Agenda packet — Lathrop City Council, April 10, 2023 (part 1 of 4)

April 10, 2023 – Regular Meeting Agenda – 7:00 p.m.

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April 10, 2023 – 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
Paul Akinjo, Vice Mayor
Minnie Diallo
Diane Lazard
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
Juliana Burns, 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 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 1 IMPORTANT NOTICE REGARDING THIS MEETING & COVID-19
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. Please adhere to COVID-19 and social distancing guidelines. This meeting will also be available for public participation by teleconference via ZoomGov at the following link:
https://www.zoomgov.com/j/1612312064?pwd=YTlKUWhyaU5QOU VWMFZGZlNqMXJBUT09
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: 161 231 2064/ Passcode: 978984
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 April 10, 2023 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 LathropManteca 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 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 3

CITY OF LATHROP

CITY COUNCIL REGULAR MEETING
MONDAY, APRIL 10, 2023
7:00 P.M.

COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
AGENDA
PLEASE NOTE: There will be no Closed Session. The Regular Meeting will begin at 7:00 p.m.

1. PRELIMINARY

1.1 CALL TO ORDER

1.2 ROLL CALL

1.3 INVOCATION

1.4 PLEDGE OF ALLEGIANCE

1.5 ANNOUNCEMENT(S) BY MAYOR / CITY MANAGER

1.6 INFORMATIONAL ITEM(S) – NONE

1.7 DECLARATION OF CONFLICT(S) OF INTEREST

2. PRESENTATIONS

2.1 CERTIFICATE OF RECOGNITION TO THE LATHROP HIGH SCHOOL

GIRLS BASKETBALL TEAM

2.2 RECOGNITION OF MARK MEISSNER, DIRECTOR OF COMMUNITY DEVELOPMENT, FOR OVER 33 YEARS OF PUBLIC SERVICE

2.3 INTRODUCTION OF NEW EMPLOYEES:

Parks, Recreation and Maintenance Services Department
• Frank Rivera, Maintenance Services Supervisor
• Austin Fox, Maintenance Worker
• Andrea Brown, Sr. Recreation Leader
• Harpreet Banwait, Sr. Recreation Leader
4 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 4 Public Works Department
• Gilbert Gaeta, Maintenance Worker
Lathrop Police Department
• Aaron Vanlue, Police Officer
• Taylor Dominguez, Police Officer

2.4 QUARTERLY ECONOMIC DEVELOPMENT PRESENTATION

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 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 Special Council Meeting of January 23, 2023, and Regular Meeting of February 13, 2023
5 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 5

4.3 SECOND READING AND ADOPTION OF ORDINANCE 23-444 OF THE CITY

COUNCIL OF THE CITY OF LATHROP AMENDING THE LATHROP
MUNICIPAL CODE TITLE 10 VEHICLES AND TRAFFIC, CHAPTER 10.08 SPEED LIMITS SECTION 10.08.030 “SPEED LIMITS”
Waive Full Reading and Adopt Ordinance 23-444 Amending Lathrop Municipal Code Title 10 Vehicles and Traffic, Chapter 10.08 Speed Limits Section 10.08.030 “Speed Limits”

4.4 ACCEPTANCE OF THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2022
Adopt Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2022

4.5 APPROVE MEMORANDUM OF UNDERSTANDING WITH LATHROP POLICE

OFFICERS ASSOCIATION, ADOPT A BENEFIT PLAN FOR THE

UNREPRESENTED CLASSIFICATIONS OF COMMANDER AND

LIEUTENANT, AND ADOPT A RECRUITMENT INCENTIVE PLAN FOR

SWORN CLASSIFICATIONS
Adopt Resolution Approving a Memorandum of Understanding (MOU) with the Lathrop Police Officers Association (LPOA), Adopt a Benefit Plan for the Unrepresented Commander and Lieutenant Classifications, and Adopt a Recruitment Incentive Plan

4.6 APPROVE OF OUT-OF-STATE TRAVEL FOR ONE (1) LATHROP POLICE

DEPARTMENT SERGEANT TO ATTEND CANINE PROGRAM MANAGEMENT COURSE IN MAY 2023
Adopt Resolution Approving Out-of-State Travel for One (1) Lathrop Police Department Sergeant to Attend the Canine Program Management Course in South Lake Tahoe, Nevada from May 2, 2023 to May 4, 2023

4.7 APPROVE AMENDMENT NO. 2 WITH ROBERT HALF INTERNATIONAL, INC. TO PROVIDE PROFESSIONAL SERVICES IN THE BUILDING

DEPARTMENT FOR THE ENERGOV IMPLEMENTATION
Adopt Resolution Approving Amendment No. 2 with Robert Half International, Inc. to provide Professional Services in the Building Department for the Energov Implementation

4.8 APPROVE PROFESSIONAL SERVICES AGREEMENT WITH BUTLER AMUSEMENTS, INC. TO PROVIDE LAW ENFORCEMENT SERVICES FOR ANNUAL CARNIVAL EVENT ON APRIL 20, 2023 THROUGH APRIL 23, 2023
Adopt Resolution Approving Professional Services Agreement with Butler Amusement, Inc. to Provide Law Enforcement Services for their Annual Carnival Event on April 20, 2023 through April 23, 2023 6 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 6

4.9 APPROVE COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY

OF LATHROP AND THE JUNETEENTH COMMITTEE TO COMMEMORATE

THE JUNETEENTH NATIONAL INDEPENDENCE DAY FEDERAL HOLIDAY Adopt Resolution Approving a Community Partnership Agreement between the City of Lathrop and the Juneteenth Committee to Commemorate the Juneteenth National Independence Day Federal Holiday

4.10 APPROVE FISCAL YEAR 2023-24 PROJECT LIST ASSOCIATED WITH SENATE BILL 1
Adopt Resolution Approving a List of Projects for Fiscal Year 2023-24 Funded By Senate Bill 1, the Road Repair and Accountability Act of 2017

4.11 APPROVE PROFESSIONAL SERVICES AGREEMENT WITH ROBERTSONBRYAN, INC., FOR THE CITY’S INDUSTRIAL PRETREATMENT PROGRAM Adopt Resolution Approving a Professional Services Agreement with Robertson-Bryan, Inc., for the City’s Industrial Pretreatment Program

4.12 APPROVE PROFESSIONAL SERVICES AGREEMENT WITH FGL

ENVIRONMENTAL FOR WATER QUALITY LABORATORY SERVICES FOR THE CITY’S DRINKING WATER PROGRAM AND CTF WASTEWATER

PERMIT COMPLIANCE
Adopt Resolution Approving a Professional Services Agreement with FGL Environmental for Water Quality Laboratory Services for the City of Lathrop’s Drinking Water Program and Consolidated Treatment Facility Wastewater Permit Compliance

4.13 APPROVE CONTRACT CHANGE ORDER NO. 3 AND NO. 4 WITH CUSHMAN

CONTRACTING CORPORATION FOR THE CTF DECHLORINATION
FACILITY OF SURFACE WATER DISCHARGE, CIP WW 20-17 AND

APPROVE BUDGET AMENDMENT
Adopt Resolution Approving Contract Change Order No. 3 and No. 4 with Cushman Contracting Corporation for the CTF Dechlorination Facility of Surface Water Discharge, CIP WW 20-17 and Approving Budget Amendment

4.14 APPROVE PURCHASE FROM ZIMA CORPORATION FOR HEADWORKS EQUIPMENT FOR THE CONSOLIDATED TREATMENT FACILITY PHASE 3 EXPANSION, CIP WW 22-38 AND APPROVE BUDGET AMENDMENT
Adopt Resolution Approving a Purchase from Zima Corporation for Headworks Equipment for the Consolidated Treatment Facility Phase 3 Expansion, CIP WW 22-38 and Approve Budget Amendment

4.15 RATIFY SAN JOAQUIN COUNCIL OF GOVERNMENTS’ ANNUAL FINANCIAL PLAN
Adopt Resolution Ratifying the San Joaquin Council of Governments (SJCOG) Annual Financial Plan for FY 2023-24
7 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 7

4.16 RATIFY CITY MANAGER'S EXECUTION OF A CONSTRUCTION CONTRACT

WITH NOR-CAL CONCRETE COMPANY FOR TEMPORARY ANIMAL
SHELTER CONCRETE, CIP GG 23-06 AND APPROVE BUDGET

AMENDMENT
Adopt Resolution Ratifying City Manager's Execution of a Construction Contract with Nor-Cal Concrete Company for the Temporary Animal Shelter Concrete, CIP GG 23-06 and Approving Budget Amendment

4.17 RATIFY CITY MANAGER’S SIGNATURE AND APPROVE OPTION AND

TOWER LEASE AGREEMENT WITH VERIZON WIRELESS FOR USE OF

CITY OWNED TOWER
Adopt Resolution Ratifying City Manager’s Signature and Approving Option and Tower Lease Agreement with Verizon Wireless for Use of City Tower

4.18 RATIFY THE PURCHASE OF CAMERA SURVEILLANCE SYSTEMS FOR MAJOR CITY PARKS, CIP GG 22-35
Adopt a Resolution Ratifying a Service Contract with ICU Technologies, Inc. and Approve Purchase of Hardware and Services for Network Infrastructure from Various Vendors for Major City Parks CIP 22-35

4.19 CREATE CIP PS 23-18 FOR MCKINLEY AVENUE PAVEMENT

REHABILITATION, AND APPROVE BUDGET AMENDMENT
Adopt Resolution Creating CIP PS 23-18 for McKinley Avenue Pavement Rehabilitation and Approving Budget Amendment

4.20 GRAND JURY REPORT RESPONSE UPDATE
Direct the City Attorney to Submit a Letter to the Presiding Judge of the San Joaquin County Superior Court Responding with an Update to the Findings and Recommendations of the Grand Jury Report on Cybersecurity

RIVER ISLANDS DEVELOPMENT CONSENT ITEM(S)

4.21 AUTHORIZE THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2023-1 (RIVER ISLANDS PUBLIC SERVICES AND FACILITIES #2) Adopt Resolution of Intention to Establish City of Lathrop Community Facilities District No. 2023-1 (River Islands Public Services and Facilities #2) and a Future Annexation Area to Finance Public Services and Facilities
8 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 8

4.22 ACCEPT PUBLIC IMPROVEMENTS FROM RIVER ISLANDS DEVELOPMENT, LLC FOR TRACTS 3994, 3995, 4015, 4016, 4020, 4021, 4030, 4031, 4060, 4111, AND ACCEPT RIVER ISLANDS PARKWAY WITH

ASSOCIATED CONDITION
Adopt Resolution to Approve Public Improvements from River Islands Development, LLC for Tracts 3994, 3995, 4015, 4016, 4020, 4021, 4030, 4031, 4060, 4111, and Approve River Islands Parkway with Associated Condition

5. SCHEDULED ITEMS

5.1 PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER MUNICIPAL CODE AMENDMENT TO (1) ADOPT AN ORDINANCE TO ADD CHAPTER

17.78 HOTEL LIMITATIONS AND MODIFY SECTION 17.62.072 OF THE

CENTRAL LATHROP COMMERCIAL OFFICE ZONING DISTRICT OF THE LATHROP MUNICIPAL CODE; (2) ADOPT A RESOLUTION AMENDING THE

PERMITTED AND CONDITIONAL LAND USE LIST FOR MOSSDALE

LANDING, MOSSDALE LANDING EAST, AND MOSSDALE LANDING

SOUTH URBAN DESIGN CONCEPTS TO REGULATE AND LIMIT HOTEL

DEVELOPMENT IN THE CENTRAL LATHROP SPECIFIC PLAN AND
MOSSDALE VILLAGE (TA-23-32)
Council to Consider the Following:

1. Hold a Public Hearing; and

2. First Reading and Introduce an Ordinance to Add Chapter 17.78 Hotel Limitations and modify Section 17.62.072 of the Central Lathrop Commercial Office Zoning District of the Lathrop Municipal Code; and

3. Adopt a Resolution Amending the Permitted and Conditional Land Use List for Mossdale Landing, Mossdale Landing East, and Mossdale Landing South Urban Design Concepts to Regulate and Limit Hotel Development in the Central Lathrop Specific Plan and Mossdale Village

5.2 RECEIVE UPDATE FOR AQUIFER STORAGE AND RECOVERY, APPROVE AMENDMENT NO. 1 WITH CAROLLO ENGINEERS, INC. CIP PW 22-36

AND APPROVE BUDGET AMENDMENT
Adopt Resolution Approving Amendment No. 1 with Carollo Engineers, Inc. for the Aquifer Storage and Recovery, CIP PW 22-36 and Approving Budget Amendment
CEQA STATUS: Staff has determined the CEQA status for the project to date as exempt according to California Environmental Quality Act Article 18 §15262, “Feasibility and Planning Studies”
9 April 10, 2023 Lathrop City Council Regular Meeting Agenda Page 9

6. COUNCIL COMMUNICATIONS

6.1 MAYOR DHALIWAL REFERRAL: Set Application Deadline for Appointment of One (1) Representative to the San Joaquin County Commission on Aging with Existing Term Ending June 30, 2023, in addition to a Full Three (3) Year Term Ending June 30, 2026, due to Unexpired Term Vacancy

6.2 MAYOR & COUNCILMEMBER COMMITTEE REPORT(S)
• Central Valley Executive Committee/LOCC (Akinjo/Diallo) • Council of Governments (Lazard/Diallo)
• Integrated Waste Management Solid Waste Division (Akinjo/TorresO’Callaghan) • Reclamation District 17 Joint Powers Authority (Salvatore) • San Joaquin Partnership Board of Directors (Salvatore) • San Joaquin County Commission on Aging (Unexpired Vacancy) • 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)

6.3 MAYOR & COUNCILMEMBER COMMENT(S)

7. ADJOURNMENT
/Teresa Vargas/
Teresa Vargas, MMC
Government Services Director/
City Clerk
10 ITEM 4. 2

CITY OF LATHROP

CITY COUNCIL SPECIAL MEETING
MONDAY, 7ANUARY 23, 2023, 6: 00 P. M.

COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive, Lathrop, CA 95330

MINUTES
PLEASE NOTE: There was a C/ osed Session, which commenced at 5: 32 p. m. The Soecial Meetinq reconvened at 6; 15 a. m,

1. PRELIMINARY

1. 1 CALL TO ORDER - Mayor Dhaliwal called the meeting to order at 5: 32 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) and 54956. 9( e)( 1)
2 Potential Case( s)
RECONVENE - Mayor Dhaliwal reconvened the meeting at 6: 15 p. m.

1. 2. 2 REPORT FROM CLOSED SESSION
City Attorney Salvador 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 Akinjo; and Councilmembers: Diallo, Lazard and TorresO' Callaghan

Absent: None

1. 4 PLEDGE OF ALLEGIANCE - Councilmember Lazard led the pledge of allegiance.

1. 5 DECLARATION OF CONFLICT( S) OF INTEREST
No conflicts of interest declared.

January 23, 2023 Lathrop City Council Special Meeting Minutes Page 1 11 2. SCHEDULED ITEM( S)

2. 1 PRESENTATION REGARDING THE CITY' S CODE COMPLIANCE AND

ENFORCEMENTPROCESS
Assistant City Manager Michael King provided a brief summary and introduced Consultant Pete Roque, Director of Code Enforcement with 4Leaf, Inc. Mr. Roque provided the presentation, which included an overview of the current code compliance process, information on code compliance functions, and tools available for enforcement procedures.

A question and answer period ensued throughout the presentation. City Manager Stephen Salvatore and Assistant City Manager Michael King provided additional information.

The City Council received information and options related to code compliance options and enforcement procedures. The City Council discussed the options presented and provide direction to stafF on moving forward with an educational and proactive approach, which included an eight step process aimed to educate the noncompliant party into compliance. The eight step process was summarized as follows:

1. Complaint received ( reactive approach);

2. Staff conducts inspection and assesses the complaint;

3. If required, staff issues courtesy notice and/ or provides in- person education and solutions ( non- punitive);

4. Staff creates a follow- up inspection for compliance ( the timeframe varies);

5. Staff will conduct a follow- up. If needed, staff will send a " Notice of Violation" with citation anguage and a timeline for compliance

6. Staff will conduct a follow- up inspection and issue citations for non- compliance ($ 100 per violation on the first notice; $ 200 per violation on the second notice; and $ 500 per violation on the third notice);

7. Staff will have an office meeting prior to initiating further enforcement actions; and

8. Staff pursues appropriate legal tools, such as abatement, recordation, criminal, and or civil procedures.

2. 2 PRESENTATION REGARDING THE AMERICAN RESCUE PLAN ACT

FUNDING ALLOCATION
City Manager Stephen Salvatore provided a brief summary. Deputy Finance Director Thomas Hedegard provided the presentation, which included an overview of the American Rescue Plant Act ( ARPA), current regulations that allow local governments to utilize funds, and summary of how surrounding cities have utilized their portion of the funds. Staff also proposed the following ARPA programs for the City of Lathrop, summarized as follows:

January 23, 2023 Lathrop City Council Special Meeting Minutes Page 2 12 1. Repayment of $ 234, 000 in Small Business Assistance Grant Program to the Measure D Economic Development Fund, which provided crucial funding to Lathrop small businesses during Covid- 19 shutdowns;

2. Allocate $ 1. 5 million for land acquisition costs for a future Community Center;

3. Allocate $ 20, 000 to a Backpack Food Program, to ofFer families free groceries over weekends and school breaks;

4. Allocate $ 80, 000 to setup and administer an income based grant/ stipend program for Lathrop residents to help them transition their yard landscaping to be drought resistant/ tolerant; and

5. Allocate $ 4. 0 Million to fund future utility capital needs, which benefits all Lathrop residents by stabilizing utility rates and postponing rate increases needed to fund capital improvements avg. $ 444/ per household in assistance).

Finance Director Cari James and Parks, Recreation and Maintenance Services Director Todd Sebastian provided additional information. A question and answer period followed.

Vice Mayor Akinjo expressed interest in stabilizing utility rates to take some burden off the ratepayers. Councilmember Lazard expressed contentment with the proposed options. Councilmember Diallo expressed interest with using funds for sidewalk reflectors and school zone signage near the River Islands schools, utility rate reduction, and additional sidewalks in the eastside of Lathrop, and reflective lights or paint on roundabouts. Councilmember Torres- O' Callaghan expressed interest with the proposed options.

The City Council received information and options related to the American Rescue Plan Act Funding Allocation( s) Options. The City Council provided direction to staff to move forward with the proposed options, and options for safe school routes within the River Islands development areas. Staff will further analyze the proposed options with the direction given and return to Council with additional information.

3. ADJOURNMENT — There being no further business, Mayor Dhaliwal adjourned the meeting at 7: 45 p. m.
eresa Vargas, MMC,
Government Services Director / City Clerk
This meeting was called by a majority of the City Council per Government Code Section 54956. 5.

Members of the public interested in addressing the City Council during this Special Meeting may address the item( s), which have been described in the notice of this Special Meeting in accordance with Government Code Section 54954. 3( a).

January 23, 2023 Lathrop City Council Special Meeting Minutes Page 3 13 CITY OF LATHROP

CITY COUNCIL REGULAR MEETING
MONDAY, FEBRUARY 13, 2023
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: 33 v.m, The Reqular Meetin4 reconvened at 7: 05 p. m.

1. PRELIMINARY

1. 1 CALL TO ORDER - Mayor Dhaliwal called the meeting to order at 6: 33 p. m.

City of Manteca Mayor Gary Singh and Vice Mayor Mike Morowit spoke prior to the City Council entering into closed session; they expressed similar sentiments related to the productive and amicable working relationship between the cities of Lathrop and Manteca.

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) and 54956. 9( e)( 1)
1 Potential Case( s)

1. 2. 2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS: Pursuant to Government Code Section 54956. 8
Property APN: 192- 020- 47 & 192- 020- 4
Addresses not available at this time)
Agency Negotiator: Stephen ]. Salvatore, City Manager
Negotiating Parties: Carroll A. Stanley and Maria E. Stanley Under Negotiation: Price and Terms of Negotiations
RECONVENE - Mayor Dhaliwal reconvened the meeting at 7: 05 p. m.

1. 2. 3 REPORT FROM CLOSED SESSION
City Attorney Salvador Navarrete reported that the City Council approved purchase of property listed under Item 1. 2. 2, for $ 1. 4 Million for 17 acres, full terms and conditions will be made public once the sale agreement is fully executed; no other reportable action taken.

February 13, 2023 athrop City Council Regular Meeting Minutes Page 1 14 1. 3 ROLL CALL Present: Mayor Dhaliwal; Vice Mayor Akinjo; and Councilmembers: Diallo, Lazard,
and Torres- O' Callaghan

Absent: None

1. 4 INVOCATION - Pastor Nathanial Camarena, Abundant Life Center Church, provided the invocation.

1. 5 PLEDGE OF ALLEGIANCE - Pastor Nathanial Camarena led the pledge of allegiance.

1. 6 ANNOUNCEMENT( S) BY MAYOR / CITY MANAGER - NONE

1. 7 INFORMATIONAL ITEM( S) - NONE

1. 8 DECLARATION OF CONFLICT( S) OF INTEREST - NONE

2. PRESENTATIONS

2. 1 PROCLAMATION DECLARING FEBRUARY AS BLACK HISTORY MONTH Mayor Dhaliwal, accompanied by the City Council, presented the proclamation declaring February as Black History Month. Lathrop resident Jose Garcia Martin received the proclamation; Mr. Garcia Martin provided remarks on the commemoration of Black History Month.

2. 2 INTRODUCTION OF NEW EMPLOYEES:

Police Chief Raymond Bechler introduced the following new Lathrop Police Department employees: Animal Shelter Supervisor Elisah Harvey, Police Records Assistant Marina Millard, Police Records Assistant Melissa Rossi, Police Officer ) anet Garza, K- 9 Officer Jacky ( Police Handler - Officer Vannack Sabou), K- 9 Officer Kane ( Police Handler - Officer Coleman Elliott), and K- 9 OfFicer Rico ( Police Handler - Officer Nicole Valker). Assistant Community Development Director Rick Caguiat introduced Senior Planner James Michaels.

3. CITIZEN' S FORUM
Lawrence Abbott ( zoom speaker) commented on the beautification and conservation of wildlife in the city' s retention ponds.

Following a brief discussion amongst the City Council, Council consensus provided direction to move Item 6. 1 and Item 6. 2 before the Consent Calendar Item 4.

February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 2 15 4. CONSENT CALENDAR
On a motion by Councilmember Torres- O' Callaghan, seconded by Councilmember Diallo, the City Council approved the Consent Calendar, by the following roli call vote, unless otherwise indicated:

Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan and Dhaliwal Noes: None

Absent: None
Abstain: None

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 titie only, unless otherwise requested by the Mayor or a Councilmember.

4. 2 APPROVAL OF MINUTES
Approved Minutes for the c-ta-f Regular Council Meeting of l zJanuary 9, 2023. ( December meeting minutes were approved during the Regular Meeting of January 9, 2023. The agenda included Meeting Minutes for January 9, 2023.)

4. 3 TREASURER' S REPORT FOR DECEMBER 2022
Pulled by Councilmember Diallo. Deputy Finance Director Thomas Hedegard and Finance Director Cari James provided additional information.

Approved Quarterly Treasurer' s Report for December 2022.

CEQA STATUS: Not a Project as defined in Article 20, 15378 of the California Environmental Quality Act ( CEQA) Guidelines.

4. 4 REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2021 2022
Reviewed the Capital Facility Fee Funds Report for Fiscal Year 2021- 22.

CEQA STATUS: Not a Project as defined in Section 15378 of the StateCEQA Guidelines

4. 5 APPROVE OUT- OF- STATE TRAVEL FOR CITY STAFF TO PARTICIPATE IN THE ICSC CONFERENCE IN MAY 2023
February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 3 16 Adopted Resolution 23- 5208 authorizing out- of- state travel for two city staff inembers to attend and represent the City of Lathrop at the International Council of Shopping Centers ( ICSC) 2023 Conference in Las Vegas, Nevada from May 21, 2023 to May 23, 2023.

CEQA STATUS: Staff has determined that this is not a Project as defined in Section 15378 of the CEQA Guidelines.

4. 6 APPROVE GIS SOFTWARE AND ENTERPRISE LICENSE AGREEMENT Adopted Resolution 23- 5209 authorizing a 3- year term Enterprise License Agreement with Environmental Systems Research Institute, Inc. for the Geographic Information System ( GIS).

CEQA STATUS: Not a Project as defined in Section 15378 of the California Environmental Quality Act ( CEQA) Guidelines.

4. 7 APPROVE TASK ORDER NO. 12 FOR DE NOVO PLANNING GROUP TO UPDATE THE CITY' S GENERAL PLAN HOUSING ELEMENT FOR THE 6th CYCLE ( 2023- 2031)
City Clerk Teresa Vargas introduced into the record missing page no. 3 of the staff report, which included the fiscal impact. A copy of the missing page was made available on the city' s website, uploaded to the City Council tablets and copies were available for the public during the meeting.

Adopted Resolution 23- 5210 approving Task Order No. 12 with De Novo Planning Group to update the City' s General Plan Housing Element for the 6th Cycle ( 2023- 2031).

CEQA STATUS: Not a Project as Defined in Article 20, § 15378 of the California Environmental Quality Act ( CEQA) Guidelines.

4. 8 APPROVE PROFESSIONAL SERVICES AGREEMENT WITH FRUIT GROWERS LABORATORY, INC., FOR THE LATHROP CONSOLIDATED
TREATMENT FACILITY PERMIT COMPLIANCE, CIP WW 20- 17
Adopted Resolution 23- 5211 approving a Professional Services Agreement with Fruit Growers Laboratory, Inc., for water quality testing laboratory services, related to Lathrop consolidated water treatment facility surface water discharge, CIP WW 20- 17.

CEQA STATUS: Environmental review for the Surface Water Discharge Project, CIP WW 20- 17 as a whole was completed in the Certified Final Environmental Impact Report ( EIR) ( State Clearinghouse No. 2019110339).

February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 4 17 4. 9 APPROVE AMENDMENT NO. 2 WITH EKI TO UPDATE THE INTEGRATED WATER RESOURCES MASTER PLAN, CIP PW 22- 19 AND CIP WW 22- 24

AND APPROVE BUDGET AMENDMENT
Adopted Resolution 23- 5212 approving Amendment No. 2 with EKI Environment & Water, Inc. to update the Integrated Water Resources Master Plan, CIP PW 22- 19 and CIP WW 22- 24, and approving budget amendment.

CEQA STATUS: The project is exempt according to California Environmental Quality Act Article 18 § 15262, " Feasibility and Planning Studies".

4. 10 AUTHORIZE FUNDING OF ONE ( 1) POLICE LIEUTENANT AND ONE ( 1)

ADDITIONAL SCHOOL RESOURCE OFFICER FOR THE LATHROP POLICE

DEPARTMENT, AMEND COMMUNITY SERVICES SUPERVISOR JOB

DESCRIPTION, AND APPROVE RELATED BUDGET AMENDMENT
Pulled by Councilmember Diallo. Chief of Police Raymond Bechler provided additional information.

Adopted Resolution 23- 5213 approving the funding of one ( 1) Police Lieutenant position, one ( 1) additional School Resource Officer position, amending the job description of the Community Service Supervisor, amending the position control roster, and approving the related budget amendment.

CEQA STATUS: Not a Project as Defined in Section 15378 of the State CEQA Guidelines.

4. 11 AUTHORIZE TASK ORDER NO. 6 WITH KNN PUBLIC FINANCE FOR

MUNICIPAL ADVISORY SERVICES
Pulled by Councilmember Diallo. Finance Director Cari James provided additional information.

Adopted Resolution 23- 5214 authorizing Task Order No. 6 with KNN Public Finance for municipal advisory services related to the potential refinancing of Mossdale Village Refunding 2013 Series A Bonds.

CEQA STATUS: Not a Project as defined in Article 20, § 15378 of the California Environmental Quality Act ( CEQA) Guidelines.

4. 12 VALIDATION OF THE 2022 FINDING OF ADEQUATE PROGRESS IN THE

MOSSDALE TRACT AREA
February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 5 18 Adopted Resolution 23- 5215 validating the 2022 urban level of flood protection ( ULOP), finding of adequate progress in the Mossdale Tract Area ( formally referred as Reclamation District 17 Basin), and acting as the land use agency.

CEQA STATUS: The project is exempt according to the California Environmental Quality Act ( CEQA) Articie 18, § 15262 Feasibility and Planning Studies".

4. 13 ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY BOCKMON & WOODY CO., INC. FOR THE JOHNSON FERRY ROAD STREETLIGHT
INSTALLATION, CIP PS 23- 04
Pulled by Councilmember Torres- O' Callaghan. Assistant City Manager Michael King provided additionai information.

Adopted Resolution 23- 5216 accepting public improvements constructed by Bockmon & Woody Co., Inc., for the Johnson Ferry Road streetlight installation, CIP PS 23- 04, authorizing the filing of a Notice of Completion, releasing of contract retention, and releasing performance and payment bonds.

CEQA STATUS: The project is exempt according to the California Environmental Quality Act ( CEQA) Article 19, § 15301 Class 1 Existing Facilities".

4. 14 RATIFY CITY MANAGER ACTION FOR PURCHASE OF FOUR ( 4) NEW

POLICE VEHICLES, APPROVAL OF VARIOUS AGREEMENTS FOR THE

LATHROP POLICE DEPARTMENT, AND APPROVAL OF RELATED BUDGET

AMENDMENT
Pulled by Councilmember Diallo. Chief of Police Raymond Bechler provided additional information.

Adopted Resolution 23- 5217 ratifying City Manager action for purchase of three ( 3) 2022 Police Ford Utility Interceptors from Downtown Sacramento Ford, ratifying purchase of one ( 1) 2023 Chevy Police Tahoe from Future Chevrolet, approving Change Order No. 3 with NextGen Alpha Upfitting for the purchase and insta lation of police vehicle equipment, approving Change Order No. 1 with Continental Collision for auto- body paint service, and approving related budget amendment.

CEQA STATUS: Not a Project as Defined in Section 15378 of the State CEQA Guidelines.

February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 6 19 5. SCHEDULED ITEMS

5. 1 PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER COMMUNITY

DEVELOPMENT BLOCK GRANT ( CDBG) AND HOME INVESTMENT

PARTNERSHIP ACT ( HOME) PROGRAM ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
Economic Development Administrator Shelley Burcham provided the presentation. A question and answer period ensued throughout the presentation. Carmen Matty- Cervantes ( zoom speaker), San ) oaquin County Human Services Agency Representative provided information related to the Meals on Wheels Program for Lathrop residents and the outreach efforts for the program. Councilmember Torres- O' Callaghan expressed interest in finding ways to increase outreach and participation in the Meals on Wheels and Food Bank programs, and reallocate the proposed $ 25, 000 to other public assistance programs, intended for the Police Building ADA door upgrades due to the recently constructed building not being out of compliance. Councilmember Diallo expressed interest with HUD public assistance programs and outreach efforts for those programs. Parks, Recreation and Maintenance Services Director Todd Sebastian and Assistant City Manager Michaei King provided additional information on public programs and capital improvement projects eligible for CDBG. funds. The question and answer period continued. Mayor Dhaliwal opened the public hearing. There were no speakers. Mayor Dhaliwal closed the pubiic hearing.

On a motion by Councilmember Akinjo, seconded by Councilmember Lazard, the City Council considered the foliowing:

1. Held a Public Hearing; and

2. Adopted Resolution 23- 5218 recommending the proposed allocations of the CDBG and HOME Funds for FY 2023/ 2024 for consideration by San Joaquin County and the US Department of Housing and Urban Development ( HUD) pursuant to budget amendments.

Ayes: Akinjo, Diallo, Lazard, and Dhaliwal
Noes: Torres- O' Callaghan

Absent: None
Abstain: None
CEQA STATUS: This item is statutorily exempt under Article 18, Section 15273, because CEQA does not apply to the establishment or modification of HUD funding programs to public agencies, which are to meet community needs.

February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 7 20 5. 2 CITY COUNCIL DISCUSSION REGARDING REGULATION AND

LIMITATION OF HOTEL ESTABLISHMENTS
Community Development Director Mark Meissner and Assistant Community Development Director Rick provided the presentation, which included a summary of the November 14, 2022, referral on options regarding regulation and limitation of hotel establishments within the City. A question and answer period ensued. The City Council discussed the commercial areas within Central Lathrop Specific Plan, River Islands, and Mossdale Landing Development areas, approved hotel permit applications, and permit applications in the plan check process. Christina Laughlin ( zoom speaker) commented on the matter, inquired about transient tax, limiting gas stations and fast food establishments. The question and answer period continued.

The City Council discussed the matter and considered direction to staff to prepare an Ordinance for review by the Planning Commission, and subsequent consideration of the City Council, for regulation and limitation of hotel establishments.

On a motion by Dhaliwal, seconded by Vice Mayor Akinjo, the City Council directed staff to bring back an ordinance amendment limiting up to six ( 6) hotel projects in the Central Lathrop Specific Plan and Mossdale Landing development areas.

Ayes: Akinjo, Lazard, and Dhaliwal
Noes: Diallo and Torres- O' Callaghan

Absent: None
Abstain: None
CEQA STATUS: The project is exempt according to the California Environmental Quality Act ( CEQA) Article 5, § 15061( b)( 3), by the Common Sense Exemption".

5. 3 CONSIDER APPEAL OF THE PLANNING COMMISSION' S DECISION TO

APPROVE THE LATHROP CROSSROADS INDUSTRIAL PRO) ECT
Community Development Director Mark Meissner and Assistant Community Development Director Rick provided the presentation, which included a project summary, vicinity map, site plan options, Sierra Club appeal, and the City' s response to the appeal. A question and answer period ensued throughout the presentation. Matthew D. Francois, Rutan Tucker, LLP, provided a public comment letter, dated February 13, 2023, requesting denial of the appeal and approval of the project. Raul Hernandez, United Association Local 442, provided a public comment letter, dated February 10, 2023, requesting denial of the appeal and approval of the project.

February 13, 2023 athrop City Council Regular Meeting Minutes Page 8 21 Brian Cooley, Richland Developer, Inc., provided a public comment letter, dated February 13, 2023, requesting denial of the appeal and approval of the project. Adriana Flores- Lopez ( in person speaker) requested additional information regarding the health risk assessment prioritization score required by the San Joaquin Valley Air Pollution Control District. Matthew Francois ( in person speaker), Rutan & Tucker, LLP, Land Use Attorney for the Applicant, provided additional project information. Brian Cooley ( in person speaker), Senior Director of Land Entitlement, Applicant representing Richland Developers, Inc., provided additional project information. Karen Moore ( zoom speaker), commented on economically viable projects supportive of environmentally responsive solutions. Eric Parfrey ( zoom speaker), representing the Sierra Club, commented on conversations and negotiations with the Richland Developers, expressed concern with environmental impacts, and review of possible mitigation measures to reduce impacts to the community. Margo Praus ( zoom speaker), Chair of the local Delta Sierra Group, expressed concern with air quality mitigations and other related environmental impacts.

Mayor Dhaliwal temporarily stepped down from the dais at 10: 34 p. m., and returned at 10: 36 p. m.

Raul Hernandez ( zoom speaker) United Association Local 442, expressed support for the project, and commented on the use of local labor unions for the project. The City Council question and answer period continued. City Manager Stephen Salvatore provided additional information regarding the City' s endeavors in environmentally friendly projects.

On a motion by Vice Mayor Akinjo, seconded by Mayor Dhaliwal, the City Council considered the following:

1. Considered all written and oral information presented in this report and at the meeting of February 13, 2023; and

2. Adopted Resolution 23- 5213 affirming the Planning
Commission' s decision to approve Resolution No. 22- 15 for the Initial Study Mitigate Negative Declaration and
Resolution No. 22- 16 for the Site Plan Review for the
construction to construct one of the two following
development options:
o Option l: One ( 1) 448, 904 square foot warehouse
building consisting of 251 total parking stalls ( 243
standard, 8 ADA), 144 trailer parking stalls, 13
bicycle spaces, 50 truck dock stations, and 12, 000
square feet of office space; or
February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 9 22 o Option 2: Three ( 3) warehouse buildings totaling
386, 179 square feet consisting of 423 parking stalls
411 standard, 12 ADA), 62 trailer parking stalis, 13
bicycle spaces, 74 truck dock stations, and 20, 000
square feet of office space.

Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan and Dhaliwal Noes: None

Absent: None
Abstain: None
CEQA STATUS: An Initial Study and Mitigated Negative Declaration IS/ MND) was prepared for the Lathrop Crossroads Industria) Project State Clearinghouse No. 2022090562) to disclose potential significant environmental effects of the proposed project and identifies feasible mitigation measures that would reduce the potential significant environmental effects to a less than significant level. The IS/ MND was prepared in compliance with the California Environmental Quality Act CEQA).

5. 4 OUT- OF- STATE TRAVEL APPROVAL FOR THE 2023 SAN JOAQUIN

COUNTY ONE- VOICE TRIP
City Clerk Teresa Vargas provided the presentation. A question and answer period followed. The City Council discussed and approved Option 1, approving out of state travel for two Council Members and the City Council.

On a motion by Mayor Dhaliwal, seconded by Vice Mayor Akinjo, the City Council adopted Resolution 23- 5214 authorizing out- of- state travel, for Vice Mayor Akinjo, Councilmember Diallo, and City Manager Stephen Salvatore, to the 2023 San Joaquin One Voice Trip to Washington, D. C. from May 6- 11, 2023, and approved the related budget amendment.

Ayes: Akinjo, Diallo, Lazard, Torres- O' Callaghan and Dhaliwal Noes: None

Absent: None
Abstain: None
CEQA Status: The Activity is not a Project as Defined in Section 15378 of the State CEQA Guidelines.

6. COUNCIL COMMUNICATIONS
Following a brief discussion amongst the City Council, Council consensus provided direction to move Item 6. 1 and Item 6. 2 before the Consent Calendar Item 4.

