Agenda packet — Lathrop City Council, March 11, 2024 (part 1 of 4)

March 11, 2024 – Regular Meeting Agenda – 7:00 p.m.

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March 11, 2024 – 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
Minnie Diallo, Vice Mayor
Paul Akinjo
Diane Lazard
Jennifer Torres-O’Callaghan
City Staff
Stephen Salvatore, City Manager
Salvador Navarrete, City Attorney
Stephen Sealy, Chief of Police
Michael King, Assistant City Manager
Thomas Hedegard, Deputy 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
Rick Caguiat, Community Development
Director
Todd Sebastian, Parks and Recreation
Director
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 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 1

IMPORTANT NOTICE REGARDING THIS MEETING
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. This meeting will also be available for public participation by teleconference via ZoomGov at the following link:
https://www.zoomgov.com/j/1608811913?pwd=ZDJTRXVta0hBOFY 4VzIrRjdLUVVjQT09
During the meeting, those joining by ZoomGov, will be allowed to speak prior to the close of public comment on an item. If you are using this method, please “raise the hand” feature to inform the City Clerk (meeting host) you wish to speak on the matter.

Please ensure your computer speaker and microphone are fully functional.

For audio / calling in only, dial: +1 (669) 254-5252 or +1 (669) 216-1590 o To request to speak (same as the “raise hand” feature) press *9 / When the City Clerk calls your name, press *6 to unmute.

Meeting Webinar ID: 160 881 1913 / Passcode: 294382
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 March 11, 2024 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 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 3

CITY OF LATHROP

CITY COUNCIL REGULAR MEETING
MONDAY, MARCH 11, 2024
7:00 P.M.

COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive
Lathrop, CA 95330
AGENDA
PLEASE NOTE: There will be a Closed Session commencing at 6:15 p.m. The Regular Meeting will reconvene at 7:00 p.m., or immediately following the Closed Session, whichever is later.

1. PRELIMINARY

1.1 CALL TO ORDER

1.2 CLOSED SESSION

1.2.1 CONFERENCE WITH LEGAL COUNSEL Existing LitigationPursuant to Government Code Section 54956.9(d)(1):
 15700 South McKinley Avenue Industrial Park Association vs. City of Lathrop, San Joaquin County Superior Court, Case No. STK-CV-UBC-2019-0004954

1.2.2 CONFERENCE WITH LEGAL COUNSEL Anticipated LitigationSignificant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2):
 1 Potential Case

1.2.3 LIABILITY CLAIMS
Pursuant to Government Code Section 54956.95(a)
 Claimant: Steven Schneider
Agency Claimed Against: City of Lathrop
 Claimant: Qi Wei Chen
Agency Claimed Against: City of Lathrop
 Claimant: Dolores Dominguez
Agency Claimed Against: City of Lathrop
 Claimant: Naomi Valenzuela
Agency Claimed Against: City of Lathrop

RECONVENE

1.2.4 REPORT FROM CLOSED SESSION

1.3 ROLL CALL
4 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 4

1.4 INVOCATION

1.5 PLEDGE OF ALLEGIANCE

1.6 ANNOUNCEMENT(S) BY MAYOR / CITY MANAGER

1.7 INFORMATIONAL ITEM(S) – None

1.8 DECLARATION OF CONFLICT(S) OF INTEREST

2. PRESENTATIONS - None

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 Regular Council Meeting of January 08, 2024

4.3 SECOND READING AND ADOPTION OF ORDINANCE 24-456 OF THE CITY

COUNCIL OF THE CITY OF LATHROP AMENDING LATHROP MUNICIPAL CODE TITLE 10 VEHICLES AND TRAFFIC, CHAPTER 10.08 SPEED LIMITS SECTION 10.08.030 “SPEED LIMITS”
5 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 5 Waive Full Reading and Adopt Ordinance 24-456 Amending Lathrop Municipal Code Title 10 Vehicles and Traffic, Chapter 10.08 Speed Limits Section 10.08.030 “Speed Limits”

4.4 REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2022 2023
Review of the Capital Facility Fee Funds Report for Fiscal Year 2022- 2023

4.5 ACCEPTANCE OF THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023
Adopt Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2023

4.6 APPROVE OUT OF STATE TRAVEL FOR THE CHIEF OF POLICE TO ATTEND THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE (IACP) 2024

CONFERENCE AND EXPOSITION IN BOSTON, MASSACHUSETTS
Adopt Resolution Authorizing the Chief of Police to Attend the International Association of Chiefs of Police (IACP) 2024 Annual Conference and Exposition in Boston, MA, October 19 – 22, 2024

4.7 APPROVE OUT OF STATE TRAVEL FOR TWO CITY ISD ENGINEERS TO ATTEND THE DEFCON 32 CONFERENCE IN LAS VEGAS, NEVADA
Adopt Resolution Approving Out Of State Travel for Two City ISD Engineers to Attend the Defcon 32 Conference in Las Vegas, Nevada from August 8 –11, 2024

4.8 APPROVE OUT OF STATE TRAVEL FOR TWO CITY STAFF MEMBERS TO ATTEND THE TYLER CONNECT 2024 CONFERENCE, IN INDIANA
Adopt Resolution Authorizing Out of State Travel for the Senior Management Analyst and Customer Service Supervisor to Attend the Tyler Connect 2024 Conference in Indianapolis, Indiana from May 19- 22, 2024

4.9 APPROVE AN AGREEMENT FOR A RAPID EMERGENCY RESPONSE

SYSTEM AND RELATED BUDGET AMENDMENT
Adopt Resolution Approving an Agreement for a Rapid Emergency Response System and Related Budget Amendment

4.10 APPROVE PURCHASE OF SOFTWARE AND ENTERPRISE LICENSE AND

APPROVE MAINTENANCE SERVICE AGREEMENT WITH SWARCO
MCCAIN, INC. ASSOCIATED WITH THE CITYWIDE TRAFFIC SYSTEMS AND SAFETY UPGRADES PROJECT, CIP PS 23-01
6 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 6 Adopt Resolution Approving the Purchase of Software and Enterprise License and Approve a Maintenance Service Agreement with Swarco McCain, Inc. Associated with the Citywide Traffic Systems and Safety Upgrades Project, CIP PS 23-01

4.11 CREATE CIP PS 24-32 FOR MOSSDALE PAVEMENT PREVENTATIVE

MAINTENANCE AND APPROVE BUDGET AMENDMENT
Adopt Resolution Creating CIP PS 24-32 for Mossdale Pavement Preventative Maintenance and Approving Budget Amendment

4.12 AWARD SERVICE CONTRACT TO BEAR ELECTRICAL SOLUTIONS, INC.

FOR ON-CALL ELECTRICAL SERVICES FOR FISCAL YEAR 2023-2024 Adopt Resolution Awarding a Service Contract to Bear Electrical Solutions, Inc. for On-Call Electrical Services for Fiscal Year 2023-2024

4.13 AWARD CONSTRUCTION CONTRACT TO TRIP STOP SIDEWALK REPAIR INC. FOR CITYWIDE SIDEWALK IMPROVEMENTS, CIP PS 24-08
Adopt Resolution to Award Construction Contract to Trip Stop Sidewalk Repair Inc. for Citywide Sidewalk Improvements, CIP PS 24-08

4.14 AUTHORIZE ACCEPTANCE OF AN SB 1383 LOCAL ASSISTANCE GRANT

PROGRAM FROM THE DEPARTMENT OF RESOURCES RECYCLING AND

RECOVERY (CALRECYCLE)
Adopt Resolution Authorizing the Acceptance of an SB 1383 Local Assistance Grant from the Department of Resources, Recycling, and Recovery (CalRecycle) to Reduce Organic Waste

4.15 APPROVE ADDITIONAL INDUSTRIAL SOLID WASTE LICENSES FOR RA RA TRUCKING, INC., CALIFORNIA MATERIALS, INC., AND CAL-WASTE RECOVERY SYSTEMS FOR THE REMAINDER OF FISCAL YEAR 2023-24

1. Adopt Resolution to Approve Annual Industrial Solid Waste License for Ra Ra Trucking, Inc., for the Remainder of Fiscal Year 2023-24

2. Adopt Resolution to Approve Annual Industrial Solid Waste License for California Materials, Inc., for the Remainder of Fiscal Year 2023-24

3. Adopt Resolution to Approve Annual Industrial Solid Waste License for Cal-Waste Recovery Systems, for the Remainder of Fiscal Year 2023-24

5. SCHEDULED ITEMS

5.1 PUBLIC HEARING (PUBLISHED NOTICE) TO ADOPT AN ORDINANCE TO AMEND THE LATHROP MUNICIPAL CODE (LMC) TO REGULATE SHORTTERM RENTALS AND BICYCLE VIOLATIONS BY ADDING NEW CHAPTERS TO TITLE 5, BUSINESS LICENSES AND REGULATIONS, AND TITLE 9,

PUBLIC PEACE AND WELFARE
7 March 11, 2024 Lathrop City Council Regular Meeting Agenda Page 7 The City Council to Consider the Following:

4. Hold a Public Hearing; and

5. First Reading and Introduction of an Ordinance to Amend the Lathrop Municipal Code (LMC) to Regulate Short-Term Rentals and Bicycle Violations by Adding New Chapters to Title 5, Business Licenses and Regulations, and Title 9, Public Peace and Welfare.

The New Chapters Include The Following:
 Chapter 5.10 (Short-Term Rental Prohibition): Add new Chapter to Prohibit Short-Term Vacation Rentals.
 Chapter 9.28 (Bicycles Used in Violation of the California Vehicle Code): Add New Chapter To Regulate Bicycles Used In Violation Of The California Vehicle Code

5.2 DISCUSS AND CONSIDER AWARD OF CONSTRUCTION CONTRACT TO DIRT DYNASTY, INC. FOR LATHROP ROAD RESIDENTIAL DRIVEWAY RECONSTRUCTION, CIP GG 24-27 AND APPROVE BUDGET AMENDMENT Discuss and Consider Adopting a Resolution to Award Construction Contract to Dirt Dynasty, Inc. for the Lathrop Road Residential Driveway Reconstruction, CIP GG 24-27 and Approve Budget Amendment

5.3 BIENNIAL BUDGET FISCAL YEAR 2023–24 MID-YEAR REPORT (YEAR 1) Adopt Resolution Approving the Mid-Year Budget Report for Year 1 of the Biennial Budget FY 2024 and FY 2025 and Related Budget and Position Requests

6. COUNCIL COMMUNICATIONS

6.1 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 (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/Torres-O’Callaghan)  LAFCo (Diallo)

6.2 MAYOR & COUNCILMEMBER COMMENT(S)

7. ADJOURNMENT
/Teresa Vargas/
Teresa Vargas, MMC, City Clerk
8 ITEM 4. 2

CITY OF LATHROP

CITY COUNCIL REGULAR MEETING
MONDAY, JANUARY 8, 2024
7: 00 P. M.

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

MINUTES
PLEASE NOTE: There was no Closed Session. The Regular Meeting commenced at 7: 01 p. m.

1. PRELIMINARY

1. CALL TO ORDER - Mayor Dhaliwal called the meeting to order at 7: 01 p. m.

1. 2 ROLL CALL Present: Mayor Dhaliwal; Vice Mayor Diallo; and Councilmembers: Akinjo and Torres -
O' Callaghan

Absent: Councilmember Lazard

1. 3 INVOCATION - Councilmember Akinjo provided the invocation.

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

1. 5 ANNOUNCEMENT( S) BY MAYOR / CITY MANAGER
City Engineer Brad Taylor announced a single lane road closure on River Islands Parkway. The one- way traffic control will be from Islander' sWay to Bradshaw' sCrossing, January 9, 2024, from 9 a. m. to 2 p. m.

1. 6 INFORMATIONAL ITEM( S) - None

1. 7 DECLARATION OF CONFLICT( S) OF INTEREST - None

2. PRESENTATIONS

2. 1 INTRODUCTION OF NEW EMPLOYEES
Human Resources Director Juliana Burns introduced new employee Sarah Castro, Human Resources Analyst, in the Human Resources Department. Assistant City Manager Michael King introduced new employees Stephanie Rosillo- Siva, Administrative Assistant, Daniel January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 1 9 Rosado, Maintenance Worker, and Jonah Sonner, Compliance Engineer in the Public Works Department. Parks and Recreation Director Todd Sebastian introduced new employees Adrian Magdaleno, Senior Recreation Leader, Pamela Parrish, Senior Recreation Leader, and Sydney Foster, Management Analyst in the Parks and Recreation Department. Interim Police Chief Stephen Sealy introduced new employees Mariah Walty, Animal Center Assistant, Angelina Moreno, Administrative Assistant, Carlos Lerma, Police Officer, Eloy Magana, Police Officer, Sunny Purewal, Police Officer, Myles Richter, Police Officer, Justin Sangster, Police Officer, and Joshua Simien, Police Officer in the Police Department.

2. QUARTERLY ECONOMIC DEVELOPMENT PRESENTATION
Economic Development Administrator Shelley Burcham provided the presentation covering economic development activity from October 2023 to December 2023.

3. CITIZEN' SFORUM
Mansoor Fazel ( in person speaker) requested follow- upon his prior request regarding hookah lounge establishments. Angina Crittendon ( in person speaker) expressed concern regarding an incident that occurred on her property on December 23, 2023, in which police staff responded. Mark Elliott requested information regarding the review of the annual cannabis revenue report and impacts to the community.

4. CONSENT CALENDAR
On a motion by Councilmember Akinjo, seconded by Councilmember Torres - O' Callaghan, the City Council approved Items 4. 1 through 4. 11, by the following roll call vote, unless otherwise indicated:

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

Absent: Lazard
Abstain: None
City Clerk Teresa Vargas received a request to speak from Ernesto Rodriguez for Items 4., 4.6, 4. 11, and 5. When called, Mr. Rodriguez was unavailable to speak via zoom or in person.

4. 1 WAIVING OF READING OF ORDINANCES AND RESOLUTIONS
Waived the reading in full of ordinances and resolutions on agenda and adopt by reading of title only, unless otherwise requested by the Mayor or a Councilmember.

January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 2 10 4. 2 APPROVAL OF MINUTES
Approved Minutes for the Regular Council Meeting of October 9, 2023 and Regular Council Meeting of November 13, 2023.

4. 3 TREASURER' S REPORT FOR SEPTEMBER 2023
Approved Quarterly Treasurer' sReport for September 2023.

4. SECOND READING AND ADOPTION OF ORDINANCE 24- 453 OF THE CITY

COUNCIL OF THE CITY OF LATHROP UPDATING THE MILITARY
EQUIPMENT LIST FOR MILITARY EQUIPMENT USE POLICY NO. 706, FOR

THE USE OF MILITARY EQUIPMENT BY THE LATHROP POLICE

DEPARTMENT, IN COMPLIANCE WITH CALIFORNIA GOVERNMENT CODE SECTIONS 7070-075, ASSEMBLY BILL 481
Waived full reading and adopted Ordinance 24- 453 amending Chapter

9. 20 titled " Military Equipment Use Policy", of title 9 " Public Peace and Welfare" of the Lathrop Municipal Code by amending Section 9. 20. 050 titled " Active Policies" to update existing military equipment list for Military Equipment Use Policy No. 706, by incorporating funding, acquisition, and use of new military equipment for the Lathrop Police Department, in compliance with California Government Code sections 7070-075, Assembly Bill ( Chieu).

4. 5 SECOND READING AND ADOPTION OF ORDINANCE 24- 454 OF THE CITY COUNCIL OF THE CITY OF LATHROP AMENDING TITLE 10, CHAPTER

10. 24, SECTION 10. 24. 030 DESIGNATED NO PARKING AREAS OF THE

LATHROP MUNICIPAL CODE
Waived full reading and adopted Ordinance 24- 454 amending Title 10, Chapter 10. 24, Section 10. 24. 030, designated no parking areas of the Lathrop Municipal Code.

4. 6 APPROVE OUT OF STATE TRAVEL AUTHORIZING THE PARKS AND

RECREATION DIRECTOR TO ATTEND THE NATIONAL RECREATION AND

PARK ASSOCIATION, REVENUE DEVELOPMENT AND MANAGEMENT

SCHOOL IN WHEELING, WEST VIRGINIA
Adopted Resolution 24- 5441 authorizing out of state travel for the Parks and Recreation Director to attend the National Recreation and Park Association, Revenue Development and Management School March 11-5, 2024, in Wheeling, West Virginia.

4. 7 APPROVE OUT OF STATE TRAVEL FOR ONE ISD ENGINEER TO ATTEND

THE CISCO LIVE CONFERENCE
January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 3 11 Adopted Resolution 24- 5442 approving out of state travel for one ISD Engineer to attend the Cisco Live Conference in Las Vegas, Nevada, June 2-6, 2024.

4. 8 APPROVE A RESOLUTION AUTHORIZING SUBMITTAL OF CALRECYCLE

INDIVIDUAL GRANT APPLICATIONS FOR WHICH THE CITY OF LATHROP

IS ELIGIBLE FOR, FIVE YEARS FROM THE DATE OF THE ADOPTED RESOLUTION, NO LATER THAN JANUARY 8, 2029
Adopted Resolution 24- 5443 authorizing submittal of individual grant applications with Cal Recycle for all grant programs for which the City of Lathrop is eligible for, five years from the date of the adopted Resolution, no later than January 8, 2029.

4. 9 APPROVE PROJECT FUNDING AGREEMENT WITH LATHROP MOSSDALE INVESTORS, LP ASSOCIATED WITH CIP WW 20- 17, SURFACE WATER

DISCHARGE, AND APPROVE A QUITCLAIM DEED TO TRANSFER
OWNERSHIP OF REAL PROPERTY TO K. HOVNANIAN HOMES
Adopted Resolution 24- 5444 approving a project Funding Agreement with Lathrop Mossdale Investors, LP associated with CIP WW 20- 17, surface water discharge, and approve a Quitclaim Deed to transfer ownership of Real Property ( APN: 191-90- 32) to K. Hovnanian Homes.

4. 10 AWARD CONSTRUCTION CONTRACT TO BAGLEY ENTERPRISES, INC.

FOR THE FUELING FACILITY ASSOCIATED WITH CIP GG 21- 13

CORPORATION YARD IMPROVEMENTS
Adopted Resolution 24- 5445 awarding a Construction Contract to Bagley Enterprises, Inc. for the Fueling Facility associated with CIP GG 21- 13 Corporation Yard improvements.

4. 11 RATIFY THE SERVICE AGREEMENT WITH ICU TECHNOLOGIES, INC. AND APPROVE BUDGET ADJUSTMENT FOR CIP GG 19- 07 CITYWIDE

SURVEILLANCE SYSTEMS
Adopted Resolution 24- 5446 ratifying Service Agreement with ICU Technologies, Inc. and approve budget adjustment for CIP GG 19- 07 citywide surveillance systems.

5. SCHEDULED ITEMS

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

ORDINANCE AMENDING THE SPEED LIMITS IN THE CITY OF LATHROP, TITLE 10 VEHICLES AND TRAFFIC, CHAPTER 10. 08 SPEED LIMITS, SECTION 10. 08.30 SPEED LIMITS OF THE LATHROP MUNICIPAL CODE January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 4 12 City Engineer Brad Taylor provided the presentation, which included review of an Engineering and Traffic Survey required by the California Vehicle Code ( CVC) Sections 22357-2364 and 40800-0808 to establish legally enforceable speed limits for City roads, and the recommended amendments to Lathrop Municipal Code Section

10. 08.30, to establish speed limits for various street segments within the City of Lathrop. A question and answer ensued throughout the presentation. Mayor Dhaliwal opened the public hearing. Adriana Lopez zoom speaker) expressed concern with raising speed limits in residential areas. There were no other requests to speak. Mayor Dhaliwal closed the public hearing. The City Council discussions continued, upon consensus the City Council directed staff to bring back the matter to the next City Council Regular Meeting after additional surveying and evaluation of pedestrian traffic in the Stanford Crossing Area.

On a motion by Councilmember Torres -O' Callaghan, seconded by Vice Mayor Diallo, the City Council directed staff to continue Item 5. 1 to the Regular Meeting of February 12, 2024. Additionally, the City Council:

1. Held a public hearing; and

2. Continued the First Reading and Introduction of an Ordinance of the City Council of the City of Lathrop Amending Section

10. 08.30 "Speed Limits" of the Lathrop Municipal Code, to the Regular Meeting of February 12, 2024, by the following roll call vote:

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

Absent: Lazard
Abstain: None

5. 2 PUBLIC HEARING ( PUBLISHED NOTICE) ADOPTING VARIOUS

AMENDMENTS TO THE LATHROP MUNICIPAL CODE ( LMC) TO

MODERNIZE, SIMPLIFY, AND STREAMLINE VARIOUS SECTIONS IN TITLE 5, BUSINESS LICENSES AND REGULATIONS, TITLE 8, HEALTH AND SAFETY, TITLE 15, BUILDINGS AND CONSTRUCTION, AND TITLE 17, ZONING ( TA -23- 139)
Community Development Director Rick Caguiat provided the Zoning Omnibus - Municipal Code Text Amendment presentation, which included a proposal to modify various sections of the Lathrop Municipal Code, proposed amendments were intended to integrate current City policies, Housing Element Program implementation, State law and best practices within the planning profession. A question and answer period ensued throughout the presentation. Mayor Dhaliwal opened the public hearing. Adriana Lopez ( zoom speaker) expressed concern with Title

17. 62 and not allowing additional garage spaces in new development January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 5 13 areas, and insufficient on street parking in residential areas near arterial roads/ streets. There were no other speakers. Mayor Dhaliwal closed the public hearing.

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

1. Held a public hearing; and

2. Held first reading and introduced an ordinance adopting various amendments to the Lathrop Municipal Code ( LMC) to modernize, simplify, and streamline various sections of Title 5, Business Licenses and Regulations, Title 8, Health and Safety, Title 15, Buildings and Construction, and Title 17, Zoning, by the following roll call vote.

The amendments include the following:

Chapter 5. 04 (Business Licenses Generally): Revise
and add language to exempt certain institutions and
organizations from obtaining a business license.

Chapter 8. 24 ( Property Nuisances and Dust
Control): Add language to clarify that a building or
structure with broken or missing windows or doors
constitute a hazardous condition and a prohibited
nuisance.

Chapter 8. 26 (Vacant and Abandoned Property):

Add language to clarify that commercial and
industrial properties are also subject to the vacant
and abandoned regulations.

Chapter 15. 56 (Floodplain Management): Clarify
that the City Engineer is the designated Floodplain
Administrator.

Chapter 17. 48 (I Industrial District): Add warehouse
as a permitted use in the Limited Industrial Zoning
District.

Chapter 17. 62 (Central Lathrop Zoning Districts):

Update the Residential Site Development Standards
Table to modify the off- street parking requirement
for dwellings with 5 or more bedrooms.

Chapter 17. 76 (Off -Street Parking and Loading):

Revise the language to clarify that the Community
Development Director may authorize the joint use of
parking facilities under certain conditions.

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

Absent: Lazard
Abstain: None
January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 6 14 5. 3 APPROVE OUT OF STATE TRAVEL FOR THE 2024 NATIONAL LEAGUE OF

CITIES CONGRESSIONAL CITY CONFERENCE
Government Services Director and City Clerk Teresa Vargas provided the presentation. The City Council discussed the matter. On a motion by Mayor Dhaliwal, seconded by Councilmember Torres -O' Callaghan, the City Council adopted Resolution 24- 5447, approving Option 2 authorizing out of state travel for Vice Mayor Diallo and Councilmember Akinjo, to attend the 2024 National League of Cities Congressional City Conference to Washington D. C., from March 9 - 13, 2024, and approved the related budget amendment, by the following roll call vote:

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

Absent: Lazard
Abstain: None

5. 4 REVIEW AND CONSIDER DESIGN ALTERNATIVES FOR HISTORIC LATHROP BEAUTIFICATION PROJECT, CIP GG 24-3
Assistant City Manager Michael King provided the presentation, which included various design options for a water fountain and gateway arches on 5th Street, associated with Historic Lathrop Beautification Project, CIP GG 24-3. A question and answer period ensued throughout the presentation. Benjamin Jex ( soom speaker) expressed interest in incorporating the planting of additional trees throughout the city into the project.

On a motion by Mayor Dhaliwal, seconded by Vice Mayor Diallo, the City Council approved Alternative Option 4(A) with decorative lights for the water fountain at a basin park, and Alternative Option A, a truss arch for the Lathrop Gateway Conceptual Design, by the following roll call vote:

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

Absent: Lazard
Abstain: None

6. COUNCIL COMMUNICATIONS

6. 1 COUNCILMEMBER TORRES- O' CALLAGHAN REFERRAL - Discuss Potential Local Housing Assistance Program for Sworn City of Lathrop Police Department and Lathrop LMFD Employees
January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 7 15 Councilmember Torres -O' Callaghan provided an overview of her referral. A question and answer period followed. City Attorney Salvador Navarrete, Deputy City Manager Thomas Hedegard and Police Chief Sealy responded to additional questions of the City Council. Adrianna Lopez ( zoom speaker) spoke in support of the referral. The City Council directed staff to bring back the matter for future discussion and formal action.

6. 2 MAYOR & COUNCILMEMBER COMMITTEE REPORT( S) - None

6. 3 MAYOR & COUNCILMEMBER COMMENT( S)
Councilmember Akinjo thanked those in attendance, wished everyone a Happy New Year. Councilmember Torres -O' Callaghan wished students a happy return to school. Vice Mayor Diallo expressed her appreciation and condolences to the Laughlin Family for the loss of Community Member Christina Laughlin. Vice Mayor Diallo requested the City Council to approve installation of a memorial bench and tree at Crescent Park honoring Christina Laughlin. Mayor Dhaliwal expressed similar sentiments and expressed his condolences to the Laughlin Family. The Council expressed consensus and support for the memorial bench and tree proposal by Vice Mayor Diallo.

7. ADJOURNMENT - There being no further business, Mayor Dhaliwal adjourned the meeting at 9: 19 p. m., in memory of Community Member Christina Laughlin.
resa Vargas, MMC
Government Services Director
City Clerk
January 8, 2024 Lathrop City Council Regular Meeting Minutes Page 8 16 ITEM 4. 3

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: SECOND READING AND ADOPTION OF ORDINANCE
24- 456 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. 08.30 "SPEED
LIMITS"
RECOMMENDATION: Waive Full Reading and Adopt Ordinance 24- 456 Amending The Lathrop Municipal Code Title 10
Vehicles And Traffic, Chapter 10. 08 Speed Limits
Section 10. 08.30 "Speed Limits"
RECOMMENDED ACTION:

The City Council to conduct a second reading and adopt Ordinance 24- 456 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. 08.30 "SPEED LIMITS"
SUMMARY:

On January 8, 2024, the City Council opened and closed a Public Hearing to hear public testimony in regards to amending the Lathrop Municipal Code Title 10 Vehicles and Traffic, Chapter 10. 08 Speed Limits, Section 10. 08.30 "Speed Limits".

Thereafter, the City Council continued the matter to the regular meeting of February 12, 2024. On February 12, 2024, the City Council approved the introduction and first reading of the subject Ordinance by the following vote:

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

SUBMITTED BY:
jTresa Vargas, Cit/lerk Date
u/ 4°1
17 ORDINANCE NO. 24- 456

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. 08.30 "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 ( City) has enacted an ordinance to establish the prima facie speed limits on portions of certain streets within the City; and WHEREAS, staff has conducted Surveys to establish legal speed limits for specific 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. 08.30 Speed Limits of the Lathrop Municipal Code; and WHEREAS, proper notice of this public hearing was given to all respects as required by law; and
WHEREAS, the City Council has reviewed all written evidence and oral testimony presented to date.

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

Section 1.

Section 10. 08.30, 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
Ordinance No. 24- 456
18 B. The speed limit shall be forty-ive (45) miles per hour on the following street segments:

Street
Dell' Osso Drive
Glacier Street
Golden Valley Parkway
Golden Valley Parkway
Golden Valley Parkway
Harlan Road
Harlan Road
Harlan Road
Harlan Road
Harlan Road
Howland Road
Jefferson Way
Lathrop Road
Louise Avenue
Louise Avenue
Louise Avenue
Louise Avenue
Manthey Road
Manthey Road
Manthey Road
Manthey Road
McKinley Avenue
McKinley Avenue
River Islands Parkway
River Islands Parkway
River Islands Parkway
Somerston Parkway
Tesla Drive
Yosemite Avenue
Yosemite Avenue
Yosemite Avenue
C.

Limits
River Islands Parkway to Lakeside Drive
Jefferson Way to Yosemite Avenue
Brookhurst Boulevard to Sadler Oak
River Island Parkway to Towne Centre Drive
Towne Centre Drive to Brookhurst Boulevard
Roth Road to Slate Street
Slate Street to Lathrop Road
Louise Avenue to D' Arcy Parkway
D' Arcy Parkway to Tesla Drive
Tesla Drive to End of Road
Louise Avenue to D' Arcy Parkway
Glacier Street to Yosemite Avenue
McKinley Avenue to city limits
Interstate 5 to Harlan Road
Harlan Road to Fifth Street
Fifth Street to McKinley Avenue
McKinley Avenue to City Limits
Dos Reis Road to City Limits
Towne Centre Drive to Brookhurst Boulevard
Brookhurst Boulevard to Mossdale County Park
Stewart Road to Interstate 5 Ramps
Yosemite Avenue to City Limits
Lathrop Road to Louise Avenue
Golden Valley Parkway to McKee Boulevard
San Joaquin River Bridge to Somerston Parkway
Somerston Parkway to Norbeck Street
River Islands Parkway to South of Lakeside Drive
Harlan Road to Christopher Way
SR 120 to D' Arcy Parkway
D' Arcy Parkway to City Limit
Jefferson Way to Glacier Street
The speed limit shall be forty ( 40) miles per hour on the following street segments:

Street
D' Arcy Parkway
D' Arcy Parkway
Dos Reis Road
Harlan Road
Lathrop Road
Manthey Road
Manthey Road
Yosemite Court
Limits
Yosemite Avenue to Christopher Way
Christopher Way to Harlan Road
Manthey Road to East School Zone
Lathrop Road to Louise Avenue
5th Street to McKinley Avenue
Lathrop Road to Dos Reis Road
Mossdale County Park to Stewart Road
Yosemite Avenue to End
Ordinance No. 24- 456
19 D. The speed limit shall be thirty- five (35) miles per hour on the following street segments:

Street
Barbara Terry Boulevard
Barbara Terry Boulevard
Barbara Terry Boulevard
Business Park Court
Brookhurst Boulevard
Brookhurst Boulevard
Brookhurst Boulevard
Dell' Osso Drive
Christopher Way
Dos Reis Road
Dos Reis Road
Golden Spike Trail
Lakeside Drive
Lakeside Drive
Lakeside Drive
Lathrop Road
Lathrop Road
McKee Boulevard
McKee Boulevard
McKee Boulevard
McKee Boulevard
Murphy Parkway
Murphy Parkway
Riverfront Drive
River Islands Parkway
River Islands Parkway
Roth Road
Seventh Street
Somerston Parkway
Stanford Crossing
Limits
Stanford Crossing to Adobe Way
Spartan Way to McKee Boulevard
McKee Boulevard to Adobe Way
Yosemite Avenue to End
Manthey Road to Golden Valley Parkway
Golden Valley Parkway to McKee Boulevard
McKee Boulevard to Golden Spike Trail
Mulholland Drive to River Islands Parkway
D' Arcy Parkway to End of Road
East School Zone to West School Zone
West School Zone to Dos Reis Park
Towne Centre Drive to Brookhurst Boulevard
Stewart Road to Vega Park Roundabout
Vega Park Roundabout to Somerston Parkway
Somerston Parkway to Dell' Osso Drive
Interstate 5 to Rev Maurice Cotton Drive
Rev Maurice Cotton Drive to Fifth Street
Brookhurst Boulevard to Towne Centre Drive
Towne Centre Drive to Johnson Ferry
Johnson Ferry to River Islands Parkway
River Islands Parkway to Barbara Terry Boulevard
Testa Drive to D' Arcy Parkway
D' Arcy Parkway to End of Road
Somerston Parkway to Bosch Avenue
Interstate 5 to Golden Valley Parkway
McKee Boulevard to San Joaquin River bridge
Interstate 5 to East City Limits
J Street to Thomsen Road
Riverfront Drive to River Islands Parkway
Barbara Terry Boulevard to Golden Valley Parkway
E. The speed limit shall be thirty ( 30) miles per hour on the following street segments:

Street
Academy Drive
Commerical Street
Inland Passage Way
Slate Street
Slate Street
Opal Street
Opal Street
Sadler Oak Drive
Johnson Ferry Road
Stanford Crossing
Stonebridge Lane
Limits
Somerston Parkway to Broadmoor Way
Marina Drive to Academy Drive
Sadler Oak Drive to Open Range Avenue
Harlan Road to Deerwood Way
Deerwood Way to Stonebridge Lane
Stonebridge Lane to Deerwood Way
Deerwood Way to Slate Street
Manthey Road to Inland Passage Way
Colonial Trail to Golden Spike Trail
Spartan Way to Barbara Terry Boulevard
Harlan Road to Slate Street
Ordinance No. 24- 456
20 F. The speed limit shall be twenty- five (25) miles per hour on the following street segments:

Street
Academy Drive
Barbara Terry Boulevard
Cambridge Drive
Fifth Street
J Street
Lathrop Road
Marina Drive
Marina Drive
O Street
Spartan Way
Spartan Way
Spartan Way
Spartan Way
Stewart Road
Thomsen Road
Thomsen Road
Thomsen Road
Towne Centre Drive
Towne Centre Drive
Limits
River Bend Drive to Somerson Parkway
Stanford Crossing to Central Pacific Street
Lathrop Road to Louise Avenue
K Street to 0 Street
Harlan Road to Fifth Street
Interstate 5 to Golden Valley Parkway
River Bend Drive to Somerston Parkway
Somerston Parkway to Taft Drive
Harlan Road to Seventh Street
Golden Valley Parkway to Generations Center
Generations Center to Lathrop High School
Lathrop High School to Stanford Crossing
Stanford Crossing to Barbara Terry Boulevard
Manthey Road to South River Bend
Harlan Road to Grayson Road
Grayson Road to Halmar Lane
Halmar Lane to Seventh Street
Golden Valley Parkway to McKee Boulevard
McKee Boulevard to Village Avenue
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
Adobe Way
Almond Orchard Way
American Farms Avenue
Americana Way
Andover Way
Apple Grove Avenue
Applewood Way
Argillite Avenue
Aries Place
Arkose Street
Aspenwood Avenue
August Drive
Autumn Rain Drive
Autumnwood Avenue
Avon Avenue
Aztec Land
Back Bay Drive
Baywood Way
Bella Place
Bellchase Road
Berkshire Court
Bizzibe Street
Blackwood Avenue
Bloom Way
Blue Sky Drive
Boulder Avenue
Bramblewood Avenue
Brewer Street
Brookhurst Boulevard
Brookwood Way
Calcite Avenue
Cambridge Drive
Camelback Street
Camish Place
Cannella Drive
Carleta Place
Carnaby Road
Carnelian Avenue
Cedar Valley Drive
Cedarbrook Way
Channel Drive
Christie Falls Way
Claim Stake Avenue
Cloudy Bay
Ordinance No. 24- 456
21 Cobble Creek Way
Cold Springs Street
Colonial Trail
Covered Bridge Way
Craftsman Drive
Crescent Moon Drive
Crescent Park Circle
Daffodil Hill Street
Dalton Court
Danbury Place
Derby Lane
Dry Creek Place
Eagle Lane
Easy Street
Emerald Bay Court
Emory Oak Place
Englewood Way
English Country Trail
Eton Way
Evergreen Avenue
Exeter Court
Fairview Way
Ferndale Street
Ferry Launch Avenue
Finchwood Drive
Fleurette Lane
Flint Avenue
Forestwood Way
Forty Niner Trail
Four Corners Court
G Street
Gaar Avenue
Gail Drive
Galena Street
Garden Glade Street
Gardner Place
Garmetta Way
Gold Nugget Trail
Golden Spike Trail
Granite Avenue
Grapevine Place
Grayson Road
Green Plaza
Greengate Place
Gypsum Way
H Street
Halmar Lane
Havenwood Avenue
Historic Avenue
Homestead Avenue
Honey Place
I Street
Independence Avenue
Iron Horse Trail
3 Street
Janice Place
Jasper Street
Johnson Ferry Road
Jonquil Drive
Julie Lane
K Street
Kirkwood Way
L Street
Landmark Point
Late Harvest Place
Lazy Ridge Avenue
Leather Oak Road
Libby Lane
Liberty Point
Limestone Avenue
Lisa Lane
Loganberry Way
Long Barn Drive
Lottie Way
Magnetite Avenue
Maharaja Drive
Mariners Drive
Maxwell Lane
Meteorite Street
Milestone Drive
Mill Stone Way
Millpond Avenue
Mingo Way
Mossy Point Way
N Street
Navigator Drive
New England Avenue
New Well Avenue
Noel Lane
Obsidian Street
Old Glory Way
Old Wharf Place
Olivine Avenue
Onyx Avenue
Ore Claim Trail
Orlando Lane
Osage Place
Parkhaven Street
Parkside Drive
Pasture Avenue
Patricia Place
Patriot Way
Pecan Hollow Way
Pennant Avenue
Pheasant Downs Road
Pine Valley Drive
Pinewood Drive
Pioneer Avenue
Pipestone Street
Platinum Avenue
Pony Express Way
Poppy Drive
Prairie Dunes Drive
Princeville Street
Quartz Way
Rail Way
Red Barn Place
Redstone Street
Reiger Drive
Renaissance Avenue
Reverend Maurice Cotton Drive
River Bend Drive
Riverboat Drive
Riverdale Street
Rocky Harbor Road
Rosebriar Place
Rosewood Street
Ryhiner Lane
Saguaro Lane
Ordinance No. 24- 456
22 Samoa Lane
Sand Bar Way
Schumard Oak Road
Scrub Oak Drive
Sedona Lane
Settler Trail
Shadowberry Place
Shady Mill Way
Shadywood Avenue
Sheltered Cove
Shilling Avenue
Showlow Lane
Sierra Gold Trail
Siltstone Avenue
Silver Creek Drive
Sixth Street
South Lagoon Way
Section 2.

Southport Street
Spar Street
St. Andrew Street
Stage Coach Drive
Stone Cellar Way
Strawberry Glen Street
Sugar Pine Drive
Sunrise Place
Suzie Q Lane
Talc Street
Thomsen Road
Tidewater Point
Toro Lane
Town Square
Tracywood Avenue
Trestle Point
Tulip Tree Way
Tumbleweed Lane
Upstream Drive
Victorian Trail
Village Avenue
W Nut Tree Court
Warfield Road
Water Mills Street
Water Way
Waterman Avenue
Wheat Field Street
Wild Oak Drive
Williamstowne
Woodfield Drive
Wynona Way
Zalman Lane
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. Severability
If any provisions of this Ordinance or application thereof to any person or circumstances is held invalid, such invalidity shall not affect 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. 24- 456
23 THIS ORDINANCE was introduced at a regular meeting of the City Council of the City of Lathrop on the 8th day of January 2024. Thereafter, the City Council continued the matter to the regular meeting on the 12th day of February, 2024. On February 12, 2024, the City Council approved the introduction on first reading of the subject Ordinance. The Ordinance was PASSED AND ADOPTED at aregular meeting of the City Council of the City of Lathrop on the day of , 2024 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. 24- 456
24 ITEM 4.

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: REVIEW OF THE CAPITAL FACILITY FEE FUNDS
REPORT FOR FY 2022-023
RECOMMENDATION: Review of the Capital Facility Fee Funds Report for Fiscal Year 2022-023
SUMMARY:

Pursuant to the State of California Mitigation Fee Act ( also known as " AB 1600" CA Government Code Section 66006 et seq.), the City of Lathrop is required to provide an annual overview of fees collected by the Capital Facility Fee ( CFF) program as a result of new development. This report presents the background for each fee and shows last year' sfee schedules and history. The information provided is required by the Government Code ( GC) to be made available for public review and subsequently reviewed by City Council at the next regular meeting after being made public.

BACKGROUND:

The City' sCFF program was first instituted on October 10, 1990 to provide adequate capital facility improvements to serve new development within the City. Since then, the CFF program has been amended to ensure that new development pays its proportionate share of improvement costs needed as a result of new development.

In 2003, the CFF program was amended to include a broad range of capital facility fees and establish fees for a new development planned for West of I-5, mainly River Islands and Mossdale Landing.

In 2005, the CFF program was amended to establish fees for new development in the Central Lathrop Specific Plan ( CLSP) area and followed with revisions in 2007, adding the offsite roadway intersection improvements and the surface water supply fee components for the CLSP area.

In 2011, the CFF program was amended to establish the North Lathrop Transportation Impact Fee for new development impacting the Roth Road/ I-5interchange and the associated frontage roads in the North Lathrop area.

In May 2018, the CFF program was amended to keep pace with the rising cost of infrastructure, facilities and land. This amendment included adjusting existing fees for inflation and updating project costs for the West/ Central Lathrop Regional Transportation CFF, Surface Water Supply CFF, and the Water System CFF and establishing a new Sewer/ Recycled Water System CFF for the CLSP area. 25 CITY MANAGER' SREPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2022-023 In December 2018, the San Joaquin Area Flood Control Agency ( SJAFCA) Mossdale Tract Area Regional Urban Level of Flood Protection ( ULOP) Development Impact Fee DIF) agreement replaced Lathrop' s 2017 Interim Levee Fee for the Reclamation District 17 Urban Level of Flood Protection Levee System Improvements.

In February 2019, the CLSP CFF Study update established a new In -Lieu Community Parks Dedication Fee, adjusted existing inflation fees and updated project costs and fees for the West/ Central Lathrop Regional Transportation and the Sewer/ Recycled Water System. The CLSP Neighborhood Park Capital Facility Fee was updated in February 2021 to reflect the actual park development costs realized by the developer of the CLSP.

In June 2019, the CLSP CFF Study established a new CFF for the Storm Drainage System Improvements - Watershed 2, Storm Drainage System Improvements - Watershed 4, Entitlements, and Prior Developer Account Open Items to reimburse the construction of storm drainage facilities and reimburse past expenditures associated with developing the CLSP area.

In October 2019, the South Lathrop Specific Plan ( SLSP) and the Lathrop Gateway Business Park Specific Plan ( LGBPSP) CFF Study provided an update to the CFF program for the SLSP area and established a fee program for the LGBPSP area. In May 2020, the CFF program was updated based on actual facility construction cost for SLSP and LGBPSP.

In February 2020, the Sewer Reimbursement CFF Study established a new Sewer Reimbursement fee for the construction of oversized sewer facilities, including future construction of sewer facilities within the City.

In July 2022, the West/ Central Regional Transportation and Central Lathrop Specific Plan CFFs were updated to include new traffic signals, storm drainage facilities, and a water tank and booster pump facility located in the Central Lathrop Specific Plan.

The CFF program provides a source of revenue by which new development within the City will contribute their fair share of the costs that directly affect the need to construct infrastructure or expand community public facilities to meet growth needs. 26 CITY MANAGER' S REPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2022-023 The City' sCFF program funds improvements in the following categories:

1. Transportation
a. Local
b. Regional

2. Culture and Leisure

3. Municipal Services

4. Storm Drainage

5. Administration

6. San Joaquin County Multi -Species Habitat

7. Environmental Mitigation

8. Park -In -Lieu

9. Water

10. Surface Water

11. Sewer
The Annual CFF report, included as Attachment " A", required by California GC 66006 et seq., was developed to identify the balances of fees in the Capital Facility Fee funds. The annual report provides the following information for each fee:
a detailed description
the fee amount
beginning and ending balances for the fiscal year
fees collected and interest earned
transfers, refunds, and expenditures
The expenditures have been further broken down to identify the public improvements on which the fees were expended and the amount of expenditures for each improvement.

The Five -Year CFF Fund Report provides an overview of the improvement projects identified in the CFF program. The report lists the estimated cost for each project and the approximate date available. The fees and project costs are adjusted annually based on the annual changes to the Engineering News - Record Construction Cost Index ( ENR CCI). The annual adjustment utilizing the ENR CCI ensures the current cost of construction and appropriate fees reflect the effects of inflation.

REASON FOR RECOMMENDATION:

The attached report was made public on February 21, 2024, pursuant to Section 66006 et seq. of the California Government Code, which requires a detailed report regarding the collection and expenditure of fees in the CFF program. Pursuant to the California GC, the report is required to be made public and the City Council is required to review the information made available to the public at its next regular scheduled meeting.
27 CITY MANAGER' SREPORT PAGE 4
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2022-023 FISCAL IMPACT:

The cost for this item was staff time and materials to complete the attached report.

ATTACHMENTS:

A. Capital Facility Fee Funds Report for report period Fiscal Year 2022-023 28 CITY MANAGER' SREPORT PAGE 5
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
REVIEW OF THE CAPITAL FACILITY FEE FUNDS REPORT FOR FY 2022-023 APPROVALS:
2 - 2t - z4
Bella) Nabizadah Date
Assistant Engineer
Brad' faylor Date
2/1, 7. 01-` I
City Engineer
ick Ca
Community Development Director
ei/ ozilati
Cari Ja es Date
Finance Director

2. 2(0- zo2y
Michael King Date
Assistant City Manager
Salvador Na ?arrete
City Attorney
St en J. Salvatore
City Manager
2)- ZoLY
Date
Date
29 ATTACHMENT
A ..

City of Lathrop
Capital Facility Fee Funds Report
2022 — 2023
Made Pursuant to Government Code
Section 66000 et seq.

Made Available for Public Review on:

February 21, 2024
City Council Agenda Date:

March 11, 2024
For further information, please contact:

Brad Taylor, City Engineer, Public Works Department
209) 941- 7438
30 Capital Facility Fee Funds Report
Table of Contents
Capital Facility Fee Fund Listing
Regional Transportation Impact Fee — 2230 3
Local Transportation Impact Fee — 2250 5
Culture and Leisure Capital Facility Fee — 2260 8
Municipal Services Capital Facility Fee — 2270 11
Storm Drainage Capital Facility Fee — 2280 14
Administration Capital Facility Fee — 2290 18
Environmental Mitigation Capital Facility Fee — 2310 20 Regional Levee Impact Fee — 2315 22
West Central Lathrop Transportation Capital Facility Fee — 2320 24 West Lathrop Specific Plan Regional Transportation Impact Fee — 2330 27 Lathrop Local East — 2340 and Lathrop Local West - 2360 29 Regional Transportation Impact Fee San Joaquin County — 2350 32 Regional Transportation Impact Fee San Joaquin Council of Governments 15% — 2370 34 Offsite Roadway Improvements Capital Facility Fee — 2380 36 North Lathrop Transportation Capital Facility Fee — 2420 38 Park in Lieu — 3410 40
Water Capital Facility Fee — 5610 42
Surface Water Capital Facility Fee — 5640 47
Sewer Capital Facility Fee — 6030 50
Report Period: July 1, 2022 to June 30, 2023 Page 2
31 Capital Facility Fee Funds Report
Regional Transportation Impact Fee — 2230
Regional Transportation Impact Fee — 2230

1. Fee Information
a. Description and History of Fee: This fee was collected to fund street improvements for Lathrop' s regional roadways. The fee originated in 1990 and was adopted by Lathrop City Council on October 10, 1990. The Regional Transportation Fee was calculated in coordination with the San Joaquin County Council of Governments to provide countywide transportation improvements for street and highway projects identified in the Congestion Management Program ( CMP). Improvements to both Lathrop and Interstate 5 are included in the CMP.

