 7. 732% Required Unfunded Acturarial
Liability Contribution 383, 138 $ 15, 778 $ 9, 133
Beginning in fiscal year 2016, CaIPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability ( UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City' s required contributions for the unfunded liability in the Plan totaled 408, 049, as noted in the table above, which were made under the monthly payment option.
Contributions — Section 20814( c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2021, the City' s total contributions to the Plan were 1, 062, 215.
b. Pension Liabilities, Pension Expenses and Deferred Outflows/ lnflows of Resources Related to Pensions
For purposes of ineasuring the net pension liability and deferred outflows/ inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/ deductions from the Plan' s fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office. For this purpose, benefit payments ( including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 63 110
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 9: Pension Plan ( Continued)
As of June 30, 2021, the city reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Proportionate Share of
Net Pension Liability
Miscellaneous 6, 416, 539
Total Net Position Liability 6, 416, 539
The governmental activities net pension liability is liquidated primarily by the General Fund.
The City' s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City' s proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City' s proportionate share of the net pension liability for the Plan as of June 30, 2019, and 2020 was as follows:
Miscellaneous
Proportion - June 30, 2019 0. 0559%
Proportion - June 30, 2020 0. 0590%
Change - Increase ( Decrease) 0. 0031%
For the year ended June 30, 2021, the City recognized pension expense of$ 1, 463, 169. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of
of Resources Resources
Pension contributions subsequent to measurement date 1, 062, 215 $ Differences between actual and expected experience 330,663 Changes in assumptions 45, 765)
Adjustments due to differences in proportions 443, 795
Difference in proportionate share of contributions 289, 22) Net difference projected and actual imestment earnings 190, 613 Total 2, 027, 286 $ ( 334, 992)
1, 062, 215 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
64 111
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 9: Pension Plan ( Continued)
Year Ended Annual
June 30 Amoritization
2022 132, 627
2023 233, 985
2024 172, 042
2025 91, 425
Actuarial Assumptions — For the measurement period ended June 30, 2020, the total pension liability was determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2020 total pension liability were based on the following actuarial methods and assumptions for all benefit tiers:
All Plans
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry- Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7. 15%
I nflation 2. 50%
Payroll Growth 3. 00%
Projected Salary Increase Varies by Entry Age and Service Investrrient Rate of Return 7. 15%
Mortality Derived usin CaIPERS Membership Data for all Funds z Post Retirement Benefit Increase Contract COLA up to 2. 50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 2. 50% thereafter. 1) Net of pension plan investment and administrative expenses, including inflation. 2) The mortality table used was developed based on CaIPERS' specific data. The table includes 15 years of mortaliry improvements using the 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 CaIPERS demographic data from 1997 to 2015) that can be found on the CaIPERS website.
Discount Rate— The discount rate used to measure the total pension liability for the Plan was 7. 15%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund ( PERF) 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 best- estimate ranges of expected future real rates of return ( expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 65 112
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 9: Pension Plan ( Continued)
In determining the long- term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the 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 for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the expected real rate of return by asset class.
Current Target Real Return Real Return
Asset Class
a
Allocation Years 1 - 10
b
Years 11+
0>
Global Equiiy 50% 4. 80% 5. 98%
Fixed Income 28% 1. 00% 2. 62%
Inflation assets 0. 77% 1. 81%
Private Equiiy 8% 6. 30% 7. 23%
Real assets 13°/ o 3. 75% 4. 93%
Liquidity 1% 0. 92%
Total 100°/a
a) In the CaIPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short- term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
b) An expected inflation of 2. 0% used for this period. c) An expected inflation of 2. 92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1- percentage point higher than the current rate:
Miscellaneous
1% Decrease 6. 15%
Net Pension Liability 10, 526, 474
Current Discount Rate 7. 15%
Net Pension Liability 6, 416, 539
1% Increase 8. 15%
Net Pension Liability 3, 020, 629
66 113
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 9: Pension Plan ( Continued)
Pension Plan Fiduciary Net Position — Detailed information about the pension plan' s fiduciary net position is available in the separately issued CaIPERS financial reports.
Subsequent Event- CaIPERS Pension Contribution Rates — The CaIPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5- year ramp- up and ramp-down on UAL bases attributable to assumption changes and non- investment gains/ losses. The new policy removes the 5- year ramp- down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019. As a result of these changes, the City' s contribution rates for the fiscal year ended June 30, 2021 are expected to increase over the fiscal year 2021 contribution rates.
Note 10: Other Post- Employment Benefits
a. General Information about the City' s Other Post- Employment Benefit( OPEB) Plan Plan Description — The City' s Post — Employment Benefit Plan is an agent multiple- employer defined benefit OPEB plan.
By resolution and through agreements with its labor units, the City provides certain health care benefits for retired employees. The City in the CaIPERS health care plan, which is governed under the California Public Employees Health and Medical Care Act PEMCHA). The City also participates in the California Employers Retirees Benefit Trust CERBT), an irrevocable trust established to fund OPEB. CERBT is an agent multiple- employer defined benefit other postemployment benefits plan administrated by CaIPERS, and is managed by an appointed board not under the control of the City Council. CERBT consists of participating employers of the State of California and public agencies. Individual employers may establish more than one plan.
The CERBT was established by Chapter 331 of the 1988 California Statutes, and employers e ect to participate in the CERBT to pre- fund health, dental, and other non- pension postemployment benefits for their retirees and survivors. The CERBT has pooled administrative and investment functions, while separate employer accounts are maintained to prefund and pay for health care or other postemployment benefits in accordance with the terms of the participating employers' plans. There are three CaIPERS Board approved investment strategies for employers to choose from depending on their expected levels of return and volatility. Benefit provisions are established by participating employers.
The CERBT Trust is not considered a component unit by the City and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at P. O. Box 942709, Sacramento, CA 94229- 2709.
67 114
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Other Post- Employment Benefits ( Continued)
Benefits Provided — The following is a summary of Plan benefits by employee group as of June 30, 2021:
Benefit Prior to Retiree' s( or Surviving Spouse' s) Benefit After Retiree' s( or Surviving Tier Hire Date Retirement Date Eligibiliry Eligibility for Medicare Spouse' s) Eligibility for Nledicare Benefit accourding to previous Unequal PEMHCA Resolution( i. e., no change for this group).
Before On or before Age 50 within 5 years 100% of premium for The retiree and any eligible covered dependents, up to$ 1, 536 per monih in 7/ 1/ 2014 12/ 31/ 2014 of PERS service 2018, increasing by$ 100 each calendar year until such 6me as it is equal ro active employee per month in each City contribution.
Age 50 within 5 years pEMHCA Minimum Employer Contribution( MEC) z
Before
After 12/ 31/ 2014
of PERS service PEMHCA Minimum Employer Contribution
7/ 1/ 2014 Age 55 within 5 years 100% of the premium for retiree plus one up to the MEC) of PERS service monthly cap for active employees*
Age 50 within 5 years pEMHCA Minimum Employer Contribution( MEC) of PERS service
100% of the premium for retiree and dependants, up
2 After
A
to the following percantages of the monthly cap for pEMHCA IVbnimum Employer Contribution 7- 1- 2014
Y
Age 55 within 5 years active employees' S years MEC)
of PERS service of service: 25% 10 years
of service: 50% 15 years of
service: 100%
In 2020, the City contributes a maximum of $ 1. 755 per month toward medical coverage for active employees and their dependents. This amount will increase annually by 50% of premium increase for the median cost medical plan, not to exceed
5. 5% per year.
For the year ended June 30, 2021, the City' s contributions to the Plan were 435, 328, which were comprised of contributions to the trust of $ 361, 138 and implicit subsidy payments of$ 74, 690.
Employees Covered by Benefit Terms — Membership in the plan consisted of the following at the measurement date of June 30, 2021:
Acti e Employees 79
Inacti, e employees or beneficiaries currently receiving benefits 22 Inacti e employees entitled to but not yet receiving benefits 6 Total 107
68 115
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Other Post- Employment Benefits ( Continued)
b. Net OPEB Liability
Actuarial Methods and Assumptions — The City' s net OPEB liability was measured as of June 30, 2020 the total OPEB liability was determined by an actuarial valuation dated June 30, 2019. These are the following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry- Age Normal Cost, le, el percent of pay Actuarial Assumptions:
Discount Rate 6. 80%
Inflation 2. 50%
Payroll Growth 3. 00%
Irnestment Rate of Return 6. 80°/o
Mortality Rate MacLeod Watts Scale 2018 applied generationally from 2015 Healthcare Trend Rate 7. 00% and grade down to 4% for years 2076 and thereafter Demographic actuarial assumptions used in this valuation are based on the 2014 experience study of the California Public Employees Retirement System using data from 1997 to 2011, except for a different basis used to project future mortality improvements. Mortality rates used were the published CaIPERS rates, adjusted to back out 20 years of Scale BB to central year 2008.
The long- term expected rate of return on OPEB plan investments was determined using a building- block method in which best- estimate ranges of expected future real rates of return ( expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target
Asset Class Allocation
Global Equity 59%
Fixed Income 25%
Treasury Inflation Protection Securities 5%
Real Estate Inv estment Trusts 8%
Commodities 3%
Total 100%
Change of Assumptions — For the measurement date of June 30, 2020, there were no changes in assumptions.
69 116
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Other Post- Employment Benefits ( Continued)
Discount Rate — The discount rate used to measure the total OPEB liability was 6. 80%.
The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan' s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long- term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
c. Changes in Net OPEB Liability
The changes in the total OPEB liability follows:
Increase( Decrease)
Plan Fiduciary Net OPEB
Total OPEB Net Position Liability/( Asset
Liability ( a) b) c) _ ( a)-( b)
Balance at Measurement Date 6/ 30/ 2019 5,432,650 $ 4, 277, 782 $ 1, 154, 868 Changes Recognized for the Measurement Period:
Service Cost 247, 448 247, 448
Interest on the total OPEB liability 372, 499 372, 499
Expected irn,estment income 293,607 293, 607)
Contributions from the employer 486, 383 486, 383)
Changes in benefit terms
Administrati e expenses 2, 094) 2, 094
Other Expenses ( one time)
Benefit payments 404, 342) 404, 342)
Changes of assumptions
Plan experience
Irnestment experience 142,434) 142, 434
Net changes 215,605 231, 120 15, 515)
Balance at Measurement Date 6/ 30/ 2020 5, 648, 255 $ 4, 508, 902 $ 1, 139, 353 d. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1- percentagepoint lower( 5. 80%) or 1- percentage- point higher( 7. 80%) than the current discount rate:
Net OPEB Liability/( Asset)
Discount Rate Discount Rate Discount Rate
1% ( 5. 80%) 6. 80%) 1% ( 7. 80%)
1, 717, 126 $ 1, 139, 353 $ 643, 724
70 117
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Other Post- Employment Benefits ( Continued)
The following presents the net OPEB liability of the City, as well as what the City' s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage- point lower or 1- percentage- point higher than the current healthcare cost trend rates:
Net OPEB Liability/( Asset)
Healthcare Cost Trend Rates
1% Decrease Current Rate 1% Increase
573, 906 $ 1, 139, 353 $ 1, 809, 810
e. OPEB Expenses and Deferred Outflows/ Inflows of Resources Related to OPEB For purposes of ineasuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City' s OPEB Plan and additions to/ deductions from the OPEB Plan' s fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
For the year ended June 30, 2021, the City recognized OPEB expense of $ 554,388. At June 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of
of Resources Resources
Employer Contributions made subsequent to the measurement date $ 435, 328 $ Differences between actual and expected experience 332, 655) Changes in assumptions 22, 286 48, 425)
Net differences projected and actual earnings on plan im,estments 113, 009 Total 570, 623 $ ( 381, 080)
435, 328 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Ended Annual
June 30, Amoritization
2022 53, 718)
2023 35, 177)
2024 29, 628)
2025 39, 196)
2026 45, 812)
Thereafter 42, 254)
Total 245, 785)
71 118
CITY OF LATHROP
NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 11: Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Central San Joaquin Valley Risk Management Authority ( CSJVRMA), a public entity risk poor currently operating as a common risk management and insurance program for 55 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby reducing its expense.
The City' s deductibles and maximum coverage follows:
Co erage Deductible CSJVRMA Excess Liability ERMA
Workers Compensation 25, 000 $ 500, 000 Statutory Limits $ General and automobile liability 25, 000 1, 000, 000 $ 54, 000, 000 Property damage 5, 000 or 10, 000 25, 000 1, 000, 000, 000 High value auto program 2, 000 10, 000 or 50, 000 1, 000, 000, 000 Boiler and machinery Various 1, 000, 000, 000
Employment Practices Liability 25, 000 2, 000, 000 1, 000, 000 The City contributes its pro rata share of anticipated losses to a pool administered by CSJVRMA. Should actual losses among participants be greater than the anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess. The City paid CSJVRMA premiums and ERMA premiums totaling $ 1, 078, 841 during the fiscal year ended June 30, 2021. Settled claims have not exceeded commercial excess liability coverage in any of the past three fiscal years.
The City is also a member of Employment Risk Management Authority ( ERMA), which covers wrongful employment practices.
The City did not record a liability for outstanding claims at fiscal year- end, as the claims were minimal.
Note 12: Commitments and Contingencies
The City participates in several Federal and State grant programs. These programs are subject to audits by the City' s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances have been proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no other pending litigation, which is likely to have a material adverse effect on the financial position of the City.
Note 13: Subsequent Event
In November 2021, the City settled disputed Police overhead charges with the County of San Joaquin in the amount of$ 1, 246, 673. The amount has been accrued in these financial statements.
72 119
REQUIRED SUPPLEMENTARY INFORMATION
73 120
CITY OF IATHROP
COST SHARING MULTIPLE EMPLOYER PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS( 1)
2015 2016 2017 2018
Miscellaneous Rate Plan
Rate Plan' s Proportion of the Net Pension Liability 0. 05770% 0. 04556% 0. 04980% 0. 05243% Rate Plan' s Proportionate Share of the Net Pension Liability 3, 590, 219 $ 3, 127, 249 $ 4, 309,662 $ 5, 199, 968 Rate Plan' s Covered Payroll 4, 501, 607 $ 4, 364, 310 $ 5, 148, 017 $ 5, 568, 372 Rate Plan' s Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 79. 75% 71. 66% 83. 71% 93. 38% The Pension Plan' s( PERF- C) Fiduciary Net Position as a Percentage of the Total Pension Liability 79. 82% 78. 40% 74. 06% 73. 31% Notes to Schedule:
Benefit Chanaes: There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2016. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit( a. k. a.
Golden Handshakes).
Chanaes of Assumqtions: In 2019, 2020 and 2021 there were no changes. 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7. 65 percent to 7. 15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7. 5 percent( net of adminstrative expense) to 7. 65 percent( without a reduction for pension plan adminstrative expense.) In 2014, amount reported were based on the
7. 5 percent discount rate.
1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.
74 121
2019 2020 2021
0. 05269% 0. 05586% 0. 05897%
5, 077, 307 $ 5, 723, 799 $ 6, 416,539
6, 004, 176 $ 6, 384, 728 $ 6, 808, 162
84. 56% 89. 65% 94. 25%
75. 26% 7526% 75. 10%
75 122
CITY OF LATHROP
COST SHARING MULTIPLE- EMPLOYER PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS( 1)
2015 2016 2017 2018
Miscellaneous Rate Plan
Actuarially Determined Contribution 523, 329 $ 369, 225 $ 434,033 $ 465, 746 Contribution in Relation to the Actuarially Determined Contribution 523, 329) 369, 225) 434, 033) 465, 746) Contribution Deficiency( Excess)
Covered Payroll 4, 364, 310 $ 5, 148, 017 $ 5, 568, 372 $ 6, 004, 176 Contributions as a Percentage of Covered Payroll 11. 99% 7. 17% 7. 79% 7. 76% 1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.
Note to Schedule:
Valuation Date: June 30, 2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal cost method
Amortization method/ period Level percentage of pay, a summary of the current policy is provided in the table below:
Source
GainuLoss pssumptionf Method
pr Investment Nan-irrvestment Cha Bene t Ch Galden Handshake Amortization Period 30 years 30 Years 2Q Years 20 Years 5 Years Escalatian Rate
Actiw: Plans 2750°b 2750°!a 2 750°!0 2750? 0 2 756° k
Inactiae Plans 0°h 0° O 446 0° 0°h
P P 5 5 5 0 Q
Ramp Down 5 5 5 0 0
Assets valuation method Market Value
Inflation 2. 63%
Salary Increases Varies by Entry age and Service
Payroll Growth 2. 88%
Investment rate of return 725%, net of pension plan investment expenses, including inflation.
Retirement age The probabilities of Retirement are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015
Mortality The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of scale MP- 2016 published by the Society of Actuaries 76 123
2019 2020 2021
766, 989 $ 917, 576 $ 1, 062,215
766, 989) 917, 576) 1, 062,215)
6, 384, 728 $ 6, 808, 162 $ 7, 021, 189
12. 01% 13. 48% 15. 13%
77 124
CITY OF LATHROP
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS( 1)
2018 2019 2020 2021
Tofal OPEB Liability
Service cost 228, 075 $ 231, 377 $ 238, 897 $ 247,448
Interest on the total OPEB liability 366, 257 359, 416 378, 925 372, 499 Differences between expected and actual experiences 430, 189) 134, 660) Changes in assumptions 42, 010 62, 441)
Benefit payments 299, 940) 314, 423) 324, 785) 404, 342) Net change in total OPEB liability 93, 787) 276,370 95,936 215, 605 Total OPEB liability- beginning 5, 154, 131 5, 060, 344 5,336, 714 5, 432, 650 Total OPEB liability- ending( a) 5, 060,344 5, 336, 714 5, 432, 650 5, 648, 255 Plan Fiduciary Net Position
Contributions- employer 471, 077 495, 719 459, 510 486, 383 Net investment income 307, 578 276, 193 230, 777 151, 173 Benefit payments 299, 940) 314, 423) 324, 785) 404, 342) Otherexpense 4, 582)
Administrative expense 1, 576) 1, 813) 825) 2, 094)
Net change in plan fiduciary net position 477, 139 451, 094 364,677 231, 120 Plan fiduciary net position- beginning 2,984,872 3, 462,011 3, 913, 105 4, 277, 782 Plan fiduciary net position- ending( b) 3, 462, 011 3, 913,105 4, 277,782 4, 508, 902 Net OPEB Liability- ending( a)-( b) 5 1, 598, 333 $ 1, 423,609 $ 1, 154,868 S 1, 139, 353 Plan fiduciary net position as a percentage of the total OPEB liability 68. 41% 73. 32% 78. 74% 79. 83% Covered- employee payroll 5, 982, 337 $ 6, 377, 387 $ 6, 358, 722 $ 6, 549, 484 Net OPEB liability as a percentage of covered- employee payroll 26. 72% 22. 32% 18. 16% 17. 40% 1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 7$
125
CITY OF LATHROP
SCHEDULE OF OPEB CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS( 1)
2018 2019 2020 2021
Actuarially Determined Contribution 389, 509 $ 359, 460 $ 369, 969 $ 361, 138 Contribution in Relation to the Actuarially Determined Contnbutions 495,719) 459, 510) 396, 085) 435, 828) Contribution Deficiency( Excess) 106, 210) $ ( 100, 050) $ ( 26, 116) $ ( 74, 690) Covered- employee payroll 6, 377, 387 $ 6, 358, 722 $ 6, 549, 484 $ 7, 838, 544 Contributions as a percentage of covered- employee payroll 7. 77°/ 7. 23% 6. 05% 5. 56% 1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contribution for fiscal year 2021 were from the June 30, 2019 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market value
Discount rate 6. 70%
Inflation Z. S°
Salary increases 3. 00% annually
Mortality Rate' Derived using CaIPERS' membership data for all Pre- Retirement Turnover`* Derived using CaIPERS' membership data for all Healthcare Trend Rate Medical plan premiums are assumed to increase at somewhat higher rates than assumed in the prior valuation, with the ultimate trend of 5. 0% per year.