February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 10 23 6. 1 MAYOR DHALIWAL REFERRAL: Appointment of One ( 1) Member to the Senior Advisory Commission with Term Ending June 30, 2024, Due to Unscheduled Term Vacancy.

One ( 1) Application Received
Mayor Dhaliwal made the following appointment:

Senior AdvisorY Commission Term Expires
Erica Crowder June 30, 2024
On a motion by Councilmember Lazard, seconded by Vice Mayor 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 COUNCILMEMBER DIALLO REFERRAL: Discuss Consideration of Renting the Generations Center and Park for a Juneteenth Event, to be Hosted by an Outside Organization.

Mayor Dhaliwal requested clarification on the title, stated the referral came from residents of the City of Lathrop. Councilmember Diallo expressed various concerns on the matter, including the title of the referral and requested clarification with park rentals to local organizations. A question and answer period ensued throughout the discussion of the referral. Parks, Recreation and Maintenance Services Director Todd Sebastian, City Attorney Salvador Navarrete, and City Manager Stephen Salvatore provided additional information on the matter. In person speakers Jose Garcia Martin, Shelita Jefferson, Michael Wells, Michael Darby, Janae Garcia Martin, Erayna Garcia Martin, Rachelle William, Krystal Taylor, and Robbie Swan spoke in favor of the referral and holding a Juneteenth celebration event. Christina Laughlin ( zoom speaker) spoke in support of the event. The City Council question and answer period continued. Rosita Jennings provided two public comment letters through email, dated February 13, 2023, for Item 6. 2; printed copies were made available for the public in attendance, uploaded to the city' s website and distributed to the City Council. Following discussions, Mayor Dhaliwal made a motion directing staff to work with the organizers of the event in preparation of the Juneteenth celebratory event, and to bring back a policy for future Council discussion. Councilmember Diallo expressed opposition to the motion. A question and answer period ensued. Mayor Dhaliwal withdrew his motion and asked staff to work with the Juneteenth event organizers February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 11 24 on the event, and bring back any matters requiring Council action. There was no further discussion on the matter.

The meeting continued with reading of Item 4, Consent Calendar.

6. 3 MAYOR & COUNCILMEMBER COMMITTEE REPORT( S) - None

6. 4 MAYOR & COUNCILMEMBER COMMENT( S)
Councilmember Torres- O' Callaghan and Vice Mayor Akinjo thanked those in attendance and wished a Happy Valentine' s Day.

Councilmember Diallo expressed appreciation to Assistant City Manager Michael King for the waikthrough of the River Islands Schools with Councilmember Diallo and members of the community, and requested a referral for the next meeting to request a student internship program.

Mayor Akinjo thanked those in attendance and their participation in the meeting.

7. AD] OURNMENT — There being no further business, Mayor Dhaliwal adjourned the meeting at 11: 02 p. m.
i
r
l • /` P
T resa Vargas, MMC
Government Services D'ifector/
City Clerk
February 13, 2023 Lathrop City Council Regular Meeting Minutes Page 12 25 26
ITEM 4. 3

CITY MANAGER' S REPORT
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
ITEM: SECOND READING AND ADOPTION OF ORDINANCE
23- 444 OF THE CITY COUNCIL OF THE CITY OF

LATHROP AMENDING THE LATHROP MUNICIPAL
CODE TITLE 10 VEHICLES AND TRAFFIC, CHAPTER

10. 08 SPEED LIMITS SECTION 10. 08. 030 ' SPEED
LIMITS"
RECOMMENDATION: Waive Full Reading and Adopt Ordinance 23- 444 Amending Lathrop Municipal Code Title 10 Vehicles
And Traffic, Chapter 10. 08 Speed Limits Section

10. 08. 030 " Speed Limits"
RECOMMENDED ACTION:

The City Council to conduct second reading and adopt Ordinance 23- 444 entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP AMENDING THE LATHROP MUNICIPAL CODE TITLE 10 VEHICLES AND TRAFFIC, CHAPTER 10. 08 SPEED LIMITS SECTION 10. 08. 030 SPEED LIMITS"
SUMMARY:

On March 13, 2023, the City Council approved the introduction and first reading of the subject Ordinance by the following vote:

AYES: Diallo, Lazard, Torres- O' Callaghan, and Akinjo
NOES: None
ABSTAIN: None
ABSENT: Dhaliwal
The Ordinance will take effect 30 days after adoption.

SUBMITTED BY:
3 T resa Vargas, Cit Cle k Date
27 ORDINANCE NO. 23- 444

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP AMENDING THE LATHROP MUNICIPAL CODE TITLE 10 VEHICLES AND TRAFFIC, CHAPTER

10. 08 SPEED LIMITS SECTION 10. 08. 030 SPEED LIMITS"
WHEREAS, the California Vehicle Code ( CVC) requires that an Engineering and Traffic Survey ( Survey) be conducted to establish a legally enforceable prima facie speed limit for a public roadway; and
WHEREAS, the City of Lathrop has enacted an ordinance to establish the prima facie speed limits on portions of certain streets within the City; and WHEREAS, Crane Transportation Group ( CTG) has conducted Surveys to establish legal speed limits for specific, recently constructed streets; and WHEREAS, to update or establish speed limits for the indicated streets, it is necessary to amend Title 10 Vehicles and Traffic, Chapter 10. 08 Speed Limits, Section 10. 08. 030 Speed Limits of the Lathrop Municipal Code; and WHEREAS, proper notice of this public hearing was given to all aspects as required by law; and
WHEREAS, City Council approved the following speed limits for respective segments as presented at the first reading of the Ordinance on March 13, 2023; and

SEGMENT NAME SEGMENT BEGIN SEGMENT END

DESIGN PROPOSED

SPEED SPEED LIMIT
Marina Dr. River Bend Dr. Somerston Pkwy. 25 25
Marina Dr. Somerston Pkwy. Taft Dr. 25 25
Academy Dr. River Bend Dr. Somerston Pkwy. 25 25
Lakeside Dr. Stewart Rd. Vega Roundabout 25 35
Lakeside Dr. Vega Roundabout Somerston Pkwy. 25 35
Lakeside Dr. Somerston Pkwy. Dell' Osso Dr. 25 35
Dell' Osso Dr. Mulholland Dr. River Islands Pkwy. 25 35 Dell' Osso Dr. River Islands Pkwy. Lakeside Dr. 35 45
Somerston Pkwy. Riverfront Dr. River Islands Pkwy. NONE 35 WHEREAS, City Council approved the following speed limits for respective segments with indicated modifications at the first reading of the Ordinance on March 13, 2023.

Ordinance No. 23- 444
28 DESIGN

PROPOSED PPROVED

SEGMENT NAME EGMENT BEGIN SEGMENT END SPEED SPEED
SPEED

LIMIT LIMIT
River Islands Pkwy. S) River Bridge PkWerston
35 45 35
Y•
River Islands Pkwy. PkW erston
Norbeck St. 40 45 40
Y•
Academy Dr.

Somerston Broadmoor
25 30 25
Pkwy. Wy.

Somerston Pkwy.

River Islands 800' South of
40 45 35
Pkwy. Lakeside Dr.

Commercial St. Marina Dr. Academy Dr. 25 30 25

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LATHROP DOES HEREBY ORDAIN AS FOLLOWS:

Section 1.

Section 10. 08. 030, of the Lathrop Municipal Code, is amended to read in full as follows:

It shall be prima facie unlawful to operate any vehicle at speed in excess of that established as follows:

A. The speed limit shall be fifty ( 50) miles per hour on the following street segments:

Street Limits
Golden Valley Parkway Lathrop Road to River Islands Parkway McKinley Avenue Louise Avenue to Yosemite Avenue
B. The speed limit shall be forty-five ( 45) miles per hour on the following street segments:

Street Limits
Dell' Osso Drive River Islands Parkway to Lakeside Drive Golden Valley Parkway River Island Parkway to Towne Centre Drive Golden Valley Parkway Towne Centre Drive to Brookhurst Boulevard Harlan Road Roth Road to Slate Street
Harlan Road Slate Street to Lathrop Road
Harlan Road Louise Avenue to D' Arcy Parkway
Harlan Road D' Arcy Parkway to Tesla Drive
Harlan Road Tesla Drive to End of Road
Howland Road Louise Avenue to D' Arcy Parkway
Lathrop Road McKinley Avenue to city limits
Louise Avenue Interstate 5 to Harlan Road
Ordinance No. 23- 444
29 Louise Avenue Harlan Road to Fifth Street
Louise Avenue Fifth Street to McKinley Avenue
Louise Avenue McKinley Avenue to City Limits
Manthey Road Dos Reis Road to City Limits
Manthey Road Towne Centre Drive to Brookhurst Boulevard Manthey Road Brookhurst Boulevard to Mossdale County Park Manthey Road Stewart Road to Interstate 5 Ramps
McKinley Avenue Yosemite Avenue to City Limits
McKinley Avenue Lathrop Road to Louise Avenue
River Islands Parkway Golden Valley Parkway to McKee Boulevard Tesla Drive Harlan Road to Christopher Way
Yosemite Avenue SR 120 to D' Arcy Parkway
Yosemite Avenue D' Arcy Parkway to City Limit
C. The speed limit shall be forty ( 40) miles per hour on the following street segments:

Street Li m its
D' Arcy Parkway Yosemite Avenue to Christopher Way
D' Arcy Parkway Christopher Way to Harlan Road
Dos Reis Road Manthey Road to East School Zone
Harlan Road Lathrop Road to Louise Avenue
Lathrop Road 5th Street to McKinley Avenue
Manthey Road Lathrop Road to Dos Reis Road
Manthey Road Mossdale County Park to Stewart Road
River Islands Parkwav Somerston Parkway to Norbeck Street D. The speed limit shall be thirty- five ( 35) miles per hour on the following street segments:

Street Li m its
Barbara Terry Boulevard Spartan Way to McKee Boulevard
Barbara Terry Boulevard McKee Boulevard to Adobe Way
Brookhurst Boulevard Manthey Road to Golden Valley Parkway Brookhurst Boulevard Golden Valley Parkway to McKee Boulevard Brookhurst Boulevard McKee Boulevard to Golden Spike Trail Dell' Osso Drive Mulholland Drive to River Islands Parkwav Christopher Way D' Arcy Parkway to End of Road
Dos Reis Road East School Zone to West School Zone
Dos Reis Road West School Zone to Dos Reis Park
Golden Spike Trail Towne Centre Drive to Brookhurst Boulevard Lakeside Drive Stewart Road to Vega Park Roundabout
Lakeside Drive Vega Park Roundabout to Somerston Parkway Lakeside Drive Somerston Parkway to Dell' Osso Drive
Lathrop Road Interstate 5 to Rev Maurice Cotton Drive
Lathrop Road Rev Maurice Cotton Drive to Fifth Street
McKee Boulevard Brookhurst Boulevard to Towne Centre Drive McKee Boulevard Towne Centre Drive to Johnson Ferry
Ordinance No. 23- 444
30 McKee Boulevard Johnson Ferry to River Islands Parkway McKee Boulevard River Islands Parkway to Barbara Terry Boulevard Murphy Parkway Tesla Drive to D' Arcy Parkway
Murphy Parkway D' Arcy Parkway to End of Road
River Islands Parkway Interstate 5 to Golden Valley Parkway River Islands Parkway McKee Boulevard to San ) oaquin River bridge River Islands Parkwav San Joaquin River Bridge to Somerston Parkwav Roth Road Interstate 5 to East City Limits
Seventh Street J Street to Thomsen Road
Somerston Parkwav Riverfront Drive to River Islands Parkwav Somerston Parkwav River Islands Parkway to South of Lakeside Drive E. The speed limit shall be thirty ( 30) miles per hour on the following street segments:

Street Li m its
Inland Passage Way Sadler Oak Drive to Open Range Avenue Slate Street Harlan Road to Deerwood Way
Slate Street Deerwood Way to Stonebridge Lane
Opal Street Stonebridge Lane to Deerwood Way
Opal Street Deerwood Way to Slate Street
Sadler Oak Drive Manthey Road to Inland Passage Way
Johnson Ferry Road Colonial Trail to Golden Spike Trail Stonebridge Lane Harlan Road to Slate Street
F. The speed limit shall be twenty- five ( 25) miles per hour on the following street segments:

Street Limits
Academy Drive River Bend Drive to Somerson Parkwav
Academy Drive Somerston Parkway to Broadmoor Way
Cambridge Drive Lathrop Road to Louise Avenue
Commerical Street Marina Drive to Academy Drive
Fifth Street K Street to O Street
J Street Harlan Road to Fifth Street
Lathrop Road Interstate 5 to Golden Valley Parkway
Marina Drive River Bend Drive to Somerston Parkwav
Marina Drive Somerston Parkway to Taft Drive
O Street Harlan Road to Seventh Street
Spartan Way Golden Valley Parkway to Generations Center Spartan Way Generations Center to Lathrop High School
Spartan Way Lathrop High School to Stanford Crossing
Spartan Way Stanford Crossing to Barbara Terry Boulevard Stewart Road Manthey Road to South River Bend
Thomsen Road Harlan Road to Grayson Road
Thomsen Road Grayson Road to Halmar Lane
Thomsen Road Halmar Lane to Seventh Street
Towne Centre Drive Golden Valley Parkway to McKee Boulevard Towne Centre Drive McKee Boulevard to Village Avenue
Ordinance No. 23- 444
31 G. The following list of two hundred thirty- seven ( 237) roadway segments that meet the requirements defined in section 40802( b) of the CVC for a local street are not subject to the requirement for an Engineering and Traffic Survey. These local / residential streets shall have a recommended prima facie speed limit of 25 mph that can be enforced with radar, exempt from speed trap laws related to Engineering and Traffic Survey requirements:

Admiral Way Cannella Drive Ferry Launch Avenue
Adobe Way Carleta Place Finchwood Drive
Almond Orchard Way Carnaby Road Flagstone Street
American Farms Avenue Carnelian Avenue Fleurette Lane
Americana Way Cedar Valley Drive Flint Avenue
Andover Way Cedarbrook Way Forestwood Way
Apple Grove Avenue Chandra Way Forty Niner Trail
Applewood Way Channel Drive Four Corners Court
Argillite Avenue Charmaine Court G Street
Aries Place Christie Falls Way Gaar Avenue
Arkose Street Claim Stake Avenue Gail Drive
Aspenwood Avenue Cloudy Bay Galena Street
August Drive Cobble Creek Way Garden Glade Street
Autumn Rain Drive Cold Springs Street Gardner Place
Autumnwood Avenue Colonial Trail Garmetta Way
Avon Avenue Covered Bridge Way Gold Nugget Trail
Aztec Land Craftsman Drive Golden Spike Trail
Back Bay Drive Crescent Moon Drive Goldstone Street
Baywood Way Crescent Park Circle Granite Avenue
Bella Place Daffodil Hill Street Grapevine Place
Bellchase Road Dalton Court Grayson Road
Berkshire Court Danbury Place Green Plaza
Bizzibe Street Derby Lane Greengate Place
Blackwood Avenue Dolomite Street Gypsum Way
Bloom Way Dry Creek Place H Street
Blue Sky Drive Eagle Lane Halmar Lane
Boulder Avenue Easy Street Havenwood Avenue
Bramblewood Avenue Emerald Bay Court Historic Avenue
Brewer Street Emory Oak Place Homestead Avenue
Brookfield Avenue Englewood Way Honey Place
Brookhurst Boulevard English Country Trail Hornfels Avenue Brookwood Way Eton Way I Street
Calcite Avenue Evergreen Avenue Independence Avenue
Cambridge Drive Exeter Court Iron Horse Trail
Camelback Street Fairview Way J Street
Camish Place Ferndale Street Janice Place
Ordinance No. 23- 444
32 Jasper Street Ore Claim Trail Sedona Lane
Johnson Ferry Road Orlando Lane Settler Trail
Jonquil Drive Osage Place Shadowberry Place
Julie Lane Parkhaven Street Shady Mill Way
K Street Parkside Drive Shady Shores Drive
Kirkwood Way Pasture Avenue Shadywood Avenue
L Street Patricia Place Sheltered Cove
Landmark Point Patriot Way Shilling Avenue
Late Harvest Place Pecan Hollow Way Showlow Lane
Lazy Ridge Avenue Pennant Avenue Sierra Gold Trail
Leather Oak Road Pheasant Downs Road Siltstone Avenue
Libby Lane Pine Valley Drive Silver Creek Drive
Liberty Point Pinewood Drive Sixth Street
Limestone Avenue Pioneer Avenue South Lagoon Way
Lisa Lane Pipestone Street Southport Street
Loganberry Way Platinum Avenue Spar Street
Long Barn Drive Pony Express Way St. Andrew Street
Lottie Way Poppy Drive Stage Coach Drive
Magnetite Avenue Prairie Dunes Drive Stone Cellar Way
Maharaja Drive Princeville Street Strawberry Glen Street Mariners Drive Quartz Way Sugar Pine Drive
Matador Way Queirolo Road Sunflower Drive
Maxwell Lane Rail Way Sunrise Place
Meteorite Street Red Barn Place Suzie Q Lane
Milestone Drive Redstone Street Talc Street
Mill Stone Way Reiger Drive Thomsen Road
Millpond Avenue Renaissance Avenue Tidewater Point
Mingo Way Reverend Maurice Cotton Drive Toro Lane
Mossy Point Way River Bend Drive Town Square
N Street Riverboat Drive Tracywood Avenue
Navigator Drive Riverdale Street Travertine Avenue
New England Avenue Rocky Harbor Road Trestle Point
New Well Avenue Rosebriar Place Tulip Tree Way
Noel Lane Rosewood Street Tumbleweed Lane
Obsidian Street Ryhiner Lane Upstream Drive
Old Glory Way Saguaro Lane Victorian Trail
Old Wharf Place Samoa Lane Village Avenue
Olivine Avenue Sand Bar Way W Nut Tree Court
Onyx Avenue Schumard Oak Road Warfield Road
Open Range Avenue Scrub Oak Drive Warren Avenue
Ordinance No. 23- 444
33 Water Mills Street Wheat Field Street Woodfield Drive Water Way Wild Oak Drive Wynona Way
Waterman Avenue Williamstowne Zalman Lane
Section 2. Intent
This Ordinance is not intended to and shall not be construed or given efFect in a manner that imposes upon the city or any officer or employee thereof a mandatory duty of care toward persons and property within or without the city so as to provide a basis of civil liability for damages, except as otherwise imposed by law.

Section 3. Severabilitv
If any provisions of this Ordinance or application thereof to any person or circumstances is held invalid, such invalidity shall not efFect other provisions or applications of the Ordinance which can be given efFect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the validity of any particular portions thereof.

Section 4. Effective Date
This Ordinance shall take legal effect and be in force thirty ( 30) days from and after the date of its passage.

Section 5. Publication
Within fifteen ( 15) days after its final passage, the City Clerk shall cause a copy of this Ordinance to be published in full accordance with Section 36933 of the Government Code.

Ordinance No. 23- 444
34 THIS ORDINANCE was introduced at a regular meeting of the City Council of the City of Lathrop on the 13t" day of March 2023, and was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lathrop on the th day of 2023 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Ordinance No. 23- 444
35 36

CITY MANAGER' S REPORT
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING ITEM 4. 4
ITEM: ACCEPTANCE OF THE CITY OF LATHROP ANNUAL

COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR
THE FISCAL YEAR ENDING 7UNE 30, 2022
RECOMMENDATION: Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for
the Fiscal Year Ending 7une 30, 2022
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, 2022. 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 March 31, 2023. 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. 37 CITY MANAGER' S REPORT PAGE 2
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING .7UNE 30, 2022 The Annual Comprehensive Financial Report ( ACFR) for the fiscal year ended June 30, 2022 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 March 31, 2023, 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.

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 38 CITY MANAGER' S REPORT PAGE 3
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING UNE 30, 2022
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.

ATTACH M ENTS:

A. Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for Fiscal Year Ending June 30, 2022.

B. City of Lathrop Annual Comprehensive Financial Report ( ACFR) for the Fiscal Year Ending June 30, 2022.

C. City of Lathrop Memorandum on Internal Control for the Fiscal Year Ending une 30, 2022
D. City of Lathrop June 30, 2022 Required Communications 39 CITY MANAGER' S REPORT PAGE 4
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2022 APPROVALS:

C
y/ 3 ZoZ3
Thomas Hedegard Date
Deputy Finance Director
Cari a e Date
Director Finance
3 zp Z
Salvador Navarrete Date
City Attorney
Z3
Stephen J Salvatore Date
City Manager
40 RESOLUTION NO. 23 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
WHEREAS, the financial statements of the City of Lathrop for the fiscal year ended June 30, 2022, 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, 2022 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, 2022, 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 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 March 31, 2023.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby accept the Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2022.
41 The foregoing resolution was passed and adopted this 10t" day of April 2023, 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 42 i.

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43 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
Prepared By
The Finance Department
Cari James Director of Finance
44 THIS PAGE INTENTIONALLY LEFT BLANK
45 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION:

Letterof Transmittal........................................................................................................................................... i OrganizationalChart........................................................................................................................................ vi Directory of Officials and Advisory Bodies................................................................................................... vii 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 ofthe 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............................................................................ 36 Statement of Revenues, Expenses and Changes in Fund
Net Position— Proprietary Funds..................................................................................................... 37 Statement of Cash Flows— Proprietary Funds............................................................................. 38 46 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position.............................................................................................. 40 Statement of Changes in Fiduciary Net Position............................................................................. 41 Notes to Financial Statements................................................................................................................. 43

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability— Miscellaneous Plan ..................... 76 Schedule of Plan Contributions— Miscellaneous Plan.................................................................... 78 Schedule of Changes in the Net OPEB Liability and Related Ratios.............................................. 80 Scheduleof OPEB Contributions............................................................................................................ 81 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual:

GeneralFund.............................................................................................................................. 82 Developer Projects Special Revenue Fund ............................................................................... 84 Capital Facility Fees Special Revenue Fund................................................................................ 85 Building Safety& Inspection Special Revenue Fund.................................................................... 86 Development Engineering Special Revenue Fund....................................................................... 87 Developer Deposits Special Revenue Fund................................................................................. 88 Notes to Required Supplementary Information...................................................................................... 89

SUPPLEMENTAL INFORMATION
General Fund:

Descriptionof General Funds........................................................................................................... 93 CombiningBalance Sheet................................................................................................................ 94 Combining Statement of Revenues, Expenditures and Changes inFund Balance................................................................................................................................. 95 Schedules of Revenues, Expenditures and Change in Fund Balances— Budget and Actual GeneralPurpose Fund.................................................................................................. 96 MeasureC..................................................................................................................... 98 47 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
Non- Major Governmental Funds:

Description of Non- Major Funds....................................................................................................... 99 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 Streetsand Roads Fund ............................................................................................. 130 FederalGrant Fund..................................................................................................... 131 StormDrain Fund........................................................................................................ 132 StreetLight Fund......................................................................................................... 133 A6939Recycling Fund................................................................................................ 134 Community Development Block Grant Fund .............................................................. 135 ScholarshipFund......................................................................................................... 136 COPSFund ................................................................................................................. 137 Office of Traffic and Safety Fund ................................................................................ 138 RTIF San Joaquin County Fund.................................................................................. 139 RTIF Lathrop Local West Fund................................................................................... 140 RTIFSJCOG Fund...................................................................................................... 141 RTIF Lathrop Local East Fund.................................................................................... 142 LMFDMeasure C Fund............................................................................................... 143 StateGrants Fund....................................................................................................... 144 Citywide Economic Dev Fee 20% Fund...................................................................... 145 River Islands CFD 2013- 1 Fund.................................................................................. 146 ULOP RD- 17 Levee Impact Fund............................................................................... 147 CLSP Off- Site Roadway Improvement Fund.............................................................. 148 South Lathrop CFD 2019- 1 Fund................................................................................ 149 Central Lathrop CFD 2019- 2 Fund.............................................................................. 150 Custodial Funds:

Combining Statement of Fiduciary Net Position— Custodial Funds.......................................... 152 Combining Statement of Changes in in Fiduciary Fund Net Position— Custodial Funds.......................................................................................................... 154 48 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number

STATISTICAL SECTION
Financial Trends:

NetPosition by Component............................................................................................................ 158 Changesin Net Position................................................................................................................. 160 Fund Balances of Governmental Funds..................................................................................... 162 Changes in Fund Balances of Governmental Funds.................................................................... 164 Revenue Capacity Information:

Property Tax Levies and Collections.............................................................................................. 166 Assessed Value and Estimated Actual Value of Taxabie Property.............................................. 167 PrincipalProperty Tax Payers........................................................................................................ 169 Debt Capacity Information:

Direct and Overlapping Governments............................................................................................ 170 LegalDebt Margin Information....................................................................................................... 172 OutstandingDebt............................................................................................................................ 174 Computation of Direct and Overlapping Debt................................................................................ 177 Pledged— Revenue Coverage....................................................................................................... 178 Demographic and Economic Information
Demographic and Economic Statistics.......................................................................................... 180 PrincipalEmployers......................................................................................................................... 181 49 CITY OF LATHROP, CALIFORNIA

ANNUALCOMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
Operating Information:

Full- Time and Part- Time City Empioyees by Function.................................................................. 182 OperatingIndicators by Function.................................................................................................... 184 Capital Asset Statistics by Function ............................................................................................ 185 WaterSold by Type of Customer................................................................................................... 186 WaterRates................................................................................................................................. 187 TenLargest Water Customers....................................................................................................... 188 Top 25 Sales Tax Producers....................................................................................................... 189 50 THIS PAGE INTENTIONALLY LEFT BLANK
51 S"''
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City of Lathrop
Departrnent ofFinance
390 Towne Centre Dcive
p, Lathrop, Califomia 95330
209- 94I- 7320
p, ww w.ci. lathrop. ca.us
March 31, 2023
To the Honorab/ e Mayor, Members ofthe 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, 2022 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 Council 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, 2022, 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.

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.
i
52 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 only on the fair presentation of the financial statements, but also on the audited government' s 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 includes 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, 2022, the City had an estimated population of 31, 331.

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 municipal election in November 1996, the position of the Mayor is etected 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.

The City of Lathrop provides a wide range of municipal services, including police public safety, water and sewer utilities, street maintenance, community services, 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 all residents. The Fire District and the City work together for the mutual benefit of both agencies and the citizens they serve. ii
53 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 2021/ 22 with building permits continuing to be issued at a rate consistent with an agency that is one of the fastest growing in the State. 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 saies 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 2022 and is expected to stabilize throughout 2023. Sales tax is the General Fund' s largest source of revenue and has largely recovered to pre- pandemic levels however the state of the economy from high inflation, supply chain challenges and ongoing world events remains concerning as we head into FY 2023. The City is currently navigating an unprecedented inflation situation that has not been encountered in recent history. The ability to budget conservatively has paid dividends with the uncertainty that has come with recent economic events. 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 are dedicated to the Community and our commitment to prudently manage the City' s finances. This commitment has contributed to our ability to endure these challenging times. The financial impacts of the pandemic have largely subsided compared to the prior fiscal year.

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.

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 iii
54 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 capital 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. During the biennial 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 biennial budget period. 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.

As the economy readjusts post-pandemic, inflation continues to be a key issue in 2023. Despite higher prices and concerns over a potential recession, consumer demand has remained consistent. 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, affordability and a short supply of homes available for sale has kept the local real estate market steady. Vulnerable to an economic downturn are sales tax, TOT and development- related revenues. Economic development continues to thrive as new businesses are motivated to locate in Lathrop due to its location, amenities, economic vibrancy, and high quality of life for residents.

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 partially funded the startup of Lathrop' s own Police Department, as well as additional Lathrop Police personnel to strengthen prevention and intervention services around the community.

CERTIFICATE OF ACHIEVEMENT
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 24"' 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. iv
55 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 wou d 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 responsible and enterprising manner.

Respectfully submitted,
r
y'----
j
Stephen J. Salvatore Cari J es
City Manager Direc r of Finance
v
56 City of Lathrop
Organizational Chart
FY 2021- 22

CITIZENS OF LATH ROP
G
A a
i
Paul Akinjo Jennifer Torres- Sonny Dhaliwal Minnie Diallo Diane Lazard Councilmember O' Callaghan Mayor Councilmember Vice Mayor Councilmember
i i
n___.__. w___, __ m...__ . m._,__.... m._.__
m.._.__ __ _. w....._ m n. r ._.. Ya_,..__.--
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57 DIRECTORY OF OFFICIALS AND ADVISORY BODIES

CITY COUNCIL
Sonny Dhaliwal, Mayor
JenniferTorres- O' Callaghan, Council Member
Paul Akinjo, Counci) Member
Minnie Diallo, Council Member
Diane Lazard, Vice Mayor

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 HEADS
City Manager/ Treasurer Stephen J. Salvatore
City Attorney Salvador Navarrete
Assistant City Manager Michael King
City Engineer Brad Taylor
Director of Government Services/ City Clerk Teresa Vargas Director of Finance Cari James
Director of Human Resources Vacant
Director of Parks, Recreation & Maintenance Services Todd Sebastian Chief of Police Raymond Bechler
Director of Community Development Mark Meissner
Chief Building Official Ed Short
viii
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59 i•
i•

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 the City of Lathrop, California, the " City") as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City' s basic financial statements 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, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America ( GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor' s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As described in Note 8 to the financial statements, in the fiscal year ended June 30, 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

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 generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

PrimeGiobal i , aj ,,, , .
60 LSL::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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 controi. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they wouid 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 Supplementary Information
Accounting principles generally accepted in the United States of America require that the managemenYs discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and required pension and other post- employment benefits schedules, as listed on the tabie of contents, 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 piacing the basic financial statements in an appropriate operational, economic, or historical context. 2 61
LSL::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
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.

Supp/ementary 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 schedules ( supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 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 direct y 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 supplementary information is 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 GoUernment Auditing Standards, we have also issued our report dated March 31, 2023 on our consideration of the City' s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The 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.

Brea, California
March 31, 2023
3 62

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4 63
E. City of Lathrop
Deparunent ofFinance
390 Tow e Cen[ ce Drive
Lathrop, California 95330
209- 94I- 7320
ty , ww v. ci. lar} ro}. ca. us
March 31, 2023

MANAGEMENT' S D/SCUSSION AND ANALYS/ S
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, 2022. Please read the information presented in conjunction with additional information that we have furnished in our letter of transmittal, beginning on page i, 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, 2022 by $ 667. 7 million ( net position). Of this amount, $ 118. 5 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

70. 7 million due in large part to$ 22. 6 million in sales and use taxes collected in the Fiscal Year.

The total revenue from all sources increased$ 124. 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$ 4. 4 million, a 24. 3 percent increase from the prior year.

At June 30, 2022, 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, 2021. Of this$ 142. 8 million total amount, $ 5. 9 million or 4. 1 percent is unassigned fund balance.

At June 30, 2022, the unassigned fund balance for the General Fund was$ 5. 7 million, compared to last year' s unassigned actual fund balance of$ 6.7 million. The decrease is due to capital projects committed to during the fiscal year.

OVERVIEW OF THE F/NANCIAL 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 managemenYs discussion and analysis ( Pages 5— 18), ( 2) the basic financial statements and notes to the financial statements( Pages 21 - 72), ( 3) statements of revenue, expenditures and changes in fund balancebudget to actual of major governmental funds ( Pages 80 - 87), 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- 156) and ( 5) the statistical section ( Pages 160- 191).

The basic financial statements include two different views of the City' s financial position. The governmentwide financial statements provide both long-term and short-term information about the City' s overall financial status.
5 64
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, 2022 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, 2022 on a government- wide basis.

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 statemenf 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. 6 65
The government- wide financial statements include the operations of the City itself and the blended component unit of the Lathrop Pubiic Facilities Financing Corporation. There are no discrete or component units. The government- wide financial statements can be found on Pages 21 — 25 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.

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 governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a 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 government- wide activities.

The City maintained 42 individual governmental funds in 2022. 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 businesstype activities in the government-wide financial 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— 37 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 of this report. 7 66
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 - 73 of this report.

Required and other information
Additional information is included 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 91 - 151 of this report.

GOVERNMENT- WIDE FINANCIAL 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 obiigations. In the case of the City, assets exceeded liabilities by$ 668 million at the close of Fiscal Year 2021/ 22.

Compared to the previous year, the City' s total net position increased by 15. 6 percent. This increase is primarily due to developer contributions of capital assets that took place in Fiscal Year 2021/ 22.

By far the largest portion of this year' s net position reflects the City' s investment in capital assets of 424 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$ 125 million or 18. 0 percent of total net position.

The remaining balance of$ 118. 5 million ( 23. 5 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, 2021 and 2022. 8 67
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
2021 2022 2021 2022 2021 2p22
Change
Assets:

Capital assets 221, 944 $ 253, 479 $ 184, 986 $ 190, 802 $ 406, 930 $ 444, 281 9. 18°/ o Otherassets 163,284 198, 957 58, 165 76, 957 221, 449 275, 914 24.59% TotalAssets 385, 228 452, 436 243, 151 267, 759 628, 379 720, 195 14.61% Deferred Outflows
Deferred Outflows Related
to Pension
2, 310 2, 329 288 316 2, 598 2, 645 1. 81%
Liabilities:

Current liabilities 18, 929 22, 361 3, 097 3, 987 22, 026 26, 348 19. 62% Long- term liabilities 11, 657 7, 837 19, 139 17, 171 30, 796 25,008 - 18. 79% Total Liabilities 30, 586 30, 198 22, 236 21, 158 52, 822 51, 356 - 2. 78% Deferred Inflows
Deferred Inflows Related
to Pension
630 3, 317 86 418 716 3, 735 421. 65%
Net Position:

Net Investment
in Capital Assets 218, 894 250, 605 156, 963 174, 059 375, 857 424, 664 12. 99% Restricted 103, 965 122, 950 1, 651 1, 653 105, 616 124, 603 17. 98% Unrestricted 33,463 47, 696 62, 503 70, 785 95, 966 118, 481 23. 46% Total Net Position 356, 322 $ 421, 251 $ 221, 117 $ 246, 497 $ 577, 439 $ 667, 748 15. 64% 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 15. 6 percent this year, from $ 577. 4 million at June 30, 2021 to$ 667.7 million at June 30, 2022.

Although the net position of the City' s business- type activities are$ 246. 5 million, the City generally can only use unrestricted net position to finance the continuing operations of the business- type activities.

Chanqes in net aosition
The City' s total program expenses of$ 61. 9 million are less than the total revenues of$ 152. 2 million for an increase in net position as of June 30, 2022 of $ 90.3 million. The table on the next page shows the summarized revenues and expenses for both fiscal years 2020/ 21 and 2021/ 22.

The City' s fiscal year 2021/ 22 change in net position was 39.5 percent higher than fiscal year 2020/21, due to an increase of 19.4 percent in total revenues and a decrease of 1. 5 percent in total expenditures in fiscal year 2021/ 22. The expenditure decrease is largely found in the governmental activities, which is a result of operating savings in the area.
9 68
Governmental program activities and general revenues of$ 117. 7 million and transfers out of$ 5. 8 million, supported expenses of$ 46. 9 million, for a total net increase in net position in tax- supported activities of 64 million. The reason for the increase in the governmental net position is due to an increase in one- time capital contributions from development activity.

Business- type activities revenues of$ 34. 5 million supported expenses of$ 14. 9 million and transfers in of

5. 8 million, for a total change in net position in utility enterprise activities of$ 25. 4 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$ 25. 4 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 Thousands)
Governmental Business-Type Total Primary Total
Activities Activities Government Percent
2021 2022 2027 2022 2021 Zp22
Change
Revenues:

Program revenues:

Charges for services 14, 791 $ 20, 692 $ 19, 016 $ 19, 900 $ 33, 807 $ 40, 592 20. 07% Operating grants and contributions 2, 710 5, 237 2, 710 5, 237 93. 25% Capital grants and contributions 16, 740 25,390 6, 863 4, 993 23, 603 30, 383 28. 73% General revenues:

Sales and use taxes 18, 190 22, 602 18, 190 22,602 24. 26% Property taxes 8, 613 9, 738 8, 613 9, 738 13. 06%
Franchisetaxes 1, 531 1, 640 5, 692 9, 461 7, 223 11, 101 53. 69% Transient occupancy taxes 739 1, 041 739 1, 041 40. 87% Other taxes 30, 621 32, 094 30, 621 32, 094
Other miscellaneous 945 1, 344 5 945 1, 349 42. 75%
Unrestrictedinvestmentearnings 701 ( 2, 101) 364 216 1, 065 ( 1, 885) - 277.00% Total Revenues 95, 581 717, 677 31, 935 34,575 127, 516 152, 252 19.40% Expenses:

Governmental activities:

General government 6, 544 6, 994 6, 544 6, 994 6. 88%
Communitydevelopment 8, 228 1, 805 8, 228 1, 805 - 78. 06%a Public safety 11, 729 11, 628 I' 1, 729 11, 628 - 0. 86% Public works 19, 893 14, 7' 11 19, 893 14, 711 - 26. 05% Culture and leisure 1, 466 11, 559 1, 466 11, 559 688. 47% Interest on long- term debt 241 234 241 234 - 2. 90%
Business- type activities:

Water enterprise 6, 767 7, 099 6, 767 7, 099 4.91%
Sewer enterprise 7, 926 7, 854 7, 926 7, 854 - 0. 91%
Total expenses 48, 101 46,931 14, 693 14,953 62,794 61, 884 - 1. 45% Excess before transfers 47, 480 70, 746 17, 242 19, 622 64, 722 90, 368 39.62% Transfers 1, 778 ( 5, 818) ( 1, 778) 5, 818
Change in Net Position 49, 258 64,928 15,464 25,440 64, 722 90,368 39.62% Net Position- Beginning 309, 230 356, 322 205, 506 221, 117 514, 736 577, 439 ' 12. 18% Prior Period Adjustment 2, 166) 147 2, 019)
Net Position, Beginning, Restated 307, 064 356, 322 205, 653 221, 117 512, 717 577,439 12. 62% Net Position- Ending 356, 322 $ 421, 251 $ 221, 117 $ 246,557 $ 577, 439 $ 667, 808 15. 65% 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). 10 69
2C122 EXPENSE A JD PROGRAM REVENUES -

GOVERNMENTAL ACTIVITIES
Program Revenues Expenses
35 30. 11
30 25
c
2Q S1a. lt
5 g. 19

11. 63 11. 56

9. 2
39 a
J

1.$ 1 3. 4
Q. 0.23
Gene mun'RY
welop Pub c
5 e
aubk
it and Leisu t 4 tese t
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$ 4. 4 million. 2022 REVENUES BY SOURCE- GOVERNMENTAL ACTIVITIES
Operating grants and
Property taxes
contribucions
4%
ranchisetaxes
Chargesforservices 196
1796
oaupancy taxes
196
Unrestritted investment
earnings
2%
Other misceiianeous Other taxes
1 Mator Vehicle in Iieu 2'
0%
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 2021/ 22, property tax revenues increased by$ 1. 1 million.
11 70
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 $ 46. 9 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 FY2021/ 22 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 2021 2p22 Percent 2021 2p22 Percent
Change Change
General government 6, 545 $ 6, 994 6. 86% $ 1, 320 $ 2, 218 68. 03% Communityde nelopment 8, 228 1, 805 - 78. 06% 4, 167) 6, 389 - 253.32% Publicsafety 11, 730 11, 628 - 0. 87% 11, 282) ( 8, 194) - 27. 37% Publicworks 19, 893 14, 711 - 26. 05°/a 1, 850 15, 404 732. 65% Culture and leisure 1, 466 11, 559 688. 47% 1, 342) ( 11, 196) 734. 28% Other 241 234 - 2. 90% 241) 234) - 2. 90%
Total 48, 103 $ 46, 931 - 2. 44°/ a $ ( 13, 862) $ 4, 387 - 131. 65% Business-type Activities
Business- type activities increased the City' s net position by $ 25. 4 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. 2022 EXPENSES& PROGRAM REVEIYUES
BUSINE55-TYPE AC7IVITIES
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12 71
2022 REVEWUE5 BY SOURCEBUSIPtESS-7YPE ACTIVITIES
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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.