The fee was reevaluated in the November 1, 1994 CFF Update and was updated to reflect the effects of inflation. In addition, the McKinley Avenue and Yosemite Avenue Intersection Improvements were added to the CFF. Updates to the Regional fee were also done in September of 2003 and again in August of 2005. The 2003 and 2005 studies included adjusting the previous Capital Facility Fee in Historic Lathrop East) to reflect the effects of inflation.

The San Joaquin Regional Transportation Impact Fee ( RTIF) is automatically adjusted on an annual basis at the beginning of each fiscal year ( July 1) based on the Engineering News Record California Construction Code Index ( CCCI).
b. Amount of Fee: The Regional Transportation Fee was changed to the San Joaquin Regional Transportation Impact Fee ( RTIF) as of February 20, 2006. Funds collected as a result of the newly adopted fee are reported in Funds 2340 and 2360. As of February 20, 2006, the Regional Transportation Fee is no longer collected.

Land Use Type
Residential ( Single -Family)
Residential ( Multi -Family)
Retail
DUE
DUE
0-
0-
Office
Commercial/ Industrial
Sq. Ft
Sq. Ft
Sq. Ft
0-
0-
0-
Report Period: July 1, 2022 to June 30, 2023 Page 3
32 Capital Facility Fee Funds Report
Regional Transportation Impact Fee — 2230

2. Fund Information ( During Reporting Period)
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
c. Interest Earned
d.
e.

Expenditures
Transfer Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2230 expended during the reporting period? No 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2230 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2230 refunded during this reporting period? No

3. Planned Projects for Fiscal Year 2023-4: Identification of each improvement on which reportable fees will be expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that will be funded with reportable fees:

The Regional Transportation Impact Fee Fund 2230 does not currently have funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023- 2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 4
33 Capital Facility Fee Funds Report
Local Transportation Impact Fee — 2250
Local Transportation Impact Fee — 2250

1. Fee Information
a. Description and History of Fee: This fee is collected to fund street improvements for existing city streets to accommodate for increased road usage due to new development. The Crossroads fee is an exception in that it is collected to reimburse the developer for infrastructure that was built with the original project.

The fee originated in 1990 and was adopted by the Lathrop City Council on October 10, 1990. The original fee was designed to fund the widening of local roads from two lanes to four lanes as well as the addition of traffic signals and turning lanes to increase the capacity of intersections. In 1990 the Engineering Report for the Lathrop Traffic Mitigation Fee identified an estimated $ 6. 4 million in signal system, intersection and road widening improvements.

An update to the fee was adopted by the Lathrop City Council and adopted on November 1, 1994. The update included the same projects that were included in the original Capital Facility Fees ( CFF), with the exception of Louise Avenue and the addition of the McKinley Avenue Mainline Improvements. The widening and improvements of Louise Avenue between Harlan Road and Fifth Street were completed prior to the 1994 update ( with CFF funds as a contributing source) which is why Louise Avenue was omitted from the 1994 update.

The Local Transportation CFF was reevaluated in September 2, 2003 and again in August 1, 2005. The studies included adjusting the previous CFF in Historic Lathrop ( East) to reflect the effects of inflation.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

65. 8 million in interchange improvements, road -widening improvements, and railroad crossing improvements. In October 2019 the SLSP and the Lathrop Gateway Business Park Specific Plan LGBPSP) CFF study provided an update to the CFF program for the SLSP area and established a fee program for the LGBPSP area. The LGBPSP CFF Study identified approximately $ 56. 7 million in transportation improvements. In May 2020 the CFF program was updated based on actual facility construction cost for SLSP and LGBPSP.
b. Amount of Fee: The amount of the fee varies by land use type and location.

East Lathrop/ Nort
Land Use Type
Single Family Residential
Multi -Family Residential
Commercial
DU 4, 085 4, 312
DU 3, 004
5,78
1, 643
3, 170
5, 888
1, 734
1, 000 sqft
1, 000 sqft Industrial/ Warehouse
Crossroads Unit uly. i 22 202
Land Use Type Dec. 31. 2022
Commercial Acre 33, 769 35, 645
Industrial 1, 000 sqft 1, 226 1, 294
Report Period: July 1, 2022 to June 30, 2023 Page 5
34 Capital Facility Fee Funds Report
Local Transportation Impact Fee - 2250
Industrial/
Limited Industrial
1, 000 sqft $ 1, 470 1, 551
Office Commercial
Retail Commercial
Warehouse
1, 000 sqft $ 22, 525
1, 000 sqft $
1, 000 sqft $ 1, 470
23, 776
1, 551
Industrial/
Limited Industrial
1, 000 sqft $ 1, 470 1, 551
Office Commercial
Retail Commercial
Warehouse
1, 000 sqft $ 22, 525
1, 000 sqft $
1, 000 sqft $ 1, 470
23, 776
1, 551
Industrial/
Limited Industrial
1, 000 sqft $ 1, 465 1, 547
Office Commercial
Retail Commercial
Warehouse
1, 000 sqft $ 18, 896
1, 000 sqft $ 6,34
1, 000 sqft $ 1, 465

2. Fund Information ( During Reporting Period)
19, 945
7, 002
1, 547
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
835, 515
49, 141
c. Interest Earned 11, 326
d.
e.

Expenditures
Transfers Out 170, 00)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 725, 582
Report Period: July 1, 2022 to June 30, 2023 Page 6
35 Capital Facility Fee Funds Report
Local Transportation Impact Fee — 2250
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2250 expended during the reporting period? No 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2250 transferred or loaned during the reporting period? Yes A total of $170, 00 was transferred from Fund 2250 to the following projects:
170, 00 to the Louise Avenue and McKinley Avenue Signal Improvements Project PS 15- 02
2f. Description of refunds made during reporting period.

Were funds from Fund 2250 refunded during this reporting period? No

The Local Transportation Impact Fee Fund 2250 currently has funds appropriated to the Capital Improvement Program ( CIP) Project listed below for Fiscal Year 2023-4. Please refer to the City' s 2023-
2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321. roject
Louise Ave & McKinley Avenue
Signal Improvements, PS 15- 02
1,41, 327 59
Total 1,41, 327
Report Period: July 1, 2022 to June 30, 2023 Page 7
36 Capital Facility Fee Funds Report
Culture and Leisure Capital Facility Fee — 2260
Culture and Leisure Capital Facility Fee — 2260

1. Fee Information
a. Description and History of Fee: The Culture and Leisure Capital Facility Fee is collected to fund costs for the completion of Neighborhood, Community and Linear Parks, a Library, Cultural Center, Senior Center and Community Center.

The Culture and Leisure Capital Facility Fee was first implemented with the adoption of the October 10, 1990 CFF Study Report. The original fee collected funds merely for Parks and a Library. The Capital Facility Fee program was reevaluated in 1994 and in addition to a park and library component, a component for a cultural center was added. Adopting this change increased the fee for both Single Family from $ 1, 627 to $ 1, 789) and Multi -Family (from $ 1, 084 to $ 1, 295) residential dwelling units.

In September of 2003, the City Council again adopted a revision to the Culture and Leisure CFF. This amendment to the CFF was implemented to capture the new direction in which the City was headed. The City has since approved planned communities, that combined exceed 17, 000 new homes, for Mossdale Landing, Central Lathrop Specific Plan Area and River Islands. These communities have pushed Lathrop' s population well over the 12, 980 projection for year 2010 ( as of January 2011, the City of Lathrop' spopulation was estimated at over 18, 656) hence the need for an increase in facilities. The 2003 update increased the fee significantly for both Single Family and Multi -Family residential dwelling units and added a Senior Center to the list of facilities.

The 2005 update to the Culture and Leisure CFF split the fee into two separate components; Parks and Facilities. This was done to ensure enough monies were collected for both areas of culture and leisure as well as to ensure the importance of both sub -components. This update also included an increase to capture the effects of inflation.

The Culture and Leisure CFF was reevaluated May 3, 2018 adjusting the previous CFF to reflect the effects of inflation. The studies also included adjusting the total library space to 31, 100 square feet at build out as well as a reduction in the library square footage standard to 475 square feet per 1, 000residents.

Additionally, the 5. 76 acre of land associated with the Generation Center was added to the CFF program with no net increase to the CFF rates for the Culture and Leisure Facility sub - component.

The Central Lathrop Specific Plan ( CLSP) Neighborhood Park Capital Facility Fee was updated on February 8, 2021, to be consistent with the actual park development costs realized by the primary developer of the CLSP. The cost to construct the CLSP neighborhood park improvement was estimated to be $ 298, 501 per acre in the development agreement. Subsequently, it was inflated to $ 322, 65per acre in 2020, based on the ENR 20 -City Construction Cost Index (the " CCI"). Based on the actual development costs for the Phase 1A Neighborhood Park constructed by Saybrook in 2020, the total cost increased to 390, 251 per acre.

Report Period: July 1, 2022 to June 30, 2023 Page 8
37 Capital Facility Fee Funds Report
Culture and Leisure Capital Facility Fee - 2260
b. Amount of Fee: The amount of the fee varies by land use type and location.

Accounting Period
July 1, 2022 to Dec. 31, 2022 January 1, 2023 to June 30, 2023 Land Use Type ( Unit)
HistoricalHarlanop
Mossdale Village
Central
Lathrop
Historical
Lathrop North
Harlan
Mossdale
Village
Central Lathrop
Single Family ( DU)
Neighborhood Parks 6, 343 4,16 6,96 4, 661
Community/ Linear
Parks
4, 396 4, 641
Facilities 3, 886 3, 886 4,102 4, 102
Multi -Family (DU)
Neighborhood Parks 4, 531 3, 154 4, 782 3,29
Community/ Linear
Parks 3, 141 3,15
Facilities 2, 775 2, 775 2, 929 2, 929
Land Use Type (Unit)
e
Accounting Period
July 1, 2022 to Dec. 31, 2022
Mossdale Landing Stewart Tract
January 1, 2023 to June 30, 2023
Mossdale Landing Stewart Tract
Parks 6, 342
2, 546
6,94
Facilities 2, 688
iti- Family (DU)
Parks
3, 886 4, 102
4, 529
1, 818
4, 780
Facilities 2, 775 1, 919 2, 929

2. Fund Information ( During Reporting Period)
Source snount
a. Beginning Fund Balance as
of July 1, 2022 20, 583, 757
b. Fees Collected 4, 314, 134
c. Interest Earned 252, 89
d. Expenditures
e. Transfers Out 7,98, 431)
f. Refunds
g. Ending Fund Balance as of
June 30, 2023 17, 622, 289
Report Period: July 1, 2022 to June 30, 2023 Page 9
38 Capital Facility Fee Funds Report
Culture and Leisure Capital Facility Fee — 2260
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2260 expended during the reporting period? No 2e. Transfers and Loans: Description of Transfers and Loans made from fund.

Were funds from Fund 2260 transferred or loaned during the reporting period? Yes A total of $7,98, 431 was transferred from Fund 2260 to the following projects; 34, 532) to the Generation Center Improvements Project PK 20-3 11, 782) to the Cricket Pitch on Banta School Property Project PK 22- 40 25, 689to reimburse developer
7, 819, 056 to Reimburse CLSP for parks
2f. Refunds: Description of refunds made during reporting period.

Were funds from Fund 2260 refunded during this reporting period? No

The Culture and Leisure Capital Facility Fee Fund 2260 currently has funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Project
New Lathrop Community Center,
PK 22- 05
6, 599, 999 100
gents
Shilling Avenue Park Improvements,
PK 22- 34
370, 00 27
Total 6, 969,99
Report Period: July 1, 2022 to June 30, 2023 Page 10
39 Capital Facility Fee Funds Report
Municipal Services Capital Facility Fee — 2270
Municipal Services Capital Facility Fee — 2270

1. Fee Information
a. Description and History of Fee: The Municipal Services Capital Facility Fee is collected to fund costs related to a new City Hall, Police Station, Corporation Yard and Animal Shelter needed to support the growth of the City.

The Municipal (City) Services Capital Facility Fee ( CFF) was first implemented with the adoption of the October 10, 1990 CFF Study Report. The original fee collected monies to fund a new city hall, police station and a corporation yard for field staff ( operations and maintenance). The Capital Facility Fee program was reevaluated in 1994 and in addition to the facilities previously adopted with the original study; a component for an Animal Control Facility was added. Adopting this change increased the fee for residential land use types as well as for commercial and industrial.

In September of 2003, the City Council again adopted a revision to the Municipal Services CFF. This amendment to the CFF was implemented to ensure that the City was collecting enough monies to fund the facilities needed to accommodate new development as the existing facilities ( excluding city hall) do not meet the City' sservice level standards.

The City was contracted with the City of Manteca for its animal control shelter facilities since Lathrop did not have one of its own.

The City' sPolice Services Department, previously contracted with the San Joaquin County Sheriff' s Department, is too small to expand for the City' s anticipated growth. At build out there will not be enough room to expand for the projected 1. 5 sworn peace officers per 1, 000 residents.

The Corporation Yard facility that houses most of the City' sfield staff (maintenance and operations) as well as much of the City' sequipment and vehicles is too small to accommodate for growth.

A 2005 update to the Municipal Services CFF increased the fee to reflect the effects of inflation.

Additionally, a Performing Arts Center was added to accommodate the City' s growing population and a Wireless Network was added to ensure that the City is keeping up with technology to offer residents and employees the highest level of service.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

Report Period: July 1, 2022 to June 30, 2023 Page 11
40 Capital Facility Fee Funds Report
Municipal Services Capital Facility Fee — 2270
b. About the Fee: The amount of the fee varies by land use type and location. The fees are as follows:

Accounting Period
July 1, 2022 to
December 31, 2022
January 1, 2023 to
June 30, 2023
Land Use Type ( Unit)
East Lathrop/ North Harlan/
Mossdale Village/
Crossroads/
Central Lathrop/ Stewart Tract
East Lathrop/ North Harlan/
Mossdale Village/
Crossroads/
Central Lathrop/ Stewart Tract
Single Family (ICU)
Residential 4, 354 4, 596
Multi -Family (DU)
Residential 3, 110 3, 282
Service Retail
Per 1, 000 sf.) 2, 837 2, 995
Other Non -Residential
Per 1, 000 sf.). 1, 717 1, 812
Accounting Period
July 1, 2022 to
December 31, 2022
January 1, 2023 to
June 30, 2023
Land Use Type Mossdale Landing Mossdale Landing
Single Family
Residential 4, 277 4, 514
Multi -Family
Residential 3, 056 3, 225
Service' Retail
Per 1, 000 sf.)
2777 2, 931
Other Non -Residential
Per 1, 000 sf.) 1, 680 1, 773
Accounting Period
July 1, 2022 to
December 31, 2022
January 1, 2023 to
June 30, 2023
Land Use Type
South Lathrop Specific Plan —
SLCC/ Non SLCC,
Gateway Business Park
South Lathrop Specific Plan —
SLCC/ Non SLCC,
Gateway Business Park
Service Retail
Per 1, 000 s£) 2, 837 2, 995
Other Non -Residential
Per 1, 000 sf.) 1, 717 1, 812
Report Period: July 1, 2022 to June 30, 2023 Page 12
41 Capital Facility Fee Funds Report
Municipal Services Capital Facility Fee — 2270

2. Fund Information (During Reporting Period)
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
14, 634, 320
2, 739, 910
c. Interest Earned 201, 905
d.
e.

Expenditures
Transfers Out
381, 000)
10, 815, 407)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 6, 378, 728
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2270 expended during the reporting period? Yes A total of $381, 000 was expensed from Fund 2270 to the City Hall Facility service debt. 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2270 transferred or loaned during the reporting period? Yes 317, 407 was transferred to the Police Building Project, GG 19- 08. 10, 498, 000 was transferred to the Corp Yard Project, GG 21- 13. 2f. Description of refunds made during reporting period.

Were funds from Fund 2270 refunded during this reporting period? No

The Municipal Services Fee Fund 2270 currently has funds appropriated to the Capital Improvement Program ( CIP) Project listed below for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Project Amount o of Improvements
Corp Yard Improvements, GG 21- 13 10,20, 000 100
Total 10,20, 000
Report Period: July 1, 2022 to June 30, 2023 Page 13
42 Capital Facilities Fee Funds Report
Storm Drainage Capital Facility Fee — 2280
Storm Drainage Capital Facility Fee — 2280

1. Fee Information
a. Description and History of Fee: This Storm Drainage Capital Facility Fee ( CFF) is collected to fund storm drainage improvements to support new development. The Crossroads fee is an exception in that it is collected to reimburse the developer for infrastructure that was built with the original project.

On February 20, 1987, San Joaquin County Ordinance Number 3297 established a fee of $1, 000 per gross acre of land to reimburse the costs of establishing the storm drain system known as " City Service Zone 1". This fee was to be updated every year by the Engineering News Record ( ENR) Construction Cost Index for inflation.

On July 7, 1992, the City adopted a Storm Drain Master Plan which identified the facilities in place, existing deficiencies, and needed improvements for terminal storm drainage in areas of the existing City and surrounding area. Storm drainage CFFs were established in 1994. The City' s only terminal storm drain system consisted of the former County Service area 4, Zones A & B ( designed by the County), which included most of the populated areas of the City at that time. This system has been expanded on several occasions as a result of new growth and has been re -designated as " Storm Drain City Zone 1".

The Storm Drainage Capital Facility Fee was reevaluated in September 2, 2003 and again in August 1, 2005. The studies included adjusting the previous Capital Facility Fee in Historic Lathrop (East) to reflect the effects of inflation. Additionally, new CFF fees were established for the Mossdale development area to be used as funding for the improvement the development community would be constructing.

New development that occurs in the areas surrounding City Zone 1 must pay a fee to the Area of Benefit District No. 6, which was established by San Joaquin County ( Ord. 3297) to reimburse the capital costs of constructing the trunk and outfall lines of the current system.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

1. 7 million to construct an outfall facility that would be allocated equally to the three developments that will benefit from this facility.

In June 2019, the Central Lathrop Specific Plan ( CLSP) CFF Study established a fee program for the CLSP area. The CLSP CFF Study identified approximately $13. 9 million storm drainage improvements.

In October 2019 the SLSP and the Lathrop Gateway Business Park Specific Plan ( LGBPSP) CFF study provided an update to the CFF program for the SLSP area and established a fee program for the LGBPSP area. The LGBPSP CFF Study identified approximately $ 12. 8 million storm drainage facilities improvements. In May 2020, the CFF program was updated based on actual facility construction cost for SLSP and LGBPSP.

In July 2022, the CLSP storm drainage fees were updated to reflect the actual costs of the storm drainage facilities serving the area. The effective date of the updated fees were October 10, 2022.

Report Period: July 1, 2022 to June 30, 2023 Page 14
43 Capital Facilities Fee Funds Report
Storm Drainage Capital Facility Fee - 2280
b. Amount of Fee: The amount of the fee varies by land use type and location.

Low Density Residential DU $ 1, 026 $ 1, 026 $ 392 $ 1, 083 Medium Density Residential DU $ 269 -
High Density Residential DU $ 210
Village Commercial Acre $ 4, 857
Service Commercial Acre $ 7, 053 $ 7, 053 $ 4, 857 $ 7, 445 Freeway Commercial Acre $ 12, 657 $ 12, 657 $4, 857 $ 13, 360 Neighborhood Commercial Acre $ 3, 133 $ 3, 133 $ 4, 857 $ 3,07 Limited Industrial Zone 5 Acre $ 9, 845 $ 9, 845 $ 10, 392 Limited Industrial Other Zones Acre $ 5, 487 $ 5, 487 - $ 5, 792 General Industrial Acre $ 6,63 $ 6,63
Transit Station ( Lathrop Road) Acre $ 6, 269 $ 6, 269
Fire Station ( Yosemite) Acre $ 7, 053 $ 7, 053
Area of Benefit 6
1, 083 $ 414
284
222
5, 127
7, 445 $ 5, 127
13, 360 $ 5, 127
3,07 $ 5, 127
10, 392 -
5, 792
7, 033
6,18
7, 445
7, 033
6,18
7, 445
Acre $ 2, 734 2, 886
Or
Onsite Acre 14, 616 15, 428
Offsite Acre 8, 335 8, 798
All Developmer Acre $ 52, 256 39, 523 60, 579 45, 322 63, 943 47, 839 Single Family
Multi -Family
DU
DU
9, 655
3,61
10,91
3, 548
OFC Commercial 1, 000 sf. 70, 184 5, 375 74, 082 5, 673 Limited WHS 1, 000 sf. 70, 184
70, 184
5, 375
5, 375
74, 082
74, 082
5, 673
Warehouse 1, 000 sf. 5, 673
Report Period: July 1, 2022 to June 30, 2023 Page 15
44 Capital Facilities Fee Funds Report
Storm Drainage Capital Facility Fee — 2280
Shopping Center 1, 000 sf. $ 4, 216
Office Park
Industrial Park
Warehouse
1, 000 sf. $ 3, 699
1, 000 sf. $ 2,88
1, 000 sf. $ 2,88

2. Fund Information ( During Reporting Period)
399
350
216
216
4,51 $ 421
3, 904 $ 369
2, 415 $ 228
2, 415 $ 228
a. Beginning Fund Balance as of July 1, 2022 123,07)
b. Fees Collected 540,99
c. Interest Earned 1, 558
d. Expenditures 390,64)
e. Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023 28, 686
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2280 expended during the reporting period? Yes A total of $390,64 was expensed from Fund 2280 to the following projects; 243, 763 for the City' sshare ofthe South Lathrop' sRegional Outfall Structure. 146, 601 for reimbursement to developer of CLSP
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2280 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2280 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 16
45 Capital Facilities Fee Funds Report
Storm Drainage Capital Facility Fee — 2280

The Storm Drainage Capital Facility Fee Fund 2280 currently does not have funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s2023- 2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 17
46 Capital Facilities Fee Funds Report
Administration Capital Facility Fee — 2290
Administration Capital Facility Fee — 2290

1. Fee Information
a. Description and History of Fee: The purpose of the capital facility fee program is to provide a source of revenue by which new development within the City will contribute a fair and proportionate share of the cost of providing infrastructure and community facilities commensurate with the benefits received. Under Government Code Section 66000 et seq., the City is required to separately account for revenues and expenditures within the capital facilities fee funds and is allowed to apply an appropriate fee for administration of Transportation, Municipal Services, Culture and Leisure, and Regional Levee Fees as identified in the report titled " City of Lathrop Capital Facilities Fees, As Amended September 2, 2003" and the " Mossdale Tract Area Regional Urban Level of Flood Protection Levee Impact Fee, Nexus Study, Adopted by SJAFCA, Resolution No. 18- 21, November 8, 2018".

In June 2019, the Central Lathrop Specific Plan ( CLSP) CFF Study established fees to reimburse past expenditures associated with developing the CLSP area. In October 2019, the Lathrop Gateway Business Park Specific Plan ( LGBPSP) CFF study established a fee program. In May 2020, the CFF program was updated based on actual facility construction costs for the SLSP and LGBPSP development areas.
b. Amount of Fee: This fee is calculated as a percentage of the capital facilities fees charged prior to issuance of the building permit. Currently the fee is 3% of all capital facility fees applicable to the project.

2. Fund Information ( During Reporting Period)
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
3, 153, 695
571, 858
c. Interest Earned 43, 382
d.
e.

Expenditures
Transfers Out 100, 00)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 3, 668, 935
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2290 expended during the reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 18
47 Capital Facilities Fee Funds Report
Administration Capital Facility Fee — 2290
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2290 transferred or loaned during the reporting period? Yes A total of $ 100, 00 was transferred from Fund 2290 to cover the Capital Facility Fee Program administration costs.
100, 00 was transferred to the Admin Services, General Fund. 2f. Description of refunds made during reporting period.

Were funds from Fund 2290 refunded during this reporting period? No

The Administration Capital Facility Fee Fund 2290 does not currently have funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023- 2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 19
48 Capital Facilities Fee Funds Report
Environmental Mitigation Capital Facility Fee — 2310
Environmental Mitigation Capital Facility Fee — 2310

1. Fee Information
a. Description and History of Fee: One of the environmental mitigation measures required in relation to development on the west side of Interstate 5 is the protection of habitat for the Riparian Brush Rabbit. To meet this requirement, land in the " oxbow" along the San Joaquin River was acquired, fenced, and maintained as protected habitat. This fee will be used to acquire the land and construct a fence needed to protect the rabbit as identified in the report titled " City of Lathrop Capital Facilities Fees, As Amended September 2, 2003." Ongoing maintenance costs are to be funded through an endowment or other means, and are not included herein.
b. Amount of Fee: The amount of the fee varies by land use type and location and is only applicable to the Mossdale Village/ Landing area.

Low Density Residential
Medium Density
Residential
229 241
129 137
High Density Residential
Village Commercial
Service Commercial
47 1, 095
1, 095
1, 095
1, 095
50 1,56
1,56
1,56
1,56
Freeway Commercial
Waterfront Resort
Commercial

2. Fund Information During Reporting Period
a.
b.

SQ'
Beginning Fund Balance as of July 1, 2022
Fees Collected
c. Interest Earned
d.
e.

Expenditures
Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023
Report Period: July 1, 2022 to June 30, 2023 Page 20
49 Capital Facilities Fee Funds Report
Environmental Mitigation Capital Facility Fee — 2310
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2310 expended during the reporting period? No 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2310 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2310 refunded during this reporting period? No

3. Planned Projects for Fiscal Year 2023-024: Identification of each improvement on which reportable fees will be expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that will be funded with reportable fees:

The Environmental Mitigation Fund 2310 does not currently have funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 21
50 Capital Facilities Fee Funds Report
Regional Levee Impact Fee — 2315
Regional Levee Impact Fee — 2315

1. Fee Information
a. Description and History of Fee: In 2007, the legislature passed California State Bill 5 ( SB5), which requires the state to develop and adopt a comprehensive Central Valley Flood Protection Plan ( CVFPP), The CVFPP was approved by the Central Valley Flood Protection Board in June 2012. In January 2017, Lathrop City Council approved the Interim Urban Levee of Flood Protection Levee Impact Fee ( Nexus Study), Ordinance No. 17- 374, adding the fee to the Capital Facility Fee Program to fund the design and construction of levee system improvements to provide 200 -year flood protection to the Reclamation District 17 area.

On December 10, 2018, Lathrop City Council approved the Regional Levee Impact Fee Collection Agreement with San Joaquin Area Flood Control Agency ( SJAFCA) and Cities of Lathrop, Manteca, Stockton and San Joaquin County for the collection of the San Joaquin Area Flood Control Agency Mossdale Tract Area Regional Urban Levee Flood Protection Development Impact Fee. Replacing the Interim Urban Levee of Flood Protection Levee Impact Fee as a result. The Regional Levee Impact Fee is collected by the Land Use Agencies in accordance with the agreement for collection of the San Joaquin Area Flood Control Agency Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee.

On September 12, 2022, Lathrop City Council approved the Nexus Study Update for the Regional Urban Level of Flood Protection Levee Impact Fee. This update reflects an updated program cost estimate that addresses climate change and updates to program funding from other sources. The effective date of the updated fee was November 11, 2022.
b. Amount of Fee: The amount of the fee varies by planned new development land use type.

Single Family
Residential
Acre 20,32 626 21, 462 644
Multi -Family
Residential
Acre 18, 423 570 20, 084 603
Commercial Acre 19,60
15, 943
593 20, 307
15, 907
609
Industrial Acre 493 477
Report Period: July 1, 2022 to June 30, 2023 Page 22
51 Capital Facilities Fee Funds Report
Regional Levee Impact Fee — 2315

2. Fund Information During Reporting Period
Source.
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected 1, 445, 002
c. Interest Earned 755
d.
e.

Expenditures
Transfers Out
1, 445, 77)
f. Refunds
g. Ending Fund Balance as of June 30, 2023
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2315 expended during the reporting period? Yes A total of $1, 445, 757 was expensed from Fund 2315 to SJAFCA pursuant to the approved Regional Levee Impact Fee Collection Agreement for the Mossdale Tract Area Regional Urban Levee Flood Protection Development Impact Fee.
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2315 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2315 refunded during this reporting period? No

The Regional Levee Impact Fee Fund 2351 will not have funds appropriated to any Capital Improvement Program ( CIP) Projects. Its purpose is to collect and transmit the development impact fee to SJAFCA to fund construction of the development impact fee projects identified in the Mossdale Tract Area Regional Urban Level of Flood Protection Levee Impact Fee Study " Final Nexus Study" adopted November 8, 2018, SJAFCA, Resolution No. 18- 21.

Report Period: July 1, 2022 to June 30, 2023 Page 23
52 Single Family DU 3, 994 3, 012 4, 192
Capital Facilities Fee Funds Report
West Central Lathrop Transportation Capital Facility Fee - 2320 West Central Lathrop Transportation Capital Facility Fee - 2320

1. Fee Information
a. Description and History of Fee: The West/ Central Lathrop Regional Transportation Fee is a supplemental fee collected, in conjunction with the original 1997 WLSP ( West Lathrop Specific Plan) Regional Transportation Fee, in order to fund traffic improvements needed as a result of new development.

Negotiations between developers and City staff concluded that a West/ Central Lathrop Regional Traffic Impact Fee would be added to the Capital Facilities Fee ( CFF) Program that would help to fund projects identified in the 1997 WLSP Regional Fee as well as to fund newly added improvements.

The W/ C Lathrop Regional Transportation Fee was derived as a result of a traffic study performed by TJKM Transportation Consultants that evaluated trips to / from the regional areas of Lathrop to / from five major service areas within Lathrop: Central Lathrop Specific Plan Area, Mossdale Village, River Islands, Historic Lathrop and area outside of the city limits.

The West Central Lathrop Transportation CFF was reevaluated January 23, 2019. After further review City staff found the project cost were consistent with current cost estimates to construct the improvements with exception of the Louise Avenue Interchange and the Paradise Avenue Interchange improvements.

As a result, the fee study includes adjusting the previous CFF to reflect the effects of inflation as well as an increase to the rates for Central Lathrop, Mossdale Village and River Islands.

In July 2022, the West Central Transportation CFF was updated to include new traffic signals. The effective date of the updated fees were October 10, 2022 b. Amount of Fee: The amount of the fee varies by land use type and location.

July 1, 20
Land Use T3
Single Family
Multi -Family
Retail
Commercial
DU 3, 987
2, 459
3, 012
1, 852
4, 082
2, 505
4, 590
DU 2, 817
1, 000 sf 6, 316 4, 774 5, 201 7, 627
Service/ Office
Commercial 1, 000 sf 5, 720 4, 327 3, 800 4,211
October. 10,; 20;
lands -
Tract
4, 592
Multi -Family 2, 819
Retail
Commercial
DU 2, 463 1, 852 2, 574
1, 000 sf 6, 327 4, 774 5, 342 7, 631
Service/ Office
Commercial 1, 000 sf 5, 730 4, 327 3, 902 4, 213
Report Period: July 1, 2022 to June 30, 2023 Page 24
53 Capital Facilities Fee Funds Report
West Central Lathrop Transportation Capital Facility Fee — 2320 Single Family
Multi -Family
Retail
Commercial
DU 4, 216
2, 600
3, 179
1, 954
4,25 $ 4, 847
DU 2, 717 $ 2, 976
1, 000 sf 6,78 5, 040 5, 639 $ 8, 055
Service/ Office
Commercial 1, 000 sf 6, 048 4, 567 4, 119 $ 4,47

2. Fund Information ( During Reporting Period)
a.
b.

Source
Beginning Fund Balance as of July 1, 2022
Fees Collected
14, 209, 172
2, 750, 452
c. Interest Earned 191, 264
d.
e.

Expenditures
Transfers Out
483, 777)
834, 487)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 15, 832, 622 2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2320 expended during the reporting period? Yes A total of $483, 777 was expensed from Fund 2320 to the following projects; 26, 655 To reimburse developers for construction public improvements 457, 122 To reimburse developer for installation of traffic signal at Golden Valley Parkway and Faber Drive
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2320 transferred or loaned during the reporting period? Yes A total of $834, 487 was transferred from Fund 2320 to the Louise Avenue & I-5 Improvements Project PS 06-6.
2f. Description of refunds made during reporting period.

Were funds from Fund 2320 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 25
54 Capital Facilities Fee Funds Report
West Central Lathrop Transportation Capital Facility Fee — 2320

The West Central Lathrop Transportation Capital Facility Fee Fund 2320 currently has funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Manthey Road Bridge
Replacement, PS 12- 04
Louise Avenue/ I-5Interchange
Right -of -Way. PS 06-6
Total
1, 682, 268
6,88, 975
8, 372, 243
4 61
Report Period: July 1, 2022 to June 30, 2023 Page 26
55 Capital Facilities Fee Funds Report
West Lathrop Specific Plan Regional Transportation Impact Fee — 2330 West Lathrop Specific Plan Regional Transportation Impact Fee — 2330

1. Fee Information
a. Description and History of Fee: The West Lathrop Specific Plan ( WLSP) Regional Transportation Impact Fee is collected from planned communities in the Central Lathrop area, Mossdale Village area and the River Islands area to fund regional road improvements needed as a result of new development west of Interstate 5.

The original fee was first developed in 1997 by the Fee Development Committee which is comprised of representatives from the City of Lathrop, San Joaquin Council of Governments, Caltrans, The Crane Transportation Group and Califia ( a River Islands affiliate). The Committee was to evaluate existing transportation facilities to determine if they were sufficient to accommodate for new growth and, if insufficient, to identify the need for additional street infrastructure.

Upon determining atransportation level of service ( LOS), the development projections for the City and project level impacts, a list of transportation system improvements was compiled. This list of improvements was utilized to determine a fee to fund the necessary improvement projects.

The West Central Lathrop Transportation CFF was reevaluated May 3, 2018. After further review City staff found the project cost were consistent with current cost estimates to construct the improvements with exception of the Louise Avenue Interchange and the Paradise Avenue Interchange improvements.

As a result, the fee study includes adjusting the previous CFF to reflect the effects of inflation as well as an increase to the rates for Central Lathrop, Mossdale Village and River Islands. b. Amount of Fee: The amount of the fee for the West Lathrop Specific Plan Regional Transportation Fee varies by land use type.

Single Family
Multi Family
Retail Commercial
DU
DU
1, 000 sf
1, 000 sf
394
461
2,01
610
415
486
2, 324
Service Commercial 644

2. Fund Information During Reporting Period
Source
a. Beginning Fund Balance as of July 1, 2022 1, 421,84
b. Fees Collected 780, 838
c. Interest Earned 3, 078
d. Expenditures 1, 938, 266)
e. Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023 267, 134
Report Period: July 1, 2022 to June 30, 2023 Page 27
56 Capital Facilities Fee Funds Report
West Lathrop Specific Plan Regional Transportation Impact Fee — 2330 2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2330 expended during the reporting period? Yes A total of $1, 938, 266expensed from Fund 2330 to the following projects; 5, 224 to reimburse development for constructed public improvements. 1, 933, 042for Golden Valley Parkway from Brookhurst to Sadler Oak. 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2330 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2330 refunded during this reporting period? No

The West Lathrop Specific Plan Regional Transportation Impact Fee Fund 2330 currently has funds appropriated to the Capital Improvement Program ( CIP) Project for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Project t fIrt prow meats
Manthey Road Bridge Replacement,
PS 12- 04
472, 150 1
Total 472, 150
Report Period: July 1, 2022 to June 30, 2023 Page 28
57 Capital Facilities Fee Funds Report
Lathrop Local East Fee — 2340 and Lathrop Local West Fee - 2360 Lathrop Local East — 2340 and Lathrop Local West - 2360

1. Fee Information
a. Description and History of Fee: The Regional Transportation Impact Fee ( RTIF) San Joaquin County was adopted by City Council on December 20, 2005. This fee was adopted to address traffic volumes exceeding the capacity of the regional network of highways and arterials existing in San Joaquin County.

It was determined that existing funding sources, including federal, state, and local sources, will be inadequate to construct the Regional Transportation Network needed to avoid unacceptable levels of traffic congestion and related adverse impacts.

The City of Lathrop has an existing local and regional transportation capital facilities fee ( CFF) system in place which began with the West Lathrop Regional Transportation Impact Fee adopted in 1997. In 2003, the City created the West/ Central Lathrop Regional Transportation CFF which picked up where the WLSP RTIF ended, by providing for other transportation improvements needed to meet the increase in development in West and Central Lathrop Specific Plan areas. Several other transportation -related CFFs as covered in this report) have been created to address improvements as areas have developed.

The San Joaquin RTIF effectively updates and is incorporated into the WLSP RTIF. RTIF — Lathrop Local East ( Fund 234) was created to account for fees collected from new development in East Lathrop under the new schedule. RTIF — Lathrop Local West ( Fund 236) also accounts for fees collected for new development in West Lathrop under the San Joaquin RTIF fee schedule. Both funds will be used in accordance with the RTIF Operating Agreement in their prospective areas. b. Amount of Fee: The amount of the fee varies by land use type and location. The fees are as follows:

Single Family DU 4, 053
Multi Family
Industrial
DU 2, 432
1, 230
2, 030
1, 610
500
1, 000 sf
1, 000 sf
1, 000 sf
1, 000 sf
Service/ Office Commercial
Retail Commercial
Warehouse
Report Period: July 1, 2022 to June 30, 2023 Page 29
58 Capital Facilities Fee Funds Report
Lathrop Local East Fee — 2340 and Lathrop Local West Fee - 2360 2a. Fund 234 — RTIF — Lathrop Local East
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
2, 618, 008
30, 805
c. Interest Earned 34, 589
d.
e.

Expenditures
Transfers Out
1, 662)
f. Refunds
g. Ending Fund Balance as of June 30, 2023
2c. Fund 236 — RTIF — Lathrop Local West
2, 681, 741
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
11, 430, 110
1, 588, 378
c. Interest Earned 155, 606
d.
e.

Expenditures
Transfers Out
5, 892)
883,26)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 12, 284, 376 2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2340 and 2360 expended during the reporting period? Yes A total of $1, 662 was expensed from Fund 2340 and $ 5, 892 was expensed from Fund 2360 to pay San Joaquin Council of Governments for a portion of third party cost to implement the RTIF Program. 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2340 and 2360 transferred or loaned during the reporting period? Yes A total of $883,26 was transferred from Fund 2360 to reimburse development for constructed public improvements.
2f. Description of refunds made during reporting period.

Were funds from Fund 2340 and 2360 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 30
59 Capital Facilities Fee Funds Report
Lathrop Local East Fee — 2340 and Lathrop Local West Fee - 2360

The Lathrop Local East Fee Fund 2340 does not currently have funds appropriated to the Capital Improvement Program ( CIP) Project for Fiscal Year 2023-4.

The Lathrop Local West Fee Fund 2360 currently has funds appropriated to the Capital Improvement Program ( CIP) Project for Fiscal Year 2023-4. Please refer to the City' s2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Project mount l o i s
Manthey Road Bridge Replacement,
PS 12- 04
1, 682, 268 4
Total 1, 682, 268
Report Period: July 1, 2022 to June 30, 2023 Page 31
60 Capital Facilities Fee Funds Report
Regional Transportation Impact Fee San Joaquin County — 2350 Regional Transportation Impact Fee San Joaquin County — 2350

1. Fee Information
a. Description and History of Fee: The Regional Transportation Impact Fee (RTIF) San Joaquin County was adopted by City Council on December 20, 2005. This fee was adopted to address traffic volumes exceeding the capacity of the regional network of highways and arterials existing in San Joaquin County.

The Regional Transportation Impact Fee San Joaquin County ( Fund 235) meets the agreement requirement to pay ten ( 10) percent of the total fee revenue collected to the County of San Joaquin for the purpose of funding RTIF Capital Projects within the County. Fund 235 has been set up to account for this revenue which is paid on a quarterly basis per the RTIF Operating Agreement. b. Amount of Fee: The amount of the fee varies by land use type and location. Only 10 percent of the fee is placed in Fund 2350 ( See Funds 2340 and 2360). The fund amounts are as follows:

2. Fund 235 — RTIF SJ County 10%
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected 151, 643
c. Interest Earned 187
d.
e.

Expenditures
Transfers Out
151, 830)
f Refunds
g. Ending Fund Balance as of June 30, 2023
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2350 expended during the reporting period? Yes A total of $151, 830 was expensed from Fund 2350 to pay the County of San Joaquin for the portion of fee dedicated to RTIF Capital Projects within the County. 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2320 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2320 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 32
61 Capital Facilities Fee Funds Report
Regional Transportation Impact Fee San Joaquin County — 2350

The Regional Transportation Impact Fee ( RTIF) Fund 2350 will not have funds appropriated to any Capital Improvement Program ( CIP) Projects. Its purpose is to account for the amount that is paid to the County of San Joaquin for the portion of the fee dedicated to RTIF Capital Projects within the County.

Report Period: July 1, 2022 to June 30, 2023 Page 33
62 Capital Facilities Fee Funds Report
Regional Transportation Impact Fee San Joaquin Council of Governments — 2370 Regional Transportation Impact Fee
San Joaquin Council of Governments 15% — 2370

1. Fee Information
a. Description and History of Fee: The Regional Transportation Impact Fee ( RTIF) Program Operating Agreement establishes the distribution of fee revenue collected by the participating agencies. Ten ( 10) percent of the fees collected by the City of Lathrop and each of the other participating agencies pass directly on to the San Joaquin Council of Governments ( SJCOG) on a quarterly basis. This revenue is used to fund state highway improvements on the RTIF Project List. Another five ( 5) percent is paid directly to SJCOG on a quarterly basis to fund transit improvements on the RTIF Project List. Fund 237 was set up to account for this 15 percent of collected revenue to be passed on to SJCOG. b. Amount of Fee: The amount of the fee is 15 percent of all fees collected under the RTIF Program ( See Funds 2340 and 2360).

2. Fund Information — RTIF SJCOG 15%
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected 227, 464
c. Interest Earned 281
d.
e.

Expenditures
Transfers Out
227, 746)
f. Refunds
g. Ending Fund Balance as of June 30, 2023
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2370 expended during the reporting period? Yes A total of $227, 746 was expensed from Fund 2370 to pay the San Joaquin Council of Governments SJCOG) on a quarterly basis per the RTIF Operating Agreement. 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2370 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2370 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 34
63 Capital Facilities Fee Funds Report
Regional Transportation Impact Fee San Joaquin Council of Governments — 2370

The Regional Transportation Impact Fee San Joaquin Council of Governments ( SJCOG) Fund 2370 will not have funds appropriated to any Capital Improvement Program ( CIP) Projects. Its purpose is to account for the amount that is paid to SJCOG on a quarterly basis per the RTIF operating Agreement.

Report Period: July 1, 2022 to June 30, 2023 Page 35
64 Capital Facilities Fee Funds Report
Offsite Roadway Improvements Fee — 2380
Offsite Roadway Improvements Capital Facility Fee — 2380

1. Fee Information
a. Description and History of Fee: The Offsite Roadway Improvements Fee was adopted by Lathrop City Council on May 29, 2007. The purpose of the fee is to establish a funding mechanism to pay for the
offsite roadway improvements applicable to the Stanford Crossing of the Central Lathrop Specific Plan ( CLSP) area. The fee is collected to fund an estimated $ 8. 5 million ofbuildout improvements at six intersections ( Roth Road/ McKinley Avenue, Lathrop Road/ 5`hStreet, Lathrop Road/ Airport Road, Louise Avenue/ McKinley Avenue, Louise Avenue/ Airport Road, and Yosemite Avenue/ McKinley Avenue) impacted by the proposed CLSP development located east of Interstate 5. The calculations used for the CLSP offsite intersection CFFs are based on the assumptions and methodology used to calculate the West/ Central Lathrop Regional Transportation CFF in the 2003 and 2005 CFF studies.

The CLSP fair share of offsite intersection costs was allocated to each type of land use based on the adjusted number of afternoon peak hour trips. The cost allocated to each land use type were then divided by the number of units of development to arrive at the appropriate fee for each unit of new development.
b. Amount of Fee: The amount of the fee varies by land use type and location.

Single Family DU 177
Multi Family
Retail Commercial
DU 109
1, 000 sf $ 227
Service/ Office Commercial 1, 000 sf $ 165

2. Fund Information (During Reporting Period)
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
124, 453
37, 697
c. Interest Earned 1, 706
d.
e.

Expenditures
Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023 163, 855
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2380 expended during the reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 36
65 Capital Facilities Fee Funds Report
Offsite Roadway Improvements Fee — 2380
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2380 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2380 refunded during this reporting period? No

The Offsite Roadway Improvements Fee Fund 2380 does not currently have funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023-
2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 37
66 Capital Facilities Fee Funds Report
North Lathrop Transportation Capital Facility Fee — 2420 North Lathrop Transportation Capital Facility Fee — 2420

1. Fee Information
a. Description and History of Fee: The North Lathrop Transportation Fee was established in January 2011.

The purpose of the North Lathrop Transportation Fee is to establish a funding mechanism to pay for the
planning, design, land acquisition, administration ( including construction management and program management), and construction of the interchange and frontage road improvements ( including streets, intersection relocations and traffic signals). The North Lathrop Study Area boundaries include the City of Lathrop, City of Manteca, and unincorporated San Joaquin County that are impacting the Roth/ I5 Interchange and associated frontages
b. Amount of Fee: The amount of the fee varies by land use type and location.

CLSP Residential DU 767. 00
CLSP Commercial 1, 000 sf 4, 200.7
N Lathrop Area — Residential DU 908. 30
N Lathrop Area — Commercial 1, 000 sf 60, 082. 26
Gordon Trucking — Industrial Acre 23, 968.

LN Industrial Building 1, 000 sf 1, 279. 88
KSC Travel CenterHighway Commercial
Acre 122, 03. 92
Other Lathrop Projects — Residential DU 885. 01
Highway Commercial 1, 000 sf 95, 875. 94
y
Center Point- Light Industrial 1, 000 sf 965. 70
Other Manteca Projects — Light Industrial
Retail
1, 000 sf
1, 000 sf
1, 608. 45
27,97. 30
20; 0.

Intermodal facility — Light Industrial Acre 56, 715. 3
Other SJ County Projects — Residential
Retail
Light Industrial
Acre
Acre
Acre
2, 717. 50
100, 233. 94
8, 447. 81
Report Period: July 1, 2022 to June 30, 2023 Page 38
67 Capital Facilities Fee Funds Report
North Lathrop Transportation Capital Facility Fee — 2420

2. Fund Information during Reporting Period
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
11, 437
c. Interest Earned 149
d.
e.

Expenditures
Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023 11, 587
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 2420 expended during the reporting period? No 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 2420 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 2420 refunded during this reporting period? No

The North Lathrop Transportation Fee Fund 2420 does not currently have funds appropriated to the Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023- 2028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 39
68 Capital Facilities Fee Funds Report
Park in Lieu Fee — 3410
Park in Lieu — 3410

1. Fee Information
a. Description and History of Fee: This fee is collected under the authority of the Quimby Act, California Government Code Section 66477, to fund the acquisition of parkland needed to support new residential development. The fee is only charged in cases where parkland is not dedicated as part of a subdivision. The locations of the projects to be funded are generally described in the " Comprehensive General Plan and Environmental Impact Report for the City of Lathrop, California, December 1991." b. Amount of Fee: The amount of the fee varies from project to project but is always equal to the market value of the land for which the fee is being paid in lieu. Dedication ( or payment of fees) is required in an amount necessary to provide five ( 5) acres of parkland per 1, 000 new residents. An average rate of 3. 59 people per household, results in park dedication of approximately one ( 1) acre of land for every 55. 71 dwelling units.