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CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
GENERALFUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 14, 215, 000 $ 18, 715, 256 $ 26, 126, 244 $ 7, 410, 988 Licenses and permits 218, 006 218, 006 296, 475 78,469
Intergovernmental 2, 010, 000 2, 310, 000 2, 827, 889 517, 889 Charges for services 172, 564 172, 564 351, 155 178, 591 Use of money and property 175, 000 175, 000 57, 203 117, 797) Fines and forfeitures 85, 000 85, 000 204, 959 119, 959 Miscellaneous 91, 600 98, 200 495, 831 397, 631
Total Revenues 16, 967, 170 21, 774, 026 30, 359, 756 8, 585, 730 Expenditures
Current:
General Government
City council 62, 985 73, 485 54, 960 18, 525
City manager 927, 636 1, 010, 328 830, 655 179, 673
City clerk 290, 366 329, 587 319, 135 10, 452
City attorney 638, 164 740, 857 649, 243 91, 614
Personnel 365, 064 370, 064 353, 801 16, 263
Central services 500,210 602, 929 587, 614 15, 315
Finance 1, 507, 675 1, 731, 771 1, 457, 470 274, 301
Information systems 1, 431, 340 1, 797, 949 1, 765, 081 32, 868 Animal control 336, 487 376, 487 223, 422 153, 065
Total General Government 6, 059, 927 7, 033, 457 6, 241, 381 792, 076 Public Safety
Administration 8, 735, 380 10, 346, 190 8, 240, 579 2, 105, 611 Total Public Safety 8, 735, 380 10, 346, 190 8, 240, 579 2, 105, 611 Community Development
Planning 1, 282, 669 2, 753, 677 1, 151, 959 1, 601, 718 Total Community Development 1, 282, 669 2, 753, 677 1, 151, 959 1, 601, 718 Culture and Leisure
Administration 371, 542 401, 078 348, 807 52, 271
Seniorcenter 149, 806 149, 806 111, 554 38, 252
Recreation programs 76, 370 76, 370 49, 811 26, 559
Special events 127, 186 127, 186 87, 843 39, 343
Day camp kid' s club 576, 389 723, 389 499, 061 224, 328 Youth and adult sports 324, 054 324, 054 188, 746 135, 308 Total Culture and Leisure 1, 625, 347 1, 801, 883 1, 285, 822 516, 061 See Notes to Required Supplementary Information. Q
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CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
GENERALFUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Public works
Administration 706, 042 776, 171 629, 908 146, 263
City hall 282, 795 452, 711 279, 727 172, 984
Utility engineering 242, 745 246, 545 231, 504 15, 041
Code compliance 286, 075 523, 475 249, 764 273, 711
Building maintenance 273, 799 390, 159 281, 567 108, 592 Park and landscape maintenance 410, 764 586, 455 380, 944 205, 511 Total Public Works 2, 202, 220 2, 975, 516 2, 053, 414 922, 102 Capital outlay 185, 000 236, 460 68, 849 167, 611
Debt service:
Principal 300, 000 300,000 300, 000
Interest 81, 600 81, 600 81, 600
Total Debt Service 381, 600 381, 600 381, 600
Total Expenditures 20, 472, 143 25, 528, 783 19, 423, 604 6, 105, 179 Other Financing Sources( Uses):
Transfers in 5, 554, 581 5, 414, 840 4, 743, 526 671, 314) Transfers out 2, 329, 662) ( 15, 980, 567) ( 15, 311, 350) 669,217 Total Other Financing Sources( Uses) 3, 224, 919 ( 10, 565, 727) ( 10, 567, 824) 2, 097) Net Change in Fund Balances 280, 054) ( 14, 320, 484) 368, 328 2, 478, 454 Fund Balances, Beginning of Year, as restated 39, 258, 720 39, 258, 720 39, 258, 720 Fund Balances, End of Year 38, 978, 666 $ 24, 938, 236 $ 39, 627, 048 $ 2,478,454 See Notes to Required Supplementary Information.
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CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEVELOPER PROJECTS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property
34, 656 $ 34, 656
Developer participation 150, 000 2, 223, 078 2, 712, 202 489, 124 Total Revenues 150, 000 2, 223, 078 2, 746, 858 523, 780 Other Financing Sources( Uses):
Transfers out 151, 263) ( 2, 338, 911) ( 2, 100, 141) 238, 770 Tota'I Other Financing Sources( Uses) 157, 263) ( 2, 338, 911) ( 2, 100, 141) 238, 770 Net Change in Fund Balances 1, 263) 115, 833) 646, 717 762, 550 Fund Balances, Beginning of Year 385, 386 385, 386 385, 386 Fund Balances, End of Year 384, 123 $ 269, 553 $ 1, 032, 103 $ 762, 550 See Notes to Required Supplementary Information. 82
129
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
CAPITAL FACILITY FEES
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 9, 416, 748 $ 9, 416, 748 $ 20, 093, 761 $ 10, 677, 013 Use of money and property 268, 998 268, 998
Total Revenues 9, 416, 748 9, 416, 748 20, 362, 759 10, 946, 011 Expenditures
Current:
Public works 243, 763 243, 763
Total Expenditures 243, 763 243, 763
Other Financing Sources( Uses)
Transfers out 5, 881, 425) 9, 965, 025) 9, 925, 031) 39, 994 Total Other Financing Sources( Uses) 5, 881, 425) 9, 965, 025) 9, 925, 031) 39, 994 Net Change in Fund Balances 3, 535, 323 792, 040) 10, 193, 965 10, 986, 005 Fund Balances, Beginning ofYear 31, 298, 937 31, 298, 937 31, 298, 937 Fund Balances, End of Year 34, 834, 260 $ 30, 506, 897 $ 41, 492, 902 $ 10, 986, 005 See Notes to Required Supplementary Information. 83
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CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL BUILDING SAFETY 8 INSPECTION
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Licenses and permits 954, 803 $ 954, 803
Charges for services 2, 119, 655 2, 119, 655 3, 979, 978 1, 860, 323 Use of money and property 42, 751 42, 751
Miscellaneous 8, 188 8, 188
Total Revenues 2, 119, 655 2, 119, 655 4,985, 720 2, 866, 065 Expenditures
Current:
Publicworks 1, 702, 473 3, 400, 128 2, 066, 007 1, 334, 121 Total Expenditures 1, 702, 473 3, 400, 128 2, 066, 007 1, 334, 121 Other Financing( Uses)
Transfers out 405, 400) 364, 287) 364, 287)
Total Other Financing( Uses) 405, 400) 364, 287) 364, 287) Net Change in Fund Balances 11, 782 1, 644, 760) 2, 555, 426 4, 200, 186 Fund Balances, Beginning ofYear 1, 691, 823 1, 691, 823 1, 691, 823 Fund Balances, End of Year 1, 703, 605 $ 47, 063 $ 4, 247, 249 $ 4, 200, 186 See Notes to Required Supplementary Information. 84
131
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
DEVELOPMENT ENGINEERING
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Chargesforservices 2, 381, 999 $ 2, 381, 999 $ 3, 817, 841 $ 1, 435, 842 Use of money and property 41, 894 41, 894
Miscellaneous 24, 748 24, 748
Total Revenues 2, 381, 999 2, 381, 999 3, 884,483 1, 502, 484 Expenditures
Current:
Public works 2, 429, 841 3, 998, 701 2, 208, 426 1, 790, 275 Total Expenditures 2, 429, 841 3, 998, 701 2, 208, 426 1, 790, 275 Net Change in Fund Balances 47, 842) 1, 616, 702) 1, 676, 057 3, 292, 759 Fund Balances, Beginning of Year 2, 915,275 2, 915, 275 2, 915, 275 Fund Balances, End of Year 2, 867,433 $ 1, 298,573 $ 4, 591, 332 $ 3, 292, 759 See Notes to Required Supplementary Information. 85
132
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
DEVELOPER DEPOSITS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 31, 500 $ 31, 500 $ 12, 644 $ 18, 856) Developer participation 733, 688 3, 303, 266 4, 883, 345 1, 580, 079 Total Revenues 765, 188 3, 334, 766 4, 895, 989 1, 561, 223 Expenditures
C u rrent:
Public works 605,334 3, 236, 222 2, 957, 572 278, 650
Debt service:
Interest and fiscal charges 159, 854 159, 854 159, 854
Total Expenditures 765, 188 3, 396, 076 3, 117, 426 278, 650 Net Change in Fund Balances 61, 310) 1, 778, 563 1, 839, 873 Fund Balances( Deficits), Beginning of Year 2, 382, 233) 2, 382, 233) 2, 382, 233) Fund Balances( Deficits), End of Year 2, 382, 233) $ ( 2, 443, 543) $ ( 603, 670) $ 1, 839, 873 See Notes to Required Supplementary Information. gg
133
CITY OF LATHROP
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021
Budgets and Budgetary Accounting
The City establishes annual budgets for the General and certain Special Revenue Funds, which are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The budgets for the General and certain Special Revenue Funds are the only legally adopted budgets. Budgets for the Capital Project Funds are used for management and control purposes only. All appropriations remaining at fiscal year- end lapse. Budgeted amounts are reflected after all applicable amendments and revisions.
The legal level of control ( level at which expenditures may not legally exceed budget appropriations) is at the department level. If the expenditures exceed the appropriations, the City Manager is authorized to transfer budgeted amounts between the line items within any department or between divisions within a department.
During the fiscal year, the City made a number of supplemental budget amendments totaling 18, 910, 421 in revenues and $ 48, 394, 966 in expenditures.
Adopted Budgets
For the fiscal year ending June 30, 2021, the Historic Lathrop Loan Program ( HLLP), the Central Lathrop Specific Plan ( CLSP) Services CFD, the North Lathrop Transportation, the Lathrop Land Acquisitions, the DWR Grant— ULOP Project, The Stewart Economic Dev Fee 80% and the TOT Trust Special Revenue Funds did not adopt an annual budget. 87 134
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88 135
SUPPLEMENTAL INFORMATION
89 136
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90 137
GENERALFUND
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 General Fund is comprised of the following:
GENERAL PURPOSE FUND
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
ECONOMIC DEVELOPMENT FUND
To account for small business assistance grants approved by Council. The fund was reactivated in fiscal year 2020 due to the impacts of COVID- 19.
MEASURE C ESSENTIAL CITY SERVICES FUND
To account for revenue and expenditures for the city's Measure C Essential City Services portion. 91 138
CITY OF LATHROP
GENERALFUND
COMBINING BALANCE SHEET
JUNE 30, 2021
General Economic
Purpose Fund Development Measure C Totals
Assets:
Cash and investments 33, 202, 282 $ 437, 434 $ 1, 321, 886 $ 34, 961, 602 Receivables:
Accounts 2, 957, 300 16 1, 846, 323 4, 803, 639
Accrued interest 10, 408 2, 078 12, 486
Prepaid costs 343, 888 343, 888
Due from otherfunds 903, 148 903, 148
Advances to other funds 2, 938, 423 2, 938, 423
Total Assets 40, 355, 449 $ 437, 450 $ 3, 170, 287 $ 43, 963, 186 Liabilities and Fund Balances
Liabilities:
Accounts payable 2, 059, 930 $ 420, 439 $ 2, 480, 369
Accrued liabilities 468, 087 468, 087
Unearned revenues 710, 235 710, 235
Deposits payable 677, 447 677, 447
Total Liabilities 3, 975, 699 420, 439 4, 336, 138
Fund Balances:
Nonspendable 3, 282, 311 3, 282, 311
Committed 26, 477, 526 437, 450 2, 749, 848 29, 664, 824 Assigned
Unassigned 6, 679, 913 6, 679, 913
Total Fund Balances 36, 439, 750 437, 450 2, 749, 848 39, 627, 048 Total Liabilities and Fund Balances 40, 355, 449 $ 437, 450 $ 3, 170, 287 $ 43, 963, 186 92 139
CITY OF LATHROP
GENERALFUND
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2021
General Purpose Economic
Fund Development Measure C Totals
Revenues:
Taxes and assessments 17, 769, 875 $ 8, 356, 369 $ 26, 126, 244 Licenses and permits 296, 475 296, 475
Intergovernmental 2, 827, 889 2, 827, 889
Chargesforservices 351, 155 351, 155
Use of money and property 11, 375 1, 430 44, 398 57, 203 Fines and forfeitures 204, 959 204, 959
Miscellaneous 495, 831 495, 831
Total Revenues 21, 957, 559 1, 430 8, 400, 767 30, 359, 756 Expenditures:
Current:
General government 6, 241, 381 6, 241, 381
Public safety 5, 990, 934 2, 249, 645 8, 240, 579
Community development 831, 959 320, 000 1, 151, 959
Culture and leisure 1, 285, 822 1, 285, 822
Public works 2, 053, 414 2, 053, 414
Capital outlay 63, 277 5, 572 68, 849
Debt service:
Principal retirement 300, 000 30Q000
Interest and fiscal charges 81, 600 81, 600
Total Expenditures 16, 848, 387 320, 000 2, 255, 217 19, 423, 604 Excess( Deficiency) of Revenues
Over( Under) Expenditures 5, 109, 172 318, 570) 6, 145, 550 10, 936, 152 Other Financing Sources( Uses):
Transfers in 4, 678, 526 65, 000 4, 743, 526
Transfers out 6, 425, 528) 318, 571 9, 204, 393) 15, 311, 350) Total Other Financing Sources
Uses) 1, 747, 002) 383, 571 9, 204, 393) 10, 567, 824)
Net Change in Fund Balances 3, 362, 170 65, 001 3, 058, 843) 368, 328 Fund Balances, Beginning of Year 33, 874, 757 372, 449 5, 808, 691 40, 055, 897 Restatements 797, 177) 797, 177)
Fund Balances, Beginning of Year, as Restated 33, 077, 580 372, 449 5, 808, 691 39, 258, 720 Fund Balances, End of Year 36, 439, 750 $ 437, 450 $ 2, 749, 848 $ 39, 627, 048 93 140
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
GENERAL PURPOSE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 9, 715, 000 $ 10, 415, 000 $ 17, 769, 875 $ 7, 354, 875 Licenses and permits 218, 006 218, 006 296, 475 78, 469 Intergovernmental 2, 010, 000 2, 310, 000 2, 827, 889 517, 889 Charges for services 172, 564 172, 564 351, 155 178, 591 Use of money and property 175, 000 175, 000 11, 375 163, 625) Fines and forfeitures 85, 000 85, 000 204, 959 119, 959 Miscellaneous 91, 600 98, 200 495, 831 397, 631
Total Revenues 12, 467, 170 13, 473, 770 21, 957, 559 8,483, 789 Expenditures
Current:
General Government
City council 62, 985 73, 485 54, 960 18, 525
City manager 927, 636 1, 010, 328 830,655 179, 673
City clerk 290, 366 329, 587 319, 135 10, 452
City attorney 638, 164 740, 857 649,243 91, 614
Personnel 365, 064 370, 064 353, 801 16, 263
Central services 500, 210 602, 929 587, 614 15, 315
Finance 1, 507, 675 1, 731, 771 1, 457, 470 274, 301
Information systems 1, 431, 340 1, 797, 949 1, 765, 081 32, 868 Animal control 336, 487 376, 487 223, 422 153, 065
Total General Government 6, 059, 927 7, 033, 457 6, 241, 381 792, 076 Public Safety
Administration 6, 154, 426 6, 840, 556 5, 990, 934 849, 622 Total Public Safety 6, 154, 426 6, 840, 556 5, 990, 934 849, 622 Community Development
Planning 1, 282, 669 2, 433, 677 831, 959 1, 601, 718
Total Community Development 1, 282, 669 2, 433, 677 831, 959 1, 601, 718 Culture and Leisure
Administration 371, 542 401, 078 348, 807 52, 271
Senior center 149, 806 149, 806 111, 554 38,252
Recreation programs 76, 370 76, 370 49, 811 26, 559
Special events 127, 186 127, 186 87, 843 39, 343
Day camp kid' s club 576, 389 723, 389 499, 061 224, 328 Youth and adult sports 324, 054 324, 054 188, 746 135, 308 Total Culture and Leisure 1, 625, 347 1, 801, 883 1, 285, 822 516, 061 94 141
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
GENERAL PURPOSE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Public works
Administration 706, 042 776, 171 629, 908 146, 263
City hall 282, 795 452, 711 279, 727 172, 984
Utilityengineering 242, 745 246, 545 231, 504 15, 041
Code compliance 286, 075 523, 475 249, 764 273, 711
Building maintenance 273, 799 390, 159 281, 567 108, 592 Park and landscape maintenance 410, 764 586, 455 380, 944 205, 511 Total Public Works 2, 202, 220 2, 975, 516 2, 053, 414 922, 102 Capital outlay 185, 000 230, 887 63, 277 167, 610
Debt service:
Principal 300, 000 300, 000 300, 000
Interest 81, 600 81, 600 81, 600
TotalDebtService 381, 600 381, 600 381, 600
Total Expenditures 17, 891, 189 21, 697, 576 16, 848, 387 4,849, 189 Other Financing Sources( Uses):
Transfers in 5, 554, 581 5, 349, 840 4, 678, 526 671, 314) Transfers out 85, 671) ( 6, 635, 671) 6, 425, 528) 210, 143 Total Other Financing Sources( Uses) 5, 468, 910 ( 1, 285, 831) 1, 747, 002) 461, 171) Net Change in Fund Balances 44, 891 ( 9, 509, 637) 3, 362, 170 3, 173, 429 Fund Balances, Beginning of Year, as restated 33, 077, 580 33, 077, 580 33, 077, 580 Fund Balances, End of Year 33, 122, 471 $ 23, 567, 943 $ 36,439, 750 $ 3, 173, 429 95 142
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 1, 430 $ 1, 430
Total Revenues 1, 430 1, 430
Expenditures
Current:
Community Development
Planning 320, 000 320, 000
Total Community Development 320, 000 320, 000
96 143
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
ECONOMIC DEVEIOPMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Total Expenditures 320, 000 320, 000
Other Financing Sources( Uses):
Transfers in 65, 000 65, 000
Transfers out 318, 571 318, 571
Total Other Financing Sources( Uses) 65, 000 383, 571 318, 571 Net Change in Fund Balances 255, 000) 65, 001 320, 001
Fund Balances, Beginning of Year 372, 449 372, 449 372,449 Fund Balances, End of Year 372, 449 $ 117, 449 $ 437, 450 $ 320, 001 97 144
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
MEASURE C
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 4, 500, 000 $ 8, 300, 256 $ 8, 356, 369 $ 56, 113 Use of money and property 44, 398 44, 398
Total Revenues 4, 500, 000 8, 300, 256 8, 400, 767 100, 511 Expenditures
Current:
Public Safety
Administration 2, 580, 954 3, 505, 634 2, 249, 645 1, 255, 989 Total Public Safety 2, 580, 954 3, 505, 634 2, 249, 645 1, 255, 989 98 145
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
MEASURE C
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Capital outlay 5, 573 5, 572 1
Total Expenditures 2, 580,954 3, 511, 207 2, 255, 217 1, 255, 990 Other Financing Sources( Uses):
Transfers out 2, 243, 991) ( 9, 344, 896) 9, 204, 393) 140, 503 Total Other Financing Sources( Uses) 2, 243, 991) ( 9, 344, 896) 9, 204, 393) 140, 503 Net Change in Fund Balances 324, 945) ( 4, 555, 847) 3, 058, 843) 1, 014, 976) Fund Balances, Beginning of Year 5, 808, 691 5, 808, 691 5, 808, 691 Fund Balances, End of Year 5, 483, 746 $ 1, 252, 844 $ 2, 749, 848 $ ( 1, 014,976) 99 146
NON - MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
These funds account for the proceeds derived from specific revenue sources that are legally restricted to expenditures for specified purposes.
LANDSCAPE MAINTENANCE FUND
To account for revenues received and expenditures spent associated with specific park maintenance and operations of the Woodfield Landscape, Stonebridge Landscape and Mossdale Landscape Districts.
GAS TAX FUND
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code, Sections 2105, 2106, 2107, and 2107. 5 of the State of California. Expenditures for administration, maintenance, and construction must be street related.
TRAFFIC SAFETY FUND
To account for the fines and forFeitures received under Section 1463 of the Penal Code. These funds are restricted for the use of official traffic control devices and for some street construction purposes.
LOCAL STREET FUND
To account for revenues and expenditures for the City' s street division.
PUBLIC NUISANCE FUND
To account for revenues and expenditures for code enforcement activities.
MEASURE K FUND
To account for revenues generated from a 2- cent sales tax for local street repairs. These funds are restricted for maintenance and construction on street- related projects.
TRANSIT LTF FUND
To account for local transportation funds received for transit purposes from the San Joaquin County Council of Governments.
STREETS AND ROADS FUND
To account for local transportation funds received for street and road purposes from the San Joaquin County Council of Governments.
FEDERAL GRANT FUND
To account for federal grant expenditures and activity.
HISTORIC LATHROP LOAN PROGRAM ( HLLP) FUND
To account for building permit loans granted to Historic Lathrop residences. 100
147
NON - MAJOR GOVERNMENTAL FUNDS ( Continued)
STORM DRAIN FUND
To account for revenues and expenditures related to the maintenance and operations of storm drains and improvements within the created district.
STREET LIGHT FUND
To account for revenues and expenditures associated with the maintenance and operations of the street lighting within the area known as City Zone 2, which is in the City Wide Landscaping and Lighting Assessment District.
A6939 RECYCLING FUND
To account for the financial resources associated with the preparation, implementation, and administration of the City' s Integrated Solid Waste Management Plan in accordance with AB939.
COMMUNITY DEVELOPMENT BLOCK GRANT( CDBG) FUND
To account for the annual federal grant that provides for development of viable urban communities.
SCHOLARSHIP FUND
To account for the revenues provided by businesses/ organizations to provide assistance with tuition of qualified parks and recreation participants.
COPS FUND
To account for local law enforcement grants funded by the office of Community Oriented Policing Services ( COPS).
OFFICE OF TRAFFIC SAFETY FUND
To account for grants received from the Office of Traffic Safety to be used to conduct a seat belt compliance campaign.
RTIF SAN JOAQUIN COUNTY FUND
To account for San Joaquin County' s 10% share of Regional Traffic Impact Fees collected from builders.
RTIF LATHROP LOCAL WEST FUND
To account for the City' s 75% share of Regional Traffic Impact Fees collected from builders on the West side.
RTIF SJCOG FUND
To account for San Joaquin Council of GovernmenYs 15% share of Regional Traffic Impact Fees collected from builders.
RTIF LATHROP LOCAL EAST FUND
To account for the City' s 75% share of Regional Traffic Impact Fees collected from builders on the East side.
101
148
NON - MAJOR GOVERNMENTAL FUNDS ( Continued)
CENTRAL LATHROP SPECIFIC PLAN ( CLSP) SERVICES CFD FUND To account for revenues and expenditures associated with the CLSP Community Facility District 2006- 2.
LATHROP MANTECA FIRE DISTRICT MEASURE C FUND
To account for revenues and expenditures associated with the sales tax collections specific from Measure C.
STATE GRANTS FUND
To account for revenues and expenditures associated with state grants.