The bar chart above illustrates program revenues exceeding program expenses by $ 3. 7 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. 7 million. This shows operating revenues exceeding operating expenses by $ 3. 7 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$ 1. 3 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.

FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.

Governmental 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, 2022, the City's governmental funds ( general, special revenue, and capital project funds) reported combined ending fund balances of$ 174. 7 million, an increase of$ 31. 9 million in comparison with the prior fiscal year. Approximately 9. 5 percent of this total amount ($ 16. 7 million) constitutes unassigned 13 72
fund balance, which is available for spending, at the City' s governing body' s discretion. Of the remainder fund balance, $ 2. 4 million is nonspendable, $ 122. 9 million is restricted and $ 32. 7 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 2022 fiscal year, fund balance of the general fund was $ 56. 7 million, of which $ 17. 7 million is unassigned fund balance. The increase in unassigned fund balance of the General Fund for Fiscal Year 2021/ 22 was due to increase sales and property taxes collected due to the economic recovery from Fiscal Year 2020/ 21. 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 305 percent of total General Fund expenditures of$ 18. 5 million in 2022. This means the City' s general governmental operations could continue for about 37- months without any additional revenue generation.

The Developer Projects fund had an ending fund balance of$. 4 million at June 30, 2022. 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 $ 55. 0 million as of June 30, 2022. 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 Building Safety and Inspection and Development Engineering funds had a combined ending fund balance of$ 8. 9 million as of June 30, 2022. 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 2021/ 22, the water utility enterprise fund increased its net position from $ 79. 9 million to

88. 4 million. Unrestricted net assets at the end of the fiscal year amounted to $ 37. 3 million, and are available for future capital water system improvements. $ 49. 4 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 2021/ 22, the sewer utility fund increased its net position from$ 141. 2 million to$ 158. 1 million.

Unrestricted net position at the end of the fiscal year amounted to$ 33. 5 million and, are available for future capital sewer system improvements. $ 124. 6 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 2021/ 22, the General Fund' s original budgeted expenditures of$ 19. 3 million increased to $ 24. 9 million at Final Amended Budget. Original adopted revenue estimates were $ 20. 9 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 2021/ 22.
14 73
GENERAL FUND FISCAL YEAR 2021/ 22 ORIGINAL AND FINAL BUDGETS

BY GOVERNMENTAL FUNCTION CATEGORY
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apital& Debt Culture and Community Pubiic Works Aublic Safety Generai Totaf 5s3 Qo leisure Develop Gover ment
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$ 5. 5 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 $ 5. 8 million to reflect revenues collected through increases in Measure C, Property and Sales Taxes.

After taking these adjustments into account, actual expenditures came in 25 percent below the final budget, at $ 18. 6 million. Capital Outlay expenditure savings contributed to this reduced spending level. Actual revenues in the General Fund were$ 10. 5 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 2020/21. The two pie charts below present total actual revenues for Fiscal Years 2020/ 21 and 2021/ 22 by revenue category. Total actual taxes comprised 81 percent of total General Fund revenues in Fiscal Year 2020/ 21 and 67 percent in Fiscal Year 2021/ 22.
15 74
FISCAL YEAR 2018/ 20 GENERAL FUNq REYENUE
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F{ SCAL YEAR 202t122 GENERAL FUND REVENUE
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CAPITAL ASSETAND DEBTADM/ NISTRATION
Capital Assets
At the end of Fiscal Year 2021/ 22, the City had$ 444.2 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$ 37. 3 million, or a 9. 2 percent increase, over Fiscal Year 2020/ 21. 16 75
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
2021 2022 2021 2022 2021 2022
Capital Assets Not Being Depreciated
Land 9, 630 $ 10, 560 $ 3, 565 $ 3, 565 $ 13, 195 $ 14, 125 Construction in progress 19, 874 21, 012 6, 190 10, 635 26, 064 31, 647 Depreciable Capital Assets
Buildings 7, 956 20, 708 7, 956 20, 708
Improvements 50,383 55, 425 174, 658 176, 060 225, 041 231, 485 Equipment and vehicles 1, 486 2, 619 575 541 2, 061 3, 160 Infrastructure 132, 616 143, 155 132, 616 143, 155
Total 221, 945 $ 253, 479 $ 184, 988 $ 190, 801 $ 406, 933 $ 444, 280 This year's major capital additions included:

Infrastructure 14, 768, 797
Water and Sewer Systems Improvements 4,706, 352
Equipment& Vehicles 561, 145
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 $ 19. 5 million in outstanding debt. The total outstanding in the business type activities at June 30, 2022 was$ 16. 7 million. Overall in Fiscal Year2021/ 22, 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
Activ ities Activ ities
Total
2021 2022 2021 2022 2021 2022
2017 Bank Loan 8, 874 $ 8, 178 $ 8, 874 $ 8, 178
State Revolving Fund Loan 6, 010 5, 554 6, 010 5, 554
Compass Bank Loan 3, 384 3, 010 3, 384 3, 010
Capital Loan- City Hall 3, 050 2, 745 3, 050 2, 745
Total 3, 050 $ 2, 745 $ 18,268 $ 16,742 $ 21, 318 $ 19,487 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. 17 76

ECONOMIC FACTORS AND NEXT YEAR' S BUDGETS AND RATES
The City Council considered many factors when setting the Fiscal Year 2021/ 22 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 924 in Fiscal Year 2021/ 22, 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 2021/ 22.

CONTACTING THE CITY FINANCIAL 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.
18 77

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 Governmenta 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 78

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20 79

CITY OF LATHROP

STATEMENT OF NET POSITION
JUNE 30, 2022
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments 188, 466, 155 $ 73, 744, 039 $ 262, 210, 194 Receivables:

Accounts( net of allowance for uncollectibles) 7, 965, 993 3, 928, 423 11, 894,416 Notes and loans 20, 350 20, 350
Accrued interest 98, 274 37, 922 136, 196
Internal balances 2, 405, 864 2,405,864)
Restricted assets:

Cash with fiscal agent 1, 652, 915 1, 652, 915
Capital assets not being depreciated 31, 612, 137 14, 200, 417 45, 812, 554 Capital assets, net of depreciation 221, 867, 009 176, 601, 105 398, 468, 114 Total Assets 452, 435, 782 267, 758, 957 720, 194, 739
Deferred Outflows of Resources:

Deferred pension related items 1, 760, 282 225, 752 1, 986, 034 Deferred OPEB related items 569, 133 90, 040 659, 173
Total Deferred Outflows of Resources 2, 329, 415 315, 792 2, 645, 207 Liabilities:

Accounts payable 8, 581, 249 2, 528, 410 11, 109,659
Accrued liabilities 795, 214 795, 214
Accrued interest 101, 245 101, 245
Unearned revenue 7, 160, 835 7, 160, 835
Deposits payable 5, 823, 626 1, 058, 254 6,881, 880
Due to other governments 298, 787 2gg g
Noncurrent liabilities:

Due within one year
Compensated absences 314, 246 12, 230 326, 476
Long- term Debt& loans payable 315, 000 1, 570, 205 1, 885, 205 Leases Payable 37, 177 37, 177
Due in more than one year
Compensated absences 1, 780, 728 69, 307 1, 850, 035
Long- term Debt& loans payable 2, 430, 000 15, 171, 896 17,601, 896 Leases Payable 91, 958 91, 958
Net pension liability 2, 653, 445 314, 215 2, 967, 660
Net OPEB liability 214, 064 33, 867 247, 931
Total Liabilities 30, 197, 542 21, 158, 416 51, 355, 958 Deferred Inflows of Resources:

Deferred pension related items 2, 488, 552 287, 454 2, 776, 006 Deferred OPEB related items 828, 089 131, 007 959, 096
Total Deferred Inflows of Resources 3, 316, 641 418, 461 3, 735, 102 Net Position:

Net investment in capital assets 250, 605, 011 174, 059, 421 424,664,432 Restricted for:

Community development 2, 088, 980 2, 088, 980
Public safety 1, 064, 058 1, 064, 058
Culture and leisure 1, 483, 378 1, 483, 378
Publicworks 117, 148, 650 117, 148, 650
Capital projects 1, 164, 924 1, 164, 924
Debt service 1, 652, 915 1, 652, 915
Unrestricted 47, 696, 013 70, 785, 536 118,481, 549
Total Net Position 421, 251, 014 $ 246, 497, 872 $ 667, 748, 886 See Notes to Financial Statement. 2
80 CITY OF LATHROP

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Program Revenues
Operating Capital
Charges for Contributions Cont ibutions
Expenses Services and Grants and Grants
Functions/ Programs
Primary Government:

Governmental Activities:

General government 6,994, 053 $ 9, 212, 336 $
Public safety 11, 628, 050 139, 111 3,295,283
Community development 1, 805,271 8, 161, 272 33,200
Culture and leisure 11, 559, 470 363,671
Publicworks 14, 711, 011 2, 816, 090 1, 908, 139 25, 390, 248 Interest on long- term debt 233, 740
Total Governmental Activities 46, 931, 595 20, 692, 480 5, 236, 622 25, 390, 248 Business- Type Activities:

Water 7, 099, 213 10, 758, 681 2,947,675
Sewer 7, 853,576 9, 141, 235 1, 985,352
Total Business- Type Activities 14, 952, 789 19, 899, 916 4, 933, 027 Total Primary Government 61, 884, 384 $ 40, 592, 396 $ 5, 236, 622 $ 30, 323, 275 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
Net Position at End of Year
See Notes to Financial Statement. 22
81 Net( Expenses) Revenues and Changes in Net Position
Primary Government
Governmental Business- Type
Activities Activities Total
2, 218, 283 $ 2, 218, 283
8, 193, 656) 8, 193,656)
6, 389, 201 6, 389, 201
11, 195, 799) 11, 195,799)
15, 403, 466 15, 403, 466
233, 740) 233, 740)
4, 387, 755 4,387, 755
6,607, 143 6, 607, 143
3, 273, 011 3, 273, 011
9, 880, 154 9, 880, 154
4, 387, 755 9, 880, 154 14, 267, 909
9, 737, 910 9, 737, 910
1, 041, 501 1, 041, 501
22, 602, 105 22, 602, 105
1, 640, 212 1, 640, 212
32, 094, 375 9, 460, 928 41, 555, 303
2, 101, 280) 216, 580 1, 884, 700)
1, 344, 184 5, 176 1, 349, 360
5, 818, 160) 5, 818, 160
60,540, 847 15, 500, 844 76, 041, 691
64,928,602 25,380,998 90, 309, 600
356, 322, 412 221, 116, 874 577, 439, 286
421, 251, 014 $ 246, 497, 872 $ 667, 748, 886
See Notes to Financial Statement. 23
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24 83

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 8 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.
25 84

CITY OF LATHROP

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Developer Capital Facility Building Safety
General Projects Fees Inspection
Assets:

Pooled cash and investments 49,225, 306 $ 2, 905, 411 $ 55, 010, 991 $ 13, 232, 206 Receivables:

Accounts( net of allowance for uncollectibles) 5, 027, 580 30, 207 4, 027 Notes and loans
Accrued interest 26, 082 2, 302 27, 637 6, 693
Due from other funds 28,058
Advances to other funds 2, 405,864
Total Assets 56, 712, 890 $ 2, 937, 920 $ 55, 042, 655 $ 13, 238, 899 Liabilities and Fund Balances:

Liabilities:

Accounts payable 1, 701, 703 $ 27, 776 $ 281, 155
Accrued liabilities 795,214
Unearned revenues 709, 697 3, 719, 512
Deposits payable 631, 964 2, 497, 309 246,753
Due to other funds
Total Liabilities 3, 838, 578 2, 497, 309 27, 776 4, 247, 420 Fund Balances( Deficits):

Nonspendable:

Nonspendable 2,405, 864
Restricted 440, 611 55, 014, 879 8, 991, 479
Committed 44,763, 906
Unassigned 5,704, 542
Total Fund Balances( Deficits) 52, 874, 312 440, 611 55, 014, 879 8, 991, 479 Total Liabilities
and Fund Balances( Deficits) 56, 712, 890 $ 2, 937, 920 $ 55,042, 655 $ 13, 238, 899 See Notes to Financial Statement. 2g
85 CITY OF LATHROP

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Other
Development Developer General CIP Governmental
Engineering Deposits Projects Funds
Assets:

Pooled cash and investments 10, 909, 180 $ 1, 420, 953 $ 10, 740, 734 $ 43, 196,435 Receivables:

Accounts( net of allowance for uncollectibles) 1, 022, 732 1, 881, 447 Notes and loans
20,350
Accrued interest 5, 704 994 6, 529 22, 333
Due from other funds
Advances to other funds
Total Assets 10, 914, 884 $ 2, 444, 679 $ 10, 747, 263 $ 45, 120, 565 Liabilities and Fund Balances:

Liabilities:

Accounts payable 104, 332 $ 720, 007 $ 1, 741, 187 $ 4, 005, 089 Accrued liabilities
Unearned revenues 2, 731, 626
Deposits payable 1, 800 2, 256, 945 188, 855
Due to other funds
28, 058
Total Liabilities 2, 837, 758 2, 976, 952 1, 741, 187 4,222, 002 Fund Balances( Deficits):

Nonspendable:

Nonspendable
Restricted 8, 077, 126 9, 006, 076 41, 419, 819 Committed Unassigned 532, 273) 521, 256)
Total Fund Balances( Deficits) 8, 077, 126 532, 273) 9, 006, 076 40, 898, 563 Tota Liabilities
and Fund Balances( Deficits) 10, 914, 884 $ 2, 444, 679 $ 10, 747, 263 $ 45,120,565 See Notes to Financial Statement. 2
86 CITY OF LATHROP

BALANCE SHEET

GOVERNMENTALFUNDS
JUNE 30, 2022
Total
Governmental
Funds
Assets:

Pooled cash and investments 186, 641, 216
Receivables:

Accounts( net of allowance for uncollectibles) 7, 965, 993 Notes and loans 20,350
Accrued interest 98, 274
Due from other funds 28, 058
Advancesto otherfunds 2, 405, 864
Total Assets 197, 159, 755
Liabilities and Fund Balances:

Liabilities:

Accounts payable 8, 581, 249
Accrued liabilities 795, 214
Unearned revenues 7, 160, 835
Deposits payable 5, 823, 626
Due to other funds 28,058
Total Liabilities 22, 388, 982
Fund Balances( Deficits):

Nonspendable:

Nonspendable 2, 405, 864
Restricted 122, 949, 990
Com m itted 44, 763, 906
Unassigned 4, 651, 013
Total Fund Balances( Deficits) 174, 770, 773
Total Liabilities
and Fund Balances( Deficits) 197, 159, 755
See Notes to Financial Statement. 28
87 CITY OF LATHROP

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balances of governmental funds 174, 770, 773
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. 253, 479, 146
Long- term debt and compensated absences that are not due and payable in the current period, and therefore, are not reported in the funds:

Long- term debt payable 2, 745, 000)
Lease Liabilities 129, 135)
Compensated absences 270, 035) 3, 144, 170)
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 892, 404 1, 760, 282 Deferred inflows related to the net pension liability:

Difference in actual to proportionate share contribution 260, 100) Changes of assumptions 2, 228, 452) 2, 488, 552)
Net pension liability 2, 653, 445)
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 452, 319 569, 133 Deferred inflows related to the net OPEB liability:

Differences between expected& actual experience 287, 216) Changes of assumptions 540, 873) 828, 089)
Net OPEB liability 214, 064)
Net Position of Governmental Activities 421, 251, 014
See Notes to Financial Statement. 29
88 CITY OF LATHROP

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Developer Capital Facility Building Safety
General Projects Fees 8 Inspection
Revenues:

Taxes and assessments 31, 794, 406 $ 21, 211, 818 $
Licenses and permits 330, 991
Intergovernmental 5,813, 592
Charges for services 711, 444 7, 466, 065
Use of money and property 2, 534, 483) 23, 538 162, 902 37, 419 Fines and forfeitures 99, 871
Developer participation 9, 535, 249
Miscellaneous 804, 209 14, 221
Total Revenues 37, 020, 030 9, 558, 787 21, 374, 720 7, 517, 705 Expenditures:

Current:

General government 7, 124, 908
Public safety 7, 122, 399
Community development 1, 687, 299
Culture and leisure 1, 655, 832
Public works 949, 071 243, 763 2, 369, 205
Capital outlay 1, 636, 478
Debt service:

Principal retirement 305, 000
Lease principal retirement 47, 316
Interest and fiscal charges 73, 886
Total Expenditures 20, 602, 189 243, 763 2, 369, 205
Excess( Deficiency) of Revenues
Over( Under) Expenditures 16,417, 841 9, 558, 787 21, 130, 957 5, 148, 500 Other Financing Sources( Uses):

Transfers in 6, 102, 401
Transfers out 9,410, 896) 10, 150,279) 7, 608, 980) 404, 270) Lease proceeds 137, 918
Total Other Financing Sources
Uses) 3, 170, 577) 10, 150, 279) 7, 608, 980) 404,270)
Net Change in Fund Balances 13, 247, 264 591, 492) 13, 521, 977 4, 744, 230 Fund Balances, Beginning of Year 39, 627, 048 1, 032, 103 41, 492, 902 4,247, 249 Fund Balances( Deficit), End of Year 52, 874, 312 $ 440, 611 $ 55, 014,879 $ 8, 991, 479 See Notes to Financial Statement. 30
89 CITY OF LATHROP

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALAM

GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2022
Capital Project
Special Revenue Funds Funds
Other
Development Developer General CIP Governmental
Engineering Deposits Projects Funds
Revenues:

Taxes and assessments 14, 109, 879
Licenses and permits 55, 475
Intergovernmental 4, 281, 195
Charges for services 5, 681, 724
Use of money and property 32, 257 6, 204 39,099 131, 784 Fines and forfeitures 1, 488, 745
Developer participation 1, 086, 202
Miscellaneous 102, 475 423,279
Total Revenues 5, 816, 456 1, 092, 406 39, 099 20, 490, 357 Expenditures:

Current:

General government
Public safety 4, 430, 454
Community development 1, 082 34, 504
Culture and leisure 1, 749, 641
Publicworks 2, 329, 580 861, 155 1, 712,768 8, 151, 874 Capital outlay 18, 930, 484 3, 700, 676
Debt service:

Principal retirement
Lease principal retirement
Interest and fiscal charges 159, 854
Total Expenditures 2, 330, 662 1, 021, 009 20, 643, 252 18, 067, 149 Excess( Deficiency) of Revenues
Over( Under) Expenditures 3, 485, 794 71, 397 20, 604, 153) 2, 423, 208 Other Financing Sources( Uses):

Transfers in 10, 084, 494 10, 228, 750
Transfers out 4, 659,380)
Lease proceeds
Total Other Financing Sources
Uses) 10, 084, 494 5, 569, 370
Net Change in Fund Balances 3, 485, 794 71, 397 10, 519, 659) 7, 992, 578 Fund Balances, Beginning of Year 4, 591, 332 603, 670) 19, 525,735 32, 905, 985 Fund Balances( Deficit), End of Year 8, 077, 126 $ ( 532, 273) $ 9, 006, 076 $ 40, 898,563 See Notes to Financial Statement. 31
90 CITY OF LATHROP

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALAN

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Total
Governmental
Funds
Revenues:

Taxes and assessments 67, 116, 103
Licenses and permits 386, 466
Intergovernmental 10, 094, 787
Charges for services 13, 859, 233
Use of money and property 2, 101, 280)
Fines and forfeitures 1, 588, 616
Developer participation 10, 621, 451
Miscellaneous 1, 344, 184
Total Revenues 102, 909, 560
Expenditures:

Current:

General government 7, 124, 908
Public safety 11, 552,853
Community development 1, 722, 885
Culture and leisure 3,405,473
Public works 16, 617, 416
Capital outlay 24, 267, 638
Debt service:

Principal retirement 305, 000
Lease principal retirement 47, 316
Interest and fiscal charges 233, 740
Total Expenditures 65, 277, 229
Excess( Deficiency) of Revenues
Over( Under) Expenditures 37,632, 331
Other Financing Sources( Uses):

Transfers in 26,415, 645
Transfers out 32,233, 805)
Lease proceeds 137, 918
Total Other Financing Sources
Uses) 5, 680, 242)
Net Change in Fund Balances 31, 952,089
Fund Balances, Beginning of Year 142,818,684
Fund Balances( Deficit), End of Year 174, 770, 773
See Notes to Financial Statement. 32
91 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, 2022
Net change in fund balances- total governmental funds 31, 952, 089 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 25, 622, 100
Developer contributions 14, 768, 797
Depreciation 8, 985, 289) 31, 405, 608
Repayment of long- term debt and leases is an expenditure in the governmental funds, but the repayment reduces long- term liabilities in the statement of net position.

Principal repayments on long- term debt 305, 000
Proceeds from the issuance of leases
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. 46, 609
Pension obligation expenses are expenditures in governmental funds, but reduce the net pension liability in the statement of net position. 872, 246 OPEB obligation expenses are expenditures in governmental funds, but reduce the net OPEB liability in the statement of net position. 347, 050 Change in Net Position of Governmental Activities 64,928, 602 See Notes to Financial Statement. 33
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34 93

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.
35 94

CITY OF LATHROP

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2022
Governmental
Business- Type Activities- Enterprise Funds Activities
Compensated
Absences
Internal
Water Sewer Totals Service Fund
Assets:

Current:

Cash and investments 37, 869, 247 $ 35, 874, 792 $ 73, 744, 039 $ 1, 824, 939 Receivables:

Accounts 2, 460, 375 1, 468, 048 3, 928, 423
Accrued interest 19, 356 18, 566 37, 922
Restricted:

Cash with fiscal agent 1, 652, 915 1, 652, 915
Total Current Assets 42, 001, 893 37, 361, 406 79, 363, 299 1, 824, 939 Noncurrent:

Capital assets, not being depreciated 3, 877, 263 10, 323, 154 14, 200, 417 Capital assets, net of depreciation 62, 320, 658 114, 280, 447 176, 601, 105 Total Noncurrent Assets 66, 197, 921 124, 603, 601 190, 801, 522 Total Assets 108, 199, 814 161, 965, 007 270, 164, 821 1, 824, 939 Deferred Outflows of Resources:

Deferred pension related items 139, 492 86, 260 225, 752 Deferred OPEB related items 55, 016 35, 024 90, 040
Total Deferred Outflows of Resources 194, 508 121, 284 315, 792 Liabilities:

Current:

Accounts payable 1, 287, 661 1, 240, 749 2, 528, 410
Accrued interest 101, 245 101, 245
Deposits payable 1, 026, 966 31, 288 1, 058, 254
Due to other governments 298, 787 298, 787
Accrued compensated absences 8, 200 4, 030 12, 230 273, 741 Loans payable 1, 570, 205 1, 570, 205
Total Current Liabilities 4, 293, 064 1, 276, 067 5, 569, 131 273, 741 Noncurrent:

Advances from other funds 2, 405, 864 2, 405, 864
Accrued compensated absences 46, 466 22, 841 69, 307 1, 551, 198 Net pension liability 188, 408 125, 807 314, 215
NetOPEBliability 20, 693 13, 174 33, 867
Loans payable 15, 171, 896 15, 171, 896
Total Noncurrent Liabilities 15, 427, 463 2, 567, 686 17, 995, 149 7, 551, 198 Total Liabilities 19, 720, 527 3, 843, 753 23, 564, 280 1, 824, 939 Deferred Inflows of Resources:

Deferred pension related items 176, 700 110, 754 287, 454 Deferred OPEB related items 80, 048 50, 959 131, 007
Total Deferred Inflows of Resources 256, 748 161, 713 418, 461 Net Position:

Net investment in capital assets 49, 455, 820 124, 603, 601 174, 059, 421 Restricted for debt service 1, 652, 915 1, 652, 915
Unrestricted 37, 308, 312 33, 477, 224 70, 785, 536
Total Net Position 88, 417, 047 $ 158, 080, 825 $ 246, 497, 872 $ See Notes to Financial Statement. 36
95 CITY OF LATHROP

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
overnmen a
Business- Type Activities- Enterprise Funds Activities
Compensated
Absences
Internal
Water Sewer Totals Service Fund
Operating Revenues:

Sales and service charges 10, 758, 681 $ 9, 141, 235 $ 19, 899, 916 $ Other income 5, 176 5, 176
Total Operating Revenues 10, 763, 857 9, 141, 235 79, 905, 092 Operating Expenses:

General and administrative 933, 092 565, 289 1, 498, 381 Maintenance and operations 3, 828, 030 4, 204, 012 8, 032, 042 Depreciation expense 1, 830, 469 3, 084, 275 4, 914, 744 Total Operating Expenses 6, 597, 591 7, 853, 576 14,445, 167 Operating Income( Loss) 4, 172, 266 1, 287, 659 5, 459, 925 Nonoperating Revenues( Expenses):

Taxes and assessments 3, 192, 522 6, 268, 406 9, 460, 928 Investment earnings 117, 334 99, 246 216, 580
Interest expense 507, 622) 507, 622)
Contributions 2, 947, 675 1, 985, 352 4, 933, 027
Total Nonoperating
Revenues( Expenses) 5, 749,909 8, 353, 004 14, 102, 913 Income( Loss) Before Transfers 9, 922, 175 9, 640, 663 19, 562, 838 Transfers in 6, 627, 678 14, 372, 540 21, 000, 218
Transfersout 8, 054, 378) 7, 127, 680) 15, 182, 058)
Changes in Net Position 8, 495, 475 16, 885, 523 25, 38Q998 Net Position:

BeginningofYear 79, 921, 572 141, 195, 302 221, 116, 874 End of Fiscal Year 88, 417, 047 $ 158, 080, 825 $ 246, 497, 872 $ See Notes to Financial Statement. 37
96 CITY OF LATHROP

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
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 10, 732, 125 $ 8, 938, 922 $ 19, 671, 047 $ Cash paid to suppliers for goods and services 3, 255, 065) 4, 032, 166) 7, 287, 231) Cash paid to employees for services 1, 012, 509) 622, 307) 1, 634, 816) Cash received from( payments to) others 5, 176 5, 176 288, 924 Net Cash Provided( Used) by Operating Activities 6, 469, 727 4, 284, 449 10, 754, 176 288, 924 Cash Flows from Non- Capital
Financing Activities:

Cash transfers in 6, 627, 678 14, 372, 540 21, 000, 218 Cash transfers out 8, 054, 378) 7, 127, 680) 15, 182, 058) Repayment made to other funds 532, 559) 532, 559)
Taxes and assessments 3, 192, 522 6, 268, 406 9, 460, 928 Advance to other funds
Net Cash Provided( Used) by
Non- Capital Financing Activities 1, 765, 822 12, 980, 707 14, 746, 529 Cash Flows from Capital
and Related Financing Activities:

Capital contributions 2, 947, 675 1, 985, 352 4, 933, 027 Acquisition and construction of capital assets 4, 135, 129) 6, 595, 052) 10, 730, 181) Principal paid on capital debt 1, 526, 152) 1, 526, 152) Interest paid on capital debt 507, 622) 507, 622)
Net Cash Provided( Used) by
Capital and Related Financing Activities: 3, 221, 228) 4, 609, 700) 7, 830, 928) Cash Flows from Investing Activities:

Interest received 107, 179 87, 342 194, 521
Net Cash Provided( Used) by
Investing Activities 107, 179 87, 342 194, 521
Net Increase( Decrease) in Cash
and Cash Equivalents 5, 121, 500 12, 742, 798 17, 864, 298 288, 924 Cash and Cash Equivalents at Beginning of Year 34, 400, 662 23, 131, 994 57, 532, 656 1, 536, 015 Cash and Cash Equivalents at End of Year 39, 522, 162 $ 35, 874, 792 $ 75,396, 954 $ 1, 824, 939 Reconciliation of Operating Income to Net Cash
Provided( Used) by Opereting Activities:

Operating income( loss) 4, 172, 266 $ 1, 287, 659 $ 5, 459, 925 $ Adjustments to Reconcile Opereting Income( Loss)
Net Cash Provided( Used) by Operating Activities:

Depreciation 1, 830, 469 3, 084, 275 4, 914, 744
Increase) decrease in accounts receivable 171, 306) 202, 313) 373, 619) Increase( decrease) in accounts payable 572, 965 171, 846 744, 811 Increase( decrease) in deposits payable 144, 750 144, 750 Increase( decrease) in compensated absences 9, 672 3, 166 12, 838 288, 924 Total Adjustments 2, 297, 461 2, 996, 790 5, 294, 251 288, 924 Net Cash Provided( Used) by
Operating Activities 6, 469, 727 $ 4, 284, 449 $ 10, 754, 176 $ 288, 924 Non- Cash Investing, Capital, and Financing Activities:

Accrued interest adjustment
See Notes to Financial Statement. 38
97 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 equiva ent arrangement. The financial activities of these funds are excluded from the Entity- wide financial statements but are presented in separate Fiduciary Fund financial statements.
39 98

CITY OF LATHROP

STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2022
Custodial Funds
Assets:

Pooled cash and investments 5,847, 920
Receivables:

Accrued interest 2, 145
Restricted assets:

Cash and investments with fiscal agents 3, 298,580
Total Assets 10, 833, 688
Liabilities:

Accounts payable 162, 108
Deposits payable 30,747
Due to other governments 6, 343, 635
Total Liabilities 6, 536,490
Net Position( Deficit):

Restricted for:

Individuals, organizations and other governments 4,297, 198 Total Net Position( Deficit) 4,297, 198
See Notes to Financial Statement. 40
99 CITY OF LATHROP

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
Custodial Funds
Additions:

Collections for assessment districts 6,342, 475
Investment earnings 10, 609
Total Additions 6, 353, 084
Deductions:

Administrative expenses 62, 214
Contractual services 87,528
interestexpense 5, 568, 196
Total Deductions 5, 717, 938
Changes in Net Position 635, 146
Net Position- Beginning of the Year 66, 113, 260)
Restatements 69, 775, 312
Net Position( Deficit)- Beginning of the Year, as restated 3, 662, 052 Net Position( Deficit)- End of the Year 4, 297, 198
See Notes to Financial Statement. 41
100

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42 101

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
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: generai 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 identifiabie 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.
43 102

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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 - governmental, 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.

Developers Proiects Special Revenue Fund
This fund accounts for developer paid fees restricted to/ committed expenditures associated with various developer projects.

Capital Facilitv Fees 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.

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. 44 103

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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.

General CIP 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 a custodian 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.
45 104

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 1: Summary of Significant Accounting Policies( Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result 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 for 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°/a 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.
46 105

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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 actua historical cost is not available. 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.
47 106

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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 capita assets.

Buildings 10 - 30 years
Improvements 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 Impro, ements 50, 000
Buildings 50, 000
Building Impro, ements 50, 000
Infrastructure 50, 000
Equipment, Furniture and Vehicles 10, 000
Intangible Assets 10, 000
Leasehold Impro ements 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. 48 107

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
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 assets that applies to a future period( s) and so will not be recognized as an outflow of resources ( expense/ expenditure) until then.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of esources, represents an acquisition of net assets that applies to a future period( s) and so will not be recognized as an inflow of resources ( revenue) until that time.
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.
49 108

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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.
50 109

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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 principle 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.
51 110

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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°/o 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, 2022, are as follows:

City cash and investments in primary government:

Cash and inv estments 262, 210, 194
Cash and investments, restricted, with fiscal agents 1, 652, 915 Total Cash 263, 863, 109
Cash and investments in Fiduciary Funds ( separate statement):

Cash and investments 5, 847, 920
Cash and inv estments, restricted, with fiscal agents 3, 298, 580 Total Fiduciary Funds cash and inv estments 9, 146, 500 Total cash and investments 273, 009, 609
Cash and Investments as of June 30, 2022, consist of the following:

Cash on hand 6, 260
Cash with financial institutions 113, 541, 176
I nvestments 159, 462, 173
Total Cash and Investments 273, 009, 609
52 111

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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/ Irnestment Minimum
Maximum Amount of in One Credit
Authorized Imestment 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% None N/ A Repurchase and Re erse 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 In estment 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:
53 112

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 2: Cash and Investments( Continued)
Maximum Maximum
Percentage/ Irnestment
Maximum Amount of in One
Authorized In estment 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 Government 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
Investment Type Less 13 to 24 Months 25 to 60 Months Total U. S. Treasury Obligations 4,861, 830 $ 25, 165, 930 $ 29, 078, 510 $ 59, 106, 270 U. S. GovernmentAgencies Issues 3, 255, 779 6, 833, 767 10, 089, 546 SupranationalObligations 1, 063, 284 589,686 439, 434 2, 092, 404 Local Agency Investment Fund 74, 090, 622 74, 090, 622
Asset Management Program 10, 282, 387 10, 282, 387
Money Market Mutual Funds 2, 910, 837 2,910, 837
In+ estrrients in County Pool 400, 986 400, 986
Certificate of Deposit 489, 121 489, 121
Totallnvestments 97, 354, 846 $ 32, 589, 383 $ 29, 517, 944 159, 462, 173 Cash in Banks and On Hand 113, 547, 436
Total City Cash and In estments 273, 009, 609
54 113

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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, 2022, these investments have an average maturity of 191 days.

Money market mutual funds are available for withdrawal on demand and at June 30, 2022, 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, 2022:

Investments by Fair Value Level: Level 1 Leuel 2 Total
U. S. Treasury Obligations 59, 106, 270 $ 59, 106, 270
U. S. GovernmentAgencies Issues 10, 089, 546 10, 089, 546 SupranationalObligations 2, 092, 404 2, 092, 404
Total Inveshrients by Fair Value Level 59, 106, 270 $ 12, 181, 950 71, 288, 220 Investments Measured at Amortized Cost:

Local Agency Investment Fund 74, 090, 622
Asset Management Program 10, 282, 387
Money Market Mutual Funds 2, 910, 837
Investrnents in County Pool 400, 986
Certificates of Deposit 489, 121
Cash in Banks and On Hand 113, 547, 436
Total City Cash and Inveshnents 273, 009, 609
55 114

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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 dea er 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, 2022, as provided by Standard and Poor' s, are as follows:

InvestmentType AAAm AA+ AAA Total
SupranationalObligations 2, 092,404 $ 2, 092, 404
Money Market Mutual Funds 2, 910, 837 2, 910, 837
Totals 2, 910, 837 $ 2, 092,404 5, 003, 241
Not Rated:

Local Agency Investment Fund 74, 090, 622
Asset Management Program 10, 282, 387
Investments in County Pool 400, 986
Certificates of Deposit 489, 121
Excempt from Credit Rating Disclosure:

U. S. Government Agencies Issues 10, 089, 545
US Treasury Obligations 59, 106, 270
Totallnvestments 159, 462, 172
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, 2022.