2. Fund Information ( During Reporting Period)
a. Beginning Fund Balance as of July 1, 2022
Fees Collected
1,48,67
556, 141
29, 784
b.
c. Interest Earned
d.
e.

Expenditures
Transfers Out
f. Refunds
g. Ending Fund Balance as of June 30, 2023 1, 734, 093
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 3410 expended during the reporting period? No 2e. Description of Transfers and Loans made from fund.

Were funds from Fund 3410 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 3410 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 40
69 Capital Facilities Fee Funds Report
Park in Lieu Fee — 3410

The Park in Lieu Fee Fund 3410 currently does not have funds appropriated to the Capital Improvement Program ( CIP) Project for Fiscal Year 2023-4. Please refer to the City' s2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 41
70 Capital Facilities Fee Funds Report
Water Capital Facility Fee — 5610
Water Capital Facility Fee — 5610

1. Fee Information
a. Description and History of Fee: The Water Capital Facility Fee is collected to fund improvements to water facilities in support of new development as well as to upgrade and maintain the City' s existing system. A water component, based on the city' s planned development, was not added to the Capital Facility Fee Program until the 1994 update as the City' supdated General Plan was not yet complete. The 1994 study, added a fee based on land usage and type appropriate for the City' sfuture growth to fund and maintain new and existing water facilities. The Capital Facility Fee Program was updated in 2003 to reflect the direction in which the city was headed ( and reevaluated in 2005 to show the impacts of inflation). The 2003 and 2005 studies identified facilities to accommodate for growth west of Interstate 5 as well as growth and improvements in Historic Lathrop.

At the present time, Lathrop obtains water supplies from the underlying groundwater basin using five active wells. Along with the five wells, the City' s existing water system includes four above ground storage tanks, four booster pump stations, and over 77 miles of distribution pipelines.

Four separate water system Capital Facility Fees have been set up to address the current underground water supply.

An updated water system CFF for East Lathrop based on a system buy -in approach since the water system in that area is largely built out;
An incremental cost for West/ Central Lathrop to reflect the cost of adding arsenic treatment to groundwater wells and for a portion of the cost of a standby well to provide additional water system reliability for the entire City;
An incremental cost CFF for the Mossdale Landings developments associated with the cost of a 1. 0 MG storage reservoir;
A reimbursement CFF for the Crossroads area.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

3. million to construct the water system facilities. SLSP' sfair share ofthe cost is 30% and the remainder of the $ 3. million cost would be funded by other developments that will benefit from this facility. The Water Capital Facility Fee was reevaluated May 3, 2018. The studies included adjusting the previous Capital Facility Fee to reflect the effects of inflation.

In July 2022, the CLSP CFF was updated to include a new water tank and booster pump facility located.

The effective date of the updated fees were October 10, 2022.

Report Period: July 1, 2022 to June 30, 2023 Page 42
71 Capital Facilities Fee Funds Report
Water Capital Facility Fee - 5610
b. Amount of Fee: The amount of the fee varies by meter size and location. The current fees are as follows:
5/ 8 1, 413 1, 598 1, 328 868 1, 028 1, 413
1 FS 1, 413 N/ A 1, 328 868 1, 028 1, 413
3/4 2, 120 2, 397 1, 992 1, 302 1, 542 2, 120
1 3, 533 3, 995 3,20 2, 171 2, 570 3, 533
1 '/ 2 7, 066 7, 989 6,41 4, 341 5, 138 7, 066
2 11, 305 12, 781 10, 626 6, 946 8, 222 11, 305
3 21, 198 23, 966 19, 922 13, 023 15, 415 21, 198
4 35,30 39, 943 33, 204 21, 706 25, 692 35,30
6 70, 660 79, 888 66, 406 43,12 51, 382 70, 660
8 113, 055 127, 820 106, 250 69, 461 82, 212 113, 055
10 204, 913 231, 674 192, 578 125, 896 149, 008 204, 913 5/ 8 1, 492 1, 687 1, 402 916 1, 085 1, 492
1 FS $ 1, 492
3%
N/ A 1, 402
2, 102
3, 504
7, 010
11, 216
21, 028
35, 048
70, 094
112,50
203,73
916 $ 1, 085 $ 1, 492
1, 374 $ 1, 628 $ 2,38
2,92 $ 2, 712 $ 3, 730
4, 582 $ 5, 423 $ 7, 458
7, 331 $ 8, 679 $ 11, 933
13, 747 $ 16, 271 $ 22, 376
22, 912 $ 27, 119 $ 37, 292
45, 823 $ 54, 235 $ 74, 584
73, 318 $ 86, 777 $ 119, 334
132, 888 $ 157, 283 $ 216,93
2,38 2, 530
4, 217
8, 432
13, 491
1 $ 3, 730
1 '/ 2 $ 7, 458
2 $ 11, 933
3 $ 22, 376
4 $ 37, 292
6 $ 74, 584
8 $ 119, 334
25,97
42, 162
84, 325
134, 919
10 $ 216,93 244, 50
Report Period: July 1, 2022 to June 30, 2023 Page 43
72 Capital Facilities Fee Funds Report
Water Capital Facility Fee — 5610
The amount of the fee rates in the SLSP development area are per 1, 000 square feet of building space.

The current fees are as follows:

Office Commercial
Limited Warehouse
Warehouse
1, 000 sqft
1, 000 sqft $ 535
1, 000 sqft $ 152
1,33 1,95
565
161
The amount of the fee rates in the SLSP — Non SLCC development area are per Acre.

The current fees are as follows:

Office Commercial Acre 10, 956
10, 956
10, 956
11, 564
11, 564
11, 564
Limited Warehouse Acre
Warehouse Acre
The amount of the fee rates in the Lathrop Gateway Business Park development area.

The current fees are as follows:

Shopping Center 650 6, 457 175. 01
Office Park 614 6, 457
6, 457
6, 457
175. 01
Industrial Park 488 175. 01
Warehouse 139 175. 01
Shopping Center 686 6, 816 184. 73
Office Park 648 6, 816
6, 816
6, 816
184. 73
Industrial Park 515 184. 73
Warehouse 147 184. 73
Report Period: July 1, 2022 to June 30, 2023 Page 44
73 Capital Facilities Fee Funds Report
Water Capital Facility Fee — 5610
Single Family Home 2, 323 2, 452
Multi -Family Homes
All Development
1, 432
7, 024

2. Fund Information during Reporting Period
1, 512
7, 414
a.
b.

Beginning Fund Balance as of July 1, 2022
Fees Collected
5,55, 255
1, 251, 392
c. Interest Earned 76, 455
d.
e.

Expenditures
Transfers Out
474, 909)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 6, 408, 193
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 5610 expended during the reporting period? Yes A total of $474, 909 was expensed from Fund 5610 to reimbursed developers for constructing public improvements.
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 5610 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 5610 refunded during this reporting period? No

The Water Capital Facility Fee Fund 5610 currently has funds appropriated to the Capital Improvement Program ( CIP) Project for Fiscal Year 2023-4. Please refer to the City' s2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 45
74 Capital Facilities Fee Funds Report
Water Capital Facility Fee — 5610
Proj unt
East Lathrop Water main and Lateral
Upgrades, PW 24- 12
1, 000,00 83
Total 1, 000,00
Report Period: July 1, 2022 to June 30, 2023 Page 46
75 Capital Facilities Fee Funds Report
Surface Water Capital Facility Fee - 5640
Surface Water Capital Facility Fee - 5640

1. Fee Information
a. Description and History of Fee: The Surface Water Supply Capital Facility Fee is collected to fund The City of Lathrop' sproportionate share of costs related to the South County Surface Water Supply Project SCSWSP) with the South San Joaquin Irrigation District ( SSJID).

The South County Surface Water Supply Project is a
joint project between the Cities of Lathrop,
Manteca, Escalon and Tracy that built a water treatment facility (the Nick C. DeGroot Treatment Facility), a pipeline to transport raw water from the Woodward Reservoir to the treatment facility and additional pipelines to transport the treated water to the participating cities.

Prior to the SCSWSP the city obtained all of its water supplies from the underlying groundwater basin using wells. With new development and recognizing the limitations of the groundwater resources the SCSWSP was needed. The City issued COPs in 2000 to help pay for the planning, engineering, and design costs associated with the project. Additionally, revenue bonds were issued in 2003 with a par value of $32, 530, 000to fund construction costs for the city' scapacity.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

The entitlements required an update to the CFF program to establish fees to fund the improvements for the SLSP area. The SLSP CFF Study "Nexus Study" adopted on March 12, 2018 identified that the SLSP is also subject to the Surface Water Impact fee. The Surface Water Capital Facility Fee was reevaluated May 3, 2018. The studies included adjusting the previous Capital Facility Fee to reflect the effects of inflation.
b. Amount of Fee: The amount of the fee varies by land use type and location. 5/ 8 3, 162 5, 813 4, 289
1" FS 3, 162
4, 743
7, 905
15, 810
25,95
47,29
79, 048
158, 095
252, 952
458,76
5, 813
8, 720
14, 533
29, 065
46, 504
87, 195
145, 325
290, 650
465, 040
842,85
4, 289
6, 434
10, 723
21, 445
34,12
64, 335
107, 225
214, 450
343, 120
621, 905
3/ 4
1 2
3 4
6 8
10 Report Period: July 1, 2022 to June 30, 2023 Page 47 76 Capital Facilities Fee Funds Report
Surface Water Capital Facility Fee - 5640
5/ 8 3, 295 6, 080 4,92
1" FS 3, 295 6, 080
9, 120
15, 200
30, 400
48, 640
91, 200
152, 000
304, 000
486,00
881, 600
4,92
6, 738
11, 230
22, 460
35, 936
67, 380
3/ 4 4, 943
8, 239
16, 477
26, 363
49,31
82, 386
164, 771
263, 64
477, 837
1 2
3 4 112, 300
224, 600
359,60
651, 340
6 8
10 2. Fund Information during Reporting Period
a.
b.

Sour
Beginning Fund Balance as of July 1, 2022
Fees Collected
2, 582, 725
1, 966, 242
c. Interest Earned 62, 994
d.
e.

Expenditures
Transfers Out
1, 366, 056)
f. Refunds
g. Ending Fund Balance as of June 30, 2023 3, 245, 905
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 5640 expended during the reporting period? Yes A total of $1, 366, 056 was expensed from Fund 5640 to reimbursed developers for constructing public improvements.
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 5640 transferred or loaned during the reporting period? No 2f. Description of refunds made during reporting period.

Were funds from Fund 5640 refunded during this reporting period? No Report Period: July 1, 2022 to June 30, 2023 Page 48
77 Capital Facilities Fee Funds Report
Surface Water Capital Facility Fee — 5640

The Surface Water Supply Fund Fee 5640 does not currently have funds appropriated to any Capital Improvement Program ( CIP) Projects. The fund pays for the costs related to the South County Surface Water Supply Program Project.

Report Period: July 1, 2022 to June 30, 2023 Page 49
78 Capital Facilities Fee Funds Report
Sewer Capital Facility Fee — 6030
Sewer Capital Facility Fee — 6030

1. Fee Information
a. Description and History of Fee: The Sewer Capital Facilities Fees, adopted in 1993, are collected in order to fund new sewer facilities to accommodate new development as well as to provide improvements to the city' s existing facilities. The Crossroads fee is an exception in that it is collected to reimburse the developer for infrastructure that was built with the original project. Lathrop' sexisting facilities consist of:

14. 7% capacity of the Manteca Water Quality Control Facility to service the Historic Lathrop area, and the Consolidated Treatment Facility ( CTF) to service development west of Interstate 5 and for businesses located within the Crossroads development area. The CTF represents a consolidation of the two previous Lathrop treatment facilities, the Membrane Biological Reactor ( MBR) Treatment Facility and the Water Recycling Plant ( WRP 1). An update to the Sewer Capital Facilities Fee was implemented in 2003 and again in 2005 to show the effects of inflation.

The city plans to expand the capacity of the existing CTF plant to accommodate for future growth in the Mossdale Landing and River Islands areas and for Richland Communities development.

On August 3, 2015 City Council approved entitlements for the South Lathrop Specific Plan ( SLSP) area.

The entitlements required an update to the CFF program to establish fees to fund the improvements for the SLSP area. The SLSP CFF Study " Nexus Study" adopted on March 12, 2018 identified that the SLSP is also subject to the Sewer Capital Facility Fee. The fee was reevaluated in January 23, 2019 CFF update and was updated to reflect the effects of inflation. In addition, the CLSP Sewer/ Recycled Water Facilities CFF was added to the CFF program.

In February 2020, the Sewer Reimbursement CFF Study established a fee program for the construction of oversized sewer facilities including future construction of sewer facilities within the City.

Report Period: July 1, 2022 to June 30, 2023 Page 50
79 Capital Facilities Fee Funds Report
Sewer Capital Facility Fee - 6030
b. Amount of Fee: The amount of the fee varies by land use type and location. 5/ 8 6, 357 52 1, 243
1" FS $ 6, 357
3/ 4 $ 9, 535
1 $ 15, 892
1 '/ 2 $ 31, 785
2 $ 50, 856
3 $ 95, 354
4 $ 158, 924 $ 1, 307 $ 31, 055
6 $ 317, 847
8 $ 508,56
10 $ 921, 758
ISU $ 9, 719
52 1, 243
1, 863
3, 106
6, 211
9,37
79 131
261
417
784 $ 18, 634
2, 612 $ 62, 110
4, 179
7, 575
99, 375
180,19
GPD 47. 00
5/ 8 6, 710 55 1, 312
1" FS 6, 710
10, 065
16, 775
33, 550
53, 680
100, 650
167, 750
335, 499
55 1, 312
3/ 4 83 1, 967
3, 279
6, 556
10, 489
1 138
275
2 440
3 827 $ 19, 668
1, 379 $ 32, 780
2, 757 $ 65, 559
4,11 $ 104, 894
7, 995 $ 190,22
4 6
8 536, 799
972,48
10, 258
10 ISU
GPD 49. 61
Report Period: July 1, 2022 to June 30, 2023 Page 51
80 Capital Facilities Fee Funds Report
Sewer Capital Facility Fee — 6030
Single Family - Residential
Multi -Family - Residential
Commercial
DU $ 2,969
DU 2, 524
1, 000 sf. $ 671
Industrial 1, 000 sf. $ 671
3, 134
2, 664
708
708
Office Commercial Acre 22, 366 23, 608
Limited Industrial Acre 22, 366
22, 366
23, 608
Warehouse Acre 23, 608
Shopping Center 1, 000 sf. 801 846
Office Park 1, 000 sf. $ 703
1, 000 sf. $ 337
1, 000 sf. $ 337
742
Industrial Park 355
Warehouse 355

3. Fund Information during Reporting Period
a. Beginning Fund Balance as of July 1, 2022
Fees Collected
9, 772, 164
3, 507, 106
142, 341
40, 980
b.
c. Interest Earned
d. Expenditures
e. Transfers Out 1, 815, 028)
f. Refunds
g.
h.

Prior Year Adjustments
Ending Fund Balance as of June 30, 2023 11, 647, 563
Report Period: July 1, 2022 to June 30, 2023 Page 52
81 Capital Facilities Fee Funds Report
Sewer Capital Facility Fee — 6030
2d. Expenditure Summary: Identification of each improvement on which reportable fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the district that was funded with reportable fees:

Were funds from Fund 6030 expended during the reporting period? Yes A total of $40, 980 was expensed from Fund 6030 to reimbursed developers for constructing public improvements.
2e. Description of Transfers and Loans made from fund.

Were funds from Fund 6030 transferred or loaned during the reporting period? Yes A total of $1, 815, 028 was transferred from Fund 6030 to cover the following projects; 1, 665, 028for the Consolidated Treatment Facility Phase 3 Project WW 22- 38 150, 00 for the Consolidated Treatment Facility Phase II Project, WW 14-4 2f. Description of refunds made during reporting period.

Were funds from Fund 6030 refunded during this reporting period? No

The Sewer Capital Facility Fee Fund 6030 currently has no funds appropriated to any Capital Improvement Program ( CIP) Projects for Fiscal Year 2023-4. Please refer to the City' s 2023-028 Capital Improvement Program adopted by City Council June 12, 2023, Resolution 23- 5321.

Report Period: July 1, 2022 to June 30, 2023 Page 53
82 ITEM 4. 5

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPTANCE OF THE CITY OF LATHROP ANNUAL

COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR
THE FISCAL YEAR ENDING JUNE 30, 2023
RECOMMENDATION: Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for
the Fiscal Year Ending June 30, 2023
SUMMARY:

The City' s auditor, Badawi and Associates, CPA, has completed the review of the annual financial statements for the fiscal year ending June 30, 2023. 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.

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 Badawi and Associates, CPA.

The firm was contracted to render an opinion of the City' sfinancial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Badawi and Associates, CPA 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 Annual Comprehensive Financial Report ( ACFR) for the fiscal year ended June 30, 2023 has been prepared by the City and audited by the certified public accounting firm of Badawi and Associates, CPA. The ACFR and audit of the City' s financial statements were completed on February 27, 2024, and posted on the City' s website at that time. Badawi and Associates, CPA has issued an unmodified (" clean") opinion of the ACFR which states that the financial statements are presented fairly, in all material respects.
83 CITY MANAGER' S REPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 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 26 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' sreport 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 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' sfavorable ratings for current and future debt issuances. 84 CITY MANAGER' S REPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 ATTACHMENTS:

A. Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report ( ACFR) for Fiscal Year Ending June 30, 2023.

B. City of Lathrop Annual Comprehensive Financial Report ( ACFR) for the Fiscal Year Ending June 30, 2023.
85 CITY MANAGER' S REPORT PAGE 4
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2023 APPROVALS:

Cari James
Director of( 3nance
3/ y. zoa1`
Date
31+ 1 /10 - H
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
344) 4 -
Ste en J Salvatore Date
City Manager
86 RESOLUTION NO. 24 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
WHEREAS, the financial statements of the City of Lathrop for the fiscal year ended June 30, 2023, have been prepared by the City' s Finance Department; and WHEREAS, the annual financial statements were examined by the independent public accounting firm of Badawi and Associates, CPA; and WHEREAS, the City prepared the Annual Comprehensive Financial Report ACFR) for the fiscal year ended June 30, 2023 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, 2023, 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, the ACFR and audit of the City' s financial statements were completed on February 27, 2024, and posted on the City' s website at that time; and
WHEREAS, 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 City of Lathrop bas been awarded the prestigious Certificate for Excellence in Financial Reporting for 26 consecutive years. A Certificate of Achievement is valid for a period of one year only.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby accept the Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023.
87 The foregoing resolution was passed and adopted this 11th day of March 2024, 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 88 City of Lathrop
390 Towne, Centre Drive
Lathrop, CA 95330
https // www. ci. tathrop. ca. us/

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
89 CITY OF LATHROP, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Prepared by:

Finance Department
Cari James, Director of Finance
90 City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION: Page
Letter of Transmittal vii
Organizational Chart xii
Directory of Officials and Advisory Bodies xiii
FINANCIAL SECTION:

INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS
Government - wide Financial Statements:

Statement of Net Position 25
Statement of Activities 26
Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds 32
Reconciliation of the Balances Sheet of Governmental Funds to the Statement of Net Position 34
Statement of Revenues Expenditures and Changes in Fund
Balances - Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities 38
Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds 40
Statement of Revenues, Expenses and Changes in Fund
Net position - Proprietary Funds 41
Statement of Cash Flows - Proprietary Funds 42
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 44
Statement of Changes in Fiduciary Net Position 45
Notes to Financial Statements 49
91 City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability - Cost -Sharing Multiple Employer PIan90 Schedule of Plan Contributions - Cost -Sharing Multiple Employer Plan 92 Schedule of Changes in the Net OPEB Liability and Related Ratios 94 Schedule of OPEB Contributions 96
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:

General Fund 98
Capital Facility Fees Special Revenue Fund 100
Building Safety & Inspection Special Revenue Fund 101
Notes to the Required Supplementary Information 102

SUPPLEMENTARY INFORMATION
General Fund:

Description of General Funds 104
Combining Balance Sheet 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 106
Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual General Purpose Fund 108
Economic Development 110
Measure C 111
Major Funds:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual Streets and Roads Capital Project Fund 112
General CIP Projects Capital Project Fund 113
Non -Major Governmental Funds:

Description of Non -Major Funds 114
Combining Balance Sheet 118
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 126 ii
92 City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

SUPPLEMENTARY INFORMATION, Continued
Non -Major Governmental Funds, Continued:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual Developer Projects 134
Developer Engineering 135
Developer Deposits 136
Landscape Maintenance 137
Gas Tax 138
Traffic Safety 139
Local Street 140
Public Nuisance 141
Measure K Fund 142
Transit LTF 143
Streets and Roads 144
Federal Grant 145
Historic Lathrop Loan Program ( HLLP) 146
Storm Drain 147
Street Light 148
AB939 Recycling Fund 149
Community Development Block Grant 150
Scholarship Fund 151
COPS 152
RTIF San Joaquin County 153
RTIF Lathrop Local West 154
RTIF SJCOG 155
RTIF Lathrop Local East 156
LMFD Measure C 157
State Grants 158
North Lathrop Transportation 159
Citywide Economic Dev Fee 20% 160
River Islands CFD 2013- 1 161
Lathrop Land Acquisitions 162
ULOP RD -17 Levee Impact 163
DWR Grant - ULOP Project 164
CLSP Off -Site Roadway Improvement Fund 165
South Lathrop CFD 2019- 1Fund 166
Central Lathrop CFD 2019- Fund 167
iii
93 City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION, Continued:

SUPPLEMENTARY INFORMATION, Continued
Non -Major Governmental Funds, Continued:

Statements of Revenues, Expenditures and Change in Fund Balances - Budget and Actual, Continued:

Stewart Economic Dev Fee 80% 168
TOT Trust 169
Gateway Business Park 170
Storm Drain 171
Park in Lieu 172
Custodial Funds:

Combining Statement of Fiduciary Net Position 174
Combining Statement of Changes in Fiduciary Net Position 176 STATISTICAL SECTION:

Financial Trends:

Net Position by Component 180
Changes in Net Position 182
Fund Balances of Governmental Funds 184
Changes in Fund Balances of Governmental Funds 186
Revenue Capacity Information:

Property Tax Levies and Collections 188
Assessed Value and Estimated Actual Value of Taxable Property 189 Principal Property Taxpayers 190
Debt Capacity Information:

Property Tax Rates - Direct and Overlapping Governments 191 Sales Tax Rates - Direct and Overlapping Governments 192 Legal Debt Margin Information 194
Outstanding Debt 196
Computation of Direct and Overlapping Debt 198
Pledged -Revenue Coverage 200
Demographic and Economic Information:

Demographic and Economic Statistics 202
Principal Employers 203
iv
94 City of Lathrop
For the Year Ended June 30, 2023
Table of Contents
STATISTICAL SECTION, Continued:

Operating. Information:

Full -Time and Part -Time City Employees by Function 204 Operating Indicators by Function 206
Capital Asset Statistics by Function 207
Water Sold by Type of Customer 208
Water Rates 209
Ten Largest Water Customers 210
Top 25 Sales Tax Producers 211
95 This page intentionally left blank
vi
96 February 27, 2024
Department ofFinance
390 Towne Centre Drive
Lathrop, California 95330
209- 941- 7320
To the Honorable Mayor, Members of the City Council and Citizens of Lathrop Lathrop, California 95330
The Annual Comprehensive Financial Report of the City of Lathrop for the fiscal year (FY) ended June 30, 2023 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' sfinancial 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, Badawi and Associates. Based on the audit, the independent auditors concluded that there was reasonable basis for rendering an unmodified opinion which states that the City' sfinancial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditors report is presented as the first component of the financial section of this report.

Management' s 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& Acan be found immediately
following the independent auditor' sreport.

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. vii
97 The internal control structure is designed to provide reasonable, but not absolute, assurance these objectives are met. The concept of reasonable assurance recognizes that ( 1) the cost of control should not exceed the benefits likely to be derived from the control, and ( 2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above stated framework. We believe our internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.

INDEPENDENT AUDIT REPORT
The City Council is responsible for: 1) assuring the City administration fulfills its responsibilities in the preparation of the financial statements and 2) engaging certified public accountants to ensure sound audit and the accounting principles are applied in financial reporting.

The Government Code of the State of California requires general law cities, such as the City of Lathrop, to have its financial statements audited by an independent certified public accountant. Accordingly, this year' s audit was completed by the accounting firm of Badawi and Associates. 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, Badawi and Associates 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' sreport 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' sinternal 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' sreport 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 ( 1-5), Interstate 205 ( 1- 205), and the Highway 120 Freeway. As of January 1, 2023, the City had an estimated population of 35, 080.

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 elected for a two- year term. Four Council Members are elected at -large and serve alternating four- year terms. Every two years in December, the Mayor and Council Members select a Council Member to serve as Vice -Mayor. The City Manager also serves as City Treasurer and the City Clerk is appointed by the City Manager. All municipal elections are non- partisan. viii
98 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.

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 2022/3 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' ssales 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 ( CalPERS). 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 2023 and is expected to stabilize throughout 2024. Sales tax is the General Fund' slargest 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 2024. 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' slong- 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. ix
99 The adopted budget serves as the foundation for the City of Lathrop' sfinancial planning and control system. All departments of the City submit requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, department, program, and line - item.

The Council periodically reviews the City' s actual financial activity in relation to the original budget, and as necessary, adjustments are made to ensure that expenditures are not outpacing anticipated revenues. The level of budgetary control ( the level at which expenditures cannot legally exceed the appropriated amount) is at the fund and department level with more stringent control over capital assets and fund balance categories, which are maintained at the line item level. The City Council must approve amendments or transfers of appropriations between funds or departments as well as items related to 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- yearfinancial forecast is a tool for strategic decision making and presents further context for balancing short- tem 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 2020/1, 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. x
100
Stephen J. Salvatore
City Manager

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, 2022. 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 26th 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' srequirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGEMENTS
The preparation of the Annual Comprehensive Financial Report was made possible by the special efforts of the entire staff of the Finance Department, working in conjunction with the City' s independent auditors and departmental staff. We would like to express our appreciation to the Mayor and City Councilmembers for their continued efforts in stewarding the financial operations of the City in a responsible and enterprising manner.

Respectfully submitted,
Cari Jame
Director o Finance
xi
101

CITY COUNCIL
City Attorney City Manager
City Clerk &
Government Services
Commissions
Community
Development
City Engineer
Parks, Recreation &
Maintenance Services
Public Works
Finance
Information Systems
Technology
Police
Human
Resources
xii
102
ta) BADAWI & ASSOCIATES

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR' S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Lathrop ( City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City' s
basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof 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' sResponsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City' s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Address: 2855 Teeyrapn Avenue: Suite 312 Berkeley, CA ) 4705 • Phone: 510. 768. 8251 • Fax: 510. 768.! 324) 103
To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California

Page 2 ends

Auditor' sResponsibilities 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' sreport that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City' s
internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City' s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control - related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require discussion and analysis, budgetary comparison schedules for the General Fund and that
major
the
special
management' s
revenue
funds, and the required pension and OPEB schedules on pages 5- 19 and 90- 102 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the 2 104
To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California

Page 3 ends

United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management' sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City' s
basic financial statements. The combining General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are presented for purposes of additional analysis and are not a
required part of the basic financial statements.

The General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the General Fund statements and budgetary comparison schedules, combining and individual nonmajor fund statements, and the budgetary comparison schedules for the major capital projects funds and nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the information included in the annual comprehensive financial report but does not include the financial statements and our auditor' sreport thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 27, 2024 on our consideration of the City' sinternal 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 3 105
To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California

Page 4 ends

purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City' s internal control
over financial reporting and compliance.

Bil. 4A.,,, d.

Badawi & Associates, CPAs
Berkeley, California
February 27, 2024
4 106
February 27, 2024
Department of Finance
390 Towne Centre Drive
Lathrop, California 95330
209- 941- 7320
www. ci. lathroo. ca. us

MANAGEMENT' SDISCUSSION AND ANALYSIS
The Management' s
Discussion and Analysis (" MD& A") provides an overview of the City of Lathrop' s City') activities and financial performance for the year ended June 30, 2023. Readers are encouraged to read the MD& A in conjunction with the basic financial statements that immediately follow, along with the letter of transmittal at the beginning of the Introductory Section and other portions of the Annual Comprehensive Financial Report (" ACFR').

FINANCIAL HIGHLIGHTS
The government - wide statement of net position for the City' s governmental and business - type activities indicates that as of June 30, 2023, total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $ 785. 4million. Of this amount, governmental actives accounts for $ 505. 3 million and business -type activities accounts for $ 280. 1 million. In addition, the City' srestricted net position totals $ 126. 4 million 125. 0 million for governmental activities and $ 1. 4 million for business -type activities) based on restrictions imposed by the enabling legislations or debt covenants. Lastly, net position of 526. 8 million is the City' s net investment in capital assets, which includes $ 320. 5 million from governmental activities and $ 206. 3 million from business type activities.

The net positon increased by $ 122. 5 million or 18. 5
percent during FY 2023 to $785. 4 million
from $ 662. 9 million. Governmental activities accounted for $ 86. 5 million increase and business -type activities accounted for $36. 0 million increase. Both increase were due to the acceptance of completed development infrastructure.

Governmental funds reported a combined ending fund balance of $ 188. 5 million at June 30, 2023, which is $ 16. 2 million or 9. 4 percent higher than the June 30, 2022 balance. The change is attributable to an increase in the General Fund of $6. 4 million, the Building Safety and Inspection Fund of $ 3. 0 million, the Streets and Roads Fund of 0. 3 million, the General CIP Projects Fund of $9. 5 million, the Nonmajor Governmental Funds of $7. 5 million and offset by decreases in the Capital Facility Fees Fund of $10. 5 million.

Unassigned fund balance of governmental funds is $ 5. 7 million, which is 3. 0 percent of the combined governmental fund balances as of June 30, 2023.

Total Tong -term liabilities increased by $ 3. 5 million to $ 28. 5 million, which represents an increase of 14. 0 percent compared to $ 25. 0 million at June 30, 2022. The primary factors leading to the increase in long- term liabilities for governmental activities of $5. 9 million was due to the increases in net pension liability of $ 4. 3 million, net Other Post -Employment Benefits (" OPEB") liability of $ 1. 0 million, and long- term net obligations of $0. 6 million. The primary factor leading to the decrease in long- term liabilities for business - type activities of

2. 4 million was a result of an increase of net pension liability of $0. 7 million, and net OPEB liability by $ 0. 2 million, offset by a decrease in long- term obligation of $3. million. 5 107

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis introduce the City' s basic financial statements, which are comprised of four components:

Government -wide Financial Statements
Fund Financial Statements
Notes to Basic Financial Statements
In addition, this report contains required and other supplementary information.

GOVERNMENT - WIDE FINANCIAL STATEMENTS
Government - wide Financial Statements provide readers with a broad overview of the City' sfinances that include two different views of the City' s financial position. The government -wide financial statements provide both long- term and short- tem information about the City' s overall financial status.

The statement of net position presents information on all assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between total assets and deferred outflows of resources and total liabilities and deferred inflows of resources is the City' s net position.

Over time increases or decreases in net position may serve as a useful indicator of whether the City' s financial position is improving or deteriorating.

The statement of activities presents information showing how the net positions changed during the most recent fiscal year. All changes in net positon 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 result in cash flows in future fiscal periods. Examples include revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and other leaves.

Both government -wide financial statements address functions principally supported by taxes and intergovernmental revenues (" governmental activities") and other functions that intend to recover all or in part a portion of their costs through user fees and charges (' business -type activities"). The governmental activities of the City include general government, public safety, capital facilities, building safety and inspection, general capital projects and street capital projects. The City' s business -type activities include water system and wastewater system.

FUND FINANCIAL STATEMENTS
Fund financial statements report information about groupings of related accounts used to maintain control over resources segregated for specific activities or objectives. As do other state and local governments, the City uses fund accounting to ensure and demonstrate finance -related legal compliance. Each City fund falls into one of three categories: governmental funds, proprietary funds, or fiduciary funds.
6 108
Governmental funds account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental funds 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 the City' scapacity to finance its programs in the near future.

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 some readers may better understand the long- term impact of the government' snear -term financing decisions. Both the Governmental funds balance sheet and statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate comparison between governmental funds and governmental activities.

The governmental funds balance sheet and statement of revenues, expenditures and changes in fund balances present information separately for the General Fund, Capital Facilities Fee Fund, Building Safety and Inspection Fund, Streets and Roads Fund, and General CIP Projects Fund which are all classified as major funds. These statements also report several individual governmental funds classified as nonmajor funds such as special revenue funds and capital project funds, which are aggregated into a single presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this ACFR.

Proprietary funds generally account for services charged to external or internal customers through fees. Proprietary funds provide the same type of information as shown in the government -wide financial statements for business -type activities, only in more detail. The City accounts for its water system and wastewater system in proprietary funds.

Fiduciary funds account for resources held for the benefit of parties outside of the governments in a similar manner as that of proprietary funds. The government - wide financial statements do not include fiduciary funds as their resources are not available to support City programs.

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.

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

Required Supplementary Information includes the budgetary schedules for the General Fund, Capital Facility Fees Fund, and Building Safety and Inspection Fund. In addition, pension and other postemployment healthcare schedules present the City' s progress toward funding its obligations to provide future pension and other postemployment healthcare benefits for its active and retired employees.

Combining and individual fund statements and schedules provide information for nonmajor governmental funds, internal service funds, and fiduciary funds and are presented immediately following the required supplementary information.
7 109

GOVERNMENT -WIDE FINANCIAL ANALYSIS
Analysis of Net Position
As noted earlier, net position may serve as a useful indicator of a government' sfinancial position. As of June 30, 2023 the City' stotal assets and deferred out flows of resources exceed total liabilities and deferred inflows of resources by $785. 4 million. The following table is a condensed summary of the City' s net positon for governmental and business type activities:

City of Lathrop Summary of Net Position
For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business -Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Total
Percent
Change
Assets:

Capital assets
Other assets
Total Assets
Deferred Outflows
Pension
OPEB
Total Deferred Outflows
Liabilities:

Current liabilities
Long- term liabilities
Net Pension liability
Net OPEB liability
Total Liabilities
253, 479 $ 324, 000 $ 190, 82 $ 221, 456 $ 444, 281 $ 545, 46 198, 957 212, 777 76, 957 79, 363 275, 914 292, 140

22. 77%

5. 88%
452,36 536, 777 267, 759 300, 819 720, 195 837, 596 16. 30% 2, 329 4, 371 316 636 2, 645 5, 007
569 1, 011 90 160 659 1,71

89. 30%

77. 69%
2, 898 5, 382 406 796 3,04 6, 178 86. 99%
22, 361 22, 587 3, 987 6, 581 26, 348 29, 168
4, 970 5, 487 16, 824 13, 634 21, 794 19,21
2, 653 6, 972 314 994 2, 967 7, 966
214 1, 243 34 196 248 1, 439

10. 70%

12. 26%
168. 49%
480. 24%
30, 198 36, 289 21, 159 21, 405 51, 357 57, 694 12. 34% Deferred Inflows
Pensions 2, 489 335 287 53 2, 776 388
OPEB 828 233 131 37 959 270

86. 02%

71. 85%
Total Deferred Inflows 3,17 568 418 90 3, 735 658
Net Position:

Net Investment
in Capital Assets
Restricted
Unrestricted
Total Net Position

82. 38%
250, 65 320, 475 174, 059 206,99 424, 664 526, 774
122, 950 125, 033 1, 653 1, 409 124, 603 126, 442
47, 696 59, 793 70,85 72, 412 118, 41 132, 205

24. 04%

1. 48%

11. 58%
421, 251 $ 505, 301 $ 246, 497 $ 280, 120 $ 667, 748 $ 785, 421 17. 62% 8 110
At June 30, 2023, the City reported positive balances in net position on a total basis. Net investment in capital assets ( infrastructure, land, buildings, other improvements, vehicles, equipment, lease assets and SBITA Tess outstanding debt used to acquire assets and deferred inflows and outflows related to debt) of $ 526. 8 million comprises 67. 1 percent of the City' stotal net position. These capital assets facilitate providing services to the Lathrop community, but are not liquid, and therefore are not available for future spending. During FY 2023 net investment in capital assets increased $ 102. million primarily due to an increase of $ 69. 9 million from governmental activities and an increase of

32. 2 million from business -type activities. A portion of the City' s net positon, $126. 4 million or 16. percent, is subject to legal restriction for their use, including $ 125. 0 million in governmental activities and $ 1. 4 million in business - type activities. Of the total net position at June 30, 2023, a balance of 132. 2 million or 16. 8
percent represents unrestricted net positon, which comprises a balance of

59. 8 million for governmental activities and a balance of $72. 4 million for business -type activities.

During FY 2023, the City' s total net positon increased by $ 122. 5 million. Notable changes in the statement of net positon between June 30, 2023 and June 30, 2022 include:

Assets
Capital assets increased by $ 101. 2 million compared to the prior fiscal year. Governmental capital assets increased by $70. 5 million and business -type capital assets increased by $30. 7 million. The increase is result of the addition of major infrastructure in both Governmental and Business - type funds. Governmental capital assets recorded additions of $ 82. 3 million, which included $ 7. 8 million in capital projects, $ 1. 4 million in right -to -use assets, $2. 3 million in property acquisitions, $ 1. 5 million in vehicles and equipment, $ 9. 6 million in improvements other than building, and $ 59. 7 million in donated developer infrastructure. Business -type capital assets recorded additions of $36. 4 million, which included $ 11. 3 million in water system improvements, $ 18. 5 million in sewer system improvements, $ 6. 3 million in sewer capital projects, and $ 0. 3 million in vehicles and equipment, offset by depreciation of $5. 8 million.

Current and other assets increased by $17. million or 5. 9 percent due to an increase of $13. 8 million in governmental activities and an increase of $2. 4 million in business -type activities.

The increase in governmental activities is mainly due to an increase in cash and investments held with fiscal agents from higher sales and property tax revenues. The increase in current assets for business - type activities is mainly due to higher cash and investments resulting from more revenue received through charges for services and capital donations.

Liabilities
Total long- term liabilities increased by $ 3. 5 million to $ 28. 5 million at June 30, 2023, which represents an increase of 14. 0 percent compared to $ 25. 0 million at June 30, 2022. The primary factors leading to the increase in long- term liabilities for governmental activities of

5. 8 million was due to the increases in net pension liability by $4. 3 million, net OPEB liability of $1. 0 million, and other long term liabilities of $0. 5 million. The primary factor leading to the decrease in business -type activities of $2. 4 million is a result of increases in net pension liability of $ 0. 7 million and net OPEB liability of $ 0.1, offset by a decrease in other long term liabilities $ 3. 2 million attributed to a reduction in compensated absences.

Net pension liability increased $ 5. 0 million since the prior measurement date, primarily due to investments help by CaIPERS decreasing year over year from 2021 to 2022.

Net OPEB liability increased by $ 1. 2 million since the prior measurement date, primarily due to investments help by CaIPERS decreasing year over year from 2021 to 2022. 9 111
Current and other liabilities increased $ 2. 8 million or 10. 7 percent due to an increase in business -type activities.

Deferred Outflows/ Inflows
Deferred outflows of resources increased $ 2. 9 million to $ 6. 2 million at June 30, 2023, which represents an increase of 87. 0 percent compared to $ 3. million at June 30, 2022. The primary factor leading to the increase in deferred outflows is an increase of $ 2. 4 million in pension and $ 0. 5 million in OPEB. The increases are a direct result of adding more than 50 employees to start the City' s police department.

Deferred inflows decreased by $3. 1 million to $ 0. 7 million at June 30, 2023, which represents a decrease of 82. 4 percent compared to $ 3. 1 million at June 30, 2022. The decrease of deferred inflows was primarily due to the decrease in deferred inflows related to pensions of

2. 4 million and OPEB of $0. 7 million.

Net Position
Unrestricted net position for governmental activities increased by $ 12. million or 25. 4 percent with an ending balance of $ 59. 8 million at June 30, 2023. For business -type activities, unrestricted net position increased by $ 1. 6 million or 2. 3 percent with a balance of $ 72. 4 million at June 30, 2023.
10 112
Analysis of Activities
The following table indicates the changes in net position for governmental and business -type activities:

City of Lathrop Changes in Net Position
For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Revenues:

Program revenues:

Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:

Sales and use taxes
Property taxes
Franchise taxes
Transient occupancy taxes
Other taxes
Other miscellaneous
Unrestricted investment earnings
Total Revenues
Expenses:

Governmental activities:

General government
Community development
Public safety
Public works
Culture and leisure
Interest on long- term debt
Business -type activities:

Water enterprise
Sewer enterprise
Total expenses
Excess before transfers
Transfers
Change in Net Position
Net Position - Beginning
Prior Period Adjustment
Net Position, Beginning, Restated
Net Position - Ending
Governmental Activities
Governmental
Activities
2022 2023
Business -Type
Activities
2022 2023
Total Primary
Government
2022 2023
Total
Percent
Change
20, 692 18, 476 19, 900 21, 194 40, 592 39, 670 2.7%
5, 236 7, 477 5, 236 7, 477 42. 80%
25, 390 66, 235 29, 098 25, 390 95, 333 275. 47%
22, 602 21,85 22, 602 21,85 5. 83%
9, 738 10, 510 9, 738 10, 510 7. 93%
1, 640 2,85 1, 640 2,85 39.3%
1, 041 1, 027 1, 041 1, 027 1.34%
32, 094 18, 229 9, 461 5, 839 41, 555 24, 068 42. 08%
1, 344 381 4, 938 687 6, 282 1, 068 83. 00%
2, 101) 3, 901 217 953 1, 884) 4, 854 357. 64%
117, 66 149, 806 34, 516 57, 771 152,92 207, 57 36.9%
6, 994 9, 351 6, 994 9, 351 33. 70%
1, 805 1, 537 1, 805 1, 537 14. 85%
11, 628 15, 351 11, 628 15, 351 32. 02%
14, 711 36, 027 14, 711 36, 027 144. 90%
11, 559 3, 999 11, 559 3, 999 65. 40%
234 226 234 226 3.42%
7, 099 9, 130 7, 099 9, 130 28. 61%
7,07 9, 457 7,07 9, 457 22. 71%
46, 931 66, 491 14, 806 18, 587 61, 737 85, 078 37. 81% 70,45 83, 315 19, 710 39, 184 90, 455 122, 499 35. 43%
5, 818) 3, 144 5, 818 3, 144) 0.0%
64, 927 86, 459 25, 528 36, 040 90, 455
r
122, 499 35. 43%
356,22 421, 251 220, 969 246, 497 577, 291 667, 748 15. 67% 2, 410) 2, 417) 4, 827) 0.0%
356,22 418, 841 220, 969 244, 080 577, 291 662, 91 14. 83% 421, 251 505, 301 246, 497 280, 120 667, 746 785, 420 17. 62% The change in net position for governmental activities increased by $21. 6 million during FY 2023 from

64. 9 million to $ 86. 5 million. Total expenses increased by $ 19. 6 million and revenues including transfers increased by $ 41. 1 million. The major factors contribution to the increase in net position in FY 2023 compared to FY 2022 are as follows:
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Revenues
Fees, fines and charges for service decreased by $ 0. 9 million or 2. 3 percent, mainly due to developer contributions of completed infrastructure.

Operating grants and contributions decreased by $8. 7 million or 13. percent mainly due to a decrease in the Capital Facilities Fund as large industrial buildings pulled permits and paid fees in the prior fiscal year.

Capital grants and contributions increased by $ 69. 9 million or 275. 5 percent mainly due to
the donation of infrastructure from developers. In FY 2023 the City accepted $ 88. 6 million in infrastructure assets.

Other revenues and transfers decreased $ 15. 9 million or 19. 6 percent mainly due to an increase of $6. 7 million in investment earnings, driven by higher interest income received as a result of higher interest rates. Additionally, property tax revenue increased by $0. 8 million and franchise fees increased by $0. 6 million both due to increases in homes sold in the fiscal year. These increases were offset by decreases of $ 1. 3 million in sales tax revenue due to lower gas prices in FY 2023, which directly impacts the City' s sales tax receipts, a decrease of

17. 5 million in other taxes due to in the prior fiscal year two large industrial buildings pulled permits, and a decrease of $5. 2 million in other miscellaneous fees due to the City receiving a onetime arrearage grant from the state for past due water and sewer utility bills.

Expenses
General government expenses increased $ 2. 4 million or 33. 7 percent during FY 2023. This increase is due to the addition of three position in various departments and an increase Information Services Department expenses to support the addition of the new police department.

Public safety expenses increased $ 3. 7 million or 32. 0 percent primarily due to the additions of officers to support our new police department.

Community services expenses decreased by $0. 3 million or 14. 9 percent mainly due to the completion of the City' s
General Plan update that was expensed in the prior fiscal year.

Public Works expenses increased $ 21. 3 million or 144. 9 percent primarily due to the
reallocation of maintenance staff from the culture and leisure department to the public works department. In addition, four new staff members were added to the department.

Culture and leisure expenses decreased by $ 7. 6 million or 65. 4percent primarily due to the reallocation of maintenance staff to the public works department.

Water enterprise expenses increased by $ 2. 0 million or 28. 6percent primarily due to increases in maintenance and operation costs and depreciation expense.

Sewer enterprise expenses increased by $ 1. 8 million or 22. 7 percent mainly due to increases
in maintenance and operation expenses.
12 114
The chart below shows the primary components of governmental activities revenue sources for FY 2023. Of the $ 149. 8 million in total revenues ( not including transfers) generated by governmental activities, 82 percent is attributable to four categories: capital grants and contributions ( 44 percent), sales and use tax ( 14 percent), other taxes ( 12 percent) and charges for service ( 12 percent).

GOVERNMENTAL ACTIVITIES
FY 2023 Revenues by Source
Capital grants and
contributions
44%
Operating grants and
contributions
5%
Charges for services
12%
Unrestricted
investment earnings
3%
Other miscellaneous
0%
Other taxes
12%
Sales and use taxes
14%
Property taxes
7%
ranchise taxes
2%
Transient occupancy
taxes
1%
The chart below shows the major categories of the FY 2023 expenses for governmental activities. Of the $ 66. 5 million in total expenses incurred by governmental activities, 92. 0 percent is attributable to four categories: public safety ( 52 percent), public works ( 17 percent), general government ( 15 percent) and culture and leisure ( 8 percent).

GOVERNMENTAL ACTIVITIES
FY 2023 Expense by Source
Public safety
52%
Community
development
6%
General government
15%
Interest on long- term
debt
2% Culture and leisure
8%
Public works
17%
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Business -type Activities
Business - type activities net positon increased by $ 33. 6 million or 13. 6 percent to $ 280. 1 million in FY 2023.

The notable components of the changes in net position for business -type activities in FY 2003 are:

Water net position increased by $ 14. million or 16. 4
percent from $ 86. 0 million to $ 100. million.

The increase is primarily due to capital infrastructure contributions of $ 10. 8 million. The largest portion of net positon, $60. 0 million or 59. 9 percent, was its net investment in capital assets ( e.g. land, buildings, and infrastructure). Approximately $ 38. 6 million or 38. 6 percent of the total net position, constitutes unrestricted net position, which may be used to finance day- to- day operations without constraints.

Operating revenues increased by $0. 3 million primarily due to an increase in the customer base due to new construction. Operating expenses of $8. 7 million increased by $ 2. 1 million or 31. 8 percent largely due to an increase in surface water supply costs and depreciation expense.

Sewer net position increased by $ 22. 0 million or 13. 9 percent from $ 158. million to $ 180. million.

