CITY MANAGER'S REPORT ITEM 4.4
JANUARY 13, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPTANCE OF THE CITY OF LATHROP ANNUAL
COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR
THE FISCAL YEAR ENDING JUNE 30, 2024
RECOMMENDATION: Adopt a Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report (ACFR) for
the Fiscal Year Ending June 30, 2024
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, 2024. 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's financial 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, 2024, 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 December 19, 2024, and posted on the City's website at that time. Badawi and Associates, CPA has issued an unmodified ("clean") opinion of the ACR which states that the financial statements are presented fairly, in all material respects.
CITY MANAGER'S REPORT PAGE 2
JANUARY 13, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2024
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 GOA 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 has been awarded the prestigious Certificate for Excellence in Financial Reporting for 27 consecutive years. A Certificate of Achievement is valid for a period of one year only.
The City's financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the three sections summarized below.
• The Introductory section includes this transmittal letter and general information on the City's government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting.
• The Financial section contains the independent auditor's report on the financial statement audit, the MD&A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.
• The Statistical section includes selected financial and demographic information generally presented on a multi-year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.
REASON FOR RECOMMENDATION:
The auditors have issued an unmodified ("clean") audit opinion. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States.
FISCAL IMPACT:
There is no fiscal impact associated with this action. Unmodified audit reports are an indication that City funds are being spent appropriately and as intended by the City Council, grantor agencies, and federal and State laws. They also help maintain the City's favorable ratings for current and future debt issuances.
CITY MANAGER'S REPORT PAGE 3
JANUARY 13, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2024
ATTACHMENTS:
A. Resolution Accepting the City of Lathrop Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ending June 30, 2024.
B. City of Lathrop Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2024.
CITY MANAGER'S REPORT PAGE 4
JANUARY 13, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT THE CITY OF LATHROP ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2024
APPROVALS:
1/6/2025
-
Date
Director of Finance
12/30/2024
Thomas Hedegard Date
Deputy City Manager
Strande
12/21/2024
Salvador Navarrete Date
City Attorney
1.8.25 Stephen J Salvatore Date
City Manager
RESOLUTION NO. 25 - _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
WHEREAS, the financial statements of the City of Lathrop for the fiscal year ended June 30, 2024, 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, 2024 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, 2024, 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; WHEREAS, the ACFR and audit of the City's financial statements were completed on December 19, 2024, and posted on the City's website; 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 has been awarded the prestigious Certificate for Excellence in Financial Reporting for 27 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, 2024.
The foregoing resolution was passed and adopted this 13th day of January 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Stanto
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney ATTACHMENT "B"
City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
https://www.ci.lathrop.ca.us/
CITY, ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
ACORPORATED TO
CITY OF LATHROP, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Prepared by:
Finance Department
Cari James, Director of Finance
City of Lathrop
For the Year Ended June 30, 2024
Table of Contents
INTRODUCTORY SECTION: Page
Letter of Transmittal. . vii
Certificate of Achievement for Excellence in Financial Reporting.... xii Organizational Chart ..xiii
Directory of Officials and Advisory Bodies.... .... xiv FINANCIAL SECTION:
INDEPENDENT AUDITORS' REPORT .. 1
MANAGEMENT DISCUSSION AND ANALYSIS ...5
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Position 23
Statement of Activities. 24
Governmental Fund Financial Statements:
Balance Sheet - Governmental Funds. 30
Reconciliation of the Balances Sheet of Governmental Funds to the Statement of Net Position..... 32
Statement of Revenues Expenditures and Changes in Fund
Balances - Governmental Funds........... 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities.. . 36
Proprietary Fund Financial Statements:
Statement of Net Position - Proprietary Funds 38
Statement of Revenues, Expenses and Changes in Fund
Net position - Proprietary Funds....... 39
Statement of Cash Flows - Proprietary Funds 40
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position.... 42
Statement of Changes in Fiduciary Net Position. 43
Notes to Financial Statements 47
City of Lathrop
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION, Continued:
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability - Cost-Sharing Multiple Employer Plan 88
Schedule of Plan Contributions - Cost-Sharing Multiple Employer Plan 90 Schedule of Changes in the Net OPEB Liability and Related Ratios 92 Schedule of OPEB Contribution ........... 94
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
General Fund 96
Capital Facility Fees Special Revenue Fund 98
Notes to the Required Supplementary Information 99
SUPPLEMENTARY INFORMATION
General Fund:
Description of General Funds 102
Combining Balance Sheet 103
Combining Schedule of Revenues, Expenditures and Changes in Fund Balance.. . 104
Schedules of Revenues, Expenditures and Change in Fund Balances - Budget and Actual General Purpose Fund .. 106
Economic Development.. . 108
Measure C .. 109
Major Funds:
Schedules of Revenues, Expenditures and Change in Fund Balances - Budget and Actual General CIP Projects Capital Project Fund . 110
Non-Major Governmental Funds:
Description of Non-Major Funds... ..111
Combining Balance Sheet . 114
Combining Statement of Revenues, Expenditures and Changes in Fund Balance. ..124 Schedules of Revenues, Expenditures and Change in Fund Balances - Budget and Actual Developer Projects.. . 133
Building Safety & Inspection.... 134
City of Lathrop
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION, Continued:
SUPPLEMENTARY INFORMATION, Continued
Non-Major Governmental Funds, Continued:
Schedules of Revenues, Expenditures and Change in Fund Balances - Budget and Actual, Continued:
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 2019-1 Fund.. .. 166
Central Lathrop CFD 2019-2 Fund.. .. 167
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City of Lathrop
For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION, Continued:
SUPPLEMENTARY INFORMATION, Continued
Non-Major Governmental Funds, Continued:
Schedules of Revenues, Expenditures and Change in Fund Balances - Budget and Actual, Continued:
Stewart Economic Dev Fee 80% .. 168
TOT Trust... . 169
Gateway Business Par........... .. 170
Streets and Roads .. 171
Storm Drain .. 172
Park in Lieu .. 173
Custodial Funds:
Combining Statement of Fiduciary Net Position. .. 176
Combining Statement of Changes in Fiduciary Net Position. . 178 STATISTICAL SECTION:
Financial Trends:
Net Position by Component..... 182
Changes in Net Position.... 184
Fund Balances of Governmental Funds. 186
Changes in Fund Balances of Governmental Funds. .. 188
Revenue Capacity Information:
Property Tax Levies and Collections... .. 190
Assessed Value and Estimated Actual Value of Taxable Property.. .. 191 Principal Property Taxpayers. 192
Debt Capacity Information:
Property Tax Rates - Direct and Overlapping Governments. .. 193 Sales Tax Rates - Direct and Overlapping Governments... . 194 Taxable Sales by Category ... ..196
Legal Debt Margin Information........ 198
Outstanding Debt.... . 200
Computation of Direct and Overlapping Debt. ... 202
Pledged-Revenue Coverage .. 204
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City of Lathrop
For the Year Ended June 30, 2024
Table of Contents
STATISTICAL SECTION, Continued:
Demographic and Economic Information:
Demographic and Economic Statistics . 206
Principal Employers ... 207
Operating Information:
Full-Time and Part-Time City Employees by Function... .. 208 Operating Indicators by Function.... .. 210
Capital Asset Statistics by Function.. .. 211
Water Sold by Type of Customer... .. 212
Water Rates. 213
Ten Largest Water Customers 214
Top 25 Sales Tax Producers .. 215
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OBL
City of Lathrop
www.ci.lathrop.ca.us
December 19, 2024
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, 2024 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Lathrop. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds of the City of Lathrop. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included This Annual Comprehensive Financial Report includes a summary of funds for the City of Lathrop and reports all activities considered to be a part of, controlled by, and dependent on the City. The accounts of the City are organized on the basis of fund accounting with each fund considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred outflows/ inflows of resources, fund equity, revenues and expenditures, or expenses as appropriate.
Government resources are allocated to, and accounted for, in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled The Annual Comprehensive Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as set forth in pronouncements by the National Council of Governmental Accounting (NCGA) and the Governmental Accounting Standards Board (GASB) and includes the report of the City's independent certified public accountants, 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's financial statements for the fiscal year ended June 30, 2024, 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&A can be found immediately following the independent auditor's report.
INTERNAL CONTROLS
To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to ensure that the assets of the government are protected from loss, theft, , or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP in the United States of America.
The internal control structure is designed to provide reasonable, but not absolute, assurance these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived from the control, and (2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above stated framework. We believe our internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.
vii
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's report on the basic financial statements is the first item in the accompanying Financial Section.
In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Cos Pumpes and Audi coul Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance).
The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements.
REPORT ORGANIZATION:
The report is organized in three sections: introductory, financial, and statistical.
1. The Introductory section includes this transmittal letter and general information on the City's government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting.
2. The Financial section contains the independent auditor's report on the financial statement audit, the MD&A, basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.
3. The Statistical section includes selected financial and demographic information generally presented on a multi-year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.
PROFILE OF LATHROP
The City of Lathrop encompasses approximately 22 square miles. The City of Lathrop is located in San Joaquin County at the center of the Northern California metro market, close to the San Francisco Bay Area and Greater Sacramento regions, at the interchange of three major freeways: Interstate 5 (I-5), Interstate 205 (I-205), and the Highway 120 Freeway. As of January 1, 2024, the City had an estimated population of 37,033.
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.
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 entorcement, 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. vili
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 2023/24 with building permits continuing to be issued at a rate consistent with an agency that is one of the fastest growing in the State. Revenues, such as property tax, development related fees, community facility district revenues and sales tax are all positively impacted from increased development activity either directly from fees received or indirectly due to increased population.
The City has recently begun to enjoy a strong economic base from years of smart growth and planning initiatives resulting in stable property tax revenue, modest transient occupancy taxes and diverse sales tax revenues. The City's sales tax revenues remain stable and, over the past several years, have continued to experience annual increases. The City's sales tax revenues are expected to show modest annual increases as population and consumer activity continue to rise and businesses continue to view Lathrop as an attractive location.
Like all government agencies throughout California, the City is faced with increased ongoing annual operating costs and rising retirement related liabilities. For Lathrop, some of these challenges include increased funding needs for pavement maintenance, facility and park maintenance, new programs and departments, additional personnel, retiree health care costs, and rising pension costs due to new funding policies adopted by the California Public Employees Retirement System (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 2024 and is expected to stabilize throughout 2025. Sales tax is the General Fund's largest source of revenue and has largely recovered to pre- pandemic levels, however, the state of the economy from high inflation, supply chain challenges and ongoing world events remains concerning as we head into FY 2025. The City is currently navigating an unprecedented inflation situation that has not been encountered in recent history. The ability to budget conservatively has paid dividends with the uncertainty that has come with recent economic events. This creates challenges but we remain vigilantly optimistic about Lathrop's long-term outlook.
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 challenging times. The financial impacts of the pandemic have largely subsided compared to the prior fiscal year.
BALANCED BUDGET
The City's Budget and Fiscal Policy requires the City to maintain a balanced General Fund budget over the annual period of the financial plan. This means that each fiscal year, current revenues must meet or exceed operating expenditures, including debt service. Use of fund balance commitments to offset non-operating expenditures may allow for current expenditures to exceed current revenues in the fiscal year. City staff presents General Fund budgets for City Council consideration that maintain an unassigned fund balance between 10-50% of the annual operating appropriations and transfers. Lathrop maintains adequate fund balances for emergencies in a majority of its governmental operations funds and proprietary funds.
The adopted budget serves as the foundation for the City of Lathrop's financial planning and control system. All departments of the City submit requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, department, program, and line- item.
The Council periodically reviews the City's actual financial activity in relation to the original budget, and as necessary, adjustments are made to ensure that expenditures are not outpacing anticipated revenues. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is at the fund and department level with more stringent control over capital assets and fund balance categories, which are 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 ix
within a City department and between appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs, excluding special designation or project appropriations.
LONG-TERM FINANCIAL PLANNING
The City incorporates long-term financial planning into its budget process in several ways. During the biennial budget process the City Council receives an updated General Fund Ten-Year Forecast and CIP Five-Year Forecast that includes all special revenue funds associated with each project. The long-term financial model used for the General Fund and CIP looks forward ten years, because of the volatile nature of tax revenues in a commercial growth-based economy, and various one-time special revenue funds associated with development activity making it difficult to predict revenues with any certainty beyond the immediate term. The forecast is used as a tool and maintained by Finance staff.
These projections allow management to see what the future could look like given a set of assumptions and is evaluated in the context of whether decisions are sustainable over the long term. The ten-year financial forecast is a tool for strategic decision making and presents further context for balancing short-term and long-term goals and provides an "order of magnitude" feel for the General Fund's ability to continue services and preserve fiscal sustainability. Management encourages its departments to project their resource needs for a period longer than the traditional biennial budget period. In addition, the City faces increasing expenses in several areas of operations, including the creation of the Police Department. The City has elected to proactively address its unfunded OPEB obligation by establishing an irrevocable trust and significantly increasing its contributions. At the same time, rising pension contribution requirements, while helping to reduce the unfunded pension liability, result in a decrease of financial resources available for other uses. ( The City will need to continue to explore options to increase its revenue base, while keeping expenses manageable.
As the economy readjusts post-pandemic, inflation continues to be a key issue in 2024. 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. Measure C supports personnel and operating expenditures to manage the Lathrop Generations Center, a multipurpose facility aimed to promote healthy recreational opportunities for our youth. Furthermore, Measure C partially funded the startup of Lathrop's own Police Department, as well as additional Lathrop Police personnel to strengthen prevention and intervention services around the community.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) has awarded the Certificate of Achievement for Excellence in Financial Reporting to City of Lathrop for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2023. 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 27'h consecutive year that the City of Lathrop has received this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GOA 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 anc 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,
Carefres
Stephen J. Salvatore Cari James
City Manager Director of Finance
xi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lathrop
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Chustopher P. Movill
Executive Director/CEO
xii
INTRODUCTION
CITY OF LATHROP ORGANIZATIONAL CHART
Fiscal Year 2023/24 and 2024/25
Citizens of Lathrop
City Council
City Attorney City Manager Commissions
Community Planning
Police
Development Commission
Government Parks & Recreation
Information Systems
Services & City Clerk Commission
Parks, Recreation & Senior Advisory
Human Resources Maintenance
Services Commission
Public Works Youth Advisory
Finance
Commission
Building Measure COversight
Committee
xiii
DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Sonny Dhaliwal, Mayor
Minnie Diallo, Vice Mayor
Paul Akinjo, Council Member
Diane Lazard, Council Member
Jennifer Torres-O'Callaghan, Council Member
ADVISORY BODIES
Lathrop/Manteca Fire District
Measure C Oversight Committee
Parks and Recreation Commission
Planning Commission
Senior Advisory Commission
Youth Advisory Commission
APPOINTED OFFICIALS AND DEPARTMENT HEADS
City Manager/ Treasurer Stephen J. Salvatore
City Attorney Salvador Navarrete
Assistant City Manager Michael King
Deputy City Manager Thomas Hedegard
Director of Government Services/ City Clerk Teresa Vargas City Engineer Brad Taylor
Director of Information Systems Tony Fernandes
Director of Finance Cari James
Director of Human Resources Juliana Burns
Director of Community Development Rick Caguiat
Director of Parks and Recreation Todd Sebastian
Chief of Police Stephen Sealy
Chief Building Official Ed Short
XIV
LE RADAR ASSOCATES
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, 2024, 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, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements 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 leiegraph Avenue. Suite: 312 Berkeiey CA 94705 • Phone: 510 768 8251 • Fax: 510 768.8249 To the Honorable Mayor and Members of the City Council
of the City of Lathrop
Lathrop, California
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and OPEB schedules on pages 5-18 and 88-99 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 To the Honorable Mayor and Members of the City Council of the City of Lathrop
Lathrop, California
United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining General Fund schedules 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 schedules 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 schedules 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 basic financial statements and our auditor's report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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 December 19, 2024 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The 3 To the Honorable Mayor and Members of the City Council of the City of Lathrop
Lathrop, California
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.
ssociates
Badawi & Associates, CPAs
Berkeley, California
December 19, 2024
4 City of Lathrop
Department of Finance
390 Towne Centre Drive
Lathrop, California 95330
TED 199 209-941-7320
www.ci.lathrop.ca.us
December 19, 2024
MANAGEMENT's DISCUSSION 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, 2024. 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
FINANCIAL HIGHLIGHTS
• The government-wide statement of net position for the City's governmental and business- type activities indicates that as of June 30, 2024, total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $890.4 million. Of this amount, governmental actives accounts for $584.6 million and business-type activities accounts for $305.8 million. In addition, the City's restricted net position totals $144.3 million ($142.9 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 $582.4 million is the City's net investment in capital assets, which includes $356.8 million from governmental activities and $225.6 million from business type activities. • The net positon increased by $102.4 million or 14 percent during FY 2024 to $890.4 million from $785.4 million. Governmental activities accounted for $73.6 million increase and business-type activities accounted for $28.9 million increase. The largest contributing factor of both increases is due to the acceptance of completed development infrastructure. • Governmental funds reported a combined ending fund balance of $229.3 million at June 30, 2024, which is $35.0 million or 18.0 percent higher than the restated June 30, 2023 balance.
The change is attributable to an increase in the General Fund of $5.6 million, the Capital Facility Fees Fund of $4.0 million, the General CIP Projects Fund of $1.1 million, the Nonmajor Governmental Funds of $24.3 million.
• Unassigned fund balance of governmental funds is $15.3 million, which is 6.7 percent of the combined governmental fund balances as of June 30, 2024. • Total long-term liabilities decreased by $0.8 million to $27.7 million, which represents an decrease of 2.8 percent compared to $28.5 million at June 30, 2023. The primary factors leading to the increase in long-term liabilities for governmental activities of $0.6 million was due to the increases in compensated absences of $0.4 million, and net pension liability of $0.9 million, offset by decreases in long term debt payable of $0.3 million and leases payable of $0.4 million. The primary factor leading to the decrease in long-term liabilities for business- type activities of $1.5 million was a result of an increase of net pension liability of $0.1 million, offset by a decrease in long-term obligation of $1.6 million. 5 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
: vote to Best hander Steners Fund 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's finances that include two different views of the City's financial position. The government-wide financial statements provide both long-term and short-term information about the City's overall financial status.
The 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 buiding sately at inspet then, general cap ta pral go and sure capital real a te, 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 ontrol over resources segregated for specific activities or objectives. As do other state and loca overnments, the City uses fund accounting to ensure and demonstrate finance-related lega compliance. Each City fund falls into one of three categories: governmental funds, proprietary funds, or fiduciary funds.
6 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's capacity 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's near-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 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
As noted earlier, net position may serve as a useful indicator of a government's financial position. As of June 30, 2024, the City's total assets and deferred out flows of resources exceed total liabilities and deferred inflows of resources by $890.4 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, 2023 and 2024
(in Thousands)
Governmental Business-Type Total Primary Total
Activities Activities Government Percent
2024 Change
2023 2024 2023 2024 2023
Assets:
Capital assets $ 324,000 $ 359,764 221,456 $ 239,161 $ 545,456 $ 598,925 9.80% Other assets 212,777 250,183 79,363 89,363 292,140 339,546 16.23% Total Assets 536,777 609,947 300,819 328,524 837,596 938,471 12.04% Deferred Outflows
Pension 4,371 5,086 636 749 5,007 5,835 16.54%
OPEB 1,011 1,062 160 168 1,171 1,230 5.04%
Total Deferred Outflows 5,382 6,148 796 917 6,178 7,065 14.36% Liabilities:
Current liabilities 22,587 16,651 6,581 10,178 29,168 26,829 -8.02% Long-term liabilities 5,487 5,123 13,634 11,971 19,121 17,094 -10.60% Net Pension liability 6,972 7,918 994 1,143 7,966 9,061 13.75% Net OPEB liability 1,243 1,315 196 207 1,439 1,522 5.77% Total Liabilities 36,289 31,007 21,405 23,499 57,694 54,506 -5.53% Deferred Inflows
Pensions 335 187 53 29 388 216 -44.33%
OPEB 233 328 37 52 270 380 40.74%
Total Deferred Inflows 568 515 90 81 658 596 942%
Net Position:
Net Investment
in Capital Assets 320,475 356,772 206,299 225,626 526,774 582,398 10.56% Restricted 125,033 142,915 1,409 1,431 126,442 144,346 14.16% Unrestricted 59,793 84,886 72.412 78,802 132,205 163,688 23.81% Total Net Position 505,301 $ 584,573 280,120 $ 305,859 $ 785,421 $ : 890,432 13.37% At June 30, 2024, 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 SITA less outstanding debt used to acquire assets and deferred inflows and outflows related to debt) of $582.4 million comprises 65.4 percent of the City's total 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 2024 net investment in capital assets increased $55.6 million primarily due to an increase of $36.3 million from governmental activities and an increase of $19.3 million from business-type activities. A portion of the City's net position, $144.3 million or 16.2 percent, is subject to legal restriction for their use, including $142.9 million in governmental activities 8 and $1.4 million in business-type activities. Of the total net position at June 30, 2024, a balance of $163.7 million or 18.4 percent represents unrestricted net positon, which comprises a balance of $84.9 million for governmental activities and a balance of $78.8 million for business-type activities.
During FY 2024, the City's total net position increased by $102.4 million. Notable changes in the statement of net positon between June 30, 2024, and June 30, 2023 include:
Assets
• Capital assets increased by $53.5 million compared to the prior fiscal year. Governmental capital assets increased by $35.8 million and business-type capital assets increased by $17.7 million. The increase is result of the addition of major infrastructure in both Governmental and Business-type funds. Governmental capital assets recorded additions of $49.4 million, which included $2.2 million in capital projects, $0.6 million in property acquisitions, $1.3 million in vehicles and equipment, $1.4 million in buildings, $16.1 million in improvements other than building, and $27.8 million in donated developer infrastructure. Business-type capital assets recorded additions of $24.4 million, which included $9.4 million in water system improvements, $0.7 million in water capital projects, $0.2 million in property acquisitions, $11.8 million in sewer system improvements, $1.8 million in sewer capital projects and $0.5 million in vehicles and equipment, offset by depreciation of $6.7 million. • Current and other assets increased by $47.4 million or 16.2 percent due to an increase of $37.4 million in governmental activities and an increase of $10.0 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.
Liabilities
• Total long-term liabilities decreased by $0.8 million to $27.7 million at June 30, 2024, which represents an decrease of 3.0 percent compared to $28.5 million at June 30, 2023. The primary factors leading to the increase in long-term liabilities for governmental activities of $0.7 million was due to the increases in net pension liability by $0.9 million, net OPEB liability of $0.1 million, compensated absences $0.4 million offset by a decrease in other long-term liabilities of $0.7 million. The primary factor leading to the decrease in business-type activities of $1.5 million is a result of increases in net pension liability of $0.1 million, offset by a decrease in other long-term liabilities of $1.6 million attributed to a reduction in long term debt.
• Net pension liability increased $1.1 million since the prior measurement date, primarily due to the City's covered payroll increasing $4.2 million year over year from 2022 to 2023. The covered payroll increase is due to the establishment of the new City of Lathrop Police Department.
• Current and other liabilities decreased $2.3 million or 8.0 percent due to a decrease of $5.9 million in governmental activities, offset by an increase of $3.6 million in business-type activities. Governmental activities recorded increases of $1.2 million in accounts payable and $1.0 million in other current assets, offset by decreases of $5.0 million in unearned revenue, and $3.1 million in deposits payable. The primary factor leading to an increase in business- type activities is an increase in accounts payable.
Deferred Outflows/Inflows
• Deferred outflows of resources increased $0.9 million to $7.1 million at June 30, 2024, which represents an increase of 1.5 percent compared to $6.2 million at June 30, 2023. The primary factor leading to the increase in deferred outflows is an increase of $0.8 million in pension and $0.1 million in OPEB. The increases are a direct result of adding additional employees and increases in salaries.
• Deferred inflows decreased by $0.1 million to $0.6 million at June 30, 2024, which represents a decrease of 14.3 percent compared to $0.7 million at June 30, 2023. The decrease of deferred inflows was primarily due to the decrease in deferred inflows related to pensions of $0.2 million, offset by an increase in OPEB of $0.1 million.
Net Position
• Unrestricted net position for governmental activities increased by $25.1 million or 42.0 percent with an ending balance of $84.9 million at June 30, 2024. For business-type activities, unrestricted net position increased by $6.4 million or 8.8 percent with a balance of $78.8 million at June 30, 2024.