NORTH LATHROP TRANSPORTATION CFF FUND
To account for capital facility fees collected for North Lathrop area.
STEWART ECONOMIC DEVELOPMENT 80% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewert Tract, that will provide to the City and its citizens.
CITYWIDE ECONOMIC DEVELOPMENT 20% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewert Tract, that will provide to the City and its citizens.
RIVER ISLANDS CFD 2013- 1 FUND
To account for revenue and expenditures related to the maintenance of the River Island community.
LATHROP LAND ACQUISITIONS FUND
To account for revenues and expenditures associated with the CLSP Community Facilities District 2006- 1.
URBAN LEVEL OF FLOOD PROTECTION RECLAMATION DISTRICT ( ULOP RD- 17) LEVEE IMPACT FUND
To account for capital facility fees collected for the Urban Level of Flood Protection plan in the Reclamation District( RD) 17.
DEPARTMENT OF WATER RESOURCES ( DWR) GRANT — URBAN LEVEL OF FLOOD
PROTECTION ( ULOP) PROJECT FUND
To account for revenues and expenditures associated with the Urban Level of Flood Protection plan.
CLSP OFF- SITE ROADWAY IMPROVEMENTS FUND
To account for improvements in the Central Lathrop Development. 102
149
NON - MAJOR GOVERNMENTAL FUNDS ( Continued)
SOUTH LATHROP CFD 2019- 1 FUND
To account for revenue and expenditures related to the maintenance of South Lathrop.
CENTRAL LATHROP CFD 2019- 2 FUND
To account for revenue and expenditures related to the maintenance of Central Lathrop.
TOT TRUST FUND
To account for 1% of the 9% TOT from the City as a whole, to help finance regional infrastructure.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds.
GENRAL CIP PROJECTS FUND
To account for the expenditure of funds for projects funded from the General Fund.
STORM DRAIN FUND
To account for expenditures for storm drain capital projects.
PARK IN- LIEU FUND
To account for revenues and expenditures which can legally be made under the Quimby Act. The revenue is collected from residential developers to offset the impact on parks and can only be used for new park development.
103
150
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street
Assets:
Pooled cash and investments 1, 087, 085 $ 582, 720 $ 79, 846 $ 510, 823 Receivables:
Accounts 48, 491 5, 206 6, 765
Notes and loans
Accrued interest 290 307 23 165
Total Assets 1, 087, 375 $ 631, 518 $ 85, 075 $ 517, 753 Liabilities and Fund Balances
Liabilities:
Accounts payable 353, 950 $ 133 $ 67, 958
Deposits payable
Due to other funds
Total Liabilities 353, 950 133 67, 958
Fund Balances:
Restricted 733, 425 631, 518 84, 942 449, 795
Unassigned
Total Fund Balances 733, 425 631, 518 84, 942 449, 795
Total Liabilities and Fund Balances 1, 087, 375 $ 631, 518 $ 85, 075 $ 517, 753 104
151
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021 CONTINUED)
Special Revenue Funds
Public Streets and
Nuisance Measure K Transit LTF Roads
Assets:
Pooled cash and investments 10, 271 $ 476, 383 $
Receivables:
Accounts 2, 019 150, 370 975, 563
Notes and loans
Accrued interest 3 261 6 48
Total Assets 12, 293 $ 627, 014 $ 6 $ 975, 611
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deposits payable
Due to other funds 6 788, 440
Total Liabilities 6 788, 440
Fund Balances:
Restricted 12, 293 627, 014 187, 171
Unassigned
Total Fund Balances 12, 293 627, 014 187, 171
Total Liabilities and Fund Balances 12, 293 $ 627, 014 $ 6 $ 975, 611 105
152
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Historic
Lathrop Loan
Federal Grant Program( HLLP) Storm Drain Street Light
Assets:
Pooled cash and investments 122, 627 $ 231, 352 $ 355, 513 $ 1, 652, 195 Receivables:
Accounts Z 9, 9
Notes and loans 20, 350
Accrued interest 69 98 476
Total Assets 332, 417 $ 251, 771 $ 355, 611 $ 1, 652, 752 Liabilities and Fund Balances
Liabilities:
Accounts payable 17, 078 $ 90, 513
Deposits payable
Due to other funds
Total Liabilities 17, 078 90, 513
Fund Balances:
Restricted 332, 417 251, 771 338, 533 1, 562, 239
Unassigned
Total Fund Balances 332, 417 251, 771 338, 533 1, 562, 239 Total Liabilities and Fund Balances 332, 417 $ 251, 771 $ 355, 611 $ 1, 652, 752 106
153
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021 CONTINUED)
Special Revenue Funds
Community
AB939 Development Scholarship
Recycling Block Grant Fund COPS
Assets:
Pooled cash and investments 920, 865 $ 7, 414 $ 14, 519 $ 246, 395 Receivables:
Accounts 15, 991
Notes and loans
Accrued interest 269 18 5 73
Total Assets 937, 125 $ 7, 432 $ 14, 524 $ 246, 468
Liabilities and Fund Balances
Liabilities:
Accounts payable 3, 200 $ 12, 485
Deposits payable
Due to other funds
Total Liabilities 3, 200 12, 485
Fund Balances:
Restricted 937, 125 4, 232 14, 524 233, 983
Unassigned
Total Fund Balances 937, 125 4, 232 14, 524 233, 983
Total Liabilities and Fund Balances 937, 725 $ 7, 432 $ 14, 524 $ 246, 468 107
154
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Office of Traffic RTIF San RTIF Lathrop
and Safety Joaquin County Local West RTIF SJCOG
Assets:
Pooled cash and investments 6, 819 $ 173, 416 $ 8, 063, 323 $ 260, 123 Receivables:
Accounts 1, 871
Notes and loans
Accrued interest 2 34 2, 280 51
Total Assets 8, 692 $ 173, 450 $ 8, 065, 603 $ 260, 774 Liabilities and Fund Balances
Liabilities:
Accounts payable 684 $ 173, 449 $ 260, 174
Deposits payable
Due to other funds
Total Liabilities 684 173, 449 260, 174
Fund Balances:
Restricted 8, 008 1 8, 065, 603
Unassigned
Total Fund Balances 8, 008 1 8, 065, 603
Total Liabilities and Fund Balances 8, 692 $ 173, 450 $ 8, 065, 603 $ 260, 174 108
155
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021 CONTINUED)
S ecial Revenue Funds
entral athrop
Specific Plan
RTIF Lathrop ( CLSP) Services LMFD Measure
Local East CFD C State Grants
Assets:
Pooled cash and investments 2, 295, 518 $ 5 $ 983,398 $ Receivables:
Accounts 28, 96
Notes and loans
Accrued interest 687 60
Total Assets 2, 296, 205 $ 5 $ 983, 458 $ 28, 961
Liabilities and Fund Balances
Liabilities:
Accounts payable 5 $ 120 $
Deposits payable
Due to other funds 62
Total Liabilities 5 120 621
Fund Balances:
Restricted 2, 296, 205 983, 338 28, 340
Unassigned
Total Fund Balances 2, 296, 205 983, 338 28, 340
Total Liabilities and Fund Balances 2, 296, 205 $ 5 $ 983, 458 $ 28, 961 109
156
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Citywide
North Lathrop Economic Dev River Islands Lathrop Land
Transportation Fee 20% CFD 2013- 1 Acquisitions
Assets:
Pooled cash and investments 11, 396 $ 1, 472, 146 $ 117, 894 $ 13, 894 Receivables:
Accounts 406, 751
Notes and loans
Accrued interest 4 442 177
Total Assets 11, 400 $ 1, 472, 588 $ 524, 822 $ 13, 894 Liabilities and Fund Balances
Liabilities:
Accounts payable
Deposits payable 12, 855
Due to other funds
Total Liabilities 12, 866
Fund Balances:
Restricted 11, 400 1, 472, 588 524, 822 1, 028
Unassigned
Total Fund Balances 11, 400 1, 472, 588 524, 822 1, 028 Total Liabilities and Fund Balances 11, 400 $ 1, 472, 588 $ 524, 822 $ 13, 894 110
157
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021 CONTINUED)
Special Revenue Funds
CLSP Off-Site
ULOP RD- 17 DWR Grant- Roadway South Lathrop
Levee Impact ULOP Project Improvement CFD 2019- 1
Assets:
Pooled cash and investments 971, 219 $ 56, 922 $ 752, 530 Receivables:
Accounts 59, 401
Notes and loans
Accrued interest 212 14 202
Total Assets 971, 431 $ 59,401 $ 56, 936 $ 752, 732
Liabilities and Fund Balances
Liabilities:
Accounts payable 971, 431 $ 59, 401 $ 11, 737
Deposits payable
Due to other funds
Total Liabilities 971, 431 59, 401 11, 737
Fund Balances:
Restricted 56, 936 740, 995
Unassigned
Total Fund Balances 56, 936 740, 995
Total Liabilities and Fund Balances 971, 431 $ 59, 401 $ 56, 936 $ 752, 732 111
158
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Capital Projects
Special Revenue Funds Fund
Stewart
Central Lathrop Economic Dev General CIP
CFD 2019- 2 Fee 80% TOT Trust Projects
Assets:
Pooled cash and investments 181, 704 $ 1, 090, 435 $ 19, 967, 573 Receivables:
Accounts 12, 901
Notes and loans
Accrued interest 12 34 323 2, 637
Total Assets 12 $ 181, 738 $ 1, 103, 659 $ 19, 970, 210 Liabilities and Fund Balances
Liabilities:
Accounts payable 55, 548 $ 444, 475
Deposits payable 176, 000
Due to other funds 114, 081
Totat Liabilities 169, 629 176, 000 444, 475
Fund Balances:
Restricted 5, 738 1, 103, 659 19, 525,735
Unassigned 169, 617)
Total Fund Balances 169, 617) 5, 738 1, 103, 659 19,525, 735 Total Liabilities and Fund Balances 12 $ 181, 738 $ 1, 103, 659 $ 19,970,210 112
159
CITY OF LATHROP
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Capital Project Fund
Total
Governmental
Storm Drain Park in Lieu Funds
Assets:
Pooled cash and investments 389, 184 $ 340, 913 $ 43, 446, 420 Receivables:
Accounts 1, 924, 161
Notes and loans 20, 350
Accrued interest 269 86 9, 637
Total Assets 389, 453 $ 340, 999 $ 45, 400, 568
Liabilities and Fund Balances
Liabilities:
Accounts payable 2, 522, 352
Deposits payable 188, 855
Due to other funds 903, 148
Total Liabilities 3, 614, 355
Fund Balances:
Restricted 389, 453 340, 999 41, 955, 830
Unassigned 169, 617)
Total Fund Balances 389, 453 340, 999 41, 786, 213
Total Liabilities and Fund Balances 389, 453 $ 340, 999 $ 45,400,568 113
160
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street
Revenues:
Taxes and assessments 2, 751, 781 $
Licenses and permits
Intergovernmental 1, 080, 858
Use of money and property 5, 299 6, 148 481 2, 590
Fines and forfeitures 38, 076
Miscellaneous 6 5, 983
Total Revenues 2, 757, 086 1, 087, 006 38, 557 8, 573
Expenditures:
Current:
Public safety 15, 539
Community development
Culture and leisure
Public works 2, 318, 045 861, 087
Capital outlay 6, 686
Total Expenditures 2, 324, 731 15, 539 861, 087
Excess( Deficiency) of Revenues
Over( Under) Expenditures 432, 355 1, 087, 006 23, 018 852, 514) Other Financing Sources( Uses):
Transfers in 44, 067 1, 058, 500
Transfers out 315, 814) 1, 011, 190) 3, 076) 147, 317)
Total Other Financing Sources
Uses) 271, 747) 1, 011, 190) 3, 076) 911, 183
Net Change in Fund Balances 160, 608 75, 816 19, 942 58, 669 Fund Balances, Beginning of Year 572, 817 555, 702 65, 000 391, 126 Restatements
Fund Balances, Beginning of Year, as Restated 572, 817 555, 702 65, 000 391, 126 Fund Balances, End of Year 733, 425 $ 631, 518 $ 84, 942 $ 449, 795 114
161
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021 CONTINUED)
Special Revenue Funds
Streets and
Public Nuisance Measure K Transit LTF Roads
Revenues:
Taxes and assessments
Licenses and permits
Intergovernmental 1, 011, 055 20, 147 975, 563
Use of money and property 71 5, 104 147 2, 316
Fines and forfeitures
Miscellaneous
Total Revenues 71 1, 016, 159 20, 294 977, 879
Expenditures:
Current:
Public safety
Community development
Culture and leisure
Public works
Capital outlay
Total Expenditures
Excess( Deficiency) of Revenues
Over( Under) Expenditures 71 1, 016, 159 20, 294 977, 879 Other Financing Sources( Uses):
Transfers in
Transfers out 1, 091, 604) 21, 210) 1, 324, 010)
Total Other Financing Sources
Uses) 1, 091, 604) 21, 210) 1, 324, 010)
Net Change in Fund Balances 71 75, 445) 916) 346, 131)
Fund Balances, Beginning of Year 12, 222 702, 459 916 533, 302 Restatements
Fund Balances, Beginning of Year, as Restated 12, 222 702, 459 916 533, 302 Fund Balances, End of Year 12, 293 $ 627, 014 $ 187, 171 115
162
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Historic Lathrop
Loan Program
Federal Grant HLLP) Storm Drain Street Light
Revenues:
Taxes and assessments
Licenses and permits
Intergovernmental 572, 616
Use of money and property 1, 599 1, 932 10, 353
Fines and forfeitures 352, 505 1, 032, 563
Miscellaneous 3, 879
Total Revenues 572, 616 1, 599 354, 437 1, 046, 795
Expenditures:
Current:
Public safety 157, 984
Community development
Culture and leisure 37, 220
Public works 282, 954 850, 600
Capital outlay 14, 500
Total Expenditures 37, 220 297, 454 1, 008, 584
Excess( Deficiency) of Revenues
Over( Under) Expenditures 535, 396 1, 599 56, 983 38, 211 Other Financing Sources( Uses):
Transfers in 20, 579 31, 025
Transfers out 534, 719) 74, 002) 153, 077)
Total Other Financing Sources
Uses) 534, 719) 53, 423) 122, 052)
Net Change in Fund Balances 677 1, 599 3, 560 83, 841)
Fund Balances, Beginning of Year 331, 740 250, 172 334, 973 1, 646, 080 Restatements
Fund Balances, Beginning of Year, as Restated 331, 740 250, 172 334, 973 1, 646,080 Fund Balances, End of Year 332, 417 $ 251, 771 $ 338, 533 $ 1, 562, 239 116
163
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021 CONTINUED)
Special Revenue Funds
Community
AB939 Development Scholarship
Recycling Block Grant Fund COPS
Revenues:
Taxes and assessments 183, 719 $
Licenses and permits 280
I ntergovernmental 6, 927 180, 030 401 156, 727
Use of money and property 5, 895 128 106 1, 479
Fines and forfeitures
Miscellaneous 161
Total Revenues 196, 821 180, 158 668 158, 206
Expenditures:
Current:
Public safety 112, 495
Community development 68, 556
Culture and leisure
Public works 84, 634
Capital outlay
Total Expenditures 84, 634 68, 556 112, 495
Excess( Deficiency) of Revenues
Over( Under) Expenditures 112, 187 111, 602 668 45, 711 Other Financing Sources( Uses):
Transfers in
Transfers out 12, 889) 118, 114) 918)
Total Other Financing Sources
Uses) 12, 889) 118, 114) 918)
Net Change in Fund Balances 99, 298 6, 512) 250) 45, 711 Fund Balances, Beginning of Year 837, 827 10, 744 14, 774 188, 272 Restatements
Fund Balances, Beginning of Year, as Restated 837, 827 10, 744 14, 774 188, 272 Fund Balances, End of Year 937, 125 $ 4, 232 $ 14, 524 $ 233, 983 117
164
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Office of Traffic RTIF San RTIF Lathrop
and Safety Joaquin County Local West RTIF SJCOG
Revenues:
Taxes and assessments 451, 757 $ 2, 484, 670 $ 677, 635 Licenses and permits
Intergovernmental 27, 823
Use of money and property 10 899 46, 258 1, 348
Fines and forfeitures
Miscellaneous
Total Revenues 27, 833 452, 656 2, 530, 928 678, 983
Expenditures:
Current:
Public safety 21, 633
Community development
Culture and leisure
Public works 452, 663 678, 994
Capital outlay
Total Expenditures 21, 633 452, 663 678, 994
Excess( Deficiency) of Revenues
Over( Under) Expenditures 6, 200 7) 2, 530, 928 11)
Other Financing Sources( Uses):
Transfers in
Transfers out
Total Other Financing Sources
Uses)
Net Change in Fund Balances 6, 200 7) 2, 530, 928 11)
Fund Balances, Beginning of Year 1, 808 8 5, 534, 675 11 Restatements
Fund Balances, Beginning of Year, as Restated 1, 808 8 5, 534, 675 11 Fund Balances, End of Year 8, 008 $ 1 $ 8, 065, 603 $
118
165
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021 CONTINUED)
Special Revenue Funds
Central Lathrop
Specific Plan
RTIF Lathrop ( CLSP) Services LMFD Measure
Local East CFD C State Grants
Revenues:
Taxes and assessments 835, 740 $
Licenses and permits
Intergovernmental 185, 000
Use of money and property 14, 156 675
Fines and forfeitures
Miscellaneous
Total Revenues 849, 896 675 185, 000
Expenditures:
Current:
Public safety 2, 959, 622
Community development
Culture and leisure
Public works
Capital outlay
Total Expenditures 2, 959, 622
Excess( Deficiency) of Revenues
Over( Under) Expenditures 849, 896 2, 958, 947) 185, 000 Other Financing Sources( Uses):
Transfers in 3, 342, 548
Transfers out 156, 660)
Total Other Financing Sources
Uses) 3, 342, 548 156, 660)
Net Change in Fund Balances 849, 896 383, 601 28, 340
Fund Balances, Beginning of Year 1, 446, 309 599, 737
Restatements
Fund Balances, Beginning of Year, as Restated 1, 446, 309 599, 737 Fund Balances, End of Year 2, 296, 205 $ 983, 338 $ 28, 340 119
166
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Citywide
North Lathrop Economic Dev River Islands Lathrop Land
Transportation Fee 20% CFD 2013- 1 Acquisitions
Revenues:
Taxes and assessments 450, 000 $ 594, 651 $
Licenses and permits
Intergovernmental
Use of money and property 82 9, 133 2, 188 96
Fines and forfeitures
Miscellaneous 406, 751
Total Revenues 82 459, 133 1, 003, 590 96
Expenditures:
Current:
Public safety
Community development
Culture and leisure
Public works 22, 595
Capital outlay
Total Expenditures 22, 595
Excess( Deficiency) of Revenues
Over( Under) Expenditures 82 459, 133 980, 995 96
Other Financing Sources( Uses):
Transfers in
Transfers out 65, 000) 579, 470)
Total Other Financing Sources
Uses) 65, 000) 579, 470)
Net Change in Fund Balances 82 394, 133 401, 525 96
Fund Balances, Beginning of Year 11, 318 1, 078, 455 123, 297 932 Restatements
Fund Balances, Beginning of Year, as Restated 11, 318 1, 078, 455 123, 297 932 Fund Balances, End of Year 11, 400 $ 1, 472, 588 $ 524, 822 $ 1, 028 120
167
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021 CONTINUED)
Special Revenue Funds
CLSP Off- Site
ULOP RD- 17 DWR Grant- Roadway South Lathrop
Levee Impact ULOP Project Improvement CFD 2019- 1
Revenues:
Taxes and assessments 3, 934, 845 $ 45, 105 $ 521, 361
Licenses and permits
Intergovernmental
Use of money and property 269) 230 3, 240
Fines and forfeitures
Miscellaneous
TotalRevenues 3, 934, 576 45, 335 524, 601
Expenditures:
Current:
Public safety
Community development
Culture and leisure
Public works 3, 934, 845 97, 053
Capital outlay 23, 340
Total Expenditures 3, 934, 845 120, 393
Excess( Deficiency) of Revenues
Over( Under) Expenditures 269) 45, 335 404, 208
Other Financing Sources( Uses):
Transfers in
Transfers out
Total Other Financing Sources
Uses)
Net Change in Fund Balances 269) 45, 335 404, 208
Fund Balances, Beginning of Year 269 11, 601 336, 787
Restatements
Fund Balances, Beginning of Year, as Restated 269 11, 601 336, 787 Fund Balances, End of Year 56, 936 $ 740, 995
121
168
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Capital Projects
Special Revenue Funds Fund
Stewart
Centrel Lathrop Economic Dev General CIP
CFD 2019- 2 Fee 80% TOT Trust Projects
Revenues:
Taxes and assessments 397, 402 $ 83, 170 $
Licenses and permits
Intergovernmental
Use of money and property 82 748 7, 276 53, 465
Fines and forfeitures
Miscellaneous
Total Revenues 397, 484 748 90, 446 53, 465
Expenditures:
Current:
Public safety
Community development
Culture and leisure
Public works 515, 121
Capital outlay 5, 723 2, 529, 775
Total Expenditures 520, 844 2, 529, 775
Excess( Deficiency) of Revenues
Over( Under) Expenditures 123, 360) 748 90, 446 2, 476, 310) Other Financing Sources( Uses):
Transfers in 14, 654, 196
Transfers out 43, 757)
Total Other Financing Sources
Uses) 43, 757) 14, 654, 196
Net Change in Fund Balances 167, 117) 748 90, 446 12, 177, 886 Fund Balances, Beginning of Year 2, 500) 4, 990 7, 347, 849 Restatements 1, 013, 213
Fund Balances, Beginning of Year, as Restated 2, 500) 4, 990 1, 013, 213 7, 347, 849 Fund Balances, End of Year 169, 617) $ 5, 738 $ 1, 103, 659 $ 19, 525, 735 122
169
CITY OF LATHROP
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Capital Projects Funds
Total
Governmental