The increase is primarily attributed to capital infrastructure contributions of $18. 3 million. The largest portion of net positon, $146. 3 million or 81. 2percent, was its net investment in capital assets ( e.g. land, buildings, and infrastructure). Approximately $ 33. 8 million or 18. 8 percent of the total net
position, constitutes unrestricted net position, which may be used to finance day- to- day operations without constraints.

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

As of June 30, 2023, the City' s governmental funds reported combined fund balances of $ 188. 5 million compared to $ 172. 4 million in FY 2022. The governmental fund balances are categorized as nonspendable, restricted, committed, assigned, or unassigned.

9. 8 million consist of nonspendable fund balance related to advances and deposits long- term in nature that are not intended to convert into cash and do not represent currently available resources.
125. 0 million is reported as restricted fund balance that includes restrictions imposed by external parties or enabling legislation. This amount includes unspent grant revenues and restricted tax revenues.

48. 0 million is reported as committed fund balance that has been limited by formal Council action for a specific purpose.

5. 7 million is reported as unassigned fund balance that represents the residual classification for the City' s General Fund and includes all spendable amounts not contained in other classifications.
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General Fund
The General Fund is the chief operating fund of the City. At June 30, 2023 the General Fund unassigned fund balance is $ 6. 1 million or 410. 8percent of the $ 56. 4 million total General Fund balance. Comparing unassigned fund balance and total fund balance to total fund expenditures may be useful as a measure of the General Fund' s
capacity to meet future obligations. At June 30, 2023
unassigned fund balance represented 21. 5 percent of total General Fund expenditures of $ 28. 3 million, while total fund balance represents 199. 3 percent of total General Fund expenditures. At June 30, 2022, the same measures were 27. 7percent and 256. 8 percent, respectively.

The General Fund ending fund balance increased by $ 6. 5 million from $ 49. 9 million to $ 56. 4 million at June 30, 2023.

In FY 2023, the General Fund revenues of $44. 7 million were $7. million or 20. 8 percent higher than FY 2022 revenues of $ 37. 0 million. Use of money and property revenue increased $ 4. 8 million attributed to increases investment earnings, driven by higher interest income received as a result of higher interest rates and the fair value adjustment for FY 2023. Intergovernmental revenue increased

3. 6 million as a result of increased motor vehicle in lieu payments. Revenue increases were offset by a decrease of $0. 2 million in sales tax revenue received and $ 0. 5 million in miscellaneous revenue.

FY 2023 General Fund expenditures of $28. 3 million were $ 7. million or 37. 4 percent higher than FY 2022 expenditures of $ 20. 6 million. The increase was primarily due to an increase of $2. 3 million in general government, $ 3. 5 million in public safety and $ 1. 2 million in capital outlay, which was a direct result of hiring additional staff and purchasing public safety equipment to support the City of Lathrop new police department.

Capital Facility Fees Fund
The Capital Facilities Fees Fud accounts for fees collected for traffic mitigation ( including regional traffic), Storm Drain, culture and leisure, city services and administration. At June 30, 2023, the fund had an ending fund balance of $44. 5 million, which is $ 3. 0 million or 7. 2 percent higher the FY 2022.

The monies in this fund are collected from developers of specific projects.

Building Safety and Inspection Fund
The Building Safety and Inspection Fund has an ending fund balance $ 12. 0 million as of June 30, 2023. The monies in these funds are collected from cost recovery fee sources for specific projects and operations associated with the fee nexus. The restricted fund balance can only be use to fund specific expenses in future fiscal years.

Streets and Roads Fund
The Streets and Roads Fund accounts for capital project expenditures related to streets and roads occurring over more than one fiscal year. As of June 30, 2023 the fund balance of the Streets and Roads fund is $ 11. 3 million.

General CIP Proiects Fund
The General CIP Projects Fund accounts for capital projects funded by the General Fund occurring over more than one fiscal year. The fund balance of the General CIP project fund at June 30, 2023 is $ 18. 5 million,
15 117
Proprietary Funds
The City' s proprietary funds provide similar information to that which is found in the government - wide financial statements, but in more detail. Each fund' sfinancial 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 FY 2023, the water utility enterprise fund increased its net position from $ 86. 0 million to $ 100. million. Unrestricted net assets at the end of the fiscal year amounted to $ 38. 6 million, and are available for future capital water system improvements. $ 60. 0 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. 4 million is restricted to satisfy debt service obligations and covenants.

In FY 2023, the sewer utility fund increased its net position from $ 158. million to $ 180. million.

Unrestricted net position at the end of the fiscal year amounted to $ 33. 8 million and is available for future capital sewer system improvements. $ 146. 3 million of the Sewer Fund' s net position is 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
Staff submits a balanced operating and capital budget biennially to the City Council prior. The Biennial FY 2021/022 and FY 2022/023 was presented to Council in June of 2021.

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.

During the year ended June 30, 2023, there was a $ 5. 7 million increase in budgeted revenues between the orginal and final amended operating budget for the General Fund. The increase in budgeted revenues was due to an increase in property and sales tax revenues of $5. 6 million.

Actual budgetary expenditures of $28. 3 million were $ 6. 1 million less than the amended budget as of June 30, 2023 and $ 6. 0 million less than the original budget due to planned expenduters not occurring in the year ended June 30, 2023.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City' s capital assets net of accumulated depreciation, for its governmental and business -type activities together amounted to $ 545. million at June 30, 2023. This investment includes land, infrastructure, improvements, vehicles, equipment, and construction in progress. For the year ended 16 118
June 30, 2023, net capital assets increased $ 101. 2 million ($ 70. 5 million in governmental activities and $ 30. 7 million in business -type activities) compared to net capital assets at June 30, 2022. The increase in both governmental activities and business - type activities is primarily due to the acceptance of infrastructure and improvements from development.

Total construction in progress increased by $ 11. 9 million from $ 31. 62 million at June 30, 2022 to

43. 5 million at June 30, 2023. Construction in progress for governmental activities increased by

7. 8 million primarily due to $ 12. 6 million additions in general CIP projects and $ 4. 8 million net of projects being transferred into service. Business - type activities contributed an increase of $4. 0 million to the total CIP as additions to the Water and Sewer Systems totaling $ 7. 2 million were offset by

3. 2 million in projects that were completed and placed into service. The completed Water System projects include water meter improvements and water system repairs. The completed projects for the Sewer System include recycled water program and recycled water expansion.

The City records infrastructure assets at historical costs in the government -wide financial statement and depreciates assets from acquisition date to the end of the current fiscal year as required by GASB Statement No. 34. For governmental fund financial statements recording purposes, capital asset purchases are recorded as expenditures, rather than capitalizing and recording related depreciation.

Capital assets, net of depreciation for governmental and business -type activities in the government - wide financial statements are presented below to illustrate changes between FY 2022 and FY 2023 in thousands):

For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business - Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Land $ 10, 600 $ 12, 887 $ 3, 565 $ 3, 565 $ 14,65 $ 16, 452 Construction in Progress 21, 012 28, 784 10, 635 14, 679 31, 647 43,63 Buildings 20, 708 20, 122 0 0 20, 708 20, 122
Improvements other than building 55, 425 60, 971 176, 01 202, 513 231, 486 263, 484 Infrastructure 143,54 196, 98 0 0 143,54 196, 98
Equipment and vehicles 2, 451 3, 172 541 699 2, 992 3, 871 Rigt to use Assets 129 400 0 0 129 400
SBITA 0 695 0 0 0 695
Total Capital Assets 253, 479 323, 999 190, 82 221, 456 444, 281 545, 45 Additional information about the City' scapital assets can be found in the Notes to Basic Financial Statements, Note 4.

Debt Administration
The City' slong- term debt service obligation include revenue bonds, lease revenue bonds and private placement debt. During the current fiscal year, the City' s outstanding long- term debt decreased by

1. 9 million to $ 17. 6 million, comprising $ 0. 3 million in governmental activities and $ 1. 6 million in business -type activities. The decrease of in both governmental and business -type activities is a result of debt service payments and no new bond issuances.
17 119
For the Fiscal Years Ended June 30, 2022 and 2023
in Thousands)
Governmental Business -Type Total Primary
Activities Activities Government
2022 2023 2022 2023 2022 2023
Revenue Bonds - Water $ - $ - $ - $ $
2017 Bank Loan - 8, 178 7, 462 8, 178 7, 462
State Revolving Fund Loan 5,54 5, 071 5,54 5, 071
Compass Bank Loan - 3, 010 2, 623 3, 010 2, 623
Capial Lease - City Hall 2, 745 2, 430 2, 745 2, 430
Total Capital Assets 2, 745 2, 430 16, 742 15,56 19, 487 17, 586 Additional information about the City' slong- term outstanding debt can be found in the notes to the Basic Financial Statements, Note 6.

ECONOMIC FACTORS AND NEXT YEAR' SBUDGETS AND RATES
The City Council considered many factors when setting the Fiscal Year 2023/4 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 an 11. 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' sguidance, 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' sdecision 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/ tapfees) assessed to finance future capital investment for water, sewer, and storm drainage systems. 18 120
As mentioned above, the level of single- family dwelling unit building permits issued, measured at 601 in FY 2023, 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 FY 2023/4budget.

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.
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT -WIDE

FINANCIAL STATEMENTS
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City of Lathrop
Statement of Net Position
June 30, 2023
Primary Government
Governmental Business - type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 202, 815, 359 $ 76, 084,05 $ 278, 899, 364 Receivables:

Accounts ( net of allowance for uncollectibles) 7, 048, 548 3, 583, 748 10, 632, 296 Notes and loans 20, 350 - 20, 350
Accrued interest 414, 87 159, 43 574, 30
Internal balances 1, 873, 305 ( 1, 873, 305)
Restricted assets:

Cash with fiscal agent - 1, 408, 865 1, 408, 865
Prepaids 604, 565 604, 565
Total current assets 212, 776, 974 79, 362, 806 292, 139, 780 Noncurrent assets:

Capital assets:

Nondepreciable 41, 671, 142 18, 244, 833 59, 915,75
Depreciable 402, 113, 987 269, 829, 425 671, 943, 412
Less accumulated depreciation ( 119, 785, 130) ( 66,18, 534) ( 186, 403, 664) Total noncurrent assets 323, 999,99 221, 455, 724 545, 45, 723 Total assets 536, 776, 973 300, 818, 530 837, 595,03

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 4, 371,31 636, 750 5, 008,81 Deferred OPEB related items 1, 011, 762 159, 712 1,71, 474 Total deferred outflows of resources 5, 383, 093 796, 42 6, 179, 555

LIABILITIES
Current liabilities:

Accounts payable 10, 771, 449 3,28, 593 14,00, 042
Accrued liabilities 370, 077 370, 077
Accrued interest - 101, 245 101, 245
Unearned revenue 5, 214, 522 198, 000 5, 412, 522
Deposits payable 5, 754, 977 1, 038, 834 6, 793, 811
Due to other governments - 298, 77 298, 77
Long- term debt Si loans payable 320, 00 1, 615, 562 1, 935, 562 Leases payable 155, 512 155, 512
Total current liabilities 22, 586,37 6, 581, 021 29, 167, 558 Noncurrent liabilities:

Compensated absences 2, 438, 209 92, 848 2, 531, 057
Long- term debt & loans payable 2, 110, 000 13, 540, 667 15, 650,67 Leases payable 939, 279 - 939, 279
Net pension liability 6, 972, 342 994, 01 7, 966, 383
Net OPEB liability 1, 243,92 195, 874 1, 439, 166
Total noncurrent liabilities 13, 703, 122 14, 823, 430 28, 526,52 Total liabilities 36, 289, 659 21, 404,51 57, 694, 110

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 335, 177 52, 759 387, 936 Deferred OPEB related items 233, 798 37, 460 271,58
Total deferred inflows of resources 568, 975 90, 219 659, 14

NET POSITION
Net investment in capital assets 320, 475, 208 206,99, 495 526, 774,03 Restricted for:

Community development 1, 459, 853 1, 459, 853
Public safety 12, 304, 449 - 12, 304, 449
Culture and leisure 1, 734, 092 - 1, 734, 092
Public works 14, 482, 070 - 14, 482, 070
Capital projects 95, 052, 906 95, 052, 906
Debt service - 1, 408, 865 1, 408, 865
Unrestricted 59, 792, 854 72, 411, 962 132, 204, 816
Total net position $ 505, 301, 432 $ 280, 120, 322 $ 785, 421, 754 See accompanying Notes to Basic Financial Statements. 25 127
City of Lathrop
Statement of Activities
For the year ended June 30, 2023
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/ Programs Expenses Services Contributions Contributions Total Governmental activities:

General government $ 9, 350, 898 $ 8, 753, 003 $ 5, 856,54 $ - $ 14, 609, 857 Public safety 15, 350, 996 51, 938 152, 771 204, 709
Community development 1, 537, 163 6, 041, 251 156, 900 6, 198,51 Culture and leisure 3, 999, 365 379, 681 - 5, 000 384, 681 Public works 36, 027, 481 3, 250, 469 1, 310, 731 66, 230, 438 70,91, 638 Interest on long- term debt 225, 835 - - -
Total governmental activities 66, 491, 738 18, 476, 342 7, 477, 256 66, 235, 438 92, 189, 036 Business - type Activities:

Water 9, 130, 486 10, 765, 615 - 10, 779, 611 21, 545, 226 Sewer 9, 457,06 10, 428, 292 - 18, 318, 755 28, 747, 047 Total business -type activities 18, 587, 892 21, 193, 907 29, 098, 366 50, 292,73 Total primary government $ 85, 079, 630 $ 39, 670, 249 $ 7, 477, 256 $ 95, 333, 804 $ 142, 481, 309 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 - beginning of year, as restated
Net position - end of year
See accompanying Notes to Basic Financial Statements. 26 128
Net ( Expense) Revenue
and Changes in Net Position
Governmental Business - Type
Activities Activities Total
5, 258, 959 $ - $ 5, 258, 959
15,46, 287) - ( 15,46, 287)
4, 660, 988 - 4, 660, 988
3, 614,84) ( 3, 614,84)
34, 764, 157 - 34, 764, 157
225, 835) - ( 225, 835)
25, 697, 298 25, 697, 298
12, 414, 740 12, 414, 740
19, 289, 641 19, 289, 641
31, 704, 381 31, 704, 381
25, 697, 298 31, 704, 381 57, 401, 679
10, 509, 687 10, 509, 687
1, 027,15 1, 027,15
21,85, 429 21,85, 429
2,85, 062 2,85, 062
18, 228, 764 5, 839, 401 24, 068, 165
3, 901, 381 952, 746 4, 854, 127
381, 860 687, 317 1, 069, 177
3, 143, 911 ( 3, 143, 911)
60, 763, 109 4, 335, 553 65, 098, 662
86, 460,07 36, 039, 934 122, 500, 341
418, 841, 025 244, 080, 388 662, 91, 413
505, 301, 432 $ 280, 120, 322 $ 785, 421, 754
See accompanying Notes to Basic Financial Statements. 27 129
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28 130
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 131
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30 132
City of Lathrop
Major Governmental Funds
Year Ended June 30, 2023
The funds described below were determined to be Major Funds by the City in fiscal year 2023. Individual non -major funds may be found in the Supplementary Information section

GENERAL FUND
This fund accounts for all financial resources except those accounted for in another fund. It is the general operating fund of the City.

CAPITAL FACILITY FEE SPECIAL REVENUE FUND
To account for the financial resources associated with the capital facility fees for Traffic Mitigation ( includes Regional Traffic), Storm Drain, Culture and Leisure, City Service, and Administration

BUILDING SAFETY & INSPECTION SPECIAL REVENUE FUND
This fund accounts for building safety and inspection permit fee revenue and activity.

STREETS AND ROADS CAPITAL PROJECTS FUND
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year

GENERAL CIP PROJECTS CAPITAL PROJECTS FUND
To account for the expenditure of funds for projects funded from the General Fund 31 133
City of Lathrop
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Funds
Capital Project
Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads ASSETS
Cash and investments $ 45, 283, 863 $ 57, 160, 812 $ 15, 053, 481 $ 11, 747, 481 Receivables:

Accounts ( net of allowance for uncollectibles) 4, 340, 483 4, 027 - 1, 090 Notes and loans - - - -
Accrued interest 97, 809 114, 051 30, 665 20, 364
Due from other funds 14, 604 - -
Prepaids 394, 832 -
Advances to other funds 9, 371,05 -
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
59,02, 896 $ 57, 278, 890 $ 15, 084, 146 $ 11, 768, 935 Liabilities:

Accounts payable $ 934, 372 $
Accrued liabilities 370, 077
Unearned revenue 740, 865
Deposits payable 1, 098, 256
Due to other funds
Advances from other funds
Total liabilities
Fund Balances:
5, 255, 510 $
7, 498, 000
358, 453 $ 480, 147
2, 691,83
64, 079
3, 143, 570 12, 753, 510 3, 114, 215 480, 147
Nonspendable 9, 766, 137 -
Restricted - 44, 525, 380
Committed 40,47, 513 -
Unassigned 6, 145, 676
11, 969,31 8, 624, 058
2, 664, 730
Total fund balances 56, 359,26 44, 525, 380 11, 969,31 11, 288, 788 Total liabilities, deferred inflows of
resources and fund balances $ 59,02, 896 $ 57, 278, 890 $ 15, 084, 146 $ 11, 768, 935 See accompanying Notes to Basic Financial Statements. 32 134
Capital Project
Funds
Nonmajor Total
General CIP Governmental Governmental
Projects Funds Funds
19, 338, 954 $ 52, 103, 916 $ 200, 688, 507
2, 702, 948 7, 048, 548
20, 350 20, 350
38, 605 113, 353 414, 87
14, 604
209, 733 - 604, 565
9, 371,05
19, 587, 292 $ 54, 940, 567 $ 218, 162, 726
1,03,36 $ 2, 639, 831 $ 10, 771, 449
370, 077
1, 781, 974 5, 214, 522
4, 592, 642 5, 754, 977
14, 604 14, 604
7, 498, 000
1,03,36 9, 029,51 29, 623,29
9, 766, 137
13, 592, 877 46, 321, 124 125, 033, 370
4, 891, 279 - 48, 003, 522
409, 608) 5, 736, 068
18, 484, 156 45, 911, 516 188, 539, 097
19, 587, 292 $ 54, 940, 567 $ 218, 162, 726
See accompanying Notes to Basic Financial Statements. 33 135
City of Lathrop
Reconciliation of the Governmental Funds Balance Sheet
to the Government - Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 188, 539, 097 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Nondepreciable 41, 671, 142
Depreciable, net 282, 38, 857
Total capital assets 323, 999,99
In the Government - Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension
Deferred outflows of resources related to OPEB
Deferred inflows of resources related to pension
Deferred inflows of resources related to OPEB
Long- term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Long- term debt - due within one year
Leases payable - due within one year
Compensated absences - due in more than one year
Long- term debt - due in more than one year
Leases payable - due in more than one year
Net pension liability
Net OPEB liability
Total long- term liabilities
4, 371,31
1, 011, 762
335, 177)
233, 798)
320, 000)
155, 512)
311,57)
2, 110, 000)
939, 279)
6, 972, 342)
1, 243,92)
12, 051, 782)
Net Position of Governmental Activities $ 505, 301, 432 See accompanying Notes to Basic Financial Statements. 34 136
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35 137
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
Capital Project
Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads REVENUES:

Taxes and assessments $ 31, 612, 884 $ 11, 020,78 $ - $ Licenses and permits 347, 022 - 1, 820, 591
Intergovernmental 9, 365, 468 - - -
Charges for services 763, 39 - 3, 522, 093 -
Use of money and property 2,84, 635 704, 94 179, 43 118, 890 Fines and forfeitures 7, 893 - -
Developer participation - - -
Miscellaneous 273, 860 - 4, 663 -
Total revenues
EXPENDITURES:
44, 655, 101 11, 725, 022 5,26, 840 118, 890
Current:

General government 9, 372, 651
Public safety 10, 602, 053
Community development 1, 282, 316
Culture and leisure 2, 574, 753
Public works 938, 626 10, 452, 983
Capital outlay 2, 758, 535
Debt service:

Principal retirement 315, 000
Lease principal retirement 367, 507
Interest and fiscal charges 65, 981
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
2, 049, 768
8, 624, 837
28,77, 422 10, 452, 983 2, 049, 768 8, 624, 837
16, 377, 679 1, 272, 039 3, 477, 072 ( 8, 505, 947)
OTHER FINANCING SOURCES (USES):

Transfers in 7, 329, 195 493, 042 8, 761, 455
Transfers out ( 18, 755,31) ( 12, 254, 580) ( 498, 620) - Lease and software subscription proceeds 1, 462, 298 - - Total other financing sources ( uses) ( 9,64, 238) ( 11, 761, 538) ( 498, 620) 8, 761, 455 Net change in fund balances 6, 413,41 ( 10, 489,99) 2, 978, 452 255, 508 FUND BALANCES:

Beginning of year 52, 874, 312 55, 014, 879 8, 991, 479 11, 033, 280 Restatement ( 2, 928, 427) - -
Beginning of year, as restated 49, 945, 885 55, 014, 879 8, 991, 479 11, 033, 280 End of year $ 56, 359,26 $ 44, 525, 380 $ 11, 969,31 $ 11, 288, 788 See accompanying Notes to Basic Financial Statements. 36 138
Capital Project
Funds
Nonmajor Total
General CIP Govemmental Govemmental
Projects Funds Funds
118, 499
10, 662, 275 $ 53, 295,37
37, 590 2,05,03
8, 774,29 18,40,97
4, 369, 077 8, 654, 509
624, 050 4, 030, 511
1, 521, 831 1, 529, 724
2, 017, 292 2, 017, 292
95, 854 374,77
118, 499 28, 102, 698 90, 247, 050
9, 372, 651
4, 354, 095 14, 956, 148
54 1, 282, 370
1, 346, 821 3, 921, 574
28, 042 12, 097, 490 25, 566, 909
11, 081, 476 202, 104 22, 666, 952
315, 000
367, 507
159, 854 225, 835
11,09, 518 18,60, 418 78, 674, 946
10, 991, 019) 9,42, 280 11, 572, 104
20, 469, 099 6,38, 565 43, 691, 356
9, 038, 514) ( 40, 547, 445)
1, 462, 298
20, 469, 099 2, 399, 949) 4, 606, 209
9, 478, 080 7, 542, 331 16,78, 313
9, 006,76 37, 850, 747 174, 770,73
518, 438 ( 2, 409, 989)
9, 006,76 38,69, 185 172, 360, 784
18, 484, 156 $ 45, 911, 516 $ 188, 539, 097
See accompanying Notes to Basic Financial Statements. 37 139
City of Lathrop
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statement of Activities For the year ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Government - Wide Statement of Activities were different because:

Governmental funds reported capital outlay as expenditures. However, in the Government - Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period.

Donated capital assets are not recorded in the governmental funds, but are recognized as revenue at the acquisition value of the assets.

Depreciation expense on capital assets was reported in the Government -Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds.

Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government - Wide Statement of Activities based on earned leave accruals.

Debt proceeds provide current financial resources to governmental funds, but issuing debt increased longterm liabilities in the Government -Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long- term liabilities in the Government -Wide Statement of Net Position.

Long- term debt repayments
Lease and subsciption payments
Acquisition of new leases and subscriptions
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government -Wide Statement of Net Position.

Pension expense is reported in the Government - Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.

OPEB expense is reported in the Government - Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.

Change in Net Position of Governmental Activities
16,78, 313
22, 782, 545
59, 690, 319
11, 822,76)
41, 322)
315, 000
367, 507
1, 462, 298)
1, 739, 487
1, 293, 960)
7, 692
86, 460,07
See accompanying Notes to Basic Financial Statements. 38 140
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39 141
City of Lathrop
Statement of Net Position
Proprietary Funds
June 30, 2023
Water
Business - Type Activities - Enterprise Funds
Governmental
Activities
Compensated
Absences Internal
Sewer Totals Service Fund
ASSETS
Current Assets:

Cash and investments $ 40, 122, 806 $ 35, 961, 199 $ 76, 084,05 $ Receivables:

Accounts (net of allowance for uncollectibles) 2,06, 105 1, 377, 643 3, 583, 748 Accrued interest 81,03 77, 690 159, 43
Restricted:

Cash and with fiscal agent 1, 408, 865 1, 408, 865
Total current assets 43, 819, 579 37, 416, 532 81, 236, 111 Noncurrent:

Capital assets:

Nondepreciable capital assets 3, 165, 631 15, 079, 202 18, 244, 833 Depreciable capital assets 105, 769, 161 164, 060, 264 269, 829, 425 Accumulated depreciation ( 33, 736,05) ( 32, 881,29) ( 66,18, 534) Net capital assets 75, 198, 087 146, 257, 637 221, 455, 724 Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items
Deferred OPEB related items
75, 198, 087 146, 257, 637 221, 455, 724
2, 126, 852
2, 126, 852
119, 017, 666 183, 674, 169 302, 691, 835 2, 126, 852
390,22 246, 428 636, 750
97, 536 62, 176 159, 712
Total deferred outflows of resources 487, 858 308, 604 796, 42

LIABILITIES
Current liabilities:

Accounts payable 1, 851, 753
Accrued interest 101, 245
Unearned revenue 198, 000
Deposits payable 1, 007, 546
Due to other governments 298, 77
Loans payable 1, 615, 562
1, 476, 840
31, 288
3,28, 593
101, 245
198, 000
1, 038, 834
298, 77
1, 615, 562
Total current liabilities 5, 072, 893 1, 508, 128 6, 581, 021 Noncurrent liabilities:

Advances from other funds 1, 873, 305 1, 873, 305 -
Accrued compensated absences 63,22 29,26 92, 848 2, 126, 852 Net pension liability 603, 302 390, 739 994, 01
Net OPEB liability 119, 565 76, 309 195, 874
Loans payable 13, 540, 667 - 13, 540, 667
Total noncurrent liabilities 14, 327, 156 2, 369, 579 16, 696, 735 2, 126, 852 Total liabilities 19, 400, 049 3, 877, 707 23,77, 756 2, 126, 852

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items
Deferred OPEB related items
32, 199 20, 560 52, 759
22, 957 14, 503 37, 460
Total deferred inflows of resources 55, 156 35, 063 90, 219

NET POSITION
Net investment in capital assets 60, 041, 858 146, 257, 637 206,99, 495 Restricted 1, 408, 865 1, 408, 865
Unrestricted 38, 599,96 33, 812, 366 72, 411, 962
Total net position $ 100, 050, 319 $ 180, 070,03 $ 280, 120, 322 $ See accompanying Notes to Basic Financial Statements. 40 142
City of Lathrop
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Business - Type Activities - Enterprise Funds Activities OPERATING REVENUES:

Sales and service charges
Other income
Total operating revenues
OPERATING EXPENSES:

General and administrative
Maintenance and operations
Depreciation expense
Water
Compensated
Absences Internal
Sewer Totals Service Fund
10, 765, 615 $ 10, 428, 292 $ 21, 193, 907 $ 301, 93
320,55 366, 92 687, 317
11, 085, 970 10, 795, 254 21, 881, 224 301, 93
1, 364, 848
4, 869, 796
2, 432, 538
953, 800
5, 165,93
3,38, 413
2, 318, 648
10, 034, 989
5, 770, 951
301, 93
Total operating expenses 8, 667, 182 9, 457,06 18,24, 588 301, 93 Operating income ( loss) 2, 418, 788 1, 337, 848 3, 756, 636 NONOPERATING REVENUES ( EXPENSES):

Taxes and assessments 2, 332, 295
Investment earnings 492,76
Interest expense ( 463, 304)
3, 507, 106
460, 270
5, 839, 401
952, 746
463, 304)
Total nonoperating revenues ( expenses) 2, 361, 467 3, 967, 376 6, 328, 843 Income before contributions and transfers 4, 780, 255 5, 305, 224 10, 085, 479 CONTRIBUTIONS AND TRANSFERS:

Contributions 10, 779, 611 18, 318, 755 29, 098, 366
Transfers in - 43, 149 43, 149
Transfers out ( 1, 509, 110) ( 1, 677, 950) ( 3, 187, 060) Total contributions and transfers 9, 270, 501 16, 683, 954 25, 954, 455 Change in net position 14, 050, 756 21, 989, 178 36, 039, 934 NET POSITION:

Beginning of year 88, 417, 047 158, 00, 825 246, 497, 872 Restatements ( 2, 417,84) - ( 2, 417,84)
Beginning of year, as restated 85, 999, 563 158, 00, 825 244, 080, 388 End of year $ 100, 050, 319 $ 180, 070,03 $ 280, 120, 322 $ See accompanying Notes to Basic Financial Statements. 41 143
City of Lathrop
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Business -Type Activities
Governmental
Activities
Water
Compensated
Absences Internal
Sewer Totals Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users $ 11,98, 465 $ 10, 518, 697 $ 21, 717, 162 $ Cash paid to suppliers for goods and services ( 4, 086, 737) ( 4, 929, 102) ( 9, 015, 839) Cash paid to employees for services ( 1, 337, 068) ( 937, 348) ( 2,74, 416) Cash received from ( payments to) others 320,55 366, 92 687, 317 Net cash provided (used) by operating activities

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash transfers in
Cash transfers out
Repayment made to other funds
Taxes and assessments
301, 93
6, 095,15 5, 019, 209 11,14, 224 301, 93
1, 509, 110)
2, 332, 295
43, 149 43, 149
1, 677, 950) ( 3, 187, 060)
532,59) ( 532,59)
3, 507, 106 5, 839, 401
Net cash provided ( used) by
non -capital financing activities 823, 185 1, 339, 746 2, 162, 931

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets ( 653, 093) Principal paid on capital debt ( 1, 585, 872)
Interest paid on capital debt ( 526, 975)
6,73,94)
59, 124)
7, 326, 787)
1, 585, 872)
586, 099)
Net cash provided ( used) by
capital and related financing activities: ( 2, 765, 940) ( 6, 732, 818) ( 9, 498, 758) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 492,76 460, 270 952, 746
Net cash provided ( used) by investing activities 492,76 460, 270 952, 746 Net increase ( decrease) in cash and cash equivalents 4, 644, 736 86, 407 4, 731, 143 301, 93 Cash and cash equivalents at beginning of year 36, 886, 935 35, 874, 792 72,61,27 1, 824, 939 Cash and cash equivalents at end of year $ 41, 531, 671 $ 35, 961, 199 $ 77, 492, 870 $ 2, 126, 852

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

Operating income (loss) $ 2, 418, 788 $ 1, 337, 848 $ 3, 756, 636 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 2, 432, 538 3,38, 413 5, 770, 951
Increase) decrease in accounts receivable 254,70 90, 405 344, 675 Increase ( decrease) in accounts payable 783, 059 236, 091 1, 019, 150 Increase ( decrease) in unearned revenue 198, 000 - 198, 000 Increase (decrease) in deposits payable ( 19, 420) - ( 19, 420) - Increase (decrease) in compensated absences 8, 956 2, 355 11, 311 301, 93 Increase ( decrease) in pension and OPEB 18, 824 14, 097 32, 921 - Total Adjustments 3, 676, 227 3, 681, 361 7, 357, 588 301, 93 Net cash provided ( Used) by operating activities $ 6, 095,15 $ 5, 019, 209 $ 11,14, 224 $ 301, 93 Non -Cash Investing, Capital, and Financing Activities:

Donated assets $ 10, 779, 611 $ 18, 318, 755 $
See accompanying Notes to Basic Financial Statements. 42 144
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43 145
City of Lathrop
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Custodial
Funds
ASSETS
Cash and investments $ 5, 642, 239
Receivables:

Accrued interest 13, 389
Restricted assets:

Cash and with fiscal agent 16, 434, 791
Total assets 22, 090, 419

LIABILITIES
Accounts payable
Deposits payable
Total liabilities

NET POSITION
488, 806
30, 747
519,53
Restricted for:

Individuals, organizations, and other governments 21, 570, 866 Total Net Position 21, 570, 866
See accompanying Notes to Basic Financial Statements. 44 146
City of Lathrop
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Custodial
Funds
ADDITIONS:

Collections for assessment districts $ 6, 779, 871
Receipts from others 12, 459, 064
Investment earnings 165, 323
Total additions 19, 404, 258
DEDUCTIONS:

Administrative expenses
Contractual services
Interest expense
105, 686
506,12
8, 460, 838
Total deductions 9, 073,36
Change in net position 10, 331, 222
NET POSITION:

Beginning of year 4, 298, 198
Restatements 6, 941, 446
Beginning of year, as restated 11, 239, 644
End of year $ 21, 570, 866
See accompanying Notes to Basic Financial Statements. 45 147
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46 148

NOTES TO BASIC

FINANCIAL STATEMENTS
149
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48 150
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Lathrop, California, (the City) was incorporated July 1, 1989, under the general laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: general government, public safety, public ways and facilities/ transportation, culture and leisure, and public utilities.

The financial statements of the primary government of the City of Lathrop include the activities of the City as well as the Lathrop Public Facilities Financing Corporation, which is controlled by and dependent on the City. While it is a
separate legal entity, its financial activities are integral to those of the City. Its financial activities have been aggregated and merged ( termed " blending") with those of the primary government of the City in the accompanying financial statements.

On April 11, 2000, the City Council formed the Lathrop Public Facilities Financing Corporation Corporation), a non- profit public benefit corporation. The Corporation was formed to assist the City in financing the acquisition, construction, and improvement of municipal facilities. The Corporation is also empowered to acquire property. The Corporation is governed by a Board of Directors consisting of the City Council members.

B. Basis of Presentation
The City' sBasic 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- zvide 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. 49 151
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued
The Statement of Activities presents a
comparison between direct expenses and program revenues for each segment of the business - type activities of the City and for each function of the City' s governmental activities. Direct expenses are those that are specifically associated with a program or function and,
therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements - The fund financial statements provide information about the City' sfunds, 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 accounted for in another fund. It is the general operating fund of the City.

Capital Facility 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. 50 152
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued
Buildings Safety & Inspection Special Revenue Fund
This fund accounts for building safety and inspection permit fee revenue and activity.

Streets and Roads Capital Projects Fund
The Streets and Roads Capital Projects Fund accounts for capital project expenditures related to streets and roads occurring over more than one fiscal year.

General CIP Projects 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' ssewer 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 ofAccounting
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. 51 153
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued
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 longOterm 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 longterm debt and acquisitions under capital leases are reported as other financing sources.

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. 52 154
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Property Tax, Continued
The City has elected to receive property taxes from the County of San Joaquin ( County) under the Teeter Plan. Under this program, the City receives 100% of the levied property taxes in periodic payments with the County assuming responsibility for delinquencies. Secured property taxes are due in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31. The City accrues only taxes which are received from the County within 60 days after fiscal year end.

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' scash and cash equivalents are considered to be cash on hand, demand deposits, and short- tem 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.
33 155
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at the estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not 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.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year' s pro rata share of the cost of capital assets. Generally accepted accounting principles require that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which means the cost of the capital asset is divided by its expected useful life in years and the result is charged to expense each year until the capital asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.

Buildings 10 - 30 years
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
Land Improvements
Buildings and Building Improvements
Infrastructure
Equipment, Furniture and Vehicles
Leases and Subscriptions ( GASBS 87 and 96)
Leasehold Improvements
Construction in Progress for Year End Reporting
50, 000
50, 000
50, 000
10, 000
100, 00
50, 000
50, 000 will exceed amount at completion
54 156
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Compensated Absences
City employees accumulate earned but unused vacation which can be converted to cash at termination of employment. For governmental funds, aliability 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.

L. 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.

M. Net Pension Liability
For purposes of measuring 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 Ca1PERS 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. Ca1PERS audited financial statements are publicly available reports that can be obtained from Ca1PERS' website under Forms and Publications.

N. Other Post -Employment Benefits ( OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense 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
Measurement Date
Measurement Period
June 30, 2021
June 30, 2022
June 30, 2021 to June 30, 2022
55 157
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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 resources, represents an acquisition of net assets that applies to a future period( s) and so will not be recognized as an inflow of resources revenue) until that time.

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" (e., i. 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.

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' sassets 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' scapital assets, less the outstanding balance of any debt issued to finance these assets and related deferred inflow of resources. 56 158
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued
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' sfund 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.

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' sintent 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.
57 159
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued
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 9.

R. New, Closed and Renamed Funds
The following funds were established during the fiscal year:

The Gateway Business Park Special Revenue Fund - Lathrop Gateway Business Park Specific Plan (" Gateway Business Park") is an industrial park currently being developed by Phelan Haugen Development in the City. Phelan is entitled for approximately 3. 2 million square feet of light industrial development. In order for the City to ensure that development continues to pay its own way, a Community Facilities District was formed to cover the maintenance needs of the development.

The following funds were closed during the year:

Office of Traffic and Safety
Central Lathrop Specific Plan ( CLSP) Services CFD Special Revenue Fund S. New Accounting Pronouncement
GASB Statement No. 91, Conduit Debt Obligations - The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with ( 1) commitments extended by issuers, ( 2) arrangements associated with conduit debt obligations, and ( 3) related note disclosures. The City updated disclosures relating to conduit debt obligations as part of implementation of this statement.

GASB Statement 94, Public -Private and Public - Public Partnerships and Availability Payment Arrangements - The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements ( PPPs). The requirements of this statement did not apply to the City for the current fiscal year.

GASB Statement No. 96, Subscription -based Information Technology Arrangements - This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements ( SBITAs) for government end users (governments). The City recognized an intangible assets and SBITA liabilities as part of implementation of this statement. 58 160
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

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' scash on deposit or first trust deed mortgage notes with a value of 150% of the City' scash 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' sname and places the City ahead of general creditors of the institution pledging the collateral.

The City' sinvestments 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, 2023, are as follows:

City cash and investments in primary government:

Cash and investments $ 278, 899, 364
Cash and investments, restricted, with fiscal agents 1, 408, 865 Total primary government cash and investments 280, 38, 229 Cash and investments in Fiduciary Funds ( separate statement):

Cash and investments
Cash and investments, restricted, with fiscal agents
Total Fiduciary Funds cash and investments
5, 642, 239
16, 434, 791
22, 077,30
Total cash and investments $ 302,85, 259
59 161
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
B. Classification, Continued
Cash and Investments as of June 30, 2023, consist of the following:

Cash on hand $ 6, 260
Cash with financial institutions 143, 697, 591
Investments 158, 61, 408
Total Cash and Investments $ 302,85, 259
C. Investments Authorized by the California Government Code and the City' s Investment Policy
The City' sInvestment 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' sinvestment policy states that all investments and deposits shall be made in accordance to the California Government Code Sections 16429., 53600-3609 and 53630-3686, 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/ Investment Minimum
Maximum Amount of in One Credit
Authorized Investment Type Maturity Portfolio Issuer Ratings Local Government Bonds 5 years 30% None A
State Bonds 5 years 30% None A
US Treasury Obligations 5 years None None N/ A
US Government 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 Reverse 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 Investment 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
60 162
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
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:

Maximum Maximum
Percentage/ Investment
Maximum Amount of in One
Authorized Investment Type Maturity Portfolio Issuer
US Treasury Obligations None None None
US Agency Securities None None None
Mortgage - caked Securities 3
years None None
Banker' sAcceptance ( 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 Investment 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. 61 163
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
E. Interest Rate Risk, Continued
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' sinvestments by maturity or earliest call date:

Measurement Input
Investment Type
U. S. Treasury Obligations
U. S. Government Agencies Issues
Supranational Obligations
Local Agency Investment Fund
Asset Management Program
Money Market Mutual Funds
12 Months or
Less
2, 435, 680
2, 004, 931
591, 672
73,35, 096
10, 694, 379
2, 976, 780
13 to 24 Months 25 to 60 Months Total
36, 498, 141
3, 064, 838
438, 218
22, 716, 836
3, 524, 837
61,50,57
8, 594, 606
1, 029, 890
73,35, 096
10, 694, 379
2, 976, 780
Total Investments $ 92, 438, 538 $ 40, 001, 197 $ 26,41, 673 158, 61, 408 Cash in Banks and On Hand 143, 703, 851
Total City Cash and Investments $ 302,85, 259
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. For the year ended June 30, 2023, the fair value factor for the City' s
investments in LAIF was 0. 984828499. 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.

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, 2023, LAIF had 2. 78% of its portfolio invested in structured notes and asset - backed securities as compared to 1. 88% in the prior year.

Bond proceeds accounts are subject to a one- time deposit with no cap and are set up with a monthly draw down schedule.
62 164
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
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, 2023:

Investments by Fair Value Level: Level 1 Level 2 Total
U. S. Treasury Obligations
U. S. Government Agencies Issues
Supranational Obligations
61,50,57 $ 61,50,57
8, 594, 606 8, 594, 606
1, 029, 890 1, 029, 890
Total Investments by Fair Value Level $ 71, 275, 153
Investments Measured at Amortized Cost:

Local Agency Investment Fund
Asset Management Program
Money Market Mutual Funds
Cash in Banks and On Hand
71, 275, 153
73,35, 096
10, 694, 379
2, 976, 780
143, 703, 851
Total Cash and Investments $ 302,85, 259
For investments classified within Level 2 of the fair value hierarchy, the City' scustodians generally use a multi -dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker dealer quotes, issuer spreads and benchmark securities, among others. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.

G. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The actual ratings as of June 30, 2023, as provided by Standard and Poor' s, are as follows:
63 165
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

2. CASH AND INVESTMENTS, Continued
G. Credit Risk, Continued
Investment Type AAAm
Supranational Obligations
U. S. Government Agencies Issues
US Treasury Obligations
Money Market Mutual Funds
Totals
Not Rated:

Local Agency Investment Fund
Asset Management Program
AAA Total
1, 029, 890 $ 1, 029, 890
61,50,57 61,50,57
8, 594, 606 8, 594, 606
2, 976, 780 - 2, 976, 780
2, 976, 780 $ 71, 275, 153 74, 251, 933
73,35, 096
10, 694, 379
Total Investments $ 158, 61, 408
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, 2023.

3. INTERFUND TRANSACTIONS
A. Long -Term Advances
As of June 30, 2023, the Sewer Enterprise Fund had a
remaining balance of $1, 873, 305 owed to the General
Fund, which was used to cover capital construction and other related costs. The advances are repaid with future operating revenues over several years.

In the fiscal year ended June 30, 2023, the City loaned the Capital Facility Fees Fund $ 7, 498, 000 for the purpose of funding an animal shelter. The loan will be repaid through fee revenues.

B. Short -Term Activities
As of June 30, 2023, the General Fund loaned the State Grants Special Revenue Fund ( non -major governmental fund) $14, 604 to cover atemporary cash shortfall. 64 166
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

3. INTERFUND TRANSACTIONS
C. 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, 2023, were as follows:

Transfers In
Transfers Out
Capital General Non -Major
General Facility Streets & CIP Governmental
Fund Fees Roads Projects Funds Sewer Total
Major Funds:

General Fund $ - $ 365, 042 $ 3, 682, 551 $ 9, 279, 576 $ 5, 428, 562 $ - $ 18, 755,31 Capital Facilities Fee Special Revenue Fund 481, 000 - 1, 004, 487 10, 769, 093 - - 12, 254, 580 Building Safety & Inspection Special Revenue Fund 498, 620 - - - 498, 620 Non -Major Governmental Funds 3, 292, 515 128, 000 4, 074, 417 290, 430 1, 210, 003 43, 149 9, 038, 514 Major Enterprise Funds:

Water 1, 409, 110 - - 100, 00 - 1, 509, 110
Sewer 1, 647, 950 - 30, 000 1, 677, 950
Total 7, 329, 195 $ 493, 042 $ 8, 761, 455 $20, 469, 099 $ 6,38, 565 $ 43, 149 $ 43, 734, 505 The purpose of the General Fund transfers out were to fund various capital projects and, to a lesser extent, to subsidize special revenue funds' operations. Transfers from the Capital Facilities Fee Special Revenue Fund were to fund operations and contribute to capital projects. Transfers from the Building, Safety & Inspection Special Revenue Fund, and the Water and Sewer Enterprise Funds to the General Fund were to help pay for overhead costs. Transfers from Non -Major Governmental Funds to the General Fund and Streets & Roads were to pay for overhead costs and projects, and capital projects, respectively.