10 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, 2023 and 2024
(in Thousands)
Governmental Business-Type Total Primary Total
Activities Activities Government Percent
2024 2023 Change
2023 2023 2024 2024
Revenues:
Program revenues:
Charges for services $ 18,476 $ 20,165 $ 21,194 $ 22,649 $ 39,670 $ 42,814 7.93% Operating grants and contributions 7,477 5,756 7,477 $ 5,756 -23.02% Capital grants and contributions 66,235 58,107 29,098 24,530 95,333 $ 82,637 -13.32% General revenues:
Sales and use taxes 21,285 21,039 21,285 $ 21,039 -1.16% Property taxes 10,510 12,178 • . 10,510 $ 12,178 15.87% Franchise taxes 2,285 2,773 .... $ 2,773 21.36%
Transient occupancy taxes 1,027 1,097 $ 1,097 6.82%
Other taxes 18,229 2,656 5,839 24,068 $ 2,656 -88.96%
Other miscellaneous 381 1,026 687 620 1,068 $ 1,646 54.12% Unrestricted investment earnings 3,901 10,282 953 3,603 4,854 $ 13,885 186.05% Total Revenues 149,806 135,079 57,771 51,402 207,577 186,481 -10.16% Expenses:
Governmental activities:
General government 9,351 11,905 - 9,351 11,905 27.31%
Community development 1,537 1,240 - 1,537 1,240 -19.32% Public safety 15,351 19,911 - 15,351 19,911 29.70%
Public works 36,027 25,161 - 36,027 25,161 -30.16%
Culture and leisure 3,999 4,895 - 3,999 4,895 22.41%
Interest on long-term debt 226 218 226 218 -3.54%
Business-type activities:
Water enterprise 9,130 8,809 9,130 8,809 -3.52%
Sewer enterprise 9,457 11,907 9,457 11,907 25.91%
Total expenses 63,330 18.587 20,716 85,078 84,046 1.21% Excess before transfers 83,315 71,749 39,184 30,686 122,499 102,435 -16.38%
3.144 1,808 (3,144) (1,808) 0.00%
Change in Net Position 86,459 73,557 36,040 28,878 122,499 102,435 -16.38% Net Position - Beginning 421,251 505,301 246,497 280,120 667,748 785,421 17.62% Restatements (2,410) 5,714 (2,417) (3,139) (4,827) 2,575 0.00% Net Position, Beginning, Restated 418,841 511,015 244,080 276,981 662,921 787,996 18.87% Net Position - Ending $ 505,301 $584,573 $ 280,120 $305,859 $ 785,420 $890,431 13.37% Governmental Activities
The change in net position for governmental activities decreased by $12.9 million during FY 2024 from $86.5 million to $73.6 million. Total expenses decreased by $3.2 million and revenues including transfers decreased by $16.1 million. The major factors contribution to the increase in net position in FY 2024 compared to FY 2023 are as follows:
11 Revenues
• Fees, fines and charges for service increased by $1.7 million or 9.2 percent, mainly due to developer paid plan check and inspection fees.
• Operating grants and contributions decreased by $1.7 million or 22.7 percent mainly due to a decrease in Coronavirus revenue received in the prior fiscal year. • Capital grants and contributions decreased by $8.1 million or 12.2 percent mainly due to the decrease in donation of infrastructure from developers. • General revenue decreased $6.5 million or 11.3 percent. The decrease is due decreases of $15.6 million in other taxes, offset by increases of $1.7 million in property tax, $0.5 million in other revenue and $0.5 million in franchise fees all related to increases in homes sold in the fiscal year. In addition, investment earnings increased $6.4 million, driven by higher interest income received.
Expenses
• General government expenses increased $2.6 million or 27.7 percent during FY 2024. This increase is due to annual cost of living adjustments for all employees, and an increase in general liability insurance.
• Public safety expenses increased $4.6 million or 29.9 percent primarily due to the additions of 4 officers to support the police department and the opening and staffing of the City's new Animal Center.
• Community development expenses decreased by $0.3 million or 20.0 percent mainly due to the unfunding of the Deputy Community Development Director position, after the employee was promoted to Community Development Director upon the retirement of the former director.
• Public Works expenses decreased $10.9 million or 30.3 percent primarily due to developer reimbursement decreasing in fiscal year 2024.
• Culture and leisure expenses increased by $0.9 million or 22.5 percent primarily due to the reorganization of the department and the addition of staff to in accommodate the increased demand for programs post covid.
12 The chart below shows the primary components of governmental activities revenue sources for FY 2024. Of the $135.1 million in total revenues (not including transfers) generated by governmental activities, 82 percent is attributable to four categories: capital grants and contributions (43 percent), sales and use tax (15 percent), charges for service (15 percent) and property taxes (9 percent).
GOVERNMENTAL ACTIVITIES
FY 2024 Revenues by Source
Capital grants and
contributions
43%
Operating grants and
contributions
4% Sales and use taxes
15%
Charges for services
15%
Property taxes
9%
Unrestricted anchise taxes
2%
investmenteamings Transient occupancy
Other miscellaneous Other taxes taxes
2% 1%
The chart below shows the major categories of the FY 2024 expenses for governmental activities. Of the $63.3 million in total expenses incurred by governmental activities, 98.0 percent is attributable to four categories: public works (40 percent), public safety (31 percent), general government (19 percent) and culture and leisure (8 percent).
GOVERNMENTAL ACTIVITIES
FY 2024 Expense by Source
Public safety
31%
Community
development
2%
General government
19% Public works
40%
Interest on long-term
debt
0% Culture and leisure
8%
13 Business-type Activities
The change in net position for business-type activities decreased by $7.3 million or 20.3 percent to $28.9 million in FY 2024.
The notable components of the changes in net position for business-type activities in FY 2024 are:
Water
Water net position increased by $14.4 million or 11.2 percent from $100.1 million to $111.3 million.
The increase is primarily due to capital infrastructure contributions of $8.0 million. The largest portion of net position, $69.6 million or 62.5 percent, is net investment in capital assets (e.g. land, buildings, and infrastructure). Approximately $40.2 million or 36.1 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 $0.4 million primarily due to an increase in the customer base due to new construction. Operating expenses of $8.5 million decreased by $0.2 million or 2.3 percent largely due to a decrease in operation and maintenance costs.
Sewer
Sewer net position increased by $14.5 million or 8.1 percent from $180.1 million to $194.6 million.
The increase is primarily attributed to capital infrastructure contributions of $11.8 million. The largest portion of net position, $156.0 million or 80.2 percent, is net investment in capital assets (e.g. land, buildings, and infrastructure). Approximately $38.6 million or 19.8 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's FunDs
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.
As of June 30, 2024, the City's governmental funds reported combined fund balances of $229.3 million compared to $188.5 million in FY 2023. The governmental fund balances are categorized as nonspendable, restricted, committed, assigned, or unassigned. • $8.9 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.
• $142.9 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.
• $62.3 million is reported as committed fund balance that has been limited by formal Council action for a specific purpose.
$15.3 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.
14 General Fund
The General Fund is the chief operating fund of the City. At June 30, 2024 the General Fund unassigned fund balance is $15.3 million or 24.7 percent of the $62.0 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, 2024 unassigned fund balance represented 48.0 percent of total General Fund expenditures of $31.9 million, while total fund balance represents 194.4 percent of total General Fund expenditures. At June 30, 2023, the same measures were 21.5 percent and 199.3 percent, respectively.
The General Fund ending fund balance increased by $5.6 million from $56.4 million to $62.0 million at June 30, 2024.
In FY 2024, the General Fund revenues of $42.6 million were $2.1 million or 4.7 percent lower than FY 2023 revenues of $44.7 million. Use of money and property revenue increased $0.8 million attributed to increases investment earnings, driven by higher interest income received as a result of higher interest rates. In addition, property taxes increased by $1.7 million. Revenue increases were offset by a decrease in intergovernmental revenue of $5.0 million as a result of receiving one time coronavirus relief money in fiscal year 2023.
FY 2024 General Fund expenditures of $31.9 million were $3.6 million or 12.7 percent higher than -Y 2023 expenditures of $28.3 million. The increase was primarily due to an increase of $1.8 millior in general government and $2.6 million in public safety, which was a direct result of hiring additiona staff and purchasing public safety equipment for the 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, 2024, the fund had an ending fund balance of $48.5 million, which is $4.0 million or 9.0 percent higher than FY 2023. The monies in this fund are collected from developers of specific projects.
General CIP Projects 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, 2024 is $19.6 million, which is $1.1 million or 2.5 percent higher than FY 2023.
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's financial transactions, both near-term and historic, are provided in the statement of net position and the statement of revenues, expenses, and changes in net position. In addition, these proprietary funds also present a statement of cash flows.
In FY 2024, the water utility enterprise fund increased its net position from $100.1 million to $111.3 million. Unrestricted net assets at the end of the fiscal year amounted to $40.2 million, and are available for future capital water system improvements. $69.6 million of the Water Fund's net position are net investment in capital assets and are not available for liquidation to support operations. The remaining $1.4 million is restricted to satisfy debt service obligations and covenants. 15 In FY 2024, the sewer utility fund increased its net position from $180.1 million to $194.6 million.
Unrestricted net position at the end of the fiscal year amounted to $38.6 million and is available for future capital sewer system improvements. $156.0 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 for approval. The Biennial FY 2023/2024 and FY 2024/2025 was presented to Council in June of 2023.
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, 2024, there was a $0.6 million increase in budgeted revenues between the orginal and final amended operating budget for the General Fund. The increase in budgeted revenues was primarily due to an increase in property tax revenues of $0.4 million.
Actual budgetary expenditures of $31.0 million were $7.7 million less than the amended budget as of June 30, 2024 and $0.3 million more than the original budget.
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 $598.9 million at June 30, 2024. This investment includes land, infrastructure, improvements, vehicles, equipment, and construction in progress. For the year ended June 30, 2024, net capital assets increased $53.5 million ($35.8 million in governmental activities and $17.7 million in business-type activities) compared to net capital assets at June 30, 2023. 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 decreased by $8.7 million from $43.5 million at June 30, 2023 to $34.8 million at June 30, 2024. Construction in progress for governmental activities increased by $2.2 million primarily due $17.8 million of additions in general CIP and streets projects, offset by $15.6 million of projects being transferred into service. Business-type activities contributed a decrease of $10.8 million to the total CIP as additions to the Water and Sewer Systems totaling $3.0 million were offset by $13.8 million in projects that were completed and placed into service. The completed Water System projects include well improvements. The Sewer System completed the surface water discharge project in FY 23/24.
16 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. (in thousands):
For the Fiscal Years Ended June 30, 2023 and 2024
(in Thousands)
Governmental Business-Type Total Primary
Activities Activities Government
2023 2024 2023 2024 2023 2024
Land $ 12,887 $ 13,472 $ 3,565 $ 3,739 $ 16,452 $ 17,211 Construction in Progress 28,784 30,952 14,679 3,895 43,463 34,847 Buildings 20,122 20,816 0 20,122 20,816
Improvements other than buil 60,971 71,691 202,513 230,430 263,484 302,121 Infrastructure 196,968 218,332 0 196,968 218,332
Equipment and vehicles 3,172 3,619 699 1,097 3,871 4,716 Right to use Assets 1,095 882 1,095 882
Total Capital Assets 323,999 359,764 221,456 239,161 545,455 598,925 Additional information about the City's capital assets can be found in the Notes to Basic Financial Statements, Note 4.
Debt Administration
lacement egit. During ser cure stil year, de revers eurora naso revere done ready $1.9 million to $15.6 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.
For the Fiscal Years Ended June 30, 2023 and 2024
(in Thousands)
Governmental Business-Type Total Primary
Activities Activities Government
2023 2024 2023 2023 2023 2024
2017 Bank Loan $ 7,462 $ 6,724 $ 7,462 $ 6,724
State Revolving Fund Loan 5,071 4,588 5,071 4,588
Compass Bank Loan 2,623 2,222 2,623 2,222
Financed Purchases 3,525 2,992 3,525 2,992
Total Long Term Debt 3,525 2,992 15,156 13,534 18,681 16,526 Additional information about the City's long-term outstanding debt can be found in the notes to the Basic Financial Statements, Note 6.
17 ECONOMIC FACTORS AND NExT YEAr's BUDGETS AND RATES
The City Council considered many factors when setting the Fiscal Year 2024/25 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 over the last several years. In 2023 and 2024 the city experienced an 11.1 percent and 5.4 percent, respectively, increase in its population making it the fastest growing city with a population over 30,000 in California, for two years in a row. While higher population is an exciting sign of growth, the City also recognizes some of the challenges such growth brings in the planning and management of serving our new residents.
With City Council's guidance, the City has built strong financial reserves to draw from in unknown times, we have been able to maintain our sound financial position.
In March of 2021, the City Council approved moving forward to establish a new City of Lathrop Police Department. This important decision has not been made quickly; in fact, years of financial analysis have indicated the City can save money and provide more staff in police services tailored to meet the needs of the community. The City Council's decision reflects a commitment to take action when it is in the long-term interest of our citizens.
Over the past decade, the City Council and City staff have focused on ensuring a sustainable economic future for the City of Lathrop supporting steady growth projections for the future. The City has a goal to provide an environment for strong industrial, commercial and residential growth that has resulted in a solid financial foundation. The California State Auditor Office, in its most recent report, has ranked Lathrop in the top 3% of fiscally sound cities, out of 471 cities throughout California. This has been possible because of stability in City Hall staffing, with a skilled and committed City staff team. These factors have positioned the City to be able to stand up a new Police Department to provide services that continue to meet the needs of residents, businesses, schools, community groups and visitors in Lathrop in a cost-effective manner.
Building permit issuance by the City for new residential and commercial development is the key driver used to estimate various revenue streams. These revenues are deposited into various funds.
Examples of these revenues include: sales and use taxes on construction materials and equipment; capital facility fees charged to mitigate the impact of new development-driving a need for more parks and street capital investments; system development charges (investment/tap fees) assessed to finance future capital investment for water, sewer, and storm drainage systems.
As mentioned above, the level of single-family dwelling unit building permits issued, measured at 694 in FY 2024, 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 2024/25 budget.
CONTACTING THE CITY FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability and transparency for the money it receives. If you have questions about this report or need additional financial information, contact the City of Lathrop - Finance Department, 390 Towne Centre Drive, Lathrop, California 95330, (209) 941-7320.
18 BASIC
FINANCIAL STATEMENTS
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20l
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
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22 City of Lathrop
Statement of Net Position
June 30, 2024
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments $ 239,710,610 85,256,676 324,967,286 Receivables:
Accounts (net of allowance for uncollectibles) 8,483,734 3,790,353 12,274,087 Notes and loans 20,350 20,350
605,744 224,847
1,340,746 (1,340,746) 830,591
1,431,530 1,431,530
221912 21,912
Total current assets 250,183,096 89,362,660 339,545,756 Noncurrent assets:
Capital assets:
Nondepreciable 44,423,620 7,634,302 52,057,922
Depreciable 448,754,506 304,840,151 753,594,657
Less accumulated depreciation (133,413,950) (73,313,489) (206,727,439) Total noncurrent assets 359,764,176 239,160,964 598,925,140 Total assets 609,947,272 328,523,624 938,470,8%6
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 5,086,090 749,258 5,835,348 Deferred OPEB related items 1,061,773 167,586 1,229,359 Total deferred outflows of resources 6,147,863 916,844 7,064,707
LIABILITIES
Current liabilities:
Accounts payable 12,001,667 7,109,568 19,111,235
Accrued liabilities 692,724 41,344 734,068
Accrued interest 243,306 21,562 21,562
Unearned revenue 243,306
Deposits payable 2,613,371 1,024,573 3,637,944
Due to other governments 435,650 298,787 298,787
Compensated absences 14,029 449,679
Long-term debt & loans payable 330,000 1,667,903 1,997,903 Leases payable 333,986 333,986
Total current liabilities 16,650,704 10,177,766 26,828,470 Noncurrent liabilities:
Compensated absences 2,794,650 104,327 2,898,977
Long-term debt & loans payable 1,780,000 11,867,182 13,647,182 Leases payable 548,235 548,235
Net pension liability 7,918,366 1,142,953 9,061,319
Net OPEB liability 1,314,713 207,117 1,521,830
Total noncurrent liabilities 14,355,964 13,321,579 27,677,543 Total liabilities 31,006,668 23,499,345 54,506,013
DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 187,208 29,467 216,675
Deferred OPEB related items 328,131 52,309 380,440
Total deferred inflows of resources 515,339 81,776 597,115
NET POSITION
Net investment in capital assets 356,771,955 225,625,879 582,397,834 Restricted for:
Community development 1,971,299 1,971,299
Public safety 17,770,702 17,770,702
Culture and leisure 3,127,221 3,127,221
Public works 41,726,546 41,726,546
Capital projects 78,452,405 78,452,405
Debt service 1,431,530 1,431,530
Unrestricted 84,753,000 78,801,938
163,554,938
Total net position 584,573,128 S 305,859.347 S 890.432,475 See accompanying Notes to Basic Financial Statements.
23 City of Lathrop
Statement of Activities
For the year ended June 30, 2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total • -
Governmental activities:
General government $ 11,905,173 $ 9,244,857 170,302 $ 4,789,408 $ 14,204,567 Public safety 19,911,396 390,330 1,601,637 1,991,967
Community development 1,240,390 5,455,638 194,122 2,264,853 7,914,613 Culture and leisure 4,895,105 401,615 8,773,748 9,175,363 Public works 25,161,304 4,672,841 3,790,512 42,279,411 50,742,764 Interest on long-term debt 217,739
Total governmental activities 63,331,107 20,165,281 5,756,573 58,107,420 84,029,274 Business-type Activities:
Water 8,809,160 11,263,135 10,713,883 21,977,018
11,907,501 11,386,277 : 13,816,009
Sewer 25,202,286
Total business-type activities 20,716,661 22,649,412 24,529,892 47,179,304 -
Total primary government $ 84.047,768 $ 42,814,693 5,756,573 $ 82,637,312 $ 131,208,578 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
Restatements
Net position - beginning of year, as restated
Net position - end of year
See accompanying Notes to Basic Financial Statements.
24 Net (Expense) Revenue
and Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ 2,299,394 $ $ 2,299,394
(17,919,429) (17,919,429)
6,674,223 6,674,223
4,280,258 4,280,258
25,581,460 25,581,460
(217,739) (217,739)
20,698,167 20,698,167
13,167,858 13,167,858
: 13,294,785 13,294,785
26,462,643 26,462,643
20,698,167 26,462,643 47,160,810
12,178,582 12,178,582
1,096,762 1,096,762
21,039,383 - 21,039,383
2,772,994 2,772,994
2,655,777 2,655,777
10,282,117 3,603,153 13,885,270
1,026,228 620,278 1,646,506
1,808,102 (1,808,102)
52,859,945 2,415,329 55,275,274
73,558,112 28,877,972 102,436,084
505,301,432 280,120,322 785,421,754
5,713,584 (3,138,947) 2,574,637
511,015,016 276,981,375 787,996,391
$ 584,573,128 $ 305,859,347 $ 890,432,475
See accompanying Notes to Basic Financial Statements.
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FUND
FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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City of Lathrop
Major Governmental Funds
Year Ended June 30, 2024
The funds described below were determined to be Major Funds by the City in fiscal year 2024. 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
GENERAL CIP PROJECTS CAPITAL PROJECTS FUND
To account for the expenditure of funds for projects funded from the General Fund 29 City of Lathrop
Balance Sheet
Governmental Funds
June 30, 2024
Capital Project
Special Revenue Funds Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads ASSETS
Cash and investments $ 51,300,109 $ 59,257,682 $ - $
Receivables:
Accounts (net of allowance for uncollectibles) 4,430,994 3,194 Notes and loans
Accrued interest 132,579 164,706
Due from other funds 47,759
Prepaids 21,912 :
Advances to other funds 8,838,746
-
Total assets 64,772,099 59,425,582 $ $
-
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 1,321,367 $ 3,411,423 $ : s
Accrued liabilities 692,724
Unearned revenue 243,306 -
Deposits payable 469,685 :
Due to other funds
Advances from other funds 7,498,000
Total liabilities 2,727,082 10,909,423
Fund Balances:
Nonspendable 8,860,658
Restricted 48,516,159
Committed 37,882,299
Unassigned 15,302,060
Total fund balances 62,045,017 48,516,159
Total liabilities, deferred inflows of
resources and fund balances 64,772,099 59,425,582 $
See accompanying Notes to Basic Financial Statements. 30 Capital Project
Funds
Nonmajor Total
General CIP Governmental Governmental
Projects Funds Funds
$ 22,620,116 $ 103,652,069 $ 236,829,976
5,550 4,043,996 8,483,734
20,350 20,350
43,593 264,866 605,744
47,759
: 21,912
8,838,746
$ 22,669,259 $ 107,981,281 $ 254,848,221
$ 3,021,029 $ 4,247,848 $ 12,001,667
692,724
243,306
2,143,686 2,613,371
47,759 47,759
7,498,000
3,021,029 6,439,293 23,096,827
8,860,658
94,532,014 143,048,173
19,648,230 4,593,267 62,123,796
(5,330) 15,296,730
19,648,230 99,119,951 229,329,357
$ 22,669,259 $ 107,981,281 $ 254,848,221
See accompanying Notes to Basic Financial Statements.
31 City of Lathrop
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 229,329,357 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 or the internal service funds reported below, the capital assets were adjusted a:
Nondepreciable 44,423,620
Depreciable, net 315,340,556
Total capital assets 359,764,176
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,422,037 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.
Deferred outflows of resources related to pension 5,086,090 Deferred outflows of resources related to OPEB 1,061,773 Deferred inflows of resources related to pension (187,208) Deferred inflows of resources related to OPEB (328,131) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.
Compensated absences - due within one year (435,650)
Long-term debt - due within one year (330,000)
Leases payable - due within one year (333,986)
Compensated absences - due in more than one year 85,984 Long-term debt - due in more than one year (1,780,000)
Leases payable - due in more than one year (548,235)
Net pension liability (7,918,366)
Net OPEB liability (1,314,713)
Total long-term liabilities (12,574,966)
Net Position of Governmental Activities 584,573,128
See accompanying Notes to Basic Financial Statements.
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City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
Capital Project
Special Revenue Funds Funds
Building Safety &
General Fund Capital Facility Fees Inspection Streets and Roads -
REVENUES:
Taxes and assessments 33,537,674 $ 17,889,715 $ : s
Licenses and permits 340,938
tergovernmenta 4,412,587
larges for servic 761,489
Use of money and property 3,058,960 2,621,500
Fines and forfeitures 102,903
Developer participation
Miscellaneous 414,129
Total revenues 42,628,680 20,511,304
EXPENDITURES:
Current:
General government 11,145,202
Public safety 13,203,791 : :
Community development 1,235,318
Culture and leisure 3,298,858 ..
Public works 1,065,599 2,749,219
Capital outlay 1,200,475 -
Debt service:
Principal retirement 320,000
Lease principal retirement 357,610 :
Interest and fiscal charges 57,885
Total expenditures 31,884,738 2,749,219
REVENUES OVER (UNDER)
EXPENDITURES 10,743,942 17,762,085
OTHER FINANCING SOURCES (USES):
Transfers in 8,666,210
Transfers out (13,869,501) (13.71.306) :
Lease and software subscription proceeds 145,040
Total other financing sources (uses) (5,058,251) (13,771,306) Net change in fund balances 5,685,691 3,990,779
FUND BALANCES:
Beginning of year 56,359,326 44,525,380 11,969,931 11,288,788 Restatement (11,969,931) (11,288,788)
Beginning of year, as restated 56,359,326 44,525,380
End of year 62,045,017 48,516,159 $
See accompanying Notes to Basic Financial Statements.
34 Capital Project
Funds
Nonmajor Total
General CIP Govermental Governmental
Projects Funds Funds
$ :s 13,998,234 $ 65,425,623
41,650 382,588
- 7,633,179 12,045,766
99,010,273 9,771,762
778,380 3,833,289 10,292,129
1,577,103 1,680,006
: 4,198,195 4,198,284
600,389 1,014,518
778,380 40,892,312 104,810,676
11,145,202
: 4,298.722 17,502,513
- 95 1,235,413
257,112 3,555,970
4,990 11,762,750 15,582,558
13,608,772 6,960,890 21,770,137
320,000
: 357,610
159,854 217,739
13,613,762 23,439,423 71,687,142
(12,835,382) 17,452,889 33,123,534
13,999,456 22,749,846 45,415,512
(15,966,603) (43,607,410)
: 145,040
13,999,456 6,783,243 1,953,142
1,164,074 24,236,132 35,076,676
18,484,156 45,911,516 188,539,097
28,972,303 5,713,584
18,484,156 74,883,819 194,252,681
$ 19,648,230 $ 99,119,951 $ 229,329,357
See accompanying Notes to Basic Financial Statements.