Storm Drain Park in Lieu Funds
Revenues:
Taxes and assessments 62, 700 $ 13, 474, 536
Licenses and permits 280
Intergovernmental 4, 217, 147
Use of money and property 6, 176 1, 946 191, 387
Fines and forfeitures 1, 423, 144
Miscellaneous 416,780
Total Revenues 6, 176 64, 646 19, 723, 274
Expenditures:
Current:
Public safety 3, 267, 273
Community development 68, 556
Culture and leisure 37, 220
Public works 10, 098, 591
Capital outlay 536 2, 580, 560
Total Expenditures 536 16, 052, 200
Excess( Deficiency) of Revenues
Over( Under) Expenditures 5, 640 64, 646 3, 671, 074
Other Financing Sources( Uses):
Transfers in 498, 876) 18,652,039
Transfers out 397) 5, 653, 224)
Total Other Financing Sources
Uses) 499, 273) 12, 998, 815
Net Change in Fund Balances 493, 633) 64, 646 16,669,889 Fund Balances, Beginning of Year 883, 086 276, 353 24, 103, 111 Restatements 1, 013, 213
Fund Balances, Beginning of Year, as Restated 883, 086 276, 353 25, 116, 324 Fund Balances, End of Year 389, 453 $ 340, 999 $ 41, 786, 213 123
170
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 2, 736, 072 $ 2, 736, 072 $ 2, 751, 781 $ 15, 709 Use of money and property 3, 000 3, 000 5, 299 2, 299
Miscellaneous 6 6
Total Revenues 2, 739, 072 2, 739, 072 2, 757, 086 18, 014 Expenditures
Current:
Public works 2, 467, 633 2, 743, 045 2, 318, 045 425, 000 Capital outlay 17, 500 45, 261 6, 686 38, 575
Total Expenditures 2,485, 133 2, 788, 306 2, 324, 731 463, 575 Other Financing Sources( Uses)
Transfers in 44, 067 44, 067 44, 067
Transfers out 331, 031) 315, 814) 315, 814)
Total Other Financing Sources ( Uses) 286, 964) 271, 747) 271, 747) Net Change in Fund Balances 33, 025) 320, 981) 160, 608 481, 589 Fund Balances, Beginning of Year 572, 817 572, 817 572, 817 Fund Balances, End of Year 539, 792 $ 251, 836 $ 733, 425 $ 481, 589 124
171
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GAS TAX
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 1, 030, 000 $ 1, 030, 000 $ 1, 080, 858 $ 50, 858 Use of money and property 6, 148 6, 148
Total Revenues 1, 030, 000 1, 030,000 1, 087, 006 57, 006 Other Financing Sources( Uses)
Transfers out 801, 987) 1, 129, 566) 1, 011, 190) 118, 376 Total Other Financing Sources( Uses) 801, 987) 1, 129, 566) 7, 011, 190) 118, 376 Net Change in Fund Balances 228, 013 99, 566) 75, 816 175,382 Fund Balances, Beginning of Year 555, 702 555, 702 555, 702 Fund Balances, End of Year 783, 715 $ 456, 136 $ 631, 518 $ 175, 382 125
172
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 481 $ 481
Fines and forfeitures 25, 000 25, 000 38, 076 13, 076
Total Revenues 25, 000 25, 000 38, 557 13, 557
Expenditures
Current:
Public safety 16, 000 16, 000 15, 539 461
Total Expenditures 16, 000 16, 000 15, 539 461
Other Financing Sources( Uses)
Transfers out 3, 523) 3, 076) 3, 076)
Total Other Financing Sources( Uses) 3, 523) 3,076) 3, 076) Net Change in Fund Balances 5, 477 5,924 19, 942 14, 018 Fund Balances, Beginning of Year 65, 000 65, 000 65, 000 Fund Balances, End of Year 70, 477 $ 70, 924 $ 84, 942 $ 14, 018 126
173
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
LOCAL STREET
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 2, 590 $ 2, 590
Miscellaneous 5, 983 5, 983
Total Revenues 8, 573 8, 573
Expenditures
Current:
Publicworks 873, 592 1, 267, 064 861, 087 405, 977
Capital outlay 10, 000 10,000 10, 000
Total Expenditures 883, 592 1, 277,064 861, 087 415, 977 Other Financing Sources( Uses)
Transfers in 1, 025, 000 1, 058, 500 1, 058, 500
Transfers out 142, 909) 185, 201) 147, 317) 37, 884
Total Other Financing Sources( Uses) 882, 091 873, 299 911, 183 37, 884 Net Change in Fund Balances 1, 501) 403, 765) 58, 669 462, 434 Fund Balances, Beginning of Year 391, 126 391, 126 391, 126 Fund Balances, End of Year 389, 625 $ 12, 639) $ 449, 795 $ 462, 434 127
174
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
PUBLIC NUISANCE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 71 $ 71
Total Revenues 71 71
Expenditures
Current:
Public safety 4, 000 4, 000 4, 000
Total Expenditures 4, 000 4, 000 4,000
Net Change in Fund Balances 4, 000) 4, 000) 71 4, 071
Fund Balances, Beginning of Year 12, 222 12, 222 12, 222 Fund Balances, End of Year 8, 222 $ 8, 222 $ 12,293 $ 4, 071 128
175
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MEASURE K
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 481, 000 $ 997, 604 $ 1, 011, 055 $ 13, 451 Use of money and property 5, 104 5, 104
Total Revenues 481, 000 997, 604 1, 016, 159 18, 555
Other Financing Sources( Uses):
Transfers out 575, 000) 1, 120, 287) 1, 091, 604) 28, 683 Total Other Financing Sources( Uses) 575, 000) 1, 120, 287) 1, 091, 604) 28, 683 Net Change in Fund Balances 94, 000) 122, 683) 75,445) 47, 238 Fund Balances, Beginning of Year 702, 459 702, 459 702, 459 Fund Balances, End of Year 608, 459 $ 579, 776 $ 627, 014 $ 47, 238 129
176
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRANSIT LTF
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 20, 147 $ 20, 147
Use of money and property 150 147 3)
Total Revenues 150 20, 294 20, 144
Other Financing ( Uses)
Transfers in
Transfers out 21, 210) 21, 210)
Total Other Financing( Uses) 21, 210) 21, 210)
Net Change in Fund Balances 21, 060) 916) 20, 144
Fund Balances, Beginning of Year 916 916 916
Fund Balances, End of Year 916 $ 20, 144) $ S 20, 144
130
177
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
STREETS AND ROADS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 472, 000 $ 1, 272, 938 $ 975, 563 $ ( 297, 375) Use of money and property 2, 316 2, 316
Total Revenues 472, 000 1, 272, 938 977, 879 295, 059)
Other Financing Sources( Uses):
Transfers out 472, 000) 1, 447, 272) 1, 324, 010) 123, 262 Total Other Financing Sources( Uses) 472, 000) 1, 447, 272) 1, 324, 010) 123, 262 Net Change in Fund Balances 174, 334) 346, 131) 171, 797) Fund Balances, Beginning of Year 533, 302 533,302 533, 302 Fund Balances, End of Year 533, 302 $ 358, 968 $ 187, 171 $ ( 171, 797) 131
178
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
FEDERAL GRANT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 4, 814, 576 $ 572,616 $ ( 4, 241, 960) Total Revenues 4, 814, 576 572, 616 4, 241, 960)
Expenditures
Current:
Culture and leisure 54, 500 37, 220 17, 280
Total Expenditures 54, 500 37, 220 17, 280
Other Financing Sources( Uses)
Transfers out 4, 760, 076) 534, 719) 4, 225, 357
Total Other Financing Sources( Uses) 4, 760, 076) 534, 719) 4, 225, 357 Net Change in Fund Balances 677 677
Fund Balances, Beginning of Year 331, 740 331, 740 331, 740 Fund Balances, End of Year 331, 740 $ 331, 740 $ 332, 417 $ 677 132
179
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
STORM DRAIN
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 1, 932 $ 1, 932
Fines and forfeitures 352, 506 352, 506 352, 505 1)
Total Revenues 352, 506 352, 506 354, 437 1, 931
Expenditures
Current:
Public works 364, 528 503, 501 282,954 220, 547
Capital outlay 14, 500 14, 500
Total Expenditures 364,528 518, 001 297, 454 220, 547
Other Financing( Uses)
Transfers in 20, 579 20, 579 20, 579
Transfers out 65,275) 74, 002) 74, 002)
Total Other Financing( Uses) 44,696) 53, 423) 53,423)
Net Change in Fund Balances 56, 718) 218, 918) 3,560 222, 478 Fund Balances, Beginning of Year 334, 973 334, 973 334, 973 Fund Balances, End of Year 278, 255 $ 116, 055 $ 338, 533 $ 222,478 133
180
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
STREET LIGHT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 10, 353 $ 10, 353
Fines and forfeitures 1, 009, 125 1, 009, 125 1, 032, 563 23, 438 Miscellaneous 3, 879 3, 879
Total Revenues 1, 009, 125 1, 009, 125 1, 046, 795 37, 670 Expenditures
Cu rrent:
Public safety 164, 292 259, 292 157, 984 101, 308
Publicworks 897, 064 1, 156, 118 850, 600 305, 518
Capital outlay 7, 000 7, 000
Total Expenditures 1, 061, 356 1, 422, 410 1, 008, 584 413, 826 Other Financing ( Uses)
Transfers in 31, 025 31, 025 31, 025
Transfers out 149, 249) 153, 077) 153, 077)
Total Other Financing( Uses) 118, 224) 122, 052) 722, 052) Net Change in Fund Balances 170, 455) 535, 337) 83, 841) 451, 496 Fund Balances, Beginning of Year 1, 646, 080 1, 646, 080 1, 646, 080 Fund Balances, End of Year 1, 475, 625 $ 1, 110, 743 $ 1, 562, 239 $ 451, 496 134
181
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL A6939 RECYCLING
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 80, 000 $ 80,000 $ 183, 719 $ 103, 719 Licenses and permits 280 280
Intergovernmental 5, 000 5, 000 6, 927 1, 927
Use of money and property 5, 895 5, 895
Total Revenues 85, 000 85, 000 196, 821 111, 821
Expenditures
Current:
Public works 60, 787 155, 084 84, 634 70, 450
Total Expenditures 60, 787 155, 084 84, 634 70, 450
Other Financing( Uses)
Transfers out 20, 190) 12, 889) 12, 889)
Total Other Financing( Uses) 20, 190) 12,889) 12, 889)
Net Change in Fund Balances 4, 023 82, 973) 99, 298 182, 271 Fund Balances, Beginning of Year 837, 827 837, 827 837, 827 Fund Balances( Deficits), End of Year 841, 850 $ 754, 854 $ 937, 125 $ 182,271 135
182
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 182, 610 $ 180, 030 $ 2, 580)
Use of money and property 128 128
Total Revenues 182, 610 180, 158 2, 452)
Expenditures
Current:
Community development 5, 000 95, 804 68, 556 27, 248
Total Expenditures 5, 000 95, 804 68, 556 27, 248
Other Financing Sources( Uses):
Transfers out 301) 121, 406) 118, 114) 3, 292
Total Other Financing Sources( Uses) 301) 121, 406) 118, 114) 3, 292 Net Change in Fund Balances 5, 301) 34, 600) 6, 512) 28, 088 Fund Balances, Beginning of Year 10, 744 10, 744 10, 744 Fund Balances, End of Year 5, 443 $ 23, 856) $ 4, 232 $ 28, 088 136
183
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SCHOLARSHIP FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 5, 000 $ 5, 000 $ 401 $ 4, 599)
Use of money and property 106 106
Miscellaneous 900 900 161 739)
Total Revenues 5, 900 5, 900 668 5, 232)
Other Financing Sources( Uses):
Transfers out 5, 000) 5, 000) 918) 4, 082
Total Other Financing Sources( Uses) 5, 000) 5, 000) 918) 4, 082 Net Change in Fund Balances 900 900 250) 1, 150)
Fund Balances, Beginning of Year 14, 774 14, 774 14, 774 Fund Balances, End of Year 15, 674 $ 15, 674 $ 14,524 $ 1, 150) 137
184
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL COPS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 110, 000 $ 156, 700 $ 156, 727 $ 27
Use of money and property 1, 479 1, 479
Total Revenues 110, 000 156, 700 158, 206 1, 506
Expenditures
Current:
Public safety 110, 000 197, 500 112, 495 85, 005
Total Expenditures 110, 000 197, 500 112, 495 85, 005
Net Change in Fund Balances 40, 800) 45, 711 83, 499)
Fund Balances, Beginning of Year 188, 272 188, 272 188, 272 Fund Balances, End of Year 188, 272 $ 147,472 $ 233, 983 $ 83, 499) 138
185
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
OFFICE OF TRAFFIC AND SAFETY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 140, 400 $ 140, 400 $ 27, 823 $ ( 112, 577) Use of money and property 10 10
Total Revenues 140, 400 140, 400 27, 833 112,567)
Expenditures
Current:
Public safety 110, 400 110, 400 21, 633 88, 767
Capital outlay 30,000 30, 000 30, 000
Total Expenditures 140, 400 140, 400 21, 633 118, 767
Net Change in Fund Balances 6, 200 6, 200
Fund Balances, Beginning of Year 1, 808 1, 808 1, 808
Fund Balances, End of Year 1, 808 $ 1, 808 $ 8, 008 $ 6, 200 139
186
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
RTIF SAN JOAQUIN COUNTY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 189, 195 $ 452,665 $ 451, 757 $ 908) Use of money and property 99 899
Total Revenues 189, 195 452, 665 452, 656 9)
Expenditures
Current:
Publicworks 189, 195 452, 665 452,663 2
Total Expenditures 189, 195 452, 665 452, 663 2
Net Change in Fund Balances 7) 7)
Fund Balances, Beginning of Year 8 8 8
Fund Balances, End of Year 8 $ 8 $ 1 $ 7)
140
187
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
RTIF LATHROP LOCAL WEST
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 914, 866 $ 914, 866 $ 2, 484,670 $ 1, 569, 804 Use of money and property 46, 258 46, 258
Total Revenues 914, 866 914,866 2, 530, 928 1, 616, 062 Expenditures
Current:
Public works 5, 000 5, 000 5, 000
Total Expenditures 5, 000 5, 000 5, 000
Net Change in Fund Balances 909, 866 909, 866 2, 530, 928 1, 621, 062 Fund Balances, Beginning of Year 5, 534, 675 5, 534, 675 5, 534, 675 Fund Balances, End of Year 6, 444, 541 $ 6, 444,541 $ 8, 065, 603 $ 1, 621, 062 141
188
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
RTIF SJCOG
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 283, 794 $ 678, 994 $ 677, 635 $ 1, 359) Use of money and property 1, 348 1, 348
Total Revenues 283, 794 678, 994 678, 983 11)
Expenditures
Current:
Public works 283, 794 678, 994 678, 994
Total Expenditures 283,794 678,994 678, 994
Net Change in Fund Balances 11) 11)
Fund Balances, Beginning of Year 11 11 11
Fund Balances, End of Year 11 $ 11 $ 11)
142
189
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
RTIF LATHROP LOCAL EAST
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 686, 941 $ 686, 941 $ 835, 740 $ 148, 799 Use of money and property 14, 156 14, 156
Total Revenues 686, 941 686, 941 849, 896 162, 955
Expenditures
Current:
Public works 5, 000 5, 000 5, 000
Total Expenditures 5, 000 5, 000 5, 000
Net Change in Fund Balances 681, 941 681, 941 849, 896 167, 955 Fund Balances, Beginning ofYear 1, 446, 309 1, 446, 309 1, 446, 309 Fund Balances, End of Year 2, 128, 250 $ 2, 128, 250 $ 2, 296, 205 $ 167, 955 143
190
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
LMFD MEASURE C
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 675 $ 675
TotalRevenues 675 675
Expenditures
Current:
Public safety 1, 800, 000 3, 342, 550 2, 959, 622 382, 928 Total Expenditures 1, 800, 000 3, 342, 550 2, 959, 622 382, 928 Other Financing Sources( Uses):
Transfers in 1, 800, 000 3, 342, 550 3, 342, 548 2)
Total Other Financing Sources( Uses) 1, 800, 000 3, 342, 550 3, 342, 548 2) Net Change in Fund Balances 383, 601 383, 601
Fund Balances, Beginning of Year 599, 737 599,737 599, 737 Fund Balances, End of Year 599, 737 $ 599, 737 $ 983, 338 $ 383, 601 144
191
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL
STATE GRANTS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 239, 296 $ 185, 000 $ 54, 296)
Total Revenues 239, 296 185, 000 54, 296)
Other Financing Sources( Uses):
Transfers out 239, 296) 156, 660) 82, 636
Total Other Financing Sources( Uses) 239, 296) 156, 660) 82, 636 Net Change in Fund Balances 28, 340 28, 340
Fund Balances, Beginning of Year
Fund Balances, End of Year 28, 340 $ 28, 340
145
192
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CITYWIDE ECONOMIC DEV FEE 20%
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 200, 000 $ 200, 000 $ 450, 000 $ 250, 000 Use of money and property 9, 133 9, 133
Total Revenues 200,000 200, 000 459, 133 259, 133
Other Financing Sources( Uses):
Transfers out 65, 000) 65, 000)
Total Other Financing Sources( Uses) 65, 000) 65, 000)
Net Change in Fund Balances 200, 000 135,000 394, 133 259, 133 Fund Balances, Beginning ofYear 1, 078, 455 1, 078, 455 1, 078, 455 Fund Balances, End of Year 1, 278, 455 $ 1, 213, 455 $ 1, 472,588 $ 259, 133 146
193
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL RIVER ISLANDS CFD 2013- 1
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 305, 000 $ 305, 000 $ 594, 651 $ 289, 651 Use of money and property 2, 188 2, 188
Miscellaneous 415, 000 415, 000 406, 751 8, 249)
Total Revenues 720, 000 720, 000 1, 003, 590 283, 590
Expenditures
Current:
Public works 15, 700 15, 700 22, 595 6, 895)
Total Expenditures 15, 700 15, 700 22, 595 6, 895)
Other Financing Sources( Uses):
Transfers out 704, 300) 704, 283) 579,470) 124, 813
Total Other Financing Sources( Uses) 704, 300) 704, 283) 579, 470) 124, 813 Net Change in Fund Balances 17 401, 525 401, 508
Fund Balances, Beginning of Year 123, 297 123, 297 123, 297 Fund Balances, End of Year 123, 297 $ 123, 314 $ 524, 822 $ 401, 508 147
194
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL ULOP RD- 17 LEVEE IMPACT
YEAR ENDED JUNE 30, 2027
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 1, 951, 827 $ 1, 951, 827 $ 3, 934, 845 $ 1, 983, 018 Use of money and property 269) 269)
Total Revenues 1, 951, 827 1, 951, 827 3, 934, 576 1, 982, 749 Expenditures
Current:
Publicworks 1, 951, 827 1, 951, 827 3, 934, 845 1, 983, 018) Total Expenditures 1, 951, 827 1, 951, 827 3, 934, 845 1, 983, 018) Net Change in Fund Balances 269) 269)
Fund Balances, Beginning of Year 269 269 269
Fund Balances, End of Year 269 $ 269 $ 269)
148
195
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
CLSP OFF- SITE ROADWAY IMPROVEMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 15, 000 $ 15, 000 $ 45, 105 $ 30, 105 Use of money and property 230 230
Total Revenues 15, 000 15, 000 45, 335 30, 335
Net Change in Fund Balances 15, 000 15, 000 45, 335 30, 335 Fund Balances, Beginning ofYear 11, 601 11, 601 11, 601 Fund Balances, End of Year 26, 601 $ 26, 601 $ 56, 936 $ 30, 335 149
196
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SOUTH LATHROP CFD 2019- 1
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 531, 686 $ 531, 686 $ 521, 361 $ 10,325) Use of money and property 3, 240 3, 240
Total Revenues 531, 686 531, 686 524, 601 7, 085)
Expenditures
Current:
Publicworks 301, 686 309, 128 97, 053 212, 075
Capital outlay 230, 000 230, 000 23, 340 206, 660
Total Expenditures 531, 686 539, 128 120, 393 418, 735
Net Change in Fund Balances 7, 442) 404, 208 411, 650
Fund Balances, Beginning of Year 336, 787 336, 787 336, 787 Fund Balances, End of Year 336, 787 $ 329, 345 $ 740, 995 $ 411, 650 150
197
CITY OF LATHROP
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL CENTRAL LATHROP CFD 2019- 2
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 396, 327 $ 396, 327 $ 397, 402 $ 1, 075 Use of money and property
82 82
Total Revenues 396, 327 396, 327 397, 484 1, 157
Expenditures
Current:
Publicworks 349, 065 553, 534 515, 121 38, 413
Capital outlay 5, 723 5, 723
Total Expenditures 349, 065 559, 257 520, 844 38, 413
Other Financing Sources( Uses)
Transfers out 47, 262) 43, 757) 43, 757)
Total Other Financing Sources( Uses) 47, 262) 43, 757) 43, 757) Net Change in Fund Balances 206,687) 167, 117) 39, 570
Fund Balances( Deficits), Beginning of Year 2, 500) 2, 500) 2, 500) Fund Balances( Deficits), End of Year 2, 500) $ ( 209, 187) $ ( 169, 617) $ 39, 570 151
198
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152
199
CUSTODIAL FUNDS
Custodial Funds account for assets held by the City as agent for individuals, governmental entities, and non- public organizations. These funds include the following:
MOSSDALE VILLAGE ASSESSMENT DISTRICT FUND
To account for the special assessments associated with the payment of the limited- obligation improvement bonds for the Mossdale Village Assessment District.