D. 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.
65 167
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

4. CAPITAL ASSETS
A. Capital Asset Additions and Retirements
Capital assets activity for the year ended June 30, 2023, is as follows:

Balance Balance
Governmental Activities July 1, 2022 Additions Retirements June 30, 2023 Capital assets not being depreciated:

Land
Construction in Progress
Total capital assets not being depreciated
10, 599, 729 $ 2,87, 721 $
21, 012, 408 7,71, 284
12, 887, 450
28, 783, 692
31, 612, 137 10, 059,05 41, 671, 142
Capital assets being depreciated/ amortized:

Buildings 25, 109, 553 - 25, 109, 553
Improvements 83, 567, 296 9, 610, 242 93, 177, 538
Equipment and Vehicles 5, 443, 659 1, 469, 659 6, 913, 318 Infrastructure 215, 579, 620 59, 690, 319 275,69, 939
Equipment and Vehicles - Right -to -use Assets 210, 928 1, 643,39 ( 210, 928) 1, 643,39 Total capital assets being depreciated/ amortized 329, 911, 056 72, 413, 859 ( 210, 928) 402, 113, 987 Less accumulated depreciation/ amortization:

Buildings ( 4,01, 953) ( 585, 345) ( 4, 987, 298)
Improvements ( 28, 142, 067) ( 4, 064, 305) ( 32, 206, 372) Equipment and Vehicles ( 2, 993, 08) ( 747, 416) ( 3, 740, 454) Infrastructure ( 72, 425, 196) ( 5, 876, 91) - ( 78, 302, 157) Equipment and Vehicles - Right -to -use Assets ( 81, 793) ( 548, 849) 81, 793 ( 548, 849) Total accumulated depreciation/ amortization ( 108, 044,47) (11, 822,76) 81, 793 ( 119, 785, 130) Net capital assets being depreciated/ amortization 221, 867, 009 60, 590, 983 ( 129,35) 282, 38, 857 Governmental Activities Capital Assets, Net $ 253, 479, 146 $ 70, 649, 988 $ ( 129,35) $323, 999,99 66 168
City of Lathrop
Notes to Basic Financial Statements
For the 'Year Ended June 30, 2023

4. CAPITAL ASSETS, Continued
A. Capital Asset Additions and Retirements, Continued
Balance Balance
Business - type Activities July 1, 2022 Additions Transfers June 30, 2023 Capital assets not being depreciated:

Land $ 3, 565, 179 $ $ - $ 3, 565, 179
Construction in Progress 10, 635, 238 7, 217,07 ( 3, 172, 791) 14, 679,54 Total capital assets not being depreciated 14, 200, 417 7, 217,07 ( 3, 172, 791) 18, 244, 833 Capital assets being depreciated:

Buildings 3, 072 - 3, 072
Improvements 235, 815, 251 28, 932, 796 3, 172, 791 267, 920, 838 Equipment and Vehicles 1, 630, 365 275, 10 1, 905, 515
Net capital assets being depreciated 237, 448, 688 29,07, 946 3, 172, 791 269, 829, 425 Less accumulated depreciation:

Buildings ( 3, 042) ( 15) - ( 3, 057)
Improvements ( 59, 754,48) ( 5, 653, 028) - ( 65, 407, 776) Equipment and Vehicles ( 1, 089, 793) ( 117, 908) - ( 1, 207, 701) Total accumulated depreciation ( 60, 847, 583) ( 5, 770, 951) ( 66,18, 534) Net capital assets being depreciated 176, 601, 105 23, 436, 995 3, 172, 791 203,10, 891 Business -type Activities Capital Assets, Net $ 190, 81, 522 $ 30, 654, 202 $ - $ 221, 455, 724 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 government $ 431,66
Community development 254, 793
Public safety 482, 661
Public works 10, 576, 165
Culture and leisure 77,91
Total Governmental Activities $ 11, 822,76
67 169
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

4. CAPITAL ASSETS, Continued
C. Depreciation Allocation, Continued
Business -Type Activities:

Water $ 2, 432, 538
Sewer 3,38, 413
Total Business -Type Activities $ 5, 770, 951

5. COMPENSATED ABSENCES
The following is a
summary of changes in the City' scompensated absences for the fiscal year ended June 30, 2023:

Balance Balance Due within
June 30, 2022 Additions Retirements June 30, 2023 one year Governmental activities $ 2, 094, 974 $ 379, 050 $ 35, 815 $ 2, 438, 209 $ Business -type activities 81, 537 13, 537 2,26 92, 848
Total 2, 176, 511 $ 392, 587 $ 38, 041 $ 2, 531, 057 $

6. LOANS PAYABLE & OTHER LONG- TERM DEBT
A. The City' s
Loans Payable & Other Long -Term Debt
The City' slong- term debt activities for the year ended June 30, 2023, is as follows:

Balance Balance
Governmental Activities Long -Term Debt June 30, 2022 Retirements June 30, 2023 Current Portion Financing Agreement Obligation
2016 Financing Agreement

2. 55%, due 07/ 15/ 2029
Total Governmental Activities
2, 745, 000 $ 315, 000 $ 2, 430, 000 $ 320, 00
2, 745, 000 $ 315, 000 $ 2, 430, 000 $ 320, 00
Balance Balance
Business -type Activities Long -Term Debt June 30, 2022 Retirements June 30, 2023 Current Portion Capital Loan Obligation
2017 Bank Loan

2. 89%, due 06/1/ 2032 $ 8, 177, 936 $ 716, 294 $ 7, 461, 642 $ 737, 145 State Revolving Fund Loan

2. 3086%, due 07/1/ 2032 5,54, 128 482, 716 5, 071, 412 477, 753 Compass Bank Loan

3. 50%, due 06/1/ 2029 3, 010,37 386, 82 2, 623, 175 400, 664 Total Business -type Activities $ 16, 742, 101 $ 1, 585, 872 $ 15,56, 229 $ 1, 615, 562 68 170
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
B. Debt Service Requirements
Future principal and interest payments on all governmental and business - type long- term debt are as follows at June 30, 2023:

Business -Type Activities:

For the Year
Ending June 30
Governmental Activities:

For the Year
Ending June 30
Direct Borrowings
2016 Financing Agreement
Principal Interest
2024
2025
2026
2027
2028
2029-033
Total
320, 00
330, 00
340, 00
345, 000
360, 00
735, 000
57, 885
49, 598
41, 055
32,21
23, 333
18, 934
2, 430, 000 $ 223, 126
Direct Borrowings
2017 Bank Loan State Revolving Fund Loan Compass Bank Loan Principal Interest Principal Interest Principal Interest 2024
2025
2026
2027
2028
2029-033
737, 145
758, 604
780, 687
803, 412
826,00
3, 554, 994
210, 316
188, 857
166, 774
144, 08
120, 660
234, 88
477, 753
494,89
505, 970
517, 719
529, 740
2, 545, 741
119, 820
108, 727
97, 376
85, 762
73, 878
181, 249
400, 664
414, 810
429,55
444, 618
460, 316
473, 312
88, 336
74, 190
59,44
44, 382
28, 684
12, 432
Total $ 7, 461, 642 $ 1, 065, 503 $ 5, 071, 412 $ 666, 812 $ 2, 623, 175 $ 307, 568 69 171
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
C. Description of the City' s
Loans Payable & Other Long -Term Debt Issues
City Hall Loan - On June 1, 2016, the City entered into a financed purchase 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 purchase agreement to Capital One Public Funding, LLC. The proceeds of the financed purchase obligation, together with available funds from the City, were used to advance refund the outstanding 2004 Obligation amounting to 6,40, 000. A total of $6, 787, 680 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2004 Obligation. As a result, the 2004 Obligation was considered defeased and the liability for the 2004 Obligation has been removed from the Statement of Net Position as of June 30, 2016. On July 15, 2016, the 2004 Obligation was prepaid fully. This advance refunding reduced the City' s
total debt service payments over 15 years by $ 2, 901, 765 and obtained an economic gain ( difference between the present values of the debt service payments on the old and new debt) of $950, 783. Due to the timing of debt service payments on July 15th of each year, the City prepays the principal and interest.

The 2016 City Hall Financing Obligation is secured by the City Hall building at 390 Towne Centre Drive, Lathrop, California. The outstanding amount contains a provision that in an event of default, Lathrop Financing Authority may terminate the agreement, rent out all or any portion of the property, or hold the City liable for the payment of all base rental obligations and be reimbursed for any deficiency arising out of re -renting 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 was 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 had 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.

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 atwenty- year repayment period and a 2.3% interest rate. Principal and interest payments are paid semiannually. The City' s net
water system revenues have been pledged for the repayment of debt service on loan.

The State Revolving Fund Loan is secured by a promissory note. The outstanding loan amount contains a provision that in an event of default, the State can declare the City' s obligation immediately due and payable.
70 172
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

6. LOANS PAYABLE & OTHER LONG- TERM DEBT, Continued
C. Description of the City' s
Loans Payable & Other Long -Term Debt Issues, Continued Compass Bank Loan - During fiscal year 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 loans 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.

For the fiscal year June 30, 2023, net revenues of the Water Enterprise Fund amounted to $ 2, 839, 196 which represented coverage of 2. 57 times the $1,03,56 debt service on the 2017 Bank Loan and Compass Bank Loan.

7. SPECIAL ASSESSMENT/ COMMUNITY FACILITY DISTRICT 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, 2023 is as follows:

Mossdale Assessment District Refunding 2015 $ 4, 605, 000 Lathrop Financing Authority Special Tax Revenue Bonds
Mossdale Village Reassessment District No. 2013- 1) 2013 Series 7, 590, 000 Lathrop Financing Authority Special Tax Revenue Bonds
Community Facilities No. 2003- 1) 2013 Series A 4, 745, 000 Crossroad Assessment District Series 2015 8, 655, 000
Joint Wastewater Project CFD 2003- 4, 725, 000
Lathrop Sanitary Sewer Assessment District No. 1 160, 00 Community Facilities District No. 2018- 1 12, 570, 000
71 173
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

8. LEASES AND SUBSCRIPTION - BASED INFORMATION TECHNOLOGY ARRANGEMENTS The City records several leases payable for tangible assets, as well as on software subscriptions SBITAs).

Lease and SBITA agreements are summarized as follows:

Payment Payment Interest
Description Date Terms Amount Rate
Balance
June 30, 2023
Storage server
Rubrik data backup
Police cameras and tasers
Camera software
Integrated police software
2/8/021 3 years $ 3, 204 0.0%
7/ 26/022 3 years 3, 547 0.0%
3/ 15/ 2023 4- 5 years 90, 519 0.0%
3/ 15/ 2023 4- 5 years 85, 975 0.0%
3/ 13/ 2023 5 years 110, 00 0.0%
22, 429
85, 130
292,89
254, 93
440, 00
Total Leases and SBITAs $ 1, 094, 791
Integrated police software - original subscription amount: $ 550, 00 - The software provided by Peregrine Technologies Inc. provides a real time data analysis and visualization systems that integrates data from a broad range of law enforcement software, including Computer Aided Dispatch ( CAD) provided by RIMS, Records Management System ( RMS) provided by RIMS, License Plate Readers ( LPR) provided by Vigilant insight, and Flock Fleet 3, Video Management System (VMS) provided by Avigilon and Digital Evidence Management System ( DEMS) provided by Evidence. com.

Police cameras and tasers, and related camera software - original lease amount: $ 438, 076, original subscription amount: $412, 51 - Axon Enterprises, Inc. provides body cameras, tasers and in car video equipment to the City' s police force. The Axon system unifies the operation of body cameras, tasers and in car video and provides storage for all the data gathered from them. The system allows retrieval and use that complies with all legal requirements and is easily retrievable by all authorized personnel. The equipment will be maintained by Axon and will be replaced when necessary, avoiding the need for highly technical staff support and assuring the equipment remains functional and evidence produced will be legally viable. Axon also provides training and support for all their products leased by the City.

Storage server - original lease amount $ 115, 348 - Hewlett Packard Financial Services leases a storage
server to the City which is ultimately used by all departments.

Rubrik data backup - original lease amount $ 127, 695 - Hewlett Packard Financial Services leases a Rubrik backup server which is indirectly used by all departments. 72 174
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

8. LEASES AND SUBSCRIPTION - BASED INFORMATION TECHNOLOGY ARRANGEMENTS, Continued
Annual requirements to amortize long- term obligations and related interest are as follows:

Year Ending
June 30 Principal Interest
2024 $ 351, 487 $
2025 329, 058
2026 283, 511
2027 130, 735
1, 094, 791 $

9. FUND BALANCE
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' s
adjusted 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 is 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 is available for budget stabilization. At June 30, 2023, the Economic Uncertainty Reserve amounted to 5, 284, 153.

The Exposure and Emergency Reserves consist of 25% of the Contingency Reserve Balance. Exposure Reserves are 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 is maintained to minimize all unforeseen events not covered in the Economic Uncertainty Reserve and Exposure Reserves. At June 30, 2023, the Exposure and Emergency Reserves amounted to $ 1, 761, 384.
73 175
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

9. FUND BALANCE, Continued
B. Fund Balances
Detailed classifications of the City' s
fund balances, as of June 30, 2023, are below:

Building Other
Capital Safety & Streets and Roads General CIP Governmental General Fund Facilities Fee Inspection Capital Projects Projects Funds Total Nonspendables:

Items not in spendable form:

Advances to other funds $ 9, 371,05 $ - $ $ - $ - $ - $ 9, 371,05 Prepaids 394, 832 - - - - 394, 832
Total Nonspendable 9, 766, 137 - - 9, 766, 137
Restricted for:

Recycling projects
Capital Projects
Public safety
Traffic and transportation
Parks and recreation
Streets and roads contracts
Measure K
Community improvements
Total Restricted
10, 077, 353 11, 969,31
16, 825, 738
17, 622, 289
8, 624, 058
1, 386, 731 1, 386, 731
12, 340, 566 27, 643, 754 62, 031, 604
159, 81 334, 518 494,09
126, 759 25, 576,55
1, 092, 420 1, 734, 092 20, 448, 801
14, 355,11 14, 355,11
666, 837 666, 837
73, 122 73, 122
44, 525, 380 11, 969,31 8, 624, 058 13, 592, 877 46, 321, 124 125, 033, 370 Committed to:

Contingency/ emergency 7, 045, 537
Fiscal stabilization 1, 850, 000
Capital projects
Street reserves 9, 464, 340
Landscape reserves 3, 000,00
Public safety
Traffic and transportation
Parks and recreation
Retirement stability 4, 900, 000
Water & sewer rate stabilization 4, 747,25
Capital equipment 2, 937, 190
Measure C essential city services 6, 058,49
Economic development 444, 672
2, 664, 730
96,39
949,9
2, 101, 347
1, 742, 994
7, 045, 537
1, 850, 000
96,39
9, 464, 340
3, 949,99
2, 101, 347
2, 664, 730
1, 742, 994
4, 900, 000
4, 747,25
2, 937, 190
6, 058,49
444, 672
Total Committed 40,47, 513 2, 664, 730 4, 891, 279 - 48, 003, 522 Unassigned:

Fund deficits - ( 409, 608) ( 409, 608)
Residual fund balance 6, 145, 676 - - 6, 145, 676
Total Unassigned 6, 145, 676 ( 409, 608) 5, 736, 068
Total Fund Balances $ 56, 359,26 $ 44, 525, 380 $ 11, 969,31 $ 11, 288, 788 $ 18, 484, 156 $ 45, 911, 516 $ 188, 539, 097 MEIL
74 176
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

9. FUND BALANCE, Continued
C. Encumbrances
The City utilized an encumbrance system during fiscal year 2023 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, 2023, that will be carried over to the following fiscal year:

General Fund
Building Safety & Inspection Special Revenue Fund
Streets and Roads Capital Project Fund
General CIP Projects
Non -Major Funds

10. PENSION PLAN
6, 037, 482
259, 304
298, 009
578,7
1, 094, 585
A. General Information about the Pension Plan
Plan Description - All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan ( Plan) administered by the California Public Employees' Retirement System ( Ca1PERS). The Plan consists of individual rate plans benefit tiers) within a safety risk pool ( police and fire) and a miscellaneous risk pool ( all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors 4 rate plans ( 3 miscellaneous and 1 safety). Benefit provisions under the Plan are established by State statute and City resolution. Ca1PERS 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 Ca1PERS website.

Benefits Provided - Ca1PERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees, and beneficiaries.

Benefits are based on years of credited service, equal to one year of full- time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 75 177
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan' s
provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous
Classic Tier 2
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payment
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required UAL payment
Prior to
January 1, 2013
2% 55
5 years service
Monthly for life
55 2. 00%

6. 92%

11. 84%
621, 595
July 1, 2010 to
December 31, 2012
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payment
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required UAL payment
2%© 60
5 years service
Monthly for life
60 2. 00%

6. 93%

10.0%
14, 776
Safety - PEPRA
On or after
January 1, 2013
2% @57
5 years service
Monthly for life
57 2. 70%

14. 50%

14. 72%
0 PEPRA
After
December 31, 2012
2% @ 62
5 years service
Monthly for life
62 2. 00%

7.5%

7. 68%
9, 885
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 Ca1PERS. 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 measurement period ended June 30, 2022, the City' s total contributions to the Plan were $1, 200, 855.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability ( asset) of the Plan of $ 7, 966, 383.
76 178
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
The City' snet pension liability for the Plan is measured as the proportionate share of the, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City' s proportionate share of the net pension liability was based on the Agency' s plan liability and asset - related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

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

Proportion - June 30, 2021 0.5487%
Proportion - June 30, 2022 0.6897%
Change - Increase ( Decrease) 0.1410%
For the year ended June 30, 2023, the City recognized pension expense of $1, 601, 901. At June 30, 2023 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 2, 013, 295 $ Changes in assumptions 816, 323
Differences between actual and expected experience 159, 980 107,48 Changes in employer' sproportion 559, 250 -
Difference in proportionate share of contributions - 280, 788 Net difference projected and actual investment earnings 1, 459, 233 - Total 5, 008,81 $ 387, 936
77 179
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
2, 013, 295 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, 2024. 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 Ending Annual
June 30 Amortization
2024 $ 755, 503
2025 627, 014
2026 331, 87
2027 892, 516
Actuarial Assumptions - For the measurement period ended June 30, 2021, the total pension liability was determined using the following assumptions:

Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry -Age Normal Cost Method
Actuarial Assumptions:

Discount rate 6. 90%
Inflation 2. 30%
Projected salary increase Varies by Entry Age and Service Mortality rate table ( 1) Derived using Ca1PERS Membership Data for all Funds( 2) Post retirement benefit increase Contract COLA up to 2. 50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 2. 30% thereafter. 1) The mortality table used was developed based on Ca1PERS' 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 Ca1PERS demographic data from 1997 to 2015) that can be found on the Ca1PERS website.
78 180
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
Discount Rate - The discount rate used to measure the total pension liability as of the measurement date of June 30, 2022 for the Plan was 6. 90%, which differs from the discount rate used as of the measurement date of June 30, 2021, of 7. 15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan' s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. A detailed report testing these projections can be obtained from the Ca1PERS website.

In determining the long- term expected rate of return, Ca1PERS took into account long- term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound ( geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long- term projected portfolio return.

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

Current Target Real Return
Asset Class Allocation ( a, b)
Global Equity - cap -weighted 30. 00% 4.5%
Global Equity - non -cap -weighted 12. 00% 3. 84%
Private Equity 13. 00% 7. 28%
Treasury 5. 00% 0. 27%
Mortgage - backed Securities 5. 00% 0. 50%
Investment Grade Corporates 10. 00% 1. 56%
High Yield 5. 00% 2.7%
Emerging Market Debt 5. 00% 2. 48%
Private Debt 5. 00% 3. 57%
Real Assets 15. 00% 3. 21%
Leverage - 5. 00% - 0. 59%
Total 100%
a) - An expected inflation of 2. 30% used for this period. b) - Figures are based on the 2021-2 Asset Liability Management study. 79 181
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/ Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City' sproportionate 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 ( 5. 90%) or 1 - percentage point higher ( 7. 90%) than the current rate:
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Net Pension Liability

5. 90%
12, 944, 507

6. 90%
7, 966, 383
790. 00%
3, 870, 624
Pension Plan Fiduciary Net Position - Detailed information about the pension plan' s fiduciary net position is available in the separately issued Ca1PERS financial reports.

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

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 Ca1PERS 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 Ca1PERS, 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.
80 182
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
A. General Information about the City' s
Other Post - Employment Benefit ( OPEB) Plan, Continued 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 Ca1PERS 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.

Benefits Provided - The following is asummary of Plan benefits by employee group as of June 30, 2023:

Tier Hire Date Retirement Date Eligibility
Benefit Prior to Retiree' s (or Surviving
Spouse' s) Eligibility for Medicare
Benefit After Retiree' s (or Surviving
Spouse' s) Eligibility for Medicare
1 Before 7/ 1/ 2014
On or before
12/ 31/ 2014
Age 50 within 5
years of PERS
service
Benefit accourding to previous Unequal PEMHCA Resolution ( i.e., no change for this group). 100% of premium for the retiree and any eligible covered dependents, up to $ 1, 536 per month in 2018, increasing by $100 each calendar year until such time as it is equal to active employee per month in each City contribution.
2 Before 7/ 1/ 2014 After 12/ 31/ 2014
Age 50 within 5
years of PERS
service
PEMHCA Minimum Employer Contribution
MEC) PEMHCA Minimum Employer Contribution
Age 55 within 5 MEC)
years of PERS
service
100% of the premium for retiree plus one up
to the monthly cap for active employees*
2 After 7/1/ 2014 Any
Age 50 within 5
years of PERS
service
PEMHCA Minimum Employer Contribution
MEC)
PEMHCA Minimum Employer Contribution
Age 55 within 5 MEC)
years of PERS
service
100% of the premium for retiree and
dependants, up to the following percantages
of the monthly cap for active employees*
5 years of service: 25%
10 years of service: 50% 15
years of service: 100%
In 2023, the City contributed a maximum of $1, 915 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.% per year.

For the measurement period ended June 30, 2022, the City' scontributions to the Plan were $517, 163, which were comprised of contributions to the trust of $391, 544 and implicit subsidy payments of $125, 619. 81 183
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
A. General Information about the City' s
Other Post - Employment Benefit ( OPEB) Plan, Continued Employees Covered by Benefit Terms - Membership in the plan consisted of the following at the measurement date of June 30, 2022:

Active Employees 117
Inactive employees or beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 8 Total 151
B. Net OPEB Liability
Actuarial Methods and Assumptions - The City' s
net OPEB liability was measured as of June 30, 2022,
and 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, 2022
Actuarial Cost Method Entry -Age Normal Cost, level percent of pay Actuarial Assumptions:

Discount Rate 6. 10%
Inflation 2. 50%
Payroll Growth 3. 00%
Investment Rate of Return 6. 10%
Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2010 Healthcare Trend Rate 5.8% decreasing to 3.9% in 2076 and later Demographic actuarial assumptions used in this valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.
82 184
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
B. Net OPEB Liability, Continued
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 geometric real rates of return for each major asset class are summarized in the following table:

Asset Class Target Allocation
Global Equity 49. 00%
Fixed Income 23. 00%
Real Estate Investment Trusts 20. 00%
Treasury Inflation Protection Securities 5. 00%
Commodities 3. 00%
Total 100%
Change of Assumptions - For the measurement date of June 30, 2022, 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.
83 185
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

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/ 2021 $ 6, 015, 883 $ 5, 767, 952 $ 247, 931 Changes Recognized for the Measurement Period:

Service Cost 301, 667 301, 667
Interest on the total OPEB Liability 374, 65 374, 65
Expected investment income -
Contributions from the employer
Changes in benefit terms 356, 849 ( 356, 849)
Administrative expenses 517, 163 ( 517, 163)
Other Expenses ( one time) - ( 1, 453) 1, 453
Benefit payments ( 351, 661) ( 351, 661)
Changes of assumptions - -
Plan experience -
Investment experience - ( 1, 387, 482) 1, 387, 482
Net changes 324, 651 ( 866, 584) 1,91, 235
Balance at Measurement Date 6/ 30/ 222 $ 6, 340, 534 $ 4, 901, 368 $ 1, 439, 166 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' stotal OPEB liability would be if it were calculated using a discount rate that is 1 -percentage - point lower ( 5. 80%) or 1 - percentage - point higher ( 7. 80%) than the current discount rate:

Net OPEB Liability/ (Asset)
Discount Rate
1% ( 5. 10%)
Discount Rate Discount Rate

6. 10%) + 1% ( 7. 10%)
2, 082,54 $ 1, 439, 166 $ 888, 328
84 186
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates, Continued
The following presents the net OPEB liability of the City, as well as what the City' s net OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 -percentage - point lower or 1 - percentage -point higher than the current healthcare cost trend rates:

Net OPEB Liability/ (Asset)
Healthcare Cost Trend Rates
1% Decrease Current Rate 1% Increase
792, 37 $ 1, 439, 166 $ 2,10, 478
E. OPEB Expenses and Deferred Outflows/ Inflozvs of Resources Related to OPEB For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City' s 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 Ca1PERS. 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, 2023, the City recognized OPEB expense of $396, 102. At June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Employer contributions subsequent to measurement date $ 405, 006 $ Differences between actual and expected experience -
Changes in assumptions 121, 988
Net difference projected and actual earnings on plan investments 644, 480 Total
236, 849
34, 409
1,71, 474 $ 271,58
405, 006 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, 2024. 85 187
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

11. OTHER POST - EMPLOYMENT BENEFITS, Continued
E. OPEB Expenses and Deferred Outflows/ Inflows of Resources Related to OPEB, Continued 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 Ending
June 30
2024
2025
2026
2027
2028
Thereafter

12. RISK MANAGEMENT
Annual
Amortization
80, 735
71, 167
64, 549
265, 592
9, 918)
23, 085
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Central San Joaquin Valley Risk Management Authority ( CSJVRMA), a public entity risk poor currently operating as a common risk management and insurance program for 55 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby
reducing its expense.

The City' sdeductibles and maximum coverage follows:

Coverage Deductible
Workers Compensation $ 25, 000
General and automobile liability 25, 000
Property damage 5, 000 to 10, 000
High value auto program 2, 000
Boiler and machinery Various
Employment Practices Liability 25, 000
CSJVRMA Excess Liability ERMA
500, 00
1, 000,00
25, 000
10, 000 or 50, 000
1, 000,00
Statutory Limits
54, 000,00
1, 000,00
1, 000,00
2, 000,00 1, 000,00
The City contributes its pro rata share of anticipated losses to a pool administered by CSJVRMA. Should actual losses among participants be greater than the anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess. The City paid CSJVRMA premiums and ERMA premiums totaling $ 2,16, 127 during the fiscal year ended June 30, 2023. 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. 86 188
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

13. COMMITMENTS AND CONTINGENCIES
The City participates in several Federal and State grant programs. These programs are subject to audits by the City' sindependent 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. These matters do not have a determined effect on the financial statements at this time.

14. PRIOR PERIOD ADJUSTMENTS
The City adjusted the opening balances for the following funds and reasons:

General Fund - to delay the recognition of ARPA revenues in order to match the expenditures made in the fiscal year ended June 30, 2023.

Nonmajor governmental funds - to add a missing corresponding receivable to match the payable that was accrued in the prior year.

Custodial funds - to remove the remaining " Due to Others" which was outstanding from before the implementation of GASB Statement 84 - Fiduciary Activities.

Enterprise funds and custodial funds - to move a water sub -fund to custodial due to the nature of the sub -fund.

Prior Period Adjustments
Fund Balance, as Fund Balance, as
Previously Reported Grant ARPA Restated at
at June 30, 2022 Receivables Revenue June 30, 2022
Governmental Funds:

General Fund
Nonmajor governmental
funds
52, 874, 312 $
37, 850, 747
2, 928, 427) $ 49, 945, 885
518, 438 38,69, 185
Net Position, as Net Position, as
Previously Reported Grant ARPA Restated at
at June 30, 2022 Receivables Revenue June 30, 2022
Statement of Net Position:

Governmental activities $ 421, 251, 014 $ 518, 438 $ ( 2, 928, 427) $ 418, 841, 025 87 189
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2023

14. PRIOR PERIOD ADJUSTMENTS, Continued
Prior Period Adjustments
Net Position, as Prior Period Net Position, as
Previously Reported Adjustment for Water Sub -fund Restated at at June 30, 2022 Due to Others Recategorization June 30, 2022 Proprietary Funds:

Water Fund 88, 417, 047 $ - $ ( 2, 417,84) $ 85, 999, 563 Statement of Net Position:

Business -type activities $ 246, 497, 872 $ ( 2, 417,84) $ 244, 080, 388 Fiduciary Funds:

Custodial Funds 4, 298, 198 $ 4, 523, 962 $ 2, 417,84 $ 11, 239, 644 88 190

REQUIRED

SUPPLEMENTARY INFORMATION
191
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Cost Sharing Multiple Employer Plan
Schedule of Proportionate Share of the Net Pension Liability - Last 10 Fiscal Years 6/ 30/ 215 6/ 30/ 216 6/ 30/ 217 6/ 30/ 218
Proportion of the net pension liability 0.5770% 0.4556% 0.4980% 0.5243% Proportionate share of the net pension liability $ 3, 590, 219 $ 3, 127, 249 $ 4, 309, 662 $ 5, 199, 968 Covered payroll $ 4, 501, 607 $ 4, 364,10 $ 5, 148, 017 $ 5,68, 372 Proportionate share of the net pension
liability as percentage of covered payroll 79.5% 71. 66% 83. 71% 93. 38% Plan' s (PERF- C) fiduciary net position
as a
percentage of the total pension liability 79. 82% 78. 40% 74. 06% 73. 31% Notes to the schedule:

Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

The CaIPERS discount rate was increased from 7.5% to 7. 65% in fiscal year 2016, decreased from 7. 65% to 7. 15% in fiscal year 2018, and then decreased from 7. 15% to 6.9% in fiscal year 2023.

The Ca1PERS mortality assumptions were adjusted in fiscal year 2019. 90 192
6/ 30/ 219 6/ 30/ 220 6/ 30/ 221 6/ 30/ 222 6/ 30/ 223

0.5269% 0.5586% 0.5897% 0.5487% 0.6897%
5, 077, 307 $ 5, 723,99 $ 6, 416, 539 $ 2, 967, 660 $ 7, 966, 383 6, 004, 176 $ 6, 384, 728 $ 6, 808, 162 $ 7, 021, 189 $ 8, 113, 507

84. 56% 89. 65% 94. 25% 42. 27% 98. 19%

75. 26% 75. 26% 75. 10% 88. 29% 76. 68%
193
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Cost Sharing Multiple Employer Plan
Schedule Of Plan Contributions - Last 10 Fiscal Years
Miscellaneous Rate Plan 2015 2016 2017 2018
Actuarially determined contribution $ 523, 329 $ 369, 225 $ 434, 033 $ 465, 746 Contributions in relation to actuarially
deemed contributions ( 523, 329) ( 369, 225) ( 434, 033) ( 465, 746) Contribution deficiency ( excess) $ - $ - $ - $
Covered payroll $ 4, 364,10 $ 5, 148, 017 $ 5,68, 372 $ 6, 004, 176 Contributions as a percentage of
covered payroll 11. 99% 7. 17% 7.9% 7.6%
Note to Schedule:

Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

Methods and assumptions used to determine contribution rates:

Valuation date (for contractually
required contribution): 6/ 30/ 212 6/ 30/ 213 6/ 30/ 214 6/ 30/ 215 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: ( 1) ( 1) ( 1) ( 1)
Assets valuation method Market Value Market Value Market Value 15 Year Smoothed
Market Method
Inflation 2. 75% 2. 75% 2. 75% 2. 75%
Salary Increases ( 2) ( 2) ( 2) ( 2)
Investment rate of return 7. 50% 7. 50% 7. 50% 7. 50%
Retirement age ( 3) ( 3) ( 3) ( 3)
Mortality ( 4) ( 4) ( 4) ( 4)
1) Level percentage of payroll, closed
2) Depending on age, service, and type of employment
3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%© 62 4) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study adopted by the Ca1PERS Board.
92 194
2019 2020 2021 2022 2023
766, 989 $ 917, 56 $ 1, 062, 215 $ 1, 200,71 $ 2, 013, 295 766, 989) ( 917, 576) ( 1, 062, 215) ( 1, 200,71) ( 2, 013, 295) 6, 384, 728 $ 6, 808, 162 $ 7, 021, 189 $ 8, 113, 507 $ 12, 345, 922

12. 01% 13. 48% 15.3% 14. 79% 16. 31%
6/ 30/ 216 6/ 30/ 217 6/ 30/ 218 6/ 30/ 219 6/ 30/ 220
Entry Age Entry Age Entry Age Entry Age Entry Age
1) ( 1) ( 1) ( 1) ( 1)
Market Value Market Value Market Value Market Value Market Value

2. 75% 2. 63% 2. 50% 2. 50% 2. 50%
2) ( 2) ( 2) ( 2) ( 2)

7. 375% 7. 25% 7. 00% 7. 00% 7. 00%
3) ( 3) ( 3) ( 3) ( 3)
4) ( 4) ( 4) ( 4) ( 4)
195
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Fiscal Years* Fiscal year End
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Net change in the total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending ( a)
Plan Fiduciary Net Position
Contribution - employer
Net investment income
Benefit payments
Other expense
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending ( b)
Net OPEB Liability - ending ( a) - (b)
Plan fiduciary net position as a percentage of the total OPEB liability Covered - employee payroll
Net OPEB liability as a
percentage of covered -employee payroll
Assumptions used to develop the results are shown below:

Measurement Date
Discount Rate
Valuation Data
Actuarial Cost method
Amortization method:

Assets valuation method
Inflation
Healthcare cost trend rates
Salary Increases
Discount Rate
Retirement age
Mortality
Mortality Improvement
6/ 30/ 218 6/ 30/ 219 6/ 30/ 220 6/ 30/ 221
228, 075 $ 231, 377 $ 238, 897 $ 247, 448
366, 237 359, 416 378, 925 372, 499
430, 189) ( 134, 660) -
42, 010 ( 62, 441)
299, 940) ( 314, 423) ( 324, 785) ( 404, 32)
93, 787) 276, 370 95,36 215, 605
5, 154,31 5, 060, 344 5, 336, 714 5, 432, 650
5, 060, 344 $ 5, 336, 714 $ 5, 432, 650 $ 5, 648, 255
471, 077 $
307, 58
299, 940)
1, 576)
495, 719
276, 193
314, 423)
4, 582)
1, 813)
477, 139 451, 094
2, 984, 872 3, 462, 011
459, 510 $ 486, 383
230, 777 151,73
324, 785) ( 404, 32)
825) ( 2, 094)
364, 677 231, 120
3, 913, 105 4, 277, 782
3, 462, 011 $ 3, 913, 105 $ 4, 277, 782 $ 4, 508, 902
1, 598, 333 $ 1, 423, 609 $ 1,54, 868 $ 1,39, 353

68. 41%
5, 982, 337 $

26. 72%

73. 32%
6, 377,87 $

22. 32%
6/ 30/ 217 6/ 30/ 218

7. 00% 7. 00%

78.4% 79. 83%
6, 358, 722 $ 6, 549, 484

18.6% 17. 40%
6/ 30/ 219 6/ 30/ 220

6. 80% 6. 80%
6/ 30/ 217 6/ 30/ 219
Entry Age Normal Entry Age Normal
Closed 30 years Closed 30 years
Market Value Market Value

2. 75% 2. 50%

7.5% in Jan 2019, step down
5% per year to 5.0% by 2024

5.4% in Jan 2021, Fluctuates
down to 4.0% by 2076

3. 25% 3%

7. 00% 6. 80%
From 50 to 75 From 50 to 75
2014 Ca1PERS Experience 2017 Ca1PERS Experience
MacLeod Watts Scale 2017 MacLeod Watts Scale 2018
Historical information is required only for measurement periods for which GASB 68 is applicable. Future years' information will be displayed up to 10 years as information becomes available. 94 196
6/ 30/ 222 6/ 30/ 223
254, 871 $ 301, 667
388, 811 374, 65
94, 590
370, 644) ( 351, 661)
367, 628 324, 651
5, 648, 255 6, 015, 883
6, 015, 883 $ 6, 340, 534
435, 828 $ 517, 163
308, 766 ( 1, 030, 633)
370, 644) ( 351, 661)
886, 742
1, 642) ( 1, 453)
1, 259, 050 ( 866, 584)
4, 508, 902 5, 767, 952
5, 767, 952 $ 4, 901, 368
247, 931 $ 1, 439, 166

95. 88% 77. 30%
7, 838, 544 $ 9,31, 244

3. 16% 14. 49%
6/ 30/ 221 6/ 30/ 222

6. 10% 6. 10%
6/ 30/ 221
Entry Age Normal
Closed 30 years
Market Value

2. 50%

5.8% in Jan 2023, decreasind
to 3.9% by 2076
3%

6. 10%
From 50 to 75
Ca1PERS 2021 Experience Study
MacLeod Watts Scale 2022
95 197
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2023
Schedule of OPEB Contributions - Last 10 Fiscal Years*
Fiscal Year Ended 2018 2019 2020 2021 2022
Actuarially determined contribution
Contributions in relation to actuarially determined
contributions
Contribution deficiency ( excess)
Covered employee payroll
Contributions as a
percentage of covered employee
payroll
389, 509 $ 359, 460 $ 369, 969 $ 361, 138 $ 368, 85
495, 719) $ ( 459, 510) $ ( 396, 085) $ ( 435, 828) $ ( 517, 163) 106, 210) $ ( 100, 050) $ ( 26, 116) $ ( 74, 690) $ ( 148, 278) 6, 377,87 $ 6, 358, 722 $ 6, 549, 484 $ 7, 838, 544 $ 9,31, 244

6. 11% 5. 65% 5. 65% 4. 61% 3. 71%
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 - assumptions used to develop Actuarially determined contribution Valuation Data
Actuarial Cost method
Amortization method:

Amortization Period:

Assets valuation method
Inflation
Healthcare cost trend rates
Salary Increases
Investment rate of return
Retirement age
Mortality
Mortality Improvement
7/ 1/ 2015
Entry Age
Normal Level %
of pay
Closed 30 Years
23 Yrs remain
Market Value

2. 75%

7.5% in Jan 2017,
step down to
5% per year to

4.5% by 2023

3. 25%

7. 00%
From 50 to 75
2014 CaIPERS
Experience
Study
MacLeod Watts
Scale 2014
6/ 30/ 217
Entry Age Normal Level % of pay
Closed 30 Years
22 Yrs remain 21 Yrs remain
Market Value

2. 75 %

7.5% in Jan 2019, step down to . 5%
per year to 5.0% by 2024

3. 25%

7. 00%
From 50 to 75
2014 Ca1PERS Experience Study
MacLeod Watts Scale 2017
6/ 30/ 219
Entry Age Normal Level % of pay
Closed 30 Years
20 Yrs remain 19 Yrs remain
Market Value

2. 50%

5.4% in Jan 2021, flucates down to

4.0% by 2076

3. 00%

6. 70%
From 50 to 75
2017 Ca1PERS Experience Study
MacLeod Watts Scale 2018
96 198
2023
405, 006
405, 006)
15, 989, 632

2. 53%
6/ 30/ 221
Entry Age
Normal Level %
of pay
Closed 30 Years
18 Yrs remain
Market Value

2. 50%

5.8% in 2023
decreasing to

3.9% by 2076

3. 00%

6. 10%
From 50 to 75
2021 Ca1PERS
Experience
Study
MacLeod Watts
Scale 2022
97 199
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 17, 650, 000 $ 23,51,57 $ 31, 612, 884 $ 8, 361, 627 Licenses and permits 243, 820 243, 820 347, 022 103, 202 Intergovernmental 2, 050,00 2, 050,00 9, 365, 468 7, 315, 468 Charges for services 859, 358 889, 066 763, 39 ( 125, 727) Use of money and property 257, 919 257, 919 2,84, 635 2, 026, 716 Fines and forfeitures 120, 00 120, 00 7, 893 ( 112,07)
Miscellaneous 275, 875 367, 101 273, 860 ( 93, 241)
Total revenues
EXPENDITURES:
21, 456, 972 27, 179,63 44, 655, 101 17, 475, 938
Current:

General government
City council 66, 180 89, 282 78, 142 11,40
City manager 962, 536 1,74, 234 995, 070 179,64
City clerk 372, 552 407, 147 407, 065 82
City attorney 796, 432 813, 42 784, 16 29,86
Personnel 492, 518 626, 085 561, 986 64, 099
Central services 1, 025, 550 1, 316,56 1,06, 253 210, 13 Finance 1, 818,79 2,33, 650 1, 725, 034 508, 616
Information technology 2, 080, 168 3, 227, 955 3, 086, 175 141, 780 Measure C 2, 550, 060 1, 205, 414 628, 70 576, 634
Total general government 10,64, 875 11, 093, 555 9, 372, 651 1, 720, 904 Public safety
Administration 6, 875, 421 11, 207, 633 9, 518, 177 1, 689, 456 Community services 771, 658 1, 666, 458 1, 083, 876 582,82 Total public safety 7, 647, 079 12, 874, 091 10, 602, 053 2,72, 038 Community development
Planning 1, 059, 763 2, 143, 604 1, 282, 316 861, 288
Total community development 1, 059, 763 2, 143, 604 1, 282, 316 861, 288 Culture and leisure
Administration 241, 370 451, 995 403, 164 48, 831
Senior center 175, 79 177, 419 161, 764 15, 655
Recreation programs 82, 628 218, 411 136, 737 81, 674
Special events 135, 384 277, 049 164, 598 112, 451
Youth development 643, 179 656, 444 432, 070 224, 374
Sports 236,35 267, 735 166, 781 100, 954
Facilitates and library 98, 523 169, 323 65, 742 103, 581 City hall - 425, 962 343, 104 82,58
Building maintenance 315, 109 261, 646 53, 463
Park and landscape maintenance - 769, 471 439, 147 330,24 Total culture and leisure 1, 613, 078 3, 728, 918 2, 574, 753 1,54,65 98 200
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund, continued
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
Public works
Administration 805, 901 1,03, 239 709,2
Utility engineering 272, 959 290, 961 228, 834
393, 447
62, 127
Total public works 1, 078, 860 1, 394, 200 938, 626
Capital outlay 342, 484 2, 432, 718 2, 758, 535
Debt service:

Principal retirement 315, 000 315, 000 315, 000
Lease principal retirement - 367, 507 367, 507
Interest and fiscal charges 66, 000 66, 000 65, 981
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
455, 574
325, 817)
19 22,87, 139 34, 415, 593 28,77, 422 12, 602, 121
830, 167) ( 7, 236, 430) 16, 377, 679 23, 614, 109
OTHER FINANCING SOURCES ( USES):

Transfers in 6, 312, 070 10, 229, 905 7, 329, 195 ( 2, 900, 710) Transfers out ( 4, 167, 020) ( 21, 369, 566) ( 18, 755,31) 2, 613, 835 Lease proceeds - 1, 462, 298 1, 462, 298
Total other financing sources (uses) 2, 145, 050 ( 11,39, 661) ( 9,64, 238) ( 286, 875) Net change in fund balances 1, 314, 883 $ ( 18, 376, 091) 6, 413,41 $ 24, 789, 532 FUND BALANCES:

Beginning of year 52, 874, 312
Restatement ( 2, 928, 427)
Beginning of year, as restated 49, 945, 885
End of year $ 56, 359,26
99 201
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Facility Fees
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 17, 239,36 $ 17, 239,36 $ 11, 020,78 $ ( 6, 219, 158) Use of money and property - 704, 94 704, 94
Total revenues 17, 385, 124 17, 385, 124 11, 725, 022 ( 5, 660, 102) EXPENDITURES:

Current:

Public works 243, 763 10, 452, 984 10, 452, 983 1
Total expenditures 243, 763 10, 452, 984 10, 452, 983 1

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
17,41, 361 6, 932, 140 1, 272, 039 ( 5, 660, 101)
Transfers in - 493, 042 493, 042
Transfers out ( 833, 407) ( 12, 300, 895) ( 12, 254, 580) 46, 315 Total other financing sources ( uses) ( 833, 407) ( 11, 807,53) ( 11, 761, 538) 46, 315 Net change in fund balances $ 16, 307, 954 $ ( 4, 875, 713) ( 10, 489,99) $ ( 5, 613, 786) FUND BALANCES:

Beginning of year 55, 014, 879
End of year $ 44, 525, 380
100
202
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Safety & Inspection
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Licenses and permits $ 2,31,93 $ 2,31,93 $ 1, 820, 591 $ ( 410, 702) Charges for services 1, 435,21 1, 435,21 3, 522, 093 2, 086, 672 Use of money and property - 179, 43 179, 43
Miscellaneous - 4, 663 4, 663
Total revenues
EXPENDITURES:
3, 666, 714 3, 666, 714 5,26, 840 1, 860, 126
Current:

Public works 2,89, 570 2, 864, 076 2, 049, 768 814, 308 Total expenditures 2,89, 570 2, 864, 076 2, 049, 768 814, 308

REVENUES OVER ( UNDER)
EXPENDITURES 1, 377, 144 802, 638 3, 477, 072 2, 674, 434 OTHER FINANCING SOURCES ( USES):

Transfers out ( 404, 270) ( 498, 620) ( 498, 620)
Total other financing sources ( uses) ( 404, 270) ( 498, 620) ( 498, 620) Net change in fund balances $ 972, 874 $ 304, 018 2, 978, 452 $ 2, 674, 434 FUND BALANCES:

Beginning of year 8, 991, 479
End of year $ 11, 969,31
101
203
City of Lathrop
Notes to Required Supplementary Information
For the Year Ended June 30, 2023

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 yearend 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 the department.

During the fiscal year, the City made a number of supplemental budget amendments totaling X amount of dollars in revenues and Y amount of dollars in expenditures.