35 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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 35,076,676 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. 21,559,146 Donated capital assets are not recorded in the governmental funds, but are recognized as revenue at the acquisition value of the assets. 27,848,404
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. (13,643,373)
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. (38,309) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Long-term debt repayments 320,000
Lease and subsciption payments 357,610
Acquisition of new leases and subscriptions (145,040)
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. 1,982,914
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. (2,066,210) 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. (115,743) Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,422,037
Change in Net Position of Governmental Activities $ 73,558,112 See accompanying Notes to Basic Financial Statements.
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37 City of Lathrop
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
- Business-Type Activities - Enterprise Funds Activities Compensated
Absences Internal
Water Sewer Totals Service Fund
ASSETS
Current Assets:
Cash and investments $ 45,469,111 39,787,565 85,256,676 $ 2,880,634 Receivables:
ccounts (net of allowance for uncollectibles 2,336,704 1,453,649 3,790,353 :
crued interest 118,731 106,116 224,847
Restricted:
Cash and with fiscal agent 1,431,530 1,431,530
Total current assets 49,356,076 41,347,330 90,703,406 2,880,634 Noncurrent:
2,869,781 4,764,521 7,634,302
116,518,006 188,322,145 304,840,151
(36.210,218) (37,103.271) (73,313.489)
Net capital assets 83,177,569 155,983,395 239,160,964
Total noncurrent assets 83.177,569 155,983,395 239,160,964 Total assets 132,533,645 197,330,725 329,864,370 2,880,634
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 458,985 290,273 749,258
Deferred OPEB related items 102,341 65,245 167,586
Total deferred outflows of resources 561,326 355,518 916,844
LIABILITIES
Current liabilities:
Accounts payable 6,012,522 1,097,046 7,109,568
Accrued liabilities 41,344 41,344
Accrued interest 21,562 21,562
Deposit per abernments 993,285 31,288 1,024,573
298,787 298,787 ......
ccrued compensated absence 10,304 3,725 14,029
bans payabl 1,667,903 1,667,903
Total current liabilities 9,004,363 1,173,403 10,177,766 Noncurrent liabilities:
Advances from other funds 1,340,746 1,340,746
Accrued compensated absences 72,053 32,274 104,327 2850,634 Net pension liability 694,182 448,771 1,142,953 :
Net OPEB liability 126,426 80,691 207,117
Loans payable 11,867,182 11,867,182
Total noncurrent liabilities 12,759,843 1,902,482 14.662,325 2,880,634 Total liabilities 21,764,206 3,075,885 24,840.091 2,880,634
DEFERRED INFLOWS OF RESOURCES
eferred pension related item 17,984 11,483 29,467
eferred OPEB related iten 32,019 20,290 52,309 :
Total deferred inflows of resources 50,003 31,773 81,776
NET POSITION
Net investment in capital assets 69,642,484 155,983,395 225,625,879 Restricted for debt service 1,431,530 1,431,530
Unrestricted 40,206,748 38,595,190 78,801,938
Total net position 111,280,762 194,578,585 305,859,347 S See accompanying Notes to Basic Financial Statements.
38 City of Lathrop
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
Governmental
Business-Type Activities - Enterprise Funds Activities
-
Compensated
Absences Internal
Water Sewer Totals Service Fund
-
OPERATING REVENUES:
Sales and service charges 11,263,135 $ 11,386,277 $ 22,649,412 $ 753,783 Other income 252,555 367,723 620,278
Total operating revenues 11,515,690 11,754,000 23,269,690 753,783 OPERATING EXPENSES:
General and administrative 1,435,889 985,957 2,421,846 753,783 Maintenance and operations 4,561,096 6,688,19% 11,249,292 Depreciation expense 2,473,513 4,233,348 6,706,861
Total operating expenses 8,470,498 11,907,501 20,377,999 753,783 Operating income (loss) 3,045,192 (153,501) 2,891,691
-
NONOPERATING REVENUES (EXPENSES):
Taxes and assessments 982,572 2,041,867 3,024,439
1,958,912 3,603,153 :
Investment earnings 1,644,241
Interest expense (338,662) (338,662)
Total nonoperating revenues (expenses) 2,602,822 3,686,108 6,288,930 Income before contributions and transfers 5,648,014 3,532,607 9,180,621 CONTRIBUTIONS AND TRANSFERS:
Contributions 9,731,311 11,774,142 21,505,453
Transfers in 527,985 1,126,260 1,654,245
Transfers out (1,537,920) (1,924,427) (3,462,347)
Total contributions and transfers - 8,721,376 10,975,975 19,697,351 Change in net position 14,369,390 14,508,582 28,877,972 NET POSITION:
Beginning of year 100,050,319 180,070,003 280,120,322
Restatements (3,138,947) (3,138,947)
Beginning of year, as restated 96,911,372 180,070,003 276,981,375 -
End of year 111,280,762 194,578,585 $ 305,859,347 $
See accompanying Notes to Basic Financial Statements. 39 City of Lathrop
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Governmental
Business-Type Activities Activities
-
Compensated
Absences Internal
Water Sewer Totals Service Fund
-
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and user $ 10,920,275 S 11,351,615 $ 22,271,890 $ :
ash paid to suppliers for goods and service (3,539,274) (7,067,990) (10,607,264) Cash received from payments to others (1,398,034) (966,974) (2,365,008) 252,555 367.723 620,278 1,055,695
-
Net cash provided (used) by operating activities 6,235,522 3,684,374 9,919,896 1,055,695
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
527,985 1,126,260 1,654,245
(1,537,920) (1,924,427) (3,462,347)
(532,559) (532,559)
982,572 2,041,867 3,024,439
Net cash provided (used) by
non-capital financing activities (27,363) 711,141 683,778
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (721,684) (2,184,964) (2,906,648) (1,621,144) (1,621,144)
(455,273) (28,426) (483,699)
Net cash provided (used) by
capital and related financing activities: (2,798,101) (2,213,390) (5,011,491) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 1,958,912 1,644,241 3.603,153 -
Net cash provided (used) by investing activities 1,958,912 1,644,241 3,603,153 Net increase (decrease) in cash and cash equivalents 5,368,970 3,826,366 9,195,336 1,055,695 Cash and cash equivalents at beginning of year 41,531,671 35,961,199 77,492,870 1,824,939 Cash and cash equivalents at end of year /lon 46,900,641 39,787,565 86,688,206 2,880,634
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 3,045,192 .$ (153,501) $ 2,891,691 S -
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 2,473,513 4,233,348 6,706,861
(Increase) decrease in accounts receivable (130,599) (76,006) (206,605) Increase (decrease) in accounts payable 1,021,822 (379,794) 642,028 .....
Increase (decrease) in accrued liabilities 41,344 41,344 Increase (decrease) in unearned revenue (198,000) (198,000) Increase (decrease) in deposits payable (14,261) (14,261) Increase (decrease) in compensated absences 18,735 25,508 1,055,695 Increase (decrease) in pension and OPEB 19.120 12,210 31,330 Total Adjustments 3,190,330 3,837,875 7,028,205 1,055,695 Net cash provided (Used) by operating activities 6,235,522 3,684,374 $ 9,919,896 $ 1,055,695 Non-Cash Investing, Capital, and Financing Activities:
Donated assets $ 9,731,311 11,774,142 21,505,453 $
See accompanying Notes to Basic Financial Statements.
40 This page intentionally left blank
City of Lathrop
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Custodial
Funds
ASSETS
Cash and investments $ 6,390,069
Receivables:
Accrued interest 14,503
Restricted assets:
Cash and with fiscal agent 4,174,626
Total assets 10,579,198
LIABILITIES
Accounts payable 358,765
Deposits payable 30,747
Total liabilities 389,512
NET POSITION
Restricted for:
Individuals, organizations, and other governments 10,189,744 Total Net Position $ 10,189,744
See accompanying Notes to Basic Financial Statements.
42 City of Lathrop
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Custodial
Funds
ADDITIONS:
Collections for assessment districts 6,294,731
Receipts from others 2,241
Investment earnings 675,157
Total additions 6,972,129
DEDUCTIONS:
Administrative expenses 83,751
Contractual services 125,343
Debt service 18,144,157
Total deductions 18,353,251
Change in net position (11,381,122)
NET POSITION:
Beginning of year 21,570,866
End of year 10,189,744
See accompanying Notes to Basic Financial Statements.
43 This page intentionally left blank
44 NOTES TO BASIC
FINANCIAL STATEMENTS
45 This page intentionally left blank.
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Lathrop, California, (the City) was incorporated July 1, 1989, under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public ways and facilities/transportation, culture and leisure, and public utilities.
The financial statements of the primary government of the City of Lathrop include the activities of the City as well as the Lathrop Public Facilities Financing Corporation, which is controlled by and dependent on the City. While it is a separate legal entity, its financial activities are integral to those of the City. Its financial activities have been aggregated and merged (termed "blending") with those of the primary government of the City in the accompanying financial statements.
On April 11, 2000, the City Council formed the Lathrop Public Facilities Financing Corporation (Corporation), a non-profit public benefit corporation. The Corporation was formed to assist the City in financing the acquisition, construction, and improvement of municipal facilities. The Corporation is also empowered to acquire property. The Corporation is governed by a Board of Directors consisting of the City Council members.
B. Basis of Presentation
The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.
These Standards require that the financial statements described below be presented.
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City and its component unit). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. However, the interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. 47 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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's funds, including fiduciary funds and blended component units. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column.
All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
C. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. Major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund- type. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund
This fund accounts for all financial resources except those 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. 48 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Major Funds, Continued
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's sewer operations.
The City also reports the following fund types:
Internal Service Fund
The fund accounts for compensated absences activities, which are provided to other departments on a cost-reimbursement basis.
Fiduciary Funds
Custodial funds are used to account for assets held by the City as a custodian for certain special assessment districts. The financial activities of these funds are excluded from the entity-wide financial statement but are presented in separate Fiduciary Fund financial statements.
D. Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long- term debt and acquisitions under leases, software subscriptions, and financed purchases are reported as other financing sources.
49 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water fund, sewer fund, and internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted Net Position may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
Those revenues susceptible to accrual are use of money and property revenue, charges for services and fines and penalties. Sales taxes collected and held by the State at year-end on behalf of the City also are recognized as revenue.
E. Property Tax
The City's property taxes are levied each July 1, on the assessed values as of the prior January 1 for all real and personal property located in the City. Property sold after the assessment date (January 1) is reassessed and the amount of property tax levied is prorated.
The City has elected to receive property taxes from the County of San Joaquin (County) under the Teeter Plan. Under this program, the City receives 100% 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.
50 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
G. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
H. Accounts Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available.
I. Prepaid Expenses
Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.
J. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at the estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. The City's policy is to capitalize all capital assets with costs exceeding certain minimum thresholds.
51 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued /. Capital Assets, Continued
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 50,000
Buildings and Building Improvements 50,000
Infrastructure 50,000
Equipment, Furniture and Vehicles 10,000
Leases and Subscriptions (GASBS 87 and 96) 100,000
Leasehold Improvements 50,000
Construction in Progress for Year End Reporting 50,000 will exceed amount at completion K. Compensated Absences
City employees accumulate earned but unused vacation which can be converted to cash at termination of employment. For governmental funds, a liability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements. The remaining amounts are reported as a liability in the Statement of Net Position. Proprietary funds' liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually. 52 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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 CaPERS 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. CalPERS audited financial statements are publicly available reports that can be obtained from CaPERS' 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 June 30, 2023
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023
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.
53 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Deferred Outflows/Inflows of Resources, Continued
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" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
Q. Net Position and Fund Balance
Net Position
Net position is the excess of all the City's assets all deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net position is divided into three captions on the Statement of Net Position.
These captions apply only to net position, which is determined only at the Government-wide level, and business-type activities and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City's capital assets, less the outstanding balance of any debt issued to finance these assets and related deferred inflow of resources.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use. 54 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued
Fund Balance
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities.
The City's fund balances are classified based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances include amounts that can be used only for the specific purposes determined by a formal action of the City Council's highest level of decision-making authority. The City Council can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation.
Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose but are neither restricted nor committed. The Authority for assigning fund balance is expressed by the City Council or its designee (i.e., City Manager), as established in the City's Reserve Policy. This category includes nonspendables, when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Further detail about the City's fund balance classification is described in Note 9. 55 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued S. New Accounting Pronouncement
GASB Statement No. 100, Accounting Changes and Error Corrections - The main purpose of this Statement is to strengthen accounting and financial reporting standards with respect to accounting changes and corrections of errors. The City has implemented this statement by disclosing the nature and reasons for changes in the reporting entity as well as required disclosures for prior period adjustments.
2. CASH AND INVESTMENTS
A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.
California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City's cash on deposit or first trust deed mortgage notes with a value of 150% of the City's cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the City's name and places the City ahead of general creditors of the institution pledging the collateral. As of June 30, 2024, none of the cash with financial institutions was collateralized.
The City's investments are carried at fair value, as required by generally accepted accounting principles.
The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Investment income is allocated among funds on the basis of average monthly cash and investment balances in these funds. Interest income on certain investments is allocated based on the source of the investment and legal requirements which apply.
Cash and investments with an original maturity of three months or less are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.
56 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS, Continued
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, 2024, are as follows:
City cash and investments in primary government:
Cash and investments $ 324,967,286
Cash and investments, restricted, with fiscal agents 1,431,530 Total primary government cash and investments 326,398,816 Cash and investments in Fiduciary Funds (separate statement):
Cash and investments 6,390,069
Cash and investments, restricted, with fiscal agents 4,174,626 Total Fiduciary Funds cash and investments 10,564,695
Total cash and investments $ 336,963,511
Cash and Investments as of June 30, 2024, consist of the following:
Cash on hand 3,260
Cash with financial institutions 67,147,598
Investments 269,812,653
Total Cash and Investments $ 336,963,511
C. Investments Authorized by the California Government Code and the City's Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City's Investment Policy where it is more restrictive that addresses interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. 57 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the California Government Code and the City's Investment Policy, Continued
The City's investment policy states that all investments and deposits shall be made in accordance with the California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except for the reserve funds from proceeds of debt issues may be invested in permitted investments specified in the indenture of the debt issue. The City has further restricted authorized investments to the following:
Maximum Maximum
Percentage/ Minimum
Maximum Amount of Credit
Authorized Investment Type Maturity Portfolio Ratings
Local Government Bonds 5 years 30% A
State Bonds 5 years 30%
US Treasury Obligations 5 years None N/A
US Government Agency Issues 5 years None N/A
Banker's Acceptance 180 days 40% A
Commercial Paper, Prime Quality 270 days 25% A
Negotiable Certificates of Deposit 5 years 30% N/A
Repurchase and Reverse Repurchase Agreements 30 days None Medium - Term Notes 5 years 30% A
Money Market Funds N/A 20% AAAm
Mutual Funds 5 years 20% AAAm
Local Agency Investment Fund ("LAIF") N/A None N/A
Joint Power Authority Pool N/A None N/A
Supranational Obligations 5 years 30% AA
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 Vone
US Agency Securities None None None
Mortgage-caked Securities 3 years None None
Banker's Acceptance (must be dollar denominated) 360 days None None Certificates of Deposit None None None
Commercial Paper 180 days None None
Money Market Funds N/A None None
Local Government Bonds None None None
County Pool N/A None None
Local Agency 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. 59 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 y bond trustees) to market interest rate fluctuations is provided by the following table that shows th istribution of the City's investments by maturity or earliest call dat Maturities
12 Months or
Investment Type Less 13 to 24 Months 25 to 60 Months Total - - 5 $ 111,082,971 $ 111,082,971
U.S. Treasury Obligations -
U.S. Government Agencies Issues - 1,627,448 7,790,977 9,418,425 Supranational Obligations 3,687,735 3,687,735
Local Agency Investment Fund 74,595,180 74,595,180
:
California Asset Management Program 67,386,624 67,386,624 Money Market Mutual Funds 3,641,718 3,641,718
Total Investments $ 145,623,522 $ 1,627,448 $ 122,561,683 269,812,653 Cash in Banks and On Hand 67,150,858
Total City Cash and Investments $ 336,963,511
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, 2024, the fair value factor for the City's investments in LAIF was 0.996316042. 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, 2024, LAIF had 3.00% of its portfolio invested in structured notes and asset- backed securities as compared to 2.78% in the prior year.
At June 30, 2024, the City's investment position in the California Asset Management Program (CAMP) was $67,386,624. The CAMP Pool is a short-term cash reserve portfolio and cash management vehicle.
The Pool is managed to maintain a dollar-weighted average portfolio maturity of 60 days or less and seeks to maintain a constant net asset value (NAV) per share of $1.00. CAMP is rated AAA by Standard & Poor's. The total net asset value per share is $0.9997 and the total net assets (in millions) is $18,145.
Weighted average maturity is 45 days and a 7-day yield is 5.48%. 60 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS, Continued
E. Interest Rate Risk, Continued
Bond proceeds accounts are subject to a one-time deposit with no cap and are set up with a monthly draw down schedule.
F. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally cepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair valu the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs at 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, 2024:
Investments by Fair Value Level: Level 1 Level 2 Total
U.S. Treasury Obligations $ $ 111,082,971 111,082,971
: 9,418,425 9,418,425
U.S. Government Agencies Issues
Supranational Obligations 3,687,735 3,687,735
Total Investments by Fair Value Level $ $ 124,189,131 124,189,131 Investments Measured at Amortized Cost:
Local Agency Investment Fund 74,595,180
California Asset Management Program 67,386,624
Money Market Mutual Funds 3,641,718
Cash in Banks and On Hand 67,150,858
Total Cash and Investments $ 336,963,511
For investments classified within Level 2 of the fair value hierarchy, the City's custodians generally use a multi-dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker dealer quotes, issuer spreads and benchmark securities, among others. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.
G. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2024, as provided by Standard and Poor's, are as follows:
61 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS, Continued
G. Credit Risk, Continued
Investment Type AAAm AAA Total
Supranational Obligations - $ 3,687,735 3,687,735
U.S. Government Agencies Issues 9,418,425 9,418,425
:
US Treasury Obligations 111,082,971 111,082,971
Money Market Mutual Funds 3.641,718 3,641,718
Totals $ 3,641,718 $ 124,189,131 127,830,849
Not Rated:
Local Agency Investment Fund 74,595,180
California Asset Management Program 67,386,624
Total Investments $ 269,812,653
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, 2024.
3. INTERFUND TRANSACTIONS
A. Long-Term Advances
As of June 30, 2024, the Sewer Enterprise Fund had a remaining balance of $1,340,716 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. The remaining balance was $7,498,000 as of June 30, 2024.
B. Short-Term Activities
As of June 30, 2024, the General Fund loaned the State Grants Special Revenue Fund (non-major governmental fund) $47,759 to cover a temporary cash shortfall. 62 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024, were as follows:
Transfers In
- General Non-Major
General cIP Governmental
Transfers Out Fund Projects Funds Water Sewer Total
Major Funds:
General Fund $ 4,781,654 $ 9,087,847 - $ : 513,70,501
Capital Facilities Fee Special Revenue Fund 477,900 8,690,000 4,603,406 13,771,306 Non-Major Governmental Funds 4,880,740 373,025 9,058,593 527,985 1,126,260 15,966,603 Major Enterprise Funds:
Water 1,512,920 25,000 1,537,920
129,777 : 1,924,427
Sewer 1,794,650
Total $ 8,666,210 $13,999,456 $22,749,846 $ 527,985 $1,126,260 $47,069,757 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 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 to pay for overhead costs and projects.
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.
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
4. CAPITAL ASSETS
A. Capital Asset Additions and Retirements
Capital assets activity for the year ended June 30, 2024, is as follows:
Balance Balance
Governmental Activities July 1, 2023 Additions Retirements Transfers June 30, 2024 Capital assets not being depreciated:
Land $ 12,887,450 $ 584,590 $ $ $ 13,472,040
Construction in Progress 28,783,692 17,791,694 (15,623,806) 30,951,580 -
Total capital assets not being depreciated 41,671,142 18,376,284 (15,623,806) 44,423,620 Capital assets being depreciated/amortized:
Buildings 25,109,553 171,862 1,244,365 26,525,780
Improvements 93,177,538 1,693,209 14,379,441 109,250,188 Equipment and Vehicles 6,913,318 1,301,754 (14,553) 8,200,519 Infrastructure 275,269,939 27,848,404 303,118,343
Equipment and Vehicles - Right-to-use Assets 1,643,639 16,037 1,659,676 Total capital assets being depreciated/amortized 402,113,987 31,031,266 (14,553) 15,623,806 448,754,506 Less accumulated depreciation/amortization:
Buildings (4,987,298) (722,448) (5,709,746)
Improvements (32,206,372) (5,352,794) (37,559,166)
Equipment and Vehicles (3,740,454) (855,742) 14,553 (4,581,643) Infrastructure (78,302,157) (6,483,783) (84,785,940)
Equipment and Vehicles - Right-to-use Assets (548,849) (228,606) (777,455) Total accumulated depreciation/amortization (119,785,130) (13,643,373) 14,553 (133,413,950) Net capital assets being depreciated/amortization 282,328,857 17,387,893 15,623,806 315,340,556 Governmental Activities Capital Assets, Net $323,999,999 $35,764,177 $ $ $359,764,176 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
4. CAPITAL ASSETS, Continued
A. Capital Asset Additions and Retirements, Continued
Balance Balance
Business-type Activities July 1, 2023 Additions Retirements Transfers June 30, 2024 Capital assets not being depreciated:
Land $ 3,565,179 174,048 $ - $ 3,739,227
Construction in Progress 14,679,654 3,012,151 : (13,796,730) 3,895,075 Total capital assets not being depreciated 18,244,833 3,186,199 (13,796,730) 7,634,302 Capital assets being depreciated:
Buildings 3,072 3,072
20.678.027 :
Improvements 267,920,838 13,796,730 302,395,595
Equipment and Vehicles 1,905,515 547,875 (11,906) 2,441,484 Net capital assets being depreciated 269,829,425 21,225,902 (11,906) 13,796,730 304,840,151 Less accumulated depreciation:
Buildings (3,057) (15) (3,072)
Improvements (65,407,776) (6,558,262) ..i. (71,966,038) Equipment and Vehicles (1,207,701) (148,584) 11,906 (1,344,379) Total accumulated depreciation (66,618,534) (6,706,861) 11,906 (73,313,489) Net capital assets being depreciated 203,210,891 14,519,041 13,796,730 231,526,662 Business-type Activities Capital Assets, Net $ 221,455,724 $ 17,705,240 $ $ $ 239,160,964 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 $ 685,385
Public safety 2,120,728
Public works 9,521,934
Culture and leisure 1,315,326
Total Governmental Activities $ 13,643,373
65 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
4. CAPITAL ASSETS, Continued
C. Depreciation Allocation, Continued
Business-Type Activities:
Water $ 2,473,513
Sewer 4,233,348
Total Business-Type Activities 6,706,861
5. COMPENSATED ABSENCES
The following is a summary of changes in the City's compensated absences for the fiscal year ended June 30, 2024:
Balance Balance Due within
June 30, 2023 Additions Retirements June 30,2024 one year Governmental activities $ 2,438,209 $ 798,601 $ (6,510) $ 3,230,300 $ 435,650 Business-type activities 92,848 28,174 (2,666) 118,356 14,029 Total $ 2,531,057 826,775 $ (9,176) $ 3,348,656 $ 449,679
6. LOANS PAYABLE & OTHER LONG-TERM DEBT
A. The City's Loans Payable & Other Long-Term Debt
The City's long-term debt activities for the year ended June 30, 2024, is as follows:
Balance Balance
Governmental Activities Long-Term Debt June 30, 2023 Additions Retirements June 30, 2024 Current Portion Financing Agreement Obligation
2016 Financing Agreement
2.55%, due 07/15/2029 $ 2,430,000 $ - 5 (320,000) $ 2,110,000 $ 330,000 Leases and SBITAS (See Note 8) 1,094,791 145,040 (357,610) 882,221 333,986 Total Governmental Activities $ 3,524,791 $ 145,040 $ (677,610) $ 2,992,221 $ 663,986 Balance Balance
Business-type Activities Long-Term Debt June 30, 2023 Retirements June 30, 2024 Current Portion Capital Loan Obligation
2017 Bank Loan
2.89%, due 06/01/2032 $ 7,461,642 $ 737,145 $ 6,724,497 $ 758,604 State Revolving Fund Loan
2.3086%, due 07/01/2032 5,071,412 483,268 4,588,144 494,489 Compass Bank Loan
3.50%, due 06/01/2029 2,623,175 400,731 2,222,444 414,810 Total Business-type Activities $ 15,156,229 $ 1,621,144 $ 13,535,085 $ 1,667,903 66 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024:
Governmental Activities: Direct Borrowings
2016 Financing Agreement
For the Year
Ending June 30 Principal Interest
2025 330,000 49,598
2026 340,000 41,055
2027 345,000 32,321
2028 360,000 23,333
2029 360,000 14,153
2030 375,000 4,781
Total $ 2,110,000 $ 165,241
Business-Type Activities: Direct Borrowings
2017 Bank Loan State Revolving Fund Loan Compass Bank Loan For the Year
Ending June 30 Principal Interest Principal Interest Principal Interest 2025 758,604 188,857 494,489 108,727 414,810 74,190
2026 780,687 166,774 505,970 97,376 429,456 59,544
2027 803,412 144,048 517,719 85,762 444,618 44,382
2028 826,800 120,660 529,740 73,878 460,316 28,684
2029 850,869 96,592 542,040 55,533 473,244 12,432
2030-2033 2,704,125 138,256 1,998,186 93,319
Total S 6,724,497 855,187 $ 4,588,144 $ 514,595 $ 2,222,444 $ 219,232 67 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 $6,640,000. A total of $6,787,680 was deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded 2004 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 a twenty-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.