Note 3: Interfund Transactions
a. Long- Term Advances
As of June 30, 2022, the General Fund had advanced $ 2,405, 864 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 ne fiscal year.
56 115

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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, 2022, were as follows:

Transfers In Transfers Out
Major Governmental Funds:

General 6, 102, 401 $ 9, 410, 896
Developer Projects Special Revenue Fund 10, 150, 279
Capital Facilities Fee Special Revenue Fund 7, 608, 980 Building Safety & Inspection Special Revenue Fund 404, 270 General CIP Projects Fund 10, 084, 494
Major Enterprise Funds:

Water 6, 627, 678 8, 054, 378
Sewer 14, 372, 540 7, 127, 680
Non Major Governmental Funds 10, 228, 750 4, 659, 380
Total Interfund Transfers 47, 415, 863 $ 47, 415, 863
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, 2022, Due To ( From) Other Funds were as fol lows:

Due From Other Funds Due to Other Funds Amount
General Fund Nonmajor Governmental Funds 28, 058
28, 058
57 116

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 4: Capital Assets
a. Capital Asset Additions and Retirements
Capital assets activity for the year ended June 30, 2022, is as follows:

Balance Balance
Go ernmental ActiNtes Juy 1, 2021 Additions Retirements Transfers June 30, 2022 Capital assets not being depreciated:

Land 9, 629, 503 $ 970, 226 $ 10, 599, 729
Constructionin Progress 19, 874, 190 9, 575, 854 8, 437, 636) 21, 012, 408 Total capital assets not being depreciated 29, 503, 693 10, 546, 080 8, 437, 636) 31, 612, 137 Capital assets being tlepreciated/ amor6zed:

Buildings 11, 716, 095 12, 124, 759 1, 268, 699 25, 109, 553 Improeements 75, 019, 874 1, 378, 485 7, 168, 937 83, 567, 296 Equipmentand Vehicles 3, 936, 970 1, 525, 460 18, 771) 5, 443, 659 Infrastructure 200, 810, 823 14, 768, 797 215, 579, 620 Right- to- use Leased Assets 73, 010 137, 918 210, 928
Total capital assets being depriciated/ amortized 291, 556, 772 29, 935, 419 18, 771) 8, 437, 636 329, 911, 056 Less accumulated depreciabon/ amortization:

Buildings 3, 759, 863 642, 090 4, 401, 953
Impro ments 24, 637, 182 3, 504, 885 28, 142, 067
Equipmentand Vehicles 2, 450, 664 561, 145 18, 771) 2, 993, 038 Ir rastructure 68, 195, 343 4, 229, 853 72, 425, 196
Right- to-useLeasedAssets 34, 477 47, 316 81, 793
Total accumulated deprecia6on/ amortization 99, 077, 529 8, 985, 289 18, 771) 108, 044, 047 Net capital assets being depreciated/ amortization 192, 479, 243 20, 95Q130 8, 437, 636 221, 867, 009 Governmental Activities Capital Assets, Net 221, 982, 936 $ 31, 496, 210 a a 253, 479, 146 Balance Balance
Business- type AcitiNes July 1, 2021 Additions Retirements Transfers June 30, 2022 Capital assets not being depreciated:

Land 3, 565, 179 $ 3, 565, 179
Constructionin Progress 6, 189, 191 5, 955, 289 1, 509, 242) 10, 635, 238 Total capital assets not being depreciated 9, 754, 370 5, 955, 289 1, 509, 242) 14,200,417 Capital assets being depreciated:

Buildings 3,072 3, 072
Improeements 229, 599, 657 4, 706, 352 1, 509, 242 235, 815, 251 Equipmentand Vehicles 1, 574, 339 68, 540 12, 514) 1, 630, 365 Net capital assets being depriciated 231, 177, 068 4, 774, 892 12, 514) 1, 509, 242 237, 448, 688 Less accumulated depreciabon:

Buildings 3, 028 14 3, 042
Impro ements 54, 942, 438 4, 812, 310 59, 754, 748
EquipmentandVehicles 999, 887 102, 420 12, 514 1, 089, 793 Total accumulated deprecia6on 55, 945,353 4, 914, 744 12, 514 60, 847, 583 Net capital assets being depreciated 175, 231, 715 139, 852) 1, 509,242 176, 601, 105 Business-type Activities Capital Assets, Net 184,986, 085 $ 5, 815, 437 $ 190, 801, 522 58 117

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
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:

Governmental Activities
General gov ernment 181, 386
Community dev elopment 201, 998
Public safety 155, 521
Public works 8, 384, 712
Culture and leisure 61, 672
Total Governmental Activities 8, 985, 289
Business- Type Activities
Water 1, 830,469
Sewer 3, 084, 277
Total Business- Type Activities 4, 914, 746
Note 5: Compensated Absences
The following is a summary of changes in the City's compensated absences for the fiscal year ended June 30, 2022:

Balance Balance Due within
June 30, 2021 Net Change June 30, 2022 one year
Governmental activities 1, 852, 659 $ 242, 315 $ 2, 094, 974 $ 314, 246 Business- type activities 68, 699 12, 838 81, 537 12, 230 Total 1, 921, 358 $ 255, 153 $ 2, 176, 511 $ 326, 476
59 118

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Loans Payable 8 Other Long- Term Debt
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 Loans Payable 8 Other Long- Term Debt
The City' s long-term debt activities for the year ended June 30, 2022, is as follows:

Balance Balance
Governmental Activities Long- Term Debt June 30, 2020 Retirements June 30, 2021 Current Portion Financing Agreement Obligation
2016 Financing Agreement

2. 55%, due 07/ 15/ 2029 3, 050, 000 $ 305, 000 $ 2, 745, 000 $ 315, 000 Total Governmental Activities 3, 050, 000 $ 305, 000 $ 2, 745, 000 $ 315, 000 Balance Balance
Business- type Activities Long- Term Debt June 30, 2020 Retirements June 30, 2021 Current Portion Capital Loan Obligation
2017 Bank Loan

2. 89°/ a, due 06/ 01/ 2032 8, 873, 968 $ 696, 032 $ 8, 177, 936 $ 716, 293 State RevoNing Fund Loan

2. 3086%, due 07/ 01/ 2032 6, 010, 445 456, 317 5,554, 128 466, 911 Compass Bank Loan

3. 50%, due 06/ 01/ 2029 3, 383, 840 373, 803 3, 010, 037 387, 001 TotalBusiness- typeActivities 18, 268, 253 $ 1, 526, 152 $ 16, 742, 101 $ 1, 570, 205 Debt Service Requirements
Future principal and interest payments on all Governmental and Business- type long- term debt were as follows at June 30, 2022:

Go ernmental Acfivities Business- Type Actiu6es
Direct Borrowings Direct Borrowings
Ciry Hall Loan 2017 Bank Loan Shate Rewiunq Fund Loan Compass Bank Loan For ihe Year
Ending June 30 Principal Interest Principal Interest Principal Interest Principal Interest 2023 $ 315, 000 $ 65, 981 $ 716, 293 $ 231, 167 $ 466, 911 $ 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 350, 000 32, 512 803, 412 144, 048 511, 811 85, 763 444, 102 44,898 2028- 2032 1, 090, 000 42, 076 4, 381, 795 355, 510 2, 779, 626 198, 111 934, 004 4Q600 2033 317, 807 6, 596
Total $ 2, 745, 000 $ 289, 107 $ 8, 177, 936 $ 1, 296, 672 $ 5, 554, 128 $ 73Q808 $ 3, 010, 037 $ 409, 567 Description of the City' s Loans Payable& Other Long- Term Debt 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 60 119

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Loans Payable 8 Other Long-Term Debt( Continued) 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 principa 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 hold 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 result, 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% 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.

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 defau t, the State can declare the City' s obligation immediately due and payable.
61 120

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 6: Loans Payable 8 Other Long- Term Debt( Continued) For the fiscal year 2022, net revenues of the Water Enterprise Fund amounted to 4, 172, 266 which represented coverage of 3. 90 over the $ 1, 069, 835 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, 2022 is as follows:

Mossdale Assessment District Refunding 2015 4, 890, 000 " Lathrop Financing Authority Special Tax Revenue Bonds
Mossdale Village Reassessment District No. 2013- 1) 2013 Series 8, 105, 000 Lathrop Financing Authority Special Tax Revenue Bonds
Community Facilities No. 2003- 1) 2013 Series A 5, 000, 000 Crossroad Assessment District Series 2015 8, 960, 000
Joint Wastewater Project CFD 2003- 2 4, 960, 000
Lathrop Sanitary Sew er Assessment District No. 1 520, 000 City Hall Refinancing 2, 745, 000
Community Facilities District No. 2018- 1 45, 640, 000 *" The Mossdale Assessment District Refunding 2015 bond issue refunded the Nbssdale Ilage 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 e inguish the Communities Facilities District No. 2006- 1.

Note 8: Leases
Lease agreements are summarized as follows:

Payment Payment Interest Total Lease Balance
Description Date Terms Amount Rate Liability June 30, 2022 SAN Store 11/ 27/ 2019 3 years $ 2, 028 0. 00% $ 73, 010 $ 10, 372 VMWare 1/ 21/ 2022 3
years 1, 469 0. 00% 52, 896 45, 551
BI. Serv er 1/ 21/ 2022 3 years 2, 362 0. 00% 85, 022 73, 212 Total Lease Agreements 129, 135
The SAN Storage was leased through Hewlett- Packard Financial Services by the Information Systems Department for use by all Departments, beginning in November 27, 2019 for a term of three years at a fixed interest rate of 0. 00%. This lease is not renewable and the City maintains the option to acquire the equipment for$ 1 at the end of the three year term.

The VMWare was leased through Hewlett- Packard Financial Services by the Information Systems Department for use by all Departments, beginning in January 21, 2022 for a term of three years at a fixed interest rate of 0. 00%. This lease is not renewable and the City maintains the option to acquire the equipment for$ 1 at the end of the three year term. 62 121

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 8: Leases ( Continued)
The Blade Server was leased through Hewlett- Packard Financial Services by the Information Systems Department for use by all Departments, beginning in January 21, 2022 for a term of three years at a fixed interest rate of 0. 00%. This lease is not renewable and the City maintains the option to acquire the equipment for$ 1 at the end of the three year term.

Annual requirements to amortize long- term obligations and related interest are as follows:

Year Ending
June 30 Principal Interest
2022 37, 177 $ -
2023 45, 972
2024 45, 986
129, 135 $ -
Note 9: Fund Balances
Detailed classifications of the City' s fund balances, as of June 30, 2022, are below:

Building Other
Developer Capifal Safely 8 De elopment Developer General CIP Go ernmenfal General Fund Projects Facilities Fee Inspection Engineering Deposits Projects Funds Total Nonspendables:

Items not in spendable form:

Advances to other funds 2, 405, 864 $ g g 2, 405, 864
Total Nonspendable 2, 405, 864 2, 405, 864
Restricted for:

Recyling projects 1, 131, 435 1, 131, 435
Capitalprojects 440, 611 55, 014, 879 9, 006, 076 35, 670, 193 100, 131, 759 Public safety 8, 991, 479 1, 064, 058 10, 055, 537
Tra c and Vansportation 112, 479 112, 479
Parks and recreation 1, 453, 378 1, 483, 378
Streets and roads contracts 8, 077, 126 1, 326, 643 9, 403, 769 Measure K 631, 633 631, 633
Total Restricted 440, 611 55, 014,879 8, 991, 479 8, 077, 126 9, 006, 076 41, 419, 819 122, 949, 990 CommRed to:

Con6ngency/ emergency 7, 045, 537 7,045, 537
Economic stability 1, 850, 000 1, 850, 000
Capital projects 10, 010, 189 10, 010, 189
Animalshetter 8, 000, 000 8, 000, 000
Landscapereserves 1, 130, 000 1, 130, 000
Re6rement stabilily 3, 500, 000 3, 500, 000
Water bonds 747, 725 747, 725
Capifal equipment 3, 324, 674 3, 324,674
Measure C essential cily senrices 5, 457, 147 5, 457, 147 Economc deeelopment 438, 896 438, 896
American Rescue Plan Act 3, 259, 738 3, 259, 738
Total Commited 44, 763, 906 44, 763,906
Unassigned:

Fund deficits 532, 273) 521, 256) ( 1, 053, 529)
Residual fund balance 5, 704, 542 5, 704, 542
TotalUnassigned 5, 704, 542 532, 273) 521, 256) 4, 651, 013 TotalFund Balances 52, 874, 312 $ 440, 611 $ 55, 014, 879 $ 8, 991, 479 $ 8, 077, 126 $ ( 532, 273) $ 9, 006, 076 $ 40, 898, 563 $ 174, 770, 773 63 122

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 9: Fund Balances ( Continued)
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, 2022, 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 will 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, 2022, the Exposure and Emergency Reserves amounted to$ 1, 761, 384. 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, 2022, that will be carried over to fiscal year 2022:

General Fund 6, 237, 688
Building Safety & Inspection Special Revenue Fund 644, 055 Development Engineering Special Revenue Fund 965, 125
Developer Deposits Special Revenue Fund 58, 644
General CIP Projects 7, 557, 205
Non- Major Funds 10, 880, 608
64 123

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: 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 Empioyee Pension Rate Plan. The City' s Miscellaneous Rate Plan is part of the public agency cost- sharing multiple- employer defined benefit pension pian ( 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 foflowing: 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.

The Plan' s provisions and benefits in effect at June 30, 2022, 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 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. 34% 8. 65°/a 7. 59% Required Unfunded Acturarial
Liabiliiy Contribution 463, 648 $ 20, 791 $ 10, 659
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 biiled 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 annual payment option.
65 124

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: Pension Plan ( Continued)
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, 2022, the City' s total contributions to the Plan were 1, 200, 271.
b. Pension Liabilities, Pension Expenses and Deferred Outflowsllnflows 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.

Note 9: Pension Plan ( Continued)
As of June 30, 2022, 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 2, 967, 660
Tota Net Position Liability 2, 967, 660
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. 0590%
Proportion - June 30, 2020 0. 0549%
Change - Increase ( Decrease) 0. 0041%
66 125

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: Pension Plan ( Continued)
For the year ended June 30, 2022, the City recognized pension expense of$ 959, 001. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred OutFlows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1, 200, 271 $ Differences between actual and e ected e erience 332, 791 Adjustments due to differences in proportions 452, 972
Difference in proportionate share of contributions 192, 631) Net difference projected and actual irnestrnent earnings 2, 583, 375) Total 1, 986, 034 $ ( 2, 776, 006)
1, 200, 271 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amoritization
2023 346, 889)
2024 409, 795)
2025 524, 884)
2026 708, 675)
Actuarial Assumptions — For the measurement period ended June 30, 2020, the total pension liability was determined by roiling forward the June 30, 2019 totai 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, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry- Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7. 15%
Inflation 2. 50%
Payroll Growth 3. 00°/a
Projected Salary Increase Varies by Entry Age and Sennce Irnestment Rate of Return 7. 15%'
Mortality Deri ed 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 mortality 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.
67 126

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: Pension Plan ( Continued)
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 pian 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.

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 calcuiated 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 aAllocation Years 1 - 10 b Years 11+ c°
Global Equity 50% 4. 80% 5. 98%
Fixed Income 28% 1. 00% 2. 62%
Inflation assets 0. 77% 1. 81%
Private Equity 8% 6. 30% 7. 23%
Real assets 13% 3. 75% 4. 93%
Liquidity 1% 0. 92%
Total 100%
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. 68 127

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 10: Pension Plan ( Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following presents the City' s proportionate share of the net pension liability for 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°/ a Decrease 6. 15°/ a
Net Pension Liability 7, 242, 897
Current Discount Rate 7. 15%
Net Pension Liability 2, 967, 660
1% Increase 8. 15%
Net Pension Liability 566, 617)
Pension Plan Fiduciary Net Position — Detailed information about the pension plan' s fiduciary net position is available in the separately issued CaIPERS financial reports.

Note 11: 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 elect 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, California 94229- 2709.
69 128

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Other Post- Employment Benefits( Continued)
Benefits Provided — The following is a summary of Plan benefits by employee group as of June 30, 2022:

Benefit Prior to Retiree's( or SurviNng Spouse' s) Benefit After Retiree' s( or Surviung Tier Hire Date Retirement Date Eligibility Eligibility for Medicare Spouse' s) Eligibility for Medicare Benefit accourding to preuous 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 co ered dependents, up to$ 1, 536 per month in 7/ t/ 2014 12/ 31/ 2014 of PERS senice 2018, increasing by$ 100 each calendar year until such time as it is equal to actiee employee per month in each City contribution.

Age 50 within 5 years pEMHCA Minimum Employer Contribution( MEC) 2 Before
After 12/ 31/ 2014
of PERS sereice PEMHCA Minimum Employer
7/ 1/ 2014 Age 55 within 5 years 100% o t e premium or retiree p us one up to Contribution( MEC)
of PERS service the monthly cap for active employees'
Age 50 within 5 years pEMHCA Minimum Employer Contribution( MEC) of PERS seruce
100% of the premium for reti ree and
After dependants, up to the following percantages of pEMHCA Minimum Employer 2 7- t- 2014
A y
Age 55 within 5 years the monthly cap for active employees* Contribution( MEC) of PERS service 5 years of service: 25%a
l0years 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, 2022, the City' s contributions to the Plan were 517, 163, which were comprised of contributions to the trust of$ 368, 885 and implicit subsidy payments of$ 148, 278.

Employees Covered by Benefit Terms — Membership in the plan consisted of the following at the measurement date of June 30, 2022:

Active Employees 83
Inactive employees or beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 109 Total 218
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, 2021. These are the following actuarial methods and assumptions:

Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost, le el percent of pay Actuarial Assumptions:

Discount Rate 6. 10%
Inflation 2. 50%
Payroll Growth 3. 00%
tmestment Rate of Return 6. 10%
Mortality Rate MacLeod Watts Scale 2022 applied generationally from 2015 Healthcare Trend Rate 4. 00%
70 129

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Other Post- Employment Benefits ( Continued)
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 49%
Fixed Income 23%
Treasury Inflation Protection Securities 20%
Real Estate In stment Trusts 5%
Commodities 3%
Total 100%
Change of Assumptions — For the measurement date of June 30, 2021, there were no changes in assumptions.

Discount Rate — The discount rate used to measure the total OPEB liability was 6. 10%.

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.
71 130

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Other Post- Employment Benefits ( Continued)
c. Changes in Net OPEB Liability
The changes in the total OPEB liability follows:

Increase( Decrease)
Net OPEB
Total OPEB Plan Fiduciary Liability/( Asset)
Liability( a) Net Position( b) ( c) _( a)-( b)
Balance at Measurement Date 6/ 30/ 2020 5, 648, 255 $ 4, 508, 902 $ 1, 139, 353 Changes Recognized for the Measurement Period:

Service Cost 254, 871 254, 871
Interest on the total OPEB liability 388, 811 388, 811
E ectedinvestrnentincome 45, 156) 1, 195, 508 1, 240, 664) Contributions from the employer 435, 828 435, 828)
Changes in benefit terms
Administrative e enses 1, 642) 1, 642
Other E enses( one time)
Benefit payments 370, 644) 370, 644)
Changes of assumptions 139, 746 139, 746
Plan e erience
I nvestment e erience
Net changes 367, 628 1, 259, 050 891, 422)
Balance at Measurement Date 6/ 30/ 2021 6, 015, 883 $ 5, 767, 952 $ 247, 931 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°/ a) or 1- percentage- point higher( 7. 80%) than the current discount rate:

Net OPEB Liability/(Asset)
Discount Rate Discount Rate Discount Rate
1% ( 5. 10%) 6. 10%) 1% ( 7. 10%)
862, 751 $ 247, 931 $ ( 278, 328)
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
365, 788) $ 247, 931 $ 979, 750
72 131

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 11: Other Post- Employment Benefits( Continued)
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, 2022, the City recognized OPEB expense of $ 554, 388. At June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer Contributions made subsequent to the measurement date 517, 163 $ Differences between actual and e ected e erience 307, 330) Changes in assumptions 142, 010 41, 417)
Net differences projected and actual earnings on plan investments 610, 349) Total 659, 173 $ ( 959, 096)
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, 2023. 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
2023 202, 310)
2024 196, 761)
2025 206, 329)
2026 212, 947)
2027 11, 906)
Thereafter 13, 167
Total 817, 086)
Note 12: 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.
73 132

CITY OF LATHROP

NOTES TO FINANCIAL STATEMENTS ( CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Note 12: Risk Management( Continued)
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 osses 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, 2022. 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 13: 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.
74 133

REQUIRED SUPPLEMENTARY INFORMATION
75 134

CITY OF LATHROP

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 2076 2017 2018
Miscellaneous Rate Plan
Rate Plan' s Proportion of the Net Pension Liability 0. 05770°/ o 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°/ o 83. 71% 93. 38°/ a The Pension Plan' s( PERF- C) Fiduciary Net Position as a Percentage of the Total Pension Liability 79. 82% 78. 40°/ a 74. 06% 73. 31% Notes to Schedule:

Benefit Chanqes: 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).

Chanpes of Assumptions: 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 eight years are shown.
76 135
2019 2020 2021 2022

0. 05269% 0. 05586% 0. 05897% 0. 05487%
5, 077, 307 $ 5, 723, 799 $ 6, 416, 539 $ 2, 967, 660
6, 004, 176 $ 6, 384, 728 $ 6, 808, 162 $ 7, 021, 189

84. 56°/a 89. 65% 94. 25% 42. 27%

75. 26% 75. 26% 75. 10°/ a 88. 29%
77 136

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, 2019
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
Gain' Lass Assum ion! Method
p y
Investment Pkn- investment Chan e Benefit Chan e Galden Handshake Amortizatiai Penad 36 years 30 Years 2Q Years 70 Years 5 Years Escalation Rate
Active Plans 2. 750% 2J50% 2. 750° 1p 2. 750° h 2] 50°h InactiuePlans 096 0% 0% 0°k 6°h
Ramp Up 5 5 5 0 0
P 5 5 5 0 0
Assets valuation method Market Value
Inflation 2. 50%
Salary Increases Varies by Entry age and Service
Payroll Growth 2. 75%
Investment rate of return 7. 15%, 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
78 137
2019 2020 2021 2022
766, 989 $ 917, 576 $ 1, 062, 215 $ 1, 200, 271
766, 989) 917, 576) 1, 062, 215) 1, 200, 271)
6, 384, 728 $ 6, 808, 162 $ 7, 021, 189 $ 8, 113, 507

12. 01% 13. 48% 15. 13% 14. 79%
79 138

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 2022
Total OPEB Liability
Service cost 228, 075 $ 231, 377 $ 238, 897 $ 247, 448 $ 254, 871 Interest on the total OPEB liability 366, 257 359, 416 378, 925 372, 499 388, 811 Differences between expected and actual experiences 430, 189) 134, 660) 94, 590 Changes in assumptions 42, 010 62,441)
Benefit payments 299, 940) 314, 423) 324, 785) 404, 342) 370, 644) Net change in total OPEB liability 93, 787) 276, 370 95, 936 215, 605 367, 628 Total OPEB liability- beginning 5, 154, 131 5, 060,344 5, 336, 714 5,432,650 5, 648, 255 Total OPEB liability- ending( a) 5, 060,344 5, 336, 714 5, 432, 650 5, 648,255 6, 015,883 Plan Fiduciary Net Position
Contributions- employer 471, 077 495, 719 459, 510 486, 383 435, 828 Netinvestmentincome 307, 578 276, 193 230, 777 151, 173 308, 766 Benefit payments 299, 940) 314, 423) 324, 785) 404, 342) 370, 644) Other expense 4, 582) 886, 742
Administrative expense 1, 576) 1, 813) 825) 2, 094) 1, 642) Net change in plan fiduciary net position 477, 139 451, 094 364, 677 231, 120 1, 259,050 Plan fiduciary net position- beginning 2, 984,872 3, 462,011 3, 973, 105 4, 277, 782 4, 508, 902 Plan fiduciary net position- ending( b) 3, 462, 011 3, 913, 105 4, 277, 782 4, 508,902 5, 767,952 Net OPEB Liability- ending( a)- b) 1, 598, 333 $ 1, 423, 609 S 1, 154,868 $ 1, 139, 353 3 247, 931 Plan fiduciary net position as a percentage of the total OPEB liability 68. 41% 73. 32% 78. 74°/ 79. 83% 95. 88% Covered- employee payroll 5, 982, 337 $ 6, 377, 387 $ 6, 358, 722 $ 6, 549, 484 $ 7, 838, 544 Net OPEB liability as a percentage of covered-employee payroll 26. 72% 22. 32% 18. 16% 17. 40% 3. 16% 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. 0 139

CITY OF LATHROP

SCHEDULE OF OPEB CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS( 1)
2018 2019 2020 2021 2022
Actuarially Determined Contribution 389, 509 $ 359, 460 $ 369, 969 $ 361, 138 $ 368, 885 Contribution in Relation to the Aduarially Determined Contributions 495, 719) 459, 510) 396, 085) 435, 828) 517, 163) ContributionDeficiency( Excess) 106, 210) $ ( 100, 050) $ ( 26, 116) $ ( 74, 690) $ ( 148, 278) Covered- employee payroll 6, 377, 387 $ 6, 358, 722 $ 6, 549, 484 $ 7, 838, 544 $ 9, 931, 244 Contributions as a
percentage of covered- employee payroll 7. 77% 7. 23% 6. 05% 5. 56% 5. 21°/ 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 2022 were from the June 30, 2021 actuarial Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market value
Discount rate 6. 70%
Inflation 2. 50%
Salary increases 3. 00% annually
Mortality Rate* Derived using CaIPERS' membership
Pre-Retirement Turnover'* Derived using CaIPERS' membership 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. 81 140

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GENERALFUND
YEAR ENDED JUNE 30, 2022
Variance with
Final eudget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 17, 230, 000 $ 22, 305, 922 $ 31, 794, 406 $ 9,488, 484 Licenses and permits 243, 820 243, 820 330, 991 87, 171 Intergovernmental 2, 020, 000 2, 079, 890 5, 813, 592 3, 733, 702 Charges for services 673, 308 673, 308 711, 444 38, 136 Use of money and property 232, 457 232, 457 2, 534, 483) 2, 766, 940) Fines and forFeitures 120, 000 120, 000 99, 871 20, 129) Miscellaneous 345, 875 929, 464 804, 209 125,255)
Total Revenues 20, 865, 460 26, 584, 861 37, 020, 030 10, 435, 169 Expenditures
Current:

General Government
City council 64, 340 97, 340 66, 405 30,935
City manager 929,708 1, 039, 165 850, 778 188, 387
City clerk 356, 202 366, 609 343, 495 23, 114
City attorney 766, 453 766, 453 712, 281 54, 172
Personnel 476, 477 476, 477 350, 441 126, 036
Central services 1, 025, 550 1, 025, 550 768, 606 256, 944 Finance 1, 780, 847 2, 231, 047 1, 766, 512 464, 535
Information technology 2, 085, 873 2, 349, 212 2, 266, 390 82, 822 Total General Government 7, 485, 450 8, 351, 853 7, 124, 908 1, 226,945 Public Safety
Administration 9, 174, 666 11, 575, 545 7, 056, 082 4, 519, 463 Community Services 737, 138 73, 400 66, 317 7, 083
Total Public Safety 9, 911, 804 11, 648, 945 7, 122, 399 4, 526, 546 Community Development
Planning 961, 290 2, 990, 148 1, 687, 299 1, 302, 849
Total Community Development 961, 290 2, 990, 148 1, 687, 299 1, 302, 849 Culture and Leisure
Administration 233, 154 775, 841 489, 566 286, 275
Senior center 165, 373 437, 833 339, 979 97, 854
Recreation programs 80, 833 104, 333 95, 826 8, 507
Special events 131, 582 138, 582 133, 031 5, 551
Day camp kid' s club 542, 258 529, 258 418, 671 110, 587 Youth and adult sports 218, 987 211, 987 130, 996 80, 991 Facilities and library 1, 152, 219 107, 925 47, 763 60, 162 Total Culture and Leisure 2, 524, 406 2, 305, 759 1, 655, 832 649, 927 See Notes to Required Supplementary Information. 82
141

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Public works
Administration 757, 474 862, 869 698, 742 164, 127
Utility engineering 263, 745 276,655 250, 329 26, 326
Total Public Works 1, 021, 219 1, 139, 524 949,071 190, 453 Capital outlay 408, 420) 1, 059, 223 1, 636, 478 577, 255) Debt service:

Principal 305, 000 305, 000 305, 000
Lease principal 47, 316 47, 316)
Interest 74, 000 74, 000 73, 886 114
Total Debt Service 379, 000 379, 000 426, 202 47, 202)
Total Expenditures 21, 874, 749 27, 874, 452 20, 602, 189 7, 272, 263 Other Financing Sources( Uses):

Transfers in 6, 310, 070 6, 310, 070 6, 102, 401 207, 669) Transfers out 6, 217, 245) ( 9,410, 897) 9, 410, 896) 1 Lease proceeds 137, 918 137, 918)
Total Other Financing Sources( Uses) 92, 825 ( 3, 100, 827) 3, 170, 577) 345, 586) Net Change in Fund Balances 916, 464) ( 4, 390, 418) 13,247, 264 2, 817, 320 Fund Balances, Beginning of Year, as restated 39, 627, 048 39, 627, 048 39,627,048 Fund Balances, End of Year 38, 710, 584 $ 35, 236, 630 $ 52,874, 312 $ 2, 817, 320 See Notes to Required Supplementary Information. 83
142

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

DEVELOPER PROJECTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 23,538 $ 23, 538
Developer participation 2,276, 343 12, 416, 084 9, 535, 249 2, 880, 535) Total Revenues 2, 276, 343 12, 416, 084 9, 558, 787 2, 857, 297) Other Financing Sources( Uses):

Transfers out 2,277,983) ( 12, 417,724) ( 10, 150, 279) 2, 267, 445 Total Other Financing Sources( Uses) 2, 277, 983) ( 12, 417, 724) ( 10, 150, 279) 2, 267, 445 Net Change in Fund Balances 1, 640) 1, 640) 591, 492) 589, 852) Fund Balances, Beginning ofYear 1, 032, 103 1, 032, 103 1, 032, 103 Fund Balances, End of Year 1, 030, 463 $ 7, 030, 463 $ 440, 611 $ ( 589, 852) See Notes to Required Supplementary Information. 84
143

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

CAPITAL FACILITY FEES
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 28, 389, 170 $ 28,389, 170 $ 21, 211, 818 $ ( 7, 177, 352) Use of money and property 162, 902 162, 902
Total Revenues 28, 389, 170 28, 389, 170 21, 374, 720 7, 014, 450) Expenditures
Current:

Public works 243, 763 243, 763 243, 763
Total Expenditures 243, 763 243, 763 243, 763
Other Financing Sources( Uses)
Transfers out 5,434,580) 7, 608, 980) 7, 608, 980)
Total Other Financing Sources( Uses) 5,434, 580) 7, 608, 980) 7, 608, 980) Net Change in Fund Balances 22, 710, 827 20, 536, 427 13, 521, 977 7, 014, 450) Fund Balances, Beginning of Year 41, 492, 902 41, 492, 902 41, 492, 902 Fund Balances, End of Year 64, 203, 729 $ 62, 029, 329 $ 55, 014,879 $ ( 7, 014, 450) See Notes to Required Supplementary Informatio. 85
144

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

BUILDING SAFETY& INSPECTION
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Licenses and permits 2, 314, 342 $ 2, 314,342 $ 2, 314, 342) Charges for services 863,059 863, 059 7, 466, 065 6, 603, 006 Use of money and property 37, 419 37, 419
Miscellaneous 14, 221 14,221
Total Revenues 3, 177, 401 3, 177,401 7, 517,705 4, 340, 304 Expenditures
Current:

Public works 2, 287, 030 3, 069, 258 2, 369, 205 700,053 Total Expenditures 2, 287, 030 3, 069, 258 2, 369, 205 700,053 Other Financing( Uses)
Transfers out 404, 270) 404, 270) 404, 270)
Total Other Financing( Uses) 404, 270) 404,270) 404, 270) Net Change in Fund Balances 486, 101 296, 127) 4, 744, 230 5, 040, 357 Fund Balances, Beginning of Year 4, 247, 249 4, 247, 249 4, 247, 249 Fund Balances, End of Year 4, 733, 350 $ 3, 951, 122 $ 8, 991, 479 $ 5, 040, 357 See Notes to Required Supplementary Information. gg
145

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

DEVELOPMENT ENGINEERING
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Chargesforservices 1, 325, 104 $ 1, 485, 174 $ 5, 681, 724 $ 4, 196, 550 Use of money and property 32, 257 32, 257
Miscellaneous 102, 475 102, 475
Total Revenues 1, 325, 104 1, 485, 174 5, 816, 456 4, 331, 282 Expenditures
Current:

Publicworks 2, 422, 842 4, 512, 432 2, 329, 580 2, 182, 852 Total Expenditures 2, 425, 842 4,515, 432 2, 330, 662 2, 184,770 Net Change in Fund Balances 1, 100, 738) 3, 030,258) 3, 485, 794 6, 516, 052 Fund Balances, Beginning ofYear 4, 591, 332 4, 591, 332 4, 591, 332 Fund Balances, End of Year 3, 490,594 $ 1, 561, 074 $ 8, 077, 126 $ 6, 516, 052 See Notes to Required Supplementary Information. 87
146

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

DEVELOPER DEPOSITS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 33, 500 $ 33, 500 $ 6, 204 $ 27, 296) Developerparticipation 1, 044, 916 1, 284, 902 1, 086, 202 198, 700) Total Revenues 1, 078,416 1, 318, 402 1, 092,406 225, 996) Expenditures
Current:

Publicworks 918,416 1, 204, 542 861, 155 343, 387
Debt service:

Interest and fiscal charges 160, 000 160, 000 159, 854 146 Total Expenditures 1, 078,416 1, 364, 542 1, 021, 009 343, 533 Net Change in Fund Balances 46, 140) 71, 397 117, 537
Fund Balances( Deficits), Beginning of Year 603, 670) 603, 670) 603, 670) Fund Balances( Deficits), End of Year 603, 670) $ ( 649, 810) $ ( 532, 273) $ 117,537 See Notes to Required Supplementary Information. g
147

CITY OF LATHROP

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
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 31, 192, 901 in revenues and $ 52, 333, 139 in expenditures.

Adopted Budgets
For the fiscal year ending June 30, 2022, 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. 89 148

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90 149

SUPPLEMENTALINFORMATION
91 150

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92 151

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. 93 152

CITY OF LATHROP

GENERALFUND

COMBINING BALANCE SHEET
JUNE 30, 2022
General Economic
Purpose Fund Development Measure C Totals
Assets:

Cash and investments 45, 319, 873 $ 438, 663 $ 3, 466, 770 $ 49, 225, 306 Receivables:

Accounts 2, 853, 657 233 2, 173, 690 5, 027, 580
Accrued interest 23, 712 2, 370 26, 082
Due from other funds 28, 058 28, 058
Advances to other funds 2, 405, 864 2, 405, 864
Total Assets 50, 631, 164 $ 438, 896 $ 5, 642, 830 $ 56, 712, 890 Liabilities and Fund Balances
Liabilities:

Accounts payable 1, 516, 020 $ 185, 683 $ 1, 701, 703
Accrued liabilities 795,214 795, 214
Unearned revenues 709, 697 709, 697
Deposits payable 631, 964 631, 964
Total Liabilities 3, 652, 895 185, 683 3, 838, 578
Fund Balances:

Nonspendable 2, 405, 864 2, 405, 864
Committed 38, 867, 863 438, 896 5, 457, 147 44, 763, 906 Unassigned 5, 704, 542 5, 704, 542
Total Fund Balances 46, 978, 269 438, 896 5,457, 147 52, 874, 312 Total Liabilities and Fund Balances $ 50, 631, 164 $ 438, 896 $ 5, 642, 830 $ 56, 712, 890 94 153

CITY OF LATHROP

GENERALFUND

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
General Purpose Economic
Fund Deveiopment Measure C Totals
Revenues:

Taxes and assessments 20, 918, 484 $ 10, 875, 922 $ 31, 794, 406 Licenses and permits 330, 991 330, 991
Intergovernmental 5, 813, 592 5, 813, 592
Charges for services 711, 444 711, 444
Use of money and property 2, 549, 445) 1, 446 13, 516 2, 534, 483) Fines and forfeitures 99, 871 99, 871
Miscellaneous 804, 209 804, 209
Total Revenues 26, 129, 146 1, 446 10, 889, 438 37, 020, 030 Expenditures:

Current:

General government 7, 124, 908 7, 124, 908
Public safety 5, 191, 407 1, 930, 992 7, 122, 399
Community development 1, 687, 299 1, 687,299
Culture and leisure 1, 655, 832 1, 655, 832
Public works 949, 071 949, 071
Capital outlay 1, 563, 462 73, 016 1, 636, 478
Debt service:

Principal retirement 305, 000 305, 000
Lease principal retirement 47, 316 47, 316
Interest and fiscal charges 73, 886 73, 886
Total Expenditures 78, 598, 181 2, 004, 008 20, 602, 189 Excess( Deficiency) of Revenues
Over( Under) Expenditures 7, 530, 965 1, 446 8, 885, 430 16, 417, 841 Other Financing Sources( Uses):

Transfers in 6, 102, 401 6, 102, 401
Transfers out 3, 232, 765) 6, 178, 131
Lease proceeds 137, g g
9 g, g9g
Total Other Financing Sources
Uses) 3, 007, 554 6, 178, 131) 3, 170, 577)
Net Change in Fund Balances 10, 538, 519 1, 446 2, 707, 299 13, 247, 264 Fund Balances, Beginning of Year 36, 439, 750 437,450 2, 749, 848 39, 627, 048 Fund Balances, End of Year 46,978, 269 $ 438, 896 $ 5, 457, 147 $ 52, 874, 312 95 154

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GENERAL PURPOSE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 11, 230,000 $ 11, 430,000 $ 20,918, 484 $ 9, 488, 484 Licenses and permits 243, 820 243, 820 330, 991 87, 171 Intergovernmental 2, 020, 000 2, 079, 890 5, 813, 592 3,733, 702 Charges for services 673,308 673, 308 711, 444 38, 136
Use of money and property 232, 457 232, 457 2, 549, 445) 2, 781, 902) Fines and forfeitures 120, 000 120, 000 99, 871 20, 129) Miscellaneous 345, 875 929, 464 804, 209 125, 255)
Total Revenues 14, 865, 460 15, 708, 939 26, 129,146 10,420, 207 Expenditures
Current:

General Government
City council 64, 340 97, 340 66, 405 30, 935
City manager 929, 708 1, 039, 165 850, 778 188, 387
City clerk 356, 202 366, 609 343, 495 23, 114
City attorney 766, 453 766, 453 712, 281 54, 172
Personnel 476, 477 476, 477 350, 441 126, 036
Central services 1, 025, 550 1, 025, 550 768, 606 256,944 Finance 1, 780, 847 2, 231, 047 1, 766, 512 464, 535
Information technology 2, 085, 873 2, 349, 212 2, 266, 390 82, 822 Total General Government 7, 485, 450 8, 351, 853 7, 124, 908 1, 226, 945 Public Safety
Administration 6, 635, 206 8, 782, 184 5, 125, 090 3, 657, 094 Community services 737, 138 73, 400 66, 317 7, 083
Total Public Safety 7, 372, 344 8, 855, 584 5, 191, 407 3, 664, 177 Community Development
Planning 961, 290 2, 990, 148 1, 687, 299 1, 302, 849
Total Community Development 961, 290 2, 990, 148 1, 687, 299 1, 302, 849 Culture and Leisure
Administration 233, 154 775, 841 489, 566 286, 275
Senior center 165, 373 437, 833 339, 979 97,854
Recreation programs 80, 833 104, 333 95, 826 8, 507
Special events 131, 582 138, 582 133, 031 5, 551
Day camp kid' s club 542, 258 529, 258 418, 671 110, 587 Youth and adult sports 218, 987 211, 987 130, 996 80, 991 Facilities and library 1, 152, 219 107, 925 47, 763 60, 162 Total Culture and Leisure 2, 524, 406 2, 305, 759 1, 655, 832 649, 927 96 155

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GENERAL PURPOSE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Public works
Administration 757, 474 862, 869 698, 742 164, 127
Utility engineering 263, 745 276, 655 250, 329 26, 326
Total Public Works 1, 021, 219 1, 139, 524 949, 071 190, 453 Capital outlay 408, 420) 859, 223 1, 563, 462 704, 239) Debt service:

Principal 305, 000 305, 000 305, 000
Interest 74, 000 74, 000 73, 886 114
Lease principal 47, 316 47, 316)
Total Debt Service 379, 000 379, 000 426, 202 47, 202)
Total Expenditures 19, 335, 289 24, 881, 091 18, 598, 181 6, 282, 910 Other Financing Sources( Uses):

Transfers in 6, 310, 070 6, 310, 070 6, 102, 401 207, 669) Transfers out 934, 765) ( 3, 232, 765) 3, 232, 765)
Lease proceeds 137, 918 137, 918
Total Other Financing Sources( Uses) 5, 375, 305 3, 077, 305 3, 007, 554 69,751) Net Change in Fund Balances 905, 476 ( 6, 094, 847) 10, 538, 519 4, 067, 546 Fund Balances, Beginning of Year, as restated 36, 439, 750 36,439, 750 36, 439, 750 Fund Balances, End of Year 37, 345, 226 $ 30, 344, 903 $ 46, 978, 269 $ 4,067, 546 97 156

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

MEASURE C
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 6, 000, 000 $ 10, 875, 922 $ 10,875,922 $ Use of money and property 13, 516 13, 516
Total Revenues 6, 000, 000 10, 875, 922 10, 889,438 13, 516 Expenditures
Current:

General Government
Public Safety
Administration 2, 539, 460 2, 793, 361 1, 930, 992 862, 369 Total Public Safety 2, 539, 460 2, 793, 361 1, 930, 992 862, 369 Capital outlay 200, 000 73,016 126, 984
Total Expenditures 2, 539, 460 2, 993, 361 2, 004, 008 989, 353 Other Financing Sources( Uses):

Transfers out 5, 282, 480) ( 6, 178, 132) 6, 178, 131) 1 Total Other Financing Sources( Uses) 5, 282, 480) ( 6, 178, 132) 6, 178, 131) 1 Net Change in Fund Balances 1, 821, 940) 1, 704, 429 2, 707, 299 975, 836) Fund Balances, Beginning of Year 2, 749, 848 2, 749, 848 2,749,848 Fund Balances, End of Year 927, 908 $ 4, 454, 277 $ 5, 457, 147 $ ( 975,836) 98 157

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. 99 158
NON - MAJOR GOVERNMENTAL FUNDS ( Continued)

STORM DRAIN FUND
To account for revenues and expenditures re ated 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.