CROSSROADS ASSESSMENTS FUND
To account for the special assessments associated with the payment of the limited- obligation improvement bonds for the Crossroads Assessment District.
JOINT WASTEWATER COMMUNITY FACILITIES DISTRICT FUND
To account for the special assessments associated with the payment of the limited- obligation improvement bonds for the Joint Wastewater Community Facilities District.
NORTH HARLAN WATER IMPROVEMENT FUND
To account for special assessments associated with the payment of limited obligation improvement bonds for the North Harlan Water Improvement District.
COMMUNITY FACILITIES DISTRICT CLSP INFRASTRUCTURE FUND
To account for special assessments associated with the infrastructure in the Central Lathrop Specific Plan area.
SEWER ASSESSMENT DISTRICT N0. 1 FUND
To account for the special assessments associated with the payments of the limited- obligation improvement bonds for the Lathrop Sanitary Sewer Assessment District No. 1.
MOSSDALE VILLAGE REASSESSMENT 2015— 1 FUND
To account for the special assessments associated with the payment of bonds for the Mossdale Village District.
153
200
CITY OF LATHROP
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2021
oint
Mossdale Wastewater
Village Community North Harlan
Assessment Crossroads Facilities Water
District Assessments District Improvement
Assets:
Pooled cash and investments 2, 055, 987 $ 561, 630 $ 784, 415 $ 59, 961 Receivables:
Accrued interest 282 128 205 20
Restricted assets:
Cash and investments with fiscal agents 178 741, 756 698, 815 3 Total Assets 2, 056, 447 1, 303, 514 1, 483, 435 59, 984 Liabilities:
Accounts payable 131, 097 40, 928
Deposits payable
Due to other governments 619
Long term liabilities
Bonds due in one year 470, 000 290, 000 215, 000
Bonds due in more than one year 8, 125, 000 8, 960, 000 4,960,000 Total Liabilities 8, 595, 619 9, 250, 000 5, 306, 097 40, 928 Net Position( Deficit):
Restricted for:
Individuals, organziations and other governments 6, 539, 172) 7, 946, 486) 3, 822, 662) 19, 056 Total Net Position( Deficit) 6, 539, 172) $ ( 7, 946, 486) $ ( 3, 822, 662) $ 19, 056 154
201
CITY OF LATHROP
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2021
Community Mossdale
Facilities Sewer Village
District CLSP Asessment Reassessment
Infrastructure District# 1 2015- 1 Totals
Assets
Pooled cash and investments 1, 515, 069 $ 6, 832 $ 657, 769 $ 5, 641, 663 Receivables:
Accrued interest 291 5 173 1, 104
Restricted assets:
Cash and investments with fiscal agents 940, 924 382, 806 240, 250 3, 004,732 Total Assets 2, 456, 284 389, 643 898, 192 8, 647, 499
Liabilities:
Accounts payable 172, 025
Deposits payable 30, 747 30, 747
Due to other governments 21, 788 1, 391 54, 189 77, 987 Long term liabilities
Bonds due in one year 75, 000 65, 000 270, 000 1, 385, 000 Bonds due in more than one year 45, 640, 000 520, 000 4, 890, 000 73, 095, 000 Total Liabilities 45, 767, 535 586, 391 5, 214, 189 74, 760, 759 Net Position( Deficit):
Restricted for:
Individuals, organziations and other governments 43, 311, 251) 196, 748) 4, 315, 997) ( 66, 113, 260) Total Net Position( Deficit) 43, 311, 251) $ ( 196, 748) $ ( 4, 315, 997) $ ( 66, 113, 260) 155
202
CITY OF LATHROP
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
oin
Mossdale Wastewater
Village Community North Harlan
Assessment Crossroads Facilities Wate
District Assessments District Improvement
Additions:
Collections for assessment districts 972, 861 $ 754, 983 $ 924, 337 $ 90, 585 Investmentearnings 4, 344 1, 513 4, 272 301
Total Additions 977, 205 756, 496 928, 609 90, 886
Deductions:
Administrative expenses 12, 450 9, 195 9, 252 7, 576
Contractual services 26, 397 8, 741 9, 083 10, 273
Interest expense 461, 298 449, 149 350, 432 2, 015
Total Deductions 500, 145 467, 085 368, 767 19, 864
Changes in Net Position 477, 060 289, 411 559, 842 71, 022 Net Position- Beginning of the Year
Restatements 7, 016, 232) 8, 235, 897) 4, 382, 504) 51, 966) Net Position( Deficit)- Beginning of the Year, as Restated 7, 016, 232) 8, 235, 897) 4, 382, 504) 51, 966) Net Position( Deficit)- End of the Year 6, 539, 172) $ ( 7, 946, 486) $ ( 3, 822, 662) $ 19, 056 156
203
Community Mossdale
Facilities Sewer Village
District CLSP Asessment Reassessment
Infrastructure District# 1 2015- 1 Totals
2, 975, 107 $ 125, 733 $ 504, 979 $ 6, 348, 585
3, 728 95 2, 843 17, 096
2, 978, 835 125, 828 507, 822 6, 365, 681
12, 997 7, 403 12, 450 71, 323
27, 997 19, 521 102, 012
2, 914, 538 20, 963 469, 149 4, 667, 544
2, 955, 532 28, 366 501, 120 4, 840, 879
23, 303 97, 462 6, 702 1, 524, 802
43, 334, 554) 294, 210) 4, 322, 699) ( 67, 638, 062)
43, 334, 554) 294, 210) 4, 322, 699) ( 67, 638, 062)
43, 311, 251) $ ( 196, 748) $ ( 4, 315, 997) $ ( 66, 113, 260) 157
204
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205
STATISTICAL SECTION
This part of the City' s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City' s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City' s financial perFormance and well being have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City' s most significant local revenue source, the property tax:
1. Property Tax Levies and Collections
2. Assessed Value and Estimated Actual Value of Taxable Property
3. Principal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City' s current levels of outstanding debt and the City' s ability to issue additional debt in the future:
1. Direct and Overlapping Property Tax Rates
2. Direct and Overlapping Governments Sales Tax Rates
3. Legal Debt Margin Information
4. Outstanding Debt
5. Computation of Direct and Overlapping Debt
6. Pledged- Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City' s financial activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City' s financial report relates to the services the City provides and the activities it performs:
1. Full-time and Part-time City Employees by Function
2. Operating Indicators by Function
3. Capital Asset Statistics by Function
4. Water Sold by Type of Customer
5. Water Rates
6. Ten Largest Water Customers
7. Top 25 Sales Tax Producers
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
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CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2012 2013 2014 2015
Governmental activities:
Net investments in
capital assets 124, 614, 693 $ 127, 600, 645 $ 140, 357, 523 $ 145, 671, 748 Restricted 6, 738, 303 6, 989, 280 4, 865, 583 7, 733, 824 Unrestricted 31, 849, 848 31, 954, 985 31, 716, 374 35, 612, 693 Total governmental activities net position $ 163, 202, 844 $ 166, 544, 910 $ 176, 939, 480 $ 189, 018, 265 Business-type activities:
Net investments in
capital assets 73, 145, 195 $ 76, 371, 218 $ 88, 125, 585 $ 92, 350, 319 Restricted 2, 865, 215 2, 865, 251 2, 696, 850 2, 995, 846 Unrestricted 17, 446, 635 19, 333, 520 25, 692, 676 23, 944, 509 Total business- type activities net position $ 93, 457, 045 $ 98, 569, 989 $ 116, 515, 111 $ 119, 290, 674 Primary government:
Net investments in
capital assets 197, 759, 888 $ 203, 971, 863 $ 228, 483, 108 $ 238, 022, 067 Restricted 9, 603, 518 9, 854, 531 7, 562, 433 10, 729, 670 Unrestricted 49, 296, 483 51, 288, 505 57, 409, 050 59, 557, 202 Total Primary government net position 256, 659, 889 $ 265, 114, 899 $ 293, 454, 591 $ 308, 308, 939 Source: City of Lathrop, California Comprehensive Annual Financial Reports. 160
207
CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2016 2017 2018 2019 2020 2021
148, 474, 931 $ 155, 971, 046 $ 159,727, 304 $ 179, 501, 255 $ 206, 211, 349 $ 218, 894, 403 10, 223, 760 11, 858, 920 10, 376, 172 13, 552, 647 16, 013, 046 103, 964, 923 38, 941, 548 47, 769, 952 52, 396, 920 72, 645, 973 87, 005, 385 33, 463, 086 197, 640, 239 $ 215, 599, 918 $ 222, 500, 396 $ 265, 699, 875 $ 309, 229, 780 $ 356, 322, 412 93, 906, 914 $ 103, 695, 833 $ 120, 279, 431 $ 150, 452, 677 $ 160, 481, 074 $ 166, 717, 832 2,698, 250 1, 706, 637 1, 650, 031 1, 652, 234 1, 651, 396 1, 650, 648 26, 437,255 37, 146,214 30, 919, 752 34, 710, 083 43, 373, 359 52, 748, 394 123, 042, 419 $ 142, 548, 684 $ 152, 849, 214 $ 186, 814, 994 $ 205, 505, 829 $ 221, 116, 874 242, 381, 845 $ 259, 666, 879 $ 280, 006, 735 $ 329, 953, 932 $ 366, 692, 423 $ 385, 612, 235 12, 922, 010 13, 565, 557 12, 026, 203 15, 204, 881 17, 664, 442 105,615, 571 65, 378, 803 84, 916, 166 83, 316, 672 107, 356, 056 130, 378, 744 86, 211, 480 320, 682, 658 $ 358, 148, 602 $ 375, 349, 610 $ 452, 514, 869 $ 514, 735, 609 $ 577, 439, 286 161
208
CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2012 2013 2014 2015
Expenses:
Governmental activities:
Generalgovernment 4, 233, 613 $ 3, 733, 840 $ 4, 680, 110 $ 7, 449, 500 Publicsafety 4, 173, 142 4, 624, 518 5, 940, 125 6, 962, 351 Public works 12, 303, 005 10, 246, 951 13, 888,678 10, 864, 104 Culture and leisure 1, 096, 206 1, 161, 712 1, 111, 917 779, 976 Community development 1, 284, 271 1, 472, 084 1, 573, 972 602, 719 Interest on long- term debt 382, 402 369, 832 924, 941 340, 120 Total govemmental activities expense 23, 472, 639 21, 608, 937 28, 119, 743 26, 998, 770 Business- type activities:
Water 6, 367, 625 7, 090, 866 7, 376, 261 5, 108, 071
Wastewater 4, 357, 544 3, 987, 951 6, 289, 560 4, 433, 501 Total business- type activities expenses 10, 725, 169 11, 078, 817 13, 665, 821 9, 541, 572 Total primary governmentexpenses 34, 197, 808 $ 32, 687, 754 $ 41, 785, 564 $ 36, 540, 342 Program revenues:
Governmental activities:
Charges for services:
General Govemment 277, 653 335, 511 397, 607 491, 076
Public Safety 159, 813 174, 862 716,360 356, 989
Public Works 79, 604 178, 087 202, 488 248, 089
Culture and leisure 153, 052 152, 379 242, 500 220, 963 Communitydevelopment 809, 268 1, 515, 837 2, 189, 603 2, 551, 889 Operating grants and contributions 5, 066, 429 5, 076, 581 4, 947, 223 4, 969, 720 Capital grants and contributions 4, 285, 232 8, 304, 237 23, 115, 518 22, 155, 191 Total governmental activities
program revenues 10, 831, 051 15, 737, 494 31, 811, 299 30, 993, 917 Business-type activities:
Charges for services:
Water 5, 561, 650 6, 293, 790 6, 551, 486 6, 042, 517
Wastewater 4, 959, 693 5, 186, 053 5, 827, 902 5, 730, 148 Operating grants and contributions 3, 710, 000 12, 002, 670 Capital grants and contributions 263, 903 159, 854 159, 854 159, 854 Total business-type activities
program revenues 10, 785, 246 15, 349, 697 24, 541, 912 11, 932, 519 Total primary government
program revenues 21, 616, 297 $ 31, 087, 191 $ 56, 353, 211 $ 42, 926, 436 Net revenues( expenses):
Governmental activities 12, 641, 588) ( 5, 871, 443) 3, 691, 556 3, 995, 147 Business- type activities 60, 077 4, 270, 880 10, 876, 091 2, 390, 947 Total net revenues( expenses) 12, 581, 511) $ ( 1, 600, 563) $ 14, 567, 647 $ 6, 386, 094 General revenues and other changes in net position:
Governmental activities:
Taxes:
Property tax 2, 821, 113 2, 810, 704 2, 946, 083 3, 273, 006 Sales and use taxes 2, 512, 565 3, 128, 882 6, 676, 994 5, 947, 812 Franchisetaxes 679, 295 667, 509 705,405 685, 140
Other taxes 232, 204 466, 328 419, 267 449, 950
Motor vehicle in lieu, unrestricted 1, 100, 388 1, 076, 010 1, 118, 489 1, 237, 606 Investment income 104, 018 38,959 67, 431 80, 844
Other general revenues 63, 662 262, 023 395, 810 301, 192 Transfers 1, 200, 418 763, 094 ( 5, 626, 465) 84, 391)
Total governmental activities 8, 713, 663 9, 213, 509 6, 703, 014 11, 891, 159 Business- type activities:
Investment income 178, 169 59, 419 49, 915 63, 492
Miscellaneous 1, 560, 928 1, 545, 739 1, 392, 651 675, 204 Transfers 1, 200, 418) 763, 094) 5, 626, 465 84, 391
Total business- type activities 538, 679 842, 064 7, 069, 031 823, 087 Total primary government 9, 252, 342 $ 10, 055, 573 $ 13, 772, 045 $ 12, 714, 246 Changes in net position
Governmental activities 3, 927, 925) 3, 342, 066 10, 394, 570 15, 886, 306 Business- typeactivities 598, 756 5, 112, 944 17, 945, 122 3, 214, 034 Total primary government 3, 329, 169) $ 8, 455, 010 $ 28, 339, 692 $ 19, 100, 340 162
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CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2016 2017 2018 2019 2020 2021
5, 614, 173 $ 4, 580, 381 $ 4, 917, 617 $ 5, 307, 052 $ 5, 944, 111 $ 6, 544, 720 8, 048, 625 9, 683, 636 10, 965, 814 11, 284, 963 12, 121, 072 11, 729, 668 7, 864, 470 13, 125, 373 13, 066, 756 16, 835, 406 19, 195, 792 19, 892, 748 1, 395, 287 1, 300, 832 1, 331, 811 1, 442,202 1, 468, 471 1, 466, 177 1, 712, 156 993, 885 1, 256, 506 977, 552 1, 317, 693 8, 227, 717 880, 036 319, 164 100, 088 46, 410 89, 123 241, 454
25, 514, 747 30, 003, 271 31, 638, 592 35, 893, 585 40, 136, 262 48, 102, 484 4, 941, 845 5, 828, 411 4, 969, 618 6, 303,489 6, 906, 021 6, 767, 503 3, 587, 602 5, 393, 728 1, 204, 762 9, 206, 503 7, 476, 439 7, 926, 063 8, 529, 447 11, 222, 139 6, 174, 380 15, 509, 992 14, 382, 460 14, 693, 566 34, 044, 194 $ 41, 225, 410 $ 37, 812, 972 $ 51, 403, 577 $ 54, 518, 722 $ 62, 796, 050 551, 613 462, 696 438, 974 528, 673 465, 303 6, 961, 502 365, 009 231, 164 424, 909 775, 581 504, 277 243, 035
258, 005 1, 697, 831 1, 184, 297 1, 874, 445 473, 036 3, 581, 829 205, 376 283, 662 279, 505 341, 016 285, 143 124, 652
3, 947, 881 3, 131, 768 2, 916, 089 3, 880, 593 6, 507, 913 3, 880, 053 5, 016, 283 4, 841, 037 5, 459, 511 5, 674, 834 6, 105, 531 2, 709, 984 9, 759, 080 30, 838, 179 10, 069, 773 40, 920, 445 43, 291, 735 16, 740, 299 20, 103, 247 41, 486, 337 20, 773, 058 53, 995, 587 57, 632, 938 34, 241, 354 5, 849, 963 6, 856, 028 8, 331, 835 9, 052, 906 10, 352, 614 10, 239, 976 5, 233, 840 5, 791, 155 6, 533, 098 7, 923, 942 8, 633, 545 8, 776, 287 159, 854 159,854 159, 854 32, 556, 339 11, 691, 580 6, 862, 837 11, 243, 657 12, 807, 037 15, 024, 787 49, 533, 187 30, 677, 739 25, 879, 100 31, 346, 904 $ 54, 293, 374 $ 35, 797, 845 $ 103, 528, 774 $ 88, 310, 677 $ 6Q120, 454 5, 411, 500) 11, 483, 066 ( 10, 865, 534) 18, 102, 002 17, 496, 676 ( 13, 861, 130) 2, 714, 210 1, 584, 898 8, 850, 407 34, 023, 195 16, 295, 279 11, 185, 534 2, 697, 290) $ 13, 067, 964 $ ( 2, 015, 127) $ 52, 125, 197 $ 33, 791, 955 $ ( 2, 675, 596) 3, 566, 656 3, 980, 606 4, 285, 832 4, 710, 374 5, 333, 918 8, 613, 482 6, 209, 105 6, 337, 138 9, 211, 228 12, 001, 476 10, 501, 615 18, 190, 475 518, 183 771, 288 877, 633 1, 204, 106 1, 241, 635 1, 530, 878 743, 896 565, 715 634, 335 666, 791 582, 552 30, 620, 998 1, 324, 094 1, 555, 026 1, 794, 526 1, 898, 011 2, 193, 976 738, 708 346,915 19, 282 979,493 1, 996, 503 2, 786, 291 701, 941 1, 745, 978 10, 090, 096 379, 591 149, 364 184, 705 945, 547 421, 353) ( 16, 842, 538) 137, 582) 2, 439, 302 3, 255, 411 1, 777, 930 14, 033, 474 6, 476, 613 18, 025, 056 25, 065, 927 26, 080, 103 63, 119, 959 200, 063 214, 510 405, 014 782, 839 741, 372 364, 403
416, 119 864, 319 907, 527 1, 599, 048 4, 909, 595 5, 692, 221 421, 353 16, 842, 538 137, 582 ( 2, 439, 302) ( 3, 255, 411) ( 1, 777, 930) 1, 037, 535 17, 921, 367 1, 450, 123 57, 415) 2, 395, 556 4,278, 694 15, 071, 009 $ 24, 397, 980 $ 19, 475, 179 $ 25, 008, 512 $ 28, 475, 659 $ 67, 398, 653 8, 621, 974 17, 959, 679 7, 159, 522 43, 167, 929 43, 576, 779 49, 258, 829 3, 751, 745 19, 506, 265 10, 300, 530 33, 965, 780 18, 690, 835 15, 464, 228 12, 373, 719 $ 37, 465, 944 $ 17, 460, 052 $ 77, 133, 709 $ 62, 267, 614 $ 64, 723, 057 163
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CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2012 2013 2014 2015
General fund:
Nonspendable 7, 235, 931 $ 7, 175, 257 $ 6, 380, 018 $ 6, 852, 691 Restricted
Committed 402, 197
Assigned 1, 248, 093 1, 229, 504
Unassigned 8, 038, 858 9, 784, 715 16, 234, 527 11, 091, 860 Total general fund 16, 925, 079 $ 18, 189, 476 $ 22, 614, 545 $ 17, 944, 551 All other governmental funds:
Restricted 3, 813, 152 $ 4, 142, 620 $ 3, 890, 049 $ 6, 823, 678 Committed 19, 727, 430 19, 333, 997 12, 977, 322 22, 534, 880 Assigned 264, 923 930, 347 880, 383
Unassigned 259, 533 364)
Total all other governmental funds 23, 800, 115 $ 23, 741, 540 $ 17, 797, 718 $ 30, 238, 577 FY2021 reflects the implementation of GASB 84.