68 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2024, net revenues of the Water Enterprise Fund amounted to $3,513,163 which represented coverage of 3.09 times the $1,137,876 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, 2024 is as follows:
Mossdale Assessment District Refunding 2015 4,250,000
Mossdale Village Refundings 2023 Series A 9,260,000
Crossroad Assessment District Series 2015 8,340,000
Joint Wastewater Project CFD 2003-2 4,055,000
Lathrop Sanitary Sewer Assessment District No. 1 130,000 Community Facilities District No. 2018-1 45,330,000
69 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 Balance
Description Date Terms Amount Rate June 30, 2024
Rubrik data backup 7/26/2022 3 years 3,547 0.00% 12,033 Police cameras and tasers 3/15/2023 45 years 93,187 0.00% 263,113 Camera software 3/15/2023 45 years 88,766 0.00% 247,075 Integrated police software 3/13/2023 5 years 110,000 0.00% 330,000 Total Leases and SBITAs 882,221
Integrated police software - original subscription amount: $550,000 - 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: $412,521 - 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. 70 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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
2025 333,986
2026 293,462
2027 254,773
882,221 $
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, 2024, 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, 2024, the Exposure and Emergency Reserves amounted to $1,761,384.
71 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
9. FUND BALANCE, Continued
B. Fund Balances
Detailed classifications of the City's fund balances, as of June 30, 2024, are below:
Other
Capital General CIP Governmental
General Fund Facilities Fee Projects Funds Total
Nonspendables:
Items not in spendable form:
Advances to other funds $ 8,838,746 $ - S - S : $ 3.831,912 Prepaids 21,912 : 21,912
Total Nonspendable 8,860,658 8,860,658
Restricted for:
Recycling projects 1,862,241 1,862,241
Capital Projects 10,559,143 29,415,396 39,974,539
Public safety 17,770,702 17,770,702
Traffic and transportation 17,429,521 155,056 17,584,577 Parks and recreation 20,527,495 3,127,221 23,654,716
Streets and roads contracts - 41,571,490 41,571,490
Measure K 520,850 520,850
Community improvements : 109,058
109,058
Total Restricted 48,516,159 94,532,014 143,048,173
Committed to:
Capital projects - 3,399,079 - 3,399,079
Street reserves 11,193,395 - - 11,193,395
Landscape reserves 3,000,000 - 3,000,000
Public safety 8,472,598 8,472,598
Traffic and transportation 4,593,267 4,593,267
Parks and recreation 7,776,553 7,776,553
Retirement stability 5,300,000 : 5,300,000
Water & sewer rate stabilization 4,747,725 : 4,747,725
Capital equipment 3,337,190 3,337,190
Corporation yard reserves 4,000,000 : 4,000,000
Measure C essential city services 5,838,572 - 5,838,572 Economic development 465,417 465,417
Total Committed 37,882,299 19,648,230 4,593,267 62,123,796 Unassigned:
Contingency/emergency 7,045,537 - 7,045,537
Fiscal stabilization :
1,850,000 1,850,000
Fund deficits (5,330) (5,330)
Residual fund balance 6,406,523 6,406,523
Total Unassigned 15,302,060 (5,330) 15,296,730
Total Fund Balances $ 62,045,017 $ 48,516,159 $ 19,648,230 $ 99,119,951 $229,329,357 72 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
9. FUND BALANCE, Continued
C. Encumbrances
The City utilized an encumbrance system during fiscal year 2024 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, 2024, that will be carried over to the following fiscal year:
General Fund 5,704,940
General CIP Projects 15,964,748
Non-Major Funds 31,225,267
10. PENSION PLAN
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 (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.
Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors 4 rate plans (3 miscellaneous and 1 safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees, and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 73 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
10. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan's provisions and benefits in effect at June 30, 2024, are summarized as follows:
Miscellaneous
Classic Tier 2 PEPRA
Prior to July 1, 2010 to After
Hire Date January 1, 2013 December 31, 2012 December 31, 2012 Benefit formula 2% 55 2% @ 60 2% @62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payment Monthly for life Monthly for life Monthly for life Retirement age 55 60 62
Monthly benefits, as a % of annual salary 2.00% 2.00% 2.00% Required employee contribution rates 6.93% 6.93% 7.75%
Required employer contribution rates 11.84% 10.10% 7.68% Required UAL payment $498,721 $0 $0
Safety - PEPRA
On or after
Hire Date January 1, 2013
Benefit formula 2% @57
Benefit vesting schedule 5 years service
Benefit payment Monthly for life
Retirement age 57
Monthly benefits, as a % of annual salary 2.70%
Required employee contribution rates 14.50%
Required employer contribution rates 14.72%
Required UAL payment $0
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 CaPERS. 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, 2023, the City's total contributions to the Plan were $2,013,295.
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability (asset) of the Plan of $ 9,061,319.
74 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The City's net 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, 2022 rolled forward to June 30, 2023 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, 2022 and 2023 were as follows:
Proportion - June 30, 2022 0.06897%
Proportion - June 30, 2023 0.07263%
Change - Increase (Decrease) 0.00367%
For the year ended June 30, 2024, the City recognized pension expense of $2,391,446. At June 30, 2024 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 $ 2,295,039 $ Changes in assumptions 546,992
Differences between actual and expected experience 463,791 Changes in employer's proportion 542,970
Difference in proportionate share of contributions 520,444 144,934 Net difference projected and actual investment earnings 1,466,112 Total $ 5,835,348 $ 216,675
75 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
10. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$2,295,039 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, 2025. 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
2025 $ 1,129,762
2026 819,296
2027 1,332,510
2028 42,066
Actuarial Assumptions - For the measurement period ended June 30, 2023, the total pension liability was determined using the following assumptions:
Valuation date June 30, 2022
Measurement date June 30, 2023
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 CaPERS Membership Data for all Funds Post retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 2.30% thereafter. (1) The mortality table used was developed based on CaPERS specific data. The rates incorporate Generational Mortality to caputure ongoing mortality improvements using 80% of Scale MP 2020 published by Society of Actuaries. For more details on this table, please refer to the December 2021 experience study report that can be found on the CalPERS website.
76 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2023 for the Plan was 6.90%. 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 CaPERS website.
In determining the long-term expected rate of return, CaPERS 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% 4.54%
Global Equity - non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
(a) - An expected inflation of 2.30% used for this period. (b) - Figures are based on the 2021-22 Asset Liability Management study. 77 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90%) or 1- percentage point higher (7.90%) than the current rate:
1% Decrease 5.90%
Net Pension Liability $ 14,540,810
Current Discount Rate 6.90%
Net Pension Liability $ 9,061,319
1% Increase 7.90%
Net Pension Liability $ 4,551,448
Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is available in the separately issued CaPERS financial reports.
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.
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 CalPERS 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 CaPERS, 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.
78 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 CalPERS 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 a summary of Plan benefits by employee group as of June 30, 2024:
Hire Date Benefit Prior to Retiree's (or Surviving Benefit After Retiree's (or Surviving Tier Retirement Date Eligibility
Spouse's) Eligibility for Medicare Spouse's) Eligibility for Medicare Benefit according to previous Unequal PEMHCA Resolution (i.e., no change Age 50 within 5 for this group). 100% of premium for the retiree and any eligible covered 1 Before 7/1/2014 On or before years of PERS dependents, up to $1,536 per month in 2018, increasing by 5100 each calendar 12/31/2014 service
year until such time as it is equal to active employee per month in each City contribution.
Age 50 within 5
years of PERS PEMHCA Minimum Employer
Contribution (MEC) PEMHCA Minimum Employer
2 Before 7/1/2014 After 12/31/2014 service
Age 55 within 5 100% of the premium for retiree plu Contribution (MEC) years of PERS one up to the monthly cap for active
service employees*
Age 50 within 5 PEMHCA Minimum Employer
years of PERS Contribution (MEC)
service
100% of the premium for retiree and
dependants, up to the following PEMHCA Minimum Employer 2 After 7/1/2014 Any
Age 55 within 5 percantages of the monthly cap for Contribution (MEC) years of PERS active employees*
service 5 years of service: 25%
10 years of service: 50%15
years of service: 100%
* In 2024, the City contributed a maximum of $1,991 per month toward medical coverage for active employees and their dependents. This amount will increase annually by 50% of premium increase for the median cost medical plan, not to exceed
5.5% per year.
For the measurement period ended June 30, 2023, the City's contributions to the Plan were $342,016, which were comprised of contributions to the trust of $220,192 and implicit subsidy payments of $121,824.
City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2023:
Active Employees 141
Inactive employees or beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 11 Total 178
B. Net OPEB Liability
Actuarial Methods and Assumptions - The City's net OPEB liability was measured as of June 30, 2023, and the total OPEB liability was determined by an actuarial valuation dated June 30, 2023. These are the following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost, level percent of pay Actuarial Assumptions:
Discount Rate 6.15%
Inflation 2.50%
Payroll Growth 3.00%
Investment Rate of Return 6.15%
Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2017 Healthcare Trend Rate Actual in 2024, 9.0% in 2025, then 6.0% decreasing to 3.9% in 2075 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.
80 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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, 2023, the discount rate increased to 6.15% from 6.10%, demographic assumptions were updated from the CalPERS 2017 experience study, and the healthcare trend rate was updated to the Getzen Model 2023, from the 2022_b version.
Discount Rate - The discount rate used to measure the total OPEB liability was 6.15%. 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.
81 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 6/30/2022 $ 6,340,534 $ 4,901,368 $ 1,439,166 Changes Recognized for the Measurement Period:
Service Cost 310,717 310,717
395,339 : 395,339
Interest on the total OPEB liability
Investment income 309,532 (309,532)
Contributions from the employer (342,016)
Changes in benefit terms ....
Administrative expenses
Other Expenses (one time)
Benefit payments (340,552) (340,552)
Changes of assumptions 231,797 231,797
Plan experience (203,641) (203,641)
Net changes 393,660 310,996 82,664
Balance at Measurement Date 6/30/2023 $ 6,734,194 $ 5,212,364 $ 1,521,830 D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.15%) or 1- percentage-point higher (7.15%) than the current discount rate:
Net OPEB Liability / (Asset)
Discount Rate Discount Rate Discount Rate
- 1% (5.15%) (6.15%) +1% (7.15%)
2,226,064 -5 1,521,830 $ 918,140
82 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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
$ 803,234 $ 1,521,830 2,390,267
E. OPEB Expenses and Deferred Outflows/Inflows 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 CaPERS. 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, 2024, the City recognized OPEB expense of $489,222. At June 30, 2024, 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 $ 418,251 $ Differences between actual and expected experience 353,039 Changes in assumptions 314,447 27,401
Net difference projected and actual earnings on plan investments 496,661 Total 1,229,359 $ 380,440
$418,251 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, 2025. 83 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
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 Annual
June 30 Amortization
2025 71,109
2026 64,491
2027 265,534
2028 (9,977)
2029 12,561
Thereafter 26,950
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk poor currently operating as a common risk management and insurance program for 55 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby reducing its expense.
The City's deductibles and maximum coverage follows:
Coverage Deductible CSJVRMA Excess Liability ERMA
Workers compensation $ 25,000 $ 500,000 Statutory Limits $ General and automobile liability 25,000 1,000,000 54,000,000 :
Property damage 5,000 to 10,000 25,000 1,000,000,000
High value auto program 2,000 10,000 or 50,000 1,000,000,000 Boiler and machinery Various 1,000,000,000
Employment practices liability 25,000 2,000,000 1,000,000 The City contributes its pro rata share of anticipated losses to a pool administered by CSJVRMA. Should actual losses among participants be greater than the anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro rata share of the excess. The City paid CSJVRMA premiums and ERMA premiums totaling $2,614,209 during the fiscal year ended June 30, 2024. 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. 84 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
13. COMMITMENTS AND CONTINGENCIES
The City participates in several Federal and State grant programs. These programs are subject to audits by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances have been proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
The City is subject to litigation arising in the normal course of business. These matters do not have a determined effect on the financial statements at this time.
14. PRIOR PERIOD ADJUSTMENTS
Correction of an Error in Previously Issued Financial Statements (Column A on the table):
During fiscal year 2024, the City determined errors had occurred in prior year financial statements and made the following corrections:
• Nonmajor governmental funds (total correction of $5,713,584) • To recognize revenue for old plan check and inspection fees that had been completed in prior years - This change corrected an overstatement of $4,473,657 in unearned revenue in the prior year from collections dating back to 2022. • To reclassify deposits payable as fund balance - Deposits payable was overstated by $1,239,927 for the year ended June 30, 2023, due to incorrect grouping of accounts in the general ledger.
• Enterprise funds
To correct a prior period overcharge in the Water Fund - the City had previously recognized revenue for surface water charges for developments, however, the developments used prior credits to pay for these liabilities as well as paying in cash, essentially paying twice for the same charge. This corrects the overstatement of taxes and assessments from 2021 through 2023 totaling $3,138,947.
The following page displays the prior fund balances and net positions at June 30, 2023, and the changes made as a result of error corrections and changes in reporting unit for funds moving from major to nonmajor.
85 City of Lathrop
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
14. PRIOR PERIOD ADJUSTMENTS, Continued
June 30, 2023, Change from
as previously major to Error June 30, 2023,
reported nonmajor fund correction (A) as restated
Governmental Funds:
Major Governmental Funds
General Fund $ 56,359,326 $ $ 56,359,326
Capital Facility Fees 44,525,380 :
44,525,380
Building Safety & Inspection 11,969,931 (11,969,931) -
Streets and Roads Capital Projects Fund 11,288,788 (11,288,788) General CIP Projects 18,484,156 18,484,156
Nonmajor Governmental Funds 45,911,516 23,258,719 5,713,584 74,883,819 Total Governmental Funds $ 188,539,097 $ $ 5,713,584 $ 194,252,681 Proprietary Funds:
Major Enterprise Fund
Vater Func $ 100,050,319 - $ (3,138,947) $ 96,911,372
Sewer Fund 180,070,003 180,070,003
Total Enterprise Funds $ 280,120,322 $ $ (3,138,947) $ 276,981,375 Government-Wide:
Governmental Activities $ 505,301,432 $ 5,713,584 $ 511,015,016 Business-Type Activities 280,120,322 (3,138,947) 276,981,375 Total Primary Government $ 785,421,754 $ - $ 2,574,637 $ 787,996,391
15. SUBSEQUENT EVENT
On August 12, 2024, the City awarded a $42.3 million construction contract for the capacity expansion of the City's wastewater treatment facility. Funding is to be split 80% / 20% between a local development project developer and the City, respectively. The project is expected to be completed in the fiscal year ending June 30, 2026.
86 REQUIRED
SUPPLEMENTARY INFORMATION
87 City of Lathrop
Required Supplementary Information
For the year ended June 30, 2024
Cost-Sharing Multiple Employer Plan
Schedule of Proportionate Share of the Net Pension Liability - Last 10 Fiscal Years 6/30/2016 6/30/2017 6/30/2018
Proportion of the net pension liability 0.04556% 0.04980% 0.05243% Proportionate share of the net pension liability $ 3,127,249 $ 4,309,662 $ 5,199,968 Covered payroll $ 4,364,310 $ 5,148,017$ 5,568,372
Proportionate share of the net pension
liability as percentage of covered payroll 71.66% 83.71% 93.38% Plan's (PERF-C) fiduciary net position
as a percentage of the total pension liability 78.40% 74.06% 73.31% Notes to the schedule:
The CalPERS 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 CalPERS mortality assumptions were adjusted in fiscal year 2019. 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
0.05269% 0.05586% 0.05897% 0.05487% 0.06897% 0.07263%
$ 5,077,307 $ 5,723,799 $ 6,416,539 2,967,660 $ 7,966,383 $ 9,061,319 $ 6,004,176 $ 6,384,728 $ 6,808,162 $ 7,021,189 $ 8,113,507 $ 12,345,922
84.56% 89.65% 94.25% 42.27% 98.19% 73.40%
75.26% 75.26% 75.10% 88.29% 76.68% 76.21%
City of Lathrop
Required Supplementary Information
For the year ended June 30, 2024
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 4,364,310 $ 5,148,017 $ 5,568,372 $ 6,004,176 Contributions as a percentage of
covered payroll 11.99% 7.17% 7.79% 7.76%
Note to Schedule:
Methods and assumptions used to determine contribution rates:
Valuation date (for contractually 6/30/2012 6/30/2013
required contribution): 6/30/2014 6/30/2015
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 CaPERS Experience Study adopted by the CalPERS Board. 90 2020 2022 2023 2024
1,200,271 $ 2,013,295 $ 2,295,039
(917,576) (1,062,215) (1,200,271) (2,013,295) (2,295,039) $ $ $ $ $
$ 6,384,728 $ 6,808,162 $ 7,021,189 8,113,507 $ 12,345,922 $ 16,478,751
12.01% 13.48% 15.13% 14.79% 16.31% 13.93%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value Market Value
2.75% 2.63% 2.50% 2.50% 2.50% 2.50%
(2) (2) (2) (2) (2) (2)
7.375% 7.25% 7.00% 7.00% 7.00% 6.80%
3) (3) (3)
(4) (4) (4)
91 City of Lathrop
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Fiscal Years* Fiscal year End 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total OPEB Liability
Service cost 228,075 231,377 $ 238,897 247,448
Interest on the total OPEB liability 366,257 359,416 378,925 372,499 Differences between expected and actual experience (430,189) : (134,660) Changes of assumptions 42,010 (62,441) :
Benefit payments (299,940) (314,423) (324,785) (404,342) Net change in the total OPEB liability (93,787) 276,370 95,936 215,605 Total OPEB liability - beginning 5,154,131 5,060,344 5,336,714 5,432,650 Total OPEB liability - ending (a) $ 5,060,344 $ 5,336,714 $ 5,432,650 5,648,255 Plan Fiduciary Net Position
Contribution -employer $ 471,077 495,719 $ 459,510 486,383 Net investment income 307,578 276,193 230,777 151,173
Benefit payments (299,940) (314,423) (324,785) (404,342) Other expense (4,582)
Administrative expense (1,576) (1,813) (825) (2,094)
Net change in plan fiduciary net position 477,139 451,094 364,677 231,120 Plan fiduciary net position - beginning 2,984,872 3,462,011 3,913,105 4,277,782 Plan fiduciary net position - ending (b) $ 3,462,011 $ 3,913,105 4,277,782 4,508,902 Net OPEB Liability - ending (a) - (b) $ 1,598,333 1,423,609 $ 1,154,868 $ 1,139,353 Plan fiduciary net position as a percentage of the total OPEB liability 68.41% 73.32% 78.74% 79.83% Covered employee payroll $ 5,982,337 $ 6,377,387 $ 6,358,722 $ 6,549,484 Net OPEB liability as a percentage of covered-employee payroll 26.72% 22.32% 18.16% 17.40% Assumptions used to develop the results are shown below:
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Discount Rate 7.00% 7.00% 6.80% 6.80%
Valuation Date 6/30/2017 6/30/2019
Actuarial Cost method Entry Age Normal Entry Age Normal Amortization method: Closed 30 years Closed 30 years
Assets valuation method Market Value Market Value
Inflation 2.75% 2.50%
7.5% in Jan 2019, step down 5.4% in Jan 2021, Fluctuates Healthcare cost trend rates .5% per year to 5.0% by 2024 down to 4.0% by 2076 Salary Increases 3.25% 3%
Discount Rate 7.00% 6.80%
Retirement age From 50 to 75 From 50 to 75
Mortality 2014 CalPERS Experience 2017 CaPERS Experience Mortality Improvement MacLeod Watts Scale 2017 MacLeod Watts Scale 2018 * Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. 92 6/30/2022 6/30/2023 6/30/2024
254,871 $ 301,667 310,717
388,811 374,645 395,339
94,590 (203,641)
231,797
(370,644) (351,661) (340,552)
367,628 324,651 393,660
5,648,255 6,015,883 6,340,534
$ 6,015,883 $ 6,340,534 $ 6,734,194
$ 435,828 517,163 $ 342,016
308,766 (1,030,633) 311,004
(370,644) (351,661) (340,552)
886,742
(1,642) (1,453) (1,472)
1,259,050 (866,584) 310,996
4,508,902 5,767,952 4,901,368
$ 5,767,952 $ 4,901,368 $ 5,212,364
$ 247,931 $ 1,439,166 $ 1,521,830
95.88% 77.30% 77.40%
$ 7,838,544 $ 9,931,244 $ 15,989,6327
3.16% 14.49% 9.52%
6/30/2021 6/30/2022 6/30/2023
6.10% 6.10% 6.15%
6/30/2021 6/30/2023
intry Age Norma Entry Age Normal
losed 30 years Closed 30 years
Market Value Market Value
2.50% 2.50%
5.8% in Jan 2023, decreasing to 9.0% in 2025, decreasing to 3.9%
3.9% by 2076 by 2075
3% 3%
6.10% 6.10%
From 50 to 75 From 50 to 75
CaPERS 2021 Experience CaPERS 2021 Experience
Maci eod Watts Scale 2022 Mact eod Watts Scale 2022
93 City of Lathrop
Required Supplementary Information
For the year ended June 30, 2024
Schedule of OPEB Contributions - Last 10 Fiscal Years*
Fiscal Year Ended 2018 2019 2020 2021 2022
Actuarially determined contribution $ 389,509 $ 359,460 369,969 361,138 $ 368,885 Contributions in relation to actuarially determined
contributions (495,719) $ (459,510) $ (396,085) (435,828) $ (517,163) Contribution deficiency (excess) (106,210) (100,050) $ (26,116) $ (74,690) $ (148,278) Covered employee payroll 6,377,387 $ 6,358,722 $ 6,549,484 $ 7,838,544 $ 9,931,244 Contributions as a percentage of covered employee 6.11% 5.65% 5.65% 4.61% 3.71% payroll
• Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of mplementation. 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 7/1/2015 6/30/2017 6/30/2019
Entry Age
Actuarial Cost method Vormal Level % Entry Age Normal Level % of pay Entry Age Normal Level % of pay of pay
Amortization method: Closed 30 Years Closed 30 Years Closed 30 Years Amortization Period: 23 Yrs remain 22 Yrs remain | 21 Yrs remain 20 Yrs remain || 19 Yrs remain Assets valuation method Market Value Market Value Market Value Inflation 2.75% 2.75% 2.50%
7.5% in Jan 2017,
step down to 7.5% in Jan 2019, step down to .5% 5.4% in Jan 2021, flucates down to Healthcare cost trend rates per year to 5.0% by 2024 4.0% by 2076 5% per year to
4.5% by 2023
Salary Increases 3.25% 3.25% 3.00%
Investment rate of return 7.00% 7.00% 6.70%
Retirement age From 50 to 75 From 50 to 75 From 50 to 75 2014 CalPERS
Mortality Experience 2014 CaPERS Experience Study 2017 CaPERS Experience Study Study
MacLeod Watts
Mortality Improvement Scale 2014 Macleod Watts Scale 2017 MacLeod Watts Scale 2018 94 2023 2024
$ 405,006 $ 418,251
$ (405,006) $ (418,251)
$ $
15,989,632 $ 18,558,796
2.53% 2.25%
6/30/2021
Entry Age Normal Level % of pay
Closed 30 Years
18 Yrs remain ||17 Yrs remain
Market Value
2.50%
5.8% in 2023 decreasing to 3.9% by
2076
3.00%
6.10%
From 50 to 75
2017 CalPERS Experience Study
MacLeod Watts Scale 2022
City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 26,390,000 $ 26,849,006$ 33,537,674 $ 6,688,668 icenses and permit 292,306 292,306 340,938 48,632
tergovernmenta 3,560,000 3,560,000 4,412,587 852,587
Charges for services 523,694 557,860 761,489 203,629
Use of money and property 304,964 675,229 3,058,960 2,383,731 Fines and forfeitures 100,400 100,400 102,903 2,503
Miscellaneous 411,800 411,800 414,129 2,329
Total revenues 31,583,164 32,446,601 42,628,680 10,182,079 EXPENDITURES:
Current:
General government
City council 80,160 192,135 168,325 23,810
City manager 1,032,986 1,572,440 1,455,172 117,268
City clerk 362,760 396,760 382,661 14,099
City attorney 830,487 887,328 791,038 96,290
Personnel 772,352 812,852 576,876 235,976
Central services 1,836,490 1,993,990 1,666,896 327,094
Finance 1,942,736 2,128,108 1,830,379 297,729
Information technology 3,518,373 3,701,462 3,534,881 166,581 Measure C 821,506 923,957 738,974 184,983
- -
Total general government 11,197,850 12,609,032 11,145,202 1,463,830 Public safety
Administration 3,341,492 3,035,072 2,484,014 551,058
Community services 1,470,517 1,536,232 1,509,948 26,284 Operations 6,955,713 7,128,375 6,938,303 190,072
Support 2,154,521 2,322,623 2,271,526 51,097
Total public safety 13,922,243 14,022,302 13,203,791 818,511 Community development
Planning 989,061 2,471,489 1,235,318 1,236,171
-
Total community development 989,061 2,471,489 1,235,318 1,236,171 96 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund, continued
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Culture and leisure
Administration 482,559 487,002 397,820 89,182
Senior center 159,097 161,647 157,765 3,882
Recreation programs 96,774 136,774 130,451 6,323
Special events 237,948 271,048 211,902 59,146
Youth development 370,457 444,607 283,599 161,008
Sports 341,601 337,893 281,598 56,295
Facilitates and library 212,135 270,035 184,114 85,921
City hall 541,490 605,133 486,062 119,071
Building maintenance 403,420 508,609 271,704 236,905
Park and landscape maintenance 1,269,723 1,682,729 893,843 788,886 Total culture and leisure 4,115,204 4,905,477 3,298,858 1,606,619 Public works
Administration 771,632 1,071,149 826,960 244,189
Utility engineering 255,494 272,549 238,639 33,910
Total public works 1,027,126 1,343,698 1,065,599 278,099 Capital outlay 498,200 4,075,355 1,200,475 2,874,880
Debt service:
Principal retirement 320,000 320,000 320,000
Lease principal retirement 357,610 (357,610)
Interest and fiscal charges 57.900 57,900 57,885
Total expenditures 32,127,584 39,805,253 31,884,738 7,920,515
REVENUES OVER (UNDER)
EXPENDITURES (544,420) (7,358,652) 10,743,942 18,102,594 OTHER FINANCING SOURCES (USES):
Transfers in 10,429,160 11,492,811 8,666,210 (2,826,601) Transfers out (9,421,420) (15,818,116) (13,869,501) 1,948,615 Lease proceeds 145,040 145,040
-
Total other financing sources (uses) 1,007,740 (4,325,305) (5,058,251) (877,986) Net change in fund balances 463,320 $ (11,683,957) 5,685,691 $ 17,369,648 FUND BALANCES:
Beginning of year 56,359,326
End of year $ 62,045,017
97 City of Lathrop
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Facility Fees
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 20,226,137 $ 23,215,769 S 17,889,715 $ (5,326,054) - 2,621,500 2,621,500
403,168 403.168 89 (403,079)
Total revenues 20,629,305 23,618,937 20,511,304 (3,107,633) EXPENDITURES:
Current:
Public works 243,763 2,646,453 2,749,219 (102,766)
Total expenditures 243,763 2,646,453 2,749,219 (102,766)
REVENUES OVER (UNDER)
EXPENDITURES 20,385,542 20,972,484 17,762,085 (3,210,399) OTHER FINANCING SOURCES (USES):
Transfers out (11,451,306) (13,771,306) (13,771,306)
Total other financing sources (uses) (11,451,306) (13,771,306) (13,771,306) Net change in fund balances 8,934,236 $ 7,201,178 3,990,779 $ (3,210,399) FUND BALANCES:
Beginning of year 44,525,380
End of year _ 48516.8
98 City of Lathrop
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
BUDGETS AND BUDGETARY ACCOUNTING
The City establishes annual budgets for the General and certain special revenue funds, which are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The budgets for the General and certain special revenue funds are the only legally adopted budgets. Budgets for the capital project funds are used for management and control purposes only all appropriations remaining at fiscal year- end lapse. Budgeted amounts are reflected after all applicable amendments and revisions.