AB939 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 A6939.

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.
100
159
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. 101
160

NON - MAJOR GOVERNMENTAL FUNDS
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.
102
161

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103
162

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street
Assets:

Pooled cash and investments 1, 367, 664 $ 441, 501 $ 108,885 $ 836, 090 Receivables:

Accounts 108, 100 3,537 334
Notes and loans
Accrued interest 669 473 57 477
Total Assets 1, 368, 333 $ 550, 074 $ 112, 479 $ 836, 901 Liabilities and Fund Balances
Liabilities:

Accounts payable 275, 287 $ 54, 769
Deposits payable
Due to other funds
Total Liabilities 275, 287 54, 769
Fund Balances:

Restricted 1, 093, 046 550, 074 112, 479 782, 132
Unassigned
Total Fund Balances 1, 093, 046 550, 074 112, 479 782, 132 Total Liabilities and Fund Balances 1, 368, 333 $ 550, 074 $ 112, 479 $ 836, 901 104
163

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNOS
JUNE 30, 2022 CONTINUED)
Speciai Revenue Funds
Public Streets and
Nuisance Measure K Transit LTF Roads
Assets:

Pooled cash and investments 10, 301 $ 463, 338 $ 146, 382 Receivables:

Accounts 2, 019 168, 081 201, 577 1, 180, 161
Notes and loans
Accrued interest 5 214 100
TotalAssets 72, 325 $ 631, 633 $ 201, 577 $ 1, 326, 643 Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits payable
Due to other funds
Total Liabilities
Fund Balances:

Restricted 12, 325 631, 633 201, 577 1, 326, 643
Unassigned
Total Fund Balances 12, 325 631, 633 201, 577 1, 326, 643 Total Liabilities and Fund Balances 12, 325 $ 631, 633 $ 201, 577 $ 1, 326, 643 105
164

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Historic
Lathrop Loan
Federal Grant Program( HLLP) Storm Drain Street Light
Assets:

Pooled cash and investments 893, 990 $ 232, 063 $ 353, 749 $ 1, 630, 225 Receivables:

Accounts 60, 931 16, 243
Notes and loans 20,350
Accrued interest 124 188 893
Total Assets 954, 921 $ 252, 537 $ 353, 937 $ 1, 647, 361 Liabilities and Fund Balances
Liabilities:

Accounts payable 893, 990 $ 21, 924 $ 84, 569
Deposits payable
Due to other funds
Total Liabilities 893, 990 21, 924 84,569
Fund Balances:

Restricted 60, 931 252, 537 332, 013 1, 562, 792
Unassigned
Total Fund Balances 60, 931 252, 537 332, 013 1, 562, 792 Total Liabilities and Fund Balances 954, 921 $ 252, 537 $ 353, 937 $ 1, 647, 361 106
165

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022 CONTINUED)
Special Revenue Funds
Community
AB939 Development Scholarship
Recycling Block Grant Fund COPS
Assets:

Pooled cash and investments 1, 110, 949 $ 2, 178 $ 19, 190 $ 301, 587 Receivables:

Accounts 22, 191 2, 543
Notes and loans
Accrued interest 567 1 10
Total Assets 1, 133, 707 $ 2, 179 $ 21, 743 $ 301, 587
Liabilities and Fund Balances
Liabilities:

Accounts payable 2, 272 $ 5,000 $ 4, 192
Deposits payable
Due to other funds
Total Liabilities 2, 272 5, 000 4, 192
Fund Balances:

Restricted 1, 131, 435 21, 743 297,395
Unassigned 2, 821)
Totai Fund Balances 1, 131, 435 2, 821) 21, 743 297,395 Total Liabilities and Fund Balances 1, 133, 707 $ 2, 179 $ 21, 743 $ 301, 587 107
166

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Office of Traffic RTIF San RTIF Lathrop
and Safety Joaquin County Local West RTIF SJCOG
Assets:

Pooled cash and investments 276, 979 $ 11, 427, 050 $ 415, 540 Receivables:

Accounts
Notes and loans
Accrued interest 107 5, 776 160
Total Assets 277, 086 $ 11, 432, 826 $ 415,700
Liabilities and Fund Balances
Liabilities:

Accounts payable 277, 086 $ 2, 716 $ 415, 700
Deposits payable
Due to other funds
Total Liabilities 277, 086 2, 716 415, 700
Fund Balances:

Restricted 11, 430, 110
Unassigned
Total Fund Balances 11, 430, 110
Total Liabilities and Fund Balances 277,086 $ 11, 432, 826 $ 475, 700 108
167

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022 CONTINUED)
Special Revenue Funds
Central Lathrop
Specific Plan
RTIF Lathrop ( CLSP) Services LMFD Measure
Local East CFD C State Grants
Assets:

Pooled cash and investments 2, 616, 618 $ 1, 175, 042 $ Receivables:

Accounts 28, 058
Notes and loans
Accrued interest 1, 390 108
Total Assets 2, 618, 008 $ 1, 175, 150 $ 28,058
Liabilities and Fund Balances
Liabilities:

Accounts payable
Deposits payable
Due to other funds 28, 058
Total Liabilities 28, 058
Fund Balances:

Restricted 2, 618, 008 1, 175, 150
Unassigned
Total Fund Balances 2, 618, 008 1, 175, 150
Total Liabilities and Fund Balances 2, 618, 008 $ 1, 175, 150 $ 28,058 109
168

CITY OF LATHROP

COMBINWG BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
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, 431 $ 2, 081, 640 $ 119, 770 $ 13, 937 Receivables:

Accounts
Notes and loans
Accrued interest 6 1, 067 519
Total Assets 11, 437 $ 2, 082, 707 $ 120, 289 $ 13, 937 Liabilities and Fund Balances
Liabilities:

Accounts payable g
Deposits payable 12, 855
Due to other funds
Total Liabilities 12, 863
Fund Balances:

Restricted 11, 437 2, 082, 707 120, 289 1, 074
Unassigned
Total Fund Balances 11, 437 2, 082, 707 120, 289 1, 074 Total Liabilities and Fund Balances 11, 437 $ 2, 082, 707 $ 120, 289 $ 13, 937 110
169

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022 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 317, 509 $ 3 $ 124, 555 $ 1, 164, 067 Receivables:

Accounts 62,995
Notes and loans
Accrued interest 156 62 588
Total Assets 317, 665 $ 62, 998 $ 124, 617 $ 1, 164, 655 Liabilities and Fund Balances
Liabilities:

Accounts payable 317, 665 $ 581, 433 $ 164 $ 15, 367
Deposits payable
Due to other funds
Total Liabilities 317, 665 581, 433 164 15,367
Fund Balances:

Restricted 124, 453 1, 149, 288
Unassigned 518,435)
Total Fund Balances 518, 435) 124, 453 1, 149, 288
Total Liabilities and Fund Balances 317, 665 $ 62, 998 $ 124, 617 $ 1, 164, 655 111
170

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Stewart
Central Lathrop Economic Dev Gateway
CFD 2019- 2 Fee 80% TOT Trust Business Park
Assets:

Pooled cash and investments 246, 277 $ 182, 188 $ 1, 213, 533 $ 51, 843 Receivables:

Accounts 11, 585 13, 041
Notes and loans
Accrued interest 114 85 637 21
Total Assets 257, 976 $ 182, 273 $ 1, 227, 211 $ 51, 864 Liabilities and Fund Balances
Liabilities:

Accounts payable 27,366 $ 25
Deposits payable 176, 000
Due to other funds
Total Liabilities 27, 366 176, 000 25
Fund Balances:

Restricted 230, 610 6, 273 1, 227, 211 51, 839
Unassigned
Total Fund Balances 230, 610 6, 273 1, 227, 211 51, 839 Total Liabilities and Fund Balances 257, 976 $ 182, 273 $ 1, 227, 211 $ 51, 864 112
171

CITY OF LATHROP

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Capital Projects
Funds Capital Project Funds
Streets and
Total
Governmental
Roads Storm Drain Park in Lieu Funds
Assets:

Pooled cash and investments 12, 051, 906 $ 640, 828 $ 1, 147, 627 $ 43, 196, 435 Receivables:

Accounts 51 1, 881, 447
Notes and loans 20, 350
Accrued interest 6, 879 340 540 22, 333
Total Assets 12, 058, 836 $ 641, 168 $ 1, 148, 167 $ 45, 120, 565 Liabilities and Fund Balances
Liabilities:

Accounts payable 1, 025, 556 $ 4,005, 089
Deposits payable 188, 855
Due to other funds 28, 058
Total Liabilities 1, 025, 556 4, 222, 002
Fund Balances:

Restricted 11, 033, 280 641, 168 1, 148, 167 41, 419, 819 Unassigned 521, 256)
Total Fund Balances 11, 033, 280 641, 168 1, 148, 167 40, 898, 563 Total Liabilities and Fund Balances 12, 058, 836 $ 641, 168 $ 1, 148, 167 $ 45, 120, 565 113
172

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street
Revenues:

Taxes and assessments 2,888, 936 $
Licenses and permits
Intergovernmental 1, 249, 587
Use of money and property 9, 335 2, 939 333 2, 143
Fines and forfeitures 39, 240
Miscellaneous 54, 681
Total Revenues 2, 898, 271 1, 252, 526 39, 573 56, 824
Expenditures:

Current:

General government
Public safety 9, 596
Community development
Culture and leisure 1, 077, 118
Public works 2, 175, 466
Capital outlay 75, 758
Total Expenditures 2, 251, 224 9, 596 1, 077, 118
Excess( Deficiency) of Revenues
Over( Under) Expenditures 647, 047 1, 252, 526 29, 977 1, 020, 294) Other Financing Sources( Uses):

Transfers in 48, 014 1, 521, 851
Transfers out 335, 440) 1, 333, 970) 2, 440) 169, 220)
Total Other Financing Sources
Uses) 287, 426) 1, 333, 970) 2, 440) 1, 352, 631
Net Change in Fund Balances 359, 621 81, 444) 27, 537 332, 337 Fund Balances, Beginning of Year 733, 425 631, 518 84, 942 449, 795 Fund Balances, End of Year 1, 093, 046 $ 550, 074 $ 112, 479 $ 782, 132 114
173

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022 CONTINUED)
Special Revenue Funds
Streets and
Public Nuisance Measure K Transit LTF Roads
Revenues:

Taxes and assessments g
Licenses and permits
Intergovernmental 720, 588 201, 577 1, 180, 161
Use of money and property 32 1, 647 600
Fines and forfeitures
Miscellaneous
Total Revenues 32 722, 235 201, 577 1, 180, 761
Expenditures:

Current:

General government
Public safety
Community development
Culture and leisure
Public works
Capital outlay
Total Expenditures
Excess( Deficiency) of Revenues
Over( Under) Expenditures 32 722, 235 201, 577 1, 180, 761 Other Financing Sources( Uses):

Transfers in
Transfers out 717, 616) 41, 289)
Total Other Financing Sources
Uses) 717, 616) 41, 289)
Net Change in Fund Balances 32 4, 619 201, 577 1, 139, 472 Fund Balances, Beginning ofYear 12, 293 627, 014 187, 171 Fund Balances, End of Year 12, 325 $ 631, 633 $ 201, 577 $ 1, 326, 643 115
174

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Historic Lathrop
Loan Program
Federal Grant HLLP) Storm Drain Street Light
Revenues:

Taxes and assessments
Licenses and permits
Intergovernmental 695, 355
Use of money and property 766 1, 058 5, 134
Fines and forfeitures 352, 535 1, 096, 970
Miscellaneous 3, 365 34, 059
Total Revenues 695, 355 766 356, 958 1, 136, 163
Expenditures:

Current:

General government
Public safety 150, 935
Community development
Culture and leisure 595, 415
Public works 346, 388 876,985
Capital outlay
Total Expenditures 595, 415 346, 388 1, 027, 920
Excess( Deficiency) of Revenues
Over( Under) Expenditures 99, 940 766 10, 570 108, 243
Other Financing Sources( Uses):

Transfers in 50, 000 31, 900
Transfers out 371, 426) 67, 090) 139, 590)
Total Other Financing Sources
Uses) 371, 426) 17, 090) 107, 690)
Net Change in Fund Balances 271, 486) 766 6, 520) 553
Fund Balances, Beginning of Year 332, 417 251, 771 338, 533 1, 562, 239 Fund Balances, End of Year 60, 931 $ 252, 537 $ 332, 013 $ 1, 562,792 116
175

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022 CONTINUED)
Special Revenue Funds
Community
A6939 Development Scholarship
Recycling Block Grant Fund COPS
Revenues:

Taxes and assessments 219, 744 $
Licenses and permits 55, 475
Intergovernmental 7, 390 27, 434 5, 766 161, 285
Use of money and property 3, 369 17 60 849
Fines and forfeitures
Miscellaneous 3, 699
Total Revenues 285, 978 27, 451 9, 525 162, 734
Expenditures:

Current:

General government
Public safety gg 722
Community development 34, 504
Culture and leisure 77, 108
Public works
Capital outlay
Total Expenditures 77, 108 34, 504 98, 722
Excess( Deficiency) of Revenues
Over( Under) Expenditures 208, 870 7, 053) 9, 525 63, 412 Other Financing Sources( Uses):

Transfers in
Transfers out 14, 560) 2, 306)
Total Other Financing Sources
Uses) 14, 560) 2, 306)
Net Change in Fund Balances 194, 310 7, 053) 7, 219 63, 412 Fund Balances, Beginning of Year 937, 125 4, 232 14, 524 233, 983 Fund Balances, End of Year 1, 131, 435 $ 2,827) $ 27, 743 $ 297, 395 117
176

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Office of Traffic RTIF San RTIF Lathrop
and Safety Joaquin County Local West RTIF SJCOG
Revenues:

Taxes and assessments 498, 404 $ 3, 345, 663 $ 747, 701 Licenses and permits
Intergovernmental 3, 994
Use of money and property 627 32, 971 947
Fines and forfeitures
Miscellaneous
Total Revenues 3, 994 499, 031 3, 378, 634 748, 648
Expenditures:

Current:

General government
Public safety 12, 002
Community development
Culture and leisure
Publicworks 499, 032 14, 127 748, 648
Capital outlay
Total Expenditures 12, 002 499, 032 14, 127 748, 648
Excess( Deficiency) of Revenues
Over( Under) Expenditures 8, 008) 1) 3,364,507
Other Financing Sources( Uses):

Transfers in
Transfers out
Total Other Financing Sources
Uses)
Net Change in Fund Balances 8, 008) 1) 3, 364, 507
Fund Balances, Beginning of Year 8, 008 1 8, 065,603
Fund Balances, End of Year 11, 430,110 $
118
177

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022 CONTINUED)
Special Revenue Funds
Central Lathrop
Specific Plan
RTIF Lathrop ( CLSP) Services LMFD Measure
Local East CFD C State Grants
Revenues:

Taxes and assessments 317,493 $
Licenses and permits
Intergovernmental 28, 058
Use of money and property 8, 295 642
Fines and forfeitures
Miscellaneous
Total Revenues 325, 788 642 28, 058
Expenditures:

Current:

General government
Public safety 4, 159, 199
Community development
Culture and leisure
Public works 3, 985
Capital outlay
Total Expenditures 3, 985 4, 159, 199
Excess( Deficiency) of Revenues
Over( Under) Expenditures 321, 803 4, 158, 557) 28, 058 Other Financing Sources( Uses):

Transfers in 4, 350, 369
Transfers out 56, 398)
Total Other Financing Sources
Uses) 4, 350, 369 56, 398)
Net Change in Fund Balances 321, 803 191, 812 28, 340)
Fund Balances, Beginning of Year 2, 296, 205 983, 338 28, 340 Fund Balances, End of Year 2, 618, 008 $ 1, 175, 150 $
119
178

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Citywide
North Lathrop Economic Dev River Islands Lathrop Land
Transportation Fee 20% CFD 2013- 1 Acquisitions
Revenues:

Taxes and assessments 604, 000 $ 673, 572 $
Licenses and permits
Intergovernmental
Use of money and property 37 6, 119 2, 217 46
Fines and forfeitures
Miscellaneous 299, 684
Total Revenues 37 610, 119 975, 473 46
Expenditures:

Current:

General government
Public safety
Community development
Culture and leisure
Publicworks 21, 381
Capital outlay
Total Expenditures 21, 381
Excess( Deficiency) of Revenues
Over( Under) Expenditures 37 610, 119 954, 092 46
Other Financing Sources( Uses):

Transfers in
Transfers out 1, 358, 625)
Total Other Financing Sources
Uses) 1, 358, 625)
Net Change in Fund Balances 37 610, 119 404, 533) 46
Fund Balances, Beginning of Year 11, 400 1, 472, 588 524, 822 1, 028 Fund Balances, End of Year 11, 437 $ 2, 082, 707 $ 120, 289 $ 1, 074 120
179

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022 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 2, 249, 868 $ 67, 186 $ 542, 423
Licenses and permits
Intergovernmental
Use of money and property 3 331 3, 106
Fines and forfeitures
Miscellaneous
Total Revenues 2, 249, 868 3 67, 517 545, 529
Expenditures:

Current:

General government
Public safety
Community development
Culture and leisure
Public works 2, 249, 868 518, 438 128, 056
Capital outlay
Total Expenditures 2, 249,868 518, 438 128, 056
Excess( Deficiency) of Revenues
Over( Under) Expenditures 518, 435) 67, 517 417, 473
Other Financing Sources( Uses):

Transfers in
Transfers out 9,180)
Total Other Financing Sources
Uses) 9, 180)
Net Change in Fund Balances 518, 435) 67, 517 408, 293
Fund Balances, Beginning of Year 56, 936 740, 995
Fund Balances, End of Year 518, 435) $ 124, 453 $ 1, 149, 288 121
180

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES tN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Speciai Revenue Funds
Stewart
Central Lathrop Economic Dev Gateway
CFD 2019- 2 Fee 80% TOT Trust Business Park
Revenues:

Taxes and assessments 947, 092 $ 119, 701 $ 83,545
Licenses and permits
Intergovernmental
Use of money and property 363 535 3, 851 82
Fines and forfeitures
Miscellaneous 27, 791
Total Revenues 975, 246 535 123, 552 83, 627
Expenditures:

Current:

General government
Public safety
Community development
Culture and leisure
Public works 534, 859 31, 788
Capital outlay
Total Expenditures 534, 859 31, 788
Excess( Deficiency) of Revenues
Over( Under) Expenditures 440, 387 535 123, 552 51, 839 Other Financing Sources( Uses):

Transfers in
Transfers out 40, 160)
Total Other Financing Sources
Uses) 40, 160)
Net Change in Fund Balances 400, 227 535 123, 552 51, 839 Fund Balances, Beginning of Year 169, 617) 5, 738 1, 103, 659 Fund Balances, End of Year 230, 610 $ 6, 273 $ 1, 227, 271 $ 51, 839 122
181

CITY OF LATHROP

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Capital Projects Funds
Total
Streets and Governmental
Roads Storm Drain Park in Lieu Funds
Revenues:

Taxes and assessments 804, 551 $ 14, 109, 879
Licenses and permits 55, 475
Intergovernmental 4, 281, 195
Use of money and property 38, 928 1, 785 2, 617 131, 784 Fines and forfeitures 1, 488, 745
Miscellaneous 423, 279
Total Revenues 38, 928 1, 785 807, 168 20, 490, 357
Expenditures:

Current:

General government
Public safety 4, 430, 454
Community development 34, 504
Culture and leisure 1, 749, 641
Public works 2, 853 8, 151, 874
Capital outlay 3, 624, 918 3, 700, 676
Total Expenditures 3, 627, 771 18, 067, 149
Excess( Deficiency) of Revenues
Over( Under) Expenditures 3, 588, 843) 1, 785 807, 168 2, 423, 208 Other Financing Sources( Uses):

Transfers in 3, 976, 616 250, 000 10, 228, 750
Transfers out 70) 4, 659, 380)
Total Other Financing Sources
Uses) 3, 976, 616 249, 930 5, 569, 370
Net Change in Fund Balances 387, 773 251, 715 807, 168 7,992, 578 Fund Balances, Beginning of Year 10, 645, 507 389, 453 340, 999 32, 905, 985 Fund Balances, End of Year 11, 033, 280 $ 641, 168 $ 1, 148, 167 $ 40,898, 563 123
182

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

LANDSCAPE MAINTENANCE
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 2, 749,025 $ 2, 749, 025 $ 2, 888,936 $ 139, 911 Use of money and property 3, 000 3, 000 9, 335 6, 335
Total Revenues 2, 752, 025 2, 752, 025 2, 898, 271 146, 246 Expenditures
Current:

Publicworks 2, 518, 556 2, 798, 808 2, 175, 466 623, 342 Capital outlay to 101, 894 75,758 26, 136
Total Expenditures 2, 518,556 2, 900, 702 2, 251, 224 649, 478 Other Financing Sources( Uses)
Transfers in 48, 014 48, 014 48, 014
Transfers out 335,440) 335, 440) 335, 440)
Total Other Financing Sources( Uses) 287,426) 287,426) 287, 426) Net Change in Fund Balances 53, 957) 436, 103) 359, 621 795, 724 Fund Balances, Beginning of Year 733, 425 733,425 733, 425 Fund Balances, End of Year 679, 468 $ 297, 322 $ 1, 093, 046 $ 795, 724 124
183

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

GAS TAX
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 1, 126, 708 $ 1, 204, 088 $ 1, 249, 587 $ 45, 499 Use of money and property 2 g3g 2 939
Total Revenues 1, 126, 708 1, 204, 088 1, 252, 526 48, 438 Other Financing Sources( Uses)
Transfers out 674, 970) 1, 333, 970) 1, 333, 970)
Total Other Financing Sources( Uses) 674, 970) 1, 333, 970) 1, 333, 970) Net Change in Fund Balances 451, 738 129, 882) 81, 444) 48, 438 Fund Balances, Beginning of Year 631, 518 631, 518 631, 518 Fund Balances, End of Year 1, 083, 256 $ 501, 636 $ 550, 074 $ 48, 438 125
184

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 333 $ 333
Fines and forfeitures 30, 000 30, 000 39, 240 9, 240
Total Revenues 30, 000 30, 000 39, 573 9, 573
Expenditures
Current:

Public safety 46, 500 46, 500 9, 596 36, 904
Total Expenditures 46, 500 46, 500 9, 596 36, 904
Other Financing Sources( Uses)
Transfers out 2, 440) 2, 440) 2, 440)
Total Other Financing Sources( Uses) 2, 440) 2, 440) 2, 440) Net Change in Fund Balances 18, 940) 18, 940) 27, 537 46, 477 Fund Balances, Beginning of Year 84, 942 84, 942 84, 942 Fund Balances, End of Year 66,002 $ 66, 002 $ 112, 479 $ 46,477 126
185

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

LOCAL STREET
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 2, 143 $ 2, 143
Miscellaneous 82, 764 54, 681 28, 083)
Total Revenues 82, 764 56, 824 25, 940)
Expenditures
Current:

Publicworks 1, 207, 631
Capital outlay 10, 000
Total Expenditures 1, 217, 631 1, 875, 687 1, 077, 118 798, 569 Other Financing Sources( Uses)
Transfers in 1, 386, 851 1, 521, 851 1, 521, 851
Transfers out 169, 220) 169, 220) 169, 220)
Total Other Financing Sources( Uses) 1, 217, 631 1, 352, 631 1, 352, 631 Net Change in Fund Balances 440, 292) 332, 337 772, 629 Fund Balances, Beginning of Year 449, 795 449, 795 449, 795 Fund Balances, End of Year 449, 795 $ 9, 503 $ 782, 132 $ 772, 629 127
186

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

PUBLIC NUISANCE
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 32 $ 32
Total Revenues 32 32
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) 32 4, 032
Fund Balances, Beginning of Year 12, 293 12, 293 12, 293 Fund Balances, End of Year 8, 293 $ 8, 293 $ 12, 325 $ 4, 032 128
187

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

MEASURE K
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 560, 000 $ 560, 000 $ 720, 588 $ 160, 588 Use of money and property 1, 647 1, 647
Total Revenues 560, 000 560, 000 722, 235 162, 235
Other Financing Sources( Uses):

Transfers out 728, 682) 728, 682) 717, 616) 11, 066
Total Other Financing Sources( Uses) 728, 682) 728,682) 717, 616) 11, 066 Net Change in Fund Balances 168, 682) 168, 682) 4, 619 173, 301 Fund Balances, Beginning of Year 627, 014 627, 014 627, 014 Fund Balances, End of Year 458, 332 $ 458, 332 $ 631, 633 $ 173, 301 129
188

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

STREETS AND ROADS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 884, 851 $ 884, 851 $ 1, 180, 161 $ 295, 310 Use of money and property 600 600
Total Revenues 884, 851 884, 851 1, 180, 761 295, 910
Other Financing Sources( Uses):

Transfers out 191, 174) 1, 299, 157) 41, 289) 1, 257, 868 Total Other Financing Sources( Uses) 191, 174) 1, 299, 157) 41, 289) 1, 257, 868 Net Change in Fund Balances 693, 677 414, 306) 1, 139, 472 1, 553, 778 Fund Balances, Beginning of Year 187, 171 187, 171 187, 171 Fund Balances, End of Year 880, 848 $ ( 227, 135) $ 1, 326, 643 $ 1, 553, 778 130
189

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

FEDERAL GRANT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 4, 430, 496 $ 5, 425, 911 $ 695, 355 $ ( 4, 730, 556) Total Revenues 4, 430,496 5, 425, 911 695, 355 4, 730, 556) Expenditures
C u rrent:

Culture and leisure 595, 415 595, 415
Total Expenditures 595, 415 595, 415
Other Financing Sources( Uses)
Transfers out 4,430, 496) 4, 830, 496) 371, 426) 4,459,070 Total Other Financing Sources( Uses) 4,430, 496) 4,830, 496) 371, 426) 4,459, 070 Net Change in Fund Balances 271, 486) 271, 486)
Fund Balances, Beginning of Year 332, 417 332, 417 332,417 Fund Balances, End of Year 332, 417 $ 332,417 $ 60, 931 $ ( 271, 486) 131
190

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

STORM DRAIN
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 1, 058 $ 1, 058
Fines and forfeitures 352, 506 352, 506 352, 535 29
Total Revenues 352, 506 355, 871 356, 958 1, 087
Expenditures
Current:

Publicworks 421, 810 608, 628 346, 388 262, 240
Capital outlay
Total Expenditures 421, 870 608, 628 346, 388 262, 240
Other Financing( Uses)
Transfers in 50, 000 50, 000 50, 000
Transfers out 67, 090) 67, 090) 67, 090)
Total Other Financing( Uses) 17, 090) 17, 090) 17, 090) Net Change in Fund Balances 86, 394) 269, 847) 6, 520) 263, 327 Fund Balances, Beginning of Year 338, 533 338, 533 338, 533 Fund Balances, End of Year 252, 139 $ 68, 686 $ 332, 013 $ 263,327 132
191

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

STREET LIGHT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 5, 134 $ 5, 134
Fines and forfeitures 1, 097, 909 1, 097, 909 1, 096, 970 939) Miscellaneous 10, 750 34, 059 23, 309
Total Revenues 1, 097, 909 1, 108, 659 1, 136, 163 27, 504 Expenditures
Current:

Publicsafety 173, 360 279, 170 150, 935 128, 235
Publicworks 1, 013, 150 1, 225, 036 876, 985 348, 051
Total Expenditures 1, 186, 510 1, 504, 206 1, 027, 920 476, 286 Other Financing ( Uses)
Transfers in 31, 900 31, 900 31, 900
Transfers out 139, 590) 139, 590) 139, 590)
Total Other Financing( Uses) 707, 690) 107,690) 107, 690) Net Change in Fund Balances 196, 291) 503, 237) 553 503, 790 Fund Balances, Beginning of Year 1, 562, 239 1, 562,239 1, 562, 239 Fund Balances, End of Year 7, 365, 948 $ 1, 059, 002 $ 1, 562,792 $ 503, 790 133
192

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL AB939 RECYCLING
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 170,000 $ 170, 000 $ 219, 744 $ 49,744 Licenses and permits 55, 475 55,475
Intergovernmental 5, 000 5,000 7, 390 2, 390
Use of money and property 3, 369 3, 369
Total Revenues 175, 000 175, 000 285, 978 110, 978
Expenditures
Current:

Culture and leisure 188, 571 77, 108 111, 463
Public works 132, 971
Total Expenditures 132, 971 188, 571 77, 108 111, 463
Other Financing( Uses)
Transfers out 14, 560) 14, 560) 14, 560)
Total Other Financing ( Uses) 14,560) 14, 560) 14,560)
Net Change in Fund Balances 27,469 28, 131) 194, 310 222,441 Fund Balances, Beginning ofYear 937, 125 937, 125 937, 125 Fund Balances( Deficits), End of Year 964,594 $ 908, 994 $ 1, 131, 435 $ 222,441 134
193

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 114, 736 $ 27, 434 $ 87, 302)
Use of money and property 17 17
Total Revenues 114, 736 27, 451 87, 285)
Expenditures
Current:

Community development 32, 435 34, 504 2, 069)
Total Expenditures 32, 435 34,504 2, 069)
Other Financing Sources( Uses):

Transfers out 82, 301) 82, 301
Total Other Financing Sources( Uses) 82, 301) 82, 301
Net Change in Fund Balances 7, 053) 7, 053)
Fund Balances, Beginning of Year 4, 232 4, 232 4, 232
Fund Balances, End of Year 4,232 $ 4, 232 $ 2, 821) $ 7, 053) 135
194

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

SCHOLARSHIP FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 5, 000 $ 5, 000 $ 5, 766 $ 766
Use of money and property 60 60
Miscellaneous 200 200 3, 699 3, 499
Total Revenues 5, 200 5, 200 9, 525 4, 325
Other Financing Sources( Uses):

Transfers out 5, 000) 5, 000) 2, 306) 2, 694
Total Other Financing Sources( Uses) 5, 000) 5, 000) 2, 306) 2, 694 Net Change in Fund Balances 200 200 7, 219 7, 019
Fund Balances, Beginning of Year 14, 524 14, 524 14, 524 Fund Balances, End of Year 14, 724 $ 14, 724 $ 21, 743 $ 7, 019 136
195

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL COPS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 500, 000 $ 500, 000 $ 161, 285 $ ( 338, 715) Use of money and property 849 849
Total Revenues 500, 000 500,000 162, 134 337, 866)
Expenditures
Current:

Public safety 500,000 500, 000 98, 722 401, 278
Total Expenditures 500,000 585, 000 98, 722 486, 278
Net Change in Fund Balances 85, 000) 63, 412 824, 144)
Fund Balances, Beginning of Year 233, 983 233, 983 233, 983 Fund Balances, End of Year 233, 983 $ 148, 983 $ 297, 395 $ ( 824, 144) 137
196

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

OFFICE OF TRAFFIC AND SAFETY
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 40, 000 $ 40, 000 $ 3, 994 $ 36, 006) Total Revenues 40, 000 40, 000 3, 994 36, 006)
Expenditures
Current:

Public safety 40, 000 40, 000 12, 002 27, 998
Total Expenditures 40, 000 40, 000 12, 002 27, 998
Net Change in Fund Balances 8, 008) 8, 008)
Fund Balances, Beginning of Year 8, 008 8, 008 8, 008
Fund Balances, End of Year 8, 008 $ 8, 008 $ 8, 008)
138
197

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

RTIF SAN JOAQUIN COUNTY
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 642,239 $ 642, 239 $ 498, 404 $ ( 143, 835) Use of money and property 627 627
Total Revenues 642, 239 642, 239 499, 031 143, 208)
Expenditures
Current:

Public works 642, 239 642, 239 499, 032 143, 207
Total Expenditures 642, 239 642, 239 499, 032 143, 207
Net Change in Fund Balances 1) 1)
Fund Balances, Beginning of Year 1 1 1
Fund Balances, End of Year 7 $ 1 $ 1)
139
198

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

RTIF LATHROP LOCAL WEST
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 4, 198, 377 $ 4, 198, 377 $ 3, 345, 663 $ ( 852, 714) Use of money and property 32, 971 32, 971
Total Revenues 4, 198, 377 4, 198, 377 3, 378, 634 819, 743) Expenditures
Current:

Public works 5, 000 14, 130 14, 127 3
Total Expenditures 5, 000 14, 130 14, 127 3
Net Change in Fund Balances 4, 193, 377 4, 184, 247 3, 364, 507 819, 740) Fund Balances, Beginning of Year 8, 065, 603 8, 065, 603 8, 065, 603 Fund Balances, End of Year 12, 258, 980 $ 12, 249, 850 $ 11, 430, 110 $ ( 819, 740) 140
199

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

RTIF SJCOG
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 963, 359 $ 963, 359 $ 747, 701 $ ( 215, 658) Use of money and property 947 947
Total Revenues 963, 359 963, 359 748, 648 214, 711
Expenditures
Current:

Public works 963, 359 963, 359 748, 648 214, 711
Total Expenditures 963, 359 963, 359 748, 648 214, 711
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year g
141
200

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

RTIF LATHROP LOCAL EAST
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 522, 079 $ 522, 079 $ 317, 493 $ ( 204, 586) Use of money and property 5, 295 8, 295
Total Revenues 522,079 522, 079 325, 788 196, 291)
Expenditures
Current:

Pub lic works 5, 000 5, 000 3, 985 1, 015
Total Expenditures 5, 000 5, 000 3, 985 1, 015
Net Change in Fund Balances 517, 079 517, 079 321, 803 195, 276) Fund Balances, Beginning of Year 2, 296, 205 2, 296, 205 2,296,205 Fund Balances, End of Year 2, 813, 284 $ 2,813,284 $ 2, 618, 008 $ ( 195, 276) 142
201

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

LMFD MEASURE C
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Use of money and property 642 $ 642
Total Revenues 642 642
Expenditures
Current:

Publicsafety 2,400, 000 4, 350, 370 4, 159, 199 191, 171 Total Expenditures 2, 400, 000 4, 350, 370 4, 159, 199 191, 171 Other Financing Sources( Uses):

Transfers in 2, 400, 000 4, 350, 370 4, 350, 369 1)
Total Other Financing Sources( Uses) 2,400, 000 4, 350, 370 4,350, 369 1) Net Change in Fund Balances 191, 812 191, 812
Fund Balances, Beginning of Year 983, 338 983, 338 983, 338 Fund Balances, End of Year 983, 338 $ 983, 338 $ 7, 175, 150 $ 791, 812 143
202