Source: City of Lathrop, California
164
211
CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2016 2017 2018 2019 2020 2021*
6, 665, 677 $ 6, 180, 434 $ 5, 650, 104 $ 5, 225, 742 $ 3, 470, 982 $ 3, 282, 311 2, 233, 234 29, 678, 802 29, 664, 824
2, 616, 835
12, 861, 107 16, 496, 212 21, 538, 365 31, 169, 562 4, 289, 278 6,679, 913 21, 760, 018 $ 22, 676, 646 $ 27, 188, 469 $ 36, 395, 304 $ 40, 055, 897 $ 39,627, 048 4, 513, 322 $ 4, 701, 300 $ 3, 797, 087 $ 4, 701, 645 $ 9, 116, 860 $ 103, 964, 923 25, 829, 474 35, 779, 675 36, 015, 106 49, 619, 728 58, 214, 668 975, 042 784, 139 663, 674 549, 720 572, 817
233) 120) 163, 756) 2, 500) 773, 287)
31, 317, 605 $ 41, 264, 994 $ 40, 475, 867 $ 54, 707, 337 $ 67, 901, 845 $ 103, 191, 636 165
212
CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2012 2013 2014 2015
Revenues:
Taxes and assessments 10, 091, 942 $ 12, 092, 527 $ 15, 462, 332 $ 21, 268, 849 Licenses and permits 406, 819 634, 934 749, 845 1, 373, 909 Fines, forfeitures, and penalties 1, 568, 643 1, 564, 795 1, 476, 258 1, 486, 888 Intergovernmental 3, 672, 978 7, 107, 760 13, 291, 995 11, 177, 149 Use of Money& Property 135, 177 62, 939 116, 968 159, 262 Charges for current services 835, 195 1, 449, 684 2, 727, 193 2, 207, 080 Contributions( Developer) 9, 779, 408 1, 094, 140
Other 1, 633, 542 1, 275, 270 536, 779 4, 202, 190
Total revenues 18, 344, 296 $ 24, 187, 909 $ 44, 140, 778 $ 42, 969, 467 Expenditures
Current:
General government 3, 952, 670 3, 318, 835 4, 240, 661 8, 063, 724 Community development 987, 494 1, 222, 152 1, 323, 932 1, 254, 836 Public safety 4, 088, 676 4, 510, 204 5, 829, 809 7, 030, 624 Publicworks 9, 007, 812 9, 197, 006 17, 040, 900 15, 482, 137 Culture and leisure 1, 043, 340 1, 069, 332 1, 063, 957 1, 048, 531 CapitalOutlay 480, 929 3, 795, 717 9, 334, 496 1, 604, 530 Debt service:
Principal retirement 249, 347 262, 103 274, 370 289, 709 Interest and fiscal charges 382, 402 369, 832 924, 941 340, 120 Total expenditures 20, 192, 670 $ 23, 745, 181 $ 40, 033, 066 $ 35, 114, 211 Excess ( deficiency) of
revenues over( under)
expenditures 1, 848, 374) $ 442, 728 $ 4, 107, 712 $ 7, 855, 256 Other financing sources( uses):
Proceeds from issuance of long- term dE
Transfers in 11, 926, 959 9, 379, 077 18, 471, 301 17, 566, 636 Transfers out 10, 726, 541) 8, 615, 983) 24, 097, 766) 17, 651, 027) Total other financing
sources( uses) 1, 200, 418 $ 763, 094 $ ( 5, 626, 465) $ ( 84, 391) Net change in fund balances $ ( 647, 956) $ 1, 205, 822 $ ( 1, 518, 753) $ 7, 770, 865 Debt service as a percentage of
noncapital expenditures 3. 3% 3. 3% 4. 1% 1. 9%
FY2021 reflects the implementation of GASB 84.
Source: City of Lathrop, California
166
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CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2016 2017 2018 2019 2020 2021*
18, 494, 460 $ 22, 885, 183 $ 22, 571, 206 $ 35, 307, 490 $ 32, 969, 640 $ 59, 694, 541 1, 283, 193 1, 808, 623 1, 266, 197 1, 823, 951 2, 930, 344 3, 191, 727 1, 658, 639 1, 949, 910 2, 237, 680 2, 542, 551 1, 973, 138 1, 628, 103 5, 489, 546 3, 134, 272 4, 420, 261 4, 373, 978 5, 281, 487 7, 045, 036 382, 724 392, 493 1, 366, 160 2, 433, 126 3, 299, 084 701, 941 3, 725, 964 3, 605, 846 3, 508, 608 4, 656, 065 4, 523, 327 6, 208, 805 19, 675, 946 2, 751, 850 536, 277 357, 105 7, 595, 547
3, 523, 548 1, 353, 215 813, 734 550, 982 657, 995 945, 547 34, 558, 074 $ 54, 805, 488 $ 38, 935, 696 $ 52, 224, 420 $ 51, 992, 120 $ 87, 011, 247 4, 675, 898 4, 406, 106 4, 770, 853 5, 137, 588 5, 748, 979 6, 241, 381 1, 657, 178 784, 763 1, 109, 714 838, 993 1, 153, 119 1, 220, 515 7, 297, 872 9, 560, 119 10, 724, 423 11, 222, 012 12, 001, 225 11, 507, 852 6, 687, 275 7, 616, 246 7, 048, 016 9, 984, 165 10, 701, 329 19, 627, 773 1, 296, 370 1, 226, 638 1, 275, 334 1, 384, 798 1, 411, 336 1, 323, 042 4, 361, 924 2, 920, 897 9, 761, 990 2, 643, 451 6, 950, 445 11, 300, 021 1, 683, 347 265, 000 285, 000 290, 000 300, 000
390, 710 319, 164 100, 088 46, 410 89, 123 241, 454
28, 050, 574 $ 27, 098, 933 $ 35, 075, 418 $ 31, 257, 417 $ 38, 345, 556 $ 51, 762, 038 6, 507, 500 $ 27, 706, 555 $ 3, 860, 278 $ 20, 967, 003 $ 13, 646, 564 $ 35, 249, 209 1, 191, 652)
12, 971, 420 10, 394, 523 12, 389, 403 14, 380, 867 24, 940, 959 35, 131, 963 13, 392, 773) 27, 237, 061) 12, 526, 985) 11, 941, 565) 21, 685, 548) 33, 354, 033) 1, 613, 005) $ ( 16, 842, 538) $ ( 137, 582) $ 2, 439, 302 $ 3, 255, 411 $ 1, 777, 930 4, 894, 495 $ 10, 864, 017 $ 3, 722, 696 $ 23,406, 305 $ 16, 901, 975 $ 37, 027, 139
9. 6% 2. 5% 1. 5% 0. 2% 1. 2% 1. 4%
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CITY OF LATHROP
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy Total Collection to Date
Taxes Levied Collection in
Fiscal for the Fiscal Percent Subsequent Percent
Year Year Amount of Levy Years Amount of Levy
2012 2, 706, 678 2, 706, 678 100. 00% 2, 706, 678 100. 00% 2013 2, 681, 516 2, 681, 516 100. 00% 2, 681, 516 100. 00% 2014 2, 821, 126 2, 821, 126 100. 00% 2, 821, 126 100. 00% 2015 3, 098, 364 3, 098, 364 100. 00°/ a 3, 098, 364 100. 00% 2016 3, 353, 607 3, 353, 607 100. 00% 3, 353, 607 100. 00% 2017 3, 727, 479 3, 727, 479 100. 00% 3, 727, 479 100. 00% 2018 4, 125, 753 4, 125, 753 100. 00% 4, 125, 753 100. 00% 2019 4, 309, 587 4, 309, 587 100. 00% 4, 309, 587 100. 00% 2020 4, 812, 631 4, 812, 631 100. 00% 4, 812, 631 100. 00% 2021 5, 326, 609 5, 326, 609 100. 00% 5, 326, 609 100. 00% Source: County of San Joaquin, California, Office of the Controller. 168
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CITY OF LATHROP
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands)
ciry
Gross Taxable Assessed Value Net Taxable Total
Less: Assessed Direct Tax
Fiscal Year Secured Unsecured SBE Nonunitary Exemptions Value Rate 2012 1, 785, 998, 562 157, 292, 439 2, 596, 710 17, 214, 244) 1, 928, 673, 467 0. 140% 2013 1, 732, 727, 557 166, 654, 824 2, 596, 710 17, 214, 244) 1, 884, 764, 847 0. 142% 2014 1, 839, 562, 001 136, 568, 139 5, 070, 340 18, 622, 849) 1, 962, 577, 631 0. 144% 2015 2, 028, 168, 720 148, 658, 207 5, 070, 340 19, 297, 974) 2, 162, 599, 293 0. 143% 2016 2, 188, 540, 780 198, 130, 929 5, 070, 340 18, 624, 442) 2, 373, 117, 607 0. 141% 2017 2, 559, 643, 198 163, 451, 777 6, 170, 020 18, 624, 442) 2, 710, 640, 553 0. 138% 2018 2, 941, 872, 358 174, 127, 391 6, 170, 020 18, 831, 913) 3, 103, 337, 856 0. 133% 2019 3, 117, 977, 243 190, 538, 705 6, 170, 020 3, 314, 685, 968 0. 130% 2020 3, 554, 886, 516 282, 202, 562 6, 170, 020 3, 843, 259, 098 0. 125% 2021 4, 139, 024, 746 280, 821, 500 15, 952, 158 4, 435, 798, 404 0. 120% NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an" inflation factor"( limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is re- assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: County of San Joaquin, California, Office of the County Assessor. 169
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CITY OF LATHROP
Principal Property Taxpayers
Current Year and Ten Years Ago
2021 2012
ercen o ercen o
Total City Total City
Taxable Taxable Taxable
Taxable Assessed Assessed Assessed
Taxpayer Assessed Value Value Value Value
TESLA MOTORS INC 194, 872, 463 4. 39% $ 0. 00%
TRIPOINT LOGISTICS CENTER ILP 129, 000, 000 2. 91% 0. 00% LIT INDUSTRIAL LP 122, 693, 416 2. 77% 0. 00%
UNITED PARCEL SERVICE INC 87, 157, 790 1. 96% 0. 00%
PW FUND B DEVELOPMENT LLC 72, 753, 116 1. 64% 0. 00%
COLONY 2019 2 BULK INDUSTRIAL LL 65, 280, 000 1. 47% 0. 00% SUPER STORE INDUSTRIES 64, 145, 220 1. 45% 41, 364, 326 2. 14% CENTERPOINT PROPERTIES TRUST 63, 234, 645 1. 43% 0. 00% J R SIMPLOT COMPANY CORP 62, 164, 162 1. 40% 40, 873, 844 2. 12% CALIFIA LLC 59, 157, 736 1. 33% 55, 349, 250 2. 87%
Source: County of San Joaquin, California, Office of the County Assessor. 171
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CITY OF LATHROP
Sales Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
rate per$ 100 of assessed value)
Fiscal Basic
Year County- wide Levy' School' Z' All Other Total Rate 2012 1. 00000% 0. 09500% 0. 00000% 1. 09500%
2013 1. 00000% 0. 09610% 0. 00000% 1. 09610%
2014 1. 00000% 0. 09250% 0. 00000% 1. 09250%
2015 1. 00000% 0. 09230% 0. 00000% 1. 09230%
2016 1. 00000% 0. 14200% 0. 00000% 1. 14200%
2017 1. 00000% 0. 12820% 0. 00000% 1. 12820%
2018 1. 00000% 0. 13030% 0. 00000% 1. 13030%
2019 1. 00000% 0. 12280% 0. 00000% 1. 12280%
2020 1. 00000% 0. 11400% 0. 00000% 1. 11400%
2021 1. 00000% 0. 10490% 0. 00000% 1. 10490%
NOTE:
1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a
1. 00% fixed amount. This 1. 00% is shared by all taxing agencies, including the City of Lathrop, for which the subject property resides within. The City of Lathrop' s portion varies by several Tax Rate Areas ( TRAs) within the City.
Source: San Joaquin County Assessor 2011/ 12- 2020/ 21 Tax Rate Table 172
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CITY OF LATHROP
Sales Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Measure
City Measure C Transportation State of
Fiscal Direct K General Development San Joaquin California Year Rate Rate Purpose Act Rate County Rate Rate Total
2012 1. 00% 0. 50% 0. 25% 1. 00% 5. 00% 7. 75%
2013 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 25% 9. 00% 2014 1. 00% 0. 50% 1. 00% *'' 0. 25% 1. 00% 5. 25% 9. 00% 2015 1. 00% 0. 50% 1. 00% * 0. 25% 1. 00% 5. 25% 9. 00°/ a 2016 1. 00°/ a 0. 50% 1. 00% `* 0. 25% 1. 00% 5. 25% 9. 00% 2017 1. 00% 0. 50% 1. 00% '`" 0. 25% 1. 00% 5. 00% 8. 75% 2018 1. 00% 0. 50% 1. 00% '`" 0. 25% 1. 00% 5. 00% 8. 75% 2019 1. 00% 0. 50% 1. 00% 0. 25% 1. 00% 5. 00% 8. 75%
2020 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2021 1. 00% 0. 50% 1. 00% '`' 0. 25°/ a 1. 00% 5. 00% 8. 75% NOTE:
A 1. 00% increase in Sales and Use Tax became effective as of April 1, 2009 to augment the State of California' s budget. On May 19, 2009, the voters did not approve the proposed" Budget Stabilization" constitutional amendment and the expiration date of this 1. 00% increase was on July 1, 2011.
On November 6, 2012 the voters of Lathrop approved Measure C. Measure C is an additional 1: sales tax to be used for Public Safety and essential City services
Source: City of Lathrop, California Finance Department
County of San Joaquin, California, Office of the Auditor- Controller 173
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CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2012 2013 2014 2015
Gross Assessed Valuation 1, 928, 673, 467 $ 1, 884, 764,847 $ 1, 962, 577, 631 $ 2, 162, 599, 293 Debt Margin Ratio( 1) 3. 75% 3. 75% 3. 75% 3. 75°/o
Debt Margin ( Limit) 72, 325, 255 $ 70, 678, 682 $ 73, 596, 661 $ 81, 097, 473 Less: total net debt applicable to limit:
General obligation bonds
Net Legal Debt Margin 72, 325, 255 $ 70, 678, 682 $ 73, 596, 661 $ 81, 097, 473 Total debt applicable to the the limit
as a percentage of debt limit 0°/o 0% 0% 0%
Notes
1) The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.
Effective with the 1981- 82 fiscal year, each parcel is now assessed at 100% of market value( as of the most recent change in ownership for that parcel.) The computation shown above reflects a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. The limit shown is 3. 75%( one- fourth of the previous limit of 15%).
Source: City of Lathrop, California Finance Department and the County of San Joaquin, California, Office of the Controller 174
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CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021
2, 373, 117, 607 $ 2, 710, 640, 553 $ 3, 103, 337, 856 $ 3, 314, 685, 968 $ 3, 843, 259, 098 $ 4, 435, 798, 404
3. 75% 3. 75% 3. 75% 3.75% 3. 75% 3. 75%
88, 991, 910 $ 101, 649, 021 $ 116, 375, 170 $ 124, 300, 724 $ 144, 122, 216 $ 166, 342, 440 88, 991, 910 $ 101, 649, 021 $ 116, 375, 170 $ 124, 300, 724 $ 144, 122, 216 $ 166, 342, 440 0% 0% 0% 0°/a 0% 0%
175
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CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Governmental Activities Business- type Activities
Total
Fiscal Capital Leases Governmental Water Revenue Certificates of PNC Bank Year 1) Activities Bonds Notes Participation Loan ( 2)
2012 7, 651, 202 7, 651, 202 29, 305, 000 6, 203, 000
2013 7, 139, 752 7, 139, 752 24, 945, 000 5, 950, 203
2014 6, 865, 382 6, 865, 382 12, 970, 000 5, 667, 004
2015 6, 599, 319 6, 599, 319 12, 635, 000 5, 373, 806
2016 4, 190, 000 4, 190, 000 12, 635, 000 5, 070, 256
2017 3, 925, 000 3, 925, 000 11, 455, 000 ( 4) 4, 755, 863 2018 3, 640, 000 3, 640, 000 10, 846, 145 4, 430, 488
2019 3, 640, 000 3, 640, 000 10, 207, 524 4, 093, 638
2020 3, 350, 000 3, 350, 000 9, 550, 312 3, 744, 895
2021 3, 050, 000 3, 050, 000 8, 873, 968 3, 383, 840
Notes: Details regarding the City' s outstanding debt can be found in the notes to the financial statements. 1) On July 1, 2005, the City entered into a capital lease agreement for the new City Hall Building. 2) On May 4, 2012, the City refunded the 2000 Certificates of Participation with the Compass Bank Loan. 3) These ratios are calculated using personal income and population for the prior calendar year. 4) On May 2017, the City refunded the Water Revenue Bonds.
Source: City of Lathrop, California Finance Department
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CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Business- type Activities
State Percentage
Revolving Capital Total Business- Total Primary of Personal Debt Per Fund Loan Leases type Activities Government Income Capita ( 3) 9, 528, 982 31, 055 45, 068, 037 52, 719, 239 147. 02% 2, 745 9, 340, 188 23, 717 40, 259, 108 47, 398, 860 143. 22% 2, 390 8, 956, 038 27, 593, 042 34, 458, 424 105. 13% 1, 742
8, 562, 968 26, 571, 774 33, 171, 094 93. 63% 1, 500
8, 160, 773 25, 866, 029 30, 056, 029 82. 47°/ a 1, 301 7, 749, 237 23, 960, 100 27, 885, 100 69. 04% 1, 149
7, 328, 146 22, 604, 779 26, 244, 779 57. 43% 1, 081
6, 897, 278 21, 198, 440 24, 838, 440 47. 89% 996
6, 456, 406 19, 751, 613 23, 101, 613 44. 54% 861
6, 010, 445 18, 268, 253 21, 318, 253 37. 66% 748
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CITY OF LATHROP
Computation of Direct and Overlapping Debt
June 30, 2021
FY 2020/ 21 City Assessed Valuation 4, 435, 798, 404
Redevelopment Agency Incremental Valuation
Adjusted Assessed Valuation 4, 435, 798, 404
Percentage
Applicable to
Total Debt City of City' s Share of
Overlapping Tax and Assessment Debt 6/ 30121 Lathrop( 1) Debt 6/ 30/ 2021 San Joaquin Delta Community College District 200, 505, 000 4. 794% $ 9, 612, 210 Manteca Unified School District 167, 369, 885 20. 375% 34, 101, 614 Tracy Unified School District 33, 705, 000 4. 399% 1, 482, 683 Banta School District 415, 000 64. 012% 265, 650
Manteca Unified School District Community Facility District No. 1989- 2 21, 305, 000 20. 749% 4, 420, 574 Manteca Unified School District Community Facility District No. 2005- 4 5, 130, 000 100. 000% 5, 130, 000 Banta School District Community Facilities District No. 2011- 1 4, 813, 000 100. 000°/ a 4, 813, 000 River Islands Public Financing Authority Community Facilities District No. 2003- 1 253, 718, 493 100. 000% 253, 718, 493 River Islands Public Financing Authority Community Facilities District No. 2015- 1 185, 110, 000 100. 000% 185, 110, 000 River Islands Public Financing Authority Community Facilities District No. 2019- 1 38, 430, 000 100. 000% 38, 430, 000 City of Lathrop Community Facilities District No 2003- 1 5, 245, 000 100. 000% 5, 245, 000 City of Lathrop Community Facilities District No 2003- 2 5, 175, 000 100. 000% 5, 175, 000 City of Lathrop Community Facilities District No 2018- 1, I. A. s 1- 5 45, 715, 000 100. 000% 45, 715, 000 City of Lathrop 1915 Act Bonds 23, 590, 000 100. 000% 23, 590, 000 Reclamation District No. 17 Assessment District 21, 637, 111 54. 349% 11, 759, 553 California Statewide Community Development Authority 1915 Act Bonds 1, 937, 000 100. 000% 1, 937, 000 Total Overlapping Tax and Assessment Debt S 7, 013, 800, 489 S 630, 505, 777 Ratios to FY 2020/ 21 Assessed Valuation:
Totat Overlapping Tax and Assessment Debt 74. 21%
Direct and Overlapping Generel Fund Obligation Debt
San Joaquin County Certificates of Participation 65, 595, 000 5. 210% 3, 417, 500 Manteca Unified School District General Fund Obligations 17, 973, 000 20. 375% 3, 661, 999 City of Lathrop General Fund Obligations 3, 050, 000 100. 000% 3, 050, 000 Lathrop- Manteca Rural Fire Protection District Certificates of Participation 3, 570, 000 76. 013°/ a 2, 713, 664 Total Direct and Overlapping General Fund Debt a 12, 843, 162 Total Direct Debt 3, 050, 000
Total Overlapping Debt 640, 298, 940
Combined Total Debt 643, 348, 940
2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non- bonded capital lease obligations.
Ratios to Adjusted Assessed Valuation
Total Direct Debt 0. 07%
Combined Total Debt 14. 50%
Source: California Municipal Statistics, Inc.
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CITY OF LATHROP
Pledged- Revenue Coverage
Last Ten Fiscal Years
2000 Certificates of Participation/ PNC Bank Loan ( 1)
Debt Service
Less Net
Fiscal Water Operating Available
Year Revenue ( 3) Expenses ( 4) Revenue Principal tnterest Coverage 2012 7, 115, 515 3, 332, 047 3, 783, 468 353, 750 10. 70 2013 7, 803, 287 3, 989, 183 3, 814, 104 252, 797 236, 203 7. 80 2014 7, 884, 887 3, 815, 990 4, 068, 897 283, 199 205, 801 8. 32 2015 6, 642, 758 3, 484, 902 3, 157, 856 293, 198 195, 802 6. 46 2016 6, 385, 191 3, 479, 010 2, 906, 181 303, 550 185, 450 5. 94 2017 7, 834, 887 4, 366, 161 3, 468, 726 314, 393 174, 733 7. 09 2018 8, 491, 689 4, 969, 618 3, 522, 071 325, 363 163, 637 7. 20 2019 9, 212, 760 6, 303, 489 2, 909, 271 336, 850 152, 150 5. 95 2020 10, 949, 739 5, 539, 228 5, 410, 511 348, 743 140, 257 11. 06 2021 10, 241, 182 6, 216, 829 4, 024, 353 361, 056 127, 944 8. 23 Note: Details regarding the City' s outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation expenses. 1) The 2000 COP' s were refunded by the PNC Bank Loan on May 4, 2012.