The legal level of control (level at which expenditures may not legally exceed budget appropriations) is at the department level. If the expenditures exceed the appropriations, the City Manager is authorized to transfer budgeted amounts between the line items within any department or between divisions within the department.
During the fiscal year, the City made a number of supplemental budget amendments totaling $28,621,159 in revenues and $51,040,035 in expenditures.
ADOPTED BUDGETS
For the fiscal year ending June 30, 2024, 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.
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100
SUPPLEMENTARY INFORMATION
101
City of Lathrop
General Fund
Year Ended June 30, 2024
The general Fund is the City's primary Operating fund. It accounts for all financial resources of the general foveriment, except those required to be accounted for in another fund. The General Fund is comprised of the
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. 102
City of Lathrop
Combining Balance Sheet
General Funds
June 30, 2024
Total
General Economic General
Purpose Fund Development Measure C Funds
-
ASSETS
Cash and investments $ 46,777,322 464,185 $ 4,058,602 $ 51,300,109 Receivables:
Accounts (net of allowance for uncollectibles) 2,627,204 1,232 1,802,558 4,430,994 Accrued interest 108,996 23,583 132,579
Prepaids 21,912 21,912
Advances to other funds 8,838,746 : 8,838,746
Total assets 58,421,939 $ 465,417 $ 5,884,743 $ 64,772,099
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,275,196 S 46,171 $ 1,321,367
Accrued liabilities 692,724 692,724
Unearned revenue 243,306 ... 243,306
Deposits payable 469,685 469,685
Total liabilities 2,680,911 46,171 2,727,082
Fund Balances:
Nonspendable 8,860,658 8,860,658
Committed 31,578,310 465,417 5,838,572 37,882,299
Unassigned 15,302,060 15,302,060
Total fund balances 55,741,028 465,417 5,838,572 62,045,017 Total liabilities, deferred inflows of
resources and fund balances 58,421,939 465,417 $ 5,884,743 $ 64,772,099 103
City of Lathrop
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances General Funds
For the year ended June 30, 2024
Intrafund
General Economic Transactions
Purpose Fund Development Measure C Elimination
-
REVENUES:
$ 23,478,668 S 10,059,006 $ :
Licenses and permits 340,938
Intergovernmental 4,412,587 :
761,489 324,224
2,713,991 20,745
102,903
Miscellaneous 414,129
Total revenues 32,224,705 20,745 10,383,230
EXPENDITURES:
Current:
General government 10,406,227 738,975
Public safety 13,203,791 : :
Community development 1,235,318
Culture and leisure 3,298,858
Public works 1,065,599 : :
Capital outlay 1,077,116 123,359
Debt service:
Principal retirement 320,000
Lease principal retirement 357,610 : : :
Interest and fiscal charges 57,885
Total expenditures 31,022,404 862,334
REVENUES OVER (UNDER)
EXPENDITURES 1,202,301 20,745 9,520,896
-
OTHER FINANCING SOURCES (USES):
Transfers in 10,282,590 (1,616,380)
Transfers out (5,745,508) (9,740,373) 1,616,380
Lease and software subscription proceeds 145,040
-
Total other financing sources (uses) 4,682,122 (9,740,373) Net change in fund balances 5,884,423 20,745 (219,477)
FUND BALANCES:
Beginning of year 49,856,605 444,672 6,058,049
End of year 55,741,028 465,417 $ 5,838,572 $
104
Total
General
Funds
$ 33,537,674
340,938
4,412,587
761,489
3,058,960
102,903
414,129
42,628,680
11,145,202
13,203,791
1,235,318
3,298,858
1,065,599
1,200,475
320,000
357,610
57,885
31,884,738
10,743,942
8,666,210
(13,869,501)
145,040
(5,058,251)
5,685,691
56,359,326
62,045,017
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 16,390,000 $ 16,790,000 S 23,478,668 $ 6,688,668 icenses and permit 292,306 292,306 340,938 48,632
ntergovernmental 3,560,000 3,560,000 4,412,587 852,587
Charges for services 523,694 557,860 761,489 203,629
Use of money and property 254,964 354,964 2,713,991 2,359,027 Fines and forfeitures 100,400 100,400 102,903 2,503
Miscellaneous 411,800 411,800 414,129 2,329
Total revenues 21,533,164 22,067,330 32,224,705 10,157,375 EXPENDITURES:
Current:
General government
City council 80,160 192,135 168,324 23,811
City manager 1,032,986 1,572,440 1,455,172 117,268
City clerk 362,760 396,760 382,661 14,099
City attorney 830,487 887,328 791,038 96,290
Personnel 772,352 812,852 576,876 235,976
Central services 1,836,490 1,993,990 1,666,896 327,094
Finance 1,942,736 2,128,108 1,830,379 297,729
Information technology 3,518,373 3,701,462 3,534,881 166,581 Total general government 10,376,344 11,685,075 10.406.227 1,278,848 Public safety
Administration 3,341,492 2,678,126 2,484,014 194,112
Community services 1,470,517 1,536,232 1,509,948 26,284 Operations 6,955,713 7,128,375 6,938,303 190,072
Support 2,154,521 2,322,623 2,271,526 51,097
Total public safety 13,922,243 13,665,356 13,203,791 461,565 Community development
Planning 989,061 2,471,489 1,235,318 1,236,171
Total community development 989,061 2,471,489 1,235,318 1,236,171 106
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Purpose Fund
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Culture and leisure
Administration 482,559 487,002 397,820 89,182
Senior center 159,097 161,647 157,765 3,882
Recreation programs 96,774 136,774 130,451 6,323
Special events 237,948 271,048 211,902 59,146
Youth development 370,457 444,607 283,599 161,008
Sports 341,601 337,893 281,598 56,295
Facilitates and library 212,135 270,035 184,114 85,921
City hall 541,490 605,133 486,062 119,071
Building maintenance 403,420 508,609 271,704 236,905
Park and landscape maintenance 1,269,723 1,682,729 893,843 788,886 Total culture and leisure 4,115,204 4,905,477 3,298,858 1,606,619 Public works
Administration 771,632 1,071,149 826,960 244,189
Utility engineering 255,494 272,549 238,639 33,910
Total public works 1,027,126 1,343,698 1,065,599 278,099 Capital outlay 498,200 3,895,355 1,077,116 2,818,239
Debt service:
Principal retirement 320,000 320,000 320,000
Lease principal retirement 356,946 357,610 (664)
Interest and fiscal charges 57,900 57,900 57,885 15
Total expenditures 31,306,078 38,701,296 31,022,404 7,678,892
REVENUES OVER (UNDER)
EXPENDITURES (9,772,914) (16,633,966) 1,202,301 17,836,267 OTHER FINANCING SOURCES (USES):
Transfers in 10,429,160 11,492,811 10,282,590 (1,210,221) Transfers out (485,040) (6,077,743) (5,745,508) 332,235 Lease proceeds 145,040 145,040
-
Total other financing sources (uses) 9,944,120 5,415,068 4,682,122 (877,986) -
Net change in fund balances 171,206 (11,218,898) 5,884,423 $ 17,103,321 FUND BALANCES:
Beginning of year 49,856,605
End of year $ 55,741,028
107
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Economic Development
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property - $ = 5 20,745 $ 20,745
Total revenues 20,745 20,745
REVENUES OVER (UNDER)
EXPENDITURES 20,745 20,745
Net change in fund balances 20,745 20,745
FUND BALANCES:
Beginning of year 414,672
End of year $ 465,417
108
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure C
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 10,000,000 $ 10,059,006 10,059,006 S Use of money and property 50,000 320,265 324,224 3,959
Total revenues 10,050,000 10,379,271 10,383,230 3,959
EXPENDITURES:
Current:
General government
Measure C 821,506 923,957 738,974 184,983
Total general government 821,506 923,957 738,975 184,982 Capital outlay 180,000 123,359 56,641
Total expenditures 821,506 1,103,957 862,334 426,605
REVENUES OVER (UNDER)
EXPENDITURES 9,228,494 9,275,314 9,520,896 245,582
OTHER FINANCING SOURCES (USES):
Transfers out (8,936,380) (9,740,373) (9,740,373)
-
Total other financing sources (uses) (8,936,380) (9,740,373) (9,740,373) Net change in fund balances 292,114 (465,059) (219,477) $ 245,582 FUND BALANCES:
Beginning of year 6,058,049
End of year $ 5,838,572
109
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General CIP Projects
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property - $ 778,380$ 778,380
Total revenues 778,380 778,380
EXPENDITURES:
Current:
Public works 4,990 4,990
Capital outlay 29130,504 34,907,921 13,608,772 21,29,149 Total expenditures 29,430,504 34,912,911 13,613,762 21,299,149
REVENUES OVER (UNDER)
EXPENDITURES (29,430,504) (34912,911) (12,835,382) 22,077,529 OTHER FINANCING SOURCES (USES):
Transfers in 11,079,880 15,983,699 13,999,456 (1,984,243) Total other financing sources (uses) 11,079,880 15,983,699 13,999,456 (1,984,243) Net change in fund balances (18,350,624) $ (18,929,212) 1,164,074 $ 20,093,286 FUND BALANCES:
Beginning of year 18,484,156
End of year 19,648,230
110
City of Lathrop
Non-Major Governmental Funds
Year Ended June 30, 2024
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
BUILDING SAFETY & INSPECTION SPECIAL REVENUE FUND
This fund accounts for building safety and inspection permit fee revenue and activity.
DEVELOPMENT ENGINEERING SPECIAL REVENUE FUND
This fund accounts for the development engineering fee revenue and activity.
DEVELOPER DEPOSITS SPECIAL REVENUE FUND
This fund accounts for the activity relating to developer deposits for development projects ongoing within the City.
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.
111
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 he 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's 10% share of Regional Traffic Impact Fees collected from builders.
RTIF LATHROP LOCAL WEST FUND
To account for the City's 75% share of Regional Traffic Impact Fees collected from builders on the West side.
RTIF SJCOG FUND
To account for San Joaquin Council of Government's 15% share of Regional Traffic Impact Fees collected from builders.
RTIF LATHROP LOCAL EAST FUND
To account for the City's 75% share of Regional Traffic Impact Fees collected from builders on the East side
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. 112
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 2019-2 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.
STREETS AND ROADS CAPITAL PROJECTS FUND
To account for capital project expenditures related to streets and roads occurring over more than one fiscal year
STORM DRAIN FUND
To account for expenditures for storm drain capital projects.
PARK IN-LIEU FUND
o account for revenues and expenditures which can legally be made under the Quimby Act. The revenue is collecte rom residential developers to offset the impact on parks and can only be used for new park developmen 113
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
Building Safety & Developer
Developer Projects Inspection Engineering Developer Deposits ASSETS
Cash and investments 1,526,493 $ 17,574,400 15,300,118 $ 1,223,947 Receivables:
Accounts (net of allowance for uncollectibles) 29,207 844,119 : :
Notes and loans
Accrued interest 10,230 46,763 38,616 3,885
Total assets 1,565,930 $ 17,621,163 $ 15,338,734 $ 2,071,951
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 222,300 $ 39,043 $ 190,358
Deposits payable 935,235 7,727 1,084,724
Due to other funds
Total liabilities 935,235 230,027 39,043 1,275,082
Fund Balances:
Restricted 630,695 17,391,136 15,299,691 796,869
Committed
Unassigned
Total fund balances 630,695 17,391,136 15,299,691 796,869 Total liabilities, deferred inflows of
resources and fund balances 1,565,930 17,621,163 15,338,734 2,071,951 114
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street Public Nuisance Measure K $ 2,394,399 $ 474,921 $ 151,686 $ 1,121,409 S 10,899 227,190 4 156.142 2,978 : 290,302
9,273 5,025 392 3,301 2,858
2,403,676 636,388 $ 155,056 1,124,710 S 10,928 $ 520,850 $ 180,524 $ 111,370 $
:
180,524 111,370
2,223,152 636,388 155,056 1,013,340 10,928 520,850
2,223,152 636,388 155,056 1,013,340 10,928 520,850
$ 2,403,676 636,388 $ 155,056 1,124,710 $ 10,928 520,850 115
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
-
Historic Lathrop
Loan Program
Transit LTF Streets and Roads Federal Grant (HLLP)
ASSETS
Cash and investments 2,318,356 $ 466,816 $ 53$ 245,566
Receivables:
Accounts (net of allowance for uncollectibles) 1,069,533 710,736 Notes and loans 20,350
Accrued interest 2,711 2,578 652
Total assets 2,321,067 $ 1,538,927 710,789 $ 266,568
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ - S
Deposits payable
Due to other funds
Total liabilities -
Fund Balances:
Restricted 2,321,067 469,394 53 266,568
Committed
Unassigned
Total fund balances 2,321,067 469,394 53 266,568
Total liabilities, deferred inflows of
resources and fund balances 2,321,067 1,538,927 $ 710,789 $ 266,568 116
Special Revenue Funds
Community
Development Block
Storm Drain Street Light AB939 Recycling Scholarship Fund 402,699 $ 1,486,485 $ 1,824,063 $ 3,235 $ 24,853 $ 378,206 36,178 105,758
: : : :
811 4,131 4,628 65 75 1,360
$ 403,510 $ 1,490,616 $ 1,864,869 $ 109,058 $ 24,928 $ 379,566 $ 34,126 $ 86,438 $ 2,628 S - S
34,126 86,438 2,628 -
369,384 1,404,178 1,862,241 109,058 24,928 379,566
369,384 1,404,178 1,862,241 109,058 24,928 379,566
$ 403,510 1,490,616 1,864,869 109,058 $ 24,928 379,566
117
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
-
RTIF San Joaquin RTIF Lathrop Local RTIF Lathrop Local
County West RTIF SICOG East
ASSETS
Cash and investments $ 214,946 $ 14,607,946 $ 322,419 $ 2,837,589 Receivables:
Accounts (net of allowance for uncollectibles)
Notes and loans : : :
Accrued interest 435 37,791 653 7,543
Total assets 215,381 14,645,737 $ 323,072 $ 2,845,132
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 216,307 $ - $ 324,461 $
Deposits payable
Due to other funds
Total liabilities 216,307 324,461 •|
Fund Balances:
Restricted 14,645,737 2,845,132
Committed -
Unassigned (926) (1,389)
Total fund balances (926) 14,645,737 (1,389) 2,845,132
Total liabilities, deferred inflows of
resources and fund balances 215,381 14,645,737 $ 323,072 2,845,132 118
Special Revenue Funds
Citywide Economic River Islands CFD athrop Lar
LMFD Measure C State Grants Dev Fee 20% 2013-1 cquisition $ 1,027,338 47,834 $ 638 $ 3,888,305 $ 143,827 $ 1,872
58,724 : 641,768
: :
289 12 10,204 3,302
$ 1,027,627 $ 106,558 $ 650 $ 3,898,509 $ 788,897 $ 1,872 120 S = s : s 1,185 $ (19)
-
: 47,759
120 47,759 1,185 (19)
1,027,507 58,799 650 3,898,509 145,944 1,891
: : :
1,027,507 58,799 650 3,898,509 145,944 1,891
$ 1,027,627 $ 106,558 650 $ 3,898,509 788,897 1,872
119
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
CLSP Off-Site
ULOP RD-17 Levee DWR Grant - ULOP Roadway South Lathrop CFD Impact Project Improvement 2019-1
ASSETS
Cash and investments 478,563 $ (47,831) $ 248,867$ 1,718,601 Receivables:
Accounts (net of allowance for uncollectibles) : 86,458 :
Notes and loans :
Accrued interest 1,418 629 4,423
Total assets 479,981 38,627 $ 249,496 $ 1,723,024
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 482,996 $ - $ 14,328
Deposits payable • '
Due to other funds :
Total liabilities 482,996 14,328
Fund Balances:
Restricted 38,627 249,496 1,708,696
Committed - -
Unassigned (3.015)
Total fund balances (3,015) 38,627 249,496 1,708,696
Total liabilities, deferred inflows of
resources and fund balances 479,981 38,627 $ 249,496 $ 1,723,024 120
Special Revenue Funds Capital Project Funds
Central bathro Stewart Economic Gateway Business
Dev Fee 80% TOT Trust steets and Roads Storm Drain
$ 997,713 $ 130,431 S 1,352,108 $ 316,979 s 24,076,166 1,012,509 :
2,690 363 3,590 797 43,074 2,502
1,000,403 $ 130,794 $ 1,355,698 317,776 24,119,315 $ 1,015,011 52,425 $ - $ 1,553 S 2,287,705 $
116,000
-
52,425 116,000 1,553 2,287,705
947,978 14,794 1,355,698 316,223 17,238,343 1,015,011
4,593,267
947,978 14,794 1,355,698 316,223 21,831,610 1,015,011
1,000,403 $ 130,794 1,355,698 $ 317,776 $ 24,119,315 1,015,011 121
City of Lathrop
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Capital Project
Funds
-
Total Nonmajor
Governmental
Park in Lieu Funds
-
ASSETS
Cash and investments $ 3,119,453 $ 103,652,069
Receivables:
Accounts (net of allowance for uncollectibles) 4,043,996 Notes and loans : 20,350
Accrued interest 7,768 264,866
Total assets 3,127,221 $ 107,981,281
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ • s 4,247,848
Deposits payable 2,143,686
Due to other funds : 47,759
Total liabilities 6,439,293
-
Fund Balances:
Restricted 3,127,221 94,532,014
Committed 4,593,267
Unassigned (5,330)
Total fund balances 3.127.221 99,119,951
Total liabilities, deferred inflows of
resources and fund balances 3,127,221 107,981,281
122
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123
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Special Revenue Funds
-
Building Safety & Developer
Developer Projects Inspection Engineering Developer Deposits REVENUES:
Taxes and assessments : s : s
:
tergovernmental
harges for service 4,895,955 4,114275 (60)
Use of money and property 172,879 727,786 616,145 59,704 Fines and forfeitures
Developer participation 3,879,100 319,095
Miscellaneous 5,303 125,551
Total revenues 4,051,979 5,629,044 4,855,971 378,739
EXPENDITURES:
Current:
Public safety :
Community development :
Culture and leisure
Public works : 2,266,250 2094.932 257,122
Capital outlay 42
Debt service:
Interest and fiscal charges 159,854
Total expenditures 2,266,292 2,095,027 416,976
REVENUES OVER (UNDER)
EXPENDITURES 4,051,979 3,362,752 2,760,944 (38,237)
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out (3,883,930) (633,230)
Total other financing sources (uses) (3,883,930) (633,230) Net change in fund balances 168,049 2,729,522 2,760,944 (38,237) FUND BALANCES:
Beginning of year 462,646 10,756,773 (404,821)
Restatement 14,661,614 1,781,974 1,239,927
Beginning of year, as restated 462,646 14,661,614 12,538,747 835,106 End of year 630,695 17,391,136 15,299,691 796,869
124
Special Revenue Funds
Landscape
Maintenance Gas Tax Traffic Safety Local Street Public Nuisance Measure K $ 3,324,096 $ - S - S
:s : s :
1,839,941 1,926,755
104,635 71,393 6,110 46,447 487 26,768
29,322
: : :
393 54,436
3,429,124 1,911,334 35,432 100,883 487 1,953,523
4,675
: : :
-
1,087,076 : 1,084,062 2,019
434,412
1,087,076 4,675 1,518,474 2,019
2,342,048 1,911,334 30,757 (1,417,591) (1,532) 1,953,523 46,800 1,850,000
(1,675,500) (2604,608) (2460) (245,800) (2,099,510)
(1,628,700) (2,604,608) (2,460) 1,604,200 (2,099,510)
713,348 (693,274) 28,297 186,609 (1,532) (145,987)
1,509,804 1,329,662 126,759 826,731 12,460 666,837
-
1,509,804 1,329,662 126,759 826,731 12,460 666,837
$ 2,223,152 $ 636,388 $ 155,056 1,013,340 10,928 $ 520,850 125
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Special Revenue Funds
-
Historic Lathrop
Loan Program
Transit LTF Streets and Roads Federal Grant (HLLP)
-
REVENUES:
Taxes and assessments $ : S : S - $
Intergovernmental 1,617,867 877,707 179,285
28,583 32,297 10,976
:
: :
Total revenues 1,646,450 910,004 179,285 10,976
EXPENDITURES:
Current:
Public safety :
Community development
Culture and leisure 162,464
:
Debt service:
Interest and fiscal charges
Total expenditures 162,464
REVENUES OVER (UNDER)
EXPENDITURES 1,646,450 910,004 16,821 10,976
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out : (1.208,138) (16,821)
Total other financing sources (uses) (1,208,138) (16,821) Net change in fund balances 1,646,450 (298,134) - 10,976 FUND BALANCES:
Beginning of year 674,617 767,528 53 255,592
Restatement
Beginning of year, as restated 674,617 767,528 53 255,592 -
End of year 2,321,067 469,394 53 $ 266,568
126
Special Revenue Funds
Community
Development Block
Storm Drain Street Light AB939 Recycling Grant Scholarship Fund COPS $ 390,966 : s
41,650 185,159
98,934 170,302 1,830
13839 103
62,891 69,288 1,091 1,177 19,333
352,702 1,195,079
- : ...