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

STATE GRANTS
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Intergovernmental 428, 346 $ 401, 276 $ 28, 058 $ ( 373, 218) Total Revenues 428, 346 401, 276 28, 058 373, 218)
Other Financing Sources( Uses):

Transfers out 428, 346) 401, 276) 56, 398) 344, 878
Total Other Financing Sources( Uses) 428, 346) 401, 276) 56, 398) 344, 878 Net Change in Fund Balances 28, 340) 28, 340)
Fund Balances, Beginning of Year 28, 340 28, 340 28, 340 Fund Balances, End of Year 28, 340 $ 28, 340 $ 28, 340) 144
203

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CITYWIDE ECONOMIC DEV FEE 20%
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 765,000 $ 765, 000 $ 604, 000 $ ( 161, 000) Use of money and property 6, 119 6, 119
Total Revenues 765, 000 765, 000 610, 119 754, 881)
Other Financing Sources( Uses):

Transfers out
Total Other Financing Sources( Uses)
NetChange in Fund Balances 765, 000 765, 000 610, 119 154, 881) Fund Balances, Beginning of Year 1, 472, 588 1, 472, 588 1, 472, 588 Fund Balances, End of Year 2, 237, 588 $ 2, 237, 588 $ 2, 082, 707 $ ( 154, 881) 145
204

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL RIVER ISLANDS CFD 2013- 1
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 606, 551 $ 606, 551 $ 673, 572 $ 67, 021 Use of money and property 2, 217 2, 217
Miscellaneous 400, 449 400, 449 299, 684 100, 765)
Total Revenues 1, 007, 000 1, 007, 000 975, 473 31, 527) Expenditures
Current:

Publicworks 18, 500 18, 500 21, 381 2, 881)
Total Expenditures 18, 500 18, 500 21, 381 2, 881)
Other Financing Sources( Uses):

Transfers out 988, 500) 988, 500) 1, 358, 625) 370, 125) Total Other Financing Sources( Uses) 988, 500) 988,500) 1, 358, 625) 370, 125) Net Change in Fund Balances 404, 533) 404, 533)
Fund Balances, Beginning of Year 524, 822 524,822 524, 822 Fund Balances, End of Year 524, 822 $ 524, 822 $ 120, 289 $ ( 404, 533) 146
205

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL ULOP RD- 77 LEVEE IMPACT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 4,036,020 $ 4, 036, 020 $ 2, 249, 868 $ ( 1, 786, 152) Use of money and property
Total Revenues 4, 036, 020 4, 036, 020 2, 249, 868 1, 786, 152) Expenditures
Current:

Publicworks 4, 036, 020 4, 036, 020 2, 249, 868 1, 786, 152 Total Expenditures 4,036, 020 4, 036, 020 2, 249, 868 1, 786, 152 Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
147
206

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL

CLSP OFF- SITE ROADWAY IMPROVEMENT
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 125, 259 $ 125, 259 $ 67, 186 $ 58, 073) Use of money and property 331 331
Total Revenues 125, 259 125, 259 67, 517 57, 742)
Net Change in Fund Balances 125,259 125, 259 67, 517 57, 742) Fund Balances, Beginning of Year 56, 936 56,936 56, 936 Fund Balances, End of Year 182, 195 $ 182, 195 $ 124, 453 $ 57, 742) 148
207

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL SOUTH LATHROP CFD 2019- 1
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 542, 423 $ 542, 423 $ 542, 423 $
Use of money and property 3, 106 3, 106
Total Revenues 542, 423 542, 423 545, 529 3, 106
Expenditures
Current:

Public works 289, 320 314, 604 128, 056 186, 548
Capital outlay 230, 000 230, 000 230, 000
Total Expenditures 519, 320 544, 604 128,056 416,548
Net Change in Fund Balances 13, 923 11, 361) 408, 293 419,654 Fund Balances, Beginning of Year 740, 995 740, 995 740, 995 Fund Balances, End of Year 754, 918 $ 729, 634 $ 1, 149, 288 $ 419,654 149
208

CITY OF LATHROP

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CENTRAL LATHROP CFD 2019- 2
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts Negative)
Revenues
Taxes and assessments 860, 000 $ 860, 000 $ 947, 092 $ 87, 092 Use of money and property 363 363
Total Revenues 860, 000 876, 200 975, 246 99, 046
Expenditures
Current:

Publicworks 605, 840 666, 423 534, 859 131, 564
Total Expenditures 605, 840 666, 423 534,859 131, 564
Other Financing Sources( Uses)
Transfers out 40, 160) 40, 160) 40, 160)
Total Other Financing Sources( Uses) 40, 160) 40, 160) 40, 760) Net Change in Fund Balances 214, 000 169, 617 400, 227 230,610 Fund Balances( Deficits), Beginning of Year 169, 617) 169, 617) 169, 617) Fund Balances( Deficits), End of Year 44, 383 $ 230,610 $ 230, 610 150
209

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.
151
210

CITY OF LATHROP

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2022
Joint
Mossdale Wastewater
Village Community North Harlan
Assessment Crossroads Facilities Water
District Assessments District Improvement
Assets:

Pooled cash and investments 1, 701, 358 $ 572, 069 $ 799, 796 $ 60, 148 Receivables:

Accounts 1, 685, 043
Accrued interest 329 249 383 32
Restricted assets:

Cash and investments with fiscal agents 32 742, 231 700, 728 3 Total Assets 1, 701, 719 2, 999, 592 1, 500, 907 60, 183 Liabilities:

Accounts payable 121, 180 40, 928
Deposits payable
Due to other governments 1, 608, 303 1, 113, 490 5, 175) Total Liabilities 1, 608, 303 1, 234, 670 35, 753
Net Position( Deficit):

Restricted for:

Individuals, organizations and other governments 93, 416 2, 999, 592 266, 237 24, 430 Total Net Position( Deficit) 93, 416 $ 2, 999, 592 $ 266, 237 $ 24,430 152
211

CITY OF LATHROP

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2022
Community Mossdale
Facilities Sewer Village
District CLSP Asessment Reassessment
Infrastructure District# 1 2015- 1 Totals
Assets:

Pooled cash and investments 1, 668, 173 $ 1, 944 $ 1, 044, 432 $ 5, 847, 920 Receivables:

Accounts 1, 685, 043
Accrued interest 626 5 521 2, 145
Restricted assets:

Cash and investments with fiscal agents 1, 214, 230 400, 986 240, 370 3, 298, 580 Total Assets 2, 883, 029 402, 935 1, 285, 323 10, 833, 688 Liabilities:

Accounts payable 162, 108
Deposits payable 30, 747 30, 747
Due to other governments 2, 367, 728 386, 150 873, 139 6, 343, 635 Total Liabilities 2, 398, 475 386, 150 873, 139 6,536,490 Net Position( Deficit):

Restricted for:

Individuals, organizations and other governments 484, 554 16, 785 412, 184 4, 297, 198 Total Net Position( Deficit) 484, 554 $ 16, 785 $ 412, 184 $ 4, 297, 198 153
212

CITY OF LATHROP

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
Joint
Mossdale Wastewater
Village Community North Harlan
Assessment Crossroads Facilities Water
District Assessments District Improvement
Additions:

Collections for assessment districts 969, 476 $ 757, 344 $ 1, 432, 936 $ Investmentearnings 1, 498 1, 118 2, 039 199
Total Additions 970, 974 758, 462 1, 434, 975 799
Deductions:

Administrative expenses 12, 594 9, 298 11, 122
Contractual services 21, 990 9, 036 13, 565
Interestexpense 1, 303, 512 729, 093 1, 239, 730
Total Deductions 1, 338, 096 747, 427 1, 264, 417
Changes in Net Position 367, 122) 11, 035 170, 558 199
Net Position- Beginning of the Year 6, 539, 172) ( 7, 946, 486) ( 3, 822, 662) 19, 056 Restatements 6, 999, 710 10, 935, 043 3, 918, 341 5, 175 Net Position( Deficit)- Beginning of the Year, as Restated 460, 538 2, 988, 557 95, 679 24, 231 Net Position( Deficit)- End of the Year 93, 416 $ 2, 999, 592 $ 266, 237 $ 24, 430 154
213

CITY OF LATHROP

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
Community Mossdale
Facilities Sewer Village
District CLSP Asessment Reassessment
Infrastructure District# 1 2015- 1 Totals
Additions:

Collections for assessment districts 2, 657, 754 $ 20, 236 $ 504, 729 $ 6, 342, 475 Investment earnings 2, 922 28 2, 805 10, 609
Total Additions 2, 660, 676 20, 264 507, 534 6, 353, 084 Deductions:

Administrative expenses 9, 120 7, 486 12, 594 62, 214
Contractual services 24, 833 18, 104 87, 528
Interest expense 2, 199, 980 95, 881 5, 568, 196
Total Deductions 2, 233, 933 7, 486 126, 579 5, 777, 938 Changes in Net Position 426, 743 12, 778 380, 955 635, 146 Net Position- Beginning of the Year 43, 311, 251) ( 196, 748) ( 4, 315, 997) ( 66, 113, 260) Restatements 43, 369, 062 200, 755 4, 347, 226 69, 775, 312 Net Position( Deficit)- Beginning of the Year, as Restated 57, 811 4,007 31, 229 3, 662, 052 Net Position( Deficit)- End of the Year 484, 554 $ 16, 785 $ 412, 184 $ 4, 297, 198 155
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156
215

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.
157
216

CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2013 2014 2015 2016
Governmental activities:

Net investments in
capital assets 127, 600, 645 $ 140, 357, 523 $ 145, 671, 748 $ 148, 474, 931 Restricted 6, 989, 280 4, 865, 583 7, 733, 824 10, 223, 760 Unrestricted 31, 954, 985 31, 716, 374 35, 612, 693 38, 941, 548 Total governmental activities net position 166, 544, 910 $ 176, 939, 480 $ 189, 018, 265 $ 197, 640, 239 Business- type activities:

Net investments in
capital assets 76, 371, 218 $ 88, 125, 585 $ 92, 350, 319 $ 93, 906, 914 Restricted 2, 865, 251 2, 696, 850 2, 995, 846 2, 698, 250 Unrestricted 19, 333, 520 25, 692, 676 23, 944, 509 26, 437, 255 Total business- type activities net position 98, 569, 989 $ 116, 515, 111 $ 119, 290, 674 $ 123, 042, 419 Primary government:

Net investments in
capital assets 203, 971, 863 $ 228, 483, 108 $ 238, 022, 067 $ 242, 381, 845 Restricted 9, 854, 531 7, 562, 433 10, 729, 670 12, 922, 010 Unrestricted 51, 288, 505 57,409, 050 59, 557, 202 65, 378, 803 Total Primary government net position 265, 114, 899 $ 293, 454, 591 $ 308, 308, 939 $ 320, 682, 658 Source: City of Lathrop, California Comprehensive Annual Financial Reports. 158
217

CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2017 2018 2019 2020 2021 2022
155, 971, 046 $ 159, 727, 304 $ 179, 501, 255 $ 206, 211, 349 $ 218, 894,403 $ 250, 605, 011 11, 858, 920 10, 376, 172 13,552, 647 16, 013, 046 103, 964, 923 122, 949, 9'90 47,769, 952 52, 396, 920 72, 645, 973 87, 005, 385 33, 463, 086 47, 696, 013 215, 599, 918 $ 222, 500, 396 $ 265, 699, 875 $ 309, 229, 780 $ 356, 322, 412 $ 421, 251, 014 103, 695, 833 $ 120, 279, 431 $ 150, 452, 677 $ 160, 481, 074 $ 156, 963, 462 $ 174, 059, 4.?1 1, 706, 637 1, 650, 031 1, 652, 234 1, 651, 396 1, 650, 648 1, 652, 9' 15 37, 146, 214 30, 919, 752 34,710, 083 43, 373, 359 62, 502, 764 70, 785, 536 142, 548, 684 $ 152, 849, 214 $ 186, 814, 994 $ 205, 505, 829 $ 221, 116, 874 $ 246, 497, 872 259, 666, 879 $ 280, 006, 735 $ 329, 953, 932 $ 366, 692, 423 $ 375, 857, 865 $ 424, 664, 482 13, 565, 557 12, 026, 203 15, 204, 881 17, 664, 442 105, 615, 571 124, 602, 905 84, 916, 166 83, 316, 672 107, 356, 056 130, 378, 744 95, 965, 850 118, 481, 5 E9 358, 148, 602 $ 375, 349, 610 $ 452, 514, 869 $ 514, 735, 609 $ 577, 439, 286 $ 667, 748, 8fi6 159
218

CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2013 2014 2015 2016 2017
Expenses:

Governmental activities:

General govemment 3, 733, 840 $ 4, 680, 110 $ 7, 449, 500 $ 5, 614, 173 $ 4, 580, 381 Publicsafety 4, 624, 518 5, 940, 125 6, 962, 351 8, 048, 625 9, 683, 636 Publicworks 10, 246, 951 13, 888, 678 10, 864, 104 7, 864, 470 13, 125, 373 Culture and leisure 1, 161, 712 1, 111, 917 779, 976 1, 395, 287 1, 300, 832 Communitydevelopment 1, 472, 084 1, 573, 972 602, 719 1, 712, 156 993, 885 Interest on long- term debt 369, 832 924, 941 340, 120 880, 036 319, 164 Total govemmental activities expense 21, 608, 937 28, 119, 743 26, 998, 770 25, 514, 747 30, 003, 271 Business-type activities:

Water 7, 090, 866 7, 376, 261 5, 108, 071 4, 941, 845 5, 828, 411 Wastewater 3, 987, 951 6, 289, 560 4, 433, 501 3, 587, 602 5, 393, 728 Total business- type activities expenses 11, 078, 817 13, 665, 821 9, 541, 572 8, 529, 447 11, 222, 139 Total primary governmentexpenses 32, 687, 754 $ 41, 785, 564 $ 36, 540, 342 $ 34, 044, 194 $ 41, 225, 410 Program revenues:

GovernmenWl activities:

Charges for services:

General Govemment 335, 511 $ 397, 607 $ 491, 076 $ 551, 613 $ 462, 696 PublicSafety 174, 862 716, 360 356, 989 365, 009 231, 164 Public Works 178, 087 202, 488 248, 089 258, 005 1, 697, 831 Culture and leisure 152, 379 242, 500 220, 963 205, 376 283, 662 Communitydevelopment 1, 515, 837 2, 189, 603 2, 551, 889 3, 947, 881 3, 131, 768 Operating grants and contributions 5, 076, 581 4, 947, 223 4, 969, 720 5, 016, 283 4, 841, 037 Capital grants and contnbutions 8, 304, 237 23, 115, 518 22, 155, 191 9, 759, 080 30, 838, 179 Total governmental activities
program revenues 15, 737, 494 31, 811, 299 30, 993, 917 20, 103, 247 41, 486, 337 Business- type activities:

Charges for services:

Water 6, 293, 790 6, 551, 486 6, 042, 517 5, 849, 963 6, 856, 028 Wastewater 5, 186, 053 5, 827, 902 5, 730, 148 5, 233, 840 5, 791, 155 Operating grants and contnbutions 3, 710, 000 12, 002, 670 Capital grants and contributions 159, 854 159, 854 159, 854 159, 854 159, 854 Total business- type activities
program revenues 15, 349, 697 24, 541, 912 11, 932, 519 11, 243, 657 12, 807, 037 Total primary govemment
program revenues 31, 087, 191 $ 56, 353, 211 $ 42, 926, 436 $ 31, 346, 904 $ 54, 293, 374 Net revenues( expenses):

GovernmenWl activities 5, 871, 443) $ 3, 691, 556 $ 3, 995, 147 $ ( 5, 411, 500) $ 11, 483, 066 Business- type activities 4, 270, 880 10, 876, 091 2, 390, 947 2, 714, 210 1, 584, 898 Total net revenues( expenses) 1, 600, 563) $ 14, 567, 647 $ 6, 386, 094 $ ( 2, 697, 290) $ 13, 067, 964 General revenues and other changes in net pasition:

Governmental activities:

Taxes:

Property tax 2, 810, 704 $ 2, 946, 083 $ 3, 273, 006 $ 3, 566, 656 $ 3, 980, 606 Sales and use taxes 3, 128, 882 6, 676, 994 5, 947, 812 6, 209, 105 6, 337, 138 Franchisetaxes 667, 509 705, 405 685, 140 518, 183 771, 288 Other taxes 466, 328 419, 267 449, 950 743, 896 565, 715 Motorvehide in lieu, unrestricted 1, 076, 010 1, 118, 489 1, 237, 606 1, 324, 094 1, 555, 026 Investment income( loss) 38, 959 67, 431 80, 844 346, 915 19, 282 Othergeneralrevenues 262, 023 395, 810 301, 192 1, 745, 978 10, 090, 096 Transfers 763, 094 ( 5, 626, 465) 84, 391) 421, 353) ( 16, 842, 538) Total governmental activities 9, 213, 509 6, 703, 014 11, 891, 159 14, 033, 474 6, 476, 613 Business- type activities:

Investment income( loss) 59, 419 49, 915 63, 492 200, 063 214, 510 Miscellaneous 1, 545, 739 1, 392, 651 675, 204 416, 119 864, 319 Transfers 763, 094) 5, 626, 465 84, 391 421, 353 16, 842, 538 Totalbusiness- typeactivities 842, 064 7, 069, 031 823, 087 1, 037, 535 17, 921, 367 Total primary govemment 10, 055, 573 $ 13, 772, 045 $ 12, 714, 246 $ 15, 071, 009 $ 24, 397, 980 Changes in net position
Govemmental activities 3, 342, 066 $ 10, 394, 570 $ 15, 886, 306 $ 8, 621, 974 $ 17, 959, 679 Business- type activities 5, 112, 944 17, 945, 122 3, 214,034 3, 751, 745 19, 506, 265 Total primary government 8, 455, 010 $ 28, 339, 692 $ 19, 100, 340 $ 12, 373, 719 $ 37, 465, 944 160
219

CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
zo, a zo, s zozo zoz, 2ozz
4, 917, 617 $ 5, 307, 052 $ 5, 944, 111 $ 6, 544, 720 $ 6, 994, 053 10, 965, 814 11, 284, 963 12, 121, 072 11, 729, 668 11, 628, 050 13, 066, 756 16, 835, 406 19, 195, 792 19, 892, 748 14, 711, 011 1, 331, 511 1, 442, 202 1, 468, 471 1, 466, 177 11, 55Q470 1, 256, 506 977, 552 1, 317, 693 8, 227, 717 1, 805, 271 100, 088 46, 410 89, 123 241, 454 233, 740
31, 638, 592 35, 893, 585 40, 136, 262 48, 102, 484 46, 931, 595 4, 969, 618 6, 303, 489 6, 906, 021 6, 767, 503 7,099,213 1, 204, 762 9, 206, 503 7, 476, 439 7, 926, 063 7, 853, 576 6, 174, 380 15, 509, 992 14, 382, 460 14, 693, 566 14, 952, 789 37, 812, 972 $ 51, 403, 577 $ 54, 518, 722 $ 62, 796, 050 $ 61, 884, 384 438, 974 $ 528, 673 $ 465, 303 $ 6, 961, 502 $ 9, 212, 336 424, 909 775, 581 504, 277 243, 035 139, 111
1, 184, 297 1, 874, 445 473, 036 3, 581, 829 2, 816, 090 279, 505 341, 016 285, 143 124, 652 363, 671
2, 916, 089 3, 880, 593 6, 507, 913 3, 880, 053 8, 161, 272 5, 459, 511 5, 674, 834 6, 105, 531 2, 709, 984 5, 236, 622 10, 069, 773 40, 920, 445 43, 291, 735 16, 740, 299 25, 39Q248 20, 773, 058 53, 995, 587 57, 632, 938 34, 241, 354 51, 319, 350 8, 331, 835 9, 052, 906 10, 352, 614 10, 239, 976 10, 758, 681 6, 533, 098 7, 923, 942 8, 633, 545 8, 776, 287 9, 141, 235 159, 854 32, 556, 339 11, 691, 580 6, 862, 837 4, 933, 027 15, 024, 787 49, 533, 187 30, 677, 739 25, 879, 100 24, 832, 943 35, 797, 845 $ 103, 528, 774 $ 88, 310, 677 $ 60, 120, 454 $ 76, 152, 293 10, 865, 534) $ 18, 102, 002 $ 17, 496, 676 $ ( 13, 861, 130) $ 4, 387, 755 8, 850, 407 34, 023, 195 16, 295, 279 11, 185, 534 9, 880, 154 2, 015, 127) $ 52, 125, 197 $ 33, 791, 955 $ ( 2, 675, 596) $ 14, 267, 909 4, 285, 832 $ 4, 710, 374 $ 5, 333, 918 $ 8, 613, 482 $ 9, 737, 910 9, 211, 228 12, 001, 476 10, 501, 615 18, 190, 475 23, 643, 606 877, 633 1, 204, 106 1, 241, 635 1, 530, 878 1, 640, 212 634, 335 666, 791 582, 552 30, 620, 998 31, 355, 667
1, 794, 526 1, 898, 011 2, 193, 976 738, 708 738, 708
979, 493 1, 996, 503 2, 786,291 701, 941 ( 2, 101, 280) 379, 591 149, 364 184, 705 945, 547 1, 344, 184
137, 582) 2, 439, 302 3, 255, 411 1, 777, 930 ( 5, 818, 160) 18, 025, 056 25, 065, 927 26, 080, 103 63, 119, 959 60, 540, 847 405, 014 782, 839 741, 372 364, 403 216, 580
907, 527 1, 599, 048 4, 909, 595 5, 692, 221 9, 466, 104 137, 582 ( 2, 439, 302) ( 3, 255, 411) ( 1, 777, 930) 5, 818, 160 1, 450, 123 57, 415) 2, 395, 556 4, 278, 694 15, 500, 844 19, 475, 179 $ 25, 008, 512 $ 28, 475, 659 $ 67, 398, 653 $ 76, 041, 691 7, 159, 522 $ 43, 167, 929 $ 43, 576,779 $ 49, 258, 829 $ 64, 928, 602 10, 300, 530 33, 965, 780 18, 690, 835 15, 464, 228 25, 380, 998 17, 460, 052 $ 77, 133, 709 $ 62, 267, 614 $ 64, 723, 057 $ 90, 309, 600 161
220

CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2013 2014 2015 2016
General fund:

Nonspendable 7, 175, 257 $ 6, 380, 018 $ 6, 852, 691 $ 6, 665, 677 Committed 2, 233, 234
Assigned 1, 229, 504
Unassigned 9, 784, 715 16, 234, 527 11, 091, 860 12, 861, 107 Total general fund 18, 189, 476 $ 22, 614, 545 $ 17, 944, 551 $ 21, 7 60, 018 All other governmental funds:

Restricted 4, 142, 620 $ 3, 890, 049 $ 6, 823, 678 $ 4, 513, 322 Committed 19, 333, 997 12, 977, 322 22, 534, 880 25, 8,29, 474 Assigned 264, 923 930, 347 880, 383 9' 75, 042
Unassigned 364) 233)
Total all other governmental funds 23, 741, 540 $ 17, 797, 718 $ 30, 238, 577 $ 31, 317, 605 FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California
162
221

CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2017 2018 2019 2020 2021* 2022
6, 180, 434 $ 5, 650, 104 $ 5, 225, 742 $ 3, 470, 982 $ 3, 282, 311 $ 2, 405, 864 29, 678, 802 29, 664, 824 44, 763, 906
2, 616, 835
16, 496, 212 21, 538, 365 31, 169, 562 4, 289, 278 6, 679, 913 5, 704, 542 22, 676, 646 $ 27, 188, 469 $ 36, 395, 304 $ 40, 055, 897 $ 39, 627, 048 $ 52, 874, 312 4, 701, 300 $ 3, 797, 087 $ 4, 701, 645 $ 9, 116, 860 $ 103, 964, 923 $ 122, 949, 990 35, 779, 675 36, 015, 106 49, 619, 728 58, 214, 668
784, 139 663, 674 549, 720 572, 817
120) 163, 756) 2, 500) 773, 287) 1, 053, 529)
41, 264, 994 $ 40, 475, 867 $ 54, 707, 337 $ 67, 901, 845 $ 103, 191, 636 $ 121, 896, 461 163
222

CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2013 2014 2015 2016 _
Revenues:

Taxes and assessments 12, 092, 527 $ 15, 462,332 $ 21, 268, 849 $ 18, 494, 460 Licenses and permits 634, 934 749, 845 1, 373, 909 1, 283, 193 Fines, forteitures, and penalties 1, 564, 795 1, 476, 258 1, 486, 888 1, 658,639 Intergovernmental 7, 107, 760 13, 291, 995 11, 177, 149 5,489,546 Use of Money& Property 62, 939 116, 968 159, 262 382,724 Charges for current services 1, 449, 684 2, 727, 193 2, 207, 080 3, 725,964 Contributions( Developer) 9, 779, 408 1, 094, 140
Other 1, 275,270 536, 779 4, 202, 190 3, 523, 548
Total revenues 24, 187, 909 44, 140, 778 42, 969, 467 34, 558, 074 Expenditures
Current:

General government 3, 318, 835 4, 240, 661 8, 063, 724 4, 675, 898 Community development 1, 222, 152 1, 323, 932 1, 254,836 1, 657, 178 Public safety 4, 510,204 5, 829, 809 7, 030,624 7, 297,872 Publicworks 9, 197, 006 17, 040, 900 15, 482, 137 6, 687,275 Culture and leisure 1, 069,332 1, 063, 957 1, 048, 531 1, 296, 370 CapitalOutlay 3, 795,717 9, 334, 496 1, 604,530 4, 361, 924 Debt service:

Principal retirement 262, 103 274, 370 289, 709 1, 683, 347 Interest and fiscal charges 369, 832 924, 941 340, 120 390,710 Total expenditures 23, 745, 181 40, 033, 066 35, 114, 211 28, 050,574 Excess( deficiency) of
revenues over( under)
expenditures 442,728 4, 107, 712 7, 855, 256 6, 507,500 Other financing sources( uses):

Proceeds from issuance of long- term debt 1, 191, 652)
Transfers in 9, 379, 077 18,471, 301 17,566,636 12, 971, 420 Transfers out 8, 615, 983) ( 24, 097, 766) ( 17, 651, 027) ( 13, 392, 773) Totalotherfinancing
sources( uses) 763, 094 ( 5, 626, 465) 84, 391) ( 1, 613, 005) Net change in fund balances 1, 205, 822 $ ( 1, 518, 753) $ 7, 770, 865 $ 4, 894, 495 Debt service as a percentage of
noncapital expenditures 3. 3% 4. 1% 1. 9% 9. 6°/,
FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California Comprehensive Annual 164
223

CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2017 2018 2019 2020 2021' 2022
22, 885, 183 $ 22, 571, 206 $ 35, 307,490 $ 32, 969, 640 $ 59,694, 541 $ 67, 116, 103 1, 808, 623 1, 266, 197 1, 523, 951 2, 930, 344 3, 191, 727 386,466 1, 949, 910 2, 237,680 2, 542, 551 1, 973, 138 1, 628, 103 1, 588,616 3, 134,272 4, 420,261 4, 373, 978 5, 281, 487 7, 045, 036 10,094,787 392, 493 1, 366, 160 2, 433, 126 3, 299, 084 701, 941 ( 2, 101, 280) 3, 605, 846 3, 508, 608 4, 656, 065 4, 523, 327 6, 208, 805 13, 859, 233 19, 675,946 2, 751, 850 536, 277 357, 105 7, 595, 547 10, 621, 451 1, 353, 215 813, 734 550,982 657, 995 945, 547 1, 344, 184 54, 805, 488 38, 935, 696 52, 224, 420 51, 992, 120 87, 011, 247 102, 909, 560 4, 406, 106 4, 770, 853 5, 137, 588 5, 748, 979 6, 241, 381 7, 124, 908 784,763 1, 109, 714 838, 993 1, 153, 119 1, 220, 515 1, 722, 885 9, 560, 119 10, 724, 423 11, 222,012 12, 001, 225 11, 507, 852 11, 552, 853 7, 616, 246 7, 048, 016 9, 984, 165 10, 701, 329 19, 627,773 16, 617,416 1, 226, 638 1, 275, 334 1, 384, 798 1, 411, 336 1, 323, 042 3,405,473 2, 920, 897 9, 761, 990 2, 643, 451 6, 950, 445 11, 300,021 24,267,638 265, 000 285, 000 290, 000 300,000 352, 316
319, 164 100, 088 46, 410 89, 123 241, 454 233, 740
27, 098,933 35, 075, 418 31, 257, 417 38, 345,556 51, 762, 038 65, 277, 229 27, 706,555 3, 860, 278 20, 967, 003 13, 646, 564 35, 249, 209 37, 632,331 137, 918
10, 394,523 12, 389, 403 14, 380, 867 24, 940, 959 35, 131, 963 26, 415,645 27, 237, 061) ( 12, 526, 985) ( 11, 941, 565) ( 21, 685, 548) ( 33, 354,033) ( 32, 233,805) 16, 842, 538) 137, 582) 2,439,302 3, 255,411 1, 777,930 ( 5, 680,242) 10, 864,017 $ 3, 722, 696 $ 23, 406, 305 $ 16, 901, 975 $ 37, 027, 139 $ 31, 952, 089

2. 5% 1. 5% 0. 2% 1. 2% 1. 4% 1. 4°/ a
165
224

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
2013 2, 681, 516 $ 2, 681, 516 100. 00% $ 2, 681, 516 10i0. 00% 2014 2, 821, 126 2, 821, 126 100. 00% 2, 821, 126 10i0. 00% 2015 3, 098, 364 3, 098, 364 100. 00% 3, 098, 364 10 0. 00% 2016 3, 353, 607 3, 353, 607 100. 00% 3, 353, 607 10 0. 00% 2017 3, 727, 479 3, 727, 479 100. 00% 3, 727, 479 10 0. 00% 2018 4, 125, 753 4, 125, 753 100. 00% 4, 125, 753 10 0. 00% 2019 4, 309, 587 4, 309, 587 100. 00% 4, 309, 587 10 0. 00% 2020 4, 812, 631 4, 812, 631 100. 00% 4, 812, 631 10 0. 00% 2021 5, 326, 609 5, 326, 609 100. 00% 5, 326, 609 100. 00% 2022 5, 853, 282 5, 853, 282 100. 00% 5, 853, 282 100. 00% Source: County of San Joaquin, California, Office of the Controller. 166
225

CITY OF LATHROP
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands)
ciry
Gross Taxable Assessed Vaiue Net Taxable Total
Less: Assessed DirectTax
Fiscal Year Secured Unsecured SBE Nonunitary Exemptions Value Rate 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% 2022 4, 787, 945, 754 304, 082, 430 15, 952, 158 5, 107, 980, 342 0. 115% NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% baseci 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 re- assessed 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. 167
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CITY OF LATHROP
Principal Property Taxpayers
Current Year and Ten Years Ago
2022 2013
Percent of Perc ent of
Total City Total City
Taxable Taxable Taxable
Taxable Assessed Assessed Asse ssed
Taxpayer Assessed Value Value Value Value
TESLA MOTORS INC 228, 225, 850 4. 47% $ 0. 00%
LIT INDUSTRIAL LP 187, 602, 039 3. 67% 0. 00%
TRIPOINT LOGISTtCS CENTER ILP 130, 336, 440 2. 55% 0. 00% CALIFIA LLC 90, 697, 079 1. 78% 49, 965, 185 2. 65%
UNITED PARCEL SERVICE INC 79, 841, 690 1. 56% 0. 00%
PW FUND B DEVELOPMENT LLC 73, 506, 837 1. 44% 0. 00%
COLONY 2019 2 BULK INDUSTRIAL LLC 65, 956, 300 1. 29% 0. 00% SUPER STORE INDUSTRIES 64, 375, 930 1. 26% 41, 233, 898 2. 19% CENTERPOINT PROPERTIES TRUST 63, 889, 754 1. 25% 36, 188, 233 1. 92% J R SIMPLOT COMPANY CORP 62, 292, 003 1. 22% 43, 410, 125 2. 30% Source: County of San Joaquin, Califomia, Office of the County Assessor. 169
228

CITY OF LATHROP
Property 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
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°/ a 1. 12280%
2020 1. 00000% 0. 11400% 0. 00000% 1. 11400%
2021 1. 00000% 0. 10490% 0. 00000% 1. 10490%
2 22 1. 00000% 0. 13820% 0. 00000% 1. 13820%
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 170
229

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
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% 2016 1. 00% 0. 50% 1. 00% "" 0. 25% 1. 00% 525°/ a 9. 00% 2017 1. 00% 0. 50% 1. 00°/ a '`" 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% 1. 00% 5. 00% 8. 75% 2022 1. 00% 0. 50°/ a 1. 00% ** 0. 25% 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 ame; ndment 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 171
230

CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2013 2014 2015 2016
Gross Assessed Valuation 1, 884, 764, 847 $ 1, 962, 577, 631 $ 2, 162, 599, 293 $ 2, 373, 117, f307 Debt Margin Ratio( 1) 3. 75% 3. 75% 3. 75% 3. 75%
Debt Margin( Limit) 70, 678, 682 73, 596, 661 81, 097, 473 88, 991, Sa10 Net Legal Debt Margin 70, 678, 682 $ 73, 596, 661 $ 81, 097, 473 $ 88, 991,<,a10 Total debt applicable to the the limit
as a percentage of debt limit 0% 0% 0°/ o 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, E; ach parcel is now assessed at 100% of market value ( as of the most recent change in ownership for that parcel.) The computation sh own 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 withiri the sTate The limit shnwn is 3J5%( one- fniirth of the nrevinus limit nf 15% l Source: City of Lathrop, California Finance Department and the County of San Joaquin, California, Office of the Controll r 172
231

CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2017 2018 2019 2020 2021 2022
2, 710, 640, 553 $ 3, 103, 337, 856 $ 3, 314, 685, 968 $ 3, 843, 259, 098 $ 4, 435, 798, 404 $ 5, 107, 980, 34 2

3. 75% 3. 75% 3. 75% 3. 75% 3. 75% 3. 7E%
101, 649, 021 116, 375, 170 124, 300, 724 144, 122, 216 166, 342, 440 191, 549, 2E 3 101, 649, 021 $ 116, 375, 170 $ 124, 300, 724 $ 144, 122, 216 $ 166, 342, 440 $ 191, 549, 2E 3 0% 0% 0°/a 0°/a 0% C%
173
232

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)
2013 $ 7, 139, 752 7, 139, 752 $ 24, 945, 000 5, 9: 50, 203 2014 6, 865, 382 6, 865, 382 12, 970, 000 5, 6137, 004
2015 6, 599, 319 6, 599, 319 12, 635, 000 5, 3' 73, 806 2016 4, 190, 000 4, 190, 000 12, 635, 000 5, 0' 70, 256 2017 3, 925, 000 3, 925, 000 11, 455, 000 ( 4) 4, 7; i5, 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, 0! a3, 638 2020 3, 350, 000 3, 350, 000 9, 550, 312 3, 7 4, 895
2021 3, 050, 000 3, 050, 000 8, 873, 969 3, 3 33, 839
2022 2, 745, 000 2, 745, 000 8, 197, 626 3, 0: 2, 784
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
174
233

CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Business- type Activities
State Percentage
Revolving Capital Total Business- Total Primary of Personat Debt Per Fund Loan Leases type Activities Government Income Capita ( 3) 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% 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, 005, 297 18, 263, 105 21, 313, 105 37. 65% 748
5, 538, 385 16, 758, 795 19, 503, 795 30. 90% 623
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235

CITY OF LATHROP
Computation of Direct and Overlapping Debt
June 30, 2022
FY 2020/ 21 City Assessed Valuation 5, 107, 980, 342
Adjusted Assessed Valuation 5, 107, 980, 342
Percentage
Applicable to
Total Debt City of City's, 3hare of
Overlapping Tax and Assessment Debt 6/ 30/ 22 Lathrop( 1) Debt 6,130/ 2022 San Joaquin Delta Community College District 188, 480, 000 5. 189% $ 9, 780, 227 Manteca Unified School District 225, 734, 885 20. 848% 4"7, 061, 209 Tracy Unified School District 31, 345, 000 5. 426°/a 1, 700, 780 Banta School District 370, 000 68. 919% 255, 000
Manteca Unified School District Community Facility District No. 1989- 2 19, 520, 000 20. 749% 050, 205 Manteca Unified School District Community Facility District No. 2005- 4 4,945, 000 100. 000% 3, 945, 000 Banta School District Community Facilities District No. 2011- 1 4, 240, 000 100. 000% 4, 240, 000 River Islands Public Financing Authority Community Facilities District No. 2003- 1 251, 248, 493 100. 000% 25' 1, 248, 493 River Islands Public Financing Authority Community Facilities District No. 2015- 1 185, 110, 000 100. 000% 18: i, 110, 000 River Islands Public Financing Authority Community Facilities District No. 2019- 1 63, 625, 000 100. 000% 6: 3, 625, 000 River Islands Public Financing Authority Community Facilities District No. 2021- 1 35, 640, 000 100. 000% 3° i, 640, 000 City of Lathrop Community Facilities District No 2003- 1 5, 000, 000 100. 000% i, 000, 000 City of Lathrop Community Facilities District No 2003- 2 4, 960, 000 100. 000% 4. 960, 000 City of Lathrop Community Facilities District No 2018- 1, I. A. s 1- 5 45,640, 000 100. 000% 4° i, 640, 000 City of Lathrop 1915 Act Bonds 22, 475, 000 100. 000% 22. 475, 000 Reclamation District No. 17 Assessment District 21, 086, 256 55. 209% 11, 641, 511 California Statewide Community Development Authority 1915 Act Bonds 1, 902, 000 100. 000°/ a 1, 902, 000 Total Overlapping Tax and Assessment Debt $ 1, 111, 321, 634 69£i, 274, 425 Ratios to FY 2020/ 21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 13. 69%
Direct and Overlappin General Fund Obli ation Debt
San Joaquin County Certificates of Participation 60, 400, 000 5. 623% 3, 396, 292 Manteca Unified School District General Fund Obligations 15, 976, 000 20. 848% 3, 330, 676 City of Lathrop General Fund Obligations 2, 745, 000 100. 000% 2, 745, 000 Lathrop- Manteca Rural Fire Protection District Certificates of Participation 3, 490, 000 77. 225% 2, 695, 153 Total Direct and Overlapping General Fund Debt 12, 767, 121 Total Direct Debt 2, 745, 000
Total Overlapping Debt 708, 696, 546
Combined Total Debt 711, 441, 546
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. 05%
Combined Total Debt 13. 93%
Source: Califomia Municipal Statistics, Inc.
177
236

CITY OF LATHROP
Pledged- Revenue Coverage
Last Ten Fiscal Years
2000 Certificates of Participation/ PNC Bank Loan( 1)
Debt Service
Fiscal Water Revenue Less Operating Net Available
Year 3) Expenses( 4) Revenue Principal Interest Coveirage 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 2022 10, 763, 857 6, 591, 591 4, 172, 266 373, 803 115, 197 8. 53 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%. 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
178
237

CITY OF LATHROP
Pledged- Revenue Coverage
Last Ten Fiscal Years
2003 COP' s/ Pacific Premier Bank Loan& SRF Loan( 2)
Debt Service
Net Available
Revenue( 5) Principal Interest Coverage
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
3, 683, 266 1, 152, 348 392, 686 2. 38
179
238

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)
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%
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°/ a
2020 28, 503 566, 062 19, 859 9. 6%
2021 31, 331 631, 164 20, 145 5. 4%
Sources: ( 1) California State Department of Finance
2) 2010 and later- Income, Age and Education Data - US Census Bureau, most recent American Community Survey
180
239

CITY OF LATHROP
Principal Employers
Current Year and Nine Years Ago
2022 2013
Percent of Percent a f
Number of Total Number of Total
Employer Employees Employment Employees Employment
Tesla 3000 29. 13% 0 0. 00%
United Parcel Service ( UPS) 1500 14. 56% 0 0. 00%
Pflug Packaging 450 4. 37% 200 3. 03%
Army Air Force Exchange Services 400 3. 88% 0 0. 00%
Wayfair 400 3. 88% 0 0. 00%
Super Store Industries ( SSI) 375 3. 64% 401 6. 08%
California Natural Products ( CNP) 375 3. 64% 250 3. 79% Simwon America 336 3. 26% 0 0. 00%
MUSD ( Lathrop Schools) 333 3. 23% 0 0. 00%
CBC Steel Buildings 203 1. 97% 100 1. 52%
In- N- Out Burger 200 1. 94% 0 0. 00%
Ashley Furniture 190 1. 84% 0 0. 00%
Target 177 1. 72% 150 2. 27%
Diamond Pet Foods 163 1. 58% 100 1. 52%
City of Lathrop 158 1. 53% 92 1. 39%
Total EmploymenY' as used above represents the Estimated total employment of all employers located within City limits.