The Required Debt coverage ratio for the PNC Bank Loan is 1. 10°/ a. 2) The Required Debt coverage ratio for 2003 COP' s/ Pacific Premier Bank Loan & SRF Loan is 1. 00%. 3) Gross revenues include interest earnings and connection fees. 4) Operating expenses from Statement of Revenues, Expenses and Changes. 5) Source: Debt Service Schedule. The Water Revenue Certificates of Deposit Series 1993A were funded on May 24, 2000. On May 24, 2000 the City issued the Installment Purchase Certificates of Participation, 2000 Series A. On July 16, 2003 the City issued Revenue Bonds ( Water Supply Project), Series 2003. On May 4, 2012 the Compass Bank Loan refunded the 2000 COPs ( Compass Bank Loan Cash Flow and Yield Verification Report)
6) Expenses include 2000 Certificates of Participation Debt Service Requirements. 7) Debt Service Requirements of 2003 Certificates of Participation & SRF Loan is net of capitalized interest.
Source: City of Lathrop, California Finance Department
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CITY OF LATHROP
Pledged- Revenue Coverage
Last Ten Fiscal Years
2003 COP' s/ Pacific Premier Bank Loan 8 SRF Loan ( 2)
Debt Service
Net Available
Revenue( 5) Principal Interest Coverage
3, 429, 718 615, 000 1, 743, 738 1. 45
3, 325, 104 650, 000 1, 713, 603 1. 41
3, 579, 897 680, 000 1, 681, 102 1. 52
2, 668, 856 728, 070 954, 719 1. 59
2, 417, 181 402, 196 945, 592 1. 79
2, 979, 600 411, 536 936, 254 2. 21
3, 033, 071 421, 091 926, 699 2. 25
2, 420, 271 1, 069, 489 475, 545 1. 57
4, 921, 511 1, 093, 053 451, 981 3. 19
3, 535, 353 1, 122, 305 422, 729 2. 29
181
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CITY OF LATHROP
Demographic and Economic Statistics
Last Ten Calendar Years
Personal
Income( in Per Capita
Calendar Population thousands) Personal Unemployment
Year 1) 2) Income ( 2) Rate( 2)
2011 18, 908 360, 197 19, 050 13. 7%
2012 19, 209 358, 594 18, 668 10. 4%
2013 19, 831 330, 960 16, 689 9. 4%
2014 19, 786 327, 775 16, 566 10. 3%
2015 22, 112 354, 280 16, 022 8. 5%
2016 23, 110 364, 434 15, 769 7. 8/ a
2017 24, 268 403, 896 16, 643 6. 3%
2018 24, 936 457, 006 18, 327 5. 2%
2019 26, 833 518, 675 19, 329 4. 3%
2020 28, 503 566, 062 19, 859 9. 6°/ a
Sources: ( 1) California State Department of Finance
2) 2010 and later- Income, Age and Education Data- US Census Bureau, most recent American Community Survey
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CITY OF LATHROP
Principal Employers
Current Year and Nine Years Ago
2021 2012
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Tesla 2054 19. 94% 0 0. 00%
United Parcel Service ( UPS) 1500 14. 56% 0 0. 00%
Army Air Force Exchange Services 800 7. 77°/ a 0 0. 00% Super Store Industries ( SSI) 50 0. 49% 401 7. 54%
Pflug Packaging 450 4. 37% 75 1. 41%
Simwon America Corp. 378 3. 67% 0 0. 00%
Calfironia Natural Products ( CNP) 375 3. 67% 250 4. 70% MUSD ( L2th op SChools) 337 3. 64% 0 0. 00%
Coast Professional, Inc 300 3. 27% 0 0. 00%
Wayfair 238 2. 91% 0 0. 00%
Ashley Furniture 190 2. 31% 0 0. 00%
CBC Steel Buildings 185 1. 84% 100 1. 88%
Diamond Pet Foods 163 1. 80% 100 1. 88%
JR Simplot Company 145 1. 58% 200 3. 76%
Pratt, LLC 120 1. 41% 0 0. 00%
Total EmploymenY' as used above represents the Estimated total employment of all employers located within City limits.
Source: California Labor Market Information, California EDD Website ( www. ca. gov) City of Lathrop Community Deve/ opment Department
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CITY OF LATHROP
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016
General Government 25. 50 25. 50 23. 40 23. 60 24. 60
Neighborhood &
Community Services( 1) 5. 00 5. 00
Public Safety( 2) 30. 33 30. 33 32. 00 36. 98 36. 98
Public Works 41. 00 41. 00 21. 83 22. 83 29. 50
Community Development 23. 75 23. 75 8. 34 6. 67 4. 00
Culture & Leisure 19. 64 20. 64 18. 41 20. 76 21. 00
Total Positions 145. 22 146. 22 103. 98 110. 84 116. 08 less Unfunded Positions ( 3) 52. 61 53. 61
Net Employees 92. 61 92. 61 103. 98 110. 84 116. 08
1) The Neighborhood & Community Services Department was created in March 2010 and later collapsed into Public Works/ Community 2) Police services are a contract service provided by San Joaquin County Sherriff Department.
Fire Service is provided by Lathrop Manteca Fire District. 3) Fiscal Year 2013 was the last year of allocating and tracking unfunded positions.
Source: City of Lathrop, California Annual Adopted Budgets. 184
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CITY OF LATHROP
Full- Time and Part- Time City Employees by Function
Last Ten Fiscal Years
2017 2018 2019 2020 2021
23. 60 23. 60 24. 60 26. 60 28. 63
37. 98 35. 98 36. 98 36. 98 36. 98
30. 80 33. 80 40. 47 40. 47 42. 47
3. 10 4. 10 4. 43 4. 43 4. 40
20. 56 21. 01 21. 01 21. 01 28. 60
116. 04 118. 49 127. 49 12 9. 49 141. 08
116. 04 118. 49 127. 49 129. 49 141. 08
185
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CITY OF LATHROP
Operating Indicators by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Arrests 612 670 489 708 572 705 550 558 554 624
Parking Citations Issued 567 291 380 444 696 1, 385 1, 084 1, 389 1, 237 1, 489 Code Enforcement
Housing Cases 21 40 20 35 29 28 54 74 64 55
Public Nuisance Cases 185 213 61 206 287 345 204 126 165 210 Vehicle Cases 21 28 12 11 67 193 140 118 129 145
Weed Abatement Cases 31 5 2 108 122 126 124 120
Building Permits
Single Family Dwellings 63 146 130 350 220 291 392 381 649 879 Parks and recreation:
Number of recreation classes 49 49 202 34 56 67 116 126 95 176 Number of facility rentals 302 675 1, 870 542 450 390 1, 598 1, 388 1, 041 206 Water:
New connections 38 140 190 266 179 163 392 381 649 879
Average daily consumption 3, 110 4, 014 3, 550 3, 508 3, 052 3, 274 4, 200 4, 128 4, 128 4, 742 thousands of gallons)
Sewer:
New connections 38 140 190 266 179 163 392 381 649 879
Source: City of Lathrop, Califomia departmental sources. 186
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CITY OF LATHROP
Capital Assets Statistics by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire Stations( 1)
Public works:
Streets( miles) 72. 74 82. 80 82. 80 84. 20 84. 20 84. 20 92. 90 92. 90 97. 90 109. 70 Streetlights 1, 433 1, 433 1, 433 1, 448 1, 472 1, 472 1, 835 1, 835 1, 835 2, 135 Parks and recreation:
Parks( 2) 13 14 16 16 16 16 18 20 22 25
Community centers 1 1 2 2 2 2 2 2 2 2
Senior centers 1 1 1 1 1 1 1 1 1 1
Water:
Water mains( miles) 73. 08 101. 40 99. 60 101. 80 101. 80 101. 80 101. 80 142. 00 147. 00 159. 00 Maximum daily capacity 20, 126 21, 700 15, 250 15, 250 15, 250 15, 250 15, 250 16, 500 16, 500 16, 500 thousands of gallons)
Wastewater:
Sanitary sewer( miles) 57. 16 60. 40 62. 03 71. 00 71. 00 71. 00 71. 00 91. 80 96. 80 108. 80 Miles of Reclaimed Water Lines 18. 33 18. 33 21. 40 21. 80 21. 80 21. 80 21. 80 21. 80 25. 80 27. 80 Maximum daily treatment capacity 2, 140 2, 416 2, 416 2, 200 2, 200 1, 450 1, 450 3, 140 3, 140 3, 140 thousands of gallons)
NOTE:
1) The City of Lathrop' s fire protection is provided by the Lathrop- Manteca Fire District. 2) Soure: City of Lathrop, Parks and Recreation Guide
Source: City of Lathrop, California departmental sources. 187
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CITY OF LATHROP
Water Sold by Type of Customer
Last Ten Fiscal Years
in thousands of gallons)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Type of Customer:
Residential 656, 723 740, 938 690,963 671, 095 628,208 625, 187 745, 359 738, 530 794, 181 907, 150 Industrial 263,466 329, 816 291, 935 343,231 283,410 278, 985 395, 110 415,471 406, 181 435, 637 Commercial 68, 559 107,530 116, 496 91, 599 71, 396 101, 549 139, 290 135, 130 145, 195 152,476 Govemmental 129,524 265,931 157, 119 172, 972 177, 791 139, 511 149, 952 126,761 144, 421 199,298 Construction 16, 720 20, 995 39, 058 1, 615 49,923 103, 309 91, 038 85, 601 36, 154 Tota I 1, 134, 992 1, 465,210 1, 295,571 1, 280, 512 1, 160, 805 1, 195, 155 1, 533,020 1, 506, 930 1, 575, 579 1, 73 Q 715 Total direct rate
per 1, 000 gallons $ 2. 45 $ 2. 45 $ 2. 63 $ 2. 63 $ 3. 04 $ 3. 49 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 Source: City of Lathrop, Califomia Public Works Department 188
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CITY OF LATHROP
Water Rates
Last Ten Fiscal Years
SCSWSP
Monthly Rate per CSCDA Facility
Fiscal Year Base Rate 1, 000 Gallons Loan ( 1) Charge( 2) 2011 10. 30 $ 2. 24 9. 10
2012 10. 60 2. 45 9. 10
2013 11. 50 2. 63 9. 10
2014 11. 50 2. 63 9. 10
2015 11. 50 2. 63 9. 10
2016 12. 80 3. 04 9. 10
2017 14. 40 3. 49 9. 10
2018 16. 30 3. 99 9. 10
2019 16. 30 3. 99 9. 10
2020 16. 30 3. 99 9. 10
2021 16. 30 3. 99 9. 10
NOTE:
Rates are based on 5/ 8" meter, which is the standard household meter size. 1) State of California Loan under the Safe Drinking Water Bond Law of 1976 was paid off on March 1, 2001.
2) On July 16, 2003, The City of Lathrop issued $ 32, 530, 000 in Revenue Bonds to finance the acquisition and construction of water system improvements and related facilities, including water treatment facilities and distribuiton pipelines and to pay cost of issuance. The bonds have an ascending interest rate ranging from 3% to 6% and a final maturity date of June 1, 2035.
Source: City of Lathrop, California Finance Department
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CITY OF LATHROP
Ten Largest Water Customers
Current Year and Nine Years Ago
2021 2012
Percent of
Water Total Water Percent of Total
Water Customer Charges Revenues Water Charges Water Revenue California Natural Products 941, 085 9. 19% $ 324, 858 4. 57% City of Lathrop 642, 972 6. 28% 57, 543 0. 81%
Manteca Unified School District 263, 855 2. 58% 0. 00%
Super Store Industries 144, 099 1. 41% 84, 121 1. 18%
Teichert Construction 110, 509 1. 08% 0. 00%
Tesla Motors Inc 90, 624 0. 88% 0. 00%
Banta Elementary School District 83, 702 0. 82% 0. 00%
River Islands Public Finance Authority 66, 618 0. 65% 0. 00% IN- N- OUT Burger# 804 54, 204 0. 53% 0. 00%
Camino Real Mobile Estates 53, 028 0. 52% 0. 00%
Source: City of Lathrop, California Finance Department
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CITY OF LATHROP
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
2021 2012
Business Name Business Category Business Name Business Category Percent of Fiscal Year Total Paid By Top 25 Accounts= 88. 20% Percent of Fiscal Year Total Paid By Top 25 Accounts= 85. 77% Arco AM PM Service Stations Anderson Truss Building Materials Ashley Furniture Dist Center Fulfillment Centers Arco AM PM Service Stations Boral Roofing Contractors Carpenter Co Textiles/ Furnishings CBC Steel Buildings Contractors CBC Steel Buildings Contractors Chevron Service Stations Central Precast Concrete Contractors Chevron Power Market Service Stations Chevron Service Stations Eagles Nest Harley Davidson Boats/ Motorcycles Chevron Service Stations Flying J Travel Plaza Service Stations City of Lathrop GovernmenUSocial Org In N Out Burger Quick- Service Restaurants Eagles Nest Harley Davidson Boats/ Motorcycles Joes Travel Plaza Service Stations Fast Lane Service Stations Pape Kenworth New Motor Vehicle Dealers Interior Specialists Home Furnishings Raymond Handling Concepts Warehse/ Farm/ Const. Equip. Jack in th Box Quick- Service Restaurants Save Mart Grocery Stores Joes Travel Plaza Service Stations Shell Service Stations McDonalds Quick- Service Restaurants Simwon America Corp Warehse/ Farm/ Const. Equip. Medcal Sales Medical/ Biotech Target Discount Dept Stores Mikasa Japanese Bistro Casual Dining Tec Equipment Trailers/ Auto Parts Save Mart Grocery Stores Tesla Motors New Motor Vehicle Dealers Shell Service Stations Top Gun Drywall Supply Building Materials Target Discount Dept Stores Totten Tubes Heavy Industrial Top Gun Drywall Supply Building Materials Tri West Building Materials Tower Mart Service Stations Tuff Boy Sales Trailers/ RVs Two Guys Food & Fuel Service Stations Two Guys Food& Fuel Inc Service Stations USAMotors. Com Used Automotive Dealers Utility Trailer Sales Trailers/ RVs Utility Trailer Sales Trailers/ RVs Wayfair Fulfillment Centers Walgreens Drug Stores
Firms Listed Alphabetically
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller' s Office. 191
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4T7'ACHMEN'° ` C, w
i
i
INDEPENDENT AUDITORS' 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 Honorable Mayor and Members of the City Council
City of Lathrop, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Lathrop, California, ( the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City' s basic financial statements, and have issued our report thereon dated June 24, 2022.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City' s internal control over financial reporting ( internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City' s internal control. Accordingly, we do not express an opinion on the effectiveness of the City' s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity' s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify the following deficiency in internal control, described in the accompanying schedule of findings and questioned costs, that we consider to be a significant deficiency:
Finding 2021- 001 — Settlement Accrual.
r,""',`, PrimeGlobal
240
L L::
To the Honorable Mayor and Members of the City Councii
City of Lathrop, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City' s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed the following instance of noncompliance or other matters that is required to be reported under Gouernment Auditing Standards, and which is described in the accompanying schedule of findings and questioned costs as item 2021- 002.
City' s Response to Findings
The City' s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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 City' 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 City' s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. c%
Sacramento, California
June 24, 2022
241
LSL::
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Settlement Accrual
Reference Number: 2021- 001
Evaluation of Finding:
Significant Deficiency
Condition:
During our review over outstanding litigation involving the City, it was noted that a settlement in the amount of$ 1. 2 million for a condition that existed as of the end of the fiscal year, was not properly accrued, resulting in an understatement of expenditures, liabilities and fund balances.
Criteria:
Generally Accepted Accounting Principles require settlements to be recorded and disclosed once they are reasonable and estimable in the period in which the condition existed.
Cause of Condition:
The settlement was recorded in the following fiscal year.
Effect or Potential Effect of Condition:
The expenditures, liabilities and fund balances of the General were overstated for the fiscal year.
Recommendation:
We recommend the City ensure any fitigation settled after the close of the year is closely reviewed to ensure it is recorded in the proper period.
ManagemenYs Response and Corrective Action:
The City will coordinate the City Attorney's Office and the Finance Department on litigation claims timelines.
The goal of this process will be to ensure the correctness of information and assumptions utilized in accruing pending liabilities. The City will adopt the recommendation from the auditor to develop procedures to ensure any litigation settled after the close of the year will be closely reviewed to ensure it is recorded in the proper period.
AB 1234 Ethics Requirement
Reference Number: 2021- 002
Evaluation of Finding:
Noncompliance
Condition:
During our review over compliance with AB 1234, it was determined that not all council members were in compliance with the ethics requirements of the bill to obtain ethics training every 2 years.
Criteria:
The City should ensure all council members are in compliance with the ethics requirement.
Cause of Condition:
Not all council members appeared to have the proper ethics training completed within the time period.
Effect or Potential Effect of Condition:
The City is out of compliance with the assembly bill.
242
LSL::
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Recommendation:
We recommend that the City ensure that all council members are in compliance with the requirements of AB 1234.
Management' s Response and Corrective Action:
The City agrees with the recommendation and will provide future opportunities to comply with the requirements of AB 1234.
243
Al' ACHiHENT '° r
June 24, 2022
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
We have audited the financial statements of the governmental activities, the business-rype activities, each major fund, and the aggregate remaining fund information of the City of Lathrop, California( the City) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 9, 2021. Professional standards also require that we communicate to you the following information related to our audit.
Sianificant Audit Findinas and Other Issues
Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year 2020-2021. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on managemenYs knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City' s financial statements was:
ManagemenYs estimates of its net pension liability and net other post-employment benefits liability are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net other post- employment benefits asset in determining that they are reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
Management is responsible for the policies and practices used to account for significant unusual transactions. No significant unusual transactions have occurred during fiscal year 2020- 2021.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
PrimeGlobal
244
LS L""
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Corrected and Uncorrected Misstatement
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. In addition, we detected misstatements as a result of audit procedures which were significant, and were subsequently corrected. The details of these misstatements are described in a separate letter dated June 24, 2022.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor' s report. We are pleased to report that no such disagreements arose during the course of our audit.
Circumstances that Affect the Form and Content of the Auditor's Report New auditing standards were implemented in fiscal year 2020-2021 related to Statement of Auditing Standards 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Sfatements, through Statement of Auditing Standards 140, Supplementary Information in Relation to the Financial Statements as a Whole. These standards updated the form and content of the financial statement auditor' s report. The purpose of the change was to present an easier format for users to understand the results of the audit and managemenYs responsibilities.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated June 24, 2022.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a " second opinion" on certain situations. If a consultation involves application of an accounting principle to the City' s financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or/ ssues Discussed with Management We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City' s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 245
LSL::
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Other Matters
We applied certain limited procedures to the managemenYs discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, the schedule of proportionate share of the net pension liability, the schedule of plan contributions, the schedule of changes in the net OPEB liability and related ratios, and the schedule of OPEB plan contributions which are required supplementary information ( RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with managemenYs responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section and statistical section, which accompany the financial statements but are not RSI. Such information 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.
The following new Governmental Accounting Standards Board ( GASB) pronouncements were effective for fiscal year 2020- 2021 audit:
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests- an Amendment of GASB Statement Nos. 14 and 61.
GASB Statement No. 98, The Annual Comprehensive Financial Report.
The following GASB pronouncements are effective in the following fiscal years' audits and should be reviewed for proper implementation by management:
Fiscal year 2022
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Secfion 457 Deferred Compensation Plans. 246
LSL•••
To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
GASB Statement No. 94, Public- Private and Public-Public Partnerships and Availability Payment Arrangement.
GASB Statement No. 96, Subscription- Based Information Technology Arrangements.
Restriction on Use
This information is intended solely for the use of City council and management of City of Lathrop and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
a''
y
Sacramento, California
247
ITEM 4.4
CITY MANAGER' S REPORT
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
AMERICAN PAVEMENT SYSTEMS, INC. FOR THE
MANTHEY ROAD REHABILITATION, CIP PS 21- 08
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc.
for the Manthey Road Rehabilitation, CIP PS 21- 08,
Authorize the Filing of a Notice of Completion,
Release of Contract Retention, and Release of
Performance and Payment Bonds
SUMMARY:
American Pavement Systems, Inc. ( APS) has completed the construction of the Manthey Road Rehabilitation Capital Improvement Project ( CIP) PS 21- 08 ( Project).
Staff has inspected the improvements and has deemed these improvements complete and in accordance with the approved plans and specifications.
APS has submitted lien releases confirming all sub- contractors and suppliers have been paid in full and a one- year warranty bond ( based on 10% of the construction contract) for the improvements to be accepted.
Staff requests City Council accept the improvements constructed by APS for the Manthey Road Rehabilitation Capital Improvement Project, CIP PS 21- 08. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS for $ 22, 544. 43 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On August 9, 2021, City Council awarded a construction contract to APS to rehabilitate the surface of Manthey Road from Towne Centre Drive to the San Joaquin River. The Project scope included the application of a Scrub Seal coat to the segment of Manthey Road. However, further investigation into the road' s condition indicated that an Asphalt Rubber Aggregate Membrane ( ARAM) surfacing treatment would extend the pavement life at a lower life cycle cost than the Scrub Seal. Additional segments of City roads near the Project but not included in the initial Project scope were also identified as suitable for the application of ARAM surfacing, including segments of Brookhurst Boulevard, Sadler Oak Drive and newly constructed lanes on Manthey Road and Sadler Oak Drive.
248
CITY MANAGER' S REPORT PAGE 2
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
On May 16, 2022, City Council approved a Contract Change Order ( CCO) No. 1 with APS in the amount of $ 129, 119 for the application of ARAM to the original Project scope and additional identified roads. The initial awarded contract was for $ 302, 353, and a 10% construction contingency of $ 30, 235 was authorized for staff to use as necessary to achieve the goals of the Project. With the CCO No. 1, the total construction budget for the Project was $ 461, 707.