ADOPTED BUDGETS
For the fiscal year ending June 30, 2023, the Historic Lathrop Loan Program ( HLLP), 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.
102
204

SUPPLEMENTARY INFORMATION
205
City of Lathrop
General Fund
Year Ended June 30, 2023
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.
104
206
City of Lathrop
Combining Balance Sheet
General Funds
June 30, 2023
General Economic
Purpose Fund Development Measure C
Total
General
Funds
ASSETS
Cash and investments $ 40,77, 907 $ 443, 722 $ 4, 362, 234 $ 45, 283, 863 Receivables:

Accounts ( net of allowance for uncollectibles) 2, 628, 442 950 1, 711, 091 4, 340, 483 Accrued interest 84, 609 13, 200 97, 809
Prepaids 394, 832 - 394, 832
Advances to other funds 9, 371,05 - 9, 371,05
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
52, 971, 699 $ 444, 672 $ 6, 086, 525 $ 59,02, 896
Liabilities:

Accounts payable $ 905, 896 $
Accrued liabilities 370, 077
Unearned revenue 740, 865
Deposits payable 1, 098, 256
28, 476 $ 934, 372
370, 077
740, 865
1, 098, 256
Total liabilities 3, 115, 094 28, 476 3, 143, 570
Fund Balances:

Nonspendable 9, 766, 137
Committed 33, 944, 792
Unassigned 6, 145, 676
444, 672
9, 766, 137
6, 058,49 40,47, 513
6, 145, 676
Total fund balances 49, 856, 605 444, 672 6, 058,49 56, 359,26 Total liabilities, deferred inflows of
resources and fund balances $ 52, 971, 699 $ 444, 672 $ 6, 086, 525 $ 59,02, 896 See accompanying Notes to Basic Financial Statements. 105 207
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Funds
For the year ended June 30, 2023
General Economic
Purpose Fund Development Measure C
Intrafund
Transactions
Elimination
REVENUES:

Taxes and assessments $ 21, 588, 748 $
Licenses and permits 347, 022
Intergovernmental 9, 365, 468
Charges for services 763, 39
Use of money and property 2, 190, 225
Fines and forfeitures 7, 893
Miscellaneous 273, 860
5, 776
10, 024, 136 $
88, 634
Total revenues 34, 536,55 5, 776 10,12, 770
EXPENDITURES:

Current:

General government 8, 743, 872
Public safety 10, 602, 053
Community development 1, 282, 316
Culture and leisure 2, 574, 753
Public works 938, 626
Capital outlay 2, 735, 307
Debt service:

Principal retirement 315, 000
Lease principal retirement 367, 507
Interest and fiscal charges 65, 981
Total expenditures
628, 779
23,28
27, 625, 415 652, 007

REVENUES OVER ( UNDER)
EXPENDITURES 6, 911, 140 5, 776 9, 460, 763
OTHER FINANCING SOURCES ( USES):

Transfers in 9, 614, 045 - ( 2,84, 850)
Transfers out ( 12,80, 720) - ( 8,59,61) 2,84, 850
Lease and software subscription proceeds 1, 462, 298 - - Total other financing sources ( uses) ( 1,04, 377) ( 8,59,61) Net change in fund balances 5, 806, 763 5, 776 600, 92
FUND BALANCES:

Beginning of year 46, 978, 269 438, 896 5, 457, 147
Restatement ( 2, 928, 427)
Beginning of year, as restated 44, 049, 842 438, 896 5, 457, 147 End of year $ 49, 856, 605 $ 444, 672 $ 6, 058,49 $
See accompanying Notes to Basic Financial Statements. 106 208
Total
General
Funds
31, 612, 884
347, 022
9, 365, 468
763, 39
2,84, 635
7, 893
273, 860
44, 655, 101
9, 372, 651
10, 602, 053
1, 282, 316
2, 574, 753
938, 626
2, 758, 535
315, 000
367, 507
65, 981
28,77, 422
16, 377, 679
7, 329, 195
18, 755,31)
1, 462, 298
9,64, 238)
6, 413,41
52, 874, 312
2, 928, 427)
49, 945, 885
56, 359,26
See accompanying Notes to Basic Financial Statements. 107 209
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 11, 650, 000 $ 13, 227, 120 $ 21, 588, 748 $ 8, 361, 628 Licenses and permits 243, 820 243, 820 347, 022 103, 202 Intergovernmental 2, 050,00 2, 050,00 9, 365, 468 7, 315, 468 Charges for services 859, 358 889, 066 763, 39 ( 125, 727) Use of money and property 257, 919 257, 919 2, 190, 225 1, 932, 306 Fines and forfeitures 120, 00 120, 00 7, 893 ( 112, 107) Miscellaneous 275, 875 367, 101 273, 860 ( 93, 241)
Total revenues 15, 456, 972 17,55, 026 34, 536,55 17, 381, 529 EXPENDITURES:

Current:

General government
City council 66, 180 89, 282 78, 143 11,39
City manager 962, 536 1,74, 234 995, 070 179,64
City clerk 372, 552 407, 147 407, 065 82
City attorney 796, 432 813, 42 784, 16 29,86
Personnel 492, 518 626, 085 561, 986 64, 099
Central services 1, 025, 550 1, 316,56 1,06, 253 210, 13 Finance 1, 818,79 2,33, 650 1, 725, 034 508, 616
Information technology 2, 080, 168 3, 227, 955 3, 086, 175 141, 780 Total general government 7, 614, 815 9, 888, 141 8, 743, 872 1,44, 269 Public safety
Finance 6, 875, 421 11, 207, 633 9, 518, 177 1, 689, 456 Community services 771, 658 1, 666, 458 1, 083, 876 582,82 Total public safety 7, 647, 079 12, 874, 091 10, 602, 053 2,72, 038 Community development
Planning
Total community development
1, 059, 763 2, 143, 604 1, 282, 316 861, 288
1, 059, 763 2, 143, 604 1, 282, 316 861, 288
Culture and leisure
Administration 241, 370 451, 995 403, 164 48, 831
Senior center 175, 79 177, 419 161, 764 15, 655
Recreation programs 82, 628 218, 411 136, 737 81, 674
Special events 135, 384 277, 049 164, 598 112, 451
Youth development 643, 179 656, 444 432, 070 224, 374
Sports 236,35 267, 735 166, 781 100, 954
Facilitates and library 98, 523 169, 323 65, 742 103, 581 City hall 425, 962 343, 104 82,58
Building maintenance 315, 109 261, 646 53, 463
Park and landscape maintenance 769, 471 439, 147 330,24 Total culture and leisure 1, 613, 078 3, 728, 918 2, 574, 753 1,54,65 108
210
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
Public works
Administration
Utility engineering
Total public works
Capital outlay
Debt service:

Principal retirement
Lease principal retirement
Interest and fiscal charges
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
Lease proceeds
Total other financing sources ( uses)
Special item
Net change in fund balances $ 837, 423 $ ( 17, 964,54) 5, 806, 763 $ 23, 771,17 805, 901 1,03, 239 709,2
272, 959 290, 961 228, 834
393, 447
62, 127
1, 078, 860 1, 394, 200 938, 626 455, 574
342, 484 2,26, 718 2, 735, 307
315, 000 315, 000 315, 000
367, 507 367, 507
66, 000 66, 000 65, 981
508,9)
19 19, 737, 079 33, 004, 179 27, 625, 415 11, 266, 079
4, 280, 107) ( 15, 849, 153) 6, 911, 140 22, 760, 293
6, 312, 070 10, 229, 905 9, 614, 045 ( 615, 860)
1,94, 540) ( 12, 345, 706) ( 12,80, 720) 164, 986
1, 462, 298 1, 462, 298
5, 117, 530 ( 2, 115, 801) 1,04, 377) ( 450, 874)
FUND BALANCES:

Beginning of year
46, 978, 269
Restatement ( 2, 928, 427)
Beginning of year, as restated 44, 049, 842
End of year $ 49, 856, 605
109
211
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Economic Development
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues

REVENUES OVER ( UNDER)

EXPENDITURES
5, 776 $ 5, 776
5, 776 5, 776
5, 776 5, 776
Net change in fund balances $
FUND BALANCES:

Beginning of year
End of year
5, 776 $ 5, 776
438, 896
444, 672
110
212
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure C
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 6, 000,00 $ 10, 024, 137 $ 10, 024, 136 $ ( 1) Use of money and property - 88, 634 88, 634
Total revenues 6, 000,00 10, 024, 137 10,12, 770 88, 633 EXPENDITURES:

Current:

General government
Measure C 2, 550, 060 1, 205, 414 628, 779 576, 635
Total general government 2, 550, 060 1, 205, 414 628, 779 576, 635 Capital outlay - 206, 000 23,28 182, 772
Total expenditures 2, 550, 060 1, 411,14 652, 007 1, 336, 042

REVENUES OVER ( UNDER)
EXPENDITURES 3, 449, 940 8, 612, 723 9, 460, 763 848, 040 OTHER FINANCING SOURCES ( USES):

Transfers out ( 2, 972, 480) ( 9, 023, 860) ( 8,59,61) 163, 999 Total other financing sources ( uses) ( 2, 972, 480) ( 9, 023, 860) ( 8,59,61) 163, 999 Net change in fund balances $ 477,60 $ ( 411, 137) 600, 92 $ 1, 012,39 FUND BALANCES:

Beginning of year
End of year
5, 457, 147
6, 058,49
111
213
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 118, 890 $ 118, 890 Total revenues - - 118, 890 118, 890
EXPENDITURES:

Current:

Capital outlay 1,84, 000 22, 315,72 8, 624, 837 13, 690, 535 Total expenditures 1,84, 000 22, 315,72 8, 624, 837 13, 690, 535

REVENUES OVER ( UNDER)
EXPENDITURES ( 1,84, 000) ( 22, 315,72) ( 8, 505, 947) 13, 809, 425 OTHER FINANCING SOURCES ( USES):

Transfers in 1,84, 000 14, 374, 883 8, 761, 455 ( 5, 613, 428) Total other financing sources ( uses) 1,84, 000 14, 374, 883 8, 761, 455 ( 5, 613, 428) Net change in fund balances $ - $ ( 7, 940, 489) 255, 508 $ 8, 195, 997 FUND BALANCES:

Beginning of year 11, 033, 280
End of year $ 11, 288, 788
112
214
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General CIP Projects
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ $ - $ 118, 499 $ 118, 499
Total revenues - - 118, 499 118, 499
EXPENDITURES:

Current:

Public works
Capital outlay
Total expenditures
28, 042 ( 28, 042)
1, 392, 407 28,79, 184 11, 081, 476 17,97, 708
1, 392, 407 28,79, 184 11,09, 518 17,69, 666

REVENUES OVER ( UNDER)
EXPENDITURES ( 1, 392, 407) ( 28,79, 184) ( 10, 991, 019) 17, 288, 165 OTHER FINANCING SOURCES ( USES):

Transfers in 1, 392, 407 21, 100, 247 20, 469, 099 ( 631, 148) Total other financing sources ( uses) 1, 392, 407 21, 100, 247 20, 469, 099 ( 631, 148) Net change in fund balances $ - $ ( 7, 178, 937) 9, 478, 080 $ 16, 657, 017 FUND BALANCES:

Beginning of year 9, 006,76
End of year $ 18, 484, 156
113
215
City of Lathrop
Non -Major Governmental Funds
Year Ended June 30, 2023

SPECIAL REVENUE FUNDS
These funds account for the proceeds derived from specific revenue sources that are legally restricted to expenditures for specified purposes.

DEVELOPER PROJECTS SPECIAL REVENUE FUND
This fund accounts for revenues received and expenditures spent associated with various developer projects

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.

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.
216

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.

STORM DRAIN FUND
To account for revenues and expenditures related to the maintenance and operations of storm drains and improvements within the created district.

STREET LIGHT FUND
To account for revenues and expenditures associated with the maintenance and operations of the street lighting within the area known as City Zone 2, which is in the City Wide Landscaping and Lighting Assessment District.

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 AB939.

COMMUNITY DEVELOPMENT BLOCK GRANT ( CDBG) FUND
To account for the annual federal grant that provides for development of viable urban communities.

SCHOLARSHIP FUND
To account for the revenues provided by businesses/ organizations to provide assistance with tuition of qualified parks and recreation participants.

COPS FUND
To account for local law enforcement grants funded by the office of Community Oriented Policing Services (COPS).

RTIF SAN JOAQUIN COUNTY FUND
To account for San Joaquin County' s10% 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 Government' s15% 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

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. 217

NORTH LATHROP TRANSPORTATION CFF FUND
To account for capital facility fees collected for North Lathrop area.

CITYWIDE ECONOMIC DEVELOPMENT 20% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewart 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.

SOUTH LATHROP CFD 2019- 1 FUND
To account for revenue and expenditures related to the maintenance of South Lathrop.

CENTRAL LATHROP CFD 2019- FUND
To account for revenue and expenditures related to the maintenance of Central Lathrop.

STEWART ECONOMIC DEVELOPMENT 80% CFF FUND
To account for capital facility fees, collected to support development both on and off the Stewart Tract, that will provide to the City and its citizens.

TOT TRUST FUND
To account for 1% of the 9% TOT from the City as a whole, to help finance regional infrastructure.

GATEWAY BUSINESS PARK
To account for the maintenance costs for the Lathrop Gateway Business Park and resulting Community Facilities District

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.

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. 218
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117
219
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Developer Landscape
Developer Projects Engineering Developer Deposits Maintenance ASSETS
Cash and investments $ 2, 878, 372 $ 12, 550, 995 $ 851, 437 $ 1, 617, 884 Receivables:

Accounts ( net of allowance for uncollectibles) 29,07 1, 077, 266 133 Notes and loans - - -
Accrued interest 8, 982 27,19 2, 748 3,20
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
Fund Balances:

Restricted
Unassigned
2, 916, 561 $ 12, 578, 214 $ 1, 931, 451 $ 1, 621, 337
281 $ 37, 667 $ 403, 919 $
1, 781, 974 -
2, 453, 634 1, 800 1, 932, 353
111, 533
2, 453, 915 1, 821, 441 2, 336, 272 111, 533
462, 646 10, 756,73 - 1, 509, 804
404, 821)
Total fund balances 462, 646 10, 756,73 ( 404, 821) 1, 509, 804 Total liabilities, deferred inflows of
resources and fund balances $ 2, 916, 561 $ 12, 578, 214 $ 1, 931, 451 $ 1, 621, 337 118
220
Special Revenue Funds
Gas Tax Traffic Safety Local Street Public Nuisance Measure K Transit LTF 1,95, 351 $ 124, 367 $ 920, 283 $ 10, 419 $ 406, 645 $ 203, 662 132,17 2, 127 16, 833 2, 019 259,57 470, 519
2, 194 265 2, 718 22 935 436
1, 329, 662 $ 126, 759 $ 939, 834 $ 12, 460 $ 666, 837 $ 674,17 113,03 $
113,03 - -
1, 329, 662 126, 759 826, 731 12, 460 666, 837 674,17
1, 329, 662 126, 759 826, 731 12, 460 666, 837 674,17
1, 329, 662 $ 126, 759 $ 939, 834 $ 12, 460 $ 666, 837 $ 674,17 119
221
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Streets and Roads Federal Grant
Historic Lathrop
Loan Program
HLLP) Storm Drain
ASSETS
Cash and investments $ 243,90 $ 53 $ 234, 739 $ 367, 430 Receivables:

Accounts ( net of allowance for uncollectibles) 523,58 - - - Notes and loans - 20, 350
Accrued interest 680 503 741
Total assets $ 767, 528 $ 53 $ 255, 592 $ 368, 171

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
30, 860
Total liabilities - - 30, 860
Fund Balances:

Restricted 767, 528 53 255, 592 337,11
Unassigned
Total fund balances 767, 528 53 255, 592 337,11
Total liabilities, deferred inflows of
resources and fund balances $ 767, 528 $ 53 $ 255, 592 $ 368, 171 120
222
Special Revenue Funds
Community
Development Block
Street Light AB939 Recycling Grant Scholarship Fund COPS RTIF San Joaquin
County
1, 450, 678 $ 1, 369, 936 $ 2,04 $ 22, 361 $
34,90 70, 913 1, 770
3, 065 2, 857 5 52
333, 91 $ 150, 920
587 176
1, 453, 743 $ 1, 407, 183 $ 73, 122 $ 24, 183 $ 334, 518 $ 151, 096 45, 988 $ 20, 452 $ 151, 830
45, 988 20, 452 151, 830
1, 407, 755 1, 386, 731 73, 122 24, 183 334, 518
734)
1, 407, 755 1, 386, 731 73, 122 24, 183 334, 518 ( 734) 1, 453, 743 $ 1, 407, 183 $ 73, 122 $ 24, 183 $ 334, 518 $ 151, 096 121
223
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
RTIF Lathrop Local RTIF Lathrop Local
West RTIF SJCOG East LMFD Measure C
ASSETS
Cash and investments $ 13,70, 852 $ 226, 381 $ 2, 676, 028 $ 1, 020,70 Receivables:

Accounts ( net of allowance for uncollectibles) - -
Notes and loans - - -
Accrued interest 27, 139 264 5, 713 200
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
13,97, 991 $ 226, 645 $ 2, 681, 741 $ 1, 020, 270
Liabilities:

Accounts payable $ 913, 616 $ 227, 746 $ - $ 156
Unearned revenue - - -
Deposits payable - - - -
Due to other funds - - -
Total liabilities 913, 616 227, 746 - 156
Fund Balances:

Restricted 12, 284, 375 2, 681, 741 1, 020, 114
Unassigned - ( 1, 101) -
Total fund balances 12, 284, 375 ( 1, 101) 2, 681, 741 1, 020, 114 Total liabilities, deferred inflows of
resources and fund balances $ 13,97, 991 $ 226, 645 $ 2, 681, 741 $ 1, 020, 270 122
224
Special Revenue Funds
State Grants
North Lathrop Citywide Economic River Islands CFD Lathrop Land ULOP RD -17 Levee Transportation Dev Fee 20% 2013- 1
Acquisitions Impact
11, 562 $ 3, 290,03 $ 117,20 $ 14, 098 $ 528, 869
82,39 - - -
25 6, 904 2,04 - 709
82,39 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 14, 098 $ 529,78 14) $ 532,30
12, 855
14, 604 - -
14, 604 - - 12, 841 532,30
68, 235 11, 587 3, 297, 107 119, 324 1, 257
2, 952)
68, 235 11, 587 3, 297, 107 119, 324 1, 257 ( 2, 952)
82,39 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 14, 098 $ 529,78 123
225
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
CLSP Off -Site
DWR Grant - ULOP Roadway South Lathrop CFD Central Lathrop Project Improvement 2019- 1 CFD 2019-
ASSETS
Cash and investments
Receivables:

Accounts ( net of allowance for uncollectibles)
Notes and loans
Accrued interest
3 $ 165, 295 $
330
1, 304, 518 $ 304, 135
2, 895 637
Total assets $ 3 $ 165, 625 $ 1, 307, 413 $ 304, 772

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Unearned revenue
Deposits payable
Due to other funds
Total liabilities
1, 770 $ 5, 110 $ 14, 600
1, 770 5, 110 14, 600
Fund Balances:

Restricted 3 163, 855 1, 302,03 290, 172
Unassigned -
Total fund balances 3 163, 855 1, 302,03 290, 172
Total liabilities, deferred inflows of
resources and fund balances $ 3 $ 165, 625 $ 1, 307, 413 $ 304, 772 124
226
Special Revenue Funds Capital Project Funds
Stewart Economic Gateway Business
Dev Fee 80% TOT Trust Park Storm Drain Park in Lieu
Total Nonmajor
Govemmental
Funds
200, 017 $ 1, 292, 501 $ 187, 225 $ 900,58 $ 1, 759, 124 $ 52, 103, 916 376 2, 768 367 1, 929
2, 702, 948
20, 350
3,88 113, 353
200, 393 $ 1, 295,69 $ 187, 592 $ 902, 887 $ 1, 762, 512 $ 54, 940, 567 264 $ - $ 28, 420 $ 2, 639, 831
1, 781, 974
192, 000 - - - 4, 592, 642
14, 604
192, 000 - 264 28, 420 9, 029,51
8, 393 1, 295,69 187, 328 902, 887 1, 734, 092 46, 321, 124 409, 608)
8, 393 1, 295,69 187, 328 902, 887 1, 734, 092 45, 911, 516 200, 393 $ 1, 295,69 $ 187, 592 $ 902, 887 $ 1, 762, 512 $ 54, 940, 567 125
227
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
Developer Landscape
Developer Projects Engineering Developer Deposits Maintenance REVENUES:

Taxes and assessments $ - $ - $ - $ 3, 116, 583
Licenses and permits - -
Intergovernmental - -
Charges for services 4, 369, 077 -
Use of money and property 36, 103 156, 774 19, 324 26, 307 Fines and forfeitures - -
Developer participation 1, 628, 711 - 388, 51
Miscellaneous 24, 724 - 4, 994
Total revenues 1, 664, 814 4, 550,75 407, 905 3, 147, 884 EXPENDITURES:

Current:

Public safety - -
Community development 54 -
Culture and leisure - -
Public works 1, 697, 452 91,28
Capital outlay 173, 422 28, 671
Debt service:

Interest and fiscal charges - 159, 854
1, 344, 030
11 Total expenditures 1, 870, 928 280, 453 1, 344, 041

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
1, 664, 814 2, 679,47 127, 452 1, 803,43
Transfers in - - - 75, 060
Transfers out ( 1, 642, 779) - - ( 1, 462, 145)
Total other financing sources ( uses) ( 1, 642, 779) - ( 1, 387, 085) Net change in fund balances 22, 035 2, 679,47 127, 452 416, 758 FUND BALANCES:

Beginning of year 440, 611 8, 077, 126 ( 532, 273) 1, 093,46 Restatement - -
Beginning of year, as restated 440, 611 8, 077, 126 ( 532, 273) 1, 093,46 End of year $ 462, 646 $ 10, 756,73 $ ( 404, 821) $ 1, 509, 804 126
228
Special Revenue Funds
Gas Tax Traffic Safety Local Street Public Nuisance Measure K Transit LTF 1, 482, 522 -
12, 506 1, 557 7, 205
19, 409 -
135
54, 361 -
809, 114 470, 519
9, 200 2, 521
1, 495, 028 20, 966 61, 566 135 818, 314 473, 040
3, 936 -
1, 225, 563 -
3, 936 1, 225, 563 -
1, 495, 028 17, 030 ( 1,63, 997) 135 818, 314 473, 040
1, 548, 076
715, 440) ( 2, 750) ( 339, 480) 783, 110)
715, 440) ( 2, 750) 1, 208, 596 783, 110)
779, 588 14, 280 44, 599
550, 074 112, 479 782, 132
550, 074 112, 479 782, 132
135 35, 204 473, 040
12, 325 631,33 201, 577
12, 325 631,33 201, 577
1, 329, 662 $ 126, 759 $ 826, 731 $ 12, 460 $ 666, 837 $ 674,17 127
229
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure
Public works - - 442, 101
Streets and Roads Federal Grant
Historic Lathrop
Loan Program
HLLP) Storm Drain
523,58 897, 516 -
13,93 53 3, 055 3, 474
352, 416
536, 751 897, 569 3, 055 355, 890
Capital outlay
Debt service:

Interest and fiscal charges
Total expenditures - 442, 101

REVENUES OVER ( UNDER)
EXPENDITURES 536, 751 897, 569 3, 055 ( 86, 211)
OTHER FINANCING SOURCES ( USES):

Transfers in - 157, 969
Transfers out ( 1, 095, 866) ( 958, 447) - ( 66, 460)
Total other financing sources ( uses) ( 1, 095, 866) ( 958, 447) 91, 509 Net change in fund balances ( 559, 115) ( 60, 878) 3, 055 5, 298 FUND BALANCES:

Beginning of year 1, 326, 643 60, 931 252, 537 332, 013 Restatement - - -
Beginning of year, as restated 1, 326, 643 60, 931 252, 537 332, 013 End of year $ 767, 528 $ 53 $ 255, 592 $ 337,11
128
230
Special Revenue Funds
Community
Development Block
Street Light AB939 Recycling Grant Scholarship Fund COPS RTIF San Joaquin
County
312, 751 $
37, 590
38,97
17, 326 15, 966
1,50, 006
5, 000
75, 913
30 2, 877
285
2, 155
152, 771
4, 779
220,98
948
1,72, 332 404, 704 75, 943 5, 317 157, 550 221,46
161, 725
121, 258
977, 600
20, 427
221, 980
1,39, 325 121, 258 20, 427 221, 980
33, 007 283, 446 75, 943 5, 317 137,23 ( 734)
32, 806 -
220, 850) ( 28, 150) 2, 877) ( 100, 00)
188, 044) ( 28, 150) 2, 877) ( 100, 000)
155, 037) 255,96
1, 562, 792 1,31, 435
1, 562, 792 1,31, 435
75, 943 2, 440 37, 123
2, 821) 21, 743 297, 395
2, 821) 21, 743 297, 395
734)
1, 407, 755 $ 1, 386, 731 $ 73, 122 $ 24, 183 $ 334, 518 $ 734) 129
231
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
RTIF Lathrop Local RTIF Lathrop Local
West RTIF SJCOG East LMFD Measure C
REVENUES:

Taxes and assessments $ 1, 588, 378 $ 330, 448 $
Licenses and permits -
Intergovernmental
Charges for services
Use of money and property 155, 606 1, 423
Fines and forfeitures -
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure - -
Public works 889, 719 332, 972
Capital outlay - -
Debt service:

Interest and fiscal charges
30, 805 $
34, 589 3,17
1, 743, 984 331, 871 65, 394 3,17
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
4, 168, 007
1, 661
889, 719 332, 972 1, 661 4, 168, 007
854, 265 ( 1, 101) 63, 733 ( 4, 164, 690)
4, 009, 654
Total other financing sources ( uses) - - 4, 009, 654
Net change in fund balances
FUND BALANCES:

Beginning of year
Restatement
Beginning of year, as restated
End of year
854, 265 ( 1, 101) 63, 733 ( 155, 036)
11, 430, 110 - 2, 618, 008 1,75,50
11, 430, 110 2, 618, 008 1,75,50
12, 284, 375 $ 1, 101) $ 2, 681, 741 $ 1, 020, 114
130
232
Special Revenue Funds
State Grants
North Lathrop Citywide Economic River Islands CFD Lathrop Land ULOP RD -17 Levee Transportation Dev Fee 20% 2013- 1
Acquisitions Impact
269,34
75 619, 000 $ 1,04,64 $
150 30, 400 4, 214 183
913, 227
2, 953)
269, 309 150 649, 400 1,08, 378 183 910, 274
26, 317 - 913, 226
26, 317 913, 226
269, 309 150 649, 400 1, 082,61 183 ( 2, 952)
565, 000
201, 074) - ( 1, 083,26) -
201, 074) 565, 000 ( 1, 083,26) - -
68, 235 150 1, 214, 400 ( 965) 183 ( 2, 952)
11, 437 2, 082, 707 120, 289 1, 074
11, 437 2, 082, 707 120, 289 1, 074
68, 235 $ 11, 587 $ 3, 297, 107 $ 119, 324 $ 1, 257 $ ( 2, 952) 131
233
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Revenue Funds
CLSP Off -Site
DWR Grant - ULOP Roadway South Lathrop CFD Central Lathrop Project Improvement 2019- 1 CFD 2019-
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Community development
Culture and leisure
Public works
Capital outlay
Debt service:

Interest and fiscal charges
4, 052, 308
37, 697 $
1, 705
553, 273 $ 1, 062, 449
14, 716 2, 052
4, 620
4, 052, 308 39, 402 567, 989 1, 069, 121
4, 052, 308 236, 924 851, 999
Total expenditures 4, 052, 308 - 236, 924 851, 999

REVENUES OVER ( UNDER)
EXPENDITURES 39, 402 331, 065 217, 122
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out - ( 178, 050) ( 157, 560)
Total other financing sources ( uses) - - ( 178, 050) ( 157, 560) Net change in fund balances 39, 402 153, 015 59,62
FUND BALANCES:

Beginning of year
Restatement
Beginning of year, as restated
End of year
518, 435) 124, 453 1,49, 288 230, 610
518, 438 - -
3 124, 453 1,49, 288 230, 610
3 $ 163, 855 $ 1, 302,03 $ 290, 172
132
234
Special Revenue Funds Capital Project Funds
Stewart Economic
Dev Fee 80% TOT Trust
Gateway Business
Park Storm Drain Park in Lieu
Total Nonmajor
Governmental
Funds
2, 120
51, 420 $
16, 638
151, 744 $
1, 018
570, 038 $ 10, 662, 275
37, 590
8, 774,29
4, 369, 077
12,69 15, 887 624, 050
1, 521, 831
2, 017, 292
95, 854
2, 120 68, 058 152, 762 12,69 585, 925 28, 102, 698
17, 273
4, 354, 095
54 1, 346, 821
12, 097, 490
202, 104
159, 854
17, 273 18,60, 418
2, 120 68, 058 135, 489 12,69 585, 925 9,42, 280
250, 00 - 6,38, 565
450) ( 9, 038, 514)
249, 550 ( 2, 399, 949)
2, 120 68, 058
6, 273 1, 227,11
6, 273 1, 227,11
135, 489 261, 79 585, 925 7, 542, 331
51, 839 641, 168 1,48,67 37, 850, 747
518, 438
51, 839 641, 168 1,48,67 38,69, 185
8, 393 $ 1, 295,69 $ 187, 328 $ 902, 887 $ 1, 734, 092 $ 45, 911, 516 133
235
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Projects
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $
Developer participation
Total revenues
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
200, 00
36, 103 $
2, 401, 555 1, 628, 711
36, 103
772, 844)
200, 00 2, 401, 555 1, 664, 814 ( 736,41)
201, 640) 2, 335, 600) 1, 642, 779) 692, 81
201, 640) 2, 335, 600) 1, 642, 779) 692, 81
1, 640) $ 65, 955 22, 035 $ ( 43, 920)
440, 611
462, 646
134
236
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Engineering
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Charges for services $ 1, 344,94 $ 1, 517, 685 $ 4, 369, 077 $ 2, 851, 392 Use of money and property - 156, 774 156, 774
Miscellaneous - 24, 724 24, 724
Total revenues
EXPENDITURES:
1, 344,94 1, 517, 685 4, 550,75 3, 032, 890
Current:

Community development 3, 000 400 54 346
Public works 2, 501, 360 3, 623, 346 1, 697, 452 1, 925, 894 Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
2, 504, 360 3, 799, 177 1, 870, 928 1, 928, 249
1,59, 966) ( 2,81, 492) 2, 679,47 4, 961, 139
Net change in fund balances $ ( 1,59, 966) $ ( 2,81, 492) 2, 679,47 $ 4, 961, 139 FUND BALANCES:

Beginning of year 8, 077, 126
End of year $ 10, 756,73
135
237
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Deposits
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ 33, 500 $ 33, 500 $ 19, 324 $ Developer participation 862,6 862,6 388, 51
Total revenues
EXPENDITURES:
14, 176)
474, 25)
896, 326 896, 326 407, 905 ( 488,21)
Current:

Public works 592, 000 650,44 91,28
Debt service: -
Interest and fiscal charges 160, 00 160, 00 159, 854
558, 716
146
Total expenditures 896, 326 954,70 280, 453

REVENUES OVER ( UNDER)
674, 371
EXPENDITURES - ( 58, 644) 127, 452 186, 096
Net change in fund balances $ $ ( 58, 644) 127, 452 $
FUND BALANCES:

Beginning of year ( 532, 273)
End of year $ ( 404, 821)
186, 096
136
238
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape Maintenance
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 2, 863, 303 $ 2, 863, 303 $ 3, 116, 583 $ 253,80 Use of money and property 3, 000 3, 000 26, 307 23, 307 Miscellaneous - 4, 994 4, 994
Total revenues
EXPENDITURES:
2, 866, 303 2, 866, 303 3, 147, 884 281, 581
Current:

Public works 2, 572, 964 1, 751,23 1, 344, 030 407, 693 Capital outlay - 12 11 1
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
2, 572, 964 1, 751, 735 1, 344, 041 407, 694
293, 39 1,14, 568 1, 803,43 689, 275
Transfers in 72, 660 75, 060 75, 060
Transfers out ( 335, 440) ( 1, 462, 175) ( 1, 462, 145) 30 Total other financing sources ( uses) ( 262, 780) ( 1, 387, 115) ( 1, 387, 085) 30 Net change in fund balances $ 30, 559 $ ( 272, 547) 416, 758 $ 689, 305 FUND BALANCES:

Beginning of year 1, 093,46
End of year $ 1, 509, 804
137
239
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
1,26, 708 $ 1,26, 708 $ 1, 482, 522 $ 355, 814
12, 506 12, 506
Total revenues 1,26, 708 1,26, 708 1, 495, 028 368,20
OTHER FINANCING SOURCES ( USES):

Transfers out ( 515, 20) ( 715, 440) ( 715, 440) -
Total other financing sources ( uses) ( 515, 20) ( 715, 440) ( 715, 440) Net change in fund balances $ 611, 458 $ 411, 268 779, 588 $ 368,20 FUND BALANCES:

Beginning of year 550, 074
End of year $ 1, 329, 662
138
240
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 1, 557 $ 1, 557
Fines and forfeitures 30, 000 30, 000 19, 409 ( 10, 591) Total revenues 30, 000 30, 000 20, 966 ( 9, 034)
EXPENDITURES:

Current:

Public safety 46, 500 46, 500 3, 936 42, 564
Total expenditures 46, 500 46, 500 3, 936 42, 564

REVENUES OVER ( UNDER)
EXPENDITURES ( 16, 500) ( 16, 500) 17, 030 33, 530
OTHER FINANCING SOURCES ( USES):

Transfers out ( 2, 440) ( 2, 750) ( 2, 750) -
Total other financing sources ( uses) ( 2, 440) ( 2, 750) ( 2, 750) Net change in fund balances $ ( 18, 940) $ ( 19, 250) 14, 280 $ 33, 530 FUND BALANCES:

Beginning of year 112, 479
End of year $ 126, 759
139
241
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Street
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - S $ 7, 205 $
Miscellaneous - 54, 361
Total revenues
EXPENDITURES:
7, 205
54, 361
61, 566 61, 566
Current:

Culture and leisure - 1, 834, 420 1, 225, 563 608, 857
Public works 1, 228, 854 - -
Capital outlay 10, 000 15, 200 15, 200
Total expenditures 1, 238, 854 1, 849, 620 1, 225, 563 624, 057

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):
1, 238, 854) ( 1, 849, 620) ( 1,63, 997) 685,23
Transfers in 1, 408, 074 1, 548, 074 1, 548, 076 2
Transfers out ( 169, 220) ( 339, 480) ( 339, 480)
Total other financing sources ( uses) 1, 238, 854 1, 208, 594 1, 208, 596 2 Net change in fund balances $ - $ ( 641, 026) 44, 599 $ 685,25 FUND BALANCES:

Beginning of year 782, 132
End of year $ 826, 731
140
242
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Nuisance
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 135 $ 135
Total revenues - 135 135
EXPENDITURES:

Current:

Public works 4, 000 4, 000 - 4, 000
Total expenditures 4, 000 4, 000 - 4, 000

REVENUES OVER ( UNDER)
EXPENDITURES ( 4, 000) 4, 000) 135 4, 135
Net change in fund balances $ ( 4, 000) $
FUND BALANCES:

Beginning of year
4, 000) 135 $
12, 325
End of year $ 12, 460
4, 135
141
243
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure K
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 580, 00 $ 663, 384 $ 809, 114 $ 145, 730 Use of money and property - 9, 200 9, 200
Total revenues 580, 00 663, 384 818, 314 154, 930
OTHER FINANCING SOURCES ( USES):

Transfers out ( 700, 00) ( 812, 066) ( 783, 110) 28, 956 Total other financing sources ( uses) ( 700, 00) ( 812, 066) ( 783, 110) 28, 956 Net change in fund balances $ ( 120, 00) $ ( 148, 62) 35, 204 $ 183, 886 FUND BALANCES:

Beginning of year 631,33
End of year $ 666, 837
142
244
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transit LTF
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ - $ 633, 527 $ 470, 519 $ ( 163, 008) Use of money and property - 2, 521 2, 521
Total revenues - 633, 527 473, 040 ( 160, 487)
OTHER FINANCING SOURCES ( USES):

Transfers out - ( 300, 00) 300, 00
Total other financing sources ( uses) - ( 300, 00) - 300, 00 Net change in fund balances $ - $ 333, 527 473, 040 $ 139, 513 FUND BALANCES:

Beginning of year 201, 577
End of year $ 674,17
143
245
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 598, 901 $ 926, 459 $ 523,58 $ ( 402, 901) Use of money and property - 13,93 13,93
Total revenues 598, 901 926, 459 536, 751 ( 389, 708)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 69, 000) ( 1, 785, 260) ( 1, 095, 866) 689, 34 Total other financing sources ( uses) ( 69, 000) ( 1, 785, 260) ( 1, 095, 866) 689, 34 Net change in fund balances $ 529, 901 $ ( 858,01) ( 559, 115) $ 299, 686 FUND BALANCES:

Beginning of year 1, 326, 643
End of year $ 767, 528
144
246
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal Grant
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ $ 3, 855, 347 $ 897, 516 $ ( 2, 957, 831) Use of money and property - - 53 53
Total revenues - 3, 855, 347 897, 569 ( 2, 957, 778)
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses) - ( 4, 231, 831) ( 958, 447) 3, 273, 384 Net change in fund balances $ - $ ( 376, 484) ( 60, 878) $ 315, 606 FUND BALANCES:

Beginning of year 60, 931
End of year
4, 231, 831) ( 958, 447) 3, 273, 384
53 145
247
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Historic Lathrop Loan Program ( HLLP)
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3, 055 $ 3, 055
Total revenues - 3, 055 3, 055
Net change in fund balances $ $ - 3, 055 $ 3, 055
FUND BALANCES:

Beginning of year 252, 537
End of year
255, 592
146
248
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3, 474 $
Fines and forfeitures 352, 506 352, 506 352, 416
Total revenues
3, 474
90)
352, 506 352, 506 355, 890 3,84
EXPENDITURES:

Current:

Public works 429, 222 608, 151 442, 101 166, 050
Total expenditures 429, 222 608, 151 442, 101 166, 050

REVENUES OVER ( UNDER)
EXPENDITURES ( 76,16) ( 255, 645) ( 86, 211) 169, 434
OTHER FINANCING SOURCES ( USES):

Transfers in 156, 000 157, 968 157, 969 1
Transfers out ( 67, 090) ( 66, 460) ( 66, 460)
Total other financing sources ( uses) 88, 910 91, 508 91, 509 1 Net change in fund balances $ 12,94 $ ( 164,37) 5, 298 $ 169, 435 FUND BALANCES:

Beginning of year 332, 013
End of year $ 337,11
147
249
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Light
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Fines and forfeitures
Miscellaneous
Total revenues
EXPENDITURES:

Current:

Public safety
Public works
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):
17, 326 $ 17, 326
1,48, 080 1,48, 080 1,50, 006 1, 926
5, 000 5, 000
1,48, 080 1,48, 080 1,72, 332 24,52
173, 274 294, 810 161, 725 133, 085
971, 528 1, 242, 042 977, 600 264, 42
1,44, 802 1, 536, 852 1,39, 325 397, 527
3, 278 ( 388, 772) 33, 007 421, 779
Transfers in 32, 806 32, 806 32, 806
Transfers out ( 139, 50) ( 232, 100) ( 220, 850) 11, 250 Total other financing sources ( uses) ( 106, 784) ( 199, 24) ( 188, 044) 11, 250 Net change in fund balances $ ( 103, 506) $ ( 588, 066) ( 155, 037) $ 433, 029 FUND BALANCES:

Beginning of year 1, 562, 792
End of year $ 1, 407, 755
148
250
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual AB939 Recycling
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Licenses and permits
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Culture and leisure
Public works
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
170, 00 $ 170, 00 $ 312, 751 $ 142, 751
37, 590 37, 590
5, 000 43, 397 38,97 ( 5, 000)
15, 966 15, 966
175, 000 213, 397 404, 704 191, 307
145, 703
86, 556
121, 258 24, 445
86, 556 145, 703 121, 258 24, 445
88, 444 67,94 283, 446 215, 72
14, 560) 28, 150) ( 28, 150)
14, 560) 28, 150) ( 28, 150)
73, 884 $ 39, 544 255,96 $ 215, 72
1,31, 435
1, 386, 731
149
251
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ $ 161, 30 $ 75, 913 $ ( 85, 397)
Use of money and property - 30 30
Total revenues - 161, 30 75, 943 ( 85, 367)
OTHER FINANCING SOURCES ( USES):

Transfers out - ( 161, 30) 161, 30
Total other financing sources (uses) - ( 161, 30) - 161, 30 Net change in fund balances $ - $ - 75, 943 $ 75, 943
FUND BALANCES:

Beginning of year ( 2, 821)
End of year $ 73, 122
150
252
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Scholarship Fund
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
Miscellaneous
Total revenues
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
5, 000 $ 10, 000 $ 2, 877 $ ( 7, 123)
285 285
200 200 2, 155 1, 955
5, 200 10, 200 5, 317 ( 4, 883)
5, 000) ( 10, 000) ( 2, 877) 7, 123
5, 000) ( 10, 000) ( 2, 877) 7, 123
200 $ 200 2, 440 $ 2,40
21, 743
24, 183
151
253
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual COPS
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public safety
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
500, 00 $ 500, 00 $ 152, 771 $ ( 347, 229)
4, 779 4, 779
500, 00 500, 00 157, 550 ( 342, 450)
500, 00 418, 841 20, 427 398, 414
500, 00 418, 841 20, 427 398, 414
81, 159 137,23 55, 964
100, 00) ( 100, 00)
100, 00) ( 100, 00)
18, 841) 37, 123 $
297, 395
334, 518
55, 964
152
254
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF San Joaquin County
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
295, 778 $ 295, 778 $ 220,98 $ ( 75, 480)
948 948
295, 778 295, 778 221,46 ( 74, 532)
Current:

Public works 295, 778 295, 778 221, 980 73,98
Total expenditures 295, 778 295, 778 221, 980

REVENUES OVER (UNDER)
73,98
EXPENDITURES - ( 734) 734)
Net change in fund balances $ - $ ( 734) $ ( 734)
FUND BALANCES:

Beginning of year
End of year 734)
153
255
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local West
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
1, 708, 367 $ 1, 708, 367 $ 1, 588, 378 $ ( 119, 989)
155, 606 155, 606
1, 708, 367 1, 708, 367 1, 743, 984 35, 617
Current:

Public works 5, 000 888,26 889, 719 ( 893)
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
5, 000 888,26 889, 719 ( 893)
1, 703, 367 819, 541 854, 265 34, 724
Net change in fund balances $ 1, 703, 367 $ 819, 541 854, 265 $ 34, 724 FUND BALANCES:

Beginning of year 11, 430, 110
End of year $ 12, 284, 375
154
256
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

RTIF SJCOG
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:
443, 667 $ 443, 667 $ 330, 448 $ ( 113, 219)
1, 423 1, 423
443, 667 443, 667 331, 871 ( 111, 796)
Current:

Public works 443, 667 443, 667 332, 972 110, 695
Total expenditures 443, 667 443, 667 332, 972

REVENUES OVER ( UNDER)
110, 695
EXPENDITURES - - ( 1,01)
Net change in fund balances $ $ ( 1,01) $
FUND BALANCES:

Beginning of year
End of year $ ( 1, 101)
155
257
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local East
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 465, 600 $ 465, 600 $ 30, 805 $ ( 434, 795) Use of money and property - 34, 589 34, 589
Total revenues 465, 600 465, 600 65, 394 ( 400, 26)
EXPENDITURES:

Current:

Public works 5, 000 5, 000 1, 661 3,39
Total expenditures 5, 000 5, 000 1, 661 3,39

REVENUES OVER ( UNDER)
EXPENDITURES 460, 60 460, 60 63, 733 ( 396, 87)
Net change in fund balances $ 460, 60 $ 460, 60 63, 733 $ ( 396, 87) FUND BALANCES:

Beginning of year
2, 618, 008
End of year $ 2, 681, 741
156
258
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual LMFD Measure C
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 3,17 $ 3,17
Total revenues - 3,17 3,17
EXPENDITURES:

Current:

Public safety 2, 400, 000 4, 168, 010 4, 168, 007 3
Total expenditures 2, 400, 000 4, 168, 010 4, 168, 007 3

REVENUES OVER ( UNDER)
EXPENDITURES ( 2, 400, 00) ( 4, 168, 010) ( 4, 164, 690) 3,20 OTHER FINANCING SOURCES ( USES):

Transfers in 2, 400, 000 4, 168, 010 4, 009, 654 ( 158, 356) Total other financing sources ( uses) 2, 400, 000 4, 168, 010 4, 009, 654 ( 158, 356) Net change in fund balances $ - $ - ( 155, 036) $ ( 155, 036) FUND BALANCES:

Beginning of year
1,75,50
End of year $ 1, 020, 114
157
259
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Grants
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ 900, 00 $ 1, 247,18 $ 269,34 $ ( 977,84) Use of money and property - - 75 75
Total revenues 900, 00 1, 247,18 269, 309 ( 977,09)
OTHER FINANCING SOURCES (USES):

Transfers out ( 900, 00) ( 1, 247,18) ( 201, 074) 1, 046, 144 Total other financing sources ( uses) ( 900, 00) ( 1, 247,18) ( 201, 074) 1, 046, 144 Net change in fund balances $ - $ 68, 235 $ 68, 235
FUND BALANCES:

Beginning of year -
End of year $ 68, 235
158
260
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual North Lathrop Transportation
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ - $ - $ 150 $ 150
Developer participation 468, 331 468, 331 - ( 468, 331) Total revenues 468, 331 468, 331 150 ( 468, 11)
Net change in fund balances $ 468, 331 $ 468, 331 150 $ ( 468, 11) FUND BALANCES:

Beginning of year
11, 437
End of year $
11, 587
159
261
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Citywide Economic Dev Fee 20%
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 205, 000 $ 205, 000 $ 619, 000 $ 414, 000 Use of money and property - - 30, 400 30, 400
Total revenues 205, 000 205, 000 649, 400 444,00
OTHER FINANCING SOURCES ( USES):

Transfers in - 565, 000 565, 000
Total other financing sources (uses) - 565, 000 565, 000 - Net change in fund balances $ 205, 000 $ 770, 00 1, 214, 400 $ 444,00 FUND BALANCES:

Beginning of year 2, 082, 707
End of year $ 3, 297, 107
160
262
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual River Islands CFD 2013- 1
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 606, 551 $ 1,04,61 $ 1,04,64 $ 3 Use of money and property - - 4, 214 4, 214
Miscellaneous 400,49 400,49 - ( 400,49)
Total revenues
EXPENDITURES:

Current:

Public works
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
1, 007,00 1, 504, 610 1,08, 378 ( 396, 232)
18, 500 18, 500 26, 317 ( 7, 817)
18, 500 18, 500 26, 317 ( 7, 817)
988, 500 1, 486, 110 1, 082,61 ( 404, 09)
988, 500) ( 1, 083, 700) 1, 083,26) 674
988, 500) ( 1, 083, 700) 1, 083,26) 674
402,10 ( 965) $ ( 403, 375)
120, 289
119, 324
161
263
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lathrop Land Acquisitions
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
183 $ 183
183 183
183 $ 183
1, 074
1, 257
162
264
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ULOP RD -17 Levee Impact
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
3, 029, 840 $ 3, 029, 840 $ 913, 227 $ ( 2, 116, 613)
2, 953) ( 2, 953)
3, 029, 840 3, 029, 840 910, 274 ( 2, 119, 566)
EXPENDITURES:

Current:

Public works 3, 029, 840 3, 029, 840 913, 226 2, 116, 614 Total expenditures 3, 029, 840 3, 029, 840 913, 226 2, 116, 614

REVENUES OVER ( UNDER)
EXPENDITURES - ( 2, 952) ( 2, 952)
Net change in fund balances $ $ ( 2, 952) $ ( 2, 952)
FUND BALANCES:

Beginning of year
End of year
2, 952)
163
265
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual DWR Grant - ULOP Project
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental $ - $ - $ 4, 052, 308 $ 4, 052, 308
Total revenues - 4, 052, 308 4, 052, 308
EXPENDITURES:

Current:

Public works - 4, 052, 308 ( 4, 052, 308)
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
4, 052, 308 ( 4, 052, 308)
Net change in fund balances $
FUND BALANCES:

Beginning of year ( 518, 435)
Restatement 518, 438
Beginning of year, as restated 3
End of year $ 3
164
266
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CLSP Off -Site Roadway Improvement
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 68, 355 $ 68, 355 $ 37, 697 $
Use of money and property - 1, 705
Total revenues 68, 355 68, 355 39, 402
30, 658)
1, 705
28, 953)
Net change in fund balances $ 68, 355 $ 68, 355 39, 402 $ FUND BALANCES:

Beginning of year 124, 453
End of year $ 163, 855
28, 953)
165
267
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual South Lathrop CFD 2019- 1
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public works
Capital outlay
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
542, 43 $ 542, 43 $ 553, 273 $
14, 716
10, 850
14, 716
542, 43 542, 43 567, 989 25, 566
290, 578 346, 515 236, 924 109, 51
230, 00 80, 000 - 80, 000
520,78 426, 515 236, 924 189, 51
21, 845 115, 908 331, 065 215, 17
9, 180) 178, 050) ( 178, 050)
9, 180) 178, 050) ( 178, 050)
12, 665 $ ( 62, 142) 153, 015 $ 215, 17
1,49, 288
1, 302,03
166
268
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Central Lathrop CFD 2019-
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 860, 00 $ 860, 00 $ 1, 062, 449 $ 202, 449 Use of money and property - 2, 052 2, 052
Miscellaneous - 4, 620 4, 620
Total revenues
EXPENDITURES:
860, 00 860, 00 1, 069, 121 209, 121
Current:

Public works 773, 064 880, 086 851, 999 28, 087
Total expenditures

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
773, 064 880, 086 851, 999 28, 087
86, 936 ( 20, 086) 217, 122 237,08
40, 160) ( 157, 560) ( 157, 560)
40, 160) ( 157, 560) ( 157, 560)
46, 776 $ ( 177, 646) 59,62 $ 237,08
230, 610
290, 172
167
269
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Stewart Economic Dev Fee 80"/ 0
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property
Total revenues
Net change in fund balances
FUND BALANCES:
2, 120 $ 2, 120
2, 120 2, 120
2, 120 $ 2, 120
Beginning of year
6, 273
End of year
8, 393
168
270
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual TOT Trust
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ - $ - $ 51, 420 $
Use of money and property - - 16, 638
51, 420
16, 638
Total revenues - - 68, 058 68, 058
Net change in fund balances $ - $ 68, 058 $
FUND BALANCES:

Beginning of year 1, 227,11
End of year $ 1, 295,69
68, 058
169
271
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gateway Business Park
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ 83, 500 $
Use of money and property -
Total revenues
EXPENDITURES:
83, 500 $
83, 500 83, 500
151, 744 $
1, 018
68, 244
1, 018
152, 762 69, 262
Current:

Public works 79, 815 79, 914 17, 273 62,41
Total expenditures 79, 815 79, 914 17, 273 62,41

REVENUES OVER ( UNDER)
EXPENDITURES 3, 685 3, 586 135, 489 131, 903
Net change in fund balances $ 3, 685 $
FUND BALANCES:
3, 586 135, 489 $ 131, 903
Beginning of year 51, 839
End of year
187, 328
170
272
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Use of money and property $ $ $ 12,69 $ 12,69
Total revenues - 12,69 12,69
EXPENDITURES:

Current:

Public works 250, 00 782, 000 - 782, 000
Total expenditures 250, 00 782, 000 - 782, 000

REVENUES OVER ( UNDER)

EXPENDITURES
OTHER FINANCING SOURCES ( USES):

Transfers in
Transfers out
Total other financing sources ( uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
250, 000) ( 782, 000) 12,69 794, 169
250, 00 250, 00 250, 00
70) ( 450) ( 450)
249, 930 249, 550 249, 550
70) $ ( 532, 450) 261, 79 $ 794, 169
641, 168
902, 887
171
273
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park in Lieu
For the year ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Taxes and assessments $ - $ - $ 570, 038 $ 570, 038
Use of money and property - 15, 887 15, 887
Total revenues - 585, 925 585, 925
Net change in fund balances $ - $ 585, 925 $ 585, 925
FUND BALANCES:

Beginning of year 1,48,67
End of year $ 1, 734, 092
172
274
City of Lathrop
Custodial Funds
Year Ended June 30, 2023
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 NO. 1 FUND
1 o account tor 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. 173
275
City of Lathrop
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2023
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ASSETS
Cash and investments $ 6, 494 $ 577, 194 $ 829,67 $
Receivables:

Accrued interest 1, 473 997 1, 592
Restricted assets:

Cash and investments with fiscal agents 8, 288, 751 766, 343 706, 937 Total assets 8, 296, 718 1, 344, 534 1, 538, 396

LIABILITIES
Accounts payable - - 131, 097
Deposits payable - -
Total liabilities - - 131, 097 -

NET POSITION
Restricted for:

Individuals, organizations, and other governments 8, 296, 718 1, 344, 534 1, 407, 299 Total Net Position 8, 296, 718 $ 1, 344, 534 $ 1, 407, 299 $ 174
276
Community Mossdale Village
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village CLSP Infrastructure District # 1 1 CFD 2003- 1
Total
Custodial
Funds
2,01, 911 $ 5, 097 $ 691, 175 $ 1, 330, 500 $ 5, 642, 238 3, 616 27 1, 332 4, 353 13, 390
1, 269, 740 135, 471 248,09 5, 019, 340 16, 434, 791
3, 475, 267 140, 595 940, 716 6, 354, 193 22, 090, 419
357, 709 488, 806
30, 747 - - 30, 747
30, 747 357, 709 519,53
3, 444, 520 140, 595 940, 716 5, 996, 484 21, 570, 866
3, 444, 520 $ 140, 595 $ 940, 716 $ 5, 996, 484 $ 21, 570, 866 277
City of Lathrop
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2023
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ADDITIONS:

Collections for assessment districts $ 1, 006,08 $ 757, 121 $ 610, 745 $ Receipts from others 7, 530, 127 -
Investment earnings 4, 131 30,20 3,56 844
Total additions 8, 540, 266 787, 441 614, 101
DEDUCTIONS:

Administrative expenses
Contractual services
Debt service
Total deductions
Change in net position
844
12, 921
240, 90
1, 692, 446
9, 631 11, 316
13, 825 7, 343
734, 000 567, 80
25,74
1, 946, 267 757, 456 586,29 25,74
6, 593, 999 29, 985 27, 572
NET POSITION:

Beginning of year 94, 416 2, 999, 592 266,37
Restatements 1, 608, 303 ( 1, 685, 043) 1,13, 490
Beginning of year, as restated 1, 702,19 1, 314, 549 1, 379, 727 24, 430)
24, 430
24, 430
End of year $ 8, 296, 718 $ 1, 344, 534 $ 1, 407, 299 $ 176
278
Community Mossdale Village Total
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village Custodial CLSP Infrastructure District # 1 1 CFD 2003- 1
Funds
3, 206, 408 $ 143, 303 $ 510, 351 $ 545, 935 $
4, 928,37
67, 941 972 18, 862 38, 897
6, 779, 871
12, 459, 064
165, 323
3, 274, 349 144, 275 529, 213 5,13, 769 19, 404, 258
9, 416 7,45 12, 921 16, 462 105, 686
29, 613 18, 625 196, 206 506,12
2, 643, 082 398, 870 842, 274 1, 582, 296 8, 460, 838
2, 682, 111 406, 615 873,20 1, 794, 964 9, 073,36
592, 238 ( 262, 340) ( 344, 607) 3, 718, 805 10, 331, 222 484, 554 16, 785 412, 184 - 4, 298, 198
2, 367, 728 386, 150 873, 19 2,77, 679 6, 941, 446
2, 852, 282 402, 935 1, 285, 323 2,77, 679 11, 239, 644 3, 444, 520 $ 140, 595 $ 940, 716 $ 5, 996, 484 $ 21, 570, 866 279
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178
280

STATISTICAL SECTION
This part of the City' sAnnual 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' smost 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' sfinancial 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' sfinancial 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.
179
281

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

Net investments in
capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities:

Net investments in
capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government:

Net investments in
capital assets
Restricted
Unrestricted
Total Primary government net position
2014
140, 357, 523
4, 865, 583
31, 716, 374
2015
145, 671, 748
7,33, 824
35, 612,93
176, 939, 480 $ 189, 018, 265
88, 125, 585
2, 696, 850
25, 692,76
92, 350,19
2, 995, 846
23, 944, 509
116, 515, 111 $ 119, 20, 674
228, 43, 108
7, 562, 433
57, 409, 050
238, 022,67
10, 729, 670
59, 557, 202
293, 454, 591 $ 308, 939
Source: City of Lathrop, California Comprehensive Annual Financial Reports. 2016
148, 474, 931
10, 223, 760
38, 941, 548
197, 640, 239
93,06,14
2, 698, 250
26, 437, 255
123, 042, 419
242, 381, 845
12, 922, 010
65, 378, 803
320, 682,58
2017
155, 971, 046
11, 858, 920
47, 769, 952
215, 599, 918
103, 695, 833
1, 706, 637
37, 146, 214
142, 548, 684
259, 666, 879
13, 565,57
84, 916, 166
358, 148, 602
180
282

CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
accrual basis of accounting)
2018 2019 2020 2021 2022 2023
159, 727, 304
10, 376, 172
52, 396, 920
222, 500, 396
120, 279, 431
1, 650, 031
30, 919, 752
152, 849, 214
280, 06, 735
12, 026, 203
83, 316, 672
375,49, 610
179, 501, 255
13, 552, 647
72, 645, 973
265, 699, 875
150, 452, 677
1, 652, 234
34, 710, 083
186, 814, 994
329, 953,32
15, 204, 881
107, 356, 056
452, 514, 869
206,11, 349
16, 013, 046
87, 005, 385
309, 229, 780
160, 481, 074
1, 651, 396
43, 373,59
205, 505, 829
366, 692, 423
17, 664, 442
130, 378, 744
514, 735, 609
218, 894, 403
103, 964, 923
33, 463, 086
356,22, 412
156, 93, 462
1, 650,48
62, 502, 764
221, 16, 874
375, 87,65
105, 615, 571
95, 965, 850
577, 439, 286
250, 65, 011
122, 949,90
47, 696, 013
421, 251, 014
174, 059, 421
1, 652, 915
70,85, 536
246, 497, 872
424, 664, 432
124, 602, 905
118, 41, 549
667, 748, 886
320, 475, 208
125, 033, 370
59, 792, 854
505, 301, 432
206,99, 495
1, 408, 865
72, 411, 962
280, 120, 322
526, 774,03
126, 442, 235
132, 204, 816
785, 421, 754
181
283

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

Governmental activities:

General government $ 4, 680, 110 $ 7, 449, 500 $ 5, 614, 173 $ 4, 580, 381 Public safety 5, 940, 125 6, 962, 351 8, 048, 625 9, 683,36 Public works 13, 888, 678 10, 864, 104 7, 864, 470 13,25, 373 Culture and leisure 1,11, 917 779, 976 1, 395, 287 1, 300, 832 Community development 1, 573, 972 602, 719 1, 712, 156 993, 885 Interest on long- term debt 924,1 340, 120 880, 036 319, 164 Total governmental activities expense 28, 119, 743 26, 998, 770 25, 514, 747 30, 003, 271 Business -type activities:

Water 7, 376, 261 5, 108, 071 4, 941, 845 5, 828, 411
Wastewater 6, 289, 560 4,33, 501 3, 587, 602 5, 393, 728 Total business - type activities expenses 13, 665, 821 9, 541,72 8, 529, 447 11, 222, 139 Total primary government expenses $ 41, 785, 564 $ 36, 540, 342 $ 34, 044, 194 $ 41, 225, 410 Program revenues:

Governmental activities:

Charges for services:

General Government 397, 607 491, 076 551, 63 462, 696
Public Safety 716, 30 356, 989 365, 009 231, 164
Public Works 202, 488 248, 09 258, 005 1, 697, 831
Culture and leisure 242, 500 220, 963 205, 376 283, 662 Community development 2, 189, 603 2, 551, 889 3, 947, 881 3, 131, 768 Operating grants and contributions 4, 947, 223 4, 969, 720 5, 016, 283 4, 841, 037 Capital grants and contributions 23, 115, 518 22, 155,91 9, 759, 080 30, 838, 179 Total governmental activities
program revenues 31, 811, 299 30, 993,17 20, 103, 247 41,86, 337 Business -type activities:

Charges for services:

Water 6, 551, 486 6, 042, 517 5, 849, 963 6, 856, 028
Wastewater 5, 827, 902 5, 730, 148 5, 233, 840 5, 791, 155 Operating grants and contributions 12, 002, 670 - -
Capital grants and contributions 159, 854 159, 854 159, 854 159, 854 Total business -type activities
program revenues 24, 541, 912 11, 932, 519 11, 243, 657 12, 807, 037 Total primary government
program revenues $ 56, 353, 211 $ 42, 926, 436 $ 31,46, 904 $ 54, 293, 374 Net revenues ( expenses):

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

Governmental activities:

Taxes:

Property tax 2, 946, 083 3, 273, 006 3, 566, 656 3, 980, 606 Sales and use taxes 6,76, 994 5, 947, 812 6, 209, 105 6, 337, 138 Franchise taxes 705, 405 685, 140 518, 13 771, 288
Other taxes 419, 267 449, 950 743, 896 565, 715
Motor vehicle in lieu, unrestricted 1,18, 489 1, 237, 606 1, 324, 094 1, 555, 026 Investment income 67, 431 80,44 346, 915 19, 282
Other general revenues 395, 810 301, 192 1, 745, 978 10, 090,96 Transfers ( 5, 626, 465) ( 84, 391) ( 421, 353) ( 16, 842, 538) Total governmental activities 6, 703, 014 11, 891, 159 14, 033, 474 6, 476, 613 Business - type activities:

Investment income 49, 915 63, 492 200, 063 214, 510
Miscellaneous 1, 392, 651 675, 204 416, 119 864, 319
Transfers 5, 626, 465 84, 391 421, 353 16, 842, 538
Total business - type activities 7, 069,31 823, 087 1, 037, 535 17, 921, 367 Total primary government $ 13, 772, 045 $ 12, 714, 246 $ 15, 071,09 $ 24, 397, 980 Changes in net position
Governmental activities
Business -type activities
Total primary government
10, 394, 570
17, 945, 122
28, 339, 692
15, 886, 306
3, 214, 034
19,00, 340
8, 621, 974
3, 751,45
12, 373, 719
17, 959, 679
19, 506, 265
37, 465, 944
182
284

CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
accrual basis of accounting)
2018 2019 2020 2021 2022 2023
4, 917, 617 $ 5, 307, 052 $ 5, 944, 111 $ 6, 544, 720 $ 6, 994, 053 $ 9, 350, 898 10, 965, 814 11, 284, 963 12,21, 072 11, 729, 668 11, 628, 050 15, 350, 996 13, 066, 756 16, 835, 406 19,95, 792 19, 892, 748 14, 711, 011 36, 027, 481 1, 331, 811 1, 442, 202 1, 468,71 1, 466, 177 11, 559, 470 3, 999, 365 1, 256, 506 977, 552 1, 317, 693 8, 227, 717 1, 805, 271 1, 537, 163 100, 088 46,10 89, 123 241, 454 233, 740 225, 835
31, 638, 592 35, 893, 585 40, 136, 262 48, 102, 484 46, 931, 595 66, 491, 738 4, 969, 618 6, 303, 489 6, 906, 021 6, 767, 503 7, 099, 213 9, 130, 486 1, 204, 762 9, 206, 503 7, 476,39 7, 926, 063 7, 853, 576 9, 457,06 6, 174, 380 15, 509, 992 14, 382, 460 14, 693, 566 14, 952, 789 18, 587, 892 37, 812, 972 $ 51, 403, 577 $ 54,18, 722 $ 62, 796, 050 $ 61, 884, 384 $ 85, 079, 630 438, 974
424, 909
1,84, 297
279, 505
2, 916, 089
5, 459, 511
10, 069, 773
528, 673
775, 581
1, 874, 445
341, 06
3, 880, 593
5, 674, 834
40, 920, 445
20, 773, 058 53, 995, 587
465, 303 6, 961, 502 9, 212, 336
504, 277 243, 05 139,11
473, 06 3, 581, 829 2, 816, 090
285, 143 124, 652 363, 671
6, 507, 913 3, 880, 053 8, 161, 272
6, 105, 531 2, 709, 984 5, 236, 622
43, 291, 735 16, 740, 299 25, 390, 248
57, 632, 938 34, 241, 354 51, 319,50
8, 753, 003
51, 938
3, 250, 469
379, 681
6, 041, 251
7, 477, 256
66, 235, 438
92, 189, 036
8, 331, 835 9, 052, 906 10, 352, 614 10, 239, 976 10, 758, 681 10, 765, 615 6, 533, 098 7, 923,42 8, 633, 545 8, 776, 287 9, 141, 235 10, 428, 292 159, 854 32, 556, 339 11, 691, 580 6, 862,37 - 29, 098, 366 15, 024, 787 49, 533, 187 30, 677, 739 25, 879, 100 19, 899, 916 50, 292,73 35, 797, 845 $ 103, 528, 774 $ 88, 310, 677 $ 60, 120, 454 $ 71, 219,66 $ 142, 481, 309 10, 865, 534) 18,02, 002 17, 496, 676 ( 13, 861, 130) 4, 387, 755 25, 697, 298 8,50, 407 34, 023, 195 16, 295,79 11,85, 534 4, 947, 127 31, 704, 381 2, 015, 127) $ 52, 125,97 $ 33, 791, 955 $ (2, 675, 596) $ 9, 334, 882 $ 57, 401, 679 4, 285, 832 4, 710, 374 5, 333, 918 8, 613, 482 8, 613, 482 10, 509, 687 9, 211,28 12, 001, 476 10, 501, 615 18,90, 475 18,90, 475 21,85, 429 877, 633 1, 204, 106 1, 241, 635 1, 530, 878 1, 530, 878 2,85, 062 634, 335 666, 791 582,52 30, 620, 998 30, 620, 998 15, 842, 524 1, 794, 526 1, 898, 011 2, 193, 976 738,08 738,08 3, 413, 255 979, 43 1, 996, 503 2, 786, 291 701, 941 701, 941 3, 901, 381 379, 51 149, 364 184, 705 945, 547 945, 547 381, 860
137, 582) 2, 439, 302 3, 255, 411 1, 777, 930 1, 777, 930 3, 143, 911 18, 025,56 25, 065, 927 26, 080, 103 63, 119, 959 63, 119, 959 60, 763, 109 405, 014 782, 839 741, 372 364, 403 364, 403 952, 746
907, 527 1, 599, 048 4, 909, 595 5, 692, 221 5, 692, 221 6, 526, 718 137, 582 ( 2, 439, 302) ( 3, 255, 411) ( 1, 777, 930) ( 1, 777, 930) ( 3, 143, 911) 1, 450, 123 ( 57, 415) 2, 395, 556 4, 278, 694 4, 278, 694 4, 335, 553 19, 475, 179 $ 25, 008, 512 $ 28, 475, 659 $ 67, 398, 653 $ 67, 398, 653 $ 65, 098, 662 7, 159, 522 43, 167, 929 43, 576, 779 49, 258, 829 67, 507, 714 86, 460,07 10, 300, 530 33, 965, 780 18, 690, 835 15, 464, 228 9, 225, 821 36, 039, 934 17, 460, 052 $ 77, 133, 709 $ 62, 267, 614 $ 64, 723, 057 $ 76,33, 535 $ 122, 500, 341 183
285

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

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:

Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
2014 2015 2016 2017
6, 380, 018 $ 6, 852, 691 $ 6,65,77 $ 6, 180, 434
2,33,34
16, 234, 527 11, 091, 860 12, 861, 107 16, 496, 212
22, 614, 545 $ 17, 944, 551 $ 21, 760, 018 $ 22, 676,46 3, 890, 049
12, 977, 322
930, 347
17, 797,18
FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California
6, 823, 678
22, 534, 880
880, 383
364)
30, 238, 577
4, 513, 322
25, 829, 474
975, 042
233)
31,17, 605
4, 701, 300
35, 779, 675
784, 139
120)
41, 264, 994
184
286

CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2018 2019 2020 2021* 2022 2023
5, 650, 104 $ 5, 225, 742 $ 3, 470, 982 $ 3, 282, 311
29, 678, 802 29, 664, 824
2, 616, 835
21, 538, 365 31, 169, 562 4, 289,78 6,79, 913
2, 405, 864 $ 9, 766, 137
44, 763, 906 40,47, 513
5, 704, 542 6, 145, 676
27, 188, 469 $ 36,95,04 $ 40, 055, 897 $ 39, 627, 048 $ 52, 874, 312 $ 56, 359,26 3, 797, 087
36, 015, 106
663,74
4, 701, 645
49, 619, 728
549, 720
163, 756)
9, 116, 860
58, 214, 668
572, 817
2, 500)
41, 955, 830 $ 41,19, 819 $ 125, 033, 370
7, 556, 009
169, 617) ( 521, 256) ( 409, 608)
40,75, 867 $ 54, 707, 337 $ 67, 901, 845 $ 41, 786, 213 $ 40, 898, 563 $ 132,79, 771 185
287

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

Taxes and assessments
Licenses and permits
Fines, forfeitures, and penalties
Intergovernmental
Use of Money & Property
Charges for current services
Contributions ( Developer)
Other
Total revenues
Expenditures
Current:

General government
Community development
Public safety
Public works
Culture and leisure
Capital Outlay
Debt service:

Principal retirement
Lease principal retirement
Interest and fiscal charges
Total expenditures
Excess ( deficiency) of
revenues over (under)
expenditures
2014 2015 2016 2017
15, 462, 332 $ 21,68, 849 $ 18, 494,60 $ 22, 885, 183
749, 845 1, 373, 909 1, 283, 193 1, 808, 623
1, 476, 258 1, 486, 888 1, 658,39 1, 949,10
13, 291, 995 11,77,49 5, 489, 546 3, 134, 272
116, 98 159, 262 382, 74 392, 493
2, 727, 193 2,07, 080 3, 725, 964 3, 605, 846
9, 779, 408 1, 094, 140 19, 675, 946
536, 779 4, 202, 190 3, 523,48 1, 353, 215
44, 140, 778 $ 42, 969, 467 $ 34, 558, 074 $ 54, 805, 488 4, 240, 661
1, 323, 932
5, 829,09
17, 040, 900
1, 063, 957
9, 334, 496
274, 370
924,1
8, 063, 724
1, 254, 836
7, 030, 624
15, 482, 137
1, 048, 531
1, 604, 530
289, 709
340, 120
4, 675, 898
1, 657, 178
7, 297, 872
6,87, 275
1, 296, 370
4, 361, 924
1, 683, 347
390, 710
4,06, 106
784,63
9, 560, 119
7, 616, 246
1, 226, 638
2, 920, 897
265, 000
319, 164
40, 033,66 $ 35, 114, 211 $ 28, 050, 574 $ 27, 098, 933 4, 107, 712 $ 7, 855, 256 $ 6, 507,00 $ 27, 706, 555
Other financing sources ( uses):

Proceeds from issuance of long- term deb -
Transfers in 18, 471, 301
Transfers out ( 24, 097, 766)
17, 566, 636
17, 651, 027)
1,91, 652)
12, 971, 420
13, 392, 773)
10, 394, 523
27,37, 061)
Total other financing
sources (uses) $ ( 5, 626, 45) $ ( 84, 391) $ ( 1, 613, 005) $ (16, 842, 538) Net change in fund balances $ ( 1, 518, 753) $ 7,70, 865 $ 4, 894, 495 $ 10, 864, 017 Debt service as a percentage of
noncapital expenditures
FY2021 reflects the implementation of GASB 84.

Source: City of Lathrop, California

4.1% 1.9% 9.6% 2.5%
186
288

CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
modified accrual basis of accounting)
2018 2019 2020 2021*
22, 571, 206
1, 266, 197
2,37, 680
4,20, 261
1, 366, 160
3, 508, 608
2, 751, 850
813, 74
38, 935, 696
4, 770, 853
1,09, 714
10, 724, 423
7, 048,16
1, 275, 334
9, 761, 990
285, 000
100, 088
35,07, 490
1, 823, 951
2, 542,51
4, 373, 978
2, 433, 126
4, 656, 065
536, 277
550, 982
52, 224, 420
5, 137, 588
838, 993
11, 222, 012
9,84, 165
1, 384, 798
2, 643, 451
46,10
35, 075, 418 $ 31, 257, 417
32, 969, 640
2, 930, 344
1, 973, 18
5, 281, 487
3, 299, 084
4, 523, 327
357, 105
657, 995
51, 992, 120
5, 748, 979
1,53,19
12, 001, 225
10, 701, 329
1, 411, 336
6, 950, 445
290, 00
89, 123
59, 694, 541
3, 191, 727
1, 628, 103
7, 045,36
701, 941
6, 208, 805
7, 595,47
945, 547
87, 011, 247
6, 241, 381
1, 220, 515
11, 507, 852
19, 627, 773
1, 323, 042
11, 300, 021
300, 00
241, 454
38,45, 556 $ 51, 762, 038
3, 860, 278 $ 20, 967, 003 $ 13, 646, 564 $ 35, 249,09
12, 389, 403
12, 526, 985)
14, 380, 867
11, 941, 565)
24, 940,59
21, 685, 548)
137, 582) $ 2, 439, 302 $ 3, 255, 411
3, 722, 696 $ 23, 406, 305 $ 16, 901,75

1.5% 0.2% 1.2%
35, 131, 963
33,54, 033)
1, 777, 930
37, 027, 139

1.4%
2022
67, 116,03
386, 46
1, 588, 616
10, 094, 787
2, 101, 280)
13, 859, 233
10, 621, 451
1, 344, 184
102, 909, 560
7, 124, 908
1, 722, 885
11, 552, 853
16, 617, 416
3, 405,73
24,67, 638
352,16
233, 740
65, 277,29
2023
53, 295,37
2,05,03
1, 529, 724
18,40,97
4, 030, 511
8, 654, 509
2, 017, 292
374,77
90, 247, 050
9, 372, 651
1, 282, 370
14, 956, 148
25, 566, 909
3, 921, 574
22, 666, 952
315, 000
367, 507
225, 835
78, 674, 946
37, 632, 331 $ 11, 572, 104
26, 553,63
32, 233, 805)
43, 691, 356
40, 547, 445)
1, 462, 298
5, 680, 242) $ 4, 606, 209
31, 952, 089 $ 16,78, 313

1.4% 1.0%
187
289

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
Year Year Amount of Levy Years Amount
Percent
of Levy
2014 2, 821, 126 2, 821, 126 100. 00% - 2, 821, 126 100. 00% 2015 3, 098, 364 3, 098, 364 100. 00% - 3, 098, 364 100. 00% 2016 3,53, 607 3,53, 607 100. 00% 3,53, 607 100. 00%
2017 3, 727, 479 3, 727, 479 100. 00% 3, 727, 479 100. 00% 2018 4, 125, 753 4, 125, 753 100. 00% 4, 125, 753 100. 00% 2019 4, 309, 587 4, 309, 587 100. 00% 4, 309, 587 100. 00% 2020 4, 812, 631 4, 812, 631 100. 00% 4, 812, 631 100. 00% 2021 5, 326, 609 5, 326, 609 100. 00% 5, 326, 609 100. 00% 2022 5, 853, 282 5, 853, 282 100. 00% 5, 853, 282 100. 00% 2023 6,97,06 6,97,06 100. 00% 6,97,06 100. 00%
Source: County of San Joaquin, California, Office of the Controller. 188
290

CITY OF LATHROP
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands)
City
Gross Taxable Assessed Value Net Taxable Total
Less: Assessed Direct Tax
Fiscal Year Secured Unsecured SBE Nonunitary Exemptions Value Rate 2014 1, 839, 562, 001 136, 58, 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, 780 198,30, 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, 358 174,27, 391 6, 170, 020 ( 18, 831, 913) 3, 103, 337, 856 0. 133% 2019 3, 117, 977, 243 190, 538, 705 6, 170, 020 3,14, 685, 968 0. 130% 2020 3, 554, 886, 516 282,02, 562 6, 170, 020 - 3, 843, 259, 098 0. 125% 2021 4, 139, 024, 746 280, 821, 500 15, 952, 158 - 4,35, 798, 404 0. 120% 2022 4, 787, 945, 754 304, 082, 430 15, 952, 158 5, 107, 980, 342 0. 115% 2023 5, 732, 986, 696 363, 749, 894 15, 952, 158 6, 112, 688, 748 0. 110% NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an " inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is re -assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: County of San Joaquin, California, Office of the County Assessor. 189
291

CITY OF LATHROP
Principal Property Taxpayers
Current Year and Ten Years Ago
Taxpayer
2023
Taxable
Assessed Value
TESLA MOTORS INC $
LIT INDUSTRIAL LP $

SOUTH LATHROP LAND LLC

TRIPOINT LOGISTICS CENTER ILP LLI

CALIFIA LLC

UNITED PARCEL SERVICE INC

PW FUND A LP

J R SIMPLOT COMPANY CORP
COLONY 2019 2 BULK INDUSTRIAL

CENTERPOINT PROPERTIES TRUST
251, 826, 249
227, 405, 146
197, 982,19
132, 943, 168
94, 630, 318
86, 022, 770
74, 976, 973
70, 054, 123
67, 275, 425
65, 167, 548
Percent of
Total City
Taxable
Assessed
Value

4. 12%

3. 72%

3. 24%

2. 17%

1. 55%

1. 41%

1. 23%

1.5%

1.0%

1. 07%
Source: County of San Joaquin, California, Office of the County Assessor. 2014
Taxable
Assessed
Value
57, 418, 806
47, 626, 291
Percent of
Total City
Taxable
Assessed
Value

0.0%

2. 93%

0.0%

2. 43%

0.0%

0.0%
190
292

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 (1) School ( 2) All Other Total Rate 2014 1. 00000% 0.9250% 0.0000% 1. 09250%
2015 1. 00000% 0.9230% 0.0000% 1. 09230%
2016 1. 00000% 0. 14200% 0.0000% 1.4200%
2017 1. 00000% 0. 12820% 0.0000% 1.2820%
2018 1. 00000% 0. 13030% 0.0000% 1.3030%
2019 1. 00000% 0. 12280% 0.0000% 1.2280%
2020 1. 00000% 0. 11400% 0.0000% 1.1400%
2021 1. 00000% 0. 10490% 0.0000% 1.0490%
2022 1. 00000% 0. 13820% 0.0000% 1.3820%
2023 1. 00000% 0. 13660% 0.0000% 1.3660%
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' sportion varies by several Tax Rate Areas (TRAs) within the City.

Source: San Joaquin County Assessor 2011/ 12 - 2020/1 Tax Rate Table 191
293

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
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% 5. 25% 9. 00% 2017 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2018 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2019 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2020 1. 00% 0. 50% 1. 00% ** 0. 25% 1.00% 5. 00% 8. 75% 2021 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2022 1. 00% 0. 50% 1. 00% ** 0. 25% 1. 00% 5. 00% 8. 75% 2023 1. 00% 0. 50% 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 amendment and the expiration date of this 1. 00% increase was on July 1, 2011.

On November 6, 2012 the voters of Lathrop approved Measure C. Measure C is an additional 1: sales tax to be used for Public Safety and essential City services
Source: City of Lathrop, California Finance Department
County of San Joaquin, California, Office of the Auditor -Controller 192
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CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2014 2015 2016 2017
Gross Assessed Valuation
Debt Margin Ratio ( 1)
Debt Margin ( Limit)
Less: total net debt applicable to limit:

General obligation bonds
1, 962, 577, 631 $ 2, 162, 599, 293 $ 2, 373, 117, 607 $ 2, 710, 640, 553

3. 75% 3. 75% 3. 75% 3. 75%
73, 596, 661 $ 81, 097, 473 $ 88, 991,10 $ 101, 649, 021 Net Legal Debt Margin $ 73, 596, 661 $ 81, 097, 473 $ 88, 991,10 $ 101, 649, 021 Total debt applicable to the the limit
as a percentage of debt limit
Notes
0% 0% 0% 0%
1) The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981- 82 fiscal year, each parcel is now assessed at 100% of market value ( as of the most recent change in ownership for that parcel.) The computation shown above reflects a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

The limit shown is 3. 75% ( one- fourth of the previous limit of 15%).

Source: City of Lathrop, California Finance Department and the County of San Joaquin, California, Office of the Controller 194
296

CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2018 2019 2020 2021 2022 2023
3, 103, 337, 856 $ 3,14, 685, 968 $ 3, 843, 259, 098 $ 4,35, 798, 404 $ 5, 107, 980, 342 $ 6, 112, 688, 748

3. 75% 3. 75% 3. 75% 3. 75% 3. 75% 3. 75%
116, 375, 170 $ 124, 300, 724 $ 144,22, 216 $ 166, 342, 440 $ 191, 549, 263 $ 229,25, 828 116, 375, 170 $ 124, 300, 724 $ 144,22, 216 $ 166, 342, 440 $ 191, 549, 263 $ 229,25, 828 0% 0% 0% 0% 0% 0%
195
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CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Governmental Activities Business -type Activities
Total
Fiscal Capital Leases Governmental Water Revenue Certificates of PNC Bank Year ( 1) Activities Bonds Notes Participation Loan ( 2) 2014 6, 865, 382 6, 865, 382 12, 970, 000 5, 667, 004
2015 6, 599, 319 6, 599, 319 12, 635, 000 5, 373, 806
2016 4, 190, 000 4, 190, 000 12, 635, 000 5, 070, 256
2017 3, 925, 000 3, 925, 000 11, 455, 000 ( 4) 4, 755, 863 2018 3, 640, 000 3, 640, 000 10, 846, 145 4,30,88
2019 3, 640, 000 3, 640, 000 10, 207, 524 4, 093, 638
2020 3,50, 000 3,50, 000 9, 550, 312 3, 744, 895
2021 3, 050,0 3, 050,00 8,73, 969 3,83, 839
2022 2, 745, 000 2, 745, 000 8, 177, 936 3, 010,37
2023 2, 430, 000 2, 430, 000 7, 461, 642 2, 623, 175
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
196
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CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Business - type Activities
State Percentage
Revolving Capital Total Business- Total Primary of Personal Debt Per Fund Loan Leases type Activities Government Income Capita ( 3) 8, 956, 038 27, 593, 042 34, 458,24 105.3% 1, 742
8, 562, 968 26, 571, 774 33, 171, 094 93. 63% 1, 500
8, 160, 773 25, 866, 029 30, 056,29 82. 47% 1, 301
7,49, 237 23, 960, 100 27, 885, 100 69. 04% 1,49
7, 328, 146 22, 604, 779 26,44, 779 57. 43% 1, 081
6, 897, 278 21, 198, 440 24, 838, 440 47. 89% 996
6, 456,06 19, 751, 613 23, 101, 613 44. 54% 861
6, 005, 297 18, 263, 105 21, 313, 105 37. 65% 748
5,54, 128 16, 742, 101 19, 487, 101 30. 87% 622
5, 071, 412 15,56, 229 17, 586, 229 21.2% 501
197
299

CITY OF LATHROP
Computation of Direct and Overlapping Debt
June 30, 2023
FY 2022/3 City Assessed Valuation $ 6, 112, 688, 748
Redevelopment Agency Incremental Valuation $ -
Adjusted Assessed Valuation $ 6, 112, 688, 748
Overlapping Tax and Assessment Debt
Percentage
Applicable to
Total Debt City of City' s Share of
6/ 30/ 23 Lathrop ( 1) Debt 6/ 30/ 223
San Joaquin Delta Community College District $ 175, 675, 000 5. 682% $ 9,81, 854 Manteca Unified School District 211, 129, 885 22. 065% 46, 585, 809 Tracy Unified School District 28, 805, 000 0.01% 288
Banta School District 320, 00 72. 673% 232, 554
Manteca Unified School District Community Facility District No. 1989- 2 17, 655, 000 20. 749% 3, 663, 236 Manteca Unified School District Community Facility District No. 2005- 4 4, 755, 000 100. 000% 4, 755, 000 Banta School District Community Facilities District No. 2011- 1 3, 260, 000 100. 000% 3, 260, 000 River Islands Public Financing Authority Community Facilities District No. 2003- 1 344, 155, 000 100. 000% 344, 155, 000 River Islands Public Financing Authority Community Facilities District No. 2015- 1 185,10, 000 100. 000% 185,10, 000 River Islands Public Financing Authority Community Facilities District No. 2016- 1 48, 530, 000 100. 000% 48, 530, 000 River Islands Public Financing Authority Community Facilities District No. 2019- 1 63, 205, 000 100. 000% 63, 205, 000 River Islands Public Financing Authority Community Facilities District No. 2021- 1 35, 640, 000 100. 000% 35, 640, 000 City of Lathrop Community Facilities District No 2003- 1 3, 465, 000 100. 000% 3, 465, 000 City of Lathrop Community Facilities District No 2003- 4, 715, 000 100. 000% 4, 715, 000 City of Lathrop Community Facilities District No 2018- 1, I.A. s 1- 5 45, 510, 000 100. 000% 45, 510, 000 City of Lathrop 1915 Act Bonds 21, 010,00 100. 000% 21, 010,00 Reclamation District No. 17 Assessment District 20, 515, 719 56. 199% 11, 529, 629 California Statewide Community Development Authority 1915 Act Bonds 1, 867, 000 100. 000% 1, 867, 000 Total Overlapping Tax and Assessment Debt $ 1, 215, 322, 604 $ 833, 215, 369 Ratios to FY 2022/3 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 13. 63%
Direct and Overlapping General Fund Obligation Debt
San Joaquin County Certificates of Participation
Manteca Unified School District General Fund Obligations City of Lathrop General Fund Obligations
Lathrop - Manteca Rural Fire Protection District Certificates of Participation Total Direct and Overlapping General Fund Debt
Total Direct Debt
Total Overlapping Debt
Combined Total Debt
54, 940, 000
13, 979, 000
2, 430, 000
3, 410, 000

6. 151% 3,79,59

22. 065% 3, 084, 466
100. 000% 2, 430, 000

78. 570% 2, 679, 237
11, 573, 063
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 0.4%
Combined Total Debt 13. 82%
Source: California Municipal Statistics, Inc.
2, 430, 000
842, 358, 432
844, 788, 432
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199
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CITY OF LATHROP
Pledged - Revenue Coverage
Last Ten Fiscal Years
2000 Certificates of Participation/ PNC Bank Loan ( 1)
Debt Service
Less Net
Fiscal Water Operating Available
Year Revenue ( 3) Expenses ( 4) Revenue Principal Interest Coverage 2014 7, 884,87 3, 815, 990 4, 068, 897 283, 199 205, 801 8. 32 2015 6,42, 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, 40 5. 94 2017 7, 834,87 4, 366, 161 3, 468, 726 314,93 174, 733 7. 09 2018 8, 491, 689 4, 969, 618 3, 522, 071 325,63 163, 67 7. 20 2019 9, 212, 760 6, 303, 489 2, 909, 271 336, 850 152,50 5. 95 2020 10, 949, 739 5,39, 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, 591,91 4, 172, 266 373, 803 115,97 8. 53 2023 11, 085, 970 8, 667, 182 2, 418, 788 386, 82 101, 900 4. 95 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' swere refunded by the PNC Bank Loan on May 4, 2012.

The Required Debt coverage ratio for the PNC Bank Loan is 1.0%. 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:

Fund:

Fund:
5620-- 480- 01-
5650-- 480- 01-
City of Lathrop, California Finance Department
200
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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, 579, 897 680, 00 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 2.1
3, 033,71 421, 091 926, 699 2.5
2, 420, 271 1, 069, 489 475, 545 1. 57
4, 921, 511 1, 093,53 451, 981 3. 19
3, 535, 353 1,22, 305 422, 79 2.9
3, 683, 266 1,52, 348 392, 686 2. 38
1, 930, 026 1,93, 631 361, 403 1. 24
201
303

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)
2013 19, 831 330, 960 16, 689 9.4%
2014 19, 786 327, 75 16, 566 10. 3%
2015 22, 112 354, 280 16, 022 8.5%
2016 23, 110 364, 434 15, 769 7.8%
2017 24,68 403, 896 16, 643 6.3%
2018 24, 936 457, 006 18, 327 5.2%
2019 26, 833 518, 675 19, 329 4.3%
2020 28, 503 566, 02 19, 859 9.6%
2021 31,31 631, 164 20, 145 8.4%
2022 35, 080 828,00 23, 625 5.1%
Sources: ( 1) California State Department of Finance
2) 2010 and later- Income, Age and Education Data - US Census Bureau, most recent American Community Survey
202
304

CITY OF LATHROP
Principal Employers
Current Year and Nine Years Ago
Employer
Testa
United Parcel Service ( UPS)
Pflug Packaging
Army Air Force Exchange Services
Wayfair
Super Store Industries ( SSI)
Simwon America
California Natural Products ( CNP)
MUSD ( Lathrop Schools)
In -N -Out Burger
BUSD ( R. I. Academies)
CBC Steel Buildings
Ashley Furniture
Target
Diamond Pet Foods
City of Lathrop
2023
Number of
Employees
3600
1500
450
400
400
390
388
384
352
300
261
220
190
172
163
158
Percent of
Total
Employment

26. 38%

10. 99%

3.0%

2. 93%

2. 86%

2. 84%

2.81%

2. 58%

2.0%

1. 91%

1. 61%

1. 39%

1. 26%

1.9%

1.6%
2014
Number of
Employees
Percent of
Total
Employment
0 0.0%
30 0. 45%
275 4. 13%
0 0.0%
0 0.0%
401 6. 02%
0 0.0%
250 3. 75%
235 3. 53%
50 0. 75%
38 0. 57%
100 1. 50%
0 0.0%
156 2. 34%
100 1. 50%
118 1. 77%
Total Employment" as used above represents the Estimated total employment of all employers located within City limits.

Source: California Labor Market Information, California EDD Website ( www. ca. gov) City of Lathrop Community Development Department
203
305

CITY OF LATHROP
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018
General Government 23. 40 23. 60 24. 60 23. 60 23. 60
Public Safety ( 1) 32. 00 36. 98 36. 98 37. 98 35. 98
Public Works 21. 83 22. 83 29. 50 30. 80 33. 80
Community Development 8. 34 6.7 4. 00 3. 10 4. 10
Culture & Leisure 18. 41 20. 76 21. 00 20. 56 21. 01
Total Positions 103. 98 110. 84 116. 08 116. 04 118. 49 1) In June of 2022 the City launched its own police department. San Joaquin County Sheriff provided police protection prior to June 2022
Fire Service is provided by Lathrop Manteca Fire District.

Source: City of Lathrop, California Annual Adopted Budgets. 204
306

CITY OF LATHROP
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
2019 2020 2021 2022 2023

24. 60 26. 60 28. 63 30. 63 35. 25

36. 98 36. 98 36. 98 53. 68 57. 00

40.7 40.7 42.7 45.7 44. 65

4.3 4.3 4.0 5. 40 4. 10

21. 01 21. 01 28. 60 30. 60 36. 45
127. 49 129. 49 141. 08 165. 78 177. 45
307

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

Arrests 489 708 572 705 550 558 554 624 *
Parking Citations Issued 380 444 696 1, 385 1, 084 1, 389 1, 237 1, 489 * Code Enforcement
Housing Cases 20 35 29 28 54 74 64 55 62
Public Nuisance Cases 61 206 287 345 204 126 165 210 176 Vehicle Cases 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 130 350 220 291 392 381 649 879 924 Parks and recreation:

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

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

New connections 190 266 179 163 392 381 649 879 924
Transition to City of Lathrop, Police Department
Source: City of Lathrop, California departmental sources. 206
308

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

Stations 1 1 1 1 1 1 1 1
Fire:

Fire Stations ( 1)
Public works:

Streets ( miles) 82.0 84. 20 84. 20 84. 20 92.0 92.0 97.0 109. 70 Streetlights 1, 433 1, 448 1, 472 1, 472 1, 835 1, 835 1, 835 2, 135 Parks and recreation:

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

Water mains ( miles)
Maximum daily capacity
thousands of gallons)

99. 60 101. 80 101. 80 101. 80 101. 80 142. 00 147. 00 159. 00 15, 250 15, 250 15, 250 15, 250 15, 250 16, 500 16, 500 16, 500 Wastewater:

Sanitary sewer (miles) 62. 03 71. 00 71. 00 71. 00 71. 00 91. 80 96. 80 108. 80 Miles of Reclaimed Water Lines 21. 40 21. 80 21. 80 21. 80 21. 80 21. 80 25. 80 27. 80 Maximum daily treatment capaci• 2, 416 2,00 2,00 1, 450 1, 450 3, 140 3, 140 3, 140 thousands of gallons)
NOTE:
1) The City of Lathrop' sfire protection is provided by the Lathrop - Manteca Fire District. 2) Soure: City of Lathrop, Parks and Recreation Guide
Source: City of Lathrop, California departmental sources. 207
309

CITY OF LATHROP
Water Sold by Type of Customer
Last Ten Fiscal Years
in thousands of gallons)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Type of Customer:

Residential 690, 963 671, 095 628, 208 625, 187 745, 39 738, 530 794, 181 907, 150 939, 163 950, 154 Industrial 291, 935 343, 21 283, 410 278, 95 395, 110 415,71 406, 181 435, 637 433, 258 530, 793 Commercial 116, 496 91, 599 71, 396 101, 549 139, 20 135,30 145,95 152, 476 157, 053 150, 318 Governmental 157,19 172, 972 177, 791 139, 511 149, 952 126, 71 144, 421 199, 28 187, 615 154, 425 Construction 39, 058 1, 615 49, 923 103, 309 91, 038 85, 601 36, 154 39,57 17,22 Total 1, 295, 571 1, 280, 512 1,60, 805 1,95,55 1, 533, 020 1, 506, 930 1, 575,79 1, 730, 715 1, 756, 446 1, 802,12 Total direct rate
per 1, 000 gallons $ 2. 63 $ 2. 63 $ 3. 04 $ 3. 49 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 $ 3. 99 Source: City of Lathrop, California Public Works Department 208
310

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) 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
2023 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
209
311

CITY OF LATHROP
Ten Largest Water Customers
Current Year and Nine Years Ago
2023 2014
Water Customer
Percent of
Water Total Water Percent of Total
Charges Revenues Water Charges Water Revenue
California Natural Products $ 933, 64 8.0% $ 562, 213 10. 75% City of Lathrop 595, 124 5. 61% 325, 80 6. 23%
Manteca Unified School District 235, 136 3. 63% 172, 953 3.1% Super Store Industries 139, 814 1. 32% 104, 619 2. 00%
River Islands Public Finance Authority 65, 307 0. 62% 30, 269 0. 58% Testa Motors Inc 64, 259 0. 61% 0.0%
Pulte Group, INC 55, 290 0. 52% 0.0%
Sansome Skyline Lathrop, LP 52, 145 0. 49% 0.0%
Swiss American Sausage 50, 766 0. 48% 41, 742 0. 80%
IN -N -OUT Burger # 804 50, 326 0. 47% 0.0%
Source: City of Lathrop, California Finance Department
210
312

CITY OF LATHROP
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
2023
Business Name Business Category
Percent of Fiscal Year Total Paid By Top 25 Accounts = 84. 40% Arco AM PM
Ashley Furniture Dist Center
Boral Roofing
CBC Steel Buildings
Chevron
Chevron Power Market
City Food & Liquor
Eagles Nest Harley Davidson
Fast Lane
Flying J Travel Plaza
In N Out Burger
Joes Travel Plaza
Pape Kenworth
Raymond Handling Concepts
Shell
Target
Tec Equipment
Testa Motors
Top Gun Drywall Supply
Totten Tubes
Tri West
Tuff Boy Sales
Two Guys Food & Fuel Inc
Utility Trailer Sales
Wayfair
Service Stations
Fulfillment Centers
Contractors
Contractors
Service Stations
Service Stations
Convenience Stores/ Liquor
Boats/ Motorcycles
Service Stations
Service Stations
Quick - Service Restaurants
Service Stations
New Motor Vehicle Dealers
Warehse/ Farm/ Const. Equip.

Service Stations
Discount Dept Stores
Trailers/ Auto Parts
Trailers/ Auto Parts
Building Materials
Heavy Industrial
Building Materials
Trailers/ RVs
Service Stations
Trailers/ RVs
Fulfillment Centers
2014
Business Name Business Category
Percent of Fiscal Year Total Paid By Top 25 Accounts = 85. 77% Antonini Brothers
Carpenter Co
CBC Steel Buildings
Creative Touch Interiors
Dragon Products
Eagles Nest Harley Davidson
Fast Lane Food/ Gas Mart
Fleetpride West
Joes Travel Plaza
JR Simplot Company
Kabaritis AM PM
Lathrop Gas & Food
Lathrop Shell
McDonalds
Medcal Sales
Nationwide Fleet Powersports
Owens & Minor Distribution
Save Mart
Target
Top Gun Drywall Supply
Tower Mart
USAMotors. Com
Utility Trailer Sales
Valero
Walgreens
Service Stations
Textiles/ Furnishings
Heavy Industrial
Home Furnishings
Heavy Industrial
Boats/ Motorcycles
Service Stations
Trailers/ Auto Parts
Service Stations
Food Service Equip./ Spplies
Service Stations
Service Stations
Service Stations
Quick Service Restaurants
Medical/ Biotech
Boats/ Motorcycles
Medical/ Biotech
Grocery Stores Liquor
Discount Dept Stores
Lumber/ Building Materials
Service Stations
Used Automotive Dealers
Trailers/ RVs
Service Stations
Drug Stores
Firms Listed Alphabetically
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller' sOffice. 211
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ITEM 4. 6

CITY MANAGER' SREPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE OUT OF STATE TRAVEL FOR THE CHIEF OF

POLICE TO ATTEND THE INTERNATIONAL
ASSOCIATION OF CHIEFS OF POLICE ( IACP) 2024

CONFERENCE AND EXPOSITION IN BOSTON, MA
RECOMMENDATION: Adopt Resolution Authorizing the Chief of Police to Attend the International Association of Chiefs of
Police ( IACP) 2024 Annual Conference and
Exposition in Boston, MA, October 19 — 22, 2024
SUMMARY:

The International Association of Chiefs of Police ( IACP) Conference is the world' s largest and most impactful law enforcement event of the year. More than 16, 000 public safety professionals attend this event to learn new techniques, advance their knowledge and careers, and equip their departments for ongoing success.

The City of Lathrop' s Travel Policy, staff requires City Council' s approval for out of state travel. Therefore, staff is requesting approval for the Chief of Police to attend and represent the City of Lathrop at the 2024 IACP Conference and Exposition to be held in Boston, Massachusetts, from October 19, 2024 through October 22, 2024.

Additionally, attendance to this conference will allow the Chief of Police to remain informed and up to date on the latest public safety tactics and technology. The estimated cost to attend this conference is approximately $ 6, 200, which includes registration for conference activities, hotel, airfare, transportation, meals, and minor incidentals. Sufficient funds are currently available in the approved Police Department training and travel budget for FY 2023-4.

BACKGROUND:

The International Association of Chiefs of Police ( IACP) Conference is the world' s largest and most influential professional association for police leaders. With more than 33, 000 members in over 170 countries, the IACP is a recognized leader in
global policing, committed to advancing safer communities through thoughtful progressive police leadership. The IACP is known for its commitment to enhancing community safety by shaping the future of the police profession. The IACP is preparing current and emerging police leaders, and the agencies and communities they serve, to succeed in addressing the most pressing issues, threats, and challenges of the day.
315
CITY MANAGER' SREPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVAL FOR THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE IACP) 2024 EXPOSITION AND CONFERENCE TRIP TO BOSTON, MA Staff requests City Council approve the out-f- state travel for the Chief of Police to attend the 2024 IACP Conference and Exposition, in Boston, MA, from October 19, 2024 to October 22, 2024. The estimated cost is approximately $ 6, 200, which includes registration for conference activities, hotel, airfare, transportation, meals, and minor incidentals. Sufficient funds are currently available in the approved Police Department training and travel budget for FY 2023-4.