Source: California LaborMarket Information, California EDD Website( www. ca.gov) City of Lathrop Community Development Department
181
240

CITY OF LATHROP
Full- Time and Part- Time City Employees by Function
Last Ten Fiscal Years
Function 2013 2014 2015 2016
General Government 25. 50 23. 40 23. 60 24. 60
Neighborhood &
Community Services ( 1) 5. 00
Public Safety( 2) 30. 33 32. 00 36. 98 36. 98
Public Works 41. 00 21. 83 22. 83 29. 50
Community Development 23. 75 8. 34 6. 67 4. 00
Culture & Leisure 20. 64 18. 41 20. 76 21. 00
Total Positions 146. 22 103. 98 110. 84 116. 08
less Unfunded Positions ( 3) 53. 61
Net Employees 92. 61 103. 98 110. 84 116. 08
1) The Neighborhood & Community Services Department was created in March 2010 and later collapsed ini:o Public Works/ Community Development.
2) Police services are a contract service provided by San Joaquin County Sherriff Department. Fire SE rvice 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. 182
241

CITY OF LATHROP
Full- Time and Part- Time City Employees by Function
Last Ten Fiscal Years
2017 2018 2019 2020 2021 2022

23. 60 23. 60 24. 60 26. 60 28. 63 30. 63

37. 98 35. 98 36. 98 36. 98 36. 98 53. 68

30. 80 33. 80 40. 47 40. 47 42. 47 45. 47

3. 10 4. 10 4. 43 4. 43 4. 40 5. 40

20. 56 21. 01 21. 01 21. 01 28. 60 30. 60
116. 04 118. 49 127. 49 129. 49 141. 08 165. 78
116. 04 118. 49 127. 49 129. 49 141. 08 165. 78
183
242

CITY OF LATHROP
Operating Indicators by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:

Arrests 670 489 708 572 705 550 558 554 624
Parking Citations Issued 291 380 444 696 1, 385 1, 084 1, 389 1, 237 1, 489 Code Enforcement
Housing Cases 40 20 35 29 28 54 74 64 55 62
Public Nuisance Cases 213 61 206 287 345 204 126 165 210 176 Vehicle Cases 28 12 11 67 193 140 118 129 145 133
Weed Abatement Cases 5 2 108 122 126 124 120 123
Building Permits
Single Family Dwellings 146 130 350 220 291 392 381 649 879 924 Parks and recreation:

Number of recreation classes 49 202 34 56 67 116 126 95 72 176 Number of facility rentals 675 1, 870 542 450 390 1, 598 1, 388 1, 041 617 206 Water:

New connections 140 190 266 179 163 392 381 649 879 924 Average daily consumption 4, 014 3, 550 3, 508 3, 052 3, 274 4,200 4, 128 4, 128 4, 742 4, 812 thousands of gallons)
Sewer:

New connections 140 190 266 179 163 392 381 649 879 924 Transition to City of Lathrop, Police Department
Source: City of Lathrop, California departmental sources. 184
243

CITY OF LATHROP
Capital Assets Statistics by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Public works:

Streets( miles) 82. 80 82. 80 84. 20 84. 20 84. 20 92. 90 92. 90 97. 90 109. 70 113. 70 Streetlights 1, 433 1, 433 1, 448 1, 472 1, 472 1, 835 1, 835 1, 835 2, 135 2, 135 Parks and recreation:

Parks( 2) 14 16 16 16 16 18 20 22 25 25
Community centers 1 2 2 2 2 2 2 2 2 2
Senior centers 1 1 1 1 1 1 1 1 1 1
Water:

Water mains( miles) 101. 40 99. 60 101. 80 101. 80 101. 80 101. 80 142. 00 147. 00 159. 00 163. 00 Maximum daily capacity 21, 700 15, 250 15, 250 15, 250 15, 250 15, 250 16, 500 16, 500 16, 500 16, 500 thousands of gallons)
Wastewater:

Sanitary sewer( miles) 60. 40 62. 03 71. 00 71. 00 71. 00 71. 00 91. 80 96. 80 108. 80 111. 80 Miles of Reclaimed Water Lines 18. 33 21. 40 21. 80 21. 80 21. 80 21. 80 21. 80 25. 80 27. 80 29. 80 Maximum daily treatment capacity 2, 416 2, 416 2, 200 2, 200 1, 450 1, 450 3, 140 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 departmenta/ sources. 185
244

CITY OF LATHROP
Water Sold by Type of Customer
Last Ten Fiscal Years
in thousands of gallons)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Type of Customer:

Residential 740,938 690, 963 671, 095 628, 208 625, 187 745, 359 738, 530 794, 181 907, 150 939, 163 Industrial 329, 816 291, 935 343, 231 283,410 278,985 395, 110 415, 471 406, 181 435,637 433, 258 Commercial 107, 530 116,496 91, 599 71, 396 101, 549 139, 290 135, 130 145, 195 152,476 157, 053 Governmental 265, 931 157, 119 172, 972 177, 791 139, 511 149, 952 126, 761 144, 421 199, 298 187, 615 Construction 20, 995 39, 058 1, 615 49, 923 103, 309 91, 038 85, 601 36, 154 39, 357 Total 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, 730,715 1, 756,446 Total direct rate
per 1, 000 gallons $ 2. 45 $ 2. 63 $ 2. 63 $ 3. 04 $ 3. 49 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 Source: City of Lathrop, California Public Works Department 186
245

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) 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
2022 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
187
246

CITY OF LATHROP
Ten Largest Water Customers
Current Year and Nine Years Ago
2022 2013
Percent of
Water Total Water Percent of Total
Water Customer Charges Revenues Water Charges Water Revenue California Natural Products 1, 015, 960 10. 22% $ 562, 213 10. 75% City of Lathrop 651, 757 6. 56% 325, 850 6.23%
Manteca Unified School District 281, 589 2. 83% 172, 953 3. 31% Super Store Industries 128, 882 1. 30% 104, 619 2. 00%
River Islands Public Finance Authority 75, 445 0. 76% 30, 269 0. 58% Teichert Construction 73, 844 0. 74% 0. 00%
Tesla Motors I nc 71, 187 0. 72°/ a 0. 00%
DeSilva Gates Construction 64, 402 0. 65% 0. 00%
IN- N- OUT Burger# 804 55, 097 0. 55% 0. 00%
Swiss American Sausage 45, 144 0. 45% 41, 742 0. 80%
Source: City of Lathrop, California Finance Department
188
247

CITY OF LATHROP
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
2 22 2013
Business Name Business Category Business Name Business Category Percent of Fiscal Year Total Paid By Top 25 Accounts= 84.40% Percent of Fiscal Year Total Paid By Top 25 Accounts= 85. 77% Arco AM PM Service Stations Carpenter Textiles/ Furnishings Ashley Furniture Dist Center Fulfillment Centers CBC Steel Buildings Heavy Industrial Boral Roofing Contractors Chevron Service Stations
CBC Steel Buildings Contractors Creative Touch Interiors Home Furnishings Chevron Service Stations Dragon Esp Light Industrial/ Printers Chevron Power Market Service Stations Eagles Nest Harley Davidson Boats/ Motorcycles City Food& Liquor Convenience Stores/ Liquor Fast Lane Food/ Gas Mart Service Stations Eagles Nest Harley Davidson Boats/ Motorcycles Fleetpride West Trailers/Auto Parts Fast Lane Service Stations Joes Travel Plaza Service Stations Flying J Travel Plaza Service Stations JR Simplot Company Food Mfg.

Icon Health& Fitness Light Industrial/ Printers Kabaritis AM PM Service Stations In N Out Burger Quick- Service Restaurants Kaman Industrial Tech Corporatio Heavy Industrial Joes Travel Plaza Service Stations Lathrop Shell Service Stations Pape Kenworth New Motor Vehicle Dealers McDonalds Restaurants No Alcohol Raymond Handling Concepts Warehse/ Farm/ Const. Equip. Medcal Sales Medical/ Biotech Shell Service Stations Mikasa Japanese Bistro Restaurants Beer Ancl Wine Target Discount Dept Stores Save Mart Grocery Stores Liquor Tec Equipment Trailers/ Auto Parts Target Discount Dept Stores Tesla Motors Trailers/ Auto Parts Tec Stockton Trailers/ Auto Parts Top Gun Drywall Supply Building Materials Top Gun Drywall Supply Lumber/Building Materials Totten Tubes Heavy Industrial Tower Mart Service Stations Tri West Building Materials USAMotors. Com Used Automotive Dealers Tuff Boy Sales Trailers/ RVs Utility Trailer Sales Trailers/ RVs Two Guys Food& Fuel Inc Service Stations Valero Service Stations 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. 189
248

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190
249
ATTAC IMENT '" C "

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 Councii
City of Lathrop, California
We have audited, in accordance with the auditing standards generally accepted in the United State: s of America and the standards applicable to 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, 2022, and the related notes tc> the financial statements, which collectively comprise the City' s basic financial statements, and have issueci our report thereon dated March 31, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City' s internal control over financia reporting ( internal control) as a basis for designing audit procedures that are appropriate iri 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 nolt 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 managemen1t 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, iri internal control, such that there is a reasonable possibility that a material misstatement of the entity'; financial statements will not be prevented, or detected and corrected, on a timely basis. A significan t deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than ai 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 materiall 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. We identified certain deficiencies in internall control, described in the accompanying schedule of findings and responses as item 2022- 001 that we:
consider to be significant deficiencies.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City' s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Gouernment Auditincr Standards and which are described in the accompanying schedule of findings and responses as item 2022- 001.
vrrav a. l; i4,.,. f, r,=r r PI' ll'1'1 4fJ8 ` 3` ;;_ u "" 250
L L.::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
City of Lathrop, California' s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City'; s response to the findings identified in our audit and described in the accompanying schedule of findings anci questioned costs. The City' s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliancea 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.

Brea, California
March 31, 2023
251
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To the Honorable Mayor and Members of the City Council
City of Lathrop, California

SCHEDULE OF FINDINGS AND RESPONSES
Reference No.: 2022- 001 — Final Reconciliation and Review Process Condition:

During the audit, we found the following conditions that resulted in significant audit adjustments to thE financial statements:

Accuracv in External Financial Reaortinq
The year- end closing process did not ensure that account balances were reconciled and accurate in advance of the audit requiring adjusting journal entries to correct the final financial statements. It appears these errors were primarily caused by the trial balance being prepared from data that was not alway:
complete. The more significant entries identified include:

Adjustments to correct payable balances for unrecognized liabilities Inappropriately classified determinations of lease categories and future payment obligations
Criteria:

Management is responsible for the preparation and fair presentation, as well as the accuracy of its financial statements, including disclosures in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control; s relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. Timely preparation of the financial statements and disclosure; s is integral to the detection and prevention of error or fraud.

Cause of Condition:

Accounts were found to be inappropriately reconciled or reviewed during the audit.

Effect or Potential Effect of Condition:

Accounts payable, expenditures, and lease obligations would have been understated as of June 30, 2022.

Recommendation:

The City should include in their year- end close and audit preparation process a final review of account; payable and subsequent disbursements to ensure they have not missed a transaction which may have occurred outside of their normal tracking. The City should seek additional continuing education for personnel related to government auditing standards.

Client Response:

The City will restructure the year end close out process for Fiscal Year 2023 to include a final reconciliation prior to files being provided to auditing firm. The accounts payable transactions that were identified during the audit were attributed to capital project invoices received well after the City's established year end close out date. Staff was working off of prior recommendations that multiyear capital project invoices receivedl after the year end close out process could be charged to the ongoing project budget in the current fiscal period. The City will commit to perform a final accounts payable reconciliation prior to final audit fieldwork.

The inappropriately classified determinations of lease categories and future payment obligations pertain tc information technology equipment that was first thought to be a financing agreement at zero percent interesi:
but later was determined that the$ 1 buyout at the end of the contract period switched the agreement from purchasing terms to lease obligation under the new GASB 87 rules implemented in Fiscal Year 2022. The City of Lathrop Finance Staff is committed to maintaining full compliance with the requirements of Generally Accepted Accounting Principles and the Government Finance Officers Association best practices andl 252
L L.••.

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
auditing standards. Staff wili seek out continuing education opportunities to stay abreast of interpretation: s of Governmental Accounting Standards Board new pronouncements.

Evaluation of Finding:

Significant Deficiency X
Material Weakness
Material Noncompliance
Other Matters
253
i•
TT'A# NI E 1V" ' '
March 31, 2023
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-type activities, each major fund, and the aggregate remaining fund information of the City of Lathrop, California( the City) for the:
year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, GoUernment 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 July 22, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Sianificant Audit Matters
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 Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to leases, interest cost; s incurred before the end of a construction period, and component unit reporting by adopting Statement oF Governmental Accounting Standards( GASB Statement) No. 87, in fiscal year 2021- 2022. Accordingly, the; cumulative effect of the accounting change as of the beginning of the year is reported in the Statement oF Activities. 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 management' s knowledge and experience about past and current events and assumptions abou t 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 were:

Management' s estimates of its net pension liability and net other post-employment benefits OPEB) liability or asset are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability, net OPEB liability or 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 or Unusual Transactions
Management is responsible for the policies and practices used to account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021- 2022. ora+re. Islc sa=.: fi PrimeGlobal ( :' r, z , ;
254
LSL::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Difficulfies Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
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.

Management has corrected all such misstatements. In addition, we detected misstatements as a result of audit procedures which were significant and were subsequently corrected by management. The details of these misstatements are described in a separate letter dated March 31, 2023.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditinc 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.

Management Representations
We have requested certain representations from management that are included in the managemerrt representation letter dated March 31, 2023.

Management Consu/ tations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accountinq matters, similar to obtaining a " second opinion" on certain situations. If a consultation involves applicatiori of an accounting principle to the City' s financial statements or a determination of the type of auditor's opiniori that may be expressed on those statements, our professional standards require the consulting accountanit 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
We generally discuss a variety of matters, including the significant events or transactions that occurreal during the year, business conditions affecting the City and business plans and strategies that may affecl:
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.

Other Matters
We applied certain limited procedures to 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 nei:

OPEB liability and related ratios, and the schedule of OPEB plan contributions which are requiredl supplementary information ( RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparingi the information for consistency with management' s responses to our inquiries, the basic financiall 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. 255
SL::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
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 generall 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 financiai 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 2021- 2022 audit:

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 Reportinq for Internal Revenue Code Section 457 Deferred Compensation Plans.

The following GASB pronouncements are effective in the following fiscal years' audits and should be reviewed for proper implementation by management:

Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.

GASB Statement No. 94, Public- Private and Public- Public Partnerships and Availability Paymen,t Arrangement.

GASB Statement No. 96, Subscription- Based Information Technology Arrangements.

Fiscal year 2024
GASB Statement No. 99, Omnibus 2022.

GASB Statement No. 100, Accounting Changes and Error Corrections.

Fiscal year 2025
GASB Statement No. 101, Compensated Absences.
256
LSL::

To the Honorable Mayor and Members of the City Council
City of Lathrop, California
Restriction on Use
This information is intended solely for the use of the City Councii and management of the City of Lathrop and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Brea, California
257
258
CITY MANAGER' S REPORT ITEM 4. 5
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE MEMORANDUM OF UNDERSTANDING

WITH LATHROP POLICE OFFICERS ASSOCIATION,

ADOPT A BENEFIT PLAN FOR THE UNREPRESENTED

CLASSIFICATIONS OF COMMANDER AND

LIEUTENANT, AND ADOPT A RECRUITMENT

INCENTIVE PLAN FOR SWORN CLASSIFICATIONS
RECOMMENDATION: Adopt a Resolution Approving a Memorandum of Understanding ( MOU) with the Lathrop Police
Officers Association ( LPOA), Adopt a Benefit Plan for
the Unrepresented Commander and Lieutenant
Classifications, and Adopt a Recruitment Incentive
Plan
SUMMARY:

In March 2021, the City Council adopted Resolution 21- 4852 which approved the creation and funding of the Lathrop Police Department. City staff immediately began recruitment efforts and the transition process. Staff began onboarding Police Officers and Police Sergeants as early as in March 2022. The law enforcement transition from the Sheriff' s Office to the Lathrop Police Department concluded at the end of June 2022, as the new Police Department went live on June 29, 2022. The proposed MOU provided for approval with this staff report represents the first MOU negotiated with the LPOA.

The City Council of the City of Lathrop adopted Resolution 22- 5163, formally rescinding and replacing Resolution 91- 152, by amending the existing EmployeeEmployer Organization Relations Resolution ( EERR) to include Peace Officers and the right to be represented in separate units composed solely of such peace officers. The Lathrop Police Officer Association provided a Petition for Recognition and Certification as the exclusive employee organization representing the sworn positions of Police Sergeant and Police Officers. Pursuant to the EERR, the City Manager recognized the LPOA on October 24, 2022. Staff began negotiations with LPOA on November 2, 2022 and concluded on April 6, 2023. The Memorandum of Understanding ( MOU) presented to Council for consideration and approval has been ratified by the members of the LPOA.
259
CITY MANAGER' S REPORT PAGE 2
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

APPROVE RESOLUTION ADOPTING AN MOU WITH LPOA, BENEFT PLAN FOR

COMMANDER AND LIEUTENANT CLASSIFICATIONS, AND RECRUITMENT

INCENTIVE PLAN
Resolution 23- 5242 approved a Sworn Compensation Plan to be used for the recruitment of sworn classifications and included incentive pay for POST certifications, education, uniform allowance and sick leave conversion at retirement.

This plan expires upon adoption of the LPOA MOU. Since certain benefits were extended to the Commander and Lieutenant, which are unrepresented classifications, a benefit plan should be adopted to continue to offer these benefits to those classifications.

The Sworn Compensation Plan also included recruitment incentives offered to sworn candidates to attract them to employment with the Lathrop Police Department. In order to continue to offer recruitment incentives to qualified candidates a recruitment incentive plan should be adopted.

BACKGROUND
The City Council approved the creation of the Lathrop Police Department in March 2021 and this initiated the transition away from contracted police services with the San Joaquin County Sheriff' s Department to our own police department. After extensive recruitment efforts, all lateral staff were hired, and the Lathrop Police Department began servicing the community on ] une 29, 2022.

Included in this report is a proposed MOU that is the result of good faith meet and confer negotiations with the LPOA pursuant to the California Government Code and the Employee- Employer Relations Resolution ( EERR) 22- 5163 adopted by the City Council. Pursuant to the City of Lathrop EERR, the City Manager recognized LPOA as the exclusive recognized employee organization and bargaining representative for Police OfFicers and Sergeants on October 24, 2022 and negotiations began on November 2, 2022.

The MOU establishes wages, hours, benefits and other terms and conditions of employment for employees represented by the LPOA. The MOU includes, but is not limited to, the following:

Term of Agreement ( expiring 7/ 1/ 26 to coincide with the term of the MOU' s with other bargaining units)
Compensation
0 4% COLA' s which are the same as the other city employee MOU' s o Overtime
o Special assignment pay
o POST Certification pay
o Education Incentive Pay
o Holiday Pay
o Call back and Stand- by pay
o Education Reimbursement
260
CITY MANAGER' S REPORT PAGE 3
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

APPROVE RESOLUTION ADOPTING AN MOU WITH LPOA, BENEFT PLAN FOR

COMMANDER AND LIEUTENANT CLASSIFICATIONS, AND RECRUITMENT

INCENTIVE PLAN
In order to aid in the recruitment process, the City Council adopted a Sworn Compensation Plan that has been updated and extended through the process of hiring sworn staff. This document outlines certain pay and benefits that are typically included as part of a negotiated MOU. Since an association for the Police Officers and Sergeants was not formed until after the majority of the current Police Officers and Sergeants were hired, and it is a new department, there was not an MOU in place at that time. While the MOU will replace the items contained in the Sworn Compensation Plan for those positions represented by LPOA, certain benefits were also extended to the unrepresented classifications of Commander and Lieutenant. Staff proposes that Council adopt a benefit plan to include certain benefits to be provided to these classifications.

The Sworn Compensation Plan also included recruitment incentives for hiring sworn staff. In a competitive market for sworn classifications, staff is recommending that a recruitment incentive plan be adopted to continue to offer these valuable recruitment incentives. This plan can be implemented, as necessary, at the discretion of the City Manager based on the need to offer such incentives.

REASON FOR RECOMMENDATION:

City Staff and LPOA have negotiated in good faith since November 2, 2022. We have agreed upon terms and conditions that are in the best interest of both parties to provide competitive compensation and benefits to the employees represented by this proposed MOU. With the expiration of the current Sworn Compensation Plan, staff is recommending that a benefit plan be adopted to continue to offer certain benefits to the unrepresented classifications of Commander and Lieutenant. Additionally, the adoption of a recruitment incentive plan will allow the City to offer certain benefits for sworn staff positions. This will allow the City to remain competitive in the current market for sworn classifications.
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CITY MANAGER' S REPORT PAGE 4
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING

APPROVE RESOLUTION ADOPTING AN MOU WITH LPOA, BENEFT PLAN FOR

COMMANDER AND LIEUTENANT CLASSIFICATIONS, AND RECRUITMENT

INCENTIVE PLAN
FISCAL IMPACT:

The financial impact to the City contained in the compensation section above and during the term of the proposed MOU is shown in the table below:
1 1 1 1
Total 151, 501 630, 243 655, 452 681, 670
ATTACH M ENTS:

A. Adopt a Resolution approving the MOU with LPOA, a Sworn Compensation Plan for Unrepresented Classifications of Commander and Lieutenant Classifications, and a Recruitment Incentive Plan
B. Lathrop Police Officers Association MOU
C. Benefit Plan for Commander and Lieutenant Classifications D. Recruitment Incentive Plan
262
CITY MANAGER' S REPORT PAGE 5
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
APPROVE RESOLUTION ADOPTING AN MOU WITH LPOA; BENEFT PLAN FOR

COMMANDER AND LIEUTENANT CLASSIFICATIONS, AND RECRUITMENT

INCENTIVE PLAN
APPROVALS:

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Jul a a Burns Date
Director of Human Resources
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Cari a s Date
Directo f Finance
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Salvador Navarrete Date
City Attorney
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S en J. Salvatore Date
City Manager
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ATTACHMENT A
RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO

APPROVE MEMORANDUM OF UNDERSTANDING ( MOU) WITH THE LATHROP

POLICE OFFICERS ASSOCIATION ( LPOA), ADOPT A BENEFIT PLAN FOR THE

UNREPRESENTED COMMANDER AND LIEUTENANT CLASSIFICATIONS, AND

APPROVE RECRUITMENT INCENTIVES
WHEREAS, in March 2021, the City Council adopted Resolution 21- 4852 which approved the creation and funding of the Lathrop Police Department; and WHEREAS, staff began onboarding Police Officers and Police Sergeants as early as March 2022 and the Association for the Police Officers and Sergeants was not formed until after the majority of the current Police Officers and Sergeants were hired. Since it was a new department, there was not an MOU in place at that time; and
WHEREAS, pursuant to the City of Lathrop Employee Employer Relations Resolution, the City Manager recognized LPOA as the exclusive recognized employee organization and bargaining representative for Police Officers and Sergeants on October 24, 2022; and
WHEREAS, City staff and representatives of LPOA met and conferred in good faith to establish an MOU which establishes wages, hours, benefits and other terms and conditions of employment for employees represented by the LPOA; and WHEREAS, the term of the proposed LPOA MOU would be April 15, 2023 to July 1, 2026 to coincide with the expiration date of the MOU' s with LMCEA and SEIU; and
WHEREAS, adopting a Benefit Plan for the unrepresented classifications of Commander and Lieutenant will allow those classifications to continue to receive certain benefits including incentive pay for POST certifications, education incentive pay, uniform allowance and sick leave conversion at retirement; and WHEREAS, adopting a Recruitment Incentive Plan will allow the City to continue to offer recruitment incentives at the discretion of the City Manager to be implemented as necessary based on the need to ofFer such incentives; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve the proposed MOU with LPOA, adopts a Benefit Plan for the classifications of Commander and Lieutenant, and adopts a Recruitment Incentive Plan.

Resolution 23-
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The foregoing resolution was passed and adopted this 10t'' day of April 2023, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
v—
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution 23-
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ATTACHMENT B

CITY OF LATHROP &

THE LATHROP POLICE OFFICERS ASSOCIATION

MEMORANDUM OF UNDERSTANDING
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TERM
APRIL 15, 2023 TO JULY 1, 2026
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Contents
ARTICLE I. PARTIES TO MEMORANDUM OF UNDERSTANDING.................................................................... 1 ARTICLEII. RECOGNITION.............................................................................................................................. 1 ARTICLE III. STATE AND FEDERAL LAW COMPLIANCE................................................................................... 1 ARTICLEIV. CITY RIGHTS............................................................................................................................... 1 ARTICLE V. DISCRIMINATION ........................................................................................................................ 1 ARTICLEVI. TERM.......................................................................................................................................... 1 ARTICLE VII. WORK PERIOD........................................................................................................................... 1 ARTICLE VIII. WORK SCHEDULE..................................................................................................................... 2 A. Regular Workweek Police Professional Staff..................................................................................... 2 B. Regular Workweek for Patrol............................................................................................................ 2 ARTICLEIX. WAGES ....................................................................................................................................... 2 A. Salaries............................................................................................................................................... 2 B. Step Increases.................................................................................................................................... 2 C. Promotions........................................................................................................................................ 2 D. Overtime Compensation.................................................................................................................... 3 E. Special Assignment Pay..................................................................................................................... 3 F. Cumulative benefits:.......................................................................................................................... 3 G. Bilingual Premium Bilingual Pay 2. 5% ............................................................................................... 3 H. Educational Incentive ........................................................................................................................ 4 I. Peace Officer Standard Training Certificate Pay................................................................................ 4

1. Court Appearance Pay....................................................................................................................... 4 K. Holidays ............................................................................................................................................. 5 L. Employees Working Holidays............................................................................................................ 6 M. Floating Holiday................................................................................................................................. 6 N. Uniform.............................................................................................................................................. 6 O. Call back Pay...................................................................................................................................... 6 P. Standby/ On- call Pay.......................................................................................................................... 6 Q. Deferred Compensation .................................................................................................................... 7 R. Shift differential................................................................................................................................. 7 ARTICLE X. HEALTH BENEFITS........................................................................................................................ 7 ARTICLEXI. SICK LEAVE ............................................................................................................................... 10 ARTICLE XIII. SICK LEAVE CONVERSION AT RETIREMENT............................................................................ 10 i
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ARTICLE XIV. WORKERS COMPENSATION................................................................................................... 10 ARTICLE XV. MILITARY LEAVE...................................................................................................................... 10 ARTICLEXVI. PROBATION............................................................................................................................ 10 ARTICLE XVII. ASSOCIATION DUES.............................................................................................................. 11 ARTICLE XVIII. CATASTROPHIC LEAVE BANK............................................................................................... 11 ARTICLE XIX. EDUCATION REIMBURSMENT................................................................................................ 12 ARTICLEXX. SHIFT BIDDING ....................................................................................................................... 13 ARTICLE XXI. VACATION REQUESTS............................................................................................................ 13 ARTICLE XXII. VACATION, SICK LEAVE AND COMPENSATORY TIME OFF................................................... 13 APPENDIXA:................................................................................................................................................ 13 FINALAGREEMENT...................................................................................................................................... 14 ii
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ARTICLE I. PARTIES TO MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is entered into by and between the CTTY OF LATHROP, a municipal corporation, hereinafter referred to as" CITY", and the LATHROP POLICE OFFICERS ASSOCIATION, hereinafter referred to as " ASSOCIATION OR POA", pursuant to Government Code 3500, et seq. This Memorandum of Understanding applies to those classes of employment set forth in Appendix " A" attached hereto and made part hereof.

ARTICLE II. RECOGNITION
The Association is the formally recognized employee organization for the Police Employees Unit.

The City Manager or designated representative is the representative of the City of Lathrop in employer- employee relations matters.

ARTICLE III. STATE AND FEDERAL LAW COMPLIANCE
This Memorandum of Understanding complies with the provision of Section 3500, et seq., of the Government Code of the State of California, in that parties have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment for the employees.

Further, the parties understand that the terms of this agreement must comply with the legal requirements of State and Federal law. In the event that a term of this agreement does not comply with legal requirements, the parties shall promptly meet to update the invalid language.

ARTICLE IV. CITY RIGHTS
The rights of the City include, but are not limited to, the exclusive right to determine the mission of the its constituent departments, commissions, and boards; set standards of service; determine the procedures and standards of selection for employment and promotional; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of governmental operations determine the methods, means, and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; and to exercise complete control and discretion over its organization and the technology of performing its work. The City' s use of its rights shall be consistent with the City' s adopted Personnel Rules.

ARTICLE V. DISCRIMINATION
The City and LPOA agree not to discriminate against any employee for Association activity or on the basis of race, color, national origin, ancestry, sex ( including gender identity), religion, creed, physical or mental disability, medical condition, marital status ( including registered domestic partner status), sexual orientation, age, or any other basis protected by federal, state ar local law ARTICLE VI. TERM
Memorandum of Understanding incorporates all modifications regarding wages, hours, and other terms and conditions of employment. This Memorandum of Understanding shall be effective April 15, 2023 ( the first full pay period following City Council approval) and shall expire July 1, 2026.

ARTICLE VII. WORK PERIOD
City of Lathrop law enforcement employees have a 28- day work period. 1 269
ARTICLE VIII. WORK SCHEDULE
A. Regular Workweek Police Professional Staff
The normal workweek for Police Professional Staff is defined as either the traditional workweek consisting of 8 hours per day, 5 days per week; the alternate 9/ 80 work schedule consisting of 9 hour work days Monday through Thursday, 8 hour workday on Friday with every other Friday off; or the 4/ 10 schedule consisting of 10 hour work days, Monday- Friday.

Where operational requirements of a department require deviations from the present schedule, the City Manager may institute alternate work schedules, consistent with provisions of the State Law.

B. Re ular Workweek for Patrol
The available work schedules for patrol are 4/ 10' s or 3/ 12' s. Where needs of the department require deviations from the present schedule, the Chief of Police may institute alternate wark schedules, consistent with operational needs, and/ or by provisions of department policy, or state law. The Chief of Police may change the beginning and ending times of a shift after providing written notification to LPOA.

LPOA reserves the right to Meet and Confer in regard to the scheduled for a 4- 10 schedules on expiration of this contract.

ARTICLE IX. WAGES
A. Salaries
There shall be a four percent( 4%) cost- of-living increase for Fiscal Year 2023, 2024 and 2025; beginning the first full pay period in July 2023, July 2024 and July 2025.

B. Step Increases
Step increase will be issued upon completion of probationary period. Non- probationary step increases will be issued upon completion of 12 months of full-time satisfactory service in the employee' s current step of the salary range and upon recommendation of the department head, the employee shall advance to their next step in the salary range.

Step increases are recommended by the Police Chief and approved by the City Manager.

C. Promotions
An employee who is promoted from one class to a class in a higher range shall be entitled to the step in the higher range which will result in a base salary increase not less than one full step; the salary increase shall be equivalent to at least five percent ( 5) but not more than the maximum rate for that class.
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D. Overtime Compensation
When the number of hours worked by law enforcement employees exceeds eighty ( 80) hours in a 14- day pay period, and the supervisor has approved those hours, the excess hours are considered MOU overtime rather than FLSA overtime.

For purposes of MOU overtime, the City shall consider vacation, holiday, and compensatory time off as hours worked. Over time is based on the employee' s regular rate of pay at 1 ' h.

Base pay is the employee annual salary schedule calculated on an hourly rate. Regular rate of pay is base rate plus all additional compensated items required under FLSA calculations.

E. S ecial Assignment PaX
Employees assigned to a specialized assignment shall receive an additional5% of their regular pay rate during the period of assignment to recognize the more difficult scope of work and higher level of responsibility that is required of specialized assignments. Specialized assignment pay shall be received by employees assigned by the Police Chief in the following special assignments:

Canine Pay * Safety Officer Training Premium
Community Resource Officer Field Training Officer)**
Detective and Detective Sergeant School Resource Officer Motorcycle Patrol SWAT Officer
Canine Pay: The parties agree to meet during the term of this agreement to address canine assignment pay.

Officers assigned to Field Training will only receive the special assignment pay when performing the assigned duties of a Field Training Officer.

F. Cumulative benefits:

A maximum of 5% Special Assignment pay will be provided for this benefit. The Specialty Assignments are not stackable.

G. Bilin ual Premium Bilin u
al Pav 2. 5°10
City agrees to pay 2. 5% special compensation for using their skills in a language other than English under the following conditions:
i. The employee must be certified to speak, write and read in the language for which pay is be provided; and
ii. Following a request by the employee, the Department Head, as approved by the City Manager, must determine that the language is a certified language and that there is a benefit to the City for the employee to provide translation services in the language for which compensation is requested; and
iii. The City has approved the certification process to be used by the employee in advance of the certification being obtained.
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H. EducationalIncentive
The City will pay a 2.S o incentive on the existing salary step for sworn employees who possess an Associates of Arts degree. The City will pay a 5% incentive on existing salary step and range for swarn employees with a Bachelor' s Degree or higher. A maximum of 5% education incentive will be provided for Education Incentive.

I. Peace Officer Standard Training Certificate PaX
Officers ( Maximum 5°Io): Sergeants ( Maximum 5°Io):

2. 5% Intermediate Certificate 2. 5% Advanced Certificate

2. 5°Io Advanced Certificate 2. 5°Io Supervisory Certificate J. Court Appearance Pay
i. Court appearances before or after shifts: Represented employees who make a court appearance either thirty ( 30) minutes before the start of their scheduled shift or 30 minutes after the end of their scheduled shift, shall receive four ( 4) hours at one and one half times the employee' s regular hourly rate of pay or the actual time spent for the court appearance, whichever is greater.
ii. Court appearances on scheduled da.: Represented employees who make a court appearance on their regularly scheduled day off shall receive four ( 4) hours at one and one half times the employee' s regular hourly rate of pay, or the actual time spent for the court appearance, whichever is greater.
iii. Telephonic court appearances: Employees served with a telephonic subpoena which requires the completion of a telephone call on the employee' s off-duty time and does not require the employee' s physical appearance in court or in any other administrative venue, shall be compensated for a minimum of two ( 2) hours of pay at one and one half times ( 1- 1/ 2) the employee' s regular hourly rate of pay. iv. Court Stand- By Pa Employees who are required to be on stand- by for court appearances shall be compensated for a maximum of two ( 2) hours of pay at one and one half times ( 1- 1/ 2) the employee' s regular hourly rate of pay. v. Cancellations: Court cancellations are not subject to schedule or callback overtime compensation. The City does not have control over Court cancellations. If such Court appearance is cancelled and notification is given after 5: 00 PM the workday immediately preceding the appearance, the employee shall be paid a minimum of two 2) hours of overtime. For Court appearance cancellations with notice before 5: 00 PM the workday immediately preceding the appearance, the employee shall receive no additional compensation. It is the responsibility of the employee to confirm court appearances.
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i. Multiple Subpoenas: Multiple subpoenas covering the same case in the day or multiple subpoenas for either the morning or the afternoon do not count as the separate incidents for purposes of minimum compensation. However, a subpoena to attend court for a second case in the afternoon will count as a separate incident and 4 hours of minimum court appearance compensation will apply.