During construction, additional contract change orders were issued for a final contract amount of $ 450, 888. The construction costs referenced below capture all expenditures.
Construction costs are as follows:
A. Construction Contract 302, 353. 00
B. Additional Change Orders 148, 535. 60
Total Construction Costs 450, 888. 60
Upon acceptance of the improvements, the performance bond ( Bond No. 107456708, 302, 353) and payment bond ( Bond No. 107456708, $ 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83). The one- year warranty bond covers any repairs or replacements that may become necessary during the one- year period beginning with this acceptance due to any defective materials or workmanship in connection with the completed improvements.
APS has also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council accept the improvements constructed by APS for the Manthey Road Rehabilitation, CIP PS 21- 08. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS for $ 22, 544. 43 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds. Staff requests that unused funds be transferred back into the General Street Reserves Fund ( 1010).
REASON FOR RECOMMENDATION:
APS completed the project pursuant to the contract documents dated August 9, 2021.
Staff has inspected the improvements and deemed them complete and in accordance with City standards and approved plans and specifications. The performance bond Bond No. 107456708, $ 302, 353) and payment bond ( Bond No. 107456708, 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83) upon City Council' s acceptance of the improvements. 249
CITY MANAGER' S REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
The warranty bond covers any repairs or replacements that become necessary during the one- year period, beginning with this acceptance, due to defective materials or workmanship in connection with the completed improvements. APS has also provided the necessary lien releases for the materials supplied and completed work.
FISCAL IMPACT:
The final construction contract amount with APS for CIP PS 21- 08 is for $ 450, 888.
Adequate funds have been allocated in the FY 2021/ 22 budget to close out the project. With the completion of this project, staff requests that unused funds be transferred back into the General Street Reserves Fund ( 1010).
ATTACH M ENTS:
A. Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc. for the Manthey Road Rehabilitation, CIP PS 21- 08, Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - Manthey Road Rehabilitation, Capital Improvement Project ( CIP) PS 21- 08
C. Project Limits Map - Manthey Road Rehabilitation, Capital Improvement Project ( CIP) PS 21- 08
250
CITY MANAGER' S REPORT PAGE 4
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
APPROVALS:
G - . 2 - 22
Angel Abarca Date
Assistant Engineer
Z? • Zd.
Ken Reed Date
Senior Construction Manager
6 122
Brad yfor Date
City Engineer
1, 0
Cari Jame Date
Finance Dir tor
o- Zg- ZoZZ
Michael King Date
Assistant City Manag
Z ZoZZ
Salvador Navarrete Date
City Attorney
6T 5 ZZ
Stephen J. Salvatore Date
City Manager
251
RESOLUTION NO. 22 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN
PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08, AUTHORIZE THE FILING OF A NOTICE OF COMPLETION, RELEASE
OF CONTRACT RETENTION, AND RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on August 9, 2021, City Council awarded a construction contract to American Pavement Systems, Inc. ( APS) for the construction of the Manthey Road Rehabilitation ( Project), CIP PS 21- 08 in the amount of $ 302, 353, and a 10% construction contingency of $ 30, 235 was authorized for staff to use as necessary to achieve the goals of the Project; and
WHEREAS, the scope of work consisted of rehabilitating the surface of Manthey Road from Towne Centre Drive to the San Joaquin River, restriping center/ edge lines, and installing raised reflective pavement markers; and WHEREAS, the Project scope included the application of a Scrub Seal coat to the segment of Manthey Road. However, further investigation into the road' s condition indicated that an Asphalt Rubber Aggregate Membrane ( ARAM) surfacing treatment would extend the pavement life at a lower life cycle cost than the Scrub Seal; and
WHEREAS, additional segments of City roads near the Project but not included in the initial Project scope were also identified as suitable for the application of ARAM surfacing, including segments of Brookhurst Boulevard, Sadler Oak Drive and newly constructed lanes on Manthey Road and Sadler Oak Drive; and WHEREAS, on May 16, 2022, City Council approved a Contract Change Order ( CCO) No. 1 with APS in the amount of $ 129, 119 for the application of ARAM to the original Project scope and additional identified roads; and WHEREAS, APS has successfully completed the Project work at a total cost of $ 450, 888. 60; and
WHEREAS, staff has inspected the improvements and has deemed them complete and in accordance with the approved plans and specifications; and WHEREAS, APS has provided the necessary lien releases for the materials supplied and completed work and a one- year warranty bond ( based on 10% of total project cost) for the improvements being accepted; and
WHEREAS, the performance bond ( Bond No. 107456708, $ 302, 353) and payment bond ( Bond No. 107456708, $ 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83) upon City Council' s acceptance of the improvements; and
252
WHEREAS, the one- year warranty bond covers any repairs or replacements that may become necessary during the one- year period, beginning with this acceptance, due to defective materials or workmanship in connection with the completed improvements; and
WHEREAS, staff requests City Council accept the public improvements constructed by APS for the Manthey Road Rehabilitation, CIP PS 21- 08; and WHEREAS, staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS, in the amount of $ 22, 544. 43, within forty-five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by APS, Inc. for the Manthey Road Rehabilitation, CIP PS 21- 08, pursuant to the contract documents dated August 9, 2021; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop authorizes the filing of the Notice of Completion with the San Joaquin County Clerk and the release of the contract retention to APS, in the amount of $ 22, 544. 43, within forty- five ( 45) days after the recording of the Notice of Completion, and authorizes the release of the performance and payment bonds. 253
The foregoing resolution was passed and adopted this 11th day of July 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 254
ATTACHMENT B
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CITY OF LATHROP
ATTN: CITY CLERK
390 TOWNE CENTRE DRIVE
LATHROP, CA 95330
Exempt from payment of recording fees( GC 11922)
SPACE ABOVE THIS LINE FOR RECORDER' S USE
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN:
l. That the interest or estate stated in paragraph 3 herein in the real property herein described is owned by: NAME STREET AND NO. CITY STATE City of Lathrop 390 Towne Centre Drive Lathrop CA 95330 If more than one owner of the interest stated, the name and address of each must be stated)
2. That the full name and address of the owner of said interest ar estate, if there is only one owner, and that the full names and addresses of all the co- owners who own said interest or es ate as tenants in common, as joint tenants, or otherwise, if there is more than one owner, are set forth in the preceding paragraph.
3. That the nature of title or the stated owner, or if mare than one owner, then of the stated owner and co- owners is:
Proiect No. CIP PS 21- 08 Manthev Road Rehabilitation bv American Pavement Svstems Inc
4. That on the 1 l th day of July 2022 a work of i nprovement on the real property herein described was completed.
5. That the name of the arigina] contractor, if any, i'or said work of improvement was: American Pavement Svstems Inc.
6. That the name and address of the transfcror is:
NAME STREET AND NO. CITY STATE
American Pavement Svstems, Inc. 1012 1 lth Street Modesto CA 95354
7. That the real property herein referred to is situated in the_ Citv oi' Lathrop Counly of San Joaquin, State of California, and is described as follows:
Proiect No. CIP PS 21- 08 Manthey Road Rehabilitation
CITY OF LATHROP
By:
Stephen J. Salvatore, City Manager Date
That true and the carrect. undersigned has knowledge of the contents herein and states under penalty of perjury that the foregoing is By:
Teresa Vargas, City Clerk Date
255
CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the NOTICE OF COMPLETION dated July 11, 2022 by American Pavement Systems, Inc. to the City of Lathrop, a political corporation and/ or governmental agency, is hereby accepted by the undersigned officer or agent on behalf of the City Council pursuant to authority conferred by minute action of the City Council adopted on July 11, 2022, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
256
ATTACHMENT C
PROJECT LOCATION MAP
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257
ITEM 4. 5
CITY MANAGER' S REPORT
ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS FOR PHASE 1 OF
THE GATEWAY DEVELOPMENT AND AUTHORIZE THE
RELEASE OF BONDS ASSOCIATED WITH THE
SUBDIVISION IMPROVEMENT AGREEMENT FOR
PARCEL MAP 19- 03
RECOMMENDATION: Adopt Resolution Accepting Public Improvements for Phase 1 of the Gateway Development and Authorize
the Release of Bonds Associated with the Subdivision
Improvement Agreement for Parcel Map 19- 03
SUMMARY:
Lathrop Gateway 1, LLC, the developer for Lathrop Gateway Business Park, has completed the construction of the public improvements for Phase 1. The approximate value of the improvements being accepted is $ 8, 060, 980, as shown in the project GASB 34 Report included as Attachment " C". These improvements have been inspected by staff and deemed complete in accordance with the specifications by the City Engineer. A Vicinity Map for the improvements is included as Attachment B".
The developer has provided a one- year warranty bond based on 10% of the construction costs and a lien release for the improvements proposed to be accepted.
Staff recommends City Council accept the public improvements in accordance with City specifications and authorize the release of the bonds associated with the Subdivision Improvement Agreement ( SIA) for Parcel Map 19- 03.
BACKGROUND:
On February 11, 2015, the City of Lathrop Planning Commission adopted Resolution No. 15- 03 to approve the Vesting Tentative Parcel Map for the Lathrop Gateway Business Park ( VTM- 13- 69) with Conditions of Approval for development consistent with the Lathrop Gateway Specific Plan.
On December 20, 2018, the City of Lathrop Planning Commission approved a Minor Specific Plan Amendment No. SPA- 18- 71 and Site Plan Review No. SPR- 18- 40 to construct ten ( 10) tilt- up buildings totaling approximately 3, 035, 000 square feet of speculative industrial warehouse space within three phases of development.
On January 24, 2018, the City of Lathrop Planning Commission approved Time Extension No. TE- 18- 01 for the Lathrop Gateway Business Park Vesting Tentative Parcel Map ( VTM- 13- 69) by Resolution No. 18- 1, which extended the life of the map to February 11, 2020. Pursuant to California Government Code Section 66452. 6, the expiration is extended by 36 months because the subdivider is required to expend 236, 790 or more to construct, improve, or finance the construction or public improvements outside the property boundaries of the tentative map. 258
CITY MANAGER' S REPORT PAGE 2
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS FOR PHASE 1 OF THE GATEWAY
DEVELOPMENT AND AUTHORIZE THE RELEASE OF BONDS ASSOCIATED WITH THE SIA FOR PARCEL MAP 19- 03
In March 2021, City Council approved Parcel Map 19- 03, establishing Phase 1 of Lathrop Gateway Business Park. As required by the City' s subdivision ordinance, the approved parcel map included an SIA to guarantee certain public improvements associated with the final map. Lathrop Gateway 1, LLC, has completed the improvements associated with the SIA for Parcel Map 19- 03. Completion of the public improvements listed in the GASB 34 Report fulfills the associated obligations of the SIA. The bond values and numbers are detailed in Table 1 below. Staff requests Council accept the public improvements and approve the release of the Performance and Labor & Materials Bonds and their replacement with the one- year warranty bond.
Table 1 - Bond Details
Performance Bond Labor & Materials Bond Warranty Bond
Number/ Value Number/ Value Number/ Value
0136869 / $ 8, 943, 565 0136869 / $ 4, 471, 780 0136871- M/ $ 806, 098 REASON FOR RECOMMENDATION:
Staff has inspected the offsite improvements for Phase 1 of the Gateway Development and confirmed that the improvements have been completed in accordance with City specifications and deemed complete by the City Engineer.
Lathrop Gateway 1, LLC has submitted lien releases for the improvements being accepted. Staff has received the one- year warranty bonds and as- built drawings for said improvements.
FISCAL IMPACT:
The approximate value of the improvements proposed to accept is $ 8, 060, 980 as shown in the project GASB 34 Report and the costs to maintain these facilities will be covered through the Gateway Business Park City Services Capital Facilities District 2021- 1.
The one- year warranty bond covers any repairs or replacements that become necessary during the one- year period, beginning with the effective date of this acceptance, due to defective materials or workmanship in connection with the completed improvements.
ATTACH M ENTS:
A. Resolution Accepting Public Improvements for Phase 1 of the Gateway Development and Authorize the Release of Bonds Associated with the Subdivision Improvement Agreement for Parcel Map 19- 03 B. Location Exhibit - Phase 1 Gateway Offsite Improvements C. GASB 34 Report - Phase 1 Gateway Offsite Improvements 259
CITY MANAGER' S REPORT PAGE 3
ULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS FOR PHASE 1 OF THE GATEWAY
DEVELOPMENT AND AUTHORIZE THE RELEASE OF BONDS ASSOCIATED WITH THE SIA FOR PARCEL MAP 19- 03
APPROVALS:
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Bellal Nabizadah Date
Assistant Engineer
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Brad ylor Date
City Engineer
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Cari Jam Date
Finance irector
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Michael King Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
260
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ACCEPTING PUBLIC IMPROVEMENTS FOR PHASE 1 OF THE GATEWAY DEVELOPMENT AND
AUTHORIZE THE RELEASE OF BONDS ASSOCIATED WITH THE SUBDIVISION IMPROVEMENTS AGREEMENT FOR PARCEL MAP 19- 03
WHEREAS, on February 11, 2015, the City of Lathrop Planning Commission adopted Resolution No. 15- 03 to approve the Vesting Tentative Parcel Map for the Lathrop Gateway Business Park ( VTM- 13- 69) with Conditions of Approval for development consistent with the Lathrop Gateway Specific Plan; and WHEREAS, on December 20, 2018, the City of Lathrop Planning Commission approved a Minor Specific Plan Amendment No. SPA- 18- 71 and Site Plan Review No.
SPR- 18- 40 to construct ten ( 10) tilt- up buildings totaling approximately 3, 035, 000 square feet of speculative industrial warehouse space within three phases of development; and
WHEREAS, on January 24, 2018, the City of Lathrop Planning Commission approved Time Extension No. TE- 18- 01 for the Lathrop Gateway Business Park Vesting Tentative Parcel Map ( VTM- 13- 69) by Resolution No. 18- 1, which extended the life of the map to February 11, 2020. Pursuant to Government Code 66452. 6, the expiration is extended by 36 months because the subdivider is required to expend 236, 790 or more to construct, improve, or finance the construction or public improvements outside the property boundaries of the tentative map; and WHEREAS, on March, 2021, City Council approved Parcel Map 19- 03, establishing Phase 1 of Lathrop Gateway Business Park. As required by the City' s subdivision ordinance, the approved parcel map included an Subdivision Improvement Agreement ( SIA) to guarantee certain public improvements associated with the final map; and
WHEREAS, Lathrop Gateway 1, LLC, has completed the improvements associated with the SIA for Parcel Map 19- 03. Completion of the public improvements listed in the GASB 34 Report ( Attachment C of the City Manger' s Report) fulfills the associated obligations of the SIA; and
WHEREAS, the bond values and numbers are detailed in Table 1 below. Staff requests Council accept the public improvements and approve the release of the Performance and Labor & Materials Bonds and their replacement with the one- year warranty bond; and
261
Table 1 — Bond Details
Performance Bond Labor & Materials Bond Warranty Bond
Number/ Value Number/ Value Number/ Value
0136869 / $ 8, 943, 565 0136869 / $ 4, 471, 780 0136871- M/ $ 806, 098 WHEREAS, these improvements have been inspected by staff and deemed complete by the City Engineer and confirmed that the improvements have been completed in accordance with City specifications; and
WHEREAS, Lathrop Gateway 1, LLC has submitted lien releases for the improvements proposed to be accepted. Staff has received the one- year warranty bonds and as- built drawings for said improvements. Staff recommends Council accept the improvements.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements for Phase 1 of the Gateway Development and authorizes the release of bonds associated with the SIA for Parcel Map 19- 03.
262
The foregoing resolution was passed and adopted this 11th day of July 2022, by the foliowing vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas Salvador Navarrete
City Clerk City Attorney
263
ATTACHMENT B
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LATHROP GATEWAY PHASE 1 OFFSITE IMPROVEMENTS- VICINITY MAP DATE 06/ 15/ 22 u*
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LANDSCAPE
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JOBNO, 17'2Q8 3428 Brookside Road , Stockton , California 95219 209- 943- 2021 www. sie irieden . com Fx: 209- 942- 0214 F:
264
ATTACHMENT C
CITY OF LATHROP
PROJECTACCEPTANCE
GASB 34 REPORT)
Date: 06/ 15/ 2022
Submitted by: Phelan Haugen Development Company
Lathrop Gateway Phase 1- Offsite Improvements
Based on Improvement and Grading Plans prepared by Siegfried Engineering
ITEM UNIT QUANTITY UNITCOST AMOUNT
SITE PAVING
1 ASPHALT PAVEMENT- YOSEMITE AVENUE( 0. 2' OVERLAY) SF 16, 485 6. 50 707, 153 2 ASPHALTPAVEMENT- YOSEMITEAVENUE( 10" AC/ 19" AB)( TI= 14) SF 75, 040 15. 50 1, 163, 120 3 ASPHALT PAVEMENT- YOSEMITE AVENUE( 18" DEEPLIFT) SF 638 13. 50 8, 613 4 ASPHALTPAVEMENT- BUSINESSPARKCOURT( 8" AC/ 15. 5" AB)( TI= 12) SF 104, 504 12. 50 1, 306, 300 5 4.5' TRENCH FOR SEWER AND COMMUNICATION( 10" AC/ 19" AB)( TI= 14) SF 1, 057 13. 50 14,270 6 8" DEEP GRAVEL ROAD SF 10, 688 5.00 53, 440
7 INDUSTRIAL DRIVEWAY EA 6 5, 000.00 30, 000
8 8' CONCRETE SIDEWALK LF 2, 962 119. 50 353, 959
9 STAMPED CONCRETE SF 1, 023 35. 00 35, 805
10 DETAIL B RAMPS EA 2 7, 500. 00 15, 000
11 RAMPS AND LANDINGS EA 13 5, 000. 00 65, 000
12 6" CONCRETE CURB& GUTTER LF 4, 933 55. 00 271, 315
13 TYPE B MEDIAN CURB LF 2, 541 50. 00 127, 050
14 6" ACDIKE LF 558 2. 00 1, 116
15 SIGN EA 60 1, 000. 00 60, 000
16 STREET BARRICADE EA 2 3, 000. 00 6, 000
17 METAL GUARDRAIL LF 40 200. 00 8, 000
18 STRIPING( EXCLUDING RED PAINTED CURB) LS LUMP SUM 70,000. 00 70, 000 19 PAVEMENTMARKING EA 30 750. 00 22, 500
20 BLUE PAVEMENET MARKER FOR FIRE HYDRANT EA 12 250.00 3, 000 21 SURVEY MONUMENT EA 4 1, 250. 00 5,000
SITE PAVING SUBTOTAL $ 3, 726, 640
STORM DRAIN SYSTEM
22 15" STORM DRAIN- BUSINESS PARK COURT( POLYPROPYLENE) LF 517 80. 00 41, 360 23 15" STORM DRAIN- YOSEMITE AVENUE( POLYPROPYLENE) LF 872 140. 00 122, 080 24 24" STORM DRAIN- BUSINESS PARK COURT( POLYPROPYLENE) LF 1, 265 100. 00 126, 500 25 36" STORM DRAIN- BUSWESS PARK COURT( CONCRETE) LF 1, 318 200. 00 263,600 26 TYPE 1 CURB INLET CATCH BASIN- BUSINESS PART COURT EA 20 3, 000. 00 60,000 27 NPE 1 CURB INLET CATCH BASIN- YOSEMITE AVENUE EA 3 4, 500. 00 13, 500 28 24" x24" DRAIN INLET- VOSEMITE AVENUE EA 1 5, 000. 00 5, 000 29 48" PRECAST STORM DRAIN MANHOLE- YOSEMITE AVENUE EA 5 7, 500.00 37, 500 30 48" PRECAST STORM DRAIN MANHOLE- BUSINESS PARK COURT EA 12 7, 500. 00 90, 000 STORM DRAIN SYSTEM SUBTOTAL $ 759, 540
RETENTION BASIN
31 8" DEEP GRAVEL ROAD SF 22, 704 5. 00 113, 520
32 8' CHAW LWK FENCE LF 1, 545 75. 00 115, 875
33 GATE EA 1 5, 500. 00 5, 500
34 48" STORM DRAIN( CONCRETE) LF 48 250. 00 12, 000
35 STORM DRAIN OUTFALL STRUCTURE WITH TRASH RACK EA 2 30, 000. 00 60, 000 RETENTION BASIN SUBTOTAL $ 306, 895
SANITARY SEWER SYSTEM
36 6" SANITARY SEWER LATERAL( PVC SDR 26) EA 9 3, 000.00 27, 000 37 8" SANITARY SEWER- BUSINESS PARK COURT( PVC SDR 26) LF 1, 153 I 15. 00 t32, 595 38 10" SANITARY SEWER- BUSW ESS PARK COURT( PVC SDR 26) LF 1, 227 200.00 245,400 39 10" SANITARY SEWER- YOSEMITE AVENUE( PVC SDR 26) LF 38 200. 00 7, 600 40 12" SANITARY SEWER- YOSEMITE AVENUE( PVC SDR 26) LF 193 200. 00 38,600 41 15" SANITARY SEWER- YOSEMITE AVENUE( PVC SDR 26) LF 742 225. 00 166, 950 42 SANITARY SEWER( MOFIDIED) MANHOLE- BUSINESS PARK COURT EA 7 10, 000. 00 70,000 43 SANITARYSEWER( MODIFIED) MANHOLE- YOSEMITEAVENUE EA 4 15, 000.00 60, 000 SANITARY SEWER SYSTEM SUBTOTAL $ 748, 145