REASON FOR RECOMMENDATION:

Conferences like the IACP Conference provide opportunities to stay abreast of the latest innovations available to law enforcement in a combination of hands- on exhibits, live demonstrations and educational displays designed to see and test the latest and emerging technology trends available. It is important to ensure we are using the highest quality products and most cost effective materials.

FISCAL IMPACT:

The estimated cost to attend the IACP 2024 Exposition and Conference is approximately $ 6, 200. Sufficient funds are currently available in the approved Police Department training and travel budget for FY 2023-4.

ATTACHMENTS:

A. Resolution Authorizing Out of State Travel for the Chief of Police to Attend the International Association of Chiefs of Police ( IACP) in Boston, Massachusetts.

B. IACP Conference 2024 Registration Information
C. IACP Conference 2024 Schedule at -a -Glance
316
CITY MANAGER' SREPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVAL FOR THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE IACP) 2024 EXPOSITION AND CONFERENCE TRIP TO BOSTON, MA APPROVALS:
phen Se
Chief Poll
Cari Jame
Finance Direct
3/ /2-02.( f
Date
Jb/ 400
Date
3 /'I Zo1 j
Thomas Hedegard - Date
Deputy City Manages
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
317
RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO

AUTHORIZE OUT OF STATE TRAVEL FOR THE CITY CHIEF OF POLICE TO

ATTEND THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE ( IACP) IN BOSTON, MASSACHUSETTS, OCTOBER 19 — 23, 2024
WHEREAS, the IACP is the world' s largest and most impactful law enforcement event of the year for law enforcement professionals; and WHEREAS, the IACP offers the latest public safety tactics, including modern technologies, live equipment demonstrations, and educational displays; and WHEREAS, with the continued growth of the city, keeping City staff informed and up to date with the latest tactical equipment and intelligence technology are important to ensure staff is using the highest quality and most cost effective materials; and
WHEREAS, staff is requesting out of state travel approval for the Chief of Police to attend the IACP 2024 Exposition and Conference to be held in Boston, Massachusetts from October 19, 2024 through October 23, 2024; and WHEREAS, the estimated cost to attend the IACP 2024 Exposition and Conference is approximately $ 6, 200, and sufficient funds are currently available in the approved Police Department training and travel budget for FY 2023-4.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop authorize the out of state for the Chief of Police to attend and represent the City of Lathrop at the 2024 IACP Conference and Exposition to be held in Boston, Massachusetts, from October 19, 2024 through October 22, 2024.

The foregoing resolution was passed and adopted this 11th day of March 2024, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TOORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 318
3/ 5/ 24, 3: 04 PM Registration and General Event Information - IACP Conference 2024 Rules for Participating
Attachment B
Photo, Image, and Recording Disclaimer
IACP 2024 Registration Rates
Category*
Advance Registration
On and after September 5, 2024
On or Before September 4, 2024
IACP Member - Full Conference
First Time IACP Member —
Full Conference
500
445
Non -Member - Full Conference $ 700
Family Member
6- 18
5 and under
Expo Hall Only
One -Day Pass Not Available $ 160
Two -Day Pass Not Available $ 235
Annual Banquet Ticket $ 125
600
545
See Terms
Return to top
Refund Policy
150
45 Free
Free
850
https:// www. theiacpconference. org/ attend/ registration- information/# site- navigation 2/ 4 319
3/ 5/ 24, 3: 03 PM Schedule at -a -Glance - IACP Conference 2024 Attachment C IACP 2024 Schedule at -a -Glance
Thursday, October 17
E -Badge Check -in Open
Exhibitor Registration Open
Friday, October 18
Exhibitor Registration Open
Committee/ Section/ Division
Meetings
Delegate Registration Open
Saturday, October 19
Delegate and Exhibitor
Registration Open
Committee/ Section/ Division
Meetings
Opening Ceremony
Education Workshops
Sunday, October 20
Delegate and Exhibitor
Registration Open
Education Workshops
Committee/ Section/ Division
Meetings
Exposition Hall Open
Exposition Hall Networking Event
Monday, October 21
Delegate and Exhibitor
Registration Open
Committee/ Section/ Division
Meetings
Education Workshops
Time
8: 00 a. m. - 5: 00 p. m.
1: 00 p. m. - 5: 00 p. m.

Time
7: 30 a.m. - 6: 00 p. m.
10: 00 a.m. - 6: 00 p. m.
1: 00 p. m. - 6: 00 p. m.

Time
7: 00 a. m. - 5: 30 p. m.
8: 00 a. m. - 5: 00 p. m.
9: 30 a. m. -10: 30 a. m.
11: 00 a. m. - 5: 00 p. m.

Time
7: 00 a. m. - 5: 30 p. m.
8: 00 a. m. - 3: 00 p. m.
8: 00 a. m. - 5: 00 p. m.
10: 00 a. m. - 5: 00 p. m.
3: 00 p. m. - 5: 00 p. m.

Time
7: 30 a. m. - 5: 30 p. m.
8: 00 a. m. - 5: 00 p. m.
8: 00 a. m. - 5: 00 p. m.

Location
BCEC
BCEC
Location
BCEC
Various Locations
BCEC
Location
BCEC
Various Locations
BCEC
BCEC
Location
BCEC
BCEC
Various Locations
BCEC
BCEC
Location
BCEC
Various Locations
BCEC
https:// www. theiacpconference. org/ schedu le- at--glance/# site- navigation 2/ 4 320
3/ 5/ 24, 3: 03 PM Schedule at -a -Glance - IACP Conference 2024 IACP 2024 Schedule at -a -Glance
General Assembly
Exposition Hall Open
IACP' sChiefs Night
Tuesday, October 22
Delegate and Exhibitor
Registration Open
Education Workshops
Committee/ Section/ Division
Meetings
Closing General Assembly
Exposition Hall Open
Annual Banquet Reception and
Dinner (Ticket Required)
The schedule is subject to change.

Updated January17, 2024.
10: 00 a. m. -11: 00 a. m.
10: 00 a.m. - 5: 00 p. m.
7: 00 p. m. - 10: 00 p. m.

Time
7: 30 a. m. - 3:0 p. m.
8: 00 a. m. - 4: 30 p. m.
8: 00 a. m. - 5: 00 p. m.
10: 00 a. m. -11: 00 a. m.
10: 00 a. m. - 2: 00 p. m.
6: 00 p. m. - 9: 00 p. m.

BCEC
BCEC
TBD
Location
BCEC
BCEC
Various Locations
BCEC
BCEC
BCEC
https:// www. theiacpconference. org/ sched ule- at--gI ance/# site- navigatio n 3/ 4 321

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ITEM 4. 7

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM:

RECOMMENDATION:

APPROVE OUT OF STATE TRAVEL FOR TWO

CITY ISD ENGINEERS TO ATTEND THE DEFCON
32 CONFERENCE IN LAS VEGAS, NEVADA
Adopt a Resolution Approving Out -Of -State
Travel for Two City ISD Engineers to Attend the
Defcon 32 Conference in Las Vegas, Nevada
from August 8 —11, 2024
SUMMARY:

Defcon is an international annual convention where cyber security engineers join together in workshops, events and talks to collaborate on cyber security. For over three decades this conference has hosted the largest network of individuals working together to enhance the procedures and tools used for cyber security. Staff will greatly benefit from the knowledge gained from information sharing and participation in the workshops and events.

This out of state conference aligns with the goals of enhancing the City' s Cybersecurity posture while utilizing the latest technology to mitigate potential threats and malicious activities in the City' s network systems. Staff is requesting City Council approval for out of state travel, enabling City staff to attend Defcon 32 in Las Vegas, Nevada, from August 8th through August 11th, 2024, with an estimated cost of $ 5, 000.

BACKGROUND:

Defcon 32 is an ideal environment for cyber security engineers to come together and learn about new products, technical advances, and the sharing of knowledge. This IT experience will feature new innovations in security, networking, and collaboration.

Technology changes very fast, and it is critical that City ISD Engineers stay up- todate on the latest developments in technology, how to properly utilize the technology, and how to secure the technology. City staff will learn from other organizations about what they are doing in their environments and how to better optimize the City' s security infrastructure.

Defcon will feature a series of workshops, events, and talks to engage the engineers in a variety of ways on the innovations of technology regarding cyber security. These will be essential for City ISD Engineers to learn more about the latest technology, software and procedures for keeping the City' s network secure and safe from potential malicious activities or threats.

Staff is requesting for City Council to approve the out of state travel for City staff to attend the Defcon 32 conference in Las Vegas, Nevada from August 8th, through August 11th, 2024, in the estimated amount of $ 5, 000. 323
CITY MANAGER' S REPORT: MARCH 11, 2024 PAGE 2

APPROVE OUT OF STATE TRAVEL FOR TWO CITY ISD ENGINEERS TO ATTEND THE DEFCON 32 CONFERENCE IN LAS VEGAS, NEVADA
REASON FOR RECOMMENDATION:

This out of state conference is recommended as it aligns with the City' s objectives to bolster its cybersecurity posture by leveraging cutting - edge technology, enhancing the safety of the city' s network systems against potential threats and malicious activities.

FISCAL IMPACT:

There are sufficient funds within the GL 1010-7- 20- 435- 00 FY 24/5 for this training and travel expense.

ATTACHMENTS:

A. Resolution Approving Out Of State Travel for Two City ISD Engineers to Attend the Defcon 32 Conference in Las Vegas, Nevada from August 8th through August 11th, 2024.
324
CITY MANAGER' S REPORT: MARCH 11, 2024 PAGE 3

APPROVE OUT OF STATE TRAVEL FOR TWO CITY ISD ENGINEERS TO ATTEND THE DEFCON 32 CONFERENCE IN LAS VEGAS, NEVADA
APPRO
Cis • V' CIP(
rrnandes Date
Information Systems Director
Cari Jam
Finance irector
Michael King
Assistant City Manager
3/ e//. 2o(-
Date
Date
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore
City Manager
3•y•Zovl
2- Y
3• Co • 7.4'
Date
325
RESOLUTION NO. 24 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO

APPROVE OUT OF STATE TRAVEL FOR TWO CITY ISD ENGINEERS TO ATTEND THE DEFCON 32 CONFERENCE IN LAST VEGAS, NEVADA
WHEREAS, Defcon is an international annual convention where cyber security engineers join together in workshops, events and talks to collaborate on cyber security; and
WHEREAS, this technical experience will feature innovations in networking, cybersecurity, and collaboration; and
WHEREAS, City Engineers learn from other organizations about their practices in different environments, enhancing their ability to optimize the City' s network infrastructure and cybersecurity; and
WHEREAS, this out-f- state conference aligns with the goals of enhancing the City' s Cybersecurity posture while utilizing the latest technology to mitigate potential threats and malicious activities in the City' s network systems; and WHEREAS, this training will be essential for City ISD Engineers to learn more about the latest technology, software and procedures for keeping the City' s network secure and safe from potential malicious activities or threats; and WHEREAS, staff is requesting City Council approval for out of state travel, enabling City staff to attend Defcon in Las Vegas, Nevada, from August 8th through August 11th, 2024, with an estimated cost of $ 5, 000 and WHEREAS, there are sufficient funds within the GL 1010-7- 20- 435- 00for this training and travel.

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby approve the out of state travel to attend Defcon 32 in Las Vegas, Nevada from August 8th through August 11th, 2024. 326
The foregoing resolution was passed and adopted this 11th day of March 2024, 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 327
FAQ
as
11 0
o
Home Recent News
Freqamtly asked quests about DEF EON
What is DEF CON?
Archives » Rbout 4
DEF CON is one of the oldest continuously running hacker conventions around, and also one of the largest.

How did DEF CON start?
Originally started in 1993, it was a meant to be a party for member of Platinum Net", a Fido protocol based hacking network out of Canada. As the main U. S. hub I was helping the Platinum Net organizer ( I forget his name) plan a closing party for all the member BBS systems and their users. He was going to shut down the network when his dad took a new job and had to move away. We talking about where we might hold it, when all of a sudden he left early and disappeared. I was just planning a party for a network that was shut down, except for my U. S. nodes. I decided what the hell, I'll invite the members of all the other networks my BBS (A Dark Tangent System) system was a part of including Cyber Crime International ( CCI), Hit Net, Tired of Protection ( ToP), and like 8 others I can' tremember. Why not invite everyone on # hack? Good idea!
Where did the name come from?
The short answer is a combination of places. There as a SummerCon in the summer, a HoHoCon in the winter, a PumpCon during Halloween, etc. I didn' t want any association with a time of year. If you are a Phreak, or just use your phone a lot you' ll notes " DEF" is # 3 on the phone. If you are into military lingo DEF CON is short for "Defense Condition." Now being a fan of the movie War Games I took note that the main character, David Lightman, lived in Seattle, as I do, and chose to nuke Las Vegas with W. O. P. R. when given the chance.

Community» Resources * SUBMIT!
OFF [ 0N Sites
Forums Groups Media
Server
The Goods
SHOP.

OREGON.

ORG
InfoCon. org
Source
Knowledge
Official Swag Conference Recordings
Torrents Page
Past Media

DEF CON
Media Server
InfoCon. org
328
Well I knew I was doing a con in Vegas, so it all just sort of worked out.

There are several resources that will give you an idea of what DEF CON is all about.

DEF CON Press: through the prism of the media
DEF CON Groups: Local groups that meet
DEF CON Media Server: DC 1 to the present, captured
Google: always a good research starting point
Just remember, DEF CON is what you make of it.

When and where is DEF CON?
DEF CON is generally in the last week of July or first week of August in Las Vegas. DEF CON 32 will be held August 8th through August 11th, 2024.

Many people arrive a day early, and many stay a day later.

Isn' tthere a DEF CON FAQ already?
Yes, an unofficial one. It' s quite humorous, sometimes informative, and DEF CON takes no responsibility for its content. It is archived here.

What are the rules of DEF CON?
Physical violence is prohibited. Harassment of any kind is prohibited. We don' tsupport illegal drug use. Minors should be accompanied by their parent( s) or guardian( s). Please refrain from doing anything that might jeopardize the conference or attendees such as lighting your hair on fire or throwing lit road flares in elevators. DEF CON Goons are there to answer your questions and keep everything moving. Hotel security is there to watch over their property. Each has a different mission, and it is wise to not anger the hotel people. Please be aware that if you engage in illegal activities there is a large contingency of feds that attend DEF CON. Talking about how you are going to bomb the RNC convention in front of an FBI agent is a Career Limiting Move!
You can view the DEF CON Code of Conduct at
https:// defcon. org/ html/ links/ dc- code- of conduct. html.

Is DEF CON cancelled?
329
No.

What is there to do at DEF CON?
DEF CON is a unique experience for each con -goer. If you google around you' ll find dozens of write- ups that will give you an idea of what people have experienced at DEF CON. Trust write- ups more than media articles about the con. Some people play capture the flag 24x7, while many people never touch a computer at DEF CON. Some people see every speech they can, while others miss all speeches. Other activities include contests, movie marathons, scavenger hunts, sleep deprivation, lock picking, warez trading, drunken parties, spot the fed contest, the official music events. Because DEF CON is what the attendees make of it, there are more events than even we are aware of. Half the fun is learning what happened at DEF CON after the fact! I'm not a hacker, should I go to DEF CON?
Many people have different definitions of what is a ' hacker'. I would recommend looking at previous years speeches, and write- ups from past attendees - this should give you a good idea if DEF CON is for you. This hacker FAQ might give you some insight into the matter as well. If you do not have any technical interests, DEF CON is probably not for you. Sure there is a lot of socializing you can do, but technology and hacking is the core of the con.

Do criminals go to DEF CON?
Yes. They also go to high school, college, work in your workplace, and the government. There are also lawyers, law enforcement agents, civil libertarians, cryptographers, and hackers in attendance. Ssshhh. Don' ttell anyone.

What are Goons?
They are the staff at DEF CON. They have many roles including safety, speaker coordination, vendor room coordination, network operations, et cetera... Please try to be helpful to them if they make requests of you. If any goon tells you to move, please do so immediately as there may be safety issues they are attempting to address.
330
How can I help out or become a Goon?
The staff at DEF CON has grown organically. All positions have some degree of trust associated with them, so typically new goons are ' inducted' by friends of existing goons. There are many random points when goons need help and may ask people for help, generally for helping move stuff or other tasks that don' t
require high amounts of trust or unsupervised work. Just because you help out doesn' tmake you a goon. If you really want to be a goon, talk with one and see how much work they actually do (Hint: you may want to enjoy being at DEF CON, not working full- time at it). One year the network group got a new Goon when a networking engineer was needed, and he came to the rescue. The intent behind the goons is not to be elitist, but to have a network of trusted people who can help run the conference - please do not feel upset if you are not chosen to be a goon.

How can I help or participate?
DEF CON is not a spectator sport! Before the con, during, and after there are chances for you to get involved. Before the con you can read about the contests and maybe sign up for one like Capture the Flag. There are artwork contests for shirts and posters. You can practice your lock pick skills, or just get your laptop all locked down and ready to do battle. Organize your .mp3s.

Check out the DEF CON Forums to see what other people are up to. If you want to create your own event, you can do that as well - you will not get official space or sanctions, but virtually every official event at DEF CON started out as an unofficial event.

I would love to see XYZ event, how do I make
this happen?
Virtually all events at DEF CON were conceived by the attendees. The DEF CON forums are a great place for recruiting help for an event you want to put on, and making sure your efforts aren' t
being duplicated. If it doesn' trequire
resources from DEF CON ( space, namely) you generally don' thave to ask anyone' s permission. Most events are unofficial until they' vebeen going on for a couple of years. Please let us know if you have an idea for an event, we may help facilitate or promote it. Email [ suggestions at DEF CON dot org] to keep us in the loop.
331
What should I bring?
It depends on what you' re going to do at DEF CON. This is discussed in quite some depth on the unofficial DC FAQ, as well as a thread in the DC Forums.

You may want to bring fancy (or outrageously silly) clothes for the official Music events, on Friday and Saturday nights, where everyone shows off nifty attire.

How much do rooms cost, and how do I
reserve a room?
The DEF CON 32 group room registration is evolving! We are working on room blocks at several hotels.

Currently we have a block at Sahara: https:// book. passkey. com/ e 50769948 Check the the DEF CON 32 venue page periodically for more as we add them
How much is internet access?
We are looking into this. Free ( and possibly more dangerous) internet access is available in the convention area.

Will the hotels broadcast the speeches on
their cable system?
DEF CON TV has succcessfully streamed all tracks to all the hotels in the past, and a couple of tracks out to the internet, for several years now. We are navigating a new venue and new hotels, so stay tuned. If we can, we probably will!
Will we have DEF CON branded poker chips?
You will have to attend DEF CON to find out.
332
Will conference attendees have entire floors
of hotel rooms to themselves?
Probably not. Hotels have been very cooperative in attempting to centralize the DEF CON attendees, for their convenience and ours, but there will be non- DEF CON attendees in hotel rooms next to us.

This FAQ didn' tanswer my questions, or
was unclear, how can I get further
information?
Check out the DEF CON Forums to ask follow up questions. 1992- 2024 DEF CON Communications, Inc. All Rights Reserved 1 DEF CON Policies 1 DMCA Information 333
COINII
ThEk4E & STYLE
0111U111011111E
Theme & Style Guide
Call Index
THEME: ENGAGE
The internet is our Global Commons and we rely on it in ways we couldn' t have predicted a few decades ago. Unfortunately the internet has been slipping out of our hands and it is becoming more noticeable.

There are a lot of reasons for this. Tech monopolies doing tech monopoly 334
stuff is a big one. In the name of efficiency and control the internet has become more centralised and less resilient. The move away from open protocols and publicly maintained standards is another.

At some point the speculators demand to be paid, and the platforms we' ve built little universes around start removing services and raising prices.

The apps begin to intrude on us more, leveraging our data for cash. Terms of Service and dark pattern updates. Everything gets worse fast.

Cory Doctorow calls this process `enshittification. He has a lot of good ideas about how to reverse it and you really should watch his DC31 presentation if you haven' t. ( On the Media Server, or YouTube) Cory' stalk resonated with a lot of us. The germ of this year' stheme started to form. What is the opposite of enshittification? How do we respond to this trend as a community?
We Engage.

To take back the internet we need to enage.

There are open alternatives to many of the services the App Lords are serving up. We can join them, use them and invite others. If they' rnot as robust or full -featured as we want, we can help improve them. If no open alternative exists, we can pool our talents and create one like our friends in the Cult of the Dead Cow did with Veilid.
https:// www. youtube. com/ watch? v=Kb1l KscAM DQ)
If the rules need changing, there' s a whole world of policy that is always looking for feedback. We encourage you to check out the Policy 335
Community at DEF CON.. We encourage you to get involved locally wherever you fit in. Engagement is the antidote to apathy.

Join a DEF CON Group and share what you know. Show someone you care about how to escape the walled gardens and echo chambers.

Share your engagement ideas with us at defcon. social or on the DEF CON Forums and we' llamplify. We' IIhighlight the coolest ideas and projects you share with us, both online and at DC32.

The important thing is to get involved, nothing blooms where nothing is planted.

We can give the future a fighting chance. We can help open solutions flourish. We can build public alternatives to privatized space. We can both consume culture AND create it. The future we want is open, secure and accessible. The walled gardens have had their day.

VISUALS
Logo
336

DEFCON )))
r...•
416. 411116
ENGAGE
Fonts
sor- cHrioMcNeuropol X
Lato
Palette
FFAC111 Pantone 7408C
892BE11 Pantone 527C
DB16751 Pantone 219C
0A79851 Pantone 5483C
The visual vibes for this year are inspired by Mar Williams' art and what Tumblr tastemakers would call the `Y2K Aesthetic'. A rave flyer left under 337
your windshield. The logo of a hip cybercafe with a Ti. The turn of the century was electric with possibilities, both good and bad. We had to create a whole new iconography for the internet, and the energy spilled out everywhere. The future looked frictionless and holographic, crystalline and superclean.

The widespread adoption of the Web felt revolutionary. The potential of this new tool was boundless, and that feeling of limitless possibility was all over pop culture. That' sthe feeling we' r trying to capture.

Sure, some shady developers want to turn our commons into a strip mall.

They don' thave to have the last word. When you' re putting together your stickers, badges, and other goodies for DEF CON 32, keep this vibe in your heart.
338
Ss n5
339

HOMEWORK
Media:

For books and movies to get you in the headspace, we' r selecting works that center around the difference that can be made by a small group of determined people, even when there' salready a little dystopia to deal with. Here' s a book list to get you started.
340
Books:

Hacking Politics - How Geeks, Progressives, The Tea Party, Gamers, Anarchists and Suits Teamed Up to Defeat SOPA
Kim Stanley Robinson : New York 2140
also from KSR - Mars Trilogy, Aurora
Octavia Butler: Parable of the Sower
Becky Chambers: Wayfarers Series - The Long Way to a Small, Angry Planet
Neal Stephenson - Seveneves
Movies:

CITY MANAGER' SREPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE OUT-F- STATE TRAVEL FOR TWO CITY
STAFF TO ATTEND THE TYLER CONNECT 2024

CONFERENCE
RECOMMENDATION: Adopt a Resolution Authorizing Out -of -State Travel for the Senior Management Analyst and Customer
Service Supervisor to Attend the Tyler Connect
2024 Conference in Indianapolis, Indiana From
May 19- 22, 2024
SUMMARY:

The Tyler Technology Connect 2024 ( Connect 24) is the annual user conference for the City' s comprehensive Enterprise Resource Planning ( ERP) software. This conference is for Tyler Technology clients only and provides insight into best practices as well as unique opportunities to improve our services by making full use of our financial, billing, human resources, licensing and budget software. Connect 2024 offers wide- ranging workshop options, product training, technical applications, and business best practices. This event will give staff opportunities to discover new ways to learn of software enhancements, tips and tricks, and advanced product uses to improve City performance and efficiencies.

Aligned with the goals of keeping City staff informed and up- to- date on the latest technology, Staff requests approval for the City' s
Senior Management Analyst and
Customer Service Supervisor to attend the Connect 24 Conference to be held in Indianapolis, Indiana from May 19, 2024 through May 22, 2024. Tyler Connect 2024 is exclusively for Tyler clients to interact and learn directly from Tyler experts and Tyler user communities, and will assist the City with making better use of our technology investment in daily work. Staff that will be attending will attend sessions that will benefit the Department and the City as a whole. Staff will then take a train the trainer' s approach upon return by updating the rest of the Department' s on lessons learned from the experts in the usage of the ERP system Staff requests City Council approve the out-f- state travel for the City' s Senior Management Analyst and Customer Service Supervisor to attend the Connect 2024 Conference in Indianapolis, Indiana from May 19, 2024 to May 22, 2024. The estimated cost is $ 7, 000. Sufficient funds were allocated in the approved FY 2023- 24 budget to cover the cost of the training and travel.

BACKGROUND:

Since 2012, the City has been utilizing New World Systems ( NWS) Enterprise Resource Planning ( ERP) software for various functions including Financial Management, Human Resources, Utility Management, and Community 343
CITY MANAGER' SREPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVE OUT-F- STATE TRAVEL FOR TWO CITY STAFF TO ATTEND THE TYLER CONNECT 2024 CONFERENCE
Development. In 2015, Tyler Technologies acquired NWS software. The ERP system has supported City staff in the delivery of government services and improved the efficiency and effectiveness of the City' s customer service and business practices.

Over time, Tyler Technologies has created online content and regional training programs providing opportunities for City staff to enhance their skills and knowledge of the ERP system.

This spring, Tyler Technologies will be holding their annual user conference in Indianapolis, Indiana. Tyler Connect 2024 ( Connect 24) is the City of Lathrop Financial System' s annual user conference. Connect 2024 provides extensive workshop options, product training, technical applications, and business best practices. This event will provide staff with opportunities to explore new ways to learn about software updates, tips and tricks, advanced product use to improve performance and efficiency, and learn from Tyler experts and Tyler user communities.

Staff recommends that City Council approve the out-f- state travel for the City' s Senior Management Analyst and Customer Service Supervisor to attend the Connect 2024 Conference in Indianapolis, Indiana from May 19, 2024 to May 22, 2024. The estimated cost is $ 7, 000.

REASON FOR RECOMMENDATION:

This event will give staff opportunities to discover new ways to learn software enhancements, tips and tricks, and advanced product use to help improve performance and efficiencies. Staff that will be attending will attend sessions that will benefit the Department and the City as a whole. Staff will then take a train the trainer' sapproach upon return by updating the rest of the Department' son lessons learned from the experts in the usage of the ERP system. Additionally, per the City of Lathrop' s Travel Policy, Staff requires City Council' sapproval for out-f- state travel.

FISCAL IMPACT:

The estimated total cost of attending the Tyler Connect 2024 Conference is $ 7, 000.

Sufficient funds were allocated in the approved FY 2023-4 budget as approved by City Council.

ATTACHMENTS:

A. A Resolution to Authorize Out -of -State Travel for the Senior Management Analyst and Customer Service Supervisor to Attend the Tyler Connect 2024 Conference in Indianapolis, Indiana.

B. Tyler Connect 2024 Conference Information and Agenda 344
CITY MANAGER' S REPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVE OUT-F- STATE TRAVEL FOR TWO CITY STAFF TO ATTEND THE TYLER CONNECT 2024 CONFERENCE
APPROVALS:

Cari Ja
Finance D' - ctor
Date
Thomas Hedegard Date
Deputy City Manager
3 ' S —z°7-`(
Salvador Navarrete Date
City Attorney

3. 41-
Stephen J. Salvatore Date
City Manager
345
RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO

AUTHORIZE OUT-F- STATE TRAVEL FOR THE SENIOR MANAGEMENT

ANALYST AND CUSTOMER SERVICE SUPERVISOR TO ATTEND THE TYLER CONNECT 2024 CONFERENCE IN INDIANAPOLIS, INDIANA FROM MAY 19- 22, 2024
WHEREAS, since 2012, the City has been utilizing New World Systems ( NWS) Enterprise Resource Planning ( ERP) software for various functions including Financial Management, Human Resources, Utility Management, and Community Development; and
WHEREAS, the ERP system has supported City staff in the delivery of government services and improved the efficiency and effectiveness of the City' s customer service and business practices; and
WHEREAS, the Tyler Connect 2024 ( Connect 24) Conference is the City of Lathrop Financial System' s annual user conference for Tyler clients only and providing a unique opportunity to improve our services by fully utilizing our New World Systems ERP software; and
WHEREAS, the Connect 24 offers comprehensive workshops options, product training, technical applications, and business best practices; and WHEREAS, this event will give staff opportunities to discover new ways to learn of software enhancements, tips and tricks, and advanced product use to help improve performance and efficiencies; and
WHEREAS, staff is requesting out-f- state travel for the Senior Management Analyst to attend at the Tyler Connect 2024 Conference; and WHEREAS, aligned with the goals of keeping City staff informed and up- todate on the latest technology, Staff requests approval for the Senior Management Analyst and Customer Service Supervisor to attend the Tyler Connect Conference to be held in Indianapolis, Indiana from May 19, 2024 through May 22, 2024; and WHEREAS, the estimated cost is $ 7, 000 and sufficient funds have been allocated in the approved FY 2023-4 budget.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop authorizes the out-f- sate travel for the Senior Management Analyst and Customer Service Supervisor to attend the Tyler Connect 2024 Conference in Indianapolis, Indiana from May 19, 2024 to May 22, 2024. 346
The foregoing resolution was passed and adopted this 11th day of March 2024, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 347
Tyler Connect 2024
ATTACHMENT " B"
Transforming for Tomorrow"
Join us May 19- 22, 2024, in Indianapolis, Indiana.

Our annual Tyler Connect user conference is essential to our mission of empowering the public sector to help create safer, strong communities. Join us at Connect 2024 where you not only get to see our mission in action, but you get to be a part of it.

New to Connect? Visit our Connect 101 information page.

GENERAL INFO
When & Where
May 19- 22, 2024
Indianapolis, Indiana
Indiana Convention Center
Registration Fees
Early Bird ( ends 3. 22.4) $1,99
Standard ( begins 3. 23.4) $1, 449
See Conference Info for more details
Helpful Info
Code of Conduct
ROI Planning Document
FAQs
348
CONNECT2
Full Conference Agenda
All times listed are Eastern
ion 3
11: 30a. m.-- 12: 30p. m.

Lunch
12: 30 p. m. -2: 00 pm.

Session 4
2: 00 p. m. 3: 00 p. m,
Break
3: 00 p. m. -3:0 p. m.

Session 5
3:0 p. m. -1: 30 p. m.

Client Happy Hours
4: 30 p. m, 6: 00 p. m.

Session 8
11: 30 a. m.-- 12: 30 p. m.

Lunch
12: 30 p. m. 2: 00 p. m.

Session 9
2: 00 p. m. -- 3: 00 p. m..

Break
3: 00 p. m. -3:0 p. m.

Session 10
3:0 p. m. 4: 30 p. m.

Client Appreciation Event
7: 30 p. m. -- 10: 30 p. m.

Session 11
8: 30 a. m.-- 9: 30
Break
9: 30 a. m.- 10: 00
Session 12
10: 00 a. m.- 11: 00a. m.

Break
11: 00 a. m. 11: 30 a. m.

Session 13
11: 30 a. m.--- 12: 30p. m.
349

PAGE LEFT

INTENTIONALLY
BLANK
350
ITEM 4. 9

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM:

RECOMMENDATION:

APPROVE AN AGREEMENT FOR A RAPID

EMERGENCY RESPONSE SYSTEM AND RELATED

BUDGET AMENDMENT
Adopt a Resolution Approving an Agreement
for a Rapid Emergency Response System and
Related Budget Amendment
SUMMARY:

To help protect the public and employees within City facilities, panic buttons were previously installed to alert emergency personnel in the event of a safety emergency.

The current system for emergency rapid response is not compliant with recommendations from Federal Emergency Management Agency ( FEMA) nor the Department of Justice ( DOJ) and is reaching technological end of life. The proposed new rapid emergency response system would reduce the delay in response when City staff press the panic buttons. The proposed upgraded system for rapid emergency response is intended to improve the security infrastructure and enhance safety by reducing the response time in emergency situations. This system will alert first responders and occupants of certain City facilities of an emergency with directions on how to proceed to safety and is compliant with recommendations issued by DOJ and FEMA.

The proposed rapid emergency response system uses a variety of devices such as panic buttons, pull switches and strobe lights to quickly alert the occupants of the building that an emergency alarm has been triggered and provides audible instructions to safely exit the City facility. The system will simultaneously alert police, fire and medical personnel to respond to the City facility where the alert was initiated.

This will increase the security infrastructure by reducing the amount of time it takes for emergency responders to be alerted of the emergency and be dispatched to the location. The rapid emergency response system allows for communication through a control panel to communicate internally to the entire City facility at once. Details of the system are not published to prevent potential security threats, misuse of information and potential malicious activity. Staff proposes for the system to be installed at the locations listed for the amounts included on Table 1 below. There will also be an annual fee of $ 14, 304 for annual service and inspections of the monitoring of the system.

Table 1
City Hall 21, 692
Generations Center 21,34
Community Center 19,89
Animal Center 19,89
Police Department 17,44
Senior Center 17,44
351
CITY MANAGER' S REPORT: MARCH 11, 2024 PAGE 2

APPROVE AN AGREEMENT FOR A RAPID EMERGENCY RESPONSE SYSTEM

AND RELATED BUDGET AMENDMENT
A contingency of $ 13, 000 for required infrastructure and implementation of the system is also being requested.

Staff is requesting City Council approve an agreement for an emergency rapid response system for an initial purchase price of $ 129, 86 that comes with equipment, installation and the first -year monitoring services and a contingency of $ 13, 000 for implementation and required infrastructure for a total of $ 142, 896. The funds for this were not budgeted and staff is requesting a budget amendment to increase CIP GG 19- 07 Citywide Surveillance Systems to cover the expenses.

BACKGROUND:

The current emergency response system is over ten ( 10) years old and is reaching the technological end of life and has a delay in communicating with emergency first responders like police, fire and medical personnel. Therefore, ISD staff proposes a new emergency response system to enhance the safety of the public, employees and contractors who may be in a City facility at the time of an emergency. Enhancement of the City' s security infrastructure and direct engagement with Lathrop Police Department and Lathrop Manteca Fire Department will reduce the time it takes first responders to be dispatched. This new system utilizes a variety of devices such as mobile panic buttons, pull switches and control panels to allow users to quickly alert emergency responders and building occupants of an emergency. The control panel allows for communication such as verbal instructions on how to proceed to safety internally and control of the strobe lights. Unlike other rapid response systems, the proposed system is compliant with the recommendations issued by FEMA for Incident Command Structure and Mult- Hazard Communication. This system is also compliant with requirements issued by the Department of Justice ( DO)) regarding active shooter compliance.

Details of this emergency response system are not published in order to protect the City from potential security threats, misuse of information and potential malicious activities. This system will become a critical component of security infrastructure in the buildings listed in Table 1 for the amounts listed. There will also be an annual fee of $ 14, 304 for annual service and inspections with monitoring of the system. A contingency of $ 13, 000 is being requested for required infrastructure and implementation of the system as the quotes were prepared remotely without the vendor physically visiting the sites.

Staff is requesting City Council approve an agreement for an emergency rapid response system for $ 129, 86and contingency of $ 13, 000. The funds for this were not budgeted and staff is requesting a budget amendment to increase CIP GG 19- 07 Citywide Surveillance System to cover the expenses.

REASON FOR RECOMMENDATION:

The rapid response emergency system proposed to be added to CIP GG 19- 07 Citywide Surveillance System represents an effort to utilize technology to enhance the safety of the public, employees and contractors who may be present in a listed City facility during an emergency.
352
CITY MANAGER' S REPORT: MARCH 11, 2024 PAGE 3

APPROVE AN AGREEMENT FOR A RAPID EMERGENCY RESPONSE SYSTEM

AND RELATED BUDGET AMENDMENT
FISCAL IMPACT:

There is not sufficient funds available in CIP GG 19- 07 Citywide Surveillance System to cover the cost of an emergency rapid response system. Staff recommends a budget amendment of $ 142, 896 to transfer from the General Fund subject to reimbursement from Measure C Fund 1060 to cover the cost of the camera surveillance system. Staff is requesting Council approve the below budget amendment to increase the budget for CIP GG 19- 07 Citywide Surveillance System.

Increase Transfer Out
1060- 9900-90- 9010 $ 142, 896
Increase Transfer In
3010- 9900- 393- 00 GG 19- 07 $ 142, 896
Increase Appropriation
3010- 8000- 430- 37- 00 GG 19- 07 $ 142, 896
ATTACHMENTS:

A. A Resolution Approving an Agreement for a Rapid Emergency Response System and Related Budget Adjustment for CIP GG 19- 07 Citywide Surveillance Systems
353
CITY MANAGER' S REPORT: MARCH 11, 2024 PAGE 4

APPROVE AN AGREEMENT FOR A RAPID EMERGENCY RESPONSE SYSTEM

AND RELATED BUDGET AMENDMENT
APPROVALS:
andes Date
Information Systems Director
Cari Jam
Finance ' d' ector
09-1- q
Date
02/za?& l
Mich' el King Date
Assistant City Manger
2/%/ Z0Z4
Salvador Navarrete Date
City Attorney
St en J. Salvatore
City Manager
3• (0.24
Date
354
RESOLUTION NO. 24 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO APPROVE

AN AGREEMENT FOR THE RAPID EMERGENCY RESPONSE SYSTEM WITH

COMMAND AND CONTROL AND RELATED BUDGET AMENDMENT
WHEREAS, the current system for emergency rapid response is reaching end of life and this is causing a delay in response when City staff uses the panic buttons; and
WHEREAS, the current system is not currently in compliance with recommendations from Federal Emergency Management Agency ( FEMA) nor Department of Justice ( DOJ); and
WHEREAS, a new upgraded system for rapid emergency response will improve the security infrastructure and enhance safety by reducing the response time in emergency situations; and
WHEREAS, this rapid emergency response system uses a variety of devices such as panic buttons, pull switches and strobe lights to quickly alert the occupants of the building that an emergency is occurring and how to safely exit the building; and
WHEREAS, the system will simultaneously alert police and medical personnel to respond to the building. The rapid emergency response system allows for communication through a control panel to communicate internally to the entire building at once; and
WHEREAS, details of the system are not published to prevent potential security threats and malicious activity; and
WHEREAS, funds for this were not budgeted and staff is requesting a budget amendment of $ 142, 896 to increase CIP GG 19- 07 Citywide Surveillance System to cover the expenses.

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby approve of an agreement for the rapid emergency response system with command and control and related budget amendment of $ 142, 896. 355
The foregoing resolution was passed and adopted this 11th day of March 2024, 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 356
ITEM 4. 10

CITY MANAGER' S REPORT
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE PURCHASE OF SOFTWARE AND

ENTERPRISE LICENSE AND APPROVE MAINTENANCE
SERVICE AGREEMENT WITH SWARCO MCCAIN, INC.

ASSOCIATED WITH THE CITY- WIDE TRAFFIC

SYSTEMS AND SAFETY UPGRADES PROJECT, CIP PS
23- 01
RECOMMENDATION: Adopt Resolution Approving the Purchase of Software and Enterprise License and Approve a
Maintenance Service Agreement with Swarco
McCain, Inc. associated with the City -Wide Traffic
Systems and Safety Upgrades Project, CIP PS 23- 01
SUMMARY:

On July 11, 2022, by Resolution No. 22- 5111, Council approved the creation of Capital Improvement Project ( CIP), PS 23- 01 for City -Wide Traffic Systems and Safety Upgrades Project for various upgrades that will maintain and improve the reliability, safety and function of various traffic control devices in the City. Staff requested & received a quote from Swarco McCain, Inc. ( Swarco) for McCain Transparity Software ( Transparity) as shown in Attachment " B". Transparity will give staff the ability to remotely monitor and change the City' straffic signals, which will improve reliability and function.

Staff requests Council approve a ten ( 10) year term Enterprise License Agreement with Swarco for the use of Transparity Software with a total start- up cost of $ 56, 253 to be funded through the CIP and the yearly enterprise license cost of $ 7, 325 to be funded through the Street Operating Fund account 2080- 5010- 420- 58- 00. Sufficient funds have been approved in the FY 23-4 budget.

BACKGROUND:

On July 11, 2022, by Resolution No. 22- 5111, Council approved the creation of CIP PS 23- 01 for City -Wide Traffic Systems and Safety Upgrades ( Project). These upgrades include the replacement of obsolete traffic controllers, installation of video and radar detection systems, communication upgrades, and safety upgrades including guard rails, signs, striping and bicycle facilities. A component of this Project is to improve the traffic signal technology throughout the City to promote mobility, safety and visibility.

The City does not currently have a central traffic control monitoring system and therefore, all monitoring, diagnostics, and changes have to be performed at the intersections. This results in delayed responses to critical issues and consumes staff time.
357
CITY MANAGER' S REPORT PAGE 2
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVE PURCHASE OF SOFTWARE AND ENTERPRISE LICENSE AND

APPROVE MAINTENANCE SERVICE AGREEMENT WITH SWARCO ASSOCIATED

WITH THE CITY- WIDE TRAFFIC SYSTEMS AND SAFETY UPGRADES PROJECT, CIP PS 23- 01
The proposed Transparity will connect to all 26 of the City' straffic signals through a single software platform that allows for remote monitoring, diagnostics and changes.

In addition, Transparity can constantly check the status of the City' s traffic signals and instantly relay any issues to staff, which can then be observed and corrected remotely. Transparity offers a wide range of advantages besides monitoring including but not limited to group timing for coordination, event timing, reports of signal function, and event logs for diagnostics. This product is proprietary and Swarco has provided a Sole Source Documentation, included as Attachment " C".

RECOMMENDATION:

A component of the City -Wide Traffic Systems and Safety Upgrade Project is to upgrade the traffic signal technology throughout the City, which will help improve traffic flow and level of service. Therefore, staff recommends Council approve the purchase of Transparity.

FISCAL IMPACT:

The Agreement with Swarco, included as Attachment " B," has a start- up cost of 56, 253 and a yearly cost of $ 7, 325. Sufficient funds were approved in the CIP FY 23-4 budget for the start- up cost, including the yearly enterprise license cost of 7, 325, which will be funded through the Street Operating Fund account 2080- 5010- 420- 58- 00.

ATTACHMENTS:

A. Resolution Approving the Purchase of Software and Enterprise License and Approve a Maintenance Service Agreement with Swarco McCain, Inc. associated with the City -Wide Traffic Systems and Safety Upgrades Project, CIP PS 23- 01 B. Transparity Traffic Software License and Maintenance Services Agreement with Swarco McCain, Inc. for the City -Wide Traffic Systems and Safety Upgrades Project, CIP PS 23- 01
C. Sole Source Letter - Swarco, Inc.
358
CITY MANAGER' SREPORT PAGE 3
MARCH 11, 2024 CITY COUNCIL REGULAR MEETING

APPROVE PURCHASE OF SOFTWARE AND ENTERPRISE LICENSE AND

APPROVE MAINTENANCE SERVICE AGREEMENT WITH SWARCO ASSOCIATED

WITH THE CITY- WIDE TRAFFIC SYSTEMS AND SAFETY UPGRADES PROJECT, CIP PS 23- 01
APPROVALS:

Brad T' lor
City Engi a ePr
T nandes
Information Systems Director
Cari James
Finance Dir
1Th
3/- I/zmzy
Date
Date
Date
3-y• Joey
Michael King Date
Assistant City Ma, ager
3 • 5 t
Salvador Navarrete Date
City Attorney
3• lP -2c(-
Ste en J. Salvatore Date
City Manager
359
RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO

APPROVING PURCHASE OF SOFTWARE AND ENTERPRISE LICENSE AND

APPROVE A MAINTENANCE SERVICE AGREEMENT WITH SWARCO MCCAIN, INC. ASSOCIATED WITH THE CITY- WIDE TRAFFIC SYSTEMS AND SAFETY UPGRADES PROJECT, CIP PS 23- 01
WHEREAS, on July 11, 2022, by Resolution No. 22- 5111, Council approved the creation of Capital Improvements Project ( CIP) PS 23- 01 for City -Wide Traffic Systems and Safety Upgrades; and
WHEREAS, a component of this project is to improve the reliability, safety and function of various traffic control devices in the City; and WHEREAS, staff received a proposal from Swarco McCain, Inc. (Swarco) to provide 26 Transparity licenses and a ten ( 10) year software maintenance with a total start- upcost of $ 56, 253 and yearly enterprise license cost of $ 7, 325; and WHEREAS, the ten ( 10) year term Enterprise License Agreement with Swarco for Transparity Software is for a total start- upcost of $ 56, 253 to be funded through the CIP and the yearly enterprise license cost of $ 7, 325 to be funded through the Street Operating Fund account 2080- 5010- 420- 58- 00; and WHEREAS, sufficient funds were budgeted in the approved FY 23-4 budget; and
WHEREAS, Transparity will give staff the ability to remotely monitor and change the City' straffic signals, which will improve reliability and function; and WHEREAS, this product is proprietary therefore, Swarco has provided a Sole Source Documentation, as shown in the City Manager' s Report dated, March 11, 2024.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve the Purchase of Software and Enterprise License and Approve Maintenance Services Agreement With Swarco Mccain, Inc. associated with the City -Wide Traffic Systems and Safety Upgrades Project, CIP PS 23- 01. 360
The foregoing resolution was passed and adopted this 11th day of March, 2024, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 361
ATTAC1MENT 1 „

CITY OF LATHROP
AGREEMENT WITH SWARCO MCCAIN, INC.

FOR THE PURCHASE OF SOFTWARE AND ENTERPRISE LICENSE
AND MAINTENANCE SERVICES, CIP PS 23- 01
THIS AGREEMENT, dated for convenience this 11th day of March 2024, is by and between SWARCO McCain, Inc. ("CONSULTANT") and the City of Lathrop, a California municipal corporation ("CITY");
RECITALS:

WHEREAS, CONSULTANT is specially trained, experienced, and competent for of the software and enterprise license and maintenance service agreement; and WHEREAS, CITY selected the CONSULTANT pursuant to said qualifications; and WHEREAS, CONSULTANT is willing to render such enterprise software license and maintenance services, as hereinafter defined, on the following terms and conditions; NOW, THEREFORE, CONSULTANT and the CITY agree as follows:

AGREEMENT
1) Scope of Service
CONSULTANT agrees to perform services in accordance with the scope of work and fee proposal provided by CONSULTANT, attached hereto as Exhibit "A" and incorporated herein by reference. CONSULTANT represents it is prepared to and can diligently perform these services in accordance with the customary standards of its profession and to CITY' S satisfaction. The fee proposal shall include all reimbursable costs required for the performance of the Scope of Services.

Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved of in advance and in writing, by the CITY.
2) Compensation
CITY hereby agrees to pay CONSULTANT a sum not to exceed $ 56, 253 for the initial set- up cost and $ 73, 250 ($7, 325 per year), incorporated herein by reference, notwithstanding any contrary indications, which is attached hereto as Exhibit "A".

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Lathrop City CouncilMarch 11, 2024

Lathrop City Council
March 11, 2024