K. Holidays
The City recognizes that various special occasions occur during the course of a year which warrant special celebrations and/ or observances. These occasions are generally designated by Federal and/ or State Statute, or by tradition. In order to acknowledge these occasions, the City has determined that it will recognize certain holidays throughout the year and allow City employees to observe these occasions by granting employees time off work, with pay or giving an additional day' s or shift' s pay.

Any day designated as a paid holiday by the City Council shall be considered a legal holiday for City employees.

The City shall observe the following holidays:

HOLIDAY DATE OBSERVED
New Year' s Day January 1
Martin Luther King Jr. Day 3rd Monday in January
Washington' s Birthday 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day lst Monday in September
Veteran' s Day November 11 th
Thanksgiving Day 4th Thursday in November
Day after Thanksgiving 4th Friday in November
December 24 December 24
December 25th December 25
December 31 New Year' s Eve
If a holiday falls on a Sunday, the following Monday will be observed as the holiday, except that if December 24th or December 31st falls on Sunday, the preceding Friday will be observed as the holiday. If a holiday falls on Saturday, the preceding Friday will be observed as the holiday. If December 24th or December 31 st falls on Friday, the preceding Thursday will be observed as the holiday.
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L. Employees Working Holida
Regular full-time patrol officers required to work on a holiday may be permitted to take a different day as the holiday, accrue the time as compensatory time or be compensated for the holiday as approved by the Department Head. Compensation shall include ten ( 10) or twelve 12) hours of Holiday Pay ( based on employee work schedule), for full-time employees, plus time and a half( 1- 1/ 2) their regular rate of pay for the number of hours actually worked.

M. Floatin H olidaX
Employees shall be entitled to one ( 1) floating holiday to include ten ( 10) or twelve ( 12) hours based on employee work schedule) each Fiscal Year. Floating Holiday time shall be accrued during the pay period that includes July 1 st. New employees hired after July 1 st shall not accrue a floating holiday until the following July 1 st.

Floating holidays accrued shall be available for use the first day following the pay period in which they are accrued, and shall be scheduled at a time mutually agreed upon between the employee and Supervisor/ Department Head.

Floating holiday hours must be used in the fiscal year they are received. Any Floating holiday hours remaining at June 30th shall be rolled over into the employee' s vacation bank.

N. Uniform
The City will provide a uniform allowance of$ 1, 200 per year. Uniform allowance will be a onetime payment, paid the first pay period in January, beginning in January 2024.

O. Call back Pav
All represented employees required to report for an unscheduled shift shall be compensated in the amount of one and one half( 1- 1/ 2) times their regular hourly rate of pay for three ( 3) hours far call back or the number of hours actually worked, whichever is greater. For calculation purposes, the compensation period for a call back while off duty under this section commences at the time the employee is notified four( 4) hours prior to shift and ends when the officer is no longer needed.

This Section will not apply if the employee is being called back to complete work that should have been finished prior to the end of his/ her shift.

Employees required to conduct departmental business by telephone while off duty shall be compensated to the nearest twelve ( 12) minute increment pursuant to the Fair Labor Standards Act.

P. Standby/ On- call PaX
Officers, Sergeants and Detectives assigned to standby/ on- call shall be compensated at$ 3 per hour for each hour assigned to standby/ on- call duty. Standby/ on-call pay is subject to City Manager approval.
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Q. Deferred Compensation
Laterals exiting a 3% @ 50 pension plan or 3% @ 55 pension plan, or were members of a Public Agency Retirement system prior to January 1, 2013 ( Pre- PEPRA) the City will offer 3, 000 ($ 115. 39 bi- weekly) deferred compensation contribution on an annual basis.

Contribution will be prorated and paid bi- weekly:

R. Shift differential
Graveyard shift differential for purposes of this section is defined as a shift of ten( 10) or twelve 12) hours when assigned to a graveyard shift.

Any employee who works an assigned regular time shift as described above, shall be paid an additional five percent ( 5%) of their base hourly rate for each hour actually worked. No shift differential will be paid on sick leave, vacation, CTO, Holiday or any other time off.

ARTICLE X. HEALTH BENEFITS
A. Health Insurance Options: The City shall provide an option for health insurance coverage for eligible employees and dependents. All health and health- related plan or benefit years shall coincide with the calendar year.

B. Premium: The City will increase the maximum amount that it will pay for all benefits (medical, dental, and vision) currently$ 1, 915 The City will increase the maximum amount that it will pay for all benefits ( medical, dental, vision) to one half( 1/ 2) of any Ca1PERS, Region 1, San Joaquin County plan ( excluding PORAC) premium increases during the term of this MOU, but not to exceed an annual increase of six and one half( 61/ z° Io) percent.

C. Cafeteria Benefits Plan: The City shall provide represented employees a cafeteria benefits plan that will be funded with the Ciry' s employer' s health benefit contribution.

1. The City shall maintain a Cafeteria Benefits Plan for each represented employees in regular employment status. Monies in and employee' s Cafeteria Benefit Plan shall first be used for the following purposes:

2.C. 1. 1 Medical insurance.

2.C. 1. 2Dental insurance.

2.C. 1. 3 Vision insurance.

2. Upon first providing proof of inedical, dental and vision insurance coverage to the City' s Human Resource Department, whether it be from the employee' s Cafeteria Benefits Plan or a spouse/ partner/ parent' s employer provided health benefit program, a representative employee may elect to use up to 35% of the City' s health plan contribution to the Cafeteria Benefits Plan for one or more of the following purposes:

2. C. 2. 1 Payments on the employee' s behalf to the City of Lathrop' s deferred compensation providers;

2. C. 2. 2Payment to the City' s 125 plan administrator for reimbursement of the Internal Revenue Code 125 eligible dependent care; or

2. C. 2. 3 As a taxable cash payment of the unused balance. 7 275

3. Each represented employee shall provide the Human Resource Department in writing, on a form provided and at times designated by the City each year, all information necessary to administer the Cafeteria Benefits Plan during the 12 month period beginning the first day of each plan benefit year.

4. Each represented employee shall be responsible for providing immediate written notification to the Human Resources Department of any change to the number of his/ her dependents which affects the amount of the City payment on the behalf of the employee. Changes in the cafeteria benefit payments required because of a change in an employee' s number of dependent shall take effect at the start of the first pay period in the month next following the month in which notice from the employee was received by the Human Resources Department. No retroactive payments shall be allowed.

D. Effective Date of Covera e: The effective date of coverage for new employee health, dental, and vision insurance plans shall be in the month next following the date of appointment to employment as a regular employee.

E. Dental and Vision Insurance: The City provides dental and vision insurance that is on a calendar plan year. When an employee enrolls in either program, he/ she is expected to remain enrolled during the term of this MOU, unless a permissible event, as described in the plan, allows the employee to withdraw or modify coverage.

F. Life Insurance:

Employees with more than 30 days of employment with the City shall receive an amount of group term life insurance equal to the amount of their annual salary.

G. State Disability Insurance:

The City shall purchase, and pay the full premium for, State Disability Insurance ( SDI). SDI provides weekly benefits in the event an employee is unable to work due to an illness or injury that is not job-related. Employees receiving benefits from SDI and who are supplementing those benefits with accrued leave time to receive a full paycheck shall receive the City's contribution to their Cafeteria Benefits Plan.

H. Flexible Benefits:

Employees may participate in a flexible benefit program( as allowed and prescribed by Section 125 of the Internal Revenue Code and applicable IRC sections and regulations) that permits the payment of unreimbursed eligible dependent care costs and/ or insurance premiums with pre- tax dollars. This flexible benefit program may be expanded, provided that there is no cost to the City, to include other unreimbursed expenses permitted by the Internal Revenue Code and its related regulations. Any Internal Revenue Code amendments that affect these deductible medical expenses and/ or City liability shall void that portion of the flexible benefit program.
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L Continuation of Insurance Benefits While on Leave of Absence:

When an employee is on an authorized leave of absence without pay, the employee shall be allowed at the employee' s own expense to remain under the health, dental, vision and life insurance coverage for up to twenty six ( 26) bi- weekly pay periods provided that such employee shall pay the applicable premiums at least two ( 2) weeks prior to the premium due date. Specific arrangements for such coverage shall be made with the Finance Department.

Employees who must pay either all or a portion of their health, vision, dental and life benefits shall either arrange for the payment to be deducted from their paychecks or, if the amount of the paycheck is not sufficient, pay those benefits to the Human Resources Department twice per month at least two( 2) weeks prior to the premium due date. Failure to pay for these benefits two ( 2) weeks prior to each premium due date shall result in cancellations of the insurance J. Other Post- Employment Benefits —" OPEB"
In an effort to maintain fiscal solvency, the City will maintain post-employment benefit obligations in the following manner:

1. Maintain Irrevocable Trust Fund established by the City. —Medical Benefits a. Ca1PERS to administer

2. Continue funding OPEB contributions and annual required contribution for term of agreement:

3. Other Post- Employment Benefits
a. Medical post- retirement age eligible at 55
i. All employees retiring after Dec. 31, 2014
ii. All new hires
b. Post- retirement medical for all represented employees:
i. Retiree + 1
ii. City- paid retiree medical 55- 65 = same health benefits premium contribution as active employees; continue existing City and employee contributions; City will pay one half ( 50%) of the difference in premium increase up to 6.5°Io; tied to the average plan cost. City-paid medical at Medicare eligibility ( 65) = The City will pay the Ca1PERS Minimum Employer Contribution ( i. e., $ 151/ month in 2023)
iii. Retiree is responsible for paying the cost of inedical premiums as established by Ca1PERS.
iv. The City will process a reimbursement through the designated third- Party Administrator ( TPA). The TPA will process the reimbursement to the retiree on or about the lst of each month.

4. Maintain Post- Retirement Benefit Schedule
a. Vesting based on years of service; 25% @ 5 yrs., 50% @ 10 yrs., 100% @ 15 yrs. b. The benefit stipend is a dollar amount equal to 100% of active average plan cost, by category; i.e. retiree + 1
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ARTICLE XI. SICK LEAVE
Employee shall accrue 96 hours of sick leave annually ( accrued bi- weekly). Upon accumulation of 96 hours of sick leave, up to 40 hours may be converted to vacation as outlined in the City' s Personnel Rules and Regulations.

ARTICLE XIII. SICK LEAVE CONVERSION AT RETIREMENT
An employee who retires with at least ten ( 10) years of City Service may elect one of the following options:

A. Convert all accrued sick leave to a medical insurance bank. The value of the medical insurance bank shall be determined by multiplying the number of accrued sick leave hours by the employee' s hourly rate of pay. The retired employee and their dependents shall be entitle to continued insurance coverage, dental and / or vision coverage currently in effect, with premiums for such coverage being deducted from the medical insurance bank until said bank is exhausted. Thereafter, the retiree and their dependents may continue in the City' s group health plan, at group rates, provide the City receives the retiree' s payment for the premium by the l0th of each month for the following month' s coverage.

B. Convert to CALPERS service credit per the City' s current contract. Terms of the Policy Agreement with the City' s insurance carrier regarding coverage and eligibility shall apply to the retiree and their dependents.

ARTICLE XIV. WORKERS COMPENSATION
Employees' worker compensation benefits for bargaining unit members are provided and governed by California Labor Code, including Labor Code section 4850.

ARTICLE XV. MILITARY LEAVE
Military leave shall be granted in accordance with provisions of State and Federal laws. For purposes of this section, " military duty" applies to both " active" and " inactive" military duty.

Employees who are ordered to active military duty shall provide the City with a copy of the Orders.

Employees who are required to engage in weeknight of weekend military drills as part of their inactive military duty, shall provide the City with documentation of the requirement. All employees entitled to military leave shall give the Chief an opportunity, within the limits of military regulations, to determine when such leave shall be granted. An employee on military leave of absence will be entitled to receive City salary for the first 30 calendar days of such absence. Pay for such purposes shall not exceed 30 days in any one fiscal year.

ARTICLE XVI. PROBATION
All appointments, promotional appointments and reappointments shall be tentative and subject to a probationary period dated from the time of appointment to a regular full- time or regular parttime position. The probationary period for new appointments shall be for 15 months of actual service The City Manager, upon written request of the Police Chief may grant an extension of the probationary period up to a maximum of six ( 6) months beyond the end of such probationary period, for a maximum total probation of 21 months.
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The probationary period for promotional appointments and reappointments shall be for a twelve 12) month period of actual service. The City Manager, upon written request of the Police Chief, may grant an extension of the probationary period up to a malcimum of six ( 6) months beyond the end of such probationary period, for a maximum total probation of( 18) months.

ARTICLE XVIL ASSOCIATION DUES
It is mutually agreed that the City will, deduct dues from the pay of those employees who individually provide written authorization for such dues in an amount certified to be current and correct by the President of the POA or their designee. There shall be no more than one deduction per pay period and the total of such deductions shall be remitted by the City to the POA. The Association shall indemnify, defend, and hold the City harmless against any and all claims, demands, suits, orders, damages or judgments, or other forms of liability that arise out of or by reason of this Dues Deductions section, or action taken or not taken by the City under this Section. This includes, but is not limited to, the Ciry attorney' s fees and costs.

ARTICLE XVIII. CATASTROPHIC LEAVE BANK
Conditions of Participation:

Application for receipt of catastrophic leave donations will be processed by the Human Resources Department.

An employee becomes eligible to receive catastrophic leave donations when the employee has exhausted or will soon exhaust all his/ her accrued leave, as a result of verifiable longterm illness or injury suffered by the employee An employee may request catastrophic leave donations, when the employee has exhausted ar will soon exhaust all his/her accrued leave, as a result of verifiable long-term illness or injury suffered by the employee' s spouse, children ( biological, adopted, legal guardian), or register domestic partner. Catastrophic leave bank is voluntary and it shall be the responsibiliry of the sworn member to provide proof of eligibility to Human Resources.

Utilizing catastrophic leave on behalf of a spouse, domestic partner, or children shall not exceed 3 months. Any extensions beyond 3 months, must be approved by the City Manager.

Donation of Time:

Employees may donate accrued vacation, or compensatory time: sick leave may not be donated.

Donations may be made in whole hour increments from a minimum of four ( 4) to maximum of sixteen ( 16) hours per donor.

Donors must have an overall leave balance of 80 hours remaining after donated time has been deducted.

Once donated to an individual, donated leave cannot be reclaimed by the donar.

Cumulative total of donated time received by the employee cannot exceed the minimum amount of time needed by verification of the doctor.
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Processing of Donations:

Upon receipt of an application for use of this section, Human Resources shall verify that the employee has a long- term illness or injury that requires leave under this program.

Upon verification, the Human Resources Department shall notify Payroll of the eligibility of the employee to receive catastrophic leave donations.

Upon receipt of donation authorizations, Payroll shall take the following actions:

Verify that the donating employee has the minimum required leave balance required for the donation and convert donated time dollars at the hourly rate of the donor and subtract from the designated leave category. Pay supplements which are a percentage of base salary ( except above class pay and special assignment pay) shall be added to the base salary prior to converting the value of the donated time to the recipient.

1. Convert donated dollars as computed above to work hours at the hourly rate of the recipient and add the recipient' s sick leave balance.

2. Notify departments of changes in leave balances by noting payroll adjustments for the next payday.

3. Retain a confidential file of donation authorization.

Treatment of Donated Time:

Donated time is treated as sick leave accrued by the recipient of the donation.

Donated time does not alter the employment rights of the county of the recipient, nor extend or alter limitations otherwise applicable to Leaves of Absence of Sick Leave, except as noted in this agreement.

Employees who are utilizing donated sick leave hours will continue to accrue vacation and sick leave in accordance with the provisions of this Memorandum of Understanding; however, they will not be eligible to receive sick leave conversion.

ARTICLE XIX. EDUCATION REIMBURSMENT
Educational Reimbursement In accordance with the City' s Tuition Reimbursement Program, employees are eligible to receive tuition reimbursement for educational purposes which are intended to improve his/her ability to accomplish his/ her City job for courses taken on the employee' s own time. Courses taken at any college or university, business or technical school, or courses given by a recognized correspondence school shall be recognized when they are:
a. Related to the employee' s current position within the City b. Related to the employee' s potential development within the City c. Part of a program leading to a degree relating to the employee' s position or possible development within the City
Reimbursement must be recommended by the Department Head and approved by the City Manager prior to enrollment. Requests are to be submitted on the approved form. Requests will be returned to the employee within fourteen ( 14) calendar days of submittal. Payment of education funds is discretionary with a Department Head within appropriate budget limits:
12 280
a. Costs not to exceed a maximum of$ 3, 000 per calendar year, per employee; including book and materials and lab fees.
b. Employee' s time and travel are at employee' s own expense. c. Class time must be on employee' s own time, unless the Department Head approves an exception.
d. A passing grade of C or better, or a certificate of completion, is required in each course for reimbursement.

The City shall reimburse the employee within ( 30) calendar days of submitting the necessary documentation. If an employee voluntarily separates within one year of receiving the educational reimbursement, he/ she must reimburse the City of Lathrop within one year from the separation date.

ARTICLE XX. SHIFT BIDDING
Management recognizes the right of employees to periodically change shifts. In January and July of each year request for shifts based on seniority shall be accepted from the employee. Subject to the rights of the Chief of Police or their Designee to deny such request if, in their opinion, the obligation of the department to provide the public service of the highest quality will not be filled.

ARTICLE XXL VACATION REQUESTS
The officer will direct any pre scheduled vacation requests to their direct supervisor. The officer can submit their request as soon as shift bids have been completed. The request must be submitted no later than 30 days in advance. If the request is submitted within 30 days, it is the officer' s responsibility to find backfill before any vacation is approved. Prior to the 30 days will be the agency' s responsibility to backfill for the officer. If a request is submitted on the same day, then seniority shall determine who gets priority. Only one officer per shift can have a pre scheduled vacation.

ARTICLE XXII. VACATION, SICK LEAVE AND COMPENSATORY TIME OFF Annual accrual rates and maximum accrual amounts for vacation, sick leave and compensatory time off are identified in the Personnel Rules and Regulations.

APPENDIX A:

This Memorandum of Understanding applies to the following employment classes:

1. Police Officers

2. Police Sergeants
13 281

FINAL AGREEMENT
Entered into this day of April, 2023, the parties agree that the above includes all items discussed and agreed to by way of the meet and confer process. This Agreement cannot be amended to, subtracted from or added to except by mutual written agreement of both parties. The persons executing this agreement each represent and warrant that they have been duly authorized to do so and the agreement is a valid and binding obligation of both parties.

CITY OF LATHROP LATHROP POLICE

OFFICERS ASSOCIATION
Sonny Dhaliwal, Mayor Landon Lawson, POA President
Stephen J. Salvatore, Chief Blake Escobar, POA Vice
Negotiator President
APPROVED AS TO FORM:

David Garcia, POA
Representative - Goyette
Che Johnson, City Counsel - Tony Arguelles, POA
Liebert Cassidy Whitmore Representative - Goyette
14 282

ATTACHMENT C
City of
390 Towne Centre Drive, Lathrop, CA 95330
Phone( 209J 941- 7220— Fax( 209) 941- 7229
www. ci.lathrop. ca. us
City of Lathrop Police Department
Benefit Plan for Unrepresented
Classi cations of Commander and lieutenant
Approved by Resolution No. 23-
In order to recruit and retain employees for the new Lathrop Police Department, the City has identified the following compensation and benefits components to be considered during the hiring and employment process for sworn positions not covered by an MOU.

Incentive pay referenced in this plan is based upon current salary step and range for the employee. The incentive pays are cumulative unless specifically stated. The items listed under the Benefit Plan only apply to the Commander and Lieutenant positions to establish benefits not already provided for by resolution or the Personnel Rules.

Police Officer Standards and Trainin ( POST) Certification The Commission on Peace Officer Standards and Training ( POST), through the POST Professional Certificates Unit, awards professional certificates at the following levels: Basic, Intermediate, Advanced, Supervisory, Management, Executive,
These POST Professional Certificate Programs provide education, training, and support professionalism in law enforcement. Participation in POST training raises the level of competence of law enforcement officers and fosters cooperation between the Commission, Public Safety Departments, and individuals.

Incentive pay for POST certification will be provided as follows:

Lieutenant and Commanders:

2. 5% Supervisory Certificate

2. 5% Management Certificate
Education Incentive
The City will pay a 2. 5% incentive on the existing salary step and range for sworn employees who possess an Associates of Arts degree. The City will pay a 5% incentive on existing salary step and range for sworn employees with a Bachelor' s Degree or higher. A maximum of 5% education incentive will be provided for this benefit.

Adopted 1
283
Sick Leave Conversion at Retirement
An employee who retires with at least ten (10) years of City service may elect one of the following options:

1. Convert all accrued sick leave to a medical insurance bank. The value of the medical insurance bank shall be determined by multiplying the number of accrued sick leave hours by the employee' s hourly rate of pay. The retired employee and his/ her dependents shall be entitled to continue medical insurance coverage, dental and/ or vision coverage currently in effect, with premiums for such coverage being deducted from the medical insurance bank until said bank is exhausted. Thereafter, the retiree and his/ her dependents may continue to participate in the City' s group health plan, at group rates, provided the City receives the retiree' s payment for the premium by the 10t'' of each month for the following month' s coverage.

2. Convert to CALPERS service credit per the City' s current contract.

Terms of the Policy Agreement with the City' s insurance carrier regarding coverage and eligibility shall apply to the retiree and his/ her dependents.

Uniform
The City will provide a uniform allowance of $ 1, 200 per year. Uniform allowance will be a onetime payment, paid the first pay period in January, beginning in January 2024.

Adopted 2
284

ATTACHMENT D
City of
390 Towne Centre Drive, Lathrop, CA 95330
Phone( 209) 941- 7220— Fax( 209) 941- 7229
www. ci. lathrop. ca. us
City of Lathrop Police Department
Recruitment Incentive Plan
Approved by Resolution No. 23-
Recruitment Incentives: Applies to recruitment efforts for all sworn positions. This Recruitment Incentive Plan will allow the City to offer recruitment incentives at the discretion of the City Manager to be implemented as necessary based on the need to offer such incentives Vacation
Vacation accrual hours shall include years of service at the agency the employee was employed with as a sworn officer prior to being hired by the City. The accrual hours will be in accordance with the years of service referenced in the Personnel Rules and Regulations. Additionally, newly hired sworn personnel will be provided an initial vacation bank of 40 hours upon hire.

Sick Leave
Sworn employees hired will be provided an initial sick leave bank of 40 hours upon hire.

Deferred Compensation
Laterals exiting a 3% @ 50 pension plan or 3% @ 55 pension plan, or were members of a Public Agency Retirement system prior to January 1, 2013 ( Pre- PEPRA) the City will offer the following deferred compensation contribution on an annual basis. Contribution will be prorated and paid bi- weekly:
o Chief: $ 5, 000 ($ 192. 31 per pay period)
o Commander: $ 4, 000 ($ 153. 85 per pay period)
o Lieutenant: $ 3, 500 ($ 134. 62 per pay period)
o Sergeant and Lateral Officer: $ 3, 000 ($ 115. 39 per pay period) Si nin Bonus
Sworn personnel hired will receive a cash bonus of$ 5, 000 upon hire.

Adopted 1
285
286
ITEM 4. 6

CITY MANAGER' S REPORT
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVAL OF OUT- OF- STATE TRAVEL FOR ONE ( 1)

LATHROP POLICE DEPARTMENT SERGEANT TO

ATTEND CANINE PROGRAM MANAGEMENT COURSE
IN MAY 2023
RECOMMENDATION: Adopt Resolution Approving Out- of-State Travel for One ( 1) Lathrop Police Department Sergeant to
Attend the Canine Program Management Course in
South Lake Tahoe, Nevada from May 2, 2023 to May
4, 2023
SUMMARY:

The Lathrop Police Department ( LPD) has established a K- 9 Unit that consists of three 3) K- 9 Teams ( handler and canine). The LPD K- 9 Unit is led by a Police Sergeant who oversees the K- 9 Unit operations which includes the day- to- day operations and deployments and field activities of each team. To efficiently and clearly understand their role as a K- 9 supervisor, attending a canine program management course is essential. Staff is proposing Council approval to have one ( 1) Sergeant attend an upcoming canine management course.

The management course will take place in South Lake Tahoe, Nevada. The cost for one ( 1) LPD Sergeant to attend the canine program management course is $ 1, 182.

There are sufficient funds in the Lathrop Police Department' s training budget to cover the cost of the training.

Staff recommends City Council approve the out- of- state travel for one ( 1) LPD Sergeant to attend the Canine Program Management Course in South Lake Tahoe, Nevada from May 2, 2023 to May 4, 2023.

BACKGROUND:

The Lathrop Police Department has established a K- 9 Unit that consists of three ( 3) K- 9 Teams. Two ( 2) of the three ( 3) K- 9 Teams has completed the basic handler' s course and is currently deployed and on patrol, with the third K- 9 Team in process.

These teams are supervised by a designated Sergeant who oversees the day- to- day operations, which include training, schedules, handler evaluations, equipment, record keeping, and deployments and field activities of each K- 9 Team.

The K- 9 Unit is regarded as one of the highest liability units within any law enforcement agency. To effectively manage K- 9 Teams, the K- 9 Unit supervisor should be knowledgeable and be up to date on all policies and regulations regarding K- 9 deployment within law enforcement. The canine program management course will help the supervisor utilize K- 9 Teams properly, obtain consistent productivity 287
CITY MANAGER' S REPORT PAGE 2
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
APPROVAL OF OUT- OF- STATE TRAVEL FOR ONE ( 1) LATHROP POLICE

DEPARTMENT SERGEANT TO ATTEND CANINE PROGRAM MANAGEMENT COURSE IN MAY 2023
from the K- 9 Teams, and understand legal concerns to help mitigate liability to the City. Attending the canine program management course is essential for the growth and development of the K- 9 Supervisor and Team.

As required by City policy, any out- of- state travel requires Council approval. Staff was able to secure a spot in an upcoming P. O. S. T certified canine program management course taking place in South Lake Tahoe, Nevada. This three- day course will cover K- 9 legal updates, K- 9 Use of Force, Critical Incident Reviews and Scenarios, and many more essential topics that would equip our K- 9 Sergeant in the day- to- day operations of the K- 9 Unit for the Lathrop Police Department.

The cost for one ( 1) LPD Sergeant to attend the canine program management course is $ 1, 182. This includes the registration, hotel, and per diem cost for one ( 1) Sergeant. There are sufficient funds in the Lathrop Police Department' s training budget to cover the cost of the training.

REASON FOR RECOMMENDATION:

To effectively manage K- 9 Teams, the K- 9 supervisor should be knowledgeable and be up to date on all policies and regulations regarding K- 9s within law enforcement.

Attending a canine program management course is essential to the growth and success of our K- 9 Unit Supervisor and will provide our K- 9 supervisor the tools to mitigate liabilities to the City. Staff recommends City Council approve the out- ofstate travel for one ( 1) LPD Sergeant to attend the Canine Program Management Course in South Lake Tahoe, Nevada from May 2, 2023 to May 4, 2023.

FISCAL IMPACT:

The cost for one ( 1) LPD Sergeant to attend the canine program management course is $ 1, 182. There are sufficient funds in the Lathrop Police Department budget to cover the cost of the training.

ATTACHMENTS:

A. Resolution Approving Out- of- State Travel for One ( 1) Lathrop Police Department Sergeant to Attend the Canine Program Management Course in South Lake Tahoe, Nevada from May 2, 2023 to May 4, 2023 288
CITY MANAGER' S REPORT PAGE 3
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
APPROVAL OF OUT- OF- STATE TRAVEL FOR ONE ( 1) LATHROP POLICE

DEPARTMENT SERGEANT TO ATTEND CANINE PROGRAM MANAGEMENT COURSE IN MAY 2023
APPROVALS:
3 z 2
Raymond Bechler Date
Chief of Police
y
l ao
Cari Ja s Date
Finance irector
30 - Z - 3
Salvador Navarrete Date
City Attorney
23 Stephen J. Salvatore Date
City Manager
289
RESOLUTION NO. 23 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING OUT- OF- STATE TRAVEL FOR ONE ( 1) LATHROP POLICE

SERGEANT TO ATTEND THE CANINE PROGRAM MANAGEMENT COURSE IN SOUTH LAKE TAHOE, NEVADA FROM MAY 2, 2023 TO MAY 4, 2023 WHEREAS, the Lathrop Police Department ( LPD) has established a K- 9 Unit that consists of three ( 3) K- 9 Teams ( handler and canine); and WHEREAS, LPD K- 9 Unit is led by a Police Sergeant who oversees the K- 9 Unit operations which includes the day- to- day operations and deployments and field activities of each team; and
WHEREAS, to effectively manage K- 9 Teams, the K- 9 supervisor should be knowledgeable and be up to date on all policies and regulations regarding K- 9s within law enforcement; and
WHEREAS, the canine program management course will help the supervisor utilize K- 9 Teams properly, obtain consistent productivity from the K- 9 Teams, and understand legal concerns to help mitigate liability to the City; and WHEREAS, as required by City policy, any out- of- state travel requires Council approval; and
WHEREAS, staff was able to secure a spot in an upcoming P. O. S. T certified canine program management course taking place in South Lake Tahoe, Nevada; and WHEREAS, the three- day course will cover K- 9 legal updates, K- 9 Use of Force, Critical Incident Reviews and Scenarios, and many more essential topics that would equip our K- 9 Sergeant in the day- to- day operations of the K- 9 Unit for the Lathrop Police Department; and
WHEREAS, the cost for one ( 1) LPD Sergeant to attend the canine program management course is $ 1, 182. This includes the registration, hotel, and per diem for one ( 1) Sergeant; and
WHEREAS, there are sufficient funds in the Lathrop Police Department' s training budget to cover the cost of the training.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve the out- of- state travel for one ( 1) Lathrop Police Department Sergeant to attend the canine program management course in South Lake Tahoe, Nevada from May 2, 2023 to May 4, 2023.
290
The foregoing resolution was passed and adopted this 10th day of April 2023, 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 291
292
ITEM 4. 7

CITY MANAGER' S REPORT
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE AMENDMENT NO. 2 WITH ROBERT
HALF INTERNATIONAL, INC. TO PROVIDE

PROFESSIONAL SERVICES IN THE BUILDING

DEPARTMENT FOR THE ENERGOV

IMPLEMENTATION
RECOMMENDATION: Adopt Resolution Approving Amendment No. 2 with Robert Half International, Inc. to provide
Professional Services in the Building
Department for the EnerGov Implementation
SUMMARY:

City staff utilizes development services software to perform a variety of day- to- day functions across many departments. The City has been focusing on the EnerGov implementation to optimize permit processing, plan review, workflow monitoring, field inspections, and payment processing.

Additional services are necessary for the ongoing implementation. In April 2023, the City entered into a Professional Services Agreement ( PSA) with Robert Half International, Inc. ( Robert Half) to assist in the configuration of EnerGov software.

The City staff has been satisfied with the services received from Robert Half and has requested a proposal for additional support services necessary for successfully finalizing the implementation of EnerGov.

StafF is requesting Council approve Amendment No. 2 with Robert Half in the amount not to exceed $ 187, 200. Sufficient funds have been allocated in the adopted Fiscal Year ( FY) 22/ 23. Future cost increases beyond July 2023 will be covered in the CIP GG 20- 15 presented to Council for FY budget 23/ 24 and 24/ 25.

BACKGROUND:

With the amount of development activity over the past few years, the City needed a system that will provide developers and citizens with a reasonable turnaround time for inspection and a plan review processes with electronic submissions and responses.

The ability to submit plans and schedule inspections electronically will eliminate daily manual entry, which includes the creation, scheduling, tracking, and resulting of inspections. Furthermore, integrating the City' s current processes and GIS system in a single software solution will create higher productivity and more efficient handling of data.

City Council approved the purchase of a new software system called EnerGov to streamline permit processing, plan review, workflow tracking, field inspections and payment processing. City staff began implementing the new software system and in April 2022 entered into a PSA with Robert Half to assist with EnerGov software. 293
CITY MANAGER' S REPORT PAGE 2
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
APPROVE AMENDMENT NO. 2 WITH ROBERT HALF TO PROVIDE

PROFESSIONAL SERVICES IN THE BUILDING DEPARTMENT FOR ENERGOV

IMPLEMENTATION
City staff has been pleased with the services provided by Robert Half and requested a proposal for support services needed to complete the implementation of EnerGov.

REASON FOR RECOMMENDATION:

The City has been focusing on the EngerGov implementation to optimize permit processing, plan review, workflow monitoring, field inspections, and payment processing. Additional services are necessary for the ongoing implementation.

FISCAL IMPACT:

The contract cost associated with Amendment No. 2 is not to exceed $ 187, 200: which will be paid on a time and material basis. There is currently $ 51, 100 available in the current council approved operating budget for this Fiscal Year, within the Building Fund, Account Number 2015- 50- 30- 420- 01- 00. Staff does not anticipate contract costs to exceed the budgeted amount prior to the Fiscal Year end. The future year costs associated with Amendment No. 2, of approximately $ 136, 100 for the period beginning Fiscal Year 23/ 24 will be incorporated into Capital Improvement Project GG 20- 15: EnerGov Development Services Module. The funds connected to this project will be presented to Council for approval during the budget process for Fiscal Year 23/ 24 and 24/ 25.

ATTACHMENTS:

A. Resolution Approving Amendment No. 2 with Robert Half International, Inc.

Provide Professional Services In the Building Department For EnerGov Implementation and Approve Budget Amendment
B. Amendment No. 2 with Robert Half International, Inc. to Professional Services In the Building Department for EnerGov Implementation.
294
CITY MANAGER' S REPORT PAGE 3
APRIL 10, 2023 CITY COUNCIL REGULAR MEETING
APPROVE AMENDMENT NO. 2 WITH ROBERT HALF TO PROVIDE

PROFESSIONAL SERVICES IN THE BUILDING DEPARTMENT FOR ENERGOV

IMPLEMENTATION
APPROVALS:

Za Z3
Ed Short Date
Chief B ilding Official
a 3
Cari Date
Finance Di ctor
j
1 , y ' 20 23
Michael King Date
Assistant City Manager
Z' zSalvador Navarrete Dat
City Attorney
2 3
Step J. Salvatore Date
City Manager
295
RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING AMENDMENT NO. 2 WITH ROBERT HALF INTERNATIONAL, INC.

TO PROVIDE PROFESSIONAL SERVICES IN THE BUILDING DEPARTMENT FOR

THE ENERGOV IMPLEMENTATION
WHEREAS, City staff utilizes development services software to perform a variety of day- to- day functions across many departments. The City has been focusing on the EngerGov implementation to optimize permit processing, plan review, workflow monitoring, field inspections, and payment processing; and WHEREAS, in April 2022, the City entered into a Professional Services Agreement ( PSA) with Robert Half International, Inc. ( Robert Half) to assist with EnerGov software configuration in the amount of $ 47, 000; and WHEREAS, in August 2022, Amendment No. 1 was approved by Council not to exceed $ 93, 600; and
WHEREAS, Amendment No. 2 will allow for an amount not to exceed 187, 200. Sufficient funds have been allocated in the adopted Fiscal Year ( FY) 22/ 23.

Future cost increases beyond July 2023 will be covered in the CIP GG 20- 15 presented to Council for FY budget 23/ 24 and 24/ 25.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby approves Amendment No. 2 with Robert Half International, Inc. to provide Professional Services in the Building Department for the EnerGov Implementation.
296
The foregoing resolution was passed and adopted this 10th day of April 2023, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO F RM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 297
ATTACNN ENT " "
AMENDMENT NO. 2

TO THE AGREEMENT BETWEEN THE CITY OF LATHROP AND
ROBERT HALF INTERNATIONAL, INC. DATED APRIL 10, 2023

TO PROVIDE ADDITIONAL PROFESSIONAL SERVICES IN THE BUILDING

DEPARTMENT FOR ENERGOV IMPLEMENTATION
THIS AMENDMENT ( hereinafter " AMENDMENT NO. 2") to the agreement between Robert Half International, Inc. and the City of Lathrop dated April2l, 2022, ( hereinafter AGREEMENT") dated for convenience this 10t'' day of April 2023, is by and between Robert Half International, Inc. ("CONSULTANT") and the City of Lathrop, a California municipal corporation (" CITY");
RECITALS:

WHEREAS, CONSULTANT is specially trained, experienced, and competent to perform Professional Services in the Building Department for EnerGov Implementation, which are required by this agreement; and
WHEREAS, CITY selected the CONSULTANT pursuant to said qualifications; and WHEREAS, on April 21, 2022, CONSULTANT and CITY entered into an AGREEMENT to provide Professional Services in the Building Department for EnerGov Implementation, in the amount not to exceed $ 47, 000; and
WHEREAS, CONSULTANT has provided CITY with a scope of work attached hereto as Exhibit " A" for Amendment No. 1 to provide Additional Professional Services in the Building Department for EnerGov Implementation; and
WHEREAS, CONSULTANT is willing to render such Professional Services in the Building Department for EnerGov Implementation, as hereinafter defined, on the following terms and conditions.

NOW, THEREFORE, CONSULTANT and the CITY agree as follows:

AMENDMENT NO. 2 TO AGREEMENT
1) Scope of Service. Section ( 1) of the AGREEMENT is hereby amended to add the following:

CONSULTANT agrees to perform Professional Services in the Building Department for EnerGov Implementation in accordance with the scope of work and fee proposal provided by CONSULTANT, attached hereto as Exhibit "A" in addition to the scope of work in the original AGREEMENT dated April 21, 2022. CONSULTANT agrees to diligently perform temporary staffing services in accordance with the upmost standards of its profession.

Page 1 of 3 ends

Lathrop City CouncilApril 10, 2023

Lathrop City Council
April 10, 2023