2,821 2,111
366,541 1,260,894 600,838 171,393 5,118 205,492
252,074 10,444
: :
94,648 -
• |
401,688 1,115,061 94,648 10,444
(35,147) 145,833 506,190 171,393 5,118 195,048
147,700 33,800
(80,480) (183,210) (30,680) (135,457) (4,373) (150,000) 67,220 (149,410) (30,680) (135,457) (4,373) (150,000)
32,073 (3,577) 475,510 35,936 745 45,048
337,311 1,407,755 1,386,731 73,122 24,183 334,518
337,311 1,407,755 1,386,731 73,122 24,183 334,518
-
$ 369,384 $ 1,404,178 $ 1,862,241 109,058 24,928 379,566 127
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Special Revenue Funds
-
RTIF San Joaquin RTIF Lathrop Local RTIF Lathrop Local
County West RTIF SICOG East
-
REVENUES:
Taxes and assessments 314,014 $ 2,268,642 S 471,021 $ 39,357 Licenses and permits
Intergovernmental
Charges for services
Use of money and property 4,162 603,593 6,242 126,140
Developer participation : :
Miscellaneous
Total revenues 318,176 2,872,235 477,263 165,497
EXPENDITURES:
Current:
Public safety : :
Community development : :
Culture and leisure
Public works 318,368 7467 477,551
Capital outlay
Debt service:
Interest and fiscal charges
Total expenditures 318,368 7,467 477,551 2,106
REVENUES OVER (UNDER)
EXPENDITURES (192) 2,864,768 288) 163,391
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out (503,406)
Total other financing sources (uses) (503,406)
Net change in fund balances (192) 2,361,362 (288) 163,391 FUND BALANCES:
Beginning of year (734) 12,284,375 (1,101) 2,681,741
Restatement
Beginning of year, as restated (734) 12,284,375 (1,101) 2,681,741 -
End of year (926) 14,645,737 $ (1,389) $ 2,845,132
128
Special Revenue Funds
North Lathrop Citywide Economic River Islands CFL Lathrop Land LMFD Measure C State Grants Transportation ev Fee 20% 2013-1 Acquisitions $ : s - $ 441,000 $ 1,203,965 S
:
142,378 -
11,133 500 160,402 26,692 634
: : :
395,072 •
11,133 142,378 500 601,402 1,625,729 634
4,027,342
: : : :
... 31,476
: :
-
4,027,342 31,476
(4,016,209) 142,378 500 601,402 1,594,253 634
4,023,602
(151,814) (11,437) : (1,567,633)
4,023,602 (151,814) (11,437) (1,567,633)
7,393 (9,436) (10,937) 601,402 26,620 634
1,020,114 68,235 11,587 3,297,107 119,324 1,257
1,020,114 68,235 11,587 3,297,107 119,324 1,257
$ 1,027,507 $ 58,799 $ 650 3,898,509 145,944 1,891
129
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Special Revenue Funds
-
CLSP Off-Site
ULOP RD-17 Levee DWR Grant - ULOP Roadway South Lathrop CFD Impact Project Improvement 2019-1
-
REVENUES:
$ 1,715,074 77,265 564,338
566,609
(63) 8,376 64,490
: :
Total revenues 1,715,011 566,609 85,641 628,828
EXPENDITURES:
Current:
Public safety
Community development : :
Culture and leisure
Public works 1.715,074 158,205
Capital outlay :
Debt service:
Interest and fiscal charges
Total expenditures 1,715,074 158,205
REVENUES OVER (UNDER)
EXPENDITURES - (63) 566,609 85,641 470,623
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out (527,985) (64,230)
Total other financing sources (uses) (527,985) (64,230) Net change in fund balances (63) 38,624 85,641 406,393
FUND BALANCES:
Beginning of year (2,952) 3 163,855 1,302,303
Restatement -
Beginning of year, as restated (2,952) 3 163,855 1,302,303 End of year (3,015) S 38,627 249,496 1,708,696
130
Special Revenue Funds Capital Project Funds
Central Lathrop Stewart Economic Gateway Business
CFD 2019-2 Dev Fee 80% TOT Trust Park Streets and Roads Storm Drain $ 1,746,783 $ 141,655 $
:
: :
19,430 6,401 60,429 517,885 42,124
: : : :
14,702
1,780,915 6,401 60,429 151,472 517,885 42,124
: : : :
947,729 : 22,067 26,571 :
6,526,436
947,729 22,067 6,553,007
833,186 6,401 60,429 129,405 (6,035,122) 42,124
16,577,944 70,000
(175,380) (510)
(175,380) (510) 16,577,944 70,000
657,806 6,401 60,429 128,895 10,542,822 112,124
290,172 8,393 1,295,269 187,328 - 902,887
11,288,788 -
290,172 8,393 1,295,269 187,328 11,288,788 902,887
$ 947,978 $ 14,794 $ 1,355,698 $ 316,223 21,831,610 $ 1,015,011 131
City of Lathrop
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Capital Project
Funds
-
Total Nonmajor
Governmental
Park in Lieu Funds
-
REVENUES:
Taxes and assessments $ 1,300,058 $ 13,998,234
41,650
7,633,179
9,010,273
93,071 3,833,289
1,577,103
: 4,198,195
600,389
Total revenues 1,393,129 40,892,312
EXPENDITURES:
Current:
Public safety 4,298,722
Community development 95
Culture and leisure 257,112
Public works 11,762,750
Capital outlay 6,960,890
Debt service:
Interest and fiscal charges 159,854
Total expenditures 23,439,423
REVENUES OVER (UNDER)
EXPENDITURES 1,393,129 17,452,889
OTHER FINANCING SOURCES (USES):
Transfers in 22,749,846
Transfers out (15,966,603)
Total other financing sources (uses) 6,783,243
Net change in fund balances 1,393,129 24,236,132
FUND BALANCES:
Beginning of year 1,734,092 45,911,516
Restatement 28,972,303
Beginning of year, as restated 1,734,092 74,883,819
-
End of year 3,127,221 99,119,951
132
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Projects
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 23,190,000 26689325 172,879 $ 172,879 Developer participation 3,879,100 (22,810,225)
Total revenues 23,190,000 26,689,325 4,051,979 (22,637,346) OTHER FINANCING SOURCES (USES):
Transfers out (23,194,830) (26,694,155) (3,883,930) 22,810,225 Total other financing sources (uses) (23,194,830) (26,694,155) (3,883,930) 22,810,225 Net change in fund balances (4,830) $ (4,830) 168,049 172,879 FUND BALANCES:
Beginning of year 462,646
End of year $ 630,695
133
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Safety & Inspection
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses and permits 1,938,730 $ 1,938,730 $ 1895955 (1,938,730) Charges for services 1,685,701 1,685,701 3,210,254
Use of money and property 600000 600000 3386 727,786
(54,697)
-
Total revenues 3,684,431 3,684,431 5,629,044 1,944,613
EXPENDITURES:
Current:
Public works 2,911,733 3,170,386 2,266,250 904,136
Capital outlay 60,000 64,883 42 64,841
Total expenditures 2,971,733 3,235,269 2,266,292 968,977
REVENUES OVER (UNDER)
EXPENDITURES 712,698 449,162 3,362,752 2,913,590
OTHER FINANCING SOURCES (USES):
Transfers in 40,000 (40,000)
Transfers out (633,230) (633,230) (633230)
Total other financing sources (uses) (633,230) (593,230) (633,230) (40,000) Net change in fund balances 79,468 $ (144,068) 2,729,522 $ 2,873,590 FUND BALANCES:
Beginning of year
Restatement 14,661,614
Beginning of year, as restated 14,661,614
End of year $ 17,391,136
134
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Engineering
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 2,067,120 S 2,067,120 $ 4,114,275 $ 2,047,155 Use of money and property 616,145 616,145
Miscellaneous 125,551 125,551
Total revenues 2,067,120 2,067,120 4,855,971 2,788,851
EXPENDITURES:
Current:
Community development 3,000 2,200 95 2,105
Public works 2,498,968 2,792,782 2,094,932 697,850
Capital outlay 60,000 60,000 60,000
-
Total expenditures 2,561,968 2,854,982 2,095,027 759,955
REVENUES OVER (UNDER)
EXPENDITURES (494,848) (787,862) 2,760,944 3,548,806
Net change in fund balances (494,848) (787,862) 2,760,944 3,548,806 FUND BALANCES:
Beginning of year 10,756,773
End of year $ 15,299,691
135
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Developer Deposits
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services $ (60) $ (60)
19,100 19100 59,704
Ise of money and proper 40,604
eveloper participatio 1,161,900 1,425,451 319,095 (1,106,356) Total revenues 1,181,000 1,444,551 378,739 (1,065,812)
EXPENDITURES:
Current:
Public works 186,900 453,940 257,122 196,818
Capital outlay 834,100 834,100 834,100
Debt service:
Interest and fiscal charges 160,000 160,000 159,854 146 Total expenditures 1,181,000 1,448,040 416,976 1,030,918
REVENUES OVER (UNDER)
EXPENDITURES =. (3,489) (38,237) (34,748)
Net change in fund balances (3,489) (38,237) $ (34,748) FUND BALANCES:
Beginning of year (404,821)
End of year $ 796,869
136
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape Maintenance
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 3,381,539 3,381,539 3,324,096 $ (57,443) Use of money and property 6,500 6,500 104,635 98,135
Miscellaneous 393 393
Total revenues 3,388,039 3,388,039 3,429,124 41,085
EXPENDITURES:
Current:
Public works 1,306,102 1,502,304 1,087,076 415,228
Capital outlay 32,000 32,000 32,000
Total expenditures 1,338,102 1,534,304 1,087,076 447,228
REVENUES OVER (UNDER)
EXPENDITURES 2,049,937 1,853,735 2,342,048 488,313
-
OTHER FINANCING SOURCES (USES):
Transfers in 46,800 46,800 46,800
Transfers out (1,675,500) (1,675,500) (1,675,500)
Total other financing sources (uses) (1,628,700) (1,628,700) (1,628,700) Net change in fund balances 421,237 225,035 713,348 $ 488,313 FUND BALANCES:
Beginning of year 1,509,804
End of year 2,223,152
137
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 1,667,644 $ 1,667,644 S 1,839,941 S 172,297 Use of money and property 71,393 71,393
Total revenues 1,667,644 1,667,644 1,911,334 243,690
OTHER FINANCING SOURCES (USES):
Transfers out (2,762,600) (2,762,600) (2,604,608) 157,992 Total other financing sources (uses) (2,762,600) (2,762,600) (2,604,608) 157,992 Net change in fund balances (1,094,956) S (1,094,956) (693,274) $ 401,682 FUND BALANCES:
Beginning of year 1,329,662
End of year $ 636,388
138
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Ise of money and propert 30000 - $ 6,110 $ 6,110
ines and forfeitures 30,000 29,322 (678)
Total revenues 30,000 30,000 35,432 5,432
EXPENDITURES:
Current:
Public safety 29,850 29,850 4,675 25,175
Capital outlay 30,000 30,000 30,000
Total expenditures 59,850 59,850 4,675 55,175
REVENUES OVER (UNDER)
EXPENDITURES (29,850) (29,850) 30,757 60,607
OTHER FINANCING SOURCES (USES):
Transfers out (2,460) (2,460) (2,460)
Total other financing sources (uses) (2,460) (2,460) (2,460) Net change in fund balances Iles (32,310) S (32,310) 28,297 $ 60,607 FUND BALANCES:
Beginning of year 126,759
End of year 155,056
139
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Street
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 46,447 $ 46,447
12000 54,436 42,436
Miscellaneous
Total revenues 12,000 100,883 88,883
EXPENDITURES:
Current:
Public works 1,408,832 1,654,751 1,084,062 570,689
Capital outlay 421,500 458,214 434,412 23,802
Total expenditures 1,830,332 2,112,965 1,518,474 594,491
REVENUES OVER (UNDER)
EXPENDITURES (1,830,332) (2,100,965) (1,417,591) 683,374 OTHER FINANCING SOURCES (USES):
Transfers in 1,850,000 1,850,000 1,850,000
Transfers out (245,800) (245,800) (245,800)
Total other financing sources (uses) 1,604.200 1,604,200 1,604,200 Net change in fund balances (226,132) $ (496,765) 186,609 $ 683,374 FUND BALANCES:
Beginning of year 826,731
End of year $ 1,013,340
140
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Nuisance
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property = $ = S 487$ 487
Total revenues 487 487
EXPENDITURES:
Current:
Public works 1,927 2,019 (92)
Total expenditures 1,927 2,019 (92)
REVENUES OVER (UNDER)
EXPENDITURES (1,927) (1,532) 395
Net change in fund balances (1,927) (1,532) $ 395
FUND BALANCES:
Beginning of year 12,460
End of year $ 10,928
141
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure K
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 2,062,310 $ 2,062,310 $ 1,926,755 $ (135,555) Use of money and property 26,768 26,768
Total revenues 2,062,310 2,062,310 1,953,523 (108,787)
OTHER FINANCING SOURCES (USES):
Transfers out (2,224,833) (2,258,497) (2,099,510) 158,987 Total other financing sources (uses) (2,224,833) (2,258,497) (2,099,510) 158,987 Net change in fund balances $ (162,523) $ (196,187) (145,987) $ 50,200 FUND BALANCES:
Beginning of year 666,837
End of year 520,850
142
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transit LTF
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 1,632,812 S 1,632,812 1,617,867 $ (14,945) Use of money and property 28,583 28,583
Total revenues 1,632,812 1,632,812 1,646,450 13,638
OTHER FINANCING SOURCES (USES):
Transfers out (500,000) (500,000) 500,000
Total other financing sources (uses) (500,000) (500,000) 500,000 Net change in fund balances 1,132,812 $ 1,132,812 1,646,450 513,638 FUND BALANCES:
Beginning of year 674,617
End of year $ 2,321,067
143
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 2,203,106 S 2,203,106 $ 877,707 (1,325,399) Use of money and property 32,297 32,297
Total revenues 2,203,106 2,203,106 910,004 (1,293,102)
OTHER FINANCING SOURCES (USES):
Transfers out (2,283,471) (2,683,768) (1,208,138) 1,475,630 Total other financing sources (uses) (2,283,471) (2,683,768) (1,208,138) 1,475,630 Net change in fund balances (80,365) $ (480,662) (298,134) $ 182,528 FUND BALANCES:
Beginning of year 767,528
End of year $ 469,394
144
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal Grant
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 3,164,693 $ 4,512,608 $ 179,285 $ (4,333,323) Total revenues 3,164,693 4,512,608 179,285 (4,333,323)
EXPENDITURES:
Current:
Culture and leisure 162,464 (162,464)
Total expenditures 162,464 (162,464)
REVENUES OVER (UNDER)
EXPENDITURES 3,164,693 4,512,608 16,821 (4,495,787)
OTHER FINANCING SOURCES (USES):
Transfers out (3,164,693) (4,349,335) (16,821) 4,332,514 Total other financing sources (uses) (3,164,693) (1349,335) (16,821) 4,332,514 Net change in fund balances $ 163,273 - $ (163,273)
FUND BALANCES:
Beginning of year 53
End of year $ 53
145
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Historic Lathrop Loan Program (HLLP)
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 10,976$ 10,976
Total revenues 10,976 10,976
Net change in fund balances 10,976 $ 10,976
FUND BALANCES:
Beginning of year 255,592
End of year 266,568
146
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ 352503 352503 13,839 $ 13,839 Fines and forfeitures 352,702 199
Total revenues 352,503 352,503 366,541 14,038
EXPENDITURES:
Current:
Public works 488,246 525,500 401,688 123,812
Total expenditures 488,246 525,500 401,688 123,812
REVENUES OVER (UNDER)
EXPENDITURES (135,743) (172,997) (35,147) 137,850
OTHER FINANCING SOURCES (USES):
Transfers in 147,700 147,700 147,700
Transfers out (80,480) (80,480) (80,480)
Total other financing sources (uses) 67,220 67,220 67,220 Net change in fund balances (68,523) 3 (105,777) 32,073 $ 137,850 FUND BALANCES:
Beginning of year 337,311
End of year 369,384
147
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Light
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services $ - $ - S 103$ 103
Ise of money and propert - 62,891 62,891
ines and forfeitures 1,194,922 1,194,922 1,195,079 157
Miscellaneous 2,821 2,821
Total revenues 1,194,922 1,194,922 1,260,894 65,972
EXPENDITURES:
Current:
Public safety 198,592 315,562 252,074 63,488
Public works 937,282 1,049,598 862,987 186,611
Total expenditures 1,135,874 1,365,160 1,115,061 250,099 -
REVENUES OVER (UNDER)
EXPENDITURES 59,048 (170,238) 145,833 316,071
OTHER FINANCING SOURCES (USES):
Transfers in 33,800 33,800 33,800
Transfers out (183,210) (183,210) (183,210)
-
Total other financing sources (uses) (149,410) (149,110) (149,410) Net change in fund balances (90,362) $ (319,648) (3,577) $ 316,071 FUND BALANCES:
Beginning of year 1,407,755
End of year 1,404,178
148
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual AB939 Recycling
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 170,000 S 170,000 $ 390,966 220,966 Licenses and permits 41,650 41,650
ntergovernmental 98,934 98,934
Use of money and property 69,288 69,288
Total revenues 170,000 170,000 600,838 430,838
EXPENDITURES:
Current:
Culture and leisure 105,220 129,620 94,648 34,972
Total expenditures 105,220 129,620 94,648 34,972
REVENUES OVER (UNDER)
EXPENDITURES 64,780 40,380 506,190 465,810
OTHER FINANCING SOURCES (USES):
Transfers out (30,680) (30,680) (30,680)
Total other financing sources (uses) (30,680) (30,680) (30,680) Net change in fund balances 34,100 $ 9,700 475,510 $ 465,810 FUND BALANCES:
Beginning of year 1,386,731
End of year $ 1,862,241
149
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 217,450 $ 239,579 $ 170,302 $ (69,277) Use of money and property 1,091 1,091
Total revenues 217,450 239,579 171,393 (68,186)
OTHER FINANCING SOURCES (USES):
Transfers out (217,447) (239,576) (135,457) 104,119
Total other financing sources (uses) (217,447) (239,576) (135,457) 104,119 Net change in fund balances 3 35,936 $ 35,933
FUND BALANCES:
Beginning of year 73,122
End of year $ 109,058
150
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Scholarship Fund
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 9,450 $ 9,450 $ 1,830 $ (7,620)
Use of money and property 1,177 1,177
Miscellaneous : 2,111 2,111
Total revenues 9,450 9,450 5,118 (4,332)
OTHER FINANCING SOURCES (USES):
Transfers out (9,450) (9,450) (4,373) 5,077
Total other financing sources (uses) (9,450) (9,450) (4,373) 5,077 Net change in fund balances - $ 745 $ 745
FUND BALANCES:
Beginning of year 24,183
End of year 24,928
151
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual COPS
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 150,000 S 150,000 $ 186,159 $ 36,159
Use of money and property 19,333 19,333
Total revenues 150,000 150,000 205,492 55,492
EXPENDITURES:
Current:
Public safety 100,000 110,445 10,444 100,001
Total expenditures 100,000 110,445 10,444 100,001
REVENUES OVER (UNDER)
EXPENDITURES 50,000 39,555 195,048 155,493
OTHER FINANCING SOURCES (USES):
Transfers out (100,000) (150,000) (150,000)
Total other financing sources (uses) (100,000) (150,000) (150,000) Net change in fund balances (50,000) S (110,445) 45,048$ 155,493 FUND BALANCES:
Beginning of year 334,518
End of year $ 379,566
152
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF San Joaquin County
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 354,171$ 354,171 5 314,014 S (40,157) Use of money and property 4,162 4,162
Total revenues 354,171 354,171 318,176 (35,995)
EXPENDITURES:
Current:
Public works 354,171 354,171 318,368 35,803
Total expenditures 354,171 354,171 318,368 35,803
REVENUES OVER (UNDER)
EXPENDITURES (192) (192)
Net change in fund balances (192) $ (192)
FUND BALANCES:
Beginning of year (734)
End of year $ (926)
153
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local West
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 2,324,411 $ 2,324,411 S 2,268,642 $ (55,769) Use of money and property 603,593 603,593
Total revenues 2,324,411 2,324,411 2,872,235 547,824
EXPENDITURES:
Current:
Public works 6,000 6,000 7,467 (1,467)
Total expenditures 6,000 6,000 7,467 (1,467)
REVENUES OVER (UNDER)
EXPENDITURES 2,318,411 2,318,411 2,864,768 546,357
OTHER FINANCING SOURCES (USES):
Transfers out (503,406) (503,406) (503,406)
Total other financing sources (uses) (503,406) (503,406) (503,406) Net change in fund balances /lis 1,815,005 $ 1,815,005 2,361,362 $ 546,357 FUND BALANCES:
Beginning of year 12,284,375
End of year $ 14,645,737
154
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
RTIF SJCOG
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Tres and ase property 531,257 $ 531,257 $ 471,021 (60,236) 6,242 6,242
Total revenues 531,257 531,257 477,263 (53,994)
EXPENDITURES:
Current:
Public works 531,257 531,257 477,551 53,706
Total expenditures 531,257 531,257 477,551 53,706
REVENUES OVER (UNDER)
EXPENDITURES 288) (288)
Net change in fund balances (288) $ (288)
FUND BALANCES:
Beginning of year (1,101)
End of year $ (1,389)
155
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RTIF Lathrop Local East
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 278,745 $ 278,745 $ 39,357 $ (239,388) Use of money and property 126,140 126,140
Total revenues 278,745 278,745 165,497 (113,248)
EXPENDITURES:
Current:
Public works 5,000 5,000 2,106 2,894
Total expenditures 5,000 5,000 2,106 2,894
REVENUES OVER (UNDER)
EXPENDITURES 273,745 273,745 163,391 (110,354)
Net change in fund balances 273,745 $ 273,745 163,391 (110,354) FUND BALANCES:
Beginning of year 2,681,741
End of year $ 2,845,132
156
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual LMED Measure C
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property = $ = S 11,133$ 11,133
Total revenues 11,133 11,133
EXPENDITURES:
Current:
Public safety 4,000,000 4,030,850 4,027,342 3,508
Total expenditures 4,000,000 4,030,850 4,027,342 3,508
REVENUES OVER (UNDER)
EXPENDITURES (4,000,000) (4,030,850) (4,016,209) 14,641 OTHER FINANCING SOURCES (USES):
Transfers in 4,000,000 4,023,602 4,023,602
Total other financing sources (uses) 4,000,000 4,023,602 4,023,602 Net change in fund balances (7,248) 7,393 14,641
FUND BALANCES:
Beginning of year 1,020,114
End of year $ 1,027,507
157
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Grants
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 1,500,000 S 968,811 5 142,3785 (826,433) Total revenues 1,500,000 968,811 142,378 (826,433)
OTHER FINANCING SOURCES (USES):
Transfers out (1,500,000) (968,811) (151,814) 816,997
Total other financing sources (uses) (1,500,000) (968,811) (151,814) 816,997 Net change in fund balances $ (9,436) $ (9,436)
=
FUND BALANCES:
Beginning of year 68,235
End of year 58,799
158
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual North Lathrop Transportation
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property $ - $ 500 $ 500
Developer participation 1227361 1,227,361 (1,227,361)
Total revenues 1,227,361 1,227,361 500 (1,226,861)
OTHER FINANCING SOURCES (USES):
Transfers out (11,437) (11,437) (11,437)
Total other financing sources (uses) (11,437) (11,437) (11,437) Net change in fund balances 1,215,924 $ 1,215,924 (10,937) $ (1,226,861) FUND BALANCES:
Beginning of year 11,587
End of year 650
159
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Citywide Economic Dev Fee 20%
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
axes and assessment: 453,000 $ 453,000 $ 441,000 $ (12,000) Ise of money and propert 160,402 160,402
Total revenues 453,000 453,000 601,402 148,402
Net change in fund balances 453,000 453,000 601,402 $ 148,402 FUND BALANCES:
Beginning of year 3,297,107
End of year 3,898,509
160
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual River Islands CFD 2013-1
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 1,148,350 $ 1,203,965 $ 1,203,965 $ 2,014 Use of money and property 24,678 26,692
Miscellaneous 120,000 1,036,810 395,072 (641,738)
Total revenues 1,268,350 2,265,453 1,625,729 (639,724)
EXPENDITURES:
Current:
Public works 19,800 32,389 31,476 913
Total expenditures 19,800 32,389 31,476 913
REVENUES OVER (UNDER)
EXPENDITURES 1,248,550 2,233,064 1,594,253 (638,811)
OTHER FINANCING SOURCES (USES):
Transfers out (1,250,890) (1,567,633) (1,567,633)
Total other financing sources (uses) (1,250,890) (1,567,633) (1,567,633) Net change in fund balances (2,340) $ 665,431 26,620 $ (638,811) FUND BALANCES:
Beginning of year 119,324
End of year 145,944
161
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lathrop Land Acquisitions
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property - $ = $ 634 $ 634
Total revenues 634 634
Net change in fund balances 634 $ 634
FUND BALANCES:
Beginning of year 1,257
End of year $ 1,891
162
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ULOP RD-17 Levee Impact
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Ter and sesh property 2,548,406 S 2,548,406 $ 1,715,074$ (833,332) (63)
Total revenues 2,548,406 2,548,406 1,715,011 (833,395)
EXPENDITURES:
Current:
Public works 1,715,074 (1,775,074)
Total expenditures 1,715,074 (1,715,074)
REVENUES OVER (UNDER)
EXPENDITURES 2,548,406 2,548,406 (63) (2,548,469)
Net change in fund balances 2,548,406 $ 2,548,406 (63) $ (2,548,469) FUND BALANCES:
Beginning of year (2,952)
End of year $ (3,015)
163
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual DWR Grant - ULOP Project
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental - $ 1,500,000 $ 566,609 S (933,391)
Total revenues 1,500,000 566,609 (933,391)
OTHER FINANCING SOURCES (USES):
Transfers out (1,500,000) (527,985) 972,015
Total other financing sources (uses) (1,500,000) (527,985) 972,015 Net change in fund balances 5 38,624 38,624
FUND BALANCES:
Beginning of year 3
Restatement
Beginning of year, as restated
End of year $ 38,627
164
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CLSP Off-Site Roadway Improvement
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 43,634 $ 43,634 S 77,265$ 33,631 Use of money and property 8,376 8,376
-
Total revenues 43,634 43,634 85,641 42,007
Net change in fund balances $ 43,634 $ 43,634 85,641 $ 42,007 FUND BALANCES:
Beginning of year 163,855
End of year $ 249,496
165
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual South Lathrop CFD 2019-1
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 564,350 $ 564,350 S 564,338 $ (12) Use of money and property 64,490 64,490
Total revenues 564,350 564,350 628,828 64,478
EXPENDITURES:
Current:
Public works 362,817 371,448 158,205 213,243
Capital outlay 50,000 50,000 50,000
Total expenditures 412,817 421,448 158,205 263,243
REVENUES OVER (UNDER)
EXPENDITURES 151,533 142,902 470,623 327,721
OTHER FINANCING SOURCES (USES):
Transfers out (64,230) (64,230) (64,230)
Total other financing sources (uses) (64,230) (64,230) (64,230) Net change in fund balances $ 87,303 $ 78,672 406,393 327,721 FUND BALANCES:
Beginning of year 1,302,303
End of year 1,708,696
166
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Central Lathrop CFD 2019-2
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ 2,415,900 $ 1,746,783 $ 1,746,783 $ Use of money and property 19,430 19,430
Miscellaneous 14,702 14,702
Total revenues 2,415,900 1,746,783 1,780,915 34,132
EXPENDITURES:
Current:
Public works 1,222,771 1,295,822 947,729 348,093
Total expenditures 1,222,771 1,295,822 947,729 348,093
REVENUES OVER (UNDER)
EXPENDITURES 1,193,129 450,961 833,186 382,225
OTHER FINANCING SOURCES (USES):
Transfers out (175,380) (175,380) (175,380)
Total other financing sources (uses) (175,380) (175,380) (175,380) Net change in fund balances 1,017,749 $ 275,581 657,806 $ 382,225 FUND BALANCES:
Beginning of year 290,172
End of year 947,978
167
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Stewart Economic Dev Fee 80%
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property - S 6,401$ 6,401
Total revenues 6,401 6,401
Net change in fund balances 6,401 $ 6,401
FUND BALANCES:
Beginning of year 8,393
End of year 14,794
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual TOT Trust
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 60,429 60,429
-
Total revenues 60,429 60,429
Net change in fund balances 60,429 $ 60,429
FUND BALANCES:
Beginning of year 1,295,269
End of year $ 1,355,698
169
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gateway Business Park
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments 156,300 $ 156,300 $ 141,655 $ (14,645) Use of money and property 9,817 9,817
Total revenues 156,300 156,300 151,472 (4,828)
EXPENDITURES:
Current:
Public works 88,092 88,443 22,067 66,376
Total expenditures 88,092 88,443 22,067 66,376
REVENUES OVER (UNDER)
EXPENDITURES 68,208 67,857 129,405 61,548
OTHER FINANCING SOURCES (USES):
Transfers out (510) (510) (510)
Total other financing sources (uses) (510) (510) (510)
Net change in fund balances 67,698 67,347 128,895 $ 61,548 FUND BALANCES:
Beginning of year 187,328
End of year $ 316,223
170
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Streets and Roads
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property - $ - $ 517,885 $ 517,885
Total revenues 517,885 517,885
EXPENDITURES:
Current:
Public works 26,571 26,571
Capital outlay 24.752109 33,140,736 6,526,436 26,614,300 Total expenditures 24,752,109 33,167,307 6,553,007 26,614,300
REVENUES OVER (UNDER)
EXPENDITURES (24,752,109) (33,167,307) (6,035,122) 27,132,185 OTHER FINANCING SOURCES (USES):
Transfers in 14,007,553 22,153,425 16,577,944 (5,575,481) Total other financing sources (uses) 14,007,553 22,153,425 16,577,944 (5,575,481) Net change in fund balances (10,744,556) S (11,013,882) 10,542,822 $ 21,556,704 FUND BALANCES:
Beginning of year -
Restatement 11,288,788
Beginning of year, as restated 11,288,788
End of year 21,831,610
171
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property = S 42,124 $ 42,124
Total revenues 42,124 42,124
EXPENDITURES:
Current:
Public works 545,000 545,000 545,000
Capital outlay 307,000 307,000 : 307,000
Total expenditures 852,000 852,000 852,000
REVENUES OVER (UNDER)
EXPENDITURES (852,000) (852,000) 42,124 894,124
OTHER FINANCING SOURCES (USES):
Transfers in 70,000 70,000 70,000
Total other financing sources (uses) 70,000 70,000 70,000 Net change in fund balances (782,000) $ (782,000) 112,124 $ 894,124 FUND BALANCES:
Beginning of year 902,887
End of year $ 1,015,011
172
City of Lathrop
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park in Lieu
For the year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes and assessments $ : s 1,300,058 1,300,058
Use of money and property 93,071 93,071
Total revenues 1,393,129 1,393,129
Net change in fund balances 1,393,129 $ 1,393,129
FUND BALANCES:
Beginning of year 1,734,092
End of year 3,127,221
:
173
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174
City of Lathrop
Custodial Funds
Year Ended June 30, 2024
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
To account for the special assessments associated with the payments of the limited-obligation improvement bonds for the Lathrop Sanitary Sewer Assessment District No.1.
MOSSDALE VILLAGE REASSESSMENT 2015 - 1 FUND
To account for the special assessments associated with the payment of bonds for the Mossdale Village District.
MOSSDALE VILLAGE COMMUNITY FACILITIES DISTRICT 2003 - 1 FUND To account for the special assessments associated with the payment of bonds for the Mossdale Village District. 175
City of Lathrop
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ASSETS
Cash and investments 576,776 $ 601,307 $ 477,118 $ 378
Receivables:
Accrued interest 1,222 1,290 1,029 1
Restricted assets:
Cash and investments with fiscal agents 610,880 807,194 716,600 Total assets 1,188,878 1,409,791 1,194,747 379
LIABILITIES
Accounts payable 315
Deposits payable :
Total liabilities 315
NET POSITION
Restricted for:
Individuals, organizations, and other governments 1,188,562 1,409,792 1,194,748 438 -
Total Net Position 1,188,562 $ 1,409,792 1,194,748 $ 438 176
Community Mossdale Village Total
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village Custodial CLSP Infrastructure District #1 CFD 2003-1 Funds
$ 2,398,207 $ 20 $ 670,397 $ 1,665,866 $ 6,390,069
5,063 21 1,594 4,283 14,503
1,356,466 221,844 249,905 211,737 4,174,626
3,759,736 221,885 921,896 1,881,886 10,579,198
135 306 358,009 358,765
30,747 : 30,747
30,882 306 358,009 389,512
3,728,853 221,885 921,590 1,523,876 10,189,744
$ 3,728,853 221,885 921,590 1,523,876 10,189,744
177
City of Lathrop
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2024
Joint Wastewater
Mossdale Village Crossroads Community North Harlan Water Assessment District Assessments Facilities District Improvement ADDITIONS:
Collections for assessment districts $ 801,971 760,020 S 619,885 $ Receipts from others
Investment earnings 127,591 55,943 166511 438
-
Total additions 929,562 815,963 786,429 438
DEDUCTIONS:
Administrative expenses 13,169 9,809 13,266
Contractual services 18,342 10,325 11,915
Debt service 8,006,207 730,571 973,799
Total deductions 8,037,718 750,705 998,980
Change in net position (7,108,156) 65,258 (212,551) 438 NET POSITION:
Beginning of year 8,296,718 1,344,534 1,407,299
End of year 1,188,562 1,409,792 $ 1,194,748 438
178
Community Mossdale Village Total
Facilities District Sewer Assessment Reassessment 2015- Mossdale Village Custodial CLSP Infrastructure District #1 CFD 2003-1 Funds
$ 3,055,632 130,389 503,779 $ 423,055 6,294,731
2,241 2,241
157,517 5,840 24,873 136,411 675,157
3,213,149 138,470 528,652 559,466 6,972,129
9,874 7,682 13,169 16,782 83,751
53,410 16,147 15,204 125,343
2,865,532 49,498 518,462 5,000,088 18,144,157
2,928,816 57,180 547,778 5,032,074 18,353,251
284,333 81,290 (19,126) (4,472,608) (11,381,122)
3,444,520 140,595 940,716 5,996,484 21,570,866
- -
$ 3,728,853 221,885 921,590 $ 1,523,876 10,189,744
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180
STATISTICAL SECTION
This part of the City's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax:
1. Property Tax Levies and Collections
2. Assessed Value and Estimated Actual Value of Taxable Property
3. Principal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future:
1. Direct and Overlapping Property Tax Rates
2. Direct and Overlapping Governments Sales Tax Rates
3. Legal Debt Margin Information
4. Outstanding Debt
5. Computation of Direct and Overlapping Debt
6. Pledged-Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs:
1. Full-time and Part-time City Employees by Function
2. Operating Indicators by Function
3. Capital Asset Statistics by Function
4. Water Sold by Type of Customer
5. Water Rates
6. Ten Largest Water Customers
7. Top 25 Sales Tax Producers
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
181
CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2015 2016 2017 2018
Governmental activities: -
Net investments in
capital assets $ 145,671,748 $ 148,474,931 $ 155,971,046 $ 159,727,304 Restricted 7,733,824 10,223,760 11,858,920 10,376,172
Unrestricted 35,612,693 38,941,548 47,769,952 52,396,920 Total governmental activities net position $ 189.018,265 $197,640,239 $215,599,918 $222,500,396 Business-type activities:
Net investments in
capital assets $ 92.350,319 $ 93,906,914 $ 103,695,833 $ 120,279,431 Restricted 2,995,846 2,698,250 1,706,637 1,650,031
Unrestricted 23,944.509 26,437,255 37,146.214 30,919,752 Total business-type activities net position $ 119,290.674 $123,042,419 $ 142,548,684 $152,849,214 Primary government:
Net investments in
capital assets $ 238,022,067 $ 242,381,845 $ 259,666,879 $280,006,735 Restricted 10,729,670 12,922,010 13,565,557 12,026,203
Unrestricted 59,557,202 65,378,803 84,916,166 83,316,672 -
Total Primary government net position $ 308.308,939 $ 320,682,658 $ 358,148,602 $ 375,349.610 Source: City of Lathrop, California Annual Comprehensive Financial Reports. 182
CITY OF LATHROP
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2019 2020 2021 2022 2023 2024
$ 179,501,255 $ 206,211,349 $ 218,894,403 $ 250,605,011 $ 320,475,208 $ 356,771,955 13,552,647 16,013,046 103,964,923 122,949,990 125,033,370 142,915,495 72,645,973 87,005,385 33,463.086 47,696.013 59,792,854 84,885,678 $ 265.699.875 $ 309,229,780 $ 356.322,412 $421,251.014 $ 505,301,432 $ 584,573,128 $ 150,452,677 $ 160,481,074 $ 156,963,462 $ 174,059,421 $ 206,299,495 $ 225,625,879 1,652,234 1,651,396 1,650,648 1,652,915 1,408,865 1,431,530
34.710.083 43,373,359 62,502,764 70,785,536 72.411.962 78,801,938 $ 186,814,994 $ 205,505,829 $221,116.874 5246,497.872 $ 280,120,322 $ 305,859,347 $ 329,953,932 $ 366,692,423 $375,857,865 $ 424,664,432 $ 526,774,703 $ 582,397,834 15,204,881 17,664,442 105,615,571 124,602,905 126,442,235 144,347,025 107,356,056 130,378,744 95,965,850 118,481,549 132.204,816 163,687,616 $ 452,514,869 $ 514,735,609 $ 577,439,286 $667,748,886 $ 785.421,754 $ 890,432,475 183
CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 2016 2017 2018
Expenses:
Governmental activities:
General government $ 4,680,110 $ 7,449,500 $ 5,614,173 S 4,580,381 $ 4,917,617 Public safety 5,940,125 6,962,351 8,048,625 9,683,636 10,965,814 Public works 13,888,678 10,864, 104 7,864,470 13,125,373 13,066,756 Culture and leisure 1,111,917 779,976 1,395,287 1,300,832 1,331,811 1,573,972 602,719 1,712,156 993,885 1,256,506
924.941 340,120 880.036 319.164 100,088
28,119.743 26,998,770 25.514.747 30.003.271 31.638,592
Business-type activities:
Water 5,108,071 4,941,845 5,828,411 4,969,618
Wastewater 4,433,501 5,393.728 1,204,762
Total business-type activities expenses 13.665,821 9.541.572 11,222,139 6,174,380 Total primary government expenses 3 41.785,564 $ 36.540.342 5 34.044,194 $ 41.225,410 $ 37.812,972 Program revenues:
Governmental activities:
Charges for services:
General Government 397,607 491,076 551,613 462,696 438,974 Public Safety 716,360 356,989 365,009 231,164 424,909
Public Works 202,488 248,089 258,005 1,697,831 1,184,297 Culture and leisure 242,500 220,963 205,376 283,662 279,505 Community development 2,189,603 2,551,889 3,947,881 3,131,768 2.916,089 Operating grants and contributions 4,947,223 4,969,720 5,016,283 4,841,037 5,459,511 Capital grants and contributions 23,115,518 22,155,191 9.759,080 30,838,179 10,069,773 Total governmental activities
program revenues 31,811,299 30.993.917 20,103.247 41.486,337 20.773.058 Business-type activities:
Charges for services:
Water 6,551,486 6,042,517 5,849,963 6,856,028 8,331,835 Wastewater 5,827,902 5,730,148 5,233,840 5,791,155 6,533,098 Operating grants and contributions 12,002,670
Capital grants and contributions 159,854 159,854 159,854 159.854 159,854 Total business-type activities
program revenues 24,541,912 11.932,519 11.243.657 12.807,037 15.024.787 Total primary government
program revenues $ 56.353.211 S 42.926.436 $ 31.346.904 $ 54,293,374 $ 35,797,845 Net revenues (expenses):
Governmental activities 3,691,556 3,995,147 (5,411,500) 11,483,066 (10,865,534) Business-type activities 10.876.091 2.390.947 2.714,210 1,584,898 8,850,407 Total net revenues (expenses) $ 14.567,647 6,386,094 $ (2.697.290) $ 13.067.964 $ (2.015,127) Govermental adither changes in net position:
Property tax 2,946,083 3,273,006 3,566,656 3,980,606 4,285,832 Sales and use taxes 6,676,994 5,947,812 6,209,105 6,337,138 9,211,228 Franchise taxes 705,405 685,140 518,183 771,288 877,633 Other taxes 419,267 449,950 743,896 565,715 634,335
Motor vehicle in lieu, unrestricted 1,118,489 1,237,606 1,324,094 1,555,026 1,794,526 Investment income 67,431 80,844 346,915 19,282 979,493
Other general revenues 395,810 301,192 1,745,978 10,090,096 379,591 Transfers (5.626.465) (84,391) (421,353) (16,842,538) (137,582) Total governmental activities 6,703.014 11,891,159 14,033,474 6.476.613 18,025.056 Business-type activities:
Investment income 49.915 63,492 200,063 214,510 405,014 Miscellaneous 1,392,651 675,204 416,119 864,319 907,527 Transfers 5,626,465 84,391 421,353 16,842.538 137,582
Total business-type activities 7.069,031 823,087 1,037,535 17.921,367 1.450,123 Total primary government $ 13.772.045 $ 12,714,246 $ 15.071.009 S 24.397.980 $ 19,475,179 Changes in net position
Governmental activities 10,394,570 15,886,306 8,621,974 17,959,679 7,159,522 Business-type activities 17,945,122 3.214.034 3,751,745 19.506,265 10,300,530 Total primary government $ 28,339,692 $ 19,100,340 $ 12.373,719 $ 37,465,944 $ 17.460.052 184
CITY OF LATHROP
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2019 2020 2021 2022 2023 2024
5,307,052 $ 5,944,111 $ 6,544,720 $ 11,905,173
16,835,406 19,195,792 36,027,481 25,161,304
1,442,202 4,895,105
233,740 225,835
46,931,595 66,491,738
6,906,021 7,099,213 9,130,486 8,809,160
7,476,439 7,853,576 9.457,406 11,907,501
14.382,460 14.693.566 18.587,892
51,403.577 $ 54.518.722 $ 62.796.050 S 61,884,384 85.079,630 84,047,768
66.235.438 58.107.420
34,241,354 84.029,274
9,052,906 10,352,614 10,239,976 10,758,681 11,263,135
7,923,942 8,633,545 8,776,287 9,141,235 10,428,292 11,386,277
32.556,339 11.691.580 6,862,837 : 29.098.366 24529,892
49,533.187 30,677,739 25,879,100 19.899.916 50,292,273 47,179,304 185
CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2015 2016 2017 2018
-
General fund:
Nonspendable 6,852,691 6,665,677 $ 6,180,434 5,650,104
Restricted
Committed 2,233,234 : :
Assigned
Unassigned 11,091,860 12,861,107 16,496,212 21,538,365
-
Total general fund $ 17,944,551 $ 21,760,018 $ 22,676,646 $ 27,188,469 All other governmental funds:
Restricted $ 6,823,678 $ 4,513,322 $ 4,701,300 $ 3,797,087 Committed 22,534,880 25,829,474 35,779,675 36,015,106
Assigned 880,383 975,042 784,139 663,674
Unassigned - (364) (233) (120)
Total all other governmental funds $ 30,238.577 $ 31.317,605 $ 41,264,994 $ 40,475,867 * FY2021 reflects the implementation of GASB 84.
Source: City of Lathrop, California
186
CITY OF LATHROP
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2019 2020 2021* 2022 2023 2024
$ 5,225,742 $ 3,470,982 3.282,311 $ 2,405,864 9,766,137 8,860,658 : 29.678,802 29,664,824 44,763,906 40.447,513 37,882,299 2,616,835
31,169,562 4,289,278 6,679,913 5,704,542 6,145,676 15,302,060 $ 36,395,304 $ 40,055,897 $ 39,627,048 $ 52,874,312 $ 56,359,326 $ 62,045,017 $ 4,701,645 $ 9,116,860 $ 41,955,830 $ 41,419,819 $125,033,370 $143,048,173 49,619,728 58,214,668 7,556,009 24,241,497
549,720 572,817
(163,756) (2,500) (169.617) (521,256) (409,608) (5,330) $ 54,707,337 $ 67,901,845 $ 41,786,213 $ 40,898,563 $132,179,771 $167,284,340 187
CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2015 2016 2017 2018
Revenues:
Taxes and assessments $ 21,268,849 $ 18,494,460 $ 22,885,183 $ 22,571,206 Licenses and permits 1,373,909 1,283,193 1,808,623 1,266,197 Fines, forfeitures, and penalties 1,486,888 1,658,639 1,949,910 2,237,680 Intergovernmental 11,177,149 5,489,546 3,134,272 4,420,261 Use of Money & Property 159,262 382,724 392,493 1,366,160 Charges for current services 2,207,080 3,725,964 3,605,846 3,508,608 Contributions (Developer) 1,094,140 19,675,946 2,751,850 Other 4.202,190 3,523,548 1,353,215 813,734
Total revenues 42,969,467 34,558,074 54.805,488 38,935,696 Expenditures
Current:
General government 8,063,724 4,675,898 4,406,106 4,770,853 Community development 1,254,836 1,657,178 784,763 1,109,714 Public safety 7,030,624 7,297,872 9,560,119 10,724,423
Public works 15,482,137 6,687,275 7,616,246 7,048,016
Culture and leisure 1,048,531 1,296,370 1,226,638 1,275,334 Capital Outlay 1,604,530 4,361,924 2,920,897 9,761,990
Debt service:
Principal retirement 289,709 1,683,347 265,000 285,000
Lease principal retirement
Interest and fiscal charges 340,120 390,710 319,164 100,088 Total expenditures $ 35,114,211 28,050,574 27,098,933 $ 35.075,418 Excess (deficiency) of
revenues over (under)
expenditures $ 7,855,256 6,507,500 $ 27,706,555 3,860,278 Other financing sources (uses):
Proceeds from issuance of long-term deb (1,191,652)
Transfers in 17,566,636 12,971,420 10,394.523 12,389,403 Transfers out (17,651,027) (13,392,773) (27,237,061) (12,526,985) Lease and Software Subscriptions
Total other financing
sources (uses) (84.391) (1,613,005) $ (16.842,538) $ (137,582) Net change in fund balances 7,770,865 4,894,495 $ 10,864,017 $ 3,722,696 Debt service as a percentage of
noncapital expenditures 1.9% 9.6% 2.5% 1.5%
* FY2021 reflects the implementation of GASB 84.
Source: City of Lathrop, California
188
CITY OF LATHROP
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2019 2020 2021* 2022 2023 2024
$ 35,307,490 $ 32,969,640 $ 59,694,541 $ 67,116,103 $ 53,295,237 $ 65,425,623 1,823,951 2,930,344 3,191,727 386,466 2,205,203 382,588 2,542,551 1,973,138 1,628,103 1,588,616 1,529,724 1,680,006 4,373,978 5,281,487 7,045,036 10,094,787 18,140,197 12,045,766 2,433,126 3,299,084 701,941 (2,101,280) 4,030,511 10,292, 129 4,656,065 4,523,327 6,208,805 13,859,233 8,654,509 9,771,762 536,277 357,105 7,595,547 10,621,451 2,017,292 4,198,284 550,982 657,995 945,547 1,344,184 374,377 1,014,518
52,224,420 $ 51,992,120 87,011,247 $ 102,909,560 $ 90,247,050 $ 104,810,676 5,137,588 5,748,979 6,241,381 7,124,908 9,372,651 11,145,202 838,993 1,153,119 1,220,515 1,722,885 1,282,370 1,235,413 11,222,012 12,001,225 11,507,852 11,552,853 14,956,148 17,502,513 9,984,165 10,701,329 19,627,773 16,617,416 25,566,909 15,582,558 1,384,798 1,411,336 1,323,042 3,405,473 3,921,574 3,555,970 2,643,451 6,950,445 11,300,021 24,267,638 22,666,952 21,770,137 290,000 300,000 352,316 315,000 320,000
: 367,507 357,610
46,410 89,123 241,454 233,740 225,835 217,739
31.257.417 $ 38,345,556 $ 51,762,038 $ 65.277.229 $ 78.674,946 $ 71.687,142 $ 20,967,003 $ 13,646,564 $ 35,249,209 $ 37,632,331 $ 11,572,104 $ 33,123,534 14,380,867 24,940,959 35,131,963 26,553,563 433691,356 45,415,512 (11,941,565) (21,685,548) (33,354,033) (32,233,805) (40,547,445) (43,607,410) 1,462,298 145,040
$ 2,439,302 $ 3.255.411 $ 1,777,930 (5,680,242) $ 4,606,209 $ 1,953,142 $ 23,406,305 $ 16.901.975 $ 37.027,139 $ 31,952,089 $ 16,178,313 $ 35,076,676
0.2% 1.2% 1.4% 1.4% 1.6% 1.8%
189
CITY OF LATHROP
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of Levy Total Collection to Date
Taxes Levied Collection in
Fiscal for the Fiscal Percent Subsequent Percent
Year Year Amount of Levy Years Amount of Levy
2015 3,098,364 3,098,364 100.00% 3,098,364 100.00%
2016 3,353,607 3,353,607 100.00% 3,353,607 100.00%
2017 3,727,479 3,727,479 100.00% - 3,727,479 100.00%
2018 4,125,753 4,125,753 100.00% - 4,125,753 100.00%
2019 4,309,587 4,309,587 100.00% 4,309,587 100.00%
2020 4,812,631 4,812,631 100.00% 4,812,631 100.00%
2021 5,326,609 5,326,609 100.00% 5,326,609 100.00%
2022 5,853,282 5,853,282 100.00% 5,853,282 100.00%
2023 6,697,606 6,697,606 100.00% 6,697,606 100.00%
2024 7,330,491 7,330,491 100.00% 7,330,491 100.00%
Source: County of San Joaquin, California, Office of the Controller. 190
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 2015 2,028,168,720 148,658,207 5,070,340 (19,297,974) 2, 162,599,293 0.143% 2016 2,188,540,780 198,130,929 5,070,340 (18,624,442) 2,373,117,607 0.141% 2017 2,559,643,198 163,451,777 6,170,020 (18,624,442) 2,710,640,553 0.138% 2018 2,941,872,358 174,127,391 6,170,020 (18,831,913) 3,103,337,856 0.133% 2019 3.117.977,243 190,538,705 6,170,020 3.314,685,968 0.130% 2020 3,554,886,516 282,202,562 6,170,020 3,843,259,098 0.125% 2021 4,139,024,746 280,821,500 15,952,158 4,435,798,404 0.120% 2022 4,787,945,754 304,082,430 15,952,158 5,107,980,342 0.115% 2023 5,732,986,696 363,749,894 15,952,158 6,112,688,748 0.110% 2024 7, 186,176,227 553,069,576 15,952,158 7,755,197,961 0.095% 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 re assessed at the time that it is sold to a new owner. At that point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above." Source: County of San Joaquin, California, Office of the County Assessor. 191
CITY OF LATHROP
Principal Property Taxpayers
Current Year and Nine Years Ago
2024 2015
Percent of Percent of
Total City Total City
Taxable Taxable
Taxable Assessed Taxable Assessed
Taxpayer Assessed Value Rank Value Assessed Value Rank Value TESLA MOTORS INC $ 339,952,368 1 4.38% $ 27,114,299 8 1.25% LIT INDUSTRIAL LP 239,481,860 2 3.09%
TRIPOINT LOGISTICS CENTER ILP LLC 135,602,030 1.75%
EXETER 5150 GLACIER LP 123,987,895 4 1.60%
YOSEMITE LATHROP 2 LLC 115,310,752 5 1.49%
CALIFIA LLC 106,644,569 6 1.38% 49,770,563 2 2.30%
LATHROP GATEWAY 1 LLC 104,101,177 1.34%
UNITED OARCEL SERVICE 89,147,240 8 1.15%
87,816,007 9 1.13%
JR SIMPLOT COMPANY CORPORATION 87,130,861 10 1.12% 53.404.304 2.47% CENTERPOINT PROPERTIES TRUST 17,132,980 3 2.18%
SUPER STORES INDUSTRIES 40,281,617 4 1.86%
CALIFORNIA NATURAL PRODUCTS 40,151,678 5 1.86%
700 D'ARCY PARKWAY INVESTORS LLC 29,000,000 1.34%
LCP REMAINDER TRUST ETAL 28,994,698 ON O 1.34%
ASP AND RWM PROPERTIES ETAL 25,491,869 1.18%
PANCAL LOGISTICS 23.967,737 10 1.11%
Total $1,429,174,759 18.43% $ 365,309,745 16.89%
Source: County of San Joaquin, California, Office of the County Assessor. 192
CITY OF LATHROP
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(rate per $100 of assessed value)
Fiscal Basic
Year County-wide Levy (" School (2) All Other Total Rate 2015 1.00000% 0.09230% 0.00000% 1.09230%
2016 1.00000% 0.14200% 0.00000% 1. 14200%
2017 1.00000% 0.12820% 0.00000% 1.12820%
2018 1.00000% 0.13030% 0.00000% 1.13030%
2019 1.00000% 0.12280% 0.00000% 1.12280%
2020 1.00000% 0.11400% 0.00000% 1.11400%
2021 1.00000% 0.10490% 0.00000% 1. 10490%
2022 1.00000% 0.13820% 0.00000% 1.13820%
2023 1.00000% 0. 13660% 0.00000% 1.13660%
2024 1.00000% 0.12940% 0.00000% 1.12940%
NOTE:
(1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a
1.00% fixed amount. This 1.00% is shared by all taxing agencies, including the City of Lathrop, for which the subject property resides within. The City of Lathrop's portion varies by several Tax Rate Areas (TRAs) within the City.
Source: San Joaquin County Assessor 2011/12 - 2020/21 Tax Rate Table 193
CITY OF LATHROP
Sales Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Measure
City Measure Transportation State of
Fiscal Direct K General Development San Joaquin California Year Rate Rate Purpose Act Rate County Rate Rate Total
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%
2024 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 194
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CITY OF LATHROP
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Adjusted for Economic Data
2014 2015 2016 2017 2018
Apparel Stores $ 158 $ 139 $ 158 $ 170 $ 168
Eating and Drinking Places 17,386 20,908 23,903 28,457 30,705 Building Materials 13.012 18,952 24,498 24,208 52,600
Auto Dealers and Supplies 18,327 20,853 23,241 50,570 64,383 Service Stations 69,597 58,064 51,774 65,073 104,988
Other Retail Stores 52,185 54,594 56,292 55,085 56,151
All Other Outlets 53,816 86,860 73,171 95,495 162,171
Total Positions $224,481 $260,370 $253,037 $ 319,058 $471,166 Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, & The HdL Companies
Note: Due to confidentiallity issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the the City's revenue.
CITY OF LATHROP
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Adjusted for Economic Data
2019 2020 2021 2022 2023
$ 144 $ 78 $ 70 $ 117 $ 106
34,609 40,337 53,796 59,154 63,985
34,920 29,890 33,764 38,075 35,477
71,514 55,105 51,310 53,718 72,457
109,926 91,861 130,148 172,622 148,138
60,348 70,847 78,761 81,979 82,164
144,818 346,766 640,965 776,782 754,910
$456,279 $ 634,884 $ 988,814 $ 1,182,447 $1,157,237
197
CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2015 2016 2017 2018
Gross Assessed Valuation $ 2,162,599,293 $2,373,117,607 $ 2,710,640,553 $ 3,103,337,856 Debt Margin Ratio (1) 3.75% 3.75% 3.75% 3.75%
Debt Margin (Limit) $ 81,097,473 $ 88,991,910 $ 101,649,021 $ 116,375,170 Less: total net debt applicable to limit:
General obligation bonds $
Net Legal Debt Margin $ 81,097,473 88,991,910 101,649,021 $ 116,375,170 Total debt applicable to the the limit
as a percentage of debt limit 0% 0% 0% 0%
Notes
(1) The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel.) The computation shown above reflects a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. The limit shown is 3.75% (one-fourth of the previous limit of 15%).
Source: City of Lathrop, California Finance Department and the County of San Joaquin, California, Office of the Controller 198
CITY OF LATHROP
Legal Debt Margin Information
Last Ten Fiscal Years
2019 2020 2021 2022 2023 2024
$ 3,314,685,968 $ 3,843,259,098 $ 4,435,798,404 $ 5,107,980,342 $ 6,112,688,748 $ 7,755,197,961
3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
$ 124,300,724 144,122,216 166,342,440 $ 191,549,263 229,225,828 290,819,924 $ $ $ $ - $ - $
124,300,724 144,122,216 166,342,440 191.549.263 229,225,828 290,819,924 0% 0% 0% 0% 0% 0%
199
CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Governmental Activities Business-type Activities
Total
Fiscal Financed Governmental Water Revenue PNC Bank
Year Purchases (1) Activities Bonds Notes Loan
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 (3) 4,755,863
2018 3,640,000 3,640,000 10,846,145 4,430,488
2019 3,640,000 3,640,000 10,207,524 4,093,638
2020 3,350,000 3,350,000 9,550,312 3,744,895
2021 3,050,000 3,050,000 8,873,969 3,383,839
2022 2,874,135 2,874,135 8,177,936 3,010,037
2023 4,089,676 4,089,676 7,461,642 2,623,175
2024 2,992,221 2,992,221 6,724,497 2,222,444
(1) Includes leases and SBITAS
(3) These ratios are calculated using personal income and population for the prior calendar year. (3) On May 2017, the City refunded the Water Revenue Bonds.
Source: City of Lathrop, California Finance Department
200
CITY OF LATHROP
Outstanding Debt
Last Ten Fiscal Years
Business-type Activities
State Percentage
Revolving Total Business- Total Primary of Personal Debt Per Fund Loan type Activities Government Income Capita (2)
8,562,968 26,571,774 33,171,094 93.63% 1,500
8,160,773 25,866,029 30,056,029 82.47% 1,301
7,749,237 23,960,100 27,885,100 69.04% 1,149
7,328,146 22,604,779 26,244,779 57.43% 1,081
6,897,278 21,198,440 24,838,440 47.89% 996
6,456,406 19,751,613 23,101,613 44.54% 861
6,005,297 18,263,105 21,313,105 37.65% 748
5,554,128 16,742,101 19,616,236 31.08% 626
5,071,412 15,156,229 19,245,905 23.22% 549
4,588,144 13,535,085 16,527,306 16.41% 446
CITY OF LATHROP
Computation of Direct and Overlapping Debt
June 30, 2024
FY 2023/24 City Assessed Valuation $ 7,755,197,961
Redevelopment Agency Incremental Valuation
Adjusted Assessed Valuation 32755107987
Percentage
Applicable to
Total Debt City of City's Share of
Overlapping Tax and Assessment Debt 6/30/24 Lathrop (1) Debt 6/30/2024 San Joaquin Delta Community College District 162,660,000 6.612% 10,755,075 Manteca Unified School District 262,234,978 23.924% 62,737,09€ Tracy Unified School District 26,050,000 0.001% 261
Banta School District 265,000 78.293% 207,476
Manteca Unified School District Community Facility District No. 1989-2 15,735,000 20.749% 3,264,855 Manteca Unified School District Community Facility District No. 2005-4 4,555,000 100.000% 4,555,000 Banta School District Community Facilities District No. 2011-1 2,630,000 100.000% 2,630,000 River Islands Public Financing Authority Community Facilities District No. 2003-1, I.A. No. 1 315,960,000 100.000% 315,960,000 River Islands Public Financing Authority Community Facilities District No. 2003-1, I.A. No. 2 27,430,000 100000% 27,430,000 River Islands Public Financing Authority Community Facilities District No. 2015-1 185,110,000 100.000% 185,110,000 River Islands Public Financing Authority Community Facilities District No. 2016-1 57,075,000 100.000% 57,075,000 River Islands Public Financing Authority Community Facilities District No. 2019-1 62,715,000 100.000% 62,715,000 River Islands Public Financing Authority Community Facilities District No. 2020-1 28,455,000 100.000% 28,455,000 River Islands Public Financing Authority Community Facilities District No. 2021-1 35,390,000 100.000% 35,390,000 River Islands Public Financing Authority Community Facilities District No. 2023-1, I.A. No. 1 28,230,000 100.000% 28,230,000 City of Lathrop Community Facilities District No 2003-1 3,465,000 100.000% 3,465,000 City of Lathrop Community Facilities District No 2003-2 4,055,000 100.000% 4,055,000 City of Lathrop Community Facilities District No 2018-1, I.A.s 1-5 45,330,000 100.000% 45,330,000 City of Lathrop 1915 Act Bonds 18,515,000 100.000% 18,515,000 Reclamation District No. 17 Assessment District 19,926,427 59.301% 11,816,570 California Statewide Community Development Authority 1915 Act Bonds 1,828.000 100.000% 1,828.000 Total Overlapping Tax and Assessment Debt $ 1,307.614,405 $ 909,524,338 Ratios to FY 2023/24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 11.73%
Direct and Overlapping General Fund Obligation Debt
San Joaquin County Certificates of Participation 49,210,000 7.150% 3,518,515 Manteca Unified School District General Fund Obligations 11,982,000 23.924% 2,866,574 City of Lathrop General Fund Obligations 2,110,000 100.000% 2,110,000 Lathrop-Manteca Rural Fire Protection District Certificates of Participation 3,330,000 81.165% 2,702,795 Total Direct and Overlapping General Fund Debt $ 11,197,883 Total Direct Debt 2,992,221
Total Overlapping Debt 918,612,221
Combined Total Debt 921,604,442 (2)
(1) For all outside agency debt referenced on this sttement, the city's overlapping debt obligation is based upon the proration of the aggregate issuance as directed by each issue's underlying funding agreement. The proration is generally based on the percentae of the overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded financed purchased obligations Ratios to Adjusted Assessed Valuation
Total Direct Debt 0.04%
Combined Total Debt 11.88%
Source: California Municipal Statistics, Inc.
202
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20:
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 2015 6,642,758 3,484,902 3,157,856 293,198 195,802 6.46 2016 6,385,191 3,479,010 2,906,181 303,550 185,450 5.94 2017 7,834,887 4,366,161 3,468,726 314,393 174,733 7.09 2018 8,491,689 4,969,618 3,522,071 325,363 163,637 7.20 2019 9,212,760 6,303,489 2,909,271 336,850 152,150 5.95 2020 10,949,739 5,539,228 5,410,511 348,743 140,257 11.06 2021 10,241,182 6,216,829 4,024,353 361,056 127,944 8.23 2022 10,763,857 6,591,591 4,172,266 373,803 115,197 8.53 2023 11,085,970 8,667,182 2,418,788 386,862 101,900 4.95 2024 13,474,602 8,470,498 5,004,104 400,664 88,336 10.23 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation expenses. (1) The 2000 COP's were refunded by the PNC Bank Loan on May 4, 2012.
The Required Debt coverage ratio for the PNC Bank Loan is 1.10%. (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. *Fund: 5620-50-50-480-01-00
*Fund: 5650-50-50-480-01-00
Source: City of Lathrop, California Finance Department
204
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
2,668,856 728,070 954,719 1.59
2,417,181 402,196 945,592 1.79
2,979,600 411,536 936,254 2.21
3,033,071 421,091 926,699 2.25
2,420,271 1,069,489 475,545 1.57
4,921,511 1,093,053 451,981 3.19
3,535,353 1,122,305 422,729 2.29
3,683,266 1,152,348 392,686 2.38
1,930,026 1,193,631 361,403 1.24
4,515,104 1,220,413 324,621 2.92
205
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)
2014 19,786 327,775 16,566 10.3%
2015 22,112 354,280 16,022 8.5%
2016 23,110 364,434 15,769 7.8%
2017 24,268 403,896 16,643 6.3%
2018 24,936 457,006 18,327 5.2%
2019 26,833 518,675 19,329 4.3%
2020 28,503 566,062 19,859 9.6%
2021 31,331 631,164 20,145 8.4%
2022 35,080 828,800 23,625 5.1%
2023 37,033 1,006,915 27,189 7.0%
Sources: (1) California State Department of Finance
(2) 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey
206
CITY OF LATHROP
Principal Employers
Current Year and Nine Years Ago
2024 2015
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment Tesla 3,085 1 21.02%
United Parcel Service (UPS) 1,500 2 10.22%
Super Store Industries (SSI) 390 3 2.66% 400 2 6.06%
Simwon America 388 4 2.64%
California Natural Products (CNP) 384 5 2.62% 250 3 3.79% Manteca Unified SD (Lathrop Schools) 354 6 2.41%
Army Air Force Exchange Service 354 2.41%
In-N-Out Burger 333 7 2.27%
Banta Unified SD (Lathrop Schools) 288 8 1.96%
Wayfair 238 9 1.62%
CBC Steel Buildings 208 10 1.42% 100 7 1.52%
Ashley Furniture 175 11 1.19%
City of Lathrop 174 12 1.19%
Target 172 13 1.17% 150 6 2.27%
Diamond Pet Foods 163 14 1.11%
Pfug Packaging 150 15 1.02% 200 4 3.03%
Medline 133 16 0.91%
Pratt Industries 120 17 0.82%
Swiss American Sausage 115 18 0.78% 175 5 2.65%
Home Depot 112 19 0.76% 150 6 2.27%
Dragon Products 111 20 0.76%
Crosslink Professional Tax Solutions 110 21 0.75%
Smart Refridgerated Transport 100 22 0.68% 100 1.52%
JC Penney Distribution Center 750 1 11.36%
JR Simplot Company 200 3.03%
Cen Cal Plastering 200 4 3.03%
Pilkington North America Inc 100 7 1.52%
100 7 1.52%
Carpenter Company 100 1.52%
"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
207
CITY OF LATHROP
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Function 2015 2016 2017 2018
General Government 23.60 24.60 23.60 23.60
Public Safety (1) 36.98 36.98 37.98 35.98
Public Works 22.83 29.50 30.80 33.80
Community Development 6.67 4.00 3.10 4.10
Culture & Leisure 20.76 21.00 20.56 21.01
Total Positions 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. 208
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
40.47 40.47 42.47 45.47 44.65
4.43 4.43 4.40 5.40 4.10
21.01 21.01 28.60 30.60 36.45
127.49 129.49 141.08 165.78 177.45
209
CITY OF LATHROP
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022
Police:
Arrests 708 572 705 550 558 554 624
Parking Citations Issued 444 696 1,385 1,084 1,389 1,237 1,489 Code Enforcement
Housing Cases 35 29 28 54 74 64 55 62
Public Nuisance Cases 206 287 345 204 126 165 210 176
Vehicle Cases 67 193 140 118 129 145 133
Weed Abatement Cases 2 108 122 126 124 120 123
Building Permits
Single Family Dwellings 350 220 291 392 381 649 879 924 Parks and recreation:
Number of recreation classes 34 56 67 116 126 95 72 176 Number of facility rentals 542 450 390 1,598 1,388 1,041 617 206 Water:
New connections 266 179 163 392 381 649879 924
Average daily consumption 3,508 3,052 3,274 4,200 4,128 4,128 4,742 4,812 (thousands of gallons)
Sewer:
New connections 266 179 163 392 381 649 879 924
*Transition to City of Lathrop, Police Department
Source: City of Lathrop, California departmental sources. 210
CITY OF LATHROP
Capital Assets Statistics by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021
Police:
Stations 1 1 1 1 1 1 1
Fire:
Fire Stations (1) - - - - - -
Public works:
Streets (miles) 84.20 84.20 84.20 92.90 92.90 97.90 109.70 Streetlights 1,448 1,472 1,472 1,835 1,835 1,835 2,135
Parks and recreation:
Parks (2) 16 16 16 18 20 22
Community centers 2 2 2 2
Senior centers 1 1 1 1 1
Water:
Water mains (miles) 101.80 101.80 101.80 101.80 142.00 147.00 159.00 Maximum daily capacity 15,250 15,250 15,250 15,250 16,500 16,500 16,500 (thousands of gallons)
Wastewater:
Sanitary sewer (miles) 71.00 71.00 71.00 71.00 91.80 96.80 108.80 Miles of Reclaimed Water Lines 21.80 21.80 21.80 21.80 21.80 25.80 27.80 Maximum daily treatment capac 2,200 2,200 1,450 1,450 3,140 3,140 3,140 (thousands of gallons)
(1) The City of Lathrop's fire protection is provided by the Lathrop-Manteca Fire District. (2) Soure: City of Lathrop, Parks and Recreation Guide
Source: City of Lathrop, California departmental sources. 211
CITY OF LATHROP
Water Sold by Type of Customer
Last Ten Fiscal Years
(in thousands of gallons)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Type of Customer:
Residential 671,095 628,208 625,187 745,359 738,530 794,181 907,150 939,163 950,154 1,009,692 Industrial 343,231 283,410 278,985 395,110 415,471 406,181 435,637 433,258 530,793 439,478 Commercial 91,599 71,396 101,549 139,290 135,130 145,195 152,476 157,053 150,318 169,354 Governmental 172,972 177,791 139,511 149,952 126,761 144,421 199,298 187,615 154,425 137,806 Construction 1,615 49,923 103,309 91,038 85,601 36,154 39,357 17,122 23,082 Total 1,280,512 1,160,805 1,195,155 1,533,020 1,506,930 1,575,579 1.730,715 1,756,446 1,802,812 1,779,412 Total direct rate
per 1,000 gallons $ 2.63 $ 3.04 $ 3.49 $ 3.99 $ 3.99 $ 3.99 $ 3.99 $ 3.99 $ 3.99 $ 3.99 Source: City of Lathrop, California Public Works Department 212
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) 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
2024 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
213
CITY OF LATHROP
Ten Largest Water Customers
Current Year and Ten Years Ago
2024 2015
Percent of Percent of
Water Total Water Water Total Water
Water Customer Charges Rank Revenues Charges Rank Revenue California Natural Products $ 929,169 8.83% $ 508,142 1 4.50% City of Lathrop 417,849 2 3.97% 361,340 2 6.77%
Manteca Unified School District 225,556 3 2.14% 168,450 3.15% Super Store Industries 141,155 1.34% 105,027 4 1.97%
Tesla Motors Inc 68,190 5 0.65%
Sansome Skyline Lathrop, LP 64,021 0.61%
Grante Constructio Finance Authority 63,427 0.60%
56,917 8 0.54%
IN-N-OUT Burger #804 56,008 9 0.53% 38,669 8 0.72%
Tesla, Inc 48,111 10 0.46%
Banta Elementary School District 82,652 1.55%
Crossroads Commerce Ctr Assoc 72,508 1.36%
Camino Real Mobile Estates 42,990 0.81%
Swiss American Sausage 36,143 0.68%
DSRG 33,641 10 0.63%
Source: City of Lathrop, California Finance Department
214
CITY OF LATHROP
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
Business Name usiness Categor
Percen or Facas Near Total Paid By Top 23 As Cas - 8288% ercent of Fiscal Year Total Paid By Top 25 Accounts = 82.42 Apex Storage Transportation/ Rental Antonini Brothers Petroleum Prod/Equip Arco AM PM Service Stations Arco AM PM Service Stations Ashley Furniture Distribution Fulfillment Centers Carpenter Co Textile/Furnishings CBS Steel Contractors CBC Steel Buidlings Contractors
Chevron Service Stations Chevron Service Stations
Chevron Power Mart Service Stations Dragon Products Petroleum Prod/Equip CHI Overhead Doors Contractors Eagles Nest Harley Davidson Boats/Motorcycles Eagles Nest Harley Davidson Boats/Mortorcycles Fast Lane Service Stations Fast Lane Service Stations FleetPride Tralers/Auto Parts Flying J Travel Plaza Service Stations Interior Specialists Home Furnishings n N Out Burger Quick-Service Restaruant Joes Travel Plaza Service Stations Joes Travel Plaza Service Stations McDonalds Quick Service Restaurants John Manville Contractors Medcal Sales Medical/Biotech
Pape Kenworth New Motor Vehicle Dealers Mikasa Japanese Bistro Casual Dining Raymond Handling Concepts Warehouse/Farm/Const Equip Save Mart Grocery Stores Liquor Simwon American Corp Trailers/Auto Parts Shell Service Stations Target Discount Department Store Discount Dept Stores
TEČ Equipment Trailers/Auto Parts Top Gun Drywall Supply Building Materials Tesla Trailers/Auto Parts Totten Tubes Heavy Industrial Top Gun Drywall Supply Building Materials Tower Mart Service Stations Totten Tubes Contractors Two Guys Food & Fuel Inc Service Stations Tri West Trailers/RVs USA Motors Used Automotive Dealers Wayfair Fulfillment Centers Utility Trailer Sales Trailer/RVs Western Pacific Crane & Equip Heavy Industrial Walgreens Drug Store * Firms Listed Alphabetically
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office. 215
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